[House Report 109-190]
[From the U.S. Government Publishing Office]




109th Congress                                        Report
                        HOUSE OF REPRESENTATIVES
1st  Session                                         109-190
_______________________________________________________________________




                       ENERGY POLICY ACT OF 2005

                               ----------                              

                           CONFERENCE REPORT

                         [To accompany H.R. 6]






                 July 27, 2005.--Ordered to be printed











                      ENERGY POLICY ACT OF 2005


















109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-190

======================================================================
 
                       ENERGY POLICY ACT OF 2005

                                _______
                                

                 July 27, 2005.--Ordered to be printed

                                _______
                                

 Mr. Barton of Texas, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                         [To accompany H.R. 6]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
6), to ensure jobs for our future with secure, affordable, and 
reliable energy, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy 
Policy Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Advanced Building Efficiency Testbed.
Sec. 108. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Sec. 111. Enhancing energy efficiency in management of Federal lands.

            Subtitle B--Energy Assistance and State Programs

Sec. 121. Low income home energy assistance program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Sec. 127. State Technologies Advancement Collaborative.
Sec. 128. State building energy efficiency codes incentives.

                  Subtitle C--Energy Efficient Products

Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Energy labeling.
Sec. 138. Intermittent escalator study.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Report on failure to comply with deadlines for new or revised 
          energy conservation standards.

                       Subtitle D--Public Housing

Sec. 151. Public housing capital fund.
Sec. 152. Energy-efficient appliances.
Sec. 153. Energy efficiency standards.
Sec. 154. Energy strategy for HUD.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Use of photovoltaic energy in public buildings.
Sec. 205. Biobased products.
Sec. 206. Renewable energy security.
Sec. 207. Installation of photovoltaic system.
Sec. 208. Sugar cane ethanol program.
Sec. 209. Rural and remote community electrification grants.
Sec. 210. Grants to improve the commercial value of forest biomass for 
          electric energy, useful heat, transportation fuels, and other 
          commercial purposes.
Sec. 211. Sense of Congress regarding generation capacity of electricity 
          from renewable energy resources on public lands.

                      Subtitle B--Geothermal Energy

Sec. 221. Short title.
Sec. 222. Competitive lease sale requirements.
Sec. 223. Direct use.
Sec. 224. Royalties and near-term production incentives.
Sec. 225. Coordination of geothermal leasing and permitting on Federal 
          lands.
Sec. 226. Assessment of geothermal energy potential.
Sec. 227. Cooperative or unit plans.
Sec. 228. Royalty on byproducts.
Sec. 229. Authorities of Secretary to readjust terms, conditions, 
          rentals, and royalties.
Sec. 230. Crediting of rental toward royalty.
Sec. 231. Lease duration and work commitment requirements.
Sec. 232. Advanced royalties required for cessation of production.
Sec. 233. Annual rental.
Sec. 234. Deposit and use of geothermal lease revenues for 5 fiscal 
          years.
Sec. 235. Acreage limitations.
Sec. 236. Technical amendments.
Sec. 237. Intermountain West Geothermal Consortium.

                        Subtitle C--Hydroelectric

Sec. 241. Alternative conditions and fishways.
Sec. 242. Hydroelectric production incentives.
Sec. 243. Hydroelectric efficiency improvement.
Sec. 244. Alaska State jurisdiction over small hydroelectric projects.
Sec. 245. Flint Creek hydroelectric project.
Sec. 246. Small hydroelectric power projects.

                       Subtitle D--Insular Energy

Sec. 251. Insular areas energy security.
Sec. 252. Projects enhancing insular energy independence.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve 
          and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.

                         Subtitle B--Natural Gas

Sec. 311. Exportation or importation of natural gas.
Sec. 312. New natural gas storage facilities.
Sec. 313. Process coordination; hearings; rules of procedure.
Sec. 314. Penalties.
Sec. 315. Market manipulation.
Sec. 316. Natural gas market transparency rules.
Sec. 317. Federal-State liquefied natural gas forums.
Sec. 318. Prohibition of trading and serving by certain individuals.

                         Subtitle C--Production

Sec. 321. Outer Continental Shelf provisions.
Sec. 322. Hydraulic fracturing.
Sec. 323. Oil and gas exploration and production defined.

                   Subtitle D--Naval Petroleum Reserve

Sec. 331. Transfer of administrative jurisdiction and environmental 
          remediation, Naval Petroleum Reserve Numbered 2, Kern County, 
          California.
Sec. 332. Naval Petroleum Reserve Numbered 2 Lease Revenue Account.
Sec. 333. Land conveyance, portion of Naval Petroleum Reserve Numbered 
          2, to City of Taft, California.
Sec. 334. Revocation of land withdrawal.

                    Subtitle E--Production Incentives

Sec. 341. Definition of Secretary.
Sec. 342. Program on oil and gas royalties in-kind.
Sec. 343. Marginal property production incentives.
Sec. 344. Incentives for natural gas production from deep wells in the 
          shallow waters of the Gulf of Mexico.
Sec. 345. Royalty relief for deep water production.
Sec. 346. Alaska offshore royalty suspension.
Sec. 347. Oil and gas leasing in the National Petroleum Reserve in 
          Alaska.
Sec. 348. North Slope Science Initiative.
Sec. 349. Orphaned, abandoned, or idled wells on Federal land.
Sec. 350. Combined hydrocarbon leasing.
Sec. 351. Preservation of geological and geophysical data.
Sec. 352. Oil and gas lease acreage limitations.
Sec. 353. Gas hydrate production incentive.
Sec. 354. Enhanced oil and natural gas production through carbon dioxide 
          injection.
Sec. 355. Assessment of dependence of State of Hawaii on oil.
Sec. 356. Denali Commission.
Sec. 357. Comprehensive inventory of OCS oil and natural gas resources.

                   Subtitle F--Access to Federal Lands

Sec. 361. Federal onshore oil and gas leasing and permitting practices.
Sec. 362. Management of Federal oil and gas leasing programs.
Sec. 363. Consultation regarding oil and gas leasing on public land.
Sec. 364. Estimates of oil and gas resources underlying onshore Federal 
          land.
Sec. 365. Pilot project to improve Federal permit coordination.
Sec. 366. Deadline for consideration of applications for permits.
Sec. 367. Fair market value determinations for linear rights-of-way 
          across public lands and National Forests.
Sec. 368. Energy right-of-way corridors on Federal land.
Sec. 369. Oil shale, tar sands, and other strategic unconventional 
          fuels.
Sec. 370. Finger Lakes withdrawal.
Sec. 371. Reinstatement of leases.
Sec. 372. Consultation regarding energy rights-of-way on public land.
Sec. 373. Sense of Congress regarding development of minerals under 
          Padre Island National Seashore.
Sec. 374. Livingston Parish mineral rights transfer.

                        Subtitle G--Miscellaneous

Sec. 381. Deadline for decision on appeals of consistency determination 
          under the Coastal Zone Management Act of 1972.
Sec. 382. Appeals relating to offshore mineral development.
Sec. 383. Royalty payments under leases under the Outer Continental 
          Shelf Lands Act.
Sec. 384. Coastal impact assistance program.
Sec. 385. Study of availability of skilled workers.
Sec. 386. Great Lakes oil and gas drilling ban.
Sec. 387. Federal coalbed methane regulation.
Sec. 388. Alternate energy-related uses on the outer Continental Shelf.
Sec. 389. Oil Spill Recovery Institute.
Sec. 390. NEPA review.

                   Subtitle H--Refinery Revitalization

Sec. 391. Findings and definitions.
Sec. 392. Federal-State regulatory coordination and assistance.

                             TITLE IV--COAL

                 Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.

                    Subtitle B--Clean Power Projects

Sec. 411. Integrated coal/renewable energy system.
Sec. 412. Loan to place Alaska clean coal technology facility in 
          service.
Sec. 413. Western integrated coal gasification demonstration project.
Sec. 414. Coal gasification.
Sec. 415. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Sec. 417. Department of Energy transportation fuels from Illinois basin 
          coal.

                  Subtitle C--Coal and Related Programs

Sec. 421. Amendment of the Energy Policy Act of 1992.

                     Subtitle D--Federal Coal Leases

Sec. 431. Short title.
Sec. 432. Repeal of the 160-acre limitation for coal leases.
Sec. 433. Approval of logical mining units.
Sec. 434. Payment of advance royalties under coal leases.
Sec. 435. Elimination of deadline for submission of coal lease operation 
          and reclamation plan.
Sec. 436. Amendment relating to financial assurances with respect to 
          bonus bids.
Sec. 437. Inventory requirement.
Sec. 438. Application of amendments.

                         TITLE V--INDIAN ENERGY

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

                        TITLE VI--NUCLEAR MATTERS

                Subtitle A--Price-Anderson Act Amendments

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

                   Subtitle B--General Nuclear Matters

Sec. 621. Licenses.
Sec. 622. Nuclear Regulatory Commission scholarship and fellowship 
          program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset for certain rehired Federal 
          retirees.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Whistleblower protection.
Sec. 630. Medical isotope production.
Sec. 631. Safe disposal of greater-than-Class C radioactive waste.
Sec. 632. Prohibition on nuclear exports to countries that sponsor 
          terrorism.
Sec. 633. Employee benefits.
Sec. 634. Demonstration hydrogen production at existing nuclear power 
          plants.
Sec. 635. Prohibition on assumption by United States Government of 
          liability for certain foreign incidents.
Sec. 636. Authorization of appropriations.
Sec. 637. Nuclear Regulatory Commission user fees and annual charges.
Sec. 638. Standby support for certain nuclear plant delays.
Sec. 639. Conflicts of interest relating to contracts and other 
          arrangements.

            Subtitle C--Next Generation Nuclear Plant Project

Sec. 641. Project establishment.
Sec. 642. Project management.
Sec. 643. Project organization.
Sec. 644. Nuclear Regulatory Commission.
Sec. 645. Project timelines and authorization of appropriations.

                      Subtitle D--Nuclear Security

Sec. 651. Nuclear facility and materials security.
Sec. 652. Fingerprinting and criminal history record checks.
Sec. 653. Use of firearms by security personnel.
Sec. 654. Unauthorized introduction of dangerous weapons.
Sec. 655. Sabotage of nuclear facilities, fuel, or designated material.
Sec. 656. Secure transfer of nuclear materials.
Sec. 657. Department of Homeland Security consultation.

                      TITLE VII--VEHICLES AND FUELS

                      Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual fueled vehicles.
Sec. 702. Incremental cost allocation.
Sec. 703. Alternative compliance and flexibility.
Sec. 704. Review of Energy Policy Act of 1992 programs.
Sec. 705. Report concerning compliance with alternative fueled vehicle 
          purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization 
          initiative.
Sec. 707. Emergency exemption.

   Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                         Part 1--Hybrid Vehicles

Sec. 711. Hybrid vehicles.
Sec. 712. Efficient hybrid and advanced diesel vehicles.

                        Part 2--Advanced Vehicles

Sec. 721. Pilot program.
Sec. 722. Reports to Congress.
Sec. 723. Authorization of appropriations.

                         Part 3--Fuel Cell Buses

Sec. 731. Fuel cell transit bus demonstration.

                     Subtitle C--Clean School Buses

Sec. 741. Clean school bus program.
Sec. 742. Diesel truck retrofit and fleet modernization program.
Sec. 743. Fuel cell school buses.

                        Subtitle D--Miscellaneous

Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by Bicycling Program.
Sec. 756. Reduction of engine idling.
Sec. 757. Biodiesel engine testing program.
Sec. 758. Ultra-efficient engine technology for aircraft.
Sec. 759. Fuel economy incentive requirements.

                    Subtitle E--Automobile Efficiency

Sec. 771. Authorization of appropriations for implementation and 
          enforcement of fuel economy standards.
Sec. 772. Extension of maximum fuel economy increase for alternative 
          fueled vehicles.
Sec. 773. Study of feasibility and effects of reducing use of fuel for 
          automobiles.
Sec. 774. Update testing procedures.

                Subtitle F--Federal and State Procurement

Sec. 781. Definitions.
Sec. 782. Federal and State procurement of fuel cell vehicles and 
          hydrogen energy systems.
Sec. 783. Federal procurement of stationary, portable, and micro fuel 
          cells.

                 Subtitle G--Diesel Emissions Reduction

Sec. 791. Definitions.
Sec. 792. National grant and loan programs.
Sec. 793. State grant and loan programs.
Sec. 794. Evaluation and report.
Sec. 795. Outreach and incentives.
Sec. 796. Effect of subtitle.
Sec. 797. Authorization of appropriations.

                          TITLE VIII--HYDROGEN

Sec. 801. Hydrogen and fuel cell program.
Sec. 802. Purposes.
Sec. 803. Definitions.
Sec. 804. Plan.
Sec. 805. Programs.
Sec. 806. Hydrogen and Fuel Cell Technical Task Force.
Sec. 807. Technical Advisory Committee.
Sec. 808. Demonstration.
Sec. 809. Codes and standards.
Sec. 810. Disclosure.
Sec. 811. Reports.
Sec. 812. Solar and wind technologies.
Sec. 813. Technology transfer.
Sec. 814. Miscellaneous provisions.
Sec. 815. Cost sharing.
Sec. 816. Savings clause.

                   TITLE IX--RESEARCH AND DEVELOPMENT

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

                      Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.

       Subtitle B--Distributed Energy and Electric Energy Systems

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

                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Low-cost renewable hydrogen and infrastructure for vehicle 
          propulsion.
Sec. 934. Concentrating solar power research program.
Sec. 935. Renewable energy in public buildings.

   Subtitle D--Agricultural Biomass Research and Development Programs

Sec. 941. Amendments to the Biomass Research and Development Act of 
          2000.
Sec. 942. Production incentives for cellulosic biofuels.
Sec. 943. Procurement of biobased products.
Sec. 944. Small business bioproduct marketing and certification grants.
Sec. 945. Regional bioeconomy development grants.
Sec. 946. Preprocessing and harvesting demonstration grants.
Sec. 947. Education and outreach.
Sec. 948. Reports.

                       Subtitle E--Nuclear Energy

Sec. 951. Nuclear energy.
Sec. 952. Nuclear energy research programs.
Sec. 953. Advanced fuel cycle initiative.
Sec. 954. University nuclear science and engineering support.
Sec. 955. Department of Energy civilian nuclear infrastructure and 
          facilities.
Sec. 956. Security of nuclear facilities.
Sec. 957. Alternatives to industrial radioactive sources.

                        Subtitle F--Fossil Energy

Sec. 961. Fossil energy.
Sec. 962. Coal and related technologies program.
Sec. 963. Carbon capture research and development program.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.

                           Subtitle G--Science

Sec. 971. Science.
Sec. 972. Fusion energy sciences program.
Sec. 973. Catalysis research program.
Sec. 974. Hydrogen.
Sec. 975. Solid state lighting.
Sec. 976. Advanced scientific computing for energy missions.
Sec. 977. Systems biology program.
Sec. 978. Fission and fusion energy materials research program.
Sec. 979. Energy and water supplies.
Sec. 980. Spallation Neutron Source.
Sec. 981. Rare isotope accelerator.
Sec. 982. Office of Scientific and Technical Information.
Sec. 983. Science and engineering education pilot program.
Sec. 984. Energy research fellowships.
Sec. 984A. Science and technology scholarship program.

                  Subtitle H--International Cooperation

Sec. 985. Western Hemisphere energy cooperation.
Sec. 986. Cooperation between United States and Israel.
Sec. 986A. International energy training.

           Subtitle I--Research Administration and Operations

Sec. 987. Availability of funds.
Sec. 988. Cost sharing.
Sec. 989. Merit review of proposals.
Sec. 990. External technical review of Departmental programs.
Sec. 991. National Laboratory designation.
Sec. 992. Report on equal employment opportunity practices.
Sec. 993. Strategy and plan for science and energy facilities and 
          infrastructure.
Sec. 994. Strategic research portfolio analysis and coordination plan.
Sec. 995. Competitive award of management contracts.
Sec. 996. Western Michigan demonstration project.
Sec. 997. Arctic Engineering Research Center.
Sec. 998. Barrow Geophysical Research Facility.

  Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other 
                           Petroleum Resources

Sec. 999A. Program authority.
Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and 
          other petroleum research and development program.
Sec. 999C. Additional requirements for awards.
Sec. 999D. Advisory committees.
Sec. 999E. Limits on participation.
Sec. 999F. Sunset.
Sec. 999G. Definitions.
Sec. 999H. Funding.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Improved technology transfer of energy technologies.
Sec. 1002. Technology Infrastructure Program.
Sec. 1003. Small business advocacy and assistance.
Sec. 1004. Outreach.
Sec. 1005. Relationship to other laws.
Sec. 1006. Improved coordination and management of civilian science and 
          technology programs.
Sec. 1007. Other transactions authority.
Sec. 1008. Prizes for achievement in grand challenges of science and 
          technology.
Sec. 1009. Technical corrections.
Sec. 1010. University collaboration.
Sec. 1011. Sense of Congress.

                    TITLE XI--PERSONNEL AND TRAINING

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

                         TITLE XII--ELECTRICITY

Sec. 1201. Short title.

                    Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.

          Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced Power System Technology Incentive Program.

             Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Federal utility participation in Transmission Organizations.
Sec. 1233. Native load service obligation.
Sec. 1234. Study on the benefits of economic dispatch.
Sec. 1235. Protection of transmission contracts in the Pacific 
          Northwest.
Sec. 1236. Sense of Congress regarding locational installed capacity 
          mechanism.

                  Subtitle D--Transmission Rate Reform

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

                     Subtitle E--Amendments to PURPA

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

                       Subtitle F--Repeal of PUHCA

Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.

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

Sec. 1281. Electricity market transparency.
Sec. 1282. False statements.
Sec. 1283. Market manipulation.
Sec. 1284. Enforcement.
Sec. 1285. Refund effective date.
Sec. 1286. Refund authority.
Sec. 1287. Consumer privacy and unfair trade practices.
Sec. 1288. Authority of court to prohibit individuals from serving as 
          officers, directors, and energy traders.
Sec. 1289. Merger review reform.
Sec. 1290. Relief for extraordinary violations.

                         Subtitle H--Definitions

Sec. 1291. Definitions.

             Subtitle I--Technical and Conforming Amendments

Sec. 1295. Conforming amendments.

                      Subtitle J--Economic Dispatch

Sec. 1298. Economic dispatch.

                TITLE XIII--ENERGY POLICY TAX INCENTIVES

Sec. 1300. Short title; amendment to 1986 code.

                 Subtitle A--Electricity Infrastructure

Sec. 1301. Extension and modification of renewable electricity 
          production credit.
Sec. 1302. Application of section 45 credit to agricultural 
          cooperatives.
Sec. 1303. Clean renewable energy bonds.
Sec. 1304. Treatment of income of certain electric cooperatives.
Sec. 1305. Dispositions of transmission property to implement FERC 
          restructuring policy.
Sec. 1306. Credit for production from advanced nuclear power facilities.
Sec. 1307. Credit for investment in clean coal facilities.
Sec. 1308. Electric transmission property treated as 15-year property.
Sec. 1309. Expansion of amortization for certain atmospheric pollution 
          control facilities in connection with plants first placed in 
          service after 1975.
Sec. 1310. Modifications to special rules for nuclear decommissioning 
          costs.
Sec. 1311. 5-year net operating loss carryover for certain losses.

                Subtitle B--Domestic Fossil Fuel Security

Sec. 1321. Extension of credit for producing fuel from a nonconventional 
          source for facilities producing coke or coke gas.
Sec. 1322. Modification of credit for producing fuel from a 
          nonconventional source.
Sec. 1323. Temporary expensing for equipment used in refining of liquid 
          fuels.
Sec. 1324. Pass through to owners of deduction for capital costs 
          incurred by small refiner cooperatives in complying with 
          Environmental Protection Agency sulfur regulations.
Sec. 1325. Natural gas distribution lines treated as 15-year property.
Sec. 1326. Natural gas gathering lines treated as 7-year property.
Sec. 1327. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1328. Determination of small refiner exception to oil depletion 
          deduction.
Sec. 1329. Amortization of geological and geophysical expenditures.

        Subtitle C--Conservation and Energy Efficiency Provisions

Sec. 1331. Energy efficient commercial buildings deduction.
Sec. 1332. Credit for construction of new energy efficient homes.
Sec. 1333. Credit for certain nonbusiness energy property.
Sec. 1334. Credit for energy efficient appliances.
Sec. 1335. Credit for residential energy efficient property.
Sec. 1336. Credit for business installation of qualified fuel cells and 
          stationary microturbine power plants.
Sec. 1337. Business solar investment tax credit.

       Subtitle D--Alternative Motor Vehicles and Fuels Incentives

Sec. 1341. Alternative motor vehicle credit.
Sec. 1342. Credit for installation of alternative fueling stations.
Sec. 1343. Reduced motor fuel excise tax on certain mixtures of diesel 
          fuel.
Sec. 1344. Extension of excise tax provisions and income tax credit for 
          biodiesel.
Sec. 1345. Small agri-biodiesel producer credit.
Sec. 1346. Renewable diesel.
Sec. 1347. Modification of small ethanol producer credit.
Sec. 1348. Sunset of deduction for clean-fuel vehicles and certain 
          refueling property.

              Subtitle E--Additional Energy Tax Incentives

Sec. 1351. Expansion of research credit.
Sec. 1352. National Academy of Sciences study and report.
Sec. 1353. Recycling study.

                 Subtitle F--Revenue Raising Provisions

Sec. 1361. Oil Spill Liability Trust Fund financing rate.
Sec. 1362. Extension of Leaking Underground Storage Tank Trust Fund 
          financing rate.
Sec. 1363. Modification of recapture rules for amortizable section 197 
          intangibles.
Sec. 1364. Clarification of tire excise tax.

                        TITLE XIV--MISCELLANEOUS

                         Subtitle A--In General

Sec. 1401. Sense of Congress on risk assessments.
Sec. 1402. Energy production incentives.
Sec. 1403. Regulation of certain oil used in transformers.
Sec. 1404. Petrochemical and oil refinery facility health assessment.
Sec. 1405. National Priority Project Designation.
Sec. 1406. Cold cracking.
Sec. 1407. Oxygen-fuel.

                      Subtitle B--Set America Free

Sec. 1421. Short title.
Sec. 1422. Purpose.
Sec. 1423. United States Commission on North American Energy Freedom.
Sec. 1424. North American energy freedom policy.

                    TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

Sec. 1501. Renewable content of gasoline.
Sec. 1502. Findings.
Sec. 1503. Claims filed after enactment.
Sec. 1504. Elimination of oxygen content requirement for reformulated 
          gasoline.
Sec. 1505. Public health and environmental impacts of fuels and fuel 
          additives.
Sec. 1506. Analyses of motor vehicle fuel changes.
Sec. 1507. Additional opt-in areas under reformulated gasoline program.
Sec. 1508. Data collection.
Sec. 1509. Fuel system requirements harmonization study.
Sec. 1510. Commercial byproducts from municipal solid waste and 
          cellulosic biomass loan guarantee program.
Sec. 1511. Renewable fuel.
Sec. 1512. Conversion assistance for cellulosic biomass, waste-derived 
          ethanol, approved renewable fuels.
Sec. 1513. Blending of compliant reformulated gasolines.
Sec. 1514. Advanced biofuel technologies program.
Sec. 1515. Waste-derived ethanol and biodiesel.
Sec. 1516. Sugar ethanol loan guarantee program.

             Subtitle B--Underground Storage Tank Compliance

Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.

                       Subtitle C--Boutique Fuels

Sec. 1541. Reducing the proliferation of boutique fuels.

                        TITLE XVI--CLIMATE CHANGE

        Subtitle A--National Climate Change Technology Deployment

Sec. 1601. Greenhouse gas intensity reducing technology strategies.

Subtitle B--Climate Change Technology Deployment in Developing Countries

Sec. 1611. Climate change technology deployment in developing countries.

           TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 1701. Definitions.
Sec. 1702. Terms and conditions.
Sec. 1703. Eligible projects.
Sec. 1704. Authorization of appropriations.

                          TITLE XVIII--STUDIES

Sec. 1801. Study on inventory of petroleum and natural gas storage.
Sec. 1802. Study of energy efficiency standards.
Sec. 1803. Telecommuting study.
Sec. 1804. LIHEAP Report.
Sec. 1805. Oil bypass filtration technology.
Sec. 1806. Total integrated thermal systems.
Sec. 1807. Report on energy integration with Latin America.
Sec. 1808. Low-volume gas reservoir study.
Sec. 1809. Investigation of gasoline prices.
Sec. 1810. Alaska natural gas pipeline.
Sec. 1811. Coal bed methane study.
Sec. 1812. Backup fuel capability study.
Sec. 1813. Indian land rights-of-way.
Sec. 1814. Mobility of scientific and technical personnel.
Sec. 1815. Interagency review of competition in the wholesale and retail 
          markets for electric energy.
Sec. 1816. Study of rapid electrical grid restoration.
Sec. 1817. Study of distributed generation.
Sec. 1818. Natural gas supply shortage report.
Sec. 1819. Hydrogen participation study.
Sec. 1820. Overall employment in a hydrogen economy.
Sec. 1821. Study of best management practices for energy research and 
          development programs.
Sec. 1822. Effect of electrical contaminants on reliability of energy 
          production systems.
Sec. 1823. Alternative fuels reports.
Sec. 1824. Final action on refunds for excessive charges.
Sec. 1825. Fuel cell and hydrogen technology study.
Sec. 1826. Passive solar technologies.
Sec. 1827. Study of link between energy security and increases in 
          vehicle miles traveled.
Sec. 1828. Science study on cumulative impacts of multiple offshore 
          liquefied natural gas facilities.
Sec. 1829. Energy and water saving measures in congressional buildings.
Sec. 1830. Study of availability of skilled workers.
Sec. 1831. Review of Energy Policy Act of 1992 programs.
Sec. 1832. Study on the benefits of economic dispatch.
Sec. 1833. Renewable energy on Federal land.
Sec. 1834. Increased hydroelectric generation at existing Federal 
          facilities.
Sec. 1835. Split-estate Federal oil and gas leasing and development 
          practices.
Sec. 1836. Resolution of Federal resource development conflicts in the 
          Powder River Basin.
Sec. 1837. National security review of international energy 
          requirements.
Sec. 1838. Used oil re-refining study.
Sec. 1839. Transmission system monitoring.
Sec. 1840. Report identifying and describing the status of potential 
          hydropower facilities.

SEC. 2. DEFINITIONS.

    Except as otherwise provided, in this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Institution of higher education.--
                    (A) In general.--The term ``institution of 
                higher education'' has the meaning given the 
                term in section 101(a) of the Higher Education 
                Act of 1065 (20 U.S.C. 1001(a)).
                    (B) Inclusion.--The term ``institution of 
                higher education'' includes an organization 
                that--
                            (i) is organized, and at all times 
                        thereafter operated, exclusively for 
                        the benefit of, to perform the 
                        functions of, or to carry out the 
                        functions of 1 or more organizations 
                        referred to in subparagraph (A); and
                            (ii) is operated, supervised, or 
                        controlled by or in connection with 1 
                        or more of those organizations.
            (3) National laboratory.--The term ``National 
        Laboratory'' means any of the following laboratories 
        owned by the Department:
                    (A) Ames Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Accelerator Laboratory.
                    (E) Idaho National Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Savannah River National Laboratory.
                    (P) Stanford Linear Accelerator Center.
                    (Q) Thomas Jefferson National Accelerator 
                Facility.
            (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (5) Small business concern.--The term ``small 
        business concern'' has the meaning given the term in 
        section 3 of the Small Business Act (15 U.S.C. 632).

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

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

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by 
adding at the end the following:

``SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
                    BUILDINGS.

    ``(a) In General.--The Architect of the Capitol--
            ``(1) shall develop, update, and implement a cost-
        effective energy conservation and management plan 
        (referred to in this section as the `plan') for all 
        facilities administered by Congress (referred to in 
        this section as `congressional buildings') to meet the 
        energy performance requirements for Federal buildings 
        established under section 543(a)(1); and
            ``(2) shall submit the plan to Congress, not later 
        than 180 days after the date of enactment of this 
        section.
    ``(b) Plan Requirements.--The plan shall include--
            ``(1) a description of the life cycle cost analysis 
        used to determine the cost-effectiveness of proposed 
        energy efficiency projects;
            ``(2) a schedule of energy surveys to ensure 
        complete surveys of all congressional buildings every 5 
        years to determine the cost and payback period of 
        energy and water conservation measures;
            ``(3) a strategy for installation of life cycle 
        cost-effective energy and water conservation measures;
            ``(4) the results of a study of the costs and 
        benefits of installation of submetering in 
        congressional buildings; and
            ``(5) information packages and `how-to' guides for 
        each Member and employing authority of Congress that 
        detail simple, cost-effective methods to save energy 
        and taxpayer dollars in the workplace.
    ``(c) Annual Report.--The Architect of the Capitol shall 
submit to Congress annually a report on congressional energy 
management and conservation programs required under this 
section that describes in detail--
            ``(1) energy expenditures and savings estimates for 
        each facility;
            ``(2) energy management and conservation projects; 
        and
            ``(3) future priorities to ensure compliance with 
        this section.''.
    (b) Table of Contents Amendment.--The table of contents of 
the National Energy Conservation Policy Act is amended by 
adding at the end of the items relating to part 3 of title V 
the following new item:

``Sec. 552. Energy and water savings measures in congressional 
          buildings''.

    (c) Repeal.--Section 310 of the Legislative Branch 
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.

SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--
            (1) Amendment.--Section 543(a)(1) of the National 
        Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) 
        is amended by striking ``its Federal buildings so 
        that'' and all that follows through the end and 
        inserting ``the Federal buildings of the agency 
        (including each industrial or laboratory facility) so 
        that the energy consumption per gross square foot of 
        the Federal buildings of the agency in fiscal years 
        2006 through 2015 is reduced, as compared with the 
        energy consumption per gross square foot of the Federal 
        buildings of the agency in fiscal year 2003, by the 
        percentage specified in the following table:

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

            (2) Reporting baseline.--The energy reduction goals 
        and baseline established in paragraph (1) of section 
        543(a) of the National Energy Conservation Policy Act 
        (42 U.S.C. 8253(a)(1)), as amended by this subsection, 
        supersede all previous goals and baselines under such 
        paragraph, and related reporting requirements.
    (b) Review and Revision of Energy Performance 
Requirement.--Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is further amended 
by adding at the end the following:
    ``(3) Not later than December 31, 2014, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2016 through 2025.''.
    (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by 
striking ``An agency may exclude'' and all that follows through 
the end and inserting ``(A) An agency may exclude, from the 
energy performance requirement for a fiscal year established 
under subsection (a) and the energy management requirement 
established under subsection (b), any Federal building or 
collection of Federal buildings, if the head of the agency 
finds that--
            ``(i) compliance with those requirements would be 
        impracticable;
            ``(ii) the agency has completed and submitted all 
        federally required energy management reports;
            ``(iii) the agency has achieved compliance with the 
        energy efficiency requirements of this Act, the Energy 
        Policy Act of 1992, Executive orders, and other Federal 
        law; and
            ``(iv) the agency has implemented all practicable, 
        life cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
    ``(B) A finding of impracticability under subparagraph 
(A)(i) shall be based on--
            ``(i) the energy intensiveness of activities 
        carried out in the Federal building or collection of 
        Federal buildings; or
            ``(ii) the fact that the Federal building or 
        collection of Federal buildings is used in the 
        performance of a national security function.''.
    (d) Review by Secretary.--Section 543(c)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is 
amended--
            (1) by striking ``impracticability standards'' and 
        inserting ``standards for exclusion'';
            (2) by striking ``a finding of impracticability'' 
        and inserting ``the exclusion''; and
            (3) by striking ``energy consumption requirements'' 
        and inserting ``requirements of subsections (a) and 
        (b)(1)''.
    (e) Criteria.--Section 543(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)) is further amended 
by adding at the end the following:
    ``(3) Not later than 180 days after the date of enactment 
of this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).''.
    (f) Retention of Energy and Water Savings.--Section 546 of 
the National Energy Conservation Policy Act (42 U.S.C. 8256) is 
amended by adding at the end the following new subsection:
    ``(e) Retention of Energy and Water Savings.--An agency may 
retain any funds appropriated to that agency for energy 
expenditures, water expenditures, or wastewater treatment 
expenditures, at buildings subject to the requirements of 
section 543(a) and (b), that are not made because of energy 
savings or water savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency, water 
conservation, or unconventional and renewable energy resources 
projects. Such projects shall be subject to the requirements of 
section 3307 of title 40, United States Code.''.
    (g) Reports.--Section 548(b) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``the 
        President and'' before ``Congress''; and
            (2) by inserting ``President and'' before 
        ``Congress''.
    (h) Conforming Amendment.--Section 550(d) of the National 
Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is amended 
in the second sentence by striking ``the 20 percent reduction 
goal established under section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)).'' and inserting 
``each of the energy reduction goals established under section 
543(a).''.

SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act 
(42 U.S.C. 8253) is further amended by adding at the end the 
following:
    ``(e) Metering of Energy Use.--
            ``(1) Deadline.--By October 1, 2012, in accordance 
        with guidelines established by the Secretary under 
        paragraph (2), all Federal buildings shall, for the 
        purposes of efficient use of energy and reduction in 
        the cost of electricity used in such buildings, be 
        metered. Each agency shall use, to the maximum extent 
        practicable, advanced meters or advanced metering 
        devices that provide data at least daily and that 
        measure at least hourly consumption of electricity in 
        the Federal buildings of the agency. Such data shall be 
        incorporated into existing Federal energy tracking 
        systems and made available to Federal facility 
        managers.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days 
                after the date of enactment of this subsection, 
                the Secretary, in consultation with the 
                Department of Defense, the General Services 
                Administration, representatives from the 
                metering industry, utility industry, energy 
                services industry, energy efficiency industry, 
                energy efficiency advocacy organizations, 
                national laboratories, universities, and 
                Federal facility managers, shall establish 
                guidelines for agencies to carry out paragraph 
                (1).
                    ``(B) Requirements for guidelines.--The 
                guidelines shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering 
                                and the reduced cost of 
                                operation and maintenance 
                                expected to result from 
                                metering;
                                    ``(II) the extent to which 
                                metering is expected to result 
                                in increased potential for 
                                energy management, increased 
                                potential for energy savings 
                                and energy efficiency 
                                improvement, and cost and 
                                energy savings due to utility 
                                contract aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations 
                        concerning the amount of funds and the 
                        number of trained personnel necessary 
                        to gather and use the metering 
                        information to track and reduce energy 
                        use;
                            ``(iii) establish priorities for 
                        types and locations of buildings to be 
                        metered based on cost-effectiveness and 
                        a schedule of 1 or more dates, not 
                        later than 1 year after the date of 
                        issuance of the guidelines, on which 
                        the requirements specified in paragraph 
                        (1) shall take effect; and
                            ``(iv) establish exclusions from 
                        the requirements specified in paragraph 
                        (1) based on the de minimis quantity of 
                        energy use of a Federal building, 
                        industrial process, or structure.
            ``(3) Plan.--Not later than 6 months after the date 
        guidelines are established under paragraph (2), in a 
        report submitted by the agency under section 548(a), 
        each agency shall submit to the Secretary a plan 
        describing how the agency will implement the 
        requirements of paragraph (1), including (A) how the 
        agency will designate personnel primarily responsible 
        for achieving the requirements and (B) demonstration by 
        the agency, complete with documentation, of any finding 
        that advanced meters or advanced metering devices, as 
        defined in paragraph (1), are not practicable.''.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) Agency.--The term `agency' has the meaning 
        given that term in section 7902(a) of title 5, United 
        States Code.
            ``(2) Energy star product.--The term `Energy Star 
        product' means a product that is rated for energy 
        efficiency under an Energy Star program.
            ``(3) Energy star program.--The term `Energy Star 
        program' means the program established by section 324A 
        of the Energy Policy and Conservation Act.
            ``(4) FEMP designated product.--The term `FEMP 
        designated product' means a product that is designated 
        under the Federal Energy Management Program of the 
        Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
            ``(5) Product.--The term `product' does not include 
        any energy consuming product or system designed or 
        procured for combat or combat-related missions.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        agency for an energy consuming product, the head of the 
        agency shall, except as provided in paragraph (2), 
        procure--
                    ``(A) an Energy Star product; or
                    ``(B) a FEMP designated product.
            ``(2) Exceptions.--The head of an agency is not 
        required to procure an Energy Star product or FEMP 
        designated product under paragraph (1) if the head of 
        the agency finds in writing that--
                    ``(A) an Energy Star product or FEMP 
                designated product is not cost-effective over 
                the life of the product taking energy cost 
                savings into account; or
                    ``(B) no Energy Star product or FEMP 
                designated product is reasonably available that 
                meets the functional requirements of the 
                agency.
            ``(3) Procurement planning.--The head of an agency 
        shall incorporate into the specifications for all 
        procurements involving energy consuming products and 
        systems, including guide specifications, project 
        specifications, and construction, renovation, and 
        services contracts that include provision of energy 
        consuming products and systems, and into the factors 
        for the evaluation of offers received for the 
        procurement, criteria for energy efficiency that are 
        consistent with the criteria used for rating Energy 
        Star products and for rating FEMP designated products.
    ``(c) Listing of Energy Efficient Products in Federal 
Catalogs.--Energy Star products and FEMP designated products 
shall be clearly identified and prominently displayed in any 
inventory or listing of products by the General Services 
Administration or the Defense Logistics Agency. The General 
Services Administration or the Defense Logistics Agency shall 
supply only Energy Star products or FEMP designated products 
for all product categories covered by the Energy Star program 
or the Federal Energy Management Program, except in cases where 
the agency ordering a product specifies in writing that no 
Energy Star product or FEMP designated product is available to 
meet the buyer's functional requirements, or that no Energy 
Star product or FEMP designated product is cost-effective for 
the intended application over the life of the product, taking 
energy cost savings into account.
    ``(d) Specific Products.--(1) In the case of electric 
motors of 1 to 500 horsepower, agencies shall select only 
premium efficient motors that meet a standard designated by the 
Secretary. The Secretary shall designate such a standard not 
later than 120 days after the date of the enactment of this 
section, after considering the recommendations of associated 
electric motor manufacturers and energy efficiency groups.
    ``(2) All Federal agencies are encouraged to take actions 
to maximize the efficiency of air conditioning and 
refrigeration equipment, including appropriate cleaning and 
maintenance, including the use of any system treatment or 
additive that will reduce the electricity consumed by air 
conditioning and refrigeration equipment. Any such treatment or 
additive must be--
            ``(A) determined by the Secretary to be effective 
        in increasing the efficiency of air conditioning and 
        refrigeration equipment without having an adverse 
        impact on air conditioning performance (including 
        cooling capacity) or equipment useful life;
            ``(B) determined by the Administrator of the 
        Environmental Protection Agency to be environmentally 
        safe; and
                    ``(C) shown to increase seasonal energy 
                efficiency ratio (SEER) or energy efficiency 
                ratio (EER) when tested by the National 
                Institute of Standards and Technology according 
                to Department of Energy test procedures without 
                causing any adverse impact on the system, 
                system components, the refrigerant or 
                lubricant, or other materials in the system.

        Results of testing described in subparagraph (C) shall 
        be published in the Federal Register for public review 
        and comment. For purposes of this section, a hardware 
        device or primary refrigerant shall not be considered 
        an additive.
    ``(e) Regulations.--Not later than 180 days after the date 
of the enactment of this section, the Secretary shall issue 
guidelines to carry out this section.''.
    (b) Conforming Amendment.--The table of contents of the 
National Energy Conservation Policy Act is further amended by 
inserting after the item relating to section 552 the following 
new item:

``Sec. 553. Federal procurement of energy efficient products.''.

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

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

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

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

SEC. 107. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary, in consultation with the 
Administrator of General Services, 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 efficiency concepts 
for government and industry buildings, and demonstrate the 
ability of next generation buildings to support individual and 
organizational productivity and health (including by improving 
indoor air quality) as well as flexibility and technological 
change to improve environmental sustainability. Such program 
shall complement and not duplicate existing national programs.
    (b) Participants.--The program established under subsection 
(a) shall be led by a university with the ability to combine 
the expertise from numerous academic fields including, at a 
minimum, intelligent workplaces and advanced building systems 
and engineering, 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 to carry out this section 
$6,000,000 for each of the fiscal years 2006 through 2008, to 
remain available until expended. For any fiscal year in which 
funds are expended under this section, the Secretary shall 
provide \1/3\ of the total amount to the lead university 
described in subsection (b), and provide the remaining \2/3\ to 
the other participants referred to in subsection (b) on an 
equal basis.

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

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

  ``INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY FUNDED 
          PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE

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

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

SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.

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

SEC. 110. DAYLIGHT SAVINGS.

    (a) Amendment.--Section 3(a) of the Uniform Time Act of 
1966 (15 U.S.C. 260a(a)) is amended--
            (1) by striking ``first Sunday of April'' and 
        inserting ``second Sunday of March''; and
            (2) by striking ``last Sunday of October'' and 
        inserting ``first Sunday of November''.
    (b) Effective Date.--Subsection (a) shall take effect 1 
year after the date of enactment of this Act or March 1, 2007, 
whichever is later.
    (c) Report to Congress.--Not later than 9 months after the 
effective date stated in subsection (b), the Secretary shall 
report to Congress on the impact of this section on energy 
consumption in the United States.
    (d) Right to Revert.--Congress retains the right to revert 
the Daylight Saving Time back to the 2005 time schedules once 
the Department study is complete.

SEC. 111. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.

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

            Subtitle B--Energy Assistance and State Programs

SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.

    (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 ``and $2,000,000,000 for each 
of fiscal years 2002 through 2004'' and inserting ``and 
$5,100,000,000 for each of fiscal years 2005 through 2007''.
    (b) Renewable Fuels.--The Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8621 et seq.) is amended by adding at 
the end the following new section:

                           ``RENEWABLE FUELS

    ``Sec. 2612. In providing assistance pursuant to this 
title, a State, or any other person with which the State makes 
arrangements to carry out the purposes of this title, may 
purchase renewable fuels, including biomass.''.
    (c) Report to Congress.--The Secretary shall report to 
Congress on the use of renewable fuels in providing assistance 
under the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.).

SEC. 122. WEATHERIZATION ASSISTANCE.

    (a) Authorization of Appropriations.--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 ``$500,000,000 for 
fiscal year 2006, $600,000,000 for fiscal year 2007, and 
$700,000,000 for fiscal year 2008''.
    (b) Eligibility.--Section 412(7) of the Energy Conservation 
and Production Act (42 U.S.C. 6862(7)) is amended by striking 
``125 percent'' both places it appears and inserting ``150 
percent''.

SEC. 123. STATE ENERGY PROGRAMS.

    (a) State Energy Conservation Plans.--Section 362 of the 
Energy Policy and Conservation Act (42 U.S.C. 6322) is amended 
by inserting at the end the following new subsection:
    ``(g) The Secretary shall, at least once every 3 years, 
invite the Governor of each State to review and, if necessary, 
revise the energy conservation plan of such State submitted 
under subsection (b) or (e). Such reviews should consider the 
energy conservation plans of other States within the region, 
and identify opportunities and actions carried out in pursuit 
of common energy conservation goals.''.
    (b) State Energy Efficiency Goals.--Section 364 of the 
Energy Policy and Conservation Act (42 U.S.C. 6324) is amended 
to read as follows:

                    ``STATE ENERGY EFFICIENCY GOALS

    ``Sec. 364. Each State energy conservation plan with 
respect to which assistance is made available under this part 
on or after the date of enactment of the Energy Policy Act of 
2005 shall contain a goal, consisting of an improvement of 25 
percent or more in the efficiency of use of energy in the State 
concerned in calendar year 2012 as compared to calendar year 
1990, and may contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the 
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
amended by striking ``for fiscal years 1999 through 2003 such 
sums as may be necessary'' and inserting ``$100,000,000 for 
each of the fiscal years 2006 and 2007 and $125,000,000 for 
fiscal year 2008''.

SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

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

SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary may make grants to the State 
agency responsible for developing State energy conservation 
plans under section 362 of the Energy Policy and Conservation 
Act (42 U.S.C. 6322), or, if no such agency exists, a State 
agency designated by the Governor of the State, to assist units 
of local government in the State in improving the energy 
efficiency of public buildings and facilities--
            (1) through construction of new energy efficient 
        public buildings that use at least 30 percent less 
        energy than a comparable public building constructedin 
compliance with standards prescribed in the most recent version of the 
International Energy Conservation Code, or a similar State code 
intended to achieve substantially equivalent efficiency levels; or
            (2) through renovation of existing public buildings 
        to achieve reductions in energy use of at least 30 
        percent as compared to the baseline energy use in such 
        buildings prior to renovation, assuming a 3-year, 
        weather-normalized average for calculating such 
        baseline.
    (b) Administration.--State energy offices receiving grants 
under this section shall--
            (1) maintain such records and evidence of 
        compliance as the Secretary may require; and
            (2) develop and distribute information and 
        materials and conduct programs to provide technical 
        services and assistance to encourage planning, 
        financing, and design of energy efficient public 
        buildings by units of local government.
    (c) Authorization of Appropriations.--For the purposes of 
this section, there are authorized to be appropriated to the 
Secretary $30,000,000 for each of fiscal years 2006 through 
2010. Not more than 10 percent of appropriated funds shall be 
used for administration.

SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Grants.--The Secretary is authorized to make grants to 
units of local government, private, non-profit community 
development organizations, and Indian tribe economic 
development entities to improve energy efficiency; identify and 
develop alternative, renewable, and distributed energy 
supplies; and increase energy conservation in low income rural 
and urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
            (1) investments that develop alternative, 
        renewable, and distributed energy supplies;
            (2) energy efficiency projects and energy 
        conservation programs;
            (3) studies and other activities that improve 
        energy efficiency in low income rural and urban 
        communities;
            (4) planning and development assistance for 
        increasing the energy efficiency of buildings and 
        facilities; and
            (5) technical and financial assistance to local 
        government and private entities on developing new 
        renewable and distributed sources of power or combined 
        heat and power generation.
    (c) Definition.--For purposes of this section, the term 
``Indian tribe'' means any Indian tribe, band, nation, or other 
organized group or community, including any Alaskan Native 
village or regional or village corporation as defined in or 
established pursuant to the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.), that is recognized as eligible for 
the special programs and services provided by the United States 
to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of 
this section there are authorized to be appropriated to the 
Secretary $20,000,000 for each of fiscal years 2006 through 
2008.

SEC. 127. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.

    (a) In General.--The Secretary, in cooperation with the 
States, shall establish a cooperative program for research, 
development, demonstration, and deployment of technologies in 
which there is a common Federal and State energy efficiency, 
renewable energy, and fossil energy interest, to be known as 
the ``State Technologies Advancement Collaborative'' (referred 
to in this section as the ``Collaborative'').
    (b) Duties.--The Collaborative shall--
            (1) leverage Federal and State funding through 
        cost-shared activity;
            (2) reduce redundancies in Federal and State 
        funding; and
            (3) create multistate projects to be awarded 
        through a competitive process.
    (c) Administration.--The Collaborative shall be 
administered through an agreement between the Department and 
appropriate State-based organizations.
    (d) Funding Sources.--Funding for the Collaborative may be 
provided from--
            (1) amounts specifically appropriated for the 
        Collaborative; or
            (2) amounts that may be allocated from other 
        appropriations without changing the purpose for which 
        the amounts are appropriated.
    (e) Authorization of Appropriations.--There are authorized 
to carry out this section such sums as are necessary for each 
of fiscal years 2006 through 2010.

SEC. 128. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.

    Section 304(e) of the Energy Conservation and Production 
Act (42 U.S.C. 6833(e)) is amended--
            (1) in paragraph (1), by inserting before the 
        period at the end of the first sentence the following: 
        ``, including increasing and verifying compliance with 
        such codes''; and
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Additional funding shall be provided under 
        this subsection for implementation of a plan to achieve 
        and document at least a 90 percent rate of compliance 
        with residential and commercial building energy 
        efficiency codes, based on energy performance--
                    ``(A) to a State that has adopted and is 
                implementing, on a statewide basis--
                            ``(i) a residential building energy 
                        efficiency code that meets or exceeds 
                        the requirements of the 2004 
                        International Energy Conservation Code, 
                        or any succeeding version of that code 
                        that has received an affirmative 
                        determination from the Secretary under 
                        subsection (a)(5)(A); and
                            ``(ii) a commercial building energy 
                        efficiency code that meets or exceeds 
                        the requirements of the ASHRAE Standard 
                        90.1-2004, or any succeeding version of 
                        that standard that has received an 
                        affirmative determination from the 
                        Secretary under subsection (b)(2)(A); 
                        or
                    ``(B) in a State in which there is no 
                statewide energy code either for residential 
                buildings or for commercial buildings, to a 
                local government that has adopted and is 
                implementing residential and commercial 
                building energy efficiency codes, as described 
                in subparagraph (A).
    ``(3) Of the amounts made available under this subsection, 
the Secretary may use $500,000 for each fiscal year to train 
State and local officials to implement codes described in 
paragraph (2).
    ``(4)(A) There are authorized to be appropriated to carry 
out this subsection--
            ``(i) $25,000,000 for each of fiscal years 2006 
        through 2010; and
            ``(ii) such sums as are necessary for fiscal year 
        2011 and each fiscal year thereafter.
            ``(iii) Funding provided to States under paragraph 
        (2) for each fiscal year shall not exceed \1/2\ of the 
        excess of funding under this subsection over $5,000,000 
        for the fiscal year.''.

                 Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

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

                         ``ENERGY STAR PROGRAM

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

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

SEC. 132.. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

    Section 337 of the Energy Policy and Conservation Act (42 
U.S.C. 6307) is amended by adding at the end the following:
    ``(c) HVAC Maintenance.--(1) To ensure that installed air 
conditioning and heating systems operate at maximum rated 
efficiency levels, the Secretary shall, not later than 180 days 
after the date of enactment of this subsection, carry out a 
program to educate homeowners and small business owners 
concerning the energy savings from properly conducted 
maintenance of air conditioning, heating, and ventilating 
systems.
    ``(2) The Secretary shall carry out the program under 
paragraph (1), on a cost-shared basis, in cooperation with the 
Administrator of the Environmental Protection Agency and any 
other entities that the Secretary determines to be appropriate, 
including industry trade associations, industry members, and 
energy efficiency organizations.
    ``(d) Small Business Education and Assistance.--(1) The 
Administrator of the Small Business Administration, in 
consultation with the Secretary and the Administrator of the 
Environmental Protection Agency, shall develop and coordinate a 
Government-wide program, building on the Energy Star for Small 
Business Program, to assist small businesses in--
            ``(A) becoming more energy efficient;
            ``(B) understanding the cost savings from improved 
        energy efficiency;
            ``(C) understanding and accessing Federal 
        procurement opportunities with regard to Energy Star 
        technologies and products; and
            ``(D) identifying financing options for energy 
        efficiency upgrades.
    ``(2) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration shall--
            ``(A) make program information available to small 
        business concerns directly through the district offices 
        and resource partners of the Small Business 
        Administration, including small business development 
        centers, women's business centers, and the Service 
        Corps of Retired Executives (SCORE), and through other 
        Federal agencies, including the Federal Emergency 
        Management Agency and the Department of Agriculture; 
        and
            ``(B) coordinate assistance with the Secretary of 
        Commerce for manufacturing-related efforts, including 
        the Manufacturing Extension Partnership Program.
    ``(3) The Secretary, on a cost shared basis in cooperation 
with the Administrator of the Environmental Protection Agency, 
shall provide to the Small Business Administration all 
advertising, marketing, and other written materials necessary 
for the dissemination of information under paragraph (2).
    ``(4) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration, as part of the outreach to small business 
concerns under the Energy Star Program for Small Business 
Program, may enter into cooperative agreements with qualified 
resources partners (including the National Center for 
Appropriate Technology) to establish, maintain, and promote a 
Small Business Energy Clearinghouse (in this subsection 
referred to as the `Clearinghouse').
    ``(5) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration shall ensure that the Clearinghouse provides a 
centralized resource where small business concerns may access, 
telephonically and electronically, technical information and 
advice to help increase energy efficiency and reduce energy 
costs.
    ``(6) There are authorized to be appropriated such sums as 
are necessary to carry out this subsection, to remain available 
until expended.''.

SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

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

SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.

    (a) In General.--The Secretary shall carry out a 
comprehensive national program, including advertising and media 
awareness, to inform consumers about--
            (1) the need to reduce energy consumption during 
        the 4-year period beginning on the date of enactment of 
        this Act;
            (2) the benefits to consumers of reducing 
        consumption of electricity, natural gas, and petroleum, 
        particularly during peak use periods;
            (3) the importance of low energy costs to economic 
        growth and preserving manufacturing jobs in the United 
        States; and
            (4) practical, cost-effective measures that 
        consumers can take to reduce consumption of 
        electricity, natural gas, and gasoline, including--
                    (A) maintaining and repairing heating and 
                cooling ducts and equipment;
                    (B) weatherizing homes and buildings;
                    (C) purchasing energy efficient products; 
                and
                    (D) proper tire maintenance.
    (b) Cooperation.--The program carried out under subsection 
(a) shall--
            (1) include collaborative efforts with State and 
        local government officials and the private sector; and
            (2) incorporate, to the maximum extent practicable, 
        successful State and local public education programs.
    (c) Report.--Not later than July 1, 2009, the Secretary 
shall submit to Congress a report describing the effectiveness 
of the program under this section.
    (d) Termination of Authority.--The program carried out 
under this section shall terminate on December 31, 2010.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $90,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

    (a) Definitions.--Section 321 of the Energy Policy and 
Conservation Act (42 U.S.C. 6291) is amended--
            (1) in paragraph (29)--
                    (A) in subparagraph (D)--
                            (i) in clause (i), by striking 
                        ``C78.1-1978(R1984)'' and inserting 
                        ``C78.81-2003 (Data Sheet 7881-ANSI-
                        1010-1)'';
                            (ii) in clause (ii), by striking 
                        ``C78.1-1978(R1984)'' and inserting 
                        ``C78.81-2003 (Data Sheet 7881-ANSI-
                        3007-1)''; and
                            (iii) in clause (iii), by striking 
                        ``C78.1-1978(R1984)'' and inserting 
                        ``C78.81-2003 (Data Sheet 7881-ANSI-
                        1019-1)''; and
                    (B) by adding at the end the following:
            ``(M) The term `F34T12 lamp' (also known as a 
        `F40T12/ES lamp') means a nominal 34 watt tubular 
        fluorescent lamp that is 48 inches in length and 1\1/2\ 
        inches in diameter, and conforms to ANSI standard 
        C78.81-2003 (Data Sheet 7881-ANSI-1006-1).
            ``(N) The term `F96T12/ES lamp' means a nominal 60 
        watt tubular fluorescent lamp that is 96 inches in 
        length and 1\1/2\ inches in diameter, and conforms to 
        ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-3006-
        1).
            ``(O) The term `F96T12HO/ES lamp' means a nominal 
        95 watt tubular fluorescent lamp that is 96 inches in 
        length and 1\1/2\ inches in diameter, and conforms to 
        ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1017-
        1).
            ``(P) The term `replacement ballast' means a 
        ballast that--
                    ``(i) is designed for use to replace an 
                existing ballast in a previously installed 
                luminaire;
                    ``(ii) is marked `FOR REPLACEMENT USE 
                ONLY';
                    ``(iii) is shipped by the manufacturer in 
                packages containing not more than 10 ballasts; 
                and
                    ``(iv) has output leads that when fully 
                extended are a total length that is less than 
                the length of the lamp with which the ballast 
                is intended to be operated.'';
            (2) in paragraph (30)(S)--
                    (A) by inserting ``(i)'' before ``The 
                term''; and
                    (B) by adding at the end the following:
                    ``(ii) The term `medium base compact 
                fluorescent lamp' does not include--
                            ``(I) any lamp that is--
                                    ``(aa) specifically 
                                designed to be used for special 
                                purpose applications; and
                                    ``(bb) unlikely to be used 
                                in general purpose 
                                applications, such as the 
                                applications described in 
                                subparagraph (D); or
                            ``(II) any lamp not described in 
                        subparagraph (D) that is excluded by 
                        the Secretary, by rule, because the 
                        lamp is--
                                    ``(aa) designed for special 
                                applications; and
                                    ``(bb) unlikely to be used 
                                in general purpose 
                                applications.''; and
            (3) by adding at the end the following:
            ``(32) The term `battery charger' means a device 
        that charges batteries for consumer products, including 
        battery chargers embedded in other consumer products.
            ``(33)(A) The term `commercial prerinse spray 
        valve' means a handheld device designed and marketed 
        for use with commercial dishwashing and ware washing 
        equipment that sprays water on dishes, flatware, and 
        other food service items for the purpose of removing 
        food residue before cleaning the items.
            ``(B) The Secretary may modify the definition of 
        `commercial prerinse spray valve' by rule--
                    ``(i) to include products--
                            ``(I) that are extensively used in 
                        conjunction with commercial dishwashing 
                        and ware washing equipment;
                            ``(II) the application of standards 
                        to which would result in significant 
                        energy savings; and
                            ``(III) the application of 
                        standards to which would meet the 
                        criteria specified in section 
                        325(o)(4); and
                    ``(ii) to exclude products--
                            ``(I) that are used for special 
                        food service applications;
                            ``(II) that are unlikely to be 
                        widely used in conjunction with 
                        commercial dishwashing and ware washing 
                        equipment; and
                            ``(III) the application of 
                        standards to which would not result in 
                        significant energy savings.
            ``(34) The term `dehumidifier' means a self-
        contained, electrically operated, and mechanically 
        encased assembly consisting of--
                    ``(A) a refrigerated surface (evaporator) 
                that condenses moisture from the atmosphere;
                    ``(B) a refrigerating system, including an 
                electric motor;
                    ``(C) an air-circulating fan; and
                    ``(D) means for collecting or disposing of 
                the condensate.
            ``(35)(A) The term `distribution transformer' means 
        a transformer that--
                    ``(i) has an input voltage of 34.5 
                kilovolts or less;
                    ``(ii) has an output voltage of 600 volts 
                or less; and
                    ``(iii) is rated for operation at a 
                frequency of 60 Hertz.
            ``(B) The term `distribution transformer' does not 
        include--
                    ``(i) a transformer with multiple voltage 
                taps, the highest of which equals at least 20 
                percent more than the lowest;
                    ``(ii) a transformer that is designed to be 
                used in a special purpose application and is 
                unlikely to be used in general purpose 
                applications, such as a drive transformer, 
                rectifier transformer, auto-transformer, 
                Uninterruptible Power System transformer, 
                impedance transformer, regulating transformer, 
                sealed and nonventilating transformer, machine 
                tool transformer, welding transformer, 
                grounding transformer, or testing transformer; 
                or
                    ``(iii) any transformer not listed in 
                clause (ii) that is excluded by the Secretary 
                by rule because--
                            ``(I) the transformer is designed 
                        for a special application;
                            ``(II) the transformer is unlikely 
                        to be used in general purpose 
                        applications; and
                            ``(III) the application of 
                        standards to the transformer would not 
                        result in significant energy savings.
            ``(36) The term `external power supply' means an 
        external power supply circuit that is used to convert 
        household electric current into DC current or lower-
        voltage AC current to operate a consumer product.
            ``(37) The term `illuminated exit sign' means a 
        sign that--
                    ``(A) is designed to be permanently fixed 
                in place to identify an exit; and
                    ``(B) consists of an electrically powered 
                integral light source that--
                            ``(i) illuminates the legend `EXIT' 
                        and any directional indicators; and
                            ``(ii) provides contrast between 
                        the legend, any directional indicators, 
                        and the background.
            ``(38) The term `low-voltage dry-type distribution 
        transformer' means a distribution transformer that--
                    ``(A) has an input voltage of 600 volts or 
                less;
                    ``(B) is air-cooled; and
                    ``(C) does not use oil as a coolant.
            ``(39) The term `pedestrian module' means a light 
        signal used to convey movement information to 
        pedestrians.
            ``(40) The term `refrigerated bottled or canned 
        beverage vending machine' means a commercial 
        refrigerator that cools bottled or canned beverages and 
        dispenses the bottled or canned beverages on payment.
            ``(41) The term `standby mode' means the lowest 
        power consumption mode, as established on an individual 
        product basis by the Secretary, that--
                    ``(A) cannot be switched off or influenced 
                by the user; and
                    ``(B) may persist for an indefinite time 
                when an appliance is--
                            ``(i) connected to the main 
                        electricity supply; and
                            ``(ii) used in accordance with the 
                        instructions of the manufacturer.
            ``(42) The term `torchiere' means a portable 
        electric lamp with a reflector bowl that directs light 
        upward to give indirect illumination.
            ``(43) The term `traffic signal module' means a 
        standard 8-inch (200mm) or 12-inch (300mm) traffic 
        signal indication that--
                    ``(A) consists of a light source, a lens, 
                and all other parts necessary for operation; 
                and
                    ``(B) communicates movement messages to 
                drivers through red, amber, and green colors.
            ``(44) The term `transformer' means a device 
        consisting of 2 or more coils of insulated wire that 
        transfers alternating current by electromagnetic 
        induction from 1 coil to another to change the original 
        voltage or current value.
            ``(45)(A) The term `unit heater' means a self-
        contained fan-type heater designed to be installed 
        within the heated space.
            ``(B) The term `unit heater' does not include a 
        warm air furnace.
            ``(46)(A) The term `high intensity discharge lamp' 
        means an electric-discharge lamp in which--
                    ``(i) the light-producing arc is stabilized 
                by bulb wall temperature; and
                    ``(ii) the arc tube has a bulb wall loading 
                in excess of 3 Watts/cm2.
            ``(B) The term `high intensity discharge lamp' 
        includes mercury vapor, metal halide, and high-pressure 
        sodium lamps described in subparagraph (A).
            ``(47)(A) The term `mercury vapor lamp' means a 
        high intensity discharge lamp in which the major 
        portion of the light is produced by radiation from 
        mercury operating at a partial pressure in excess of 
        100,000 Pa (approximately 1 atm).
            ``(B) The term `mercury vapor lamp' includes clear, 
        phosphor-coated, and self-ballasted lamps described in 
        subparagraph (A).
            ``(48) The term `mercury vapor lamp ballast' means 
        a device that is designed and marketed to start and 
        operate mercury vapor lamps by providing the necessary 
        voltage and current.
            ``(49) The term `ceiling fan' means a nonportable 
        device that is suspended from a ceiling for circulating 
        air via the rotation of fan blades.
            ``(50) The term `ceiling fan light kit' means 
        equipment designed to provide light from a ceiling fan 
        that can be--
                    ``(A) integral, such that the equipment is 
                attached to the ceiling fan prior to the time 
                of retail sale; or
                    ``(B) attachable, such that at the time of 
                retail sale the equipment is not physically 
                attached to the ceiling fan, but may be 
                included inside the ceiling fan at the time of 
                sale or sold separately for subsequent 
                attachment to the fan.
            ``(51) The term `medium screw base' means an Edison 
        screw base identified with the prefix E-26 in the 
        `American National Standard for Electric Lamp Bases', 
        ANSI_IEC C81.61--2003, published by the American 
        National Standards Institute.''.
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
            (1) in subsection (b), by adding at the end the 
        following:
    ``(9) Test procedures for illuminated exit signs shall be 
based on the test method used under version 2.0 of the Energy 
Star program of the Environmental Protection Agency for 
illuminated exit signs.
    ``(10)(A) Test procedures for distribution transformers and 
low voltage dry-type distribution transformers shall be based 
on the `Standard Test Method for Measuring the Energy 
Consumption of Distribution Transformers' prescribed by the 
National Electrical Manufacturers Association (NEMA TP 2-1998).
    ``(B) The Secretary may review and revise the test 
procedures established under subparagraph (A).
    ``(C) For purposes of section 346(a), the test procedures 
established under subparagraph (A) shall be considered to be 
the testing requirements prescribed by the Secretary under 
section 346(a)(1) for distribution transformers for which the 
Secretary makes a determination that energy conservation 
standards would--
            ``(i) be technologically feasible and economically 
        justified; and
            ``(ii) result in significant energy savings.
    ``(11) Test procedures for traffic signal modules and 
pedestrian modules shall be based on the test method used under 
the Energy Star program of the Environmental Protection Agency 
for traffic signal modules, as in effect on the date of 
enactment of this paragraph.
    ``(12)(A) Test procedures for medium base compact 
fluorescent lamps shall be based on the test methods forcompact 
fluorescent lamps used under the August 9, 2001, version of the Energy 
Star program of the Environmental Protection Agency and the Department 
of Energy.
    ``(B) Except as provided in subparagraph (C), medium base 
compact fluorescent lamps shall meet all test requirements for 
regulated parameters of section 325(cc).
    ``(C) Notwithstanding subparagraph (B), if manufacturers 
document engineering predictions and analysis that support 
expected attainment of lumen maintenance at 40 percent rated 
life and lamp lifetime, medium base compact fluorescent lamps 
may be marketed before completion of the testing of lamp life 
and lumen maintenance at 40 percent of rated life.
    ``(13) Test procedures for dehumidifiers shall be based on 
the test criteria used under the Energy Star Program 
Requirements for Dehumidifiers developed by the Environmental 
Protection Agency, as in effect on the date of enactment of 
this paragraph unless revised by the Secretary pursuant to this 
section.
    ``(14) The test procedure for measuring flow rate for 
commercial prerinse spray valves shall be based on American 
Society for Testing and Materials Standard F2324, entitled 
`Standard Test Method for Pre-Rinse Spray Valves.'
    ``(15) The test procedure for refrigerated bottled or 
canned beverage vending machines shall be based on American 
National Standards Institute/American Society of Heating, 
Refrigerating and Air-Conditioning Engineers Standard 32.1-
2004, entitled `Methods of Testing for Rating Vending Machines 
for Bottled, Canned or Other Sealed Beverages'.
    ``(16)(A)(i) Test procedures for ceiling fans shall be 
based on the `Energy Star Testing Facility Guidance Manual: 
Building a Testing Facility and Performing the Solid State Test 
Method for ENERGY STAR Qualified Ceiling Fans, Version 1.1' 
published by the Environmental Protection Agency.
    ``(ii) Test procedures for ceiling fan light kits shall be 
based on the test procedures referenced in the Energy Star 
specifications for Residential Light Fixtures and Compact 
Fluorescent Light Bulbs, as in effect on the date of enactment 
of this paragraph.
    ``(B) The Secretary may review and revise the test 
procedures established under subparagraph (A).''; and
            (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--(1) Not 
later than 2 years after the date of enactment of this 
subsection, the Secretary shall prescribe testing requirements 
for refrigerated bottled or canned beverage vending machines.
    ``(2) To the maximum extent practicable, the testing 
requirements prescribed under paragraph (1) shall be based on 
existing test procedures used in industry.''.
    (c) Standard Setting Authority.--Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295) is amended--
            (1) in subsection (f)(3), by adding at the end the 
        following:
    ``(D) Notwithstanding any other provision of this Act, if 
the requirements of subsection (o) are met, the Secretary may 
consider and prescribe energy conservation standards or energy 
use standards for electricity used for purposes of circulating 
air through duct work.'';
            (2) in subsection (g)--
                    (A) in paragraph (6)(B), by inserting ``and 
                labeled'' after ``designed''; and
                    (B) by adding at the end the following:
    ``(8)(A) Each fluorescent lamp ballast (other than 
replacement ballasts or ballasts described in subparagraph 
(C))--
            ``(i)(I) manufactured on or after July 1, 2009;
            ``(II) sold by the manufacturer on or after October 
        1, 2009; or
            ``(III) incorporated into a luminaire by a 
        luminaire manufacturer on or after July 1, 2010; and
            ``(ii) designed--
                    ``(I) to operate at nominal input voltages 
                of 120 or 277 volts;
                    ``(II) to operate with an input current 
                frequency of 60 Hertz; and
                    ``(III) for use in connection with F34T12 
                lamps, F96T12/ES lamps, or F96T12HO/ES lamps;
        shall have a power factor of 0.90 or greater and shall 
        have a ballast efficacy factor of not less than the 
        following:


                                                                     Ballast       Total
                  ``Application for operation of                      input       nominal                                                                                                                                              Ballast efficacy factor
                                                                     voltage     lamp watts

One F34T12 lamp..................................................      120/277           34                                                                                                                                                         2.61
Two F34T12 lamps.................................................      120/277           68                                                                                                                                                         1.35
Two F96 T12/ES lamps.............................................      120/277          120                                                                                                                                                         0.77
Two F96 T12HO/ES lamps...........................................      120/277          190                                                                                                                                                         0.42


    ``(B) The standards described in subparagraph (A) shall 
apply to all ballasts covered by subparagraph (A)(ii) that are 
manufactured on or after July 1, 2010, or sold by the 
manufacturer on or after October 1, 2010.
    ``(C) the standards described in subparagraph (A) do not 
apply to--
            ``(i) a ballast that is designed for dimming to 50 
        percent or less of the maximum output of the ballast;
            ``(ii) a ballast that is designed for use with 2 
        F96T12HO lamps at ambient temperatures of 20 +F or less 
        and for use in an outdoor sign; or
            ``(iii) a ballast that has a power factor of less 
        than 0.90 and is designed and labeled for use only in 
        residential applications.'';
            (3) in subsection (o), by adding at the end the 
        following:
    ``(5) The Secretary may set more than 1 energy conservation 
standard for products that serve more than 1 major function by 
setting 1 energy conservation standard for each major 
function.''; and
            (4) by adding at the end the following:
    ``(u) Battery Charger and External Power Supply Electric 
Energy Consumption.--(1)(A) Not later than 18 months after the 
date of enactment of this subsection, the Secretary shall, 
after providing notice and an opportunity for comment, 
prescribe, by rule, definitions and test procedures for the 
power use of battery chargers and external power supplies.
    ``(B) In establishing the test procedures under 
subparagraph (A), the Secretary shall--
            ``(i) consider existing definitions and test 
        procedures used for measuring energy consumption in 
        standby mode and other modes; and
            ``(ii) assess the current and projected future 
        market for battery chargers and external power 
        supplies.
    ``(C) The assessment under subparagraph (B)(ii) shall 
include--
            ``(i) estimates of the significance of potential 
        energy savings from technical improvements to battery 
        chargers and external power supplies; and
            ``(ii) suggested product classes for energy 
        conservation standards.
    ``(D) Not later than 18 months after the date of enactment 
of this subsection, the Secretary shall hold a scoping workshop 
to discuss and receive comments on plans for developing energy 
conservation standards for energy use for battery chargers and 
external power supplies.
    ``(E)(i) Not later than 3 years after the date of enactment 
of this subsection, the Secretary shall issue a final rule that 
determines whether energy conservation standards shall be 
issued for battery chargers and external power supplies or 
classes of battery chargers and external power supplies.
    ``(ii) For each product class, any energy conservation 
standards issued under clause (i) shall be set at the lowest 
level of energy use that--
            ``(I) meets the criteria and procedures of 
        subsections (o), (p), (q), (r), (s), and (t); and
            ``(II) would result in significant overall annual 
        energy savings, considering standby mode and other 
        operating modes.
    ``(2) In determining under section 323 whether test 
procedures and energy conservation standards under this section 
should be revised with respect to covered products that are 
major sources of standby mode energy consumption, the Secretary 
shall consider whether to incorporate standby mode into the 
test procedures and energy conservation standards, taking into 
account standby mode power consumption compared to overall 
product energy consumption.
    ``(3) The Secretary shall not propose an energy 
conservation standard under this section, unless the Secretary 
has issued applicable test procedures for each product under 
section 323.
    ``(4) Any energy conservation standard issued under this 
subsection shall be applicable to products manufactured or 
imported beginning on the date that is 3 years after the date 
of issuance.
    ``(5) The Secretary and the Administrator shall collaborate 
and develop programs (including programs under section 324A and 
other voluntary industry agreements or codes of conduct) that 
are designed to reduce standby mode energy use.
    ``(v) Ceiling Fans and Refrigerated Beverage Vending 
Machines.--(1) Not later than 1 year after the date of 
enactment of this subsection, the Secretary shall prescribe, by 
rule, test procedures and energy conservation standards for 
ceiling fans and ceiling fan light kits. If the Secretary sets 
such standards, the Secretary shall consider exempting or 
setting different standards for certain product classes for 
which the primary standards are not technically feasible or 
economically justified, and establishing separate or exempted 
product classes for highly decorative fans for which air 
movement performance is a secondary design feature.
    ``(2) Not later than 4 years after the date of enactment of 
this subsection, the Secretary shall prescribe, by rule, energy 
conservation standards for refrigerated bottle or canned 
beverage vending machines.
    ``(3) In establishing energy conservation standards under 
this subsection, the Secretary shall use the criteria and 
procedures prescribed under subsections (o) and (p).
    ``(4) Any energy conservation standard prescribed under 
this subsection shall apply to products manufactured 3 years 
after the date of publication of a final rule establishing the 
energy conservation standard.
    ``(w) Illuminated Exit Signs.--An illuminated exit sign 
manufactured on or after January 1, 2006, shall meet the 
version 2.0 Energy Star Program performance requirements for 
illuminated exit signs prescribed by the Environmental 
Protection Agency.
    ``(x) Torchieres.--A torchiere manufactured on or after 
January 1, 2006--
            ``(1) shall consume not more than 190 watts of 
        power; and
            ``(2) shall not be capable of operating with lamps 
        that total more than 190 watts.
    ``(y) Low Voltage Dry-Type Distribution Transformers.--The 
efficiency of a low voltage dry-type distribution transformer 
manufactured on or after January 1, 2007, shall be the Class I 
Efficiency Levels for distribution transformers specified in 
table 4-2 of the `Guide for Determining Energy Efficiency for 
Distribution Transformers' published by the National Electrical 
Manufacturers Association (NEMA TP-1-2002).
    ``(z) Traffic Signal Modules and Pedestrian Modules.--Any 
traffic signal module or pedestrian module manufactured on or 
after January 1, 2006, shall--
            ``(1) meet the performance requirements used under 
        the Energy Star program of the Environmental Protection 
        Agency for traffic signals, as in effect on the date of 
        enactment of this subsection; and
            ``(2) be installed with compatible, electrically 
        connected signal control interface devices and conflict 
        monitoring systems.
    ``(aa) Unit Heaters.--A unit heater manufactured on or 
after the date that is 3 years after the date of enactment of 
this subsection shall--
            ``(1) be equipped with an intermittent ignition 
        device; and
            ``(2) have power venting or an automatic flue 
        damper.
    ``(bb) Medium Base Compact Fluorescent Lamps.--(1) A bare 
lamp and covered lamp (no reflector) medium base compact 
fluorescent lamp manufactured on or after January 1, 2006, 
shall meet the following requirements prescribed by the August 
9, 2001, version of the Energy Star Program Requirements for 
Compact Fluorescent Lamps, Energy Star Eligibility Criteria, 
Energy-Efficiency Specification issued by the Environmental 
Protection Agency and Department of Energy:
            ``(A) Minimum initial efficacy.
            ``(B) Lumen maintenance at 1000 hours.
            ``(C) Lumen maintenance at 40 percent of rated 
        life.
            ``(D) Rapid cycle stress test.
            ``(E) Lamp life.
    ``(2) The Secretary may, by rule, establish requirements 
for color quality (CRI), power factor, operating frequency, and 
maximum allowable start time based on the requirements 
prescribed by the August 9, 2001, version of the Energy Star 
Program Requirements for Compact Fluorescent Lamps.
    ``(3) The Secretary may, by rule--
            ``(A) revise the requirements established under 
        paragraph (2); or
            ``(B) establish other requirements, after 
        considering energy savings, cost effectiveness, and 
        consumer satisfaction.
    ``(cc) Dehumidifiers.--(1) Dehumidifiers manufactured on or 
after October 1, 2007, shall have an Energy Factor that meets 
or exceeds the following values:

``Product Capacity (pints/day):       Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................     1.00 
    25.01 - 35.00.............................................     1.20 
    35.01 - 54.00.............................................     1.30 
    54.01 - 74.99.............................................     1.50 
    75.00 or more.............................................     2.25.

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

``Product Capacity (pints/day):       Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................     1.20 
    25.01 - 35.00.............................................     1.30 
    35.01 - 45.00.............................................     1.40 
    45.01 - 54.00.............................................     1.50 
    54.01 - 74.99.............................................     1.60 
    75.00 or more.............................................      2.5.

    ``(dd) Commercial Prerinse Spray Valves.--Commercial 
prerinse spray valves manufactured on or after January 1, 2006, 
shall have a flow rate of not more than 1.6 gallons per minute.
    ``(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp 
ballasts shall not be manufactured or imported after January 1, 
2008.
    ``(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All 
ceiling fans manufactured on or after January 1, 2007, shall 
have the following features:
            ``(i) Fan speed controls separate from any lighting 
        controls.
            ``(ii) Adjustable speed controls (either more than 
        1 speed or variable speed).
            ``(iii) Adjustable speed controls (either more than 
        1 speed or variable speed).
            ``(iv) The capability of reversible fan action, 
        except for--
                    ``(I) fans sold for industrial 
                applications;
                    ``(II) outdoor applications; and
                    ``(III) cases in which safety standards 
                would be violated by the use of the reversible 
                mode.
    ``(B) The Secretary may define the exceptions described in 
clause (iv) in greater detail, but shall not substantively 
expand the exceptions
    ``(2)(A) Ceiling fan light kits with medium screw base 
sockets manufactured on or after January 1, 2007, shall be 
packaged with screw-based lamps to fill all screw base sockets.
    ``(B) The screw-based lamps required under subparagraph (A) 
shall--
            ``(i) meet the Energy Star Program Requirements for 
        Compact Fluorescent Lamps, version 3.0, issued by the 
        Department of Energy; or
            ``(ii) use light sources other than compact 
        fluorescent lamps that have lumens per watt performance 
        at least equivalent to comparably configured compact 
        fluorescent lamps meeting the Energy Star Program 
        Requirements described in clause (i).
    ``(3) Ceiling fan light kits with pin-based sockets for 
fluorescent lamps manufactured on or after January 1, 2007 
shall--
            ``(A) meet the Energy Star Program Requirements for 
        Residential Light Fixtures version 4.0 issued by the 
        Environmental Protection Agency; and
            ``(B) be packaged with lamps to fill all sockets.
    ``(4)(A) By January 1, 2007, the Secretary shall consider 
and issue requirements for any ceiling fan lighting kits other 
than those covered in paragraphs (2) and (3), including 
candelabra screw base sockets.
    ``(B) The requirements issued under subparagraph (A) shall 
be effective for products manufactured 2 years after the date 
of the final rule.
    ``(C) If the Secretary fails to issue a final rule by the 
date specified in subparagraph (B), any type of ceiling fan 
lighting kit described in subparagraph (A) that is manufactured 
after January 1, 2009--
            ``(i) shall not be capable of operating with lamps 
        that total more than 190 watts; and
            ``(ii) shall include the lamps described in clause 
        (i) in the ceiling fan lighting kits.
    ``(5)(A) After January 1, 2010, the Secretary may consider, 
and issue, if the requirements of subsections (o) and (p) are 
met, amended energy efficiency standards for ceiling fan light 
kits.
    ``(B) Any amended standards issued under subparagraph (A) 
shall apply to products manufactured not earlier than 2 years 
after the date of publication of the final rule establishing 
the amended standard.
    ``(6)(A) Notwithstanding any other provision of this Act, 
the Secretary may consider, and issue, if the requirements of 
subsections (o) and (p) are met, energy efficiency or energy 
use standards for electricity used by ceiling fans to circulate 
air in a room.
    ``(B) In issuing the standards under subparagraph (A), the 
Secretary shall consider--
    ``(C) exempting, or setting different standards for, 
certain product classes for which the primary standards are not 
technically feasible or economically justified; and
    ``(D) establishing separate exempted product classes for 
highly decorative fans for which air movement performance is a 
secondary design feature.
    ``(7) Section 327 shall apply to the products covered in 
paragraphs (1) through (4) beginning on the date of enactment 
of this subsection, except that any State or local labeling 
requirement for ceiling fans prescribed or enacted before the 
date of enactment of this subsection shall not be preempted 
until the labeling requirements applicable to ceiling fans 
established under section 327 take effect.
    ``(gg) Application Date.--Section 327 applies--
            ``(1) to products for which energy conservation 
        standards are to be established under subsection (l), 
        (u), or (v) beginning on the date on which a final rule 
        is issued by the Secretary, except that any State or 
        local standard prescribed or enacted for the product 
        before the date on which the final rule is issued shall 
        not be preempted until the energy conservation standard 
        established under subsection (l), (u), or (v) for the 
        product takes effect; and
            ``(2) to products for which energy conservation 
        standards are established under subsections (w) through 
        (ff) on the date of enactment of those subsections, 
        except that any State or local standard prescribed or 
        enacted before the date of enactment of those 
        subsections shall not be preempted until the energy 
        conservation standards established under subsections 
        (w) through (ff) take effect.''.
    (d) General Rule of Preemption.--Section 327(c) of the 
Energy Policy and Conservation Act (42 U.S.C. 6297(c)) is 
amended--
            (1) in paragraph (5), by striking ``or'' at the 
        end;
            (2) in paragraph (6), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(7)(A) is a regulation concerning standards for 
        commercial prerinse spray valves adopted by 
theCalifornia Energy Commission before January 1, 2005; or
            ``(B) is an amendment to a regulation described in 
        subparagraph (A) that was developed to align California 
        regulations with changes in American Society for 
        Testing and Materials Standard F2324;
            ``(8)(A) is a regulation concerning standards for 
        pedestrian modules adopted by the California Energy 
        Commission before January 1, 2005; or
            ``(B) is an amendment to a regulation described in 
        subparagraph (A) that was developed to align California 
        regulations to changes in the Institute for 
        Transportation Engineers standards, entitled 
        `Performance Specification: Pedestrian Traffic Control 
        Signal Indications'.''.

SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.

    (a) Definitions.--Section 340 of the Energy Policy and 
Conservation Act (42 U.S.C. 6311) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (D) 
                through (G) as subparagraphs (H) through (K), 
                respectively; and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) Very large commercial package air 
                conditioning and heating equipment.
                    ``(E) Commercial refrigerators, freezers, 
                and refrigerator-freezers.
                    ``(F) Automatic commercial ice makers.
                    ``(G) Commercial clothes washers.'';
            (2) in paragraph (2)(B), by striking ``small and 
        large commercial package air conditioning and heating 
        equipment'' and inserting ``commercial package air 
        conditioning and heating equipment, commercial 
        refrigerators, freezers, and refrigerator-freezers, 
        automatic commercial ice makers, commercial clothes 
        washers'';
            (3) by striking paragraphs (8) and (9) and 
        inserting the following:
            ``(8)(A) The term `commercial package air 
        conditioning and heating equipment' means air-cooled, 
        water-cooled, evaporatively-cooled, or water source 
        (not including ground water source) electrically 
        operated, unitary central air conditioners and central 
        air conditioning heat pumps for commercial application.
            ``(B) The term `small commercial package air 
        conditioning and heating equipment' means commercial 
        package air conditioning and heating equipment that is 
        rated below 135,000 Btu per hour (cooling capacity).
            ``(C) The term `large commercial package air 
        conditioning and heating equipment' means commercial 
        package air conditioning and heating equipment that is 
        rated--
                    ``(i) at or above 135,000 Btu per hour; and
                    ``(ii) below 240,000 Btu per hour (cooling 
                capacity).
            ``(D) The term `very large commercial package air 
        conditioning and heating equipment' means commercial 
        package air conditioning and heating equipment that is 
        rated--
                    ``(i) at or above 240,000 Btu per hour; and
                    ``(ii) below 760,000 Btu per hour (cooling 
                capacity).
            ``(9)(A) The term `commercial refrigerator, 
        freezer, and refrigerator-freezer' means refrigeration 
        equipment that--
                    ``(i) is not a consumer product (as defined 
                in section 321);
                    ``(ii) is not designed and marketed 
                exclusively for medical, scientific, or 
                research purposes;
                    ``(iii) operates at a chilled, frozen, 
                combination chilled and frozen, or variable 
                temperature;
                    ``(iv) displays or stores merchandise and 
                other perishable materials horizontally, 
                semivertically, or vertically;
                    ``(v) has transparent or solid doors, 
                sliding or hinged doors, a combination of 
                hinged, sliding, transparent, or solid doors, 
                or no doors;
                    ``(vi) is designed for pull-down 
                temperature applications or holding temperature 
                applications; and
                    ``(vii) is connected to a self-contained 
                condensing unit or to a remote condensing unit.
            ``(B) The term `holding temperature application' 
        means a use of commercial refrigeration equipment other 
        than a pull-down temperature application, except a 
        blast chiller or freezer.
            ``(C) The term `integrated average temperature' 
        means the average temperature of all test package 
        measurements taken during the test.
            ``(D) The term `pull-down temperature application' 
        means a commercial refrigerator with doors that, when 
        fully loaded with 12 ounce beverage cans at 90 degrees 
        F, can cool those beverages to an average stable 
        temperature of 38 degrees F in 12 hours or less.
            ``(E) The term `remote condensing unit' means a 
        factory-made assembly of refrigerating components 
        designed to compress and liquefy a specific refrigerant 
        that is remotely located from the refrigerated 
        equipment and consists of 1 or more refrigerant 
        compressors, refrigerant condensers, condenser fans and 
        motors, and factory supplied accessories.
            ``(F) The term `self-contained condensing unit' 
        means a factory-made assembly of refrigerating 
        components designed to compress and liquefy a specific 
        refrigerant that is an integral part of the 
        refrigerated equipment and consists of 1 or more 
        refrigerant compressors, refrigerant condensers, 
        condenser fans and motors, and factory supplied 
        accessories.''; and
            (4) by adding at the end the following:
            ``(19) The term `automatic commercial ice maker' 
        means a factory-made assembly (not necessarily shipped 
        in 1 package) that--
                    ``(A) consists of a condensing unit and 
                ice-making section operating as an integrated 
                unit, with means for making and harvesting ice; 
                and
                    ``(B) may include means for storing ice, 
                dispensing ice, or storing and dispensing ice.
            ``(20) The term `commercial clothes washer' means a 
        soft-mount front-loading or soft-mount top-loading 
        clothes washer that--
                    ``(A) has a clothes container compartment 
                that--
                            ``(i) for horizontal-axis clothes 
                        washers, is not more than 3.5 cubic 
                        feet; and
                            ``(ii) for vertical-axis clothes 
                        washers, is not more than 4.0 cubic 
                        feet; and
                    ``(B) is designed for use in--
                            ``(i) applications in which the 
                        occupants of more than 1 household will 
                        be using the clothes washer, such as 
                        multi-family housing common areas and 
                        coin laundries; or
                            ``(ii) other commercial 
                        applications.
            ``(21) The term `harvest rate' means the amount of 
        ice (at 32 degrees F) in pounds produced per 24 
        hours.''.
    (b) Standards for Commercial Package Air Conditioning and 
Heating Equipment.--Section 342(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(a)) is amended--
            (1) in the subsection heading, by striking ``Small 
        and Large'' and inserting ``Small, Large, and Very 
        Large'';
            (2) in paragraph (1), by inserting ``but before 
        January 1, 2010,'' after ``January 1, 1994,'';
            (3) in paragraph (2), by inserting ``but before 
        January 1, 2010,'' after ``January 1, 1995,''; and
            (4) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``(i)'' after 
                        ``(A)'';
                            (ii) by striking ``the date of 
                        enactment of the Energy Policy Act of 
                        1992'' and inserting ``January 1, 
                        2010'';
                            (iii) by inserting after ``large 
                        commercial package air conditioning and 
                        heating equipment,'' the following: 
                        ``and very large commercial package air 
                        conditioning and heating equipment, or 
                        if ASHRAE/IES Standard 90.1, as in 
                        effect on October 24, 1992, is amended 
                        with respect to any''; and
                            (iv) by adding at the end the 
                        following:
    ``(ii) If ASHRAE/IES Standard 90.1 is not amended with 
respect to small commercial package air conditioning and 
heating equipment, large commercial package air conditioning 
and heating equipment, and very large commercial package air 
conditioning and heating equipment during the 5-year period 
beginning on the effective date of a standard, the Secretary 
may initiate a rulemaking to determine whether a more stringent 
standard--
            ``(I) would result in significant additional 
        conservation of energy; and
            ``(II) is technologically feasible and economically 
        justified.''; and
                    (B) in subparagraph (C)(ii), by inserting 
                ``and very large commercial package air 
                conditioning and heating equipment'' after 
                ``large commercial package air conditioning and 
                heating equipment''; and
            (5) by adding at the end the following:
    ``(7) Small commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet 
the following standards:
            ``(A) The minimum energy efficiency ratio of air-
        cooled central air conditioners at or above 65,000 Btu 
        per hour (cooling capacity) and less than 135,000 Btu 
        per hour (cooling capacity) shall be--
                    ``(i) 11.2 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 11.0 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(B) The minimum energy efficiency ratio of air-
        cooled central air conditioner heat pumps at or above 
        65,000 Btu per hour (cooling capacity) and less than 
        135,000 Btu per hour (cooling capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.8 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(C) The minimum coefficient of performance in the 
        heating mode of air-cooled central air conditioning 
        heat pumps at or above 65,000 Btu per hour (cooling 
        capacity) and less than 135,000 Btu per hour (cooling 
        capacity) shall be 3.3 (at a high temperature rating of 
        47 degrees F db).
    ``(8) Large commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet 
the following standards:
            ``(A) The minimum energy efficiency ratio of air-
        cooled central air conditioners at or above 135,000 Btu 
        per hour (cooling capacity) and less than 240,000 Btu 
        per hour (cooling capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.8 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(B) The minimum energy efficiency ratio of air-
        cooled central air conditioner heat pumps at or above 
        135,000 Btu per hour (cooling capacity) and less than 
        240,000 Btu per hour (cooling capacity) shall be--
                    ``(i) 10.6 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.4 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(C) The minimum coefficient of performance in the 
        heating mode of air-cooled central air conditioning 
        heat pumps at or above 135,000 Btu per hour (cooling 
        capacity) and less than 240,000 Btu per hour (cooling 
        capacity) shall be 3.2 (at a high temperature rating of 
        47 degrees F db).
    ``(9) Very large commercial package air conditioning and 
heating equipment manufactured on or after January 1, 2010, 
shall meet the following standards:
            ``(A) The minimum energy efficiency ratio of air-
        cooled central air conditioners at or above 240,000 Btu 
        per hour (cooling capacity) and less than 760,000 Btu 
        per hour (cooling capacity) shall be--
                    ``(i) 10.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 9.8 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(B) The minimum energy efficiency ratio of air-
        cooled central air conditioner heat pumps at or above 
        240,000 Btu per hour (cooling capacity) and less than 
        760,000 Btu per hour (cooling capacity) shall be--
                    ``(i) 9.5 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 9.3 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(C) The minimum coefficient of performance in the 
        heating mode of air-cooled central air conditioning 
        heat pumps at or above 240,000 Btu per hour (cooling 
        capacity) and less than 760,000 Btu per hour (cooling 
        capacity) shall be 3.2 (at a high temperature rating of 
        47 degrees F db).''.
    (c) Standards for Commercial Refrigerators, Freezers, and 
Refrigerator-Freezers.--Section 342 of the Energy Policy and 
Conservation Act (42 U.S.C. 6313) is amended by adding at the 
end the following:
    ``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
            ``(A) The term `AV' means the adjusted volume (ft3) 
        (defined as 1.63 x frozen temperature compartment 
        volume (ft3) + chilled temperature compartment volume 
        (ft3)) with compartment volumes measured in accordance 
        with the Association of Home Appliance Manufacturers 
        Standard HRF1-1979.
            ``(B) The term `V' means the chilled or frozen 
        compartment volume (ft3) (as defined in the Association 
        of Home Appliance Manufacturers Standard HRF1-1979).
            ``(C) Other terms have such meanings as may be 
        established by the Secretary, based on industry-
        accepted definitions and practice.
    ``(2) Each commercial refrigerator, freezer, and 
refrigerator-freezer with a self-contained condensing unit 
designed for holding temperature applications manufactured on 
or after January 1, 2010, shall have a daily energyconsumption 
(in kilowatt hours per day) that does not exceed the following:

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


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

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

    ``(2)(A) The Secretary may issue, by rule, standard levels 
for types of automatic commercial ice makers that are not 
covered by paragraph (1).
    ``(B) The standards established under subparagraph (A) 
shall apply to products manufactured on or after the date that 
is--
            ``(i) 3 years after the date on which the rule is 
        published under subparagraph (A); or
            ``(ii) if the Secretary determines, by rule, that 3 
        years is inadequate, not later than 5 years after the 
        date on which the final rule is published.
    ``(3)(A) Not later than January 1, 2015, with respect to 
the standards established under paragraph (1), and, with 
respect to the standards established under paragraph (2), not 
later than 5 years after the date on which the standards take 
effect, the Secretary shall issue a final rule to determine 
whether amending the applicable standards is technologically 
feasible and economically justified.
    ``(B) Not later than 5 years after the effective date of 
any amended standards under subparagraph (A) or the publication 
of a final rule determining that amending the standards is not 
technologically feasible or economically justified, the 
Secretary shall issue a final rule to determine whether 
amending the standards established under paragraph (1) or the 
amended standards, as applicable, is technologically feasible 
or economically justified.
    ``(C) If the Secretary issues a final rule under 
subparagraph (A) or (B) establishing amended standards, the 
final rule shall provide that the amended standards apply to 
products manufactured on or after the date that is--
            ``(i) 3 years after the date on which the final 
        amended standard is published; or
            ``(ii) if the Secretary determines, by rule, that 3 
        years is inadequate, not later than 5 years after the 
        date on which the final amended standard is published.
    ``(4) A final rule issued under paragraph (2) or (3) shall 
establish standards at the maximum level that is technically 
feasible and economically justified, as provided in subsections 
(o) and (p) of section 325.''.
    (e) Standards for Commercial Clothes Washers.--Section 342 
of the Energy Policy and Conservation Act (42 U.S.C. 6313) (as 
amended by subsection (d)) is amended by adding at the end the 
following:
    ``(e) Commercial Clothes Washers.--(1) Each commercial 
clothes washer manufactured on or after January 1, 2007, shall 
have--
            ``(A) a Modified Energy Factor of at least 1.26; 
        and
            ``(B) a Water Factor of not more than 9.5.
    ``(2)(A)(i) Not later than January 1, 2010, the Secretary 
shall publish a final rule to determine whether the standards 
established under paragraph (1) should be amended.
    ``(ii) The rule published under clause (i) shall provide 
that any amended standard shall apply to products manufactured 
3 years after the date on which the final amended standard is 
published.
    ``(B)(i) Not later than January 1, 2015, the Secretary 
shall publish a final rule to determine whether the standards 
established under paragraph (1) should be amended.
    ``(ii) The rule published under clause (i) shall provide 
that any amended standard shall apply to products manufactured 
3 years after the date on which the final amended standard is 
published.''.
    (f) Test Procedures.--Section 343 of the Energy Policy and 
Conservation Act (42 U.S.C. 6314) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)--
                            (i) in subparagraph (A), by 
                        inserting ``very large commercial 
                        package air conditioning and heating 
                        equipment,'' after ``large commercial 
                        package air conditioning and heating 
                        equipment,''; and
                            (ii) in subparagraph (B), by 
                        inserting ``very large commercial 
                        package air conditioning and heating 
                        equipment,'' after ``large commercial 
                        package air conditioning and heating 
                        equipment,''; and
                    (B) by adding at the end the following:
    ``(6)(A)(i) In the case of commercial refrigerators, 
freezers, and refrigerator-freezers, the test procedures shall 
be--
            ``(I) the test procedures determined by the 
        Secretary to be generally accepted industry testing 
        procedures; or
            ``(II) rating procedures developed or recognized by 
        the ASHRAE or by the American National Standards 
        Institute.
    ``(ii) In the case of self-contained refrigerators, 
freezers, and refrigerator-freezers to which standards are 
applicable under paragraphs (2) and (3) of section 342(c), the 
initial test procedures shall be the ASHRAE 117 test procedure 
that is in effect on January 1, 2005.
    ``(B)(i) In the case of commercial refrigerators, freezers, 
and refrigerators-freezers with doors covered by the standards 
adopted in February 2002, by the California Energy Commission, 
the rating temperatures shall be the integrated average 
temperature of 38 degrees F (   2 degrees F) for 
refrigerator compartments and 0 degrees F (   2 
degrees F) for freezer compartments.
    ``(C) The Secretary shall issue a rule in accordance with 
paragraphs (2) and (3) to establish the appropriate rating 
temperatures for the other products for which standards will be 
established under section 342(c)(4).
    ``(D) In establishing the appropriate test temperatures 
under this subparagraph, the Secretary shall follow the 
procedures and meet the requirements under section 323(e).
    ``(E)(i) Not later than 180 days after the publication of 
the new ASHRAE 117 test procedure, if the ASHRAE 117 test 
procedure for commercial refrigerators, freezers, and 
refrigerator-freezers is amended, the Secretary shall, by rule, 
amend the test procedure for the product as necessary to ensure 
that the test procedure is consistent with the amended ASHRAE 
117 test procedure, unless the Secretary makes a determination, 
by rule, and supported by clear and convincing evidence, that 
to do so would not meet the requirements for test procedures 
under paragraphs (2) and (3).
    ``(ii) If the Secretary determines that 180 days is an 
insufficient period during which to review and adopt the 
amended test procedure or rating procedure under clause (i), 
the Secretary shall publish a notice in the Federal Register 
stating the intent of the Secretary to wait not longer than 1 
additional year before putting into effect an amended test 
procedure or rating procedure.
    ``(F)(i) If a test procedure other than the ASHRAE 117 test 
procedure is approved by the American National Standards 
Institute, the Secretary shall, by rule--
            ``(I) review the relative strengths and weaknesses 
        of the new test procedure relative to the ASHRAE 117 
        test procedure; and
            ``(II) based on that review, adopt 1 new test 
        procedure for use in the standards program.
    ``(ii) If a new test procedure is adopted under clause 
(i)--
            ``(I) section 323(e) shall apply; and
            ``(II) subparagraph (B) shall apply to the adopted 
        test procedure.
    ``(7)(A) In the case of automatic commercial ice makers, 
the test procedures shall be the test procedures specified in 
Air-Conditioning and Refrigeration Institute Standard 810-2003, 
as in effect on January 1, 2005.
    ``(B)(i) If Air-Conditioning and Refrigeration Institute 
Standard 810-2003 is amended, the Secretary shall amend the 
test procedures established in subparagraph (A) as necessary to 
be consistent with the amended Air-Conditioning and 
Refrigeration Institute Standard, unless the Secretary 
determines, by rule, published in the Federal Register and 
supported by clear and convincing evidence, that to do so would 
not meet the requirements for test procedures under paragraphs 
(2) and (3).
    ``(ii) If the Secretary issues a rule under clause (i) 
containing a determination described in clause (ii), the rule 
may establish an amended test procedure for the product that 
meets the requirements of paragraphs (2) and (3).
    ``(C) The Secretary shall comply with section 323(e) in 
establishing any amended test procedure under this paragraph.
    ``(8) With respect to commercial clothes washers, the test 
procedures shall be the same as the test procedures established 
by the Secretary for residential clothes washers under section 
325(g).''; and
            (2) in subsection (d)(1), by inserting ``very large 
        commercial package air conditioning and heating 
        equipment, commercial refrigerators, freezers, and 
        refrigerator-freezers, automatic commercial ice makers, 
        commercial clothes washers,'' after ``large commercial 
        package air conditioning and heating equipment,''.
    (g) Labeling.--Section 344(e) of the Energy Policy and 
Conservation Act (42 U.S.C. 6315(e)) is amended by inserting 
``very large commercial package air conditioning and heating 
equipment, commercial refrigerators, freezers, and 
refrigerator-freezers, automatic commercial ice makers, 
commercial clothes washers,'' after ``large commercial package 
air conditioning and heating equipment,'' each place it 
appears.
    (h) Administration, Penalties, Enforcement, and 
Preemption.--Section 345 of the Energy Policy and Conservation 
Act (42 U.S.C. 6316) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (7), by striking ``and'' 
                at the end;
                    (B) in paragraph (8), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) in the case of commercial clothes washers, 
        section 327(b)(1) shall be applied as if the National 
        Appliance Energy Conservation Act of 1987 was the 
        Energy Policy Act of 2005.'';
            (2) in the first sentence of subsection (b)(1), by 
        striking ``part B'' and inserting ``part A''; and
            (3) by adding at the end the following:
    ``(d)(1) Except as provided in paragraphs (2) and (3), 
section 327 shall apply with respect to very large commercial 
package air conditioning and heating equipment to the same 
extent and in the same manner as section 327 applies under part 
A on the date of enactment of this subsection.
    ``(2) Any State or local standard issued before the date of 
enactment of this subsection shall not be preempted until the 
standards established under section 342(a)(9) take effect on 
January 1, 2010.
    ``(e)(1)(A) Subsections (a), (b), and (d) of section 326, 
subsections (m) through (s) of section 325, and sections 328 
through 336 shall apply with respect to commercial 
refrigerators, freezers, and refrigerator-freezers to the same 
extent and in the same manner as those provisions apply under 
part A.
    ``(B) In applying those provisions to commercial 
refrigerators, freezers, and refrigerator-freezers, paragraphs 
(1), (2), (3), and (4) of subsection (a) shall apply.
    ``(2)(A) Section 327 shall apply to commercial 
refrigerators, freezers, and refrigerator-freezers for which 
standards are established under paragraphs (2) and (3) of 
section 342(c) to the same extent and in the same manner as 
those provisions apply under part A on the date of enactment of 
this subsection, except that any State or local standard issued 
before the date of enactment of this subsection shall not be 
preempted until the standards established under paragraphs (2) 
and (3) of section 342(c) take effect.
    ``(B) In applying section 327 in accordance with 
subparagraph (A), paragraphs (1), (2), and (3) of subsection 
(a) shall apply.
    ``(3)(A) Section 327 shall apply to commercial 
refrigerators, freezers, and refrigerator-freezers for which 
standards are established under section 342(c)(4) to the same 
extent and in the same manner as the provisions apply under 
part A on the date of publication of the final rule by the 
Secretary, except that any State or local standard issued 
before the date of publication of the final rule by the 
Secretary shall not be preempted until the standards take 
effect.
    ``(B) In applying section 327 in accordance with 
subparagraph (A), paragraphs (1), (2), and (3) of subsection 
(a) shall apply.
    ``(4)(A) If the Secretary does not issue a final rule for a 
specific type of commercial refrigerator, freezer, or 
refrigerator-freezer within the time frame specified in section 
342(c)(5), subsections (b) and (c) of section 327 shall not 
apply to that specific type of refrigerator, freezer, or 
refrigerator-freezer for the period beginning on the date that 
is 2 years after the scheduled date for a final rule and ending 
on the date on which the Secretary publishes a final rule 
covering the specific type of refrigerator, freezer, or 
refrigerator-freezer.
    ``(B) Any State or local standard issued before the date of 
publication of the final rule shall not be preempted until the 
final rule takes effect.
    ``(5)(A) In the case of any commercial refrigerator, 
freezer, or refrigerator-freezer to which standards are 
applicable under paragraphs (2) and (3) of section 342(c), the 
Secretary shall require manufacturers to certify, through an 
independent, nationally recognized testing or certification 
program, that the commercial refrigerator, freezer, or 
refrigerator-freezer meets the applicable standard.
    ``(B) The Secretary shall, to the maximum extent 
practicable, encourage the establishment of at least 2 
independent testing and certification programs.
    ``(C) As part of certification, information on equipment 
energy use and interior volume shall be made available to the 
Secretary.
    ``(f)(1)(A)(i) Except as provided in clause (ii), section 
327 shall apply to automatic commercial ice makers for which 
standards have been established under section 342(d)(1) to the 
same extent and in the same manner as the section applies under 
part A on the date of enactment of this subsection.
    ``(ii) Any State standard issued before the date of 
enactment of this subsection shall not be preempted until the 
standards established under section 342(d)(1) take effect.
    ``(B) In applying section 327 to the equipment under 
subparagraph (A), paragraphs (1), (2), and (3) of subsection 
(a) shall apply.
    ``(2)(A)(i) Except as provided in clause (ii), section 327 
shall apply to automatic commercial ice makers for which 
standards have been established under section 342(d)(2) to the 
same extent and in the same manner as the section applies under 
part A on the date of publication of the final rule by the 
Secretary.
    ``(ii) Any State standard issued before the date of 
publication of the final rule by the Secretary shall not be 
preempted until the standards established under section 
342(d)(2) take effect.
    ``(B) In applying section 327 in accordance with 
subparagraph (A), paragraphs (1), (2), and (3) of subsection 
(a) shall apply.
    ``(3)(A) If the Secretary does not issue a final rule for a 
specific type of automatic commercial ice maker within the time 
frame specified in section 342(d), subsections (b) and (c) of 
section 327 shall no longer apply to the specific type of 
automatic commercial ice maker for the period beginning on the 
day after the scheduled date for a final rule and ending on the 
date on which the Secretary publishes a final rule covering the 
specific type of automatic commercial ice maker.
    ``(B) Any State standard issued before the publication of 
the final rule shall not be preempted until the standards 
established in the final rule take effect.
    ``(4)(A) The Secretary shall monitor whether manufacturers 
are reducing harvest rates below tested values for the purpose 
of bringing non-complying equipment into compliance.
    ``(B) If the Secretary finds that there has been a 
substantial amount of manipulation with respect to harvest 
rates under subparagraph (A), the Secretary shall take steps to 
minimize the manipulation, such as requiring harvest rates to 
be within 5 percent of tested values.
    ``(g)(1)(A) If the Secretary does not issue a final rule 
for commercial clothes washers within the timeframe specified 
in section 342(e)(2), subsections (b) and (c) of section 327 
shall not apply to commercial clothes washers for the period 
beginning on the day after the scheduled date for a final rule 
and ending on the date on which the Secretary publishes a final 
rule covering commercial clothes washers.
    ``(B) Any State or local standard issued before the date on 
which the Secretary publishes a final rule shall not be 
preempted until the standards established under section 
342(e)(2) take effect.
    ``(2) The Secretary shall undertake an educational program 
to inform owners of laundromats, multifamily housing, and other 
sites where commercial clothes washers are located about the 
new standard, including impacts on washer purchase costs and 
options for recovering those costs through coin collection.''.

SEC. 137. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product 
Labeling.--Section 324(a)(2) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding at 
the end the following:
    ``(F)(i) Not later than 90 days after the date of enactment 
of this subparagraph, the Commission shall initiate a 
rulemaking to consider--
            ``(I) the effectiveness of the consumer products 
        labeling program in assisting consumers in making 
        purchasing decisions and improving energy efficiency; 
        and
            ``(II) changes to the labeling rules (including 
        categorical labeling) that would improve the 
        effectiveness of consumer product labels.
    ``(ii) Not later than 2 years after the date of enactment 
of this subparagraph, the Commission shall complete the 
rulemaking initiated under clause (i).
    ``(G)(i) Not later than 18 months after the date of 
enactment of this subparagraph, the Commission shall issue by 
rule, in accordance with this section, labeling requirements 
for the electricity used by ceiling fans to circulate air in a 
room.
    ``(ii) The rule issued under clause (i) shall apply to 
products manufactured after the later of--
            ``(I) January 1, 2009; or
            ``(II) the date that is 60 days after the final 
        rule is issued.''.
    (b) Rulemaking on Labeling for Additional Products.--
Section 324(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)) is amended by adding at the end the following:
    ``(5)(A) For covered products described in subsections (u) 
through (ff) of section 325, after a test procedure has been 
prescribed under section 323, the Secretary or the Commission, 
as appropriate, may prescribe, by rule, under this section 
labeling requirements for the products.
    ``(B) In the case of products to which TP-1 standards under 
section 325(y) apply, labeling requirements shall be based on 
the `Standard for the Labeling of Distribution Transformer 
Efficiency' prescribed by the National Electrical Manufacturers 
Association (NEMA TP-3) as in effect on the date of enactment 
of this paragraph.
    ``(C) In the case of dehumidifiers covered under section 
325(dd), the Commission shall not require an `Energy Guide' 
label.''.

SEC. 138. INTERMITTENT ESCALATOR STUDY.

    (a) In General.--The Administrator of General Services 
shall conduct a study on the advantages and disadvantages of 
employing intermittent escalators in the United States.
    (b) Contents.--Such study shall include an analysis of--
            (1) the energy end-cost savings derived from the 
        use of intermittent escalators;
            (2) the cost savings derived from reduced 
        maintenance requirements; and
            (3) such other issues as the Administrator 
        considers appropriate.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Administrator shall transmit 
to Congress a report on the results of the study.
    (d) Definition.--For purpose of this section, the term 
``intermittent escalator'' means an escalator that remains in a 
stationary position until it automatically operates at the 
approach of a passenger, returning to a stationary position 
after the passenger completes passage.

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

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

SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.

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

SEC. 141. REPORT ON FAILURE TO COMPLY WITH DEADLINES FOR NEW OR REVISED 
                    ENERGY CONSERVATION STANDARDS.

    (a) Initial Report.--The Secretary shall submit a report to 
Congress regarding each new or revised energy conservation or 
water use standard which the Secretary has failed to issue in 
conformance with the deadlines established in the Energy Policy 
and Conservation Act. Such report shall state the reasons why 
the Secretary has failed to comply with the deadline for 
issuances of the new or revised standard and set forth the 
Secretary's plan for expeditiously prescribing such new or 
revised standard. The Secretary's initial report shall be 
submitted not later than 6 months following enactment of this 
Act and subsequent reports shall be submitted whenever the 
Secretary determines that additional deadlines for issuance of 
new or revised standards have been missed.
    (b) Implementation Report.--Every 6 months following the 
submission of a report under subsection (a) until the adoption 
of a new or revised standard described in such report, the 
Secretary shall submit to the Congress an implementation report 
describing the Secretary's progress in implementing the 
Secretary's plan or the issuance of the new or revised 
standard.

                       Subtitle D--Public Housing

SEC. 151. PUBLIC HOUSING CAPITAL FUND.

    Section 9 of the United States Housing Act of 1937 (42 
U.S.C. 1437g) is amended--
            (1) in subsection (d)(1)--
                    (A) in subparagraph (I), by striking 
                ``and'' at the end;
                    (B) in subparagraph (J), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(K) improvement of energy and water-use 
                efficiency by installing fixtures and fittings 
                that conform to the American Society of 
                Mechanical Engineers/American National 
                Standards Institute standards A112.19.2-1998 
                and A112.18.1-2000, or any revision thereto, 
                applicable at the time of installation, and by 
                increasing energy efficiency and water 
                conservation by such other means as the 
                Secretary determines are appropriate; and
                    ``(L) integrated utility management and 
                capital planning to maximize energy 
                conservation and efficiency measures.''; and
            (2) in subsection (e)(2)(C)--
                    (A) by striking ``The'' and inserting the 
                following:
                            ``(i) In general.--The''; and
                    (B) by adding at the end the following:
                            ``(ii) Third party contracts.--
                        Contracts described in clause (i) may 
                        include contracts for equipment 
                        conversions to less costly utility 
                        sources, projects with resident-paid 
                        utilities, and adjustments to frozen 
                        base year consumption, including 
                        systems repaired to meet applicable 
                        building and safety codes and 
                        adjustments for occupancy rates 
                        increased by rehabilitation.
                            ``(iii) Term of contract.--The 
                        total term of a contract described in 
                        clause (i) shall not exceed 20 years to 
                        allow longer payback periods for 
                        retrofits, including windows, heating 
                        system replacements, wall insulation, 
                        site-based generation, advanced energy 
                        savings technologies, including 
                        renewable energy generation, and other 
                        such retrofits.''.

SEC. 152. ENERGY-EFFICIENT APPLIANCES.

    In purchasing appliances, a public housing agency shall 
purchase energy-efficient appliances that are Energy Star 
products or FEMP-designated products, as such terms are defined 
in section 553 of the National Energy Conservation Policy Act), 
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.

SEC. 153. ENERGY EFFICIENCY STANDARDS.

    Section 109 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12709) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``1 year after the 
                        date of the enactment of the Energy 
                        Policy Act of 1992'' and inserting 
                        ``September 30, 2006'';
                            (ii) in subparagraph (A), by 
                        striking ``and'' at the end;
                            (iii) in subparagraph (B), by 
                        striking the period at the end and 
                        inserting ``; and''; and
                            (iv) by adding at the end the 
                        following:
                    ``(C) rehabilitation and new construction 
                of public and assisted housing funded by HOPE 
                VI revitalization grants under section 24 of 
                the United States Housing Act of 1937 (42 
                U.S.C. 1437v), where such standards are 
                determined to be cost effective by the 
                Secretary of Housing and Urban Development.''; 
                and
                    (B) in paragraph (2), by inserting ``, and, 
                with respect to rehabilitation and new 
                construction of public and assisted housing 
                funded by HOPE VI revitalization grants under 
                section 24 of the United States Housing Act of 
                1937 (42 U.S.C. 1437v), the 2003 International 
                Energy Conservation Code'' after ``90.1-
                1989')'';
            (2) in subsection (b)--
                    (A) by striking ``within 1 year after the 
                date of the enactment of the Energy Policy Act 
                of 1992'' and inserting ``by September 30, 
                2006''; and
                    (B) by inserting ``, and, with respect to 
                rehabilitation and new construction of public 
                and assisted housing funded by HOPE VI 
                revitalization grants under section 24 of the 
                United States Housing Act of 1937 (42 U.S.C. 
                1437v), the 2003 International Energy 
                Conservation Code'' before the period at the 
                end; and
            (3) in subsection (c)--
                    (A) in the heading, by inserting ``and the 
                International Energy Conservation Code'' after 
                ``Model Energy Code''; and
                    (B) by inserting ``, or, with respect to 
                rehabilitation and new construction of public 
                and assisted housing funded by HOPE VI 
                revitalization grants under section 24 of the 
                United States Housing Act of 1937 (42 U.S.C. 
                1437v), the 2003 International Energy 
                Conservation Code'' after ``1989''.

SEC. 154. ENERGY STRATEGY FOR HUD.

    The Secretary of Housing and Urban Development shall 
develop and implement an integrated strategy to reduce utility 
expenses through cost-effective energy conservation and 
efficiency measures and energy efficient design and 
construction of public and assisted housing. The energy 
strategy shall include the development of energy reduction 
goals and incentives for public housing agencies. The Secretary 
shall submit a report to Congress, not later than 1 year after 
the date of the enactment of this Act, on the energy strategy 
and the actions taken by the Department of Housing and Urban 
Development to monitor the energy usage of public housing 
agencies and shall submit an update every 2 years thereafter on 
progress in implementing the strategy.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 6 months after the 
date of enactment of this Act, and each year thereafter, the 
Secretary shall review the available assessments of renewable 
energy resources within the United States, including solar, 
wind, biomass, ocean (includingtidal, wave, current, and 
thermal), geothermal, and hydroelectric energy resources, and undertake 
new assessments as necessary, taking into account changes in market 
conditions, available technologies, and other relevant factors.
    (b) Contents of Reports.--Not later than 1 year after the 
date of enactment of this Act, and each year thereafter, the 
Secretary shall publish a report based on the assessment under 
subsection (a). The report shall contain--
            (1) a detailed inventory describing the available 
        amount and characteristics of the renewable energy 
        resources; and
            (2) such other information as the Secretary 
        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, together with an identification of any 
        barriers to providing adequate transmission for remote 
        sources of renewable energy resources to current and 
        emerging markets, recommendations for removing or 
        addressing such barriers, and ways to provide access to 
        the grid that do not unfairly disadvantage renewable or 
        other energy producers.
    (c) Authorization of Appropriations.--For the purposes of 
this section, there are authorized to be appropriated to the 
Secretary $10,000,000 for each of fiscal years 2006 through 
2010.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(a)) is amended--
            (1) by striking the last sentence;
            (2) by designating the first, second, and third 
        sentences as paragraphs (1), (2), and (3), 
        respectively;
            (3) in paragraph (3) (as so designated), by 
        striking ``and which satisfies'' and all that follows 
        through ``deems necessary''; and
            (4) by adding at the end the following:
    ``(4)(A) Subject to subparagraph (B), if there are 
insufficient appropriations to make full payments for electric 
production from all qualified renewable energy facilities for a 
fiscal year, the Secretary shall assign--
            ``(i) 60 percent of appropriated funds for the 
        fiscal year to facilities that use solar, wind, ocean 
        (including tidal, wave, current, and thermal), 
        geothermal, or closed-loop (dedicated energy crops) 
        biomass technologies to generate electricity; and
            ``(ii) 40 percent of appropriated funds for the 
        fiscal year to other projects.
    ``(B) After submitting to Congress an explanation of the 
reasons for the alteration, the Secretary may alter the 
percentage requirements of subparagraph (A).''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) 
of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is 
amended--
            (1) by striking ``a State or any political'' and 
        all that follows through ``nonprofit electrical 
        cooperative'' and inserting ``a not-for-profit electric 
        cooperative, a public utility described in section 115 
        of the Internal Revenue Code of 1986, a State, 
        Commonwealth, territory, or possession of the United 
        States, or the District of Columbia, or a political 
        subdivision thereof, an Indian tribal government or 
        subdivision thereof, or a Native Corporation (as 
        defined in section 3 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602)),''; and
            (2) by inserting ``landfill gas, livestock methane, 
        ocean (including tidal, wave, current, and thermal),'' 
        after ``wind, biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by striking 
``during the 10-fiscal year period beginning with the first 
full fiscal year occurring after the enactment of this 
section'' and inserting ``before October 1, 2016''.
    (d) Payment Period.--Section 1212(d) of the Energy Policy 
Act of 1992 (42 U.S.C. 13317(d)) is amended in the second 
sentence by inserting ``, or in which the Secretary determines 
that all necessary Federal and State authorizations have been 
obtained to begin construction of the facility'' after 
``eligible for such payments''.
    (e) Amount of Payment.--Section 1212(e)(1) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended in the 
first sentence by inserting ``landfill gas, livestock methane, 
ocean (including tidal, wave, current, and thermal),'' after 
``wind, biomass,''.
    (f) Termination of Authority.--Section 1212(f) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by 
striking ``the expiration of'' and all that follows through 
``of this section'' and inserting ``September 30, 2026''.
    (g) Authorization of Appropriations.--Section 1212 of the 
Energy Policy Act of 1992 (42 U.S.C. 13317) is amended by 
striking subsection (g) and inserting the following:
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for each of fiscal years 2006 through 
2026, to remain available until expended.''.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the 
Secretary, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
            (1) Not less than 3 percent in fiscal years 2007 
        through 2009.
            (2) Not less than 5 percent in fiscal years 2010 
        through 2012.
            (3) Not less than 7.5 percent in fiscal year 2013 
        and each fiscal year thereafter.
    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means any lignin 
        waste material that is segregated from other waste 
        materials and is determined to be nonhazardous by the 
        Administrator of the Environmental Protection Agency 
        and any solid, nonhazardous, cellulosic material that 
        is derived from--
                    (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                    (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                    (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                    (D) a plant that is grown exclusively as a 
                fuel for the production of electricity.
            (2) Renewable energy.--The term ``renewable 
        energy'' means electric energy generated from solar, 
        wind, biomass, landfill gas, ocean (including tidal, 
        wave, current, and thermal), geothermal, municipal 
        solid waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new 
        capacity at an existing hydroelectric project.
    (c) Calculation.--For purposes of determining compliance 
with the requirement of this section, the amount of renewable 
energy shall be doubled if--
            (1) the renewable energy is produced and used on-
        site at a Federal facility;
            (2) the renewable energy is produced on Federal 
        lands and used at a Federal facility; or
            (3) the renewable energy is produced on Indian land 
        as defined in title XXVI of the Energy Policy Act of 
        1992 (25 U.S.C. 3501 et seq.) and used at a Federal 
        facility.
    (d) Report.--Not later than April 15, 2007, and every 2 
years thereafter, the Secretary shall provide a report to 
Congress on the progress of the Federal Government in meeting 
the goals established by this section.

SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    (a) In General.--Subchapter VI of chapter 31 of title 40, 
United States Code, is amended by adding at the end the 
following:

``Sec. 3177. Use of photovoltaic energy in public buildings

    ``(a) Photovoltaic Energy Commercialization Program.--
            ``(1) In general.--The Administrator of General 
        Services may establish a photovoltaic energy 
        commercialization program for the procurement and 
        installation of photovoltaic solar electric systems for 
        electric production in new and existing public 
        buildings.
            ``(2) Purposes.--The purposes of the program shall 
        be to accomplish the following:
                    ``(A) To accelerate the growth of a 
                commercially viable photovoltaic industry to 
                make this energy system available to the 
                general public as an option which can reduce 
                the national consumption of fossil fuel.
                    ``(B) To reduce the fossil fuel consumption 
                and costs of the Federal Government.
                    ``(C) To attain the goal of installing 
                solar energy systems in 20,000 Federal 
                buildings by 2010, as contained in the Federal 
                Government's Million Solar Roof Initiative of 
                1997.
                    ``(D) To stimulate the general use within 
                the Federal Government of life-cycle costing 
                and innovative procurement methods.
                    ``(E) To develop program performance data 
                to support policy decisions on future incentive 
                programs with respect to energy.
            ``(3) Acquisition of photovoltaic solar electric 
        systems.--
                    ``(A) In general.--The program shall 
                provide for the acquisition of photovoltaic 
                solar electric systems and associated storage 
                capability for use in public buildings.
                    ``(B) Acquisition levels.--The acquisition 
                of photovoltaic electric systems shall be at a 
                level substantial enough to allow use of low-
                cost production techniques with at least 150 
                megawatts (peak) cumulative acquired during the 
                5 years of the program.
            ``(4) Administration.--The Administrator shall 
        administer the program and shall--
                    ``(A) issue such rules and regulations as 
                may be appropriate to monitor and assess the 
                performance and operation of photovoltaic solar 
                electric systems installed pursuant to this 
                subsection;
                    ``(B) develop innovative procurement 
                strategies for the acquisition of such systems; 
                and
                    ``(C) transmit to Congress an annual report 
                on the results of the program.
    ``(b) Photovoltaic Systems Evaluation Program.--
            ``(1) In general.--Not later than 60 days after the 
        date of enactment of this section, the Administrator 
        shall establish a photovoltaic solar energy systems 
        evaluation program to evaluate such photovoltaic solar 
        energy systems as are required in public buildings.
            ``(2) Program requirement.--In evaluating 
        photovoltaic solar energy systems under the program, 
        the Administrator shall ensure that such systems 
        reflect the most advanced technology.
    ``(c) Authorization of Appropriations.--
            ``(1) Photovoltaic energy commercialization 
        program.--There are authorized to be appropriated to 
        carry out subsection (a) $50,000,000 for each of fiscal 
        years 2006 through 2010. Such sums shall remain 
        available until expended.
            ``(2) Photovoltaic systems evaluation program.--
        There are authorized to be appropriated to carry out 
        subsection (b) $10,000,000 for each of fiscal years 
        2006 through 2010. Such sums shall remain available 
        until expended.''.
    (b) Conforming Amendment.--The table of sections for the 
National Energy Conservation Policy Act is amended by inserting 
after the item relating to section 569 the following:

``Sec. 570. Use of photovoltaic energy in public buildings''.

SEC. 205. BIOBASED PRODUCTS.

    Section 9002(c)(1) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by 
inserting ``or such items that comply with the regulations 
issued under section 103 of Public Law 100-556 (42 U.S.C. 
6914b-1)'' after ``practicable''.

SEC. 206. RENEWABLE ENERGY SECURITY.

    (a) Weatherization Assistance.--Section 415(c) of the 
Energy Conservation and Production Act (42 U.S.C. 6865(c)) is 
amended--
            (1) in paragraph (1), by striking ``in paragraph 
        (3)'' and inserting ``in paragraphs (3) and (4)'';
            (2) in paragraph (3), by striking ``$2,500 per 
        dwelling unit average provided in paragraph (1)'' and 
        inserting ``dwelling unit averages provided in 
        paragraphs (1) and (4)''; and
            (3) by adding at the end the following new 
        paragraphs:
    ``(4) The expenditure of financial assistance provided 
under this part for labor, weatherization materials, and 
related matters for a renewable energy system shall not exceed 
an average of $3,000 per dwelling unit.
    ``(5)(A) The Secretary shall by regulations--
            ``(i) establish the criteria which are to be used 
        in prescribing performance and quality standards under 
        paragraph (6)(A)(ii) or in specifying any form of 
        renewable energy under paragraph (6)(A)(i)(I); and
            ``(ii) establish a procedure under which a 
        manufacturer of an item may request the Secretary to 
        certify that the item will be treated, for purposes of 
        this paragraph, as a renewable energy system.
    ``(B) The Secretary shall make a final determination with 
respect to any request filed under subparagraph (A)(ii) within 
1 year after the filing of the request, together with any 
information required to be filed with such request under 
subparagraph (A)(ii).
    ``(C) Each month the Secretary shall publish a report of 
any request under subparagraph (A)(ii) which has been denied 
during the preceding month and the reasons for the denial.
    ``(D) The Secretary shall not specify any form of renewable 
energy under paragraph (6)(A)(i)(I) unless the Secretary 
determines that--
            ``(i) there will be a reduction in oil or natural 
        gas consumption as a result of such specification;
            ``(ii) such specification will not result in an 
        increased use of any item which is known to be, or 
        reasonably suspected to be, environmentally hazardous 
        or a threat to public health or safety; and
            ``(iii) available Federal subsidies do not make 
        such specification unnecessary or inappropriate (in the 
        light of the most advantageous allocation of economic 
        resources).
    ``(6) In this subsection--
            ``(A) the term `renewable energy system' means a 
        system which--
                    ``(i) when installed in connection with a 
                dwelling, transmits or uses--
                            ``(I) solar energy, energy derived 
                        from the geothermal deposits, energy 
                        derived from biomass, or any other form 
                        of renewable energy which the Secretary 
                        specifies by regulations, for the 
                        purpose of heating or cooling such 
                        dwelling or providing hot water or 
                        electricity for use within such 
                        dwelling; or
                            ``(II) wind energy for nonbusiness 
                        residential purposes;
                    ``(ii) meets the performance and quality 
                standards (if any) which have been prescribed 
                by the Secretary by regulations;
                    ``(iii) in the case of a combustion rated 
                system, has a thermal efficiency rating of at 
                least 75 percent; and
                    ``(iv) in the case of a solar system, has a 
                thermal efficiency rating of at least 15 
                percent; and
            ``(B) the term `biomass' means any organic matter 
        that is available on a renewable or recurring basis, 
        including agricultural crops and trees, wood and wood 
        wastes and residues, plants (including aquatic plants), 
        grasses, residues, fibers, and animal wastes, municipal 
        wastes, and other waste materials.''.
    (b) District Heating and Cooling Programs.--Section 172 of 
the Energy Policy Act of 1992 (42 U.S.C. 13451 note) is 
amended--
            (1) in subsection (a)--
                    (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) evaluate the use of renewable energy systems 
        (as such term is defined in section 415(c) of the 
        Energy Conservation and Production Act (42 U.S.C. 
        6865(c))) in residential buildings.''; and
            (2) in subsection (b), by striking ``this Act'' and 
        inserting ``the Energy Policy Act of 2005''.
    (c) Rebate Program.--
            (1) Establishment.--The Secretary shall establish a 
        program providing rebates for consumers for 
        expenditures made for the installation of a renewable 
        energy system in connection with a dwelling unit or 
        small business.
            (2) Amount of rebate.--Rebates provided under the 
        program established under paragraph (1) shall be in an 
        amount not to exceed the lesser of--
                    (A) 25 percent of the expenditures 
                described in paragraph (1) made by the 
                consumer; or
                    (B) $3,000.
            (3) Definition.--For purposes of this subsection, 
        the term ``renewable energy system'' has the meaning 
        given that term in section 415(c)(6)(A) of the Energy 
        Conservation and Production Act (42 U.S.C. 
        6865(c)(6)(A)), as added by subsection (a)(3) of this 
        section.
            (4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary for 
        carrying out this subsection, to remain available until 
        expended--
                    (A) $150,000,000 for fiscal year 2006;
                    (B) $150,000,000 for fiscal year 2007;
                    (C) $200,000,000 for fiscal year 2008;
                    (D) $250,000,000 for fiscal year 2009; and
                    (E) $250,000,000 for fiscal year 2010.
    (d) Renewable Fuel Inventory.--Not later than 180 days 
after the date of enactment of this Act, the Secretary shall 
transmit to Congress a report containing--
            (1) an inventory of renewable fuels available for 
        consumers; and
            (2) a projection of future inventories of renewable 
        fuels based on the incentives provided in this section.

SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.

    There is authorized to be appropriated to the General 
Services Administration to install a photovoltaic system, as 
set forth in the Sun Wall Design Project, for the headquarters 
building of the Department of Energy located at 1000 
Independence Avenue Southwest in the District of Columbia, 
commonly known as the Forrestal Building, $20,000,000 for 
fiscal year 2006. Such sums shall remain available until 
expended.

SEC. 208. SUGAR CANE ETHANOL PROGRAM.

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

SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

    The Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2601 et seq.) is amended in title VI by adding at the 
end the following:

``SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) The term `eligible grantee' means a local 
        government or municipality, peoples' utility district, 
        irrigation district, and cooperative, nonprofit, or 
        limited-dividend association in a rural area.
            ``(2) The term `incremental hydropower' means 
        additional generation achieved from increased 
        efficiency after January 1, 2005, at a hydroelectric 
        dam that was placed in service before January 1, 2005.
            ``(3) The term `renewable energy' means electricity 
        generated from--
                    ``(A) a renewable energy source; or
                    ``(B) hydrogen, other than hydrogen 
                produced from a fossil fuel, that is produced 
                from a renewable energy source.
            ``(4) The term `renewable energy source' means--
                    ``(A) wind;
                    ``(B) ocean waves;
                    ``(C) biomass;
                    ``(D) solar
                    ``(E) landfill gas;
                    ``(F) incremental hydropower;
                    ``(G) livestock methane; or
                    ``(H) geothermal energy.
            ``(5) The term `rural area' means a city, town, or 
        unincorporated area that has a population of not more 
        than 10,000 inhabitants.
    ``(b) Grants.--The Secretary, in consultation with the 
Secretary of Agriculture and the Secretary of the Interior, may 
provide grants under this section to eligible grantees for the 
purpose of--
            ``(1) increasing energy efficiency, siting or 
        upgrading transmission and distribution lines serving 
        rural areas,; or
            ``(2) providing or modernizing electric generation 
        facilities that serve rural areas.
    ``(c) Grant Administration.--(1) The Secretary shall make 
grants under this section based on a determination of cost-
effectiveness and the most effective use of the funds to 
achieve the purposes described in subsection (b).
    ``(2) For each fiscal year, the Secretary shall allocate 
grant funds under this section equally between the purposes 
described in paragraphs (1) and (2) of subsection (b).
    ``(3) In making grants for the purposes described in 
subsection (b)(2), the Secretary shall give preference to 
renewable energy facilities.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
$20,000,000 for each of fiscal years 2006 through 2012.''.

SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
                    ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, 
                    AND OTHER COMMERCIAL PURPOSES.

    (a) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means 
        nonmerchantable materials or precommercial thinnings 
        that are byproducts of preventive treatments, such as 
        trees, wood, brush, thinnings, chips, and slash, that 
        are removed--
                    (A) to reduce hazardous fuels;
                    (B) to reduce or contain disease or insect 
                infestation; or
                    (C) to restore forest health.
            (2) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 4(e) of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450b(e)).
            (3) Nonmerchantable.--For purposes of subsection 
        (b), the term ``nonmerchantable'' means that portion of 
        the byproducts of preventive treatments that would not 
        otherwise be used for higher value products.
            (4) Person.--The term ``person'' includes--
                    (A) an individual;
                    (B) a community (as determined by the 
                Secretary concerned);
                    (C) an Indian tribe;
                    (D) a small business or a corporation that 
                is incorporated in the United States; and
                    (E) a nonprofit organization.
            (5) Preferred community.--The term ``preferred 
        community'' means--
                    (A) any Indian tribe;
                    (B) any town, township, municipality, or 
                other similar unit of local government (as 
                determined by the Secretary concerned) that--
                            (i) has a population of not more 
                        than 50,000 individuals; and
                            (ii) the Secretary concerned, in 
                        the sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near Federal or Indian land, 
                        the condition of which is at 
                        significant risk of catastrophic 
                        wildfire, disease, or insect 
                        infestation or which suffers from 
                        disease or insect infestation; or
                    (C) any county that--
                            (i) is not contained within a 
                        metropolitan statistical area; and
                            (ii) the Secretary concerned, in 
                        the sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near Federal or Indian land, 
                        the condition of which is at 
                        significant risk of catastrophic 
                        wildfire, disease, or insect 
                        infestation or which suffers from 
                        disease or insect infestation.
            (6) Secretary concerned.--The term ``Secretary 
        concerned'' means the Secretary of Agriculture or the 
        Secretary of the Interior.
    (b) Biomass Commercial Use Grant Program.--
            (1) In general.--The Secretary concerned may make 
        grants to any person in a preferred community that owns 
        or operates a facility that uses biomass as a raw 
        material to produce electric energy, sensible heat, or 
        transportation fuels to offset the costs incurred to 
        purchase biomass for use by such facility.
            (2) Grant amounts.--A grant under this subsection 
        may not exceed $20 per green ton of biomass delivered.
            (3) Monitoring of grant recipient activities.--As a 
        condition of a grant under this subsection, the grant 
        recipient shall keep such records as the Secretary 
        concerned may require to fully and correctly disclose 
        the use of the grant funds and all transactions 
        involved in the purchase of biomass. Upon notice by a 
        representative of the Secretary concerned, the grant 
        recipient shall afford the representative reasonable 
        access to the facility that purchases or uses biomass 
        and an opportunity to examine the inventory and records 
        of the facility.
    (c) Improved Biomass Use Grant Program.--
            (1) In general.--The Secretary concerned may make 
        grants to persons to offset the cost of projects to 
        develop or research opportunities to improve the use 
        of, or add value to, biomass. In making such grants, 
        the Secretary concerned shall give preference to 
        persons in preferred communities.
            (2) Selection.--The Secretary concerned shall 
        select a grant recipient under paragraph (1) after 
        giving consideration to--
                    (A) the anticipated public benefits of the 
                project, including the potential to develop 
                thermal or electric energy resources or 
                affordable energy;
                    (B) opportunities for the creation or 
                expansion of small businesses and micro-
                businesses;
                    (C) the potential for new job creation;
                    (D) the potential for the project to 
                improve efficiency or develop cleaner 
                technologies for biomass utilization; and
                    (E) the potential for the project to reduce 
                the hazardous fuels from the areas in greatest 
                need of treatment.
            (3) Grant amount.--A grant under this subsection 
        may not exceed $500,000.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated $50,000,000 for each of the fiscal years 
2006 through 2016 to carry out this section.
    (e) Report.--Not later than October 1, 2010, the Secretary 
of Agriculture, in consultation with the Secretary of the 
Interior, shall submit to the Committee on Energy and Natural 
Resources and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, and the Committee on Resources, the 
Committee on Energy and Commerce, and the Committee on 
Agriculture of the House of Representatives, a report 
describing the results of the grant programs authorized by this 
section. The report shall include the following:
            (1) An identification of the size, type, and use of 
        biomass by persons that receive grants under this 
        section.
            (2) The distance between the land from which the 
        biomass was removed and the facility that used the 
        biomass.
            (3) The economic impacts, particularly new job 
        creation, resulting from the grants to and operation of 
        the eligible operations.

SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF 
                    ELECTRICITY FROM RENEWABLE ENERGY RESOURCES ON 
                    PUBLIC LANDS.

    It is the sense of the Congress that the Secretary of the 
Interior should, before the end of the 10-year period beginning 
on the date of enactment of this Act, seek to have approved 
non-hydropower renewable energy projects located on the public 
lands with a generation capacity of at least 10,000 megawatts 
of electricity.

                     Subtitle B--Geothermal Energy

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``John Rishel Geothermal 
Steam Act Amendments of 2005''.

SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.

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

``SEC. 4. LEASING PROCEDURES.

    ``(a) Nominations.--The Secretary shall accept nominations 
of land to be leased at any time from qualified companies and 
individuals under this Act.
    ``(b) Competitive Lease Sale Required.--
            ``(1) In general.--Except as otherwise specifically 
        provided by this Act, all land to be leased that is not 
        subject to leasing under subsection (c) shall be leased 
        as provided in this subsection to the highest 
        responsible qualified bidder, as determined by the 
        Secretary.
            ``(2) Competitive lease sales.--The Secretary shall 
        hold a competitive lease sale at least once every 2 
        years for land in a State that has nominations pending 
        under subsection (a) if the land is otherwise available 
        for leasing.
            ``(3) Lands subject to mining claims.--Lands that 
        are subject to a mining claim for which a plan of 
        operations has been approved by the relevant Federal 
        land management agency may be available for 
        noncompetitive leasing under this section to the mining 
        claim holder.
    ``(c) Noncompetitive Leasing.--The Secretary shall make 
available for a period of 2 years for noncompetitive leasing 
any tract for which a competitive lease sale is held, but for 
which the Secretary does not receive any bids in a competitive 
lease sale.
    ``(d) Pending Lease Applications.--
            ``(1) In general.--It shall be a priority for the 
        Secretary, and for the Secretary of Agriculture with 
        respect to National Forest Systems land, to ensure 
        timely completion of administrative actions, including 
        amendments to applicable forest plans and resource 
        management plans, necessary to process applications for 
        geothermal leasing pending on the date of enactment of 
        this subsection. All future forest plans and resource 
        management plans for areas with high geothermal 
        resource potential shall consider geothermal leasing 
        and development.
            ``(2) Administration.--An application described in 
        paragraph (1) and any lease issued pursuant to the 
        application--
                    ``(A) except as provided in subparagraph 
                (B), shall be subject to this section as in 
                effect on the day before the date of enactment 
                of this paragraph; or
                    ``(B) at the election of the applicant, 
                shall be subject to this section as in effect 
                on the effective date of this paragraph.
    ``(e) Leases Sold as a Block.--If information is available 
to the Secretary indicating a geothermal resource that could be 
produced as 1 unit can reasonably be expected to underlie more 
than 1 parcel to be offered in a competitive lease sale, the 
parcels for such a resource may be offered for bidding as a 
block in the competitive lease sale.''.

SEC. 223. DIRECT USE.

    (a) Fees for Direct Use.--Section 5 of the Geothermal Steam 
Act of 1970 (30 U.S.C. 1004) is amended--
            (1) in subsection (c), by redesignating paragraphs 
        (1) and (2) as subparagraphs (A) and (B), respectively;
            (2) by redesignating subsections (a) through (d) as 
        paragraphs (1) through (4), respectively;
            (3) by inserting ``(a) In General.--'' after ``SEC. 
        5.''; and
            (4) by adding at the end the following:
    ``(b) Direct Use.--
            ``(1) In general.--Notwithstanding subsection 
        (a)(1), the Secretary shall establish a schedule of 
        fees, in lieu of royalties for geothermal resources, 
        that a lessee or its affiliate--
                    ``(A) uses for a purpose other than the 
                commercial generation of electricity; and
                    ``(B) does not sell.
            ``(2) Schedule of fees.--The schedule of fees--
                    ``(A) may be based on the quantity or 
                thermal content, or both, of geothermal 
                resources used;
                    ``(B) shall ensure a fair return to the 
                United States for use of the resource; and
                    ``(C) shall encourage development of the 
                resource.
            ``(3) State, tribal, or local governments.--If a 
        State, tribal, or local government is the lessee and 
        uses geothermal resources without sale and for public 
        purposes other than commercial generation of 
        electricity, the Secretary shall charge only a nominal 
        fee for use of the resource.
            ``(4) Final regulation.--In issuing any final 
        regulation establishing a schedule of fees under this 
        subsection, the Secretary shall seek--
                    ``(A) to provide lessees with a simplified 
                administrative system;
                    ``(B) to facilitate development of direct 
                use of geothermal resources; and
                    ``(C) to contribute to sustainable economic 
                development opportunities in the area.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal 
Steam Act of 1970 (30 U.S.C. 1003) (as amended by section 222) 
is further amended by adding at the end the following:
    ``(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify 
areas in which the land to be leased under this Act exclusively 
for direct use of geothermal resources, without sale for 
purposes other than commercial generation of electricity, may 
be leased to any qualified applicant that first applies for 
such a lease under regulations issued by the Secretary, if the 
Secretary--
            ``(1) publishes a notice of the land proposed for 
        leasing not later than 90 days before the date of the 
        issuance of the lease;
            ``(2) does not receive during the 90-day period 
        beginning on the date of the publication any nomination 
        to include the land concerned in the next competitive 
        lease sale; and
            ``(3) determines there is no competitive interest 
        in the geothermal resources in the land to be leased.
    ``(g) Area Subject to Lease for Direct Use.--
            ``(1) In general.--Subject to paragraph (2), a 
        geothermal lease for the direct use of geothermal 
        resources shall cover not more than the quantity of 
        acreage determined by the Secretary to be reasonably 
        necessary for the proposed use.
            ``(2) Limitations.--The quantity of acreage covered 
        by the lease shall not exceed the limitations 
        established under section 7.''.
    (c) Application of New Lease Terms.--The schedule of fees 
established under the amendment made by subsection (a)(4) shall 
apply with respect to payments under a lease converted under 
this subsection that are due and owing, and have been paid, on 
or after July 16, 2003. This subsection shall not require the 
refund of royalties paid to a state under section 20 of the 
Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date 
of enactment of this Act.

SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

    (a) Royalty.--Section 5 of the Geothermal Steam Act of 1970 
(30 U.S.C. 1004) is further amended--
            (1) in subsection (a) by striking paragraph (1) and 
        inserting the following:
            ``(1) a royalty on electricity produced using 
        geothermal resources, other than direct use of 
        geothermal resources, that shall be--
                    ``(A) not less than 1 percent and not more 
                than 2.5 percent of the gross proceeds from the 
                sale of electricity produced from such 
                resources during the first 10 years of 
                production under the lease; and
                    ``(B) not less than 2 and not more than 5 
                percent of the gross proceeds from the sale of 
                electricity produced from such resources during 
                each year after such 10-year period;''; and
            (2) by adding at the end the following:
    ``(c) Final Regulation Establishing Royalty Rates.--In 
issuing any final regulation establishing royalty rates under 
this section, the Secretary shall seek--
            ``(1) to provide lessees a simplified 
        administrative system;
            ``(2) to encourage new development; and
            ``(3) to achieve the same level of royalty revenues 
        over a 10-year period as the regulation in effect on 
        the date of enactment of this subsection.
    ``(d) Credits for In-Kind Payments of Electricity.--The 
Secretary may provide to a lessee a credit against royalties 
owed under this Act, in an amount equal to the value of 
electricity provided under contract to a State or county 
government that is entitled to a portion of such royalties 
under section 20 of this Act, section 35 of the Mineral Leasing 
Act (30 U.S.C. 191), except as otherwise provided by this 
section, or section 6 of the Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 355), if--
            ``(1) the Secretary has approved in advance the 
        contract between the lessee and the State or county 
        government for such in-kind payments;
            ``(2) the contract establishes a specific 
        methodology to determine the value of such credits; and
            ``(3) the maximum credit will be equal to the 
        royalty value owed to the State or county that is a 
        party to the contract and the electricity received will 
        serve as the royalty payment from the Federal 
        Government to that entity.''.
    (b) Disposal of Moneys From Sales, Bonuses, Royalties, and 
Rents.--Section 20 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1019) is amended to read as follows:

``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND 
                    ROYALTIES.

    ``(a) In General.--Except with respect to lands in the 
State of Alaska, all monies received by the United States from 
sales, bonuses, rentals, and royalties under this Act shall be 
paid into the Treasury of the United States. Of amounts 
deposited under this subsection, subject to the provisions of 
subsection (b) of section 35 of the Mineral Leasing Act (30 
U.S.C. 191(b)) and section 5(a)(2) of this Act--
            ``(1) 50 percent shall be paid to the State within 
        the boundaries of which the leased lands or geothermal 
        resources are or were located; and
            ``(2) 25 percent shall be paid to the County within 
        the boundaries of which the leased lands or geothermal 
        resources are or were located.
    ``(b) Use of Payments.--Amounts paid to a State or county 
under subsection (a) shall be used consistent with the terms of 
section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.
    (c) Near-Term Production Incentive for Existing Leases.--
            (1) In general.--Notwithstanding section 5(a) of 
        the Geothermal Steam Act of 1970, the royalty required 
        to be paid shall be 50 percent of the amount of the 
        royalty otherwise required, on any lease issued before 
        the date of enactment of this Act that does not convert 
        to new royalty terms under subsection (e)--
                    (A) with respect to commercial production 
                of energy from a facility that begins such 
                production in the 6-year period beginning on 
                the date of enactment of this Act; or
                    (B) on qualified expansion geothermal 
                energy.
            (2) 4-year application.--Paragraph (1) applies only 
        to new commercial production of energy from a facility 
        in the first 4 years of such production.
    (d) Definition of Qualified Expansion Geothermal Energy.--
In this section, the term ``qualified expansion geothermal 
energy'' means geothermal energy produced from a generation 
facility for which--
            (1) the production is increased by more than 10 
        percent as a result of expansion of the facility 
        carried out in the 6-year period beginning on the date 
        of enactment of this Act; and
            (2) such production increase is greater than 10 
        percent of the average production by the facility 
        during the 5-year period preceding the expansion of the 
        facility (as such average is adjusted to reflect any 
        trend in changes in production during that period).
    (e) Royalty Under Existing Leases.--
            (1) In general.--Any lessee under a lease issued 
        under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 
        et seq.) before the date of enactment of this Act may, 
        within the time period specified in paragraph (2), 
        submit to the Secretary of the Interior a request to 
        modify the terms of the lease relating to payment of 
        royalties to provide--
                    (A) in the case of a lease that meets the 
                requirements of subsection (b) of section 5 of 
                the Geothermal Steam Act of 1970 (30 U.S.C. 
                1004) (as amended by section 223), that 
                royalties be based on the schedule of fees 
                established under that section; and
                    (B) in the case of any other lease, that 
                royalties be computed on a percentage of the 
                gross proceeds from the sale of electricity, at 
                a royalty rate that is expected to yield total 
                royalty payments equivalent to payments that 
                would have been received for comparable 
                production under the royalty rate in effect for 
                the lease before the date of enactment of this 
                subsection.
            (2) Timing.--A request for a modification under 
        paragraph (1) shall be submitted to the Secretary of 
        the Interior by the date that is not later than--
                    (A) in the case of a lease for direct use, 
                18 months after the effective date of the 
                schedule of fees established by the Secretary 
                of the Interior under section 5 of the 
                Geothermal Steam Act of 1970 (30 U.S.C. 1004); 
                or
                    (B) in the case of any other lease, 18 
                months after the effective date of the final 
                regulation issued under subsection (a).
            (3) Application of modification.--If the lessee 
        requests modification of a lease under paragraph (1)--
                    (A) the Secretary of the Interior shall, 
                within 180 days after the receipt of the 
                request for modification, modify the lease to 
                comply with--
                            (i) in the case of a lease for 
                        direct use, the schedule of fees 
                        established by the Secretary under 
                        section 5 of the Geothermal Steam Act 
                        of 1970 (30 U.S.C. 1004); or
                            (ii) in the case of any other 
                        lease, the royalty for the lease 
                        established under paragraph (1)(B); and
                    (B) the modification shall apply to any use 
                of geothermal resources to which subsection (a) 
                applies that occurs after the date of the 
                modification.
            (4) Consultation.--The Secretary of the Interior 
        shall consult with the State and local governments 
        affected by any proposed changes in lease royalty terms 
        under this subsection.

SEC. 225. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING ON FEDERAL 
                    LANDS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary of the Interior and 
the Secretary of Agriculture shall enter into andsubmit to 
Congress a memorandum of understanding in accordance with this section, 
the Geothermal Steam Act of 1970 (as amended by this Act), and other 
applicable laws, regarding coordination of leasing and permitting for 
geothermal development of public lands and National Forest System lands 
under their respective jurisdictions.
    (b) Lease and Permit Applications.--The memorandum of 
understanding shall--
            (1) establish an administrative procedure for 
        processing geothermal lease applications, including 
        lines of authority, steps in application processing, 
        and time limits for application procession;
            (2) establish a 5-year program for geothermal 
        leasing of lands in the National Forest System, and a 
        process for updating that program every 5 years; and
            (3) establish a program for reducing the backlog of 
        geothermal lease application pending on January 1, 
        2005, by 90 percent within the 5-year period beginning 
        on the date of enactment of this Act, including, as 
        necessary, by issuing leases, rejecting lease 
        applications for failure to comply with the provisions 
        of the regulations under which they were filed, or 
        determining that an original applicant (or the 
        applicant's assigns, heirs, or estate) is no longer 
        interested in pursuing the lease application.
    (c) Data Retrieval System.--The memorandum of understanding 
shall establish a joint data retrieval system that is capable 
of tracking lease and permit applications and providing to the 
applicant information as to their status within the Departments 
of the Interior and Agriculture, including an estimate of the 
time required for administrative action.

SEC. 226. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

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

SEC. 227. COOPERATIVE OR UNIT PLANS.

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

``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

    ``(a) Adoption of Units by Lessees.--
            ``(1) In general.--For the purpose of more properly 
        conserving the natural resources of any geothermal 
        reservoir, field, or like area, or any part thereof 
        (whether or not any part of the geothermal reservoir, 
        field, or like area, is subject to any cooperative plan 
        of development or operation (referred to in this 
        section as a `unit agreement')), lessees thereof and 
        their representatives may unite with each other, or 
        jointly or separately with others, in collectively 
        adopting and operating under a unit agreement for the 
        reservoir, field, or like area, or any part thereof, 
        including direct use resources, if determined and 
        certified by the Secretary to be necessary or advisable 
        in the public interest.
            ``(2) Majority interest of single leases.--A 
        majority interest of owners of any single lease shall 
        have the authority to commit the lease to a unit 
        agreement.
            ``(3) Initiative of secretary.--The Secretary may 
        also initiate the formation of a unit agreement, or 
        require an existing Federal lease to commit to a unit 
        agreement, if in the public interest.
            ``(4) Modification of lease requirements by 
        secretary.--
                    ``(A) In general.--The Secretary may, in 
                the discretion of the Secretary and with the 
                consent of the holders of leases involved, 
                establish, alter, change, or revoke rates of 
                operations (including drilling, operations, 
                production, and other requirements) of the 
                leases and make conditions with respect to the 
                leases, with the consent of the lessees, in 
                connection with the creation and operation of 
                any such unit agreement as the Secretary may 
                consider necessary or advisable to secure the 
                protection of the public interest.
                    ``(B) Unlike terms or rates.--Leases with 
                unlike lease terms or royalty rates shall not 
                be required to be modified to be in the same 
                unit.
    ``(b) Requirement of Plans Under New Leases.--The Secretary 
may--
            ``(1) provide that geothermal leases issued under 
        this Act shall contain a provision requiring the lessee 
        to operate under a unit agreement; and
            ``(2) prescribe the unit agreement under which the 
        lessee shall operate, which shall adequately protect 
        the rights of all parties in interest, including the 
        United States.
    ``(c) Modification of Rate of Prospecting, Development, and 
Production.--The Secretary may require that any unit agreement 
authorized by this section that applies to land owned by the 
United States contain a provision under which authority is 
vested in the Secretary, or any person, committee, or State or 
Federal officer or agency as may be designated in the unit 
agreement to alter or modify, from time to time, the rate of 
prospecting and development and the quantity and rate of 
production under the unit agreement.
    ``(d) Exclusion From Determination of Holding or Control.--
Any land that is subject to a unit agreement approved or 
prescribed by the Secretary under this section shall not be 
considered in determining holdings or control under section 7.
    ``(e) Pooling of Certain Land.--If separate tracts of land 
cannot be independently developed and operated to use 
geothermal resources pursuant to any section of this Act--
            ``(1) the land, or a portion of the land, may be 
        pooled with other land, whether or not owned by the 
        United States, for purposes of development and 
        operation under a communitization agreement providing 
        for an apportionment of production or royalties among 
        the separate tracts of land comprisingthe production 
unit, if the pooling is determined by the Secretary to be in the public 
interest; and
            ``(2) operation or production pursuant to the 
        communitization agreement shall be treated as operation 
        or production with respect to each tract of land that 
        is subject to the communitization agreement.
    ``(f) Unit Agreement Review.--
            ``(1) In general.--Not later than 5 years after the 
        date of approval of any unit agreement and at least 
        every 5 years thereafter, the Secretary shall--
                    ``(A) review each unit agreement; and
                    ``(B) after notice and opportunity for 
                comment, eliminate from inclusion in the unit 
                agreement any land that the Secretary 
                determines is not reasonably necessary for unit 
                operations under the unit agreement.
            ``(2) Basis for elimination.--The elimination 
        shall--
                    ``(A) be based on scientific evidence; and
                    ``(B) occur only if the elimination is 
                determined by the Secretary to be for the 
                purpose of conserving and properly managing the 
                geothermal resource.
            ``(3) Extension.--Any land eliminated under this 
        subsection shall be eligible for an extension under 
        section 6(g) if the land meets the requirements for the 
        extension.
    ``(g) Drilling or Development Contracts.--
            ``(1) In general.--The Secretary may, on such 
        conditions as the Secretary may prescribe, approve 
        drilling or development contracts made by 1 or more 
        lessees of geothermal leases, with 1 or more persons, 
        associations, or corporations if, in the discretion of 
        the Secretary, the conservation of natural resources or 
        the public convenience or necessity may require or the 
        interests of the United States may be best served by 
        the approval.
            ``(2) Holdings or control.--Each lease operated 
        under an approved drilling or development contract, and 
        interest under the contract, shall be excepted in 
        determining holdings or control under section 7.
    ``(h) Coordination With State Governments.--The Secretary 
shall coordinate unitization and pooling activities with 
appropriate State agencies.''.

SEC. 228. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) (as amended by section 223(a)) is further amended in 
subsection (a) by striking paragraph (2) and inserting the 
following:
            ``(2) a royalty on any byproduct that is a mineral 
        specified in the first section of the Mineral Leasing 
        Act (30 U.S.C. 181), and that is derived from 
        production under the lease, at the rate of the royalty 
        that applies under that Act to production of the 
        mineral under a lease under that Act;''.

SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS, 
                    RENTALS, AND ROYALTIES.

    Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1006) is amended in the second sentence by striking ``period, 
and in no event'' and all that follows through the end of the 
sentence and inserting ``period''.

SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) (as amended by sections 223 and 224) is further amended--
            (1) in subsection (a)(2) by inserting ``and'' after 
        the semicolon at the end;
            (2) in subsection (a)(3) by striking ``; and'' and 
        inserting a period;
            (3) by striking paragraph (4) of subsection (a); 
        and
            (4) by adding at the end the following:
    ``(e) Crediting of Rental Toward Royalty.--Any annual 
rental under this section that is paid with respect to a lease 
before the first day of the year for which the annual rental is 
owed shall be credited to the amount of royalty that is 
required to be paid under the lease for that year.''.

SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

    Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1005) is amended--
            (1) by striking so much as precedes subsection (c), 
        and striking subsections (e), (g), (h), (i), and (j);
            (2) by redesignating subsections (c), (d), and (f) 
        in order as subsections (g), (h), and (i); and
            (3) by inserting before subsection (g), as so 
        redesignated, the following:

``SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.

    ``(a) In General.--
            ``(1) Primary term.--A geothermal lease shall be 
        for a primary term of 10 years.
            ``(2) Initial extension.--The Secretary shall 
        extend the primary term of a geothermal lease for 5 
        years if, for each year after the tenth year of the 
        lease--
                    ``(A) the Secretary determined under 
                subsection (b) that the lessee satisfied the 
                work commitment requirements that applied to 
                the lease for that year; or
                    ``(B) the lessee paid in annual payments 
                accordance with subsection (c).
            ``(3) Additional extension.--The Secretary shall 
        extend the primary term of a geothermal lease (after an 
        initial extension under paragraph (2)) for an 
        additional 5 years if, for each year of the initial 
        extension under paragraph (2), the Secretary determined 
        under subsection (b) that the lessee satisfied the 
        minimum work requirements that applied to the lease for 
        that year.
    ``(b) Requirement to Satisfy Annual Minimum Work 
Requirement.--
            ``(1) In general.--The lessee for a geothermal 
        lease shall, for each year after the tenth year of the 
        lease, satisfy minimum work requirements prescribed by 
        the Secretary that apply to the lease for that year.
            ``(2) Prescription of minimum work requirements.--
        The Secretary shall issue regulations prescribing 
        minimum work requirements for geothermal leases, that--
                    ``(A) establish a geothermal potential; and
                    ``(B) if a geothermal potential has been 
                established, confirm the existence of 
                producible geothermal resources.
    ``(c) Payments in Lieu of Minimum Work Requirements.--In 
lieu of the minimum work requirements set forth in subsection 
(b)(2), the Secretary shall by regulation establish minimum 
annual payments which may be made by the lessee for a limited 
number of years that the Secretary determines will not impair 
achieving diligent development of the geothermal resource, but 
in no event shall the number of years exceed the duration of 
the extension period provided in subsection (a).
    ``(d) Transition Rules for Leases Issued Prior to Enactment 
of Energy Policy Act of 2005.--The Secretary shall by 
regulation establish transition rules for leases issued before 
the date of the enactment of this subsection, including terms 
under which a lease that is near the end of its term on the 
date of enactment of this subsection may be extended for up to 
2 years--
            ``(1) to allow achievement of production under the 
        lease; or
            ``(2) to allow the lease to be included in a 
        producing unit.
    ``(e) Geothermal Lease Overlying Mining Claim.--
            ``(1) Exemption.--The lessee for a geothermal lease 
        of an area overlying an area subject to a mining claim 
        for which a plan of operations has been approved by the 
        relevant Federal land management agency is exempt from 
        annual work requirements established under this Act, if 
        development of the geothermal resource subject to the 
        lease would interfere with the mining operations under 
        such claim.
            ``(2) Termination of exemption.--An exemption under 
        this paragraph expires upon the termination of the 
        mining operations.
    ``(f) Termination of Application of Requirements.--Minimum 
work requirements prescribed under this section shall not apply 
to a geothermal lease after the date on which the geothermal 
resource is utilized under the lease in commercial 
quantities.''.

SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) (as amended by sections 223, 224, and 230) is further 
amended by adding at the end the following:
    ``(f) Advanced Royalties Required for Cessation of 
Production.--
            ``(1) In general.--Subject to paragraphs (2) and 
        (3), if, at any time after commercial production under 
        a lease is achieved, production ceases for any reason, 
        the lease shall remain in full force and effect for a 
        period of not more than an aggregate number of 10 years 
        beginning on the date production ceases, if, during the 
        period in which production is ceased, the lessee pays 
        royalties in advance at the monthly average rate at 
        which the royalty was paid during the period of 
        production.
            ``(2) Reduction.--The amount of any production 
        royalty paid for any year shall be reduced (but not 
        below 0) by the amount of any advanced royalties paid 
        under the lease to the extent that the advance 
        royalties have not been used to reduce production 
        royalties for a prior year.
            ``(3) Exceptions.--Paragraph (1) shall not apply if 
        the cessation in production is required or otherwise 
        caused by--
                    ``(A) the Secretary;
                    ``(B) the Secretary of the Air Force;
                    ``(C) the Secretary of the Army;
                    ``(D) the Secretary of the Navy;
                    ``(E) a State or a political subdivision of 
                a State; or
                    ``(F) a force majeure.''.

SEC. 233. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam 
Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is 
further amended in subsection (a) by striking paragraph (3) and 
inserting the following:
            ``(3) payment in advance of an annual rental of not 
        less than--
                    ``(A) for each of the first through tenth 
                years of the lease--
                            ``(i) in the case of a lease 
                        awarded in a noncompetitive lease sale, 
                        $1 per acre or fraction thereof; or
                            ``(ii) in the case of a lease 
                        awarded in a competitive lease sale, $2 
                        per acre or fraction thereof for the 
                        first year and $3 per acre or fraction 
                        thereof for each of the second through 
                        10th years; and
                    ``(B) for each year after the 10th year of 
                the lease, $5 per acre or fraction thereof;''.
    (b) Termination of Lease for Failure to Pay Rental.--
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
(as amended by sections 223, 224, 230, and 232) is further 
amended by adding at the end the following:
    ``(g) Termination of Lease for Failure to Pay Rental.--
            ``(1) In general.--The Secretary shall terminate 
        any lease with respect to which rental is not paid in 
        accordance with this Act and the terms of the lease 
        under which the rental is required, on the expiration 
        of the 45-day period beginning on the date of the 
        failure to pay the rental.
            ``(2) Notification.--The Secretary shall promptly 
        notify a lessee that has not paid rental required under 
        the lease that the lease will be terminated at the end 
        of the period referred to in paragraph (1).
            ``(3) Reinstatement.--A lease that would otherwise 
        terminate under paragraph (1) shall not terminate under 
        that paragraph if the lessee pays to the Secretary, 
        before the end of the period referred to in paragraph 
        (1), the amount of rental due plus a late fee equal to 
        10 percent of the amount.''.

SEC. 234. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR 5 FISCAL 
                    YEARS.

    (a) Deposit of Geothermal Resources Leases.--
Notwithstanding any other provision of law, amounts received by 
the United States in the first 5 fiscal years beginning after 
the date of enactment of this Act as rentals, royalties, and 
other payments required under leases under the Geothermal Steam 
Act of 1970, excluding funds required to be paid to State and 
county governments, shall be deposited into a separate account 
in the Treasury.
    (b) Use of Deposits.--Amounts deposited under subsection 
(a) shall be available to the Secretary of the Interior for 
expenditure, without further appropriation and without fiscal 
year limitation, to implement the Geothermal Steam Act of 1970 
and this Act.
    (c) Transfer of Funds.--For the purposes of coordination 
and processing of geothermal leases and geothermal use 
authorizations on Federal land the Secretary of the Interior 
may authorize the expenditure or transfer of such funds as are 
necessary to the Forest Service.

SEC. 235. ACREAGE LIMITATIONS.

    Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1006) is amended--
            (1) by striking ``SEC. 7.'', and by inserting 
        immediately before and above the first paragraph the 
        following:

``SEC. 7. ACREAGE LIMITATIONS.'';

            (2) in the first paragraph--
                    (A) by striking ``two thousand five hundred 
                and sixty acres'' and inserting ``5,120 
                acres''; and
                    (B) by striking ``twenty thousand four 
                hundred and eighty acres'' and inserting 
                ``51,200 acres''; and
            (3) by striking the second paragraph.

SEC. 236. TECHNICAL AMENDMENTS.

    The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) 
is further amended as follows:
            (1) By striking ``geothermal steam and associated 
        geothermal resources'' each place it appears and 
        inserting ``geothermal resources''.
            (2) Section 2 (30 U.S.C. 1001) is amended by adding 
        at the end the following:
            ``(g) `direct use' means utilization of geothermal 
        resources for commercial, residential, agricultural, 
        public facilities, or other energy needs other than the 
        commercial production of electricity; and''.
            (3) Section 21 (30 U.S.C. 1020) is amended by 
        striking ``(a) Within one hundred'' and all that 
        follows through ``(b) Geothermal'' and inserting 
        ``Geothermal''.
            (4) The first section (30 U.S.C. 1001 note) is 
        amended by striking ``That this'' and inserting the 
        following:

``SEC. 1. SHORT TITLE.

    ``This''.
            (5) Section 2 (30 U.S.C. 1001) is amended by 
        striking ``SEC. 2. As'' and inserting the following:

``SEC. 2. DEFINITIONS.

    ``As''.
            (6) Section 3 (30 U.S.C. 1002) is amended by 
        striking ``SEC. 3. Subject'' and inserting the 
        following:

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

    ``Subject''.
            (7) Section 5 (30 U.S.C. 1004) is further amended 
        by striking ``SEC. 5.'', and by inserting immediately 
        before and above subsection (a) the following:

``SEC. 5. RENTS AND ROYALTIES.''.

            (8) Section 8 (30 U.S.C. 1007) is amended by 
        striking ``SEC. 8. (a) The'' and inserting the 
        following:

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

    ``(a) The''.
            (9) Section 9 (30 U.S.C. 1008) is amended by 
        striking ``SEC. 9. If '' and inserting the following:

``SEC. 9. BYPRODUCTS.

    ``If ''.
            (10) Section 10 (30 U.S.C. 1009) is amended by 
        striking ``SEC. 10. The'' and inserting the following:

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

    ``The''.
            (11) Section 11 (30 U.S.C. 1010) is amended by 
        striking ``SEC. 11. The'' and inserting the following:

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

    ``The''.
            (12) Section 12 (30 U.S.C. 1011) is amended by 
        striking ``SEC. 12. Leases'' and inserting the 
        following:

``SEC. 12. TERMINATION OF LEASES.

    ``Leases''.
            (13) Section 13 (30 U.S.C. 1012) is amended by 
        striking ``SEC. 13. The'' and inserting the following:

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

    ``The''.
            (14) Section 14 (30 U.S.C. 1013) is amended by 
        striking ``SEC. 14. Subject'' and inserting the 
        following:

``SEC. 14. SURFACE LAND USE.

    ``Subject''.
            (15) Section 15 (30 U.S.C. 1014) is amended by 
        striking ``SEC. 15. (a) Geothermal'' and inserting the 
        following:

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

    ``(a) Geothermal''.
            (16) Section 16 (30 U.S.C. 1015) is amended by 
        striking ``SEC. 16. Leases'' and inserting the 
        following:

``SEC. 16. REQUIREMENT FOR LESSEES.

    ``Leases''.
            (17) Section 17 (30 U.S.C. 1016) is amended by 
        striking ``SEC. 17. Administration'' and inserting the 
        following:

``SEC. 17. ADMINISTRATION.

    ``Administration''.
            (18) Section 19 (30 U.S.C. 1018) is amended by 
        striking ``SEC. 19. Upon'' and inserting the following:

``SEC. 19. DATA FROM FEDERAL AGENCIES.

    ``Upon''.
            (19) Section 21 (30 U.S.C. 1020) is further amended 
        by striking ``SEC. 21.'', and by inserting immediately 
        before and above the remainder of that section the 
        following:

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

            (20) Section 22 (30 U.S.C. 1021) is amended by 
        striking ``SEC. 22. Nothing'' and inserting the 
        following:

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

    ``Nothing''.
            (21) Section 23 (30 U.S.C. 1022) is amended by 
        striking ``SEC. 23. (a) All'' and inserting the 
        following:

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

    ``(a) All''.
            (22) Section 24 (30 U.S.C. 1023) is amended by 
        striking ``SEC. 24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

    ``The''.
            (23) Section 25 (30 U.S.C. 1024) is amended by 
        striking ``SEC. 25. As'' and inserting the following:

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

    ``As''.
            (24) Section 26 is amended by striking ``SEC. 26. 
        The'' and inserting the following:

``SEC. 26. AMENDMENT.

    ``The''.
            (25) Section 27 (30 U.S.C. 1025) is amended by 
        striking ``SEC. 27. The'' and inserting the following:

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

    ``The''.
            (26) Section 28 (30 U.S.C. 1026) is amended by 
        striking ``SEC. 28. (a)(1) The'' and inserting the 
        following:

``SEC. 28. SIGNIFICANT THERMAL FEATURES.

    ``(a)(1) The''.
            (27) Section 29 (30 U.S.C. 1027) is amended by 
        striking ``SEC. 29. The'' and inserting the following:

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

    ``The''.

SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

    (a) Participation Authorized.--The Secretary, acting 
through the Idaho National Laboratory, may participate in a 
consortium described in subsection (b) to address science and 
science policy issues surrounding the expanded discovery and 
use of geothermal energy, including from geothermal resources 
on public lands.
    (b) Members.--The consortium referred to in subsection (a) 
shall--
            (1) be known as the ``Intermountain West Geothermal 
        Consortium'';
            (2) be a regional consortium of institutions and 
        government agencies that focuses on building 
        collaborative efforts among the universities in the 
        State of Idaho, other regional universities, State 
        agencies, and the Idaho National Laboratory;
            (3) include Boise State University, the University 
        of Idaho (including the Idaho Water Resources Research 
        Institute), the Oregon Institute of Technology, the 
        Desert Research Institute with the University and 
        Community College System of Nevada, and the Energy and 
        Geoscience Institute at the University of Utah;
            (4) be hosted and managed by Boise State 
        University; and
            (5) have a director appointed by Boise State 
        University, and associate directors appointed by each 
        participating institution.
    (c) Financial Assistance.--The Secretary, acting through 
the Idaho National Laboratory and subject to the availability 
of appropriations, will provide financial assistance to Boise 
State University for expenditure under contracts with members 
of the consortium to carry out the activities of the 
consortium.

                       Subtitle C--Hydroelectric

SEC. 241. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) Federal Reservations.--Section 4(e) of the Federal 
Power Act (16 U.S.C. 797(e)) is amended by inserting after 
``adequate protection and utilization of such reservation.'' at 
the end of the first proviso the following: ``The license 
applicant and any party to the proceeding shall be entitled to 
a determination on the record, after opportunity for an agency 
trial-type hearing of no more than 90 days, on any disputed 
issues of material fact with respect to such conditions. All 
disputed issues of material fact raised by any party shall be 
determined in a single trial-type hearing to be conducted by 
the relevant resource agency in accordance with the regulations 
promulgated under this subsection and within the time frame 
established by the Commission for each license proceeding. 
Within 90 days of the date of enactment of the Energy Policy 
Act of 2005, the Secretaries of the Interior, Commerce, and 
Agriculture shall establish jointly, by rule, the procedures 
for such expedited trial-type hearing, including the 
opportunity to undertake discovery and cross-examine witnesses, 
in consultation with the Federal Energy Regulatory 
Commission.''.
    (b) Fishways.--Section 18 of the Federal Power Act (16 
U.S.C. 811) is amended by inserting after ``and such fishways 
as may be prescribed by the Secretary of Commerce.'' the 
following: ``The license applicant and any party to the 
proceeding shall be entitled to a determination on the record, 
after opportunity for an agency trial-type hearing of no more 
than 90 days, on any disputed issues of material fact with 
respect to such fishways. All disputed issues of material fact 
raised by any party shall be determined in a single trial-type 
hearing to be conducted by the relevant resource agency in 
accordance with the regulations promulgated under this 
subsection and within the time frame established by the 
Commission for each license proceeding. Within 90 days of the 
date of enactment of the Energy Policy Act of 2005, the 
Secretaries of the Interior, Commerce, and Agriculture shall 
establish jointly, by rule, the procedures for such expedited 
trial-type hearing, including the opportunity to undertake 
discovery and cross-examine witnesses, in consultation with the 
Federal Energy Regulatory Commission.''.
    (c) Alternative Conditions and Prescriptions.--Part I of 
the Federal Power Act (16 U.S.C. 791a et seq.) is amended by 
adding the following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

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

SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) Incentive Payments.--For electric energy generated and 
sold by a qualified hydroelectric 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) 
of this section. Payments under this section may only be made 
upon receipt by the Secretary of an incentive payment 
application which establishes that the applicant is eligible to 
receive such payment and which satisfies such other 
requirements as the Secretary deems necessary. Such application 
shall be in such form, and shall be submitted at such time, as 
the Secretary shall establish.
    (b) Definitions.--For purposes of this section:
            (1) Qualified hydroelectric facility.--The term 
        ``qualified hydroelectric facility'' means a turbine or 
        other generating device owned or solely operated by a 
        non-Federal entity which generates hydroelectric energy 
        for sale and which is added to an existing dam or 
        conduit.
            (2) Existing dam or conduit.--The term ``existing 
        dam or conduit'' means any dam or conduit the 
        construction of which was completed before the date of 
        the enactment of this section and which does not 
        require any construction or enlargement of impoundment 
        or diversion structures (other than repair or 
        reconstruction) in connection with the installation of 
        a turbine or other generating device.
            (3) Conduit.--The term ``conduit'' has the same 
        meaning as when used in section 30(a)(2) of the Federal 
        Power Act (16 U.S.C. 823a(a)(2)).

The terms defined in this subsection shall apply without regard 
to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a dam 
owned by a governmental or nongovernmental entity, and without 
regard to whether the facility begins operation on or after the 
date of the enactment of this section.
    (c) Eligibility Window.--Payments may be made under this 
section only for electric energy generated from a qualified 
hydroelectric facility which begins operation during the period 
of 10 fiscal years beginning with the first full fiscal year 
occurring after the date of enactment of this subtitle.
    (d) Incentive Period.--A qualified hydroelectric facility 
may receive payments under this section for a period of 10 
fiscal years (referred to in this section as the ``incentive 
period''). Such period shall begin with the fiscal year in 
which electric energy generated from the facility is first 
eligible for such payments.
    (e) Amount of Payment.--
            (1) In general.--Payments made by the Secretary 
        under this section to the owner or operator of a 
        qualified hydroelectric facility shall be based on the 
        number of kilowatt hours of hydroelectric energy 
        generated by the facility during the incentive period. 
        For any such facility, the amount of such payment shall 
        be 1.8 cents per kilowatt hour (adjusted as provided in 
        paragraph (2)), subject to the availability of 
        appropriations under subsection (g), except that no 
        facility may receive more than $750,000 in 1 calendar 
        year.
            (2) Adjustments.--The amount of the payment made to 
        any person under this section as provided in paragraph 
        (1) shall be adjusted for inflation for each fiscal 
        year beginning after calendar year 2005 in the same 
        manner as provided in the provisions of section 
        29(d)(2)(B) of the Internal Revenue Code of 1986, 
        except that in applying such provisions the calendar 
        year 2005 shall be substituted for calendar year 1979.
    (f) Sunset.--No payment may be made under this section to 
any qualified hydroelectric facility after the expiration of 
the period of 20 fiscal years beginning with the first full 
fiscal year occurring after the date of enactment of this 
subtitle, and no payment may be made under this section to any 
such facility after a payment has been made with respect to 
such facility for a period of 10 fiscal years.
    (g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out the purposes 
of this section $10,000,000 for each of the fiscal years 2006 
through 2015.

SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) Incentive Payments.--The Secretary shall make incentive 
payments to the owners or operators of hydroelectric facilities 
at existing dams to be used to make capital improvements in the 
facilities that are directly related to improving the 
efficiency of such facilities by at least 3 percent.
    (b) Limitations.--Incentive payments under this section 
shall not exceed 10 percent of the costs of the capital 
improvement concerned and not more than 1 payment may be made 
with respect to improvements at a single facility. No payment 
in excess of $750,000 may be made with respect to improvements 
at a single facility.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section not more than 
$10,000,000 for each of the fiscal years 2006 through 2015.

SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

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

SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT.

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

SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.

    Section 408(a)(6) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking 
``April 20, 1977'' and inserting ``July 22, 2005''.

                       Subtitle D--Insular Energy

SEC. 251. INSULAR AREAS ENERGY SECURITY.

    Section 604 of the Act entitled ``An Act to authorize 
appropriations for certain insular areas of the United States, 
and for other purposes'', approved December 24, 1980 (48 U.S.C. 
1492), is amended--
            (1) in subsection (a)(4) by striking the period and 
        inserting a semicolon;
            (2) by adding at the end of subsection (a) the 
        following new paragraphs:
            ``(5) electric power transmission and distribution 
        lines in insular areas are inadequate to withstand 
        damage caused by the hurricanes and typhoons which 
        frequently occur in insular areas and such damage often 
        costs millions of dollars to repair; and
            ``(6) the refinement of renewable energy 
        technologies since the publication of the 1982 
        Territorial Energy Assessment prepared pursuant to 
        subsection (c) reveals the need to reassess the state 
        of energy production, consumption, infrastructure, 
        reliance on imported energy, opportunities for energy 
        conservation and increased energy efficiency, and 
        indigenous sources in regard to the insular areas.'';
            (3) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary of the Interior, in consultation 
with the Secretary of Energy and the head of government of each 
insular area, shall update the plans required under subsection 
(c) by--
            ``(A) updating the contents required by subsection 
        (c);
            ``(B) drafting long-term energy plans for such 
        insular areas with the objective of reducing, to the 
        extent feasible, their reliance on energy imports by 
        the year 2012, increasing energy conservation and 
        energy efficiency, and maximizing, to the extent 
        feasible, use of indigenous energy sources; and
            ``(C) drafting long-term energy transmission line 
        plans for such insular areas with the objective that 
        the maximum percentage feasible of electric power 
        transmission and distribution lines in each insular 
        area be protected from damage caused by hurricanes and 
        typhoons.
    ``(2) In carrying out this subsection, the Secretary of 
Energy shall identify and evaluate the strategies or projects 
with the greatest potential for reducing the dependence on 
imported fossil fuels as used for the generation of 
electricity, including strategies and projects for--
            ``(A) improved supply-side efficiency of 
        centralized electrical generation, transmission, and 
        distribution systems;
            ``(B) improved demand-side management through--
                    ``(i) the application of established 
                standards for energy efficiency for appliances;
                    ``(ii) the conduct of energy audits for 
                business and industrial customers; and
                    ``(iii) the use of energy savings 
                performance contracts;
            ``(C) increased use of renewable energy, 
        including--
                    ``(i) solar thermal energy for electric 
                generation;
                    ``(ii) solar thermal energy for water 
                heating in large buildings, such as hotels, 
                hospitals, government buildings, and 
                residences;
                    ``(iii) photovoltaic energy;
                    ``(iv) wind energy;
                    ``(v) hydroelectric energy;
                    ``(vi) wave energy;
                    ``(vii) energy from ocean thermal 
                resources, including ocean thermal-cooling for 
                community air conditioning;
                    ``(viii) water vapor condensation for the 
                production of potable water;
                    ``(ix) fossil fuel and renewable hybrid 
                electrical generation systems; and
                    ``(x) other strategies or projects that the 
                Secretary may identify as having significant 
                potential; and
            ``(D) fuel substitution and minimization with 
        indigenous biofuels, such as coconut oil.
    ``(3) In carrying out this subsection, for each insular 
area with a significant need for distributed generation, the 
Secretary of Energy shall identify and evaluate the most 
promising strategies and projects described in subparagraphs 
(C) and (D) of paragraph (2) for meeting that need.
    ``(4) In assessing the potential of any strategy or project 
under paragraphs (2) and (3), the Secretary of Energy shall 
consider--
            ``(A) the estimated cost of the power or energy to 
        be produced, including--
                    ``(i) any additional costs associated with 
                the distribution of the generation; and
                    ``(ii) the long-term availability of the 
                generation source;
            ``(B) the capacity of the local electrical utility 
        to manage, operate, and maintain any project that may 
        be undertaken; and
            ``(C) other factors the Secretary of Energy 
        considers to be appropriate.
    ``(5) Not later than 1 year after the date of enactment of 
this subsection, the Secretary of the Interior shall submit to 
the Committee on Energy and Natural Resources of the Senate, 
the Committee on Resources of the House of Representatives, and 
the Committee on Energy and Commerce of the House of 
Representatives, the updated plans for each insular area 
required by this subsection.''; and
            (4) by amending subsection (g)(4) to read as 
        follows:
            ``(4) Power line grants for insular areas.--
                    ``(A) In general.--The Secretary of the 
                Interior is authorized to make grants to 
                governments of insular areas of the United 
                States to carry out eligible projects to 
                protect electric power transmission and 
                distribution lines in such insular areas from 
                damage caused by hurricanes and typhoons.
                    ``(B) Eligible projects.--The Secretary of 
                the Interior may award grants under 
                subparagraph (A) only to governments of insular 
                areas of the United States that submit written 
                project plans to the Secretary for projects 
                that meet the following criteria:
                            ``(i) The project is designed to 
                        protect electric power transmission and 
                        distribution lines located in 1 or more 
                        of the insular areas of the United 
                        States from damage caused by hurricanes 
                        and typhoons.
                            ``(ii) The project is likely to 
                        substantially reduce the risk of future 
                        damage, hardship, loss, or suffering.
                            ``(iii) The project addresses 1 or 
                        more problems that have been repetitive 
                        or that pose a significant risk to 
                        public health and safety.
                            ``(iv) The project is not likely to 
                        cost more than the value of the 
                        reduction in direct damage and other 
                        negative impacts that the project is 
                        designed to prevent or mitigate. The 
                        cost benefit analysis required by this 
                        criterion shall be computed on a net 
                        present value basis.
                            ``(v) The project design has taken 
                        into consideration long-term changes to 
                        the areas and persons it is designed to 
                        protect and has manageable future 
                        maintenance and modification 
                        requirements.
                            ``(vi) The project plan includes an 
                        analysis of a range of options to 
                        address the problem it is designed to 
                        prevent or mitigate and a justification 
                        for the selection of the project in 
                        light of that analysis.
                            ``(vii) The applicant has 
                        demonstrated to the Secretary that the 
                        matching funds required by subparagraph 
                        (D) are available.
                    ``(C) Priority.--When making grants under 
                this paragraph, the Secretary of the Interior 
                shall give priority to grants for projects 
                which are likely to--
                            ``(i) have the greatest impact on 
                        reducing future disaster losses; and
                            ``(ii) best conform with plans that 
                        have been approved by the Federal 
                        Government or the government of the 
                        insular area where the project is to be 
                        carried out fordevelopment or hazard 
mitigation for that insular area.
                    ``(D) Matching requirement.--The Federal 
                share of the cost for a project for which a 
                grant is provided under this paragraph shall 
                not exceed 75 percent of the total cost of that 
                project. The non-Federal share of the cost may 
                be provided in the form of cash or services.
                    ``(E) Treatment of funds for certain 
                purposes.--Grants provided under this paragraph 
                shall not be considered as income, a resource, 
                or a duplicative program when determining 
                eligibility or benefit levels for Federal major 
                disaster and emergency assistance.
                    ``(F) Authorization of appropriations.--
                There are authorized to be appropriated to 
                carry out this paragraph $6,000,000 for each 
                fiscal year beginning after the date of the 
                enactment of this paragraph.''.

SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE.

    (a) Project Feasibility Studies.--
            (1) In general.--On a request described in 
        paragraph (2), the Secretary shall conduct a 
        feasibility study of a project to implement a strategy 
        or project identified in the plans submitted to 
        Congress pursuant to section 604 of the Act entitled 
        ``An Act to authorize appropriations for certain 
        insular areas of the United States, and for other 
        purposes'', approved December 24, 1980 (48 U.S.C. 
        1492), as having the potential to--
                    (A) significantly reduce the dependence of 
                an insular area on imported fossil fuels; or
                    (B) provide needed distributed generation 
                to an insular area.
            (2) Request.--The Secretary shall conduct a 
        feasibility study under paragraph (1) on--
                    (A) the request of an electric utility 
                located in an insular area that commits to fund 
                at least 10 percent of the cost of the study; 
                and
                    (B) if the electric utility is located in 
                the Federated States of Micronesia, the 
                Republic of the Marshall Islands, or the 
                Republic of Palau, written support for that 
                request by the President or the Ambassador of 
                the affected freely associated state.
            (3) Consultation.--The Secretary shall consult with 
        regional utility organizations in--
                    (A) conducting feasibility studies under 
                paragraph (1); and
                    (B) determining the feasibility of 
                potential projects.
            (4) Feasibility.--For the purpose of a feasibility 
        study under paragraph (1), a project shall be 
        determined to be feasible if the project would 
        significantly reduce the dependence of an insular area 
        on imported fossil fuels, or provide needed distributed 
        generation to an insular area, at a reasonable cost.
    (b) Implementation.--
            (1) In general.--On a determination by the 
        Secretary (in consultation with the Secretary of the 
        Interior) that a project is feasible under subsection 
        (a) and a commitment by an electric utility to operate 
        and maintain the project, the Secretary may provide 
        such technical and financial assistance as the 
        Secretary determines is appropriate for the 
        implementation of the project.
            (2) Regional utility organizations.--In providing 
        assistance under paragraph (1), the Secretary shall 
        consider providing the assistance through regional 
        utility organizations.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to the Secretary--
                    (A) $500,000 for each fiscal year for 
                project feasibility studies under subsection 
                (a); and
                    (B) $4,000,000 for each fiscal year for 
                project implementation under subsection (b).
            (2) Limitation of funds received by insular 
        areas.--No insular area may receive, during any 3-year 
        period, more than 20 percent of the total funds made 
        available during that 3-year period under subparagraphs 
        (A) and (B) of paragraph (1) unless the Secretary 
        determines that providing funding in excess of that 
        percentage best advances existing opportunities to meet 
        the objectives of this section.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

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

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

                   ``AUTHORIZATION OF APPROPRIATIONS

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

          ``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS'';

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

              ``Part D--Northeast Home Heating Oil Reserve

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

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

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

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

            (3) by striking the items relating to part D of 
        title II.
    (d) Amendment to the Energy Policy and Conservation Act.--
Section 183(b)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6250b(b)(1)) is amended by striking ``by more'' and all 
that follows through ``mid-October through March'' and 
inserting ``by more than 60 percent over its 5-year rolling 
average for the months of mid-October through March (considered 
as a heating season average)''.
    (e) Fill Strategic Petroleum Reserve to Capacity.--
            (1) In general.--The Secretary shall, as 
        expeditiously as practicable, without incurring 
        excessive cost or appreciably affecting the price of 
        petroleum products to consumers, acquire petroleum in 
        quantities sufficient to fill the Strategic Petroleum 
        Reserve to the 1,000,000,000-barrel capacity authorized 
        under section 154(a) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6234(a)), in accordance 
        with the sections 159 and 160 of that Act (42 U.S.C. 
        6239, 6240).
            (2) Procedures.--
                    (A) Amendment.--Section 160 of the Energy 
                Policy and Conservation Act (42 U.S.C. 6240) is 
                amended by inserting after subsection (b) the 
                following new subsection:
    ``(c) Procedures.--The Secretary shall develop, with public 
notice and opportunity for comment, procedures consistent with 
the objectives of this section to acquire petroleum for the 
Reserve. Such procedures shall take into account the need to--
            ``(1) maximize overall domestic supply of crude oil 
        (including quantities stored in private sector 
        inventories);
            ``(2) avoid incurring excessive cost or appreciably 
        affecting the price of petroleum products to consumers;
            ``(3) minimize the costs to the Department of the 
        Interior and the Department of Energy in acquiring such 
        petroleum products (including foregone revenues to the 
        Treasury when petroleum products for the Reserve are 
        obtained through the royalty-in-kind program);
            ``(4) protect national security;
            ``(5) avoid adversely affecting current and futures 
        prices, supplies, and inventories of oil; and
            ``(6) address other factors that the Secretary 
        determines to be appropriate.''.
                    (B) Review of requests for deferrals of 
                scheduled deliveries.--The procedures developed 
                under section 160(c) of the Energy Policy and 
                Conservation Act, as added by subparagraph (A), 
                shall include procedures and criteria for the 
                review of requests for the deferrals of 
                scheduled deliveries.
                    (C) Deadlines.--The Secretary shall--
                            (i) propose the procedures required 
                        under the amendment made by 
                        subparagraph (A) not later than 120 
                        days after the date of enactment of 
                        this Act;
                            (ii) promulgate the procedures not 
                        later than 180 days after the date of 
                        enactment of this Act; and
                            (iii) comply with the procedures in 
                        acquiring petroleum for the Reserve 
                        effective beginning on the date that is 
                        180 days after the date of enactment of 
                        this Act.

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

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

SEC. 303. SITE SELECTION.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary shall complete a proceeding to select, from 
sites that the Secretary has previously studied, sites 
necessary to enable acquisition by the Secretary of the full 
authorized volume of the Strategic Petroleum Reserve. In such 
proceeding, the Secretary shall first consider and give 
preference to the five sites which the Secretary previously 
assessed in the Draft Environmental Impact Statement, DOE/EIS-
0165-D. However, the Secretary in his discretion may select 
other sites as proposed by a State where a site has been 
previously studied by the Secretary to meet the full authorized 
volume of the Strategic Petroleum Reserve.

                        Subtitle B--Natural Gas

SEC. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS.

    (a) Scope of Natural Gas Act.--Section 1(b) of the Natural 
Gas Act (15 U.S.C. 717(b)) is amended by inserting ``and to the 
importation or exportation of natural gas in foreign commerce 
and to persons engaged in such importation or exportation,'' 
after ``such transportation or sale,''.
    (b) Definition.--Section 2 of the Natural Gas Act (15 
U.S.C. 717a) is amended by adding at the end the following new 
paragraph:
            ``(11) `LNG terminal' includes all natural gas 
        facilities located onshore or in State waters that are 
        used to receive, unload, load, store, transport, 
        gasify, liquefy, or process natural gas that is 
        imported to the United States from a foreign country, 
        exported to a foreign country from the United States, 
        or transported in interstate commerce by waterborne 
        vessel, but does not include--
                    ``(A) waterborne vessels used to deliver 
                natural gas to or from any such facility; or
                    ``(B) any pipeline or storage facility 
                subject to the jurisdiction of the Commission 
                under section 7.''.
    (c) Authorization for Siting, Construction, Expansion, or 
Operation of LNG Terminals.--(1) The title for section 3 of the 
Natural Gas Act (15 U.S.C. 717b) is amended by inserting ``; 
lng terminals'' after ``exportation or importation of natural 
gas''.
    (2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is 
amended by adding at the end the following:
    ``(d) Except as specifically provided in this Act, nothing 
in this Act affects the rights of States under--
            ``(1) the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1451 et seq.);
            ``(2) the Clean Air Act (42 U.S.C. 7401 et seq.); 
        or
            ``(3) the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.).
    ``(e)(1) The Commission shall have the exclusive authority 
to approve or deny an application for the siting, construction, 
expansion, or operation of an LNG terminal. Except as 
specifically provided in this Act, nothing in this Act is 
intended to affect otherwise applicable law related to any 
Federal agency's authorities or responsibilities related to LNG 
terminals.
    ``(2) Upon the filing of any application to site, 
construct, expand, or operate an LNG terminal, the Commission 
shall--
            ``(A) set the matter for hearing;
            ``(B) give reasonable notice of the hearing to all 
        interested persons, including the State commission of 
        the State in which the LNG terminal is located and, if 
        not the same, the Governor-appointed State agency 
        described in section 3A;
            ``(C) decide the matter in accordance with this 
        subsection; and
            ``(D) issue or deny the appropriate order 
        accordingly.
    ``(3)(A) Except as provided in subparagraph (B), the 
Commission may approve an application described in paragraph 
(2), in whole or part, with such modifications and upon such 
terms and conditions as the Commission find necessary or 
appropriate.
    ``(B) Before January 1, 2015, the Commission shall not--
            ``(i) deny an application solely on the basis that 
        the applicant proposes to use the LNG terminal 
        exclusively or partially for gas that the applicant or 
        an affiliate of the applicant will supply to the 
        facility; or
            ``(ii) condition an order on--
                    ``(I) a requirement that the LNG terminal 
                offer service to customers other than the 
                applicant, or any affiliate of the applicant, 
                securing the order;
                    ``(II) any regulation of the rates, 
                charges, terms, or conditions of service of the 
                LNG terminal; or
                    ``(III) a requirement to file with the 
                Commission schedules or contracts related to 
                the rates, charges, terms, or conditions of 
                service of the LNG terminal.
    ``(C) Subparagraph (B) shall cease to have effect on 
January 1, 2030.
    ``(4) An order issued for an LNG terminal that also offers 
service to customers on an open access basis shallnot result in 
subsidization of expansion capacity by existing customers, degradation 
of service to existing customers, or undue discrimination against 
existing customers as to their terms or conditions of service at the 
facility, as all of those terms are defined by the Commission.
    ``(f)(1) In this subsection, the term `military 
installation'--
            ``(A) means a base, camp, post, range, station, 
        yard, center, or homeport facility for any ship or 
        other activity under the jurisdiction of the Department 
        of Defense, including any leased facility, that is 
        located within a State, the District of Columbia, or 
        any territory of the United States; and
            ``(B) does not include any facility used primarily 
        for civil works, rivers and harbors projects, or flood 
        control projects, as determined by the Secretary of 
        Defense.
    ``(2) The Commission shall enter into a memorandum of 
understanding with the Secretary of Defense for the purpose of 
ensuring that the Commission coordinate and consult with the 
Secretary of Defense on the siting, construction, expansion, or 
operation of liquefied natural gas facilities that may affect 
an active military installation.
    ``(3) The Commission shall obtain the concurrence of the 
Secretary of Defense before authorizing the siting, 
construction, expansion, or operation of liquefied natural gas 
facilities affecting the training or activities of an active 
military installation.''.
    (d) LNG Terminal State and Local Safety Concerns.--After 
section 3 of the Natural Gas Act (15 U.S.C. 717b) insert the 
following:

                ``STATE AND LOCAL SAFETY CONSIDERATIONS

    ``Sec. 3A. (a) The Commission shall promulgate regulations 
on the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq) pre-filing process within 60 days after the date 
of enactment of this section. An applicant shall comply with 
pre-filing process required under the National Environmental 
Policy Act of 1969 prior to filing an application with the 
Commission. The regulations shall require that the pre-filing 
process commence at least 6 months prior to the filing of an 
application for authorization to construct an LNG terminal and 
encourage applicants to cooperate with State and local 
officials.
    ``(b) The Governor of a State in which an LNG terminal is 
proposed to be located shall designate the appropriate State 
agency for the purposes of consulting with the Commission 
regarding an application under section 3. The Commission shall 
consult with such State agency regarding State and local safety 
considerations prior to issuing an order pursuant to section 3. 
For the purposes of this section, State and local safety 
considerations include--
            ``(1) the kind and use of the facility;
            ``(2) the existing and projected population and 
        demographic characteristics of the location;
            ``(3) the existing and proposed land use near the 
        location;
            ``(4) the natural and physical aspects of the 
        location;
            ``(5) the emergency response capabilities near the 
        facility location; and
            ``(6) the need to encourage remote siting.
    ``(c) The State agency may furnish an advisory report on 
State and local safety considerations to the Commission with 
respect to an application no later than 30 days after the 
application was filed with the Commission. Before issuing an 
order authorizing an applicant to site, construct, expand, or 
operate an LNG terminal, the Commission shall review and 
respond specifically to the issues raised by the State agency 
described in subsection (b) in the advisory report. This 
subsection shall apply to any application filed after the date 
of enactment of the Energy Policy Act of 2005. A State agency 
has 30 days after such date of enactment to file an advisory 
report related to any applications pending at the Commission as 
of such date of enactment.
    ``(d) The State commission of the State in which an LNG 
terminal is located may, after the terminal is operational, 
conduct safety inspections in conformance with Federal 
regulations and guidelines with respect to the LNG terminal 
upon written notice to the Commission. The State commission may 
notify the Commission of any alleged safety violations. The 
Commission shall transmit information regarding such 
allegations to the appropriate Federal agency, which shall take 
appropriate action and notify the State commission.
    ``(e)(1) In any order authorizing an LNG terminal the 
Commission shall require the LNG terminal operator to develop 
an Emergency Response Plan. The Emergency Response Plan shall 
be prepared in consultation with the United States Coast Guard 
and State and local agencies and be approved by the Commission 
prior to any final approval to begin construction. The Plan 
shall include a cost-sharing plan.
    ``(2) A cost-sharing plan developed under paragraph (1) 
shall include a description of any direct cost reimbursements 
that the applicant agrees to provide to any State and local 
agencies with responsibility for security and safety--
            ``(A) at the LNG terminal; and
            ``(B) in proximity to vessels that serve the 
        facility.''.

SEC. 312. NEW NATURAL GAS STORAGE FACILITIES.

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

SEC. 313. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.

    (a) In General.--Section 15 of the Natural Gas Act (15 
U.S.C. 717n) is amended--
            (1) by striking the section heading and inserting 
        ``process coordination; hearings; rules of procedure'';
            (2) by redesignating subsections (a) and (b) as 
        subsections (e) and (f), respectively; and
            (3) by striking ``sec. 15.'' and inserting the 
        following:
    ``Sec. 15. (a) In this section, the term `Federal 
authorization'--
            ``(1) means any authorization required under 
        Federal law with respect to an application for 
        authorization under section 3 or a certificate of 
        public convenience and necessity under section 7; and
            ``(2) includes any permits, special use 
        authorizations, certifications, opinions, or other 
        approvals as may be required under Federal law with 
        respect to an application for authorization under 
        section 3 or a certificate of public convenience and 
        necessity under section 7.
    ``(b) Designation as Lead Agency.--
            ``(1) In general.--The Commission shall act as the 
        lead agency for the purposes of coordinating all 
        applicable Federal authorizations and for the purposes 
        of complying with the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).
            ``(2) Other agencies.--Each Federal and State 
        agency considering an aspect of an application for 
        Federal authorization shall cooperate with the 
        Commission and comply with the deadlines established by 
        the Commission.
    ``(c) Schedule.--
            ``(1) Commission authority to set schedule.--The 
        Commission shall establish a schedule for all Federal 
        authorizations. In establishing the schedule, the 
        Commission shall--
                    ``(A) ensure expeditious completion of all 
                such proceedings; and
                    ``(B) comply with applicable schedules 
                established by Federal law.
            ``(2) Failure to meet schedule.--If a Federal or 
        State administrative agency does not complete a 
        proceeding for an approval that is required for a 
        Federal authorization in accordance with the schedule 
        established by the Commission, the applicant may pursue 
        remedies under section 19(d).
    ``(d) Consolidated Record.--The Commission shall, with the 
cooperation of Federal and State administrative agencies and 
officials, maintain a complete consolidated record of all 
decisions made or actions taken by the Commission or by a 
Federal administrative agency or officer (or State 
administrative agency or officer acting under delegated Federal 
authority) with respect to any Federal authorization. Such 
record shall be the record for--
            ``(1) appeals or reviews under the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1451 et seq.), 
        provided that the record may be supplemented as 
        expressly provided pursuant to section 319 of that Act; 
        or
            ``(2) judicial review under section 19(d) of 
        decisions made or actions taken of Federal and State 
        administrative agencies and officials, provided that, 
        if the Court determines that the record does not 
        contain sufficient information, the Court may remand 
        the proceeding to the Commission for further 
        development of the consolidated record.''.
    (b) Judicial Review.--Section 19 of the Natural Gas Act (15 
U.S.C. 717r) is amended by adding at the end the following:
    ``(d) Judicial Review.--
            ``(1) In general.--The United States Court of 
        Appeals for the circuit in which a facility subject to 
        section 3 or section 7 is proposed to be 
constructed,expanded, or operated shall have original and exclusive 
jurisdiction over any civil action for the review of an order or action 
of a Federal agency (other than the Commission) or State administrative 
agency acting pursuant to Federal law to issue, condition, or deny any 
permit, license, concurrence, or approval ( hereinafter collectively 
referred to as `permit') required under Federal law, other than the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).
            ``(2) Agency delay.--The United States Court of 
        Appeals for the District of Columbia shall have 
        original and exclusive jurisdiction over any civil 
        action for the review of an alleged failure to act by a 
        Federal agency (other than the Commission) or State 
        administrative agency acting pursuant to Federal law to 
        issue, condition, or deny any permit required under 
        Federal law, other than the Coastal Zone Management Act 
        of 1972 (16 U.S.C. 1451 et seq.), for a facility 
        subject to section 3 or section 7. The failure of an 
        agency to take action on a permit required under 
        Federal law, other than the Coastal Zone Management Act 
        of 1972, in accordance with the Commission schedule 
        established pursuant to section 15(c) shall be 
        considered inconsistent with Federal law for the 
        purposes of paragraph (3).
            ``(3) Court action.--If the Court finds that such 
        order or action is inconsistent with the Federal law 
        governing such permit and would prevent the 
        construction, expansion, or operation of the facility 
        subject to section 3 or section 7, the Court shall 
        remand the proceeding to the agency to take appropriate 
        action consistent with the order of the Court. If the 
        Court remands the order or action to the Federal or 
        State agency, the Court shall set a reasonable schedule 
        and deadline for the agency to act on remand.
            ``(4) Commission action.--For any action described 
        in this subsection, the Commission shall file with the 
        Court the consolidated record of such order or action 
        to which the appeal hereunder relates.
            ``(5) Expedited review.--The Court shall set any 
        action brought under this subsection for expedited 
        consideration.''.

SEC. 314. PENALTIES.

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

                       ``CIVIL PENALTY AUTHORITY

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

SEC. 315. MARKET MANIPULATION.

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

                  ``PROHIBITION ON MARKET MANIPULATION

    ``Sec. 4A. It shall be unlawful for any entity, directly or 
indirectly, to use or employ, in connection with the purchase 
or sale of natural gas or the purchase or sale of 
transportation services subject to the jurisdiction of the 
Commission, any manipulative or deceptive device or contrivance 
(as those terms are used in section 10(b) of theSecurities 
Exchange Act of 1934 (15 U.S.C. 78j(b))) in contravention of such rules 
and regulations as the Commission may prescribe as necessary in the 
public interest or for the protection of natural gas ratepayers. 
Nothing in this section shall be construed to create a private right of 
action.''.

SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.

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

                ``NATURAL GAS MARKET TRANSPARENCY RULES

    ``Sec. 23. (a)(1) The Commission is directed to facilitate 
price transparency in markets for the sale or transportation of 
physical natural gas in interstate commerce, having due regard 
for the public interest, the integrity of those markets, fair 
competition, and the protection of consumers.
    ``(2) The Commission may prescribe such rules as the 
Commission determines necessary and appropriate to carry out 
the purposes of this section. The rules shall provide for the 
dissemination, on a timely basis, of information about the 
availability and prices of natural gas sold at wholesale and in 
interstate commerce to the Commission, State commissions, 
buyers and sellers of wholesale natural gas, and the public.
    ``(3) The Commission may--
            ``(A) obtain the information described in paragraph 
        (2) from any market participant; and
            ``(B) rely on entities other than the Commission to 
        receive and make public the information, subject to the 
        disclosure rules in subsection (b).
    ``(4) In carrying out this section, the Commission shall 
consider the degree of price transparency provided by existing 
price publishers and providers of trade processing services, 
and shall rely on such publishers and services to the maximum 
extent possible. The Commission may establish an electronic 
information system if it determines that existing price 
publications are not adequately providing price discovery or 
market transparency.
    ``(b)(1) Rules described in subsection (a)(2), if adopted, 
shall exempt from disclosure information the Commission 
determines would, if disclosed, be detrimental to the operation 
of an effective market or jeopardize system security.
    ``(2) In determining the information to be made available 
under this section and the time to make the information 
available, the Commission shall seek to ensure that consumers 
and competitive markets are protected from the adverse effects 
of potential collusion or other anticompetitive behaviors that 
can be facilitated by untimely public disclosure of 
transaction-specific information.
    ``(c)(1) Within 180 days of enactment of this section, the 
Commission shall conclude a memorandum of understanding with 
the Commodity Futures Trading Commission relating to 
information sharing, which shall include, among other things, 
provisions ensuring that information requests to markets within 
the respective jurisdiction of each agency are properly 
coordinated to minimize duplicative information requests, and 
provisions regarding the treatment of proprietary trading 
information.
    ``(2) Nothing in this section may be construed to limit or 
affect the exclusive jurisdiction of the Commodity Futures 
Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 
et seq.).
    ``(d)(1) The Commission shall not condition access to 
interstate pipeline transportation on the reporting 
requirements of this section.
    ``(2) The Commission shall not require natural gas 
producers, processors, or users who have a de minimis market 
presence to comply with the reporting requirements of this 
section.
    ``(e)(1) Except as provided in paragraph (2), no person 
shall be subject to any civil penalty under this section with 
respect to any violation occurring more than 3 years before the 
date on which the person is provided notice of the proposed 
penalty under section 22(b).
    ``(2) Paragraph (1) shall not apply in any case in which 
the Commission finds that a seller that has entered into a 
contract for the transportation or sale of natural gas subject 
to the jurisdiction of the Commission has engaged in fraudulent 
market manipulation activities materially affecting the 
contract in violation of section 4A.''.

SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

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

SEC. 318. PROHIBITION OF TRADING AND SERVING BY CERTAIN INDIVIDUALS.

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

                         Subtitle C--Production

SEC. 321. OUTER CONTINENTAL SHELF PROVISIONS.

    (a) Storage on the Outer Continental Shelf.--Section 
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1334(a)(5)) is amended by inserting ``from any source'' after 
``oil and gas''.
    (b) Natural Gas Defined.--Section 3(13) of the Deepwater 
Port Act of 1974 (33 U.S.C. 1502(13)) is amended by adding at 
the end before the semicolon the following: ``, natural gas 
liquids, liquefied petroleum gas, and condensate recovered from 
natural gas''.

SEC. 322. HYDRAULIC FRACTURING.

    Paragraph (1) of section 1421(d) of the Safe Drinking Water 
Act (42 U.S.C. 300h(d)) is amended to read as follows:
            ``(1) Underground injection.--The term `underground 
        injection'--
                    ``(A) means the subsurface emplacement of 
                fluids by well injection; and
                    ``(B) excludes--
                            ``(i) the underground injection of 
                        natural gas for purposes of storage; 
                        and
                            ``(ii) the underground injection of 
                        fluids or propping agents (other than 
                        diesel fuels) pursuant to hydraulic 
                        fracturing operations related to oil, 
                        gas, or geothermal production 
                        activities.''.

SEC. 323. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

    Section 502 of the Federal Water Pollution Control Act (33 
U.S.C. 1362) is amended by adding at the end the following:
            ``(24) Oil and gas exploration and production.--The 
        term `oil and gas exploration, production, processing, 
        or treatment operations or transmission facilities' 
        means all field activities or operations associated 
        with exploration, production, processing, or treatment 
        operations, or transmission facilities, including 
        activities necessary to prepare a site for drilling and 
        for the movement and placement of drilling equipment, 
        whether or not such field activities or operations may 
        be considered to be construction activities.''.

                  Subtitle D--Naval Petroleum Reserve

SEC. 331. TRANSFER OF ADMINISTRATIVE JURISDICTION AND ENVIRONMENTAL 
                    REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2, 
                    KERN COUNTY, CALIFORNIA.

    (a) Administration Jurisdiction Transfer to Secretary of 
the Interior.--Effective on the date of the enactment of this 
Act, administrative jurisdiction and control over all public 
domain lands included within Naval Petroleum Reserve Numbered 2 
located in Kern County, California (other than the lands 
specified in subsection (b)), are transferred from the 
Secretary to the Secretary of the Interior for management, 
subject to subsection (c), in accordance with the laws 
governing management of the public lands, and the regulations 
promulgated under such laws, including the Mineral Leasing Act 
(30 U.S.C. 181 et seq.) and the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1701 et seq.).
    (b) Exclusion of Certain Reserve Lands.--The transfer of 
administrative jurisdiction made by subsection (a) does not 
include the following lands:
            (1) That portion of Naval Petroleum Reserve 
        Numbered 2 authorized for disposal under section 
        3403(a) of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-
        261; 10 U.S.C. 7420 note).
            (2) That portion of the surface estate of Naval 
        Petroleum Reserve Numbered 2 conveyed to the City of 
        Taft, California, by section 333.
    (c) Purpose of Transfer.--
            (1) Production of hydrocarbon resources.--
        Notwithstanding any other provision of law, the 
        principal purpose of the lands subject to transfer 
        under subsection (a) is the production of hydrocarbon 
        resources, and the Secretary of the Interior shall 
        manage the lands in a fashion consistent with this 
        purpose. In managing the lands, the Secretary of the 
        Interior shall regulate operations to prevent 
        unnecessary degradation and to provide for ultimate 
        economic recovery of the resources.
            (2) Disposal authority and surface use.--The 
        Secretary of the Interior may make disposals of lands 
        subject to transfer under subsection (a), or allow 
        commercial or non-profit surface use of such lands, not 
        to exceed 10 acres each, so long as the disposals or 
        surface uses do not materially interfere with the 
        ultimate economic recovery of the hydrocarbon resources 
        of such lands. All revenues received from the disposal 
        of lands under this paragraph or from allowing the 
        surface use of such lands shall be deposited in the 
        Naval Petroleum Reserve Numbered 2 Lease Revenue 
        Account established by section 332.
    (d) Conforming Amendment.--Section 3403 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105-261; 10 U.S.C 7420 note) is amended by 
striking subsection (b).

SEC. 332. NAVAL PETROLEUM RESERVE NUMBERED 2 LEASE REVENUE ACCOUNT.

    (a) Establishment.--There is established in the Treasury a 
special deposit account to be known as the ``Naval Petroleum 
Reserve Numbered 2 Lease Revenue Account'' (in this section 
referred to as the ``lease revenue account''). The lease 
revenue account is a revolving account, and amounts in the 
lease revenue account shall be available to the Secretary of 
the Interior, without further appropriation, for the purposes 
specified in subsection (b).
    (b) Purposes of Account.--
            (1) Environmental-related costs.--The lease revenue 
        account shall be the sole and exclusive source of funds 
        to pay for any and all costs and expenses incurred by 
        the United States for--
                    (A) environmental investigations (other 
                than any environmental investigations that were 
                conducted by the Secretary before the transfer 
                of the Naval Petroleum Reserve Numbered 2 lands 
                under section 331), remediation, compliance 
                actions, response, waste management, 
                impediments, fines or penalties, or any other 
                costs or expenses of any kind arising from, or 
                relating to, conditions existing on or below 
                the Naval Petroleum Reserve Numbered 2 lands, 
                or activities occurring or having occurred on 
                such lands, on or before the date of the 
                transfer of such lands; and
                    (B) any future remediation necessitated as 
                a result of pre-transfer and leasing activities 
                on such lands.
            (2) Transition costs.--The lease revenue account 
        shall also be available for use by the Secretary of the 
        Interior to pay for transition costs incurred by the 
        Department of the Interior associated with the transfer 
        and leasing of the Naval Petroleum Reserve Numbered 2 
        lands.
    (c) Funding.--The lease revenue account shall consist of 
the following:
            (1) Notwithstanding any other provision of law, for 
        a period of three years after the date of the transfer 
        of the Naval Petroleum Reserve Numbered 2 lands under 
        section 331, the sum of $500,000 per year of revenue 
        from leases entered into before that date, including 
        bonuses, rents, royalties, and interest charges 
        collected pursuant to the Federal Oil and Gas Royalty 
        Management Act of 1982 (30 U.S.C. 1701 et. seq.), 
        derived from the Naval Petroleum Reserve Numbered 2 
        lands, shall be deposited into the lease revenue 
        account.
            (2) Subject to subsection (d), all revenues derived 
        from leases on Naval Petroleum Reserve Numbered 2 lands 
        issued on or after the date of the transfer of such 
        lands, including bonuses, rents, royalties, and 
        interest charges collected pursuant to the Federal Oil 
        and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 
        et seq.), shall be deposited into the lease revenue 
        account.
    (d) Limitation.--Funds in the lease revenue account shall 
not exceed $3,000,000 at any one time. Whenever funds in the 
lease revenue account are obligated or expended so that the 
balance in the account falls below that amount, lease revenues 
referred to in subsection(c)(2) shall be deposited in the 
account to maintain a balance of $3,000,000.
    (e) Termination of Account.--At such time as the Secretary 
of the Interior certifies that remediation of all environmental 
contamination of Naval Petroleum Reserve Numbered 2 lands in 
existence as of the date of the transfer of such lands under 
section 331 has been successfully completed, that all costs and 
expenses of investigation, remediation, compliance actions, 
response, waste management, impediments, fines, or penalties 
associated with environmental contamination of such lands in 
existence as of the date of the transfer have been paid in 
full, and that the transition costs of the Department of the 
Interior referred to in subsection (b)(2) have been paid in 
full, the lease revenue account shall be terminated and any 
remaining funds shall be distributed in accordance with 
subsection (f).
    (f) Distribution of Remaining Funds.--Section 35 of the 
Mineral Leasing Act (30 U.S.C. 191) shall apply to the payment 
and distribution of all funds remaining in the lease revenue 
account upon its termination under subsection (e).

SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM RESERVE NUMBERED 
                    2, TO CITY OF TAFT, CALIFORNIA.

    (a) Conveyance.--Effective on the date of the enactment of 
this Act, there is conveyed to the City of Taft, California (in 
this section referred to as the ``City''), all surface right, 
title, and interest of the United States in and to a parcel of 
real property consisting of approximately 220 acres located in 
the NE\1/4\, the NE\1/4\ of the NW\1/4\, and the N\1/2\ of the 
SE\1/4\ of the NW\1/4\ of section 18, township 32 south, range 
24 east, Mount Diablo meridian, Kern County, California.
    (b) Consideration.--The conveyance under subsection (a) is 
made without the payment of consideration by the City.
    (c) Treatment of Existing Rights.--The conveyance under 
subsection (a) is subject to valid existing rights, including 
Federal oil and gas lease SAC--019577.
    (d) Treatment of Minerals.--All coal, oil, gas, and other 
minerals within the lands conveyed under subsection (a) are 
reserved to the United States, except that the United States 
and its lessees, licensees, permittees, or assignees shall have 
no right of surface use or occupancy of the lands. Nothing in 
this subsection shall be construed to require the United States 
or its lessees, licensees, permittees, or assignees to support 
the surface of the conveyed lands.
    (e) Indemnify and Hold Harmless.--The City shall indemnify, 
defend, and hold harmless the United States for, from, and 
against, and the City shall assume all responsibility for, any 
and all liability of any kind or nature, including all loss, 
cost, expense, or damage, arising from the City's use or 
occupancy of, or operations on, the land conveyed under 
subsection (a), whether such use or occupancy of, or operations 
on, occurred before or occur after the date of the enactment of 
this Act.
    (f) Instrument of Conveyance.--Not later than one year 
after the date of the enactment of this Act, the Secretary 
shall execute, file, and cause to be recorded in the 
appropriate office a deed or other appropriate instrument 
documenting the conveyance made by this section.

SEC. 334. REVOCATION OF LAND WITHDRAWAL.

    Effective on the date of the enactment of this Act, the 
Executive Order of December 13, 1912, which created Naval 
Petroleum Reserve Numbered 2, is revoked in its entirety.

                   Subtitle E--Production Incentives

SEC. 341. DEFINITION OF SECRETARY.

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

SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

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

SEC. 343. MARGINAL PROPERTY PRODUCTION INCENTIVES.

    (a) Definition of Marginal Property.--Until such time as 
the Secretary issues regulations under subsection (e) that 
prescribe a different definition, in this section, the term 
``marginal property'' means an onshore unit, communitization 
agreement, or lease not within a unit or communitization 
agreement, that produces on average the combined equivalent of 
less than 15 barrels of oil per well per day or 90,000,000 
British thermal units of gas per well per day calculated based 
on the average over the 3 most recent production months, 
including only wells that produce on more than half of the days 
during those 3 production months.
    (b) Conditions for Reduction of Royalty Rate.--Until such 
time as the Secretary issues regulations under subsection (e) 
that prescribe different standards or requirements, the 
Secretary shall reduce the royalty rate on--
            (1) oil production from marginal properties as 
        prescribed in subsection (c) if the spot price of West 
        Texas Intermediate crude oil at Cushing, Oklahoma, is, 
        on average, less than $15 per barrel (adjusted in 
        accordance with the Consumer Price Index for all-urban 
        consumers, United States city average, as published by 
        the Bureau of Labor Statistics) for 90 consecutive 
        trading days; and
            (2) gas production from marginal properties as 
        prescribed in subsection (c) if the spot price of 
        natural gas delivered at Henry Hub, Louisiana, is, on 
        average, less than $2.00 per million British thermal 
        units (adjusted in accordance with the Consumer Price 
        Index for all-urban consumers, United States city 
        average, as published by the Bureau of Labor 
        Statistics) for 90 consecutive trading days.
    (c) Reduced Royalty Rate.--
            (1) In general.--When a marginal property meets the 
        conditions specified in subsection (b), the royalty 
        rate shall be the lesser of--
                    (A) 5 percent; or
                    (B) the applicable rate under any other 
                statutory or regulatory royalty relief 
                provision that applies to the affected 
                production.
            (2) Period of effectiveness.--The reduced royalty 
        rate under this subsection shall be effective beginning 
        on the first day of the production month following the 
        date on which the applicable condition specified in 
        subsection (b) is met.
    (d) Termination of Reduced Royalty Rate.--A royalty rate 
prescribed in subsection (c)(1) shall terminate--
            (1) with respect to oil production from a marginal 
        property, on the first day of the production month 
        following the date on which--
                    (A) the spot price of West Texas 
                Intermediate crude oil at Cushing, Oklahoma, on 
                average, exceeds $15 per barrel (adjusted in 
                accordance with the Consumer Price Index for 
                all-urban consumers, United States city 
                average, as published by the Bureau of Labor 
                Statistics) for 90 consecutive trading days; or
                    (B) the property no longer qualifies as a 
                marginal property; and
            (2) with respect to gas production from a marginal 
        property, on the first day of the production month 
        following the date on which--
                    (A) the spot price of natural gas delivered 
                at Henry Hub, Louisiana, on average, exceeds 
                $2.00 per million British thermal units 
                (adjusted in accordance with the Consumer Price 
                Index for all-urban consumers, United States 
                city average, as published by the Bureau of 
                Labor Statistics) for 90 consecutive trading 
                days; or
                    (B) the property no longer qualifies as a 
                marginal property.
    (e) Regulations Prescribing Different Relief.--
            (1) Discretionary regulations.--The Secretary may 
        by regulation prescribe different parameters, 
        standards, and requirements for, and a different degree 
        or extent of, royalty relief for marginal properties in 
        lieu of those prescribed in subsections (a) through 
        (d).
            (2) Mandatory regulations.--Unless a determination 
        is made under paragraph (3), not later than 18 months 
        after the date of enactment of this Act, the Secretary 
        shall by regulation--
                    (A) prescribe standards and requirements 
                for, and the extent of royalty relief for, 
                marginal properties for oil and gas leases on 
                the outer Continental Shelf; and
                    (B) define what constitutes a marginal 
                property on the outer Continental Shelf for 
                purposes of this section.
            (3) Report.--To the extent the Secretary determines 
        that it is not practicable to issue the regulations 
        referred to in paragraph (2), the Secretary shall 
        provide a report to Congress explaining such 
        determination by not later than 18 months after the 
        date of enactment of this Act.
            (4) Considerations.--In issuing regulations under 
        this subsection, the Secretary may consider--
                    (A) oil and gas prices and market trends;
                    (B) production costs;
                    (C) abandonment costs;
                    (D) Federal and State tax provisions and 
                the effects of those provisions on production 
                economics;
                    (E) other royalty relief programs;
                    (F) regional differences in average 
                wellhead prices;
                    (G) national energy security issues; and
                    (H) other relevant matters, as determined 
                by the Secretary.
    (f) Savings Provision.--Nothing in this section prevents a 
lessee from receiving royalty relief or a royalty reduction 
pursuant to any other law (including a regulation) that 
provides more relief than the amounts provided by this section.

SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
                    SHALLOW WATERS OF THE GULF OF MEXICO.

    (a) Royalty Incentive Regulations for Ultra Deep Gas 
Wells.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, in addition to any other 
        regulations that may provide royalty incentives for 
        natural gas produced from deep wells on oil and gas 
        leases issued pursuant to the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall 
        issue regulations granting royalty relief suspension 
        volumes of not less than 35 billion cubic feet with 
        respect to the production of natural gas from ultra 
        deep wells on leases issued in shallow waters less than 
        400 meters deep located in the Gulf of Mexico wholly 
        west of 87 degrees, 30 minutes west longitude. 
        Regulations issued under this subsection shall be 
        retroactive to the date that the notice of proposed 
        rulemaking is published in the Federal Register.
            (2) Suspension volumes.--The Secretary may grant 
        suspension volumes of not less than 35 billion cubic 
        feet in any case in which--
                    (A) the ultra deep well is a sidetrack; or
                    (B) the lease has previously produced from 
                wells with a perforated interval the top of 
                which is at least 15,000 feet true vertical 
                depth below the datum at mean sea level.
            (3) Definitions.--In this subsection:
                    (A) Ultra deep well.--The term ``ultra deep 
                well'' means a well drilled with a perforated 
                interval, the top of which is at least 20,000 
                true vertical depth below the datum at mean sea 
                level.
                    (B) Sidetrack.--
                            (i) In general.--The term 
                        ``sidetrack'' means a well resulting 
                        from drilling an additional hole to a 
                        new objective bottom-hole location by 
                        leaving a previously drilled hole.
                            (ii) Inclusion.--The term 
                        ``sidetrack'' includes-
                                    (I) drilling a well from a 
                                platform slot reclaimed from a 
                                previously drilled well;
                                    (II) re-entering and 
                                deepening a previously drilled 
                                well; and
                                    (III) a bypass from a 
                                sidetrack, including drilling 
                                around material blocking a hole 
                                or drilling to straighten a 
                                crooked hole.
    (b) Royalty Incentive Regulations for Deep Gas Wells.--Not 
later than 180 days after the date of enactment of this Act, in 
addition to any other regulations that may provide royalty 
incentives for natural gas produced from deep wells on oil and 
gas leases issued pursuant to the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331 et seq.), the Secretary shall issue 
regulations granting royalty relief suspension volumes with 
respect to production of natural gas from deep wells on leases 
issued in waters more than 200 meters but less than 400 meters 
deep located in the Gulf of Mexico wholly west of 87 degrees, 
30 minutes west longitude. The suspension volumes for deep 
wells within 200 to 400 meters of water depth shall be 
calculated using the same methodology used to calculate the 
suspension volumes for deep wells in the shallower waters of 
the Gulf of Mexico, and in no case shall the suspension volumes 
for deep wells within 200 to 400 meters of water depth be lower 
than those for deep wells in shallower waters. Regulations 
issued under this subsection shall be retroactive to the date 
that the notice of proposed rulemaking is published in the 
Federal Register.
    (c) Limitations.--The Secretary may place limitations on 
the royalty relief granted under this section based on market 
price. The royalty relief granted under this section shall not 
apply to a lease for which deep water royalty relief is 
available.

SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--Subject to subsections (b) and (c), for 
each tract located in water depths of greater than 400 meters 
in the Western and Central Planning Area of the Gulf of Mexico 
(including the portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude), any oil or gas lease sale 
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) occurring during the 5-year period beginning on the date 
of enactment of this Act shall use the bidding system 
authorized under section 8(a)(1)(H) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
    (b) Suspension of Royalties.--The suspension of royalties 
under subsection (a) shall be established at a volume of not 
less than--
            (1) 5,000,000 barrels of oil equivalent for each 
        lease in water depths of 400 to 800 meters;
            (2) 9,000,000 barrels of oil equivalent for each 
        lease in water depths of 800 to 1,600 meters;
            (3) 12,000,000 barrels of oil equivalent for each 
        lease in water depths of 1,600 to 2,000 meters; and
            (4) 16,000,000 barrels of oil equivalent for each 
        lease in water depths greater than 2,000 meters.
    (c) Limitation.--The Secretary may place limitations on 
royalty relief granted under this section based on market 
price.

SEC. 346. ALASKA OFFSHORE ROYALTY SUSPENSION.

    Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in the 
Planning Areas offshore Alaska'' after ``West longitude''.

SEC. 347. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM RESERVE IN 
                    ALASKA.

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

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

    ``(a) In General.--The Secretary shall conduct an 
expeditious program of competitive leasing of oil and gas in 
the Reserve in accordance with this Act.
    ``(b) Mitigation of Adverse Effects.--Activities'';
            (2) by striking ``Alaska (the Reserve); (2) the'' 
        and inserting ``Alaska.
    ``(c) Land Use Planning; BLM Wilderness Study.--The'';
            (3) by striking ``Reserve; (3) the'' and inserting 
        ``Reserve.
    ``(d) First Lease Sale.--The;'';
            (4) by striking ``4332); (4) the'' and inserting 
        ``4321 et seq.).
    ``(e) Withdrawals.--The'';
            (5) by striking ``herein; (5) bidding'' and 
        inserting ``under this section.
    ``(f) Bidding Systems.--Bidding'';
            (6) by striking ``629); (6) lease'' and inserting 
        ``629).
    ``(g) Geological Structures.--Lease'';
            (7) by striking ``structures; (7) the'' and 
        inserting ``structures.
    ``(h) Size of Lease Tracts.--The'';
            (8) by striking ``Secretary; (8)'' and all that 
        follows through ``Drilling, production,'' and inserting 
        ``Secretary.
    ``(i) Terms.--
            ``(1) In general.--Each lease shall be issued for 
        an initial period of not more than 10 years, and shall 
        be extended for so long thereafter as oil or gas is 
        produced from the lease in paying quantities, oil or 
        gas is capable of being produced in paying quantities, 
        or drilling or reworking operations, as approved by the 
        Secretary, are conducted on the leased land.
            ``(2) Renewal of leases with discoveries.--At the 
        end of the primary term of a lease the Secretary shall 
        renew for an additional 10-year term a lease that does 
        not meet the requirements of paragraph (1) if the 
        lessee submits to the Secretary an application for 
        renewal not later than 60 days before the expiration of 
        the primary lease and the lessee certifies, and the 
        Secretary agrees, that hydrocarbon resources were 
        discovered on one or morewells drilled on the leased 
land in such quantities that a prudent operator would hold the lease 
for potential future development.
            ``(3) Renewal of leases without discoveries.--At 
        the end of the primary term of a lease the Secretary 
        shall renew for an additional 10-year term a lease that 
        does not meet the requirements of paragraph (1) if the 
        lessee submits to the Secretary an application for 
        renewal not later than 60 days before the expiration of 
        the primary lease and pays the Secretary a renewal fee 
        of $100 per acre of leased land, and--
                    ``(A) the lessee provides evidence, and the 
                Secretary agrees that, the lessee has 
                diligently pursued exploration that warrants 
                continuation with the intent of continued 
                exploration or future potential development of 
                the leased land; or
                    ``(B) all or part of the lease--
                            ``(i) is part of a unit agreement 
                        covering a lease described in 
                        subparagraph (A); and
                            ``(ii) has not been previously 
                        contracted out of the unit.
            ``(4) Applicability.--This subsection applies to a 
        lease that is in effect on or after the date of 
        enactment of the Energy Policy Act of 2005.
            ``(5) Expiration for failure to produce.--
        Notwithstanding any other provision of this Act, if no 
        oil or gas is produced from a lease within 30 years 
        after the date of the issuance of the lease the lease 
        shall expire.
            ``(6) Termination.--No lease issued under this 
        section covering lands capable of producing oil or gas 
        in paying quantities shall expire because the lessee 
        fails to produce the same due to circumstances beyond 
        the control of the lessee.
    ``(j) Unit Agreements.--
            ``(1) In general.--For the purpose of conservation 
        of the natural resources of all or part of any oil or 
        gas pool, field, reservoir, or like area, lessees 
        (including representatives) of the pool, field, 
        reservoir, or like area may unite with each other, or 
        jointly or separately with others, in collectively 
        adopting and operating under a unit agreement for all 
        or part of the pool, field, reservoir, or like area 
        (whether or not any other part of the oil or gas pool, 
        field, reservoir, or like area is already subject to 
        any cooperative or unit plan of development or 
        operation), if the Secretary determines the action to 
        be necessary or advisable in the public interest. In 
        determining the public interest, the Secretary should 
        consider, among other things, the extent to which the 
        unit agreement will minimize the impact to surface 
        resources of the leases and will facilitate 
        consolidation of facilities.
            ``(2) Consultation.--In making a determination 
        under paragraph (1), the Secretary shall consult with 
        and provide opportunities for participation by the 
        State of Alaska or a Regional Corporation (as defined 
        in section 3 of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1602)) with respect to the creation or 
        expansion of units that include acreage in which the 
        State of Alaska or the Regional Corporation has an 
        interest in the mineral estate.
            ``(3) Production allocation methodology.--(A) The 
        Secretary may use a production allocation methodology 
        for each participating area within a unit that includes 
        solely Federal land in the Reserve.
            ``(B) The Secretary shall use a production 
        allocation methodology for each participating area 
        within a unit that includes Federal land in the Reserve 
        and non-Federal land based on the characteristics of 
        each specific oil or gas pool, field, reservoir, or 
        like area to take into account reservoir heterogeneity 
        and area variation in reservoir producibility across 
        diverse leasehold interests. The implementation of the 
        foregoing production allocation methodology shall be 
        controlled by agreement among the affected lessors and 
        lessees.
            ``(4) Benefit of operations.--Drilling, 
        production,'';
            (9) by striking ``When separate'' and inserting the 
        following:
            ``(5) Pooling.--If separate'';
            (10) by inserting ``(in consultation with the 
        owners of the other land)'' after ``determined by the 
        Secretary of the Interior'';
            (11) by striking ``thereto; (10) to'' and all that 
        follows through ``the terms provided therein'' and 
        inserting ``to the agreement.
    ``(k) Exploration Incentives.--
            ``(1) In general.--
                    ``(A) Waiver, suspension, or reduction.--To 
                encourage the greatest ultimate recovery of oil 
                or gas or in the interest of conservation, the 
                Secretary may waive, suspend, or reduce the 
                rental fees or minimum royalty, or reduce the 
                royalty on an entire leasehold (including on 
                any lease operated pursuant to a unit 
                agreement), whenever (after consultationwith 
the State of Alaska and the North Slope Borough of Alaska and the 
concurrence of any Regional Corporation for leases that include land 
that was made available for acquisition by the Regional Corporation 
under the provisions of section 1431(o) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3101 et seq.)) in the judgment of the 
Secretary it is necessary to do so to promote development, or whenever 
in the judgment of the Secretary the leases cannot be successfully 
operated under the terms provided therein.
                    ``(B) Applicability.--This paragraph 
                applies to a lease that is in effect on or 
                after the date of enactment of the Energy 
                Policy Act of 2005.'';
            (12) by striking ``The Secretary is authorized to'' 
        and inserting the following:
            ``(2) Suspension of operations and production.--The 
        Secretary may'';
            (13) by striking ``In the event'' and inserting the 
        following:
            ``(3) Suspension of payments.--If'';
            (14) by striking ``thereto; and (11) all'' and 
        inserting ``to the lease.
    ``(l) Receipts.--All'';
            (15) by redesignating subparagraphs (A), (B), and 
        (C) as paragraphs (1), (2), and (3), respectively;
            (16) by striking ``Any agency'' and inserting the 
        following:
    ``(m) Explorations.--Any agency'';
            (17) by striking ``Any action'' and inserting the 
        following:
    ``(n) Environmental Impact Statements.--
            ``(1) Judicial review.--Any action'';
            (18) by striking ``The detailed'' and inserting the 
        following:
            ``(2) Initial lease sales.--The detailed'';
            (19) by striking ``section 104(b) of the Naval 
        Petroleum Reserves Production Act of 1976 (90 Stat. 
        304; 42 U.S.C. 6504)'' and inserting ``section 
        104(a)''; and
            (20) by adding at the end the following:
    ``(o) Regulations.--As soon as practicable after the date 
of enactment of the Energy Policy Act of 2005, the Secretary 
shall issue regulations to implement this section.
    ``(p) Waiver of Administration for Conveyed Lands.--
            ``(1) In general.--Notwithstanding section 14(g) of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 
        1613(g))--
                    ``(A) the Secretary of the Interior shall 
                waive administration of any oil and gas lease 
                to the extent that the lease covers any land in 
                the Reserve in which all of the subsurface 
                estate is conveyed to the Arctic Slope Regional 
                Corporation (referred to in this subsection as 
                the `Corporation');
                    ``(B)(i) in a case in which a conveyance of 
                a subsurface estate described in subparagraph 
                (A) does not include all of the land covered by 
                the oil and gas lease, the person that owns the 
                subsurface estate in any particular portion of 
                the land covered by the lease shall be entitled 
                to all of the revenues reserved under the lease 
                as to that portion, including, without 
                limitation, all the royalty payable with 
                respect to oil or gas produced from or 
                allocated to that portion;
                    ``(ii) in a case described in clause (i), 
                the Secretary of the Interior shall--
                            ``(I) segregate the lease into 2 
                        leases, 1 of which shall cover only the 
                        subsurface estate conveyed to the 
                        Corporation; and
                            ``(II) waive administration of the 
                        lease that covers the subsurface estate 
                        conveyed to the Corporation; and
                    ``(iii) the segregation of the lease 
                described in clause (ii)(I) has no effect on 
                the obligations of the lessee under either of 
                the resulting leases, including obligations 
                relating to operations, production, or 
othercircumstances (other than payment of rentals or royalties); and
                    ``(C) nothing in this subsection limits the 
                authority of the Secretary of the Interior to 
                manage the federally-owned surface estate 
                within the Reserve.''.
    (c) Conforming Amendments.--Section 104 of the Naval 
Petroleum Reserves Production Act of 1976 (42 U.S.C. 6504) is 
amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (d) as 
        subsections (a) through (c), respectively.

SEC. 348. NORTH SLOPE SCIENCE INITIATIVE.

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

SEC. 349. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.

    (a) In General.--The Secretary, in cooperation with the 
Secretary of Agriculture, shall establish a program not later 
than 1 year after the date of enactment of this Act to 
remediate, reclaim, and close orphaned, abandoned, or idled oil 
and gas wells located on land administered by the land 
management agencies within the Department of the Interior and 
the Department of Agriculture.
    (b) Activities.--The program under subsection (a) shall--
            (1) include a means of ranking orphaned, abandoned, 
        or idled wells sites for priority in remediation, 
        reclamation, and closure, based on public health and 
        safety, potential environmental harm, and other land 
        use priorities;
            (2) provide for identification and recovery of the 
        costs of remediation, reclamation, and closure from 
        persons or other entities currently providing a bond or 
        other financial assurance required under State or 
        Federal law for an oil or gas well that is orphaned, 
        abandoned, or idled; and
            (3) provide for recovery from the persons or 
        entities identified under paragraph (2), or their 
        sureties or guarantors, of the costs of remediation, 
        reclamation, and closure of such wells.
    (c) Cooperation and Consultations.--In carrying out the 
program under subsection (a), the Secretary shall--
            (1) work cooperatively with the Secretary of 
        Agriculture and the States within which Federal land is 
        located; and
            (2) consult with the Secretary of Energy and the 
        Interstate Oil and Gas Compact Commission.
    (d) Plan.--Not later than 1 year after the date of 
enactment of this Act, the Secretary, in cooperation with the 
Secretary of Agriculture, shall submit to Congress a plan for 
carrying out the program under subsection (a).
    (e) Idled Well.--For the purposes of this section, a well 
is idled if--
            (1) the well has been nonoperational for at least 7 
        years; and
            (2) there is no anticipated beneficial use for the 
        well.
    (f) Federal Reimbursement for Orphaned Well Reclamation 
Pilot Program.--
            (1) Reimbursement for remediating, reclaiming, and 
        closing wells on land subject to a new lease.--The 
        Secretary shall carry out a pilot program under which, 
        in issuing a new oil and gas lease on federally owned 
        land on which 1 or more orphaned wells are located, the 
        Secretary--
                    (A) may require, other than as a condition 
                of the lease, that the lessee remediate, 
                reclaim, and close in accordance with standards 
                established by the Secretary, all orphaned 
                wells on the land leased; and
                    (B) shall develop a program to reimburse a 
                lessee, through a royalty credit against the 
                Federal share of royalties owed or other means, 
                for the reasonable actual costs of remediating, 
                reclaiming, and closing the orphaned wells 
                pursuant to that requirement.
            (2) Reimbursement for reclaiming orphaned wells on 
        other land.--In carrying out this subsection, the 
        Secretary--
                    (A) may authorize any lessee under an oil 
                and gas lease on federally owned land to 
                reclaim in accordance with the Secretary's 
                standards--
                            (i) an orphaned well on unleased 
                        federally owned land; or
                            (ii) an orphaned well located on an 
                        existing lease on federally owned land 
                        for the reclamation of which the lessee 
                        is not legally responsible; and
                    (B) shall develop a program to provide 
                reimbursement of 100 percent of the reasonable 
                actual costs of remediating, reclaiming, and 
                closing the orphaned well, through credits 
                against the Federal share of royalties or other 
                means.
            (3) Regulations.--The Secretary may issue such 
        regulations as are appropriate to carry out this 
        subsection.
    (g) Technical Assistance Program for Non-Federal Land.--
            (1) In general.--The Secretary of Energy shall 
        establish a program to provide technical and financial 
        assistance to oil and gas producing States to 
        facilitate State efforts over a 10-year period to 
        ensure a practical and economical remedy for 
        environmental problems caused by orphaned or abandoned 
        oil and gas exploration or production well sites on 
        State or private land.
            (2) Assistance.--The Secretary of Energy shall work 
        with the States, through the Interstate Oil and Gas 
        Compact Commission, to assist the States in quantifying 
        and mitigating environmental risks of onshore orphaned 
        or abandoned oil or gas wells on State and private 
        land.
            (3) Activities.--The program under paragraph (1) 
        shall include--
                    (A) mechanisms to facilitate 
                identification, if feasible, of the persons 
                currently providing a bond or other form of 
                financial assurance required under State or 
                Federal law for an oil or gas well that is 
                orphaned or abandoned;
                    (B) criteria for ranking orphaned or 
                abandoned well sites based on factors such as 
                public health and safety, potential 
                environmental harm, and other land use 
                priorities;
                    (C) information and training programs on 
                best practices for remediation of different 
                types of sites; and
                    (D) funding of State mitigation efforts on 
                a cost-shared basis.
    (h) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to carry out this section $25,000,000 for 
        each of fiscal years 2006 through 2010.
            (2) Use.--Of the amounts authorized under paragraph 
        (1), $5,000,000 are authorized for each fiscal year for 
        activities under subsection (f).

SEC. 350. COMBINED HYDROCARBON LEASING.

    (a) Special Provisions Regarding Leasing.--Section 17(b)(2) 
of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
    ``(B) For any area that contains any combination of tar 
sand and oil or gas (or both), the Secretary may issue under 
this Act, separately--
            ``(i) a lease for exploration for and extraction of 
        tar sand; and
            ``(ii) a lease for exploration for and development 
        of oil and gas.
    ``(C) A lease issued for tar sand shall be issued using the 
same bidding process, annual rental, and posting period as a 
lease issued for oil and gas, except that the minimum 
acceptable bid required for a lease issued for tar sand shall 
be $2 per acre.
    ``(D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a permit 
authorizing prospecting for tar sand must exercise due 
diligence, to promote any resource covered by a combined 
hydrocarbon lease.''.
    (b) Conforming Amendment.--Section 17(b)(1)(B) of the 
Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the 
second sentence by inserting ``, subject to paragraph (2)(B),'' 
after ``Secretary''.
    (c) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary shall issue final 
regulations to implement this section.

SEC. 351. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

    (a) Short Title.--This section may be cited as the 
``National Geological and Geophysical Data Preservation Program 
Act of 2005''.
    (b) Program.--The Secretary shall carry out a National 
Geological and Geophysical Data Preservation Program in 
accordance with this section--
            (1) to archive geologic, geophysical, and 
        engineering data, maps, well logs, and samples;
            (2) to provide a national catalog of such archival 
        material; and
            (3) to provide technical and financial assistance 
        related to the archival material.
    (c) Plan.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
plan for the implementation of the Program.
    (d) Data Archive System.--
            (1) Establishment.--The Secretary shall establish, 
        as a component of the Program, a data archive system to 
        provide for the storage, preservation, and archiving of 
        subsurface, surface, geological, geophysical, and 
        engineering data and samples. The Secretary, in 
        consultation with the Advisory Committee, shall develop 
        guidelines relating to the data archive system, 
        including the types of data and samples to be 
        preserved.
            (2) System components.--The system shall be 
        comprised of State agencies that elect to be part of 
        the system and agencies within the Department of the 
        Interior that maintain geological and geophysical data 
        and samples that are designated by the Secretary in 
        accordance with this subsection. The Program shall 
        provide for the storage of data and samples through 
        data repositories operated by such agencies.
            (3) Limitation of designation.--The Secretary may 
        not designate a State agency as a component of the data 
        archive system unless that agency is the agency that 
        acts as the geological survey in the State.
            (4) Data from federal land.--The data archive 
        system shall provide for the archiving of relevant 
        subsurface data and samples obtained from Federal 
        land--
                    (A) in the most appropriate repository 
                designated under paragraph (2), with preference 
                being given to archiving data in the State in 
                which the data were collected; and
                    (B) consistent with all applicable law and 
                requirements relating to confidentiality and 
                proprietary data.
    (e) National Catalog.--
            (1) In general.--As soon as practicable after the 
        date of enactment of this Act, the Secretary shall 
        develop and maintain, as a component of the Program, a 
        national catalog that identifies--
                    (A) data and samples available in the data 
                archive system established under subsection 
                (d);
                    (B) the repository for particular material 
                in the system; and
                    (C) the means of accessing the material.
            (2) Availability.--The Secretary shall make the 
        national catalog accessible to the public on the site 
        of the Survey on the Internet, consistent with all 
        applicable requirements related to confidentiality and 
        proprietary data.
    (f) Advisory Committee.--
            (1) In general.--The Advisory Committee shall 
        advise the Secretary on planning and implementation of 
        the Program.
            (2) New duties.--In addition to its duties under 
        the National Geologic Mapping Act of 1992 (43 U.S.C. 
        31a et seq.), the Advisory Committee shall perform the 
        following duties:
                    (A) Advise the Secretary on developing 
                guidelines and procedures for providing 
                assistance for facilities under subsection 
                (g)(1).
                    (B) Review and critique the draft 
                implementation plan prepared by the Secretary 
                under subsection (c).
                    (C) Identify useful studies of data 
                archived under the Program that will advance 
                understanding of the Nation's energy and 
                mineral resources, geologic hazards, and 
                engineering geology.
                    (D) Review the progress of the Program in 
                archiving significant data and preventing the 
                loss of such data, and the scientific progress 
                of the studies funded under the Program.
                    (E) Include in the annual report to the 
                Secretary required under section 5(b)(3) of the 
                National Geologic Mapping Act of 1992 (43 
                U.S.C. 31d(b)(3)) an evaluation of the progress 
                of the Program toward fulfilling the purposes 
                of the Program under subsection (b).
    (g) Financial Assistance.--
            (1) Archive facilities.--Subject to the 
        availability of appropriations, the Secretary shall 
        provide financial assistance to a State agency that is 
        designated under subsection (d)(2) for providing 
        facilities to archive energy material.
            (2) Studies.--Subject to the availability of 
        appropriations, the Secretary shall provide financial 
        assistance to any State agency designated under 
        subsection (d)(2) for studies and technical assistance 
        activities that enhance understanding, interpretation, 
        and use of materials archived in the data archive 
        system established under subsection (d).
            (3) Federal share.--The Federal share of the cost 
        of an activity carried out with assistance under this 
        subsection shall be not more than 50 percent of the 
        total cost of the activity.
            (4) Private contributions.--The Secretary shall 
        apply to the non-Federal share of the cost of an 
        activity carried out with assistance under this 
        subsection the value of private contributions of 
        property and services used for that activity.
    (h) Report.--The Secretary shall include in each report 
under section 8 of the National Geologic Mapping Act of 1992 
(43 U.S.C. 31g)--
            (1) a description of the status of the Program;
            (2) an evaluation of the progress achieved in 
        developing the Program during the period covered by the 
        report; and
            (3) any recommendations for legislative or other 
        action the Secretary considers necessary and 
        appropriate to fulfill the purposes of the Program 
        under subsection (b).
    (i) Maintenance of State Effort.--It is the intent of 
Congress that the States not use this section as an opportunity 
to reduce State resources applied to the activities that are 
the subject of the Program.
    (j) Definitions.--In this section:
            (1) Advisory committee.--The term ``Advisory 
        Committee'' means the advisory committee established 
        under section 5 of the National Geologic Mapping Act of 
        1992 (43 U.S.C. 31d).
            (2) Program.--The term ``Program'' means the 
        National Geological and Geophysical Data Preservation 
        Program carried out under this section.
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior, acting through the Director 
        of the United States Geological Survey.
            (4) Survey.--The term ``Survey'' means the United 
        States Geological Survey.
    (k) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $30,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 352. OIL AND GAS LEASE ACREAGE LIMITATIONS.

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

SEC. 353. GAS HYDRATE PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote 
natural gas production from the natural gas hydrate resources 
on the outer Continental Shelf and Federal lands in Alaska by 
providing royalty incentives.
    (b) Suspension of Royalties.--
            (1) In general.--The Secretary may grant royalty 
        relief in accordance with this section for natural gas 
        produced from gas hydrate resources under an eligible 
        lease.
            (2) Eligible leases.--A lease shall be an eligible 
        lease for purposes of this section if--
                    (A) it is issued under the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1331 et 
                seq.), or is an oil and gas lease issued for 
                onshore Federal lands in Alaska;
                    (B) it is issued prior to January 1, 2016; 
                and
                    (C) production under the lease of natural 
                gas from gas hydrate resources commences prior 
                to January 1, 2018.
            (3) Amount of relief.--The Secretary shall conduct 
        a rulemaking and grant royalty relief under this 
        section as a suspension volume if the Secretary 
        determines that such royalty relief would encourage 
        production of natural gas from gas hydrate resources 
        from an eligible lease. The maximum suspension volume 
        shall be 30 billion cubic feet of natural gas per 
        lease. Such relief shall be in addition to any other 
        royalty relief under any other provision applicable to 
        the lease that does not specifically grant a gas 
        hydrate production incentive. Such royalty suspension 
        volume shall be applied to any eligible production 
        occurring on or after the date of publication of the 
        advanced notice of proposed rulemaking.
            (4) Limitation.--The Secretary may place 
        limitations on royalty relief granted under this 
        section based on market price.
    (c) Application.--This section shall apply to any eligible 
lease issued before, on, or after the date of enactment of this 
Act.
    (d) Rulemakings.--
            (1) Requirement.--The Secretary shall publish the 
        advanced notice of proposed rulemaking within 180 days 
        after the date of enactment of this Act and complete 
        the rulemaking implementing this section within 365 
        days after the date of enactment of this Act.
            (2) Gas hydrate resources defined.--Such 
        regulations shall define the term ``gas hydrate 
        resources'' to include both the natural gas content of 
        gas hydrates within the hydrate stability zone and free 
        natural gas trapped by and beneath the hydrate 
        stability zone.
    (e) Review.--Not later than 365 days after the date of 
enactment of this Act, the Secretary, in consultation with the 
Secretary of Energy, shall carry out a review of, and submit to 
Congress a report on, further opportunities to enhance 
production of natural gas from gas hydrate resources on the 
outer Continental Shelf and on Federal lands in Alaska through 
the provision of other production incentives or through 
technical or financial assistance.

SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH CARBON 
                    DIOXIDE INJECTION.

    (a) Production Incentive.--
            (1) Findings.--Congress finds the following:
                    (A) Approximately two-thirds of the 
                original oil in place in the United States 
                remains unproduced.
                    (B) Enhanced oil and natural gas production 
                from the sequestering of carbon dioxide and 
                other appropriate gases has the potential to 
                increase oil and natural gas production.
                    (C) Capturing and productively using carbon 
                dioxide would help reduce the carbon intensity 
                of the economy.
            (2) Purpose.--The purpose of this section is--
                    (A) to promote the capturing, 
                transportation, and injection of produced 
                carbon dioxide, natural carbon dioxide, and 
                other appropriate gases or other matter for 
                sequestration into oil and gas fields; and
                    (B) to promote oil and natural gas 
                production from the outer Continental Shelf and 
                onshore Federal lands under lease by providing 
                royalty incentives to use enhanced recovery 
                techniques using injection of the substances 
                referred to in subparagraph (A).
    (b) Suspension of Royalties.--
            (1) In general.--If the Secretary determines that 
        reduction of the royalty under a Federal oil and gas 
        lease that is an eligible lease is in the public 
        interest and promotes the purposes of this section, the 
        Secretary shall undertake a rulemaking to provide for 
        such reduction for an eligible lease.
            (2) Rulemakings.--The Secretary shall publish the 
        advanced notice of proposed rulemaking within 180 days 
        after the date of enactment of this Act and complete 
        the rulemaking implementing this section within 365 
        days after the date of enactment of this Act.
            (3) Eligible leases.--A lease shall be an eligible 
        lease for purposes of this section if--
                    (A) it is a lease for production of oil and 
                gas from the outer Continental Shelf or Federal 
                onshore lands;
                    (B) the injection of the substances 
                referred to in subsection (a)(2)(A) will be 
                used as an enhanced recovery technique on such 
                lease; and
                    (C) the Secretary determines that the lease 
                contains oil or gas that would not likely be 
                produced without the royalty reduction provided 
                under this section.
            (4) Amount of relief.--The rulemaking shall provide 
        for a suspension volume, which shall not exceed 
        5,000,000 barrels of oil equivalent for each eligible 
        lease. Such suspension volume shall be applied to any 
        production from an eligible lease occurring on or after 
        the date of publication of any advanced notice of 
        proposed rulemaking under this subsection.
            (5) Limitation.--The Secretary may place 
        limitations on the royalty reduction granted under this 
        section based on market price.
            (6) Application.--This section shall apply to any 
        eligible lease issued before, on, or after the date of 
        enactment of this Act.
    (c) Demonstration Program.--
            (1) Establishment.--
                    (A) In general.--The Secretary of Energy 
                shall establish a competitive grant program to 
                provide grants to producers of oil and gas to 
                carry out projects to inject carbon dioxide for 
                the purpose of enhancing recovery of oil or 
                natural gas while increasing the sequestration 
                of carbon dioxide.
                    (B) Projects.--The demonstration program 
                shall provide for--
                            (i) not more than 10 projects in 
                        the Willistin Basin in North Dakota and 
                        Montana; and
                            (ii) 1 project in the Cook Inlet 
                        Basin in Alaska.
            (2) Requirements.--
                    (A) In general.--The Secretary of Energy 
                shall issue requirements relating to 
                applications for grants under paragraph (1).
                    (B) Rulemaking.--The issuance of 
                requirements under subparagraph (A) shall not 
                require a rulemaking.
                    (C) Minimum requirements.--At a minimum, 
                the Secretary shall require under subparagraph 
                (A) that an application for a grant include--
                            (i) a description of the project 
                        proposed in the application;
                            (ii) an estimate of the production 
                        increase and the duration of the 
                        production increase from the project, 
                        as compared to conventional recovery 
                        techniques, including water flooding;
                            (iii) an estimate of the carbon 
                        dioxide sequestered by project, over 
                        the life of the project;
                            (iv) a plan to collect and 
                        disseminate data relating to each 
                        project to be funded by the grant;
                            (v) a description of the means by 
                        which the project will be sustainable 
                        without Federal assistance after the 
                        completion of the term of the grant;
                            (vi) a complete description of the 
                        costs of the project, including 
                        acquisition, construction, operation, 
                        and maintenance costs over the expected 
                        life of the project;
                            (vii) a description of which costs 
                        of the project will be supported by 
                        Federal assistance under this section; 
                        and
                            (viii) a description of any 
                        secondary or tertiary recovery efforts 
                        in the field and the efficacy of water 
                        flood recovery techniques used.
            (3) Partners.--An applicant for a grant under 
        paragraph (1) may carry out a project under a pilot 
        program in partnership with 1 or more other public or 
        private entities.
            (4) Selection criteria.--In evaluating applications 
        under this subsection, the Secretary of Energy shall--
                    (A) consider the previous experience with 
                similar projects of each applicant; and
                    (B) give priority consideration to 
                applications that--
                            (i) are most likely to maximize 
                        production of oil and gas in a cost-
                        effective manner;
                            (ii) sequester significant 
                        quantities of carbon dioxide from 
                        anthropogenic sources;
                            (iii) demonstrate the greatest 
                        commitment on the part of the applicant 
                        to ensure funding for the proposed 
                        project and the greatest likelihood 
                        that the project will be maintained or 
                        expanded after Federal assistance under 
                        this section is completed; and
                            (iv) minimize any adverse 
                        environmental effects from the project.
            (5) Demonstration program requirements.--
                    (A) Maximum amount.--The Secretary of 
                Energy shall not provide more than $3,000,000 
                in Federal assistance under this subsection to 
                any applicant.
                    (B) Cost sharing.--The Secretary of Energy 
                shall require cost-sharing under this 
                subsection in accordance with section 988.
                    (C) Period of grants.--
                            (i) In general.--A project funded 
                        by a grant under this subsection shall 
                        begin construction not later than 2 
                        years after the date of provision of 
                        the grant, but in any case not later 
                        than December 31, 2010.
                            (ii) Term.--The Secretary shall not 
                        provide grant funds to any applicant 
                        under this subsection for a period of 
                        more than 5 years.
            (6) Transfer of information and knowledge.--The 
        Secretary of Energy shall establish mechanisms to 
        ensure that the information and knowledge gained by 
        participants in the program under this subsection are 
        transferred among other participants and interested 
        persons, including other applicants that submitted 
        applications for a grant under this subsection.
            (7) Schedule.--
                    (A) Publication.--Not later than 180 days 
                after the date of enactment of this Act, the 
                Secretary of Energy shall publish in the 
                Federal Register, and elsewhere, as 
                appropriate, a request for applications to 
                carry out projects under this subsection.
                    (B) Date for applications.--An application 
                for a grant under this subsection shall be 
                submitted not later than 180 days after the 
                date of publication of the request under 
                subparagraph (A).
                    (C) Selection.--After the date by which 
                applications for grants are required to be 
                submitted under subparagraph (B), the Secretary 
                of Energy, in a timely manner, shall select, 
                after peer review and based on the criteria 
                under paragraph (4), those projects to be 
                awarded a grant under this subsection.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

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

SEC. 356. DENALI COMMISSION.

    (a) Definition of Commission.--In this section, the term 
``Commission'' means the Denali Commission established by the 
Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 
105-277).
    (b) Energy Programs.--The Commission shall use amounts made 
available under subsection (d) to carry out energy programs, 
including--
            (1) energy generation and development, including--
                    (A) fuel cells, hydroelectric, solar, wind, 
                wave, and tidal energy; and
                    (B) alternative energy sources;
            (2) the construction of energy transmission, 
        including interties;
            (3) the replacement and cleanup of fuel tanks;
            (4) the construction of fuel transportation 
        networks and related facilities;
            (5) power cost equalization programs; and
            (6) projects using coal as a fuel, including coal 
        gasification projects.
    (c) Open Meetings.--
            (1) In general.--Except as provided in paragraph 
        (2), a meeting of the Commission shall be open to the 
        public if--
                    (A) the Commission members take action on 
                behalf of the Commission; or
                    (B) the deliberations of the Commission 
                determine, or result in the joint conduct or 
                disposition of, official Commission business.
            (2) Exceptions.--Paragraph (1) shall not apply to 
        any portion of a Commission meeting for which the 
        Commission, in public session, votes to close the 
        meeting for the reasons described in paragraph (2), 
        (4), (5), or (6) of subsection (c) of section 552b of 
        title 5, United States Code.
            (3) Public notice.--
                    (A) In general.--At least 1 week before a 
                meeting of the Commission, the Commission shall 
                make a public announcement of the meeting that 
                describes--
                            (i) the time, place, and subject 
                        matter of the meeting;
                            (ii) whether the meeting is to be 
                        open or closed to the public; and
                            (iii) the name and telephone number 
                        of an appropriate person to respond to 
                        requests for information about the 
                        meeting.
                    (B) Additional notice.--The Commission 
                shall make a public announcement of any change 
                to the information made available under 
                subparagraph (A) at the earliest practicable 
                time.
            (4) Minutes.--The Commission shall keep, and make 
        available to the public, a transcript, electronic 
        recording, or minutes from each Commission meeting, 
        except for portions of the meeting closed under 
        paragraph (2).
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Commission not more than $55,000,000 
for each of fiscal years 2006 through 2015 to carry out 
subsection (b).

SEC. 357. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

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

                  Subtitle F--Access to Federal Lands

SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.

    (a) Review of Onshore Oil and Gas Leasing Practices.--
            (1) In general.--The Secretary of the Interior, in 
        consultation with the Secretary of Agriculture with 
        respect to National Forest System lands under the 
        jurisdiction of the Department of Agriculture, shall 
        perform an internal review of current Federal onshore 
        oil and gas leasing and permitting practices.
            (2) Inclusions.--The review shall include the 
        process for--
                    (A) accepting or rejecting offers to lease;
                    (B) administrative appeals of decisions or 
                orders of officers or employees of the Bureau 
                of Land Management with respect to a Federal 
                oil or gas lease;
                    (C) considering surface use plans of 
                operation, including the timeframes in which 
                the plans are considered, and any 
                recommendations for improving and expediting 
                the process; and
                    (D) identifying stipulations to address 
                site-specific concerns and conditions, 
                including those stipulations relating to the 
                environment and resource use conflicts.
    (b) Report.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior and the 
Secretary of Agriculture shall transmit a report to Congress 
that describes--
            (1) actions taken under section 3 of Executive 
        Order No. 13212 (42 U.S.C. 13201 note); and
            (2) actions taken or any plans to improve the 
        Federal onshore oil and gas leasing program.

SEC. 362. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--
            (1) Secretary of the interior.--To ensure timely 
        action on oil and gas leases and applications for 
        permits to drill on land otherwise available for 
        leasing, the Secretary of the Interior (referred to in 
        this section as the ``Secretary'') shall--
                    (A) ensure expeditious compliance with 
                section 102(2)(C) of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4332(2)(C)) and 
                any other applicable environmental and cultural 
                resources laws;
                    (B) improve consultation and coordination 
                with the States and the public; and
                    (C) improve the collection, storage, and 
                retrieval of information relating to the oil 
                and gas leasing activities.
            (2) Secretary of agriculture.--To ensure timely 
        action on oil and gas lease applications for permits to 
        drill on land otherwise available for leasing, the 
        Secretary of Agriculture shall--
                    (A) ensure expeditious compliance with all 
                applicable environmental and cultural resources 
                laws; and
                    (B) improve the collection, storage, and 
                retrieval of information relating to the oil 
                and gas leasing activities.
    (b) Best Management Practices.--
            (1) In general.--Not later than 18 months after the 
        date of enactment of this Act, the Secretary shall 
        develop and implement best management practices to--
                    (A) improve the administration of the 
                onshore oil and gas leasing program under the 
                Mineral Leasing Act (30 U.S.C. 181 et seq.); 
                and
                    (B) ensure timely action on oil and gas 
                leases and applications for permits to drill on 
                land otherwise available for leasing.
            (2) Considerations.--In developing the best 
        management practices under paragraph (1), the Secretary 
        shall consider any recommendations from the review 
        under section 361.
            (3) Regulations.--Not later than 180 days after the 
        development of the best management practices under 
        paragraph (1), the Secretary shall publish, for public 
        comment, proposed regulations that set forth specific 
        timeframes for processing leases and applications in 
        accordance with the best management practices, 
        including deadlines for--
                    (A) approving or disapproving--
                            (i) resource management plans and 
                        related documents;
                            (ii) lease applications;
                            (iii) applications for permits to 
                        drill; and
                            (iv) surface use plans; and
                    (B) related administrative appeals.
    (c) Improved Enforcement.--The Secretary and the Secretary 
Agriculture shall improve inspection and enforcement of oil and 
gas activities, including enforcement of terms and conditions 
in permits to drill on land under the jurisdiction of the 
Secretary and the Secretary of Agriculture, respectively.
    (d) Authorization of Appropriations.--In addition to 
amounts made available to carry out activities relating to oil 
and gas leasing on public land administered by the Secretary 
and National Forest System land administered by the Secretary 
of Agriculture, there are authorized to be appropriated for 
each of fiscal years 2006 through 2010--
            (1) to the Secretary, acting through the Director 
        of the Bureau of Land Management--
                    (A) $40,000,000 to carry out subsections 
                (a)(1) and (b); and
                    (B) $20,000,000 to carry out subsection 
                (c);
            (2) to the Secretary, acting through the Director 
        of the United States Fish and Wildlife Service, 
        $5,000,000 to carry out subsection (a)(1); and
            (3) to the Secretary of Agriculture, acting through 
        the Chief of the Forest Service, $5,000,000 to carry 
        out subsections (a)(2) and (c).

SEC. 363. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.

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

SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL 
                    LAND.

    (a) Assessment.--Section 604 of the Energy Act of 2000 (42 
U.S.C. 6217) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``reserve''; and
                            (ii) by striking ``and'' after the 
                        semicolon; and
                    (B) by striking paragraph (2) and inserting 
                the following:
            ``(2) the extent and nature of any restrictions or 
        impediments to the development of the resources, 
        including--
                    ``(A) impediments to the timely granting of 
                leases;
                    ``(B) post-lease restrictions, impediments, 
                or delays on development for conditions of 
                approval, applications for permits to drill, or 
                processing of environmental permits; and
                    ``(C) permits or restrictions associated 
                with transporting the resources for entry into 
                commerce; and
            ``(3) the quantity of resources not produced or 
        introduced into commerce because of the 
        restrictions.'';
            (2) in subsection (b)--
                    (A) by striking ``reserve'' and inserting 
                ``resource''; and
                    (B) by striking ``publically'' and 
                inserting ``publicly''; and
            (3) by striking subsection (d) and inserting the 
        following:
    ``(d) Assessments.--Using the inventory, the Secretary of 
Energy shall make periodic assessments of economically 
recoverable resources accounting for a range of parameters such 
as current costs, commodity prices, technology, and 
regulations.''.
    (b) Methodology.--The Secretary of the Interior shall use 
the same assessment methodology across all geological 
provinces, areas, and regions in preparing and issuing national 
geological assessments to ensure accurate comparisons of 
geological resources.

SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (referred 
to in this section as the ``Secretary'') shall establish a 
Federal Permit Streamlining Pilot Project (referred to in this 
section as the ``Pilot Project'').
    (b) Memorandum of Understanding.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        enter into a memorandum of understanding for purposes 
        of this section with--
                    (A) the Secretary of Agriculture;
                    (B) the Administrator of the Environmental 
                Protection Agency; and
                    (C) the Chief of Engineers.
            (2) State participation.--The Secretary may request 
        that the Governors of Wyoming, Montana, Colorado, Utah, 
        and New Mexico be signatories to the memorandum of 
        understanding.
    (c) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the 
        date of the signing of the memorandum of understanding 
        under subsection (b), all Federal signatory parties 
        shall, if appropriate, assign to each of the field 
        offices identified in subsection (d) an employee who 
        has expertise in the regulatory issues relating to the 
        office in which the employee is employed, including, as 
        applicable, particular expertise in--
                    (A) the consultations and the preparation 
                of biological opinions under section 7 of the 
                Endangered Species Act of 1973 (16 U.S.C. 
                1536);
                    (B) permits under section 404 of Federal 
                Water Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air 
                Act (42 U.S.C. 7401 et seq.);
                    (D) planning under the National Forest 
                Management Act of 1976 (16 U.S.C. 472a et 
                seq.); and
                    (E) the preparation of analyses under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
            (2) Duties.--Each employee assigned under paragraph 
        (1) shall--
                    (A) not later than 90 days after the date 
                of assignment, report to the Bureau of Land 
                Management Field Managers in the office to 
                which the employee is assigned;
                    (B) be responsible for all issues relating 
                to the jurisdiction of the home office or 
                agency of the employee; and
                    (C) participate as part of the team of 
                personnel working on proposed energy projects, 
                planning, and environmental analyses.
    (d) Field Offices.--The following Bureau of Land Management 
Field Offices shall serve as the Pilot Project offices:
            (1) Rawlins, Wyoming.
            (2) Buffalo, Wyoming.
            (3) Miles City, Montana
            (4) Farmington, New Mexico.
            (5) Carlsbad, New Mexico.
            (6) Grand Junction/Glenwood Springs, Colorado.
            (7) Vernal, Utah.
    (e) Reports.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that--
            (1) outlines the results of the Pilot Project to 
        date; and
            (2) makes a recommendation to the President 
        regarding whether the Pilot Project should be 
        implemented throughout the United States.
    (f) Additional Personnel.--The Secretary shall assign to 
each field office identified in subsection (d) any additional 
personnel that are necessary to ensure the effective 
implementation of--
            (1) the Pilot Project; and
            (2) other programs administered by the field 
        offices, including inspection and enforcement relating 
        to energy development on Federal land, in accordance 
        with the multiple use mandate of the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1701 et 
        seq).
    (g) Permit Processing Improvement Fund.--Section 35 of the 
Mineral Leasing Act (30 U.S.C. 191) is amended by adding at the 
end the following:
    ``(c)(1) Notwithstanding the first sentence of subsection 
(a), any rentals received from leases in any State (other than 
the State of Alaska) on or after the date of enactment of this 
subsection shall be deposited in the Treasury, to be allocated 
in accordance with paragraph (2).
    ``(2) Of the amounts deposited in the Treasury under 
paragraph (1)--
            ``(A) 50 percent shall be paid by the Secretary of 
        the Treasury to the State within the boundaries of 
        which the leased land is located or the deposits were 
        derived; and
            ``(B) 50 percent shall be deposited in a special 
        fund in the Treasury, to be known as the `BLM Permit 
        Processing Improvement Fund' (referred to in this 
        subsection as the `Fund').
    ``(3) For each of fiscal years 2006 through 2015, the Fund 
shall be available to the Secretary of the Interior for 
expenditure, without further appropriation and without fiscal 
year limitation, for the coordination and processing of oil and 
gas use authorizations on onshore Federal land under the 
jurisdiction of the Pilot Project offices identified in section 
365(d) of the Energy Policy Act of 2005.''.
    (h) Transfer of Funds.--For the purposes of coordination 
and processing of oil and gas use authorizations on Federal 
land under the administration of the Pilot Project offices 
identified in subsection (d), the Secretary may authorize the 
expenditure or transfer of such funds as are necessary to--
            (1) the United States Fish and Wildlife Service;
            (2) the Bureau of Indian Affairs;
            (3) the Forest Service;
            (4) the Environmental Protection Agency;
            (5) the Corps of Engineers; and
            (6) the States of Wyoming, Montana, Colorado, Utah, 
        and New Mexico.
    (i) Fees.--During the period in which the Pilot Project is 
authorized, the Secretary shall not implement a rulemaking that 
would enable an increase in fees to recover additional costs 
related to processing drilling-related permit applications and 
use authorizations.
    (j) Savings Provision.--Nothing in this section affects--
            (1) the operation of any Federal or State law; or
            (2) any delegation of authority made by the head of 
        a Federal agency whose employees are participating in 
        the Pilot Project.

SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.

    Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
amended by adding at the end the following:
    ``(p) Deadlines for Consideration of Applications for 
Permits.--
            ``(1) In general.--Not later than 10 days after the 
        date on which the Secretary receives an application for 
        any permit to drill, the Secretary shall--
                    ``(A) notify the applicant that the 
                application is complete; or
                    ``(B) notify the applicant that information 
                is missing and specify any information that is 
                required to be submitted for the application to 
                be complete.
            ``(2) Issuance or deferral.--Not later than 30 days 
        after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                    ``(A) issue the permit, if the requirements 
                under the National Environmental Policy Act of 
                1969 and other applicable law have been 
                completed within such timeframe; or
                    ``(B) defer the decision on the permit and 
                provide to the applicant a notice--
                            ``(i) that specifies any steps that 
                        the applicant could take for the permit 
                        to be issued; and
                            ``(ii) a list of actions that need 
                        to be taken by the agency to complete 
                        compliance with applicable law together 
                        with timelines and deadlines for 
                        completing such actions.
            ``(3) Requirements for deferred applications.--
                    ``(A) In general.--If the Secretary 
                provides notice under paragraph (2)(B), the 
                applicant shall have a period of 2 years from 
                the date of receipt of the notice in which to 
                complete all requirements specified by the 
                Secretary, including providing information 
                needed for compliance with the National 
                Environmental Policy Act of 1969.
                    ``(B) Issuance of decision on permit.--If 
                the applicant completes the requirements within 
                the period specified in subparagraph (A), the 
                Secretary shall issue a decision on the permit 
                not later than 10 days after the date of 
                completion of the requirements described in 
                subparagraph (A), unless compliance with the 
                National Environmental Policy Act of 1969 and 
                other applicable law has not been completed 
                within such timeframe.
                    ``(C) Denial of permit.--If the applicant 
                does not complete the requirements within the 
                period specified in subparagraph (A) or if the 
                applicant does not comply with applicable law, 
                the Secretary shall deny the permit.''.

SEC. 367. FAIR MARKET VALUE DETERMINATIONS FOR LINEAR RIGHTS-OF-WAY 
                    ACROSS PUBLIC LANDS AND NATIONAL FORESTS.

    (a) Update of Fee Schedule.--Not later than one year after 
the date of enactment of this section--
            (1) the Secretary of the Interior shall update 
        section 2806.20 of title 43, Code of Federal 
        Regulations, as in effect on the date of enactment of 
        this section, to revise the per acre rental fee zone 
        value schedule by State, county, and type of linear 
        right-of-way use to reflect current values of land in 
        each zone; and
            (2) the Secretary of Agriculture shall make the 
        same revision for linear rights-of-way granted, issued, 
        or renewed under title V of the Federal Lands Policy 
        and Management Act of 1976 (43 U.S.C. 1761 et seq.) on 
        National Forest System land.
    (b) Fair Market Value Rental Determination for Linear 
Rights-of-way.--The fair market value rent of a linear right-
of-way across public lands or National Forest System lands 
issued under section 504 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1764) or section 28 of the 
Mineral Leasing Act (30 U.S.C. 185) shall be determined in 
accordance with subpart 2806 of title 43, Code of Federal 
Regulations, as in effect on the date of enactment of this 
section (including the annual or periodic updates specified in 
the regulations) and as updated in accordance with subsection 
(a).

SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.

    (a) Western States.--Not later than 2 years after the date 
of enactment of this Act, the Secretary of Agriculture, the 
Secretary of Commerce, the Secretary of Defense, the Secretary 
of Energy, and the Secretary of the Interior (in this section 
referred to collectively as ``the Secretaries''), in 
consultation with the Federal Energy Regulatory Commission, 
States, tribal or local units of governments as appropriate, 
affected utility industries, and other interested persons, 
shall consult with each other and shall--
            (1) designate, under their respective authorities, 
        corridors for oil, gas, and hydrogen pipelines and 
        electricity transmission and distribution facilities on 
        Federal land in the eleven contiguous Western States 
        (as defined in section 103(o) of the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1702(o));
            (2) perform any environmental reviews that may be 
        required to complete the designation of such corridors; 
        and
            (3) incorporate the designated corridors into the 
        relevant agency land use and resource management plans 
        or equivalent plans.
    (b) Other States.--Not later than 4 years after the date of 
enactment of this Act, the Secretaries, in consultation with 
the Federal Energy Regulatory Commission, affected utility 
industries, and other interested persons, shall jointly--
            (1) identify corridors for oil, gas, and hydrogen 
        pipelines and electricity transmission and distribution 
        facilities on Federal land in States other than those 
        described in subsection (a); and
            (2) schedule prompt action to identify, designate, 
        and incorporate the corridors into the applicable land 
        use plans.
    (c) Ongoing Responsibilities.--The Secretaries, in 
consultation with the Federal Energy Regulatory Commission, 
affected utility industries, and other interestedparties, shall 
establish procedures under their respective authorities that--
            (1) ensure that additional corridors for oil, gas, 
        and hydrogen pipelines and electricity transmission and 
        distribution facilities on Federal land are promptly 
        identified and designated as necessary; and
            (2) expedite applications to construct or modify 
        oil, gas, and hydrogen pipelines and electricity 
        transmission and distribution facilities within such 
        corridors, taking into account prior analyses and 
        environmental reviews undertaken during the designation 
        of such corridors.
    (d) Considerations.--In carrying out this section, the 
Secretaries shall take into account the need for upgraded and 
new electricity transmission and distribution facilities to--
            (1) improve reliability;
            (2) relieve congestion; and
            (3) enhance the capability of the national grid to 
        deliver electricity.
    (e) Specifications of Corridor.--A corridor designated 
under this section shall, at a minimum, specify the centerline, 
width, and compatible uses of the corridor.

SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL 
                    FUELS.

    (a) Short Title.--This section may be cited as the ``Oil 
Shale, Tar Sands, and Other Strategic Unconventional Fuels Act 
of 2005''.
    (b) Declaration of Policy.--Congress declares that it is 
the policy of the United States that--
            (1) United States oil shale, tar sands, and other 
        unconventional fuels are strategically important 
        domestic resources that should be developed to reduce 
        the growing dependence of the United States on 
        politically and economically unstable sources of 
        foreign oil imports;
            (2) the development of oil shale, tar sands, and 
        other strategic unconventional fuels, for research and 
        commercial development, should be conducted in an 
        environmentally sound manner, using practices that 
        minimize impacts; and
            (3) development of those strategic unconventional 
        fuels should occur, with an emphasis on sustainability, 
        to benefit the United States while taking into account 
        affected States and communities.
    (c) Leasing Program for Research and Development of Oil 
Shale and Tar Sands.--In accordance with section 21 of the 
Mineral Leasing Act (30 U.S.C. 241) and any other applicable 
law, except as provided in this section, not later than 180 
days after the date of enactment of this Act, from land 
otherwise available for leasing, the Secretary of the Interior 
(referred to in this section as the ``Secretary'') shall make 
available for leasing such land as the Secretary considers to 
be necessary to conduct research and development activities 
with respect to technologies for the recovery of liquid fuels 
from oil shale and tar sands resources on public lands. 
Prospective public lands within each of the States of Colorado, 
Utah, and Wyoming shall be made available for such research and 
development leasing.
    (d) Programmatic Environmental Impact Statement and 
Commercial Leasing Program for Oil Shale and Tar Sands.--
            (1) Programmatic environmental impact statement.--
        Not later than 18 months after the date of enactment of 
        this Act, in accordance with section 102(2)(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)), the Secretary shall complete a 
        programmatic environmental impact statement for a 
        commercial leasing program for oil shale and tar sands 
        resources on public lands, with an emphasis on the most 
        geologically prospective lands within each of the 
        States of Colorado, Utah, and Wyoming.
            (2) Final regulation.--Not later than 6 months 
        after the completion of the programmatic environmental 
        impact statement under this subsection, the Secretary 
        shall publish a final regulation establishing such 
        program.
    (e) Commencement of Commercial Leasing of Oil Shale and Tar 
Sands.--Not later than 180 days after publication of the final 
regulation required by subsection (d), the Secretary shall 
consult with the Governors of States with significant oil shale 
and tar sands resources on public lands, representatives of 
local governments in such States, interested Indian tribes, and 
other interested persons, to determine the level of support and 
interest in the States in the development of tar sands and oil 
shale resources. If the Secretary finds sufficient support and 
interest exists in a State, the Secretary may conduct a lease 
sale in that State under the commercial leasing program 
regulations. Evidence of interest in a lease sale under this 
subsection shall include, but not be limited to, appropriate 
areas nominated for leasing by potential lessees and other 
interested parties.
    (f) Diligent Development Requirements.--The Secretary 
shall, by regulation, designate work requirements and 
milestones to ensure the diligent development of the lease.
    (g) Initial Report by the Secretary of the Interior.--
Within 90 days after the date of enactment of this Act, the 
Secretary of the Interior shall report to theCommittee on 
Resources of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate on--
            (1) the interim actions necessary to--
                    (A) develop the program, complete the 
                programmatic environmental impact statement, 
                and promulgate the final regulation as required 
                by subsection (d); and,
                    (B) conduct the first lease sales under the 
                program as required by subsection (e); and
            (2) a schedule to complete such actions within the 
        time limits mandated by this section.
    (h) Task Force.--
            (1) Establishment.--The Secretary of Energy, in 
        cooperation with the Secretary of the Interior and the 
        Secretary of Defense, shall establish a task force to 
        develop a program to coordinate and accelerate the 
        commercial development of strategic unconventional 
        fuels, including but not limited to oil shale and tar 
        sands resources within the United States, in an 
        integrated manner.
            (2) Composition.--The Task Force shall be composed 
        of
                    (A) the Secretary of Energy (or the 
                designee of the Secretary);
                    (B) the Secretary of the Interior (or the 
                designee of the Secretary of the Interior);
                    (C) the Secretary of Defense (or the 
                designee of the Secretary of Defense);
                    (D) the Governors of affected States; and
                    (E) representatives of local governments in 
                affected areas.
            (3) Recommendations.--The Task Force shall make 
        such recommendations regarding promoting the 
        development of the strategic unconventional fuels 
        resources within the United States as it may deem 
        appropriate.
            (4) Partnerships.--The Task Force shall make 
        recommendations with respect to initiating a 
        partnership with the Province of Alberta, Canada, for 
        purposes of sharing information relating to the 
        development and production of oil from tar sands, and 
        similar partnerships with other nations that contain 
        significant oil shale resources
            (5) Reports.--
                    (A) Initial report.--Not later than 180 
                days after the date of enactment of this Act, 
                the Task Force shall submit to the President 
                and Congress a report that describes the 
                analysis and recommendations of the Task Force.
                    (B) Subsequent reports.--The Secretary 
                shall provide an annual report describing the 
                progress in developing the strategic 
                unconventional fuels resources within the 
                United States for each of the 5 years following 
                submission of the report provided for in 
                subparagraph (A).
    (i) Office of Petroleum Reserves.--
            (1) In general.--The Office of Petroleum Reserves 
        of the Department of Energy shall--
                    (A) coordinate the creation and 
                implementation of a commercial strategic fuel 
                development program for the United States;
                    (B) evaluate the strategic importance of 
                unconventional sources of strategic fuels to 
                the security of the United States;
                    (C) promote and coordinate Federal 
                Government actions that facilitate the 
                development of strategic fuels in order to 
                effectively address the energy supply needs of 
                the United States;
                    (D) identify, assess, and recommend 
                appropriate actions of the Federal Government 
                required to assist in the development and 
                manufacturing of strategic fuels; and
                    (E) coordinate and facilitate appropriate 
                relationships between private industry and the 
                Federal Government to promote sufficient and 
                timely private investment to commercialize 
                strategic fuels for domestic and military use.
            (2) Consultation and coordination.--The Office of 
        Petroleum Reserves shall work closely with the Task 
        Force and coordinate its staff support.
            (3) Annual reports.--Not later than 180 days after 
        the date of enactment of this Act and annually 
        thereafter, the Secretary shall submit to Congress a 
        report that describes the activities of the Office of 
        Petroleum Reserves carried out under this subsection.
    (j) Mineral Leasing Act Amendments.--
            (1) Section 17.--Section 17(b)(2) of the Mineral 
        Leasing Act (30 U.S.C. 226(b)(2)), as amended by 
        section 350, is further amended--
                    (A) in subparagraph (A) (as designated by 
                the amendment made by subsection (a)(1) of that 
                section) by designating the first, second, and 
                third sentences as clauses (i), (ii), and 
                (iii), respectively;
                    (B) by moving clause (ii), as so 
                designated, so as to begin immediately after 
                and below clause (i);
                    (C) by moving clause (iii), as so 
                designated, so as to begin immediately after 
                and below clause (ii);
                    (D) in clause (i) of subparagraph (A) (as 
                designated by subparagraph (A) of this 
                paragraph) by striking ``five thousand one 
                hundred and twenty'' and inserting ``5,760''; 
                and
                    (E) by adding at the end the following:
            ``(iv) No lease issued under this paragraph shall 
        be included in any chargeability limitation associated 
        with oil and gas leases.''.
            (2) Section 21.--Section 21(a) of the Mineral 
        Leasing Act (30 U.S.C. 241(a)) is amended--
                    (A) by striking ``(a) That the Secretary'' 
                and inserting the following:
    ``(a)(1) The Secretary'';
                    (B) by striking ``; that no lease'' and 
                inserting a period, followed by the following:
            ``(2) No lease'';
                    (C) by striking ``Leases may be for'' and 
                inserting the following:
            ``(3) Leases may be for'';
                    (D) by striking ``For the privilege'' and 
                inserting the following:
            ``(4) For the privilege'';
                    (E) in paragraph (2) (as designated by 
                subparagraph (B) of this paragraph) by striking 
                ``five thousand one hundred and twenty'' and 
                inserting ``5,760'';
                    (F) in paragraph (4) (as designated by 
                subparagraph (D) of this paragraph) by striking 
                ``rate of 50 cents per acre'' and inserting 
                ``rate of $2.00 per acre'';
                    (G)(i) by striking ``: Provided further, 
                That not more than one lease shall be granted 
                under this section to any'' and inserting ``: 
                Provided further, That no''; and
                    (ii) by striking ``except that with respect 
                to leases for'' and inserting ``shall acquire 
                or hold more than 50,000 acres of oil shale 
                leases in any one State. For''; and
                    (H) by adding at the end the following:
            ``(5) No lease issued under this section shall be 
        included in any chargeability limitation associated 
        with oil and gas leases.''.
    (k) Interagency Coordination and Expeditious Review of 
Permitting Process.--
            (1) Department of the interior as lead agency.--
        Upon written request of a prospective applicant for 
        Federal authorization to develop a proposed oil shale 
        or tar sands project, the Department of the Interior 
        shall act as the lead Federal agency for the purposes 
        of coordinating all applicable Federal authorizations 
        and environmental reviews. To the maximum extent 
        practicable under applicable Federal law, the Secretary 
        shall coordinate this Federal authorization and review 
        process with any Indian tribes and State and local 
        agencies responsible for conducting any separate 
        permitting and environmental reviews.
            (2) Implementing regulations.--Not later than 6 
        months after the date of enactment of this Act, the 
        Secretary shall issue any regulations necessary to 
        implement this subsection.
    (l) Cost-shared Demonstration Technologies.--
            (1) Identification.--The Secretary of Energy shall 
        identify technologies for the development of oil shale 
        and tar sands that--
                    (A) are ready for demonstration at a 
                commercially-representative scale; and
                    (B) have a high probability of leading to 
                commercial production.
            (2) Assistance.--For each technology identified 
        under paragraph (1), the Secretary of Energy may 
        provide--
                    (A) technical assistance;
                    (B) assistance in meeting environmental and 
                regulatory requirements; and
                    (C) cost-sharing assistance.
    (m) National Oil Shale and Tar Sands Assessment.--
            (1) Assessment.--
                    (A) In general.--The Secretary shall carry 
                out a national assessment of oil shale and tar 
                sands resources for the purposes of evaluating 
                and mapping oil shale and tar sands deposits, 
                in the geographic areas described in 
                subparagraph (B). In conducting such an 
                assessment, the Secretary shall make use of the 
                extensive geological assessment work for oil 
                shale and tar sands already conducted by the 
                United States Geological Survey.
                    (B) Geographic areas.--The geographic areas 
                referred to in subparagraph (A), listed in the 
                order in which the Secretary shall assign 
                priority, are--
                            (i) the Green River Region of the 
                        States of Colorado, Utah, and Wyoming;
                            (ii) the Devonian oil shales and 
                        other hydrocarbon-bearing rocks having 
                        the nomenclature of ``shale'' located 
                        east of the Mississippi River; and
                            (iii) any remaining area in the 
                        central and western United States 
                        (including the State of Alaska) that 
                        contains oil shale and tar sands, as 
                        determined by the Secretary.
            (2) Use of state surveys and universities.--In 
        carrying out the assessment under paragraph (1), the 
        Secretary may request assistance from any State-
        administered geological survey or university.
    (n) Land Exchanges.--
            (1) In general.--To facilitate the recovery of oil 
        shale and tar sands, especially in areas where Federal, 
        State, and private lands are intermingled, the 
        Secretary shall consider the use of land exchanges 
        where appropriate and feasible to consolidate land 
        ownership and mineral interests into manageable areas.
            (2) Identification and priority of public lands.--
        The Secretary shall identify public lands containing 
        deposits of oil shale or tar sands within the Green 
        River, Piceance Creek, Uintah, and Washakie geologic 
        basins, and shall give priority to implementing land 
        exchanges within those basins. The Secretary shall 
        consider the geology of the respective basin in 
        determining the optimum size of the lands to be 
        consolidated.
            (3) Compliance with section 206 of flpma.--A land 
        exchange undertaken in furtherance of this subsection 
        shall be implemented in accordance with section 206 of 
        the Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1716).
    (o) Royalty Rates for Leases.--The Secretary shall 
establish royalties, fees, rentals, bonus, or other payments 
for leases under this section that shall--
            (1) encourage development of the oil shale and tar 
        sands resource; and
            (2) ensure a fair return to the United States.
    (p) Heavy Oil Technical and Economic Assessment.--The 
Secretary of Energy shall update the 1987 technical and 
economic assessment of domestic heavy oil resources that was 
prepared by the Interstate Oil and Gas Compact Commission. Such 
an update should include all of North America and cover all 
unconventional oil, including heavy oil, tar sands (oil sands), 
and oil shale.
    (q) Procurement of Unconventional Fuels by the Department 
of Defense.--
            (1) In general.--Chapter 141 of title 10, United 
        States Code, is amended by inserting after section 2398 
        the following:

``Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar 
                    sands

    ``(a) Use of Fuel to Meet Department of Defense Needs.--The 
Secretary of Defense shall develop a strategy to use fuel 
produced, in whole or in part, from coal, oil shale, and tar 
sands (referred to in this section as a `covered fuel') that 
are extracted by either mining or in-situ methods and refined 
or otherwise processed in the United States in order to assist 
in meeting the fuel requirements of the Department of Defense 
when the Secretary determines that it is in the national 
interest.
    ``(b) Authority To Procure.--The Secretary of Defense may 
enter into 1 or more contracts or other agreements (that meet 
the requirements of this section) to procure a covered fuel to 
meet 1 or more fuel requirements of the Department of Defense.
    ``(c) Clean Fuel Requirements.--A covered fuel may be 
procured under subsection (b) only if the covered fuel meets 
such standards for clean fuel produced from domestic sources as 
the Secretary of Defense shall establish for purposes of this 
section in consultation with the Department of Energy.
    ``(d) Multiyear Contract Authority.--Subject to applicable 
provisions of law, any contract or other agreement for the 
procurement of covered fuel under subsection (b) may be for 1 
or more years at the election of the Secretary of Defense.
    ``(e) Fuel Source Analysis.--In order to facilitate the 
procurement by the Department of Defense of covered fuel under 
subsection (b), the Secretary of Defense may carry out a 
comprehensive assessment of current and potential locations in 
the United States for the supply of covered fuel to the 
Department.''.
            (2) Clerical amendment.--The table of sections for 
        chapter 141 of title 10, United States Code, is amended 
        by inserting after the item relating to section 2398 
        the following:

``2398a. Procurement of fuel derived from coal, oil shale, and tar 
          sands''.
    (r) State Water Rights.--Nothing in this section preempts 
or affects any State water law or interstate compact relating 
to water.
    (s) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

SEC. 370. FINGER LAKES WITHDRAWAL.

    All Federal land within the boundary of Finger Lakes 
National Forest in the State of New York is withdrawn from--
            (1) all forms of entry, appropriation, or disposal 
        under the public land laws; and
            (2) disposition under all laws relating to oil and 
        gas leasing.

SEC. 371. REINSTATEMENT OF LEASES.

    (a) Leases Terminated for Certain Failure to Pay Rental.--
Notwithstanding section 31(d)(2)(B) of the Mineral Leasing Act 
(30 U.S.C. 188(d)(2)(B)) as in effect before the effective date 
of this section, and notwithstanding the amendment made by 
subsection (b) of thissection, the Secretary of the Interior 
may reinstate any oil and gas lease issued under that Act that was 
terminated for failure of a lessee to pay the full amount of rental on 
or before the anniversary date of the lease, during the period 
beginning on September 1, 2001, and ending on June 30, 2004, if--
            (1) not later than 120 days after the date of 
        enactment of this Act, the lessee--
                    (A) files a petition for reinstatement of 
                the lease;
                    (B) complies with the conditions of section 
                31(e) of the Mineral Leasing Act (30 U.S.C. 
                188(e)); and
                    (C) certifies that the lessee did not 
                receive a notice of termination by the date 
                that was 13 months before the date of 
                termination; and
            (2) the land is available for leasing.
    (b) Deadline for Petitions, Generally.--Section 31(d)(2) of 
the Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by 
striking subparagraphs (A) and (B) and inserting the following:
                    ``(A) with respect to any lease that 
                terminated under subsection (b) on or before 
                the date of the enactment of the Energy Policy 
                Act of 2005, a petition for reinstatement 
                (together with the required back rental and 
                royalty accruing after the date of termination) 
                is filed on or before the earlier of--
                            ``(i) 60 days after the lessee 
                        receives from the Secretary notice of 
                        termination, whether by return of check 
                        or by any other form of actual notice; 
                        or
                            ``(ii) 15 months after the 
                        termination of the lease; or
                    ``(B) with respect to any lease that 
                terminates under subsection (b) after the date 
                of the enactment of the Energy Policy Act of 
                2005, a petition for reinstatement (together 
                with the required back rental and royalty 
                accruing after the date of termination) is 
                filed on or before the earlier of--
                            ``(i) 60 days after receipt of the 
                        notice of termination sent by the 
                        Secretary by certified mail to all 
                        lessees of record; or
                            ``(ii) 24 months after the 
                        termination of the lease.''.

SEC. 372. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON PUBLIC LAND.

    (a) Memorandum of Understanding.--
            (1) In general.--Not later than 6 months after the 
        date of enactment of this Act, the Secretary of Energy, 
        in consultation with the Secretary of the Interior, the 
        Secretary of Agriculture, and the Secretary of Defense 
        with respect to lands under their respective 
        jurisdictions, shall enter into a memorandum of 
        understanding to coordinate all applicable Federal 
        authorizations and environmental reviews relating to a 
        proposed or existing utility facility. To the maximum 
        extent practicable under applicable law, the Secretary 
        of Energy shall, to ensure timely review and permit 
        decisions, coordinate such authorizations and reviews 
        with any Indian tribes, multi-State entities, and State 
        agencies that are responsible for conducting any 
        separate permitting and environmental reviews of the 
        affected utility facility.
            (2) Contents.--The memorandum of understanding 
        shall include provisions that--
                    (A) establish--
                            (i) a unified right-of-way 
                        application form; and
                            (ii) an administrative procedure 
                        for processing right-of-way 
                        applications, including lines of 
                        authority, steps in application 
                        processing, and timeframes for 
                        application processing;
                    (B) provide for coordination of planning 
                relating to the granting of the rights-of-way;
                    (C) provide for an agreement among the 
                affected Federal agencies to prepare a single 
                environmental review document to be used as the 
                basis for all Federal authorization decisions; 
                and
                    (D) provide for coordination of use of 
                right-of-way stipulations to achieve 
                consistency.
    (b) Natural Gas Pipelines.--
            (1) In general.--With respect to permitting 
        activities for interstate natural gas pipelines, the 
        May 2002 document entitled ``Interagency Agreement On 
        Early Coordination Of Required Environmental And 
        Historic Preservation Reviews Conducted In Conjunction 
        With The Issuance Of Authorizations To Construct And 
        Operate Interstate Natural Gas Pipelines Certificated 
        By The Federal Energy Regulatory Commission'' shall 
        constitute compliance with subsection (a).
            (2) Report.--
                    (A) In general.--Not later than 1 year 
                after the date of enactment of this Act, and 
                every 2 years thereafter, agencies that are 
                signatories to the document referred to in 
                paragraph (1) shall transmit to Congress a 
                report on how the agencies under the 
                jurisdiction of the Secretaries are 
                incorporating and implementing the provisions 
                of the document referred to in paragraph (1).
                    (B) Contents.--The report shall address--
                            (i) efforts to implement the 
                        provisions of the document referred to 
                        in paragraph (1);
                            (ii) whether the efforts have had a 
                        streamlining effect;
                            (iii) further improvements to the 
                        permitting process of the agency; and
                            (iv) recommendations for inclusion 
                        of State and tribal governments in a 
                        coordinated permitting process.
    (c) Definition of Utility Facility.--In this section, the 
term ``utility facility'' means any privately, publicly, or 
cooperatively owned line, facility, or system--
            (1) for the transportation of--
                    (A) oil, natural gas, synthetic liquid 
                fuel, or gaseous fuel;
                    (B) any refined product produced from oil, 
                natural gas, synthetic liquid fuel, or gaseous 
                fuel; or
                    (C) products in support of the production 
                of material referred to in subparagraph (A) or 
                (B);
            (2) for storage and terminal facilities in 
        connection with the production of material referred to 
        in paragraph (1); or
            (3) for the generation, transmission, and 
        distribution of electric energy.

SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER 
                    PADRE ISLAND NATIONAL SEASHORE.

    (a) Findings.--Congress finds the following:
            (1) Pursuant to Public Law 87-712 (16 U.S.C. 459d 
        et seq.; popularly known as the ``Federal Enabling 
        Act'') and various deeds and actions under that Act, 
        the United States is the owner of only the surface 
        estate of certain lands constituting the Padre Island 
        National Seashore.
            (2) Ownership of the oil, gas, and other minerals 
        in the subsurface estate of the lands constituting the 
        Padre Island National Seashore was never acquired by 
        the United States, and ownership of those interests is 
        held by the State of Texas and private parties.
            (3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
                    (A) expressly contemplated that the United 
                States would recognize the ownership and future 
                development of the oil, gas, and other minerals 
                in the subsurface estate of the lands 
                constituting the Padre Island National Seashore 
                by the owners and their mineral lessees; and
                    (B) recognized that approval of the State 
                of Texas was required to create Padre Island 
                National Seashore.
            (4) Approval was given for the creation of Padre 
        Island National Seashore by the State of Texas through 
        Tex. Rev. Civ. Stat. Ann. Art. 6077(t) (Vernon 1970), 
        which expressly recognized that development of the oil, 
        gas, and other minerals in the subsurface of the lands 
        constituting Padre Island National Seashore would be 
        conducted with full rights of ingress and egress under 
        the laws of the State of Texas.
    (b) Sense of Congress.--It is the sense of Congress that 
with regard to Federal law, any regulation of the development 
of oil, gas, or other minerals in the subsurface of the lands 
constituting Padre Island National Seashore should be made as 
if those lands retained the status that the lands had on 
September 27, 1962.

SEC. 374. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

    Section 102 of Public Law 102-562 (106 Stat. 4234) is 
amended by striking subsection (b) and inserting the following:
    ``(b) Reservation of Oil and Gas Rights and Conveyance of 
Remaining Mineral Rights.--Subject to the limitations set forth 
in subsection (c), the United States hereby excepts and 
reserves from the provisions of subsection (a), all rights to 
oil and gas underlying suchlands, along with the right to 
explore for, and produce the oil and gas under applicable law and such 
regulations as the Secretary of the Interior may prescribe. Not later 
than 180 days after the date of enactment of the Energy Policy Act of 
2005, the Secretary of the Interior shall convey the remaining mineral 
rights to the parties who as of the date of enactment of the Energy 
Policy Act of 2005 would be recognized as holders of a right, title, or 
interest to any portion of such minerals under the laws of the State of 
Louisiana, but for the interest of the United States in such minerals.
    ``(c) Oil and Gas Resource Assessment and Report.--The 
United States Geological Survey shall conduct a resource 
assessment and publish a report of the findings of such 
resource assessment (`USGS Assessment and Report') within one 
year of the date of enactment of the Energy Policy Act of 2005. 
The USGS Assessment and Report shall provide an assessment of 
all oil and gas resources underlying the certain lands in 
Livingston Parish, Louisiana, as described in section 103 (the 
`Livingston Parish lands'). Upon a finding by the Secretary of 
the Interior based upon the USGS Assessment and Report that it 
is unlikely that economically recoverable oil and gas resources 
are present, the Secretary shall convey all rights to oil and 
gas underlying such lands to the recipients, or their 
successors, heirs, or assigns, of the conveyances under 
subsection (b). Such further conveyances shall be made within 
180 days after a finding by the Secretary that it is unlikely 
that economically recoverable oil and gas resources are 
present.''.

                       Subtitle G--Miscellaneous

SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION 
                    UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.

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

                       ``APPEALS TO THE SECRETARY

    ``Sec. 319. (a) Notice.--Not later than 30 days after the 
date of the filing of an appeal to the Secretary of a 
consistency determination under section 307, the Secretary 
shall publish an initial notice in the Federal Register.
    ``(b) Closure of Record.--
            ``(1) In general.--Not later than the end of the 
        160-day period beginning on the date of publication of 
        an initial notice under subsection (a), except as 
        provided in paragraph (3), the Secretary shall 
        immediately close the decision record and receive no 
        more filings on the appeal.
            ``(2) Notice.--After closing the administrative 
        record, the Secretary shall immediately publish a 
        notice in the Federal Register that the administrative 
        record has been closed.
            ``(3) Exception.--
                    ``(A) In general.--Subject to subparagraph 
                (B), during the 160-day period described in 
                paragraph (1), the Secretary may stay the 
                closing of the decision record--
                            ``(i) for a specific period 
                        mutually agreed to in writing by the 
                        appellant and the State agency; or
                            ``(ii) as the Secretary determines 
                        necessary to receive, on an expedited 
                        basis--
                                    ``(I) any supplemental 
                                information specifically 
                                requested by the Secretary to 
                                complete a consistency review 
                                under this Act; or
                                    ``(II) any clarifying 
                                information submitted by a 
                                party to the proceeding related 
                                to information in the 
                                consolidated record compiled by 
                                the lead Federal permitting 
                                agency.
                    ``(B) Applicability.--The Secretary may 
                only stay the 160-day period described in 
                paragraph (1) for a period not to exceed 60 
                days.
    ``(c) Deadline for Decision.--
            ``(1) In general.--Not later than 60 days after the 
        date of publication of a Federal Register notice 
        stating when the decision record for an appeal has been 
        closed, the Secretary shall issue a decision or publish 
        a notice in the Federal Register explaining why a 
        decision cannot be issued at that time.
            ``(2) Subsequent decision.--Not later than 15 days 
        after the date of publication of a Federal Register 
        notice explaining why a decision cannot be issued 
        within the 60-day period, the Secretary shall issue a 
        decision.''.

SEC. 382. APPEALS RELATING TO OFFSHORE MINERAL DEVELOPMENT.

    For any Federal administrative agency proceeding that is an 
appeal or review under section 319 of the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1465), as amended by this 
Act, related to any Federal authorization for the permitting, 
approval, or other authorization of an energy project, the lead 
Federal permitting agency for the project shall, with the 
cooperation of Federal and State administrative agencies, 
maintain a consolidated record of all decisions made or actions 
taken by the lead agency or by another Federal or State 
administrative agency or officer. Such record shall be the 
initial record for appeals or reviews under that Act, provided 
that the record may be supplemented as expressly provided 
pursuant to section 319 of that Act.

SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER CONTINENTAL 
                    SHELF LANDS ACT.

    (a) Royalty Relief.--
            (1) In general.--For purposes of providing 
        compensation for lessees and a State for which amounts 
        are authorized by section 6004(c) of the Oil Pollution 
        Act of 1990 (Public Law 101-380), a lessee may withhold 
        from payment any royalty due and owing to the United 
        States under any leases under the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1301 et seq.) for offshore 
        oil or gas production from a covered lease tract if, on 
        or before the date that the payment is due and payable 
        to the United States, the lessee makes a payment to the 
        State of 44 cents for every $1 of royalty withheld.
            (2) Treatment of amounts.--Any royalty withheld by 
        a lessee in accordance with this section (including any 
        portion thereof that is paid to the State under 
        paragraph (1)) shall be treated as paid for purposes of 
        satisfaction of the royalty obligations of the lessee 
        to the United States.
            (3) Certification of withheld amounts.--The 
        Secretary of the Treasury shall--
                    (A) determine the amount of royalty 
                withheld by a lessee under this section; and
                    (B) promptly publish a certification when 
                the total amount of royalty withheld by the 
                lessee under this section is equal to--
                            (i) the dollar amount stated at 
                        page 47 of Senate Report number 101-
                        534, which is designated therein as the 
                        total drainage claim for the West Delta 
                        field; plus
                            (ii) interest as described at page 
                        47 of that Report.
    (b) Period of Royalty Relief.--Subsection (a) shall apply 
to royalty amounts that are due and payable in the period 
beginning on October 1, 2006, and ending on the date on which 
the Secretary of the Treasury publishes a certification under 
subsection (a)(3)(B).
    (c) Definitions.--As used in this section:
            (1) Covered lease tract.--The term ``covered lease 
        tract'' means a leased tract (or portion of a leased 
        tract)--
                    (A) lying seaward of the zone defined and 
                governed by section 8(g) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 
                1337(g)); or
                    (B) lying within such zone but to which 
                such section does not apply.
            (2) Lessee.--The term ``lessee''--
                    (A) means a person or entity that, on the 
                date of the enactment of the Oil Pollution Act 
                of 1990, was a lessee referred to in section 
                6004(c) of that Act (as in effect on that date 
                of the enactment), but did not hold lease 
                rights in Federal offshore lease OCS-G-5669; 
                and
                    (B) includes successors and affiliates of a 
                person or entity described in subparagraph (A).

SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.

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

``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Coastal political subdivision.--The term 
        `coastal political subdivision' means a political 
        subdivision of a coastal State any part of which 
        political subdivision is--
                    ``(A) within the coastal zone (as defined 
                in section 304 of the Coastal Zone Management 
                Act of 1972 (16 U.S.C. 1453)) of the coastal 
                State as of the date of enactment of the Energy 
                Policy Act of 2005; and
                    ``(B) not more than 200 nautical miles from 
                the geographic center of any leased tract.
            ``(2) Coastal population.--The term `coastal 
        population' means the population, as determined by the 
        most recent official data of the Census Bureau, of each 
        political subdivision any part of which lies within the 
        designated coastal boundary of a State (as defined in a 
        State's coastal zone management program under the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
        seq.)).
            ``(3) Coastal state.--The term `coastal State' has 
        the meaning given the term in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            ``(4) Coastline.--The term `coastline' has the 
        meaning given the term `coast line' in section 2 of the 
        Submerged Lands Act (43 U.S.C. 1301).
            ``(5) Distance.--The term `distance' means the 
        minimum great circle distance, measured in statute 
        miles.
            ``(6) Leased tract.--The term `leased tract' means 
        a tract that is subject to a lease under section 6 or 8 
        for the purpose of drilling for, developing, and 
        producing oil or natural gas resources.
            ``(7) Leasing moratoria.--The term `leasing 
        moratoria' means the prohibitions on preleasing, 
        leasing, and related activities on any geographic area 
        of the outer Continental Shelf as contained in sections 
        107 through 109 of division E of the Consolidated 
        Appropriations Act, 2005 (Public Law 108-447; 118 Stat. 
        3063).
            ``(8) Political subdivision.--The term `political 
        subdivision' means the local political jurisdiction 
        immediately below the level of State government, 
        including counties, parishes, and boroughs.
            ``(9) Producing state.--
                    ``(A) In general.--The term `producing 
                State' means a coastal State that has a coastal 
                seaward boundary within 200 nautical miles of 
                the geographic center of a leased tract within 
                any area of the outer Continental Shelf.
                    ``(B) Exclusion.--The term `producing 
                State' does not include a producing State, a 
                majority of the coastline of which is subject 
                to leasing moratoria, unless production was 
                occurring on January 1, 2005, from a lease 
                within 10 nautical miles of the coastline of 
                that State.
            ``(10) Qualified outer continental shelf 
        revenues.--
                    ``(A) In general.--The term `qualified 
                Outer Continental Shelf revenues' means all 
                amounts received by the United States from each 
                leased tract or portion of a leased tract--
                            ``(i) lying--
                                    ``(I) seaward of the zone 
                                covered by section 8(g); or
                                    ``(II) within that zone, 
                                but to which section 8(g) does 
                                not apply; and
                            ``(ii) the geographic center of 
                        which lies within a distance of 200 
                        nautical miles from any part of the 
                        coastline of any coastal State.
                    ``(B) Inclusions.--The term `qualified 
                Outer Continental Shelf revenues' includes 
                bonus bids, rents, royalties (including 
                payments for royalty taken in kind and sold), 
                net profit share payments, and related late-
                payment interest from natural gas and oil 
                leases issued under this Act.
                    ``(C) Exclusion.--The term `qualified Outer 
                Continental Shelf revenues' does not include 
                any revenues from a leased tract or portion of 
                a leased tract that is located in a geographic 
                area subject to a leasing moratorium on January 
                1, 2005, unless the lease was in production on 
                January 1, 2005.
    ``(b) Payments to Producing States and Coastal Political 
Subdivisions.--
            ``(1) In general.--The Secretary shall, without 
        further appropriation, disburse to producing States and 
        coastal political subdivisions in accordance with this 
        section $250,000,000 for each of fiscal years 2007 
        through 2010.
            ``(2) Disbursement.--In each fiscal year, the 
        Secretary shall disburse to each producing State for 
        which the Secretary has approved a plan under 
        subsection (c), and to coastal political subdivisions 
        under paragraph (4), such funds as are allocated to the 
        producing State or coastal political subdivision, 
        respectively, under this section for the fiscal year.
            ``(3) Allocation among producing states.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C) and subject to subparagraph 
                (D), the amounts available under paragraph (1) 
                shall be allocated to each producing State 
                based on the ratio that--
                            ``(i) the amount of qualified outer 
                        Continental Shelf revenues generated 
                        off the coastline of the producing 
                        State; bears to
                            ``(ii) the amount of qualified 
                        outer Continental Shelf revenues 
                        generated off the coastline of all 
                        producing States.
                    ``(B) Amount of outer continental shelf 
                revenues.--For purposes of subparagraph (A)--
                            ``(i) the amount of qualified outer 
                        Continental Shelf revenues for each of 
                        fiscal years 2007 and 2008 shall be 
                        determined using qualified outer 
                        Continental Shelf revenues received for 
                        fiscal year 2006; and
                            ``(ii) the amount of qualified 
                        outer Continental Shelf revenues for 
                        each of fiscal years 2009 and 2010 
                        shall be determined using qualified 
                        outer Continental Shelf revenues 
                        received for fiscal year 2008.
                    ``(C) Multiple producing states.--In a case 
                in which more than 1 producing State is located 
                within 200 nautical miles of any portion of a 
                leased tract, the amount allocated to each 
                producing State for the leased tract shall be 
                inversely proportional to the distance 
                between--
                            ``(i) the nearest point on the 
                        coastline of the producing State; and
                            ``(ii) the geographic center of the 
                        leased tract.
                    ``(D) Minimum allocation.--The amount 
                allocated to a producing State under 
                subparagraph (A) shall be at least 1 percent of 
                the amounts available under paragraph (1).
            ``(4) Payments to coastal political subdivisions.--
                    ``(A) In general.--The Secretary shall pay 
                35 percent of the allocable share of each 
                producing State, as determined under paragraph 
                (3) to the coastal political subdivisions in 
                the producing State.
                    ``(B) Formula.--Of the amount paid by the 
                Secretary to coastal political subdivisions 
                under subparagraph (A)--
                            ``(i) 25 percent shall be allocated 
                        to each coastal political subdivision 
                        in the proportion that--
                                    ``(I) the coastal 
                                population of the coastal 
                                political subdivision; bears to
                                    ``(II) the coastal 
                                population of all coastal 
                                political subdivisions in the 
                                producing State;
                            ``(ii) 25 percent shall be 
                        allocated to each coastal political 
                        subdivision in the proportion that--
                                    ``(I) the number of miles 
                                of coastline of the coastal 
                                political subdivision; bears to
                                    ``(II) the number of miles 
                                of coastline of all coastal 
                                political subdivisions in the 
                                producing State; and
                            ``(iii) 50 percent shall be 
                        allocated in amounts that are inversely 
                        proportional to the respective 
                        distances between the points in each 
                        coastal political subdivision that are 
                        closest to the geographic center of 
                        each leased tract, as determined by the 
                        Secretary.
                    ``(C) Exception for the state of 
                louisiana.--For the purposes of subparagraph 
                (B)(ii), the coastline for coastal political 
                subdivisions in the State of Louisiana without 
                a coastline shall be considered to be \1/3\ the 
                average length of the coastline of all coastal 
                political subdivisions with a coastline in the 
                State of Louisiana.
                    ``(D) Exception for the state of alaska.--
                For the purposes of carrying out subparagraph 
                (B)(iii) in the State of Alaska, the amounts 
                allocated shall be divided equally among the 2 
                coastal political subdivisions that are closest 
                to the geographic center of a leased tract.
                    ``(E) Exclusion of certain leased tracts.--
                For purposes of subparagraph (B)(iii), a leased 
                tract or portion of a leased tract shall be 
                excluded if the tract or portion of a leased 
                tract is located in a geographic area subject 
                to a leasing moratorium on January 1, 2005, 
                unless the lease was in production on that 
                date.
            ``(5) No approved plan.--
                    ``(A) In general.--Subject to subparagraph 
                (B) and except as provided in subparagraph (C), 
                in a case in which any amount allocated to a 
                producing State or coastal political 
                subdivision under paragraph (4) or (5) is not 
                disbursed because the producing State does not 
                have in effect a plan that has been approved by 
                the Secretary under subsection (c), the 
                Secretary shall allocate the undisbursed amount 
                equally among all other producing States.
                    ``(B) Retention of allocation.--The 
                Secretary shall hold in escrow an undisbursed 
                amount described in subparagraph (A) until such 
                date as the final appeal regarding the 
                disapproval of a plan submitted under 
                subsection (c) is decided.
                    ``(C) Waiver.--The Secretary may waive 
                subparagraph (A) with respect to an allocated 
                share of a producing State and hold the 
                allocable share in escrow if the Secretary 
                determines that the producing State is making a 
                good faith effort to develop and submit, or 
                update, a plan in accordance with subsection 
                (c).
    ``(c) Coastal Impact Assistance Plan.--
            ``(1) Submission of state plans.--
                    ``(A) In general.--Not later than July 1, 
                2008, the Governor of a producing State shall 
                submit to the Secretary a coastal impact 
                assistance plan.
                    ``(B) Public participation.--In carrying 
                out subparagraph (A), the Governor shall 
                solicit local input and provide for public 
                participation in the development of the plan.
            ``(2) Approval.--
                    ``(A) In general.--The Secretary shall 
                approve a plan of a producing State submitted 
                under paragraph (1) before disbursing any 
                amount to the producing State, or to a coastal 
                political subdivision located in the producing 
                State, under this section.
                    ``(B) Components.--The Secretary shall 
                approve a plan submitted under paragraph (1) 
                if--
                            ``(i) the Secretary determines that 
                        the plan is consistent with the uses 
                        described in subsection (d); and
                            ``(ii) the plan contains--
                                    ``(I) the name of the State 
                                agency that will have the 
                                authority to represent and act 
                                on behalf of the producing 
                                State in dealing with the 
                                Secretary for purposes of this 
                                section;
                                    ``(II) a program for the 
                                implementation of the plan that 
                                describes how the amounts 
                                provided under this section to 
                                the producing State will be 
                                used;
                                    ``(III) for each coastal 
                                political subdivision that 
                                receives an amount under this 
                                section--
                                            ``(aa) the name of 
                                        a contact person; and
                                            ``(bb) a 
                                        description of how the 
                                        coastal political 
                                        subdivision will use 
                                        amounts provided under 
                                        this section;
                                    ``(IV) a certification by 
                                the Governor that ample 
                                opportunity has been provided 
                                for public participation in the 
                                development and revision of the 
                                plan; and
                                    ``(V) a description of 
                                measures that will be taken to 
                                determine the availability of 
                                assistance from other relevant 
                                Federal resources and programs.
            ``(3) Amendment.--Any amendment to a plan submitted 
        under paragraph (1) shall be--
                    ``(A) developed in accordance with this 
                subsection; and
                    ``(B) submitted to the Secretary for 
                approval or disapproval under paragraph (4).
            ``(4) Procedure.--Not later than 90 days after the 
        date on which a plan or amendment to a plan is 
        submitted under paragraph (1) or (3), the Secretary 
        shall approve or disapprove the plan or amendment.
    ``(d) Authorized Uses.--
            ``(1) In general.--A producing State or coastal 
        political subdivision shall use all amounts received 
        under this section, including any amount deposited in a 
        trust fund that is administered by the State or coastal 
        political subdivision and dedicated to uses consistent 
        with this section, in accordance with all applicable 
        Federal and State law, only for 1 or more of the 
        following purposes:
                    ``(A) Projects and activities for the 
                conservation, protection, or restoration of 
                coastal areas, including wetland.
                    ``(B) Mitigation of damage to fish, 
                wildlife, or natural resources.
                    ``(C) Planning assistance and the 
                administrative costs of complying with this 
                section.
                    ``(D) Implementation of a federally-
                approved marine, coastal, or comprehensive 
                conservation management plan.
                    ``(E) Mitigation of the impact of outer 
                Continental Shelf activities through funding of 
                onshore infrastructure projects and public 
                service needs.
            ``(2) Compliance with authorized uses.--If the 
        Secretary determines that any expenditure made by a 
        producing State or coastal political subdivision is not 
        consistent with this subsection, the Secretary shall 
        not disburse any additional amount under this section 
        to the producing State or the coastal political 
        subdivision until such time as all amounts obligated 
        for unauthorized uses have been repaid or reobligated 
        for authorized uses.
            ``(3) Limitation.--Not more than 23 percent of 
        amounts received by a producing State or coastal 
        political subdivision for any 1 fiscal year shall be 
        used for the purposes described subparagraphs (C) and 
        (E) of paragraph (1).''.

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which 
the National Academy of Sciences shall conduct a study of the 
short-term and long-term availability of skilled workers to 
meet the energy and mineral security requirements of the United 
States.
    (b) Inclusions.--The study shall include an analysis of--
            (1) the need for and availability of workers for 
        the oil, gas, and mineral industries;
            (2) the availability of skilled labor at both entry 
        level and more senior levels; and
            (3) recommendations for future actions needed to 
        meet future labor requirements.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that describes the results of the study.

SEC. 386. GREAT LAKES OIL AND GAS DRILLING BAN.

    No Federal or State permit or lease shall be issued for new 
oil and gas slant, directional, or offshore drilling in or 
under one or more of the Great Lakes.

SEC. 387. FEDERAL COALBED METHANE REGULATION.

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

SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337) is amended by adding at the end the following:
    ``(p) Leases, Easements, or Rights-of-way for Energy and 
Related Purposes.--
            ``(1) In general.--The Secretary, in consultation 
        with the Secretary of the Department in which the Coast 
        Guard is operating and other relevant departments and 
        agencies of the Federal Government, may grant a lease, 
        easement, or right-of-way on the outer Continental 
        Shelf for activities not otherwise authorized in this 
        Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
        seq.), the Ocean Thermal Energy Conversion Act of 1980 
        (42 U.S.C. 9101 et seq.), or other applicable law, if 
        those activities--
                    ``(A) support exploration, development, 
                production, or storage of oil or natural gas, 
                except that a lease, easement, or right-of-way 
                shall not be granted in an area in which oil 
                and gas preleasing, leasing, and related 
                activities are prohibited by a moratorium;
                    ``(B) support transportation of oil or 
                natural gas, excluding shipping activities;
                    ``(C) produce or support production, 
                transportation, or transmission of energy from 
                sources other than oil and gas; or
                    ``(D) use, for energy-related purposes or 
                for other authorized marine-related purposes, 
                facilities currently or previously used for 
                activities authorized under this Act, except 
                that any oil and gas energy-related uses shall 
                not be authorized in areas in which oil and gas 
                preleasing, leasing, and related activities are 
                prohibited by a moratorium.
            ``(2) Payments and revenues.--(A) The Secretary 
        shall establish royalties, fees, rentals, bonuses, or 
        other payments to ensure a fair return to the United 
        States for any lease, easement, or right-of-way granted 
        under this subsection.
            ``(B) The Secretary shall provide for the payment 
        of 27 percent of the revenues received by the Federal 
        Government as a result of payments under this section 
        from projects that are located wholly or partially 
        within the area extending three nautical miles seaward 
        of State submerged lands. Payments shall be made based 
        on a formula established by the Secretary by rulemaking 
        no later than 180 days after the date of enactment of 
        this section that provides for equitable distribution, 
        based on proximity to the project, among coastal states 
        that have a coastline that is located within 15 miles 
        of the geographic center of the project.
            ``(3) Competitive or noncompetitive basis.--Except 
        with respect to projects that meet the criteria 
        established under section 388(d) of the Energy Policy 
        Act of 2005, the Secretary shall issue a lease, 
        easement, or right-of-way under paragraph (1) on a 
        competitive basis unless the Secretary determines after 
        public notice of a proposed lease, easement, or right-
        of-way that there is no competitive interest.
            ``(4) Requirements.--The Secretary shall ensure 
        that any activity under this subsection is carried out 
        in a manner that provides for--
                    ``(A) safety;
                    ``(B) protection of the environment;
                    ``(C) prevention of waste;
                    ``(D) conservation of the natural resources 
                of the outer Continental Shelf;
                    ``(E) coordination with relevant Federal 
                agencies;
                    ``(F) protection of national security 
                interests of the United States;
                    ``(G) protection of correlative rights in 
                the outer Continental Shelf;
                    ``(H) a fair return to the United States 
                for any lease, easement, or right-of-way under 
                this subsection;
                    ``(I) prevention of interference with 
                reasonable uses (as determined by the 
                Secretary) of the exclusive economic zone, the 
                high seas, and the territorial seas;
                    ``(J) consideration of--
                            ``(i) the location of, and any 
                        schedule relating to, a lease, 
                        easement, or right-of-way for an area 
                        of the outer Continental Shelf; and
                            ``(ii) any other use of the sea or 
                        seabed, including use for a fishery, a 
                        sealane, a potential site of a 
                        deepwater port, or navigation;
                    ``(K) public notice and comment on any 
                proposal submitted for a lease, easement, or 
                right-of-way under this subsection; and
                    ``(L) oversight, inspection, research, 
                monitoring, and enforcement relating to a 
                lease, easement, or right-of-way under this 
                subsection.
            ``(5) Lease duration, suspension, and 
        cancellation.--The Secretary shall provide for the 
        duration, issuance, transfer, renewal, suspension, and 
        cancellation of a lease, easement, or right-of-way 
        under this subsection.
            ``(6) Security.--The Secretary shall require the 
        holder of a lease, easement, or right-of-way granted 
        under this subsection to--
                    ``(A) furnish a surety bond or other form 
                of security, as prescribed by the Secretary;
                    ``(B) comply with such other requirements 
                as the Secretary considers necessary to protect 
                the interests of the public and the United 
                States; and
                    ``(C) provide for the restoration of the 
                lease, easement, or right-of-way.
            ``(7) Coordination and consultation with affected 
        state and local governments.--The Secretary shall 
        provide for coordination and consultation with the 
        Governor of any State or the executive of any local 
        government that may be affected by a lease, easement, 
        or right-of-way under this subsection.
            ``(8) Regulations.--Not later than 270 days after 
        the date of enactment of the Energy Policy Act of 2005, 
        the Secretary, in consultation with the Secretary of 
        Defense, the Secretary of the Department in which the 
        Coast Guard is operating, the Secretary of Commerce, 
        heads of other relevant departments and agencies of the 
        Federal Government, and the Governor of any affected 
        State, shall issue any necessary regulations to carry 
        out this subsection.
            ``(9) Effect of subsection.--Nothing in this 
        subsection displaces, supersedes, limits, or modifies 
        the jurisdiction, responsibility, or authority of any 
        Federal or State agency under any other Federal law.
            ``(10) Applicability.--This subsection does not 
        apply to any area on the outer Continental Shelf within 
        the exterior boundaries of any unit of the National 
        Park System, National Wildlife Refuge System, or 
        National Marine Sanctuary System, or any National 
        Monument.''.
    (b) Coordinated OCS Mapping Initiative.--
            (1) In general.--The Secretary of the Interior, in 
        cooperation with the Secretary of Commerce, the 
        Commandant of the Coast Guard, and the Secretary of 
        Defense, shall establish an interagency comprehensive 
        digital mapping initiative for the outer Continental 
        Shelf to assist in decisionmaking relating to the 
        siting of activities under subsection (p) of section 8 
        of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337) (as added by subsection (a)).
            (2) Use of data.--The mapping initiative shall use, 
        and develop procedures for accessing, data collected 
        before the date on which the mapping initiative is 
        established, to the maximum extent practicable.
            (3) Inclusions.--Mapping carried out under the 
        mapping initiative shall include an indication of the 
        locations on the outer Continental Shelf of--
                    (A) Federally-permitted activities;
                    (B) obstructions to navigation;
                    (C) submerged cultural resources;
                    (D) undersea cables;
                    (E) offshore aquaculture projects; and
                    (F) any area designated for the purpose of 
                safety, national security, environmental 
                protection, or conservation and management of 
                living marine resources.
    (c) Conforming Amendment.--Section 8 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
striking the section heading and inserting the following: 
``Leases, Easements, and Rights-of-way on the Outer Continental 
Shelf.--''.
    (d) Savings Provision.--Nothing in the amendment made by 
subsection (a) requires the resubmittal of any document that 
was previously submitted or the reauthorization of any action 
that was previously authorized with respect to a project for 
which, before the date of enactment of this Act--
            (1) an offshore test facility has been constructed; 
        or
            (2) a request for a proposal has been issued by a 
        public authority.
    (e) State Claims to Jurisdiction Over Submerged Lands.--
Nothing in this section shall be construed to alter, limit, or 
modify any claim of any State to any jurisdiction over, or any 
right, title, or interest in, any submerged lands.

SEC. 389. OIL SPILL RECOVERY INSTITUTE.

    Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et 
seq.) is amended--
            (1) in section 5001(i), by striking ``September 30, 
        2012'' and inserting ``1 year after the date on which 
        the Secretary, in consultation with the Secretary of 
        the Interior, determines that oil and gas exploration, 
        development, and production in the State of Alaska have 
        ceased''; and
            (2) in section 5006(c), by striking ``October 1, 
        2012'' and inserting ``1 year after the date on which 
        the Secretary, in consultation with the Secretary of 
        the Interior, determines that oil and gas exploration, 
        development, and production in the State of Alaska have 
        ceased,''.

SEC. 390. NEPA REVIEW.

    (a) NEPA Review.--Action by the Secretary of the Interior 
in managing the public lands, or the Secretary of Agriculture 
in managing National Forest System Lands, with respect to any 
of the activities described in subsection (b) shall be subject 
to a rebuttable presumption that the use of a categorical 
exclusion under the National Environmental Policy Act of 1969 
(NEPA) would apply if the activity is conducted pursuant to the 
Mineral Leasing Act for the purpose of exploration or 
development of oil or gas.
    (b) Activities Described.--The activities referred to in 
subsection (a) are the following:
            (1) Individual surface disturbances of less than 
        five (5) acres so long as the total surface disturbance 
        on the lease is not greater than 150 acres and site-
        specific analysis in a document prepared pursuant to 
        NEPA has been previously completed.
            (2) Drilling an oil or gas well at a location or 
        well pad site at which drilling has occurred previously 
        within five (5) years prior to the date of spudding the 
        well.
            (3) Drilling an oil or gas well within a developed 
        field for which an approved land use plan or any 
        environmental document prepared pursuant to NEPA 
        analyzed such drilling as a reasonably foreseeable 
        activity, so long as such plan or document was approved 
        within five (5) years prior to the date of spudding the 
        well.
            (4) Placement of a pipeline in an approved right-
        of-way corridor, so long as the corridor was approved 
        within five (5) years prior to the date of placement of 
        the pipeline.
            (5) Maintenance of a minor activity, other than any 
        construction or major renovation or a building or 
        facility.

                  Subtitle H--Refinery Revitalization

SEC. 391. FINDINGS AND DEFINITIONS.

    (a) Findings.--Congress finds that--
            (1) it serves the national interest to increase 
        petroleum refining capacity for gasoline, heating oil, 
        diesel fuel, jet fuel, kerosene, and petrochemical 
        feedstocks wherever located within the United States, 
        to bring more supply to the markets for the use of the 
        American people;
            (2) United States demand for refined petroleum 
        products currently exceeds the country's petroleum 
        refining capacity to produce such products;
            (3) this excess demand has been met with increased 
        imports;
            (4) due to lack of capacity, refined petroleum 
        product imports are expected to grow from 7.9 percent 
        to 10.7 percent of total refined product by 2025;
            (5) refiners are still subject to significant 
        environmental and other regulations and face several 
        new requirements under the Clean Air Act (42 U.S.C. 
        7401 et seq.) over the next decade; and
            (6) better coordination of Federal and State 
        regulatory reviews may help facilitate siting and 
        construction of new refineries to meet the demand in 
        the United States for refined products.
    (b) Definitions.--In this subtitle:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) State.--The term ``State'' means--
                    (A) a State;
                    (B) the Commonwealth of Puerto Rico; and
                    (C) any other territory or possession of 
                the United States.

SEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.

    (a) In General.--At the request of the Governor of a State, 
the Administrator may enter into a refinery permitting 
cooperative agreement with the State, under which each party to 
the agreement identifies steps, including timelines, that it 
will take to streamline the consideration of Federal and State 
environmental permits for a new refinery.
    (b) Authority Under Agreement.--The Administrator shall be 
authorized to--
            (1) accept from a refiner a consolidated 
        application for all permits required from the 
        Environmental Protection Agency, to the extent 
        consistent with other applicable law;
            (2) enter into memoranda of agreement with other 
        Federal agencies to coordinate consideration of 
        refinery applications and permits among Federal 
        agencies; and
            (3) enter into memoranda of agreement with a State, 
        under which Federal and State review of refinery permit 
        applications will be coordinated and concurrently 
        considered, to the extent practicable.
    (c) State Assistance.--The Administrator is authorized to 
provide financial assistance to State governments to facilitate 
the hiring of additional personnel withexpertise in fields 
relevant to consideration of refinery permits.
    (d) Other Assistance.--The Administrator is authorized to 
provide technical, legal, or other assistance to State 
governments to facilitate their review of applications to build 
new refineries.

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--There are authorized to 
be appropriated to the Secretary to carry out the activities 
authorized by this subtitle $200,000,000 for each of fiscal 
years 2006 through 2014, to remain available until expended.
    (b) Report.--The Secretary shall submit to Congress the 
report required by this subsection not later than March 31, 
2007. The report shall include, with respect to subsection (a), 
a plan containing--
            (1) a detailed assessment of whether the aggregate 
        funding levels provided under subsection (a) are the 
        appropriate funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all 
        activities expected to be undertaken;
            (3) a detailed list of technical milestones for 
        each coal and related technology that will be pursued; 
        and
            (4) a detailed description of how the program will 
        avoid problems enumerated in Government Accountability 
        Office reports on the Clean Coal Technology Program, 
        including problems that have resulted in unspent funds 
        and projects that failed either financially or 
        scientifically.

SEC. 402. PROJECT CRITERIA.

    (a) In General.--To be eligible to receive assistance under 
this subtitle, a project shall advance efficiency, 
environmental performance, and cost competitiveness well beyond 
the level of technologies that are in commercial service or 
have been demonstrated on a scale that the Secretary determines 
is sufficient to demonstrate that commercial service is viable 
as of the date of enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification projects.--
                    (A) In general.--In allocating the funds 
                made available under section 401(a), the 
                Secretary shall ensure that at least 70 percent 
                of the funds are used only to fund projects on 
                coal-based gasification technologies, 
                including--
                            (i) gasification combined cycle;
                            (ii) gasification fuel cells and 
                        turbine combined cycle;
                            (iii) gasification coproduction;
                            (iv) hybrid gasification and 
                        combustion; and
                            (v) other advanced coal based 
                        technologies capable of producing a 
                        concentrated stream of carbon dioxide.
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The 
                                Secretary shall periodically 
                                set technicalmilestones 
specifying the emission and thermal efficiency levels that coal 
gasification projects under this subtitle shall be designed, and 
reasonably expected, to achieve.
                                    (II) Prescriptive 
                                milestones.--The technical 
                                milestones shall become more 
                                prescriptive during the period 
                                of the clean coal power 
                                initiative.
                            (ii) 2020 goals.--The Secretary 
                        shall establish the periodic milestones 
                        so as to achieve by the year 2020 coal 
                        gasification projects able--
                                    (I) to remove at least 99 
                                percent of sulfur dioxide;
                                    (II) to emit not more than 
                                .05 lbs of NOx per 
                                million Btu;
                                    (III) to achieve at least 
                                95 percent reductions in 
                                mercury emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 50 percent for 
                                        coal of more than 9,000 
                                        Btu;
                                            (bb) 48 percent for 
                                        coal of 7,000 to 9,000 
                                        Btu; and
                                            (cc) 46 percent for 
                                        coal of less than 7,000 
                                        Btu.
            (2) Other projects.--
                    (A) Allocation of funds.--The Secretary 
                shall ensure that up to 30 percent of the funds 
                made available under section 401(a) are used to 
                fund projects other than those described in 
                paragraph (1).
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The 
                                Secretary shall periodically 
                                establish technical milestones 
                                specifying the emission and 
                                thermal efficiency levels that 
                                projects funded under this 
                                paragraph shall be designed, 
                                and reasonably expected, to 
                                achieve.
                                    (II) Prescriptive 
                                milestones.--The technical 
                                milestones shall become more 
                                prescriptive during the period 
                                of the clean coal power 
                                initiative.
                            (ii) 2020 goals.--The Secretary 
                        shall set the periodic milestones so as 
                        to achieve by the year 2020 projects 
                        able--
                                    (I) to remove at least 97 
                                percent of sulfur dioxide;
                                    (II) to emit no more than 
                                .08 lbs of NOx per 
                                million Btu;
                                    (III) to achieve at least 
                                90 percent reductions in 
                                mercury emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 43 percent for 
                                        coal of more than 9,000 
                                        Btu;
                                            (bb) 41 percent for 
                                        coal of 7,000 to 9,000 
                                        Btu; and
                                            (cc) 39 percent for 
                                        coal of less than 7,000 
                                        Btu.
            (3) Consultation.--Before setting the technical 
        milestones under paragraphs (1)(B) and (2)(B), the 
        Secretary shall consult with--
                    (A) the Administrator of the Environmental 
                Protection Agency; and
                    (B) interested entities, including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote 
                        coal or advanced coal technologies;
                            (iv) environmental organizations;
                            (v) organizations representing 
                        workers; and
                            (vi) organizations representing 
                        consumers.
            (4) Existing units.--In the case of projects at 
        units in existence on the date of enactment of this 
        Act, in lieu of the thermal efficiency requirements 
        described in paragraphs (1)(B)(ii)(IV) and 
        (2)(B)(ii)(IV), the milestones shall be designed to 
        achieve an overall thermal design efficiency 
        improvement, compared to the efficiency of the unit as 
        operated, of not less than--
                    (A) 7 percent for coal of more than 9,000 
                Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 
                Btu; or
                    (C) 4 percent for coal of less than 7,000 
                Btu.
            (5) Administration.--
                    (A) Elevation of site.--In evaluating 
                project proposals to achieve thermal efficiency 
                levels established under paragraphs (1)(B)(i) 
                and (2)(B)(i) and in determining progress 
                towards thermal efficiency milestones under 
                paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and 
                (4), the Secretary shall take into account and 
                make adjustments for the elevation of the site 
                at which a project is proposed to be 
                constructed.
                    (B) Applicability of milestones.--In 
                applying the thermal efficiency milestones 
                under paragraphs (1)(B)(ii)(IV), 
                (2)(B)(ii)(IV), and (4) to projects that 
                separate and capture at least 50 percent of the 
                potential emissions of carbon dioxide by a 
                facility, the energy used for separation and 
                capture of carbon dioxide shall not be counted 
                in calculating the thermal efficiency.
                    (C) Permitted uses.--In carrying out this 
                section, the Secretary may give priority to 
                projects that include, as part of the project--
                            (i) the separation or capture of 
                        carbon dioxide; or
                            (ii) the reduction of the demand 
                        for natural gas if deployed.
    (c) Financial Criteria.--The Secretary shall not provide 
financial assistance under this subtitle for a project unless 
the recipient documents to the satisfaction of the Secretary 
that--
            (1) the recipient is financially responsible;
            (2) the recipient will provide sufficient 
        information to the Secretary to enable the Secretary to 
        ensure that the funds are spent efficiently and 
        effectively; and
            (3) a market exists for the technology being 
        demonstrated or applied, as evidenced by statements of 
        interest in writing from potential purchasers of the 
        technology.
    (d) Financial Assistance.--The Secretary shall provide 
financial assistance to projects that, as determined by the 
Secretary--
            (1) meet the requirements of subsections (a), (b), 
        and (c); and
            (2) are likely--
                    (A) to achieve overall cost reductions in 
                the use of coal to generate useful forms of 
                energy or chemical feedstocks;
                    (B) to improve the competitiveness of coal 
                among various forms of energy in order to 
                maintain a diversity of fuel choices in the 
                United States to meet electricity generation 
                requirements; and
                    (C) to demonstrate methods and equipment 
                that are applicable to 25 percent of the 
                electricity generating facilities, using 
                various types of coal, that use coal as the 
                primary feedstock as of the date of enactment 
                of this Act.
    (e) Cost-Sharing.--In carrying out this subtitle, the 
Secretary shall require cost sharing in accordance with section 
988.
    (f) Scheduled Completion of Selected Projects.--
            (1) In general.--In selecting a project for 
        financial assistance under this section, the Secretary 
        shall establish a reasonable period of time during 
        which the owner or operator of the project shall 
        complete the construction or demonstration phase of the 
        project, as the Secretary determines to be appropriate.
            (2) Condition of financial assistance.--The 
        Secretary shall require as a condition of receipt of 
        any financial assistance under this subtitle that the 
        recipient of the assistance enter into an agreement 
        with the Secretary not to request an extension of the 
        time period established for the project by the 
        Secretary under paragraph (1).
            (3) Extension of time period.--
                    (A) In general.--Subject to subparagraph 
                (B), the Secretary may extend the time period 
                established under paragraph (1) if the 
                Secretary determines, in the sole discretion of 
                the Secretary, that the owner or operator of 
                the project cannot complete the construction or 
                demonstration phase of the project within the 
                time period due to circumstances beyond the 
                control of the owner or operator.
                    (B) Limitation.--The Secretary shall not 
                extend a time period under subparagraph (A) by 
                more than 4 years.
    (g) Fee Title.--The Secretary may vest fee title or other 
property interests acquired under cost-share clean coal power 
initiative agreements under this subtitle in any entity, 
including the United States.
    (h) Data Protection.--For a period not exceeding 5 years 
after completion of the operations phase of a cooperative 
agreement, the Secretary may provide appropriate protections 
(including exemptions from subchapter II of chapter 5 of title 
5, United States Code) against the dissemination of information 
that--
            (1) results from demonstration activities carried 
        out under the clean coal power initiative program; and
            (2) would be a trade secret or commercial or 
        financial information that is privileged or 
        confidential if the information had been obtained from 
        and first produced by a non-Federal party participating 
        in a clean coal power initiative project.
    (i) Applicability.--No technology, or level of emission 
reduction, solely by reason of the use of the technology, or 
the achievement of the emission reduction, by 1 or more 
facilities receiving assistance under this Act, shall be 
considered to be--
            (1) adequately demonstrated for purposes of section 
        111 of the Clean Air Act (42 U.S.C. 7411);
            (2) achievable for purposes of section 169 of that 
        Act (42 U.S.C. 7479); or
            (3) achievable in practice for purposes of section 
        171 of that Act (42 U.S.C. 7501).

SEC. 403. REPORT.

    Not later than 1 year after the date of enactment of this 
Act, and once every 2 years thereafter through 2014, the 
Secretary, in consultation with other appropriate Federal 
agencies, shall submit to Congress a report describing--
            (1) the technical milestones set forth in section 
        402 and how those milestones ensure progress toward 
        meeting the requirements of subsections (b)(1)(B) and 
        (b)(2) of section 402; and
            (2) the status of projects funded under this 
        subtitle.

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

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

                    Subtitle B--Clean Power Projects

SEC. 411. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

    (a) In General.--Subject to the availability of 
appropriations, the Secretary may provide loan guarantees for a 
project to produce energy from coal of less than 7,000 Btu/lb 
using appropriate advanced integrated gasification combined 
cycle technology, including repowering of existing facilities, 
that--
            (1) is combined with wind and other renewable 
        sources;
            (2) minimizes and offers the potential to sequester 
        carbon dioxide emissions; and
            (3) provides a ready source of hydrogen for near-
        site fuel cell demonstrations.
    (b) Requirements.--The facility--
            (1) may be built in stages;
            (2) shall have a combined output of at least 200 
        megawatts at successively more competitive rates; and
            (3) shall be located in the Upper Great Plains.
    (c) Technical Criteria.--Technical criteria described in 
section 402(b) shall apply to the facility.
    (d) Investment Tax Credits.--
            (1) In general.--The loan guarantees provided under 
        this section do not preclude the facility from 
        receiving an allocation for investment tax credits 
        under section 48A of the Internal Revenue Code of 1986.
            (2) Other funding.--Use of the investment tax 
        credit described in paragraph (1) does not prohibit the 
        use of other clean coal program funding.

SEC. 412. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY IN 
                    SERVICE.

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

SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.

    (a) In General.--Subject to the availability of 
appropriations, the Secretary shall carry out a project to 
demonstrate production of energy from coal mined in the western 
United States using integrated gasification combined cycle 
technology (referred to in this section as the ``demonstration 
project'').
    (b) Components.--The demonstration project--
            (1) may include repowering of existing facilities;
            (2) shall be designed to demonstrate the ability to 
        use coal with an energy content of not more than 9,000 
        Btu/lb.; and
            (3) shall be capable of removing and sequestering 
        carbon dioxide emissions.
    (c) All Types of Western Coals.--Notwithstanding the 
foregoing, and to the extent economically feasible, the 
demonstration project shall also be designed to demonstrate the 
ability to use a variety of types of coal (including 
subbituminous and bituminous coal with an energy content of up 
to 13,000 Btu/lb.) mined in the western United States.
    (d) Location.--The demonstration project shall be located 
in a western State at an altitude of greater than 4,000 feet 
above sea level.
    (e) Cost Sharing.--The Federal share of the cost of the 
demonstration project shall be determined in accordance with 
section 988.
    (f) Loan Guarantees.--Notwithstanding title XIV, the 
demonstration project shall not be eligible for Federal loan 
guarantees.

SEC. 414. COAL GASIFICATION.

    The Secretary is authorized to provide loan guarantees for 
a project to produce energy from a plant using integrated 
gasification combined cycle technology of at least 400 
megawatts in capacity that produces power at competitive rates 
in deregulated energy generation markets and that does not 
receive any subsidy (direct or indirect) from ratepayers.

SEC. 415. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for 
at least 5 petroleum coke gasification projects.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

    The Secretary shall use $5,000,000 from amounts 
appropriated to initiate, through the Chicago Operations 
Office, a project to demonstrate the viability of high-energy 
electron scrubbing technology on commercial-scale electrical 
generation using high-sulfur coal.

SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM ILLINOIS BASIN 
                    COAL.

    (a) In General.--The Secretary shall carry out a program to 
evaluate the commercial and technical viability of advanced 
technologies for the production of Fischer-Tropsch 
transportation fuels, and other transportation fuels, 
manufactured from Illinois basin coal, including the capital 
modification of existing facilities and the construction of 
testing facilities under subsection (b).
    (b) Facilities.--For the purpose of evaluating the 
commercial and technical viability of different processes for 
producing Fischer-Tropsch transportation fuels, and other 
transportation fuels, from Illinois basin coal, the Secretary 
shall support the use and capital modification of existing 
facilities and the construction of new facilities at--
            (1) Southern Illinois University Coal Research 
        Center;
            (2) University of Kentucky Center for Applied 
        Energy Research; and
            (3) Energy Center at Purdue University.
    (c) Gasification Products Test Center.--In conjunction with 
the activities described in subsections (a) and (b), the 
Secretary shall construct a test center to evaluate and confirm 
liquid and gas products from syngas catalysis in order that the 
system has an output of at least 500 gallons of Fischer-Tropsch 
transportation fuel per day in a 24-hour operation.
    (d) Milestones.--
            (1) Selection of processes.--Not later than 180 
        days after the date of enactment of this Act, the 
        Secretary shall select processes for evaluating the 
        commercial and technical viability of different 
        processes of producing Fischer-Tropsch transportation 
        fuels, and other transportation fuels, from Illinois 
        basin coal.
            (2) Agreements.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary shall 
        offer to enter into agreements--
                    (A) to carry out the activities described 
                in this section, at the facilities described in 
                subsection (b); and
                    (B) for the capital modifications or 
                construction of the facilities at the locations 
                described in subsection (b).
            (3) Evaluations.--Not later than 3 years after the 
        date of enactment of the Act, the Secretary shall 
        begin, at the facilities described in subsection (b), 
        evaluation of the technical and commercial viability of 
        different processes of producing Fischer-Tropsch 
        transportation fuels, and other transportation fuels, 
        from Illinois basin coal.
            (4) Construction of facilities.--
                    (A) In general.--The Secretary shall 
                construct the facilities described in 
                subsection (b) at the lowest cost practicable.
                    (B) Grants or agreements.--The Secretary 
                may make grants or enter into agreements or 
                contracts with the institutions of higher 
                education described in subsection (b).
    (e) Cost Sharing.--The cost of making grants under this 
section shall be shared in accordance with section 988.
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $85,000,000 for 
the period of fiscal years 2006 through 2010.

                 Subtitle C--Coal and Related Programs

SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.

    (a) Amendment.--The Energy Policy Act of 1992 (42 U.S.C. 
13201 et seq.) is amended by adding at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. PURPOSES.

    ``The purposes of this title are to--
            ``(1) promote national energy policy and energy 
        security, diversity, and economic competitiveness 
        benefits that result from the increased use of coal;
            ``(2) mitigate financial risks, reduce the cost of 
        clean coal generation, and increase the marketplace 
        acceptance of clean coal generation and pollution 
        control equipment and processes; and
            ``(3) facilitate the environmental performance of 
        clean coal generation.

``SEC. 3102. AUTHORIZATION OF PROGRAM.

    ``(a) In General.--The Secretary shall carry out a program 
of financial assistance to--
            ``(1) facilitate the production and generation of 
        coal-based power, through the deployment of clean coal 
        electric generating equipment and processes that, 
        compared to equipment or processes that are in 
        operation on a full scale--
                    ``(A) improve--
                            ``(i) energy efficiency; or
                            ``(ii) environmental performance 
                        consistent with relevant Federal and 
                        State clean air requirements, including 
                        those promulgated under the Clean Air 
                        Act (42 U.S.C. 7401 et seq.); and
                    ``(B) are not yet cost competitive; and
            ``(2) facilitate the utilization of existing coal-
        based electricity generation plants through projects 
        that--
                    ``(A) deploy advanced air pollution control 
                equipment and processes; and
                    ``(B) are designed to voluntarily enhance 
                environmental performance above current 
                applicable obligations under the Clean Air Act 
                and State implementation efforts pursuant to 
                such Act.
    ``(b) Financial Criteria.--As determined by the Secretary 
for a particular project, financial assistance under this title 
shall be in the form of--
            ``(1) cost-sharing of an appropriate percentage of 
        the total project cost, not to exceed 50 percent as 
        calculated under section 988 of the Energy Policy Act 
        of 2005; or
            ``(2) financial assistance, including grants, 
        cooperative agreements, or loans as authorized under 
        this Act or other statutory authority of the Secretary.

``SEC. 3103. GENERATION PROJECTS.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(1) may include--
            ``(1) equipment or processes previously supported 
        by a Department of Energy program;
            ``(2) advanced combustion equipment and processes 
        that the Secretary determines will be cost-effective 
        and could substantially contribute to meeting 
        environmental or energy needs, including gasification, 
        gasification fuel cells, gasification coproduction, 
        oxidation combustion techniques, ultra-supercritical 
        boilers, and chemical looping; and
            ``(3) hybrid gasification/combustion systems, 
        including systems integrating fuel cells with 
        gasification or combustion units.
    ``(b) Criteria.--The Secretary shall establish criteria for 
the selection of generation projects under section 3102(a)(1). 
The Secretary may modify the criteria as appropriate to reflect 
improvements in equipment, except that the criteria shall not 
be modified to be less stringent. The selection criteria shall 
include--
            ``(1) prioritization of projects whose installation 
        is likely to result in significant air quality 
        improvements in nonattainment air quality areas;
            ``(2) prioritization of projects whose installation 
        is likely to result in lower emission rates of 
        pollution;
            ``(3) prioritization of projects that result in the 
        repowering or replacement of older, less efficient 
        units;
            ``(4) documented broad interest in the procurement 
        of the equipment and utilization of the processes used 
        in the projects by owners or operators of facilities 
        for electricity generation;
            ``(5) equipment and processes beginning in 2006 
        through 2011 that are projected to achieve a thermal 
        efficiency of--
                    ``(A) 40 percent for coal of more than 
                9,000 Btu per pound based on higher heating 
                values;
                    ``(B) 38 percent for coal of 7,000 to 9,000 
                Btu per pound passed on higher heating values; 
                and
                    ``(C) 36 percent for coal of less than 
                7,000 Btu per pound based on higher heating 
                values;
        except that energy used for coproduction or 
        cogeneration shall not be counted in calculating the 
        thermal efficiency under this paragraph; and
            ``(6) equipment and processes beginning in 2012 and 
        2013 that are projected to achieve a thermal efficiency 
        of--
                    ``(A) 45 percent for coal of more than 
                9,000 Btu per pound based on higher heating 
                values;
                    ``(B) 44 percent for coal of 7,000 to 9,000 
                Btu per pound passed on higher heating values; 
                and
                    ``(C) 40 percent for coal of less than 
                7,000 Btu per pound based on higher heating 
                values;
        except that energy used for coproduction or 
        cogeneration shall not be counted in calculating the 
        thermal efficiency under this paragraph
    ``(c) Program Balance and Priority.--In carrying out the 
program under section 3102(a)(1), the Secretary shall ensure, 
to the extent practicable, that--
            ``(1) between 25 percent and 75 percent of the 
        projects supported are for the sole purpose of 
        electrical generation; and
            ``(2) priority is given to projects that use 
        electrical generation equipment and processes that have 
        been developed and demonstrated and applied in actual 
        production of electricity, but are not yet cost-
        competitive, and that achieve greater efficiency and 
        environmental performance.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out 
section 3102(a)(1)--
            ``(1) $250,000,000 for fiscal year 2007;
            ``(2) $350,000,000 for fiscal year 2008;
            ``(3) $400,000,000 for each of fiscal years 2009 
        through 2012; and
            ``(4) $300,000,000 for fiscal year 2013.
    ``(e) Applicability.--No technology, or level of emission 
reduction shall be treated as adequately demonstrated for 
purpose of section 111 of the Clean Air Act (42 U.S.C. 7411), 
achievable for purposes of section 169 of that Act (42 U.S.C. 
7479), or achievable in practice for purposes of section 171 of 
that Act (42 U.S.C. 7501) solely by reason of the use of such 
technology, or the achievement of such emission reduction, by 1 
or more facilities receiving assistance under section 
3102(a)(1).

``SEC. 3104. AIR QUALITY ENHANCEMENT PROGRAM.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(2) shall--
            ``(1) utilize technologies that meet relevant 
        Federal and State clean air requirements applicable to 
        the unit or facility, including being adequately 
        demonstrated for purposes of section 111 of the Clean 
        Air Act (42 U.S.C. 7411), achievable for purposes of 
        section 169 of that Act (42 U.S.C. 7479), or achievable 
        in practice for purposes of section 171 of that Act (42 
        U.S.C. 7501); or
            ``(2) utilize equipment or processes that exceed 
        relevant Federal or State clean air requirements 
        applicable to the unit or facilities included in the 
        projects by achieving greater efficiency or 
        environmental performance.
    ``(b) Priority in Project Selection.--In making an award 
under section 3102(a)(2), the Secretary shall give priority 
to--
            ``(1) projects whose installation is likely to 
        result in significant air quality improvements in 
        nonattainment air quality areas or substantially reduce 
        the emission level of criteria pollutants and mercury 
        air emissions;
            ``(2) projects for pollution control that result in 
        the mitigation or collection of more than 1 pollutant; 
        and
            ``(3) projects designed to allow the use of the 
        waste byproducts or other byproducts of the equipment.
    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out 
section 3102(a)(2)--
            ``(1) $300,000,000 for fiscal year 2007;
            ``(2) $100,000,000 for fiscal year 2008;
            ``(3) $40,000,000 for fiscal year 2009;
            ``(4) $30,000,000 for fiscal year 2010; and
            ``(5) $30,000,000 for fiscal year 2011.
    ``(d) Applicability.--No technology, or level of emission 
reduction under subsection (a)(2) shall be treated as 
adequately demonstrated for purpose of Section 111 of the Clean 
Air Act (42 U.S.C. 7411), achievable for purposes of section 
169 of that Act (42 U.S.C. 7479), or achievable in practice for 
purposes of section 171 of that Act (42 U.S.C. 7501) solely by 
reason of the use of suchtechnology, or the achievement of such 
emission reduction, by 1 or more facilities receiving assistance under 
section 3102(a)(2).''.
    (b) Table of Contents Amendment.--The table of contents of 
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
amended by adding at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

    ``Sec. 3101. Purposes.
    ``Sec. 3102. Authorization of program.
    ``Sec. 3103. Generation projects.
    ``Sec. 3104. Air quality enhancement program.''.

                    Subtitle D--Federal Coal Leases

SEC. 431. SHORT TITLE.

    This subtitle may be cited as the ``Coal Leasing Amendments 
Act of 2005''.

SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is 
amended--
            (1) in the first sentence, by striking ``Any 
        person'' and inserting the following: ``(a)(1) Except 
        as provided in paragraph (3), on a finding by the 
        Secretary under paragraph (2), any person'';
            (2) in the second sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(b) The Secretary'';
            (3) in the third sentence, by striking ``The 
        minimum'' and inserting the following:
    ``(c) The minimum'';
            (4) in subsection (a) (as designated by paragraph 
        (1))--
                    (A) by striking ``upon'' and all that 
                follows and inserting the following: ``secure 
                modifications of the original coal lease by 
                including additional coal lands or coal 
                deposits contiguous or cornering to those 
                embraced in the lease.''; and
                    (B) by adding at the end the following:
    ``(2) A finding referred to in paragraph (1) is a finding 
by the Secretary that the modifications--
            ``(A) would be in the interest of the United 
        States;
            ``(B) would not displace a competitive interest in 
        the lands; and
            ``(C) would not include lands or deposits that can 
        be developed as part of another potential or existing 
        operation.
    ``(3) In no case shall the total area added by 
modifications to an existing coal lease under paragraph (1)--
            ``(A) exceed 960 acres; or
            ``(B) add acreage larger than that in the original 
        lease.''.

SEC. 433. APPROVAL OF LOGICAL MINING UNITS.

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

SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) 
is amended--
            (1) in the first sentence, by striking ``Each 
        lease'' and inserting the following: ``(1) Each 
        lease'';
            (2) in the second sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(2) The Secretary'';
            (3) in the third sentence, by striking ``Such 
        advance royalties'' and inserting the following:
    ``(3) Advance royalties described in paragraph (2)'';
            (4) in the seventh sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(6) The Secretary'';
            (5) in the last sentence, by striking ``Nothing'' 
        and inserting the following:
    ``(7) Nothing'';
            (6) by striking the fourth, fifth, and sixth 
        sentences; and
            (7) by inserting after paragraph (3) (as designated 
        by paragraph (3)) the following:
    ``(4) Advance royalties described in paragraph (2) shall be 
computed--
            ``(A) based on--
                    ``(i) the average price in the spot market 
                for sales of comparable coal from the same 
                region during the last month of each applicable 
                continued operation year; or
                    ``(ii) in the absence of a spot market for 
                comparable coal from the same region, by using 
                a comparable method established by the 
                Secretary of the Interior to capture the 
                commercial value of coal; and
            ``(B) based on commercial quantities, as defined by 
        regulation by the Secretary of the Interior.
    ``(5) The aggregate number of years during the period of 
any lease for which advance royalties may be accepted in lieu 
of the condition of continued operation shall not exceed 20 
years.
    ``(6) The amount of any production royalty paid for any 
year shall be reduced (but not below 0) by the amount of any 
advance royalties paid under a lease described in paragraph (5) 
to the extent that the advance royalties have not been used to 
reduce production royalties for a prior year.''.

SEC. 435. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE 
                    OPERATION AND RECLAMATION PLAN.

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

SEC. 436. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO 
                    BONUS BIDS.

    Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a)) 
is amended by adding at the end the following:
    ``(4)(A) The Secretary shall not require a surety bond or 
any other financial assurance to guarantee payment of deferred 
bonus bid installments with respect to any coallease issued on 
a cash bonus bid to a lessee or successor in interest having a history 
of a timely payment of noncontested coal royalties and advanced coal 
royalties in lieu of production (where applicable) and bonus bid 
installment payments.
    ``(B) The Secretary may waive any requirement that a lessee 
provide a surety bond or other financial assurance to guarantee 
payment of deferred bonus bid installment with respect to any 
coal lease issued before the date of the enactment of the 
Energy Policy Act of 2005 only if the Secretary determines that 
the lessee has a history of making timely payments referred to 
in subparagraph (A).
    ``(5) Notwithstanding any other provision of law, if the 
lessee under a coal lease fails to pay any installment of a 
deferred cash bonus bid within 10 days after the Secretary 
provides written notice that payment of the installment is past 
due--
            ``(A) the lease shall automatically terminate; and
            ``(B) any bonus payments already made to the United 
        States with respect to the lease shall not be returned 
        to the lessee or credited in any future lease sale.''.

SEC. 437. INVENTORY REQUIREMENT.

    (a) Review of Assessments.--
            (1) In general.--The Secretary of the Interior, in 
        consultation with the Secretary of Agriculture and the 
        Secretary, shall review coal assessments and other 
        available data to identify--
                    (A) Federal lands with coal resources that 
                are available for development;
                    (B) the extent and nature of any 
                restrictions on the development of coal 
                resources on Federal lands identified under 
                paragraph (1); and
                    (C) with respect to areas of such lands for 
                which sufficient data exists, resources of 
                compliant coal and supercompliant coal.
            (2) Definitions.--For purposes of this subsection--
                    (A) the term ``compliant coal'' means coal 
                that contains not less than 1.0 and not more 
                than 1.2 pounds of sulfur dioxide per million 
                Btu; and
                    (B) the term ``supercompliant coal'' means 
                coal that contains less than 1.0 pounds of 
                sulfur dioxide per million Btu.
    (b) Completion and Updating of the Inventory.--The 
Secretary--
            (1) shall complete the inventory under subsection 
        (a) by not later than 2 years after the date of 
        enactment of this Act; and
            (2) shall update the inventory as the availability 
        of data and developments in technology warrant.
    (c) Report.--The Secretary shall submit to the Committee on 
Resources of the House of Representatives and to the Committee 
on Energy and Natural Resources of the Senate and make publicly 
available--
            (1) a report containing the inventory under this 
        section, by not later than 2 years after the effective 
        date of this section; and
            (2) each update of such inventory.

SEC. 438. APPLICATION OF AMENDMENTS.

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

                         TITLE V--INDIAN ENERGY

SEC. 501. SHORT TITLE.

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

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

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

             ``OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

    ``Sec. 217. (a) Establishment.--There is established within 
the Department an Office of Indian Energy Policy and Programs 
(referred to in this section as the `Office'). The Office shall 
be headed by a Director, who shall be appointed by the 
Secretary and compensated at a rate equal to that of level IV 
of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) Duties of Director.--The Director, in accordance with 
Federal policies promoting Indian self-determination and the 
purposes of this Act, shall provide, direct, foster, 
coordinate, and implement energy planning, education, 
management, conservation, and delivery programs of the 
Department that--
            ``(1) promote Indian tribal energy development, 
        efficiency, and use;
            ``(2) reduce or stabilize energy costs;
            ``(3) enhance and strengthen Indian tribal energy 
        and economic infrastructure relating to natural 
        resource development and electrification; and
            ``(4) bring electrical power and service to Indian 
        land and the homes of tribal members located on Indian 
        lands or acquired, constructed, or improved (in whole 
        or in part) with Federal funds.''.
    (b) Conforming Amendments.--
            (1) The table of contents of the Department of 
        Energy Organization Act (42 U.S.C. prec. 7101) is 
        amended--
                    (A) in the item relating to section 209, by 
                striking ``Section'' and inserting ``Sec.''; 
                and
                    (B) by striking the items relating to 
                sections 213 through 216 and inserting the 
                following:

``Sec. 213. Establishment of policy for National Nuclear Security 
          Administration
``Sec. 214. Establishment of security, counterintelligence, and 
          intelligence policies
``Sec. 215. Office of Counterintelligence
``Sec. 216. Office of Intelligence
``Sec. 217. Office of Indian Energy Policy and Programs''.

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

SEC. 503. INDIAN ENERGY.

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

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

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

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

    ``(a) Department of the Interior Program.--
            ``(1) To assist Indian tribes in the development of 
        energy resources and further the goal of Indian self-
        determination, the Secretary shall establish and 
        implement an Indian energy resource development program 
        to assist consenting Indian tribes and tribal energy 
        resource development organizations in achieving the 
        purposes of this title.
            ``(2) In carrying out the Program, the Secretary 
        shall--
                    ``(A) provide development grants to Indian 
                tribes and tribal energy resource development 
                organizations for use in developing or 
                obtaining the managerial and technical capacity 
                needed to develop energy resources on Indian 
                land, and to properly account for resulting 
                energy production and revenues;
                    ``(B) provide grants to Indian tribes and 
                tribal energy resource development 
                organizations for use in carrying out projects 
                to promote the integration of energy resources, 
                and to process, use, or develop those energy 
                resources, on Indian land;
                    ``(C) provide low-interest loans to Indian 
                tribes and tribal energy resource development 
                organizations for use in the promotion of 
                energy resource development on Indian land and 
                integration of energy resources; and
                    ``(D) provide grants and technical 
                assistance to an appropriate tribal 
                environmental organization, as determined by 
                the Secretary, that represents multiple Indian 
                tribes to establish a national resource center 
                to develop tribal capacity to establish and 
                carry out tribal environmental programs in 
                support of energy-related programs and 
                activities under this title, including--
                            ``(i) training programs for tribal 
                        environmental officials, program 
                        managers, and other governmental 
                        representatives;
                            ``(ii) the development of model 
                        environmental policies and tribal laws, 
                        including tribal environmental review 
                        codes, and the creation and maintenance 
                        of a clearinghouse of best 
                        environmental management practices; and
                            ``(iii) recommended standards for 
                        reviewing the implementation of tribal 
                        environmental laws and policies within 
                        tribal judicial or other tribal appeals 
                        systems.
            ``(3) There are authorized to be appropriated to 
        carry out this subsection such sums as are necessary 
        for each of fiscal years 2006 through 2016.
    ``(b) Department of Energy Indian Energy Education Planning 
and Management Assistance Program.--
            ``(1) The Director shall establish programs to 
        assist consenting Indian tribes in meeting energy 
        education, research and development, planning, and 
        management needs.
            ``(2) In carrying out this subsection, the Director 
        may provide grants, on a competitive basis, to an 
        Indian tribe or tribal energy resource development 
        organization for use in carrying out--
                    ``(A) energy, energy efficiency, and energy 
                conservation programs;
                    ``(B) studies and other activities 
                supporting tribal acquisitions of energy 
                supplies, services, and facilities, including 
                the creation of tribal utilities to assist in 
                securing electricity to promote electrification 
                of homes and businesses on Indian land;
                    ``(C) planning, construction, development, 
                operation, maintenance, and improvement of 
                tribal electrical generation, transmission, and 
                distribution facilities located on Indian land; 
                and
                    ``(D) development, construction, and 
                interconnection of electric power transmission 
                facilities located on Indian land with other 
                electric transmission facilities.
            ``(3)(A) The Director shall develop a program to 
        support and implement research projects that provide 
        Indian tribes with opportunities to participate in 
        carbon sequestration practices on Indian land, 
        including--
                    ``(i) geologic sequestration;
                    ``(ii) forest sequestration;
                    ``(iii) agricultural sequestration; and
                    ``(iv) any other sequestration 
                opportunities the Director considers to be 
                appropriate.
            ``(B) The activities carried out under subparagraph 
        (A) shall be--
                    ``(i) coordinated with other carbon 
                sequestration research and development programs 
                conducted by the Secretary of Energy;
                    ``(ii) conducted to determine methods 
                consistent with existing standardized 
                measurementprotocols to account and report the 
quantity of carbon dioxide or other greenhouse gases sequestered in 
projects that may be implemented on Indian land; and
                    ``(iii) reviewed periodically to collect 
                and distribute to Indian tribes information on 
                carbon sequestration practices that will 
                increase the sequestration of carbon without 
                threatening the social and economic well-being 
                of Indian tribes.
            ``(4)(A) The Director, in consultation with Indian 
        tribes, may develop a formula for providing grants 
        under this subsection.
            ``(B) In providing a grant under this subsection, 
        the Director shall give priority to any application 
        received from an Indian tribe with inadequate electric 
        service (as determined by the Director).
            ``(C) In providing a grant under this subsection 
        for an activity to provide, or expand the provision of, 
        electricity on Indian land, the Director shall 
        encourage cooperative arrangements between Indian 
        tribes and utilities that provide service to Indian 
        tribes, as the Director determines to be appropriate.
            ``(5) The Secretary of Energy may issue such 
        regulations as the Secretary determines to be necessary 
        to carry out this subsection.
            ``(6) There is authorized to be appropriated to 
        carry out this subsection $20,000,000 for each of 
        fiscal years 2006 through 2016.
    ``(c) Department of Energy Loan Guarantee Program.--
            ``(1) Subject to paragraphs (2) and (4), the 
        Secretary of Energy may provide loan guarantees (as 
        defined in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a)) for an amount equal to not 
        more than 90 percent of the unpaid principal and 
        interest due on any loan made to an Indian tribe for 
        energy development.
            ``(2) In providing a loan guarantee under this 
        subsection for an activity to provide, or expand the 
        provision of, electricity on Indian land, the Secretary 
        of Energy shall encourage cooperative arrangements 
        between Indian tribes and utilities that provide 
        service to Indian tribes, as the Secretary determines 
        to be appropriate.
            ``(3) A loan guarantee under this subsection shall 
        be made by--
                    ``(A) a financial institution subject to 
                examination by the Secretary of Energy; or
                    ``(B) an Indian tribe, from funds of the 
                Indian tribe.
            ``(4) The aggregate outstanding amount guaranteed 
        by the Secretary of Energy at any time under this 
        subsection shall not exceed $2,000,000,000.
            ``(5) The Secretary of Energy may issue such 
        regulations as the Secretary of Energy determines are 
        necessary to carry out this subsection.
            ``(6) There are authorized to be appropriated such 
        sums as are necessary to carry out this subsection, to 
        remain available until expended.
            ``(7) Not later than 1 year after the date of 
        enactment of this section, the Secretary of Energy 
        shall submit to Congress a report on the financing 
        requirements of Indian tribes for energy development on 
        Indian land.
    ``(d) Preference.--
            ``(1) In purchasing electricity or any other energy 
        product or byproduct, a Federal agency or department 
        may give preference to an energy and resource 
        production enterprise, partnership, consortium, 
        corporation, or other type of business organization the 
        majority of the interest in which is owned and 
        controlled by 1 or more Indian tribes.
            ``(2) In carrying out this subsection, a Federal 
        agency or department shall not--
                    ``(A) pay more than the prevailing market 
                price for an energy product or byproduct; or
                    ``(B) obtain less than prevailing market 
                terms and conditions.

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

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

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

    ``(a) Leases and Business Agreements.--In accordance with 
this section--
            ``(1) an Indian tribe may, at the discretion of the 
        Indian tribe, enter into a lease or business agreement 
        for the purpose of energy resource development on 
        tribal land, including a lease or business agreement 
        for--
                    ``(A) exploration for, extraction of, 
                processing of, or other development of the 
                energy mineral resources of the Indian tribe 
                located on tribal land; or
                    ``(B) construction or operation of--
                            ``(i) an electric generation, 
                        transmission, or distribution facility 
                        located on tribal land; or
                            ``(ii) a facility to process or 
                        refine energy resources developed on 
                        tribal land; and
            ``(2) a lease or business agreement described in 
        paragraph (1) shall not require review by or the 
        approval of the Secretary under section 2103 of the 
        Revised Statutes (25 U.S.C. 81), or any other provision 
        of law, if--
                    ``(A) the lease or business agreement is 
                executed pursuant to a tribal energy resource 
                agreement approved by the Secretary under 
                subsection (e);
                    ``(B) the term of the lease or business 
                agreement does not exceed--
                            ``(i) 30 years; or
                            ``(ii) in the case of a lease for 
                        the production of oil resources, gas 
                        resources, or both, 10 years and as 
                        long thereafter as oil or gas is 
                        produced in paying quantities; and
                    ``(C) the Indian tribe has entered into a 
                tribal energy resource agreement with the 
                Secretary, as described in subsection (e), 
                relating to the development of energy resources 
                on tribal land (including the periodic review 
                and evaluation of the activities of the Indian 
                tribe under the agreement, to be conducted 
                pursuant to subsection (e)(2)(D)(i)).
    ``(b) Rights-of-Way for Pipelines or Electric Transmission 
or Distribution Lines.--An Indian tribe may grant a right-of-
way over tribal land for a pipeline or an electric transmission 
or distribution line without review or approval by the 
Secretary if--
            ``(1) the right-of-way is executed in accordance 
        with a tribal energy resource agreement approved by the 
        Secretary under subsection (e);
            ``(2) the term of the right-of-way does not exceed 
        30 years;
            ``(3) the pipeline or electric transmission or 
        distribution line serves--
                    ``(A) an electric generation, transmission, 
                or distribution facility located on tribal 
                land; or
                    ``(B) a facility located on tribal land 
                that processes or refines energy resources 
                developed on tribal land; and
            ``(4) the Indian tribe has entered into a tribal 
        energy resource agreement with the Secretary, as 
        described in subsection (e), relating to the 
        development of energy resources on tribal land 
        (including the periodic review and evaluation of the 
        activities of the Indian tribe under an agreement 
        described in subparagraphs (D) and (E) of subsection 
        (e)(2)).
    ``(c) Renewals.--A lease or business agreement entered 
into, or a right-of-way granted, by an Indian tribe under this 
section may be renewed at the discretion of the Indian tribe in 
accordance with this section.
    ``(d) Validity.--No lease, business agreement, or right-of-
way relating to the development of tribal energy resources 
under this section shall be valid unless the lease, business 
agreement, or right-of-way is authorized by atribal energy 
resource agreement approved by the Secretary under subsection (e)(2).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On the date on which regulations are 
        promulgated under paragraph (8), an Indian tribe may 
        submit to the Secretary for approval a tribal energy 
        resource agreement governing leases, business 
        agreements, and rights-of-way under this section.
            ``(2)(A) Not later than 270 days after the date on 
        which the Secretary receives a tribal energy resource 
        agreement from an Indian tribe under paragraph (1), or 
        not later than 60 days after the Secretary receives a 
        revised tribal energy resource agreement from an Indian 
        tribe under paragraph (4)(C) (or a later date, as 
        agreed to by the Secretary and the Indian tribe), the 
        Secretary shall approve or disapprove the tribal energy 
        resource agreement.
            ``(B) The Secretary shall approve a tribal energy 
        resource agreement submitted under paragraph (1) if--
                    ``(i) the Secretary determines that the 
                Indian tribe has demonstrated that the Indian 
                tribe has sufficient capacity to regulate the 
                development of energy resources of the Indian 
                tribe;
                    ``(ii) the tribal energy resource agreement 
                includes provisions required under subparagraph 
                (D); and
                    ``(iii) the tribal energy resource 
                agreement includes provisions that, with 
                respect to a lease, business agreement, or 
                right-of-way under this section--
                            ``(I) ensure the acquisition of 
                        necessary information from the 
                        applicant for the lease, business 
                        agreement, or right-of-way;
                            ``(II) address the term of the 
                        lease or business agreement or the term 
                        of conveyance of the right-of-way;
                            ``(III) address amendments and 
                        renewals;
                            ``(IV) address the economic return 
                        to the Indian tribe under leases, 
                        business agreements, and rights-of-way;
                            ``(V) address technical or other 
                        relevant requirements;
                            ``(VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                            ``(VII) ensure compliance with all 
                        applicable environmental laws, 
                        including a requirement that each 
                        lease, business agreement, and right-
                        of-way state that the lessee, operator, 
                        or right-of-way grantee shall comply 
                        with all such laws;
                            ``(VIII) identify final approval 
                        authority;
                            ``(IX) provide for public 
                        notification of final approvals;
                            ``(X) establish a process for 
                        consultation with any affected States 
                        regarding off-reservation impacts, if 
                        any, identified under subparagraph 
                        (C)(i);
                            ``(XI) describe the remedies for 
                        breach of the lease, business 
                        agreement, or right-of-way;
                            ``(XII) require each lease, 
                        business agreement, and right-of-way to 
                        include a statement that, if any of its 
                        provisions violates an express term or 
                        requirement of the tribal energy 
                        resource agreement pursuant to which 
                        the lease, business agreement, or 
                        right-of-way was executed--
                                    ``(aa) the provision shall 
                                be null and void; and
                                    ``(bb) if the Secretary 
                                determines the provision to be 
                                material, the Secretary may 
                                suspend or rescind the lease, 
                                business agreement, or right-
                                of-way or take other 
                                appropriate action that the 
                                Secretary determines to be in 
                                the best interest of the Indian 
                                tribe;
                            ``(XIII) require each lease, 
                        business agreement, and right-of-way to 
                        provide that it will become effective 
                        on the date on which a copy of the 
                        executed lease, business agreement, or 
                        right-of-way is delivered to the 
                        Secretary in accordance with 
                        regulations promulgated under paragraph 
                        (8);
                            ``(XIV) include citations to tribal 
                        laws, regulations, or procedures, if 
                        any, that set out tribal remedies that 
                        must be exhausted before a petition may 
                        be submitted to the Secretary under 
                        paragraph (7)(B);
                            ``(XV) specify the financial 
                        assistance, if any, to be provided by 
                        the Secretary to the Indian tribe to 
                        assist in implementation of the tribal 
                        energy resource agreement, including 
                        environmental review of individual 
                        projects; and
                            ``(XVI) in accordance with the 
                        regulations promulgated by the 
                        Secretary under paragraph (8), require 
                        that the Indian tribe, as soon as 
                        practicable after receipt of a notice 
                        by the Indian tribe, give written 
                        notice to the Secretary of--
                                    ``(aa) any breach or other 
                                violation by another party of 
                                any provision in a lease, 
                                business agreement, or right-
                                of-way entered into under the 
                                tribal energy resource 
                                agreement; and
                                    ``(bb) any activity or 
                                occurrence under a lease, 
                                business agreement, or right-
                                of-way that constitutes a 
                                violation of Federal or tribal 
                                environmental laws.
                    ``(C) Tribal energy resource agreements 
                submitted under paragraph (1) shall establish, 
                and include provisions to ensure compliance 
                with, an environmental review process that, 
                with respect to a lease, business agreement, or 
                right-of-way under this section, provides for, 
                at a minimum--
                            ``(i) the identification and 
                        evaluation of all significant 
                        environmental effects (as compared to a 
                        no-action alternative), including 
                        effects on cultural resources;
                            ``(ii) the identification of 
                        proposed mitigation measures, if any, 
                        and incorporation of appropriate 
                        mitigation measures into the lease, 
                        business agreement, or right-of-way;
                            ``(iii) a process for ensuring 
                        that--
                                    ``(I) the public is 
                                informed of, and has an 
                                opportunity to comment on, the 
                                environmental impacts of the 
                                proposed action; and
                                    ``(II) responses to 
                                relevant and substantive 
                                comments are provided, before 
                                tribal approval of the lease, 
                                business agreement, or right-
                                of-way;
                            ``(iv) sufficient administrative 
                        support and technical capability to 
                        carry out the environmental review 
                        process; and
                            ``(v) oversight by the Indian tribe 
                        of energy development activities by any 
                        other party under any lease, business 
                        agreement, or right-of-way entered into 
                        pursuant to the tribal energy resource 
                        agreement, to determine whether the 
                        activities are in compliance with the 
                        tribal energy resource agreement and 
                        applicable Federal environmental laws.
                    ``(D) A tribal energy resource agreement 
                between the Secretary and an Indian tribe under 
                this subsection shall include--
                            ``(i) provisions requiring the 
                        Secretary to conduct a periodic review 
                        and evaluation to monitor the 
                        performance of the activities of the 
                        Indian tribe associated with the 
                        development of energy resources under 
                        the tribal energy resource agreement; 
                        and
                            ``(ii) if a periodic review and 
                        evaluation, or an investigation, by the 
                        Secretary of any breach or violation 
                        described in a notice provided by the 
                        Indian tribe to the Secretary in 
                        accordance with subparagraph 
                        (B)(iii)(XVI), results in a finding by 
                        the Secretary of imminent jeopardy to a 
                        physical trust asset arising from a 
                        violation of the tribal energy resource 
                        agreement or applicable Federal laws, 
                        provisions authorizing the Secretary to 
                        take actions determined by the 
                        Secretary to be necessary to protect 
                        the asset, including reassumption of 
                        responsibility for activities 
                        associated with the development of 
                        energy resources on tribal land until 
                        the violation and any condition that 
                        caused the jeopardy are corrected.
                    ``(E) Periodic review and evaluation under 
                subparagraph (D) shall be conducted on an 
                annual basis, except that, after the third 
                annual review and evaluation, the Secretary and 
                the Indian tribe may mutually agree to amend 
                the tribal energy resource agreement to 
                authorize the review and evaluation under 
                subparagraph (D) to be conducted once every 2 
                years.
            ``(3) The Secretary shall provide notice and 
        opportunity for public comment on tribal energy 
        resource agreements submitted for approval under 
        paragraph (1). The Secretary's review of a tribal 
        energy resource agreement shall be limited to 
        activities specified by the provisions of the tribal 
        energy resource agreement.
            ``(4) If the Secretary disapproves a tribal energy 
        resource agreement submitted by an Indian tribe under 
        paragraph (1), the Secretary shall, not later than 10 
        days after the date of disapproval--
                    ``(A) notify the Indian tribe in writing of 
                the basis for the disapproval;
                    ``(B) identify what changes or other 
                actions are required to address the concerns of 
                the Secretary; and
                    ``(C) provide the Indian tribe with an 
                opportunity to revise and resubmit the tribal 
                energy resource agreement.
            ``(5) If an Indian tribe executes a lease or 
        business agreement, or grants a right-of-way, in 
        accordance with a tribal energy resource agreement 
        approved under this subsection, the Indian tribe shall, 
        in accordance with the process and requirements under 
        regulations promulgated under paragraph (8), provide to 
        the Secretary--
                    ``(A) a copy of the lease, business 
                agreement, or right-of-way document (including 
                all amendments to and renewals of the 
                document); and
                    ``(B) in the case of a tribal energy 
                resource agreement or a lease, business 
                agreement, or right-of-way that permits 
                payments to be made directly to the Indian 
                tribe, information and documentation of those 
                payments sufficient to enable the Secretary to 
                discharge the trust responsibility of the 
                United States to enforce the terms of, and 
                protect the rights of the Indian tribe under, 
                the lease, business agreement, or right-of-way.
            ``(6)(A) In carrying out this section, the 
        Secretary shall--
                    ``(i) act in accordance with the trust 
                responsibility of the United States relating to 
                mineral and other trust resources; and
                    ``(ii) act in good faith and in the best 
                interests of the Indian tribes.
            ``(B) Subject to the provisions of subsections 
        (a)(2), (b), and (c) waiving the requirement of 
        Secretarial approval of leases, business agreements, 
        and rights-of-way executed pursuant to tribal energy 
        resource agreements approved under this section, and 
        the provisions of subparagraph (D), nothing in this 
        section shall absolve the United States from any 
        responsibility to Indians or Indian tribes, including, 
        but not limited to, those which derive from the trust 
        relationship or from any treaties, statutes, and other 
        laws of the United States, Executive Orders, or 
        agreements between the United States and any Indian 
        tribe.
            ``(C) The Secretary shall continue to fulfill the 
        trust obligation of the United States to ensure that 
        the rights and interests of an Indian tribe are 
        protected if--
                    ``(i) any other party to a lease, business 
                agreement, or right-of-way violates any 
                applicable Federal law or the terms of any 
                lease, business agreement, or right-of-way 
                under this section; or
                    ``(ii) any provision in a lease, business 
                agreement, or right-of-way violates the tribal 
                energy resource agreement pursuant to which the 
                lease, business agreement, or right-of-way was 
                executed.
            ``(D)(i) In this subparagraph, the term `negotiated 
        term' means any term or provision that is negotiated by 
        an Indian tribe and any other party to a lease, 
        business agreement, or right-of-way entered into 
        pursuant to an approved tribal energy resource 
        agreement.
            ``(ii) Notwithstanding subparagraph (B), the United 
        States shall not be liable to any party (including any 
        Indian tribe) for any negotiated term of, or any loss 
        resulting from the negotiated terms of, a lease, 
        business agreement, or right-of-way executed pursuant 
        to and in accordance with a tribal energy resource 
        agreement approved by the Secretary under paragraph 
        (2).
            ``(7)(A) In this paragraph, the term `interested 
        party' means any person (including an entity) that has 
        demonstrated that an interest of the person has 
        sustained, or will sustain, an adverse environmental 
        impact as a result of the failure of an Indian tribe to 
        comply with a tribal energy resource agreement of the 
        Indian tribe approved by the Secretary under paragraph 
        (2).
            ``(B) After exhaustion of any tribal remedy, and in 
        accordance with regulations promulgated by the 
        Secretary under paragraph (8), an interested party may 
        submit to the Secretary a petition to review the 
        compliance by an Indian tribe with a tribal energy 
        resource agreement of the Indian tribe approved by the 
        Secretary under paragraph (2).
            ``(C)(i) Not later than 20 days after the date on 
        which the Secretary receives a petition under 
        subparagraph (B), the Secretary shall--
                    ``(I) provide to the Indian tribe a copy of 
                the petition; and
                    ``(II) consult with the Indian tribe 
                regarding any noncompliance alleged in the 
                petition.
            ``(ii) Not later than 45 days after the date on 
        which a consultation under clause (i)(II) takes place, 
        the Indian tribe shall respond to any claim made in a 
        petition under subparagraph (B).
            ``(iii) The Secretary shall act in accordance with 
        subparagraphs (D) and (E) only if the Indian tribe--
                    ``(I) denies, or fails to respond to, each 
                claim made in the petition within the period 
                described in clause (ii); or
                    ``(II) fails, refuses, or is unable to cure 
                or otherwise resolve each claim made in the 
                petition within a reasonable period, as 
                determined by the Secretary, after the 
                expiration of the period described in clause 
                (ii).
            ``(D)(i) Not later than 120 days after the date on 
        which the Secretary receives a petition under 
        subparagraph (B), the Secretary shall determine whether 
        the Indian tribe is not in compliance with the tribal 
        energy resource agreement.
            ``(ii) The Secretary may adopt procedures under 
        paragraph (8) authorizing an extension of time, not to 
        exceed 120 days, for making the determination under 
        clause (i) in any case in which the Secretary 
        determines that additional time is necessary to 
        evaluate the allegations of the petition.
            ``(iii) Subject to subparagraph (E), if the 
        Secretary determines that the Indian tribe is not in 
        compliance with the tribal energy resource agreement, 
        the Secretary shall take such action as the Secretary 
        determines to be necessary to ensure compliance with 
        the tribal energy resource agreement, including--
                    ``(I) temporarily suspending any activity 
                under a lease, business agreement, or right-of-
                way under this section until the Indian tribe 
                is in compliance with the approved tribal 
                energy resource agreement; or
                    ``(II) rescinding approval of all or part 
                of the tribal energy resource agreement, and if 
                all of the agreement is rescinded, reassuming 
                the responsibility for approval of any future 
                leases, business agreements, or rights-of-way 
                described in subsection (a) or (b).
            ``(E) Before taking an action described in 
        subparagraph (D)(iii), the Secretary shall--
                    ``(i) make a written determination that 
                describes the manner in which the tribal energy 
                resource agreement has been violated;
                    ``(ii) provide the Indian tribe with a 
                written notice of the violations together with 
                the written determination; and
                    ``(iii) before taking any action described 
                in subparagraph (D)(iii) or seeking any other 
                remedy, provide the Indian tribe with a hearing 
                and a reasonable opportunity to attain 
                compliance with the tribal energy resource 
                agreement.
            ``(F) An Indian tribe described in subparagraph (E) 
        shall retain all rights to appeal under any regulation 
        promulgated by the Secretary.
            ``(8) Not later than 1 year after the date of 
        enactment of the Energy Policy Act of 2005, the 
        Secretary shall promulgate regulations that implement 
        this subsection, including--
                    ``(A) criteria to be used in determining 
                the capacity of an Indian tribe under paragraph 
                (2)(B)(i), including the experience of the 
                Indian tribe in managing natural resources and 
                financial and administrative resources 
                available for use by the Indian tribe in 
                implementing the approved tribal energy 
                resource agreement of the Indian tribe;
                    ``(B) a process and requirements in 
                accordance with which an Indian tribe may--
                            ``(i) voluntarily rescind a tribal 
                        energy resource agreement approved by 
                        the Secretary under this subsection; 
                        and
                            ``(ii) return to the Secretary the 
                        responsibility to approve any future 
                        lease, business agreement, or right-of-
                        way under this subsection;
                    ``(C) provisions establishing the scope of, 
                and procedures for, the periodic review and 
                evaluation described in subparagraphs (D) and 
                (E) of paragraph (2), including provisions for 
                review of transactions, reports, site 
                inspections, and any other review activities 
                the Secretary determines to be appropriate; and
                    ``(D) provisions describing final agency 
                actions after exhaustion of administrative 
                appeals from determinations of the Secretary 
                under paragraph (7).
    ``(f) No Effect on Other Law.--Nothing in this section 
affects the application of--
            ``(1) any Federal environmental law;
            ``(2) the Surface Mining Control and Reclamation 
        Act of 1977 (30 U.S.C. 1201 et seq.); or
            ``(3) except as otherwise provided in this title, 
        the Indian Mineral Development Act of 1982 (25 U.S.C. 
        2101 et seq.).
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary such sums as are 
necessary for each of fiscal years 2006 through 2016 to carry 
out this section and to make grants or provide other 
appropriate assistance to Indian tribes to assist the Indian 
tribes in developing and implementing tribal energy resource 
agreements in accordance with this section.

``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

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

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

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

``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving 
          energy development or transmission.
``Sec. 2605. Federal Power Marketing Administrations.
``Sec. 2606. Wind and hydropower feasibility study.''.

SEC. 504. CONSULTATION WITH INDIAN TRIBES.

    In carrying out this title and the amendments made by this 
title, the Secretary and the Secretary of the Interior shall, 
as appropriate and to the maximum extent practicable, involve 
and consult with Indian tribes.

SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT AND ELECTRIFICATION.

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

SEC. 506. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

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

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

SEC. 601. SHORT TITLE.

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

SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

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

SEC. 603. MAXIMUM ASSESSMENT.

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

SEC. 604. DEPARTMENT LIABILITY LIMIT.

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

SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.

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

SEC. 606. REPORTS.

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

SEC. 607. INFLATION ADJUSTMENT.

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

SEC. 608. TREATMENT OF MODULAR REACTORS.

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

SEC. 609. APPLICABILITY.

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

SEC. 610. CIVIL PENALTIES.

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

                  Subtitle B--General Nuclear Matters

SEC. 621. LICENSES.

    Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
2133(c)) is amended by inserting ``from the authorization to 
commence operations'' after ``forty years''.

SEC. 622. NUCLEAR REGULATORY COMMISSION SCHOLARSHIP AND FELLOWSHIP 
                    PROGRAM.

    (a) In General.--Chapter 19 of the Atomic Energy Act of 
1954 is amended by inserting after section 242 (42 U.S.C. 
2015a) the following:

``SEC. 243. SCHOLARSHIP AND FELLOWSHIP PROGRAM.

    ``a. Scholarship Program.--To enable students to study, for 
at least 1 academic semester or equivalent term, science, 
engineering, or another field of study that the Commission 
determines is in a critical skill area related to the 
regulatory mission of the Commission, the Commission may carry 
out a program to--
            ``(1) award scholarships to undergraduate students 
        who--
                    ``(A) are United States citizens; and
                    ``(B) enter into an agreement under 
                subsection c. to be employed by the Commission 
                in the area of study for which the scholarship 
                is awarded.
    ``b. Fellowship Program.--To enable students to pursue 
education in science, engineering, or another field of study 
that the Commission determines is in a critical skill area 
related to its regulatory mission, in a graduate or 
professional degree program offered by an institution of higher 
education in the United States, the Commission may carry out a 
program to--
            ``(1) award fellowships to graduate students who--
                    ``(A) are United States citizens; and
                    ``(B) enter into an agreement under 
                subsection c. to be employed by the Commission 
                in the area of study for which the fellowship 
                is awarded.
    ``c. Requirements.--
            ``(1) In general.--As a condition of receiving a 
        scholarship or fellowship under subsection a. or b., a 
        recipient of the scholarship or fellowship shall enter 
        into an agreement with the Commission under which, in 
        return for the assistance, the recipient shall--
                    ``(A) maintain satisfactory academic 
                progress in the studies of the recipient, as 
                determined by criteria established by the 
                Commission;
                    ``(B) agree that failure to maintain 
                satisfactory academic progress shall constitute 
                grounds on which the Commission may terminate 
                the assistance;
                    ``(C) on completion of the academic course 
                of study in connection with which the 
                assistance was provided, and in accordance with 
                criteria established by the Commission, engage 
                in employment by the Commission for a period 
                specified by the Commission, that shall be not 
                less than 1 time and not more than 3 times the 
                period for which the assistance was provided; 
                and
                    ``(D) if the recipient fails to meet the 
                requirements of subparagraph (A), (B), or (C), 
                reimburse the United States Government for--
                            ``(i) the entire amount of the 
                        assistance provided the recipient under 
                        the scholarship or fellowship; and
                            ``(ii) interest at a rate 
                        determined by the Commission.
            ``(2) Waiver or suspension.--The Commission may 
        establish criteria for the partial or total waiver or 
        suspension of any obligation of service or payment 
        incurred by a recipient of a scholarship or fellowship 
        under this section.
    ``d. Competitive Process.--Recipients of scholarships or 
fellowships under this section shall be selected through a 
competitive process primarily on the basis of academic merit 
and such other criteria as the Commission may establish, with 
consideration given to financial need and the goal of promoting 
the participation of individuals identified in section 33 or 34 
of the Science and Engineering Equal Opportunities Act (42 
U.S.C. 1885a, 1885b).
    ``e. Direct Appointment.--The Commission may appoint 
directly, with no further competition, public notice, or 
consideration of any other potential candidate, an individual 
who has--
            ``(1) received a scholarship or fellowship awarded 
        by the Commission under this section; and
            ``(2) completed the academic program for which the 
        scholarship or fellowship was awarded.''.
    (b) Conforming Amendment.--The table of sections of the 
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by 
adding after the item relating to section 242 the following:

``Sec. 243. Scholarship and fellowship program.''.

SEC. 623. 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. 624. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL 
                    RETIREES.

    (a) In General.--Chapter 14 of the Atomic Energy Act of 
1954 (42 U.S.C. 2201 et seq.) is amended by adding at the end 
the following:

``SEC. 170C. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL 
                    RETIREES.

    ``a. In General.--The Commission may waive the application 
of section 8344 or 8468 of title 5, United States Code, on a 
case-by-case basis for employment of an annuitant--
            ``(1) in a position of the Commission for which 
        there is exceptional difficulty in recruiting or 
        retaining a qualified employee; or
            ``(2) when a temporary emergency hiring need 
        exists.
    ``b. Procedures.--The Commission shall prescribe procedures 
for the exercise of authority under this section, including--
            ``(1) criteria for any exercise of authority; and
            ``(2) procedures for a delegation of authority.
    ``c. Effect of Waiver.--An employee as to whom a waiver 
under this section is in effect shall not be considered an 
employee for purposes of subchapter II of chapter 83, or 
chapter 84, of title 5, United States Code.''.
    (b) Conforming Amendment.--The table of sections of the 
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by 
adding at the end of the items relating to chapter 14 the 
following:

``Sec. 170C. Elimination of pension offset for certain rehired Federal 
          retirees.''.

SEC. 625. ANTITRUST REVIEW.

    Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
2135(c)) is amended by adding at the end the following:
    ``(9) Applicability.--This subsection does not apply to an 
application for a license to construct or operate a utilization 
facility or production facility under section 103 or 104 b. 
that is filed on or after the date of enactment of this 
paragraph.''.

SEC. 626. DECOMMISSIONING.

    Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C. 
2201(i)) is amended--
            (1) by striking ``and (3)'' and inserting ``(3)''; 
        and
            (2) by inserting before the semicolon at the end 
        the following: ``, and (4) to ensure that sufficient 
        funds will be available for the decommissioning of any 
        production or utilization facility licensed under 
        section 103 or 104 b., including standards and 
        restrictions governing the control, maintenance, use, 
        and disbursement by any former licensee under this Act 
        that has control over any fund for the decommissioning 
        of the facility''.

SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.

    Title II of the Energy Reorganization Act of 1974 (42 
U.S.C. 5841 et seq.) is amended by adding at the end the 
following new section:

                ``LIMITATION ON LEGAL FEE REIMBURSEMENT

    ``Sec. 212. The Department of Energy shall not, except as 
required under a contract entered into before the date of 
enactment of this section, reimburse any contractor or 
subcontractor of the Department for any legal fees or expenses 
incurred with respect to a complaint subsequent to--
            ``(1) an adverse determination on the merits with 
        respect to such complaint against the contractor or 
        subcontractor by the Director of the Department of 
        Energy's Office of Hearings and Appeals pursuant to 
        part 708 of title 10, Code of Federal Regulations, or 
        by a Department of Labor Administrative Law Judge 
        pursuant to section 211 of this Act; or
            ``(2) an adverse final judgment by any State or 
        Federal court with respect to such complaint against 
        the contractor or subcontractor for wrongful 
        termination or retaliation due to the making of 
        disclosures protected under chapter 12 of title 5, 
        United States Code, section 211 of this Act, or any 
        comparable State law,

unless the adverse determination or final judgment is reversed 
upon further administrative or judicial review.''.

SEC. 628. DECOMMISSIONING PILOT PROGRAM.

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

SEC. 629. WHISTLEBLOWER PROTECTION.

    (a) Definition of Employer.--Section 211(a)(2) of the 
Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is 
amended--
            (1) in subparagraph (C), by striking ``and'' at the 
        end;
            (2) in subparagraph (D), by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(E) a contractor or subcontractor of the 
                Commission;
                    ``(F) the Commission; and
                    ``(G) the Department of Energy.''.
    (b) De Novo Review.--Subsection (b) of such section 211 is 
amended by adding at the end the following new paragraph:
            ``(4) If the Secretary has not issued a final 
        decision within 1 year after the filing of a complaint 
        under paragraph (1), and there is no showing that such 
        delay is due to the bad faith of the person seeking 
        relief under this paragraph, such person may bring an 
        action at law or equity for de novo review in the 
        appropriate district court of the United States, which 
        shall have jurisdiction over such an action without 
        regard to the amount in controversy.''.

SEC. 630. MEDICAL ISOTOPE PRODUCTION.

    Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 
2160d) is amended--
            (1) in subsection a., by striking ``a. The 
        Commission'' and inserting ``a. In General.--Except as 
        provided in subsection b., the Commission'';
            (2) by redesignating subsection b. as subsection 
        c.; and
            (3) by inserting after subsection a. the following:
    ``b. Medical Isotope Production.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Highly enriched uranium.--The term 
                `highly enriched uranium' means uranium 
                enriched to include concentration of U-235 
                above 20 percent.
                    ``(B) Medical isotope.--The term `medical 
                isotope' includes Molybdenum 99, Iodine 131, 
                Xenon 133, and other radioactive materials used 
                to produce a radiopharmaceutical for 
                diagnostic, therapeutic procedures or for 
                research and development.
                    ``(C) Radiopharmaceutical.--The term 
                `radiopharmaceutical' means a radioactive 
                isotope that--
                            ``(i) contains byproduct material 
                        combined with chemical or biological 
                        material; and
                            ``(ii) is designed to accumulate 
                        temporarily in a part of the body for 
                        therapeutic purposes or for enabling 
                        the production of a useful image for 
                        use in a diagnosis of a medical 
                        condition.
                    ``(D) Recipient country.--The term 
                `recipient country' means Canada, Belgium, 
                France, Germany, and the Netherlands.
            ``(2) Licenses.--The Commission may issue a license 
        authorizing the export (including shipment to and use 
        at intermediate and ultimate consignees specified in 
        the license) to a recipient country of highly enriched 
        uranium for medical isotope production if, in addition 
        to any other requirements of this Act (except 
        subsection a.), the Commission determines that--
                    ``(A) a recipient country that supplies an 
                assurance letter to the United States 
                Government in connection with the consideration 
                by the Commission of the export license 
                application has informed the United States 
                Government that any intermediate consignees and 
                the ultimate consignee specified in the 
                application are required to use the highly 
                enriched uranium solely to produce medical 
                isotopes; and
                    ``(B) the highly enriched uranium for 
                medical isotope production will be irradiated 
                only in a reactor in a recipient country that--
                            ``(i) uses an alternative nuclear 
                        reactor fuel; or
                            ``(ii) is the subject of an 
                        agreement with the United States 
                        Government to convert to an alternative 
                        nuclear reactor fuel when alternative 
                        nuclear reactor fuel can be used in the 
                        reactor.
            ``(3) Review of physical protection requirements.--
                    ``(A) In general.--The Commission shall 
                review the adequacy of physical protection 
                requirements that, as of the date of an 
                application under paragraph (2), are applicable 
                to the transportation and storage of highly 
                enriched uranium for medical isotope production 
                or control of residual material after 
                irradiation and extraction of medical isotopes.
                    ``(B) Imposition of additional 
                requirements.--If the Commission determines 
                that additional physical protection 
                requirements are necessary (including a limit 
                on the quantity of highly enriched uranium that 
                may be contained in a single shipment), the 
                Commission shall impose such requirements as 
                license conditions or through other appropriate 
                means.
            ``(4) First report to congress.--
                    ``(A) NAS study.--The Secretary shall enter 
                into an arrangement with the National Academy 
                of Sciences to conduct a study to determine--
                            ``(i) the feasibility of procuring 
                        supplies of medical isotopes from 
                        commercial sources that do not use 
                        highly enriched uranium;
                            ``(ii) the current and projected 
                        demand and availability of medical 
                        isotopes in regular current domestic 
                        use;
                            ``(iii) the progress that is being 
                        made by the Department of Energy and 
                        others to eliminate all use of highly 
                        enriched uranium in reactor fuel, 
                        reactor targets, and medical isotope 
                        production facilities; and
                            ``(iv) the potential cost 
                        differential in medical isotope 
                        production in the reactors and target 
                        processing facilities if the products 
                        were derived from production systems 
                        that do not involve fuels and targets 
                        with highly enriched uranium.
                    ``(B) Feasibility.--For the purpose of this 
                subsection, the use of low enriched uranium to 
                produce medical isotopes shall be determined to 
                be feasible if--
                            ``(i) low enriched uranium targets 
                        have been developed and demonstrated 
                        for use in the reactors and target 
                        processing facilities that produce 
                        significant quantities of medical 
                        isotopes to serve United States needs 
                        for such isotopes;
                            ``(ii) sufficient quantities of 
                        medical isotopes are available from low 
                        enriched uranium targets and fuel to 
                        meet United States domestic needs; and
                            ``(iii) the average anticipated 
                        total cost increase from production of 
                        medical isotopes in such facilities 
                        without use of highly enriched uranium 
                        is less than 10 percent.
                    ``(C) Report by the secretary.--Not later 
                than 5 years after the date of enactment of the 
                Energy Policy Act of 2005, the Secretary shall 
                submit to Congress a report that--
                            ``(i) contains the findings of the 
                        National Academy of Sciences made in 
                        the study under subparagraph (A); and
                            ``(ii) discloses the existence of 
                        any commitments from commercial 
                        producers to provide domestic 
                        requirements for medical isotopes 
                        without use of highly enriched uranium 
                        consistent with the feasibility 
                        criteria described in subparagraph (B) 
                        not later than the date that is 4 years 
                        after the date of submission of the 
                        report.
            ``(5) Second report to congress.--If the study of 
        the National Academy of Sciences determines under 
        paragraph (4)(A)(i) that the procurement of supplies of 
        medical isotopes from commercial sources that do not 
        use highly enriched uranium is feasible, but the 
        Secretary is unable to report the existence of 
        commitments under paragraph (4)(C)(ii), not later than 
        the date that is 6 years after the date of enactment of 
        the Energy Policy Act of 2005, the Secretary shall 
        submit to Congress a report that describes options for 
        developing domestic supplies of medical isotopes in 
        quantities that are adequate to meet domestic demand 
        without the use of highly enriched uranium consistent 
        with the cost increase described in paragraph 
        (4)(B)(iii).
            ``(6) Certification.--At such time as commercial 
        facilities that do not use highly enriched uranium are 
        capable of meeting domestic requirements for medical 
        isotopes, within the cost increase described in 
        paragraph (4)(B)(iii) and without impairing the 
        reliable supply of medical isotopes for domestic 
        utilization, the Secretary shall submit to Congress a 
        certification to that effect.
            ``(7) Sunset provision.--After the Secretary 
        submits a certification under paragraph (6), the 
        Commission shall, by rule, terminate its review of 
        export license applications under this subsection.''.

SEC. 631. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.

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

SEC. 632. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR 
                    TERRORISM.

    (a) In General.--Section 129 of the Atomic Energy Act of 
1954 (42 U.S.C. 2158) is amended--
            (1) by inserting ``a.'' before ``No nuclear 
        materials and equipment''; and
            (2) by adding at the end the following new 
        subsection:
    ``b.(1) Notwithstanding any other provision of law, 
including specifically section 121 of this Act, and except as 
provided in paragraphs (2) and (3), no nuclear materials and 
equipment or sensitive nuclear technology, including items and 
assistance authorized by section 57 b. of this Act and 
regulated under part 810 of title 10, Code of Federal 
Regulations, and nuclear-related items on the Commerce Control 
List maintained under part 774 of title 15 of the Code of 
Federal Regulations, shall be exported or reexported, or 
transferred or retransferred whether directly or indirectly, 
and no Federal agency shall issue any license, approval, or 
authorization for the export or reexport, or transfer, or 
retransfer, whether directly or indirectly, of these items or 
assistance (as defined in this paragraph) to any country whose 
government has been identified by the Secretary of State as 
engaged in state sponsorship of terrorist activities 
(specifically including any country the government of which has 
been determined by the Secretary of State under section 620A(a) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
section 6(j)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export 
Control Act (22 U.S.C. 2780(d)) to have repeatedly provided 
support for acts of international terrorism).
    ``(2) This subsection shall not apply to exports, 
reexports, transfers, or retransfers of radiation monitoring 
technologies, surveillance equipment, seals, cameras, tamper-
indication devices, nuclear detectors, monitoring systems, or 
equipment necessary to safely store, transport, or remove 
hazardous materials, whether such items, services, or 
information are regulated by the Department of Energy, the 
Department of Commerce, or the Commission, except to the extent 
that such technologies, equipment, seals, cameras, devices, 
detectors, or systems are available for use in the design or 
construction of nuclear reactors or nuclear weapons.
    ``(3) The President may waive the application of paragraph 
(1) to a country if the President determines and certifies to 
Congress that the waiver will not result in any increased risk 
that the country receiving the waiver will acquire nuclear 
weapons, nuclear reactors, or any materials or components of 
nuclear weapons and--
            ``(A) the government of such country has not within 
        the preceding 12-month period willfully aided or 
        abetted the international proliferation of nuclear 
        explosive devices to individuals or groups or willfully 
        aided and abetted an individual or groups in acquiring 
        unsafeguarded nuclear materials;
            ``(B) in the judgment of the President, the 
        government of such country has provided adequate, 
        verifiable assurances that it will cease its support 
        for acts of international terrorism;
            ``(C) the waiver of that paragraph is in the vital 
        national security interest of the United States; or
            ``(D) such a waiver is essential to prevent or 
        respond to a serious radiological hazard in the country 
        receiving the waiver that may or does threaten public 
        health and safety.''.
    (b) Applicability to Exports Approved for Transfer but Not 
Transferred.--Subsection b. of section 129 of Atomic Energy Act 
of 1954, as added by subsection (a) of this section, shall 
apply with respect to exports that have been approved for 
transfer as of the date of the enactment of this Act but have 
not yet been transferred as of that date.

SEC. 633. EMPLOYEE BENEFITS.

    Section 3110(a) of the USEC Privatization Act (42 U.S.C. 
2297h-8(a)) is amended by adding at the end the following new 
paragraph:
    ``(8) Continuity of benefits.--To the extent appropriations 
are provided in advance for this purpose or are otherwise 
available, not later than 30 days after the date of enactment 
of this paragraph, the Secretary shall implement such actions 
as are necessary to ensure that any employee who--
            ``(A) is involved in providing infrastructure or 
        environmental remediation services at the Portsmouth, 
        Ohio, or the Paducah, Kentucky, Gaseous Diffusion 
        Plant;
            ``(B) has been an employee of the Department of 
        Energy's predecessor management and integrating 
        contractor (or its first or second tier 
        subcontractors), or of the Corporation, at the 
        Portsmouth, Ohio, or the Paducah, Kentucky, facility; 
        and
            ``(C) was eligible as of April 1, 2005, to 
        participate in or transfer into the Multiple Employer 
        Pension Plan or the associated multiple employer 
        retiree health care benefit plans, as defined in those 
        plans,
shall continue to be eligible to participate in or transfer 
into such pension or health care benefit plans.''.

SEC. 634. DEMONSTRATION HYDROGEN PRODUCTION AT EXISTING NUCLEAR POWER 
                    PLANTS.

    (a) Demonstration Projects.--The Secretary shall provide 
for the establishment of 2 projects in geographic areas that 
are regionally and climatically diverse to demonstrate the 
commercial production of hydrogen at existing nuclear power 
plants.
    (b) Economic Analysis.--Prior to making an award under 
subsection (a), the Secretary shall determine whether the use 
of existing nuclear power plants is a cost-effective means of 
producing hydrogen.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary for the purposes of 
carrying out this section not more than $100,000,000.

SEC. 635. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF 
                    LIABILITY FOR CERTAIN FOREIGN INCIDENTS.

    (a) In General.--Notwithstanding any other provision of 
law, no officer of the United States or of any department, 
agency, or instrumentality of the United States Government may 
enter into any contract or other arrangement, or into any 
amendment or modification of a contract or other arrangement, 
the purpose or effect of which would be to directly or 
indirectly impose liability on the United States Government, or 
any department, agency, or instrumentality of the United States 
Government, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear 
incidents occurring in connection with the design, 
construction, or operation of a production facility or 
utilization facility in any country whose government has been 
identified by the Secretary of State as engaged in state 
sponsorship of terrorist activities (specifically including any 
country the government of which, as of September 11, 2001, had 
been determined by the Secretary of State under section 620A(a) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
section 6(j)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export 
Control Act (22 U.S.C. 2780(d)) to have repeatedly provided 
support for acts of international terrorism). This section 
shall not apply to nuclear incidents occurring as a result of 
missions, carried out under the direction of the Secretary, the 
Secretary of Defense, or the Secretary of State, that are 
necessary to safely secure, store, transport, or remove nuclear 
materials for nuclear safety or nonproliferation purposes.
    (b) Definitions.--The terms used in this section shall have 
the same meaning as those terms have under section 11 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2014), unless otherwise 
expressly provided in this section.

SEC. 636. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are 
necessary to carry out this subtitle and the amendments made by 
this subtitle.

SEC. 637. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES.

    (a) In General.--Section 6101 of the Omnibus Budget 
Reconciliation Act of 1990 (42 U.S.C. 2214) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as provided in 
                paragraph (3), the'' and inserting ``The'' in 
                paragraph (1); and
                    (B) by striking paragraph (3); and
            (2) in subsection (c)--
                    (A) by striking ``and'' at the end of 
                paragraph (2)(A)(i);
                    (B) by striking the period at the end of 
                paragraph (2)(A)(ii) and inserting a semicolon;
                    (C) by adding at the end of paragraph 
                (2)(A) the following new clauses:
                            ``(iii) amounts appropriated to the 
                        Commission for the fiscal year for 
                        implementation of section 3116 of the 
                        Ronald W. Reagan National Defense 
                        Authorization Act for Fiscal Year 2005; 
                        and
                            ``(iv) amounts appropriated to the 
                        Commission for homeland security 
                        activities of the Commission for the 
                        fiscal year, except for the costs of 
                        fingerprinting and background checks 
                        required by section 149 of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2169) and 
                        the costs of conducting security 
                        inspections.''; and
                    (D) by amending paragraph (2)(B)(v) to read 
                as follows:
                            ``(v) 90 percent for fiscal year 
                        2005 and each fiscal year 
                        thereafter.''.
    (b) Repeal.--Section 7601 of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (42 U.S.C. 2213) is repealed.
    (c) Effective Date.--The amendments made by this section 
take effect on October 1, 2006.

SEC. 638. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.

    (a) Definitions.--In this section:
            (1) Advanced nuclear facility.--The term ``advanced 
        nuclear facility'' means any nuclear facility the 
        reactor design for which is approved after December 31, 
        1993, by the Commission (and such design or a 
        substantially similar design of comparable capacity was 
        not approved on or before that date).
            (2) Combined license.--The term ``combined 
        license'' means a combined construction and operating 
        license for an advanced nuclear facility issued by the 
        Commission.
            (3) Commission.--The term ``Commission'' means the 
        Nuclear Regulatory Commission.
            (4) Sponsor.--The term ``sponsor'' means a person 
        who has applied for or been granted a combined license.
    (b) Contract Authority.--
            (1) In general.--The Secretary may enter into 
        contracts under this section with sponsors of an 
        advanced nuclear facility that cover a total of 6 
        reactors, with the 6 reactors consisting of not more 
        than 3 different reactor designs, in accordance with 
        paragraph (2).
            (2) Requirement for contracts.--
                    (A) Definition of loan cost.--In this 
                paragraph, the term ``loan cost'' has the 
                meaning given the term ``cost of a loan 
                guarantee'' under section 502(5)(C) of the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a(5)(C)).
                    (B) Establishment of accounts.--There is 
                established in the Department 2 separate 
                accounts, which shall be known as the--
                            (i) ``Standby Support Program 
                        Account''; and
                            (ii) ``Standby Support Grant 
                        Account''.
                    (C) Requirement.--The Secretary shall not 
                enter into a contract under this section unless 
                the Secretary deposits--
                            (i) in the Standby Support Program 
                        Account established under subparagraph 
                        (B), funds appropriated to the 
                        Secretary in advance of the contract or 
                        a combination of appropriated funds and 
                        loan guarantee fees that are in an 
                        amount sufficient to cover the loan 
                        costs described in subsection 
                        (d)(5)(A); and
                            (ii) in the Standby Support Grant 
                        Account established under subparagraph 
                        (B), funds appropriated to the 
                        Secretary in advance of the contract, 
                        paid to the Secretary by the sponsor of 
                        the advanced nuclear facility, or a 
                        combination of appropriations and 
                        payments that are in an amount 
                        sufficient cover the costs described in 
                        subparagraphs (B), (C), and (D) of 
                        subsection (d)(5).
    (c) Covered Delays.--
            (1) Inclusions.--Under each contract authorized by 
        this section, the Secretary shall pay the costs 
        specified in subsection (d), using funds appropriated 
        or collected for the covered costs, if full power 
        operation of the advanced nuclear facility is delayed 
        by--
                    (A) the failure of the Commission to comply 
                with schedules for review and approval of 
                inspections, tests, analyses, and acceptance 
                criteria established under the combined license 
                or the conduct of preoperational hearings by 
                the Commission for the advanced nuclear 
                facility; or
                    (B) litigation that delays the commencement 
                of full-power operations of the advanced 
                nuclear facility.
            (2) Exclusions.--The Secretary may not enter into 
        any contract under this section that would obligate the 
        Secretary to pay any costs resulting from--
                    (A) the failure of the sponsor to take any 
                action required by law or regulation;
                    (B) events within the control of the 
                sponsor; or
                    (C) normal business risks.
    (d) Covered Costs.--
            (1) In general.--Subject to paragraphs (2), (3), 
        and (4), the costs that shall be paid by the Secretary 
        pursuant to a contract entered into under this section 
        are the costs that result from a delay covered by the 
        contract.
            (2) Initial 2 reactors.--In the case of the first 2 
        reactors that receive combined licenses and on which 
        construction is commenced, the Secretary shall pay--
                    (A) 100 percent of the covered costs of 
                delay; but
                    (B) not more than $500,000,000 per 
                contract.
            (3) Subsequent 4 reactors.--In the case of the next 
        4 reactors that receive a combined license and on which 
        construction is commenced, the Secretary shall pay--
                    (A) 50 percent of the covered costs of 
                delay that occur after the initial 180-day 
                period of covered delay; but
                    (B) not more than $250,000,000 per 
                contract.
            (4) Conditions on payment of certain covered 
        costs.--
                    (A) In general.--The obligation of the 
                Secretary to pay the covered costs described in 
                subparagraph (B) of paragraph (5) is subject to 
                the Secretary receiving from appropriations or 
                payments from other non-Federal sources amounts 
                sufficient to pay the covered costs.
                    (B) Non-federal sources.--The Secretary may 
                receive and accept payments from any non-
                Federal source, which shall be made available 
                without further appropriation for the payment 
                of the covered costs.
            (5) Types of covered costs.--Subject to paragraphs 
        (2), (3), and (4), the contract entered into under this 
        section for an advanced nuclear facility shall include 
        as covered costs those costs that result from a delay 
        during construction and in gaining approval for fuel 
        loading and full-power operation, including--
                    (A) principal or interest on any debt 
                obligation of an advanced nuclear facility 
                owned by a non-Federal entity; and
                    (B) the incremental difference between--
                            (i) the fair market price of power 
                        purchased to meet the contractual 
                        supply agreements that would have been 
                        met by the advanced nuclear facility 
                        but for the delay; and
                            (ii) the contractual price of power 
                        from the advanced nuclear facility 
                        subject to the delay.
    (e) Requirements.--Any contract between a sponsor and the 
Secretary covering an advanced nuclear facility under this 
section shall require the sponsor to use due diligence to 
shorten, and to end, the delay covered by the contract.
    (f) Reports.--For each advanced nuclear facility that is 
covered by a contract under this section, the Commission shall 
submit to Congress and the Secretary quarterly reports 
summarizing the status of licensing actions associated with the 
advanced nuclear facility.
    (g) Regulations.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        the Secretary shall issue such regulations as are 
        necessary to carry out this section.
            (2) Interim final rulemaking.--Not later than 270 
        days after the date of enactment of this Act, the 
        Secretary shall issue for public comment an interim 
        final rule regulating contracts authorized by this 
        section.
            (3) Notice of final rulemaking.--Not later than 1 
        year after the date of enactment of this Act, the 
        Secretary shall issue a notice of final rulemaking 
        regulating the contracts.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

SEC. 639. CONFLICTS OF INTEREST RELATING TO CONTRACTS AND OTHER 
                    ARRANGEMENTS.

    Section 170A b. of the Atomic Energy Act of 1954 (42 U.S.C. 
2210a(b)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) by striking ``b. The Commission'' and inserting 
        the following:
    ``b. Evaluation.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Nuclear Regulatory Commission''; and
            (3) by adding at the end the following:
            ``(2) Nuclear regulatory commission.--
        Notwithstanding any conflict of interest, the Nuclear 
        Regulatory Commission may enter into a contract, 
        agreement, or arrangement with the Department of Energy 
        or the operator of a Department of Energy facility, if 
        the Nuclear Regulatory Commission determines that--
                    ``(A) the conflict of interest cannot be 
                mitigated; and
                    ``(B) adequate justification exists to 
                proceed without mitigation of the conflict of 
                interest.''.

           Subtitle C--Next Generation Nuclear Plant Project

SEC. 641. PROJECT ESTABLISHMENT.

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

SEC. 642. PROJECT MANAGEMENT.

    (a) Departmental Management.--
            (1) In general.--The Project shall be managed in 
        the Department by the Office of Nuclear Energy, 
        Science, and Technology.
            (2) Generation iv nuclear energy systems program.--
        The Secretary may combine the Project with the 
        Generation IV Nuclear Energy Systems Initiative.
            (3) Existing doe project management expertise.--The 
        Secretary may utilize capabilities for review of 
        construction projects for advanced scientific 
        facilities within the Office of Science to track the 
        progress of the Project.
    (b) Laboratory Management.--
            (1) Lead laboratory.--The Idaho National Laboratory 
        shall be the lead National Laboratory for the Project 
        and shall collaborate with other National Laboratories, 
        institutions of higher education, other research 
        institutes, industrial researchers, and international 
        researchers to carry out the Project.
            (2) Industrial partnerships.--
                    (A) In general.--The Idaho National 
                Laboratory shall organize a consortium of 
                appropriate industrial partners that will carry 
                out cost-shared research, development, design, 
                and construction activities, and operate 
                research facilities, on behalf of the Project.
                    (B) Cost-sharing.--Activities of industrial 
                partners funded by the Project shall be cost-
                shared in accordance with section 988.
                    (C) Preference.--Preference in determining 
                the final structure of the consortium or any 
                partnerships under this subtitle shall be given 
                to a structure (including designating as a lead 
                industrial partner an entity incorporated in 
                the United States) that retains United States 
                technological leadership in the Project while 
                maximizing cost sharing opportunities and 
                minimizing Federal funding responsibilities.
            (3) Prototype plant siting.--The prototype nuclear 
        reactor and associated plant shall be sited at the 
        Idaho National Laboratory in Idaho.
            (4) Reactor test capabilities.--The Project shall 
        use, if appropriate, reactor test capabilities at the 
        Idaho National Laboratory.
            (5) Other laboratory capabilities.--The Project may 
        use, if appropriate, facilities at other National 
        Laboratories.

SEC. 643. PROJECT ORGANIZATION.

    (a) Major Project Elements.--The Project shall consist of 
the following major program elements:
            (1) High-temperature hydrogen production technology 
        development and validation.
            (2) Energy conversion technology development and 
        validation.
            (3) Nuclear fuel development, characterization, and 
        qualification.
            (4) Materials selection, development, testing, and 
        qualification.
            (5) Reactor and balance-of-plant design, 
        engineering, safety analysis, and qualification.
    (b) Project Phases.--The Project shall be conducted in the 
following phases:
            (1) First project phase.--A first project phase 
        shall be conducted to--
                    (A) select and validate the appropriate 
                technology under subsection (a)(1);
                    (B) carry out enabling research, 
                development, and demonstration activities on 
                technologies and components under paragraphs 
                (2) through (4) of subsection (a);
                    (C) determine whether it is appropriate to 
                combine electricity generation and hydrogen 
                production in a single prototype nuclear 
                reactor and plant; and
                    (D) carry out initial design activities for 
                a prototype nuclear reactor and plant, 
                including development of design methods and 
                safety analytical methods and studies under 
                subsection (a)(5).
            (2) Second project phase.--A second project phase 
        shall be conducted to--
                    (A) continue appropriate activities under 
                paragraphs (1) though (5) of subsection (a);
                    (B) develop, through a competitive process, 
                a final design for the prototype nuclear 
                reactor and plant;
                    (C) apply for licenses to construct and 
                operate the prototype nuclear reactor from the 
                Nuclear Regulatory Commission; and
                    (D) construct and start up operations of 
                the prototype nuclear reactor and its 
                associated hydrogen or electricity production 
                facilities.
    (c) Project Requirements.--
            (1) In general.--The Secretary shall ensure that 
        the Project is structured so as to maximize the 
        technical interchange and transfer of technologies and 
        ideas into the Project from other sources of relevant 
        expertise, including--
                    (A) the nuclear power industry, including 
                nuclear powerplant construction firms, 
                particularly with respect to issues associated 
                with plant design, construction, and 
                operational and safety issues;
                    (B) the chemical processing industry, 
                particularly with respect to issues relating 
                to--
                            (i) the use of process energy for 
                        production of hydrogen; and
                            (ii) the integration of 
                        technologies developed by the Project 
                        into chemical processing environments; 
                        and
                    (C) international efforts in areas related 
                to the Project, particularly with respect to 
                hydrogen production technologies.
            (2) International collaboration.--
                    (A) In general.--The Secretary shall seek 
                international cooperation, participation, and 
                financial contributions for the Project.
                    (B) Assistance from international 
                partners.--The Secretary, through the Idaho 
                National Laboratory, may contract for 
                assistance from specialists or facilities from 
                member countries of the Generation IV 
                International Forum, the Russian Federation, or 
                other international partners if the specialists 
                or facilities provide access to cost-effective 
                and relevant skills or test capabilities.
                    (C) Partner nations.--The Project may 
                involve demonstration of selected project 
                objectives in a partner country.
                    (D) Generation iv international forum.--The 
                Secretary shall ensure that international 
                activities of the Project are coordinated with 
                the Generation IV International Forum.
            (3) Review by nuclear energy research advisory 
        committee.--
                    (A) In general.--The Nuclear Energy 
                Research Advisory Committee of the Department 
                (referred to in this paragraph as the 
                ``NERAC'') shall--
                            (i) review all program plans for 
                        the Project and all progress under the 
                        Project on an ongoing basis; and
                            (ii) ensure that important 
                        scientific, technical, safety, and 
                        program management issues receive 
                        attention in the Project and by the 
                        Secretary.
                    (B) Additional expertise.--The NERAC shall 
                supplement the expertise of the NERAC or 
                appoint subpanels to incorporate into the 
                review by the NERAC the relevant sources of 
                expertise described under paragraph (1).
                    (C) Initial review.--Not later than 180 
                days after the date of enactment of this Act, 
                the NERAC shall--
                            (i) review existing program plans 
                        for the Project in light of the 
                        recommendations of the document 
                        entitled ``Design Features and 
                        Technology Uncertainties for the Next 
                        Generation Nuclear Plant,'' dated June 
                        30, 2004; and
                            (ii) address any recommendations of 
                        the document not incorporated in 
                        program plans for the Project.
                    (D) First project phase review.--On a 
                determination by the Secretary that the 
                appropriate activities under the first project 
                phase under subsection (b)(1) are nearly 
                complete, the Secretary shall request the NERAC 
                to conduct a comprehensive review of the 
                Project and to report to the Secretary the 
                recommendation of the NERAC concerning whether 
                the Project is ready to proceed to the second 
                project phase under subsection (b)(2).
                    (E) Transmittal of reports to congress.--
                Not later than 60 days after receiving any 
                report from the NERAC related to the Project, 
                the Secretary shall submit to the appropriate 
                committees of the Senate and the House of 
                Representatives a copy of the report, along 
                with any additional views of the Secretary that 
                the Secretary may consider appropriate.

SEC. 644. NUCLEAR REGULATORY COMMISSION.

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

SEC. 645. PROJECT TIMELINES AND AUTHORIZATION OF APPROPRIATIONS.

    (a) Target Date to Complete the First Project Phase.--Not 
later than September 30, 2011, the Secretary shall--
            (1) select the technology to be used by the Project 
        for high-temperature hydrogen production and the 
        initial design parameters for the prototype nuclear 
        plant; or
            (2) submit to Congress a report establishing an 
        alternative date for making the selection.
    (b) Design Competition for Second Project Phase.--
            (1) In general.--The Secretary, acting through the 
        Idaho National Laboratory, shall fund not more than 4 
        teams for not more than 2 years to develop detailed 
        proposals for competitive evaluation and selection of a 
        single proposal for a final design of the prototype 
        nuclear reactor.
            (2) Systems integration.--The Secretary may 
        structure Project activities in the second project 
        phase to use the lead industrial partner of the 
        competitively selected design under paragraph (1) in a 
        systems integration role for final design and 
        construction of the Project.
    (c) Target Date to Complete Project Construction.--Not 
later than September 30, 2021, the Secretary shall--
            (1) complete construction and begin operations of 
        the prototype nuclear reactor and associated energy or 
        hydrogen facilities; or
            (2) submit to Congress a report establishing an 
        alternative date for completion.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary for research and 
construction activities under this subtitle (including for 
transfer to the Nuclear Regulatory Commission for activities 
under section 644 as appropriate)--
            (1) $1,250,000,000 for the period of fiscal years 
        2006 through 2015; and
            (2) such sums as are necessary for each of fiscal 
        years 2016 through 2021.

                      Subtitle D--Nuclear Security

SEC. 651. NUCLEAR FACILITY AND MATERIALS SECURITY.

    (a) Security Evaluations; Design Basis Threat Rulemaking.--
            (1) In general.--Chapter 14 of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2201 et seq.) (as amended by 
        section 624(a)) is amended by adding at the end the 
        following:

``SEC. 170D. SECURITY EVALUATIONS.

    ``a. Security Response Evaluations.--Not less often than 
once every 3 years, the Commission shall conduct security 
evaluations at each licensed facility that is part of a class 
of licensed facilities, as the Commission considers to be 
appropriate, to assess the ability of a private security force 
of a licensed facility to defend against any applicable design 
basis threat.
    ``b. Force-on-Force Exercises.--(1) The security 
evaluations shall include force-on-force exercises.
    ``(2) The force-on-force exercises shall, to the maximum 
extent practicable, simulate security threats in accordance 
with any design basis threat applicable to a facility.
    ``(3) In conducting a security evaluation, the Commission 
shall mitigate any potential conflict of interest that could 
influence the results of a force-on-force exercise, as the 
Commission determines to be necessary and appropriate.
    ``c. Action by Licensees.--The Commission shall ensure that 
an affected licensee corrects those material defects in 
performance that adversely affect the ability of a private 
security force at that facility to defend against any 
applicable design basis threat.
    ``d. Facilities Under Heightened Threat Levels.--The 
Commission may suspend a security evaluation under this section 
if the Commission determines that the evaluation would 
compromise security at a nuclear facility under a heightened 
threat level.
    ``e. Report.--Not less often than once each year, the 
Commission shall submit to the Committee on Environment and 
Public Works of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report, in 
classified form and unclassified form, that describes the 
results of each security response evaluation conducted and any 
relevant corrective action taken by a licensee during the 
previous year.

``SEC. 170E. DESIGN BASIS THREAT RULEMAKING.

    ``a. Rulemaking.--The Commission shall--
            ``(1) not later than 90 days after the date of 
        enactment of this section, initiate a rulemaking 
        proceeding, including notice and opportunity for public 
        comment, to be completed not later than 18 months after 
        that date, to revise the design basis threats of the 
        Commission; or
            ``(2) not later than 18 months after the date of 
        enactment of this section, complete any ongoing 
        rulemaking to revise the design basis threats.
    ``b. Factors.--When conducting its rulemaking, the 
Commission shall consider the following, but not be limited 
to--
            ``(1) the events of September 11, 2001;
            ``(2) an assessment of physical, cyber, 
        biochemical, and other terrorist threats;
            ``(3) the potential for attack on facilities by 
        multiple coordinated teams of a large number of 
        individuals;
            ``(4) the potential for assistance in an attack 
        from several persons employed at the facility;
            ``(5) the potential for suicide attacks;
            ``(6) the potential for water-based and air-based 
        threats;
            ``(7) the potential use of explosive devices of 
        considerable size and other modern weaponry;
            ``(8) the potential for attacks by persons with a 
        sophisticated knowledge of facility operations;
            ``(9) the potential for fires, especially fires of 
        long duration;
            ``(10) the potential for attacks on spent fuel 
        shipments by multiple coordinated teams of a large 
        number of individuals;
            ``(11) the adequacy of planning to protect the 
        public health and safety at and around nuclear 
        facilities, as appropriate, in the event of a terrorist 
        attack against a nuclear facility; and
            ``(12) the potential for theft and diversion of 
        nuclear materials from such facilities.''.
            (2) Conforming amendment.--The table of sections of 
        the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) 
        (as amended by section 624(b)) is amended by adding at 
        the end of the items relating to chapter 14 the 
        following:

``Sec. 170D. Security evaluations.
``Sec. 170E. Design basis threat rulemaking.''.

            (3) Federal security coordinators.--
                    (A) Regional offices.--Not later than 18 
                months after the date of enactment of this Act, 
                the Nuclear Regulatory Commission (referred to 
                in this section as the ``Commission'') shall 
                assign a Federal security coordinator, under 
                the employment of the Commission, to each 
                region of the Commission.
                    (B) Responsibilities.--The Federal security 
                coordinator shall be responsible for--
                            (i) communicating with the 
                        Commission and other Federal, State, 
                        and local authorities concerning 
                        threats, including threats against such 
                        classes of facilities as the Commission 
                        determines to be appropriate;
                            (ii) monitoring such classes of 
                        facilities as the Commission determines 
                        to be appropriate to ensure that they 
                        maintain security consistent with the 
                        security plan in accordance with the 
                        appropriate threat level; and
                            (iii) assisting in the coordination 
                        of security measures among the private 
                        security forces at such classes of 
                        facilities as the Commission determines 
                        to be appropriate and Federal, State, 
                        and local authorities, as appropriate.
    (b) Backup Power for Certain Emergency Notification 
Systems.--For any licensed nuclear power plants located where 
there is a permanent population, as determined by the 2000 
decennial census, in excess of 15,000,000 within a 50-mile 
radius of the power plant, not later than 18 months after 
enactment of this Act, the Commission shall require that backup 
power to be available for the emergency notification system of 
the power plant, including the emergency siren warning system, 
if the alternating current supply within the 10-mile emergency 
planning zone of the power plant is lost.
    (c) Additional Provisions.--
            (1) Provision of support to university nuclear 
        safety, security, and environmental protection 
        programs.--Section 31 b. of the Atomic Energy Act of 
        1954 (42 U.S.C. 2051(b)) is amended--
                    (A) by striking ``b. The Commission is 
                further authorized to make'' and inserting the 
                following:
    ``b. Grants and Contributions.--The Commission is 
authorized--
            ``(1) to make'';
                    (B) in paragraph (1) (as designated by 
                subparagraph (A)) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(2) to provide grants, loans, cooperative 
        agreements, contracts, and equipment to institutions of 
        higher education (as defined in section 102 of the 
        Higher Education Act of 1965 (20 U.S.C. 1002)) to 
        support courses, studies, training, curricula, and 
        disciplines pertaining to nuclear safety, security, or 
        environmental protection, or any other field that the 
        Commission determines to be critical to the regulatory 
        mission of the Commission.''.
            (2) Recruitment tools.--Chapter 14 of the Atomic 
        Energy Act of 1954 (42 U.S.C. 2201 et seq.) (as amended 
        by subsection (a)(1)) is amended by adding at the end 
        the following:

``SEC. 170F. RECRUITMENT TOOLS.

    ``The Commission may purchase promotional items of nominal 
value for use in the recruitment of individuals for 
employment.''.
            (3) Expenses authorized to be paid by the 
        commission.--Chapter 14 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2201 et seq.) (as amended by paragraph 
        (2)) is amended by adding at the end the following:

``SEC. 170G. EXPENSES AUTHORIZED TO BE PAID BY THE COMMISSION.

    ``The Commission may--
            ``(1) pay transportation, lodging, and subsistence 
        expenses of employees who--
                    ``(A) assist scientific, professional, 
                administrative, or technical employees of the 
                Commission; and
                    ``(B) are students in good standing at an 
                institution of higher education (as defined in 
                section 102 of the Higher Education Act of 1965 
                (20 U.S.C. 1002)) pursuing courses related to 
                the field in which the students are employed by 
                the Commission; and
            ``(2) pay the costs of health and medical services 
        furnished, pursuant to an agreement between the 
        Commission and the Department of State, to employees of 
        the Commission and dependents of the employees serving 
        in foreign countries.''.
            (4) Partnership program with institutions of higher 
        education.--
                    (A) In general.--Chapter 19 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2015 et seq.) (as 
                amended by section 622(a)) is amended by 
                inserting after section 243 the following:

``SEC. 244. PARTNERSHIP PROGRAM WITH INSTITUTIONS OF HIGHER EDUCATION.

    ``a. Definitions.--In this section:
            ``(1) Hispanic-serving institution.--The term 
        `Hispanic-serving institution' has the meaning given 
        the term in section 502(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1101a(a)).
            ``(2) Historically black college and university.--
        The term `historically Black college or university' has 
        the meaning given the term `part B institution' in 
        section 322 of the Higher Education Act of 1965 (20 
        U.S.C. 1061).
            ``(3) Tribal college.--The term `Tribal college' 
        has the meaning given the term `tribally controlled 
        college or university' in section 2(a) of the Tribally 
        Controlled College or University Assistance Act of 1978 
        (25 U.S.C. 1801(a)).
    ``b. Partnership Program.--The Commission may establish and 
participate in activities relating to research, mentoring, 
instruction, and training with institutions of higher 
education, including Hispanic-serving institutions, 
historically Black colleges or universities, and Tribal 
colleges, to strengthen the capacity of the institutions--
            ``(1) to educate and train students (including 
        present or potential employees of the Commission); and
            ``(2) to conduct research in the field of science, 
        engineering, or law, or any other field that the 
        Commission determines is important to the work of the 
        Commission.''.
            (5) Conforming amendments.--The table of sections 
        of the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) 
        (as amended by subsection (a)(2)) is amended--
                    (A) by adding at the end of the items 
                relating to chapter 14 the following:

``Sec. 170F. Recruitment tools.
``Sec. 170G. Expenses authorized to be paid by the Commission.''; and

                    (B) by inserting after the item relating to 
                section 243 the following:

``Sec. 244. Partnership program with institutions of higher 
          education.''.

    (d) Radiation Source Protection.--
            (1) Amendment.--Chapter 14 of the Atomic Energy Act 
        of 1954 (42 U.S.C. 2201 et seq.) (as amended by 
        subsection (c)(3)) is amended by adding at the end the 
        following:

``SEC. 170H. RADIATION SOURCE PROTECTION.

    ``a. Definitions.--In this section:
            ``(1) Code of conduct.--The term `Code of Conduct' 
        means the code entitled the `Code of Conduct on the 
        Safety and Security of Radioactive Sources', approved 
        by the Board of Governors of the International Atomic 
        Energy Agency and dated September 8, 2003.
            ``(2) Radiation source.--The term `radiation 
        source' means--
                    ``(A) a Category 1 Source or a Category 2 
                Source, as defined in the Code of Conduct; and
                    ``(B) any other material that poses a 
                threat such that the material is subject to 
                this section, as determined by the Commission, 
                by regulation, other than spent nuclear fuel 
                and special nuclear materials.
    ``b. Commission Approval.--Not later than 180 days after 
the date of enactment of this section, the Commission shall 
issue regulations prohibiting a person from--
            ``(1) exporting a radiation source, unless the 
        Commission has specifically determined under section 57 
        or 82, consistent with the Code of Conduct, with 
        respect to the exportation, that--
                    ``(A) the recipient of the radiation source 
                may receive and possess the radiation source 
                under the laws and regulations of the country 
                of the recipient;
                    ``(B) the recipient country has the 
                appropriate technical and administrative 
                capability, resources, and regulatory structure 
                to ensure that the radiation source will be 
                managed in a safe and secure manner; and
                    ``(C) before the date on which the 
                radiation source is shipped--
                            ``(i) a notification has been 
                        provided to the recipient country; and
                            ``(ii) a notification has been 
                        received from the recipient country;
                as the Commission determines to be appropriate;
            ``(2) importing a radiation source, unless the 
        Commission has determined, with respect to the 
        importation, that--
                    ``(A) the proposed recipient is authorized 
                by law to receive the radiation source; and
                    ``(B) the shipment will be made in 
                accordance with any applicable Federal or State 
                law or regulation; and
            ``(3) selling or otherwise transferring ownership 
        of a radiation source, unless the Commission--
                    ``(A) has determined that the licensee has 
                verified that the proposed recipient is 
                authorized under law to receive the radiation 
                source; and
                    ``(B) has required that the transfer shall 
                be made in accordance with any applicable 
                Federal or State law or regulation.
    ``c. Tracking System.--(1)(A) Not later than 1 year after 
the date of enactment of this section, the Commission shall 
issue regulations establishing a mandatory tracking system for 
radiation sources in the United States.
    ``(B) In establishing the tracking system under 
subparagraph (A), the Commission shall coordinate with the 
Secretary of Transportation to ensure compatibility, to the 
maximum extent practicable, between the tracking system and any 
system established by the Secretary of Transportation to track 
the shipment of radiation sources.
    ``(2) The tracking system under paragraph (1) shall--
            ``(A) enable the identification of each radiation 
        source by serial number or other unique identifier;
            ``(B) require reporting within 7 days of any change 
        of possession of a radiation source;
            ``(C) require reporting within 24 hours of any loss 
        of control of, or accountability for, a radiation 
        source; and
            ``(D) provide for reporting under subparagraphs (B) 
        and (C) through a secure Internet connection.
    ``d. Penalty.--A violation of a regulation issued under 
subsection a. or b. shall be punishable by a civil penalty not 
to exceed $1,000,000.
    ``e. National Academy of Sciences Study.--(1) Not later 
than 60 days after the date of enactment of this section, the 
Commission shall enter into an arrangement with the National 
Academy of Sciences under which the National Academy of 
Sciences shall conduct a study of industrial, research, and 
commercial uses for radiation sources.
    ``(2) The study under paragraph (1) shall include a review 
of uses of radiation sources in existence on the date on which 
the study is conducted, including an identification of any 
industrial or other process that--
            ``(A) uses a radiation source that could be 
        replaced with an economically and technically 
        equivalent (or improved) process that does not require 
        the use of a radiation source; or
            ``(B) may be used with a radiation source that 
        would pose a lower risk to public health and safety in 
        the event of an accident or attack involving the 
        radiation source.
    ``(3) Not later than 2 years after the date of enactment of 
this section, the Commission shall submit to Congress the 
results of the study under paragraph (1).
    ``f. Task Force on Radiation Source Protection and 
Security.--(1) There is established a task force on radiation 
source protection and security (referred to in this section as 
the `task force').
    ``(2)(A) The chairperson of the task force shall be the 
Chairperson of the Commission (or a designee).
    ``(B) The membership of the task force shall consist of the 
following:
            ``(i) The Secretary of Homeland Security (or a 
        designee).
            ``(ii) The Secretary of Defense (or a designee).
            ``(iii) The Secretary of Energy (or a designee).
            ``(iv) The Secretary of Transportation (or a 
        designee).
            ``(v) The Attorney General (or a designee).
            ``(vi) The Secretary of State (or a designee).
            ``(vii) The Director of National Intelligence (or a 
        designee).
            ``(viii) The Director of the Central Intelligence 
        Agency (or a designee).
            ``(ix) The Director of the Federal Emergency 
        Management Agency (or a designee).
            ``(x) The Director of the Federal Bureau of 
        Investigation (or a designee).
            ``(xi) The Administrator of the Environmental 
        Protection Agency (or a designee).
    ``(3)(A) The task force, in consultation with Federal, 
State, and local agencies, the Conference of Radiation Control 
Program Directors, and the Organization of Agreement States, 
and after public notice and an opportunity for comment, shall 
evaluate, and provide recommendations relating to, the security 
of radiation sources in the United States from potential 
terrorist threats, including acts of sabotage, theft, or use of 
a radiation source in a radiological dispersal device.
    ``(B) Not later than 1 year after the date of enactment of 
this section, and not less than once every 4 years thereafter, 
the task force shall submit to Congress and the President a 
report, in unclassified form with a classified annex if 
necessary, providing recommendations, including recommendations 
for appropriate regulatory and legislative changes, for--
            ``(i) a list of additional radiation sources that 
        should be required to be secured under this Act, based 
        on the potential attractiveness of the sources to 
        terrorists and the extent of the threat to public 
        health and safety of the sources, taking into 
        consideration--
                    ``(I) radiation source radioactivity 
                levels;
                    ``(II) radioactive half-life of a radiation 
                source;
                    ``(III) dispersability;
                    ``(IV) chemical and material form;
                    ``(V) for radioactive materials with a 
                medical use, the availability of the sources to 
                physicians and patients for medical treatment; 
                and
                    ``(VI) any other factor that the 
                Chairperson of the Commission determines to be 
                appropriate;
            ``(ii) the establishment of, or modifications to, a 
        national system for recovery of lost or stolen 
        radiation sources;
            ``(iii) the storage of radiation sources that are 
        not used in a safe and secure manner as of the date on 
        which the report is submitted;
            ``(iv) modifications to the national tracking 
        system for radiation sources;
            ``(v) the establishment of, or modifications to, a 
        national system (including user fees and other methods) 
        to provide for the proper disposal of radiation sources 
        secured under this Act;
            ``(vi) modifications to export controls on 
        radiation sources to ensure that foreign recipients of 
        radiation sources are able and willing to adequately 
        control radiation sources from the United States;
            ``(vii)(I) any alternative technologies available 
        as of the date on which the report is submitted that 
        may perform some or all of the functions performed by 
        devices or processes that employ radiation sources; and
            ``(II) the establishment of appropriate regulations 
        and incentives for the replacement of the devices and 
        processes described in subclause (I)--
                    ``(aa) with alternative technologies in 
                order to reduce the number of radiation sources 
                in the United States; or
                    ``(bb) with radiation sources that would 
                pose a lower risk to public health and safety 
                in the event of an accident or attack involving 
                the radiation source; and
            ``(viii) the creation of, or modifications to, 
        procedures for improving the security of use, 
        transportation, and storage of radiation sources, 
        including--
                    ``(I) periodic audits or inspections by the 
                Commission to ensure that radiation sources are 
                properly secured and can be fully accounted 
                for;
                    ``(II) evaluation of the security measures 
                by the Commission;
                    ``(III) increased fines for violations of 
                Commission regulations relating to security and 
                safety measures applicable to licensees that 
                possess radiation sources;
                    ``(IV) criminal and security background 
                checks for certain individuals with access to 
                radiation sources (including individuals 
                involved with transporting radiation sources);
                    ``(V) requirements for effective and timely 
                exchanges of information relating to the 
                results of criminal and security background 
                checks between the Commission and any State 
                with which the Commission has entered into an 
                agreement under section 274 b.;
                    ``(VI) assurances of the physical security 
                of facilities that contain radiation sources 
                (including facilities used to temporarily store 
                radiation sources being transported); and
                    ``(VII) the screening of shipments to 
                facilities that the Commission determines to be 
                particularly at risk for sabotage of radiation 
                sources to ensure that the shipments do not 
                contain explosives.
    ``g. Action by Commission.--Not later than 60 days after 
the date of receipt by Congress and the President of a report 
under subsection f.(3)(B), the Commission, in accordance with 
the recommendations of the task force, shall--
            ``(1) take any action the Commission determines to 
        be appropriate, including revising the system of the 
        Commission for licensing radiation sources; and
            ``(2) ensure that States that have entered into 
        agreements with the Commission under section 274 b. 
        take similar action in a timely manner.''.
            (2) Conforming amendment.--The table of sections of 
        the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) 
        (as amended by subsection (c)(5)(A)) is amended by 
        adding at the end of the items relating to chapter 14 
        the following:

``Sec. 170H. Radiation source protection.''.

    (e) Treatment of Accelerator-Produced and Other Radioactive 
Material as Byproduct Material.--
            (1) Definition of byproduct material.--Section 11 
        e. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e)) 
        is amended--
                    (A) by striking ``means (1) any 
                radioactive'' and inserting the following: 
                ``means--
            ``(1) any radioactive'';
                    (B) by striking ``material, and (2) the 
                tailings'' and inserting the following: 
                ``material; ``(2) the tailings'';
                    (C) by striking ``content.'' and inserting 
                the following: ``content;
            ``(3)(A) any discrete source of radium-226 that is 
        produced, extracted, or converted after extraction, 
        before, on, or after the date of enactment of this 
        paragraph for use for a commercial, medical, or 
        research activity; or
            ``(B) any material that--
                    ``(i) has been made radioactive by use of a 
                particle accelerator; and
                    ``(ii) is produced, extracted, or converted 
                after extraction, before, on, or after the date 
                of enactment of this paragraph for use for a 
                commercial, medical, or research activity; and
            ``(4) any discrete source of naturally occurring 
        radioactive material, other than source material, 
        that--
                    ``(A) the Commission, in consultation with 
                the Administrator of the Environmental 
                Protection Agency, the Secretary of Energy, the 
                Secretary of Homeland Security, and the head of 
                any other appropriate Federal agency, 
                determines would pose a threat similar to the 
                threat posed by a discrete source of radium-226 
                to the public health and safety or the common 
                defense and security; and
                    ``(B) before, on, or after the date of 
                enactment of this paragraph is extracted or 
                converted after extraction for use in a 
                commercial, medical, or research activity.''.
            (2) Agreements with governors.--Section 274 b. of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2021(b)) is 
        amended by striking ``State--'' and all that follows 
        through paragraph (4) and inserting the following: 
        ``State:
            ``(1) Byproduct materials (as defined in section 11 
        e.).
            ``(2) Source materials.
            ``(3) Special nuclear materials in quantities not 
        sufficient to form a critical mass.''.
            (3) Waste disposal.--
                    (A) Domestic distribution.--Section 81 of 
                the Atomic Energy Act of 1954 (42 U.S.C. 2111) 
                is amended--
                            (i) by striking ``No person may'' 
                        and inserting the following:
    ``a. In General.--No person may''; and
                            (ii) by adding at the end the 
                        following:
    ``b. Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), byproduct material, as defined in paragraphs (3) 
        and (4) of section 11 e., may only be transferred to 
        and disposed of in a disposal facility that--
                    ``(A) is adequate to protect public health 
                and safety; and
                    ``(B)(i) is licensed by the Commission; or
                    ``(ii) is licensed by a State that has 
                entered into an agreement with the Commission 
                under section 274 b., if the licensing 
                requirements of the State are compatible with 
                the licensing requirements of the Commission.
            ``(2) Effect of subsection.--Nothing in this 
        subsection affects the authority of any entity to 
        dispose of byproduct material, as defined in paragraphs 
        (3) and (4) of section 11 e., at a disposal facility in 
        accordance with any Federal or State solid or hazardous 
        waste law, including the Solid Waste Disposal Act (42 
        U.S.C. 6901 et seq.).
    ``c. Treatment as Low-Level Radioactive Waste.--Byproduct 
material, as defined in paragraphs (3) and (4) of section 11 
e., disposed of under this section shall not be considered to 
be low-level radioactive waste for the purposes of--
            ``(1) section 2 of the Low-Level Radioactive Waste 
        Policy Act (42 U.S.C. 2021b); or
            ``(2) carrying out a compact that is--
                    ``(A) entered into in accordance with that 
                Act (42 U.S.C. 2021b et seq.); and
                    ``(B) approved by Congress.''.
                    (B) Definition of low-level radioactive 
                waste.--Section 2(9) of the Low-Level 
                Radioactive Waste Policy Act (42 U.S.C. 
                2021b(9)) is amended--
                            (i) by redesignating subparagraphs 
                        (A) and (B) as clauses (i) and (ii), 
                        respectively, and indenting the clauses 
                        appropriately;
                            (ii) in the matter preceding clause 
                        (i) (as redesignated by subparagraph 
                        (A)) by striking ``The term'' and 
                        inserting the following:
                    ``(A) In general.--The term''; and
                            (iii) by adding at the end the 
                        following:
                    ``(B) Exclusion.--The term `low-level 
                radioactive waste' does not include byproduct 
                material (as defined in paragraphs (3) and (4) 
                of section 11 e. of the Atomic Energy Act of 
                1954 (42 U.S.C. 2014(e)).''.
            (4) Final regulations.--
                    (A) Regulations.--
                            (i) In general.--Not later than 18 
                        months after the date of enactment of 
                        this Act, the Commission, after 
                        consultation with States and other 
                        stakeholders, shall issue final 
                        regulations establishing such 
                        requirements as the Commission 
                        determines to be necessary to carry out 
                        this section and the amendments made by 
                        this section.
                            (ii) Inclusions.--The regulations 
                        shall include a definition of the term 
                        ``discrete source'' for purposes of 
                        paragraphs (3) and (4) of section 11 e. 
                        of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2014(e)) (as amended by 
                        paragraph (1)).
                    (B) Cooperation.--In promulgating 
                regulations under paragraph (1), the Commission 
                shall, to the maximum extent practicable--
                            (i) cooperate with States; and
                            (ii) use model State standards in 
                        existence on the date of enactment of 
                        this Act.
                    (C) Transition plan.--
                            (i) Definition of byproduct 
                        material.--In this paragraph, the term 
                        ``byproduct material'' has the meaning 
                        given the term in paragraphs (3) and 
                        (4) of section 11 e. of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2014(e)) 
                        (as amended by paragraph (1)).
                            (ii) Preparation and publication.--
                        To facilitate an orderly transition of 
                        regulatory authority with respect to 
                        byproduct material, the Commission, in 
                        issuing regulations under subparagraph 
                        (A), shall prepare and publish a 
                        transition plan for--
                                    (I) States that have not, 
                                before the date on which the 
                                plan is published, entered into 
                                an agreement with the 
                                Commission under section 274 b. 
                                of the Atomic Energy Act of 
                                1954 (42 U.S.C. 2021(b)); and
                                    (II) States that have 
                                entered into an agreement with 
                                the Commission under that 
                                section before the date on 
                                which the plan is published.
                            (iii) Inclusions.--The transition 
                        plan under clause (ii) shall include--
                                    (I) a description of the 
                                conditions under which a State 
                                may exercise authority over 
                                byproduct material; and
                                    (II) a statement of the 
                                Commission that any agreement 
                                covering byproduct material, as 
                                defined in paragraph (1) or (2) 
                                of section 11 e. of the Atomic 
                                Energy Act of 1954 (42 U.S.C. 
                                2014(e)), entered into between 
                                the Commission and a State 
                                under section 274 b. of that 
                                Act (42 U.S.C. 2021(b)) before 
                                the date of publication of the 
                                transition plan shall be 
                                considered to include byproduct 
                                material, as defined in 
                                paragraph (3) or (4) of section 
                                11 e. of that Act (42 U.S.C. 
                                2014(e)) (as amended by 
                                paragraph (1)), if the Governor 
                                of the State certifies to the 
                                Commission on the date of 
                                publication of the transition 
                                plan that--
                                            (aa) the State has 
                                        a program for licensing 
                                        byproduct material, as 
                                        defined in paragraph 
                                        (3) or (4) of section 
                                        11e. of the Atomic 
                                        Energy Act of 1954, 
                                        that is adequate to 
                                        protect the public 
                                        health and safety, as 
                                        determined by the 
                                        Commission; and
                                            (bb) the State 
                                        intends to continue to 
                                        implement the 
                                        regulatory 
                                        responsibility of the 
                                        State with respect to 
                                        the byproduct material.
                    (D) Availability of radiopharmaceuticals.--
                In promulgating regulations under subparagraph 
                (A), the Commission shall consider the impact 
                on the availability of radiopharmaceuticals 
                to--
                            (i) physicians; and
                            (ii) patients the medical treatment 
                        of which relies on 
                        radiopharmaceuticals.
            (5) Waivers.--
                    (A) In general.--Except as provided in 
                subparagraph (B), the Commission may grant a 
                waiver to any entity of any requirement under 
                this section or an amendment made by this 
                section with respect to a matter relating to 
                byproduct material (as defined in paragraphs 
                (3) and (4) of section 11 e. of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2014(e)) (as 
                amended by paragraph (1))) if the Commission 
                determines that the waiver is in accordance 
                with the protection of the public health and 
                safety and the promotion of the common defense 
                and security.
                    (B) Exceptions.--
                            (i) In general.--The Commission may 
                        not grant a waiver under subparagraph 
                        (A) with respect to--
                                    (I) any requirement under 
                                the amendments made by 
                                subsection (c)(1);
                                    (II) a matter relating to 
                                an importation into, or 
                                exportation from, the United 
                                States for a period ending 
                                after the date that is 1 year 
                                after the date of enactment of 
                                this Act; or
                                    (III) any other matter for 
                                a period ending after the date 
                                that is 4 years after the date 
                                of enactment of this Act.
                            (ii) Waivers to states.--The 
                        Commission shall terminate any waiver 
                        granted to a State under subparagraph 
                        (A) if the Commission determines that--
                                    (I) the State has entered 
                                into an agreement with the 
                                Commission under section 274 b. 
                                of the Atomic Energy Act of 
                                1954 (42 U.S.C. 2021(b));
                                    (II) the agreement 
                                described in subclause (I) 
                                covers byproduct material (as 
                                described in paragraph (3) or 
                                (4) of section 11 e. of the 
                                Atomic Energy Act of 1954 (42 
                                U.S.C. 2014(e)) (as amended by 
                                paragraph (1))); and
                                    (III) the program of the 
                                State for licensing such 
                                byproduct material is adequate 
                                to protect the public health 
                                and safety.
                    (C) Publication.--The Commission shall 
                publish in the Federal Register a notice of any 
                waiver granted under this subsection.

SEC. 652. FINGERPRINTING AND CRIMINAL HISTORY RECORD CHECKS.

    Section 149 of the Atomic Energy Act of 1954 (42 U.S.C. 
2169) is amended--
            (1) in subsection a.--
                    (A) by striking ``a. The Nuclear'' and all 
                that follows through ``section 147.'' and 
                inserting the following:
    ``a.(1)(A)(i) The Commission shall require each individual 
or entity described in clause (ii) to fingerprint each 
individual described in subparagraph (B) before the individual 
described in subparagraph (B) is permitted access under 
subparagraph (B).
    ``(ii) The individuals and entities referred to in clause 
(i) are individuals and entities that, on or before the date on 
which an individual is permitted access under subparagraph 
(B)--
            ``(I) are licensed or certified to engage in an 
        activity subject to regulation by the Commission;
            ``(II) have filed an application for a license or 
        certificate to engage in an activity subject to 
        regulation by the Commission; or
            ``(III) have notified the Commission in writing of 
        an intent to file an application for licensing, 
        certification, permitting, or approval of a product or 
        activity subject to regulation by the Commission.
    ``(B) The Commission shall require to be fingerprinted any 
individual who--
            ``(i) is permitted unescorted access to--
                    ``(I) a utilization facility; or
                    ``(II) radioactive material or other 
                property subject to regulation by the 
                Commission that the Commission determines to be 
                of such significance to the public health and 
                safety or the common defense and security as to 
                warrant fingerprinting and background checks; 
                or
            ``(ii) is permitted access to safeguards 
        information under section 147.'';
                    (B) by striking ``All fingerprints obtained 
                by a licensee or applicant as required in the 
                preceding sentence'' and inserting the 
                following:
    ``(2) All fingerprints obtained by an individual or entity 
as required in paragraph (1)'';
                    (C) by striking ``The costs of any 
                identification and records check conducted 
                pursuant to the preceding sentence shall be 
                paid by the licensee or applicant.'' and 
                inserting the following:
    ``(3) The costs of an identification or records check under 
paragraph (2) shall be paid by the individual or entity 
required to conduct the fingerprinting under paragraph 
(1)(A).''; and
                    (D) by striking ``Notwithstanding any other 
                provision of law, the Attorney General may 
                provide all the results of the search to the 
                Commission, and, in accordance with regulations 
                prescribed under this section, the Commission 
                may provide such results to licensee or 
                applicant submitting such fingerprints.'' and 
                inserting the following:
    ``(4) Notwithstanding any other provision of law--
            ``(A) the Attorney General may provide any result 
        of an identification or records check under paragraph 
        (2) to the Commission; and
            ``(B) the Commission, in accordance with 
        regulations prescribed under this section, may provide 
        the results to the individual or entity required to 
        conduct the fingerprinting under paragraph (1)(A).'';
            (2) in subsection c.--
                    (A) by striking ``, subject to public 
                notice and comment, regulations--'' and 
                inserting ``requirements--''; and
                    (B) in paragraph (2)(B), by striking 
                ``unescorted access to the facility of a 
                licensee or applicant'' and inserting 
                ``unescorted access to a utilization facility, 
                radioactive material, or other property 
                described in subsection a.(1)(B)'';
            (3) by redesignating subsection d. as subsection 
        e.; and
            (4) by inserting after subsection c. the following:
    ``d. The Commission may require a person or individual to 
conduct fingerprinting under subsection a.(1) by authorizing or 
requiring the use of any alternative biometric method for 
identification that has been approved by--
            ``(1) the Attorney General; and
            ``(2) the Commission, by regulation.''.

SEC. 653. USE OF FIREARMS BY SECURITY PERSONNEL.

    The Atomic Energy Act of 1954 is amended by inserting after 
section 161 (42 U.S.C. 2201) the following:

``SEC. 161A. USE OF FIREARMS BY SECURITY PERSONNEL.

    ``a. Definitions.--In this section, the terms `handgun', 
`rifle', `shotgun', `firearm', `ammunition', `machinegun', 
`short-barreled shotgun', and `short-barreled rifle' have the 
meanings given the terms in section 921(a) of title 18, United 
States Code.
    ``b. Authorization.--Notwithstanding subsections (a)(4), 
(a)(5), (b)(2), (b)(4), and (o) of section 922 of title 18, 
United States Code, section 925(d)(3) of title 18, United 
States Code, section 5844 of the Internal Revenue Code of 1986, 
and any law (including regulations) of a State or a political 
subdivision of a State that prohibits the transfer, receipt, 
possession, transportation, importation, or use of a handgun, a 
rifle, a shotgun, a short-barreled shotgun, a short-barreled 
rifle, a machinegun, a semiautomatic assault weapon, ammunition 
for any such gun or weapon, or a large capacity ammunition 
feeding device, in carrying out the duties of the Commission, 
the Commission may authorize the security personnel of any 
licensee or certificate holder of the Commission (including an 
employee of a contractor of such a licensee or certificate 
holder) to transfer, receive, possess, transport, import, and 
use 1 or more such guns, weapons, ammunition, or devices, if 
the Commission determines that--
            ``(1) the authorization is necessary to the 
        discharge of the official duties of the security 
        personnel; and
            ``(2) the security personnel--
                    ``(A) are not otherwise prohibited from 
                possessing or receiving a firearm under Federal 
                or State laws relating to possession of 
                firearms by a certain category of persons;
                    ``(B) have successfully completed any 
                requirement under this section for training in 
                the use of firearms and tactical maneuvers;
                    ``(C) are engaged in the protection of--
                            ``(i) a facility owned or operated 
                        by a licensee or certificate holder of 
                        the Commission that is designated by 
                        the Commission; or
                            ``(ii) radioactive material or 
                        other property owned or possessed by a 
                        licensee or certificate holder of the 
                        Commission, or that is being 
                        transported to or from a facility owned 
                        or operated by such a licensee or 
                        certificate holder, and that has been 
                        determined by the Commission to be of 
                        significance to the common defense and 
                        security or public health and safety; 
                        and
                    ``(D) are discharging the official duties 
                of the security personnel in transferring, 
                receiving, possessing, transporting, or 
                importing the weapons, ammunition, or devices.
    ``c. Background Checks.--A person that receives, possesses, 
transports, imports, or uses a weapon, ammunition, or a device 
under subsection (b) shall be subject to a background check by 
the Attorney General, based on fingerprints and including a 
background check under section 103(b) of the Brady Handgun 
Violence Prevention Act (Public Law 103-159; 18 U.S.C. 922 
note) to determine whether the person is prohibited from 
possessing or receiving a firearm under Federal or State law.
    ``d. Effective Date.--This section takes effect on the date 
on which guidelines are issued by the Commission, with the 
approval of the Attorney General, to carry out this section.''

SEC. 654. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

    Section 229 of the Atomic Energy Act of 1954 (42 U.S.C. 
2278a) is amended--
            (1) by striking ``Sec. 229, Trespass Upon 
        Commission Installations.--'' and inserting the 
        following:

``SEC. 229. TRESPASS ON COMMISSION INSTALLATIONS.'';

            (2) by adjusting the indentations of subsections 
        a., b., and c. so as to reflect proper subsection 
        indentations; and
            (3) in subsection a.--
                    (A) in the first sentence, by striking ``a. 
                The'' and inserting the following:
    ``a.(1) The'';
                    (B) in the second sentence, by striking 
                ``Every'' and inserting the following:
    ``(2) Every''; and
                    (C) in paragraph (1) (as designated by 
                subparagraph (A))--
                            (i) by striking ``or in the 
                        custody'' and inserting ``in the 
                        custody''; and
                            (ii) by inserting ``, or subject to 
                        the licensing authority of the 
                        Commission or certification by the 
                        Commission under this Act or any other 
                        Act'' before the period.

SEC. 655. SABOTAGE OF NUCLEAR FACILITIES, FUEL, OR DESIGNATED MATERIAL.

    (a) In General.--Section 236a. of the Atomic Energy Act of 
1954 (42 U.S.C. 2284(a)) is amended--
            (1) in paragraph (2), by striking ``storage 
        facility'' and inserting ``treatment, storage, or 
        disposal facility'';
            (2) in paragraph (3)--
                    (A) by striking ``such a utilization 
                facility'' and inserting ``a utilization 
                facility licensed under this Act''; and
                    (B) by striking ``or'' at the end;
            (3) in paragraph (4)--
                    (A) by striking ``facility licensed'' and 
                inserting ``, uranium conversion, or nuclear 
                fuel fabrication facility licensed or 
                certified''; and
                    (B) by striking the comma at the end and 
                inserting a semicolon; and
            (4) by inserting after paragraph (4) the following:
            ``(5) any production, utilization, waste storage, 
        waste treatment, waste disposal, uranium enrichment, 
        uranium conversion, or nuclear fuel fabrication 
        facility subject to licensing or certification under 
        this Act during construction of the facility, if the 
        destruction or damage caused or attempted to be caused 
        could adversely affect public health and safety during 
        the operation of the facility;
            ``(6) any primary facility or backup facility from 
        which a radiological emergency preparedness alert and 
        warning system is activated; or
            ``(7) any radioactive material or other property 
        subject to regulation by the Commission that, before 
        the date of the offense, the Commission determines, by 
        order or regulation published in the Federal Register, 
        is of significance to the public health and safety or 
        to common defense and security;''.
    (b) Conforming Amendment.--Section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284) is amended by striking 
``intentionally and willfully'' each place it appears and 
inserting ``knowingly''.

SEC. 656. SECURE TRANSFER OF NUCLEAR MATERIALS.

    (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 
(42 U.S.C. 2201-2210b) (as amended by section 651(d)(1)) is 
amended by adding at the end the following new section:

``SEC. 170I. SECURE TRANSFER OF NUCLEAR MATERIALS.

    ``a. The Commission shall establish a system to ensure that 
materials described in subsection b., when transferred or 
received in the United States by any party pursuant to an 
import or export license issued pursuant to this Act, are 
accompanied by a manifest describing the type and amount of 
materials being transferred or received. Each individual 
receiving or accompanying the transfer of such materials shall 
be subject to a security background check conducted by 
appropriate Federal entities.
    ``b. Except as otherwise provided by the Commission by 
regulation, the materials referred to in subsection a. are 
byproduct materials, source materials, special nuclear 
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as defined 
in section 2(16) of the Nuclear Waste Policy Act of 1982 (42 
U.S.C. 10101(16))).''.
    (b) Regulations.--Not later than 1 year after the date of 
the enactment of this Act, and from time to time thereafter as 
it considers necessary, the Nuclear Regulatory Commission shall 
issue regulations identifying radioactive materials or classes 
of individuals that, consistent with the protection of public 
health and safety and the common defense and security, are 
appropriate exceptions to the requirements of section 170D of 
the Atomic Energy Act of 1954, as added by subsection (a) of 
this section.
    (c) Effective Date.--The amendment made by subsection (a) 
shall take effect upon the issuance of regulations under 
subsection (b), except that the background check requirement 
shall become effective on a date established by the Commission.
    (d) Effect on Other Law.--Nothing in this section or the 
amendment made by this section shall waive, modify, or affect 
the application of chapter 51 of title 49, United States Code, 
part A of subtitle V of title 49, United States Code, part B of 
subtitle VI of title 49, United States Code, and title 23, 
United States Code.
    (e) Conforming Amendment.--The table of sections of the 
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by 
subsection (a)) is amended by adding at the end of the items 
relating to chapter 14 the following:

``Sec. 170I. Secure transfer of nuclear materials.''.

SEC. 657. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.

    Before issuing a license for a utilization facility, the 
Nuclear Regulatory Commission shall consult with the Department 
of Homeland Security concerning the potential vulnerabilities 
of the location of the proposed facility to terrorist attack.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

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

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

SEC. 702. INCREMENTAL COST ALLOCATION.

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

SEC. 703. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

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

``SEC. 514. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any covered person subject 
to section 501 and any State subject to section 507(o) may 
petition the Secretary for a waiver of the applicable 
requirements of section 501 or 507(o).
    ``(b) Grant of Waiver.--The Secretary shall grant a waiver 
of the requirements of section 501 or 507(o) on a showing that 
the fleet owned, operated, leased, or otherwise controlled by 
the State or covered person--
            ``(1) will achieve a reduction in the annual 
        consumption of petroleum fuels by the fleet equal to--
                    ``(A) the reduction in consumption of 
                petroleum that would result from 100 percent 
                cumulative compliance with the fuel use 
                requirements of section 501; or
                    ``(B) in the case of an entity covered 
                under section 507(o), a reduction equal to the 
                annual consumption by the State entity of 
                alternative fuels if all of the cumulative 
                alternative fuel vehicles of the State entity 
                given credit under section 508 were to use 
                alternative fuel 100 percent of the time; and
            ``(2) is in compliance with all applicable vehicle 
        emission standards established by the Administrator of 
        the Environmental Protection Agency under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(c) Reporting Requirement.--Not later than December 31 of 
a model year, any State or covered person granted a waiver 
under this section for the preceding model year shall submit to 
the Secretary an annual report that--
            ``(1) certifies the quantity of the petroleum motor 
        fuel reduction of the State or covered person during 
        the preceding model year; and
            ``(2) projects the baseline quantity of the 
        petroleum motor fuel reduction of the State or covered 
        person during the following model year.
    ``(d) Revocation of Waiver.--If a State or covered person 
that receives a waiver under this section fails to comply with 
this section, the Secretary--
            ``(1) shall revoke the waiver; and
            ``(2) may impose on the State or covered person a 
        penalty under section 512.''.
    (b) Conforming Amendment.--Section 511 of the Energy Policy 
Act of 1992 (42 U.S.C. 13261) is amended by striking ``or 507'' 
and inserting ``507, or 514''.
    (c) Table of Contents Amendment.--The table of contents of 
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
amended by striking the item relating to section 514 and 
inserting the following:

``Sec. 514. Alternative compliance.
``Sec. 515. Authorization of appropriations.''.

SEC. 704. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall complete a study 
to determine the effect that titles III, IV, and V of the 
Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.) have had 
on--
            (1) the development of alternative fueled vehicle 
        technology;
            (2) the availability of that technology in the 
        market; and
            (3) the cost of alternative fueled vehicles.
    (b) Topics.--As part of the study under subsection (a), the 
Secretary shall specifically identify--
            (1) the number of alternative fueled vehicles 
        acquired by fleets or covered persons required to 
        acquire alternative fueled vehicles;
            (2) the quantity, by type, of alternative fuel 
        actually used in alternative fueled vehicles acquired 
        by fleets or covered persons;
            (3) the quantity of petroleum displaced by the use 
        of alternative fuels in alternative fueled vehicles 
        acquired by fleets or covered persons;
            (4) the direct and indirect costs of compliance 
        with requirements under titles III, IV, and V of the 
        Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.), 
        including--
                    (A) vehicle acquisition requirements 
                imposed on fleets or covered persons;
                    (B) administrative and recordkeeping 
                expenses;
                    (C) fuel and fuel infrastructure costs;
                    (D) associated training and employee 
                expenses; and
                    (E) any other factors or expenses the 
                Secretary determines to be necessary to compile 
                reliable estimates of the overall costs and 
                benefits of complying with programs under those 
                titles for fleets, covered persons, and the 
                national economy;
            (5) the existence of obstacles preventing 
        compliance with vehicle acquisition requirements and 
        increased use of alternative fuel in alternative fueled 
        vehicles acquired by fleets or covered persons; and
            (6) the projected impact of amendments to the 
        Energy Policy Act of 1992 made by this title.
    (c) Report.--Upon completion of the study under this 
section, the Secretary shall submit to Congress a report that 
describes the results of the study and includes any 
recommendations of the Secretary for legislative or 
administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV, and V of the Energy 
Policy Act of 1992 (42 U.S.C. 13211 et seq.).

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

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

SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZATION 
                    INITIATIVE.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term eligible entity 
        means--
                    (A) a for-profit corporation;
                    (B) a nonprofit corporation; or
                    (C) an institution of higher education.
            (2) Program.--The term ``program'' means a program 
        established under subsection (b).
    (b) Establishment.--The Secretary shall establish a program 
to improve technologies for the commercialization of--
            (1) a combination hybrid/flexible fuel vehicle; or
            (2) a plug-in hybrid/flexible fuel vehicle.
    (c) Grants.--In carrying out the program, the Secretary 
shall provide grants that give preference to proposals that--
            (1) achieve the greatest reduction in miles per 
        gallon of petroleum fuel consumption;
            (2) achieve not less than 250 miles per gallon of 
        petroleum fuel consumption; and
            (3) have the greatest potential of 
        commercialization to the general public within 5 years.
    (d) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall publish in the 
Federal Register procedures to verify--
            (1) the hybrid/flexible fuel vehicle technologies 
        to be demonstrated; and
            (2) that grants are administered in accordance with 
        this section.
    (e) Report.--Not later than 260 days after the date of 
enactment of this Act, and annually thereafter, the Secretary 
shall submit to Congress a report that--
            (1) identifies the grant recipients;
            (2) describes the technologies to be funded under 
        the program;
            (3) assesses the feasibility of the technologies 
        described in paragraph (2) in meeting the goals 
        described in subsection (c);
            (4) identifies applications submitted for the 
        program that were not funded; and
            (5) makes recommendations for Federal legislation 
        to achieve commercialization of the technology 
        demonstrated.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section, to remain 
available until expended--
            (1) $3,000,000 for fiscal year 2006;
            (2) $7,000,000 for fiscal year 2007;
            (3) $10,000,000 for fiscal year 2008; and
            (4) $20,000,000 for fiscal year 2009.

SEC. 707. EMERGENCY EXEMPTION.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
13211) is amended in paragraph (9)(E) by inserting before the 
semicolon at the end ``, including vehicles directly used in 
the emergency repair of transmission lines and in the 
restoration of electricity service following power outages, as 
determined by the Secretary''.

  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                        PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

    The Secretary shall accelerate efforts directed toward the 
improvement of batteries and other rechargeable energy storage 
systems, power electronics, hybrid systems integration, and 
other technologies for use in hybrid vehicles.

SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.

    (a) Program.--The Secretary shall establish a program to 
encourage domestic production and sales of efficient hybrid and 
advanced diesel vehicles. The program shall include grants to 
automobile manufacturers to encourage domestic production of 
efficient hybrid and advanced diesel vehicles.
    (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 each of the fiscal 
years 2006 through 2015.

                       PART 2--ADVANCED VEHICLES

SEC. 721. PILOT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive 
grant pilot program (referred to in this part as the ``pilot 
program''), to be administered through the Clean Cities Program 
of the Department, to provide not more than 30 geographically 
dispersed project grants to State governments, local 
governments, or metropolitan transportation authorities to 
carry out a project or projects for the purposes described in 
subsection (b).
    (b) Grant Purposes.--A grant under this section may be used 
for the following purposes:
            (1) The acquisition of alternative fueled vehicles 
        or fuel cell vehicles, including--
                    (A) passenger vehicles (including 
                neighborhood electric vehicles); and
                    (B) motorized 2-wheel bicycles or other 
                vehicles for use by law enforcement personnel 
                or other State or local government or 
                metropolitan transportation authority 
                employees.
            (2) The acquisition of alternative fueled vehicles, 
        hybrid vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or 
                services; and
                    (C) ground support vehicles at public 
                airports (including vehicles to carry baggage 
                or push or pull airplanes toward or away from 
                terminal gates).
            (3) The acquisition of ultra-low sulfur diesel 
        vehicles.
            (4) Installation or acquisition of infrastructure 
        necessary to directly support an alternative fueled 
        vehicle, fuel cell vehicle, or hybrid vehicle project 
        funded by the grant, including fueling and other 
        support equipment.
            (5) Operation and maintenance of vehicles, 
        infrastructure, and equipment acquired as part of a 
        project funded by the grant.
    (c) Applications.--
            (1) Requirements.--
                    (A) In general.--The Secretary shall issue 
                requirements for applying for grants under the 
                pilot program.
                    (B) Minimum requirements.--At a minimum, 
                the Secretary shall require that an application 
                for a grant--
                            (i) be submitted by the head of a 
                        State or local government or a 
                        metropolitan transportation authority, 
                        or any combination thereof, and a 
                        registered participant in the Clean 
                        Cities Program of the Department; and
                            (ii) include--
                                    (I) a description of the 
                                project proposed in the 
                                application, including how the 
                                project meets the requirements 
                                of this part;
                                    (II) an estimate of the 
                                ridership or degree of use of 
                                the project;
                                    (III) an estimate of the 
                                air pollution emissions reduced 
                                and fossil fuel displaced as a 
                                result of the project, and a 
                                plan to collect and disseminate 
                                environmental data, related to 
                                the project to be funded under 
                                the grant, over the life of the 
                                project;
                                    (IV) a description of how 
                                the project will be sustainable 
                                without Federal assistance 
                                after the completion of the 
                                term of the grant;
                                    (V) a complete description 
                                of the costs of the project, 
                                including acquisition, 
                                construction, operation, and 
                                maintenance costs over the 
                                expected life of the project;
                                    (VI) a description of which 
                                costs of the project will be 
                                supported by Federal assistance 
                                under this part; and
                                    (VII) documentation to the 
                                satisfaction of the Secretary 
                                that diesel fuel containing 
                                sulfur at not more than 15 
                                parts per million is available 
                                for carrying out the project, 
                                and a commitment by the 
                                applicant to use such fuel in 
                                carrying out the project.
            (2) Partners.--An applicant under paragraph (1) may 
        carry out a project under the pilot program in 
        partnership with public and private entities.
    (d) Selection Criteria.--In evaluating applications under 
the pilot program, the Secretary shall--
            (1) consider each applicant's previous experience 
        with similar projects; and
            (2) give priority consideration to applications 
        that--
                    (A) are most likely to maximize protection 
                of the environment;
                    (B) demonstrate the greatest commitment on 
                the part of the applicant to ensure funding for 
                the proposed project and the greatest 
                likelihood that the project will be maintained 
                or expanded after Federal assistance under this 
                part is completed; and
                    (C) exceed the minimum requirements of 
                subsection (c)(1)(B)(ii).
    (e) Pilot Project Requirements.--
            (1) Maximum amount.--The Secretary shall not 
        provide more than $15,000,000 in Federal assistance 
        under the pilot program to any applicant.
            (2) Cost sharing.--The Secretary shall not provide 
        more than 50 percent of the cost, incurred during the 
        period of the grant, of any project under the pilot 
        program.
            (3) Maximum period of grants.--The Secretary shall 
        not fund any applicant under the pilot program for more 
        than 5 years.
            (4) Deployment and distribution.--The Secretary 
        shall seek to the maximum extent practicable to ensure 
        a broad geographic distribution of project sites.
            (5) Transfer of information and knowledge.--The 
        Secretary shall establish mechanisms to ensure that the 
        information and knowledge gained by participants in the 
        pilot program are transferred among the pilot program 
        participants and to other interested parties, including 
        other applicants that submitted applications.
    (f) Schedule.--
            (1) Publication.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        publish in the Federal Register, Commerce Business 
        Daily, and elsewhere as appropriate, a request for 
        applications to undertake projects under the pilot 
        program. Applications shall be due not later than 180 
        days after the date of publication of the notice.
            (2) Selection.--Not later than 180 days after the 
        date by which applications for grants are due, the 
        Secretary shall select by competitive, peer reviewed 
        proposal, all applications for projects to be awarded a 
        grant under the pilot program.
    (g) Definitions.--For purposes of carrying out the pilot 
program, the Secretary shall issue regulations defining any 
term, as the Secretary determines to be necessary.

SEC. 722. REPORTS TO CONGRESS.

    (a) Initial Report.--Not later than 60 days after the date 
on which grants are awarded under this part, the Secretary 
shall submit to Congress a report containing--
            (1) an identification of the grant recipients and a 
        description of the projects to be funded;
            (2) an identification of other applicants that 
        submitted applications for the pilot program; and
            (3) a description of the mechanisms used by the 
        Secretary to ensure that the information and knowledge 
        gained by participants in the pilot program are 
        transferred among the pilot program participants and to 
        other interested parties, including other applicants 
        that submitted applications.
    (b) Evaluation.--Not later than 3 years after the date of 
enactment of this Act, and annually thereafter until the pilot 
program ends, the Secretary shall submit to Congress a report 
containing an evaluation of the effectiveness of the pilot 
program, including--
            (1) an assessment of the benefits to the 
        environment derived from the projects included in the 
        pilot program; and
            (2) an estimate of the potential benefits to the 
        environment to be derived from widespread application 
        of alternative fueled vehicles and ultra-low sulfur 
        diesel vehicles.

SEC. 723. AUTHORIZATION OF APPROPRIATIONS.

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

                        PART 3--FUEL CELL BUSES

SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.

    (a) In General.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a transit bus 
demonstration program to make competitive, merit-based awards 
for 5-year projects to demonstrate not more than 25 fuel cell 
transit buses (and necessary infrastructure) in 5 
geographically dispersed localities.
    (b) Preference.--In selecting projects under this section, 
the Secretary shall give preference to projects that are most 
likely to mitigate congestion and improve air quality.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$10,000,000 for each of fiscal years 2006 through 2010.

                     Subtitle C--Clean School Buses

SEC. 741. CLEAN SCHOOL BUS PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Alternative fuel.--The term ``alternative 
        fuel'' means--
                    (A) liquefied natural gas, compressed 
                natural gas, liquefied petroleum gas, hydrogen, 
                or propane;
                    (B) methanol or ethanol at no less than 85 
                percent by volume; or
                    (C) biodiesel conforming with standards 
                published by the American Society for Testing 
                and Materials as of the date of enactment of 
                this Act.
            (3) Clean school bus.--The term ``clean school 
        bus'' means a school bus with a gross vehicle weight of 
        greater than 14,000 pounds that--
                    (A) is powered by a heavy duty engine; and
                    (B) is operated solely on an alternative 
                fuel or ultra-low sulfur diesel fuel.
            (4) Eligible recipient.--
                    (A) In general.--Subject to subparagraph 
                (B), the term ``eligible recipient'' means--
                            (i) 1 or more local or State 
                        governmental entities responsible for--
                                    (I) providing school bus 
                                service to 1 or more public 
                                school systems; or
                                    (II) the purchase of school 
                                buses;
                            (ii) 1 or more contracting entities 
                        that provide school bus service to 1 or 
                        more public school systems; or
                            (iii) a nonprofit school 
                        transportation association.
                    (B) Special requirements.--In the case of 
                eligible recipients identified under clauses 
                (ii) and (iii), the Administrator shall 
                establish timely and appropriate requirements 
                for notice and may establish timely and 
                appropriate requirements for approval by the 
                public school systems that would be served by 
                buses purchased or retrofit using grant funds 
                made available under this section.
            (5) Retrofit technology.--The term ``retrofit 
        technology'' means a particulate filter or other 
        emissions control equipment that is verified or 
        certified by the Administrator or the California Air 
        Resources Board as an effective emission reduction 
        technology when installed on an existing school bus.
            (6) Ultra low sulfur diesel fuel.--The term 
        ``ultra-low sulfur diesel fuel'' means diesel fuel that 
        contains sulfur at not more than 15 parts per million.
    (b) Program for Retrofit or Replacement of Certain Existing 
School Buses With Clean School Buses.--
            (1) Establishment.--
                    (A) In general.--The Administrator, in 
                consultation with the Secretary and other 
                appropriate Federal departments and agencies, 
                shall establish a program for awarding grants 
                on a competitive basis to eligible recipients 
                for the replacement, or retrofit (including 
                repowering, aftertreatment, and remanufactured 
                engines) of, certain existing school buses.
                    (B) Balancing.--In awarding grants under 
                this section, the Administrator shall, to the 
                maximum extent practicable, achieve an 
                appropriate balance between awarding grants--
                            (i) to replace school buses; and
                            (ii) to install retrofit 
                        technologies.
            (2) Priority of grant applications.--
                    (A) Replacement.--In the case of grant 
                applications to replace school buses, the 
                Administrator shall give priority to applicants 
                that propose to replace school buses 
                manufactured before model year 1977.
                    (B) Retrofitting.--In the case of grant 
                applications to retrofit school buses, the 
                Administrator shall give priority to applicants 
                that propose to retrofit school buses 
                manufactured in or after model year 1991.
            (3) Use of school bus fleet.--
                    (A) In general.--All school buses acquired 
                or retrofitted with funds provided under this 
                section shall be operated as part of the school 
                bus fleet for which the grant was made for not 
                less than 5 years.
                    (B) Maintenance, operation, and fueling.--
                New school buses and retrofit technology shall 
                be maintained, operated, and fueled according 
                to manufacturer recommendations or State 
                requirements.
            (4) Retrofit grants.--The Administrator may award 
        grants for up to 100 percent of the retrofit 
        technologies and installation costs.
            (5) Replacement grants.--
                    (A) Eligibility for 50 percent grants.--The 
                Administrator may award grants for replacement 
                of school buses in the amount of up to \1/2\ of 
                the acquisition costs (including fueling 
                infrastructure) for--
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 
                        that emit not more than--
                                    (I) 1.8 grams per brake 
                                horsepower-hour of non-methane 
                                hydrocarbons and oxides of 
                                nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate 
                                matter; or
                            (ii) clean school buses with 
                        engines manufactured in model year 
                        2007, 2008, or 2009 that satisfy 
                        regulatory requirements established by 
                        the Administrator for emissions of 
                        oxides of nitrogen and particulate 
                        matter to be applicable for school 
                        buses manufactured in model year 2010.
                    (B) Eligibility for 25 percent grants.--The 
                Administrator may award grants for replacement 
                of school buses in the amount of up to \1/4\ of 
                the acquisition costs (including fueling 
                infrastructure) for--
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 
                        that emit not more than--
                                    (I) 2.5 grams per brake 
                                horsepower-hour of non-methane 
                                hydrocarbons and oxides of 
                                nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate 
                                matter; or
                            (ii) clean school buses with 
                        engines manufactured in model year 2007 
                        or thereafter that satisfy regulatory 
                        requirements established by the 
                        Administrator for emissions of oxides 
                        of nitrogen and particulate matter from 
                        school buses manufactured in that model 
                        year.
            (6) Ultra low sulfur diesel fuel.--
                    (A) In general.--In the case of a grant 
                recipient receiving a grant for the acquisition 
                of ultra-low sulfur diesel fuel school buses 
                with engines manufactured in model year 2005 or 
                2006, the grant recipient shall provide, to the 
                satisfaction of the Administrator--
                            (i) documentation that diesel fuel 
                        containing sulfur at not more than 15 
                        parts per million is available for 
                        carrying out the purposes of the grant; 
                        and
                            (ii) a commitment by the applicant 
                        to use that fuel in carrying out the 
                        purposes of the grant.
            (7) Deployment and distribution.--The Administrator 
        shall, to the maximum extent practicable--
                    (A) achieve nationwide deployment of clean 
                school buses through the program under this 
                section; and
                    (B) ensure a broad geographic distribution 
                of grant awards, with no State receiving more 
                than 10 percent of the grant funding made 
                available under this section during a fiscal 
                year.
            (8) Annual report.--
                    (A) In general.--Not later than January 31 
                of each year, the Administrator shall submit to 
                Congress a report that--
                            (i) evaluates the implementation of 
                        this section; and
                            (ii) describes--
                                    (I) the total number of 
                                grant applications received;
                                    (II) the number and types 
                                of alternative fuel school 
                                buses, ultra-low sulfur diesel 
                                fuel school buses, and 
                                retrofitted buses requested in 
                                grant applications;
                                    (III) grants awarded and 
                                the criteria used to select the 
                                grant recipients;
                                    (IV) certified engine 
                                emission levels of all buses 
                                purchased or retrofitted under 
                                this section;
                                    (V) an evaluation of the 
                                in-use emission level of buses 
                                purchased or retrofitted under 
                                this section; and
                                    (VI) any other information 
                                the Administrator considers 
                                appropriate.
    (c) Education.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall 
        develop an education outreach program to promote and 
        explain the grant program.
            (2) Coordination with stakeholders.--The outreach 
        program shall be designed and conducted in conjunction 
        with national school bus transportation associations 
        and other stakeholders.
            (3) Components.--The outreach program shall--
                    (A) inform potential grant recipients on 
                the process of applying for grants;
                    (B) describe the available technologies and 
                the benefits of the technologies;
                    (C) explain the benefits of participating 
                in the grant program; and
                    (D) include, as appropriate, information 
                from the annual report required under 
                subsection (b)(8).
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended--
            (1) $55,000,000 for each of fiscal years 2006 and 
        2007; and
            (2) such sums as are necessary for each of fiscal 
        years 2008, 2009, and 2010.

SEC. 742. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION PROGRAM.

    (a) Establishment.--The Administrator, in consultation with 
the Secretary, shall establish a program for awarding grants on 
a competitive basis to public agencies and entities for fleet 
modernization programs including installation of retrofit 
technologies for diesel trucks.
    (b) Eligible Recipients.--A grant shall be awarded under 
this section only to a State or local government or an agency 
or instrumentality of a State or local government or of two or 
more State or local governments who will allocate funds, with 
preference to ports and other major hauling operations.
    (c) Awards.--
            (1) In general.--The Administrator shall seek, to 
        the maximum extent practicable, to ensure a broad 
        geographic distribution of grants under this section.
            (2) Preferences.--In making awards of grants under 
        this section, the Administrator shall give preference 
        to proposals that--
                    (A) will achieve the greatest reductions in 
                emissions of nonmethane hydrocarbons, oxides of 
                nitrogen, and/or particulate matter per 
                proposal or per truck; or
                    (B) involve the use of Environmental 
                Protection Agency or California Air Resources 
                Board verified emissions control retrofit 
                technology on diesel trucks that operate solely 
                on ultra-low sulfur diesel fuel after September 
                2006.
    (d) Conditions of Grant.--A grant shall be provided under 
this section on the conditions that--
            (1) trucks which are replacing scrapped trucks and 
        on which retrofit emissions-control technology are to 
        be demonstrated--
                    (A) will operate on ultra-low sulfur diesel 
                fuel where such fuel is reasonably available or 
                required for sale by State or local law or 
                regulation;
                    (B) were manufactured in model year 1998 
                and before; and
                    (C) will be used for the transportation of 
                cargo goods especially in port areas or used in 
                goods movement and major hauling operations;
            (2) grant funds will be used for the purchase of 
        emission control retrofit technology, including State 
        taxes and contract fees; and
            (3) grant recipients will provide at least 50 
        percent of the total cost of the retrofit, including 
        the purchase of emission control retrofit technology 
        and all necessary labor for installation of the 
        retrofit, from any source other than this section.
    (e) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall publish in the 
Federal Register procedures to--
            (1) make grants pursuant to this section;
            (2) verify that trucks powered by ultra-low sulfur 
        diesel fuel on which retrofit emissions-control 
        technology are to be demonstrated will operate on 
        diesel fuel containing not more than 15 parts per 
        million of sulfur after September 2006; and
            (3) verify that grants are administered in 
        accordance with this section.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended the following sums:
            (1) $20,000,000 for fiscal year 2006.
            (2) $35,000,000 for fiscal year 2007.
            (3) $45,000,000 for fiscal year 2008.
            (4) Such sums as are necessary for each of fiscal 
        years 2009 and 2010.

SEC. 743. FUEL CELL SCHOOL BUSES.

    (a) Establishment.--The Secretary shall establish a program 
for entering into cooperative agreements--
            (1) with private sector fuel cell bus developers 
        for the development of fuel cell-powered school buses; 
        and
            (2) subsequently, with not less than 2 units of 
        local government using natural gas-powered school buses 
        and such private sector fuel cell bus developers to 
        demonstrate the use of fuel cell-powered school buses.
    (b) Cost Sharing.--The non-Federal contribution for 
activities funded under this section shall be not less than--
            (1) 20 percent for fuel infrastructure development 
        activities; and
            (2) 50 percent for demonstration activities and for 
        development activities not described in paragraph (1).
    (c) Reports to Congress.--Not later than 3 years after the 
date of enactment of this Act, the Secretary shall transmit to 
Congress a report that--
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school 
        buses; and
            (2) assesses the results of the development and 
        demonstration program under this section.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$25,000,000 for the period of fiscal years 2006 through 2009.

                       Subtitle D--Miscellaneous

SEC. 751. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary shall (in cooperation 
with the Secretary of Transportation and the Administrator of 
the Environmental Protection Agency) establish a cost-shared, 
public-private research partnership involving the Federal 
Government, railroad carriers, locomotive manufacturers and 
equipment suppliers, and the Association of American Railroads, 
to develop and demonstrate railroad locomotive technologies 
that increase fuel economy, reduce emissions, and lower costs 
of operation.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section--
            (1) $15,000,000 for fiscal year 2006;
            (2) $20,000,000 for fiscal year 2007; and
            (3) $30,000,000 for fiscal year 2008.

SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall submit to Congress a report on the 
experience of the Administrator with the trading of mobile 
source emission reduction credits for use by owners and 
operators of stationary source emission sources to meet 
emission offset requirements within a nonattainment area.
    (b) Contents.--The report shall describe--
            (1) projects approved by the Administrator that 
        include the trading of mobile source emission reduction 
        credits for use by stationary sources in complying with 
        offset requirements, including a description of--
                    (A) project and stationary sources 
                location;
                    (B) volumes of emissions offset and traded;
                    (C) the sources of mobile emission 
                reduction credits; and
                    (D) if available, the cost of the credits;
            (2) the significant issues identified by the 
        Administrator in consideration and approval of trading 
        in the projects;
            (3) the requirements for monitoring and assessing 
        the air quality benefits of any approved project;
            (4) the statutory authority on which the 
        Administrator has based approval of the projects;
            (5) an evaluation of how the resolution of issues 
        in approved projects could be used in other projects 
        and whether the emission reduction credits may be 
        considered to be additional in relation to other 
        requirements;
            (6) the potential, for attainment purposes, of 
        emission reduction credits relating to transit and land 
        use policies; and
            (7) any other issues that the Administrator 
        considers relevant to the trading and generation of 
        mobile source emission reduction credits for use by 
        stationary sources or for other purposes.

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.

    (a) In General.--Not later than 60 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration and the Administrator of the 
Environmental Protection Agency shall jointly initiate a study 
to identify--
            (1) the impact of aircraft emissions on air quality 
        in nonattainment areas;
            (2) ways to promote fuel conservation measures for 
        aviation to enhance fuel efficiency and reduce 
        emissions; and
            (3) opportunities to reduce air traffic 
        inefficiencies that increase fuel burn and emissions.
    (b) Focus.--The study under subsection (a) shall focus on 
how air traffic management inefficiencies, such as aircraft 
idling at airports, result in unnecessary fuel burn and air 
emissions.
    (c) Report.--Not later than 1 year after the date of the 
initiation of the study under subsection (a), the Administrator 
of the Federal Aviation Administration and the Administrator of 
the Environmental Protection Agency shall jointly submit to the 
Committee on Energy and Commerce and the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works and the Committee on Commerce, Science, and 
Transportation of the Senate a report that--
            (1) describes the results of the study; and
            (2) includes any recommendations on ways in which 
        unnecessary fuel use and emissions affecting air 
        quality may be reduced--
                    (A) without adversely affecting safety and 
                security and increasing individual aircraft 
                noise; and
                    (B) while taking into account all aircraft 
                emissions and the impact of those emissions on 
                the human health.
    (d) Risk Assessments.--Any assessment of risk to human 
health and the environment prepared by the Administrator of the 
Federal Aviation Administration or the Administrator of the 
Environmental Protection Agency to support the report in this 
section shall be based on sound and objective scientific 
practices, shall consider the best available science, and shall 
present the weight of the scientific evidence concerning such 
risks.

SEC. 754. DIESEL FUELED VEHICLES.

    (a) Definition of Tier 2 Emission Standards.--In this 
section, the term ``tier 2 emission standards'' means the motor 
vehicle emission standards that apply to passenger cars, light 
trucks, and larger passenger vehicles manufactured after the 
2003 model year, as issued on February 10, 2000, by the 
Administrator of the Environmental Protection Agency under 
sections 202 and 211 of the Clean Air Act (42 U.S.C. 7521, 
7545).
    (b) Diesel Combustion and After-Treatment Technologies.--
The Secretary shall accelerate efforts to improve diesel 
combustion and after-treatment technologies for use in diesel 
fueled motor vehicles.
    (c) Goals.--The Secretary shall carry out subsection (b) 
with a view toward achieving the following goals:
            (1) Developing and demonstrating diesel 
        technologies that, not later than 2010, meet the 
        following standards:
                    (A) Tier 2 emission standards.
                    (B) The heavy-duty emissions standards of 
                2007 that are applicable to heavy-duty vehicles 
                under regulations issued by the Administrator 
                of the Environmental Protection Agency as of 
                the date of enactment of this Act.
            (2) Developing the next generation of low-emission, 
        high efficiency diesel engine technologies, including 
        homogeneous charge compression ignition technology.

SEC. 755. CONSERVE BY BICYCLING PROGRAM.

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

SEC. 756. REDUCTION OF ENGINE IDLING.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Advanced truck stop electrification system.--
        The term ``advanced truck stop electrification system'' 
        means a stationary system that delivers heat, air 
        conditioning, electricity, or communications, and is 
        capable of providing verifiable and auditable evidence 
        of use of those services, to a heavy-duty vehicle and 
        any occupants of the heavy-duty vehicle with or without 
        relying on components mounted onboard the heavy-duty 
        vehicle for delivery of those services.
            (3) Auxiliary power unit.--The term ``auxiliary 
        power unit'' means an integrated system that--
                    (A) provides heat, air conditioning, engine 
                warming, or electricity to components on a 
                heavy-duty vehicle; and
                    (B) is certified by the Administrator under 
                part 89 of title 40, Code of Federal 
                Regulations (or any successor regulation), as 
                meeting applicable emission standards.
            (4) Heavy-duty vehicle.--The term ``heavy-duty 
        vehicle'' means a vehicle that--
                    (A) has a gross vehicle weight rating 
                greater than 8,500 pounds; and
                    (B) is powered by a diesel engine.
            (5) Idle reduction technology.--The term ``idle 
        reduction technology'' means an advanced truck stop 
        electrification system, auxiliary power unit, or other 
        technology that--
                    (A) is used to reduce long-duration idling; 
                and
                    (B) allows for the main drive engine or 
                auxiliary refrigeration engine to be shut down.
            (6) Energy conservation technology.--the term 
        ``energy conservation technology'' means any device, 
        system of devices, or equipment that improves the fuel 
        economy.
            (7) Long-duration idling.--
                    (A) In general.--The term ``long-duration 
                idling'' means the operation of a main drive 
                engine or auxiliary refrigeration engine, for a 
                period greater than 15 consecutive minutes, at 
                a time at which the main drive engine is not 
                engaged in gear.
                    (B) Exclusions.--The term ``long-duration 
                idling'' does not include the operation of a 
                main drive engine or auxiliary refrigeration 
                engine during a routine stoppage associated 
                with traffic movement or congestion.
    (b) Idle Reduction Technology Benefits, Programs, and 
Studies.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator 
        shall--
                    (A)(i) commence a review of the mobile 
                source air emission models of the Environmental 
                Protection Agency used under the Clean Air Act 
                (42 U.S.C. 7401 et seq.) to determine whether 
                the models accurately reflect the emissions 
                resulting from long-duration idling of heavy-
                duty vehicles and other vehicles and engines; 
                and
                    (ii) update those models as the 
                Administrator determines to be appropriate; and
                    (B)(i) commence a review of the emission 
                reductions achieved by the use of idle 
                reduction technology; and
                    (ii) complete such revisions of the 
                regulations and guidance of the Environmental 
                Protection Agency as the Administrator 
                determines to be appropriate.
            (2) Deadline for completion.--Not later than 180 
        days after the date of enactment of this Act, the 
        Administrator shall--
                    (A) complete the reviews under 
                subparagraphs (A)(i) and (B)(i) of paragraph 
                (1); and
                    (B) prepare and make publicly available 1 
                or more reports on the results of the reviews.
            (3) Discretionary inclusions.--The reviews under 
        subparagraphs (A)(i) and (B)(i) of paragraph (1) and 
        the reports under paragraph (2)(B) may address the 
        potential fuel savings resulting from use of idle 
        reduction technology.
            (4) Idle reduction and energy conservation 
        deployment program.--
                    (A) Establishment.--
                            (i) In general.--Not later than 90 
                        days after the date of enactment of 
                        this Act, the Administrator, in 
                        consultation with the Secretary of 
                        Transportation shall, through the 
                        Environmental Protection Agency's 
                        SmartWay Transport Partnership, 
                        establish a program to support 
                        deployment of idle reduction and energy 
                        conservation technologies.
                            (ii) Priority.--The Administrator 
                        shall give priority to the deployment 
                        of idle reduction and energy 
                        conservation technologies based on the 
                        costs and beneficial effects on air 
                        quality and ability to lessen the 
                        emission of criteria air pollutants.
                    (B) Funding.--
                            (i) Authorization of 
                        appropriations.--There are authorized 
                        to be appropriated to the Administrator 
                        to carry out subparagraph (A) for the 
                        purpose of reducing extended idling 
                        from heavy-duty vehicles $19,500,000 
                        for fiscal year 2006, $30,000,000 for 
                        fiscal year 2007, and $45,000,000 for 
                        fiscal year 2008.
                            (ii) Locomotives.--There are 
                        authorized to be appropriated to the 
                        administrator to carry out subparagraph 
                        (A) for the purpose of reducing 
                        extended idling from locomotives 
                        $10,000,000 for fiscal year 2006, 
                        $15,000,000 for fiscal year 2007, and 
                        $20,000,000 for fiscal year 2008.
                            (iii) Cost sharing.--Subject to 
                        clause (iv), the Administrator shall 
                        require at least 50 percent of the 
                        costs directly and specifically related 
                        to any project under this section to be 
                        provided from non-Federal sources.
                            (iv) Necessary and appropriate 
                        reductions.--The Administrator may 
                        reduce the non-Federal requirement 
                        under clause (iii) if the Administrator 
                        determines that the reduction is 
                        necessary and appropriate to meet the 
                        objectives of this section.
            (5) Idling location study.--
                    (A) In general.--Not later than 90 days 
                after the date of enactment of this Act, the 
                Administrator, in consultation with the 
                Secretary of Transportation, shall commence a 
                study to analyze all locations at which heavy-
                duty vehicles stop for long-duration idling, 
                including--
                            (i) truck stops;
                            (ii) rest areas;
                            (iii) border crossings;
                            (iv) ports;
                            (v) transfer facilities; and
                            (vi) private terminals.
                    (B) Deadline for completion.--Not later 
                than 180 days after the date of enactment of 
                this Act, the Administrator shall--
                            (i) complete the study under 
                        subparagraph (A); and
                            (ii) prepare and make publicly 
                        available 1 or more reports of the 
                        results of the study.
    (c) Vehicle Weight Exemption.--Section 127(a) of title 23, 
United States Code, is amended--
            (1) by designating the first through eleventh 
        sentences as paragraphs (1) through (11), respectively; 
        and
            (2) by adding at the end the following:
            ``(12) Heavy duty vehicles.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), in order to promote reduction of 
                fuel use and emissions because of engine 
                idling, the maximum gross vehicle weight limit 
                and the axle weight limit for any heavy-duty 
                vehicle equipped with an idle reduction 
                technology shall be increased by a quantity 
                necessary to compensate for the additional 
                weight of the idle reduction system.
                    ``(B) Maximum weight increase.--The weight 
                increase under subparagraph (A) shall be not 
                greater than 400 pounds.
                    ``(C) Proof.--On request by a regulatory 
                agency or law enforcement agency, the vehicle 
                operator shall provide proof (through 
                demonstration or certification) that--
                            ``(i) the idle reduction technology 
                        is fully functional at all times; and
                            ``(ii) the 400-pound gross weight 
                        increase is not used for any purpose 
                        other than the use of idle reduction 
                        technology described in subparagraph 
                        (A).''.
    (d) Report.--Not later than 60 days after the date on which 
funds are initially awarded under this section, and on an 
annual basis thereafter, the Administrator shall submit to 
Congress a report containing--
            (1) an identification of the grant recipients, a 
        description of the projects to be funded and the amount 
        of funding provided; and
            (2) an identification of all other applicants that 
        submitted applications under the program.

SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.

    (a) In General.--Not later that 180 days after the date of 
enactment of this Act, the Secretary shall initiate a 
partnership with diesel engine, diesel fuel injection system, 
and diesel vehicle manufacturers and diesel and biodiesel fuel 
providers, to include biodiesel testing in advanced diesel 
engine and fuel system technology.
    (b) Scope.--The program shall provide for testing to 
determine the impact of biodiesel from different sources on 
current and future emission control technologies, with emphasis 
on--
            (1) the impact of biodiesel on emissions warranty, 
        in-use liability, and antitampering provisions;
            (2) the impact of long-term use of biodiesel on 
        engine operations;
            (3) the options for optimizing these technologies 
        for both emissions and performance when switching 
        between biodiesel and diesel fuel; and
            (4) the impact of using biodiesel in these fueling 
        systems and engines when used as a blend with 2006 
        Environmental Protection Agency-mandated diesel fuel 
        containing a maximum of 15-parts-per-million sulfur 
        content.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall provide an interim 
report to Congress on the findings of the program, including a 
comprehensive analysis of impacts from biodiesel on engine 
operation for both existing and expected future diesel 
technologies, and recommendations for ensuring optimal 
emissions reductions and engine performance with biodiesel.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for each of fiscal years 2006 
through 2010 to carry out this section.
    (e) Definition.--For purposes of this section, the term 
``biodiesel'' means a diesel fuel substitute produced from 
nonpetroleum renewable resources that meets the registration 
requirements for fuels and fuel additives established by the 
Environmental Protection Agency under section 211 of the Clean 
Air Act (42 U.S.C. 7545) and that meets the American Society 
for Testing and Materials D6751-02a Standard Specification for 
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

SEC. 758. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

    (a) Ultra-Efficient Engine Technology Partnership.--The 
Secretary shall enter into a cooperative agreement with the 
National Aeronautics and Space Administration for the 
development of ultra-efficient engine technology for aircraft.
    (b) Performance Objective.--The Secretary shall establish 
the following performance objectives for the program set forth 
in subsection (a):
            (1) A fuel efficiency increase of at least 10 
        percent.
            (2) A reduction in the impact of landing and 
        takeoff nitrogen oxides emissions on local air quality 
        of 70 percent.
            (3) Exploring advanced concepts, alternate 
        propulsion, and power configurations, including hybrid 
        fuel cell powered systems.
            (4) Exploring the use of alternate fuel in 
        conventional or nonconventional turbine-based systems.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section $50,000,000 for each of the fiscal years 2006, 2007, 
2008, 2009, and 2010.

SEC. 759. FUEL ECONOMY INCENTIVE REQUIREMENTS.

    Section 32905 of title 49, United States Code, is amended 
by adding the following new subsection at the end thereof:
    ``(h) Fuel Economy Incentive Requirements.--In order for 
any model of dual fueled automobile to be eligible to receive 
the fuel economy incentives included in section 32906(a) and 
(b), a label shall be attached to the fuel compartment of each 
dual fueled automobile of that model, notifying that the 
vehicle can be operated on an alternative fuel and on gasoline 
or diesel, with the form of alternative fuel stated on the 
notice. This requirement applies to dual fueled automobiles 
manufactured on or after September 1, 2006.''.

                   Subtitle E--Automobile Efficiency

SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND 
                    ENFORCEMENT OF FUEL ECONOMY STANDARDS.

    In addition to any other funds authorized by law, there are 
authorized to be appropriated to the National Highway Traffic 
Safety Administration to carry out its obligations with respect 
to average fuel economy standards $3,500,000 for each of the 
fiscal years 2006 through 2010.

SEC. 772. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE 
                    FUELED VEHICLES.

    (a) Manufacturing Incentives.--Section 32905 of title 49, 
United States Code, is amended--
            (1) in each of subsections (b) and (d), by striking 
        ``1993-2004'' and inserting ``1993-2010'';
            (2) in subsection (f), by striking ``2001'' and 
        inserting ``2007''; and
            (3) in subsection (f)(1), by striking ``2004'' and 
        inserting ``2010''.
    (b) Maximum Fuel Economy Increase.--Subsection (a)(1) of 
section 32906 of title 49, United States Code, is amended--
            (1) in subparagraph (A), by striking ``the model 
        years 1993-2004'' and inserting ``model years 1993-
        2010''; and
            (2) in subparagraph (B), by striking ``the model 
        years 2005-2008'' and inserting ``model years 2011-
        2014''.

SEC. 773. 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 Administrator of the National 
Highway Traffic Safety Administration shall initiate a study of 
the feasibility and effects of reducing by model year 2014, by 
a significant percentage, the amount of fuel consumed by 
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 Administrator shall submit to 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.

SEC. 774. UPDATE TESTING PROCEDURES.

    The Administrator of the Environmental Protection Agency 
shall update or revise the adjustment factors in sections 
600.209-85 and 600.209-95, of the Code of Federal Regulations, 
CFR Part 600 (1995) Fuel Economy Regulations for 1977 and Later 
Model Year Automobiles to take into consideration higher speed 
limits, faster acceleration rates, variations in temperature, 
use of air conditioning, shorter city test cycle lengths, 
current reference fuels, and the use of other fuel depleting 
features.

               Subtitle F--Federal and State Procurement

SEC. 781. DEFINITIONS.

    In this subtitle:
            (1) Fuel cell.--The term ``fuel cell'' means a 
        device that directly converts the chemical energy of a 
        fuel and an oxidant into electricity by electrochemical 
        processes occurring at separate electrodes in the 
        device.
            (2) Light-duty or heavy-duty vehicle fleet.--The 
        term ``light-duty or heavy-duty vehicle fleet'' does 
        not include any vehicle designed or procured for combat 
        or combat-related missions.
            (3) Stationary; portable.--The terms ``stationary'' 
        and ``portable'', when used in reference to a fuel 
        cell, include--
                    (A) continuous electric power; and
                    (B) backup electric power.
            (4) Task force.--The term ``Task Force'' means the 
        Hydrogen and Fuel Cell Technical Task Force established 
        under section 806 of this Act.
            (5) Technical advisory committee.--The term 
        ``Technical Advisory Committee'' means the independent 
        Technical Advisory Committee selected under section 807 
        of this Act.

SEC. 782. FEDERAL AND STATE PROCUREMENT OF FUEL CELL VEHICLES AND 
                    HYDROGEN ENERGY SYSTEMS.

    (a) Purposes.--The purposes of this section are--
            (1) to stimulate acceptance by the market of fuel 
        cell vehicles and hydrogen energy systems;
            (2) to support development of technologies relating 
        to fuel cell vehicles, public refueling stations, and 
        hydrogen energy systems; and
            (3) to require the Federal government, which is the 
        largest single user of energy in the United States, to 
        adopt those technologies as soon as practicable after 
        the technologies are developed, in conjunction with 
        private industry partners.
    (b) Federal Leases and Purchases.--
            (1) Requirement.--
                    (A) In general.--Not later than January 1, 
                2010, the head of any Federal agency that uses 
                a light-duty or heavy-duty vehicle fleet shall 
                lease or purchase fuel cell vehicles and 
                hydrogen energy systems to meet any applicable 
                energy savings goal described in subsection 
                (c).
                    (B) Learning demonstration vehicles.--The 
                Secretary may lease or purchase appropriate 
                vehicles developed under subsections (a)(10) 
                and (b)(1)(A) of section 808 to meet the 
                requirement in subparagraph (A).
            (2) Costs of leases and purchases.--
                    (A) In general.--The Secretary, in 
                cooperation with the Task Force and the 
                Technical Advisory Committee, shall pay to 
                Federal agencies (or share the cost under 
                interagency agreements) the difference in cost 
                between--
                            (i) the cost to the agencies of 
                        leasing or purchasing fuel cell 
                        vehicles and hydrogen energy systems 
                        under paragraph (1); and
                            (ii) the cost to the agencies of a 
                        feasible alternative to leasing or 
                        purchasing fuel cell vehicles and 
                        hydrogen energy systems, as determined 
                        by the Secretary.
                    (B) Competitive costs and management 
                structures.--In carrying out subparagraph (A), 
                the Secretary, in consultation with the agency, 
                may use the General Services Administration or 
                any commercial vendor to ensure--
                            (i) a cost-effective purchase of a 
                        fuel cell vehicle or hydrogen energy 
                        system; or
                            (ii) a cost-effective management 
                        structure of the lease of a fuel cell 
                        vehicle or hydrogen energy system.
            (3) Exception.--
                    (A) In general.--If the Secretary 
                determines that the head of an agency described 
                in paragraph (1) cannot find an appropriately 
                efficient and reliable fuel cell vehicle or 
                hydrogen energy system in accordance with 
                paragraph (1), that agency shall be excepted 
                from compliance with paragraph (1).
                    (B) Consideration.--In making a 
                determination under subparagraph (A), the 
                Secretary shall consider--
                            (i) the needs of the agency; and
                            (ii) an evaluation performed by--
                                    (I) the Task Force; or
                                    (II) the Technical Advisory 
                                Committee.
    (c) Energy Savings Goals.--
            (1) In general.--
                    (A) Regulations.--Not later than December 
                31, 2006, the Secretary shall--
                            (i) in cooperation with the Task 
                        Force, promulgate regulations for the 
                        period of 2008 through 2010 that extend 
                        and augment energy savings goals for 
                        each Federal agency, in accordance with 
                        any Executive order issued after March 
                        2000; and
                            (ii) promulgate regulations to 
                        expand the minimum Federal fleet 
                        requirement and credit allowances for 
                        fuel cell vehicle systems under section 
                        303 of the Energy Policy Act of 1992 
                        (42 U.S.C. 13212).
                    (B) Review, evaluation, and new 
                regulations.--Not later than December 31, 2010, 
                the Secretary shall--
                            (i) review the regulations 
                        promulgated under subparagraph (A);
                            (ii) evaluate any progress made 
                        toward achieving energy savings by 
                        Federal agencies; and
                            (iii) promulgate new regulations 
                        for the period of 2011 through 2015 to 
                        achieve additional energy savings by 
                        Federal agencies relating to technical 
                        and cost-performance standards.
            (2) Offsetting energy savings goals.--An agency 
        that leases or purchases a fuel cell vehicle or 
        hydrogen energy system in accordance with subsection 
        (b)(1) may use that lease or purchase to count toward 
        an energy savings goal of the agency.
    (d) Cooperative Program With State Agencies.--
            (1) In general.--The Secretary may establish a 
        cooperative program with State agencies managing motor 
        vehicle fleets to encourage purchase of fuel cell 
        vehicles by the agencies.
            (2) Incentives.--In carrying out the cooperative 
        program, the Secretary may offer incentive payments to 
        a State agency to assist with the cost of planning, 
        differential purchases, and administration.
    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section--
            (1) $15,000,000 for fiscal year 2008;
            (2) $25,000,000 for fiscal year 2009;
            (3) $65,000,000 for fiscal year 2010; and
            (4) such sums as are necessary for each of fiscal 
        years 2011 through 2015.

SEC. 783. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND MICRO FUEL 
                    CELLS.

    (a) Purposes.--The purposes of this section are--
            (1) to stimulate acceptance by the market of 
        stationary, portable, and micro fuel cells; and
            (2) to support development of technologies relating 
        to stationary, portable, and micro fuel cells.
    (b) Federal Leases and Purchases.--
            (1) In general.--Not later than January 1, 2006, 
        the head of any Federal agency that uses electrical 
        power from stationary, portable, or microportable 
        devices shall lease or purchase a stationary, portable, 
        or micro fuel cell to meet any applicable energy 
        savings goal described in subsection (c).
            (2) Costs of leases and purchases.--
                    (A) In general.--The Secretary, in 
                cooperation with the Task Force and the 
                Technical Advisory Committee, shall pay the 
                cost to Federal agencies (or share the cost 
                under interagency agreements) of leasing or 
                purchasing stationary, portable, and micro fuel 
                cells under paragraph (1).
                    (B) Competitive costs and management 
                structures.--In carrying out subparagraph (A), 
                the Secretary, in consultation with the agency, 
                may use the General Services Administration or 
                any commercial vendor to ensure--
                            (i) a cost-effective purchase of a 
                        stationary, portable, or micro fuel 
                        cell; or
                            (ii) a cost-effective management 
                        structure of the lease of a stationary, 
                        portable, or micro fuel cell.
            (3) Exception.--
                    (A) In general.--If the Secretary 
                determines that the head of an agency described 
                in paragraph (1) cannot find an appropriately 
                efficient and reliable stationary, portable, or 
                micro fuel cell in accordance with paragraph 
                (1), that agency shall be excepted from 
                compliance with paragraph (1).
                    (B) Consideration.--In making a 
                determination under subparagraph (A), the 
                Secretary shall consider--
                            (i) the needs of the agency; and
                            (ii) an evaluation performed by--
                                    (I) the Task Force; or
                                    (II) the Technical Advisory 
                                Committee of the Task Force.
    (c) Energy Savings Goals.--An agency that leases or 
purchases a stationary, portable, or micro fuel cell in 
accordance with subsection (b)(1) may use that lease or 
purchase to count toward an energy savings goal described in 
section 808 of this Act that is applicable to the agency.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 2006;
            (2) $50,000,000 for fiscal year 2007;
            (3) $75,000,000 for fiscal year 2008;
            (4) $100,000,000 for fiscal year 2009;
            (5) $100,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal 
        years 2011 through 2015.

                 Subtitle G--Diesel Emissions Reduction

SEC. 791. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Certified engine configuration.--The term 
        ``certified engine configuration'' means a new, 
        rebuilt, or remanufactured engine configuration--
                    (A) that has been certified or verified 
                by--
                            (i) the Administrator; or
                            (ii) the California Air Resources 
                        Board;
                    (B) that meets or is rebuilt or 
                remanufactured to a more stringent set of 
                engine emission standards, as determined by the 
                Administrator; and
                    (C) in the case of a certified engine 
                configuration involving the replacement of an 
                existing engine or vehicle, an engine 
                configuration that replaced an engine that 
                was--
                            (i) removed from the vehicle; and
                            (ii) returned to the supplier for 
                        remanufacturing to a more stringent set 
                        of engine emissions standards or for 
                        scrappage.
            (3) Eligible entity.--The term ``eligible entity'' 
        means--
                    (A) a regional, State, local, or tribal 
                agency or port authority with jurisdiction over 
                transportation or air quality; and
                    (B) a nonprofit organization or institution 
                that--
                            (i) represents or provides 
                        pollution reduction or educational 
                        services to persons or organizations 
                        that own or operate diesel fleets; or
                            (ii) has, as its principal purpose, 
                        the promotion of transportation or air 
                        quality.
            (4) Emerging technology.--The term ``emerging 
        technology'' means a technology that is not certified 
        or verified by the Administrator or the California Air 
        Resources Board but for which an approvable application 
        and test plan has been submitted for verification to 
        the Administrator or the California Air Resources 
        Board.
            (5) Fleet.--The term ``fleet'' means 1 or more 
        diesel vehicles or mobile or stationary diesel engines.
            (6) Heavy-duty truck.--The term ``heavy-duty 
        truck'' has the meaning given the term ``heavy duty 
        vehicle'' in section 202 of the Clean Air Act (42 
        U.S.C. 7521).
            (7) Medium-duty truck.--The term ``medium-duty 
        truck'' has such meaning as shall be determined by the 
        Administrator, by regulation.
            (8) Verified technology.--The term ``verified 
        technology'' means a pollution control technology, 
        including a retrofit technology, advanced truckstop 
        electrification system, or auxiliary power unit, that 
        has been verified by--
                    (A) the Administrator; or
                    (B) the California Air Resources Board.

SEC. 792. NATIONAL GRANT AND LOAN PROGRAMS.

    (a) In General.--The Administrator shall use 70 percent of 
the funds made available to carry out this subtitle for each 
fiscal year to provide grants and low-cost revolving loans, as 
determined by the Administrator, on a competitive basis, to 
eligible entities to achieve significant reductions in diesel 
emissions in terms of--
            (1) tons of pollution produced; and
            (2) diesel emissions exposure, particularly from 
        fleets operating in areas designated by the 
        Administrator as poor air quality areas.
    (b) Distribution.--
            (1) In general.--The Administrator shall distribute 
        funds made available for a fiscal year under this 
        subtitle in accordance with this section.
            (2) Fleets.--The Administrator shall provide not 
        less than 50 percent of funds available for a fiscal 
        year under this section to eligible entities for the 
        benefit of public fleets.
            (3) Engine configurations and technologies.--
                    (A) Certified engine configurations and 
                verified technologies.--The Administrator shall 
                provide not less than 90 percent of funds 
                available for a fiscal year under this section 
                to eligible entities for projects using--
                            (i) a certified engine 
                        configuration; or
                            (ii) a verified technology.
                    (B) Emerging technologies.--
                            (i) In general.--The Administrator 
                        shall provide not more than 10 percent 
                        of funds available for a fiscal year 
                        under this section to eligible entities 
                        for the development and 
                        commercialization of emerging 
                        technologies.
                            (ii) Application and test plan.--To 
                        receive funds under clause (i), a 
                        manufacturer, in consultation with an 
                        eligible entity, shall submit for 
                        verification to the Administrator or 
                        the California Air Resources Board a 
                        test plan for the emerging technology, 
                        together with the application under 
                        subsection (c).
    (c) Applications.--
            (1) In general.--To receive a grant or loan under 
        this section, an eligible entity shall submit to the 
        Administrator an application at a time, in a manner, 
        and including such information as the Administrator may 
        require.
            (2) Inclusions.--An application under this 
        subsection shall include--
                    (A) a description of the air quality of the 
                area served by the eligible entity;
                    (B) the quantity of air pollution produced 
                by the diesel fleets in the area served by the 
                eligible entity;
                    (C) a description of the project proposed 
                by the eligible entity, including--
                            (i) any certified engine 
                        configuration, verified technology, or 
                        emerging technology to be used or 
                        funded by the eligible entity; and
                            (ii) the means by which the project 
                        will achieve a significant reduction in 
                        diesel emissions;
                    (D) an evaluation (using methodology 
                approved by the Administrator or the National 
                Academy of Sciences) of the quantifiable and 
                unquantifiable benefits of the emissions 
                reductions of the proposed project;
                    (E) an estimate of the cost of the proposed 
                project;
                    (F) a description of the age and expected 
                lifetime control of the equipment used or 
                funded by the eligible entity;
                    (G) a description of the diesel fuel 
                available in the areas to be served by the 
                eligible entity, including the sulfur content 
                of the fuel; and
                    (H) provisions for the monitoring and 
                verification of the project.
            (3) Priority.--In providing a grant or loan under 
        this section, the Administrator shall give priority to 
        proposed projects that, as determined by the 
        Administrator--
                    (A) maximize public health benefits;
                    (B) are the most cost-effective;
                    (C) serve areas--
                            (i) with the highest population 
                        density;
                            (ii) that are poor air quality 
                        areas, including areas identified by 
                        the Administrator as--
                                    (I) in nonattainment or 
                                maintenance of national ambient 
                                air quality standards for a 
                                criteria pollutant;
                                    (II) Federal Class I areas; 
                                or
                                    (III) areas with toxic air 
                                pollutant concerns;
                            (iii) that receive a 
                        disproportionate quantity of air 
                        pollution from a diesel fleets, 
                        including truckstops, ports, rail 
                        yards, terminals, and distribution 
                        centers; or
                            (iv) that use a community-based 
                        multistakeholder collaborative process 
                        to reduce toxic emissions;
                    (D) include a certified engine 
                configuration, verified technology, or emerging 
                technology that has a long expected useful 
                life;
                    (E) will maximize the useful life of any 
                certified engine configuration, verified 
                technology, or emerging technology used or 
                funded by the eligible entity;
                    (F) conserve diesel fuel; and
                    (G) use diesel fuel with a sulfur content 
                of less than or equal to 15 parts per million, 
                as the Administrator determines to be 
                appropriate.
    (d) Use of Funds.--
            (1) In general.--An eligible entity may use a grant 
        or loan provided under this section to fund the costs 
        of--
                    (A) a retrofit technology (including any 
                incremental costs of a repowered or new diesel 
                engine) that significantly reduces emissions 
                through development and implementation of a 
                certified engine configuration, verified 
                technology, or emerging technology for--
                            (i) a bus;
                            (ii) a medium-duty truck or a 
                        heavy-duty truck;
                            (iii) a marine engine;
                            (iv) a locomotive; or
                            (v) a nonroad engine or vehicle 
                        used in--
                                    (I) construction;
                                    (II) handling of cargo 
                                (including at a port or 
                                airport);
                                    (III) agriculture;
                                    (IV) mining; or
                                    (V) energy production; or
                    (B) programs or projects to reduce long-
                duration idling using verified technology 
                involving a vehicle or equipment described in 
                subparagraph (A).
            (2) Regulatory programs.--
                    (A) In general.--Notwithstanding paragraph 
                (1), no grant or loan provided under this 
                section shall be used to fund the costs of 
                emissions reductions that are mandated under 
                Federal, State or local law.
                    (B) Mandated.--For purposes of subparagraph 
                (A), voluntary or elective emission reduction 
                measures shall not be considered ``mandated'', 
                regardless of whether the reductions are 
                included in the State implementation plan of a 
                State.

SEC. 793. STATE GRANT AND LOAN PROGRAMS.

    (a) In General.--Subject to the availability of adequate 
appropriations, the Administrator shall use 30 percent of the 
funds made available for a fiscal year under this subtitle to 
support grant and loan programs administered by States that are 
designed to achieve significant reductions in diesel emissions.
    (b) Applications.--The Administrator shall--
            (1) provide to States guidance for use in applying 
        for grant or loan funds under this section, including 
        information regarding--
                    (A) the process and forms for applications;
                    (B) permissible uses of funds received; and
                    (C) the cost-effectiveness of various 
                emission reduction technologies eligible to be 
                carried out using funds provided under this 
                section; and
            (2) establish, for applications described in 
        paragraph (1)--
                    (A) an annual deadline for submission of 
                the applications;
                    (B) a process by which the Administrator 
                shall approve or disapprove each application; 
                and
                    (C) a streamlined process by which a State 
                may renew an application described in paragraph 
                (1) for subsequent fiscal years.
    (c) Allocation of Funds.--
            (1) In general.--For each fiscal year, the 
        Administrator shall allocate among States for which 
        applications are approved by the Administrator under 
        subsection (b)(2)(B) funds made available to carry out 
        this section for the fiscal year.
            (2) Allocation.--Using not more than 20 percent of 
        the funds made available to carry out this subtitle for 
        a fiscal year, the Administrator shall provide to each 
        State described in paragraph (1) for the fiscal year an 
        allocation of funds that is equal to--
                    (A) if each of the 50 States qualifies for 
                an allocation, an amount equal to 2 percent of 
                the funds made available to carry out this 
                section; or
                    (B) if fewer than 50 States qualifies for 
                an allocation, an amount equal to the amount 
                described in subparagraph (A), plus an 
                additional amount equal to the product obtained 
                by multiplying--
                            (i) the proportion that--
                                    (I) the population of the 
                                State; bears to
                                    (II) the population of all 
                                States described in paragraph 
                                (1); by
                            (ii) the amount of funds remaining 
                        after each State described in paragraph 
                        (1) receives the 2-percent allocation 
                        under this paragraph.
            (3) State matching incentive.--
                    (A) In general.--If a State agrees to match 
                the allocation provided to the State under 
                paragraph (2) for a fiscal year, the 
                Administrator shall provide to the State for 
                the fiscal year an additional amount equal to 
                50 percent of the allocation of the State under 
                paragraph (2).
                    (B) Requirements.--A State--
                            (i) may not use funds received 
                        under this subtitle to pay a matching 
                        share required under this subsection; 
                        and
                            (ii) shall not be required to 
                        provide a matching share for any 
                        additional amount received under 
                        subparagraph (A).
            (4) Unclaimed funds.--Any funds that are not 
        claimed by a State for a fiscal year under this 
        subsection shall be used to carry out section 792.
    (d) Administration.--
            (1) In general.--Subject to paragraphs (2) and (3) 
        and, to the extent practicable, the priority areas 
        listed in section 792(c)(3), a State shall use any 
        funds provided under this section to develop and 
        implement such grant and low-cost revolving loan 
        programs in the State as are appropriate to meet State 
        needs and goals relating to the reduction of diesel 
        emissions.
            (2) Apportionment of funds.--The Governor of a 
        State that receives funding under this section may 
        determine the portion of funds to be provided as grants 
        or loans.
            (3) Use of funds.--A grant or loan provided under 
        this section may be used for a project relating to--
                    (A) a certified engine configuration; or
                    (B) a verified technology.

SEC. 794. EVALUATION AND REPORT.

    (a) In General.--Not later than 1 year after the date on 
which funds are made available under this subtitle, and 
biennially thereafter, the Administrator shall submit to 
Congress a report evaluating the implementation of the programs 
under this subtitle.
    (b) Inclusions.--The report shall include a description 
of--
            (1) the total number of grant applications 
        received;
            (2) each grant or loan made under this subtitle, 
        including the amount of the grant or loan;
            (3) each project for which a grant or loan is 
        provided under this subtitle, including the criteria 
        used to select the grant or loan recipients;
            (4) the actual and estimated air quality and diesel 
        fuel conservation benefits, cost-effectiveness, and 
        cost-benefits of the grant and loan programs under this 
        subtitle;
            (5) the problems encountered by projects for which 
        a grant or loan is provided under this subtitle; and
            (6) any other information the Administrator 
        considers to be appropriate.

SEC. 795. OUTREACH AND INCENTIVES.

    (a) Definition of Eligible Technology.--In this section, 
the term ``eligible technology'' means--
            (1) a verified technology; or
            (2) an emerging technology.
    (b) Technology Transfer Program.--
            (1) In general.--The Administrator shall establish 
        a program under which the Administrator--
                    (A) informs stakeholders of the benefits of 
                eligible technologies; and
                    (B) develops nonfinancial incentives to 
                promote the use of eligible technologies.
            (2) Eligible stakeholders.--Eligible stakeholders 
        under this section include--
                    (A) equipment owners and operators;
                    (B) emission and pollution control 
                technology manufacturers;
                    (C) engine and equipment manufacturers;
                    (D) State and local officials responsible 
                for air quality management;
                    (E) community organizations; and
                    (F) public health, educational, and 
                environmental organizations.
    (c) State Implementation Plans.--The Administrator shall 
develop appropriate guidance to provide credit to a State for 
emission reductions in the State created by the use of eligible 
technologies through a State implementation plan under section 
110 of the Clean Air Act (42 U.S.C. 7410).
    (d) International Markets.--The Administrator, in 
coordination with the Department of Commerce and industry 
stakeholders, shall inform foreign countries with air quality 
problems of the potential of technology developed or used in 
the United States to provide emission reductions in those 
countries.

SEC. 796. EFFECT OF SUBTITLE.

    Nothing in this subtitle affects any authority under the 
Clean Air Act (42 U.S.C. 7401 et seq.) in existence on the day 
before the date of enactment of this Act.

SEC. 797. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this 
subtitle $200,000,000 for each of fiscal years 2007 through 
2011, to remain available until expended.

                          TITLE VIII--HYDROGEN

SEC. 801. HYDROGEN AND FUEL CELL PROGRAM.

    This title may be cited as the ``Spark M. Matsunaga 
Hydrogen Act of 2005''.

SEC. 802. PURPOSES.

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

SEC. 803. DEFINITIONS.

    In this title:
            (1) Fuel cell.--The term ``fuel cell'' means a 
        device that directly converts the chemical energy of a 
        fuel, which is supplied from an external source, and an 
        oxidant into electricity by electrochemical processes 
        occurring at separate electrodes in the device.
            (2) Heavy-duty vehicle.--The term ``heavy-duty 
        vehicle'' means a motor vehicle that--
                    (A) is rated at more than 8,500 pounds 
                gross vehicle weight;
                    (B) has a curb weight of more than 6,000 
                pounds; or
                    (C) has a basic vehicle frontal area in 
                excess of 45 square feet.
            (3) Infrastructure.--The term ``infrastructure'' 
        means the equipment, systems, or facilities used to 
        produce, distribute, deliver, or store hydrogen (except 
        for onboard storage).
            (4) Light-duty vehicle.--The term ``light-duty 
        vehicle'' means a motor vehicle that is rated at 8,500 
        or less pounds gross vehicle weight.
            (5) Stationary; portable.--The terms ``stationary'' 
        and ``portable'', when used in reference to a fuel 
        cell, include--
                    (A) continuous electric power; and
                    (B) backup electric power.
            (6) Task force.--The term ``Task Force'' means the 
        Hydrogen and Fuel Cell Technical Task Force established 
        under section 806.
            (7) Technical advisory committee.--The term 
        ``Technical Advisory Committee'' means the independent 
        Technical Advisory Committee established under section 
        807.

SEC. 804. PLAN.

    Not later than 6 months after the date of enactment of this 
Act, the Secretary shall transmit to Congress a coordinated 
plan for the programs described in this title and any other 
programs of the Department that are directly related to fuel 
cells or hydrogen. The plan shall describe, at a minimum--
            (1) the agenda for the next 5 years for the 
        programs authorized under this title, including the 
        agenda for each activity enumerated in section 805(e);
            (2) the types of entities that will carry out the 
        activities under this title and what role each entity 
        is expected to play;
            (3) the milestones that will be used to evaluate 
        the programs for the next 5 years;
            (4) the most significant technical and nontechnical 
        hurdles that stand in the way of achieving the goals 
        described in section 805, and how the programs will 
        address those hurdles; and
            (5) the policy assumptions that are implicit in the 
        plan, including any assumptions that would affect the 
        sources of hydrogen or the marketability of hydrogen-
        related products.

SEC. 805. PROGRAMS.

    (a) In General.--The Secretary, in consultation with other 
Federal agencies and the private sector, shall conduct a 
research and development program on technologies relating to 
the production, purification, distribution, storage, and use of 
hydrogen energy, fuel cells, and related infrastructure.
    (b) Goal.--The goal of the program shall be to demonstrate 
and commercialize the use of hydrogen for transportation (in 
light-duty vehicles and heavy-duty vehicles), utility, 
industrial, commercial, and residential applications.
    (c) Focus.--In carrying out activities under this section, 
the Secretary shall focus on factors that are common to the 
development of hydrogen infrastructure and the supply of 
vehicle and electric power for critical consumer and commercial 
applications, and that achieve continuous technical evolution 
and cost reduction, particularly for hydrogen production, the 
supply of hydrogen, storage of hydrogen, and end uses of 
hydrogen that--
            (1) steadily increase production, distribution, and 
        end use efficiency and reduce life-cycle emissions;
            (2) resolve critical problems relating to 
        catalysts, membranes, storage, lightweight materials, 
        electronic controls, manufacturability, and other 
        problems that emerge from the program;
            (3) enhance sources of renewable fuels and biofuels 
        for hydrogen production; and
            (4) enable widespread use of distributed 
        electricity generation and storage.
    (d) Public Education and Research.--In carrying out this 
section, the Secretary shall support enhanced public education 
and research conducted at institutions of higher education in 
fundamental sciences, application design, and systems concepts 
(including education and research relating to materials, 
subsystems, manufacturability, maintenance, and safety) 
relating to hydrogen and fuel cells.
    (e) Activities.--The Secretary, in partnership with the 
private sector, shall conduct programs to address--
            (1) production of hydrogen from diverse energy 
        sources, including--
                    (A) fossil fuels, which may include carbon 
                capture and sequestration;
                    (B) hydrogen-carrier fuels (including 
                ethanol and methanol);
                    (C) renewable energy resources, including 
                biomass; and
                    (D) nuclear energy;
            (2) use of hydrogen for commercial, industrial, and 
        residential electric power generation;
            (3) safe delivery of hydrogen or hydrogen-carrier 
        fuels, including--
                    (A) transmission by pipeline and other 
                distribution methods; and
                    (B) convenient and economic refueling of 
                vehicles either at central refueling stations 
                or through distributed onsite generation;
            (4) advanced vehicle technologies, including--
                    (A) engine and emission control systems;
                    (B) energy storage, electric propulsion, 
                and hybrid systems;
                    (C) automotive materials; and
                    (D) other advanced vehicle technologies;
            (5) storage of hydrogen or hydrogen-carrier fuels, 
        including development of materials for safe and 
        economic storage in gaseous, liquid, or solid form at 
        refueling facilities and onboard vehicles;
            (6) development of safe, durable, affordable, and 
        efficient fuel cells, including fuel-flexible fuel cell 
        power systems, improved manufacturing processes, high-
        temperature membranes, cost-effective fuel processing 
        for natural gas, fuel cell stack and system 
        reliability, low temperature operation, and cold start 
        capability; and
            (7) the ability of domestic automobile 
        manufacturers to manufacture commercially available 
        competitive hybrid vehicle technologies in the United 
        States.
    (f) Program Goals.--
            (1) Vehicles.--For vehicles, the goals of the 
        program are--
                    (A) to enable a commitment by automakers no 
                later than year 2015 to offer safe, affordable, 
                and technically viable hydrogen fuel cell 
                vehicles in the mass consumer market; and
                    (B) to enable production, delivery, and 
                acceptance by consumers of model year 2020 
                hydrogen fuel cell and other hydrogen-powered 
                vehicles that will have, when compared to light 
                duty vehicles in model year 2005--
                            (i) fuel economy that is 
                        substantially higher;
                            (ii) substantially lower emissions 
                        of air pollutants; and
                            (iii) equivalent or improved 
                        vehicle fuel system crash integrity and 
                        occupant protection.
            (2) Hydrogen energy and energy infrastructure.--For 
        hydrogen energy and energy infrastructure, the goals of 
        the program are to enable a commitment not later than 
        2015 that will lead to infrastructure by 2020 that will 
        provide--
                    (A) safe and convenient refueling;
                    (B) improved overall efficiency;
                    (C) widespread availability of hydrogen 
                from domestic energy sources through--
                            (i) production, with consideration 
                        of emissions levels;
                            (ii) delivery, including 
                        transmission by pipeline and other 
                        distribution methods for hydrogen; and
                            (iii) storage, including storage in 
                        surface transportation vehicles;
                    (D) hydrogen for fuel cells, internal 
                combustion engines, and other energy conversion 
                devices for portable, stationary, micro, 
                critical needs facilities, and transportation 
                applications; and
                    (E) other technologies consistent with the 
                Department's plan.
            (3) Fuel cells.--The goals for fuel cells and their 
        portable, stationary, and transportation applications 
        are to enable--
                    (A) safe, economical, and environmentally 
                sound hydrogen fuel cells;
                    (B) fuel cells for light duty and other 
                vehicles; and
                    (C) other technologies consistent with the 
                Department's plan.
    (g) Funding.--
            (1) In general.--The Secretary shall carry out the 
        programs under this section using a competitive, merit-
        based review process and consistent with the generally 
        applicable Federal laws and regulations governing 
        awards of financial assistance, contracts, or other 
        agreements.
            (2) Research centers.--Activities under this 
        section may be carried out by funding nationally 
        recognized university-based or Federal laboratory 
        research centers.
    (h) Hydrogen Supply.--There are authorized to be 
appropriated to carry out projects and activities relating to 
hydrogen production, storage, distribution and dispensing, 
transport, education and coordination, and technology transfer 
under this section--
            (1) $160,000,000 for fiscal year 2006;
            (2) $200,000,000 for fiscal year 2007;
            (3) $220,000,000 for fiscal year 2008;
            (4) $230,000,000 for fiscal year 2009;
            (5) $250,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal 
        years 2011 through 2020.
    (i) Fuel Cell Technologies.--There are authorized to be 
appropriated to carry out projects and activities relating to 
fuel cell technologies under this section--
            (1) $150,000,000 for fiscal year 2006;
            (2) $160,000,000 for fiscal year 2007;
            (3) $170,000,000 for fiscal year 2008;
            (4) $180,000,000 for fiscal year 2009;
            (5) $200,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal 
        years 2011 through 2020.

SEC. 806. HYDROGEN AND FUEL CELL TECHNICAL TASK FORCE.

    (a) Establishment.--Not later than 120 days after the date 
of enactment of this Act, the President shall establish an 
interagency task force chaired by the Secretary with 
representatives from each of the following:
            (1) The Office of Science and Technology Policy 
        within the Executive Office of the President.
            (2) The Department of Transportation.
            (3) The Department of Defense.
            (4) The Department of Commerce (including the 
        National Institute of Standards and Technology).
            (5) The Department of State.
            (6) The Environmental Protection Agency.
            (7) The National Aeronautics and Space 
        Administration.
            (8) Other Federal agencies as the Secretary 
        determines appropriate.
    (b) Duties.--
            (1) Planning.--The Task Force shall work toward--
                    (A) a safe, economical, and environmentally 
                sound fuel infrastructure for hydrogen and 
                hydrogen-carrier fuels, including an 
                infrastructure that supports buses and other 
                fleet transportation;
                    (B) fuel cells in government and other 
                applications, including portable, stationary, 
                and transportation applications;
                    (C) distributed power generation, including 
                the generation of combined heat, power, and 
                clean fuels including hydrogen;
                    (D) uniform hydrogen codes, standards, and 
                safety protocols; and
                    (E) vehicle hydrogen fuel system integrity 
                safety performance.
            (2) Activities.--The Task Force may organize 
        workshops and conferences, may issue publications, and 
        may create databases to carry out its duties. The Task 
        Force shall--
                    (A) foster the exchange of generic, 
                nonproprietary information and technology among 
                industry, academia, and government;
                    (B) develop and maintain an inventory and 
                assessment of hydrogen, fuel cells, and other 
                advanced technologies, including the commercial 
                capability of each technology for the economic 
                and environmentally safe production, 
                distribution, delivery, storage, and use of 
                hydrogen;
                    (C) integrate technical and other 
                information made available as a result of the 
                programs and activities under this title;
                    (D) promote the marketplace introduction of 
                infrastructure for hydrogen fuel vehicles; and
                    (E) conduct an education program to provide 
                hydrogen and fuel cell information to potential 
                end-users.
    (c) Agency Cooperation.--The heads of all agencies, 
including those whose agencies are not represented on the Task 
Force, shall cooperate with and furnish information to the Task 
Force, the Technical Advisory Committee, and the Department.

SEC. 807. TECHNICAL ADVISORY COMMITTEE.

    (a) Establishment.--The Hydrogen Technical and Fuel Cell 
Advisory Committee is established to advise the Secretary on 
the programs and activities under this title.
    (b) Membership.--
            (1) Members.--The Technical Advisory Committee 
        shall be comprised of not fewer than 12 nor more than 
        25 members. The members shall be appointed by the 
        Secretary to represent domestic industry, academia, 
        professional societies, government agencies, Federal 
        laboratories, previous advisory panels, and financial, 
        environmental, and other appropriate organizations 
        based on the Department's assessment of the technical 
        and other qualifications of Technical Advisory 
        Committee members and the needs of the Technical 
        Advisory Committee.
            (2) Terms.--The term of a member of the Technical 
        Advisory Committee shall not be more than 3 years. The 
        Secretary may appoint members of the Technical Advisory 
        Committee in a manner that allows the terms of the 
        members serving at any time to expire at spaced 
        intervals so as to ensure continuity in the functioning 
        of the Technical Advisory Committee. A member of the 
        Technical Advisory Committee whose term is expiring may 
        be reappointed.
            (3) Chairperson.--The Technical Advisory Committee 
        shall have a chairperson, who shall be elected by the 
        members from among their number.
    (c) Review.--The Technical Advisory Committee shall review 
and make recommendations to the Secretary on--
            (1) the implementation of programs and activities 
        under this title;
            (2) the safety, economical, and environmental 
        consequences of technologies for the production, 
        distribution, delivery, storage, or use of hydrogen 
        energy and fuel cells; and
            (3) the plan under section 804.
    (d) Response.--
            (1) Consideration of recommendations.--The 
        Secretary shall consider, but need not adopt, any 
        recommendations of the Technical Advisory Committee 
        under subsection (c).
            (2) Biennial report.--The Secretary shall transmit 
        a biennial report to Congress describing any 
        recommendations made by the Technical Advisory 
        Committee since the previous report. The report shall 
        include a description of how the Secretary has 
        implemented or plans to implement the recommendations, 
        or an explanation of the reasons that a recommendation 
        will not be implemented. The report shall be 
        transmitted along with the President's budget proposal.
    (e) Support.--The Secretary shall provide resources 
necessary in the judgment of the Secretary for the Technical 
Advisory Committee to carry out its responsibilities under this 
title.

SEC. 808. DEMONSTRATION.

    (a) In General.--In carrying out the programs under this 
section, the Secretary shall fund a limited number of 
demonstration projects, consistent with this title and a 
determination of the maturity, cost-effectiveness, and 
environmental impacts of technologies supporting each project. 
In selecting projects under this subsection, the Secretary 
shall, to the extent practicable and in the public interest, 
select projects that--
            (1) involve using hydrogen and related products at 
        existing facilities or installations, such as existing 
        office buildings, military bases, vehicle fleet 
        centers, transit bus authorities, or units of the 
        National Park System;
            (2) depend on reliable power from hydrogen to carry 
        out essential activities;
            (3) lead to the replication of hydrogen 
        technologies and draw such technologies into the 
        marketplace;
            (4) include vehicle, portable, and stationary 
        demonstrations of fuel cell and hydrogen-based energy 
        technologies;
            (5) address the interdependency of demand for 
        hydrogen fuel cell applications and hydrogen fuel 
        infrastructure;
            (6) raise awareness of hydrogen technology among 
        the public;
            (7) facilitate identification of an optimum 
        technology among competing alternatives;
            (8) address distributed generation using renewable 
        sources;
            (9) carry out demonstrations of evolving hydrogen 
        and fuel cell technologies in national parks, remote 
        island areas, and on Indian tribal land, as selected by 
        the Secretary;
            (10) carry out a program to demonstrate 
        developmental hydrogen and fuel cell systems for 
        mobile, portable, and stationary uses, using improved 
        versions of the learning demonstrations program concept 
        of the Department including demonstrations involving--
                    (A) light-duty vehicles;
                    (B) heavy-duty vehicles;
                    (C) fleet vehicles;
                    (D) specialty industrial and farm vehicles; 
                and
                    (E) commercial and residential portable, 
                continuous, and backup electric power 
                generation;
            (11) in accordance with any code or standards 
        developed in a region, fund prototype, pilot fleet, and 
        infrastructure regional hydrogen supply corridors along 
        the interstate highway system in varied climates across 
        the United States; and
            (12) fund demonstration programs that explore the 
        use of hydrogen blends, hybrid hydrogen, and hydrogen 
        reformed from renewable agricultural fuels, including 
        the use of hydrogen in hybrid electric, heavier duty, 
        and advanced internal combustion-powered vehicles.
The Secretary shall give preference to projects which address 
multiple elements contained in paragraphs (1) through (12).
    (b) System Demonstrations.--
            (1) In general.--As a component of the 
        demonstration program under this section, the Secretary 
        shall provide grants, on a cost share basis as 
        appropriate, to eligible entities (as determined by the 
        Secretary) for use in--
                    (A) devising system design concepts that 
                provide for the use of advanced composite 
                vehicles in programs under section 782 that--
                            (i) have as a primary goal the 
                        reduction of drive energy requirements;
                            (ii) after 2010, add another 
                        research and development phase, as 
                        defined in subsection (c), including 
                        the vehicle and infrastructure 
                        partnerships developed under the 
                        learning demonstrations program concept 
                        of the Department; and
                            (iii) are managed through an 
                        enhanced FreedomCAR program within the 
                        Department that encourages involvement 
                        in cost-shared projects by 
                        manufacturers and governments; and
                    (B) designing a local distributed energy 
                system that--
                            (i) incorporates renewable hydrogen 
                        production, off-grid electricity 
                        production, and fleet applications in 
                        industrial or commercial service;
                            (ii) integrates energy or 
                        applications described in clause (i), 
                        such as stationary, portable, micro, 
                        and mobile fuel cells, into a high-
                        density commercial or residential 
                        building complex or agricultural 
                        community; and
                            (iii) is managed in cooperation 
                        with industry, State, tribal, and local 
                        governments, agricultural 
                        organizations, and nonprofit generators 
                        and distributors of electricity.
    (c) Identification of New Program Requirements.--In 
carrying out the demonstrations under subsection (a), the 
Secretary, in consultation with the Task Force and the 
Technical Advisory Committee, shall--
            (1) after 2008 for stationary and portable 
        applications, and after 2010 for vehicles, identify new 
        requirements that refine technological concepts, 
        planning, and applications; and
            (2) during the second phase of the learning 
        demonstrations under subsection (b)(1)(A)(ii), redesign 
        subsequent program work to incorporate those 
        requirements.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
            (1) $185,000,000 for fiscal year 2006;
            (2) $200,000,000 for fiscal year 2007;
            (3) $250,000,000 for fiscal year 2008;
            (4) $300,000,000 for fiscal year 2009;
            (5) $375,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal 
        years 2011 through 2020.

SEC. 809. CODES AND STANDARDS.

    (a) In General.--The Secretary, in cooperation with the 
Task Force, shall provide grants to, or offer to enter into 
contracts with, such professional organizations, public service 
organizations, and government agencies as the Secretary 
determines appropriate to support timely and extensive 
development of safety codes and standards relating to fuel cell 
vehicles, hydrogen energy systems, and stationary, portable, 
and micro fuel cells.
    (b) Educational Efforts.--The Secretary shall support 
educational efforts by organizations and agencies described in 
subsection (a) to share information, including information 
relating to best practices, among those organizations and 
agencies.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
            (1) $4,000,000 for fiscal year 2006;
            (2) $7,000,000 for fiscal year 2007;
            (3) $8,000,000 for fiscal year 2008;
            (4) $10,000,000 for fiscal year 2009;
            (5) $9,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal 
        years 2011 through 2020.

SEC. 810. DISCLOSURE.

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

SEC. 811. REPORTS.

    (a) Secretary.--Subject to subsection (c), not later than 2 
years after the date of enactment of this Act, and triennially 
thereafter, the Secretary shall submit to Congress a report 
describing--
            (1) activities carried out by the Department under 
        this title, for hydrogen and fuel cell technology;
            (2) measures the Secretary has taken during the 
        preceding 3 years to support the transition of primary 
        industry (or a related industry) to a fully 
        commercialized hydrogen economy;
            (3) any change made to the strategy relating to 
        hydrogen and fuel cell technology to reflect the 
        results of a learning demonstrations;
            (4) progress, including progress in infrastructure, 
        made toward achieving the goal of producing and 
        deploying not less than--
                    (A) 100,000 hydrogen-fueled vehicles in the 
                United States by 2010; and
                    (B) 2,500,000 hydrogen-fueled vehicles in 
                the United States by 2020;
            (5) progress made toward achieving the goal of 
        supplying hydrogen at a sufficient number of fueling 
        stations in the United States by 2010 including by 
        integrating--
                    (A) hydrogen activities; and
                    (B) associated targets and timetables for 
                the development of hydrogen technologies;
            (6) any problem relating to the design, execution, 
        or funding of a program under this title;
            (7) progress made toward and goals achieved in 
        carrying out this title and updates to the 
        developmental roadmap, including the results of the 
        reviews conducted by the National Academy of Sciences 
        under subsection (b) for the fiscal years covered by 
        the report; and
            (8) any updates to strategic plans that are 
        necessary to meet the goals described in paragraph (4).
    (b) External Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which 
the Academy will review the programs under sections 805 and 808 
every fourth year following the date of enactment of this Act. 
The Academy's review shall include the program priorities and 
technical milestones, and evaluate the progress toward 
achieving them. The first review shall be completed not later 
than 5 years after the date of enactment of this Act. Not later 
than 45 days after receiving the review, the Secretary shall 
transmit the review to Congress along with a plan to implement 
the review's recommendations or an explanation for the reasons 
that a recommendation will not be implemented.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,500,000 for 
each of fiscal years 2006 through 2020.

SEC. 812. SOLAR AND WIND TECHNOLOGIES.

    (a) Solar Energy Technologies.--The Secretary shall--
            (1) prepare a detailed roadmap for carrying out the 
        provisions in this title related to solar energy 
        technologies and for implementing the recommendations 
        related to solar energy technologies that are included 
        in the report transmitted under subsection (e);
            (2) provide for the establishment of 5 projects in 
        geographic areas that are regionally and climatically 
        diverse to demonstrate the production of hydrogen at 
        solar energy facilities, including one demonstration 
        project at a National Laboratory or institution of 
        higher education;
            (3) establish a program--
                    (A) to develop optimized concentrating 
                solar power devices that may be used for the 
                production of both electricity and hydrogen; 
                and
                    (B) to evaluate the use of thermochemical 
                cycles for hydrogen production at the 
                temperatures attainable with concentrating 
                solar power devices;
            (4) coordinate with activities sponsored by the 
        Department's Office of Nuclear Energy, Science, and 
        Technology on high-temperature materials, 
        thermochemical cycles, and economic issues related to 
        solar energy;
            (5) provide for the construction and operation of 
        new concentrating solar power devices or solar power 
        cogeneration facilities that produce hydrogen either 
        concurrently with, or independently of, the production 
        of electricity;
            (6) support existing facilities and programs of 
        study related to concentrating solar power devices; and
            (7) establish a program--
                    (A) to develop methods that use electricity 
                from photovoltaic devices for the onsite 
                production of hydrogen, such that no 
                intermediate transmission or distribution 
                infrastructure is required or used and future 
                demand growth may be accommodated;
                    (B) to evaluate the economics of small-
                scale electrolysis for hydrogen production; and
                    (C) to study the potential of modular 
                photovoltaic devices for the development of a 
                hydrogen infrastructure, the security 
                implications of a hydrogen infrastructure, and 
                the benefits potentially derived from a 
                hydrogen infrastructure.
    (b) Wind Energy Technologies.--The Secretary shall--
            (1) prepare a detailed roadmap for carrying out the 
        provisions in this title related to wind energy 
        technologies and for implementing the recommendations 
        related to wind energy technologies that are included 
        in the report transmitted under subsection (e); and
            (2) provide for the establishment of 5 projects in 
        geographic areas that are regionally and climatically 
        diverse to demonstrate the production of hydrogen at 
        existing wind energy facilities, including one 
        demonstration project at a National Laboratory or 
        institution of higher education.
    (c) Program Support.--The Secretary shall support programs 
at institutions of higher education for the development of 
solar energy technologies and wind energy technologies for the 
production of hydrogen. The programs supported under this 
subsection shall--
            (1) enhance fellowship and faculty assistance 
        programs;
            (2) provide support for fundamental research;
            (3) encourage collaborative research among 
        industry, National Laboratories, and institutions of 
        higher education;
            (4) support communication and outreach; and
            (5) to the greatest extent possible--
                    (A) be located in geographic areas that are 
                regionally and climatically diverse; and
                    (B) be located at part B institutions, 
                minority institutions, and institutions of 
                higher education located in States 
                participating in the Experimental Program to 
                Stimulate Competitive Research of the 
                Department.
    (d) Institutions of Higher Education and National 
Laboratory Interactions.--In conjunction with the programs 
supported under this section, the Secretary shall develop 
sabbatical, fellowship, and visiting scientist programs to 
encourage National Laboratories and institutions of higher 
education to share and exchange personnel.
    (e) Report.--The Secretary shall transmit to the Congress 
not later than 120 days after the date of enactment of this Act 
a report containing detailed summaries of the roadmaps prepared 
under subsections (a)(1) and (b)(1), descriptions of the 
Secretary's progress in establishing the projects and other 
programs required under this section, and recommendations for 
promoting the availability of advanced solar and wind energy 
technologies for the production of hydrogen.
    (f) Definitions.--For purposes of this section--
            (1) the term ``concentrating solar power devices'' 
        means devices that concentrate the power of the sun by 
        reflection or refraction to improve the efficiency of a 
        photovoltaic or thermal generation process;
            (2) the term ``minority institution'' has the 
        meaning given to that term in section 365 of the Higher 
        Education Act of 1965 (20 U.S.C. 1067k);
            (3) the term ``part B institution'' has the meaning 
        given to that term in section 322 of the Higher 
        Education Act of 1965 (20 U.S.C. 1061); and
            (4) the term ``photovoltaic devices'' means devices 
        that convert light directly into electricity through a 
        solid-state, semiconductor process.
    (g) Authorization of Appropriations.--There is authorized 
to be appropriated such sums as are necessary for carrying out 
the activities under this section for each of fiscal years 2006 
through 2020.

SEC. 813. TECHNOLOGY TRANSFER.

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

SEC. 814. MISCELLANEOUS PROVISIONS.

    (a) Representation.--The Secretary may represent the United 
States interests with respect to activities and programs under 
this title, in coordination with the Department of 
Transportation, the National Institute of Standards and 
Technology, and other relevant Federal agencies, before 
governments and nongovernmental organizations including--
            (1) other Federal, State, regional, and local 
        governments and their representatives;
            (2) industry and its representatives, including 
        members of the energy and transportation industries; 
        and
            (3) in consultation with the Department of State, 
        foreign governments and their representatives including 
        international organizations.
    (b) Regulatory Authority.--Nothing in this title shall be 
construed to alter the regulatory authority of the Department.

SEC. 815. COST SHARING.

    The costs of carrying out projects and activities under 
this title shall be shared in accordance with section 988.

SEC. 816. SAVINGS CLAUSE.

    Nothing in this title shall be construed to affect the 
authority of the Secretary of Transportation that may exist 
prior to the date of enactment of this Act with respect to--
            (1) research into, and regulation of, hydrogen-
        powered vehicles fuel systems integrity, standards, and 
        safety under subtitle VI of title 49, United States 
        Code;
            (2) regulation of hazardous materials 
        transportation under chapter 51 of title 49, United 
        States Code;
            (3) regulation of pipeline safety under chapter 601 
        of title 49, United States Code;
            (4) encouragement and promotion of research, 
        development, and deployment activities relating to 
        advanced vehicle technologies under section 5506 of 
        title 49, United States Code;
            (5) regulation of motor vehicle safety under 
        chapter 301 of title 49, United States Code;
            (6) automobile fuel economy under chapter 329 of 
        title 49, United States Code; or
            (7) representation of the interests of the United 
        States with respect to the activities and programs 
        under the authority of title 49, United States Code.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. SHORT TITLE.

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

SEC. 902. GOALS.

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

SEC. 903. DEFINITIONS.

    In this title:
            (1) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the 
        Secretary by the Department of Energy Organization Act 
        (42 U.S.C. 7101 et seq.) or other law.
            (2) Hispanic-serving institution.--The term 
        ``Hispanic-serving institution'' has the meaning given 
        the term in section 502(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1101a(a)).
            (3) Nonmilitary energy laboratory.--The term 
        ``nonmilitary energy laboratory'' means a National 
        Laboratory other than a National Laboratory listed in 
        subparagraph (G), (H), or (N) of section 2(3).
            (4) Part b institution.--The term ``part B 
        institution'' has the meaning given the term in section 
        322 of the Higher Education Act of 1965 (20 U.S.C. 
        1061).
            (5) Single-purpose research facility.--The term 
        ``single-purpose research facility'' means--
                    (A) any of the primarily single-purpose 
                entities owned by the Department; or
                    (B) any other organization of the 
                Department designated by the Secretary.
            (6) University.--The term ``university'' has the 
        meaning given the term ``institution of higher 
        education'' in section 101 of the Higher Education Act 
        of 1965 (20 U.S.C. 1001).

                     Subtitle A--Energy Efficiency

SEC. 911. ENERGY EFFICIENCY.

    (a) In General.--
            (1) Objectives.--The Secretary shall conduct 
        programs of energy efficiency research, development, 
        demonstration, and commercial application, including 
        activities described in this subtitle. Such programs 
        shall take into consideration the following objectives:
                    (A) Increasing the energy efficiency of 
                vehicles, buildings, and industrial processes.
                    (B) Reducing the demand of the United 
                States for energy, especially energy from 
                foreign sources.
                    (C) Reducing the cost of energy and making 
                the economy more efficient and competitive.
                    (D) Improving the energy security of the 
                United States.
                    (E) Reducing the environmental impact of 
                energy-related activities.
            (2) Programs.--Programs under this subtitle shall 
        include research, development, demonstration, and 
        commercial application of--
                    (A) advanced, cost-effective technologies 
                to improve the energy efficiency and 
                environmental performance of vehicles, 
                including--
                            (i) hybrid and electric propulsion 
                        systems;
                            (ii) plug-in hybrid systems;
                            (iii) advanced combustion engines;
                            (iv) weight and drag reduction 
                        technologies;
                            (v) whole-vehicle design 
                        optimization; and
                            (vi) advanced drive trains;
                    (B) cost-effective technologies, for new 
                construction and retrofit, to improve the 
                energy efficiency and environmental performance 
                of buildings, using a whole-buildings approach, 
                including onsite renewable energy generation;
                    (C) advanced technologies to improve the 
                energy efficiency, environmental performance, 
                and process efficiency of energy-intensive and 
                waste-intensive industries; and
                    (D) advanced control devices to improve the 
                energy efficiency of electric motors, including 
                those used in industrial processes, heating, 
                ventilation, and cooling.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out energy 
efficiency and conservation research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle--
            (1) $783,000,000 for fiscal year 2007;
            (2) $865,000,000 for fiscal year 2008; and
            (3) $952,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection 
(b), the following sums are authorized:
            (1) For activities under section 912, $50,000,000 
        for each of fiscal years 2007 through 2009.
            (2) For activities under section 915, $7,000,000 
        for each of fiscal years 2007 through 2009.
            (3) For activities under subsection (a)(2)(A)--
                    (A) $200,000,000 for fiscal year 2007;
                    (B) $270,000,000 for fiscal year 2008; and
                    (C) $310,000,000 for fiscal year 2009.
            (4) For activities under subsection (a)(2)(D), 
        $2,000,000 for each of fiscal years 2007 and 2008.
    (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary to carry out section 912 
$50,000,000 for each of fiscal years 2010 through 2013.
    (e) Limitations.--None of the funds authorized to be 
appropriated under this section may be used for--
            (1) the issuance or implementation of energy 
        efficiency regulations;
            (2) the weatherization program established under 
        part A of title IV of the Energy Conservation and 
        Production Act (42 U.S.C. 6861 et seq.);
            (3) a State energy conservation plan established 
        under part D of title III of the Energy Policy and 
        Conservation Act (42 U.S.C. 6321 et seq.); or
            (4) a Federal energy management measure carried out 
        under part 3 of title V of the National Energy 
        Conservation Policy Act (42 U.S.C. 8251 et seq.).

SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.

    (a) Definitions.--In this section:
            (1) Advanced solid-state lighting.--The term 
        ``advanced solid-state lighting'' means a 
        semiconducting device package and delivery system that 
        produces white light using externally applied voltage.
            (2) Industry alliance.--The term ``Industry 
        Alliance'' means an entity selected by the Secretary 
        under subsection (d).
            (3) Initiative.--The term ``Initiative'' means the 
        Next Generation Lighting Initiative carried out under 
        this section.
            (4) Research.--The term ``research'' includes 
        research on the technologies, materials, and 
        manufacturing processes required for white light 
        emitting diodes.
            (5) White light emitting diode.--The term ``white 
        light emitting diode'' means a semiconducting package, 
        using either organic or inorganic materials, that 
        produces white light using externally applied voltage.
    (b) Initiative.--The Secretary shall carry out a Next 
Generation Lighting Initiative in accordance with this section 
to support research, development, demonstration, and commercial 
application activities related to advanced solid-state lighting 
technologies based on white light emitting diodes.
    (c) Objectives.--The objectives of the Initiative shall be 
to develop advanced solid-state organic and inorganic lighting 
technologies based on white light emitting diodes that, 
compared to incandescent and fluorescent lighting technologies, 
are longer lasting, are more energy-efficient and cost-
competitive, and have less environmental impact.
    (d) Industry Alliance.--Not later than 90 days after the 
date of enactment of this Act, the Secretary shall 
competitively select an Industry Alliance to represent 
participants who are private, for-profit firms, open to large 
and small businesses, that, as a group, are broadly 
representative of United States solid state lighting research, 
development, infrastructure, and manufacturing expertise as a 
whole.
    (e) Research.--
            (1) Grants.--The Secretary shall carry out the 
        research activities of the Initiative through 
        competitively awarded grants to--
                    (A) researchers, including Industry 
                Alliance participants;
                    (B) small businesses;
                    (C) National Laboratories; and
                    (D) institutions of higher education.
            (2) Industry alliance.--The Secretary shall 
        annually solicit from the Industry Alliance--
                    (A) comments to identify solid-state 
                lighting technology needs;
                    (B) an assessment of the progress of the 
                research activities of the Initiative; and
                    (C) assistance in annually updating solid-
                state lighting technology roadmaps.
            (3) Availability to public.--The information and 
        roadmaps under paragraph (2) shall be available to the 
        public.
    (f) Development, Demonstration, and Commercial 
Application.--
            (1) In general.--The Secretary shall carry out a 
        development, demonstration, and commercial application 
        program for the Initiative through competitively 
        selected awards.
            (2) Preference.--In making the awards, the 
        Secretary may give preference to participants in the 
        Industry Alliance.
    (g) Cost Sharing.--In carrying out this section, the 
Secretary shall require cost sharing in accordance with section 
988.
    (h) Intellectual Property.--The Secretary may require (in 
accordance with section 202(a)(ii) of title 35, United States 
Code, section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 
2182), and section 9 of the Federal Nonnuclear Energy Research 
and Development Act of 1974 (42 U.S.C. 5908)) that for any new 
invention developed under subsection (e)--
            (1) that the Industry Alliance participants who are 
        active participants in research, development, and 
        demonstration activities related to the advanced solid-
        state lighting technologies that are covered by this 
        section shall be granted the first option to negotiate 
        with the invention owner, at least in the field of 
        solid-state lighting, nonexclusive licenses and 
        royalties on terms that are reasonable under the 
        circumstances;
            (2)(A) that, for 1 year after a United States 
        patent is issued for the invention, the patent holder 
        shall not negotiate any license or royalty with any 
        entity that is not a participant in the Industry 
        Alliance described in paragraph (1); and
            (B) that, during the year described in subparagraph 
        (A), the patent holder shall negotiate nonexclusive 
        licenses and royalties in good faith with any 
        interested participant in the Industry Alliance 
        described in paragraph (1); and
            (3) such other terms as the Secretary determines 
        are required to promote accelerated commercialization 
        of inventions made under the Initiative.
    (i) National Academy Review.--The Secretary shall enter 
into an arrangement with the National Academy of Sciences to 
conduct periodic reviews of the Initiative.

SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.

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

SEC. 914. BUILDING STANDARDS.

    (a) Definition of High Performance Building.--In this 
section, the term ``high performance building'' means a 
building that integrates and optimizes all major high-
performance building attributes, including energy efficiency, 
durability, life-cycle performance, and occupant productivity.
    (b) Assessment.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall enter into an 
agreement with the National Institute of Building Sciences to--
            (1) conduct an assessment (in cooperation with 
        industry, standards development organizations, and 
        other entities, as appropriate) of whether the current 
        voluntary consensus standards and rating systems for 
        high performance buildings are consistent with the 
        current technological state of the art, including 
        relevant results from the research, development and 
        demonstration activities of the Department;
            (2) determine if additional research is required, 
        based on the findings of the assessment; and
            (3) recommend steps for the Secretary to accelerate 
        the development of voluntary consensus-based standards 
        for high performance buildings that are based on the 
        findings of the assessment.
    (c) Grant and Technical Assistance Program.--Consistent 
with subsection (b) and section 12(d) of the National 
Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note), the Secretary shall establish a grant and technical 
assistance program to support the development of voluntary 
consensus-based standards for high performance buildings.

SEC. 915. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--In this section:
            (1) Battery.--The term ``battery'' means an energy 
        storage device that previously has been used to provide 
        motive power in a vehicle powered in whole or in part 
        by electricity.
            (2) Associated equipment.--The term ``associated 
        equipment'' means equipment located where the batteries 
        will be used that is necessary to enable the use of the 
        energy stored in the batteries.
    (b) Program.--
            (1) In general.--The Secretary shall establish and 
        conduct a program of research, development, 
        demonstration, and commercial application of energy 
        technology for the secondary use of batteries, if the 
        Secretary finds that there are sufficient numbers of 
        batteries to support the program.
            (2) Administration.--The program shall be--
                    (A) designed to demonstrate the use of 
                batteries in secondary applications, including 
                utility and commercial power storage and power 
                quality;
                    (B) structured to evaluate the performance, 
                including useful service life and costs, of 
                such batteries in field operations, and the 
                necessary supporting infrastructure, including 
                reuse and disposal of batteries; and
                    (C) coordinated with ongoing secondary 
                battery use programs at the National 
                Laboratories and in industry.
    (c) Solicitation.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        solicit proposals to demonstrate the secondary use of 
        batteries and associated equipment and supporting 
        infrastructure in geographic locations throughout the 
        United States.
            (2) Additional solicitations.--The Secretary may 
        make additional solicitations for proposals if the 
        Secretary determines that the solicitations are 
        necessary to carry out this section.
    (d) Selection of Proposals.--
            (1) In general.--Not later than 90 days after the 
        closing date established by the Secretary for receipt 
        of proposals under subsection (c), the Secretary shall 
        select up to 5 proposals that may receive financial 
        assistance under this section once the Department 
        receives appropriated funds to carry out this section.
            (2) Factors.--In selecting proposals, the Secretary 
        shall consider--
                    (A) the diversity of battery type;
                    (B) geographic and climatic diversity; and
                    (C) life-cycle environmental effects of the 
                approaches.
            (3) Limitation.--No 1 project selected under this 
        section shall receive more than 25 percent of the funds 
        made available to carry out the program under this 
        section.
            (4) Non-federal involvement.--In selecting 
        proposals, the Secretary shall consider the extent of 
        involvement of State or local government and other 
        persons in each demonstration project to optimize use 
        of Federal resources.
            (5) Other criteria.--In selecting proposals, the 
        Secretary may consider such other criteria as the 
        Secretary considers appropriate.
    (e) Conditions.--In carrying out this section, the 
Secretary shall require that--
            (1) relevant information be provided to--
                    (A) the Department;
                    (B) the users of the batteries;
                    (C) the proposers of a project under this 
                section; and
                    (D) the battery manufacturers; and
            (2) the costs of carrying out projects and 
        activities under this section are shared in accordance 
        with section 988.

SEC. 916. ENERGY EFFICIENCY SCIENCE INITIATIVE.

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

SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.

    (a) Grants.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall make grants to 
nonprofit institutions, State and local governments, or 
universities (or consortia thereof), to establish a 
geographically dispersed network of Advanced Energy Efficiency 
Technology Transfer Centers, to be located in areas the 
Secretary determines have the greatest need of the services of 
such Centers. In establishing the network, the Secretary shall 
consider the special needs and opportunities for increased 
energy efficiency for manufactured and site-built housing.
    (b) Activities.--
            (1) In general.--Each Center shall operate a 
        program to encourage demonstration and commercial 
        application of advanced energy methods and technologies 
        through education and outreach to building and 
        industrial professionals, and to other individuals and 
        organizations with an interest in efficient energy use.
            (2) Advisory panel.--Each Center shall establish an 
        advisory panel to advise the Center on how best to 
        accomplish the activities under paragraph (1).
    (c) Application.--A person seeking a grant under this 
section shall submit to the Secretary an application in such 
form and containing such information as the Secretary may 
require. The Secretary may award a grant under this section to 
an entity already in existence if the entity is otherwise 
eligible under this section.
    (d) Selection Criteria.--The Secretary shall award grants 
under this section on the basis of the following criteria, at a 
minimum:
            (1) The ability of the applicant to carry out the 
        activities described in subsection (b)(1).
            (2) The extent to which the applicant will 
        coordinate the activities of the Center with other 
        entities, such as State and local governments, 
        utilities, and educational and research institutions.
    (e) Cost-Sharing.--In carrying out this section, the 
Secretary shall require cost-sharing in accordance with the 
requirements of section 988 for commercial application 
activities.
    (f) Advisory Committee.--The Secretary shall establish an 
advisory committee to advise the Secretary on the establishment 
of Centers under this section. The advisory committee shall be 
composed of individuals with expertise in the area of advanced 
energy methods and technologies, including at least 1 
representative from--
            (1) State or local energy offices;
            (2) energy professionals;
            (3) trade or professional associations;
            (4) architects, engineers, or construction 
        professionals;
            (5) manufacturers;
            (6) the research community; and
            (7) nonprofit energy or environmental 
        organizations.
    (g) Definitions.--For purposes of this section:
            (1) Advanced energy methods and technologies.--The 
        term ``advanced energy methods and technologies'' means 
        all methods and technologies that promote energy 
        efficiency and conservation, including distributed 
        generation technologies, and life-cycle analysis of 
        energy use.
            (2) Center.--The term ``Center'' means an Advanced 
        Energy Technology Transfer Center established pursuant 
        to this section.
            (3) Distributed generation.--The term ``distributed 
        generation'' means an electric power generation 
        facility that is designed to serve retail electric 
        consumers at or near the facility site.
    (h) Authorization of Appropriations.--In addition to 
amounts otherwise authorized to be appropriated in section 911, 
there are authorized to be appropriated for the program under 
this section such sums as may be appropriated.

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    (a) In General.--The Secretary shall carry out programs of 
research, development, demonstration, and commercial 
application on distributed energy resources and systems 
reliability and efficiency, to improve the reliability and 
efficiency of distributed energy resources and systems, 
integrating advanced energy technologies with grid 
connectivity, including activities described in this subtitle. 
The programs shall address advanced energy technologies and 
systems and advanced grid reliability technologies.
    (b) Authorization of Appropriations.--
            (1) Distributed energy and electric energy systems 
        activities.--There are authorized to be appropriated to 
        the Secretary to carry out distributed energy and 
        electric energy systems activities, including 
        activities authorized under this subtitle--
                    (A) $240,000,000 for fiscal year 2007;
                    (B) $255,000,000 for fiscal year 2008; and
                    (C) $273,000,000 for fiscal year 2009.
            (2) Power delivery research initiative.--There are 
        authorized to be appropriated to the Secretary to carry 
        out the Power Delivery Research Initiative under 
        subsection 925(e) such sums as may be necessary for 
        each of fiscal years 2007 through 2009.
    (c) Micro-Cogeneration Energy Technology.--From amounts 
authorized under subsection (b), $20,000,000 for each of fiscal 
years 2007 and 2008 shall be available to carry out activities 
under section 923.
    (d) High-voltage Transmission Lines.--From amounts 
authorized under subsection (b), $2,000,000 for fiscal year 
2007 shall be available to carry out activities under section 
925(g).

SEC. 922. HIGH POWER DENSITY INDUSTRY PROGRAM.

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

SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY.

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

SEC. 924. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAMS.

    (a) Coordinating Consortia Program.--The Secretary may 
provide financial assistance to coordinating consortia of 
interdisciplinary participants for demonstrations designed to 
accelerate the use of distributed energy technologies (such as 
fuel cells, microturbines, reciprocating engines, thermally 
activated technologies, and combined heat and power systems) in 
highly energy intensive commercial applications.
    (b) Small-Scale Portable Power Program.--
            (1) In general.--The Secretary shall--
                    (A) establish a research, development, and 
                demonstration program to develop working models 
                of small scale portable power devices; and
                    (B) to the fullest extent practicable, 
                identify and utilize the resources of 
                universities that have shown expertise with 
                respect to advanced portable power devices for 
                either civilian or military use.
            (2) Organization.--The universities identified and 
        utilized under paragraph (1)(B) are authorized to 
        establish an organization to promote small scale 
        portable power devices.
            (3) Definition.--For purposes of this subsection, 
        the term ``small scale portable power device'' means a 
        field-deployable portable mechanical or 
        electromechanical device that can be used for 
        applications such as communications, computation, 
        mobility enhancement, weapons systems, optical devices, 
        cooling, sensors, medical devices, and active 
        biological agent detection systems.

SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

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

                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

    (a) In General.--
            (1) Objectives.--The Secretary shall conduct 
        programs of renewable energy research, development, 
        demonstration, and commercial application, including 
        activities described in this subtitle. Such programs 
        shall take into consideration the following objectives:
                    (A) Increasing the conversion efficiency of 
                all forms of renewable energy through improved 
                technologies.
                    (B) Decreasing the cost of renewable energy 
                generation and delivery.
                    (C) Promoting the diversity of the energy 
                supply.
                    (D) Decreasing the dependence of the United 
                States on foreign energy supplies.
                    (E) Improving United States energy 
                security.
                    (F) Decreasing the environmental impact of 
                energy-related activities.
                    (G) Increasing the export of renewable 
                generation equipment from the United States.
            (2) Programs.--
                    (A) Solar energy.--The Secretary shall 
                conduct a program of research, development, 
                demonstration, and commercial application for 
                solar energy, including--
                            (i) photovoltaics;
                            (ii) solar hot water and solar 
                        space heating;
                            (iii) concentrating solar power;
                            (iv) lighting systems that 
                        integrate sunlight and electrical 
                        lighting in complement to each other in 
                        common lighting fixtures for the 
                        purpose of improving energy efficiency;
                            (v) manufacturability of low cost 
                        high, quality solar systems; and
                            (vi) development of products that 
                        can be easily integrated into new and 
                        existing buildings.
                    (B) Wind energy.--The Secretary shall 
                conduct a program of research, development, 
                demonstration, and commercial application for 
                wind energy, including--
                            (i) low speed wind energy;
                            (ii) offshore wind energy;
                            (iii) testing and verification 
                        (including construction and operation 
                        of a research and testing facility 
                        capable of testing wind turbines); and
                            (iv) distributed wind energy 
                        generation.
                    (C) Geothermal.--The Secretary shall 
                conduct a program of research, development, 
                demonstration, and commercial application for 
                geothermal energy. The program shall focus on 
                developing improved technologies for reducing 
                the costs of geothermal energy installations, 
                including technologies for--
                            (i) improving detection of 
                        geothermal resources;
                            (ii) decreasing drilling costs;
                            (iii) decreasing maintenance costs 
                        through improved materials;
                            (iv) increasing the potential for 
                        other revenue sources, such as mineral 
                        production; and
                            (v) increasing the understanding of 
                        reservoir life cycle and management.
                    (D) Hydropower.--The Secretary shall 
                conduct a program of research, development, 
                demonstration, and commercial application for 
                cost competitive technologies that enable the 
                development of new and incremental hydropower 
                capacity, adding to the diversity of the energy 
                supply of the United States, including:
                            (i) Fish-friendly large turbines.
                            (ii) Advanced technologies to 
                        enhance environmental performance and 
                        yield greater energy efficiencies.
                    (E) Miscellaneous projects.--The Secretary 
                shall conduct research, development, 
                demonstration, and commercial application 
                programs for--
                            (i) ocean energy, including wave 
                        energy;
                            (ii) the combined use of renewable 
                        energy technologies with one another 
                        and with other energy technologies, 
                        including the combined use of wind 
                        power and coal gasification 
                        technologies;
                            (iii) renewable energy technologies 
                        for cogeneration of hydrogen and 
                        electricity; and
                            (iv) kinetic hydro turbines.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out renewable 
energy research, development, demonstration, and commercial 
application activities, including activities authorized under 
this subtitle--
            (1) $632,000,000 for fiscal year 2007;
            (2) $743,000,000 for fiscal year 2008; and
            (3) $852,000,000 for fiscal year 2009.
    (c) Bioenergy.--From the amounts authorized under 
subsection (b), there are authorized to be appropriated to 
carry out section 932--
            (1) $213,000,000 for fiscal year 2007, of which 
        $100,000,000 shall be for section 932 (d);
            (2) $251,000,000 for fiscal year 2008, of which 
        $125,000,000 shall be for section 932 (d); and
            (3) $274,000,000 for fiscal year 2009, of which 
        $150,000,000 shall be for section 932 (d).
    (d) Solar Power.--From amounts authorized under subsection 
(b), there is authorized to be appropriated to carry out 
activities under subsection (a)(2)(A)--
            (1) $140,000,000 for fiscal year 2007, of which 
        $40,000,000 shall be for activities under section 935;
            (2) $200,000,000 for fiscal year 2008, of which 
        $50,000,000 shall be for activities under section 935; 
        and
            (3) $250,000,000 for fiscal year 2009, of which 
        $50,000,000 shall be for activities under section 935.
    (e) Administration.--Of the funds authorized under 
subsection (c), not less than $5,000,000 for each fiscal year 
shall be made available for grants to--
            (1) part B institutions;
            (2) Tribal Colleges or Universities (as defined in 
        section 316(b) of the Higher Education Act of 1965 (20 
        U.S.C. 1059c(b))); and
            (3) Hispanic-serving institutions.
    (f) Rural Demonstration Projects.--In carrying out this 
section, the Secretary, in consultation with the Secretary of 
Agriculture, shall demonstrate the use of renewable energy 
technologies to assist in delivering electricity to rural and 
remote locations including--
            (1) advanced wind power technology, including 
        combined use with coal gasification;
            (2) biomass; and
            (3) geothermal energy systems.
    (g) Analysis and Evaluation.--
            (1) In general.--The Secretary shall conduct 
        analysis and evaluation in support of the renewable 
        energy programs under this subtitle. These activities 
        shall be used to guide budget and program decisions, 
        and shall include--
                    (A) economic and technical analysis of 
                renewable energy potential, including resource 
                assessment;
                    (B) analysis of past program performance, 
                both in terms of technical advances and in 
                market introduction of renewable energy; and
                    (C) any other analysis or evaluation that 
                the Secretary considers appropriate.
            (2) Funding.--The Secretary may designate up to 1 
        percent of the funds appropriated for carrying out this 
        subtitle for analysis and evaluation activities under 
        this subsection.

SEC. 932. BIOENERGY PROGRAM.

    (a) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means--
                    (A) any organic material grown for the 
                purpose of being converted to energy;
                    (B) any organic byproduct of agriculture 
                (including wastes from food production and 
                processing) that can be converted into energy; 
                or
                    (C) any waste material that can be 
                converted to energy, is segregated from other 
                waste materials, and is derived from--
                            (i) any of the following forest-
                        related resources: mill residues, 
                        precommercial thinnings, slash, brush, 
                        or otherwise nonmerchantable material; 
                        or
                            (ii) wood waste materials, 
                        including waste pallets, crates, 
                        dunnage, manufacturing and construction 
                        wood wastes (other than pressure-
                        treated, chemically-treated, or painted 
                        wood wastes), and landscape or right-
                        of-way tree trimmings, but not 
                        including municipal solid waste, gas 
                        derived from the biodegradation of 
                        municipal solid waste, or paper that is 
                        commonly recycled.
            (2)  Lignocellulosic feedstock.--The term 
        ``lignocellulosic feedstock'' means any portion of a 
        plant or coproduct from conversion, including crops, 
        trees, forest residues, and agricultural residues not 
        specifically grown for food, including from barley 
        grain, grapeseed, rice bran, rice hulls, rice straw, 
        soybean matter, and sugarcane bagasse.
    (b) Program.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial 
application for bioenergy, including--
            (1) biopower energy systems;
            (2) biofuels;
            (3) bioproducts;
            (4) integrated biorefineries that may produce 
        biopower, biofuels, and bioproducts;
            (5) cross-cutting research and development in 
        feedstocks; and
            (6) economic analysis.
    (c) Biofuels and Bioproducts.--The goals of the biofuels 
and bioproducts programs shall be to develop, in partnership 
with industry and institutions of higher education--
            (1) advanced biochemical and thermochemical 
        conversion technologies capable of making fuels from 
        lignocellulosic feedstocks that are price-competitive 
        with gasoline or diesel in either internal combustion 
        engines or fuel cell-powered vehicles;
            (2) advanced biotechnology processes capable of 
        making biofuels and bioproducts with emphasis on 
        development of biorefinery technologies using enzyme-
        based processing systems;
            (3) advanced biotechnology processes capable of 
        increasing energy production from lignocellulosic 
        feedstocks, with emphasis on reducing the dependence of 
        industry on fossil fuels in manufacturing facilities; 
        and
            (4) other advanced processes that will enable the 
        development of cost-effective bioproducts, including 
        biofuels.
    (d) Integrated Biorefinery Demonstration Projects.--
            (1) In general.--The Secretary shall carry out a 
        program to demonstrate the commercial application of 
        integrated biorefineries. The Secretary shall ensure 
        geographical distribution of biorefinery demonstrations 
        under this subsection. The Secretary shall not provide 
        more than $100,000,000 under this subsection for any 
        single biorefinery demonstration. In making awards 
        under this subsection, the Secretary shall encourage--
                    (A) the demonstration of a wide variety of 
                lignocellulosic feedstocks;
                    (B) the commercial application of biomass 
                technologies for a variety of uses, including--
                            (i) liquid transportation fuels;
                            (ii) high-value biobased chemicals;
                            (iii) substitutes for petroleum-
                        based feedstocks and products; and
                            (iv) energy in the form of 
                        electricity or useful heat; and
                    (C) the demonstration of the collection and 
                treatment of a variety of biomass feedstocks.
            (2) Proposals.--Not later than 6 months after the 
        date of enactment of this Act, the Secretary shall 
        solicit proposals for demonstration of advanced 
        biorefineries. The Secretary shall select only 
        proposals that--
                    (A) demonstrate that the project will be 
                able to operate profitably without direct 
                Federal subsidy after initial construction 
                costs are paid; and
                    (B) enable the biorefinery to be easily 
                replicated.
    (e) University Biodiesel Program.--The Secretary shall 
establish a demonstration program to determine the feasibility 
of the operation of diesel electric power generators, using 
biodiesel fuels with ratings as high as B100, at electric 
generation facilities owned by institutions of higher 
education. The program shall examine--
            (1) heat rates of diesel fuels with large 
        quantities of cellulosic content;
            (2) the reliability of operation of various fuel 
        blends;
            (3) performance in cold or freezing weather;
            (4) stability of fuel after extended storage; and
            (5) other criteria, as determined by the Secretary.

SEC. 933. LOW-COST RENEWABLE HYDROGEN AND INFRASTRUCTURE FOR VEHICLE 
                    PROPULSION.

    The Secretary shall--
            (1) establish a research, development, and 
        demonstration program to determine the feasibility of 
        using hydrogen propulsion in light-weight vehicles and 
        the integration of the associated hydrogen production 
        infrastructure using off-the-shelf components; and
            (2) identify universities and institutions that--
                    (A) have expertise in researching and 
                testing vehicles fueled by hydrogen, methane, 
                and other fuels;
                    (B) have expertise in integrating off-the-
                shelf components to minimize cost; and
                    (C) within 2 years can test a vehicle based 
                on an existing commercially available platform 
                with a curb weight of not less than 2,000 
                pounds before modifications, that--
                            (i) operates solely on hydrogen;
                            (ii) qualifies as a light-duty 
                        passenger vehicle; and
                            (iii) uses hydrogen produced from 
                        water using only solar energy.

SEC. 934. CONCENTRATING SOLAR POWER RESEARCH PROGRAM.

    (a) In General.--The Secretary shall conduct a program of 
research and development to evaluate the potential for 
concentrating solar power for hydrogen production, including 
cogeneration approaches for both hydrogen and electricity.
    (b) Administration.--The program shall take advantage of 
existing facilities to the extent practicable and shall 
include--
            (1) development of optimized technologies that are 
        common to both electricity and hydrogen production;
            (2) evaluation of thermochemical cycles for 
        hydrogen production at the temperatures attainable with 
        concentrating solar power;
            (3) evaluation of materials issues for the 
        thermochemical cycles described in paragraph (2);
            (4) cogeneration of solar thermal electric power 
        and photo-synthetic-based hydrogen production;
            (5) system architectures and economics studies; and
            (6) coordination with activities under the Next 
        Generation Nuclear Plant Project established under 
        subtitle C of title VI on high temperature materials, 
        thermochemical cycles, and economic issues.
    (c) Assessment.--In carrying out the program under this 
section, the Secretary shall--
            (1) assess conflicting guidance on the economic 
        potential of concentrating solar power for electricity 
        production received from the National Research Council 
        in the report entitled ``Renewable Power Pathways: A 
        Review of the U.S. Department of Energy's Renewable 
        Energy Programs'' and dated 2000 and subsequent reviews 
        of that report funded by the Department; and
            (2) provide an assessment of the potential impact 
        of technology used to concentrate solar power for 
        electricity before, or concurrent with, submission of 
        the budget for fiscal year 2008.
    (d) Report.--Not later than 5 years after the date of 
enactment of this Act, the Secretary shall provide to Congress 
a report on the economic and technical potential for 
electricity or hydrogen production, with or without 
cogeneration, with concentrating solar power, including the 
economic and technical feasibility of potential construction of 
a pilot demonstration facility suitable for commercial 
production of electricity or hydrogen from concentrating solar 
power.

SEC. 935. RENEWABLE ENERGY IN PUBLIC BUILDINGS.

    (a) Demonstration and Technology Transfer Program.--The 
Secretary shall establish a program for the demonstration of 
innovative technologies for solar and other renewable energy 
sources in buildings owned or operated by a State or local 
government, and for the dissemination of information resulting 
from such demonstration to interested parties.
    (b) Limit on Federal Funding.--Notwithstanding section 988, 
the Secretary shall provide under this section no more than 40 
percent of the incremental costs of the solar or other 
renewable energy source project funded.
    (c) Requirements.--As part of the application for awards 
under this section, the Secretary shall require all 
applicants---
            (1) to demonstrate a continuing commitment to the 
        use of solar and other renewable energy sources in 
        buildings they own or operate; and
            (2) to state how they expect any award to further 
        their transition to the significant use of renewable 
        energy.

   Subtitle D--Agricultural Biomass Research and Development Programs

SEC. 941. AMENDMENTS TO THE BIOMASS RESEARCH AND DEVELOPMENT ACT OF 
                    2000.

    (a) Definitions.--Section 303 of the Biomass Research and 
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
note) is amended--
            (1) by striking paragraphs (2), (9), and (10);
            (2) by redesignating paragraphs (3), (4), (5), (6), 
        (7), and (8) as paragraphs (4), (5), (7), (8), (9), and 
        (10), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Biobased fuel.--The term `biobased fuel' 
        means any transportation fuel produced from biomass.
            ``(3) Biobased product.--The term `biobased 
        product' means an industrial product (including 
        chemicals, materials, and polymers) produced from 
        biomass, or a commercial or industrial product 
        (including animal feed and electric power) derived in 
        connection with the conversion of biomass to fuel.'';
            (4) by inserting after paragraph (5) (as 
        redesignated by paragraph (2)) the following:
            ``(6) Demonstration.--The term `demonstration' 
        means demonstration of technology in a pilot plant or 
        semi-works scale facility.''; and
            (5) by striking paragraph (9) (as redesignated by 
        paragraph (2)) and inserting the following:
            ``(9) National laboratory.--The term `National 
        Laboratory' has the meaning given that term in section 
        2 of the Energy Policy Act of 2005.''.
    (b) Cooperation and Coordination in Biomass Research and 
Development.--Section 304 of the Biomass Research and 
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
note) is amended--
            (1) in subsections (a) and (d), by striking 
        ``industrial products'' each place it appears and 
        inserting ``fuels and biobased products'';
            (2) by striking subsections (b) and (c); and
            (3) by redesignating subsection (d) as subsection 
        (b).
    (c) Biomass Research and Development Board.--Section 305 of 
the Biomass Research and Development Act of 2000 (Public Law 
106-224; 7 U.S.C. 8101 note) is amended--
            (1) in subsections (a) and (c), by striking 
        ``industrial products'' each place it appears and 
        inserting ``fuels and biobased products'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking 
                ``304(d)(1)(B)'' and inserting 
                ``304(b)(1)(B)''; and
                    (B) in paragraph (2), by striking 
                ``304(d)(1)(A)'' and inserting 
                ``304(b)(1)(A)''; and
            (3) in subsection (c)--
                    (A) in paragraph (1)(B), by striking 
                ``and'' at the end;
                    (B) in paragraph (2), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
            ``(3) ensure that--
                    ``(A) solicitations are open and 
                competitive with awards made annually; and
                    ``(B) objectives and evaluation criteria of 
                the solicitations are clearly stated and 
                minimally prescriptive, with no areas of 
                special interest; and
            ``(4) ensure that the panel of scientific and 
        technical peers assembled under section 307(g)(1)(C) to 
        review proposals is composed predominantly of 
        independent experts selected from outside the 
        Departments of Agriculture and Energy.''.
    (d) Biomass Research and Development Technical Advisory 
Committee.--Section 306 of the Biomass Research and Development 
Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is 
amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking 
                ``biobased industrial products'' and inserting 
                ``biofuels'';
                    (B) by redesignating subparagraphs (B) 
                through (J) as subparagraphs (C) through (K), 
                respectively;
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) an individual affiliated with the 
                biobased industrial and commercial products 
                industry;'';
                    (D) in subparagraph (F) (as redesignated by 
                subparagraph (B)) by striking ``an individual 
                has'' and inserting ``2 individuals have'';
                    (E) in subparagraphs (C), (D), (G), and (I) 
                (as redesignated by subparagraph (B)) by 
                striking ``industrial products'' each place it 
                appears and inserting ``fuels and biobased 
                products''; and
                    (F) in subparagraph (H) (as redesignated by 
                subparagraph (B)), by inserting ``and 
                environmental'' before ``analysis'';
            (2) in subsection (c)(2)--
                    (A) in subparagraph (A), by striking 
                ``goals'' and inserting ``objectives, purposes, 
                and considerations'';
                    (B) by redesignating subparagraphs (B) and 
                (C) as subparagraphs (C) and (D), respectively;
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) solicitations are open and 
                competitive with awards made annually and that 
                objectives and evaluation criteria of the 
                solicitations are clearly stated and minimally 
                prescriptive, with no areas of special 
                interest;''; and
                    (D) in subparagraph (C) (as redesignated by 
                subparagraph (B)) by inserting ``predominantly 
                from outside the Departments of Agriculture and 
                Energy'' after ``technical peers''.
    (e) Biomass Research and Development Initiative.--Section 
307 of the Biomass Research and Development Act of 2000 (Public 
Law 106-224; 7 U.S.C. 8101 note) is amended--
            (1) in subsection (a), by striking ``research on 
        biobased industrial products'' and inserting ``research 
        on, and development and demonstration of, biobased 
        fuels and biobased products, and the methods, practices 
        and technologies, for their production''; and
            (2) by striking subsections (b) through (e) and 
        inserting the following:
    ``(b) Objectives.--The objectives of the Initiative are to 
develop--
            ``(1) technologies and processes necessary for 
        abundant commercial production of biobased fuels at 
        prices competitive with fossil fuels;
            ``(2) high-value biobased products--
                    ``(A) to enhance the economic viability of 
                biobased fuels and power; and
                    ``(B) as substitutes for petroleum-based 
                feedstocks and products; and
            ``(3) a diversity of sustainable domestic sources 
        of biomass for conversion to biobased fuels and 
        biobased products.
    ``(c) Purposes.--The purposes of the Initiative are--
            ``(1) to increase the energy security of the United 
        States;
            ``(2) to create jobs and enhance the economic 
        development of the rural economy;
            ``(3) to enhance the environment and public health; 
        and
            ``(4) to diversify markets for raw agricultural and 
        forestry products.
    ``(d) Technical Areas.--To advance the objectives and 
purposes of the Initiative, the Secretary of Agriculture and 
the Secretary of Energy, in consultation with the Administrator 
of the Environmental Protection Agency and heads of other 
appropriate departments and agencies (referred to in this 
section as the `Secretaries'), shall direct research and 
development toward--
            ``(1) feedstock production through the development 
        of crops and cropping systems relevant to production of 
        raw materials for conversion to biobased fuels and 
        biobased products, including--
                    ``(A) development of advanced and dedicated 
                crops with desired features, including enhanced 
                productivity, broader site range, low 
                requirements for chemical inputs, and enhanced 
                processing;
                    ``(B) advanced crop production methods to 
                achieve the features described in subparagraph 
                (A);
                    ``(C) feedstock harvest, handling, 
                transport, and storage; and
                    ``(D) strategies for integrating feedstock 
                production into existing managed land;
            ``(2) overcoming recalcitrance of cellulosic 
        biomass through developing technologies for converting 
        cellulosic biomass into intermediates that can 
        subsequently be converted into biobased fuels and 
        biobased products, including--
                    ``(A) pretreatment in combination with 
                enzymatic or microbial hydrolysis; and
                    ``(B) thermochemical approaches, including 
                gasification and pyrolysis;
            ``(3) product diversification through technologies 
        relevant to production of a range of biobased products 
        (including chemicals, animal feeds, and cogenerated 
        power) that eventually can increase the feasibility of 
        fuel production in a biorefinery, including--
                    ``(A) catalytic processing, including 
                thermochemical fuel production;
                    ``(B) metabolic engineering, enzyme 
                engineering, and fermentation systems for 
                biological production of desired products or 
                cogeneration of power;
                    ``(C) product recovery;
                    ``(D) power production technologies; and
                    ``(E) integration into existing biomass 
                processing facilities, including starch ethanol 
                plants, paper mills, and power plants; and
            ``(4) analysis that provides strategic guidance for 
        the application of biomass technologies in accordance 
        with realization of improved sustainability and 
        environmental quality, cost effectiveness, security, 
        and rural economic development, usually featuring 
        system-wide approaches.
    ``(e) Additional Considerations.--Within the technical 
areas described in subsection (d), and in addition to advancing 
the purposes described in subsection (c) and the objectives 
described in subsection (b), the Secretaries shall support 
research and development--
            ``(1) to create continuously expanding 
        opportunities for participants in existing biofuels 
        production by seeking synergies and continuity with 
        current technologies and practices, such as the use of 
        dried distillers grains as a bridge feedstock;
            ``(2) to maximize the environmental, economic, and 
        social benefits of production of biobased fuels and 
        biobased products on a large scale through life-cycle 
        economic and environmental analysis and other means; 
        and
            ``(3) to assess the potential of Federal land and 
        land management programs as feedstock resources for 
        biobased fuels and biobased products, consistent with 
        the integrity of soil and water resources and with 
        other environmental considerations.
    ``(f) Eligible Entities.--To be eligible for a grant, 
contract, or assistance under this section, an applicant shall 
be--
            ``(1) an institution of higher education;
            ``(2) a National Laboratory;
            ``(3) a Federal research agency;
            ``(4) a State research agency;
            ``(5) a private sector entity;
            ``(6) a nonprofit organization; or
            ``(7) a consortium of 2 of more entities described 
        in paragraphs (1) through (6).
    ``(g) Administration.--
            ``(1) In general.--After consultation with the 
        Board, the points of contact shall--
                    ``(A) publish annually 1 or more joint 
                requests for proposals for grants, contracts, 
                and assistance under this section;
                    ``(B) require that grants, contracts, and 
                assistance under this section be awarded 
                competitively, on the basis of merit, after the 
                establishment of procedures that provide for 
                scientific peer review by an independent panel 
                of scientific and technical peers; and
                    ``(C) give some preference to applications 
                that--
                            ``(i) involve a consortia of 
                        experts from multiple institutions;
                            ``(ii) encourage the integration of 
                        disciplines and application of the best 
                        technical resources; and
                            ``(iii) increase the geographic 
                        diversity of demonstration projects.
            ``(2) Distribution of funding by technical area.--
        Of the funds authorized to be appropriated for 
        activities described in this section, funds shall be 
        distributed for each of fiscal years 2007 through 2010 
        so as to achieve an approximate distribution of--
                    ``(A) 20 percent of the funds to carry out 
                activities for feedstock production under 
                subsection (d)(1);
                    ``(B) 45 percent of the funds to carry out 
                activities for overcoming recalcitrance of 
                cellulosic biomass under subsection (d)(2);
                    ``(C) 30 percent of the funds to carry out 
                activities for product diversification under 
                subsection (d)(3); and
                    ``(D) 5 percent of the funds to carry out 
                activities for strategic guidance under 
                subsection (d)(4).
            ``(3) Distribution of funding within each technical 
        area.--Within each technical area described in 
        paragraphs (1) through (3) of subsection (d), funds 
        shall be distributed for each of fiscal years 2007 
        through 2010 so as to achieve an approximate 
        distribution of--
                    ``(A) 15 percent of the funds for applied 
                fundamentals;
                    ``(B) 35 percent of the funds for 
                innovation; and
                    ``(C) 50 percent of the funds for 
                demonstration.
            ``(4) Matching funds.--
                    ``(A) In general.--A minimum 20 percent 
                funding match shall be required for 
                demonstration projects under this title.
                    ``(B) Commercial applications.--A minimum 
                of 50 percent funding match shall be required 
                for commercial application projects under this 
                title.
            ``(5) Technology and information transfer to 
        agricultural users.--The Administrator of the 
        Cooperative State Research, Education, and Extension 
        Service and the Chief of the Natural Resources 
        Conservation Service shall ensure that applicable 
        research results and technologies from the Initiative 
        are adapted, made available, and disseminated through 
        those services, as appropriate.''.
    (f) Annual Reports.--Section 309 of the Biomass Research 
and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
note) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by 
                        striking ``purposes described in 
                        section 307(b)'' and inserting 
                        ``objectives, purposes, and additional 
                        considerations described in subsections 
                        (b) through (e) of section 307'';
                            (ii) in subparagraph (B), by 
                        striking ``and'' at the end;
                            (iii) by redesignating subparagraph 
                        (C) as subparagraph (D); and
                            (iv) by inserting after 
                        subparagraph (B) the following:
                    ``(C) achieves the distribution of funds 
                described in paragraphs (2) and (3) of section 
                307(g); and''; and
                    (B) in paragraph (2), by striking 
                ``industrial products'' and inserting ``fuels 
                and biobased products''; and
            (2) by adding at the end the following:
    ``(c) Updates.--The Secretary and the Secretary of Energy 
shall update the Vision and Roadmap documents prepared for 
Federal biomass research and development activities.''.
    (g) Authorization of Appropriations.--Section 310(b) of the 
Biomass Research and Development Act of 2000 (Public Law 106-
224; 7 U.S.C. 8101 note) is amended by striking ``title 
$54,000,000 for each of fiscal years 2002 through 2007'' and 
inserting ``title $200,000,000 for each of fiscal years 2006 
through 2015''.
    (h) Repeal of Sunset Provision.--Section 311 of the Biomass 
Research and Development Act of 2000 (Public Law 106-224; 7 
U.S.C. 8101 note) is repealed.

SEC. 942. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

    (a) Purpose.--The purpose of this section is to--
            (1) accelerate deployment and commercialization of 
        biofuels;
            (2) deliver the first 1,000,000,000 gallons in 
        annual cellulosic biofuels production by 2015;
            (3) ensure biofuels produced after 2015 are cost 
        competitive with gasoline and diesel; and
            (4) ensure that small feedstock producers and rural 
        small businesses are full participants in the 
        development of the cellulosic biofuels industry.
    (b) Definitions.--In this section:
            (1) Cellulosic biofuels.--The term ``cellulosic 
        biofuels'' means any fuel that is produced from 
        cellulosic feedstocks.
            (2) Eligible entity.--The term ``eligible entity'' 
        means a producer of fuel from cellulosic biofuels the 
        production facility of which--
                    (A) is located in the United States;
                    (B) meets all applicable Federal and State 
                permitting requirements; and
                    (C) meets any financial criteria 
                established by the Secretary.
    (c) Program.--
            (1) Establishment.--The Secretary, in consultation 
        with the Secretary of Agriculture, the Secretary of 
        Defense, and the Administrator of the Environmental 
        Protection Agency, shall establish an incentive program 
        for the production of cellulosic biofuels.
            (2) Basis of incentives.--Under the program, the 
        Secretary shall award production incentives on a per 
        gallon basis of cellulosic biofuels from eligible 
        entities, through--
                    (A) set payments per gallon of cellulosic 
                biofuels produced in an amount determined by 
                the Secretary, until initiation of the first 
                reverse auction; and
                    (B) reverse auction thereafter.
            (3) First reverse auction.--The first reverse 
        auction shall be held on the earlier of--
                    (A) not later than 1 year after the first 
                year of annual production in the United States 
                of 100,000,000 gallons of cellulosic biofuels, 
                as determined by the Secretary; or
                    (B) not later than 3 years after the date 
                of enactment of this Act.
            (4) Reverse auction procedure.--
                    (A) In general.--On initiation of the first 
                reverse auction, and each year thereafter until 
                the earlier of the first year of annual 
                production in the United States of 
                1,000,000,000 gallons of cellulosic biofuels, 
                as determined by the Secretary, or 10 years 
                after the date of enactment of this Act, the 
                Secretary shall conduct a reverse auction at 
                which--
                            (i) the Secretary shall solicit 
                        bids from eligible entities;
                            (ii) eligible entities shall 
                        submit--
                                    (I) a desired level of 
                                production incentive on a per 
                                gallon basis; and
                                    (II) an estimated annual 
                                production amount in gallons; 
                                and
                            (iii) the Secretary shall issue 
                        awards for the production amount 
                        submitted, beginning with the eligible 
                        entity submitting the bid for the 
                        lowest level of production incentive on 
                        a per gallon basis and meeting such 
                        other criteria as are established by 
                        the Secretary, until the amount of 
                        funds available for the reverse auction 
                        is committed.
                    (B) Amount of incentive received.--An 
                eligible entity selected by the Secretary 
                through a reverse auction shall receive the 
                amount of performance incentive requested in 
                the auction for each gallon produced and sold 
                by the entity during the first 6 years of 
                operation.
                    (C) Commencement of production of 
                cellulosic biofuels.--As a condition of the 
                receipt of an award under this section, an 
                eligible entity shall enter into an agreement 
                with the Secretary under which the eligible 
                entity agrees to begin production of cellulosic 
                biofuels not later than 3 years after the date 
                of the reverse auction in which the eligible 
                entity participates.
    (d) Limitations.--Awards under this section shall be 
limited to--
            (1) a per gallon amount determined by the Secretary 
        during the first 4 years of the program;
            (2) a declining per gallon cap over the remaining 
        lifetime of the program, to be established by the 
        Secretary so that cellulosic biofuels produced after 
        the first year of annual cellulosic biofuels production 
        in the United States in excess of 1,000,000,000 gallons 
        are cost competitive with gasoline and diesel;
            (3) not more than 25 percent of the funds committed 
        within each reverse auction to any 1 project;
            (4) not more than $100,000,000 in any 1 year; and
            (5) not more than $1,000,000,000 over the lifetime 
        of the program.
    (e) Priority.--In selecting a project under the program, 
the Secretary shall give priority to projects that--
            (1) demonstrate outstanding potential for local and 
        regional economic development;
            (2) include agricultural producers or cooperatives 
        of agricultural producers as equity partners in the 
        ventures; and
            (3) have a strategic agreement in place to fairly 
        reward feedstock suppliers.
    (f) Authorizations of Appropriations.--There is authorized 
to be appropriated to carry out this section $250,000,000.

SEC. 943. PROCUREMENT OF BIOBASED PRODUCTS.

    (a) Federal Procurement.--
            (1) Definition of procuring agency.--Section 9001 
        of the Farm Security and Rural Investment Act of 2002 
        (7 U.S.C. 8101) is amended--
                    (A) by redesignating paragraphs (4), (5), 
                and (6) as paragraphs (5), (6), and (7), 
                respectively; and
                    (B) by inserting after paragraph (3) the 
                following:
            ``(4) Procuring agency.--The term `procuring 
        agency' means--
                    ``(A) any Federal agency that is using 
                Federal funds for procurement; or
                    ``(B) any person contracting with any 
                Federal agency with respect to work performed 
                under the contract.''.
            (2) Procurement.--Section 9002 of the Farm Security 
        and Rural Investment Act of 2002 (7 U.S.C. 8102) is 
        amended--
                    (A) by striking ``Federal agency'' each 
                place it appears (other than in subsections (f) 
                and (g)) and inserting ``procuring agency'';
                    (B) in subsection (c)(2)--
                            (i) by striking ``(2)'' and all 
                        that follows through 
                        ``Notwithstanding'' and inserting the 
                        following:
            ``(2) Flexibility.--Notwithstanding'';
                            (ii) by striking ``an agency'' and 
                        inserting ``a procuring agency''; and
                            (iii) by striking ``the agency'' 
                        and inserting ``the procuring agency'';
                    (C) in subsection (d), by striking 
                ``procured by Federal agencies'' and inserting 
                ``procured by procuring agencies''; and
                    (D) in subsection (f), by striking 
                ``Federal agencies'' and inserting ``procuring 
                agencies'' .
    (b) Capitol Complex Procurement.--Section 9002 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 8102) (as 
amended by subsection (a)(2)) is amended--
            (1) by redesignating subsection (j) as subsection 
        (k); and
            (2) by inserting after subsection (i) the 
        following:
    ``(j) Inclusion.--Not later than 90 days after the date of 
enactment of the Energy Policy Act of 2005, the Architect of 
the Capitol, the Sergeant at Arms of the Senate, and the Chief 
Administrative Officer of the House of Representatives shall 
establish procedures that apply the requirements of this 
section to procurement for the Capitol Complex.''.
    (c) Education.--
            (1) In general.--The Architect of the Capitol shall 
        establish in the Capitol Complex a program of public 
        education regarding use by the Architect of the Capitol 
        of biobased products.
            (2) Purposes.--The purposes of the program shall 
        be--
                    (A) to establish the Capitol Complex as a 
                showcase for the existence and benefits of 
                biobased products; and
                    (B) to provide access to further 
                information on biobased products to occupants 
                and visitors.
    (d) Procedure.--Requirements issued under the amendments 
made by subsection (b) shall be made in accordance with 
directives issued by the Committee on Rules and Administration 
of the Senate and the Committee on House Administration of the 
House of Representatives.

SEC. 944. SMALL BUSINESS BIOPRODUCT MARKETING AND CERTIFICATION GRANTS.

    (a) In General.--Using amounts made available under 
subsection (g), the Secretary of Agriculture (referred to in 
this section as the ``Secretary'') shall make available on a 
competitive basis grants to eligible entities described in 
subsection (b) for the biobased product marketing and 
certification purposes described in subsection (c).
    (b) Eligible Entities.--
            (1) In general.--An entity eligible for a grant 
        under this section is any manufacturer of biobased 
        products that--
                    (A) proposes to use the grant for the 
                biobased product marketing and certification 
                purposes described in subsection (c); and
                    (B) has not previously received a grant 
                under this section.
            (2) Preference.--In making grants under this 
        section, the Secretary shall provide a preference to an 
        eligible entity that has fewer than 50 employees.
    (c) Biobased Product Marketing and Certification Grant 
Purposes.--A grant made under this section shall be used--
            (1) to provide working capital for marketing of 
        biobased products; and
            (2) to provide for the certification of biobased 
        products to--
                    (A) qualify for the label described in 
                section 9002(h)(1) of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 
                8102(h)(1)); or
                    (B) meet other biobased standards 
                determined appropriate by the Secretary.
    (d) Matching Funds.--
            (1) In general.--Grant recipients shall provide 
        matching non-Federal funds equal to the amount of the 
        grant received.
            (2) Expenditure.--Matching funds shall be expended 
        in advance of grant funding, so that for every dollar 
        of grant that is advanced, an equal amount of matching 
        funds shall have been funded prior to submitting the 
        request for reimbursement.
    (e) Amount.--A grant made under this section shall not 
exceed $100,000.
    (f) Administration.--The Secretary shall establish such 
administrative requirements for grants under this section, 
including requirements for applications for the grants, as the 
Secretary considers appropriate.
    (g) Authorizations of Appropriations.--There are authorized 
to be appropriated to make grants under this section--
            (1) $1,000,000 for fiscal year 2006; and
            (2) such sums as are necessary for each of fiscal 
        years 2007 through 2015.

SEC. 945. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.

    (a) In General.--Using amounts made available under 
subsection (g), the Secretary of Agriculture (referred to in 
this section as the ``Secretary'') shall make available on a 
competitive basis grants to eligible entities described in 
subsection (b) for the purposes described in subsection (c).
    (b) Eligible Entities.--An entity eligible for a grant 
under this section is any regional bioeconomy development 
association, agricultural or energy trade association, or Land 
Grant institution that--
            (1) proposes to use the grant for the purposes 
        described in subsection (c); and
            (2) has not previously received a grant under this 
        section.
    (c) Regional Bioeconomy Development Association Grant 
Purposes.--A grant made under this section shall be used to 
support and promote the growth and development of the 
bioeconomy within the region served by the eligible entity, 
through coordination, education, outreach, and other endeavors 
by the eligible entity.
    (d) Matching Funds.--
            (1) In general.--Grant recipients shall provide 
        matching non-Federal funds equal to the amount of the 
        grant received.
            (2) Expenditure.--Matching funds shall be expended 
        in advance of grant funding, so that for every dollar 
        of grant that is advanced, an equal amount of matching 
        funds shall have been funded prior to submitting the 
        request for reimbursement.
    (e) Administration.--The Secretary shall establish such 
administrative requirements for grants under this section, 
including requirements for applications for the grants, as the 
Secretary considers appropriate.
    (f) Amount.--A grant made under this section shall not 
exceed $500,000.
    (g) Authorizations of Appropriations.--There are authorized 
to be appropriated to make grants under this section--
            (1) $1,000,000 for fiscal year 2006; and
            (2) such sums as are necessary for each of fiscal 
        years 2007 through 2015.

SEC. 946. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.

    (a) In General.--The Secretary of Agriculture (referred to 
in this section as the ``Secretary'') shall make grants 
available on a competitive basis to enterprises owned by 
agricultural producers, for the purposes of demonstrating cost-
effective, cellulosic biomass innovations in--
            (1) preprocessing of feedstocks, including 
        cleaning, separating and sorting, mixing or blending, 
        and chemical or biochemical treatments, to add value 
        and lower the cost of feedstock processing at a 
        biorefinery; or
            (2) 1-pass or other efficient, multiple crop 
        harvesting techniques.
    (b) Limitations on Grants.--
            (1) Number of grants.--Not more than 5 
        demonstration projects per fiscal year shall be funded 
        under this section.
            (2) Non-federal cost share.--The non-Federal cost 
        share of a project under this section shall be not less 
        than 20 percent, as determined by the Secretary.
    (c) Condition of Grant.--To be eligible for a grant for a 
project under this section, a recipient of a grant or a 
participating entity shall agree to use the material harvested 
under the project--
            (1) to produce ethanol; or
            (2) for another energy purpose, such as the 
        generation of heat or electricity.
    (d) Authorization for Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 947. EDUCATION AND OUTREACH.

    (a) In General.--The Secretary of Agriculture shall 
establish, within the Department of Agriculture or through an 
independent contracting entity, a program of education and 
outreach on biobased fuels and biobased products consisting 
of--
            (1) training and technical assistance programs for 
        feedstock producers to promote producer ownership, 
        investment, and participation in the operation of 
        processing facilities; and
            (2) public education and outreach to familiarize 
        consumers with the biobased fuels and biobased 
        products.
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 948. REPORTS.

    (a) Biobased Product Potential.--Not later than 1 year 
after the date of enactment of this Act, the Secretary of 
Agriculture (referred to in this section as the ``Secretary'') 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that--
            (1) describes the economic potential for the United 
        States of the widespread production and use of 
        commercial and industrial biobased products through 
        calendar year 2025; and
            (2) as the maximum extent practicable, identifies 
        the economic potential by product area.
    (b) Analysis of Economic Indicators.--Not later than 2 
years after the date of enactment of this Act, the Secretary 
shall submit to Congress an analysis of economic indicators of 
the biobased economy.

                       Subtitle E--Nuclear Energy

SEC. 951. NUCLEAR ENERGY.

    (a) In General.--The Secretary shall conduct programs of 
civilian nuclear energy research, development, demonstration, 
and commercial application, including activities described in 
this subtitle. Programs under this subtitle shall take into 
consideration the following objectives:
            (1) Enhancing nuclear power's viability as part of 
        the United States energy portfolio.
            (2) Providing the technical means to reduce the 
        likelihood of nuclear proliferation.
            (3) Maintaining a cadre of nuclear scientists and 
        engineers.
            (4) Maintaining National Laboratory and university 
        nuclear programs, including their infrastructure.
            (5) Supporting both individual researchers and 
        multidisciplinary teams of researchers to pioneer new 
        approaches in nuclear energy, science, and technology.
            (6) Developing, planning, constructing, acquiring, 
        and operating special equipment and facilities for the 
        use of researchers.
            (7) Supporting technology transfer and other 
        appropriate activities to assist the nuclear energy 
        industry, and other users of nuclear science and 
        engineering, including activities addressing 
        reliability, availability, productivity, component 
        aging, safety, and security of nuclear power plants.
            (8) Reducing the environmental impact of nuclear 
        energy-related activities.
    (b) Authorization of Appropriations for Core Programs.--
There are authorized to be appropriated to the Secretary to 
carry out nuclear energy research, development, demonstration, 
and commercial application activities, including activities 
authorized under this subtitle, other than those described in 
subsection (c)--
            (1) $330,000,000 for fiscal year 2007;
            (2) $355,000,000 for fiscal year 2008; and
            (3) $495,000,000 for fiscal year 2009.
    (c) Nuclear Infrastructure and Facilities.--There are 
authorized to be appropriated to the Secretary to carry out 
activities under section 955--
            (1) $135,000,000 for fiscal year 2007;
            (2) $140,000,000 for fiscal year 2008; and
            (3) $145,000,000 for fiscal year 2009.
    (d) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
            (1) For activities under section 953--
                    (A) $150,000,000 for fiscal year 2007;
                    (B) $155,000,000 for fiscal year 2008; and
                    (C) $275,000,000 for fiscal year 2009.
            (2) For activities under section 954--
                    (A) $43,600,000 for fiscal year 2007;
                    (B) $50,100,000 for fiscal year 2008; and
                    (C) $56,000,000 for fiscal year 2009.
            (3) For activities under section 957, $6,000,000 
        for each of fiscal years 2007 through 2009.
    (e) Limitation.--None of the funds authorized under this 
section may be used to decommission the Fast Flux Test 
Facility.

SEC. 952. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary 
shall carry out a Nuclear Energy Research Initiative for 
research and development related to nuclear energy.
    (b) Nuclear Energy Systems Support Program.--The Secretary 
shall carry out a Nuclear Energy Systems Support Program to 
support research and development activities addressing 
reliability, availability, productivity, component aging, 
safety, and security of existing nuclear power plants.
    (c) Nuclear Power 2010 Program.--
            (1) In general.--The Secretary shall carry out a 
        Nuclear Power 2010 Program, consistent with 
        recommendations of the Nuclear Energy Research Advisory 
        Committee of the Department in the report entitled ``A 
        Roadmap to Deploy New Nuclear Power Plants in the 
        United States by 2010'' and dated October 2001.
            (2) Administration.--The Program shall include--
                    (A) use of the expertise and capabilities 
                of industry, institutions of higher education, 
                and National Laboratories in evaluation of 
                advanced nuclear fuel cycles and fuels testing;
                    (B) consideration of a variety of reactor 
                designs suitable for both developed and 
                developing nations;
                    (C) participation of international 
                collaborators in research, development, and 
                design efforts, as appropriate; and
                    (D) encouragement for participation by 
                institutions of higher education and industry.
    (d) Generation IV Nuclear Energy Systems Initiative.--
            (1) In general.--The Secretary shall carry out a 
        Generation IV Nuclear Energy Systems Initiative to 
        develop an overall technology plan for and to support 
        research and development necessary to make an informed 
        technical decision about the most promising candidates 
        for eventual commercial application.
            (2) Administration.--In conducting the Initiative, 
        the Secretary shall examine advanced proliferation-
        resistant and passively safe reactor designs, including 
        designs that--
                    (A) are economically competitive with other 
                electric power generation plants;
                    (B) have higher efficiency, lower cost, and 
                improved safety compared to reactors in 
                operation on the date of enactment of this Act;
                    (C) use fuels that are proliferation 
                resistant and have substantially reduced 
                production of high-level waste per unit of 
                output; and
                    (D) use improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall 
carry out research to examine designs for high-temperature 
reactors capable of producing large-scale quantities of 
hydrogen.

SEC. 953. ADVANCED FUEL CYCLE INITIATIVE.

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

SEC. 954. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) In General.--The Secretary shall conduct a program to 
invest in human resources and infrastructure in the nuclear 
sciences and related fields, including health physics, nuclear 
engineering, and radiochemistry, consistent with missions of 
the Department related to civilian nuclear research, 
development, demonstration, and commercial application.
    (b) Requirements.--In carrying out the program under this 
section, the Secretary shall--
            (1) conduct a graduate and undergraduate fellowship 
        program to attract new and talented students, which may 
        include fellowships for students to spend time at 
        National Laboratories in the areas of nuclear science, 
        engineering, and health physics with a member of the 
        National Laboratory staff acting as a mentor;
            (2) conduct a junior faculty research initiation 
        grant program to assist universities in recruiting and 
        retaining new faculty in the nuclear sciences and 
        engineering by awarding grants to junior faculty for 
        research on issues related to nuclear energy 
        engineering and science;
            (3) support fundamental nuclear sciences, 
        engineering, and health physics research through a 
        nuclear engineering education and research program;
            (4) encourage collaborative nuclear research among 
        industry, National Laboratories, and universities; and
            (5) support communication and outreach related to 
        nuclear science, engineering, and health physics.
    (c) University-National Laboratory Interactions.--The 
Secretary shall conduct--
            (1) a fellowship program for professors at 
        universities to spend sabbaticals at National 
        Laboratories in the areas of nuclear science and 
        technology; and
            (2) a visiting scientist program in which National 
        Laboratory staff can spend time in academic nuclear 
        science and engineering departments.
    (d) Strengthening University Research and Training Reactors 
and Associated Infrastructure.--In carrying out the program 
under this section, the Secretary may support--
            (1) converting research reactors from high-
        enrichment fuels to low-enrichment fuels and upgrading 
        operational instrumentation;
            (2) consortia of universities to broaden access to 
        university research reactors;
            (3) student training programs, in collaboration 
        with the United States nuclear industry, in relicensing 
        and upgrading reactors, including through the provision 
        of technical assistance; and
            (4) reactor improvements as part of a taking into 
        consideration effort that emphasizes research, 
        training, and education, including through the 
        Innovations in Nuclear Infrastructure and Education 
        Program or any similar program.
    (e) Operations and Maintenance.--Funding for a project 
provided under this section may be used for a portion of the 
operating and maintenance costs of a research reactor at a 
university used in the project.
    (f) Definition.--In this section, the term ``junior 
faculty'' means a faculty member who was awarded a doctorate 
less than 10 years before receipt of an award from the grant 
program described in subsection (b)(2).

SEC. 955. DEPARTMENT OF ENERGY CIVILIAN NUCLEAR INFRASTRUCTURE AND 
                    FACILITIES.

    (a) In General.--The Secretary shall operate and maintain 
infrastructure and facilities to support the nuclear energy 
research, development, demonstration, and commercial 
application programs, including radiological facilities 
management, isotope production, and facilities management.
    (b) Duties.--In carrying this section, the Secretary 
shall--
            (1) develop an inventory of nuclear science and 
        engineering facilities, equipment, expertise, and other 
        assets at all of the National Laboratories;
            (2) develop a prioritized list of nuclear science 
        and engineering plant and equipment improvements needed 
        at each of the National Laboratories;
            (3) consider the available facilities and expertise 
        at all National Laboratories and emphasize investments 
        which complement rather than duplicate capabilities; 
        and
            (4) develop a timeline and a proposed budget for 
        the completion of deferred maintenance on plant and 
        equipment, with the goal of ensuring that Department 
        programs under this subtitle will be generally 
        recognized to be among the best in the world.
    (c) Plan.--The Secretary shall develop a comprehensive plan 
for the facilities at the Idaho National Laboratory, especially 
taking into account the resources available at other National 
Laboratories. In developing the plan, the Secretary shall--
            (1) evaluate the facilities planning processes 
        utilized by other physical science and engineering 
        research and development institutions, both in the 
        United States and abroad, that are generally recognized 
        as being among the best in the world, and consider how 
        those processes might be adapted toward developing such 
        facilities plan;
            (2) avoid duplicating, moving, or transferring 
        nuclear science and engineering facilities, equipment, 
        expertise, and other assets that currently exist at 
        other National Laboratories;
            (3) consider the establishment of a national 
        transuranic analytic chemistry laboratory as a user 
        facility at the Idaho National Laboratory;
            (4) include a plan to develop, if feasible, the 
        Advanced Test Reactor and Test Reactor Area into a user 
        facility that is more readily accessible to academic 
        and industrial researchers;
            (5) consider the establishment of a fast neutron 
        source as a user facility;
            (6) consider the establishment of new hot cells and 
        the configuration of hot cells most likely to advance 
        research, development, demonstration, and commercial 
        application in nuclear science and engineering, 
        especially in the context of the condition and 
        availability of these facilities elsewhere in the 
        National Laboratories; and
            (7) include a timeline and a proposed budget for 
        the completion of deferred maintenance on plant and 
        equipment.
    (d) Transmittal to Congress.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall transmit 
the plan under subsection (c) to Congress.

SEC. 956. SECURITY OF NUCLEAR FACILITIES.

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

SEC. 957. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

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

                       Subtitle F--Fossil Energy

SEC. 961. FOSSIL ENERGY.

    (a) In General.--The Secretary shall carry out research, 
development, demonstration, and commercial application programs 
in fossil energy, including activities under this subtitle, 
with the goal of improving the efficiency, effectiveness, and 
environmental performance of fossil energy production, 
upgrading, conversion, and consumption. Such programs take into 
consideration the following objectives:
            (1) Increasing the energy conversion efficiency of 
        all forms of fossil energy through improved 
        technologies.
            (2) Decreasing the cost of all fossil energy 
        production, generation, and delivery.
            (3) Promoting diversity of energy supply.
            (4) Decreasing the dependence of the United States 
        on foreign energy supplies.
            (5) Improving United States energy security.
            (6) Decreasing the environmental impact of energy-
        related activities.
            (7) Increasing the export of fossil energy-related 
        equipment, technology, and services from the United 
        States.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out fossil energy 
research, development, demonstration, and commercial 
application activities, including activities authorized under 
this subtitle--
            (1) $611,000,000 for fiscal year 2007;
            (2) $626,000,000 for fiscal year 2008; and
            (3) $641,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
            (1) For activities under section 962--
                    (A) $367,000,000 for fiscal year 2007;
                    (B) $376,000,000 for fiscal year 2008; and
                    (C) $394,000,000 for fiscal year 2009.
            (2) For activities under section 964--
                    (A) $20,000,000 for fiscal year 2007;
                    (B) $25,000,000 for fiscal year 2008; and
                    (C) $30,000,000 for fiscal year 2009.
            (3) For activities under section 966--
                    (A) $1,500,000 for fiscal year 2007; and
                    (B) $450,000 for each of fiscal years 2008 
                and 2009.
            (4) For the Office of Arctic Energy under section 
        3197 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (42 U.S.C. 
        7144d) $25,000,000 for each of fiscal years 2007 
        through 2009.
    (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy 
established under section 3197 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (42 U.S.C. 
7144d) $25,000,000 for each of fiscal years 2010 through 2012.
    (e) Limitations.--
            (1) Uses.--None of the funds authorized under this 
        section may be used for Fossil Energy Environmental 
        Restoration or Import/Export Authorization.
            (2) Institutions of higher education.--Of the funds 
        authorized under subsection (c)(2), not less than 20 
        percent of the funds appropriated for each fiscal year 
        shall be dedicated to research and development carried 
        out at institutions of higher education.

SEC. 962. COAL AND RELATED TECHNOLOGIES PROGRAM.

    (a) In General.--In addition to the programs authorized 
under title IV, the Secretary shall conduct a program of 
technology research, development, demonstration, and commercial 
application for coal and power systems, including programs to 
facilitate production and generation of coal-based power 
through--
            (1) innovations for existing plants (including 
        mercury removal);
            (2) gasification systems;
            (3) advanced combustion systems;
            (4) turbines for synthesis gas derived from coal;
            (5) carbon capture and sequestration research and 
        development;
            (6) coal-derived chemicals and transportation 
        fuels;
            (7) liquid fuels derived from low rank coal water 
        slurry;
            (8) solid fuels and feedstocks;
            (9) advanced coal-related research;
            (10) advanced separation technologies; and
            (11) fuel cells for the operation of synthesis gas 
        derived from coal.
    (b) Cost and Performance Goals.--
            (1) In general.--In carrying out programs 
        authorized by this section, during each of calendar 
        years 2008, 2010, 2012, and 2016, and during each 
        fiscal year beginning after September 30, 2021, the 
        Secretary shall identify cost and performance goals for 
        coal-based technologies that would permit the continued 
        cost-competitive use of coal for the production of 
        electricity, chemical feedstocks, and transportation 
        fuels.
            (2) Administration.--In establishing the cost and 
        performance goals, the Secretary shall--
                    (A) consider activities and studies 
                undertaken as of the date of enactment of this 
                Act by industry in cooperation with the 
                Department in support of the identification of 
                the goals;
                    (B) consult with interested entities, 
                including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote 
                        coal and advanced coal technologies;
                            (iv) environmental organizations;
                            (v) organizations representing 
                        workers; and
                            (vi) organizations representing 
                        consumers;
                    (C) not later than 120 days after the date 
                of enactment of this Act, publish in the 
                Federal Register proposed draft cost and 
                performance goals for public comments; and
                    (D) not later than 180 days after the date 
                of enactment of this Act and every 4 years 
                thereafter, submit to Congress a report 
                describing the final cost and performance goals 
                for the technologies that includes--
                            (i) a list of technical milestones; 
                        and
                            (ii) an explanation of how programs 
                        authorized in this section will not 
                        duplicate the activities authorized 
                        under the Clean Coal Power Initiative 
                        authorized under title IV.
    (c) Powder River Basin and Fort Union Lignite Coal Mercury 
Removal.--
            (1) In general.--In addition to the programs 
        authorized by subsection (a), the Secretary shall 
        establish a program to test and develop technologies to 
        control and remove mercury emissions from subbituminous 
        coal mined in the Powder River Basin, and Fort Union 
        lignite coals, that are used for the generation of 
        electricity.
            (2) Efficacy of mercury removal technology.--In 
        carrying out the program under paragraph (1), the 
        Secretary shall examine the efficacy of mercury removal 
        technologies on coals described in that paragraph that 
        are blended with other types of coal.
    (d) Fuel Cells.--
            (1) In general.--The Secretary shall conduct a 
        program of research, development, demonstration, and 
        commercial application on fuel cells for low-cost, 
        high-efficiency, fuel-flexible, modular power systems.
            (2) Demonstrations.--The demonstrations referred to 
        in paragraph (1) shall include solid oxide fuel cell 
        technology for commercial, residential, and 
        transportation applications, and distributed generation 
        systems, using improved manufacturing production and 
        processes.

SEC. 963. CARBON CAPTURE RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out a 10-year 
carbon capture research and development program to develop 
carbon dioxide capture technologies on combustion-based systems 
for use--
            (1) in new coal utilization facilities; and
            (2) on the fleet of coal-based units in existence 
        on the date of enactment of this Act.
    (b) Objectives.--The objectives of the program under 
subsection (a) shall be--
            (1) to develop carbon dioxide capture technologies, 
        including adsorption and absorption techniques and 
        chemical processes, to remove the carbon dioxide from 
        gas streams containing carbon dioxide potentially 
        amenable to sequestration;
            (2) to develop technologies that would directly 
        produce concentrated streams of carbon dioxide 
        potentially amenable to sequestration;
            (3) to increase the efficiency of the overall 
        system to reduce the quantity of carbon dioxide 
        emissions released from the system per megawatt 
        generated; and
            (4) in accordance with the carbon dioxide capture 
        program, to promote a robust carbon sequestration 
        program and continue the work of the Department, in 
        conjunction with the private sector, through regional 
        carbon sequestration partnerships.
    (c) Authorization of Appropriations.--From amounts 
authorized under section 961(b), the following sums are 
authorized for activities described in subsection (a)(2):
            (1) $25,000,000 for fiscal year 2006;
            (2) $30,000,000 for fiscal year 2007; and
            (3) $35,000,000 for fiscal year 2008

SEC. 964. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

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

SEC. 965. OIL AND GAS RESEARCH PROGRAMS.

    (a) In General.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial 
application of oil and gas, including--
            (1) exploration and production;
            (2) gas hydrates;
            (3) reservoir life and extension;
            (4) transportation and distribution infrastructure;
            (5) ultraclean fuels;
            (6) heavy oil, oil shale, and tar sands; and
            (7) related environmental research.
    (b) Objectives.--The objectives of this program shall 
include advancing the science and technology available to 
domestic petroleum producers, particularly independent 
operators, to minimize the economic dislocation caused by the 
decline of domestic supplies of oil and natural gas resources.
    (c) Natural Gas and Oil Deposits Report.--Not later than 2 
years after the date of enactment of this Act and every 2 years 
thereafter, the Secretary of the Interior, in consultation with 
other appropriate Federal agencies, shall submit to Congress a 
report on the latest estimates of natural gas and oil reserves, 
reserves growth, and undiscovered resources in Federal and 
State waters off the coast of Louisiana, Texas, Alabama, and 
Mississippi.
    (d) Integrated Clean Power and Energy Research.--
            (1) Establishment of center.--The Secretary shall 
        establish a national center or consortium of excellence 
        in clean energy and power generation, using the 
        resources of the Clean Power and Energy Research 
        Consortium in existence on the date of enactment of 
        this Act, to address the critical dependence of the 
        United States on energy and the need to reduce 
        emissions.
            (2) Focus areas.--The center or consortium shall 
        conduct a program of research, development, 
        demonstration, and commercial application on 
        integrating the following 6 focus areas:
                    (A) Efficiency and reliability of gas 
                turbines for power generation.
                    (B) Reduction in emissions from power 
                generation.
                    (C) Promotion of energy conservation 
                issues.
                    (D) Effectively using alternative fuels and 
                renewable energy.
                    (E) Development of advanced materials 
                technology for oil and gas exploration and use 
                in harsh environments.
                    (F) Education on energy and power 
                generation issues.

SEC. 966. LOW-VOLUME OIL AND GAS RESERVOIR RESEARCH PROGRAM.

    (a) Definitions of GIS.--In this section, the term ``GIS'' 
means geographic information systems technology that 
facilitates the organization and management of data with a 
geographic component.
    (b) Program.--The Secretary shall establish a program of 
research, development, demonstration, and commercial 
application to maximize the productive capacity of marginal 
wells and reservoirs.
    (c) Data Collection.--Under the program, the Secretary 
shall collect data on--
            (1) the status and location of marginal wells and 
        oil and gas reservoirs;
            (2) the production capacity of marginal wells and 
        oil and gas reservoirs;
            (3) the location of low-pressure gathering 
        facilities and pipelines; and
            (4) the quantity of natural gas vented or flared in 
        association with crude oil production.
    (d) Analysis.--Under the program, the Secretary shall--
            (1) estimate the remaining producible reserves 
        based on variable pipeline pressures; and
            (2) recommend measures that will enable the 
        continued production of those resources.
    (e) Study.--
            (1) In general.--The Secretary may award a grant to 
        an organization of States that contain significant 
        numbers of marginal oil and natural gas wells to 
        conduct an annual study of low-volume natural gas 
        reservoirs.
            (2) Organization with no gis capabilities.--If an 
        organization receiving a grant under paragraph (1) does 
        not have GIS capabilities, the organization shall 
        contract with an institution of higher education with 
        GIS capabilities.
            (3) State geologists.--The organization receiving a 
        grant under paragraph (1) shall collaborate with the 
        State geologist of each State being studied.
    (f) Public Information.--The Secretary may use the data 
collected and analyzed under this section to produce maps and 
literature to disseminate to States to promote conservation of 
natural gas reserves.

SEC. 967. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

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

SEC. 968. METHANE HYDRATE RESEARCH.

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

``SECTION 1. SHORT TITLE.

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

``SEC. 2. FINDINGS.

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

``SEC. 3. DEFINITIONS.

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

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

    ``(a) In General.--
            ``(1) Commencement of program.--Not later than 90 
        days after the date of enactment of the Energy 
        Research, Development, Demonstration, and Commercial 
        Application Act of 2005, the Secretary, in consultation 
        with the Secretary of Commerce, the Secretary of 
        Defense, the Secretary of the Interior, and the 
        Director, shall commence a program of methane hydrate 
        research and development in accordance with this 
        section.
            ``(2) Designations.--The Secretary, the Secretary 
        of Commerce, the Secretary of Defense, the Secretary of 
        the Interior, and the Director shall designate 
        individuals to carry out this section.
            ``(3) Coordination.--The individual designated by 
        the Secretary shall coordinate all activities within 
        the Department of Energy relating to methane hydrate 
        research and development.
            ``(4) Meetings.--The individuals designated under 
        paragraph (2) shall meet not later than 180 days after 
        the date of enactment of the Energy Research, 
        Development, Demonstration, and Commercial Application 
        Act of 2005 and not less frequently than every 180 days 
        thereafter to--
                    ``(A) review the progress of the program 
                under paragraph (1); and
                    ``(B) coordinate interagency research and 
                partnership efforts in carrying out the 
                program.
    ``(b) Grants, Contracts, Cooperative Agreements, 
Interagency Funds Transfer Agreements, and Field Work 
Proposals.--
            ``(1) Assistance and coordination.--In carrying out 
        the program of methane hydrate research and development 
        authorized by this section, the Secretary may award 
        grants to, or enter into contracts or cooperative 
        agreements with, institutions of higher education, 
        oceanographic institutions, and industrial enterprises 
        to--
                    ``(A) conduct basic and applied research to 
                identify, explore, assess, and develop methane 
                hydrate as a commercially viable source of 
                energy;
                    ``(B) identify methane hydrate resources 
                through remote sensing;
                    ``(C) acquire and reprocess seismic data 
                suitable for characterizing methane hydrate 
                accumulations;
                    ``(D) assist in developing technologies 
                required for efficient and environmentally 
                sound development of methane hydrate resources;
                    ``(E) promote education and training in 
                methane hydrate resource research and resource 
                development through fellowships or other means 
                for graduate education and training;
                    ``(F) conduct basic and applied research to 
                assess and mitigate the environmental impact of 
                hydrate degassing (including both natural 
                degassing and degassing associated with 
                commercial development);
                    ``(G) develop technologies to reduce the 
                risks of drilling through methane hydrates; and
                    ``(H) conduct exploratory drilling, well 
                testing, and production testing operations on 
                permafrost and non-permafrost gas hydrates in 
                support of the activities authorized by this 
                paragraph, including drilling of 1 or more 
                full-scale production test wells.
            ``(2) Competitive peer review.--Funds made 
        available under paragraph (1) shall be made available 
        based on a competitive process using external 
        scientific peer review of proposed research.
    ``(c) Methane Hydrates Advisory Panel.--
            ``(1) In general.--The Secretary shall establish an 
        advisory panel (including the hiring of appropriate 
        staff) consisting of representatives of industrial 
        enterprises, institutions of higher education, 
        oceanographic institutions, State agencies, and 
        environmental organizations with knowledge and 
        expertise in the natural gas hydrates field, to--
                    ``(A) assist in developing recommendations 
                and broad programmatic priorities for the 
                methane hydrate research and development 
                program carried out under subsection (a)(1);
                    ``(B) provide scientific oversight for the 
                methane hydrates program, including assessing 
                progress toward program goals, evaluating 
                program balance, and providing recommendations 
                to enhance the quality of the program over 
                time; and
                    ``(C) not later than 2 years after the date 
                of enactment of the Energy Research, 
                Development, Demonstration, and Commercial 
                Application Act of 2005, and at such later 
                dates as the panel considers advisable, submit 
                to Congress--
                            ``(i) an assessment of the methane 
                        hydrate research program; and
                            ``(ii) an assessment of the 5-year 
                        research plan of the Department of 
                        Energy.
            ``(2) Conflicts of interest.--In appointing each 
        member of the advisory panel established under 
        paragraph (1), the Secretary shall ensure, to the 
        maximum extent practicable, that the appointment of the 
        member does not pose a conflict of interest with 
        respect to the duties of the member under this Act.
            ``(3) Meetings.--The advisory panel shall--
                    ``(A) hold the initial meeting of the 
                advisory panel not later than 180 days after 
                the date of establishment of the advisory 
                panel; and
                    ``(B) meet biennially thereafter.
            ``(4) Coordination.--The advisory panel shall 
        coordinate activities of the advisory panel with 
        program managers of the Department of Energy at 
        appropriate National Laboratories.
    ``(d) Construction Costs.--None of the funds made available 
to carry out this section may be used for the construction of a 
new building or the acquisition, expansion, remodeling, or 
alteration of an existing building (including site grading and 
improvement and architect fees).
    ``(e) Responsibilities of the Secretary.--In carrying out 
subsection (b)(1), the Secretary shall--
            ``(1) facilitate and develop partnerships among 
        government, industrial enterprises, and institutions of 
        higher education to research, identify, assess, and 
        explore methane hydrate resources;
            ``(2) undertake programs to develop basic 
        information necessary for promoting long-term interest 
        in methane hydrate resources as an energy source;
            ``(3) ensure that the data and information 
        developed through the program are accessible and widely 
        disseminated as needed and appropriate;
            ``(4) promote cooperation among agencies that are 
        developing technologies that may hold promise for 
        methane hydrate resource development;
            ``(5) report annually to Congress on the results of 
        actions taken to carry out this Act; and
            ``(6) ensure, to the maximum extent practicable, 
        greater participation by the Department of Energy in 
        international cooperative efforts.

``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.

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

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

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

``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary 
to carry out this Act, to remain available until expended--
            ``(1) $15,000,000 for fiscal year 2006;
            ``(2) $20,000,000 for fiscal year 2007;
            ``(3) $30,000,000 for fiscal year 2008;
            ``(4) $40,000,000 for fiscal year 2009; and
            ``(5) $50,000,000 for fiscal year 2010.''.
    (b) Reclassification.--The Law Revision Counsel shall 
reclassify the Methane Hydrate Research and Development Act of 
2000 (30 U.S.C. 1902 note; Public Law 106-193) to a new chapter 
at the end of title 30, United States Code.

                          Subtitle G--Science

SEC. 971. SCIENCE.

    (a) In General.--The Secretary shall conduct, through the 
Office of Science, programs of research, development, 
demonstration, and commercial application in high energy 
physics, nuclear physics, biological and environmental 
research, basic energy sciences, advanced scientific computing 
research, and fusion energy sciences, including activities 
described in this subtitle. The programs shall include support 
for facilities and infrastructure, education, outreach, 
information, analysis, and coordination activities.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out research, 
development, demonstration, and commercial application 
activities of the Office of Science, including activities 
authorized under this subtitle (including the amounts 
authorized under the amendment made by section 976(b) and 
including basic energy sciences, advanced scientific and 
computing research, biological and environmental research, 
fusion energy sciences, high energy physics, nuclear physics, 
research analysis, and infrastructure support)--
            (1) $4,153,000,000 for fiscal year 2007;
            (2) $4,586,000,000 for fiscal year 2008; and
            (3) $5,200,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection 
(b), the following sums are authorized:
            (1) For activities under the Fusion Energy Sciences 
        program (including activities under section 972)--
                    (A) $355,500,000 for fiscal year 2007;
                    (B) $369,500,000 for fiscal year 2008;
                    (C) $384,800,000 for fiscal year 2009; and
                    (D) in addition to the amounts authorized 
                under subparagraphs (A), (B), and (C), such 
                sums as may be necessary for ITER construction, 
                consistent with the limitations of section 
                972(c)(5).
            (2) For activities under the catalysis research 
        program under section 973--
                    (A) $36,500,000 for fiscal year 2007;
                    (B) $38,200,000 for fiscal year 2008; and
                    (C) such sums as may be necessary for 
                fiscal year 2009.
            (3) For activities under the Systems Biology 
        Program under section 977 such sums as may be necessary 
        for each of fiscal years 2007 through 2009.
            (4) For activities under the Energy and Water 
        Supplies program under section 979, $30,000,000 for 
        each of fiscal years 2007 through 2009.
            (5) For the energy research fellowships programs 
        under section 984, $40,000,000 for each of fiscal years 
        2007 through 2009.
            (6) For the advanced scientific computing 
        activities under section 976--
                    (A) $270,000,000 for fiscal year 2007;
                    (B) $350,000,000 for fiscal year 2008; and
                    (C) $375,000,000 for fiscal year 2009.
            (7) For the science and engineering education pilot 
        program under section 983--
                    (A) $4,000,000 for each of fiscal years 
                2007 and 2008; and
                    (B) $8,000,000 for fiscal year 2009.
    (d) Integrated Bioenergy Research and Development.--In 
addition to amounts otherwise authorized by this section, there 
are authorized to be appropriated to the Secretary for 
integrated bioenergy research and development programs, 
projects, and activities, $49,000,000 for each of the fiscal 
years 2005 through 2009. Activities funded under this 
subsection shall be coordinated with ongoing related programs 
of other Federal agencies, including the Plant Genome Program 
of the National Science Foundation. Of the funds authorized 
under this subsection, at least $5,000,000 for each fiscal year 
shall be for training and education targeted to minority and 
socially disadvantaged farmers and ranchers.

SEC. 972. FUSION ENERGY SCIENCES PROGRAM.

    (a) Declaration of Policy.--It shall be the policy of the 
United States to conduct research, development, demonstration, 
and commercial applications to provide for the scientific, 
engineering, and commercial infrastructure necessary to ensure 
that the United States is competitive with other countries in 
providing fusion energy for its own needs and the needs of 
other countries, including by demonstrating electric power or 
hydrogen production for the United States energy grid using 
fusion energy at the earliest date.
    (b) Planning.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        submit to Congress a plan (with proposed cost 
        estimates, budgets, and lists of potential 
        international partners) for the implementation of the 
        policy described in subsection (a) in a manner that 
        ensures that--
                    (A) existing fusion research facilities are 
                more fully used;
                    (B) fusion science, technology, theory, 
                advanced computation, modeling, and simulation 
                are strengthened;
                    (C) new magnetic and inertial fusion 
                research and development facilities are 
                selected based on scientific innovation and 
                cost effectiveness, and the potential of the 
                facilities to advance the goal of practical 
                fusion energy at the earliest date practicable;
                    (D) facilities that are selected are funded 
                at a cost-effective rate;
                    (E) communication of scientific results and 
                methods between the fusion energy science 
                community and the broader scientific and 
                technology communities is improved;
                    (F) inertial confinement fusion facilities 
                are used to the extent practicable for the 
                purpose of inertial fusion energy research and 
                development;
                    (G) attractive alternative inertial and 
                magnetic fusion energy approaches are more 
                fully explored; and
                    (H) to the extent practicable, the 
                recommendations of the Fusion Energy Sciences 
                Advisory Committee in the report on workforce 
                planning, dated March 2004, are carried out, 
                including periodic reassessment of program 
                needs.
            (2) Costs and schedules.--The plan shall also 
        address the status of and, to the extent practicable, 
        costs and schedules for--
                    (A) the design and implementation of 
                international or national facilities for the 
                testing of fusion materials; and
                    (B) the design and implementation of 
                international or national facilities for the 
                testing and development of key fusion 
                technologies.
    (c) United States Participation in ITER.--
            (1) Definitions.--In this subsection:
                    (A) Construction.--
                            (i) In general.--The term 
                        ``construction'' means--
                                    (I) the physical 
                                construction of the ITER 
                                facility; and
                                    (II) the physical 
                                construction, purchase, or 
                                manufacture of equipment or 
                                components that are 
                                specifically designed for the 
                                ITER facility.
                            (ii) Exclusions.--The term 
                        ``construction'' does not include the 
                        design of the facility, equipment, or 
                        components.
                    (B) ITER.--The term ``ITER'' means the 
                international burning plasma fusion research 
                project in which the President announced United 
                States participation on January 30, 2003, or 
                any similar international project.
            (2) Participation.--The United States may 
        participate in the ITER only in accordance with this 
        subsection.
            (3) Agreement.--
                    (A) In general.--The Secretary may 
                negotiate an agreement for United States 
                participation in the ITER.
                    (B) Contents.--Any agreement for United 
                States participation in the ITER shall, at a 
                minimum--
                            (i) clearly define the United 
                        States financial contribution to 
                        construction and operating costs, as 
                        well as any other costs associated with 
                        a project;
                            (ii) ensure that the share of high-
                        technology components of the ITER 
                        manufactured in the United States is at 
                        least proportionate to the United 
                        States financial contribution to the 
                        ITER;
                            (iii) ensure that the United States 
                        will not be financially responsible for 
                        cost overruns in components 
                        manufactured in other ITER 
                        participating countries;
                            (iv) guarantee the United States 
                        full access to all data generated by 
                        the ITER;
                            (v) enable United States 
                        researchers to propose and carry out an 
                        equitable share of the experiments at 
                        the ITER;
                            (vi) provide the United States with 
                        a role in all collective decisionmaking 
                        related to the ITER; and
                            (vii) describe the process for 
                        discontinuing or decommissioning the 
                        ITER and any United States role in that 
                        process.
            (4) Plan.--
                    (A) Development.--The Secretary, in 
                consultation with the Fusion Energy Sciences 
                Advisory Committee, shall develop a plan for 
                the participation of United States scientists 
                in the ITER that shall include--
                            (i) the United States research 
                        agenda for the ITER;
                            (ii) methods to evaluate whether 
                        the ITER is promoting progress toward 
                        making fusion a reliable and affordable 
                        source of power; and
                            (iii) a description of how work at 
                        the ITER will relate to other elements 
                        of the United States fusion program.
                    (B) Review.--The Secretary shall request a 
                review of the plan by the National Academy of 
                Sciences.
            (5) Limitation.--No Federal funds shall be expended 
        for the construction of the ITER until the Secretary 
        has submitted to Congress--
                    (A) the agreement negotiated in accordance 
                with paragraph (3) and 120 days have elapsed 
                since that submission;
                    (B) a report describing the management 
                structure of the ITER and providing a fixed 
                dollar estimate of the cost of United States 
                participation in the construction of the ITER, 
                and 120 days have elapsed since that 
                submission;
                    (C) a report describing how United States 
                participation in the ITER will be funded 
                without reducing funding for other programs in 
                the Office of Science (including other fusion 
                programs), and 60 days have elapsed since that 
                submission; and
                    (D) the plan required by paragraph (4) (but 
                not the National Academy of Sciences review of 
                that plan), and 60 days have elapsed since that 
                submission.
            (6) Alternative to iter.--
                    (A) In general.--If at any time during the 
                negotiations on the ITER, the Secretary 
                determines that construction and operation of 
                the ITER is unlikely or infeasible, the 
                Secretary shall submit to Congress, along with 
                the budget request of the President submitted 
                to Congress for the following fiscal year, a 
                plan for implementing a domestic burning plasma 
                experiment such as the Fusion Ignition Research 
                Experiment, including costs and schedules for 
                the plan.
                    (B) Administration.--The Secretary shall--
                            (i) refine the plan in full 
                        consultation with the Fusion Energy 
                        Sciences Advisory Committee; and
                            (ii) transmit the plan to the 
                        National Academy of Sciences for 
                        review.

SEC. 973. CATALYSIS RESEARCH PROGRAM.

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

SEC. 974. HYDROGEN.

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

SEC. 975. SOLID STATE LIGHTING.

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

SEC. 976. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

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

``SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

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

SEC. 977. SYSTEMS BIOLOGY PROGRAM.

    (a) Program.--
            (1) Establishment.--The Secretary shall establish a 
        research, development, and demonstration program in 
        microbial and plant systems biology, protein science, 
        and computational biology to support the energy, 
        national security, and environmental missions of the 
        Department.
            (2) Grants.--The program shall support individual 
        researchers and multidisciplinary teams of researchers 
        through competitive, merit-reviewed grants.
            (3) Consultation.--In carrying out the program, the 
        Secretary shall consult with other Federal agencies 
        that conduct genetic and protein research.
    (b) Goals.--The program shall have the goal of developing 
technologies and methods based on the biological functions of 
genomes, microbes, and plants that--
            (1) can facilitate the production of fuels, 
        including hydrogen;
            (2) convert carbon dioxide to organic carbon;
            (3) detoxify soils and water, including at 
        facilities of the Department, contaminated with heavy 
        metals and radiological materials; and
            (4) address other Department missions as identified 
        by the Secretary.
    (c) Plan.--
            (1) Development of plan.--Not later than 1 year 
        after the date of enactment of this Act, the Secretary 
        shall prepare and transmit to Congress a research plan 
        describing how the program authorized pursuant to this 
        section will be undertaken to accomplish the program 
        goals established in subsection (b).
            (2) Review of plan.--The Secretary shall contract 
        with the National Academy of Sciences to review the 
        research plan developed under this subsection. The 
        Secretary shall transmit the review to Congress not 
        later than 18 months after transmittal of the research 
        plan under paragraph (1), along with the Secretary's 
        response to the recommendations contained in the 
        review.
    (d) User Facilities and Ancillary Equipment.--Within the 
funds authorized to be appropriated pursuant to this subtitle, 
amounts shall be available for projects to develop, plan, 
construct, acquire, or operate special equipment, 
instrumentation, or facilities, including user facilities at 
National Laboratories, for researchers conducting research, 
development, demonstration, and commercial application in 
systems biology and proteomics and associated biological 
disciplines.
    (e) Prohibition on Biomedical and Human Cell and Human 
Subject Research.--
            (1) No biomedical research.--In carrying out the 
        program under this section, the Secretary shall not 
        conduct biomedical research.
            (2) Limitations.--Nothing in this section shall 
        authorize the Secretary to conduct any research or 
        demonstrations--
                    (A) on human cells or human subjects; or
                    (B) designed to have direct application 
                with respect to human cells or human subjects.

SEC. 978. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.

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

SEC. 979. ENERGY AND WATER SUPPLIES.

    (a) In General.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial 
application to--
            (1) address energy-related issues associated with 
        provision of adequate water supplies, optimal 
        management, and efficient use of water;
            (2) address water-related issues associated with 
        the provision of adequate supplies, optimal management, 
        and efficient use of energy; and
            (3) assess the effectiveness of existing programs 
        within the Department and other Federal agencies to 
        address these energy and water related issues.
    (b) Program Elements.--The program under this section shall 
include--
            (1) arsenic treatment;
            (2) desalination; and
            (3) planning, analysis, and modeling of energy and 
        water supply and demand.
    (c) Collaboration.--In carrying out this section, the 
Secretary shall consult with the Administrator of the 
Environmental Protection Agency, the Secretary of the Interior, 
the Chief Engineer of the Army Corps of Engineers, the 
Secretary of Commerce, the Secretary of Defense, and other 
Federal agencies as appropriate.
    (d) Facilities.--The Secretary may utilize all existing 
facilities within the Department and may design and construct 
additional facilities as needed to carry out the purposes of 
this program.
    (e) Advisory Committee.--The Secretary shall establish or 
utilize an advisory committee to provide independent advice and 
review of the program.
    (f) Reports.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report on the assessment described in subsection (b) and 
recommendations for future actions.

SEC. 980. SPALLATION NEUTRON SOURCE.

    (a) Definitions.--In this section:
            (1) SING.--The term ``SING'' means the Spallation 
        Neutron Source Instruments Next Generation major item 
        of equipment.
            (2) SNS power upgrade.--The term ``SNS power 
        upgrade'' means the Spallation Neutron Source power 
        upgrade described in the 20-year facilities plan of the 
        Office of Science of the Department.
            (3) SNS second target station.--The term ``SNS 
        second target station'' the Spallation Neutron Source 
        second target station described in the 20-year 
        facilities plan of the Office of Science of the 
        Department.
            (4) Spallation neutron source facility.--The terms 
        ``Spallation Neutron Source Facility'' and ``Facility'' 
        mean the completed Spallation Neutron Source scientific 
        user facility located at Oak Ridge National Laboratory, 
        Oak Ridge, Tennessee.
            (5) Spallation neutron source project.--The terms 
        ``Spallation Neutron Source Project'' and ``Project'' 
        means Department Project 99-E-334, Oak Ridge National 
        Laboratory, Oak Ridge, Tennessee.
    (b) Spallation Neutron Source Project.--
            (1) In general.--The Secretary shall submit to 
        Congress, as part of the annual budget request of the 
        President submitted to Congress, a report on progress 
        on the Spallation Neutron Source Project.
            (2) Contents.--The report shall include for the 
        Project--
                    (A) a description of the achievement of 
                milestones;
                    (B) a comparison of actual costs to 
                estimated costs; and
                    (C) any changes in estimated Project costs 
                or schedule.
    (c) Spallation Neutron Source Facility Plan.--
            (1) In general.--The Secretary shall develop an 
        operational plan for the Spallation Neutron Source 
        Facility that ensures that the Facility is employed to 
        the full capability of the Facility in support of the 
        study of advanced materials, nanoscience, and other 
        missions of the Office of Science of the Department.
            (2) Plan.--The operational plan shall--
                    (A) include a plan for the operation of an 
                effective scientific user program that--
                            (i) is based on peer review of 
                        proposals submitted for use of the 
                        Facility;
                            (ii) includes scientific and 
                        technical support to ensure that 
                        external users, including researchers 
                        based at institutions of higher 
                        education, are able to make full use of 
                        a variety of high quality scientific 
                        instruments; and
                            (iii) phases in systems upgrades to 
                        ensure that the Facility remains at the 
                        forefront of international scientific 
                        endeavors in the field of the Facility 
                        throughout the operating life of the 
                        Facility;
                    (B) include an ongoing program to develop 
                new instruments that builds on the high 
                performance neutron source and that allows 
                neutron scattering techniques to be applied to 
                a growing range of scientific problems and 
                disciplines; and
                    (C) address the status of and, to the 
                maximum extent practicable, costs and schedules 
                for--
                            (i) full user mode operations of 
                        the Facility;
                            (ii) instrumentation built at the 
                        Facility during the operating phase 
                        through full use of the experimental 
                        hall, including the SING;
                            (iii) the SNS power upgrade; and
                            (iv) the SNS second target station.
    (d) Authorization of Appropriations.--
            (1) Spallation neutron source project.--There is 
        authorized to be appropriated to carry out the 
        Spallation Neutron Source Project for the lifetime of 
        the Project $1,411,700,000 for total project costs, of 
        which--
                    (A) $1,192,700,000 shall be used for the 
                costs of construction; and
                    (B) $219,000,000 shall be used for other 
                Project costs.
            (2) Spallation neutron source facility.--
                    (A) In general.--Except as provided in 
                subparagraph (B), there is authorized to be 
                appropriated for the Spallation Neutron Source 
                Facility for--
                            (i) the SING, $75,000,000 for each 
                        of fiscal year 2007 through 2009; and
                            (ii) the SNS power upgrade, 
                        $160,000,000, to remain available until 
                        expended.
                    (B) Insufficient stockpiles of heavy 
                water.--If stockpiles of heavy water of the 
                Department are insufficient to meet the needs 
                of the Facility, there is authorized to be 
                appropriated for the Facility $12,000,000 for 
                fiscal year 2007.

SEC. 981. RARE ISOTOPE ACCELERATOR.

    (a) Establishment.--The Secretary shall construct and 
operate a Rare Isotope Accelerator. The Secretary shall 
commence construction no later than September 30, 2008.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary such sums as may be 
necessary to carry out this section. The Secretary shall not 
spend more than $1,100,000,000 in Federal funds for all 
activities associated with the Rare Isotope Accelerator, prior 
to operation of the Accelerator.

SEC. 982. OFFICE OF SCIENTIFIC AND TECHNICAL INFORMATION.

    The Secretary, through the Office of Scientific and 
Technical Information, shall maintain within the Department 
publicly available collections of scientific and technical 
information resulting from research, development, 
demonstration, and commercial applications activities supported 
by the Department.

SEC. 983. SCIENCE AND ENGINEERING EDUCATION PILOT PROGRAM.

    (a) Establishment of Pilot Program.--The Secretary shall 
award a grant to a Southeastern United States consortium of 
major research universities that currently advances science and 
education by partnering with National Laboratories, to 
establish a regional pilot program of its SEEK-16 program for 
enhancing scientific, technological, engineering, and 
mathematical literacy, creativity, and decision-making. The 
consortium shall include leading research universities, 1 or 
more universities that train substantial numbers of elementary 
and secondary school teachers, and (where appropriate) National 
Laboratories.
    (b) Program Elements.--The regional pilot program shall 
include--
            (1) expanding strategic, formal partnerships among 
        universities with strength in research, universities 
        that train substantial numbers of elementary and 
        secondary school teachers, and the private sector;
            (2) combining Department expertise with 1 or more 
        National Aeronautics and Space Administration Educator 
        Resource Centers;
            (3) developing programs to permit current and 
        future teachers to participate in ongoing research 
        projects at National Laboratories and research 
        universities and to adapt lessons learned to the 
        classroom;
            (4) designing and implementing course work;
            (5) designing and implementing a strategy for 
        measuring and assessing progress under the program; and
            (6) developing models for transferring knowledge 
        gained under the pilot program to other institutions 
        and areas of the United States.
    (c) Categorization.--A grant under this section shall be 
considered an authorized activity under section 3165 of the 
Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381b).
    (d) Report.--No later than 2 years after the award of the 
grant, the Secretary shall transmit to Congress a report 
outlining lessons learned and, if determined appropriate by the 
Secretary, containing a plan for expanding the program 
throughout the United States.

SEC. 984. ENERGY RESEARCH FELLOWSHIPS.

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

SEC. 984A. SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

    (a) In General.--The Secretary is authorized to establish a 
Science and Technology Scholarship Program to award 
scholarships to individuals that is designed to recruit and 
prepare students for careers in the Department and National 
Laboratories.
    (b) Service Requirement.--The Secretary may require that an 
individual receiving a scholarship under this section serve as 
a full-time employee of the Department or a National Laboratory 
for a fixed period in return for receiving the scholarship.

                 Subtitle H--International Cooperation

SEC. 985. WESTERN HEMISPHERE ENERGY COOPERATION.

    (a) Program.--The Secretary shall carry out a program to 
promote cooperation on energy issues with countries of the 
Western Hemisphere.
    (b) Activities.--Under the program, the Secretary shall 
fund activities to work with countries of the Western 
Hemisphere to--
            (1) increase the production of energy supplies;
            (2) improve energy efficiency; and
            (3) assist in the development and transfer of 
        energy supply and efficiency technologies that would 
        have a beneficial impact on world energy markets.
    (c) Participation by Institutions of Higher Education.--To 
the extent practicable, the Secretary shall carry out the 
program under this section with the participation of 
institutions of higher education so as to take advantage of the 
acceptance of institutions of higher education by countries of 
the Western Hemisphere as sources of unbiased technical and 
policy expertise when assisting the Secretary in--
            (1) evaluating new technologies;
            (2) resolving technical issues;
            (3) working with those countries in the development 
        of new policies; and
            (4) training policymakers, particularly in the case 
        of institutions of higher education that involve the 
        participation of minority students, such as--
                    (A) Hispanic-serving institutions; and
                    (B) part B institutions.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
            (1) $10,000,000 for fiscal year 2007;
            (2) $13,000,000 for fiscal year 2008; and
            (3) $16,000,000 for fiscal year 2009.

SEC. 986. COOPERATION BETWEEN UNITED STATES AND ISRAEL.

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

SEC. 986A. INTERNATIONAL ENERGY TRAINING.

    (a) In General.--The Secretary, in consultation with the 
Secretary of Commerce, the Secretary of the Interior, and 
Secretary of State, and the Federal Energy Regulatory 
Commission, shall coordinate training and outreach efforts for 
international commercial energy markets in countries with 
developing and restructuring economies.
    (b) Components.--The training and outreach efforts referred 
to in subsection (a) may include--
            (1) production-related fiscal regimes;
            (2) grid and network issues;
            (3) energy user and demand side response;
            (4) international trade of energy; and
            (5) international transportation of energy.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,500,000 for 
each of fiscal years 2007 through 2010.

           Subtitle I--Research Administration and Operations

SEC. 987. AVAILABILITY OF FUNDS.

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

SEC. 988. COST SHARING.

    (a) Applicability.--Notwithstanding any other provision of 
law, in carrying out a research, development, demonstration, or 
commercial application program or activity that is initiated 
after the date of enactment of this section, the Secretary 
shall require cost-sharing in accordance with this section.
    (b) Research and Development.--
            (1) In general.--Except as provided in paragraphs 
        (2) and (3) and subsection (f), the Secretary shall 
        require not less than 20 percent of the cost of a 
        research or development activity described in 
        subsection (a) to be provided by a non-Federal source.
            (2) Exclusion.--Paragraph (1) shall not apply to a 
        research or development activity described in 
        subsection (a) that is of a basic or fundamental 
        nature, as determined by the appropriate officer of the 
        Department.
            (3) Reduction.--The Secretary may reduce or 
        eliminate the requirement of paragraph (1) for a 
        research and development activity of an applied nature 
        if the Secretary determines that the reduction is 
        necessary and appropriate.
    (c) Demonstration and Commercial Application.--
            (1) In general.--Except as provided in paragraph 
        (2) and subsection (f), the Secretary shall require 
        that not less than 50 percent of the cost of a 
        demonstration or commercial application activity 
        described in subsection (a) to be provided by a non-
        Federal source.
            (2) Reduction of non-federal share.--The Secretary 
        may reduce the non-Federal share required under 
        paragraph (1) if the Secretary determines the reduction 
        to be necessary and appropriate, taking into 
        consideration any technological risk relating to the 
        activity.
    (d) Calculation of Amount.--In calculating the amount of a 
non-Federal contribution under this section, the Secretary--
            (1) may include allowable costs in accordance with 
        the applicable cost principles, including--
                    (A) cash;
                    (B) personnel costs;
                    (C) the value of a service, other resource, 
                or third party in-kind contribution determined 
                in accordance with the applicable circular of 
                the Office of Management and Budget;
                    (D) indirect costs or facilities and 
                administrative costs; or
                    (E) any funds received under the power 
                program of the Tennessee Valley Authority 
                (except to the extent that such funds are made 
                available under an annual appropriation Acts); 
                and
            (2) shall not include--
                    (A) revenues or royalties from the 
                prospective operation of an activity beyond the 
                time considered in the award;
                    (B) proceeds from the prospective sale of 
                an asset of an activity; or
                    (C) other appropriated Federal funds.
    (e) Repayment of Federal Share.--The Secretary shall not 
require repayment of the Federal share of a cost-shared 
activity under this section as a condition of making an award.
    (f) Exclusions.--This section shall not apply to--
            (1) a cooperative research and development 
        agreement under the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3701 et seq.);
            (2) a fee charged for the use of a Department 
        facility; or
            (3) an award under--
                    (A) the small business innovation research 
                program under section 9 of the Small Business 
                Act (15 U.S.C. 638); or
                    (B) the small business technology transfer 
                program under that section.

SEC. 989. MERIT REVIEW OF PROPOSALS.

    (a) Awards.--Awards of funds authorized under this Act or 
an amendment made by this Act shall be made only after an 
impartial review of the scientific and technical merit of the 
proposals for the awards has been carried out by or for the 
Department.
    (b) Competition.--Competitive awards under this Act shall 
involve competitions open to all qualified entities within 1 or 
more of the following categories:
            (1) Institutions of higher education.
            (2) National Laboratories.
            (3) Nonprofit and for-profit private entities.
            (4) State and local governments.
            (5) Consortia of entities described in paragraphs 
        (1) through (4).
    (c) Sense of Congress.--It is the sense of Congress that 
research, development, demonstration, and commercial 
application activities carried out by the Department should be 
awarded using competitive procedures, to the maximum extent 
practicable.

SEC. 990. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

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

SEC. 991. NATIONAL LABORATORY DESIGNATION.

    After the date of enactment of this Act, the Secretary 
shall not designate a facility that is not listed in section 
2(3) as a National Laboratory.

SEC. 992. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.

    Not later than 12 months after the date of enactment of 
this Act, and biennially thereafter, the Secretary shall 
transmit to Congress a report on the equal employment 
opportunity practices at National Laboratories. Such report 
shall include--
            (1) a thorough review of each National Laboratory 
        contractor's equal employment opportunity policies, 
        including promotion to management and professional 
        positions and pay raises;
            (2) a statistical report on complaints and their 
        disposition in the National Laboratories;
            (3) a description of how equal employment 
        opportunity practices at the National Laboratories are 
        treated in the contract and in calculating award fees 
        for each contractor;
            (4) a summary of disciplinary actions and their 
        disposition by either the Department or the relevant 
        contractors for each National Laboratory;
            (5) a summary of outreach efforts to attract women 
        and minorities to the National Laboratories;
            (6) a summary of efforts to retain women and 
        minorities in the National Laboratories; and
            (7) a summary of collaboration efforts with the 
        Office of Federal Contract Compliance Programs to 
        improve equal employment opportunity practices at the 
        National Laboratories.

SEC. 993. STRATEGY AND PLAN FOR SCIENCE AND ENERGY FACILITIES AND 
                    INFRASTRUCTURE.

    (a) Facility and Infrastructure Policy.--
            (1) In general.--The Secretary shall develop and 
        implement a strategy for facilities and infrastructure 
        supported primarily from the Office of Science, the 
        Office of Energy Efficiency and Renewable Energy, the 
        Office of Fossil Energy, or the Office of Nuclear 
        Energy, Science and Technology Programs at all National 
        Laboratories and single-purpose research facilities.
            (2) Strategy.--The strategy shall provide cost-
        effective means for--
                    (A) maintaining existing facilities and 
                infrastructure;
                    (B) closing unneeded facilities;
                    (C) making facility modifications; and
                    (D) building new facilities.
    (b) Report.--
            (1) In general.--The Secretary shall prepare and 
        submit, along with the budget request of the President 
        submitted to Congress for fiscal year 2008, a report 
        describing the strategy developed under subsection (a).
            (2) Contents.--For each National Laboratory and 
        single-purpose research facility that is primarily used 
        for science and energy research, the report shall 
        contain--
                    (A) the current priority list of proposed 
                facilities and infrastructure projects, 
                including cost and schedule requirements;
                    (B) a current 10-year plan that 
                demonstrates the reconfiguration of its 
                facilities and infrastructure to meet its 
                missions and to address its long-term 
                operational costs and return on investment;
                    (C) the total current budget for all 
                facilities and infrastructure funding; and
                    (D) the current status of each facility and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 994. STRATEGIC RESEARCH PORTFOLIO ANALYSIS AND COORDINATION PLAN.

    (a) In General.--The Secretary shall periodically review 
all of the science and technology activities of the Department 
in a strategic framework that takes into account both the 
frontiers of science to which the Department can contribute and 
the national needs relevant to the Department's statutory 
missions.
    (b) Coordination Analysis and Plan.--As part of the review 
under subsection (a), the Secretary shall develop a 
coordination plan to improve coordination and collaboration in 
research, development, demonstration, and commercial 
application activities across Department organizational 
boundaries.
    (c) Plan Contents.--The plan shall describe--
            (1) cross-cutting scientific and technical issues 
        and research questions that span more than 1 program or 
        major office of the Department;
            (2) how the applied technology programs of the 
        Department are coordinating their activities, and 
        addressing those questions;
            (3) ways in which the technical interchange within 
        the Department, particularly between the Office of 
        Science and the applied technology programs, can be 
        enhanced, including ways in which the research agendas 
        of the Office of Science and the applied programs can 
        interact and assist each other;
            (4) a description of how the Secretary will ensure 
        that the Department's overall research agenda include, 
        in addition to fundamental, curiosity-driven research, 
        fundamental research related to topics of concern to 
        the applied programs, and applications in Departmental 
        technology programs of research results generated by 
        fundamental, curiosity-driven research.
    (d) Plan Transmittal.--Not later than 12 months after the 
date of enactment of this Act, and every 4 years thereafter, 
the Secretary shall transmit to Congress the results of the 
review under subsection (a) and the coordination plan under 
subsection (b).

SEC. 995. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

    None of the funds authorized to be appropriated to the 
Secretary by this title may be used to award a management and 
operating contract for a National Laboratory (excluding those 
named in subparagraphs (G), (H), (N), and (O) of section 2 
(3)), unless such contract is competitively awarded, or the 
Secretary grants, on a case-by-case basis, a waiver. The 
Secretary may not delegate the authority to grant such a waiver 
and shall submit to Congress a report notifying it of the 
waiver, and setting forth the reasons for the waiver, at least 
60 days prior to the date of the award of such contract.

SEC. 996. WESTERN MICHIGAN DEMONSTRATION PROJECT.

    The Administrator of the Environmental Protection Agency, 
in consultation with the State of Michigan and affected local 
officials, shall conduct a demonstration project to address the 
effect of transported ozone and ozone precursors in 
Southwestern Michigan. The demonstration program shall address 
projected nonattainment areas in Southwestern Michigan that 
include counties with design values for ozone of less than .095 
based on years 2000 to 2002 or the most current 3-year period 
of air quality data. The Administrator shall assess any 
difficulties such areas may experience in meeting the 8-hour 
national ambient air quality standard for ozone due to the 
effect of transported ozone or ozone precursors into the areas. 
The Administrator shall work with State and local officials to 
determine the extent of ozone and ozone precursor transport, to 
assess alternatives to achieve compliance with the 8-hour 
standard apart from local controls, and to determine the 
timeframe in which such compliance could take place. The 
Administrator shall complete this demonstration project no 
later than 2 years after the date of enactment of this section 
and shall not impose any requirement or sanction under the 
Clean Air Act (42 U.S.C. 7401 et seq.) that might otherwise 
apply during the pendency of the demonstration project.

SEC. 997. ARCTIC ENGINEERING RESEARCH CENTER.

    (a) In General.--The Secretary of Transportation, in 
consultation with the Secretary and the United States Arctic 
Research Commission, shall provide annual grants to a 
university located adjacent to the Arctic Energy Office of the 
Department of Energy, to establish and operate a university 
research center to be headquartered in Fairbanks and to be 
known as the ``Arctic Engineering Research Center'' (referred 
to in this section as the ``Center'').
    (b) Purpose.--The purpose of the Center shall be to conduct 
research on, and develop improved methods of, construction and 
use of materials to improve the overall performance of roads, 
bridges, residential, commercial, and industrial structures, 
and other infrastructure in the Arctic region, with an emphasis 
on developing--
            (1) new construction techniques for roads, bridges, 
        rail, and related transportation infrastructure and 
        residential, commercial, and industrial infrastructure 
        that are capable of withstanding the Arctic environment 
        and using limited energy resources as efficiently as 
        practicable;
            (2) technologies and procedures for increasing 
        road, bridge, rail, and related transportation 
        infrastructure and residential, commercial, and 
        industrial infrastructure safety, reliability, and 
        integrity in the Arctic region;
            (3) new materials and improving the performance and 
        energy efficiency of existing materials for the 
        construction of roads, bridges, rail, and related 
        transportation infrastructure and residential, 
        commercial, and industrial infrastructure in the Arctic 
        region; and
            (4) recommendations for new local, regional, and 
        State permitting and building codes to ensure 
        transportation and building safety and efficient energy 
        use when constructing, using, and occupying such 
        infrastructure in the Arctic region.
    (c) Objectives.--The Center shall carry out--
            (1) basic and applied research in the subjects 
        described in subsection (b), the products of which 
        shall be judged by peers or other experts in the field 
        to advance the body of knowledge in road, bridge, rail, 
        and infrastructure engineering in the Arctic region; 
        and
            (2) an ongoing program of technology transfer that 
        makes research results available to potential users in 
        a form that can be implemented.
    (d) Amount of Grant.--For each of fiscal years 2006 through 
2011, the Secretary shall provide a grant in the amount of 
$3,000,000 to the institution specified in subsection (a) to 
carry out this section.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $3,000,000 for 
each of fiscal years 2006 through 2011.

SEC. 998. BARROW GEOPHYSICAL RESEARCH FACILITY.

    (a) Establishment.--The Secretary of Commerce, in 
consultation with the Secretaries of Energy and the Interior, 
the Director of the National Science Foundation, and the 
Administrator of the Environmental Protection Agency, shall 
establish a joint research facility in Barrow, Alaska, to be 
known as the ``Barrow Geophysical Research Facility'', to 
support scientific research activities in the Arctic.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretaries of Commerce, Energy, and 
the Interior, the Director of the National Science Foundation, 
and the Administrator of the Environmental Protection Agency 
for the planning, design, construction, and support of the 
Barrow Geophysical Research Facility, $61,000,000.

 Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other 
                          Petroleum Resources

SEC. 999A. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall carry out a program 
under this subtitle of research, development, demonstration, 
and commercial application of technologies for ultra-deepwater 
and unconventional natural gas and other petroleum resource 
exploration and production, including addressing the technology 
challenges for small producers, safe operations, and 
environmental mitigation (including reduction of greenhouse gas 
emissions and sequestration of carbon).
    (b) Program Elements.--The program under this subtitle 
shall address the following areas, including improving safety 
and minimizing environmental impacts of activities within each 
area:
            (1) Ultra-deepwater architecture and technology, 
        including drilling to formations in the Outer 
        Continental Shelf to depths greater than 15,000 feet.
            (2) Unconventional natural gas and other petroleum 
        resource exploration and production technology.
            (3) The technology challenges of small producers.
            (4) Complementary research performed by the 
        National Energy Technology Laboratory for the 
        Department.
    (c) Limitation on Location of Field Activities.--Field 
activities under the program under this subtitle shall be 
carried out only--
            (1) in--
                    (A) areas in the territorial waters of the 
                United States not under any Outer Continental 
                Shelf moratorium as of September 30, 2002;
                    (B) areas onshore in the United States on 
                public land administered by the Secretary of 
                the Interior available for oil and gas leasing, 
                where consistent with applicable law and land 
                use plans; and
                    (C) areas onshore in the United States on 
                State or private land, subject to applicable 
                law; and
            (2) with the approval of the appropriate Federal or 
        State land management agency or private land owner.
    (d) Activities at the National Energy Technology 
Laboratory.--The Secretary, through the National Energy 
Technology Laboratory, shall carry out a program of research 
and other activities complementary to and supportive of the 
research programs under subsection (b).
    (e) Consultation With Secretary of the Interior.--In 
carrying out this subtitle, the Secretary shall consult 
regularly with the Secretary of the Interior.

SEC. 999B. ULTRA-DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND 
                    OTHER PETROLEUM RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out the 
activities under section 999A, to maximize the value of natural 
gas and other petroleum resources of the United States, by 
increasing the supply of such resources, through reducing the 
cost and increasing the efficiency of exploration for and 
production of such resources, while improving safety and 
minimizing environmental impacts.
    (b) Role of the Secretary.--The Secretary shall have 
ultimate responsibility for, and oversight of, all aspects of 
the program under this section.
    (c) Role of the Program Consortium.--
            (1) In general.--The Secretary shall contract with 
        a corporation that is structured as a consortium to 
        administer the programmatic activities outlined in this 
        chapter. The program consortium shall--
                    (A) administer the program pursuant to 
                subsection (f)(3), utilizing program 
                administration funds only;
                    (B) issue research project solicitations 
                upon approval of the Secretary or the 
                Secretary's designee;
                    (C) make project awards to research 
                performers upon approval of the Secretary or 
                the Secretary's designee;
                    (D) disburse research funds to research 
                performers awarded under subsection (f) as 
                directed by the Secretary in accordance with 
                the annual plan under subsection (e); and
                    (E) carry out other activities assigned to 
                the program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as 
        specifically authorized under this section.
            (3) Conflict of interest.--
                    (A) Procedures.--The Secretary shall 
                establish procedures--
                            (i) to ensure that each board 
                        member, officer, or employee of the 
                        program consortium who is in a 
                        decisionmaking capacity under 
                        subsection (f)(3) shall disclose to the 
                        Secretary any financial interests in, 
                        or financial relationships with, 
                        applicants for or recipients of awards 
                        under this section, including those of 
                        his or her spouse or minor child, 
                        unless such relationships or interests 
                        would be considered to be remote or 
                        inconsequential; and
                            (ii) to require any board member, 
                        officer, or employee with a financial 
                        relationship or interest disclosed 
                        under clause (i) to recuse himself or 
                        herself from any oversight under 
                        subsection (f)(4) with respect to such 
                        applicant or recipient.
                    (B) Failure to comply.--The Secretary may 
                disqualify an application or revoke an award 
                under this section if a board member, officer, 
                or employee has failed to comply with 
                procedures required under subparagraph (A)(ii).
    (d) Selection of the Program Consortium.--
            (1) In general.--The Secretary shall select the 
        program consortium through an open, competitive 
        process.
            (2) Members.--The program consortium may include 
        corporations, trade associations, institutions of 
        higher education, National Laboratories, or other 
        research institutions. After submitting a proposal 
        under paragraph (4), the program consortium may not add 
        members without the consent of the Secretary.
            (3) Requirement of section 501(c)(3) status.--The 
        Secretary shall not select a consortium under this 
        section unless such consortium is an organization 
        described in section 501(c)(3) of the Internal Revenue 
        Code of 1986 and exempt from tax under such section 
        501(a) of such Code.
            (4) Schedule.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        solicit proposals from eligible consortia to perform 
        the duties in subsection (c)(1), which shall be 
        submitted not later than 180 days after the date of 
        enactment of this Act. The Secretary shall select the 
        program consortium not later than 270 days after such 
        date of enactment.
            (5) Application.--Applicants shall submit a 
        proposal including such information as the Secretary 
        may require. At a minimum, each proposal shall--
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the 
                consortium, including any provisions relating 
                to intellectual property; and
                    (C) describe how the applicant would carry 
                out the activities of the program consortium 
                under this section.
            (6) Eligibility.--To be eligible to be selected as 
        the program consortium, an applicant must be an entity 
        whose members have collectively demonstrated 
        capabilities and experience in planning and managing 
        research, development, demonstration, and commercial 
        application programs for ultra-deepwater and 
        unconventional natural gas or other petroleum 
        exploration or production.
            (7) Focus areas for awards.--
                    (A) Ultra-deepwater resources.--Awards from 
                allocations under section 999H(d)(1) shall 
                focus on the development and demonstration of 
                individual exploration and production 
                technologies as well as integrated systems 
                technologies including new architectures for 
                production in ultra-deepwater.
                    (B) Unconventional resources.--Awards from 
                allocations under section 999H(d)(2) shall 
                focus on areas including advanced coalbed 
                methane, deep drilling, natural gas production 
                from tight sands, natural gas production from 
                gas shales, stranded gas, innovative 
                exploration and production techniques, enhanced 
                recovery techniques, and environmental 
                mitigation of unconventional natural gas and 
                other petroleum resources exploration and 
                production.
                    (C) Small producers.--Awards from 
                allocations under section 999H(d)(3) shall be 
                made to consortia consisting of small producers 
                or organized primarily for the benefit of small 
                producers, and shall focus on areas including 
                complex geology involving rapid changes in the 
                type and quality of the oil and gas reservoirs 
                across the reservoir; low reservoir pressure; 
                unconventional natural gas reservoirs in 
                coalbeds, deep reservoirs, tight sands, or 
                shales; and unconventional oil reservoirs in 
                tar sands and oil shales.
    (e) Annual Plan.--
            (1) In general.--The program under this section 
        shall be carried out pursuant to an annual plan 
        prepared by the Secretary in accordance with paragraph 
        (2).
            (2) Development.--
                    (A) Solicitation of recommendations.--
                Before drafting an annual plan under this 
                subsection, the Secretary shall solicit 
                specific written recommendations from the 
                program consortium for each element to be 
                addressed in the plan, including those 
                described in paragraph (4). The program 
                consortium shall submit its recommendations in 
                the form of a draft annual plan.
                    (B) Submission of recommendations; other 
                comment.--The Secretary shall submit the 
                recommendations of the program consortium under 
                subparagraph (A) to the Ultra-Deepwater 
                Advisory Committee established under section 
                999D(a) and to the Unconventional Resources 
                Technology Advisory Committee established under 
                section 999D(b), and such Advisory Committees 
                shall provide to the Secretary written comments 
                by a date determined by the Secretary. The 
                Secretary may also solicit comments from any 
                other experts.
                    (C) Consultation.--The Secretary shall 
                consult regularly with the program consortium 
                throughout the preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to 
        Congress and publish in the Federal Register the annual 
        plan, along with any written comments received under 
        paragraph (2)(A) and (B).
            (4) Contents.--The annual plan shall describe the 
        ongoing and prospective activities of the program under 
        this section and shall include--
                    (A) a list of any solicitations for awards 
                to carry out research, development, 
                demonstration, or commercial application 
                activities, including the topics for such work, 
                who would be eligible to apply, selection 
                criteria, and the duration of awards; and
                    (B) a description of the activities 
                expected of the program consortium to carry out 
                subsection (f)(3).
            (5) Estimates of increased royalty receipts.--The 
        Secretary, in consultation with the Secretary of the 
        Interior, shall provide an annual report to Congress 
        with the President's budget on the estimated cumulative 
        increase in Federal royalty receipts (if any) resulting 
        from the implementation of this subtitle. The initial 
        report under this paragraph shall be submitted in the 
        first President's budget following the completion of 
        the first annual plan required under this subsection.
    (f) Awards.--
            (1) In general.--Upon approval of the Secretary the 
        program consortium shall make awards to research 
        performers to carry out research, development, 
        demonstration, and commercial application activities 
        under the program under this section. The program 
        consortium shall not be eligible to receive such 
        awards, but provided that conflict of interest 
        procedures in section 999B(c)(3) are followed, entities 
        who are members of the program consortium are not 
        precluded from receiving research awards as either 
        individual research performers or as research 
        performers who are members of a research collaboration.
            (2) Proposals.--Upon approval of the Secretary the 
        program consortium shall solicit proposals for awards 
        under this subsection in such manner and at such time 
        as the Secretary may prescribe, in consultation with 
        the program consortium.
            (3) Oversight.--
                    (A) In general.--The program consortium 
                shall oversee the implementation of awards 
                under this subsection, consistent with the 
                annual plan under subsection (e), including 
                disbursing funds and monitoring activities 
                carried out under such awards for compliance 
                with the terms and conditions of the awards.
                    (B) Effect.--Nothing in subparagraph (A) 
                shall limit the authority or responsibility of 
                the Secretary to oversee awards, or limit the 
                authority of the Secretary to review or revoke 
                awards.
    (g) Administrative Costs.--
            (1) In general.--To compensate the program 
        consortium for carrying out its activities under this 
        section, the Secretary shall provide to the program 
        consortium funds sufficient to administer the program. 
        This compensation may include a management fee 
        consistent with Department of Energy contracting 
        practices and procedures.
            (2) Advance.--The Secretary shall advance funds to 
        the program consortium upon selection of the 
        consortium, which shall be deducted from amounts to be 
        provided under paragraph (1).
    (h) Audit.--The Secretary shall retain an independent 
auditor, which shall include a review by the General 
Accountability Office, to determine the extent to which funds 
provided to the program consortium, and funds provided under 
awards made under subsection (f), have been expended in a 
manner consistent with the purposes and requirements of this 
subtitle. The auditor shall transmit a report (including any 
review by the General Accountability Office) annually to the 
Secretary, who shall transmit the report to Congress, along 
with a plan to remedy any deficiencies cited in the report.
    (i) Activities by the United States Geological Survey.--The 
Secretary of the Interior, through the United States Geological 
Survey, shall, where appropriate, carry out programs of long-
term research to complement the programs under this section.
    (j) Program Review and Oversight.--The National Energy 
Technology Laboratory, on behalf of the Secretary, shall (1) 
issue a competitive solicitation for the program consortium, 
(2) evaluate, select, and award a contract or other agreement 
to a qualified program consortium, and (3) have primary review 
and oversight responsibility for the program consortium, 
including review and approval of research awards proposed to be 
made by the program consortium, to ensure that its activities 
are consistent with the purposes and requirements described in 
this subtitle. Up to 5 percent of program funds allocated under 
paragraphs (1) through (3) of section 999H(d) may be used for 
this purpose, including program direction and the establishment 
of a site office if determined to be necessary to carry out the 
purposes of this subsection.

SEC. 999C. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) Demonstration Projects.--An application for an award 
under this subtitle for a demonstration project shall describe 
with specificity the intended commercial use of the technology 
to be demonstrated.
    (b) Flexibility in Locating Demonstration Projects.--
Subject to the limitation in section 999A(c), a demonstration 
project under this subtitle relating to an ultra-deepwater 
technology or an ultra-deepwater architecture may be conducted 
in deepwater depths.
    (c) Intellectual Property Agreements.--If an award under 
this subtitle is made to a consortium (other than the program 
consortium), the consortium shall provide to the Secretary a 
signed contract agreed to by all members of the consortium 
describing the rights of each member to intellectual property 
used or developed under the award.
    (d) Technology Transfer.--2.5 percent of the amount of each 
award made under this subtitle shall be designated for 
technology transfer and outreach activities under this 
subtitle.
    (e) Cost Sharing Reduction for Independent Producers.--In 
applying the cost sharing requirements under section 988 to an 
award under this subtitle the Secretary may reduce or eliminate 
the non-Federal requirement if the Secretary determines that 
the reduction is necessary and appropriate considering the 
technological risks involved in the project.
    (f) Information Sharing.--All results of the research 
administered by the program consortium shall be made available 
to the public consistent with Department policy and practice on 
information sharing and intellectual property agreements.

SEC. 999D. ADVISORY COMMITTEES.

    (a) Ultra-Deepwater Advisory Committee.--
            (1) Establishment.--Not later than 270 days after 
        the date of enactment of this Act, the Secretary shall 
        establish an advisory committee to be known as the 
        Ultra-Deepwater Advisory Committee.
            (2) Membership.--The Advisory Committee under this 
        subsection shall be composed of members appointed by 
        the Secretary, including--
                    (A) individuals with extensive research 
                experience or operational knowledge of offshore 
                natural gas and other petroleum exploration and 
                production;
                    (B) individuals broadly representative of 
                the affected interests in ultra-deepwater 
                natural gas and other petroleum production, 
                including interests in environmental protection 
                and safe operations;
                    (C) no individuals who are Federal 
                employees; and
                    (D) no individuals who are board members, 
                officers, or employees of the program 
                consortium.
            (3) Duties.--The Advisory Committee under this 
        subsection shall--
                    (A) advise the Secretary on the development 
                and implementation of programs under this 
                subtitle related to ultra-deepwater natural gas 
                and other petroleum resources; and
                    (B) carry out section 999B(e)(2)(B).
            (4) Compensation.--A member of the Advisory 
        Committee under this subsection shall serve without 
        compensation but shall receive travel expenses in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
    (b) Unconventional Resources Technology Advisory 
Committee.--
            (1) Establishment.--Not later than 270 days after 
        the date of enactment of this Act, the Secretary shall 
        establish an advisory committee to be known as the 
        Unconventional Resources Technology Advisory Committee.
            (2) Membership.--The Secretary shall endeavor to 
        have a balanced representation of members on the 
        Advisory Committee to reflect the breadth of geographic 
        areas of potential gas supply. The Advisory Committee 
        under this subsection shall be composed of members 
        appointed by the Secretary, including--
                    (A) a majority of members who are employees 
                or representatives of independent producers of 
                natural gas and other petroleum, including 
                small producers;
                    (B) individuals with extensive research 
                experience or operational knowledge of 
                unconventional natural gas and other petroleum 
                resource exploration and production;
                    (C) individuals broadly representative of 
                the affected interests in unconventional 
                natural gas and other petroleum resource 
                exploration and production, including interests 
                in environmental protection and safe 
                operations;
                    (D) individuals with expertise in the 
                various geographic areas of potential supply of 
                unconventional onshore natural gas and other 
                petroleum in the United States;
                    (E) no individuals who are Federal 
                employees; and
                    (F) no individuals who are board members, 
                officers, or employees of the program 
                consortium.
            (3) Duties.--The Advisory Committee under this 
        subsection shall--
                    (A) advise the Secretary on the development 
                and implementation of activities under this 
                subtitle related to unconventional natural gas 
                and other petroleum resources; and
                    (B) carry out section 999B(e)(2)(B).
            (4) Compensation.--A member of the Advisory 
        Committee under this subsection shall serve without 
        compensation but shall receive travel expenses in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
    (c) Prohibition.--No advisory committee established under 
this section shall make recommendations on funding awards to 
particular consortia or other entities, or for specific 
projects.

SEC. 999E. LIMITS ON PARTICIPATION.

    An entity shall be eligible to receive an award under this 
subtitle only if the Secretary finds--
            (1) that the entity's participation in the program 
        under this subtitle would be in the economic interest 
        of the United States; and
            (2) that either--
                    (A) the entity is a United States-owned 
                entity organized under the laws of the United 
                States; or
                    (B) the entity is organized under the laws 
                of the United States and has a parent entity 
                organized under the laws of a country that 
                affords--
                            (i) to United States-owned entities 
                        opportunities, comparable to those 
                        afforded to any other entity, to 
                        participate in any cooperative research 
                        venture similar to those authorized 
                        under this subtitle;
                            (ii) to United States-owned 
                        entities local investment opportunities 
                        comparable to those afforded to any 
                        other entity; and
                            (iii) adequate and effective 
                        protection for the intellectual 
                        property rights of United States-owned 
                        entities.

SEC. 999F. SUNSET.

    The authority provided by this subtitle shall terminate on 
September 30, 2014.

SEC. 999G. DEFINITIONS.

    In this subtitle:
            (1) Deepwater.--The term ``deepwater'' means a 
        water depth that is greater than 200 but less than 
        1,500 meters.
            (2) Independent producer of oil or gas.--
                    (A) In general.--The term ``independent 
                producer of oil or gas'' means any person that 
                produces oil or gas other than a person to whom 
                subsection (c) of section 613A of the Internal 
                Revenue Code of 1986 does not apply by reason 
                of paragraph (2) (relating to certain 
                retailers) or paragraph (4) (relating to 
                certain refiners) of section 613A(d) of such 
                Code.
                    (B) Rules for applying paragraphs (2) and 
                (4) of section 613a(d).--For purposes of 
                subparagraph (A), paragraphs (2) and (4) of 
                section 613A(d) of the Internal Revenue Code of 
                1986 shall be applied by substituting 
                ``calendar year'' for ``taxable year'' each 
                place it appears in such paragraphs.
            (3) Program administration funds.--The term 
        ``program administration funds'' means funds used by 
        the program consortium to administer the program under 
        this subtitle, but not to exceed 10 percent of the 
        total funds allocated under paragraphs (1) through (3) 
        of section 999H(d).
            (4) Program consortium.--The term ``program 
        consortium'' means the consortium selected under 
        section 999B(d).
            (5) Program research funds.--The term ``program 
        research funds'' means funds awarded to research 
        performers by the program consortium consistent with 
        the annual plan.
            (6) Remote or inconsequential.--The term ``remote 
        or inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics 
        under section 208(b)(2) of title 18, United States 
        Code.
            (7) Small producer.--The term ``small producer'' 
        means an entity organized under the laws of the United 
        States with production levels of less than 1,000 
        barrels per day of oil equivalent.
            (8) Ultra-deepwater.--The term ``ultra-deepwater'' 
        means a water depth that is equal to or greater than 
        1,500 meters.
            (9) Ultra-deepwater architecture.--The term 
        ``ultra-deepwater architecture'' means the integration 
        of technologies for the exploration for, or production 
        of, natural gas or other petroleum resources located at 
        ultra-deepwater depths.
            (10) Ultra-deepwater technology.--The term ``ultra-
        deepwater technology'' means a discrete technology that 
        is specially suited to address 1 or more challenges 
        associated with the exploration for, or production of, 
        natural gas or other petroleum resources located at 
        ultra-deepwater depths.
            (11) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and 
        other petroleum resource'' means natural gas and other 
        petroleum resource located onshore in an economically 
        inaccessible geological formation, including resources 
        of small producers.

SEC. 999H. FUNDING.

    (a) Oil and Gas Lease Income.--For each of fiscal years 
2007 through 2017, from any Federal royalties, rents, and 
bonuses derived from Federal onshore and offshore oil and gas 
leases issued under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181 
et seq.) which are deposited in the Treasury, and after 
distribution of any such funds as described in subsection (c), 
$50,000,000 shall be deposited into the Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Research Fund 
(in this section referred to as the ``Fund''). For purposes of 
this section, the term ``royalties'' excludes proceeds from the 
sale of royalty production taken in kind and royalty production 
that is transferred under section 27(a)(3) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
    (b) Obligational Authority.--Monies in the Fund shall be 
available to the Secretary for obligation under this part 
without fiscal year limitation, to remain available until 
expended.
    (c) Prior Distributions.--The distributions described in 
subsection (a) are those required by law--
            (1) to States and to the Reclamation Fund under the 
        Mineral Leasing Act (30 U.S.C. 191(a)); and
            (2) to other funds receiving monies from Federal 
        oil and gas leasing programs, including--
                    (A) any recipients pursuant to section 8(g) 
                of the Outer Continental Shelf Lands Act (43 
                U.S.C. 1337(g));
                    (B) the Land and Water Conservation Fund, 
                pursuant to section 2(c) of the Land and Water 
                Conservation Fund Act of 1965 (16 U.S.C. 4601-
                5(c));
                    (C) the Historic Preservation Fund, 
                pursuant to section 108 of the National 
                Historic Preservation Act (16 U.S.C. 470h); and
                    (D) the coastal impact assistance program 
                established under section 31 of the Outer 
                Continental Shelf Lands Act (as amended by 
                section 384).
    (d) Allocation.--Amounts obligated from the Fund under 
subsection (a)(1) in each fiscal year shall be allocated as 
follows:
            (1) 35 percent shall be for activities under 
        section 999A(b)(1).
            (2) 32.5 percent shall be for activities under 
        section 999A(b)(2).
            (3) 7.5 percent shall be for activities under 
        section 999A(b)(3).
            (4) 25 percent shall be for complementary research 
        under section 999A(b)(4) and other activities under 
        section 999A(b) to include program direction funds, 
        overall program oversight, contract management, and the 
        establishment and operation of a technical committee to 
        ensure that in-house research activities funded under 
        section 999A(b)(4) are technically complementary to, 
        and not duplicative of, research conducted under 
        paragraphs (1), (2), and (3) of section 999A(b).
    (e) Authorization of Appropriations.--In addition to other 
amounts that are made available to carry out this section, 
there is authorized to be appropriated to carry out this 
section $100,000,000 for each of fiscal years 2007 through 
2016.
    (f) Fund.--There is hereby established in the Treasury of 
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum 
Research Fund''.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 1001. IMPROVED TECHNOLOGY TRANSFER OF ENERGY TECHNOLOGIES.

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

SEC. 1002. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Definitions.--In this section:
            (1) Program.--The term ``Program'' means the 
        Technology Infrastructure Program established under 
        subsection (b).
            (2) Technology cluster.--The term ``technology 
        cluster'' means a concentration of technology-related 
        business concerns, institutions of higher education, or 
        nonprofit institutions, that reinforce each other's 
        performance in the areas of technology development 
        through formal or informal relationships.
            (3) Technology-related business concern.--The term 
        ``technology-related business concern'' means a for-
        profit corporation, company, association, firm, 
        partnership, or small business concern that--
                    (A) conducts scientific or engineering 
                research;
                    (B) develops new technologies;
                    (C) manufactures products based on new 
                technologies; or
                    (D) performs technological services.
    (b) Establishment.--The Secretary shall establish a 
Technology Infrastructure Program in accordance with this 
section.
    (c) Purpose.--The purpose of the Program shall be to 
improve the ability of National Laboratories and single-purpose 
research facilities to support departmental missions by--
            (1) stimulating the development of technology 
        clusters that can support departmental missions at the 
        National Laboratories or single-purpose research 
        facilities;
            (2) improving the ability of National Laboratories 
        and single-purpose research facilities to leverage and 
        benefit from commercial research, technology, products, 
        processes, and services; and
            (3) encouraging the exchange of scientific and 
        technological expertise between--
                    (A) National Laboratories or single-purpose 
                research facilities; and
                    (B) entities that can support departmental 
                missions at the National Laboratories or 
                single-purpose research facilities, such as--
                            (i) institutions of higher 
                        education;
                            (ii) technology-related business 
                        concerns;
                            (iii) nonprofit institutions; and
                            (iv) agencies of State, tribal, or 
                        local governments.
    (d) Projects.--The Secretary shall authorize the director 
of each National Laboratory or single-purpose research facility 
to implement the Program at the National Laboratory or facility 
through 1 or more projects that meet the requirements of 
subsections (e) and (f).
    (e) Program Requirements.--
            (1) In general.--Each project funded under this 
        section shall meet the requirements of this subsection.
            (2) Entities.--Each project shall include at least 
        1 of each of the following entities:
                    (A) A business.
                    (B) An institution of higher education.
                    (C) A nonprofit institution.
                    (D) An agency of a State, local, or tribal 
                government.
            (3) Cost-sharing.--
                    (A) In general.--The costs of carrying out 
                projects under this section shall be shared in 
                accordance with section 988.
                    (B) Sources.--The calculation of costs paid 
                by the non-Federal sources for a project shall 
                include cash, personnel, services, equipment, 
                and other resources expended on the project 
                after the commencement of the project.
                    (C) Research and development expenses.--
                Independent research and development expenses 
                of Government contractors that qualify for 
                reimbursement under section 31.205-18(e) of 
                title 48, Code of Federal Regulations, issued 
                pursuant to section 25(c)(1) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 
                421(c)(1)), may be credited towards costs paid 
                by non-Federal sources to a project, if the 
                expenses meet the other requirements of this 
                section.
            (4) Competitive selection.--A project under this 
        section shall be competitively selected using 
        procedures determined by the Secretary.
            (5) Accounting.--Any participant that receives 
        funds under this section may use generally accepted 
        accounting principles for maintaining accounts, books, 
        and records relating to the project.
            (6) Duration.--No Federal funds shall be made 
        available under this section for a construction project 
        or for any project with a duration of more than 5 
        years.
    (f) Selection Criteria.--
            (1) Departmental missions.--The Secretary shall 
        allocate funds under this section only if the Director 
        of the National Laboratory or single-purpose research 
        facility managing the project determines that the 
        project is likely to improve the ability of the 
        National Laboratory or single-purpose research facility 
        to achieve technical success in meeting departmental 
        missions.
            (2) Other criteria.--In selecting a project to 
        receive Federal funds, the Secretary shall consider--
                    (A) the potential of the project to promote 
                the development of a commercially sustainable 
                technology cluster following the period of 
                investment by the Department, which will derive 
                most of the demand for its products or services 
                from the private sector, and which will support 
                departmental missions at the participating 
                National Laboratory or single-purpose research 
                facility;
                    (B) the potential of the project to promote 
                the use of commercial research, technology, 
                products, processes, and services by the 
                participating National Laboratory or single-
                purpose research facility to achieve its 
                mission or the commercial development of 
                technological innovations made at the 
                participating National Laboratory or single-
                purpose research facility;
                    (C) the extent to which the project 
                involves a wide variety and number of 
                institutions of higher education, nonprofit 
                institutions, and technology-related business 
                concerns that can support the missions of the 
                participating National Laboratory or single-
                purpose research facility and that will make 
                substantive contributions to achieving the 
                goals of the project;
                    (D) the extent to which the project focuses 
                on promoting the development of technology-
                related business concerns that are small 
                businesses or involves such small businesses 
                substantively in the project; and
                    (E) such other criteria as the Secretary 
                determines to be appropriate.
    (g) Allocation.--In allocating funds for projects approved 
under this section, the Secretary shall provide--
            (1) the Federal share of the project costs; and
            (2) additional funds to the National Laboratory or 
        single-purpose research facility managing the project 
        to permit the National Laboratory or single-purpose 
        research facility to carry out activities relating to 
        the project, and to coordinate the activities with the 
        project.
    (h) Report to Congress.--Not later than July 1, 2008, the 
Secretary shall submit to Congress a report on whether the 
Program should be continued and, if so, how the program should 
be managed.
    (i) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for activities under this 
section $10,000,000 for each of fiscal years 2006 through 2008.

SEC. 1003. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

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

SEC. 1004. OUTREACH.

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

SEC. 1005. RELATIONSHIP TO OTHER LAWS.

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

SEC. 1006. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
                    TECHNOLOGY PROGRAMS.

    (a) Effective Top-Level Coordination of Research and 
Development Programs.--Section 202 of the Department of Energy 
Organization Act (42 U.S.C. 7132) is amended by striking 
subsection (b) and inserting the following:
    ``(b)(1) There shall be in the Department an Under 
Secretary for Science, who shall be appointed by the President, 
by and with the advice and consent of the Senate.
    ``(2) The Under Secretary shall be compensated at the rate 
provided for level III of the Executive Schedule under section 
5314 of title 5, United States Code.
    ``(3) The Under Secretary for Science shall be appointed 
from among persons who--
            ``(A) have extensive background in scientific or 
        engineering fields; and
            ``(B) are well qualified to manage the civilian 
        research and development programs of the Department.
    ``(4) The Under Secretary for Science shall--
            ``(A) serve as the Science and Technology Advisor 
        to the Secretary;
            ``(B) monitor the research and development programs 
        of the Department in order to advise the Secretary with 
        respect to any undesirable duplication or gaps in the 
        programs;
            ``(C) advise the Secretary with respect to the 
        well-being and management of the multipurpose 
        laboratories under the jurisdiction of the Department;
            ``(D) advise the Secretary with respect to 
        education and training activities required for 
        effective short- and long-term basic and applied 
        research activities of the Department;
            ``(E) advise the Secretary with respect to grants 
        and other forms of financial assistance required for 
        effective short- and long-term basic and applied 
        research activities of the Department;
            ``(F) advise the Secretary with respect to long-
        term planning, coordination, and development of a 
        strategic framework for Department research and 
        development activities; and
            ``(G) carry out such additional duties assigned to 
        the Under Secretary by the Secretary relating to basic 
        and applied research, including supervision or support 
        of research activities carried out by any of the 
        Assistant Secretaries designated by section 203 of this 
        Act, as the Secretary considers advantageous.''.
    (b) Additional Assistant Secretary Position.--
            (1) In general.--Section 203(a) of the Department 
        of Energy Organization Act (42 U.S.C. 7133(a)) is 
        amended in the first sentence by striking ``six 
        Assistant Secretaries'' and inserting ``7 Assistant 
        Secretaries''.
            (2) Assistant secretary level.--It is the sense of 
        Congress that the leadership for departmental missions 
        in nuclear energy should be at the Assistant Secretary 
        level.
    (c) Technical and Conforming Amendments.--
            (1) Section 202 of the Department of Energy 
        Organization Act (42 U.S.C. 7132) is amended by adding 
        at the end the following:
    ``(d)(1) There shall be in the Department an Under 
Secretary, who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall perform 
such functions and duties as the Secretary shall prescribe, 
consistent with this section.
    ``(2) The Under Secretary shall be compensated at the rate 
provided for level III of the Executive Schedule under section 
5314 of title 5, United States Code.
    ``(e)(1) There shall be in the Department a General 
Counsel, who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall perform 
such functions and duties as the Secretary shall prescribe.
    ``(2) The General Counsel shall be compensated at the rate 
provided for level IV of the Executive Schedule under section 
5315 of title 5, United States Code.''.
            (2) Section 5314 of title 5, United States Code, is 
        amended by striking ``Under Secretaries of Energy (2)'' 
        and inserting ``Under Secretaries of Energy (3)''.
            (3) Section 5315 of title 5, United States Code, is 
        amended by striking ``Assistant Secretaries of Energy 
        (6)'' and inserting ``Assistant Secretaries of Energy 
        (7)''.
            (4) Section 209(b) of the Department of Energy 
        Organization Act (42 U.S.C. 7139(b)) is amended by 
        striking paragraph (6) and inserting the following:
            ``(6) to carry out such additional duties assigned 
        to the Office by the Secretary.''.

SEC. 1007. OTHER TRANSACTIONS AUTHORITY.

    Section 646 of the Department of Energy Organization Act 
(42 U.S.C. 7256) is amended by adding at the end the following:
    ``(g)(1) In addition to authority granted to the Secretary 
under any other provision of law, the Secretary may exercise 
the same authority to enter into transactions (other than 
contracts, cooperative agreements, and grants), subject to the 
same terms and conditions as the Secretary of Defense under 
section 2371 of title 10, United States Code (other than 
subsections (b) and (f) of that section).
    ``(2) In applying section 2371 of title 10, United States 
Code, to the Secretary under paragraph (1)--
            ``(A) the term `basic' shall be replaced by the 
        term `research';
            ``(B) the term `applied' shall be replaced by the 
        term `development'; and
            ``(C) the terms `advanced research projects' and 
        `advanced research' shall be replaced by the term 
        `demonstration projects'.
    ``(3) The authority of the Secretary under paragraph (1) 
shall not be subject to--
            ``(A) section 9 of the Federal Nonnuclear Energy 
        Research and Development Act of 1974 (42 U.S.C. 5908); 
        or
            ``(B) section 152 of the Atomic Energy Act of 1954 
        (42 U.S.C. 2182).
    ``(4)(A) The Secretary shall use such competitive, merit-
based selection procedures in entering into transactions under 
paragraph (1), as the Secretary determines in writing to be 
practicable.
    ``(B) A transaction under paragraph (1) shall relate to a 
research, development, or demonstration project only if the 
Secretary determines in writing that the use of a standard 
contract, grant, or cooperative agreement for the project is 
not feasible or appropriate.
    ``(5) The Secretary may protect from disclosure, for up to 
5 years after the date on which the information is developed, 
any information developed pursuant to a transaction under 
paragraph (1) that would be protected from disclosure under 
section 552(b)(4) of title 5, United States Code, if obtained 
from a person other than a Federal agency.
    ``(6)(A) Not later than 90 days after the date of enactment 
of this subsection, the Secretary shall issue guidelines for 
transactions under paragraph (1).
    ``(B) The guidelines shall be published in the Federal 
Register for public comment in accordance with rulemaking 
procedures of the Department.
    ``(C) The Secretary shall not have authority to carry out 
transactions under paragraph (1) until the guidelines for 
transactions required under subparagraph (A) are final.
    ``(7) The annual report of the head of an executive agency 
under section 2371(h) of title 10, United States Code, shall be 
submitted to Congress.
    ``(8)(A) In this paragraph, the term `nontraditional 
Government contractor' has the meaning given the term 
`nontraditional defense contractor' in section 845(f) of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160; 10 U.S.C. 2371 note).
    ``(B) Not later than 1 year after the date on which the 
final guidelines are published under paragraph (6), the 
Comptroller General of the United States shall submit to 
Congress a report describing--
            ``(i) the use by the Department of authorities 
        under this section, including the ability to attract 
        nontraditional Government contractors; and
            ``(ii) whether additional safeguards are necessary 
        to carry out the authorities.
    ``(9) The authority of the Secretary under this subsection 
may be delegated only to an officer of the Department who is 
appointed by the President by and with the advice and consent 
of the Senate.
    ``(10) Notwithstanding any other provision of law, the 
authority to enter into transactions under paragraph (1) shall 
terminate on September 30, 2010.''.

SEC. 1008. PRIZES FOR ACHIEVEMENT IN GRAND CHALLENGES OF SCIENCE AND 
                    TECHNOLOGY.

    (a) Authority.--The Secretary may carry out a program to 
award cash prizes in recognition of breakthrough achievements 
in research, development, demonstration, and commercial 
application that have the potential for application to the 
performance of the mission of the Department.
    (b) Competition Requirements.--The program under subsection 
(a) may include prizes for the achievement of goals articulated 
by the Secretary in a specific area through a widely advertised 
solicitation of submission of results for research, 
development, demonstration, or commercial application projects.
    (c) Prizes for Processes and Technologies To Reduce 
Dependence on Imported Oil.--The Secretary, in cooperation with 
the Freedom Prize Foundation, shall support a program of 
awarding prizes, to be known as Freedom Prizes, to encourage 
and recognize the development and deployment of processes and 
technologies that serve to reduce the dependence of the United 
States on imported oil.
    (d) Relationship to Other Authority.--The program under 
subsection (a) may be carried out in conjunction with or in 
addition to the exercise of any other authority of the 
Secretary to acquire, support, or stimulate research, 
development, demonstration, or commercial application projects.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated--
            (1) $10,000,000 to carry out the program under 
        subsection (a); and
            (2) $5,000,000 to carry out the program under 
        subsection (c).

SEC. 1009. TECHNICAL CORRECTIONS.

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

                     ``SHORT TITLE AND DEFINITIONS

    ``Sec. 1. (a) This Act may be cited as the `Federal 
Nonnuclear Energy Research and Development Act of 1974''.
    ``(b) In this Act:
            ``(1) The term `Department' means the Department of 
        Energy.
            ``(2) The term `Secretary' means the Secretary of 
        Energy.''.
            (2) Statement of policy.--Section 3(b) of the 
        Federal Nonnuclear Energy Research and Development Act 
        of 1974 (42 U.S.C. 5902(b)) is amended--
                    (A) in paragraph (1), by striking ``Energy 
                Research and Development Administration'' and 
                inserting ``Department'';
                    (B) in paragraph (2), by striking 
                ``Administrator of the Energy Research and 
                Development Administration (hereinafter in this 
                Act referred to as the `Administrator')'' and 
                inserting ``Secretary''; and
                    (C) in paragraph (3)--
                            (i) by striking ``Administrator'' 
                        and inserting ``Secretary''; and
                            (ii) by inserting ``Demonstration'' 
                        after ``Cooling''.
            (3) Duties and authorities.--Section 4 of the 
        Federal Nonnuclear Energy Research and Development Act 
        of 1974 (42 U.S.C. 5903) is amended--
                    (A) by striking the section heading and 
                inserting the following: ``duties and 
                authorities of the secretary''; and
                    (B) in the matter preceding subsection (a), 
                by striking ``Administrator'' and inserting 
                ``Secretary''.
            (4) Comprehensive planning and programming.--
        Section 6 of the Federal Nonnuclear Energy Research and 
        Development Act of 1974 (42 U.S.C. 5905) is amended--
                    (A) by striking ``Administrator'' each 
                place it appears and inserting ``Secretary''; 
                and
                    (B) in subsection (b)(3)--
                            (i) in subparagraph (I), by 
                        inserting ``Demonstration'' after 
                        ``Cooling''; and
                            (ii) in subparagraph (L), by 
                        inserting ``Energy'' after ``Solar''.
            (5) Forms of federal assistance.--Section 7 of the 
        Federal Nonnuclear Energy Research and Development Act 
        of 1974 (42 U.S.C. 5906) is amended--
                    (A) by striking ``Administrator'' each 
                place it appears and inserting ``Secretary''; 
                and
                    (B) in subsection (a)(4), by striking ``of 
                the section''.
            (6) Demonstrations.--Section 8 of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 
        (42 U.S.C. 5907) is amended--
                    (A) in subsections (a) through (c), by 
                striking ``Administrator'' each place it 
                appears and inserting ``Secretary'';
                    (B) in subsection (d)--
                            (i) in the first sentence of 
                        paragraph (1), by inserting ``of the 
                        Energy Research and Development 
                        Administration'' after 
                        ``Administrator''; and
                            (ii) in paragraph (3), by striking 
                        ``Administrator'' and inserting 
                        ``Secretary''; and
                    (C) in subsection (f)--
                            (i) by striking ``Administrator'' 
                        each place it appears and inserting 
                        ``Secretary''; and
                            (ii) in the proviso of the first 
                        sentence, by striking 
                        ``Administrator's'' and inserting 
                        ``Secretary's''.
            (7) Patent policy.--Section 9 of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 
        (42 U.S.C. 5908) is amended--
                    (A) by striking ``Administration'' each 
                place it appears and inserting ``Department'';
                    (B) by striking ``Administrator'' each 
                place it appears and inserting ``Secretary''; 
                and
                    (C) in subsection (c)(3), by striking 
                ``Administration's'' and inserting 
                ``Department's''.
            (8) Acquisition of essential materials.--Section 12 
        of the Federal Nonnuclear Energy Research and 
        Development Act of 1974 (42 U.S.C. 5911) is amended by 
        striking subsection (b) and inserting the following:
    ``(b) A rule or order under subsection (a) shall be 
considered to be a major rule subject to chapter 8 of title 5, 
United States Code.''.
            (9) Water resource evaluation.--Section 13 of the 
        Federal Nonnuclear Energy Research and Development Act 
        of 1974 (42 U.S.C. 5912) is amended by striking 
        ``Administrator'' each place it appears and inserting 
        ``Secretary''.
            (10) Authorization of appropriations.--Section 16 
        of the Federal Nonnuclear Energy Research and 
        Development Act of 1974 (42 U.S.C. 5915) is amended--
                    (A) by striking the section heading and 
                inserting the following: ``authorization of 
                appropriations'';
                    (B) by striking ``(a) There may be 
                appropriated to the Administrator'' and 
                inserting ``There may be appropriated to the 
                Secretary''; and
                    (C) by striking subsections (b) and (c).
            (11) Central source of nonnuclear energy 
        information.--Section 17 of the Federal Nonnuclear 
        Energy Research and Development Act of 1974 (42 U.S.C. 
        5916) is amended--
                    (A) by striking ``Administrator'' each 
                place it appears and inserting ``Secretary'';
                    (B) in the first sentence, by striking 
                ``Administrator's'';
                    (C) in the second sentence, by striking 
                ``he'' and inserting ``the Secretary'';
                    (D) in the third sentence--
                            (i) in paragraph (2) of the first 
                        proviso, by striking ``section 1905 or 
                        title 18'' and inserting ``section 1905 
                        of title 18''; and
                            (ii) in subparagraph (B) of the 
                        second proviso--
                                    (I) by striking ``the 
                                Federal Energy 
                                Administration,'';
                                    (II) by striking ``the 
                                Federal Power Commission,'' and 
                                inserting ``the Federal Energy 
                                Regulatory Commission''; and
                                    (III) by striking ``General 
                                Accounting Office'' and 
                                inserting ``Government 
                                Accountability Office''; and
                    (E) in the last sentence, by inserting ``or 
                ranking minority member'' after ``chairman''.
            (12) Energy information, loan guarantees, and 
        financial support.--Sections 18 through 20 of the 
        Federal Nonnuclear Energy Research and Development Act 
        of 1974 (42 U.S.C. 5917 through 5920) are repealed.
    (c) Stevenson-Wydler Technology Innovation Act of 1980.--
Section 20 of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3712) is amended by striking ``and the National 
Science Foundation'' and inserting ``, the Secretary of Energy, 
and the Director of the National Science Foundation''.

SEC. 1010. UNIVERSITY COLLABORATION.

    Not later than 2 years after the date of enactment of this 
Act, the Secretary shall transmit to the Congress a report that 
examines the feasibility of promoting collaborations between 
major universities and other colleges and universities in 
grants, contracts, and cooperative agreements made by the 
Secretary for energy projects. For purposes of this section, 
major universities are schools listed by the Carnegie 
Foundation as Doctoral Research Extensive Universities. The 
Secretary shall also consider providing incentives to increase 
the inclusion of small institutions of higher education, 
including minority-serving institutions, in energy grants, 
contracts, and cooperative agreements.

SEC. 1011. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the Secretary should develop and implement more 
        stringent procurement and inventory controls, including 
        controls on the purchase card program, to prevent 
        waste, fraud, and abuse of taxpayer funds by employees 
        and contractors of the Department; and
            (2) the Department's Inspector General should 
        continue to closely review purchase card purchases and 
        other procurement and inventory practices at the 
        Department.

                    TITLE XI--PERSONNEL AND TRAINING

SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Definitions.--In this section:
            (1) Energy technology industry.--The term ``energy 
        technology industry'' includes--
                    (A) a renewable energy industry;
                    (B) a company that develops or 
                commercializes a device to increase energy 
                efficiency;
                    (C) the oil and gas industry;
                    (D) the nuclear power industry;
                    (E) the coal industry;
                    (F) the electric utility industry; and
                    (G) any other industrial sector, as the 
                Secretary determines to be appropriate.
            (2) Skilled technical personnel.--The term 
        ``skilled technical personnel'' means--
                    (A) journey- and apprentice-level workers 
                who are enrolled in, or have completed, a 
                federally-recognized or State-recognized 
                apprenticeship program; and
                    (B) other skilled workers in energy 
                technology industries, as determined by the 
                Secretary.
    (b) Workforce Trends.--
            (1) Monitoring.--The Secretary, in consultation 
        with, and using data collected by, the Secretary of 
        Labor, shall monitor trends in the workforce of--
                    (A) skilled technical personnel that 
                support energy technology industries; and
                    (B) electric power and transmission 
                engineers.
            (2) Report on trends.--Not later than 1 year after 
        the date of enactment of this Act, the Secretary shall 
        submit to Congress a report on current trends under 
        paragraph (1), with recommendations (as appropriate) to 
        meet the future labor requirements for the energy 
        technology industries.
            (3) Report on shortage.--As soon as practicable 
        after the date on which the Secretary identifies or 
        predicts a significant national shortage of skilled 
        technical personnel in 1 or more energy technology 
        industries, the Secretary shall submit to Congress a 
        report describing the shortage.
    (c) Traineeship Grants for Skilled Technical Personnel.--
The Secretary, in consultation with the Secretary of Labor, may 
establish programs in the appropriate offices of the Department 
under which the Secretary provides grants to enhance training 
(including distance learning) for any workforce category for 
which a shortage is identified or predicted under subsection 
(b)(2).
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $20,000,000 for 
each of fiscal years 2006 through 2008.

SEC. 1102. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

    (a) Science Education Enhancement Fund.--Section 3164 of 
the Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381a) is amended by adding at the end:
    ``(c) Science Education Enhancement Fund.--The Secretary 
shall use not less than 0.3 percent of the amount made 
available to the Department for research, development, 
demonstration, and commercial application for fiscal year 2006 
and each fiscal year thereafter to carry out activities 
authorized by this part.''.
    (b) Authorized Education Activities.--Section 3165 of the 
Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381b) is amended by adding at the end the following:
            ``(14) Support competitive events for students 
        under the supervision of teachers, designed to 
        encourage student interest and knowledge in science and 
        mathematics.
            ``(15) Support competitively-awarded, peer-reviewed 
        programs to promote professional development for 
        mathematics teachers and science teachers who teach in 
        grades from kindergarten through grade 12 at Department 
        research and development facilities.
            ``(16) Support summer internships at Department 
        research and development facilities, for mathematics 
        teachers and science teachers who teach in grades from 
        kindergarten through grade 12.
            ``(17) Sponsor and assist in educational and 
        training activities identified as critical skills needs 
        for future workforce development at Department research 
        and development facilities.''.
    (c) Educational Partnerships.--Section 3166(b) of the 
Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381c(b)) is amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) loaning or transferring equipment to the 
        institution;'';
            (2) in paragraph (5), by striking ``and'' at the 
        end;
            (3) in paragraph (6), by striking the period at the 
        end and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(7) providing funds to educational institutions 
        to hire personnel to facilitate interactions between 
        local school systems, Department research and 
        development facilities, and corporate and governmental 
        entities.''.
    (d) Definition of Department Research and Development 
Facilities.--Section 3167(3) of the Department of Energy 
Science Education Enhancement Act (42 U.S.C. 7381d(3)) is 
amended by striking ``from the Office of Science of the 
Department of Energy'' and inserting ``by the Department of 
Energy''.
    (e) Study.--
            (1) In general.--The Secretary, in consultation 
        with the Secretary of Education, shall enter into an 
        arrangement with the National Academy of Public 
        Administration to conduct a study of the priorities, 
        quality, local and regional flexibility, and plans for 
        educational programs at Department research and 
        development facilities.
            (2) Inclusion.--The study shall recommend measures 
        that the Secretary may take to improve Department-wide 
        coordination of educational, workforce development, and 
        critical skills development activities.
            (3) Report.--Not later than 2 years after the date 
        of enactment of this Act, the Secretary shall submit to 
        Congress a report on the results of the study conducted 
        under this subsection.

SEC. 1103. TRAINING GUIDELINES FOR NONNUCLEAR ELECTRIC ENERGY INDUSTRY 
                    PERSONNEL.

    (a) In General.--The Secretary of Labor, in consultation 
with the Secretary and in conjunction with the electric 
industry and recognized employee representatives, shall develop 
model personnel training guidelines to support the reliability 
and safety of the nonnuclear electric system.
    (b) Requirements.--The training guidelines under subsection 
(a) shall, at a minimum--
            (1) include training requirements for workers 
        engaged in the construction, operation, inspection, or 
        maintenance of nonnuclear electric generation, 
        transmission, or distribution systems, including 
        requirements relating to--
                    (A) competency;
                    (B) certification; and
                    (C) assessment, including--
                            (i) initial and continuous 
                        evaluation of workers;
                            (ii) recertification procedures; 
                        and
                            (iii) methods for examining or 
                        testing the qualification of an 
                        individual who performs a covered task; 
                        and
            (2) consolidate training guidelines in existence on 
        the date on which the guidelines under subsection (a) 
        are developed relating to the construction, operation, 
        maintenance, and inspection of nonnuclear electric 
        generation, transmission, and distribution facilities, 
        such as guidelines established by the National Electric 
        Safety Code and other industry consensus standards.

SEC. 1104. NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING 
                    TECHNOLOGIES.

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

SEC. 1105. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
                    CAREERS.

    (a) Science Education Programs.--Section 3164 of the 
Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381a) (as amended by section 1102(a)) is amended by 
adding at the end the following:
    ``(d) Programs for Students From Under-Represented 
Groups.--In carrying out a program under subsection (a), the 
Secretary shall give priority to activities that are designed 
to encourage students from under-represented groups to pursue 
scientific and technical careers.''.
    (b) Partnerships With Historically Black Colleges and 
Universities, Hispanic-Servicing Institutions, and Tribal 
Colleges.--The Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381 et seq.) is amended--
            (1) by redesignating sections 3167 and 3168 as 
        sections 3168 and 3169, respectively; and
            (2) by inserting after section 3166 the following:

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

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

SEC. 1106. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATIONAL 
                    CENTER.

    (a) Establishment.--The Secretary shall support the 
establishment of a National Power Plant Operations Technology 
and Education Center (referred to in this section as the 
``Center''), to address the need for training and educating 
certified operators and technicians for the electric power 
industry.
    (b) Location of Center.--The Secretary shall support the 
establishment of the Center at an institution of higher 
education that has--
            (1) expertise in providing degree programs in 
        electric power generation, transmission, and 
        distribution technologies;
            (2) expertise in providing onsite and Internet-
        based training; and
            (3) demonstrated responsiveness to workforce and 
        training requirements in the electric power industry.
    (c) Training and Continuing Education.--
            (1) In general.--The Center shall provide training 
        and continuing education in electric power generation, 
        transmission, and distribution technologies and 
        operations.
            (2) Location.--The Center shall carry out training 
        and education activities under paragraph (1)--
                    (A) at the Center; and
                    (B) through Internet-based information 
                technologies that allow for learning at remote 
                sites.

                         TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

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

                   Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

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

``SEC. 215. ELECTRIC RELIABILITY.

    ``(a) Definitions.--For purposes of this section:
            ``(1) The term `bulk-power system' means--
                    ``(A) facilities and control systems 
                necessary for operating an interconnected 
                electric energy transmission network (or any 
                portion thereof); and
                    ``(B) electric energy from generation 
                facilities needed to maintain transmission 
                system reliability.
        The term does not include facilities used in the local 
        distribution of electric energy.
            ``(2) The terms `Electric Reliability Organization' 
        and `ERO' mean the organization certified by the 
        Commission under subsection (c) the purpose of which is 
        to establish and enforce reliability standards for the 
        bulk-power system, subject to Commission review.
            ``(3) The term `reliability standard' means a 
        requirement, approved by the Commission under this 
        section, to provide for reliable operation of the bulk-
        power system. The term includes requirements for the 
        operation of existing bulk-power system facilities, 
        including cybersecurity protection, and the design of 
        planned additions or modifications to such facilities 
        to the extent necessary to provide for reliable 
        operation of the bulk-power system, but the term does 
        not include any requirement to enlarge such facilities 
        or to construct new transmission capacity or generation 
        capacity.
            ``(4) The term `reliable operation' means operating 
        the elements of the bulk-power system within equipment 
        and electric system thermal, voltage, and stability 
        limits so that instability, uncontrolled separation, or 
        cascading failures of such system will not occur as a 
        result of a sudden disturbance, including a 
        cybersecurity incident, or unanticipated failure of 
        system elements.
            ``(5) The term `Interconnection' means a geographic 
        area in which the operation of bulk-power system 
        components is synchronized such that the failure of 1 
        or more of such components may adversely affect the 
        ability of the operators of other components within the 
        system to maintain reliable operation of the facilities 
        within their control.
            ``(6) The term `transmission organization' means a 
        Regional Transmission Organization, Independent System 
        Operator, independent transmission provider, or other 
        transmission organization finally approved by the 
        Commission for the operation of transmission 
        facilities.
            ``(7) The term `regional entity' means an entity 
        having enforcement authority pursuant to subsection 
        (e)(4).
            ``(8) The term `cybersecurity incident' means a 
        malicious act or suspicious event that disrupts, or was 
        an attempt to disrupt, the operation of those 
        programmable electronic devices and communication 
        networks including hardware, software and data that are 
        essential to the reliable operation of the bulk power 
        system.
    ``(b) Jurisdiction and Applicability.--(1) The Commission 
shall have jurisdiction, within the United States, over the ERO 
certified by the Commission under subsection (c), any regional 
entities, and all users, owners and operators of the bulk-power 
system, including but not limited to the entities described in 
section 201(f), for purposes of approving reliability standards 
established under this section and enforcing compliance with 
this section. All users, owners and operators of the bulk-power 
system shall comply with reliability standards that take effect 
under this section.
    ``(2) The Commission shall issue a final rule to implement 
the requirements of this section not later than 180 days after 
the date of enactment of this section.
    ``(c) Certification.--Following the issuance of a 
Commission rule under subsection (b)(2), any person may submit 
an application to the Commission for certification as the 
Electric Reliability Organization. The Commission may certify 1 
such ERO if the Commission determines that such ERO--
            ``(1) has the ability to develop and enforce, 
        subject to subsection (e)(2), reliability standards 
        that provide for an adequate level of reliability of 
        the bulk-power system; and
            ``(2) has established rules that--
                    ``(A) assure its independence of the users 
                and owners and operators of the bulk-power 
                system, while assuring fair stakeholder 
                representation in the selection of its 
                directors and balanced decisionmaking in any 
                ERO committee or subordinate organizational 
                structure;
                    ``(B) allocate equitably reasonable dues, 
                fees, and other charges among end users for all 
                activities under this section;
                    ``(C) provide fair and impartial procedures 
                for enforcement of reliability standards 
                through the imposition of penalties in 
                accordance with subsection (e) (including 
                limitations on activities, functions, or 
                operations, or other appropriate sanctions);
                    ``(D) provide for reasonable notice and 
                opportunity for public comment, due process, 
                openness, and balance of interests in 
                developing reliability standards and otherwise 
                exercising its duties; and
                    ``(E) provide for taking, after 
                certification, appropriate steps to gain 
                recognition in Canada and Mexico.
    ``(d) Reliability Standards.--(1) The Electric Reliability 
Organization shall file each reliability standard or 
modification to a reliability standard that it proposes to be 
made effective under this section with the Commission.
    ``(2) The Commission may approve, by rule or order, a 
proposed reliability standard or modification to a reliability 
standard if it determines that the standard is just, 
reasonable, not unduly discriminatory or preferential, and in 
the public interest. The Commission shall give due weight to 
the technical expertise of the Electric Reliability 
Organization with respect to the content of a proposed standard 
or modification to a reliability standard and to the technical 
expertise of a regional entity organized on an Interconnection-
wide basis with respect to a reliability standard to be 
applicable within that Interconnection, but shall not defer 
with respect to the effect of a standard on competition. A 
proposed standard or modification shall take effect upon 
approval by the Commission.
    ``(3) The Electric Reliability Organization shall 
rebuttably presume that a proposal from a regional entity 
organized on an Interconnection-wide basis for a reliability 
standard or modification to a reliability standard to be 
applicable on an Interconnection-wide basis is just, 
reasonable, and not unduly discriminatory or preferential, and 
in the public interest.
    ``(4) The Commission shall remand to the Electric 
Reliability Organization for further consideration a proposed 
reliability standard or a modification to a reliability 
standard that the Commission disapproves in whole or in part.
    ``(5) The Commission, upon its own motion or upon 
complaint, may order the Electric Reliability Organization to 
submit to the Commission a proposed reliability standard or a 
modification to a reliability standard that addresses a 
specific matter if the Commission considers such a new or 
modified reliability standard appropriate to carry out this 
section.
    ``(6) The final rule adopted under subsection (b)(2) shall 
include fair processes for the identification and timely 
resolution of any conflict between a reliability standard and 
any function, rule, order, tariff, rate schedule, or agreement 
accepted, approved, or ordered by the Commission applicable to 
a transmission organization. Such transmission organization 
shall continue to comply with such function, rule, order, 
tariff, rate schedule or agreement accepted approved, or 
ordered by the Commission until--
            ``(A) the Commission finds a conflict exists 
        between a reliability standard and any such provision;
            ``(B) the Commission orders a change to such 
        provision pursuant to section 206 of this part; and
            ``(C) the ordered change becomes effective under 
        this part.
If the Commission determines that a reliability standard needs 
to be changed as a result of such a conflict, it shall order 
the ERO to develop and file with the Commission a modified 
reliability standard under paragraph (4) or (5) of this 
subsection.
    ``(e) Enforcement.--(1) The ERO may impose, subject to 
paragraph (2), a penalty on a user or owner or operator of the 
bulk-power system for a violation of a reliability standard 
approved by the Commission under subsection (d) if the ERO, 
after notice and an opportunity for a hearing--
            ``(A) finds that the user or owner or operator has 
        violated a reliability standard approved by the 
        Commission under subsection (d); and
            ``(B) files notice and the record of the proceeding 
        with the Commission.
    ``(2) A penalty imposed under paragraph (1) may take effect 
not earlier than the 31st day after the ERO files with the 
Commission notice of the penalty and the record of proceedings. 
Such penalty shall be subject to review by the Commission, on 
its own motion or upon application by the user, owner or 
operator that is the subject of the penalty filed within 30 
days after the date such notice is filed with the Commission. 
Application to the Commission for review, or the initiation of 
review by the Commission on its own motion, shall not operate 
as a stay of such penalty unless the Commission otherwise 
orders upon its own motion or upon application by the user, 
owner or operator that is the subject of such penalty. In any 
proceeding to review a penalty imposed under paragraph (1), the 
Commission, after notice and opportunity for hearing (which 
hearing may consist solely of the record before the ERO and 
opportunity for the presentation of supporting reasons to 
affirm, modify, or set aside the penalty), shall by order 
affirm, set aside, reinstate, or modify the penalty, and, if 
appropriate, remand to the ERO for further proceedings. The 
Commission shall implement expedited procedures for such 
hearings.
    ``(3) On its own motion or upon complaint, the Commission 
may order compliance with a reliability standard and may impose 
a penalty against a user or owner or operator of the bulk-power 
system if the Commission finds, after notice and opportunity 
for a hearing, that the user or owner or operator of the bulk-
power system has engaged or is about to engage in any acts or 
practices that constitute or will constitute a violation of a 
reliability standard.
    ``(4) The Commission shall issue regulations authorizing 
the ERO to enter into an agreement to delegate authority to a 
regional entity for the purpose of proposing reliability 
standards to the ERO and enforcing reliability standards under 
paragraph (1) if--
            ``(A) the regional entity is governed by--
                    ``(i) an independent board;
                    ``(ii) a balanced stakeholder board; or
                    ``(iii) a combination independent and 
                balanced stakeholder board.
            ``(B) the regional entity otherwise satisfies the 
        provisions of subsection (c)(1) and (2); and
            ``(C) the agreement promotes effective and 
        efficient administration of bulk-power system 
        reliability.
The Commission may modify such delegation. The ERO and the 
Commission shall rebuttably presume that a proposal for 
delegation to a regional entity organized on an 
Interconnection-wide basis promotes effective and efficient 
administration of bulk-power system reliability and should be 
approved. Such regulation may provide that the Commission may 
assign the ERO's authority to enforce reliability standards 
under paragraph (1) directly to a regional entity consistent 
with the requirements of this paragraph.
    ``(5) The Commission may take such action as is necessary 
or appropriate against the ERO or a regional entity to ensure 
compliance with a reliability standard or any Commission order 
affecting the ERO or a regional entity.
    ``(6) Any penalty imposed under this section shall bear a 
reasonable relation to the seriousness of the violation and 
shall take into consideration the efforts of such user, owner, 
or operator to remedy the violation in a timely manner.
    ``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the 
Commission for approval any proposed rule or proposed rule 
change, accompanied by an explanation of its basis and purpose. 
The Commission, upon its own motion or complaint, may propose a 
change to the rules of the ERO. A proposed rule or proposed 
rule change shall take effect upon a finding by the Commission, 
after notice and opportunity for comment, that the change is 
just, reasonable, not unduly discriminatory or preferential, is 
in the public interest, and satisfies the requirements of 
subsection (c).
    ``(g) Reliability Reports.--The ERO shall conduct periodic 
assessments of the reliability and adequacy of the bulk-power 
system in North America.
    ``(h) Coordination With Canada and Mexico.--The President 
is urged to negotiate international agreements with the 
governments of Canada and Mexico to provide for effective 
compliance with reliability standards and the effectiveness of 
the ERO in the United States and Canada or Mexico.
    ``(i) Savings Provisions.--(1) The ERO shall have authority 
to develop and enforce compliance with reliability standards 
for only the bulk-power system.
    ``(2) This section does not authorize the ERO or the 
Commission to order the construction of additional generation 
or transmission capacity or to set and enforce compliance with 
standards for adequacy or safety of electric facilities or 
services.
    ``(3) Nothing in this section shall be construed to preempt 
any authority of any State to take action to ensure the safety, 
adequacy, and reliability of electric service within that 
State, as long as such action is not inconsistent with any 
reliability standard, except that the State of New York may 
establish rules that result in greater reliability within that 
State, as long as such action does not result in lesser 
reliability outside the State than that provided by the 
reliability standards.
    ``(4) Within 90 days of the application of the Electric 
Reliability Organization or other affected party, and after 
notice and opportunity for comment, the Commission shall issue 
a final order determining whether a State action is 
inconsistent with a reliability standard, taking into 
consideration any recommendation of the ERO.
    ``(5) The Commission, after consultation with the ERO and 
the State taking action, may stay the effectiveness of any 
State action, pending the Commission's issuance of a final 
order.
    ``(j) Regional Advisory Bodies.--The Commission shall 
establish a regional advisory body on the petition of at least 
\2/3\ of the States within a region that have more than \1/2\ 
of their electric load served within the region. A regional 
advisory body shall be composed of 1 member from each 
participating State in the region, appointed by the Governor of 
each State, and may include representatives of agencies, 
States, and provinces outside the United States. A regional 
advisory body may provide advice to the Electric Reliability 
Organization, a regional entity, or the Commission regarding 
the governance of an existing or proposed regional entity 
within the same region, whether a standard proposed to apply 
within the region is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest, 
whether fees proposed to be assessed within the region are 
just, reasonable, not unduly discriminatory or preferential, 
and in the public interest and any other responsibilities 
requested by the Commission. The Commission may give deference 
to the advice of any such regional advisory body if that body 
is organized on an Interconnection-wide basis.
    ``(k) Alaska and Hawaii.--The provisions of this section do 
not apply to Alaska or Hawaii.''.
    (b) Status of ERO.--The Electric Reliability Organization 
certified by the Federal Energy Regulatory Commission under 
section 215(c) of the Federal Power Act and any regional entity 
delegated enforcement authority pursuant to section 215(e)(4) 
of that Act are not departments, agencies, or instrumentalities 
of the United States Government.
    (c) Access Approvals by Federal Agencies.--Federal agencies 
responsible for approving access to electric transmission or 
distribution facilities located on lands within the United 
States shall, in accordance with applicable law, expedite any 
Federal agency approvals that are necessary to allow the owners 
or operators of such facilities to comply with any reliability 
standard, approved by the Commission under section 215 of the 
Federal Power Act, that pertains to vegetation management, 
electric service restoration, or resolution of situations that 
imminently endanger the reliability or safety of the 
facilities.

         Subtitle B--Transmission Infrastructure Modernization

SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

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

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

    ``(a) Designation of National Interest Electric 
Transmission Corridors.--(1) Not later than 1 year after the 
date of enactment of this section and every 3 years thereafter, 
the Secretary of Energy (referred to in this section as the 
`Secretary'), in consultation with affected States, shall 
conduct a study of electric transmission congestion.
    ``(2) After considering alternatives and recommendations 
from interested parties (including an opportunity for comment 
from affected States), the Secretary shall issue a report, 
based on the study, which may designate any geographic area 
experiencing electric energy transmission capacity constraints 
or congestion that adversely affects consumers as a national 
interest electric transmission corridor.
    ``(3) The Secretary shall conduct the study and issue the 
report in consultation with any appropriate regional entity 
referred to in section 215.
    ``(4) In determining whether to designate a national 
interest electric transmission corridor under paragraph (2), 
the Secretary may consider whether--
            ``(A) the economic vitality and development of the 
        corridor, or the end markets served by the corridor, 
        may be constrained by lack of adequate or reasonably 
        priced electricity;
            ``(B)(i) economic growth in the corridor, or the 
        end markets served by the corridor, may be jeopardized 
        by reliance on limited sources of energy; and
            ``(ii) a diversification of supply is warranted;
            ``(C) the energy independence of the United States 
        would be served by the designation;
            ``(D) the designation would be in the interest of 
        national energy policy; and
            ``(E) the designation would enhance national 
        defense and homeland security.
    ``(b) Construction Permit.--Except as provided in 
subsection (i), the Commission may, after notice and an 
opportunity for hearing, issue 1 or more permits for the 
construction or modification of electric transmission 
facilities in a national interest electric transmission 
corridor designated by the Secretary under subsection (a) if 
the Commission finds that--
            ``(1)(A) a State in which the transmission 
        facilities are to be constructed or modified does not 
        have authority to--
                    ``(i) approve the siting of the facilities; 
                or
                    ``(ii) consider the interstate benefits 
                expected to be achieved by the proposed 
                construction or modification of transmission 
                facilities in the State;
            ``(B) the applicant for a permit is a transmitting 
        utility under this Act but does not qualify to apply 
        for a permit or siting approval for the proposed 
        project in a State because the applicant does not serve 
        end-use customers in the State; or
            ``(C) a State commission or other entity that has 
        authority to approve the siting of the facilities has--
                    ``(i) withheld approval for more than 1 
                year after the filing of an application seeking 
                approval pursuant to applicable law or 1 year 
                after the designation of the relevant national 
                interest electric transmission corridor, 
                whichever is later; or
                    ``(ii) conditioned its approval in such a 
                manner that the proposed construction or 
                modification will not significantly reduce 
                transmission congestion in interstate commerce 
                or is not economically feasible;
            ``(2) the facilities to be authorized by the permit 
        will be used for the transmission of electric energy in 
        interstate commerce;
            ``(3) the proposed construction or modification is 
        consistent with the public interest;
            ``(4) the proposed construction or modification 
        will significantly reduce transmission congestion in 
        interstate commerce and protects or benefits consumers;
            ``(5) the proposed construction or modification is 
        consistent with sound national energy policy and will 
        enhance energy independence; and
            ``(6) the proposed modification will maximize, to 
        the extent reasonable and economical, the transmission 
        capabilities of existing towers or structures.
    ``(c) Permit Applications.--(1) Permit applications under 
subsection (b) shall be made in writing to the Commission.
    ``(2) The Commission shall issue rules specifying--
            ``(A) the form of the application;
            ``(B) the information to be contained in the 
        application; and
            ``(C) the manner of service of notice of the permit 
        application on interested persons.
    ``(d) Comments.--In any proceeding before the Commission 
under subsection (b), the Commission shall afford each State in 
which a transmission facility covered by the permit is or will 
be located, each affected Federal agency and Indian tribe, 
private property owners, and other interested persons, a 
reasonable opportunity to present their views and 
recommendations with respect to the need for and impact of a 
facility covered by the permit.
    ``(e) Rights-of-Way.--(1) In the case of a permit under 
subsection (b) for electric transmission facilities to be 
located on property other than property owned by the United 
States or a State, if the permit holder cannot acquire by 
contract, or is unable to agree with the owner of the property 
to the compensation to be paid for, the necessary right-of-way 
to construct or modify the transmission facilities, the permit 
holder may acquire the right-of-way by the exercise of the 
right of eminent domain in the district court of the United 
States for the district in which the property concerned is 
located, or in the appropriate court of the State in which the 
property is located.
    ``(2) Any right-of-way acquired under paragraph (1) shall 
be used exclusively for the construction or modification of 
electric transmission facilities within a reasonable period of 
time after the acquisition.
    ``(3) The practice and procedure in any action or 
proceeding under this subsection in the district court of the 
United States shall conform as nearly as practicable to the 
practice and procedure in a similar action or proceeding in the 
courts of the State in which the property is located.
    ``(4) Nothing in this subsection shall be construed to 
authorize the use of eminent domain to acquire a right-of-way 
for any purpose other than the construction, modification, 
operation, or maintenance of electric transmission facilities 
and related facilities. The right-of-way cannot be used for any 
other purpose, and the right-of-way shall terminate upon the 
termination of the use for which the right-of-way was acquired.
    ``(f) Compensation.--(1) Any right-of-way acquired pursuant 
to subsection (e) shall be considered a taking of private 
property for which just compensation is due.
    ``(2) Just compensation shall be an amount equal to the 
fair market value (including applicable severance damages) of 
the property taken on the date of the exercise of eminent 
domain authority.
    ``(g) State Law.--Nothing in this section precludes any 
person from constructing or modifying any transmission facility 
in accordance with State law.
    ``(h) Coordination of Federal Authorizations for 
Transmission Facilities.--(1) In this subsection:
            ``(A) The term `Federal authorization' means any 
        authorization required under Federal law in order to 
        site a transmission facility.
            ``(B) The term `Federal authorization' includes 
        such permits, special use authorizations, 
        certifications, opinions, or other approvals as may be 
        required under Federal law in order to site a 
        transmission facility.
    ``(2) The Department of Energy shall act as the lead agency 
for purposes of coordinating all applicable Federal 
authorizations and related environmental reviews of the 
facility.
    ``(3) To the maximum extent practicable under applicable 
Federal law, the Secretary shall coordinate the Federal 
authorization and review process under this subsection with any 
Indian tribes, multistate entities, and State agencies that are 
responsible for conducting any separate permitting and 
environmental reviews of the facility, to ensure timely and 
efficient review and permit decisions.
    ``(4)(A) As head of the lead agency, the Secretary, in 
consultation with agencies responsible for Federal 
authorizations and, as appropriate, with Indian tribes, 
multistate entities, and State agencies that are willing to 
coordinate their own separate permitting and environmental 
reviews with the Federal authorization and environmental 
reviews, shall establish prompt and binding intermediate 
milestones and ultimate deadlines for the review of, and 
Federal authorization decisions relating to, the proposed 
facility.
    ``(B) The Secretary shall ensure that, once an application 
has been submitted with such data as the Secretary considers 
necessary, all permit decisions and related environmental 
reviews under all applicable Federal laws shall be completed--
            ``(i) within 1 year; or
            ``(ii) if a requirement of another provision of 
        Federal law does not permit compliance with clause (i), 
        as soon thereafter as is practicable.
    ``(C) The Secretary shall provide an expeditious pre-
application mechanism for prospective applicants to confer with 
the agencies involved to have each such agency determine and 
communicate to the prospective applicant not later than 60 days 
after the prospective applicant submits a request for such 
information concerning--
            ``(i) the likelihood of approval for a potential 
        facility; and
            ``(ii) key issues of concern to the agencies and 
        public.
    ``(5)(A) As lead agency head, the Secretary, in 
consultation with the affected agencies, shall prepare a single 
environmental review document, which shall be used as the basis 
for all decisions on the proposed project under Federal law.
    ``(B) The Secretary and the heads of other agencies shall 
streamline the review and permitting of transmission within 
corridors designated under section 503 of the Federal Land 
Policy and Management Act (43 U.S.C. 1763) by fully taking into 
account prior analyses and decisions relating to the corridors.
    ``(C) The document shall include consideration by the 
relevant agencies of any applicable criteria or other matters 
as required under applicable law.
    ``(6)(A) If any agency has denied a Federal authorization 
required for a transmission facility, or has failed to act by 
the deadline established by the Secretary pursuant to this 
section for deciding whether to issue the authorization, the 
applicant or any State in which the facility would be located 
may file an appeal with the President, who shall, in 
consultation with the affected agency, review the denial or 
failure to take action on the pending application.
    ``(B) Based on the overall record and in consultation with 
the affected agency, the President may--
            ``(i) issue the necessary authorization with any 
        appropriate conditions; or
            ``(ii) deny the application.
    ``(C) The President shall issue a decision not later than 
90 days after the date of the filing of the appeal.
    ``(D) In making a decision under this paragraph, the 
President shall comply with applicable requirements of Federal 
law, including any requirements of--
            ``(i) the National Forest Management Act of 1976 
        (16 U.S.C. 472a et seq.);
            ``(ii) the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.);
            ``(iii) the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.);
            ``(iv) the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.); and
            ``(v) the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1701 et seq.).
    ``(7)(A) Not later than 18 months after the date of 
enactment of this section, the Secretary shall issue any 
regulations necessary to implement this subsection.
    ``(B)(i) Not later than 1 year after the date of enactment 
of this section, the Secretary and the heads of all Federal 
agencies with authority to issue Federal authorizations shall 
enter into a memorandum of understanding to ensure the timely 
and coordinated review and permitting of electricity 
transmission facilities.
    ``(ii) Interested Indian tribes, multistate entities, and 
State agencies may enter the memorandum of understanding.
    ``(C) The head of each Federal agency with authority to 
issue a Federal authorization shall designate a senior official 
responsible for, and dedicate sufficient other staff and 
resources to ensure, full implementation of the regulations and 
memorandum required under this paragraph.
    ``(8)(A) Each Federal land use authorization for an 
electricity transmission facility shall be issued--
            ``(i) for a duration, as determined by the 
        Secretary, commensurate with the anticipated use of the 
        facility; and
            ``(ii) with appropriate authority to manage the 
        right-of-way for reliability and environmental 
        protection.
    ``(B) On the expiration of the authorization (including an 
authorization issued before the date of enactment of this 
section), the authorization shall be reviewed for renewal 
taking fully into account reliance on such electricity 
infrastructure, recognizing the importance of the authorization 
for public health, safety, and economic welfare and as a 
legitimate use of Federal land.
    ``(9) In exercising the responsibilities under this 
section, the Secretary shall consult regularly with--
            ``(A) the Federal Energy Regulatory Commission;
            ``(B) electric reliability organizations (including 
        related regional entities) approved by the Commission; 
        and
            ``(C) Transmission Organizations approved by the 
        Commission.
    ``(i) Interstate Compacts.--(1) The consent of Congress is 
given for 3 or more contiguous States to enter into an 
interstate compact, subject to approval by Congress, 
establishing regional transmission siting agencies to--
            ``(A) facilitate siting of future electric energy 
        transmission facilities within those States; and
            ``(B) carry out the electric energy transmission 
        siting responsibilities of those States.
    ``(2) The Secretary may provide technical assistance to 
regional transmission siting agencies established under this 
subsection.
    ``(3) The regional transmission siting agencies shall have 
the authority to review, certify, and permit siting of 
transmission facilities, including facilities in national 
interest electric transmission corridors (other than facilities 
on property owned by the United States).
    ``(4) The Commission shall have no authority to issue a 
permit for the construction or modification of an electric 
transmission facility within a State that is a party to a 
compact, unless the members of the compact are in disagreement 
and the Secretary makes, after notice and an opportunity for a 
hearing, the finding described in subsection (b)(1)(C).
    ``(j) Relationship to Other Laws.--(1) Except as 
specifically provided, nothing in this section affects any 
requirement of an environmental law of the United States, 
including the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.).
    ``(2) Subsection (h)(6) shall not apply to any unit of the 
National Park System, the National Wildlife Refuge System, the 
National Wild and Scenic Rivers System, the National Trails 
System, the National Wilderness Preservation System, or a 
National Monument.
    ``(k) ERCOT.--This section shall not apply within the area 
referred to in section 212(k)(2)(A).''.
    (b) Reports to Congress on Corridors and Rights of Way on 
Federal Lands.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of the Interior, the 
Secretary, the Secretary of Agriculture, and the Chairman of 
the Council on Environmental Quality shall submit to Congress a 
joint report identifying--
            (1)(A) all existing designated transmission and 
        distribution corridors on Federal land and the status 
        of work related to proposed transmission and 
        distribution corridor designations under title V of the 
        Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1761 et seq.);
            (B) the schedule for completing the work;
            (C) any impediments to completing the work; and
            (D) steps that Congress could take to expedite the 
        process;
            (2)(A) the number of pending applications to locate 
        transmission facilities on Federal land;
            (B) key information relating to each such facility;
            (C) how long each application has been pending;
            (D) the schedule for issuing a timely decision as 
        to each facility; and
            (E) progress in incorporating existing and new such 
        rights-of-way into relevant land use and resource 
        management plans or the equivalent of those plans; and
            (3)(A) the number of existing transmission and 
        distribution rights-of-way on Federal land that will 
        come up for renewal within the following 5-, 10-, and 
        15-year periods; and
            (B) a description of how the Secretaries plan to 
        manage the renewals.

SEC. 1222. THIRD-PARTY FINANCE.

    (a) Existing Facilities.--The Secretary, acting through the 
Administrator of the Western Area Power Administration 
(hereinafter in this section referred to as ``WAPA''), or 
through the Administrator of the Southwestern Power 
Administration (hereinafter in this section referred to as 
``SWPA''), or both, may design, develop, construct, operate, 
maintain, or own, or participate with other entities in 
designing, developing, constructing, operating, maintaining, or 
owning, an electric power transmission facility and related 
facilities (``Project'') needed to upgrade existing 
transmission facilities owned by SWPA or WAPA if the Secretary, 
in consultation with the applicable Administrator, determines 
that the proposed Project--
            (1)(A) is located in a national interest electric 
        transmission corridor designated under section 216(a) 
        of the Federal Power Act and will reduce congestion of 
        electric transmission in interstate commerce; or
            (B) is necessary to accommodate an actual or 
        projected increase in demand for electric transmission 
        capacity;
            (2) is consistent with--
                    (A) transmission needs identified, in a 
                transmission expansion plan or otherwise, by 
                the appropriate Transmission Organization (as 
                defined in the Federal Power Act), if any, or 
                approved regional reliability organization; and
                    (B) efficient and reliable operation of the 
                transmission grid; and
            (3) would be operated in conformance with prudent 
        utility practice.
    (b) New Facilities.--The Secretary, acting through WAPA or 
SWPA, or both, may design, develop, construct, operate, 
maintain, or own, or participate with other entities in 
designing, developing, constructing, operating, maintaining, or 
owning, a new electric power transmission facility and related 
facilities (``Project'') located within any State in which WAPA 
or SWPA operates if the Secretary, in consultation with the 
applicable Administrator, determines that the proposed 
Project--
            (1)(A) is located in an area designated under 
        section 216(a) of the Federal Power Act and will reduce 
        congestion of electric transmission in interstate 
        commerce; or
            (B) is necessary to accommodate an actual or 
        projected increase in demand for electric transmission 
        capacity;
            (2) is consistent with--
                    (A) transmission needs identified, in a 
                transmission expansion plan or otherwise, by 
                the appropriate Transmission Organization (as 
                defined in the Federal Power Act) if any, or 
                approved regional reliability organization; and
                    (B) efficient and reliable operation of the 
                transmission grid;
            (3) will be operated in conformance with prudent 
        utility practice;
            (4) will be operated by, or in conformance with the 
        rules of, the appropriate (A) Transmission 
        Organization, if any, or (B) if such an organization 
        does not exist, regional reliability organization; and
            (5) will not duplicate the functions of existing 
        transmission facilities or proposed facilities which 
        are the subject of ongoing or approved siting and 
        related permitting proceedings.
    (c) Other Funds.--
            (1) In general.--In carrying out a Project under 
        subsection (a) or (b), the Secretary may accept and use 
        funds contributed by another entity for the purpose of 
        carrying out the Project.
            (2) Availability.--The contributed funds shall be 
        available for expenditure for the purpose of carrying 
        out the Project--
                    (A) without fiscal year limitation; and
                    (B) as if the funds had been appropriated 
                specifically for that Project.
            (3) Allocation of costs.--In carrying out a Project 
        under subsection (a) or (b), any costs of the Project 
        not paid for by contributions from another entity shall 
        be collected through rates charged to customers using 
        the new transmission capability provided by the Project 
        and allocated equitably among these project 
        beneficiaries using the new transmission capability.
    (d) Relationship to Other Laws.--Nothing in this section 
affects any requirement of--
            (1) any Federal environmental law, including the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.);
            (2) any Federal or State law relating to the siting 
        of energy facilities; or
            (3) any existing authorizing statutes.
    (e) Savings Clause.--Nothing in this section shall 
constrain or restrict an Administrator in the utilization of 
other authority delegated to the Administrator of WAPA or SWPA.
    (f) Secretarial Determinations.--Any determination made 
pursuant to subsections (a) or (b) shall be based on findings 
by the Secretary using the best available data.
    (g) Maximum Funding Amount.--The Secretary shall not accept 
and use more than $100,000,000 under subsection (c)(1) for the 
period encompassing fiscal years 2006 through 2015.

SEC. 1223. ADVANCED TRANSMISSION TECHNOLOGIES.

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

SEC. 1224. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.

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

            Subtitle C--Transmission Operation Improvements

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

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

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

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

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN TRANSMISSION ORGANIZATIONS.

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

SEC. 1233. NATIVE LOAD SERVICE OBLIGATION.

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

``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.

    ``(a) Definitions.--In this section:
            ``(1) The term `distribution utility' means an 
        electric utility that has a service obligation to end-
        users or to a State utility or electric cooperative 
        that, directly or indirectly, through 1 or more 
        additional State utilities or electric cooperatives, 
        provides electric service to end-users.
            ``(2) The term `load-serving entity' means a 
        distribution utility or an electric utility that has a 
        service obligation.
            ``(3) The term `service obligation' means a 
        requirement applicable to, or the exercise of authority 
        granted to, an electric utility under Federal, State, 
        or local law or under long-term contracts to provide 
        electric service to end-users or to a distribution 
        utility.
            ``(4) The term `State utility' means a State or any 
        political subdivision of a State, or any agency, 
        authority, or instrumentality of any 1 or more of the 
        foregoing, or a corporation that is wholly owned, 
        directly or indirectly, by any 1 or more of the 
        foregoing, competent to carry on the business of 
        developing, transmitting, utilizing, or distributing 
        power.
    ``(b) Meeting Service Obligations.--(1) Paragraph (2) 
applies to any load-serving entity that, as of the date of 
enactment of this section--
            ``(A) owns generation facilities, markets the 
        output of Federal generation facilities, or holds 
        rights under 1 or more wholesale contracts to purchase 
        electric energy, for the purpose of meeting a service 
        obligation; and
            ``(B) by reason of ownership of transmission 
        facilities, or 1 or more contracts or service 
        agreements for firm transmission service, holds firm 
        transmission rights for delivery of the output of the 
        generation facilities or the purchased energy to meet 
        the service obligation.
    ``(2) Any load-serving entity described in paragraph (1) is 
entitled to use the firm transmission rights, or, equivalent 
tradable or financial transmission rights, in order to deliver 
the output or purchased energy, or the output of other 
generating facilities or purchased energy to the extent 
deliverable using the rights, to the extent required to meet 
the service obligation of the load-serving entity.
    ``(3)(A) To the extent that all or a portion of the service 
obligation covered by the firm transmission rights or 
equivalent tradable or financial transmission rights is 
transferred to another load-serving entity, the successor load-
serving entity shall be entitled to use the firm transmission 
rights or equivalent tradable or financial transmission rights 
associated with the transferred service obligation.
    ``(B) Subsequent transfers to another load-serving entity, 
or back to the original load-serving entity, shall be entitled 
to the same rights.
    ``(4) The Commission shall exercise the authority of the 
Commission under this Act in a manner that facilitates the 
planning and expansion of transmission facilities to meet the 
reasonable needs of load-serving entities to satisfy the 
service obligations of the load-serving entities, and enables 
load-serving entities to secure firm transmission rights (or 
equivalent tradable or financial rights) on a long term basis 
for long term power supply arrangements made, or planned, to 
meet such needs.
    ``(c) Allocation of Transmission Rights.--Nothing in 
subsections (b)(1), (b)(2) and (b)(3) of this section shall 
affect any existing or future methodology employed by a 
Transmission Organization for allocating or auctioning 
transmission rights if such Transmission Organization was 
authorized by the Commission to allocate or auction financial 
transmission rights on its system as of January 1, 2005, and 
the Commission determines that any future allocation or auction 
is just, reasonable and not unduly discriminatory or 
preferential, provided, however, that if such a Transmission 
Organization never allocated financial transmission rights on 
its system that pertained to a period before January 1, 2005, 
with respect to any application by such Transmission 
Organization that would change its methodology the Commission 
shall exercise its authority in a manner consistent with the 
Act and that takes into account the policies expressed in 
subsections (b)(1), (b)(2) and (b)(3) as applied to firm 
transmission rights held by a load-serving entity as of January 
1, 2005, to the extent the associated generation ownership or 
power purchase arrangements remain in effect.
    ``(d) Certain Transmission Rights.--The Commission may 
exercise authority under this Act to make transmission rights 
not used to meet an obligation covered by subsection (b) 
available to other entities in a manner determined by the 
Commission to be just, reasonable, and not unduly 
discriminatory or preferential.
    ``(e) Obligation To Build.--Nothing in this Act relieves a 
load-serving entity from any obligation under State or local 
law to build transmission or distribution facilities adequate 
to meet the service obligations of the load-serving entity.
    ``(f) Contracts.--Nothing in this section shall provide a 
basis for abrogating any contract or service agreement for firm 
transmission service or rights in effect as of the date of the 
enactment of this subsection. If an ISO in the Western 
Interconnection had allocated financial transmission rights 
prior to the date of enactment of this section but had not done 
so with respect to one or more load-serving entities' firm 
transmission rights held under contracts to which the preceding 
sentence applies (or held by reason of ownership or future 
ownership of transmission facilities), such load-serving 
entities may not be required, without their consent, to convert 
such firm transmission rights to tradable or financial rights, 
except where the load-serving entity has voluntarily joined the 
ISO as a participating transmission owner (or its successor) in 
accordance with the ISO tariff.
    ``(g) Water Pumping Facilities.--The Commission shall 
ensure that any entity described in section 201(f) that owns 
transmission facilities used predominately to support its own 
water pumping facilities shall have, with respect to the 
facilities, protections for transmission service comparable to 
those provided to load-serving entities pursuant to this 
section.
    ``(h) ERCOT.--This section shall not apply within the area 
referred to in section 212(k)(2)(A).
    ``(i) Jurisdiction.--This section does not authorize the 
Commission to take any action not otherwise within the 
jurisdiction of the Commission.
    ``(j) TVA Area.--(1) Subject to paragraphs (2) and (3), for 
purposes of subsection (b)(1)(B), a load-serving entity that is 
located within the service area of the Tennessee Valley 
Authority and that has a firm wholesale power supply contract 
with the Tennessee Valley Authority shall be considered to hold 
firm transmission rights for the transmission of the power 
provided.
    ``(2) Nothing in this subsection affects the requirements 
of section 212(j).
    ``(3) The Commission shall not issue an order on the basis 
of this subsection that is contrary to the purposes of section 
212(j).
    ``(k) Effect of Exercising Rights.--An entity that to the 
extent required to meet its service obligations exercises 
rights described in subsection (b) shall not be considered by 
such action as engaging in undue discrimination or preference 
under this Act''.
    (b) FERC Rulemaking on Long-Term Transmission Rights in 
Organized Markets.--Within one year after the date of enactment 
of this section and after notice and an opportunity for 
comment, the Commission shall by rule or order, implement 
section 217(b)(4) of the Federal Power Act in Transmission 
Organizations, as defined by that Act with organized 
electricity markets.

SEC. 1234. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary, in coordination and consultation 
with the States, shall conduct a study on--
            (1) the procedures currently used by electric 
        utilities to perform economic dispatch;
            (2) identifying possible revisions to those 
        procedures to improve the ability of nonutility 
        generation resources to offer their output for sale for 
        the purpose of inclusion in economic dispatch; and
            (3) the potential benefits to residential, 
        commercial, and industrial electricity consumers 
        nationally and in each state if economic dispatch 
        procedures were revised to improve the ability of 
        nonutility generation resources to offer their output 
        for inclusion in economic dispatch.
    (b) Definition.--The term ``economic dispatch'' when used 
in this section means the operation of generation facilities to 
produce energy at the lowest cost to reliably serve consumers, 
recognizing any operational limits of generation and 
transmission facilities.
    (c) Report to Congress and the States.--Not later than 90 
days after the date of enactment of this Act, and on a yearly 
basis following, the Secretary shall submit a report to 
Congress and the States on the results of the study conducted 
under subsection (a), including recommendations to Congress and 
the States for any suggested legislative or regulatory changes.

SEC. 1235. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC 
                    NORTHWEST.

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

``SEC. 218. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC 
                    NORTHWEST.

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

SEC. 1236. SENSE OF CONGRESS REGARDING LOCATIONAL INSTALLED CAPACITY 
                    MECHANISM.

    (a) Findings.--Congress finds that--
            (1) in regard to a proposal to develop and 
        implement a specific type of locational installed 
        capacity mechanism in New England pending before the 
        Federal Energy Regulatory Commission; and
            (2) the Governors of the States have objected to 
        the proposed mechanism, arguing that the mechanism--
                    (A) would not provide adequate assurance 
                that necessary electric generation capacity or 
                reliability will be provided; and
                    (B) would impose a high cost on consumers 
                and have a significant negative economic 
                impact.
    (b) Sense of Congress.--Congress--
            (1) notes the concerns of the New England States to 
        the proposed mechanism; and
            (2) declares that it is the sense of Congress that 
        the Federal Energy Regulatory Commission should 
        carefully consider the States' objections.

                  Subtitle D--Transmission Rate Reform

SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.

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

``SEC. 219. TRANSMISSION INFRASTRUCTURE INVESTMENT.

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

SEC. 1242. FUNDING NEW INTERCONNECTION AND TRANSMISSION UPGRADES.

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

                    Subtitle E--Amendments to PURPA

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

    (a) Adoption of Standards.--Section 111(d) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 
amended by adding at the end the following:
            ``(11) Net metering.--Each electric utility shall 
        make available upon request net metering service to any 
        electric consumer that the electric utility serves. For 
        purposes of this paragraph, the term `net metering 
        service' means service to an electric consumer under 
        which electric energy generated by that electric 
        consumer from an eligible on-site generating facility 
        and delivered to the local distribution facilities may 
        be used to offset electric energy provided by the 
        electric utility to the electric consumer during the 
        applicable billing period.
            ``(12) Fuel sources.--Each electric utility shall 
        develop a plan to minimize dependence on 1 fuel source 
        and to ensure that the electric energy it sells to 
        consumers is generated using a diverse range of fuels 
        and technologies, including renewable technologies.
            ``(13) Fossil fuel generation efficiency.--Each 
        electric utility shall develop and implement a 10-year 
        plan to increase the efficiency of its fossil fuel 
        generation.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2622(b)) is amended by adding at the end the following:
    ``(3)(A) Not later than 2 years after the enactment of this 
paragraph, each State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) 
and each nonregulated electric utility shall commence the 
consideration referred to in section 111, or set a hearing date 
for such consideration, with respect to each standard 
established by paragraphs (11) through (13) of section 111(d).
    ``(B) Not later than 3 years after the date of the 
enactment of this paragraph, each State regulatory authority 
(with respect to each electric utility for which it has 
ratemaking authority), and each nonregulated electric utility, 
shall complete the consideration, and shall make the 
determination, referred to in section 111 with respect to each 
standard established by paragraphs (11) through (13) of section 
111(d).''.
            (2) Failure to comply.--Section 112(c) of the 
        Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2622(c)) is amended by adding at the end the 
        following: ``In the case of each standard established 
        by paragraphs (11) through (13) of section 111(d), the 
        reference contained in this subsection to the date of 
        enactment of this Act shall be deemed to be a reference 
        to the date of enactment of such paragraphs (11) 
        through (13).''.
            (3) Prior state actions.--
                    (A) In general.--Section 112 of the Public 
                Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2622) is amended by adding at the end 
                the following:
    ``(d) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standards established by 
paragraphs (11) through (13) of section 111(d) in the case of 
any electric utility in a State if, before the enactment of 
this subsection--
            ``(1) the State has implemented for such utility 
        the standard concerned (or a comparable standard);
            ``(2) the State regulatory authority for such State 
        or relevant nonregulated electric utility has conducted 
        a proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility; 
        or
            ``(3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility.''.
                    (B) Cross reference.--Section 124 of such 
                Act (16 U.S.C. 2634) is amended by adding the 
                following at the end thereof: ``In the case of 
                each standard established by paragraphs (11) 
                through (13) of section 111(d), the reference 
                contained in this subsection to the date of 
                enactment of this Act shall be deemed to be a 
                reference to the date of enactment of such 
                paragraphs (11) through (13).''.

SEC. 1252. SMART METERING.

    (a) In General.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 
by adding at the end the following:
            ``(14) Time-based metering and communications.--(A) 
        Not later than 18 months after the date of enactment of 
        this paragraph, each electric utility shall offer each 
        of its customer classes, and provide individual 
        customers upon customer request, a time-based rate 
        schedule under which the rate charged by the electric 
        utility varies during different time periods and 
        reflects the variance, if any, in the utility's costs 
        of generating and purchasing electricity at the 
        wholesale level. The time-based rate schedule shall 
        enable the electric consumer to manage energy use and 
        cost through advanced metering and communications 
        technology.
            ``(B) The types of time-based rate schedules that 
        may be offered under the schedule referred to in 
        subparagraph (A) include, among others--
                    ``(i) time-of-use pricing whereby 
                electricity prices are set for a specific time 
                period on an advance or forward basis, 
                typically not changing more often than twice a 
                year, based on the utility's cost of generating 
                and/or purchasing such electricity at the 
                wholesale level for the benefit of the 
                consumer. Prices paid for energy consumed 
                during these periods shall be pre-established 
                and known to consumers in advance of such 
                consumption, allowing them to vary their demand 
                and usage in response to such prices and manage 
                their energy costs by shifting usage to a lower 
                cost period or reducing their consumption 
                overall;
                    ``(ii) critical peak pricing whereby time-
                of-use prices are in effect except for certain 
                peak days, when prices may reflect the costs of 
                generating and/or purchasing electricity at the 
                wholesale level and when consumers may receive 
                additional discounts for reducing peak period 
                energy consumption;
                    ``(iii) real-time pricing whereby 
                electricity prices are set for a specific time 
                period on an advanced or forward basis, 
                reflecting the utility's cost of generating 
                and/or purchasing electricity at the wholesale 
                level, and may change as often as hourly; and
                    ``(iv) credits for consumers with large 
                loads who enter into pre-established peak load 
                reduction agreements that reduce a utility's 
                planned capacity obligations.
            ``(C) Each electric utility subject to subparagraph 
        (A) shall provide each customer requesting a time-based 
        rate with a time-based meter capable of enabling the 
        utility and customer to offer and receive such rate, 
        respectively.
            ``(D) For purposes of implementing this paragraph, 
        any reference contained in this section to the date of 
        enactment of the Public Utility Regulatory Policies Act 
        of 1978 shall be deemed to be a reference to the date 
        of enactment of this paragraph.
            ``(E) In a State that permits third-party marketers 
        to sell electric energy to retail electric consumers, 
        such consumers shall be entitled to receive the same 
        time-based metering and communications device and 
        service as a retail electric consumer of the electric 
        utility.
            ``(F) Notwithstanding subsections (b) and (c) of 
        section 112, each State regulatory authority shall, not 
        later than 18 months after the date of enactment of 
        this paragraph conduct an investigation in accordance 
        with section 115(i) and issue a decision whether it is 
        appropriate to implement the standards set out in 
        subparagraphs (A) and (C).''.
    (b) State Investigation of Demand Response and Time-Based 
Metering.--Section 115 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
            (1) By inserting in subsection (b) after the phrase 
        ``the standard for time-of-day rates established by 
        section 111(d)(3)'' the following: ``and the standard 
        for time-based metering and communications established 
        by section 111(d)(14)''.
            (2) By inserting in subsection (b) after the phrase 
        ``are likely to exceed the metering'' the following: 
        ``and communications''.
            (3) By adding the at the end the following:
    ``(i) Time-Based Metering and Communications.--In making a 
determination with respect to the standard established by 
section 111(d)(14), the investigation requirement of section 
111(d)(14)(F) shall be as follows: Each State regulatory 
authority shall conduct an investigation and issue a decision 
whether or not it is appropriate for electric utilities to 
provide and install time-based meters and communications 
devices for each of their customers which enable such customers 
to participate in time-based pricing rate schedules and other 
demand response programs.''.
    (c) Federal Assistance on Demand Response.--Section 132(a) 
of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2642(a)) is amended by striking ``and'' at the end of 
paragraph (3), striking the period at the end of paragraph (4) 
and inserting ``; and'', and by adding the following at the end 
thereof:
            ``(5) technologies, techniques, and rate-making 
        methods related to advanced metering and communications 
        and the use of these technologies, techniques and 
        methods in demand response programs.''.
    (d) Federal Guidance.--Section 132 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended by 
adding the following at the end thereof:
    ``(d) Demand Response.--The Secretary shall be responsible 
for--
            ``(1) educating consumers on the availability, 
        advantages, and benefits of advanced metering and 
        communications technologies, including the funding of 
        demonstration or pilot projects;
            ``(2) working with States, utilities, other energy 
        providers and advanced metering and communications 
        experts to identify and address barriers to the 
        adoption of demand response programs; and
            ``(3) not later than 180 days after the date of 
        enactment of the Energy Policy Act of 2005, providing 
        Congress with a report that identifies and quantifies 
        the national benefits of demand response and makes a 
        recommendation on achieving specific levels of such 
        benefits by January 1, 2007.''.
    (e) Demand Response and Regional Coordination.--
            (1) In general.--It is the policy of the United 
        States to encourage States to coordinate, on a regional 
        basis, State energy policies to provide reliable and 
        affordable demand response services to the public.
            (2) Technical assistance.--The Secretary shall 
        provide technical assistance to States and regional 
        organizations formed by 2 or more States to assist them 
        in--
                    (A) identifying the areas with the greatest 
                demand response potential;
                    (B) identifying and resolving problems in 
                transmission and distribution networks, 
                including through the use of demand response;
                    (C) developing plans and programs to use 
                demand response to respond to peak demand or 
                emergency needs; and
                    (D) identifying specific measures consumers 
                can take to participate in these demand 
                response programs.
            (3) Report.--Not later than 1 year after the date 
        of enactment of the Energy Policy Act of 2005, the 
        Commission shall prepare and publish an annual report, 
        by appropriate region, that assesses demand response 
        resources, including those available from all consumer 
        classes, and which identifies and reviews--
                    (A) saturation and penetration rate of 
                advanced meters and communications 
                technologies, devices and systems;
                    (B) existing demand response programs and 
                time-based rate programs;
                    (C) the annual resource contribution of 
                demand resources;
                    (D) the potential for demand response as a 
                quantifiable, reliable resource for regional 
                planning purposes;
                    (E) steps taken to ensure that, in regional 
                transmission planning and operations, demand 
                resources are provided equitable treatment as a 
                quantifiable, reliable resource relative to the 
                resource obligations of any load-serving 
                entity, transmission provider, or transmitting 
                party; and
                    (F) regulatory barriers to improved 
                customer participation in demand response, peak 
                reduction and critical period pricing programs.
    (f) Federal Encouragement of Demand Response Devices.--It 
is the policy of the United States that time-based pricing and 
other forms of demand response, whereby electricity customers 
are provided with electricity price signals and the ability to 
benefit by responding to them, shall be encouraged, the 
deployment of such technology and devices that enable 
electricity customers to participate in such pricing and demand 
response systems shall be facilitated, and unnecessary barriers 
to demand response participation in energy, capacity and 
ancillary service markets shall be eliminated. It is further 
the policy of the United States that the benefits of such 
demand response that accrue to those not deploying such 
technology and devices, but who are part of the same regional 
electricity entity, shall be recognized.
    (g) Time Limitations.--Section 112(b) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
by adding at the end the following:
            ``(4)(A) Not later than 1 year after the enactment 
        of this paragraph, each State regulatory authority 
        (with respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated electric 
        utility shall commence the consideration referred to in 
        section 111, or set a hearing date for such 
        consideration, with respect to the standard established 
        by paragraph (14) of section 111(d).
            ``(B) Not later than 2 years after the date of the 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority), and each 
        nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to the standard 
        established by paragraph (14) of section 111(d).''.
    (h) Failure to Comply.--Section 112(c) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
amended by adding at the end the following:
    ``In the case of the standard established by paragraph (14) 
of section 111(d), the reference contained in this subsection 
to the date of enactment of this Act shall be deemed to be a 
reference to the date of enactment of such paragraph (14).''.
    (i) Prior State Actions Regarding Smart Metering 
Standards.--
            (1) In general.--Section 112 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622) is 
        amended by adding at the end the following:
    ``(e) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (14) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
            ``(1) the State has implemented for such utility 
        the standard concerned (or a comparable standard);
            ``(2) the State regulatory authority for such State 
        or relevant nonregulated electric utility has conducted 
        a proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility 
        within the previous 3 years; or
            ``(3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility within the previous 3 
        years.''.
            (2) Cross reference.--Section 124 of such Act (16 
        U.S.C. 2634) is amended by adding the following at the 
        end thereof: ``In the case of the standard established 
        by paragraph (14) of section 111(d), the reference 
        contained in this subsection to the date of enactment 
        of this Act shall be deemed to be a reference to the 
        date of enactment of such paragraph (14).''.

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

    (a) Termination of Mandatory Purchase and Sale 
Requirements.--Section 210 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding at 
the end the following:
    ``(m) Termination of Mandatory Purchase and Sale 
Requirements.--
            ``(1) Obligation to purchase.--After the date of 
        enactment of this subsection, no electric utility shall 
        be required to enter into a new contract or obligation 
        to purchase electric energy from a qualifying 
        cogeneration facility or a qualifying small power 
        production facility under this section if the 
        Commission finds that the qualifying cogeneration 
        facility or qualifying small power production facility 
        has nondiscriminatory access to--
                    ``(A)(i) independently administered, 
                auction-based day ahead and real time wholesale 
                markets for the sale of electric energy; and 
                (ii) wholesale markets for long-term sales of 
                capacity and electric energy; or
                    ``(B)(i) transmission and interconnection 
                services that are provided by a Commission-
                approved regional transmission entity and 
                administered pursuant to an open access 
                transmission tariff that affords 
                nondiscriminatory treatment to all customers; 
                and (ii) competitive wholesale markets that 
                provide a meaningful opportunity to sell 
                capacity, including long-term and short-term 
                sales, and electric energy, including long-
                term, short-term and real-time sales, to buyers 
                other than the utility to which the qualifying 
                facility is interconnected. In determining 
                whether a meaningful opportunity to sell 
                exists, the Commission shall consider, among 
                other factors, evidence of transactions within 
                the relevant market; or
                    ``(C) wholesale markets for the sale of 
                capacity and electric energy that are, at a 
                minimum, of comparable competitive quality as 
                markets described in subparagraphs (A) and (B).
            ``(2) Revised purchase and sale obligation for new 
        facilities.--(A) After the date of enactment of this 
        subsection, no electric utility shall be required 
        pursuant to this section to enter into a new contract 
        or obligation to purchase from or sell electric energy 
        to a facility that is not an existing qualifying 
        cogeneration facility unless the facility meets the 
        criteria for qualifying cogeneration facilities 
        established by the Commission pursuant to the 
        rulemaking required by subsection (n).
            ``(B) For the purposes of this paragraph, the term 
        `existing qualifying cogeneration facility' means a 
        facility that--
                    ``(i) was a qualifying cogeneration 
                facility on the date of enactment of subsection 
                (m); or
                    ``(ii) had filed with the Commission a 
                notice of self-certification, self-
                recertification or an application for 
                Commission certification under 18 C.F.R. 
                292.207 prior to the date on which the 
                Commission issues the final rule required by 
                subsection (n).
            ``(3) Commission review.--Any electric utility may 
        file an application with the Commission for relief from 
        the mandatory purchase obligation pursuant to this 
        subsection on a service territory-wide basis. Such 
        application shall set forth the factual basis upon 
        which relief is requested and describe why the 
        conditions set forth in subparagraphs (A), (B) or (C) 
        of paragraph (1) of this subsection have been met. 
        After notice, including sufficient notice to 
        potentially affected qualifying cogeneration facilities 
        and qualifying small power production facilities, and 
        an opportunity for comment, the Commission shall make a 
        final determination within 90 days of such application 
        regarding whether the conditions set forth in 
        subparagraphs (A), (B) or (C) of paragraph (1) have 
        been met.
            ``(4) Reinstatement of obligation to purchase.--At 
        any time after the Commission makes a finding under 
        paragraph (3) relieving an electric utility of its 
        obligation to purchase electric energy, a qualifying 
        cogeneration facility, a qualifying small power 
        production facility, a State agency, or any other 
        affected person may apply to the Commission for an 
        order reinstating the electric utility's obligation to 
        purchase electric energy under this section. Such 
        application shall set forth the factual basis upon 
        which the application is based and describe why the 
        conditions set forth in subparagraphs (A), (B) or (C) 
        of paragraph (1) of this subsection are no longer met. 
        After notice, including sufficient notice to 
        potentially affected utilities, and opportunity for 
        comment, the Commission shall issue an order within 90 
        days of such application reinstating the electric 
        utility's obligation to purchase electric energy under 
        this section if the Commission finds that the 
        conditions set forth in subparagraphs (A), (B) or (C) 
        of paragraph (1) which relieved the obligation to 
        purchase, are no longer met.
            ``(5) Obligation to sell.--After the date of 
        enactment of this subsection, no electric utility shall 
        be required to enter into a new contract or obligation 
        to sell electric energy to a qualifying cogeneration 
        facility or a qualifying small power production 
        facility under this section if the Commission finds 
        that--
                    ``(A) competing retail electric suppliers 
                are willing and able to sell and deliver 
                electric energy to the qualifying cogeneration 
                facility or qualifying small power production 
                facility; and
                    ``(B) the electric utility is not required 
                by State law to sell electric energy in its 
                service territory.
            ``(6) No effect on existing rights and remedies.--
        Nothing in this subsection affects the rights or 
        remedies of any party under any contract or obligation, 
        in effect or pending approval before the appropriate 
        State regulatory authority or non-regulated electric 
        utility on the date of enactment of this subsection, to 
        purchase electric energy or capacity from or to sell 
        electric energy or capacity to a qualifying 
        cogeneration facility or qualifying small power 
        production facility under this Act (including the right 
        to recover costs of purchasing electric energy or 
        capacity).
            ``(7) Recovery of costs.--(A) The Commission shall 
        issue and enforce such regulations as are necessary to 
        ensure that an electric utility that purchases electric 
        energy or capacity from a qualifying cogeneration 
        facility or qualifying small power production facility 
        in accordance with any legally enforceable obligation 
        entered into or imposed under this section recovers all 
        prudently incurred costs associated with the purchase.
            ``(B) A regulation under subparagraph (A) shall be 
        enforceable in accordance with the provisions of law 
        applicable to enforcement of regulations under the 
        Federal Power Act (16 U.S.C. 791a et seq.).
    ``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not 
later than 180 days after the date of enactment of this 
section, the Commission shall issue a rule revising the 
criteria in 18 C.F.R. 292.205 for new qualifying cogeneration 
facilities seeking to sell electric energy pursuant to section 
210 of this Act to ensure--
            ``(i) that the thermal energy output of a new 
        qualifying cogeneration facility is used in a 
        productive and beneficial manner;
            ``(ii) the electrical, thermal, and chemical output 
        of the cogeneration facility is used fundamentally for 
        industrial, commercial, or institutional purposes and 
        is not intended fundamentally for sale to an electric 
        utility, taking into account technological, efficiency, 
        economic, and variable thermal energy requirements, as 
        well as State laws applicable to sales of electric 
        energy from a qualifying facility to its host facility; 
        and
            ``(iii) continuing progress in the development of 
        efficient electric energy generating technology.
    ``(B) The rule issued pursuant to paragraph (1)(A) of this 
subsection shall be applicable only to facilities that seek to 
sell electric energy pursuant to section 210 of this Act. For 
all other purposes, except as specifically provided in 
subsection (m)(2)(A), qualifying facility status shall be 
determined in accordance with the rules and regulations of this 
Act.
    ``(2) Notwithstanding rule revisions under paragraph (1), 
the Commission's criteria for qualifying cogeneration 
facilities in effect prior to the date on which the Commission 
issues the final rule required by paragraph (1) shall continue 
to apply to any cogeneration facility that--
            ``(A) was a qualifying cogeneration facility on the 
        date of enactment of subsection (m), or
            ``(B) had filed with the Commission a notice of 
        self-certification, self-recertification or an 
        application for Commission certification under 18 
        C.F.R. 292.207 prior to the date on which the 
        Commission issues the final rule required by paragraph 
        (1).''.
    (b) Elimination of Ownership Limitations.--
            (1) Qualifying small power production facility.--
        Section 3(17)(C) of the Federal Power Act (16 U.S.C. 
        796(17)(C)) is amended to read as follows:
                    ``(C) `qualifying small power production 
                facility' means a small power production 
                facility that the Commission determines, by 
                rule, meets such requirements (including 
                requirements respecting fuel use, fuel 
                efficiency, and reliability) as the Commission 
                may, by rule, prescribe;''.
            (2) Qualifying cogeneration facility.--Section 
        3(18)(B) of the Federal Power Act (16 U.S.C. 
        796(18)(B)) is amended to read as follows:
                    ``(B) `qualifying cogeneration facility' 
                means a cogeneration facility that the 
                Commission determines, by rule, meets such 
                requirements (including requirements respecting 
                minimum size, fuel use, and fuel efficiency) as 
                the Commission may, by rule, prescribe;''.

SEC. 1254. INTERCONNECTION.

    (a) Adoption of Standards.--Section 111(d) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621 (d)) is 
amended by adding at the end the following:
            ``(15) Interconnection.--Each electric utility 
        shall make available, upon request, interconnection 
        service to any electric consumer that the electric 
        utility serves. For purposes of this paragraph, the 
        term `interconnection service' means service to an 
        electric consumer under which an on-site generating 
        facility on the consumer's premises shall be connected 
        to the local distribution facilities. Interconnection 
        services shall be offered based upon the standards 
        developed by the Institute of Electrical and 
        Electronics Engineers: IEEE Standard 1547 for 
        Interconnecting Distributed Resources with Electric 
        Power Systems, as they may be amended from time to 
        time. In addition, agreements and procedures shall be 
        established whereby the services are offered shall 
        promote current best practices of interconnection for 
        distributed generation, including but not limited to 
        practices stipulated in model codes adopted by 
        associations of state regulatory agencies. All such 
        agreements and procedures shall be just and reasonable, 
        and not unduly discriminatory or preferential.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2622(b)) is amended by adding at the end the following:
            ``(5)(A) Not later than one year after the 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority) and each 
        nonregulated utility shall commence the consideration 
        referred to in section 111, or set a hearing date for 
        consideration, with respect to the standard established 
        by paragraph (15) of section 111(d).
            ``(B) Not later than two years after the date of 
        the enactment of the this paragraph, each State 
        regulatory authority (with respect to each electric 
        utility for which it has ratemaking authority), and 
        each nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to each 
        standard established by paragraph (15) of section 
        111(d).''.
            (2) Failure to comply.--Section 112(d) of the 
        Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2622 (c)) is amended by adding at the end the 
        following: ``In the case of the standard established by 
        paragraph (15), the reference contained in this 
        subsection to the date of enactment of this Act shall 
        be deemed to be a reference to the date of enactment of 
        paragraph (15).''.
            (3) Prior state actions.--
                    (A) In general.--Section 112 of the Public 
                Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2622) is amended by adding at the end 
                the following:
    ``(f) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (15) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
            ``(1) the State has implemented for such utility 
        the standard concerned (or a comparable standard);
            ``(2) the State regulatory authority for such State 
        or relevant nonregulated electric utility has conducted 
        a proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility; 
        or
            ``(3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility.''.
                    (B) Cross reference.--Section 124 of such 
                Act (16 U.S.C. 2634) is amended by adding the 
                following at the end thereof: ``In the case of 
                each standard established by paragraph (15) of 
                section 111(d), the reference contained in this 
                subsection to the date of enactment of the Act 
                shall be deemed to be a reference to the date 
                of enactment of paragraph (15).''.

                      Subtitle F--Repeal of PUHCA

SEC. 1261. SHORT TITLE.

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

SEC. 1262. DEFINITIONS.

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

SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

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

SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.

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

SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Upon the written request of a State 
commission having jurisdiction to regulate a public-utility 
company in a holding company system, the holding company or any 
associate company or affiliate thereof, other than such public-
utility company, wherever located, shall produce for inspection 
books, accounts, memoranda, and other records that--
            (1) have been identified in reasonable detail in a 
        proceeding before the State commission;
            (2) the State commission determines are relevant to 
        costs incurred by such public-utility company; and
            (3) are necessary for the effective discharge of 
        the responsibilities of the State commission with 
        respect to such proceeding.
    (b) Limitation.--Subsection (a) does not apply to any 
person that is a holding company solely by reason of ownership 
of 1 or more qualifying facilities under the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.).
    (c) Confidentiality of Information.--The production of 
books, accounts, memoranda, and other records under subsection 
(a) shall be subject to such terms and conditions as may be 
necessary and appropriate to safeguard against unwarranted 
disclosure to the public of any trade secrets or sensitive 
commercial information.
    (d) Effect on State Law.--Nothing in this section shall 
preempt applicable State law concerning the provision of books, 
accounts, memoranda, and other records, or in any way limit the 
rights of any State to obtain books, accounts, memoranda, and 
other records under any other Federal law, contract, or 
otherwise.
    (e) Court Jurisdiction.--Any United States district court 
located in the State in which the State commission referred to 
in subsection (a) is located shall have jurisdiction to enforce 
compliance with this section.

SEC. 1266. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the effective 
date of this subtitle, the Commission shall issue a final rule 
to exempt from the requirements of section 1264 (relating to 
Federal access to books and records) any person that is a 
holding company, solely with respect to 1 or more--
            (1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 
        seq.);
            (2) exempt wholesale generators; or
            (3) foreign utility companies.
    (b) Other Authority.--The Commission shall exempt a person 
or transaction from the requirements of section 1264 (relating 
to Federal access to books and records) if, upon application or 
upon the motion of the Commission--
            (1) the Commission finds that the books, accounts, 
        memoranda, and other records of any person are not 
        relevant to the jurisdictional rates of a public 
        utility or natural gas company; or
            (2) the Commission finds that any class of 
        transactions is not relevant to the jurisdictional 
        rates of a public utility or natural gas company.

SEC. 1267. AFFILIATE TRANSACTIONS.

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

SEC. 1268. APPLICABILITY.

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

SEC. 1269. EFFECT ON OTHER REGULATIONS.

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

SEC. 1270. ENFORCEMENT.

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

SEC. 1271. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this subtitle, or otherwise in 
the Public Utility Holding Company Act of 1935, or rules, 
regulations, or orders thereunder, prohibits a person from 
engaging in or continuing to engage in activities or 
transactions in which it is legally engaged or authorized to 
engage on the date of enactment of this Act, if that person 
continues to comply with the terms (other than an expiration 
date or termination date) of any such authorization, whether by 
rule or by order.
    (b) Effect on Other Commission Authority.--Nothing in this 
subtitle limits the authority of the Commission under the 
Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas 
Act (15 U.S.C. 717 et seq.).
    (c) Tax Treatment.--Tax treatment under section 1081 of the 
Internal Revenue Code of 1986 as a result of transactions 
ordered in compliance with the Public Utility Holding Company 
Act of 1935 (15 U.S.C. 79 et seq.) shall not be affected in any 
manner due to the repeal of that Act and the enactment of the 
Public Utility Holding Company Act of 2005.

SEC. 1272. IMPLEMENTATION.

    Not later than 4 months after the date of enactment of this 
subtitle, the Commission shall--
            (1) issue such regulations as may be necessary or 
        appropriate to implement this subtitle (other than 
        section 1265, relating to State access to books and 
        records); and
            (2) submit to Congress detailed recommendations on 
        technical and conforming amendments to Federal law 
        necessary to carry out this subtitle and the amendments 
        made by this subtitle.

SEC. 1273. TRANSFER OF RESOURCES.

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

SEC. 1274. EFFECTIVE DATE.

    (a) In General.--Except for section 1272 (relating to 
implementation), this subtitle shall take effect 6 months after 
the date of enactment of this subtitle.
    (b) Compliance With Certain Rules.--If the Commission 
approves and makes effective any final rulemaking modifying the 
standards of conduct governing entities that own, operate, or 
control facilities for transmission of electricity in 
interstate commerce or transportation of natural gas in 
interstate commerce prior to the effective date of this 
subtitle, any action taken by a public-utility company or 
utility holding company to comply with the requirements of such 
rulemaking shall not subject such public-utility company or 
utility holding company to any regulatory requirement 
applicable to a holding company under the Public Utility 
Holding Company Act of 1935 (15 U.S.C. 79 et seq.).

SEC. 1275. SERVICE ALLOCATION.

    (a) Definition of Public Utility.--In this section, the 
term ``public utility'' has the meaning given the term in 
section 201(e) of the Federal Power Act (16 U.S.C. 824(e)).
    (b) FERC Review.--In the case of non-power goods or 
administrative or management services provided by an associate 
company organized specifically for the purpose of providing 
such goods or services to any public utility in the same 
holding company system, at the election of the system or a 
State commission having jurisdiction over the public utility, 
the Commission, after the effective date of this subtitle, 
shall review and authorize the allocation of the costs for such 
goods or services to the extent relevant to that associate 
company.
    (c) Effect on Federal and State Law.--Nothing in this 
section shall affect the authority of the Commission or a State 
commission under other applicable law.
    (d) Rules.--Not later than 4 months after the date of 
enactment of this Act, the Commission shall issue rules (which 
rules shall be effective no earlier than the effective date of 
this subtitle) to exempt from the requirements of this section 
any company in a holding company system whose public utility 
operations are confined substantially to a single State and any 
other class of transactions that the Commission finds is not 
relevant to the jurisdictional rates of a public utility.

SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

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

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

SEC. 1281. ELECTRICITY MARKET TRANSPARENCY.

    Part II of the Federal Power Act is amended by adding at 
the end the following:

``SEC. 220. ELECTRICITY MARKET TRANSPARENCY RULES.

    ``(a)(1) The Commission is directed to facilitate price 
transparency in markets for the sale and transmission of 
electric energy in interstate commerce, having due regard for 
the public interest, the integrity of those markets, fair 
competition, and the protection of consumers.
    ``(2) The Commission may prescribe such rules as the 
Commission determines necessary and appropriate to carry out 
the purposes of this section. The rules shall provide for the 
dissemination, on a timely basis, of information about the 
availability and prices of wholesale electric energy and 
transmission service to the Commission, State commissions, 
buyers and sellers of wholesale electric energy, users of 
transmission services, and the public.
    ``(3) The Commission may--
            ``(A) obtain the information described in paragraph 
        (2) from any market participant; and
            ``(B) rely on entities other than the Commission to 
        receive and make public the information, subject to the 
        disclosure rules in subsection (b).
    ``(4) In carrying out this section, the Commission shall 
consider the degree of price transparency provided by existing 
price publishers and providers of trade processing services, 
and shall rely on such publishers and services to the maximum 
extent possible. The Commission may establish an electronic 
information system if it determines that existing price 
publications are not adequately providing price discovery or 
market transparency. Nothing in this section, however, shall 
affect any electronic information filing requirements in effect 
under this Act as of the date of enactment of this section.
    ``(b)(1) Rules described in subsection (a)(2), if adopted, 
shall exempt from disclosure information the Commission 
determines would, if disclosed, be detrimental to the operation 
of an effective market or jeopardize system security.
    ``(2) In determining the information to be made available 
under this section and time to make the information available, 
the Commission shall seek to ensure that consumers and 
competitive markets are protected from the adverse effects of 
potential collusion or other anticompetitive behaviors that can 
be facilitated by untimely public disclosure of transaction-
specific information.
    ``(c)(1) Within 180 days of enactment of this section, the 
Commission shall conclude a memorandum of understanding with 
the Commodity Futures Trading Commission relating to 
information sharing, which shall include, among other things, 
provisions ensuring that information requests to markets within 
the respective jurisdiction of each agency are properly 
coordinated to minimize duplicative information requests, and 
provisions regarding the treatment of proprietary trading 
information.
    ``(2) Nothing in this section may be construed to limit or 
affect the exclusive jurisdiction of the Commodity Futures 
Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 
et seq.).
    ``(d) The Commission shall not require entities who have a 
de minimis market presence to comply with the reporting 
requirements of this section.
    ``(e)(1) Except as provided in paragraph (2), no person 
shall be subject to any civil penalty under this section with 
respect to any violation occurring more than 3 years before the 
date on which the person is provided notice of the proposed 
penalty under section 316A.
    ``(2) Paragraph (1) shall not apply in any case in which 
the Commission finds that a seller that has entered into a 
contract for the sale of electric energy at wholesale or 
transmission service subject to the jurisdiction of the 
Commission has engaged in fraudulent market manipulation 
activities materially affecting the contract in violation of 
section 222.
    ``(f) This section shall not apply to a transaction for the 
purchase or sale of wholesale electric energy or transmission 
services within the area described in section 212(k)(2)(A).''.

SEC. 1282. FALSE STATEMENTS.

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

``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.

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

SEC. 1283. MARKET MANIPULATION.

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

``SEC. 222. PROHIBITION OF ENERGY MARKET MANIPULATION.

    ``(a) In General.--It shall be unlawful for any entity 
(including an entity described in section 201(f)), directly or 
indirectly, to use or employ, in connection with the purchase 
or sale of electric energy or the purchase or sale of 
transmission services subject to the jurisdiction of the 
Commission, any manipulative or deceptive device or contrivance 
(as those terms are used in section 10(b) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78j(b))), in contravention of 
such rules and regulations as the Commission may prescribe as 
necessary or appropriate in the public interest or for the 
protection of electric ratepayers.
    ``(b) No Private Right of Action.--Nothing in this section 
shall be construed to create a private right of action.''.

SEC. 1284. ENFORCEMENT.

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

SEC. 1285. REFUND EFFECTIVE DATE.

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

SEC. 1286. REFUND AUTHORITY.

    Section 206 of the Federal Power Act (16 U.S.C. 824e) is 
amended by adding at the end the following:
    ``(e)(1) In this subsection:
            ``(A) The term `short-term sale' means an agreement 
        for the sale of electric energy at wholesale in 
        interstate commerce that is for a period of 31 days or 
        less (excluding monthly contracts subject to automatic 
        renewal).
            ``(B) The term `applicable Commission rule' means a 
        Commission rule applicable to sales at wholesale by 
        public utilities that the Commission determines after 
        notice and comment should also be applicable to 
        entities subject to this subsection.
    ``(2) If an entity described in section 201(f) voluntarily 
makes a short-term sale of electric energy through an organized 
market in which the rates for the sale are established by 
Commission-approved tariff (rather than by contract) and the 
sale violates the terms of the tariff or applicable Commission 
rules in effect at the time of the sale, the entity shall be 
subject to the refund authority of the Commission under this 
section with respect to the violation.
    ``(3) This section shall not apply to--
            ``(A) any entity that sells in total (including 
        affiliates of the entity) less than 8,000,000 megawatt 
        hours of electricity per year; or
            ``(B) an electric cooperative.
    ``(4)(A) The Commission shall have refund authority under 
paragraph (2) with respect to a voluntary short term sale of 
electric energy by the Bonneville Power Administration only if 
the sale is at an unjust and unreasonable rate.
    ``(B) The Commission may order a refund under subparagraph 
(A) only for short-term sales made by the Bonneville Power 
Administration at rates that are higher than the highest just 
and reasonable rate charged by any other entity for a short-
term sale of electric energy in the same geographic market for 
the same, or most nearly comparable, period as the sale by the 
Bonneville Power Administration.
    ``(C) In the case of any Federal power marketing agency or 
the Tennessee Valley Authority, the Commission shall not assert 
or exercise any regulatory authority or power under paragraph 
(2) other than the ordering of refunds to achieve a just and 
reasonable rate.''.

SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

    (a) Privacy.--The Federal Trade Commission may issue rules 
protecting the privacy of electric consumers from the 
disclosure of consumer information obtained in connection with 
the sale or delivery of electric energy to electric consumers.
    (b) Slamming.--The Federal Trade Commission may issue rules 
prohibiting the change of selection of an electric utility 
except with the informed consent of the electric consumer or if 
approved by the appropriate State regulatory authority.
    (c) Cramming.--The Federal Trade Commission may issue rules 
prohibiting the sale of goods and services to an electric 
consumer unless expressly authorized by law or the electric 
consumer.
    (d) Rulemaking.--The Federal Trade Commission shall proceed 
in accordance with section 553 of title 5, United States Code, 
when prescribing a rule under this section.
    (e) State Authority.--If the Federal Trade Commission 
determines that a State's regulations provide equivalent or 
greater protection than the provisions of this section, such 
State regulations shall apply in that State in lieu of the 
regulations issued by the Commission under this section.
    (f) Definitions.--For purposes of this section:
            (1) State regulatory authority.--The term ``State 
        regulatory authority'' has the meaning given that term 
        in section 3(21) of the Federal Power Act (16 U.S.C. 
        796(21)).
            (2) Electric consumer and electric utility.--The 
        terms ``electric consumer'' and ``electric utility'' 
        have the meanings given those terms in section 3 of the 
        Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2602).

SEC. 1288. AUTHORITY OF COURT TO PROHIBIT INDIVIDUALS FROM SERVING AS 
                    OFFICERS, DIRECTORS, AND ENERGY TRADERS.

    Section 314 of the Federal Power Act (16 U.S.C. 825m) is 
amended by adding at the end the following:
    ``(d) In any proceedings under subsection (a), the court 
may prohibit, conditionally or unconditionally, and permanently 
or for such period of time as the court determines, any 
individual who is engaged or has engaged in practices 
constituting a violation of section 221 (and related rules and 
regulations) from--
            ``(1) acting as an officer or director of an 
        electric utility; or
            ``(2) engaging in the business of purchasing or 
        selling--
                    ``(A) electric energy; or
                    ``(B) transmission services subject to the 
                jurisdiction of the Commission.''.

SEC. 1289. MERGER REVIEW REFORM.

    (a) In General.--Section 203(a) of the Federal Power Act 
(16 U.S.C. 824b(a)) is amended to read as follows:
    ``(a)(1) No public utility shall, without first having 
secured an order of the Commission authorizing it to do so--
            ``(A) sell, lease, or otherwise dispose of the 
        whole of its facilities subject to the jurisdiction of 
        the Commission, or any part thereof of a value in 
        excess of $10,000,000;
            ``(B) merge or consolidate, directly or indirectly, 
        such facilities or any part thereof with those of any 
        other person, by any means whatsoever;
            ``(C) purchase, acquire, or take any security with 
        a value in excess of $10,000,000 of any other public 
        utility; or
            ``(D) purchase, lease, or otherwise acquire an 
        existing generation facility--
                    ``(i) that has a value in excess of 
                $10,000,000; and
                    ``(ii) that is used for interstate 
                wholesale sales and over which the Commission 
                has jurisdiction for ratemaking purposes.
    ``(2) No holding company in a holding company system that 
includes a transmitting utility or an electric utility shall 
purchase, acquire, or take any security with a value in excess 
of $10,000,000 of, or, by any means whatsoever, directly or 
indirectly, merge or consolidate with, a transmitting utility, 
an electric utility company, or a holding company in a holding 
company system that includes a transmitting utility, or an 
electric utility company, with a value in excess of $10,000,000 
without first having secured an order of the Commission 
authorizing it to do so.
    ``(3) Upon receipt of an application for such approval the 
Commission shall give reasonable notice in writing to the 
Governor and State commission of each of the States in which 
the physical property affected, or any part thereof, is 
situated, and to such other persons as it may deem advisable.
    ``(4) After notice and opportunity for hearing, the 
Commission shall approve the proposed disposition, 
consolidation, acquisition, or change in control, if it finds 
that the proposed transaction will be consistent with the 
public interest, and will not result in cross-subsidization of 
a non-utility associate company or the pledge or encumbrance of 
utility assets for the benefit of an associate company, unless 
the Commission determines that the cross-subsidization, pledge, 
or encumbrance will be consistent with the public interest.
    ``(5) The Commission shall, by rule, adopt procedures for 
the expeditious consideration of applications for the approval 
of dispositions, consolidations, or acquisitions, under this 
section. Such rules shall identify classes of transactions, or 
specify criteria for transactions, that normally meet the 
standards established in paragraph (4). The Commission shall 
provide expedited review for such transactions. The Commission 
shall grant or deny any other application for approval of a 
transaction not later than 180 days after the application is 
filed. If the Commission does not act within 180 days, such 
application shall be deemed granted unless the Commission 
finds, based on good cause, that further consideration is 
required to determine whether the proposed transaction meets 
the standards of paragraph (4) and issues an order tolling the 
time for acting on the application for not more than 180 days, 
at the end of which additional period the Commission shall 
grant or deny the application.
    ``(6) For purposes of this subsection, the terms `associate 
company', `holding company', and `holding company system' have 
the meaning given those terms in the Public Utility Holding 
Company Act of 2005.''.
    (b) Effective Date.--The amendments made by this section 
shall take effect 6 months after the date of enactment of this 
Act.
    (c) Transition Provision.--The amendments made by 
subsection (a) shall not apply to any application under section 
203 of the Federal Power Act (16 U.S.C. 824b) that was filed on 
or before the date of enactment of this Act.

SEC. 1290. RELIEF FOR EXTRAORDINARY VIOLATIONS.

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

                        Subtitle H--Definitions

SEC. 1291. DEFINITIONS.

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

            Subtitle I--Technical and Conforming Amendments

SEC. 1295. CONFORMING AMENDMENTS.

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

                     Subtitle J--Economic Dispatch

SEC. 1298. ECONOMIC DISPATCH.

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

``SEC. 223. JOINT BOARDS ON ECONOMIC DISPATCH.

    ``(a) In General.--The Commission shall convene joint 
boards on a regional basis pursuant to section 209 of this Act 
to study the issue of security constrained economic dispatch 
for the various market regions. The Commission shall designate 
the appropriate regions to be covered by each such joint board 
for purposes of this section.
    ``(b) Membership.--The Commission shall request each State 
to nominate a representative for the appropriate regional joint 
board, and shall designate a member of the Commission to chair 
and participate as a member of each such board.
    ``(c) Powers.--The sole authority of each joint board 
convened under this section shall be to consider issues 
relevant to what constitutes `security constrained economic 
dispatch' and how such a mode of operating an electric energy 
system affects or enhances the reliability and affordability of 
service to customers in the region concerned and to make 
recommendations to the Commission regarding such issues.
    ``(d) Report to the Congress.--Within one year after 
enactment of this section, the Commission shall issue a report 
and submit such report to the Congress regarding the 
recommendations of the joint boards under this section and the 
Commission may consolidate the recommendations of more than one 
such regional joint board, including any consensus 
recommendations for statutory or regulatory reform.''.

                TITLE XIII--ENERGY POLICY TAX INCENTIVES

SEC. 1300. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This title may be cited as the ``Energy 
Tax Incentives Act of 2005''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue 
Code of 1986.

                 Subtitle A--Electricity Infrastructure

SEC. 1301. EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY 
                    PRODUCTION CREDIT.

    (a) 2-Year Extension for Certain Facilities.--Section 45(d) 
(relating to qualified facilities) is amended--
            (1) by striking ``January 1, 2006'' each place it 
        appears in paragraphs (1), (2), (3), (5), (6), and (7) 
        and inserting ``January 1, 2008'', and
            (2) by striking ``January 1, 2006'' in paragraph 
        (4) and inserting ``January 1, 2008 (January 1, 2006, 
        in the case of a facility using solar energy)''.
    (b) Increase in Credit Period.--Section 45(b)(4)(B) 
(relating to credit period) is amended--
            (1) by inserting ``or clause (iii)'' after ``clause 
        (ii)'' in clause (i), and
            (2) by adding at the end the following:
                            ``(iii) Termination.--Clause (i) 
                        shall not apply to any facility placed 
                        in service after the date of the 
                        enactment of this clause.''.
    (c) Expansion of Qualified Resources to Certain 
Hydropower.--
            (1) In general.--Section 45(c)(1) (defining 
        qualified energy resources) is amended by striking 
        ``and'' at the end of subparagraph (F), by striking the 
        period at the end of subparagraph (G) and inserting ``, 
        and'', and by adding at the end the following new 
        subparagraph:
                    ``(H) qualified hydropower production.''.
            (2) Credit rate.--Section 45(b)(4)(A) (relating to 
        credit rate) is amended by striking ``or (7)'' and 
        inserting ``(7), or (9)''.
            (3) Definition of resources.--Section 45(c) 
        (relating to qualified energy resources and refined 
        coal) is amended by adding at the end the following new 
        paragraph:
            ``(8) Qualified hydropower production.--
                    ``(A) In general.--The term `qualified 
                hydropower production' means--
                            ``(i) in the case of any 
                        hydroelectric dam which was placed in 
                        service on or before the date of the 
                        enactment of this paragraph, the 
                        incremental hydropower production for 
                        the taxable year, and
                            ``(ii) in the case of any 
                        nonhydroelectric dam described in 
                        subparagraph (C), the hydropower 
                        production from the facility for the 
                        taxable year.
                    ``(B) Determination of incremental 
                hydropower production.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), incremental 
                        hydropower production for any taxable 
                        year shall be equal to the percentage 
                        of average annual hydropower production 
                        at the facility attributable to the 
                        efficiency improvements or additions of 
                        capacity placed in service after the 
                        date of the enactment of this 
                        paragraph, determined by using the same 
                        water flow information used to 
                        determine an historic average annual 
                        hydropower production baseline for such 
                        facility. Such percentage and baseline 
                        shall be certified by the Federal 
                        Energy Regulatory Commission.
                            ``(ii) Operational changes 
                        disregarded.--For purposes of clause 
                        (i), the determination of incremental 
                        hydropower production shall not be 
                        based on any operational changes at 
                        such facility not directly associated 
                        with the efficiency improvements or 
                        additions of capacity.
                    ``(C) Nonhydroelectric dam.--For purposes 
                of subparagraph (A), a facility is described in 
                this subparagraph if--
                            ``(i) the facility is licensed by 
                        the Federal Energy Regulatory 
                        Commission and meets all other 
                        applicable environmental, licensing, 
                        and regulatory requirements,
                            ``(ii) the facility was placed in 
                        service before the date of the 
                        enactment of this paragraph and did not 
                        produce hydroelectric power on the date 
                        of the enactment of this paragraph, and
                            ``(iii) turbines or other 
                        generating devices are to be added to 
                        the facility after such date to produce 
                        hydroelectric power, but only if there 
                        is not any enlargement of the diversion 
                        structure, or construction or 
                        enlargement of a bypass channel, or the 
                        impoundment or any withholding of any 
                        additional water from the natural 
                        stream channel.''.
            (4) Facilities.--Section 45(d) (relating to 
        qualified facilities) is amended by adding at the end 
        the following new paragraph:
            ``(9) Qualified hydropower facility.--In the case 
        of a facility producing qualified hydroelectric 
        production described in subsection (c)(8), the term 
        `qualified facility' means--
                    ``(A) in the case of any facility producing 
                incremental hydropower production, such 
                facility but only to the extent of its 
                incremental hydropower production attributable 
                to efficiency improvements or additions to 
                capacity described in subsection (c)(8)(B) 
                placed in service after the date of the 
                enactment of this paragraph and before January 
                1, 2008, and
                    ``(B) any other facility placed in service 
                after the date of the enactment of this 
                paragraph and before January 1, 2008.
                    ``(C) Credit period.--In the case of a 
                qualified facility described in subparagraph 
                (A), the 10-year period referred to in 
                subsection (a) shall be treated as beginning on 
                the date the efficiency improvements or 
                additions to capacity are placed in service.''.
    (d) Indian Coal.--
            (1) Production facilities.--Subsection (e) of 
        section 45 (relating to definitions and special rules) 
        is amended by adding at the end the following new 
        paragraph:
            ``(10) Indian coal production facilities.--
                    ``(A) Determination of credit amount.--In 
                the case of a producer of Indian coal, the 
                credit determined under this section (without 
                regard to this paragraph) for any taxable year 
                shall be increased by an amount equal to the 
                applicable dollar amount per ton of Indian 
                coal--
                            ``(i) produced by the taxpayer at 
                        an Indian coal production facility 
                        during the 7-year period beginning on 
                        January 1, 2006, and
                            ``(ii) sold by the taxpayer--
                                    ``(I) to an unrelated 
                                person, and
                                    ``(II) during such 7-year 
                                period and such taxable year.
                    ``(B) Applicable dollar amount.--
                            ``(i) In general.--The term 
                        `applicable dollar amount' for any 
                        taxable year beginning in a calendar 
                        year means--
                                    ``(I) $1.50 in the case of 
                                calendar years 2006 through 
                                2009, and
                                    ``(II) $2.00 in the case of 
                                calendar years beginning after 
                                2009.
                            ``(ii) Inflation adjustment.--In 
                        the case of any calendar year after 
                        2006, each of the dollar amounts under 
                        clause (i) shall be equal to the 
                        product of such dollar amount and the 
                        inflation adjustment factor determined 
                        under paragraph (2)(B) for the calendar 
                        year, except that such paragraph shall 
                        be applied by substituting `2005' for 
                        `1992'.
                    ``(C) Application of rules.--Rules similar 
                to the rules of the subsection (b)(3) and 
                paragraphs (1), (3), (4), and (5) of this 
                subsection shall apply for purposes of 
                determining the amount of any increase under 
                this paragraph.
                    ``(D) Treatment as specified credit.--The 
                increase in the credit determined under 
                subsection (a) by reason of this paragraph with 
                respect to any facility shall be treated as a 
                specified credit for purposes of section 
                38(c)(4)(A) during the 4-year period beginning 
                on the later of January 1, 2006, or the date on 
                which such facility is placed in service by the 
                taxpayer.''.
            (2) Resource.--Subsection (c) of section 45 
        (relating to qualified energy resources and refined 
        coal), as amended by this Act, is amended by adding at 
        the end the following new paragraph:
            ``(9) Indian coal.--
                    ``(A) In general.--The term `Indian coal' 
                means coal which is produced from coal reserves 
                which, on June 14, 2005--
                            ``(i) were owned by an Indian 
                        tribe, or
                            ``(ii) were held in trust by the 
                        United States for the benefit of an 
                        Indian tribe or its members.
                    ``(B) Indian tribe.--For purposes of this 
                paragraph, the term `Indian tribe' has the 
                meaning given such term by section 
                7871(c)(3)(E)(ii).''.
            (3) Indian coal production facility.--Subsection 
        (d) of section 45, as amended by this Act, is amended 
        by adding at the end the following new paragraph:
            ``(10) Indian coal production facility.--The term 
        `Indian coal production facility' means a facility 
        which is placed in service before January 1, 2009.''.
            (4) Conforming amendment.--The heading for section 
        45(c) is amended by striking ``Qualified Energy 
        Resources and Refined Coal'' and inserting 
        ``Resources''.
    (e) Technical Amendment Related to Trash Combustion 
Facilities.--Section 45(d)(7) (relating to trash combustion 
facilities) is amended by adding at the end the following: 
``Such term shall include a new unit placed in service in 
connection with a facility placed in service on or before the 
date of the enactment of this paragraph, but only to the extent 
of the increased amount of electricity produced at the facility 
by reason of such new unit.''.
    (f) Additional Technical Amendments Related to Section 710 
of the American Jobs Creation Act of 2004.--
            (1) Clause (ii) of section 45(b)(4)(B) is amended 
        by striking ``the date of the enactment of this Act'' 
        and inserting ``January 1, 2005,''.
            (2) Clause (ii) of section 45(c)(3)(A) is amended 
        by inserting ``or any nonhazardous lignin waste 
        material'' after ``cellulosic waste material''.
            (3) Subsection (e) of section 45 is amended by 
        striking paragraph (6).
            (4)(A) Paragraph (9) of section 45(e) is amended to 
        read as follows:
            ``(9) Coordination with credit for producing fuel 
        from a nonconventional source.--
                    ``(A) In general.--The term `qualified 
                facility' shall not include any facility which 
                produces electricity from gas derived from the 
                biodegradation of municipal solid waste if such 
                biodegradation occurred in a facility (within 
                the meaning of section 29) the production from 
                which is allowed as a credit under section 29 
                for the taxable year or any prior taxable year.
                    ``(B) Refined coal facilities.--The term 
                `refined coal production facility' shall not 
                include any facility the production from which 
                is allowed as a credit under section 29 for the 
                taxable year or any prior taxable year.''.
            (B) Subparagraph (C) of section 45(e)(8) is amended 
        by striking ``and (9)''.
            (5) Subclause (I) of section 168(e)(3)(B)(vi) is 
        amended to read as follows:
                                    ``(I) is described in 
                                subparagraph (A) of section 
                                48(a)(3) (or would be so 
                                described if `solar and wind' 
                                were substituted for `solar' in 
                                clause (i) thereof and the last 
                                sentence of such section did 
                                not apply to such 
                                subparagraph),''.
            (6) Paragraph (4) of section 710(g) of the American 
        Jobs Creation Act of 2004 is amended by striking 
        ``January 1, 2004'' and inserting ``January 1, 2005''.
    (g) Effective Dates.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section shall take 
        effect of the date of the enactment of this Act.
            (2) Technical amendments.--The amendments made by 
        subsections (e) and (f) shall take effect as if 
        included in the amendments made by section 710 of the 
        American Jobs Creation Act of 2004.

SEC. 1302. APPLICATION OF SECTION 45 CREDIT TO AGRICULTURAL 
                    COOPERATIVES.

    (a) In General.--Section 45(e) (relating to definitions and 
special rules), as amended by this Act, is amended by adding at 
the end the following:
            ``(11) Allocation of credit to patrons of 
        agricultural cooperative.--
                    ``(A) Election to allocate.--
                            ``(i) In general.--In the case of 
                        an eligible cooperative organization, 
                        any portion of the credit determined 
                        under subsection (a) for the taxable 
                        year may, at the election of the 
                        organization, be apportioned among 
                        patrons of the organization on the 
                        basis of the amount of business done by 
                        the patrons during the taxable year.
                            ``(ii) Form and effect of 
                        election.--An election under clause (i) 
                        for any taxable year shall be made on a 
                        timely filed return for such year. Such 
                        election, once made, shall be 
                        irrevocable for such taxable year. Such 
                        election shall not take effect unless 
                        the organization designates the 
                        apportionment as such in a written 
                        notice mailed to its patrons during the 
                        payment period described in section 
                        1382(d).
                    ``(B) Treatment of organizations and 
                patrons.--The amount of the credit apportioned 
                to any patrons under subparagraph (A)--
                            ``(i) shall not be included in the 
                        amount determined under subsection (a) 
                        with respect to the organization for 
                        the taxable year, and
                            ``(ii) shall be included in the 
                        amount determined under subsection (a) 
                        for the first taxable year of each 
                        patron ending on or after the last day 
                        of the payment period (as defined in 
                        section 1382(d)) for the taxable year 
                        of the organization or, if earlier, for 
                        the taxable year of each patron ending 
                        on or after the date on which the 
                        patron receives notice from the 
                        cooperative of the apportionment.
                    ``(C) Special rules for decrease in credits 
                for taxable year.--If the amount of the credit 
                of a cooperative organization determined under 
                subsection (a) for a taxable year is less than 
                the amount of such credit shown on the return 
                of the cooperative organization for such year, 
                an amount equal to the excess of--
                            ``(i) such reduction, over
                            ``(ii) the amount not apportioned 
                        to such patrons under subparagraph (A) 
                        for the taxable year,
                shall be treated as an increase in tax imposed 
                by this chapter on the organization. Such 
                increase shall not be treated as tax imposed by 
                this chapter for purposes of determining the 
                amount of any credit under this chapter.
                    ``(D) Eligible cooperative defined.--For 
                purposes of this section the term `eligible 
                cooperative' means a cooperative organization 
                described in section 1381(a) which is owned 
                more than 50 percent by agricultural producers 
                or by entities owned by agricultural producers. 
                For this purpose an entity owned by an 
                agricultural producer is one that is more than 
                50 percent owned by agricultural producers.''.
    (b) Conforming Amendment.--The last sentence of section 
55(c)(1) is amended by inserting ``45(e)(11)(C),'' after 
``section''.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years of cooperative organizations 
ending after the date of the enactment of this Act.

SEC. 1303. CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 
(relating to credits against tax) is amended by adding at the 
end the following new subpart:

     ``Subpart H--Nonrefundable Credit to Holders of Certain Bonds

``Sec. 54. Credit to holders of clean renewable energy bonds.

``SEC. 54. CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a clean 
renewable energy bond on 1 or more credit allowance dates of 
the bond occurring during any taxable year, there shall be 
allowed as a credit against the tax imposed by this chapter for 
the taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit 
        determined under this subsection with respect to any 
        credit allowance date for a clean renewable energy bond 
        is 25 percent of the annual credit determined with 
        respect to such bond.
            ``(2) Annual credit.--The annual credit determined 
        with respect to any clean renewable energy bond is the 
        product of--
                    ``(A) the credit rate determined by the 
                Secretary under paragraph (3) for the day on 
                which such bond was sold, multiplied by
                    ``(B) the outstanding face amount of the 
                bond.
            ``(3) Determination.--For purposes of paragraph 
        (2), with respect to any clean renewable energy bond, 
        the Secretary shall determine daily or cause to be 
        determined daily a credit rate which shall apply to the 
        first day on which there is a binding, written contract 
        for the sale or exchange of the bond. The credit rate 
        for any day is the credit rate which the Secretary or 
        the Secretary's designee estimates will permit the 
        issuance of clean renewable energy bonds with a 
        specified maturity or redemption date without discount 
        and without interest cost to the qualified issuer.
            ``(4) Credit allowance date.--For purposes of this 
        section, the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term also includes the last day on which the bond 
        is outstanding.
            ``(5) Special rule for issuance and redemption.--In 
        the case of a bond which is issued during the 3-month 
        period ending on a credit allowance date, the amount of 
        the credit determined under this subsection with 
        respect to such credit allowance date shall be a 
        ratable portion of the credit otherwise determined 
        based on the portion of the 3-month period during which 
        the bond is outstanding. A similar rule shall apply 
        when the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--The credit 
allowed under subsection (a) for any taxable year shall not 
exceed the excess of--
            ``(1) the sum of the regular tax liability (as 
        defined in section 26(b)) plus the tax imposed by 
        section 55, over
            ``(2) the sum of the credits allowable under this 
        part (other than subpart C and this section).
    ``(d) Clean Renewable Energy Bond.--For purposes of this 
section--
            ``(1) In general.--The term `clean renewable energy 
        bond' means any bond issued as part of an issue if--
                    ``(A) the bond is issued by a qualified 
                issuer pursuant to an allocation by the 
                Secretary to such issuer of a portion of the 
                national clean renewable energy bond limitation 
                under subsection (f)(2),
                    ``(B) 95 percent or more of the proceeds of 
                such issue are to be used for capital 
                expenditures incurred by qualified borrowers 
                for 1 or more qualified projects,
                    ``(C) the qualified issuer designates such 
                bond for purposes of this section and the bond 
                is in registered form, and
                    ``(D) the issue meets the requirements of 
                subsection (h).
            ``(2) Qualified project; special use rules.--
                    ``(A) In general.--The term `qualified 
                project' means any qualified facility (as 
                determined under section 45(d) without regard 
                to paragraph (10) and to any placed in service 
                date) owned by a qualified borrower.
                    ``(B) Refinancing rules.--For purposes of 
                paragraph (1)(B), a qualified project may be 
                refinanced with proceeds of a clean renewable 
                energy bond only if the indebtedness being 
                refinanced (including any obligation directly 
                or indirectly refinanced by such indebtedness) 
                was originally incurred by a qualified borrower 
                after the date of the enactment of this 
                section.
                    ``(C) Reimbursement.--For purposes of 
                paragraph (1)(B), a clean renewable energy bond 
                may be issued to reimburse a qualified borrower 
                for amounts paid after the date of the 
                enactment of this section with respect to a 
                qualified project, but only if--
                            ``(i) prior to the payment of the 
                        original expenditure, the qualified 
                        borrower declared its intent to 
                        reimburse such expenditure with the 
                        proceeds of a clean renewable energy 
                        bond,
                            ``(ii) not later than 60 days after 
                        payment of the original expenditure, 
                        the qualified issuer adopts an official 
                        intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made 
                        not later than 18 months after the date 
                        the original expenditure is paid.
                    ``(D) Treatment of changes in use.--For 
                purposes of paragraph (1)(B), the proceeds of 
                an issue shall not be treated as used for a 
                qualified project to the extent that a 
                qualified borrower or qualified issuer takes 
                any action within its control which causes such 
                proceeds not to be used for a qualified 
                project. The Secretary shall prescribe 
                regulations specifying remedial actions that 
                may be taken (including conditions to taking 
                such remedial actions) to prevent an action 
                described in the preceding sentence from 
                causing a bond to fail to be a clean renewable 
                energy bond.
    ``(e) Maturity Limitations.--
            ``(1) Duration of term.--A bond shall not be 
        treated as a clean renewable energy bond if the 
        maturity of such bond exceeds the maximum term 
        determined by the Secretary under paragraph (2) with 
        respect to such bond.
            ``(2) Maximum term.--During each calendar month, 
        the Secretary shall determine the maximum term 
        permitted under this paragraph for bonds issued during 
        the following calendar month. Such maximum term shall 
        be the term which the Secretary estimates will result 
        in the present value of the obligation to repay the 
        principal on the bond being equal to 50 percent of the 
        face amount of such bond. Such present value shall be 
        determined without regard to the requirements of 
        subsection (l)(6) and using as a discount rate the 
        average annual interest rate of tax-exempt obligations 
        having a term of 10 years or more which are issued 
        during the month. If the term as so determined is not a 
        multiple of a whole year, such term shall be rounded to 
        the next highest whole year.
    ``(f) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national 
        clean renewable energy bond limitation of $800,000,000.
            ``(2) Allocation by secretary.--The Secretary shall 
        allocate the amount described in paragraph (1) among 
        qualified projects in such manner as the Secretary 
        determines appropriate, except that the Secretary may 
        not allocate more than $500,000,000 of the national 
        clean renewable energy bond limitation to finance 
        qualified projects of qualified borrowers which are 
        governmental bodies.
    ``(g) Credit Included in Gross Income.--Gross income 
includes the amount of the credit allowed to the taxpayer under 
this section (determined without regard to subsection (c)) and 
the amount so included shall be treated as interest income.
    ``(h) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as 
        meeting the requirements of this subsection if, as of 
        the date of issuance, the qualified issuer reasonably 
        expects--
                    ``(A) at least 95 percent of the proceeds 
                of such issue are to be spent for 1 or more 
                qualified projects within the 5-year period 
                beginning on the date of issuance of the clean 
                energy bond,
                    ``(B) a binding commitment with a third 
                party to spend at least 10 percent of the 
                proceeds of such issue will be incurred within 
                the 6-month period beginning on the date of 
                issuance of the clean energy bond or, in the 
                case of a clean energy bond the proceeds of 
                which are to be loaned to 2 or more qualified 
                borrowers, such binding commitment will be 
                incurred within the 6-month period beginning on 
                the date of the loan of such proceeds to a 
                qualified borrower, and
                    ``(C) such projects will be completed with 
                due diligence and the proceeds of such issue 
                will be spent with due diligence.
            ``(2) Extension of period.--Upon submission of a 
        request prior to the expiration of the period described 
        in paragraph (1)(A), the Secretary may extend such 
        period if the qualified issuer establishes that the 
        failure to satisfy the 5-year requirement is due to 
        reasonable cause and the related projects will continue 
        to proceed with due diligence.
            ``(3) Failure to spend required amount of bond 
        proceeds within 5 years.--To the extent that less than 
        95 percent of the proceeds of such issue are expended 
        by the close of the 5-year period beginning on the date 
        of issuance (or if an extension has been obtained under 
        paragraph (2), by the close of the extended period), 
        the qualified issuer shall redeem all of the 
        nonqualified bonds within 90 days after the end of such 
        period. For purposes of this paragraph, the amount of 
        the nonqualified bonds required to be redeemed shall be 
        determined in the same manner as under section 142.
    ``(i) Special Rules Relating to Arbitrage.--A bond which is 
part of an issue shall not be treated as a clean renewable 
energy bond unless, with respect to the issue of which the bond 
is a part, the qualified issuer satisfies the arbitrage 
requirements of section 148 with respect to proceeds of the 
issue.
    ``(j) Cooperative Electric Company; Qualified Energy Tax 
Credit Bond Lender; Governmental Body; Qualified Borrower.--For 
purposes of this section--
            ``(1) Cooperative electric company.--The term 
        `cooperative electric company' means a mutual or 
        cooperative electric company described in section 
        501(c)(12) or section 1381(a)(2)(C), or a not-for-
        profit electric utility which has received a loan or 
        loan guarantee under the Rural Electrification Act.
            ``(2) Clean renewable energy bond lender.--The term 
        `clean renewable energy bond lender' means a lender 
        which is a cooperative which is owned by, or has 
        outstanding loans to, 100 or more cooperative electric 
        companies and is in existence on February 1, 2002, and 
        shall include any affiliated entity which is controlled 
        by such lender.
            ``(3) Governmental body.--The term `governmental 
        body' means any State, territory, possession of the 
        United States, the District of Columbia, Indian tribal 
        government, and any political subdivision thereof.
            ``(4) Qualified issuer.--The term `qualified 
        issuer' means--
                    ``(A) a clean renewable energy bond lender,
                    ``(B) a cooperative electric company, or
                    ``(C) a governmental body.
            ``(5) Qualified borrower.--The term `qualified 
        borrower' means--
                    ``(A) a mutual or cooperative electric 
                company described in section 501(c)(12) or 
                1381(a)(2)(C), or
                    ``(B) a governmental body.
    ``(k) Special Rules Relating to Pool Bonds.--No portion of 
a pooled financing bond may be allocable to any loan unless the 
borrower has entered into a written loan commitment for such 
portion prior to the issue date of such issue.
    ``(l) Other Definitions and Special Rules.--For purposes of 
this section--
            ``(1) Bond.--The term `bond' includes any 
        obligation.
            ``(2) Pooled financing bond.--The term `pooled 
        financing bond' shall have the meaning given such term 
        by section 149(f)(4)(A).
            ``(3) Partnership; s corporation; and other pass-
        thru entities.--
                    ``(A) In general.--Under regulations 
                prescribed by the Secretary, in the case of a 
                partnership, trust, S corporation, or other 
                pass-thru entity, rules similar to the rules of 
                section 41(g) shall apply with respect to the 
                credit allowable under subsection (a).
                    ``(B) No basis adjustment.--In the case of 
                a bond held by a partnership or an S 
                corporation, rules similar to the rules under 
                section 1397E(i) shall apply.
            ``(4) Bonds held by regulated investment 
        companies.--If any clean renewable energy bond is held 
        by a regulated investment company, the credit 
        determined under subsection (a) shall be allowed to 
        shareholders of such company under procedures 
        prescribed by the Secretary.
            ``(5) Treatment for estimated tax purposes.--Solely 
        for purposes of sections 6654 and 6655, the credit 
        allowed by this section (determined without regard to 
        subsection (c)) to a taxpayer by reason of holding a 
        clean renewable energy bond on a credit allowance date 
        shall be treated as if it were a payment of estimated 
        tax made by the taxpayer on such date.
            ``(6) Ratable principal amortization required.--A 
        bond shall not be treated as a clean renewable energy 
        bond unless it is part of an issue which provides for 
        an equal amount of principal to be paid by the 
        qualified issuer during each calendar year that the 
        issue is outstanding.
            ``(7) Reporting.--Issuers of clean renewable energy 
        bonds shall submit reports similar to the reports 
        required under section 149(e).
    ``(m) Termination.--This section shall not apply with 
respect to any bond issued after December 31, 2007.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to 
returns regarding payments of interest) is amended by adding at 
the end the following new paragraph:
            ``(8) Reporting of credit on clean renewable energy 
        bonds.--
                    ``(A) In general.--For purposes of 
                subsection (a), the term `interest' includes 
                amounts includible in gross income under 
                section 54(g) and such amounts shall be treated 
                as paid on the credit allowance date (as 
                defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--
                Except as otherwise provided in regulations, in 
                the case of any interest described in 
                subparagraph (A), subsection (b)(4) shall be 
                applied without regard to subparagraphs (A), 
                (H), (I), (J), (K), and (L)(i) of such 
                subsection.
                    ``(C) Regulatory authority.--The Secretary 
                may prescribe such regulations as are necessary 
                or appropriate to carry out the purposes of 
                this paragraph, including regulations which 
                require more frequent or more detailed 
                reporting.''.
    (c) Conforming Amendments.--
            (1) The table of subparts for part IV of subchapter 
        A of chapter 1 is amended by adding at the end the 
        following new item:

     ``Subpart H. Nonrefundable Credit to Holders of Certain Bonds.''.

            (2) Section 1397E(c)(2) is amended by inserting ``, 
        and subpart H thereof'' after ``refundable credits''.
            (3) Subsection (h) of section 1397E is amended to 
        read as follows:
    ``(h) Credit Treated as Nonrefundable Bondholder Credit.--
For purposes of this title, the credit allowed by this section 
shall be treated as a credit allowable under subpart H of part 
IV of subchapter A of this chapter.''.
            (4) Section 6401(b)(1) is amended by striking ``and 
        G'' and inserting ``G, and H''.
    (d) Issuance of Regulations.--The Secretary of Treasury 
shall issue regulations required under section 54 of the 
Internal Revenue Code of 1986 (as added by this section) not 
later than 120 days after the date of the enactment of this 
Act.
    (e) Effective Date.--The amendments made by this section 
shall apply to bonds issued after December 31, 2005.

SEC. 1304. TREATMENT OF INCOME OF CERTAIN ELECTRIC COOPERATIVES.

    (a) Elimination of Sunset on Treatment of Income From Open 
Access and Nuclear Decommissioning Transactions.--Section 
501(c)(12)(C) is amended by striking the last sentence.
    (b) Elimination of Sunset on Treatment of Income From Load 
Loss Transactions.--Section 501(c)(12)(H) is amended by 
striking clause (x).
    (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act.

SEC. 1305. DISPOSITIONS OF TRANSMISSION PROPERTY TO IMPLEMENT FERC 
                    RESTRUCTURING POLICY.

    (a) In General.--Section 451(i)(3) (defining qualifying 
electric transmission transaction) is amended by striking 
``2007'' and inserting ``2008''.
    (b) Technical Amendment Related to Section 909 of the 
American Jobs Creation Act of 2004.--Clause (ii) of section 
451(i)(4)(B) is amended by striking ``the close of the period 
applicable under subsection (a)(2)(B) as extended under 
paragraph (2)'' and inserting ``December 31, 2007''.
    (c) Effective Dates.--
            (1) In general.--The amendment made by subsection 
        (a) shall apply to transactions occurring after the 
        date of the enactment of this Act.
            (2) Technical amendment.--The amendment made by 
        subsection (b) shall take effect as if included in the 
        amendments made by section 909 of the American Jobs 
        Creation Act of 2004.

SEC. 1306. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER 
                    FACILITIES.

    (a) In General.--Subpart D of part IV of subchapter A of 
chapter 1 (relating to business related credits) is amended by 
adding after section 45I the following new section:

``SEC. 45J. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER 
                    FACILITIES.

    ``(a) General Rule.--For purposes of section 38, the 
advanced nuclear power facility production credit of any 
taxpayer for any taxable year is equal to the product of--
            ``(1) 1.8 cents, multiplied by
            ``(2) the kilowatt hours of electricity--
                    ``(A) produced by the taxpayer at an 
                advanced nuclear power facility during the 8-
                year period beginning on the date the facility 
                was originally placed in service, and
                    ``(B) sold by the taxpayer to an unrelated 
                person during the taxable year.
    ``(b) National Limitation.--
            ``(1) In general.--The amount of credit which would 
        (but for this subsection and subsection (c)) be allowed 
        with respect to any facility for any taxable year shall 
        not exceed the amount which bears the same ratio to 
        such amount of credit as--
                    ``(A) the national megawatt capacity 
                limitation allocated to the facility, bears to
                    ``(B) the total megawatt nameplate capacity 
                of such facility.
            ``(2) Amount of national limitation.--The national 
        megawatt capacity limitation shall be 6,000 megawatts.
            ``(3) Allocation of limitation.--The Secretary 
        shall allocate the national megawatt capacity 
        limitation in such manner as the Secretary may 
        prescribe.
            ``(4) Regulations.--Not later than 6 months after 
        the date of the enactment of this section, the 
        Secretary shall prescribe such regulations as may be 
        necessary or appropriate to carry out the purposes of 
        this subsection. Such regulations shall provide a 
        certification process under which the Secretary, after 
        consultation with the Secretary of Energy, shall 
        approve and allocate the national megawatt capacity 
        limitation.
    ``(c) Other Limitations.--
            ``(1) Annual limitation.--The amount of the credit 
        allowable under subsection (a) (after the application 
        of subsection (b)) for any taxable year with respect to 
        any facility shall not exceed an amount which bears the 
        same ratio to $125,000,000 as--
                    ``(A) the national megawatt capacity 
                limitation allocated under subsection (b) to 
                the facility, bears to
                    ``(B) 1,000.
            ``(2) Other limitations.--Rules similar to the 
        rules of section 45(b)(1) shall apply for purposes of 
        this section.
    ``(d) Advanced Nuclear Power Facility.--For purposes of 
this section--
            ``(1) In general.--The term `advanced nuclear power 
        facility' means any advanced nuclear facility--
                    ``(A) which is owned by the taxpayer and 
                which uses nuclear energy to produce 
                electricity, and
                    ``(B) which is placed in service after the 
                date of the enactment of this paragraph and 
                before January 1, 2021.
            ``(2) Advanced nuclear facility.--For purposes of 
        paragraph (1), the term `advanced nuclear facility' 
        means any nuclear facility the reactor design for which 
        is approved after December 31, 1993, by the Nuclear 
        Regulatory Commission (and such design or a 
        substantially similar design of comparable capacity was 
        not approved on or before such date).
    ``(e) Other Rules To Apply.--Rules similar to the rules of 
paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall 
apply for purposes of this section.''.
    (b) Credit Treated as Business Credit.--Section 38(b), as 
amended by the Transportation Equity Act: A Legacy for Users, 
is amended by striking ``plus'' at the end of paragraph (19), 
by striking the period at the end of paragraph (20) and 
inserting ``, plus'', and by adding at the end the following:
            ``(21) the advanced nuclear power facility 
        production credit determined under section 45J(a).''.
    (c) Clerical Amendment.--The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end the following:

``Sec. 45J. Credit for production from advanced nuclear power 
          facilities.''.

    (d) Effective Date.--The amendments made by this section 
shall apply to production in taxable years beginning after the 
date of the enactment of this Act.

SEC. 1307. CREDIT FOR INVESTMENT IN CLEAN COAL FACILITIES.

    (a) In General.--Section 46 (relating to amount of credit) 
is amended by striking ``and'' at the end of paragraph (1), by 
striking the period at the end of paragraph (2), and by adding 
at the end the following new paragraphs:
            ``(3) the qualifying advanced coal project credit, 
        and
            ``(4) the qualifying gasification project 
        credit.''.
    (b) Amount of Credits.--Subpart E of part IV of subchapter 
A of chapter 1 (relating to rules for computing investment 
credit) is amended by inserting after section 48 the following 
new sections:

``SEC. 48A. QUALIFYING ADVANCED COAL PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the 
qualifying advanced coal project credit for any taxable year is 
an amount equal to--
            ``(1) 20 percent of the qualified investment for 
        such taxable year in the case of projects described in 
        subsection (d)(3)(B)(i), and
            ``(2) 15 percent of the qualified investment for 
        such taxable year in the case of projects described in 
        subsection (d)(3)(B)(ii).
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), 
        the qualified investment for any taxable year is the 
        basis of eligible property placed in service by the 
        taxpayer during such taxable year which is part of a 
        qualifying advanced coal project--
                    ``(A)(i) the construction, reconstruction, 
                or erection of which is completed by the 
                taxpayer, or
                    ``(ii) which is acquired by the taxpayer if 
                the original use of such property commences 
                with the taxpayer, and
                    ``(B) with respect to which depreciation 
                (or amortization in lieu of depreciation) is 
                allowable.
            ``(2) Special rule for certain subsidized 
        property.--Rules similar to section 48(a)(4) shall 
        apply for purposes of this section.
            ``(3) Certain qualified progress expenditures rules 
        made applicable.--Rules similar to the rules of 
        subsections (c)(4) and (d) of section 46 (as in effect 
        on the day before the enactment of the Revenue 
        Reconciliation Act of 1990) shall apply for purposes of 
        this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying advanced coal project.--The term 
        `qualifying advanced coal project' means a project 
        which meets the requirements of subsection (e).
            ``(2) Advanced coal-based generation technology.--
        The term `advanced coal-based generation technology' 
        means a technology which meets the requirements of 
        subsection (f).
            ``(3) Eligible property.--The term `eligible 
        property' means--
                    ``(A) in the case of any qualifying 
                advanced coal project using an integrated 
                gasification combined cycle, any property which 
                is a part of such project and is necessary for 
                the gasification of coal, including any coal 
                handling and gas separation equipment, and
                    ``(B) in the case of any other qualifying 
                advanced coal project, any property which is a 
                part of such project.
            ``(4) Coal.--The term `coal' means anthracite, 
        bituminous coal, subbituminous coal, lignite, and peat.
            ``(5) Greenhouse gas capture capability.--The term 
        `greenhouse gas capture capability' means an integrated 
        gasification combined cycle technology facility capable 
        of adding components which can capture, separate on a 
        long-term basis, isolate, remove, and sequester 
        greenhouse gases which result from the generation of 
        electricity.
            ``(6) Electric generation unit.--The term `electric 
        generation unit' means any facility at least 50 percent 
        of the total annual net output of which is electrical 
        power, including an otherwise eligible facility which 
        is used in an industrial application.
            ``(7) Integrated gasification combined cycle.--The 
        term `integrated gasification combined cycle' means an 
        electric generation unit which produces electricity by 
        converting coal to synthesis gas which is used to fuel 
        a combined-cycle plant which produces electricity from 
        both a combustion turbine (including a combustion 
        turbine/fuel cell hybrid) and a steam turbine.
    ``(d) Qualifying Advanced Coal Project Program.--
            ``(1) Establishment.--Not later than 180 days after 
        the date of enactment of this section, the Secretary, 
        in consultation with the Secretary of Energy, shall 
        establish a qualifying advanced coal project program 
        for the deployment of advanced coal-based generation 
        technologies.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant 
                for certification under this paragraph shall 
                submit an application meeting the requirements 
                of subparagraph (B). An applicant may only 
                submit an application during the 3-year period 
                beginning on the date the Secretary establishes 
                the program under paragraph (1).
                    ``(B) Requirements for applications for 
                certification.--An application under 
                subparagraph (A) shall contain such information 
                as the Secretary may require in order to make a 
                determination to accept or reject an 
                application for certification as meeting the 
                requirements under subsection (e)(1). Any 
                information contained in the application shall 
                be protected as provided in section 552(b)(4) 
                of title 5, United States Code.
                    ``(C) Time to act upon applications for 
                certification.--The Secretary shall issue a 
                determination as to whether an applicant has 
                met the requirements under subsection (e)(1) 
                within 60 days following the date of submittal 
                of the application for certification.
                    ``(D) Time to meet criteria for 
                certification.--Each applicant for 
                certification shall have 2 years from the date 
                of acceptance by the Secretary of the 
                application during which to provide to the 
                Secretary evidence that the criteria set forth 
                in subsection (e)(2) have been met.
                    ``(E) Period of issuance.--An applicant 
                which receives a certification shall have 5 
                years from the date of issuance of the 
                certification in order to place the project in 
                service and if such project is not placed in 
                service by that time period then the 
                certification shall no longer be valid.
            ``(3) Aggregate credits.--
                    ``(A) In general.--The aggregate credits 
                allowed under subsection (a) for projects 
                certified by the Secretary under paragraph (2) 
                may not exceed $1,300,000,000.
                    ``(B) Particular projects.--Of the dollar 
                amount in subparagraph (A), the Secretary is 
                authorized to certify--
                            ``(i) $800,000,000 for integrated 
                        gasification combined cycle projects, 
                        and
                            ``(ii) $500,000,000 for projects 
                        which use other advanced coal-based 
                        generation technologies.
            ``(4) Review and redistribution.--
                    ``(A) Review.--Not later than 6 years after 
                the date of enactment of this section, the 
                Secretary shall review the credits allocated 
                under this section as of the date which is 6 
                years after the date of enactment of this 
                section.
                    ``(B) Redistribution.--The Secretary may 
                reallocate credits available under clauses (i) 
                and (ii) of paragraph (3)(B) if the Secretary 
                determines that--
                            ``(i) there is an insufficient 
                        quantity of qualifying applications for 
                        certification pending at the time of 
                        the review, or
                            ``(ii) any certification made 
                        pursuant to subsection paragraph (2) 
                        has been revoked pursuant to subsection 
                        paragraph (2)(D) because the project 
                        subject to the certification has been 
                        delayed as a result of third party 
                        opposition or litigation to the 
                        proposed project.
                    ``(C) Reallocation.--If the Secretary 
                determines that credits under clause (i) or 
                (ii) of paragraph (3)(B) are available for 
                reallocation pursuant to the requirements set 
                forth in paragraph (2), the Secretary is 
                authorized to conduct an additional program for 
                applications for certification.
    ``(e) Qualifying Advanced Coal Projects.--
            ``(1) Requirements.--For purposes of subsection 
        (c)(1), a project shall be considered a qualifying 
        advanced coal project that the Secretary may certify 
        under subsection (d)(2) if the Secretary determines 
        that, at a minimum--
                    ``(A) the project uses an advanced coal-
                based generation technology--
                            ``(i) to power a new electric 
                        generation unit, or
                            ``(ii) to retrofit or repower an 
                        existing electric generation unit 
                        (including an existing natural gas-
                        fired combined cycle unit),
                    ``(B) the fuel input for the project, when 
                completed, is at least 75 percent coal,
                    ``(C) the project, consisting of one or 
                more electric generation units at one site, 
                will have a total nameplate generating capacity 
                of at least 400 megawatts;
                    ``(D) the applicant provides evidence that 
                a majority of the output of the project is 
                reasonably expected to be acquired or utilized;
                    ``(E) the applicant provides evidence of 
                ownership or control of a site of sufficient 
                size to allow the proposed project to be 
                constructed and to operate on a long-term 
                basis; and
                    ``(F) the project will be located in the 
                United States.
            ``(2) Requirements for certification.--For the 
        purpose of subsection (d)(2)(D), a project shall be 
        eligible for certification only if the Secretary 
        determines that--
                    ``(A) the applicant for certification has 
                received all Federal and State environmental 
                authorizations or reviews necessary to commence 
                construction of the project; and
                    ``(B) the applicant for certification, 
                except in the case of a retrofit or repower of 
                an existing electric generation unit, has 
                purchased or entered into a binding contract 
                for the purchase of the main steam turbine or 
                turbines for the project, except that such 
                contract may be contingent upon receipt of a 
                certification under subsection (d)(2).
            ``(3) Priority for integrated gasification combined 
        cycle projects.--In determining which qualifying 
        advanced coal projects to certify under subsection 
        (d)(2), the Secretary shall--
                    ``(A) certify capacity, in accordance with 
                the procedures set forth in subsection (d), in 
                relatively equal amounts to--
                            ``(i) projects using bituminous 
                        coal as a primary feedstock,
                            ``(ii) projects using subbituminous 
                        coal as a primary feedstock, and
                            ``(iii) projects using lignite as a 
                        primary feedstock, and
                    ``(B) give high priority to projects which 
                include, as determined by the Secretary--
                            ``(i) greenhouse gas capture 
                        capability,
                            ``(ii) increased by-product 
                        utilization, and
                            ``(iii) other benefits.
    ``(f) Advanced Coal-Based Generation Technology.--
            ``(1) In general.--For the purpose of this section, 
        an electric generation unit uses advanced coal-based 
        generation technology if--
                    ``(A) the unit--
                            ``(i) uses integrated gasification 
                        combined cycle technology, or
                            ``(ii) except as provided in 
                        paragraph (3), has a design net heat 
                        rate of 8530 Btu/kWh (40 percent 
                        efficiency), and
                    ``(B) the unit is designed to meet the 
                performance requirements in the following 
                table:




      Performance characteristic:          Design level  for project:


SO2 (percent removal).................  99 percent
NOX (emissions).......................  0.07 lbs/MMBTU
PM* (emissions).......................  0.015 lbs/MMBTU
Hg (percent removal)..................  90 percent




            ``(2) Design net heat rate.--For purposes of this 
        subsection, design net heat rate with respect to an 
        electric generation unit shall--
                    ``(A) be measured in Btu per kilowatt hour 
                (higher heating value),
                    ``(B) be based on the design annual heat 
                input to the unit and the rated net electrical 
                power, fuels, and chemicals output of the unit 
                (determined without regard to the cogeneration 
                of steam by the unit),
                    ``(C) be adjusted for the heat content of 
                the design coal to be used by the unit--
                            ``(i) if the heat content is less 
                        than 13,500 Btu per pound, but greater 
                        than 7,000 Btu per pound, according to 
                        the following formula: design net heat 
                        rate = unit net heat rate x [1-
                        [((13,500-design coal heat content, Btu 
                        per pound)/1,000)* 0.013]], and
                            ``(ii) if the heat content is less 
                        than or equal to 7,000 Btu per pound, 
                        according to the following formula: 
                        design net heat rate = unit net heat 
                        rate x [1-[((13,500-design coal heat 
                        content, Btu per pound)/1,000)* 
                        0.018]], and
                    ``(D) be corrected for the site reference 
                conditions of--
                            ``(i) elevation above sea level of 
                        500 feet,
                            ``(ii) air pressure of 14.4 pounds 
                        per square inch absolute,
                            ``(iii) temperature, dry bulb of 
                        63/o/F,
                            ``(iv) temperature, wet bulb of 54/
                        o/F, and
                            ``(v) relative humidity of 55 
                        percent.
            ``(3) Existing units.--In the case of any electric 
        generation unit in existence on the date of the 
        enactment of this section, such unit uses advanced 
        coal-based generation technology if, in lieu of the 
        requirements under paragraph (1)(A)(ii), such unit 
        achieves a minimum efficiency of 35 percent and an 
        overall thermal design efficiency improvement, compared 
        to the efficiency of the unit as operated, of not less 
        than--
                    ``(A) 7 percentage points for coal of more 
                than 9,000 Btu,
                    ``(B) 6 percentage points for coal of 7,000 
                to 9,000 Btu, or
                    ``(C) 4 percentage points for coal of less 
                than 7,000 Btu.
    ``(g) Applicability.--No use of technology (or level of 
emission reduction solely by reason of the use of the 
technology), and no achievement of any emission reduction by 
the demonstration of any technology or performance level, by or 
at one or more facilities with respect to which a credit is 
allowed under this section, shall be considered to indicate 
that the technology or performance level is--
            ``(1) adequately demonstrated for purposes of 
        section 111 of the Clean Air Act (42 U.S.C. 7411);
            ``(2) achievable for purposes of section 169 of 
        that Act (42 U.S.C. 7479); or
            ``(3) achievable in practice for purposes of 
        section 171 of such Act (42 U.S.C. 7501).

``SEC. 48B. QUALIFYING GASIFICATION PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the 
qualifying gasification project credit for any taxable year is 
an amount equal to 20 percent of the qualified investment for 
such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), 
        the qualified investment for any taxable year is the 
        basis of eligible property placed in service by the 
        taxpayer during such taxable year which is part of a 
        qualifying gasification project--
                    ``(A)(i) the construction, reconstruction, 
                or erection of which is completed by the 
                taxpayer, or
                    ``(ii) which is acquired by the taxpayer if 
                the original use of such property commences 
                with the taxpayer, and
                    ``(B) with respect to which depreciation 
                (or amortization in lieu of depreciation) is 
                allowable.
            ``(2) Special rule for certain subsidized 
        property.--Rules similar to section 48(a)(4) shall 
        apply for purposes of this section.
            ``(3) Certain qualified progress expenditures rules 
        made applicable.--Rules similar to the rules of 
        subsections (c)(4) and (d) of section 46 (as in effect 
        on the day before the enactment of the Revenue 
        Reconciliation Act of 1990) shall apply for purposes of 
        this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying gasification project.--The term 
        `qualifying gasification project' means any project 
        which--
                    ``(A) employs gasification technology,
                    ``(B) will be carried out by an eligible 
                entity, and
                    ``(C) any portion of the qualified 
                investment of which is certified under the 
                qualifying gasification program as eligible for 
                credit under this section in an amount (not to 
                exceed $650,000,000) determined by the 
                Secretary.
            ``(2) Gasification technology.--The term 
        `gasification technology' means any process which 
        converts a solid or liquid product from coal, petroleum 
        residue, biomass, or other materials which are 
        recovered for their energy or feedstock value into a 
        synthesis gas composed primarily of carbon monoxide and 
        hydrogen for direct use or subsequent chemical or 
        physical conversion.
            ``(3) Eligible property.--The term `eligible 
        property' means any property which is a part of a 
        qualifying gasification project and is necessary for 
        the gasification technology of such project.
            ``(4) Biomass.--
                    ``(A) In general.--The term `biomass' means 
                any--
                            ``(i) agricultural or plant waste,
                            ``(ii) byproduct of wood or paper 
                        mill operations, including lignin in 
                        spent pulping liquors, and
                            ``(iii) other products of forestry 
                        maintenance.
                    ``(B) Exclusion.--The term `biomass' does 
                not include paper which is commonly recycled.
            ``(5) Carbon capture capability.--The term `carbon 
        capture capability' means a gasification plant design 
        which is determined by the Secretary to reflect 
        reasonable consideration for, and be capable of, 
        accommodating the equipment likely to be necessary to 
        capture carbon dioxide from the gaseous stream, for 
        later use or sequestration, which would otherwise be 
        emitted in the flue gas from a project which uses a 
        nonrenewable fuel.
            ``(6) Coal.--The term `coal' means anthracite, 
        bituminous coal, subbituminous coal, lignite, and peat.
            ``(7) Eligible entity.--The term `eligible entity' 
        means any person whose application for certification is 
        principally intended for use in a domestic project 
        which employs domestic gasification applications 
        related to--
                    ``(A) chemicals,
                    ``(B) fertilizers,
                    ``(C) glass,
                    ``(D) steel,
                    ``(E) petroleum residues,
                    ``(F) forest products, and
                    ``(G) agriculture, including feedlots and 
                dairy operations.
            ``(8) Petroleum residue.--The term `petroleum 
        residue' means the carbonized product of high-boiling 
        hydrocarbon fractions obtained in petroleum processing.
    ``(d) Qualifying Gasification Project Program.--
            ``(1) In general.--Not later than 180 days after 
        the date of the enactment of this section, the 
        Secretary, in consultation with the Secretary of 
        Energy, shall establish a qualifying gasification 
        project program to consider and award certifications 
        for qualified investment eligible for credits under 
        this section to qualifying gasification project 
        sponsors under this section. The total amounts of 
        credit that may be allocated under the program shall 
        not exceed $350,000,000 under rules similar to the 
        rules of section 48A(d)(4).
            ``(2) Period of issuance.--A certificate of 
        eligibility under paragraph (1) may be issued only 
        during the 10-fiscal year period beginning on October 
        1, 2005.
            ``(3) Selection criteria.--The Secretary shall not 
        make a competitive certification award for qualified 
        investment for credit eligibility under this section 
        unless the recipient has documented to the satisfaction 
        of the Secretary that--
                    ``(A) the award recipient is financially 
                viable without the receipt of additional 
                Federal funding associated with the proposed 
                project,
                    ``(B) the recipient will provide sufficient 
                information to the Secretary for the Secretary 
                to ensure that the qualified investment is 
                spent efficiently and effectively,
                    ``(C) a market exists for the products of 
                the proposed project as evidenced by contracts 
                or written statements of intent from potential 
                customers,
                    ``(D) the fuels identified with respect to 
                the gasification technology for such project 
                will comprise at least 90 percent of the fuels 
                required by the project for the production of 
                chemical feedstocks, liquid transportation 
                fuels, or coproduction of electricity,
                    ``(E) the award recipient's project team is 
                competent in the construction and operation of 
                the gasification technology proposed, with 
                preference given to those recipients with 
                experience which demonstrates successful and 
                reliable operations of the technology on 
                domestic fuels so identified, and
                    ``(F) the award recipient has met other 
                criteria established and published by the 
                Secretary.
    ``(e) Denial of Double Benefit.--A credit shall not be 
allowed under this section for any qualified investment for 
which a credit is allowed under section 48A.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) is amended by striking 
        ``and'' at the end of clause (ii), by striking clause 
        (iii), and by adding after clause (ii) the following 
        new clauses:
                            ``(iii) the basis of any property 
                        which is part of a qualifying advanced 
                        coal project under section 48A, and
                            ``(iv) the basis of any property 
                        which is part of a qualifying 
                        gasification project under section 
                        48B.''.
            (2) The table of sections for subpart E of part IV 
        of subchapter A of chapter 1 is amended by inserting 
        after the item relating to section 48 the following new 
        items:

``Sec. 48A. Qualifying advanced coal project credit.
``Sec. 48B. Qualifying gasification project credit.''.

    (d) Effective Date.--The amendments made by this section 
shall apply to periods after the date of the enactment of this 
Act, 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 the enactment of the Revenue Reconciliation Act of 
1990).

SEC. 1308. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Subparagraph (E) of section 168(e)(3) 
(relating to classification of certain property) is amended by 
striking ``and'' at the end of clause (v), by striking the 
period at the end of clause (vi) and inserting ``, and'', and 
by adding at the end the following new clause:
                            ``(vii) any section 1245 property 
                        (as defined in section 1245(a)(3)) used 
                        in the transmission at 69 or more 
                        kilovolts of electricity for sale and 
                        the original use of which commences 
                        with the taxpayer after April 11, 
                        2005.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property 
assigned to classes) is amended by inserting after the item 
relating to subparagraph (E)(vi) the following new item:

``(E)(vii)........................................................ 30''.

    (c) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall apply to property placed in service after 
        April 11, 2005.
            (2) Exception.--The amendments made by this section 
        shall not apply to any property with respect to which 
        the taxpayer or a related party has entered into a 
        binding contract for the construction thereof on or 
        before April 11, 2005, or, in the case of self-
        constructed property, has started construction on or 
        before such date.

SEC. 1309. EXPANSION OF AMORTIZATION FOR CERTAIN ATMOSPHERIC POLLUTION 
                    CONTROL FACILITIES IN CONNECTION WITH PLANTS FIRST 
                    PLACED IN SERVICE AFTER 1975.

    (a) Eligibility of Post-1975 Pollution Control 
Facilities.--Subsection (d) of section 169 (relating to 
definitions) is amended by adding at the end the following:
            ``(5) Special rule relating to certain atmospheric 
        pollution control facilities.--In the case of any 
        atmospheric pollution control facility which is placed 
        in service after April 11, 2005, and used in connection 
        with an electric generation plant or other property 
        which is primarily coal fired--
                    ``(A) paragraph (1) shall be applied 
                without regard to the phrase `in operation 
                before January 1, 1976', and
                    ``(B) this section shall be applied by 
                substituting `84' for `60' each place it 
                appears in subsections (a) and (b).''.
    (b) Treatment as New Identifiable Treatment Facility.--
Subparagraph (B) of section 169(d)(4) is amended to read as 
follows:
                    ``(B) Certain facilities placed in 
                operation after april 11, 2005.--In the case of 
                any facility described in paragraph (1) solely 
                by reason of paragraph (5), subparagraph (A) 
                shall be applied by substituting `April 11, 
                2005' for `December 31, 1968' each place it 
                appears therein.''.
    (c) Conforming Amendment.--The heading for section 169(d) 
is amended by inserting ``and Special Rules'' after 
``Definitions''.
    (d) Technical Amendment.--Section 169(d)(3) is amended by 
striking ``Health, Education, and Welfare'' and inserting 
``Health and Human Services''.
    (e) Effective Date.--The amendments made by this section 
shall apply to facilities placed in service after April 11, 
2005.

SEC. 1310. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR DECOMMISSIONING 
                    COSTS.

    (a) Repeal of Limitation on Deposits Into Fund Based on 
Cost of Service; Contributions After Funding Period.--
Subsection (b) of section 468A (relating to special rules for 
nuclear decommissioning costs) is amended to read as follows:
    ``(b) Limitation on Amounts Paid Into Fund.--The amount 
which a taxpayer may pay into the Fund for any taxable year 
shall not exceed the ruling amount applicable to such taxable 
year.''.
    (b) Treatment of Certain Decommissioning Costs.--
            (1) In general.--Section 468A is amended by 
        redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively, and by inserting after 
        subsection (e) the following new subsection:
    ``(f) Transfers Into Qualified Funds.--
            ``(1) In general.--Notwithstanding subsection (b), 
        any taxpayer maintaining a Fund to which this section 
        applies with respect to a nuclear power plant may 
        transfer into such Fund not more than an amount equal 
        to the present value of the portion of the total 
        nuclear decommissioning costs with respect to such 
        nuclear power plant previously excluded for such 
        nuclear power plant under subsection (d)(2)(A) as in 
        effect immediately before the date of the enactment of 
        this subsection.
            ``(2) Deduction for amounts transferred.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), the deduction allowed by 
                subsection (a) for any transfer permitted by 
                this subsection shall be allowed ratably over 
                the remaining estimated useful life (within the 
                meaning of subsection (d)(2)(A)) of the nuclear 
                power plant beginning with the taxable year 
                during which the transfer is made.
                    ``(B) Denial of deduction for previously 
                deducted amounts.--No deduction shall be 
                allowed for any transfer under this subsection 
                of an amount for which a deduction was 
                previously allowed to the taxpayer (or a 
                predecessor) or a corresponding amount was not 
                included in gross income of the taxpayer (or a 
                predecessor). For purposes of the preceding 
                sentence, a ratable portion of each transfer 
                shall be treated as being from previously 
                deducted or excluded amounts to the extent 
                thereof.
                    ``(C) Transfers of qualified funds.--If--
                            ``(i) any transfer permitted by 
                        this subsection is made to any Fund to 
                        which this section applies, and
                            ``(ii) such Fund is transferred 
                        thereafter,
                any deduction under this subsection for taxable 
                years ending after the date that such Fund is 
                transferred shall be allowed to the transferor 
                for the taxable year which includes such date.
                    ``(D) Special rules.--
                            ``(i) Gain or loss not recognized 
                        on transfers to fund.--No gain or loss 
                        shall be recognized on any transfer 
                        described in paragraph (1).
                            ``(ii) Transfers of appreciated 
                        property to fund.--If appreciated 
                        property is transferred in a transfer 
                        described in paragraph (1), the amount 
                        of the deduction shall not exceed the 
                        adjusted basis of such property.
            ``(3) New ruling amount required.--Paragraph (1) 
        shall not apply to any transfer unless the taxpayer 
        requests from the Secretary a new schedule of ruling 
        amounts in connection with such transfer.
            ``(4) No basis in qualified funds.--Notwithstanding 
        any other provision of law, the taxpayer's basis in any 
        Fund to which this section applies shall not be 
        increased by reason of any transfer permitted by this 
        subsection.''.
            (2) New ruling amount to take into account total 
        costs.--Subparagraph (A) of section 468A(d)(2) 
        (defining ruling amount) is amended to read as follows:
                    ``(A) fund the total nuclear 
                decommissioning costs with respect to such 
                power plant over the estimated useful life of 
                such power plant, and''.
    (c) New Ruling Amount Required Upon License Renewal.--
Paragraph (1) of section 468A(d) (relating to request required) 
is amended by adding at the end the following new sentence: 
``For purposes of the preceding sentence, the taxpayer shall 
request a schedule of ruling amounts upon each renewal of the 
operating license of the nuclear powerplant.''.
    (d) Conforming Amendment.--Section 468A(e)(3) (relating to 
review of amount) is amended by striking ``The Fund'' and 
inserting ``Except as provided in subsection (f), the Fund''.
    (e) Technical Amendments.--Section 468A(e)(2) (relating to 
taxation of Fund) is amended--
            (1) by striking ``rate set forth in subparagraph 
        (B)'' in subparagraph (A) and inserting ``rate of 20 
        percent'',
            (2) by striking subparagraph (B), and
            (3) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.
    (f) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2005.

SEC. 1311. 5-YEAR NET OPERATING LOSS CARRYOVER FOR CERTAIN LOSSES.

    Paragraph (1) of section 172(b) (relating to net operating 
loss carrybacks and carryovers) is amended by adding at the end 
the following new subparagraph:
                    ``(I) Transmission property and pollution 
                control investment.--
                            ``(i) In general.--At the election 
                        of the taxpayer in any taxable year 
                        ending after December 31, 2005, and 
                        before January 1, 2009, in the case of 
                        a net operating loss in a taxable year 
                        ending after December 31, 2002, and 
                        before January 1, 2006, there shall be 
                        a net operating loss carryback to each 
                        of the 5 years preceding the taxable 
                        year of such loss to the extent that 
                        such loss does not exceed 20 percent of 
                        the sum of electric transmission 
                        property capital expenditures and 
                        pollution control facility capital 
                        expenditures of the taxpayer for the 
                        taxable year preceding the taxable year 
                        in which such election is made.
                            ``(ii) Limitations.--For purposes 
                        of this subsection--
                                    ``(I) not more than one 
                                election may be made under 
                                clause (i) with respect to any 
                                net operating loss in a taxable 
                                year, and
                                    ``(II) an election may not 
                                be made under clause (i) for 
                                more than 1 taxable year 
                                beginning in any calendar year.
                            ``(iii) Coordination with ordering 
                        rule.--For purposes of applying 
                        subsection (b)(2), the portion of any 
                        loss which is carried back 5 years by 
                        reason of clause (i) shall be treated 
                        in a manner similar to the manner in 
                        which a specified liability loss is 
                        treated.
                            ``(iv) Application for 
                        adjustment.--In the case of any portion 
                        of a net operating loss to which an 
                        election under clause (i) applies, an 
                        application under section 6411(a) with 
                        respect to such loss shall not fail to 
                        be treated as timely filed if filed 
                        within 24 months after the due date 
                        specified under such section.
                            ``(v) Special rules relating to 
                        refund.--For purposes of a net 
                        operating loss to which an election 
                        under clause (i) applies, references in 
                        sections 6501(h), 6511(d)(2)(A), and 
                        6611(f)(1) to the taxable year in which 
                        such net operating loss arises or 
                        result in a net loss carryback shall be 
                        treated as references to the taxable 
                        year in which such election occurs.
                            ``(vi) Definitions.--For purposes 
                        of this subparagraph--
                                    ``(I) Electric transmission 
                                property capital 
                                expenditures.--The term 
                                `electric transmission property 
                                capital expenditures' means any 
                                expenditure, chargeable to 
                                capital account, made by the 
                                taxpayer which is attributable 
                                to electric transmission 
                                property used by the taxpayer 
                                in the transmission at 69 or 
                                more kilovolts of electricity 
                                for sale. Such term shall not 
                                include any expenditure which 
                                may be refunded or the purpose 
                                of which may be modified at the 
                                option of the taxpayer so as to 
                                cease to be treated as an 
                                expenditure within the meaning 
                                of such term.
                                    ``(II) Pollution control 
                                facility capital 
                                expenditures.--The term 
                                `pollution control facility 
                                capital expenditures' means any 
                                expenditure, chargeable to 
                                capital account, made by an 
                                electric utility company (as 
                                defined in section 2(3) of the 
                                Public Utility Holding Company 
                                Act (15 U.S.C. 79b(3)), as in 
                                effect on the day before the 
                                date of the enactment of the 
                                Energy Tax Incentives Act of 
                                2005) which is attributable to 
                                a facility which will qualify 
                                as a certified pollution 
                                control facility as determined 
                                under section 169(d)(1) by 
                                striking `before January 1, 
                                1976,' and by substituting `an 
                                identifiable' for `a new 
                                identifiable'. Such term shall 
                                not include any expenditure 
                                which may be refunded or the 
                                purpose of which may be 
                                modified at the option of the 
                                taxpayer so as to cease to be 
                                treated as an expenditure 
                                within the meaning of such 
                                term.''.

               Subtitle B--Domestic Fossil Fuel Security

SEC. 1321. EXTENSION OF CREDIT FOR PRODUCING FUEL FROM A 
                    NONCONVENTIONAL SOURCE FOR FACILITIES PRODUCING 
                    COKE OR COKE GAS.

    (a) In General.--Section 29 (relating to credit for 
producing fuel from a nonconventional source) is amended by 
adding at the end the following new subsection:
    ``(h) Extension for Facilities Producing Coke or Coke 
Gas.--Notwithstanding subsection (f)--
            ``(1) In general.--In the case of a facility for 
        producing coke or coke gas which was placed in service 
        before January 1, 1993, or after June 30, 1998, and 
        before January 1, 2010, this section shall apply with 
        respect to coke and coke gas produced in such facility 
        and sold during the period--
                    ``(A) beginning on the later of January 1, 
                2006, or the date that such facility is placed 
                in service, and
                    ``(B) ending on the date which is 4 years 
                after the date such period began.
            ``(2) Special rules.--In determining the amount of 
        credit allowable under this section solely by reason of 
        this subsection--
                    ``(A) Daily limit.--The amount of qualified 
                fuels sold during any taxable year which may be 
                taken into account by reason of this subsection 
                with respect to any facility shall not exceed 
                an average barrel-of-oil equivalent of 4,000 
                barrels per day. Days before the date the 
                facility is placed in service shall not be 
                taken into account in determining such average.
                    ``(B) Extension period to commence with 
                unadjusted credit amount.--For purposes of 
                applying subsection (b)(2) to the $3 amount in 
                subsection (a), in the case of fuels sold after 
                2005, subsection (d)(2)(B) shall be applied by 
                substituting `2004' for `1979'.
                    ``(C) Denial of double benefit.--This 
                subsection shall not apply to any facility 
                producing qualified fuels for which a credit 
                was allowed under this section for the taxable 
                year or any preceding taxable year by reason of 
                subsection (g).''.
    (b) Effective Date.--The amendment made by this section 
shall apply to fuel produced and sold after December 31, 2005, 
in taxable years ending after such date.

SEC. 1322. MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A 
                    NONCONVENTIONAL SOURCE.

    (a) Treatment as Business Credit.--
            (1) Credit moved to subpart relating to business 
        related credits.--The Internal Revenue Code of 1986 is 
        amended by redesignating section 29 as section 45K and 
        by moving section 45K (as so redesignated) from subpart 
        B of part IV of subchapter A of chapter 1 to the end of 
        subpart D of part IV of subchapter A of chapter 1.
            (2) Credit treated as business credit.--Section 
        38(b), as amended by this Act, is amended by striking 
        ``plus'' at the end of paragraph (20), by striking the 
        period at the end of paragraph (21) and inserting ``, 
        plus'', and by adding at the end the following:
            ``(22) the nonconventional source production credit 
        determined under section 45K(a).''.
            (3) Conforming amendments.--
                    (A) Section 30(b)(3)(A) is amended by 
                striking ``sections 27 and 29'' and inserting 
                ``section 27''.
                    (B) Sections 43(b)(2), 45I(b)(2)(C)(i), and 
                613A(c)(6)(C) are each amended by striking 
                ``section 29(d)(2)(C)'' and inserting ``section 
                45K(d)(2)(C)''.
                    (C) Section 45(e)(9), as added by this Act, 
                is amended--
                            (i) by striking ``section 29'' each 
                        place it appears and inserting 
                        ``section 45K'', and
                            (ii) by inserting ``(or under 
                        section 29, as in effect on the day 
                        before the date of enactment of the 
                        Energy Tax Incentives Act of 2005, for 
                        any prior taxable year)'' before the 
                        period at the end thereof.
                    (D) Section 45I is amended--
                            (i) in subsection (c)(2)(A) by 
                        striking ``section 29(d)(5))'' and 
                        inserting ``section 45K(d)(5))'', and
                            (ii) in subsection (d)(3) by 
                        striking ``section 29'' both places it 
                        appears and inserting ``section 45K''.
                    (E) Section 45K(a), as redesignated by 
                paragraph (1), is amended by striking ``There 
                shall be allowed as a credit against the tax 
                imposed by this chapter for the taxable year'' 
                and inserting ``For purposes of section 38, if 
                the taxpayer elects to have this section apply, 
                the nonconventional source production credit 
                determined under this section for the taxable 
                year is''.
                    (F) Section 45K(b), as so redesignated, is 
                amended by striking paragraph (6).
                    (G) Section 53(d)(1)(B)(iii) is amended by 
                striking ``under section 29'' and all that 
                follows through ``or not allowed''.
                    (H) Section 55(c)(3) is amended by striking 
                ``29(b)(6),''.
                    (I) Subsection (a) of section 772 is 
                amended by inserting ``and'' at the end of 
                paragraph (9), by striking paragraph (10), and 
                by redesignating paragraph (11) as paragraph 
                (10).
                    (J) Paragraph (5) of section 772(d) is 
                amended by striking ``the foreign tax credit, 
                and the credit allowable under section 29'' and 
                inserting ``and the foreign tax credit''.
                    (K) The table of sections for subpart B of 
                part IV of subchapter A of chapter 1 is amended 
                by striking the item relating to section 29.
                    (L) The table of sections for subpart D of 
                part IV of subchapter A of chapter 1 is amended 
                by inserting after the item relating to section 
                45I the following new item:

``Sec. 45K. Credit for producing fuel from a nonconventional source.''.

    (b) Amendments Conforming to the Repeal of the Natural Gas 
Policy Act of 1978.--
            (1) In general.--Section 29(c)(2)(A) (before 
        redesignation under subsection (a) and as amended by 
        section 1321) is amended--
                    (A) by inserting ``(as in effect before the 
                repeal of such section)'' after ``1978'', and
                    (B) by striking subsection (e) and 
                redesignating subsections (f), (g), and (h) as 
                subsections (e), (f), and (g), respectively.
            (2) Conforming amendments.--Section 29(g)(1) 
        (before redesignation under subsection (a) and 
        paragraph (1) of this subsection) is amended--
                    (A) in subparagraph (A) by striking 
                ``subsection (f)(1)(B)'' and inserting 
                ``subsection (e)(1)(B)'', and
                    (B) in subparagraph (B) by striking 
                ``subsection (f)'' and inserting ``subsection 
                (e)''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section shall apply to 
        credits determined under the Internal Revenue Code of 
        1986 for taxable years ending after December 31, 2005.
            (2) Subsection (b).--The amendments made by 
        subsection (b) shall take effect on the date of the 
        enactment of this Act.

SEC. 1323. TEMPORARY EXPENSING FOR EQUIPMENT USED IN REFINING OF LIQUID 
                    FUELS.

    (a) In General.--Part VI of subchapter B of chapter 1 is 
amended by inserting after section 179B the following new 
section:

``SEC. 179C. ELECTION TO EXPENSE CERTAIN REFINERIES.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat 
50 percent of the cost of any qualified refinery property as an 
expense which is not chargeable to capital account. Any cost so 
treated shall be allowed as a deduction for the taxable year in 
which the qualified refinery property is placed in service.
    ``(b) Election.--
            ``(1) In general.--An election under this section 
        for any taxable year shall be made on the taxpayer's 
        return of the tax imposed by this chapter for the 
        taxable year. Such election shall be made in such 
        manner as the Secretary may by regulations prescribe.
            ``(2) Election irrevocable.--Any election made 
        under this section may not be revoked except with the 
        consent of the Secretary.
    ``(c) Qualified Refinery Property.--
            ``(1) In general.--The term `qualified refinery 
        property' means any portion of a qualified refinery--
                    ``(A) the original use of which commences 
                with the taxpayer,
                    ``(B) which is placed in service by the 
                taxpayer after the date of the enactment of 
                this section and before January 1, 2012,
                    ``(C) in the case any portion of a 
                qualified refinery (other than a qualified 
                refinery which is separate from any existing 
                refinery), which meets the requirements of 
                subsection (e),
                    ``(D) which meets all applicable 
                environmental laws in effect on the date such 
                portion was placed in service,
                    ``(E) no written binding contract for the 
                construction of which was in effect on or 
                before June 14, 2005, and
                    ``(F)(i) the construction of which is 
                subject to a written binding construction 
                contract entered into before January 1, 2008,
                    ``(ii) which is placed in service before 
                January 1, 2008, or
                    ``(iii) in the case of self-constructed 
                property, the construction of which began after 
                June 14, 2005, and before January 1, 2008.
            ``(2) Special rule for sale-leasebacks.--For 
        purposes of paragraph (1)(A), if property is--
                    ``(A) originally placed in service after 
                the date of the enactment of this section by a 
                person, and
                    ``(B) sold and leased back by such person 
                within 3 months after the date such property 
                was originally placed in service,
        such property shall be treated as originally placed in 
        service not earlier than the date on which such 
        property is used under the leaseback referred to in 
        subparagraph (B).
            ``(3) Effect of waiver under clean air act.--A 
        waiver under the Clean Air Act shall not be taken into 
        account in determining whether the requirements of 
        paragraph (1)(D) are met.
    ``(d) Qualified Refinery.--For purposes of this section, 
the term `qualified refinery' means any refinery located in the 
United States which is designed to serve the primary purpose of 
processing liquid fuel from crude oil or qualified fuels (as 
defined in section 45K(c)).
    ``(e) Production Capacity.--The requirements of this 
subsection are met if the portion of the qualified refinery--
            ``(1) enables the existing qualified refinery to 
        increase total volume output (determined without regard 
        to asphalt or lube oil) by 5 percent or more on an 
        average daily basis, or
            ``(2) enables the existing qualified refinery to 
        process qualified fuels (as defined in section 45K(c)) 
        at a rate which is equal to or greater than 25 percent 
        of the total throughput of such qualified refinery on 
        an average daily basis.
    ``(f) Ineligible Refinery Property.--No deduction shall be 
allowed under subsection (a) for any qualified refinery 
property--
            ``(1) the primary purpose of which is for use as a 
        topping plant, asphalt plant, lube oil facility, crude 
        or product terminal, or blending facility, or
            ``(2) which is built solely to comply with consent 
        decrees or projects mandated by Federal, State, or 
        local governments.
    ``(g) Election to Allocate Deduction to Cooperative 
Owner.--
            ``(1) In general.--If--
                    ``(A) a taxpayer to which subsection (a) 
                applies is an organization to which part I of 
                subchapter T applies, and
                    ``(B) one or more persons directly holding 
                an ownership interest in the taxpayer are 
                organizations to which part I of subchapter T 
                apply,
        the taxpayer may elect to allocate all or a portion of 
        the deduction allowable under subsection (a) to such 
        persons. Such allocation shall be equal to the person's 
        ratable share of the total amount allocated, determined 
        on the basis of the person's ownership interest in the 
        taxpayer. The taxable income of the taxpayer shall not 
        be reduced under section 1382 by reason of any amount 
        to which the preceding sentence applies.
            ``(2) Form and effect of election.--An election 
        under paragraph (1) for any taxable year shall be made 
        on a timely filed return for such year. Such election, 
        once made, shall be irrevocable for such taxable year.
            ``(3) Written notice to owners.--If any portion of 
        the deduction available under subsection (a) is 
        allocated to owners under paragraph (1), the 
        cooperative shall provide any owner receiving an 
        allocation written notice of the amount of the 
        allocation. Such notice shall be provided before the 
        date on which the return described in paragraph (2) is 
        due.
    ``(h) Reporting.--No deduction shall be allowed under 
subsection (a) to any taxpayer for any taxable year unless such 
taxpayer files with the Secretary a report containing such 
information with respect to the operation of the refineries of 
the taxpayer as the Secretary shall require.''.
    (b) Conforming Amendments.--
            (1) Section 1245(a) is amended by inserting 
        ``179C,'' after ``179B,'' both places it appears in 
        paragraphs (2)(C) and (3)(C).
            (2) Section 263(a)(1) is amended by striking ``or'' 
        at the end of subparagraph (H), by striking the period 
        at the end of subparagraph (I) and inserting ``, or'', 
        and by inserting after subparagraph (I) the following 
        new subparagraph:
                    ``(J) expenditures for which a deduction is 
                allowed under section 179C.''.
            (3) Section 312(k)(3)(B) is amended by striking 
        ``179 179A, or 179B'' each place it appears in the 
        heading and text and inserting ``179, 179A, 179B, or 
        179C''.
            (4) The table of sections for part VI of subchapter 
        B of chapter 1 is amended by inserting after the item 
        relating to section 179B the following new item:

``Sec. 179C. Election to expense certain refineries.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to properties placed in service after the date of 
the enactment of this Act.

SEC. 1324. PASS THROUGH TO OWNERS OF DEDUCTION FOR CAPITAL COSTS 
                    INCURRED BY SMALL REFINER COOPERATIVES IN COMPLYING 
                    WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR 
                    REGULATIONS.

    (a) In General.--Section 179B (relating to deduction for 
capital costs incurred in complying with Environmental 
Protection Agency sulfur regulations) is amended by adding at 
the end the following new subsection:
    ``(e) Election to Allocate Deduction to Cooperative 
Owner.--
            ``(1) In general.--If--
                    ``(A) a small business refiner to which 
                subsection (a) applies is an organization to 
                which part I of subchapter T applies, and
                    ``(B) one or more persons directly holding 
                an ownership interest in the refiner are 
                organizations to which part I of subchapter T 
                apply,
        the refiner may elect to allocate all or a portion of 
        the deduction allowable under subsection (a) to such 
        persons. Such allocation shall be equal to the person's 
        ratable share of the total amount allocated, determined 
        on the basis of the person's ownership interest in the 
        taxpayer. The taxable income of the refiner shall not 
        be reduced under section 1382 by reason of any amount 
        to which the preceding sentence applies.
            ``(2) Form and effect of election.--An election 
        under paragraph (1) for any taxable year shall be made 
        on a timely filed return for such year. Such election, 
        once made, shall be irrevocable for such taxable year.
            ``(3) Written notice to owners.--If any portion of 
        the deduction available under subsection (a) is 
        allocated to owners under paragraph (1), the 
        cooperative shall provide any owner receiving an 
        allocation written notice of the amount of the 
        allocation. Such notice shall be provided before the 
        date on which the return described in paragraph (2) is 
        due.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect as if included in the amendment made by 
section 338(a) of the American Jobs Creation Act of 2004.

SEC. 1325. NATURAL GAS DISTRIBUTION LINES TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(E) (defining 15-year 
property), as amended by this Act, is amended by striking 
``and'' at the end of clause (vi), by striking the period at 
the end of clause (vii) and by inserting ``, and'', and by 
adding at the end the following new clause:
                            ``(viii) any natural gas 
                        distribution line the original use of 
                        which commences with the taxpayer after 
                        April 11, 2005, and which is placed in 
                        service before January 1, 2011.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property 
assigned to classes), as amended by this Act, is amended by 
inserting after the item relating to subparagraph (E)(vii) the 
following new item:

``(E)(viii)....................................................... 35''.

    (c) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall apply to property placed in service after 
        April 11, 2005.
            (2) Exception.--The amendments made by this section 
        shall not apply to any property with respect to which 
        the taxpayer or a related party has entered into a 
        binding contract for the construction thereof on or 
        before April 11, 2005, or, in the case of self-
        constructed property, has started construction on or 
        before such date.

SEC. 1326. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY.

    (a) In General.--Subparagraph (C) of section 168(e)(3) 
(relating to classification of certain property) is amended by 
striking ``and'' at the end of clause (iii), by redesignating 
clause (iv) as clause (v), and by inserting after clause (iii) 
the following new clause:
                            ``(iv) any natural gas gathering 
                        line the original use of which 
                        commences with the taxpayer after April 
                        11, 2005, and''.
    (b) Natural Gas Gathering Line.--Subsection (i) of section 
168 is amended by inserting after paragraph (16) the following 
new paragraph:
            ``(17) Natural gas gathering line.--The term 
        `natural gas gathering line' means--
                    ``(A) the pipe, equipment, and 
                appurtenances determined to be a gathering line 
                by the Federal Energy Regulatory Commission, 
                and
                    ``(B) the pipe, equipment, and 
                appurtenances used to deliver natural gas from 
                the wellhead or a commonpoint to the point at 
                which such gas first reaches--
                            ``(i) a gas processing plant,
                            ``(ii) an interconnection with a 
                        transmission pipeline for which a 
                        certificate as an interstate 
                        transmission pipeline has been issued 
                        by the Federal Energy Regulatory 
                        Commission,
                            ``(iii) an interconnection with an 
                        intrastate transmission pipeline, or
                            ``(iv) a direct interconnection 
                        with a local distribution company, a 
                        gas storage facility, or an industrial 
                        consumer.''.
    (c) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property 
assigned to classes), as amended by this Act, is amended by 
inserting after the item relating to subparagraph (C)(iii) the 
following new item:

``(C)(iv)......................................................... 14''.

    (d) Alternative Minimum Tax Exception.--Subparagraph (B) of 
section 56(a)(1) is amended by inserting before the period the 
following: ``, or in section 168(e)(3)(C)(iv)''.
    (e) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall apply to property placed in service after 
        April 11, 2005.
            (2) Exception.--The amendments made by this section 
        shall not apply to any property with respect to which 
        the taxpayer or a related party has entered into a 
        binding contract for the construction thereof on or 
        before April 11, 2005, or, in the case of self-
        constructed property, has started construction on or 
        before such date.

SEC. 1327. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS.

    (a) In General.--Subsection (b) of section 148 (relating to 
higher yielding investments) is amended by adding at the end 
the following new paragraph:
            ``(4) Safe harbor for prepaid natural gas.--
                    ``(A) In general.--The term `investment-
                type property' does not include a prepayment 
                under a qualified natural gas supply contract.
                    ``(B) Qualified natural gas supply 
                contract.--For purposes of this paragraph, the 
                term `qualified natural gas supply contract' 
                means any contract to acquire natural gas for 
                resale by a utility owned by a governmental 
                unit if the amount of gas permitted to be 
                acquired under the contract by the utility 
                during any year does not exceed the sum of--
                            ``(i) the annual average amount 
                        during the testing period of natural 
                        gas purchased (other than for resale) 
                        by customers of such utility who are 
                        located within the service area of such 
                        utility, and
                            ``(ii) the amount of natural gas to 
                        be used to transport the prepaid 
                        natural gas to the utility during such 
                        year.
                    ``(C) Natural gas used to generate 
                electricity.--Natural gas used to generate 
                electricity shall be taken into account in 
                determining the average under subparagraph 
                (B)(i)--
                            ``(i) only if the electricity is 
                        generated by a utility owned by a 
                        governmental unit, and
                            ``(ii) only to the extent that the 
                        electricity is sold (other than for 
                        resale) to customers of such utility 
                        who are located within the service area 
                        of such utility.
                    ``(D) Adjustments for changes in customer 
                base.--
                            ``(i) New business customers.--If--
                                    ``(I) after the close of 
                                the testing period and before 
                                the date of issuance of the 
                                issue, the utility owned by a 
                                governmental unit enters into a 
                                contract to supply natural gas 
                                (other than for resale) for a 
                                business use at a property 
                                within the service area of such 
                                utility, and
                                    ``(II) the utility did not 
                                supply natural gas to such 
                                property during the testing 
                                period or the ratable amount of 
                                natural gas to be supplied 
                                under the contract is 
                                significantly greater than the 
                                ratable amount of gas supplied 
                                to such property during the 
                                testing period,
                        then a contract shall not fail to be 
                        treated as a qualified natural gas 
                        supply contract by reason of supplying 
                        the additional natural gas under the 
                        contract referred to in subclause (I).
                            ``(ii) Lost customers.--The average 
                        under subparagraph (B)(i) shall not 
                        exceed the annual amount of natural gas 
                        reasonably expected to be purchased 
                        (other than for resale) by persons who 
                        are located within the service area of 
                        such utility and who, as of the date of 
                        issuance of the issue, are customers of 
                        such utility.
                    ``(E) Ruling requests.--The Secretary may 
                increase the average under subparagraph (B)(i) 
                for any period if the utility owned by the 
                governmental unit establishes to the 
                satisfaction of the Secretary that, based on 
                objective evidence of growth in natural gas 
                consumption or population, such average would 
                otherwise be insufficient for such period.
                    ``(F) Adjustment for natural gas otherwise 
                on hand.--
                            ``(i) In general.--The amount 
                        otherwise permitted to be acquired 
                        under the contract for any period shall 
                        be reduced by--
                                    ``(I) the applicable share 
                                of natural gas held by the 
                                utility on the date of issuance 
                                of the issue, and
                                    ``(II) the natural gas (not 
                                taken into account under 
                                subclause (I)) which the 
                                utility has a right to acquire 
                                during such period (determined 
                                as of the date of issuance of 
                                the issue).
                            ``(ii) Applicable share.--For 
                        purposes of the clause (i), the term 
                        `applicable share' means, with respect 
                        to any period, the natural gas 
                        allocable to such period if the gas 
                        were allocated ratably over the period 
                        to which the prepayment relates.
                    ``(G) Intentional acts.--Subparagraph (A) 
                shall cease to apply to any issue if the 
                utility owned by the governmental unit engages 
                in any intentional act to render the volume of 
                natural gas acquired by such prepayment to be 
                in excess of the sum of--
                            ``(i) the amount of natural gas 
                        needed (other than for resale) by 
                        customers of such utility who are 
                        located within the service area of such 
                        utility, and
                            ``(ii) the amount of natural gas 
                        used to transport such natural gas to 
                        the utility.
                    ``(H) Testing period.--For purposes of this 
                paragraph, the term `testing period' means, 
                with respect to an issue, the most recent 5 
                calendar years ending before the date of 
                issuance of the issue.
                    ``(I) Service area.--For purposes of this 
                paragraph, the service area of a utility owned 
                by a governmental unit shall be comprised of--
                            ``(i) any area throughout which 
                        such utility provided at all times 
                        during the testing period--
                                    ``(I) in the case of a 
                                natural gas utility, natural 
                                gas transmission or 
                                distribution services, and
                                    ``(II) in the case of an 
                                electric utility, electricity 
                                distribution services,
                            ``(ii) any area within a county 
                        contiguous to the area described in 
                        clause (i) in which retail customers of 
                        such utility are located if such area 
                        is not also served by another utility 
                        providing natural gas or electricity 
                        services, as the case may be, and
                            ``(iii) any area recognized as the 
                        service area of such utility under 
                        State or Federal law.''.
    (b) Private Loan Financing Test Not to Apply to Prepayments 
for Natural Gas.--Paragraph (2) of section 141(c) (providing 
exceptions to the private loan financing test) is amended by 
striking ``or'' at the end of subparagraph (A), by striking the 
period at the end of subparagraph (B) and inserting ``, or'', 
and by adding at the end the following new subparagraph:
                    ``(C) is a qualified natural gas supply 
                contract (as defined in section 148(b)(4)).''.
    (c) Exception for Qualified Electric and Natural Gas Supply 
Contracts.--Section 141(d) is amended by adding at the end the 
following new paragraph:
            ``(7) Exception for qualified electric and natural 
        gas supply contracts.--The term `nongovernmental output 
        property' shall not include any contract for the 
        prepayment of electricity or natural gas which is not 
        investment property under section 148(b)(2).''.
    (d) Effective Date.--The amendments made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1328. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL DEPLETION 
                    DEDUCTION.

    (a) In General.--Paragraph (4) of section 613A(d) (relating 
to limitations on application of subsection (c)) is amended to 
read as follows:
            ``(4) Certain refiners excluded.--If the taxpayer 
        or 1 or more related persons engages in the refining of 
        crude oil, subsection (c) shall not apply to the 
        taxpayer for a taxable year if the average daily 
        refinery runs of the taxpayer and such persons for the 
        taxable year exceed 75,000 barrels. For purposes of 
        this paragraph, the average daily refinery runs for any 
        taxable year shall be determined by dividing the 
        aggregate refinery runs for the taxable year by the 
        number of days in the taxable year.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years ending after the date of the 
enactment of this Act.

SEC. 1329. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

    (a) In General.--Section 167 (relating to depreciation) is 
amended by redesignating subsection (h) as subsection (i) and 
by inserting after subsection (g) the following new subsection:
    ``(h) Amortization of Geological and Geophysical 
Expenditures.--
            ``(1) In general.--Any geological and geophysical 
        expenses paid or incurred in connection with the 
        exploration for, or development of, oil or gas within 
        the United States (as defined in section 638) shall be 
        allowed as a deduction ratably over the 24-month period 
        beginning on the date that such expense was paid or 
        incurred.
            ``(2) Half-year convention.--For purposes of 
        paragraph (1), any payment paid or incurred during the 
        taxable year shall be treated as paid or incurred on 
        the mid-point of such taxable year.
            ``(3) Exclusive method.--Except as provided in this 
        subsection, no depreciation or amortization deduction 
        shall be allowed with respect to such payments.
            ``(4) Treatment upon abandonment.--If any property 
        with respect to which geological and geophysical 
        expenses are paid or incurred is retired or abandoned 
        during the 24-month period described in paragraph (1), 
        no deduction shall be allowed on account of such 
        retirement or abandonment and the amortization 
        deduction under this subsection shall continue with 
        respect to such payment.''.
    (b) Conforming Amendment.--Section 263A(c)(3) is amended by 
inserting ``167(h),'' after ``under section''.
    (c) Effective Date.--The amendments made by this section 
shall apply to amounts paid or incurred in taxable years 
beginning after the date of the enactment of this Act.

       Subtitle C--Conservation and Energy Efficiency Provisions

SEC. 1331. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) In General.--Part VI of subchapter B of chapter 1 
(relating to itemized deductions for individuals and 
corporations), as amended by this Act, is amended by inserting 
after section 179C the following new section:

``SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    ``(a) In General.--There shall be allowed as a deduction an 
amount equal to the cost of energy efficient commercial 
building property placed in service during the taxable year.
    ``(b) Maximum Amount of Deduction.--The deduction under 
subsection (a) with respect to any building for any taxable 
year shall not exceed the excess (if any) of--
            ``(1) the product of--
                    ``(A) $1.80, and
                    ``(B) the square footage of the building, 
                over
            ``(2) the aggregate amount of the deductions under 
        subsection (a) with respect to the building for all 
        prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Energy efficient commercial building 
        property.--The term `energy efficient commercial 
        building property' means property--
                    ``(A) with respect to which depreciation 
                (or amortization in lieu of depreciation) is 
                allowable,
                    ``(B) which is installed on or in any 
                building which is--
                            ``(i) located in the United States, 
                        and
                            ``(ii) within the scope of Standard 
                        90.1-2001,
                    ``(C) which is installed as part of--
                            ``(i) the interior lighting 
                        systems,
                            ``(ii) the heating, cooling, 
                        ventilation, and hot water systems, or
                            ``(iii) the building envelope, and
                    ``(D) which is certified in accordance with 
                subsection (d)(6) as being installed as part of 
                a plan designed to reduce the total annual 
                energy and power costs with respect to the 
                interior lighting systems, heating, cooling, 
                ventilation, and hot water systems of the 
                building by 50 percent or more in comparison to 
                a reference building which meets the minimum 
                requirements of Standard 90.1-2001 using 
                methods of calculation under subsection (d)(2).
            ``(2) Standard 90.1-2001.--The term `Standard 90.1-
        2001' means Standard 90.1-2001 of the American Society 
        of Heating, Refrigerating, and Air Conditioning 
        Engineers and the Illuminating Engineering Society of 
        North America (as in effect on April 2, 2003).
    ``(d) Special Rules.--
            ``(1) Partial allowance.--
                    ``(A) In general.--Except as provided in 
                subsection (f), if--
                            ``(i) the requirement of subsection 
                        (c)(1)(D) is not met, but
                            ``(ii) there is a certification in 
                        accordance with paragraph (6) that any 
                        system referred to in subsection 
                        (c)(1)(C) satisfies the energy-savings 
                        targets established by the Secretary 
                        under subparagraph (B) with respect to 
                        such system,
                then the requirement of subsection (c)(1)(D) 
                shall be treated as met with respect to such 
                system, and the deduction under subsection (a) 
                shall be allowed with respect to energy 
                efficient commercial building property 
                installed as part of such system and as part of 
                a plan to meet such targets, except that 
                subsection (b) shall be applied to such 
                property by substituting `$.60' for `$1.80'.
                    ``(B) Regulations.--The Secretary, after 
                consultation with the Secretary of Energy, 
                shall establish a target for each system 
                described in subsection (c)(1)(C) which, if 
                such targets were met for all such systems, the 
                building would meet the requirements of 
                subsection (c)(1)(D).
            ``(2) Methods of calculation.--The Secretary, after 
        consultation with the Secretary of Energy, shall 
        promulgate regulations which describe in detail methods 
        for calculating and verifying energy and power 
        consumption and cost, based on the provisions of the 
        2005 California Nonresidential Alternative Calculation 
        Method Approval Manual.
            ``(3) Computer software.--
                    ``(A) In general.--Any calculation under 
                paragraph (2) shall be prepared by qualified 
                computer software.
                    ``(B) Qualified computer software.--For 
                purposes of this paragraph, the term `qualified 
                computer software' means software--
                            ``(i) for which the software 
                        designer has certified that the 
                        software meets all procedures and 
                        detailed methods for calculating energy 
                        and power consumption and costs as 
                        required by the Secretary,
                            ``(ii) which provides such forms as 
                        required to be filed by the Secretary 
                        in connection with energy efficiency of 
                        property and the deduction allowed 
                        under this section, and
                            ``(iii) which provides a notice 
                        form which documents the energy 
                        efficiency features of the building and 
                        its projected annual energy costs.
            ``(4) Allocation of deduction for public 
        property.--In the case of energy efficient commercial 
        building property installed on or in property owned by 
        a Federal, State, or local government or a political 
        subdivision thereof, the Secretary shall promulgate a 
        regulation to allow the allocation of the deduction to 
        the person primarily responsible for designing the 
        property in lieu of the owner of such property. Such 
        person shall be treated as the taxpayer for purposes of 
        this section.
            ``(5) Notice to owner.--Each certification required 
        under this section shall include an explanation to the 
        building owner regarding the energy efficiency features 
        of the building and its projected annual energy costs 
        as provided in the notice under paragraph (3)(B)(iii).
            ``(6) Certification.--
                    ``(A) In general.--The Secretary shall 
                prescribe the manner and method for the making 
                of certifications under this section.
                    ``(B) Procedures.--The Secretary shall 
                include as part of the certification process 
                procedures for inspection and testing by 
                qualified individuals described in subparagraph 
                (C) to ensure compliance of buildings with 
                energy-savings plans and targets. Such 
                procedures shall be comparable, given the 
                difference between commercial and residential 
                buildings, to the requirements in the Mortgage 
                Industry National Accreditation Procedures for 
                Home Energy Rating Systems.
                    ``(C) Qualified individuals.--Individuals 
                qualified to determine compliance shall be only 
                those individuals who are recognized by an 
                organization certified by the Secretary for 
                such purposes.
    ``(e) Basis Reduction.--For purposes of this subtitle, if a 
deduction is allowed under this section with respect to any 
energy efficient commercial building property, the basis of 
such property shall be reduced by the amount of the deduction 
so allowed.
    ``(f) Interim Rules for Lighting Systems.--Until such time 
as the Secretary issues final regulations under subsection 
(d)(1)(B) with respect to property which is part of a lighting 
system--
            ``(1) In general.--The lighting system target under 
        subsection (d)(1)(A)(ii) shall be a reduction in 
        lighting power density of 25 percent (50 percent in the 
        case of a warehouse) of the minimum requirements in 
        Table 9.3.1.1 or Table 9.3.1.2 (not including 
        additional interior lighting power allowances) of 
        Standard 90.1-2001.
            ``(2) Reduction in deduction if reduction less than 
        40 percent.--
                    ``(A) In general.--If, with respect to the 
                lighting system of any building other than a 
                warehouse, the reduction in lighting power 
                density of the lighting system is not at least 
                40 percent, only the applicable percentage of 
                the amount of deduction otherwise allowable 
                under this section with respect to such 
                property shall be allowed.
                    ``(B) Applicable percentage.--For purposes 
                of subparagraph (A), the applicable percentage 
                is the number of percentage points (not greater 
                than 100) equal to the sum of--
                            ``(i) 50, and
                            ``(ii) the amount which bears the 
                        same ratio to 50 as the excess of the 
                        reduction of lighting power density of 
                        the lighting system over 25 percentage 
                        points bears to 15.
                    ``(C) Exceptions.--This subsection shall 
                not apply to any system--
                            ``(i) the controls and circuiting 
                        of which do not comply fully with the 
                        mandatory and prescriptive requirements 
                        of Standard 90.1-2001 and which do not 
                        include provision for bilevel switching 
                        in all occupancies except hotel and 
                        motel guest rooms, store rooms, 
                        restrooms, and public lobbies, or
                            ``(ii) which does not meet the 
                        minimum requirements for calculated 
                        lighting levels as set forth in the 
                        Illuminating Engineering Society of 
                        North America Lighting Handbook, 
                        Performance and Application, Ninth 
                        Edition, 2000.
    ``(g) Regulations.--The Secretary shall promulgate such 
regulations as necessary--
            ``(1) to take into account new technologies 
        regarding energy efficiency and renewable energy for 
        purposes of determining energy efficiency and savings 
        under this section, and
            ``(2) to provide for a recapture of the deduction 
        allowed under this section if the plan described in 
        subsection (c)(1)(D) or (d)(1)(A) is not fully 
        implemented.
    ``(h) Termination.--This section shall not apply with 
respect to property placed in service after December 31, 
2007.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) is amended by striking ``and'' 
        at the end of paragraph (30), by striking the period at 
        the end of paragraph (31) and inserting ``, and'', and 
        by adding at the end the following new paragraph:
            ``(32) to the extent provided in section 
        179D(e).''.
            (2) Section 1245(a), as amended by this Act, is 
        amended by inserting ``179D,'' after ``179C,'' both 
        places it appears in paragraphs (2)(C) and (3)(C).
            (3) Section 1250(b)(3) is amended by inserting 
        before the period at the end of the first sentence ``or 
        by section 179D''.
            (4) Section 263(a)(1), as amended by this Act, is 
        amended by striking ``or'' at the end of subparagraph 
        (I), by striking the period at the end of subparagraph 
        (J) and inserting ``, or'', and by inserting after 
        subparagraph (J) the following new subparagraph:
                    ``(K) expenditures for which a deduction is 
                allowed under section 179D.''.
            (5) Section 312(k)(3)(B), as amended by this Act, 
        is amended by striking ``179, 179A, 179B, or 179C'' 
        each place it appears in the heading and text and 
        inserting ``179, 179A, 179B, 179C, or 179D''.
    (c) Clerical Amendment.--The table of sections for part VI 
of subchapter B of chapter 1, as amended by this Act, is 
amended by inserting after section 179C the following new item:

    ``Sec. 179D. Energy efficient commercial buildings deduction.''.

    (d) Effective Date.--The amendments made by this section 
shall apply to property placed in service after December 31, 
2005.

SEC. 1332. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT HOMES.

    (a) In General.--Subpart D of part IV of subchapter A of 
chapter 1 (relating to business related credits), as amended by 
this Act, is amended by adding at the end the following new 
section:

``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, in 
        the case of an eligible contractor, the new energy 
        efficient home credit for the taxable year is the 
        applicable amount for each qualified new energy 
        efficient home which is--
                    ``(A) constructed by the eligible 
                contractor, and
                    ``(B) acquired by a person from such 
                eligible contractor for use as a residence 
                during the taxable year.
            ``(2) Applicable amount.--For purposes of paragraph 
        (1), the applicable amount is an amount equal to--
                    ``(A) in the case of a dwelling unit 
                described in paragraph (1) or (2) of subsection 
                (c), $2,000, and
                    ``(B) in the case of a dwelling unit 
                described in paragraph (3) of subsection (c), 
                $1,000.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible contractor.--The term `eligible 
        contractor' means--
                    ``(A) the person who constructed the 
                qualified new energy efficient home, or
                    ``(B) in the case of a qualified new energy 
                efficient home which is a manufactured home, 
                the manufactured home producer of such home.
            ``(2) Qualified new energy efficient home.--The 
        term `qualified new energy efficient home' means a 
        dwelling unit--
                    ``(A) located in the United States,
                    ``(B) the construction of which is 
                substantially completed after the date of the 
                enactment of this section, and
                    ``(C) which meets the energy saving 
                requirements of subsection (c).
            ``(3) Construction.--The term `construction' 
        includes substantial reconstruction and rehabilitation.
            ``(4) Acquire.--The term `acquire' includes 
        purchase.
    ``(c) Energy Saving Requirements.--A dwelling unit meets 
the energy saving requirements of this subsection if such unit 
is--
            ``(1) certified--
                    ``(A) to have a level of annual heating and 
                cooling energy consumption which is at least 50 
                percent below the annual level of heating and 
                cooling energy consumption of a comparable 
                dwelling unit--
                            ``(i) which is constructed in 
                        accordance with the standards of 
                        chapter 4 of the 2003 International 
                        Energy Conservation Code, as such Code 
                        (including supplements) is in effect on 
                        the date of the enactment of this 
                        section, and
                            ``(ii) for which the heating and 
                        cooling equipment efficiencies 
                        correspond to the minimum allowed under 
                        the regulations established by the 
                        Department of Energy pursuant to the 
                        National Appliance Energy Conservation 
                        Act of 1987 and in effect at the time 
                        of completion of construction, and
                    ``(B) to have building envelope component 
                improvements account for at least \1/5\ of such 
                50 percent,
            ``(2) a manufactured home which conforms to Federal 
        Manufactured Home Construction and Safety Standards 
        (section 3280 of title 24, Code of Federal Regulations) 
        and which meets the requirements of paragraph (1), or
            ``(3) a manufactured home which conforms to Federal 
        Manufactured Home Construction and Safety Standards 
        (section 3280 of title 24, Code of Federal Regulations) 
        and which--
                    ``(A) meets the requirements of paragraph 
                (1) applied by substituting `30 percent' for 
                `50 percent' both places it appears therein and 
                by substituting `\1/3\' for `\1/5\' in 
                subparagraph (B) thereof, or
                    ``(B) meets the requirements established by 
                the Administrator of the Environmental 
                Protection Agency under the Energy Star Labeled 
                Homes program.
    ``(d) Certification.--
            ``(1) Method of certification.--A certification 
        described in subsection (c) shall be made in accordance 
        with guidance prescribed by the Secretary, after 
        consultation with the Secretary of Energy. Such 
        guidance shall specify procedures and methods for 
        calculating energy and cost savings.
            ``(2) Form.--Any certification described in 
        subsection (c) shall be made in writing in a manner 
        which specifies in readily verifiable fashion the 
        energy efficient building envelope components and 
        energy efficient heating or cooling equipment installed 
        and their respective rated energy efficiency 
        performance.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if 
a credit is allowed under this section in connection with any 
expenditure for any property, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditure shall be reduced by the amount of the credit so 
determined.
    ``(f) Coordination With Investment Credit.--For purposes of 
this section, expenditures taken into account under section 47 
or 48(a) shall not be taken into account under this section.
    ``(g) Termination.--This section shall not apply to any 
qualified new energy efficient home acquired after December 31, 
2007.''.
    (b) Credit Made Part of General Business Credit.--Section 
38(b) (relating to current year business credit), as amended by 
this Act, is amended by striking ``plus'' at the end of 
paragraph (21), by striking the period at the end of paragraph 
(22) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(23) the new energy efficient home credit 
        determined under section 45L(a).''.
    (c) Basis Adjustment.--Subsection (a) of section 1016, as 
amended by this Act, is amended by striking ``and'' at the end 
of paragraph (31), by striking the period at the end of 
paragraph (32) and inserting ``, and'', and by adding at the 
end the following new paragraph:
            ``(33) to the extent provided in section 45L(e), in 
        the case of amounts with respect to which a credit has 
        been allowed under section 45L.''.
    (d) Deduction for Certain Unused Business Credits.--Section 
196(c) (defining qualified business credits) is amended by 
striking ``and'' at the end of paragraph (11), by striking the 
period at the end of paragraph (12) and inserting ``, and'', 
and by adding after paragraph (12) the following new paragraph:
            ``(13) the new energy efficient home credit 
        determined under section 45L(a).''.
    (e) Clerical Amendment.--The table of sections for subpart 
D of part IV of subchapter A of chapter 1, as amended by this 
Act, is amended by adding at the end the following new item:

    ``Sec. 45L. New energy efficient home credit.''.

    (f) Effective Date.--The amendments made by this section 
shall apply to qualified new energy efficient homes acquired 
after December 31, 2005, in taxable years ending after such 
date.

SEC. 1333. CREDIT FOR CERTAIN NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of 
chapter 1 (relating to nonrefundable personal credits) is 
amended by inserting after section 25B the following new 
section:

``SEC. 25C. NONBUSINESS ENERGY PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, 
there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum 
of--
            ``(1) 10 percent of the amount paid or incurred by 
        the taxpayer for qualified energy efficiency 
        improvements installed during such taxable year, and
            ``(2) the amount of the residential energy property 
        expenditures paid or incurred by the taxpayer during 
        such taxable year.
    ``(b) Limitations.--
            ``(1) Lifetime limitation.--The credit allowed 
        under this section with respect to any taxpayer for any 
        taxable year shall not exceed the excess (if any) of 
        $500 over the aggregate credits allowed under this 
        section with respect to such taxpayer for all prior 
        taxable years.
            ``(2) Windows.--In the case of amounts paid or 
        incurred for components described in subsection 
        (c)(3)(B) by any taxpayer for any taxable year, the 
        credit allowed under this section with respect to such 
        amounts for such year shall not exceed the excess (if 
        any) of $200 over the aggregate credits allowed under 
        this section with respect to such amounts for all prior 
        taxable years.
            ``(3) Limitation on residential energy property 
        expenditures.--The amount of the credit allowed under 
        this section by reason of subsection (a)(2) shall not 
        exceed--
                    ``(A) $50 for any advanced main air 
                circulating fan,
                    ``(B) $150 for any qualified natural gas, 
                propane, or oil furnace or hot water boiler, 
                and
                    ``(C) $300 for any item of energy-efficient 
                building property.
    ``(c) Qualified Energy Efficiency Improvements.--For 
purposes of this section--
            ``(1) In general.--The term `qualified energy 
        efficiency improvements' means any energy efficient 
        building envelope component which meets the 
        prescriptive criteria for such component established by 
        the 2000 International Energy Conservation Code, as 
        such Code (including supplements) is in effect on the 
        date of the enactment of this section (or, in the case 
        of a metal roof with appropriate pigmented coatings 
        which meet the Energy Star program requirements), if--
                    ``(A) such component is installed in or on 
                a dwelling unit located in the United States 
                and owned and used by the taxpayer as the 
                taxpayer's principal residence (within the 
                meaning of section 121),
                    ``(B) the original use of such component 
                commences with the taxpayer, and
                    ``(C) such component reasonably can be 
                expected to remain in use for at least 5 years.
            ``(2) Building envelope component.--The term 
        `building envelope component' means--
                    ``(A) any insulation material or system 
                which is specifically and primarily designed to 
                reduce the heat loss or gain of a dwelling unit 
                when installed in or on such dwelling unit,
                    ``(B) exterior windows (including 
                skylights),
                    ``(C) exterior doors, and
                    ``(D) any metal roof installed on a 
                dwelling unit, but only if such roof has 
                appropriate pigmented coatings which are 
                specifically and primarily designed to reduce 
                the heat gain of such dwelling unit.
            ``(3) Manufactured homes included.--The term 
        `dwelling unit' includes a manufactured home which 
        conforms to Federal Manufactured Home Construction and 
        Safety Standards (section 3280 of title 24, Code of 
        Federal Regulations).
    ``(d) Residential Energy Property Expenditures.--For 
purposes of this section--
            ``(1) In general.--The term `residential energy 
        property expenditures' means expenditures made by the 
        taxpayer for qualified energy property which is--
                    ``(A) installed on or in connection with a 
                dwelling unit located in the United States and 
                owned and used by the taxpayer as the 
                taxpayer's principal residence (within the 
                meaning of section 121), and
                    ``(B) originally placed in service by the 
                taxpayer.
        Such term includes expenditures for labor costs 
        properly allocable to the onsite preparation, assembly, 
        or original installation of the property.
            ``(2) Qualified energy property.--
                    ``(A) In general.--The term `qualified 
                energy property' means--
                            ``(i) energy-efficient building 
                        property,
                            ``(ii) a qualified natural gas, 
                        propane, or oil furnace or hot water 
                        boiler, or
                            ``(iii) an advanced main air 
                        circulating fan.
                    ``(B) Performance and quality standards.--
                Property described under subparagraph (A) shall 
                meet the performance and quality standards, and 
                the certification requirements (if any), 
                which--
                            ``(i) have been prescribed by the 
                        Secretary by regulations (after 
                        consultation with the Secretary of 
                        Energy or the Administrator of the 
                        Environmental Protection Agency, as 
                        appropriate), and
                            ``(ii) are in effect at the time of 
                        the acquisition of the property, or at 
                        the time of the completion of the 
                        construction, reconstruction, or 
                        erection of the property, as the case 
                        may be.
                    ``(C) Requirements for standards.--The 
                standards and requirements prescribed by the 
                Secretary under subparagraph (B)--
                            ``(i) in the case of the energy 
                        efficiency ratio (EER) for central air 
                        conditioners and electric heat pumps--
                                    ``(I) shall require 
                                measurements to be based on 
                                published data which is tested 
                                by manufacturers at 95 degrees 
                                Fahrenheit, and
                                    ``(II) may be based on the 
                                certified data of the Air 
                                Conditioning and Refrigeration 
                                Institute that are prepared in 
                                partnership with the Consortium 
                                for Energy Efficiency, and
                            ``(ii) in the case of geothermal 
                        heat pumps--
                                    ``(I) shall be based on 
                                testing under the conditions of 
                                ARI/ISO Standard 13256-1 for 
                                Water Source Heat Pumps or ARI 
                                870 for Direct Expansion 
                                GeoExchange Heat Pumps (DX), as 
                                appropriate, and
                                    ``(II) shall include 
                                evidence that water heating 
                                services have been provided 
                                through a desuperheater or 
                                integrated water heating system 
                                connected to the storage water 
                                heater tank.
            ``(3) Energy-efficient building property.--The term 
        `energy-efficient building property' means--
                    ``(A) an electric heat pump water heater 
                which yields an energy factor of at least 2.0 
                in the standard Department of Energy test 
                procedure,
                    ``(B) an electric heat pump which has a 
                heating seasonal performance factor (HSPF) of 
                at least 9, a seasonal energy efficiency ratio 
                (SEER) of at least 15, and an energy efficiency 
                ratio (EER) of at least 13,
                    ``(C) a geothermal heat pump which--
                            ``(i) in the case of a closed loop 
                        product, has an energy efficiency ratio 
                        (EER) of at least 14.1 and a heating 
                        coefficient of performance (COP) of at 
                        least 3.3,
                            ``(ii) in the case of an open loop 
                        product, has an energy efficiency ratio 
                        (EER) of at least 16.2 and a heating 
                        coefficient of performance (COP) of at 
                        least 3.6, and
                            ``(iii) in the case of a direct 
                        expansion (DX) product, has an energy 
                        efficiency ratio (EER) of at least 15 
                        and a heating coefficient of 
                        performance (COP) of at least 3.5,
                    ``(D) a central air conditioner which 
                achieves the highest efficiency tier 
                established by the Consortium for Energy 
                Efficiency, as in effect on January 1, 2006, 
                and
                    ``(E) a natural gas, propane, or oil water 
                heater which has an energy factor of at least 
                0.80.
            ``(4) Qualified natural gas, propane, or oil 
        furnace or hot water boiler.--The term `qualified 
        natural gas, propane, or oil furnace or hot water 
        boiler' means a natural gas, propane, or oil furnace or 
        hot water boiler which achieves an annual fuel 
        utilization efficiency rate of not less than 95.
            ``(5) Advanced main air circulating fan.--The term 
        `advanced main air circulating fan' means a fan used in 
        a natural gas, propane, or oil furnace and which has an 
        annual electricity use of no more than 2 percent of the 
        total annual energy use of the furnace (as determined 
        in the standard Department of Energy test procedures).
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Application of rules.--Rules similar to the 
        rules under paragraphs (4), (5), (6), (7), (8), and (9) 
        of section 25D(e) shall apply.
            ``(2) Joint ownership of energy items.--
                    ``(A) In general.--Any expenditure 
                otherwise qualifying as an expenditure under 
                this section shall not be treated as failing to 
                so qualify merely because such expenditure was 
                made with respect to 2 or more dwelling units.
                    ``(B) Limits applied separately.--In the 
                case of any expenditure described in 
                subparagraph (A), the amount of the credit 
                allowable under subsection (a) shall (subject 
                to paragraph (1)) be computed separately with 
                respect to the amount of the expenditure made 
                for each dwelling unit.
    ``(f) Basis Adjustments.--For purposes of this subtitle, if 
a credit is allowed under this section for any expenditure with 
respect to any property, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditure shall be reduced by the amount of the credit so 
allowed.
    ``(g) Termination.--This section shall not apply with 
respect to any property placed in service after December 31, 
2007.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016, as amended by 
        this Act, is amended by striking ``and'' at the end of 
        paragraph (32), by striking the period at the end of 
        paragraph (33) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(34) to the extent provided in section 25C(e), in 
        the case of amounts with respect to which a credit has 
        been allowed under section 25C.''.
            (2) The table of sections for subpart A of part IV 
        of subchapter A of chapter 1 is amended by inserting 
        after the item relating to section 25B the following 
        new item:

    ``Sec. 25C. Nonbusiness energy property.''.

    (c) Effective Dates.--The amendments made by this section 
shall apply to property placed in service after December 31, 
2005.

SEC. 1334. CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) In General.--Subpart D of part IV of subchapter A of 
chapter 1 (relating to business-related credits), as amended by 
this Act, is amended by adding at the end the following new 
section:

``SEC. 45M. ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) General Rule.--
            ``(1) In general.--For purposes of section 38, the 
        energy efficient appliance credit determined under this 
        section for any taxable year is an amount equal to the 
        sum of the credit amounts determined under paragraph 
        (2) for each type of qualified energy efficient 
        appliance produced by the taxpayer during the calendar 
        year ending with or within the taxable year.
            ``(2) Credit amounts.--The credit amount determined 
        for any type of qualified energy efficient appliance 
        is--
                    ``(A) the applicable amount determined 
                under subsection (b) with respect to such type, 
                multiplied by
                    ``(B) the eligible production for such 
                type.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a)--
                    ``(A) Dishwashers.--The applicable amount 
                is the energy savings amount in the case of a 
                dishwasher which--
                            ``(i) is manufactured in calendar 
                        year 2006 or 2007, and
                            ``(ii) meets the requirements of 
                        the Energy Star program which are in 
                        effect for dishwashers in 2007.
                    ``(B) Clothes washers.--The applicable 
                amount is $100 in the case of a clothes washer 
                which--
                            ``(i) is manufactured in calendar 
                        year 2006 or 2007, and
                            ``(ii) meets the requirements of 
                        the Energy Star program which are in 
                        effect for clothes washers in 2007.
                    ``(C) Refrigerators.--
                            ``(i) 15 percent savings.--The 
                        applicable amount is $75 in the case of 
                        a refrigerator which--
                                    ``(I) is manufactured in 
                                calendar year 2006, and
                                    ``(II) consumes at least 15 
                                percent but not more than 20 
                                percent less kilowatt hours per 
                                year than the 2001 energy 
                                conservation standards.
                            ``(ii) 20 percent savings.--The 
                        applicable amount is $125 in the case 
                        of a refrigerator which--
                                    ``(I) is manufactured in 
                                calendar year 2006 or 2007, and
                                    ``(II) consumes at least 20 
                                percent but not more than 25 
                                percent less kilowatt hours per 
                                year than the 2001 energy 
                                conservation standards.
                            ``(iii) 25 percent savings.--The 
                        applicable amount is $175 in the case 
                        of a refrigerator which--
                                    ``(I) is manufactured in 
                                calendar year 2006 or 2007, and
                                    ``(II) consumes at least 25 
                                percent less kilowatt hours per 
                                year than the 2001 energy 
                                conservation standards.
            ``(2) Energy savings amount.--For purposes of 
        paragraph (1)(A)--
                    ``(A) In general.--The energy savings 
                amount is the lesser of--
                            ``(i) the product of--
                                    ``(I) $3, and
                                    ``(II) 100 multiplied by 
                                the energy savings percentage, 
                                or
                            ``(ii) $100.
                    ``(B) Energy savings percentage.--For 
                purposes of subparagraph (A), the energy 
                savings percentage is the ratio of--
                            ``(i) the EF required by the Energy 
                        Star program for dishwashers in 2007 
                        minus the EF required by the Energy 
                        Star program for dishwashers in 2005, 
                        to
                            ``(ii) the EF required by the 
                        Energy Star program for dishwashers in 
                        2007.
    ``(c) Eligible Production.--
            ``(1) In general.--Except as provided in paragraphs 
        (2), the eligible production in a calendar year with 
        respect to each type of energy efficient appliance is 
        the excess of--
                    ``(A) the number of appliances of such type 
                which are produced by the taxpayer in the 
                United States during such calendar year, over
                    ``(B) the average number of appliances of 
                such type which were produced by the taxpayer 
                (or any predecessor) in the United States 
                during the preceding 3-calendar-year period.
            ``(2) Special rule for refrigerators.--The eligible 
        production in a calendar year with respect to each type 
        of refrigerator described in subsection (b)(1)(C) is 
        the excess of--
                    ``(A) the number of appliances of such type 
                which are produced by the taxpayer in the 
                United States during such calendar year, over
                    ``(B) 110 percent of the average number of 
                appliances of such type which were produced by 
                the taxpayer (or any predecessor) in the United 
                States during the preceding 3-calendar-year 
                period.
    ``(d) Types of Energy Efficient Appliance.--For purposes of 
this section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection 
        (b)(1)(A),
            ``(2) clothes washers described in subsection 
        (b)(1)(B),
            ``(3) refrigerators described in subsection 
        (b)(1)(C)(i),
            ``(4) refrigerators described in subsection 
        (b)(1)(C)(ii), and
            ``(5) refrigerators described in subsection 
        (b)(1)(C)(iii).
    ``(e) Limitations.--
            ``(1) Aggregate credit amount allowed.--The 
        aggregate amount of credit allowed under subsection (a) 
        with respect to a taxpayer for any taxable year shall 
        not exceed $75,000,000 reduced by the amount of the 
        credit allowed under subsection (a) to the taxpayer (or 
        any predecessor) for all prior taxable years.
            ``(2) Amount allowed for 15 percent savings 
        refrigerators.--In the case of refrigerators described 
        in subsection (b)(1)(C)(i), the aggregate amount of the 
        credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed 
        $20,000,000.
            ``(3) Limitation based on gross receipts.--The 
        credit allowed under subsection (a) with respect to a 
        taxpayer for the taxable year shall not exceed an 
        amount equal to 2 percent of the average annual gross 
        receipts of the taxpayer for the 3 taxable years 
        preceding the taxable year in which the credit is 
        determined.
            ``(4) Gross receipts.--For purposes of this 
        subsection, the rules of paragraphs (2) and (3) of 
        section 448(c) shall apply.
    ``(f) Definitions.--For purposes of this section--
            ``(1) Qualified energy efficient appliance.--The 
        term `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in 
                subsection (b)(1)(A),
                    ``(B) any clothes washer described in 
                subsection (b)(1)(B), and
                    ``(C) any refrigerator described in 
                subsection (b)(1)(C).
            ``(2) Dishwasher.--The term `dishwasher' means a 
        residential dishwasher subject to the energy 
        conservation standards established by the Department of 
        Energy.
            ``(3) Clothes washer.--The term `clothes washer' 
        means a residential model clothes washer, including a 
        residential style coin operated washer.
            ``(4) Refrigerator.--The term `refrigerator' means 
        a residential model automatic defrost refrigerator-
        freezer which has an internal volume of at least 16.5 
        cubic feet.
            ``(5) EF.--The term `EF' means the energy factor 
        established by the Department of Energy for compliance 
        with the Federal energy conservation standards.
            ``(6) Produced.--The term `produced' includes 
        manufactured.
            ``(7) 2001 energy conservation standard.--The term 
        `2001 energy conservation standard' means the energy 
        conservation standards promulgated by the Department of 
        Energy and effective July 1, 2001.
    ``(g) Special Rules.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall 
        apply.
            ``(2) Controlled group.--
                    ``(A) In general.--All persons treated as a 
                single employer under subsection (a) or (b) of 
                section 52 or subsection (m) or (o) of section 
                414 shall be treated as a single producer.
                    ``(B) Inclusion of foreign corporations.--
                For purposes of subparagraph (A), in applying 
                subsections (a) and (b) of section 52 to this 
                section, section 1563 shall be applied without 
                regard to subsection (b)(2)(C) thereof.
            ``(3) Verification.--No amount shall be allowed as 
        a credit under subsection (a) with respect to which the 
        taxpayer has not submitted such information or 
        certification as the Secretary, in consultation with 
        the Secretary of Energy, determines necessary.''.
    (b) Conforming Amendment.--Section 38(b) (relating to 
general business credit), as amended by this Act, is amended by 
striking ``plus'' at the end of paragraph (22), by striking the 
period at the end of paragraph (23) and inserting ``, plus'', 
and by adding at the end the following new paragraph:
            ``(24) the energy efficient appliance credit 
        determined under section 45M(a).''.
    (c) Clerical Amendment.--The table of sections for subpart 
D of part IV of subchapter A of chapter 1, as amended by this 
Act, is amended by adding at the end the following new item:

    ``Sec. 45M. Energy efficient appliance credit.''.

    (d) Effective Date.--The amendments made by this section 
shall apply to appliances produced after December 31, 2005.

SEC. 1335. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of 
chapter 1 (relating to nonrefundable personal credits), as 
amended by this Act, is amended by inserting after section 25C 
the following new section:

``SEC. 25D. RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, 
there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum 
of--
            ``(1) 30 percent of the qualified photovoltaic 
        property expenditures made by the taxpayer during such 
        year,
            ``(2) 30 percent of the qualified solar water 
        heating property expenditures made by the taxpayer 
        during such year, and
            ``(3) 30 percent of the qualified fuel cell 
        property expenditures made by the taxpayer during such 
        year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed under 
        subsection (a) for any taxable year shall not exceed--
                    ``(A) $2,000 with respect to any qualified 
                photovoltaic property expenditures,
                    ``(B) $2,000 with respect to any qualified 
                solar water heating property expenditures, and
                    ``(C) $500 with respect to each half 
                kilowatt of capacity of qualified fuel cell 
                property (as defined in section 48(c)(1)) for 
                which qualified fuel cell property expenditures 
                are made.
            ``(2) Certification of solar water heating 
        property.--No credit shall be allowed under this 
        section for an item of property described in subsection 
        (d)(1) unless such property is certified for 
        performance by the non-profit Solar Rating 
        Certification Corporation or a comparable entity 
        endorsed by the government of the State in which such 
        property is installed.
    ``(c) Carryforward of Unused Credit.--If the credit 
allowable under subsection (a) exceeds the limitation imposed 
by section 26(a) for such taxable year reduced by the sum of 
the credits allowable under this subpart (other than this 
section), such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under subsection 
(a) for such succeeding taxable year.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified solar water heating property 
        expenditure.--The term `qualified solar water heating 
        property expenditure' means an expenditure for property 
        to heat water for use in a dwelling unit located in the 
        United States and used as a residence by the taxpayer 
        if at least half of the energy used by such property 
        for such purpose is derived from the sun.
            ``(2) Qualified photovoltaic property 
        expenditure.--The term `qualified photovoltaic property 
        expenditure' means an expenditure for property which 
        uses solar energy to generate electricity for use in a 
        dwelling unit located in the United States and used as 
        a residence by the taxpayer.
            ``(3) Qualified fuel cell property expenditure.--
        The term `qualified fuel cell property expenditure' 
        means an expenditure for qualified fuel cell property 
        (as defined in section 48(c)(1)) installed on or in 
        connection with a dwelling unit located in the United 
        States and used as a principal residence (within the 
        meaning of section 121) by the taxpayer.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Labor costs.--Expenditures for labor costs 
        properly allocable to the onsite preparation, assembly, 
        or original installation of the property described in 
        subsection (d) and for piping or wiring to interconnect 
        such property to the dwelling unit shall be taken into 
        account for purposes of this section.
            ``(2) Solar panels.--No expenditure relating to a 
        solar panel or other property installed as a roof (or 
        portion thereof) shall fail to be treated as property 
        described in paragraph (1) or (2) of subsection (d) 
        solely because it constitutes a structural component of 
        the structure on which it is installed.
            ``(3) Swimming pools, etc., used as storage 
        medium.--Expenditures which are properly allocable to a 
        swimming pool, hot tub, or any otherenergy storage 
medium which has a function other than the function of such storage 
shall not be taken into account for purposes of this section.
            ``(4) Dollar amounts in case of joint occupancy.--
        In the case of any dwelling unit which is jointly 
        occupied and used during any calendar year as a 
        residence by 2 or more individuals the following rules 
        shall apply:
                    ``(A) The amount of the credit allowable, 
                under subsection (a) by reason of expenditures 
                (as the case may be) made during such calendar 
                year by any of such individuals with respect to 
                such dwelling unit shall be determined by 
                treating all of such individuals as 1 taxpayer 
                whose taxable year is such calendar year.
                    ``(B) There shall be allowable, with 
                respect to such expenditures to each of such 
                individuals, a credit under subsection (a) for 
                the taxable year in which such calendar year 
                ends in an amount which bears the same ratio to 
                the amount determined under subparagraph (A) as 
                the amount of such expenditures made by such 
                individual during such calendar year bears to 
                the aggregate of such expenditures made by all 
                of such individuals during such calendar year.
                    ``(C) Subparagraphs (A) and (B) shall be 
                applied separately with respect to expenditures 
                described in paragraphs (1), (2), and (3) of 
                subsection (d).
            ``(5) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a 
        tenant-stockholder (as defined in section 216) in a 
        cooperative housing corporation (as defined in such 
        section), such individual shall be treated as having 
        made his tenant-stockholder's proportionate share (as 
        defined in section 216(b)(3)) of any expenditures of 
        such corporation.
            ``(6) Condominiums.--
                    ``(A) In general.--In the case of an 
                individual who is a member of a condominium 
                management association with respect to a 
                condominium which the individual owns, such 
                individual shall be treated as having made the 
                individual's proportionate share of any 
                expenditures of such association.
                    ``(B) Condominium management association.--
                For purposes of this paragraph, the term 
                `condominium management association' means an 
                organization which meets the requirements of 
                paragraph (1) of section 528(c) (other than 
                subparagraph (E) thereof) with respect to a 
                condominium project substantially all of the 
                units of which are used as residences.
            ``(7) Allocation in certain cases.--If less than 80 
        percent of the use of an item is for nonbusiness 
        purposes, only that portion of the expenditures for 
        such item which is properly allocable to use for 
        nonbusiness purposes shall be taken into account.
            ``(8) When expenditure made; amount of 
        expenditure.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an expenditure with respect 
                to an item shall be treated as made when the 
                original installation of the item is completed.
                    ``(B) Expenditures part of building 
                construction.--In the case of an expenditure in 
                connection with the construction or 
                reconstruction of a structure, such expenditure 
                shall be treated as made when the original use 
                of the constructed or reconstructed structure 
                by the taxpayer begins.
            ``(9) Property financed by subsidized energy 
        financing.--For purposes of determining the amount of 
        expenditures made by any individual with respect to any 
        dwelling unit, there shall not be taken into account 
        expenditures which are made from subsidized energy 
        financing (as defined in section 48(a)(4)(C)).
    ``(f) Basis Adjustments.--For purposes of this subtitle, if 
a credit is allowed under this section for any expenditure with 
respect to any property, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditure shall be reduced by the amount of the credit so 
allowed.
    ``(g) Termination.--The credit allowed under this section 
shall not apply to property placed in service after December 
31, 2007.''.
    (b) Conforming Amendments.--
            (1) Section 23(c) is amended by striking ``this 
        section and section 1400C'' and inserting ``this 
        section, section 25D, and section 1400C''.
            (2) Section 25(e)(1)(C) is amended by striking 
        ``this section and sections 23 and 1400C'' and 
        inserting ``other than this section, section 23, 
        section 25D, and section 1400C''.
            (3) Section 1400C(d) is amended by striking ``this 
        section'' and inserting ``this section and section 
        25D''.
            (4) Section 1016(a), as amended by this Act, is 
        amended by striking ``and'' at the end of paragraph 
        (33), by striking the period at the end of paragraph 
        (34) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(35) to the extent provided in section 25D(f), in 
        the case of amounts with respect to which a credit has 
        been allowed under section 25D.''.
            (5) The table of sections for subpart A of part IV 
        of subchapter A of chapter 1, as amended by this Act, 
        is amended by inserting after the item relating to 
        section 25C the following new item:

    ``Sec. 25D. Residential energy efficient property.''.

    (c) Effective Dates.--The amendments made by this section 
shall apply to property placed in service after December 31, 
2005, in taxable years ending after such date.

SEC. 1336. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS AND 
                    STATIONARY MICROTURBINE POWER PLANTS.

    (a) In General.--Section 48(a)(3)(A) (defining energy 
property) is amended by striking ``or'' at the end of clause 
(i), by adding ``or'' at the end of clause (ii), and by 
inserting after clause (ii) the following new clause:
                            ``(iii) qualified fuel cell 
                        property or qualified microturbine 
                        property,''.
    (b) Qualified Fuel Cell Property; Qualified Microturbine 
Property.--Section 48 (relating to energy credit) is amended by 
adding at the end the following new subsection:
    ``(c) Qualified Fuel Cell Property; Qualified Microturbine 
Property.--For purposes of this subsection--
            ``(1) Qualified fuel cell property.--
                    ``(A) In general.--The term `qualified fuel 
                cell property' means a fuel cell power plant 
                which--
                            ``(i) has a nameplate capacity of 
                        at least 0.5 kilowatt of electricity 
                        using an electrochemical process, and
                            ``(ii) has an electricity-only 
                        generation efficiency greater than 30 
                        percent.
                    ``(B) Limitation.--In the case of qualified 
                fuel cell property placed in service during the 
                taxable year, the credit otherwise determined 
                under paragraph (1) for such year with respect 
                to such property shall not exceed an amount 
                equal to $500 for each 0.5 kilowatt of capacity 
                of such property.
                    ``(C) Fuel cell power plant.--The term 
                `fuel cell power plant' means an integrated 
                system comprised of a fuel cell stack assembly 
                and associated balance of plant components 
                which converts a fuel into electricity using 
                electrochemical means.
                    ``(D) Special rule.--The first sentence of 
                the matter in subsection (a)(3) which follows 
                subparagraph (D) thereof shall not apply to 
                qualified fuel cell property which is used 
                predominantly in the trade or business of the 
                furnishing or sale of telephone service, 
                telegraph service by means of domestic 
                telegraph operations, or other telegraph 
                services (other than international telegraph 
                services).
                    ``(E) Termination.--The term `qualified 
                fuel cell property' shall not include any 
                property for any period after December 31, 
                2007.
            ``(2) Qualified microturbine property.--
                    ``(A) In general.--The term `qualified 
                microturbine property' means a stationary 
                microturbine power plant which--
                            ``(i) has a nameplate capacity of 
                        less than 2,000 kilowatts, and
                            ``(ii) has an electricity-only 
                        generation efficiency of not less than 
                        26 percent at International Standard 
                        Organization conditions.
                    ``(B) Limitation.--In the case of qualified 
                microturbine property placed in service during 
                the taxable year, the credit otherwise 
                determined under paragraph (1) for such year 
                with respect to such property shall not exceed 
                an amount equal $200 for each kilowatt of 
                capacity of such property.
                    ``(C) Stationary microturbine power 
                plant.--The term `stationary microturbine power 
                plant' means an integrated system comprised of 
                a gas turbine engine, a combustor, a 
                recuperator or regenerator, a generator or 
                alternator, and associated balance of plant 
                components which converts a fuel into 
                electricity and thermal energy. Such term also 
                includes all secondary components located 
                between the existing infrastructure for fuel 
                delivery and the existing infrastructure for 
                power distribution, including equipment and 
                controls for meeting relevant power standards, 
                such as voltage, frequency, and power factors.
                    ``(D) Special rule.--The first sentence of 
                the matter in subsection (a)(3) which follows 
                subparagraph (D) thereof shall not apply to 
                qualified microturbine property which is used 
                predominantly in the trade or business of the 
                furnishing or sale of telephone service, 
                telegraph service by means of domestic 
                telegraph operations, or other telegraph 
                services (other than international telegraph 
                services).
                    ``(E) Termination.--The term `qualified 
                microturbine property' shall not include any 
                property for any period after December 31, 
                2007.''.
    (c) Energy Percentage.--Section 48(a)(2)(A) (relating to 
energy percentage) is amended to read as follows:
                    ``(A) In general.--The energy percentage 
                is--
                            ``(i) in the case of qualified fuel 
                        cell property, 30 percent, and
                            ``(ii) in the case of any other 
                        energy property, 10 percent.''.
    (d) Conforming Amendment.--Section 48(a)(1) is amended by 
inserting ``except as provided in paragraph (1)(B) or (2)(B) of 
subsection (d),'' before ``the energy''.
    (e) Effective Date.--The amendments made by this section 
shall apply to periods after December 31, 2005, in taxable 
years ending after such date, 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 the enactment of the 
Revenue Reconciliation Act of 1990).

SEC. 1337. BUSINESS SOLAR INVESTMENT TAX CREDIT.

    (a) Increase in Energy Percentage.--Section 48(a)(2)(A) 
(relating to energy percentage), as amended by this Act, is 
amended to read as follows:
                    ``(A) In general.--The energy percentage 
                is--
                            ``(i) 30 percent in the case of--
                                    ``(I) qualified fuel cell 
                                property,
                                    ``(II) energy property 
                                described in paragraph 
                                (3)(A)(i) but only with respect 
                                to periods ending before 
                                January 1, 2008, and
                                    ``(III) energy property 
                                described in paragraph 
                                (3)(A)(ii), and
                            ``(ii) in the case of any energy 
                        property to which clause (i) does not 
                        apply, 10 percent.''.
    (b) Hybrid Solar Lighting Systems.--Subparagraph (A) of 
section 48(a)(3) is amended by striking ``or'' at the end of 
clause (i), by redesignating clause (ii) as clause (iii), and 
by inserting after clause (i) the following new clause:
                            ``(ii) equipment which uses solar 
                        energy to illuminate the inside of a 
                        structure using fiber-optic distributed 
                        sunlight but only with respect to 
                        periods ending before January 1, 2008, 
                        or''.
    (c) Limitation on Use of Solar Energy to Heat Swimming 
Pools.--Clause (i) of section 48(a)(3)(A) is amended by 
inserting ``excepting property used to generate energy for the 
purposes of heating a swimming pool,'' after ``solar process 
heat,''.
    (d) Effective Date.--The amendments made by this section 
shall apply to periods after December 31, 2005, in taxable 
years ending after such date, 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 the enactment of the 
Revenue Reconciliation Act of 1990).

      Subtitle D--Alternative Motor Vehicles and Fuels Incentives

SEC. 1341. ALTERNATIVE MOTOR VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of 
chapter 1 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following new section:

``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of--
            ``(1) the new qualified fuel cell motor vehicle 
        credit determined under subsection (b),
            ``(2) the new advanced lean burn technology motor 
        vehicle credit determined under subsection (c),
            ``(3) the new qualified hybrid motor vehicle credit 
        determined under subsection (d), and
            ``(4) the new qualified alternative fuel motor 
        vehicle credit determined under subsection (e).
    ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
            ``(1) In general.--For purposes of subsection (a), 
        the new qualified fuel cell motor vehicle credit 
        determined under this subsection with respect to a new 
        qualified fuel cell motor vehicle placed in service by 
        the taxpayer during the taxable year is--
                    ``(A) $8,000 ($4,000 in the case of a 
                vehicle placed in service after December 31, 
                2009), if such vehicle has a gross vehicle 
                weight rating of not more than 8,500 pounds,
                    ``(B) $10,000, if such vehicle has a gross 
                vehicle weight rating of more than 8,500 pounds 
                but not more than 14,000 pounds,
                    ``(C) $20,000, if such vehicle has a gross 
                vehicle weight rating of more than 14,000 
                pounds but not more than 26,000 pounds, and
                    ``(D) $40,000, if such vehicle has a gross 
                vehicle weight rating of more than 26,000 
                pounds.
            ``(2) Increase for fuel efficiency.--
                    ``(A) In general.--The amount determined 
                under paragraph (1)(A) with respect to a new 
                qualified fuel cell motor vehicle which is a 
                passenger automobile or light truck shall be 
                increased by--
                            ``(i) $1,000, if such vehicle 
                        achieves at least 150 percent but less 
                        than 175 percent of the 2002 model year 
                        city fuel economy,
                            ``(ii) $1,500, if such vehicle 
                        achieves at least 175 percent but less 
                        than 200 percent of the 2002 model year 
                        city fuel economy,
                            ``(iii) $2,000, if such vehicle 
                        achieves at least 200 percent but less 
                        than 225 percent of the 2002 model year 
                        city fuel economy,
                            ``(iv) $2,500, if such vehicle 
                        achieves at least 225 percent but less 
                        than 250 percent of the 2002 model year 
                        city fuel economy,
                            ``(v) $3,000, if such vehicle 
                        achieves at least 250 percent but less 
                        than 275 percent of the 2002 model year 
                        city fuel economy,
                            ``(vi) $3,500, if such vehicle 
                        achieves at least 275 percent but less 
                        than 300 percent of the 2002 model year 
                        city fuel economy, and
                            ``(vii) $4,000, if such vehicle 
                        achieves at least 300 percent of the 
                        2002 model year city fuel economy.
                    ``(B) 2002 model year city fuel economy.--
                For purposes of subparagraph (A), the 2002 
                model year city fuel economy with respect to a 
                vehicle shall be determined in accordance with 
                the following tables:
                            ``(i) In the case of a passenger 
                        automobile:

  If vehicle inertia weight class is:           The 2002 model year city
                                                        fuel economy is:
1,500 or 1,750 lbs............................................45.2 mpg  
2,000 lbs.....................................................39.6 mpg  
2,250 lbs.....................................................35.2 mpg  
2,500 lbs.....................................................31.7 mpg  
2,750 lbs.....................................................28.8 mpg  
3,000 lbs.....................................................26.4 mpg  
3,500 lbs.....................................................22.6 mpg  
4,000 lbs.....................................................19.8 mpg  
4,500 lbs.....................................................17.6 mpg  
5,000 lbs.....................................................15.9 mpg  
5,500 lbs.....................................................14.4 mpg  
6,000 lbs.....................................................13.2 mpg  
6,500 lbs.....................................................12.2 mpg  
7,000 to 8,500 lbs...........................................11.3 mpg.  

                            ``(ii) In the case of a light 
                        truck:

  If vehicle inertia weight class is:           The 2002 model year city
                                                        fuel economy is:
1,500 or 1,750 lbs......................................      39.4 mpg  
2,000 lbs...............................................      35.2 mpg  
2,250 lbs...............................................      31.8 mpg  
2,500 lbs...............................................      29.0 mpg  
2,750 lbs...............................................      26.8 mpg  
3,000 lbs...............................................      24.9 mpg  
3,500 lbs...............................................      21.8 mpg  
4,000 lbs...............................................      19.4 mpg  
4,500 lbs...............................................      17.6 mpg  
5,000 lbs...............................................      16.1 mpg  
5,500 lbs...............................................      14.8 mpg  
6,000 lbs...............................................      13.7 mpg  
6,500 lbs...............................................      12.8 mpg  
7,000 to 8,500 lbs......................................     12.1 mpg.  

                    ``(C) Vehicle inertia weight class.--For 
                purposes of subparagraph (B), the term `vehicle 
                inertia weight class' has the same meaning as 
                when defined in regulations prescribed by the 
                Administrator of the Environmental Protection 
                Agency for purposes of the administration of 
                title II of the Clean Air Act (42 U.S.C. 7521 
                et seq.).
            ``(3) New qualified fuel cell motor vehicle.--For 
        purposes of this subsection, the term `new qualified 
        fuel cell motor vehicle' means a motor vehicle--
                    ``(A) which is propelled by power derived 
                from 1 or more cells which convert chemical 
                energy directly into electricity by combining 
                oxygen with hydrogen fuel which is stored on 
                board the vehicle in any form and may or may 
                not require reformation prior to use,
                    ``(B) which, in the case of a passenger 
                automobile or light truck, has received on or 
                after the date of the enactment of this section 
                a certificate that such vehicle meets or 
                exceeds the Bin 5 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 for that make and model year vehicle,
                    ``(C) the original use of which commences 
                with the taxpayer,
                    ``(D) which is acquired for use or lease by 
                the taxpayer and not for resale, and
                    ``(E) which is made by a manufacturer.
    ``(c) New Advanced Lean Burn Technology Motor Vehicle 
Credit.--
            ``(1) In general.--For purposes of subsection (a), 
        the new advanced lean burn technology motor vehicle 
        credit determined under this subsection for the taxable 
        year is the credit amount determined under paragraph 
        (2) with respect to a new advanced lean burn technology 
        motor vehicle placed in service by the taxpayer during 
        the taxable year.
            ``(2) Credit amount.--
                    ``(A) Fuel economy.--
                            ``(i) In general.--The credit 
                        amount determined under this paragraph 
                        shall be determined in accordance with 
                        the following table:

In the case of a vehicle which achieves
a fuel economy (expressed as a percentage
of the 2002 model year city fuel economy) of--    The credit amount is--
At least 125 percent but less than 150 percent................      $400
At least 150 percent but less than 175 percent................      $800
At least 175 percent but less than 200 percent................    $1,200
At least 200 percent but less than 225 percent................    $1,600
At least 225 percent but less than 250 percent................    $2,000
At least 250 percent..........................................   $2,400.

                            ``(ii) 2002 model year city fuel 
                        economy.--For purposes of clause (i), 
                        the 2002 model year city fuel economy 
                        with respect to a vehicle shall be 
                        determined on a gasoline gallon 
                        equivalent basis as determined by the 
                        Administrator of the Environmental 
                        Protection Agency using the tables 
                        provided in subsection (b)(2)(B) with 
                        respect to such vehicle.
                    ``(B) Conservation credit.--The amount 
                determined under subparagraph (A) with respect 
                to a new advanced lean burn technology motor 
                vehicle shall be increased by the conservation 
                credit amount determined in accordance with the 
                following table:

In the case of a vehicle which achieves
a lifetime fuel savings (expressed in gallons
of gasoline) of--                    The conservation credit amount is--
At least 1,200 but less than 1,800............................      $250
At least 1,800 but less than 2,400............................      $500
At least 2,400 but less than 3,000............................      $750
At least 3,000................................................   $1,000.

            ``(3) New advanced lean burn technology motor 
        vehicle.--For purposes of this subsection, the term 
        `new advanced lean burn technology motor vehicle' means 
        a passenger automobile or a light truck--
                    ``(A) with an internal combustion engine 
                which--
                            ``(i) is designed to operate 
                        primarily using more air than is 
                        necessary for complete combustion of 
                        the fuel,
                            ``(ii) incorporates direct 
                        injection,
                            ``(iii) achieves at least 125 
                        percent of the 2002 model year city 
                        fuel economy,
                            ``(iv) for 2004 and later model 
                        vehicles, has received a certificate 
                        that such vehicle meets or exceeds--
                                    ``(I) in the case of a 
                                vehicle having a gross vehicle 
                                weight rating of 6,000 pounds 
                                or less, the Bin 5 Tier II 
                                emission standard established 
                                in regulations prescribed by 
                                the Administrator of the 
                                Environmental Protection Agency 
                                under section 202(i) of the 
                                Clean Air Act for that make and 
                                model year vehicle, and
                                    ``(II) in the case of a 
                                vehicle having a gross vehicle 
                                weight rating of more than 
                                6,000 pounds but not more than 
                                8,500 pounds, the Bin 8 Tier II 
                                emission standard which is so 
                                established.
                    ``(B) the original use of which commences 
                with the taxpayer,
                    ``(C) which is acquired for use or lease by 
                the taxpayer and not for resale, and
                    ``(D) which is made by a manufacturer.
            ``(4) Lifetime fuel savings.--For purposes of this 
        subsection, the term `lifetime fuel savings' means, in 
        the case of any new advanced lean burn technology motor 
        vehicle, an amount equal to the excess (if any) of--
                    ``(A) 120,000 divided by the 2002 model 
                year city fuel economy for the vehicle inertia 
                weight class, over
                    ``(B) 120,000 divided by the city fuel 
                economy for such vehicle.
    ``(d) New Qualified Hybrid Motor Vehicle Credit.--
            ``(1) In general.--For purposes of subsection (a), 
        the new qualified hybrid motor vehicle credit 
        determined under this subsection for the taxable year 
        is the credit amount determined under paragraph (2) 
        with respect to a new qualified hybrid motor vehicle 
        placed in service by the taxpayer during the taxable 
        year.
            ``(2) Credit amount.--
                    ``(A) Credit amount for passenger 
                automobiles and light trucks.--In the case of a 
                new qualified hybrid motor vehicle which is a 
                passenger automobile or light truck and which 
                has a gross vehicle weight rating of not more 
                than 8,500 pounds, the amount determined under 
                this paragraph is the sum of the amounts 
                determined under clauses (i) and (ii).
                            ``(i) Fuel economy.--The amount 
                        determined under this clause is the 
                        amount which would be determined under 
                        subsection (c)(2)(A) if such vehicle 
                        were a vehicle referred to in such 
                        subsection.
                            ``(ii) Conservation credit.--The 
                        amount determined under this clause is 
                        the amount which would be determined 
                        under subsection (c)(2)(B) if such 
                        vehicle were a vehicle referred to in 
                        such subsection.
                    ``(B) Credit amount for other motor 
                vehicles.--
                            ``(i) In general.--In the case of 
                        any new qualified hybrid motor vehicle 
                        to which subparagraph (A) does not 
                        apply, the amount determined under this 
                        paragraph is the amount equal to the 
                        applicable percentage of the qualified 
                        incremental hybrid cost of the vehicle 
                        as certified under clause (v).
                            ``(ii) Applicable percentage.--For 
                        purposes of clause (i), the applicable 
                        percentage is--
                                    ``(I) 20 percent if the 
                                vehicle achieves an increase in 
                                city fuel economy relative to a 
                                comparable vehicle of at least 
                                30 percent but less than 40 
                                percent,
                                    ``(II) 30 percent if the 
                                vehicle achieves such an 
                                increase of at least 40 percent 
                                but less than 50 percent, and
                                    ``(III) 40 percent if the 
                                vehicle achieves such an 
                                increase of at least 50 
                                percent.
                            ``(iii) Qualified incremental 
                        hybrid cost.--For purposes of this 
                        subparagraph, the qualified incremental 
                        hybrid cost of any vehicle is equal to 
                        the amount of the excess of the 
                        manufacturer's suggested retail price 
                        for such vehicle over such price for a 
                        comparable vehicle, to the extent such 
                        amount does not exceed--
                                    ``(I) $7,500, if such 
                                vehicle has a gross vehicle 
                                weight rating of not more than 
                                14,000 pounds,
                                    ``(II) $15,000, if such 
                                vehicle has a gross vehicle 
                                weight rating of more than 
                                14,000 pounds but not more than 
                                26,000 pounds, and
                                    ``(III) $30,000, if such 
                                vehicle has a gross vehicle 
                                weight rating of more than 
                                26,000 pounds.
                            ``(iv) Comparable vehicle.--For 
                        purposes of this subparagraph, the term 
                        `comparable vehicle' means, with 
                        respect to any new qualified hybrid 
                        motor vehicle, any vehicle which is 
                        powered solely by a gasoline or diesel 
                        internal combustion engine and which is 
                        comparable in weight, size, and use to 
                        such vehicle.
                            ``(v) Certification.--A 
                        certification described in clause (i) 
                        shall be made by the manufacturer and 
                        shall be determined in accordance with 
                        guidance prescribed by the Secretary. 
                        Such guidance shall specify procedures 
                        and methods for calculating fuel 
                        economy savings and incremental hybrid 
                        costs.
            ``(3) New qualified hybrid motor vehicle.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `new qualified 
                hybrid motor vehicle' means a motor vehicle--
                            ``(i) which draws propulsion energy 
                        from onboard sources of stored energy 
                        which are both--
                                    ``(I) an internal 
                                combustion or heat engine using 
                                consumable fuel, and
                                    ``(II) a rechargeable 
                                energy storage system,
                            ``(ii) which, in the case of a 
                        vehicle to which paragraph (2)(A) 
                        applies, has received a certificate of 
                        conformity under the Clean Air Act and 
                        meets or exceeds the equivalent 
                        qualifying California low emission 
                        vehicle standard under section 
                        243(e)(2) of the Clean Air Act for that 
                        make and model year, and
                                    ``(I) in the case of a 
                                vehicle having a gross vehicle 
                                weight rating of 6,000 pounds 
                                or less, the Bin 5 Tier II 
                                emission standard established 
                                in regulations prescribed by 
                                the Administrator of the 
                                Environmental Protection Agency 
                                under section 202(i) of the 
                                Clean Air Act for that make and 
                                model year vehicle, and
                                    ``(II) in the case of a 
                                vehicle having a gross vehicle 
                                weight rating of more than 
                                6,000 pounds but not more than 
                                8,500 pounds, the Bin 8 Tier II 
                                emission standard which is so 
                                established,
                            ``(iii) which has a maximum 
                        available power of at least--
                                    ``(I) 4 percent in the case 
                                of a vehicle to which paragraph 
                                (2)(A) applies,
                                    ``(II) 10 percent in the 
                                case of a vehicle which has a 
                                gross vehicle weight rating or 
                                more than 8,500 pounds and not 
                                than 14,000 pounds, and
                                    ``(III) 15 percent in the 
                                case of a vehicle in excess of 
                                14,000 pounds,
                            ``(iv) which, in the case of a 
                        vehicle to which paragraph (2)(B) 
                        applies, has an internal combustion or 
                        heat engine which has received a 
                        certificate of conformity under the 
                        Clean Air Act as meeting the emission 
                        standards set in the regulations 
                        prescribed by the Administrator of the 
                        Environmental Protection Agency for 
                        2004 through 2007 model year diesel 
                        heavy duty engines or ottocycle heavy 
                        duty engines, as applicable,
                            ``(v) the original use of which 
                        commences with the taxpayer,
                            ``(vi) which is acquired for use or 
                        lease by the taxpayer and not for 
                        resale, and
                            ``(vii) which is made by a 
                        manufacturer.
                Such term shall not include any vehicle which 
                is not a passenger automobile or light truck if 
                such vehicle has a gross vehicle weight rating 
                of less than 8,500 pounds.
                    ``(B) Consumable fuel.--For purposes of 
                subparagraph (A)(i)(I), the term `consumable 
                fuel' means any solid, liquid, or gaseous 
                matter which releases energy when consumed by 
                an auxiliary power unit.
                    ``(C) Maximum available power.--
                            ``(i) Certain passenger automobiles 
                        and light trucks.--In the case of a 
                        vehicle to which paragraph (2)(A) 
                        applies, the term `maximum available 
                        power' means the maximum power 
                        available from the rechargeable energy 
                        storage system, during a standard 10 
                        second pulse power or equivalent test, 
                        divided by such maximum power and the 
                        SAE net power of the heat engine.
                            ``(ii) Other motor vehicles.--In 
                        the case of a vehicle to which 
                        paragraph (2)(B) applies, the term 
                        `maximum available power' means the 
                        maximum power available from the 
                        rechargeable energy storage system, 
                        during a standard 10 second pulse power 
                        or equivalent test, divided by the 
                        vehicle's total traction power. For 
                        purposes of the preceding sentence, the 
                        term `total traction power' means the 
                        sum of the peak power from the 
                        rechargeable energy storage system and 
                        the heat engine peak power of the 
                        vehicle, except that if such storage 
                        system is the sole means by which the 
                        vehicle can be driven, the total 
                        traction power is the peak power of 
                        such storage system.
    ``(e) New Qualified Alternative Fuel Motor Vehicle 
Credit.--
            ``(1) Allowance of credit.--Except as provided in 
        paragraph (5), the new qualified alternative fuel motor 
        vehicle credit determined under this subsection is an 
        amount equal to the applicable percentage of the 
        incremental cost of any new qualified alternative fuel 
        motor vehicle placed in service by the taxpayer during 
        the taxable year.
            ``(2) Applicable percentage.--For purposes of 
        paragraph (1), the applicable percentage with respect 
        to any new qualified alternative fuel motor vehicle 
        is--
                    ``(A) 50 percent, plus
                    ``(B) 30 percent, if such vehicle--
                            ``(i) has received a certificate of 
                        conformity under the Clean Air Act and 
                        meets or exceeds the most stringent 
                        standard available for certification 
                        under the Clean Air Act for that make 
                        and model year vehicle (other than a 
                        zero emission standard), or
                            ``(ii) has received an order 
                        certifying the vehicle as meeting the 
                        same requirements as vehicles which may 
                        be sold or leased in California and 
                        meets or exceeds the most stringent 
                        standard available for certification 
                        under the State laws of California 
                        (enacted in accordance with a waiver 
                        granted under section 209(b) of the 
                        Clean Air Act) for that make and model 
                        year vehicle (other than a zero 
                        emission standard).
        For purposes of the preceding sentence, in the case of 
        any new qualified alternative fuel motor vehicle which 
        weighs more than 14,000 pounds gross vehicle weight 
        rating, the most stringent standard available shall be 
        such standard available for certification on the date 
        of the enactment of the Energy Tax Incentives Act of 
        2005.
            ``(3) Incremental cost.--For purposes of this 
        subsection, the incremental cost of any new qualified 
        alternative fuel motor vehicle is equal to the amount 
        of the excess of the manufacturer's suggested retail 
        price for such vehicle over such price for a gasoline 
        or diesel fuel motor vehicle of the same model, to the 
        extent such amount does not exceed--
                    ``(A) $5,000, if such vehicle has a gross 
                vehicle weight rating of not more than 8,500 
                pounds,
                    ``(B) $10,000, if such vehicle has a gross 
                vehicle weight rating of more than 8,500 pounds 
                but not more than 14,000 pounds,
                    ``(C) $25,000, if such vehicle has a gross 
                vehicle weight rating of more than 14,000 
                pounds but not more than 26,000 pounds, and
                    ``(D) $40,000, if such vehicle has a gross 
                vehicle weight rating of more than 26,000 
                pounds.
            ``(4) New qualified alternative fuel motor 
        vehicle.--For purposes of this subsection--
                    ``(A) In general.--The term `new qualified 
                alternative fuel motor vehicle' means any motor 
                vehicle--
                            ``(i) which is only capable of 
                        operating on an alternative fuel,
                            ``(ii) the original use of which 
                        commences with the taxpayer,
                            ``(iii) which is acquired by the 
                        taxpayer for use or lease, but not for 
                        resale, and
                            ``(iv) which is made by a 
                        manufacturer.
                    ``(B) Alternative fuel.--The term 
                `alternative fuel' means compressed natural 
                gas, liquefied natural gas, liquefied petroleum 
                gas, hydrogen, and any liquid at least 85 
                percent of the volume of which consists of 
                methanol.
            ``(5) Credit for mixed-fuel vehicles.--
                    ``(A) In general.--In the case of a mixed-
                fuel vehicle placed in service by the taxpayer 
                during the taxable year, the credit determined 
                under this subsection is an amount equal to--
                            ``(i) in the case of a 75/25 mixed-
                        fuel vehicle, 70 percent of the credit 
                        which would have been allowed under 
                        this subsection if such vehicle was a 
                        qualified alternative fuel motor 
                        vehicle, and
                            ``(ii) in the case of a 90/10 
                        mixed-fuel vehicle, 90 percent of the 
                        credit which would have been allowed 
                        under this subsection if such vehicle 
                        was a qualified alternative fuel motor 
                        vehicle.
                    ``(B) Mixed-fuel vehicle.--For purposes of 
                this subsection, the term `mixed-fuel vehicle' 
                means any motor vehicle described in 
                subparagraph (C) or (D) of paragraph (3), 
                which--
                            ``(i) is certified by the 
                        manufacturer as being able to perform 
                        efficiently in normal operation on a 
                        combination of an alternative fuel and 
                        a petroleum-based fuel,
                            ``(ii) either--
                                    ``(I) has received a 
                                certificate of conformity under 
                                the Clean Air Act, or
                                    ``(II) has received an 
                                order certifying the vehicle as 
                                meeting the same requirements 
                                as vehicles which may be sold 
                                or leased in California and 
                                meets or exceeds the low 
                                emission vehicle standard under 
                                section 88.105-94 of title 40, 
                                Code of Federal Regulations, 
                                for that make and model year 
                                vehicle,
                            ``(iii) the original use of which 
                        commences with the taxpayer,
                            ``(iv) which is acquired by the 
                        taxpayer for use or lease, but not for 
                        resale, and
                            ``(v) which is made by a 
                        manufacturer.
                    ``(C) 75/25 mixed-fuel vehicle.--For 
                purposes of this subsection, the term `75/25 
                mixed-fuel vehicle' means a mixed-fuel vehicle 
                which operates using at least 75 percent 
                alternative fuel and not more than 25 percent 
                petroleum-based fuel.
                    ``(D) 90/10 mixed-fuel vehicle.--For 
                purposes of this subsection, the term `90/10 
                mixed-fuel vehicle' means a mixed-fuel vehicle 
                which operates using at least 90 percent 
                alternative fuel and not more than 10 percent 
                petroleum-based fuel.
    ``(f) Limitation on Number of New Qualified Hybrid and 
Advanced Lean-Burn Technology Vehicles Eligible for Credit.--
            ``(1) In general.--In the case of a qualified 
        vehicle sold during the phaseout period, only the 
        applicable percentage of the credit otherwise allowable 
        under subsection (c) or (d) shall be allowed.
            ``(2) Phaseout period.--For purposes of this 
        subsection, the phaseout period is the period beginning 
        with the second calendar quarter following the calendar 
        quarter which includes the first date on which the 
        number of qualified vehicles manufactured by the 
        manufacturer of the vehicle referred to in paragraph 
        (1) sold for use in the United States after December 
        31, 2005, is at least 60,000.
            ``(3) Applicable percentage.--For purposes of 
        paragraph (1), the applicable percentage is--
                    ``(A) 50 percent for the first 2 calendar 
                quarters of the phaseout period,
                    ``(B) 25 percent for the 3d and 4th 
                calendar quarters of the phaseout period, and
                    ``(C) 0 percent for each calendar quarter 
                thereafter.
            ``(4) Controlled groups.--
                    ``(A) In general.--For purposes of this 
                subsection, all persons treated as a single 
                employer under subsection (a) or (b) of section 
                52 or subsection (m) or (o) of section 414 
                shall be treated as a single manufacturer.
                    ``(B) Inclusion of foreign corporations.--
                For purposes of subparagraph (A), in applying 
                subsections (a) and (b) of section 52 to this 
                section, section 1563 shall be applied without 
                regard to subsection (b)(2)(C) thereof.
            ``(5) Qualified vehicle.--For purposes of this 
        subsection, the term `qualified vehicle' means any new 
        qualified hybrid motor vehicle (described in subsection 
        (d)(2)(A)) and any new advanced lean burn technology 
        motor vehicle.
    ``(g) Application With Other Credits.--
            ``(1) Business credit treated as part of general 
        business credit.--So much of the credit which would be 
        allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) that is 
        attributable to property of a character subject to an 
        allowance for depreciation shall be treated as a credit 
        listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under 
        subsection (a) (after the application of paragraph (1)) 
        for any taxable year shall not exceed the excess (if 
        any) of--
                    ``(A) the regular tax reduced by the sum of 
                the credits allowable under subpart A and 
                sections 27 and 30, over
                    ``(B) the tentative minimum tax for the 
                taxable year.
    ``(h) Other Definitions and Special Rules.--For purposes of 
this section--
            ``(1) Motor vehicle.--The term `motor vehicle' has 
        the meaning given such term by section 30(c)(2).
            ``(2) City fuel economy.--The city fuel economy 
        with respect to any vehicle shall be measured in a 
        manner which is substantially similar to the manner 
        city fuel economy is measured in accordance with 
        procedures under part 600 of subchapter Q of chapter I 
        of title 40, Code of Federal Regulations, as in effect 
        on the date of the enactment of this section.
            ``(3) Other terms.--The terms `automobile', 
        `passenger automobile', `medium duty passenger 
        vehicle', `light truck', and `manufacturer' have the 
        meanings given such terms in regulations prescribed by 
        the Administrator of the Environmental Protection 
        Agency for purposes of the administration of title II 
        of the Clean Air Act (42 U.S.C. 7521 et seq.).
            ``(4) Reduction in basis.--For purposes of this 
        subtitle, the basis of any property for which a credit 
        is allowable under subsection (a) shall be reduced by 
        the amount of such credit so allowed (determined 
        without regard to subsection (g)).
            ``(5) No double benefit.--The amount of any 
        deduction or other credit allowable under this 
        chapter--
                    ``(A) for any incremental cost taken into 
                account in computing the amount of the credit 
                determined under subsection (e) shall be 
                reduced by the amount of such credit 
                attributable to such cost, and
                    ``(B) with respect to a vehicle described 
                under subsection (b) or (c), shall be reduced 
                bythe amount of credit allowed under subsection 
(a) for such vehicle for the taxable year.
            ``(6) Property used by tax-exempt entity.--In the 
        case of a vehicle whose use is described in paragraph 
        (3) or (4) of section 50(b) and which is not subject to 
        a lease, the person who sold such vehicle to the person 
        or entity using such vehicle shall be treated as the 
        taxpayer that placed such vehicle in service, but only 
        if such person clearly discloses to such person or 
        entity in a document the amount of any credit allowable 
        under subsection (a) with respect to such vehicle 
        (determined without regard to subsection (g)).
            ``(7) Property used outside united states, etc., 
        not qualified.--No credit shall be allowable under 
        subsection (a) with respect to any property referred to 
        in section 50(b)(1) or with respect to the portion of 
        the cost of any property taken into account under 
        section 179.
            ``(8) Recapture.--The Secretary shall, by 
        regulations, provide for recapturing the benefit of any 
        credit allowable under subsection (a) with respect to 
        any property which ceases to be property eligible for 
        such credit (including recapture in the case of a lease 
        period of less than the economic life of a vehicle).
            ``(9) Election to not take credit.--No credit shall 
        be allowed under subsection (a) for any vehicle if the 
        taxpayer elects to not have this section apply to such 
        vehicle.
            ``(10) Interaction with air quality and motor 
        vehicle safety standards.--Unless otherwise provided in 
        this section, a motor vehicle shall not be considered 
        eligible for a credit under this section unless such 
        vehicle is in compliance with--
                    ``(A) the applicable provisions of the 
                Clean Air Act for the applicable make and model 
                year of the vehicle (or applicable air quality 
                provisions of State law in the case of a State 
                which has adopted such provision under a waiver 
                under section 209(b) of the Clean Air Act), and
                    ``(B) the motor vehicle safety provisions 
                of sections 30101 through 30169 of title 49, 
                United States Code.
    ``(i) Regulations.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Secretary shall promulgate such regulations as 
        necessary to carry out the provisions of this section.
            ``(2) Coordination in prescription of certain 
        regulations.--The Secretary of the Treasury, in 
        coordination with the Secretary of Transportation and 
        the Administrator of the Environmental Protection 
        Agency, shall prescribe such regulations as necessary 
        to determine whether a motor vehicle meets the 
        requirements to be eligible for a credit under this 
        section.
    ``(j) Termination.--This section shall not apply to any 
property purchased after--
            ``(1) in the case of a new qualified fuel cell 
        motor vehicle (as described in subsection (b)), 
        December 31, 2014,
            ``(2) in the case of a new advanced lean burn 
        technology motor vehicle (as described in subsection 
        (c)) or a new qualified hybrid motor vehicle (as 
        described in subsection (d)(2)(A)), December 31, 2010,
            ``(3) in the case of a new qualified hybrid motor 
        vehicle (as described in subsection (d)(2)(B)), 
        December 31, 2009, and
            ``(4) in the case of a new qualified alternative 
        fuel vehicle (as described in subsection (e)), December 
        31, 2010.''.
    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by this Act, is 
        amended by striking ``plus'' at the end of paragraph 
        (23), by striking the period at the end of paragraph 
        (24) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(25) the portion of the alternative motor vehicle 
        credit to which section 30B(g)(1) applies.''.
            (2) Section 1016(a), as amended by this Act, is 
        amended by striking ``and'' at the end of paragraph 
        (34), by striking the period at the end of paragraph 
        (35) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(36) to the extent provided in section 
        30B(h)(4).''.
            (3) Section 55(c)(2), as amended by this Act, is 
        amended by inserting ``30B(g)(2),'' after 
        ``30(b)(2),''.
            (4) Section 6501(m) is amended by inserting 
        ``30B(h)(9),'' after ``30(d)(4),''.
            (5) The table of sections for subpart B of part IV 
        of subchapter A of chapter 1 is amended by inserting 
        after the item relating to section 30A the following 
        new item:

``Sec. 30B. Alternative motor vehicle credit.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to property placed in service after December 31, 
2005, in taxable years ending after such date.

SEC. 1342. CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING STATIONS.

    (a) In General.--Subpart B of part IV of subchapter A of 
chapter 1 (relating to other credits), as amended by this Act, 
is amended by adding at the end the following new section:

``SEC. 30C. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an 
amount equal to 30 percent of the cost of any qualified 
alternative fuel vehicle refueling property placed in service 
by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) 
with respect to any alternative fuel vehicle refueling property 
shall not exceed--
            ``(1) $30,000 in the case of a property of a 
        character subject to an allowance for depreciation, and
            ``(2) $1,000 in any other case.
    ``(c) Qualified Alternative Fuel Vehicle Refueling 
Property.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the term `qualified alternative fuel vehicle 
        refueling property' has the meaning given to such term 
        by section 179A(d), but only with respect to any fuel--
                    ``(A) at least 85 percent of the volume of 
                which consists of 1 or more of the following: 
                ethanol, natural gas, compressed natural gas, 
                liquefied natural gas, liquefied petroleum gas, 
                or hydrogen, or
                    ``(B) any mixture of biodiesel (as defined 
                in section 40A(d)(1)) and diesel fuel (as 
                defined in section 4083(a)(3)), determined 
                without regard to any use of kerosene and 
                containing at least 20 percent biodiesel.
            ``(2) Residential property.--In the case of any 
        property installed on property which is used as the 
        principal residence (within the meaning of section 121) 
        of the taxpayer, paragraph (1) of section 179A(d) shall 
        not apply.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general 
        business credit.--So much of the credit which would be 
        allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) that is 
        attributable to property of a character subject to an 
        allowance for depreciation shall be treated as a credit 
        listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under 
        subsection (a) (after the application of paragraph (1)) 
        for any taxable year shall not exceed the excess (if 
        any) of--
                    ``(A) the regular tax reduced by the sum of 
                the credits allowable under subpart A and 
                sections 27, 30, and 30B, over
                    ``(B) the tentative minimum tax for the 
                taxable year.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Basis reduction.--The basis of any property 
        shall be reduced by the portion of the cost of such 
        property taken into account under subsection (a).
            ``(2) Property used by tax-exempt entity.--In the 
        case of any qualified alternative fuel vehicle 
        refueling property the use of which is described in 
        paragraph (3) or (4) of section 50(b) and which is not 
        subject to a lease, the person who sold such property 
        to the person or entity using such property shall be 
        treated as the taxpayer that placed such property in 
        service, but only if such person clearly discloses to 
        such person or entity in a document the amount of any 
        credit allowable under subsection (a) with respect to 
        such property (determined without regard to subsection 
        (d)).
            ``(3) Property used outside united states not 
        qualified.--No credit shall be allowable under 
        subsection (a) with respect to any property referred to 
        in section 50(b)(1) or with respect to the portion of 
        the cost of any property taken into account under 
        section 179.
            ``(4) Election not to take credit.--No credit shall 
        be allowed under subsection (a) for any property if the 
        taxpayer elects not to have this section apply to such 
        property.
            ``(5) Recapture rules.--Rules similar to the rules 
        of section 179A(e)(4) shall apply.
    ``(f) Regulations.--The Secretary shall prescribe such 
regulations as necessary to carry out the provisions of this 
section.
    ``(g) Termination.--This section shall not apply to any 
property placed in service--
            ``(1) in the case of property relating to hydrogen, 
        after December 31, 2014, and
            ``(2) in the case of any other property, after 
        December 31, 2009.''.
    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by this Act, is 
        amended by striking ``plus'' at the end of paragraph 
        (24), by striking the period at the end of paragraph 
        (25) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(26) the portion of the alternative fuel vehicle 
        refueling property credit to which section 30C(d)(1) 
        applies.''.
            (2) Section 1016(a), as amended by this Act, is 
        amended by striking ``and'' at the end of paragraph 
        (35), by striking the period at the end of paragraph 
        (36) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(37) to the extent provided in section 30C(f).''.
            (3) Section 55(c)(2), as amended by this Act, is 
        amended by inserting ``30C(d)(2),'' after 
        ``30B(g)(2),''.
            (4) Section 6501(m) is amended by inserting 
        ``30C(e)(5),'' after ``30B(h)(9),''.
            (5) The table of sections for subpart B of part IV 
        of subchapter A of chapter 1, as amended by this Act, 
        is amended by inserting after the item relating to 
        section 30B the following new item:

``Sec. 30C. Clean-fuel vehicle refueling property credit.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to property placed in service after December 31, 
2005, in taxable years ending after such date.

SEC. 1343. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES OF DIESEL 
                    FUEL.

    (a) In General.--Paragraph (2) of section 4081(a) is 
amended by adding at the end the following:
                    ``(D) Diesel-water fuel emulsion.--In the 
                case of diesel-water fuel emulsion at least 14 
                percent of which is water and with respect to 
                which the emulsion additive is registered by a 
                United States manufacturer with the 
                Environmental Protection Agency pursuant to 
                section 211 of the Clean Air Act (as in effect 
                on March 31, 2003), subparagraph (A)(iii) shall 
                be applied by substituting `19.7 cents' for 
                `24.3 cents'. The preceding sentence shall not 
                applyto the removal, sale, or use of diesel-
water fuel emulsion unless the person so removing, selling, or using 
such fuel is registered under section 4101.''.
    (b) Special Rules for Diesel-Water Fuel Emulsions.--
            (1) Refunds for tax-paid purchases.--Section 6427 
        is amended by redesignating subsections (m) through (p) 
        as subsections (n) through (q), respectively, and by 
        inserting after subsection (l) the following new 
        subsection:
    ``(m) Diesel Fuel Used to Produce Emulsion.--
            ``(1) In general.--Except as provided in subsection 
        (k), if any diesel fuel on which tax was imposed by 
        section 4081 at the regular tax rate is used by any 
        person in producing an emulsion described in section 
        4081(a)(2)(D) which is sold or used in such person's 
        trade or business, the Secretary shall pay (without 
        interest) to such person an amount equal to the excess 
        of the regular tax rate over the incentive tax rate 
        with respect to such fuel.
            ``(2) Definitions.--For purposes of paragraph (1)--
                    ``(A) Regular tax rate.--The term `regular 
                tax rate' means the aggregate rate of tax 
                imposed by section 4081 determined without 
                regard to section 4081(a)(2)(D).
                    ``(B) Incentive tax rate.--The term 
                `incentive tax rate' means the aggregate rate 
                of tax imposed by section 4081 determined with 
                regard to section 4081(a)(2)(D).''.
            (2) Later separation of fuel.--Section 4081 
        (relating to imposition of tax) is amended by inserting 
        after subsection (b) the following new subsection:
    ``(c) Later Separation of Fuel From Diesel-Water Fuel 
Emulsion.--If any person separates the taxable fuel from a 
diesel-water fuel emulsion on which tax was imposed under 
subsection (a) at a rate determined under subsection (a)(2)(D) 
(or with respect to which a credit or payment was allowed or 
made by reason of section 6427), such person shall be treated 
as the refiner of such taxable fuel. The amount of tax imposed 
on any removal of such fuel by such person shall be reduced by 
the amount of tax imposed (and not credited or refunded) on any 
prior removal or entry of such fuel.''.
            (3) Credit claims.--Paragraphs (1) and (2) of 
        section 6427(i) are both amended by inserting ``(m),'' 
        after ``(l),''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on January 1, 2006.

SEC. 1344. EXTENSION OF EXCISE TAX PROVISIONS AND INCOME TAX CREDIT FOR 
                    BIODIESEL.

    (a) In General.--Sections 40A(e), 6426(c)(6), and 
6427(e)(4)(B) are each amended by striking ``2006'' and 
inserting ``2008''.
    (b) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act.

SEC. 1345. SMALL AGRI-BIODIESEL PRODUCER CREDIT.

    (a) In General.--Subsection (a) of section 40A (relating to 
biodiesel used as a fuel) is amended to read as follows:
    ``(a) General Rule.--For purposes of section 38, the 
biodiesel fuels credit determined under this section for the 
taxable year is an amount equal to the sum of--
            ``(1) the biodiesel mixture credit, plus
            ``(2) the biodiesel credit, plus
            ``(3) in the case of an eligible small agri-
        biodiesel producer, the small agri-biodiesel producer 
        credit.''.
    (b) Small Agri-biodiesel Producer Credit Defined.--Section 
40A(b) (relating to definition of biodiesel mixture credit and 
biodiesel credit) is amended by adding at the end the following 
new paragraph:
            ``(5) Small agri-biodiesel producer credit.--
                    ``(A) In general.--The small agri-biodiesel 
                producer credit of any eligible small agri-
                biodiesel producer for any taxable year is 10 
                cents for each gallon of qualified agri-
                biodiesel production of such producer.
                    ``(B) Qualified agri-biodiesel 
                production.--For purposes of this paragraph, 
                the term `qualified agri-biodiesel production' 
                means any agri-biodiesel (determined without 
                regard to the last sentence of subsection 
                (d)(2)) which is produced by an eligible small 
                agri-biodiesel producer, and which during the 
                taxable year--
                            ``(i) is sold by such producer to 
                        another person--
                                    ``(I) for use by such other 
                                person in the production of a 
                                qualified biodiesel mixture in 
                                such other person's trade or 
                                business (other than casual 
                                off-farm production),
                                    ``(II) for use by such 
                                other person as a fuel in a 
                                trade or business, or
                                    ``(III) who sells such 
                                agri-biodiesel at retail to 
                                another person and places such 
                                agri-biodiesel in the fuel tank 
                                of such other person, or
                            ``(ii) is used or sold by such 
                        producer for any purpose described in 
                        clause (i).
                    ``(C) Limitation.--The qualified agri-
                biodiesel production of any producer for any 
                taxable year shall not exceed 15,000,000 
                gallons.''.
    (c) Definitions and Special Rules.--Section 40A is amended 
by redesignating subsection (e) as subsection (f) and by 
inserting after subsection (d) the following new subsection:
    ``(e) Definitions and Special Rules for Small Agri-
biodiesel Producer Credit.--For purposes of this section--
            ``(1) Eligible small agri-biodiesel producer.--The 
        term `eligible small agri-biodiesel producer' means a 
        person who, at all times during the taxable year, has a 
        productive capacity for agri-biodiesel not in excess of 
        60,000,000 gallons.
            ``(2) Aggregation rule.--For purposes of the 
        15,000,000 gallon limitation under subsection (b)(5)(C) 
        and the 60,000,000 gallon limitation under paragraph 
        (1), all members of the same controlled group of 
        corporations (within the meaning of section 267(f)) and 
        all persons under common control (within the meaning of 
        section 52(b) but determined by treating an interest of 
        more than 50 percent as a controlling interest) shall 
        be treated as 1 person.
            ``(3) Partnership, s corporation, and other pass-
        thru entities.--In the case of a partnership, trust, S 
        corporation, or other pass-thru entity, the limitations 
        contained in subsection (b)(5)(C) and paragraph (1) 
        shall be applied at the entity level and at the partner 
        or similar level.
            ``(4) Allocation.--For purposes of this subsection, 
        in the case of a facility in which more than 1 person 
        has an interest, productive capacity shall be allocated 
        among such persons in such manner as the Secretary may 
        prescribe.
            ``(5) Regulations.--The Secretary may prescribe 
        such regulations as may be necessary--
                    ``(A) to prevent the credit provided for in 
                subsection (a)(3) from directly or indirectly 
                benefiting any person with a direct or indirect 
                productive capacity of more than 60,000,000 
                gallons of agri-biodiesel during the taxable 
                year, or
                    ``(B) to prevent any person from directly 
                or indirectly benefiting with respect to more 
                than 15,000,000 gallons during the taxable 
                year.
            ``(6) Allocation of small agri-biodiesel credit to 
        patrons of cooperative.--
                    ``(A) Election to allocate.--
                            ``(i) In general.--In the case of a 
                        cooperative organization described in 
                        section 1381(a), any portion of the 
                        credit determined under subsection 
                        (a)(3) for the taxable year may, at the 
                        election of the organization, be 
                        apportioned pro rata among patrons of 
                        the organization on the basis of the 
                        quantity or value of business done with 
                        or for such patrons for the taxable 
                        year.
                            ``(ii) Form and effect of 
                        election.--An election under clause (i) 
                        for any taxable year shall be made on a 
                        timely filed return for such year. Such 
                        election, once made, shall be 
                        irrevocable for such taxable year. Such 
                        election shall not take effect unless 
                        the organization designates the 
                        apportionment as such in a written 
                        notice mailed to its patrons during the 
                        payment period described in section 
                        1382(d).
                    ``(B) Treatment of organizations and 
                patrons.--
                            ``(i) Organizations.--The amount of 
                        the credit not apportioned to patrons 
                        pursuant to subparagraph (A) shall be 
                        included in the amount determined under 
                        subsection (a)(3) for the taxable year 
                        of the organization.
                            ``(ii) Patrons.--The amount of the 
                        credit apportioned to patrons pursuant 
                        to subparagraph (A) shall be included 
                        in the amount determined under such 
                        subsection for the first taxable year 
                        of each patron ending on or after the 
                        last day of the payment period (as 
                        defined in section 1382(d)) for the 
                        taxable year of the organization or, if 
                        earlier, for the taxable year of each 
                        patron ending on or after the date on 
                        which the patron receives notice from 
                        the cooperative of the apportionment.
                            ``(iii) Special rules for decrease 
                        in credits for taxable year.--If the 
                        amount of the credit of the 
                        organization determined under such 
                        subsection for a taxable year is less 
                        than the amount of such credit shown on 
                        the return of the organization for such 
                        year, an amount equal to the excess 
                        of--
                                    ``(I) such reduction, over
                                    ``(II) the amount not 
                                apportioned to such patrons 
                                under subparagraph (A) for the 
                                taxable year, shall be treated 
                                as an increase in tax imposed 
                                by this chapter on the 
                                organization. Such increase 
                                shall not be treated as tax 
                                imposed by this chapter for 
                                purposes of determining the 
                                amount of any credit under this 
                                chapter or for purposes of 
                                section 55.''.
    (d) Conforming Amendments.--
            (1) Paragraph (4) of section 40A(b) is amended by 
        striking ``this section'' and inserting ``paragraph (1) 
        or (2) of subsection (a)''.
            (2) The heading of subsection (b) of section 40A is 
        amended by striking ``and Biodiesel Credit'' and 
        inserting ``, Biodiesel Credit, and Small Agri-
        biodiesel Producer Credit''.
            (3) Paragraph (3) of section 40A(d) is amended by 
        redesignating subparagraph (C) as subparagraph (D) and 
        by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Producer credit.--If--
                            ``(i) any credit was determined 
                        under subsection (a)(3), and
                            ``(ii) any person does not use such 
                        fuel for a purpose described in 
                        subsection (b)(5)(B), then there is 
                        hereby imposed on such person a tax 
                        equal to 10 cents a gallon for each 
                        gallon of such agri-biodiesel.''.
    (e) Effective Date.--The amendments made by this section 
shall apply to taxable years ending after the date of the 
enactment of this Act.

SEC. 1346. RENEWABLE DIESEL.

    (a) In General.--Section 40A (relating to biodiesel used as 
fuel), as amended by this Act, is amended by redesignating 
subsection (f) as subsection (g) and by inserting after 
subsection (e) the following new subsection:
    ``(f) Renewable Diesel.--For purposes of this title--
            ``(1) Treatment in the same manner as biodiesel.--
        Except as provided in paragraph (2), renewable diesel 
        shall be treated in the same manner as biodiesel.
            ``(2) Exceptions.--
                    ``(A) Rate of credit.--Subsections 
                (b)(1)(A) and (b)(2)(A) shall be applied with 
                respect to renewable diesel by substituting 
                `$1.00' for `50 cents'.
                    ``(B) Nonapplication of certain credits.--
                Subsections (b)(3) and (b)(5) shall not apply 
                with respect to renewable diesel.
            ``(3) Renewable diesel defined.--The term 
        `renewable diesel' means diesel fuel derived from 
        biomass (as defined in section 45K(c)(3)) using a 
        thermal depolymerization process which meets--
                    ``(A) the registration requirements for 
                fuels and fuel additives established by the 
                Environmental Protection Agency under section 
                211 of the Clean Air Act (42 U.S.C. 7545), and
                    ``(B) the requirements of the American 
                Society of Testing and Materials D975 or 
                D396.''.
    (b) Clerical Amendments.--
            (1) The heading for section 40A is amended by 
        inserting ``AND RENEWABLE DIESEL'' after ``BIODIESEL''.
            (2) The item in the table of contents for subpart D 
        of part IV of subchapter A of chapter 1 relating to 
        section 40A is amended to read as follows:

``Sec. 40A. Biodiesel and renewable diesel used as fuel.''.

    (c) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to fuel sold or used after December 
31, 2005.

SEC. 1347. MODIFICATION OF SMALL ETHANOL PRODUCER CREDIT.

    (a) Definition of Small Ethanol Producer.--Section 40(g) 
(relating to definitions and special rules for eligible small 
ethanol producer credit) is amended by striking ``30,000,000'' 
each place it appears and inserting ``60,000,000''.
    (b) Written Notice of Election to Allocate Credit to 
Patrons.--Section 40(g)(6)(A)(ii) (relating to form and effect 
of election) is amended by adding at the end the following new 
sentence: ``Such election shall not take effect unless the 
organization designates the apportionment as such in a written 
notice mailed to its patrons during the payment period 
described in section 1382(d).''.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years ending after the date of the 
enactment of this Act.

SEC. 1348. SUNSET OF DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN 
                    REFUELING PROPERTY.

    Subsection (f) of section 179A (relating to termination) is 
amended by striking ``December 31, 2006'' and inserting 
``December 31, 2005''.

              Subtitle E--Additional Energy Tax Incentives

SEC. 1351. EXPANSION OF RESEARCH CREDIT.

    (a) Credit for Expenses Attributable to Certain 
Collaborative Energy Research Consortia.--
            (1) In general.--Section 41(a) (relating to credit 
        for increasing research activities) is amended by 
        striking ``and'' at the end of paragraph (1), by 
        striking the period at the end of paragraph (2) and 
        inserting ``, and'', and by adding at the end the 
        following new paragraph:
            ``(3) 20 percent of the amounts paid or incurred by 
        the taxpayer in carrying on any trade or business of 
        the taxpayer during the taxable year (including as 
        contributions) to an energy research consortium.''.
            (2) Energy research consortium defined.--Section 
        41(f) (relating to special rules) is amended by adding 
        at the end the following new paragraph:
            ``(6) Energy research consortium.--
                    ``(A) In general.--The term `energy 
                research consortium' means any organization--
                            ``(i) which is--
                                    ``(I) described in section 
                                501(c)(3) and is exempt from 
                                tax under section 501(a) and is 
                                organized and operated 
                                primarily to conduct energy 
                                research, or
                                    ``(II) organized and 
                                operated primarily to conduct 
                                energy research in the public 
                                interest (within the meaning of 
                                section 501(c)(3)),
                            ``(ii) which is not a private 
                        foundation,
                            ``(iii) to which at least 5 
                        unrelated persons paid or incurred 
                        during the calendar year in which the 
                        taxable year of the organization begins 
                        amounts (including as contributions) to 
                        such organization for energy research, 
                        and
                            ``(iv) to which no single person 
                        paid or incurred (including as 
                        contributions) during such calendar 
                        year an amount equal to more than 50 
                        percent of the total amounts received 
                        by such organization during such 
                        calendar year for energy research.
                    ``(B) Treatment of persons.--All persons 
                treated as a single employer under subsection 
                (a) or (b) of section 52 shall be treated as 
                related persons for purposes of subparagraph 
                (A)(iii) and as a single person for purposes of 
                subparagraph (A)(iv).''.
            (3) Conforming amendment.--Section 41(b)(3)(C) is 
        amended by inserting ``(other than an energy research 
        consortium)'' after ``organization''.
    (b) Repeal of Limitation on Contract Research Expenses Paid 
to Small Businesses, Universities, and Federal Laboratories.--
Section 41(b)(3) (relating to contract research expenses) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Amounts paid to eligible small 
                businesses, universities, and federal 
                laboratories.--
                            ``(i) In general.--In the case of 
                        amounts paid by the taxpayer to--
                                    ``(I) an eligible small 
                                business,
                                    ``(II) an institution of 
                                higher education (as defined in 
                                section 3304(f)), or
                                    ``(III) an organization 
                                which is a Federal laboratory,
                        for qualified research which is energy 
                        research, subparagraph (A) shall be 
                        applied by substituting `100 percent' 
                        for `65 percent'.
                            ``(ii) Eligible small business.--
                        For purposes of this subparagraph, the 
                        term `eligible small business' means a 
                        small business with respect to which 
                        the taxpayer does not own (within the 
                        meaning of section 318) 50 percent or 
                        more of--
                                    ``(I) in the case of a 
                                corporation, the outstanding 
                                stock of the corporation 
                                (either by vote or value), and
                                    ``(II) in the case of a 
                                small business which is not a 
                                corporation, the capital and 
                                profits interests of the small 
                                business.
                            ``(iii) Small business.--For 
                        purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `small business' means, with 
                                respect to any calendar year, 
                                any person if the annual 
                                average number of employees 
                                employed by such person during 
                                either of the 2 preceding 
                                calendar years was 500 or 
                                fewer. For purposes of the 
                                preceding sentence, a preceding 
                                calendar year may be taken into 
                                account only if the person was 
                                in existence throughout the 
                                year.
                                    ``(II) Startups, controlled 
                                groups, and predecessors.--
                                Rules similar to the rules of 
                                subparagraphs (B) and (D) of 
                                section 220(c)(4) shall apply 
                                for purposes of this clause.
                            ``(iv) Federal laboratory.--For 
                        purposes of this subparagraph, the term 
                        `Federal laboratory' has the meaning 
                        given such term by section 4(6) of the 
                        Stevenson-Wydler Technology Innovation 
                        Act of 1980 (15 U.S.C. 3703(6)), as in 
                        effect on the date of the enactment of 
                        the Energy Tax Incentives Act of 
                        2005.''.
    (c) Effective Date.--The amendments made by this section 
shall apply to amounts paid or incurred after the date of the 
enactment of this Act, in taxable years ending after such date.

SEC. 1352. NATIONAL ACADEMY OF SCIENCES STUDY AND REPORT.

    (a) Study.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall 
enter into an agreement with the National Academy of Sciences 
under which the National Academy of Sciences shall conduct a 
study to define and evaluate the health, environmental, 
security, and infrastructure external costs and benefits 
associated with the production and consumption of energy that 
are not or may not be fully incorporated into the market price 
of such energy, or into the Federal tax or fee or other 
applicable revenue measure related to such production or 
consumption.
    (b) Report.--Not later than 2 years after the date on which 
the agreement under subsection (a) is entered into, the 
National Academy of Sciences shall submit to Congress a report 
on the study conducted under subsection (a).

SEC. 1353. RECYCLING STUDY.

    (a) Study.--The Secretary of the Treasury, in consultation 
with the Secretary of Energy, shall conduct a study--
            (1) to determine and quantify the energy savings 
        achieved through the recycling of glass, paper, 
        plastic, steel, aluminum, and electronic devices, and
            (2) to identify tax incentives which would 
        encourage recycling of such material.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Treasury shall 
submit to Congress a report on the study conducted under 
subsection (a).

                 Subtitle F--Revenue Raising Provisions

SEC. 1361. OIL SPILL LIABILITY TRUST FUND FINANCING RATE.

    Section 4611(f) (relating to application of oil spill 
liability trust fund financing rate) is amended to read as 
follows:
    ``(f) Application of Oil Spill Liability Trust Fund 
Financing Rate.--
            ``(1) In general.--Except as provided in paragraphs 
        (2) and (3), the Oil Spill Liability Trust Fund 
        financing rate under subsection (c) shall apply on and 
        after April 1, 2006, or if later, the date which is 30 
        days after the last day of any calendar quarter for 
        which the Secretary estimates that, as of the close of 
        that quarter, the unobligated balance in the Oil Spill 
        Liability Trust Fund is less than $2,000,000,000.
            ``(2) Fund balance.--The Oil Spill Liability Trust 
        Fund financing rate shall not apply during a calendar 
        quarter if the Secretary estimates that, as of the 
        close of the preceding calendar quarter, the 
        unobligated balance in the Oil Spill Liability Trust 
        Fund exceeds $2,700,000,000.
            ``(3) Termination.--The Oil Spill Liability Trust 
        Fund financing rate shall not apply after December 31, 
        2014.''.

SEC. 1362. EXTENSION OF LEAKING UNDERGROUND STORAGE TANK TRUST FUND 
                    FINANCING RATE.

    (a) In General.--Paragraph (3) of section 4081(d) (relating 
to Leaking Underground Storage Tank Trust Fund financing rate) 
is amended by striking ``2005'' and inserting ``2011''.
    (b) No Exemptions From Tax Except for Exports.--
            (1) In general.--Section 4082(a) (relating to 
        exemptions for diesel fuel and kerosene) is amended by 
        inserting ``(other than such tax at the Leaking 
        Underground Storage Tank Trust Fund financing rate 
        imposed in all cases other than for export)'' after 
        ``section 4081''.
            (2) Amendments relating to section 4041.--
                    (A) Subsections (a)(1)(B), (a)(2)(A), and 
                (c)(2) of section 4041 are each amended by 
                inserting ``(other than such tax at the Leaking 
                Underground Storage Tank Trust Fund financing 
                rate)'' after ``section 4081''.
                    (B) Section 4041(b)(1)(A) is amended by 
                striking ``or (d)(1))''.
                    (C) Section 4041(d) is amended by adding at 
                the end the following new paragraph:
            ``(5) Nonapplication of exemptions other than for 
        exports.--For purposes of this section, the tax imposed 
        under this subsection shall be determined without 
        regard to subsections (f), (g) (other than with respect 
        to any sale for export under paragraph (3) thereof), 
        (h), and (l).''.
            (3) No refund.--
                    (A) In general.--Subchapter B of chapter 65 
                is amended by adding at the end the following 
                new section:

``SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND STORAGE 
                    TANK TRUST FUND FINANCING RATE.

    ``No refunds, credits, or payments shall be made under this 
subchapter for any tax imposed at the Leaking Underground 
Storage Tank Trust Fund financing rate, except in the case of 
fuels destined for export.''.
                    (B) Clerical amendment.--The table of 
                sections for subchapter B of chapter 65 is 
                amended by adding at the end the following new 
                item:

``Sec. 6430. Treatment of tax imposed at Leaking Underground Storage 
          Tank Trust Fund financing rate.''.

    (c) Certain Refunds and Credits Not Charged to LUST Trust 
Fund.--Subsection (c) of section 9508 (relating to Leaking 
Underground Storage Tank Trust Fund) is amended to read as 
follows:
    ``(c) Expenditures.--Amounts in the Leaking Underground 
Storage Tank Trust Fund shall be available, as provided in 
appropriation Acts, only for purposes of making expenditures to 
carry out section 9003(h) of the Solid Waste Disposal Act as in 
effect on the date of the enactment of the Superfund Amendments 
and Reauthorization Act of 1986.''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section shall take 
        effect on October 1, 2005.
            (2) No exemption.--The amendments made by 
        subsection (b) shall apply to fuel entered, removed, or 
        sold after September 30, 2005.

SEC. 1363. MODIFICATION OF RECAPTURE RULES FOR AMORTIZABLE SECTION 197 
                    INTANGIBLES.

    (a) In General.--Subsection (b) of section 1245 (relating 
to gain from dispositions of certain depreciable property) is 
amended by adding at the end the following new paragraph:
            ``(9) Disposition of amortizable section 197 
        intangibles.--
                    ``(A) In general.--If a taxpayer disposes 
                of more than 1 amortizable section 197 
                intangible (as defined in section 197(c)) in a 
                transaction or a series of related 
                transactions, all such amortizable 197 
                intangibles shall be treated as 1 section 1245 
                property for purposes of this section.
                    ``(B) Exception.--Subparagraph (A) shall 
                not apply to any amortizable section 197 
                intangible (as so defined) with respect to 
                which the adjusted basis exceeds the fair 
                market value.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to dispositions of property after the date of the 
enactment of this Act.

SEC. 1364. CLARIFICATION OF TIRE EXCISE TAX.

    (a) In General.--Section 4072(e) (defining super single 
tire) is amended by adding at the end the following: ``Such 
term shall not include any tire designed for steering.''
    (b) Effective Date.--The amendment made by this section 
shall take effect as if included in section 869 of the American 
Jobs Creation Act of 2004.
    (c) Study.--
            (1) In general.--With respect to the 1-year period 
        beginning on January 1, 2006, the Secretary of the 
        Treasury shall conduct a study to determine--
                    (A) the amount of tax collected during such 
                period under section 4071 of the Internal 
                Revenue Code of 1986 with respect to each class 
                of tire, and
                    (B) the number of tires in each such class 
                on which tax is imposed under such section 
                during such period.
            (2) Report.--Not later than July 1, 2007, the 
        Secretary of the Treasury shall submit to Congress a 
        report on the study conducted under paragraph (1).

                        TITLE XIV--MISCELLANEOUS

                         Subtitle A--In General

SEC. 1401. SENSE OF CONGRESS ON RISK ASSESSMENTS.

    Subtitle B of title XXX of the Energy Policy Act of 1992 is 
amended by adding at the end the following new section:

``SEC. 3022. SENSE OF CONGRESS ON RISK ASSESSMENTS.

    ``It is the sense of Congress that Federal agencies 
conducting assessments of risks to human health and the 
environment from energy technology, production, transport, 
transmission, distribution, storage, use, or conservation 
activities shall use sound and objective scientific practices 
in assessing such risks, shall consider the best available 
science (including peer reviewed studies), and shall include a 
description of the weight of the scientific evidence concerning 
such risks.''.

SEC. 1402. ENERGY PRODUCTION INCENTIVES.

    (a) In General.--A State may provide to any entity--
            (1) a credit against any tax or fee owed to the 
        State under a State law, or
            (2) any other tax incentive,
determined by the State to be appropriate, in the amount 
calculated under and in accordance with a formula determined by 
the State, for production described in subsection (b) in the 
State by the entity that receives such credit or such 
incentive.
    (b) Eligible Entities.--Subsection (a) shall apply with 
respect to the production in the State of electricity from coal 
mined in the State and used in a facility, if such production 
meets all applicable Federal and State laws and if such 
facility uses scrubbers or other forms of clean coal 
technology.
    (c) Effect on Interstate Commerce.--Any action taken by a 
State in accordance with this section with respect to a tax or 
fee payable, or incentive applicable, for any period beginning 
after the date of the enactment of this Act shall--
            (1) be considered to be a reasonable regulation of 
        commerce; and
            (2) not be considered to impose an undue burden on 
        interstate commerce or to otherwise impair, restrain, 
        or discriminate, against interstate commerce.

SEC. 1403. REGULATION OF CERTAIN OIL USED IN TRANSFORMERS.

    Notwithstanding any other provision of law, or rule 
promulgated by the Environmental Protection Agency, vegetable 
oil made from soybeans and used in electric transformers as 
thermal insulation shall not be regulated as an oil identified 
under section 2(a)(1)(B) of the Edible Oil Regulatory Reform 
Act (33 U.S.C. 2720(a)(1)(B)).

SEC. 1404. PETROCHEMICAL AND OIL REFINERY FACILITY HEALTH ASSESSMENT.

    (a) Establishment.--The Secretary shall conduct a study of 
direct and significant health impacts to persons resulting from 
living in proximity to petrochemical and oil refinery 
facilities. The Secretary shall consult with the Director of 
the National Cancer Institute and other Federal Government 
bodies with expertise in the field it deems appropriate in the 
design of such study. The study shall be conducted according to 
sound and objective scientific practices and present the weight 
of the scientific evidence. The Secretary shall obtain 
scientific peer review of the draft study.
    (b) Report to Congress.--The Secretary shall transmit the 
results of the study to Congress within 6 months of the 
enactment of this section.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for activities under this 
section such sums as are necessary for the completion of the 
study.

SEC. 1405. NATIONAL PRIORITY PROJECT DESIGNATION.

    (a) Designation of National Priority Projects.--
            (1) In general.--There is established the National 
        Priority Project Designation (referred to in this 
        section as the ``Designation''), which shall be 
        evidenced by a medal bearing the inscription ``National 
        Priority Project''.
            (2) Design and materials.--The medal shall be of 
        such design and materials and bear such additional 
        inscriptions as the President may prescribe.
    (b) Making and Presentation of Designation.--
            (1) In general.--The President, on the basis of 
        recommendations made by the Secretary, shall annually 
        designate organizations that have--
                    (A) advanced the field of renewable energy 
                technology and contributed to North American 
                energy independence; and
                    (B) been certified by the Secretary under 
                subsection (e).
            (2) Presentation.--The President shall designate 
        projects with such ceremonies as the President may 
        prescribe.
            (3) Use of designation.--An organization that 
        receives a Designation under this section may publicize 
        the Designation of the organization as a National 
        Priority Project in advertising.
            (4) Categories in which the designation may be 
        given.--Separate Designations shall be made to 
        qualifying projects in each of the following 
        categories:
                    (A) Wind and biomass energy generation 
                projects.
                    (B) Photovoltaic and fuel cell energy 
                generation projects.
                    (C) Energy efficient building and renewable 
                energy projects.
                    (D) First-in-Class projects.
    (c) Selection Criteria.--
            (1) In general.--Certification and selection of the 
        projects to receive the Designation shall be based on 
        criteria established under this subsection.
            (2) Wind, biomass, and building projects.--In the 
        case of a wind, biomass, or building project, the 
        project shall demonstrate that the project will install 
        not less than 30 megawatts of renewable energy 
        generation capacity.
            (3) Solar photovoltaic and fuel cell projects.--In 
        the case of a solar photovoltaic or fuel cell project, 
        the project shall demonstrate that the project will 
        install not less than 3 megawatts of renewable energy 
        generation capacity.
            (4) Energy efficient building and renewable energy 
        projects.--In the case of an energy efficient building 
        or renewable energy project, in addition to meeting the 
        criteria established under paragraph (2), each building 
        project shall demonstrate that the project will--
                    (A) comply with third-party certification 
                standards for high-performance, sustainable 
                buildings;
                    (B) use whole-building integration of 
                energy efficiency and environmental performance 
                design and technology, including advanced 
                building controls;
                    (C) use renewable energy for at least 50 
                percent of the energy consumption of the 
                project;
                    (D) comply with applicable Energy Star 
                standards; and
                    (E) include at least 5,000,000 square feet 
                of enclosed space.
            (5) First-in-class use.--Notwithstanding paragraphs 
        (2) through (4), a new building project may qualify 
        under this section if the Secretary determines that the 
        project--
                    (A) represents a First-In-Class use of 
                renewable energy; or
                    (B) otherwise establishes a new paradigm of 
                building integrated renewable energy use or 
                energy efficiency.
    (d) Application.--
            (1) Initial applications.--No later than 120 days 
        after the date of enactment of this Act, and annually 
        thereafter, the Secretary shall publish in the Federal 
        Register an invitation and guidelines for submitting 
        applications, consistent with this section.
            (2) Contents.--The application shall describe the 
        project, or planned project, and the plans to meet the 
        criteria established under subsection (c).
    (e) Certification.--
            (1) In general.--Not later than 60 days after the 
        application period described in subsection (d), and 
        annually thereafter, the Secretary shall certify 
        projects that are reasonably expected to meet the 
        criteria established under subsection (c).
            (2) Certified projects.--The Secretary shall 
        designate personnel of the Department to work with 
        persons carrying out each certified project and ensure 
        that the personnel--
                    (A) provide each certified project with 
                guidance in meeting the criteria established 
                under subsection (c);
                    (B) identify programs of the Department, 
                including National Laboratories and Technology 
                Centers, that will assist each project in 
                meeting the criteria established under 
                subsection (c); and
                    (C) ensure that knowledge and transfer of 
                the most current technology between the 
                applicable resources of the Federal Government 
                (including the National Laboratories and 
                Technology Centers, the Department, and the 
                Environmental Protection Agency) and the 
                certified projects is being facilitated to 
                accelerate commercialization of work developed 
                through those resources.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2006 through 2010.

SEC. 1406. COLD CRACKING.

    (a) Study.--The Secretary shall conduct a study of the 
application of radiation to petroleum at standard temperature 
and pressure to refine petroleum products, whose objective 
shall be to increase the economic yield from each barrel of 
oil.
    (b) Goals.--The goals of the study shall include--
            (1) increasing the value of our current oil supply;
            (2) reducing the capital investment cost for 
        cracking oil;
            (3) reducing the operating energy cost for cracking 
        oil; and
            (4) reducing sulfur content using an 
        environmentally responsible method.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $250,000 for 
fiscal year 2006.

SEC. 1407. OXYGEN-FUEL.

    (a) Program.--The Secretary shall establish a program on 
oxygen-fuel systems. If feasible, the program shall include 
renovation of at least one existing large unit and one existing 
small unit, and construction of one new large unit and one new 
small unit.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section--
            (1) $100,000,000 for fiscal year 2006;
            (2) $100,000,000 for fiscal year 2007; and
            (3) $100,000,000 for fiscal year 2008.
    (c) Definitions.--For purposes of this section--
            (1) the term ``large unit'' means a unit with a 
        generating capacity of 100 megawatts or more;
            (2) the term ``oxygen-fuel systems'' means systems 
        that utilize fuel efficiency benefits of oil, gas, 
        coal, and biomass combustion using substantially pure 
        oxygen, with high flame temperatures and the exclusion 
        of air from the boiler, in industrial or electric 
        utility steam generating units; and
            (3) the term ``small unit'' means a unit with a 
        generating capacity in the 10-50 megawatt range.

                      Subtitle B--Set America Free

SEC. 1421. SHORT TITLE.

    This subtitle may be cited as the ``Set America Free Act of 
2005'' or the ``SAFE Act''.

SEC. 1422. PURPOSE.

    The purpose of this subtitle is to establish a United 
States commission to make recommendations for a coordinated and 
comprehensive North American energy policy that will achieve 
energy self-sufficiency by 2025 within the three contiguous 
North American nation area of Canada, Mexico, and the United 
States.

SEC. 1423. UNITED STATES COMMISSION ON NORTH AMERICAN ENERGY FREEDOM.

    (a) Establishment.--There is hereby established the United 
States Commission on North American Energy Freedom (in this 
subtitle referred to as the ``Commission''). The Federal 
Advisory Committee Act (5 U.S.C. App.), except sections 3, 7, 
and 12, does not apply to the Commission.
    (b) Membership.--
            (1) Appointment.--The Commission shall be composed 
        of 16 members appointed by the President from among 
        individuals described in paragraph (2) who are 
        knowledgeable on energy issues, including oil and gas 
        exploration and production, crude oil refining, oil and 
        gas pipelines, electricity production and transmission, 
        coal, unconventional hydrocarbon resources, fuel cells, 
        motor vehicle power systems, nuclear energy, renewable 
        energy, biofuels, energy efficiency, and energy 
        conservation. The membership of the Commission shall be 
        balanced by area of expertise to the extent consistent 
        with maintaining the highest level of expertise on the 
        Commission. Members of the Commission may be citizens 
        of Canada, Mexico, or the United States, and the 
        President shall ensure that citizens of all three 
        nations are appointed to the Commission.
            (2) Nominations.--The President shall appoint the 
        members of the Commission within 60 days after the 
        effective date of this Act, including individuals 
        nominated as follows:
                    (A) Four members shall be appointed from 
                amongst individuals independently determined by 
                the President to be qualified for appointment.
                    (B) Four members shall be appointed from a 
                list of eight individuals who shall be 
                nominated by the majority leader of the Senate 
                in consultation with the chairman of the 
                Committee on Energy and Natural Resources of 
                the Senate.
                    (C) Four members shall be appointed from a 
                list of eight individuals who shall be 
                nominated by the Speaker of the House of 
                Representatives in consultation with the 
                chairmen of the Committees on Energy and 
                Commerce and Resources of the House of 
                Representatives.
                    (D) Two members shall be appointed from a 
                list of four individuals who shall be nominated 
                by the minority leader of the Senate in 
                consultation with the ranking Member of the 
                Committee on Energy and Natural Resources of 
                the Senate.
                    (E) Two members shall be appointed from a 
                list of four individuals who shall be nominated 
                by the minority leader of the House in 
                consultation with the ranking Members of the 
                Committees on Energy and Commerce and Resources 
                of the House of Representatives.
            (3) Chairman.--The chairman of the Commission shall 
        be selected by the President. The chairman of the 
        Commission shall be responsible for--
                    (A) the assignment of duties and 
                responsibilities among staff personnel and 
                their continuing supervision; and
                    (B) the use and expenditure of funds 
                available to the Commission.
            (4) Vacancies.--Any vacancy on the Commission shall 
        be filled in the same manner as the original incumbent 
        was appointed.
    (c) Resources.--In carrying out its functions under this 
section, the Commission--
            (1) is authorized to secure directly from any 
        Federal agency or department any information it deems 
        necessary to carry out its functions under this Act, 
        and each such agency or department is authorized to 
        cooperate with the Commission and, to the extent 
        permitted by law, to furnish such information (other 
        than information described in section 552(b)(1)(A) of 
        title 5, United States Code) to the Commission, upon 
        the request of the Commission;
            (2) may enter into contracts, subject to the 
        availability of appropriations for contracting, and 
        employ such staff experts and consultants as may be 
        necessary to carry out the duties of the Commission, as 
        provided by section 3109 of title 5, United States 
        Code; and
            (3) shall establish a multidisciplinary science and 
        technical advisory panel of experts in the field of 
        energy to assist the Commission in preparing its 
        report, including ensuring that the scientific and 
        technical information considered by the Commission is 
        based on the best scientific and technical information 
        available.
    (d) Staffing.--The chairman of the Commission may, without 
regard to the civil service laws and regulations, appoint and 
terminate an executive director and such other additional 
personnel as may be necessary for the Commission to perform its 
duties. The executive director shall be compensated at a rate 
not to exceed the rate payable for Level IV of the Executive 
Schedule under chapter 5136 of title 5, United States Code. The 
chairman shall select staff from among qualified citizens of 
Canada, Mexico, and the United States of America.
    (e) Meetings.--
            (1) Administration.--All meetings of the Commission 
        shall be open to the public, except that a meeting or 
        any portion of it may be closed to the public if it 
        concerns matters or information described in section 
        552b(c) of title 5, United States Code. Interested 
        persons shall be permitted to appear at open meetings 
        and present oral or written statements on the subject 
        matter of the meeting. The Commission may administer 
        oaths or affirmations to any person appearing before 
        it.
            (2) Notice; minutes; public availability of 
        documents.--
                    (A) Notice.--All open meetings of the 
                Commission shall be preceded by timely public 
                notice in the Federal Register of the time, 
                place, and subject of the meeting.
                    (B) Minutes.--Minutes of each meeting shall 
                be kept and shall contain a record of the 
                people present, a description of the discussion 
                that occurred, and copies of all statements 
                filed. Subject to section 552 of title 5, 
                United States Code, the minutes and records of 
                all meetings and other documents that were made 
                available to or prepared for the Commission 
                shall be available for public inspection and 
                copying at a single location in the offices of 
                the Commission.
            (3) Initial meeting.--The Commission shall hold its 
        first meeting within 30 days after all 16 members have 
        been appointed.
    (f) Report.--Within 12 months after the effective date of 
this Act, the Commission shall submit to Congress and the 
President a final report of its findings and recommendations 
regarding North American energy freedom.
    (g) Administrative Procedure for Report and Review.--
Chapter 5 and chapter 7 of title 5, United States Code, do not 
apply to the preparation, review, or submission of the report 
required by subsection (f).
    (h) Termination.--The Commission shall cease to exist 90 
days after the date on which it submits its final report.
    (i) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this chapter a total of 
$10,000,000 for the 2 fiscal-year period beginning with fiscal 
year 2005, such sums to remain available until expended.

SEC. 1424. NORTH AMERICAN ENERGY FREEDOM POLICY.

    Within 90 days after receiving and considering the report 
and recommendations of the Commission under section 1423, the 
President shall submit to Congress a statement of proposals to 
implement or respond to the Commission's recommendations for a 
coordinated, comprehensive, and long-range national policy to 
achieve North American energy freedom by 2025.

                   TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

SEC. 1501. RENEWABLE CONTENT OF GASOLINE.

    (a) In General.--Section 211 of the Clean Air Act (42 
U.S.C. 7545) is amended--
            (1) by redesignating subsection (o) as subsection 
        (r); and
            (2) by inserting after subsection (n) the 
        following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol 
                derived from any lignocellulosic or 
                hemicellulosic matter that is available on a 
                renewable or recurring basis, including--
                            ``(i) dedicated energy crops and 
                        trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other 
                        waste materials; and
                            ``(viii) municipal solid waste.
                The term also includes any ethanol produced in 
                facilities where animal wastes or other waste 
                materials are digested or otherwise used to 
                displace 90 percent or more of the fossil fuel 
                normally used in the production of ethanol.
                    ``(B) Waste derived ethanol.--The term 
                `waste derived ethanol' means ethanol derived 
                from--
                            ``(i) animal wastes, including 
                        poultry fats and poultry wastes, and 
                        other waste materials; or
                            ``(ii) municipal solid waste.
                    ``(C) Renewable fuel.--
                            ``(i) In general.--The term 
                        `renewable fuel' means motor vehicle 
                        fuel that--
                                    ``(I)(aa) is produced from 
                                grain, starch, oilseeds, 
                                vegetable, animal, or fish 
                                materials including fats, 
                                greases, and oils, sugarcane, 
                                sugar beets, sugar components, 
                                tobacco, potatoes, or other 
                                biomass; or
                                    ``(bb) is natural gas 
                                produced from a biogas source, 
                                including a landfill, sewage 
                                waste treatment plant, feedlot, 
                                or other place where decaying 
                                organic material is found; and
                                    ``(II) is used to replace 
                                or reduce the quantity of 
                                fossil fuel present in a fuel 
                                mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term 
                        `renewable fuel' includes--
                                    ``(I) cellulosic biomass 
                                ethanol and `waste derived 
                                ethanol'; and
                                    ``(II) biodiesel (as 
                                defined in section 312(f) of 
                                the Energy Policy Act of 1992 
                                (42 U.S.C. 13220(f))) and any 
                                blending components derived 
                                from renewable fuel (provided 
                                that only the renewable fuel 
                                portion of any such blending 
                                component shall be considered 
                                part of the applicable volume 
                                under the renewable fuel 
                                program established by this 
                                subsection).
                    ``(D) Small refinery.--The term `small 
                refinery' means a refinery for which the 
                average aggregate daily crude oil throughput 
                for a calendar year (as determined by dividing 
                the aggregate throughput for the calendar year 
                by the number of days in the calendar year) 
                does not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) Regulations.--
                            ``(i) In general.--Not later than 1 
                        year after the date of enactment of 
                        this paragraph, the Administrator shall 
                        promulgate regulations to ensure that 
                        gasoline sold or introduced into 
                        commerce in the United States (except 
                        in noncontiguous States or 
                        territories), on an annual average 
                        basis, contains the applicable volume 
                        of renewable fuel determined in 
                        accordance with subparagraph (B).
                            ``(ii) Noncontiguous state opt-
                        in.--
                                    ``(I) In general.--On the 
                                petition of a noncontiguous 
                                State or territory, the 
                                Administrator may allow the 
                                renewable fuel program 
                                established under this 
                                subsection to apply in the 
                                noncontiguous State or 
                                territory at the same time or 
                                any time after the 
                                Administrator promulgates 
                                regulations under this 
                                subparagraph.
                                    ``(II) Other actions.--In 
                                carrying out this clause, the 
                                Administrator may--
                                            ``(aa) issue or 
                                        revise regulations 
                                        under this paragraph;
                                            ``(bb) establish 
                                        applicable percentages 
                                        under paragraph (3);
                                            ``(cc) provide for 
                                        the generation of 
                                        credits under paragraph 
                                        (5); and
                                            ``(dd) take such 
                                        other actions as are 
                                        necessary to allow for 
                                        the application of the 
                                        renewable fuels program 
                                        in a noncontiguous 
                                        State or territory.
                            ``(iii) Provisions of 
                        regulations.--Regardless of the date of 
                        promulgation, the regulations 
                        promulgated under clause (i)--
                                    ``(I) shall contain 
                                compliance provisions 
                                applicable to refineries, 
                                blenders, distributors, and 
                                importers, as appropriate, to 
                                ensure that the requirements of 
                                this paragraph are met; but
                                    ``(II) shall not--
                                            ``(aa) restrict 
                                        geographic areas in 
                                        which renewable fuel 
                                        may be used; or
                                            ``(bb) impose any 
                                        per-gallon obligation 
                                        for the use of 
                                        renewable fuel.
                            ``(iv) Requirement in case of 
                        failure to promulgate regulations.--If 
                        the Administrator does not promulgate 
                        regulations under clause (i), the 
                        percentage of renewable fuel in 
                        gasoline sold or dispensed to consumers 
                        in the United States, on a volume 
                        basis, shall be 2.78 percent for 
                        calendar year 2006.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2006 through 
                        2012.--For the purpose of subparagraph 
                        (A), the applicable volume for any of 
                        calendar years 2006 through 2012 shall 
                        be determined in accordance with the 
                        following table:

                                     Applicable volume of renewable fuel
  ``Calendar year:                             (in billions of gallons):
    2006......................................................       4.0
    2007......................................................       4.7
    2008......................................................       5.4
    2009......................................................       6.1
    2010......................................................       6.8
    2011......................................................       7.4
    2012......................................................      7.5.

                            ``(ii) Calendar year 2013 and 
                        thereafter.--Subject to clauses (iii) 
                        and (iv), for the purposes of 
                        subparagraph (A), the applicable volume 
                        for calendar year 2013 and each 
                        calendar year thereafter shall be 
                        determined by the Administrator, in 
                        coordination with the Secretary of 
                        Agriculture and the Secretary of 
                        Energy, based on a review of the 
                        implementation of the program during 
                        calendar years 2006 through 2012, 
                        including a review of--
                                    ``(I) the impact of the use 
                                of renewable fuels on the 
                                environment, air quality, 
                                energy security, job creation, 
                                and rural economic development; 
                                and
                                    ``(II) the expected annual 
                                rate of future production of 
                                renewable fuels, including 
                                cellulosic ethanol.
                            ``(iii) Minimum quantity derived 
                        from cellulosic biomass.--For calendar 
                        year 2013 and each calendar year 
                        thereafter--
                                    ``(I) the applicable volume 
                                referred to in clause (ii) 
                                shall contain a minimum of 
                                250,000,000 gallons that are 
                                derived from cellulosic 
                                biomass; and
                                    ``(II) the 2.5-to-1 ratio 
                                referred to in paragraph (4) 
                                shall not apply.
                            ``(iv) Minimum applicable volume.--
                        For the purpose of subparagraph (A), 
                        the applicable volume for calendar year 
                        2013 and each calendar year thereafter 
                        shall be equal to the product obtained 
                        by multiplying--
                                    ``(I) the number of gallons 
                                of gasoline that the 
                                Administrator estimates will be 
                                sold or introduced into 
                                commerce in the calendar year; 
                                and
                                    ``(II) the ratio that--
                                            ``(aa) 
                                        7,500,000,000 gallons 
                                        of renewable fuel; 
                                        bears to
                                            ``(bb) the number 
                                        of gallons of gasoline 
                                        sold or introduced into 
                                        commerce in calendar 
                                        year 2012.
            ``(3) Applicable percentages.--
                    ``(A) Provision of estimate of volumes of 
                gasoline sales.--Not later than October 31 of 
                each of calendar years 2005 through 2011, the 
                Administrator of the Energy Information 
                Administration shall provide to the 
                Administrator of the Environmental Protection 
                Agency an estimate, with respect to the 
                following calendar year, of the volumes of 
                gasoline projected to be sold or introduced 
                into commerce in the United States.
                    ``(B) Determination of applicable 
                percentages.--
                            ``(i) In general.--Not later than 
                        November 30 of each of calendar years 
                        2005 through 2012, based on the 
                        estimate provided under subparagraph 
                        (A), the Administrator of the 
                        Environmental Protection Agency shall 
                        determine and publish in the Federal 
                        Register, with respect to the following 
                        calendar year, the renewable fuel 
                        obligation that ensures that the 
                        requirements of paragraph (2) are met.
                            ``(ii) Required elements.--The 
                        renewable fuel obligation determined 
                        for a calendar year under clause (i) 
                        shall--
                                    ``(I) be applicable to 
                                refineries, blenders, and 
                                importers, as appropriate;
                                    ``(II) be expressed in 
                                terms of a volume percentage of 
                                gasoline sold or introduced 
                                into commerce in the United 
                                States; and
                                    ``(III) subject to 
                                subparagraph (C)(i), consist of 
                                a single applicable percentage 
                                that applies to all categories 
                                of persons specified in 
                                subclause (I).
                    ``(C) Adjustments.--In determining the 
                applicable percentage for a calendar year, the 
                Administrator shall make adjustments--
                            ``(i) to prevent the imposition of 
                        redundant obligations on any person 
                        specified in subparagraph (B)(ii)(I); 
                        and
                            ``(ii) to account for the use of 
                        renewable fuel during the previous 
                        calendar year by small refineries that 
                        are exempt under paragraph (9).
            ``(4) Cellulosic biomass ethanol or waste derived 
        ethanol.--For the purpose of paragraph (2), 1 gallon of 
        cellulosic biomass ethanol or waste derived ethanol 
        shall be considered to be the equivalent of 2.5 gallons 
        of renewable fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations 
                promulgated under paragraph (2)(A) shall 
                provide--
                            ``(i) for the generation of an 
                        appropriate amount of credits by any 
                        person that refines, blends, or imports 
                        gasoline that contains a quantity of 
                        renewable fuel that is greater than the 
                        quantity required under paragraph (2);
                            ``(ii) for the generation of an 
                        appropriate amount of credits for 
                        biodiesel; and
                            ``(iii) for the generation of 
                        credits by small refineries in 
                        accordance with paragraph (9)(C).
                    ``(B) Use of credits.--A person that 
                generates credits under subparagraph (A) may 
                use the credits, or transfer all or a portion 
                of the credits to another person, for the 
                purpose of complying with paragraph (2).
                    ``(C) Duration of credits.--A credit 
                generated under this paragraph shall be valid 
                to show compliance for the 12 months as of the 
                date of generation.
                    ``(D) Inability to generate or purchase 
                sufficient credits.--The regulations 
                promulgated under paragraph (2)(A) shall 
                include provisions allowing any person that is 
                unable to generate or purchase sufficient 
                credits to meet the requirements of paragraph 
                (2) to carry forward a renewable fuel deficit 
                on condition that the person, in the calendar 
                year following the year in which the renewable 
                fuel deficit is created--
                            ``(i) achieves compliance with the 
                        renewable fuel requirement under 
                        paragraph (2); and
                            ``(ii) generates or purchases 
                        additional renewable fuel credits to 
                        offset the renewable fuel deficit of 
                        the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 
                2006 through 2012, the Administrator of the 
                Energy Information Administration shall conduct 
                a study of renewable fuel blending to determine 
                whether there are excessive seasonal variations 
                in the use of renewable fuel.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information 
                Administration, based on the study under 
                subparagraph (A), makes the determinations 
                specified in subparagraph (C), the 
                Administrator of the Environmental Protection 
                Agency shall promulgate regulations to ensure 
                that 25 percent or more of the quantity of 
                renewable fuel necessary to meet the 
                requirements of paragraph (2) is used during 
                each of the 2 periods specified in subparagraph 
                (D) of each subsequent calendar year.
                    ``(C) Determinations.--The determinations 
                referred to in subparagraph (B) are that--
                            ``(i) less than 25 percent of the 
                        quantity of renewable fuel necessary to 
                        meet the requirements of paragraph (2) 
                        has been used during 1 of the 2 periods 
                        specified in subparagraph (D) of the 
                        calendar year;
                            ``(ii) a pattern of excessive 
                        seasonal variation described in clause 
                        (i) will continue in subsequent 
                        calendar years; and
                            ``(iii) promulgating regulations or 
                        other requirements to impose a 25 
                        percent or more seasonal use of 
                        renewable fuels will not prevent or 
                        interfere with the attainment of 
                        national ambient air quality standards 
                        or significantly increase the price of 
                        motor fuels to the consumer.
                    ``(D) Periods.--The 2 periods referred to 
                in this paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and 
                        October through December.
                    ``(E) Exclusion.--Renewable fuel blended or 
                consumed in calendar year 2006 in a State that 
                has received a waiver under section 209(b) 
                shall not be included in the study under 
                subparagraph (A).
                    ``(F) State exemption from seasonality 
                requirements.--Notwithstanding any other 
                provision of law, the seasonality requirement 
                relating to renewable fuel use established by 
                this paragraph shall not apply to any State 
                that has received a waiver under section 209(b) 
                or any State dependent on refineries in such 
                State for gasoline supplies.
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture 
                and the Secretary of Energy, may waive the 
                requirements of paragraph (2) in whole or in 
                part on petition by 1 or more States by 
                reducing the national quantity of renewable 
                fuel required under paragraph (2)--
                            ``(i) based on a determination by 
                        the Administrator, after public notice 
                        and opportunity for comment, that 
                        implementation of the requirement would 
                        severely harm the economy or 
                        environment of a State, a region, or 
                        the United States; or
                            ``(ii) based on a determination by 
                        the Administrator, after public notice 
                        and opportunity for comment, that there 
                        is an inadequate domestic supply.
                    ``(B) Petitions for waivers.--The 
                Administrator, in consultation with the 
                Secretary of Agriculture and the Secretary of 
                Energy, shall approve or disapprove a State 
                petition for a waiver of the requirements of 
                paragraph (2) within 90 days after the date on 
                which the petition is received by the 
                Administrator.
                    ``(C) Termination of waivers.--A waiver 
                granted under subparagraph (A) shall terminate 
                after 1 year, but may be renewed by the 
                Administrator after consultation with the 
                Secretary of Agriculture and the Secretary of 
                Energy.
            ``(8) Study and waiver for initial year of 
        program.--
                    ``(A) In general.--Not later than 180 days 
                after the date of enactment of this paragraph, 
                the Secretary of Energy shall conduct for the 
                Administrator a study assessing whether the 
                renewable fuel requirement under paragraph (2) 
                will likely result in significant adverse 
                impacts on consumers in 2006, on a national, 
                regional, or State basis.
                    ``(B) Required evaluations.--The study 
                shall evaluate renewable fuel--
                            ``(i) supplies and prices;
                            ``(ii) blendstock supplies; and
                            ``(iii) supply and distribution 
                        system capabilities.
                    ``(C) Recommendations by the secretary.--
                Based on the results of the study, the 
                Secretary of Energy shall make specific 
                recommendations to the Administrator concerning 
                waiver of the requirements of paragraph (2), in 
                whole or in part, to prevent any adverse 
                impacts described in subparagraph (A).
                    ``(D) Waiver.--
                            ``(i) In general.--Not later than 
                        270 days after the date of enactment of 
                        this paragraph, the Administrator 
                        shall, if and to the extent recommended 
                        by the Secretary of Energy under 
                        subparagraph (C), waive, in whole or in 
                        part, the renewable fuel requirement 
                        under paragraph (2) by reducing the 
                        national quantity of renewable fuel 
                        required under paragraph (2) in 
                        calendar year 2006.
                            ``(ii) No effect on waiver 
                        authority.--Clause (i) does not limit 
                        the authority of the Administrator to 
                        waive the requirements of paragraph (2) 
                        in whole, or in part, under paragraph 
                        (7).
            ``(9) Small refineries.--
                    ``(A) Temporary exemption.--
                            ``(i) In general.--The requirements 
                        of paragraph (2) shall not apply to 
                        small refineries until calendar year 
                        2011.
                            ``(ii) Extension of exemption.--
                                    ``(I) Study by secretary of 
                                energy.--Not later than 
                                December 31, 2008, the 
                                Secretary of Energy shall 
                                conduct for the Administrator a 
                                study to determine whether 
                                compliance with the 
                                requirements of paragraph (2) 
                                would impose a disproportionate 
                                economic hardship on small 
                                refineries.
                                    ``(II) Extension of 
                                exemption.--In the case of a 
                                small refinery that the 
                                Secretary of Energy determines 
                                under subclause (I) would be 
                                subject to a disproportionate 
                                economic hardship if required 
                                to comply with paragraph (2), 
                                the Administrator shall extend 
                                the exemption under clause (i) 
                                for the small refinery for a 
                                period of not less than 2 
                                additional years.
                    ``(B) Petitions based on disproportionate 
                economic hardship.--
                            ``(i) Extension of exemption.--A 
                        small refinery may at any time petition 
                        the Administrator for an extension of 
                        the exemption under subparagraph (A) 
                        for the reason of disproportionate 
                        economic hardship.
                            ``(ii) Evaluation of petitions.--In 
                        evaluating a petition under clause (i), 
                        the Administrator, in consultation with 
                        the Secretary of Energy, shall consider 
                        the findings of the study under 
                        subparagraph (A)(ii) and other economic 
                        factors.
                            ``(iii) Deadline for action on 
                        petitions.--The Administrator shall act 
                        on any petition submitted by a small 
                        refinery for a hardship exemption not 
                        later than 90 days after the date of 
                        receipt of the petition.
                    ``(C) Credit program.--If a small refinery 
                notifies the Administrator that the small 
                refinery waives the exemption under 
                subparagraph (A), the regulations promulgated 
                under paragraph (2)(A) shall provide for the 
                generation of credits by the small refinery 
                under paragraph (5) beginning in the calendar 
                year following the date of notification.
                    ``(D) Opt-in for small refineries.--A small 
                refinery shall be subject to the requirements 
                of paragraph (2) if the small refinery notifies 
                the Administrator that the small refinery 
                waives the exemption under subparagraph (A).
            ``(10) Ethanol market concentration analysis.--
                    ``(A) Analysis.--
                            ``(i) In general.--Not later than 
                        180 days after the date of enactment of 
                        this paragraph, and annually 
                        thereafter, the Federal Trade 
                        Commission shall perform a market 
                        concentration analysis of the ethanol 
                        production industry using the 
                        Herfindahl-Hirschman Index to determine 
                        whether there is sufficient competition 
                        among industry participants to avoid 
                        price-setting and other anticompetitive 
                        behavior.
                            ``(ii) Scoring.--For the purpose of 
                        scoring under clause (i) using the 
                        Herfindahl-Hirschman Index, all 
                        marketing arrangements among industry 
                        participants shall be considered.
                    ``(B) Report.--Not later than December 1, 
                2005, and annually thereafter, the Federal 
                Trade Commission shall submit to Congress and 
                the Administrator a report on the results of 
                the market concentration analysis performed 
                under subparagraph (A)(i).''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean 
Air Act (42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or 
                (n)'' each place it appears and inserting 
                ``(n), or (o)''; and
                    (B) in the second sentence, by striking 
                ``or (m)'' and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by 
        striking ``and (n)'' each place it appears and 
        inserting ``(n), and (o)''.
    (c) Exclusion From Ethanol Waiver.--Section 211(h) of the 
Clean Air Act (42 U.S.C. 7545(h)) is amended--
            (1) by redesignating paragraph (5) as paragraph 
        (6); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Exclusion from ethanol waiver.--
                    ``(A) Promulgation of regulations.--Upon 
                notification, accompanied by supporting 
                documentation, from the Governor of a State 
                that the Reid vapor pressure limitation 
                established by paragraph (4) will increase 
                emissions that contribute to air pollution in 
                any area in the State, the Administrator shall, 
                by regulation, apply, in lieu of the Reid vapor 
                pressure limitation established by paragraph 
                (4), the Reid vapor pressure limitation 
                established by paragraph (1) to all fuel blends 
                containing gasoline and 10 percent denatured 
                anhydrous ethanol that are sold, offered for 
                sale, dispensed, supplied, offered for supply, 
                transported, or introduced into commerce in the 
                area during the high ozone season.
                    ``(B) Deadline for promulgation.--The 
                Administrator shall promulgate regulations 
                under subparagraph (A) not later than 90 days 
                after the date of receipt of a notification 
                from a Governor under that subparagraph.
                    ``(C) Effective date.--
                            ``(i) In general.--With respect to 
                        an area in a State for which the 
                        Governor submits a notification under 
                        subparagraph (A), the regulations under 
                        that subparagraph shall take effect on 
                        the later of--
                                    ``(I) the first day of the 
                                first high ozone season for the 
                                area that begins after the date 
                                of receipt of the notification; 
                                or
                                    ``(II) 1 year after the 
                                date of receipt of the 
                                notification.
                            ``(ii) Extension of effective date 
                        based on determination of insufficient 
                        supply.--
                                    ``(I) In general.--If, 
                                after receipt of a notification 
                                with respect to an area from a 
                                Governor of a State under 
                                subparagraph (A), the 
                                Administrator determines, on 
                                the Administrator's own motion 
                                or on petition of any person 
                                and after consultation with the 
                                Secretary of Energy, that the 
                                promulgation of regulations 
                                described in subparagraph (A) 
                                would result in an insufficient 
                                supply of gasoline in the 
                                State, the Administrator, by 
                                regulation--
                                            ``(aa) shall extend 
                                        the effective date of 
                                        the regulations under 
                                        clause (i) with respect 
                                        to the area for not 
                                        more than 1 year; and
                                            ``(bb) may renew 
                                        the extension under 
                                        item (aa) for 2 
                                        additional periods, 
                                        each of which shall not 
                                        exceed 1 year.
                                    ``(II) Deadline for action 
                                on petitions.--The 
                                Administrator shall act on any 
                                petition submitted under 
                                subclause (I) not later than 
                                180 days after the date of 
                                receipt of the petition.''.
    (d) Survey of Renewable Fuel Market.--
            (1) Survey and report.--Not later than December 1, 
        2006, and annually thereafter, the Administrator of the 
        Environmental Protection Agency (in consultation with 
        the Secretary acting through the Administrator of the 
        Energy Information Administration) shall--
                    (A) conduct, with respect to each 
                conventional gasoline use area and each 
                reformulated gasoline use area in each State, a 
                survey to determine the market shares of--
                            (i) conventional gasoline 
                        containing ethanol;
                            (ii) reformulated gasoline 
                        containing ethanol;
                            (iii) conventional gasoline 
                        containing renewable fuel; and
                            (iv) reformulated gasoline 
                        containing renewable fuel; and
                    (B) submit to Congress, and make publicly 
                available, a report on the results of the 
                survey under subparagraph (A).
            (2) Recordkeeping and reporting requirements.--The 
        Administrator of the Environmental Protection Agency 
        (hereinafter in this subsection referred to as the 
        ``Administrator'') may require any refiner, blender, or 
        importer to keep such records and make such reports as 
        are necessary to ensure that the survey conducted under 
        paragraph (1) is accurate. The Administrator, to avoid 
        duplicative requirements, shall rely, to the extent 
        practicable, on existing reporting and recordkeeping 
        requirements and other information available to the 
        Administrator including gasoline distribution patterns 
        that include multistate use areas.
            (3) Applicable law.--Activities carried out under 
        this subsection shall be conducted in a manner designed 
        to protect confidentiality of individual responses.

SEC. 1502. FINDINGS.

    Congress finds that--
            (1) since 1979, methyl tertiary butyl ether 
        (hereinafter in this section referred to as ``MTBE'') 
        has been used nationwide at low levels in gasoline to 
        replace lead as an octane booster or anti-knocking 
        agent;
            (2) Public Law 101-549 (commonly known as the 
        ``Clean Air Act Amendments of 1990'') (42 U.S.C. 7401 
        et seq.) established a fuel oxygenate standard under 
        which reformulated gasoline must contain at least 2 
        percent oxygen by weight; and
            (3) the fuel industry responded to the fuel 
        oxygenate standard established by Public Law 101-549 by 
        making substantial investments in--
                    (A) MTBE production capacity; and
                    (B) systems to deliver MTBE-containing 
                gasoline to the marketplace.

SEC. 1503. CLAIMS FILED AFTER ENACTMENT.

    Claims and legal actions filed after the date of enactment 
of this Act related to allegations involving actual or 
threatened contamination of methyl tertiary butyl ether (MTBE) 
may be removed to the appropriate United States district court.

SEC. 1504. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
                    GASOLINE.

    (a) Elimination.--
            (1) In general.--Section 211(k) of the Clean Air 
        Act (42 U.S.C. 7545(k)) is amended--
                    (A) in paragraph (2)--
                            (i) in the second sentence of 
                        subparagraph (A), by striking 
                        ``(including the oxygen content 
                        requirement contained in subparagraph 
                        (B))'';
                            (ii) by striking subparagraph (B); 
                        and
                            (iii) by redesignating 
                        subparagraphs (C) and (D) as 
                        subparagraphs (B) and (C), 
                        respectively;
                    (B) in paragraph (3)(A), by striking clause 
                (v); and
                    (C) in paragraph (7)--
                            (i) in subparagraph (A)--
                                    (I) by striking clause (i); 
                                and
                                    (II) by redesignating 
                                clauses (ii) and (iii) as 
                                clauses (i) and (ii), 
                                respectively; and
                            (ii) in subparagraph (C)--
                                    (I) by striking clause 
                                (ii); and
                                    (II) by redesignating 
                                clause (iii) as clause (ii).
            (2) Applicability.--The amendments made by 
        paragraph (1) apply--
                    (A) in the case of a State that has 
                received a waiver under section 209(b) of the 
                Clean Air Act (42 U.S.C. 7543(b)), beginning on 
                the date of enactment of this Act; and
                    (B) in the case of any other State, 
                beginning 270 days after the date of enactment 
                of this Act.
    (b) Maintenance of Toxic Air Pollutant Emission 
Reductions.--Section 211(k)(1) of the Clean Air Act (42 U.S.C. 
7545(k)(1)) is amended--
            (1) by striking ``Within 1 year after the enactment 
        of the Clean Air Act Amendments of 1990,'' and 
        inserting the following:
                    ``(A) In general.--Not later than November 
                15, 1991,''; and
            (2) by adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant 
                emissions reductions from reformulated 
                gasoline.--
                            ``(i) Definition of padd.--In this 
                        subparagraph the term `PADD' means a 
                        Petroleum Administration for Defense 
                        District.
                            ``(ii) Regulations concerning 
                        emissions of toxic air pollutants.--Not 
                        later than 270 days after the date of 
                        enactment of this subparagraph, the 
                        Administrator shall establish by 
                        regulation, for each refinery or 
                        importer (other than a refiner or 
                        importer in a State that has received a 
                        waiver under section 209(b) with 
                        respect to gasoline produced for use in 
                        that State), standards for toxic air 
                        pollutants from use of the reformulated 
                        gasoline produced or distributed by the 
                        refiner or importer that maintain the 
                        reduction of the average annual 
                        aggregate emissions of toxic air 
                        pollutants for reformulated gasoline 
                        produced or distributed by the refiner 
                        or importer during calendar years 2001 
                        and 2002 (as determined on the basis of 
                        data collected by the Administrator 
                        with respect to the refiner or 
                        importer).
                            ``(iii) Standards applicable to 
                        specific refineries or importers.--
                                    ``(I) Applicability of 
                                standards.--For any calendar 
                                year, the standards applicable 
                                to a refiner or importer under 
                                clause (ii) shall apply to the 
                                quantity of gasoline produced 
                                or distributed by the refiner 
                                or importer in the calendar 
                                year only to the extent that 
                                the quantity is less than or 
                                equal to the average annual 
                                quantity of reformulated 
                                gasoline produced or 
                                distributed by the refiner or 
                                importer during calendar years 
                                2001 and 2002.
                                    ``(II) Applicability of 
                                other standards.--For any 
                                calendar year, the quantity of 
                                gasoline produced or 
                                distributed by a refiner or 
                                importer that is in excess of 
                                the quantity subject to 
                                subclause (I) shall be subject 
                                to standards for emissions of 
                                toxic air pollutants 
                                promulgated under subparagraph 
                                (A) and paragraph (3)(B).
                            ``(iv) Credit program.--The 
                        Administrator shall provide for the 
                        granting and use of credits for 
                        emissions of toxic air pollutants in 
                        the same manner as provided in 
                        paragraph (7).
                            ``(v) Regional protection of toxics 
                        reduction baselines.--
                                    ``(I) In general.--Not 
                                later than 60 days after the 
                                date of enactment of this 
                                subparagraph, and not later 
                                than April 1 of each calendar 
                                year that begins after that 
                                date of enactment, the 
                                Administrator shall publish in 
                                the Federal Register a report 
                                that specifies, with respect to 
                                the previous calendar year--
                                            ``(aa) the quantity 
                                        of reformulated 
                                        gasoline produced that 
                                        is in excess of the 
                                        average annual quantity 
                                        of reformulated 
                                        gasoline produced in 
                                        2001 and 2002; and
                                            ``(bb) the 
                                        reduction of the 
                                        average annual 
                                        aggregate emissions of 
                                        toxic air pollutants in 
                                        each PADD, based on 
                                        retail survey data or 
                                        data from other 
                                        appropriate sources.
                                    ``(II) Effect of failure to 
                                maintain aggregate toxics 
                                reductions.--If, in any 
                                calendar year, the reduction of 
                                the average annual aggregate 
                                emissions of toxic air 
                                pollutants in a PADD fails to 
                                meet or exceed the reduction of 
                                the average annual aggregate 
                                emissions of toxic air 
                                pollutants in the PADD in 
                                calendar years 2001 and 2002, 
                                the Administrator, not later 
                                than 90 days after the date of 
                                publication of the report for 
                                the calendar year under 
                                subclause (I), shall--
                                            ``(aa) identify, to 
                                        the maximum extent 
                                        practicable, the 
                                        reasons for the 
                                        failure, including the 
                                        sources, volumes, and 
                                        characteristics of 
                                        reformulated gasoline 
                                        that contributed to the 
                                        failure; and
                                            ``(bb) promulgate 
                                        revisions to the 
                                        regulations promulgated 
                                        under clause (ii), to 
                                        take effect not earlier 
                                        than 180 days but not 
                                        later than 270 days 
                                        after the date of 
                                        promulgation, to 
                                        provide that, 
                                        notwithstanding clause 
                                        (iii)(II), all 
                                        reformulated gasoline 
                                        produced or distributed 
                                        at each refiner or 
                                        importer shall meet the 
                                        standards applicable 
                                        under clause (iii)(I) 
                                        beginning not later 
                                        than April 1 of the 
                                        calendar year following 
                                        publication of the 
                                        report under subclause 
                                        (I) and in each 
                                        calendar year 
                                        thereafter.
                            ``(vi) Not later than July 1, 2007, 
                        the Administrator shall promulgate 
                        final regulations to control hazardous 
                        air pollutants from motor vehicles and 
                        motor vehicle fuels, as provided for in 
                        section 80.1045 of title 40, Code of 
                        Federal Regulations (as in effect on 
                        the date of enactment of this 
                        subparagraph), and as authorized under 
                        section 202(1) of the Clean Air Act. If 
                        the Administrator promulgates by such 
                        date, final regulations to control 
                        hazardous air pollutants from motor 
                        vehicles and motor vehicle fuels that 
                        achieve and maintain greater overall 
                        reductions in emissions of air toxics 
                        from reformulated gasoline than the 
                        reductions that would be achieved under 
                        section 211(k)(1)(B) of the Clean Air 
                        Act as amended by this clause, then 
                        sections 211(k)(1)(B)(i) through 
                        211(k)(1)(B)(v) shall be null and void 
                        and regulations promulgated thereunder 
                        shall be rescinded and have no further 
                        effect.''.
    (c) Consolidation in Reformulated Gasoline Regulations.--
Not later than 180 days after the date of enactment of this 
Act, the Administrator of the Environmental Protection Agency 
shall revise the reformulated gasoline regulations under 
subpart D of part 80 of title 40, Code of Federal Regulations, 
to consolidate the regulations applicable to VOC-Control 
Regions 1 and 2 under section 80.41 of that title by 
eliminating the less stringent requirements applicable to 
gasoline designated for VOC-Control Region 2 and instead 
applying the more stringent requirements applicable to gasoline 
designated for VOC-Control Region 1.
    (d) Savings Clause.--
            (1) In general.--Nothing in this section or any 
        amendment made by this section affects or prejudices 
        any legal claim or action with respect to regulations 
        promulgated by the Administrator before the date of 
        enactment of this Act regarding--
                    (A) emissions of toxic air pollutants from 
                motor vehicles; or
                    (B) the adjustment of standards applicable 
                to a specific refinery or importer made under 
                those regulations.
            (2) Adjustment of standards.--
                    (A) Applicability.--The Administrator may 
                apply any adjustments to the standards 
                applicable to a refinery or importer under 
                subparagraph (B)(iii)(I) of section 211(k)(1) 
                of the Clean Air Act (as added by subsection 
                (b)(2)), except that--
                            (i) the Administrator shall revise 
                        the adjustments to be based only on 
                        calendar years 1999 and 2000;
                            (ii) any such adjustment shall not 
                        be made at a level below the average 
                        percentage of reductions of emissions 
                        of toxic air pollutants for 
                        reformulated gasoline supplied to PADD 
                        I during calendar years 1999 and 2000; 
                        and
                            (iii) in the case of an adjustment 
                        based on toxic air pollutant emissions 
                        from reformulated gasoline 
                        significantly below the national annual 
                        average emissions of toxic air 
                        pollutants from all reformulated 
                        gasoline--
                                    (I) the Administrator may 
                                revise the adjustment to take 
                                account of the scope of the 
                                prohibition on methyl tertiary 
                                butyl ether imposed by a State; 
                                and
                                    (II) any such adjustment 
                                shall require the refiner or 
                                importer, to the maximum extent 
                                practicable, to maintain the 
                                reduction achieved during 
                                calendar years 1999 and 2000 in 
                                the average annual aggregate 
                                emissions of toxic air 
                                pollutants from reformulated 
                                gasoline produced or 
                                distributed by the refiner or 
                                importer.

SEC. 1505. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
                    ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``may also'' and inserting 
                ``shall, on a regular basis,''; and
                    (B) by striking subparagraph (A) and 
                inserting the following:
                    ``(A) to conduct tests to determine 
                potential public health and environmental 
                effects of the fuel or additive (including 
                carcinogenic, teratogenic, or mutagenic 
                effects); and''; and
            (2) by adding at the end the following:
            ``(4) Study on certain fuel additives and 
        blendstocks.--
                    ``(A) In general.--Not later than 2 years 
                after the date of enactment of this paragraph, 
                the Administrator shall--
                            ``(i) conduct a study on the 
                        effects on public health (including the 
                        effects on children, pregnant women, 
                        minority or low-income communities, and 
                        other sensitive populations), air 
                        quality, and water resources of 
                        increased use of, and the feasibility 
                        of using as substitutes for methyl 
                        tertiary butyl ether in gasoline--
                                    ``(I) ethyl tertiary butyl 
                                ether;
                                    ``(II) tertiary amyl methyl 
                                ether;
                                    ``(III) di-isopropyl ether;
                                    ``(IV) tertiary butyl 
                                alcohol;
                                    ``(V) other ethers and 
                                heavy alcohols, as determined 
                                by then Administrator;
                                    ``(VI) ethanol;
                                    ``(VII) iso-octane; and
                                    ``(VIII) alkylates; and
                            ``(ii) conduct a study on the 
                        effects on public health (including the 
                        effects on children, pregnant women, 
                        minority or low-income communities, and 
                        other sensitive populations), air 
                        quality, and water resources of the 
                        adjustment for ethanol-blended 
                        reformulated gasoline to the volatile 
                        organic compounds performance 
                        requirements that are applicable under 
                        paragraphs (1) and (3) of section 
                        211(k); and
                            ``(iii) submit to the Committee on 
                        Environment and Public Works of the 
                        Senate and the Committee on Energy and 
                        Commerce of the House of 
                        Representatives a report describing the 
                        results of the studies under clauses 
                        (i) and (ii).
                    ``(B) Contracts for study.--In carrying out 
                this paragraph, the Administrator may enter 
                into 1 or more contracts with nongovernmental 
                entities such as--
                            ``(i) the national energy 
                        laboratories; and
                            ``(ii) institutions of higher 
                        education (as defined in section 101 of 
                        the Higher Education Act of 1965 (20 
                        U.S.C. 1001)).''.

SEC. 1506. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
amended by inserting after subsection (p) the following:
    ``(q) Analyses of Motor Vehicle Fuel Changes and Emissions 
Model.--
            ``(1) Anti-backsliding analysis.--
                    ``(A) Draft analysis.--Not later than 4 
                years after the date of enactment of this 
                paragraph, the Administrator shall publish for 
                public comment a draft analysis of the changes 
                in emissions of air pollutants and air quality 
                due to the use of motor vehicle fuel and fuel 
                additives resulting from implementation of the 
                amendments made by the Energy Policy Act of 
                2005.
                    ``(B) Final analysis.--After providing a 
                reasonable opportunity for comment but not 
                later than 5 years after the date of enactment 
                of this paragraph, the Administrator shall 
                publish the analysis in final form.
            ``(2) Emissions model.--For the purposes of this 
        section, not later than 4 years after the date of 
        enactment of this paragraph, the Administrator shall 
        develop and finalize an emissions model that reflects, 
        to the maximum extent practicable, the effects of 
        gasoline characteristics or components on emissions 
        from vehicles in the motor vehicle fleet during 
        calendar year 2007.
            ``(3) Permeation effects study.--
                    ``(A) In general.--Not later than 1 year 
                after the date of enactment of this paragraph, 
                the Administrator shall conduct a study, and 
                report to Congress the results of the study, on 
                the effects of ethanol content in gasoline on 
                permeation, the process by which fuel molecules 
                migrate through the elastomeric materials 
                (rubber and plastic parts) that make up the 
                fuel and fuel vapor systems of a motor vehicle.
                    ``(B) Evaporative emissions.--The study 
                shall include estimates of the increase in 
                total evaporative emissions likely to result 
                from the use of gasoline with ethanol content 
                in a motor vehicle, and the fleet of motor 
                vehicles, due to permeation.''.

SEC. 1507. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 
7545(k)(6)) is amended--
            (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
        inserting the following:
            ``(6) Opt-in areas.--
                    ``(A) Classified areas.--
                            ``(i) In general.--Upon'';
            (2) in subparagraph (B), by striking ``(B) If'' and 
        inserting the following:
                            ``(ii) Effect of insufficient 
                        domestic capacity to produce 
                        reformulated gasoline.--If'';
            (3) in subparagraph (A)(ii) (as redesignated by 
        paragraph (2))--
                    (A) in the first sentence, by striking 
                ``subparagraph (A)'' and inserting ``clause 
                (i)''; and
                    (B) in the second sentence, by striking 
                ``this paragraph'' and inserting ``this 
                subparagraph''; and
            (4) by adding at the end the following:
                    ``(B) Ozone transport region.--
                            ``(i) Application of prohibition.--
                                    ``(I) In general.--On 
                                application of the Governor of 
                                a State in the ozone transport 
                                region established by section 
                                184(a), the Administrator, not 
                                later than 180 days after the 
                                date of receipt of the 
                                application, shall apply the 
                                prohibition specified in 
                                paragraph (5) to any area in 
                                the State (other than an area 
                                classified as a marginal, 
                                moderate, serious, or severe 
                                ozone nonattainment area under 
                                subpart 2 of part D of title I) 
                                unless the Administrator 
                                determines under clause (iii) 
                                that there is insufficient 
                                capacity to supply reformulated 
                                gasoline.
                                    ``(II) Publication of 
                                application.--As soon as 
                                practicable after the date of 
                                receipt of an application under 
                                subclause (I), the 
                                Administrator shall publish the 
                                application in the Federal 
                                Register.
                            ``(ii) Period of applicability.--
                        Under clause (i), the prohibition 
                        specified in paragraph (5) shall apply 
                        in a State--
                                    ``(I) commencing as soon as 
                                practicable but not later than 
                                2 years after the date of 
                                approval by the Administrator 
                                of the application of the 
                                Governor of the State; and
                                    ``(II) ending not earlier 
                                than 4 years after the 
                                commencement date determined 
                                under subclause (I).
                            ``(iii) Extension of commencement 
                        date based on insufficient capacity.--
                                    ``(I) In general.--If, 
                                after receipt of an application 
                                from a Governor of a State 
                                under clause (i), the 
                                Administrator determines, on 
                                the Administrator's own motion 
                                or on petition of any person, 
                                after consultation with the 
                                Secretary of Energy, that there 
                                is insufficient capacity to 
                                supply reformulated gasoline, 
                                the Administrator, by 
                                regulation--
                                            ``(aa) shall extend 
                                        the commencement date 
                                        with respect to the 
                                        State under clause 
                                        (ii)(I) for not more 
                                        than 1 year; and
                                            ``(bb) may renew 
                                        the extension under 
                                        item (aa) for 2 
                                        additional periods, 
                                        each of which shall not 
                                        exceed 1 year.
                                    ``(II) Deadline for action 
                                on petitions.--The 
                                Administrator shall act on any 
                                petition submitted under 
                                subclause (I) not later than 
                                180 days after the date of 
                                receipt of the petition.''.

SEC. 1508. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act 
(42 U.S.C. 7135) is amended by adding at the end the following:
    ``(m) Renewable Fuels Survey.--(1) In order to improve the 
ability to evaluate the effectiveness of the Nation's renewable 
fuels mandate, the Administrator shall conduct and publish the 
results of a survey of renewable fuels demand in the motor 
vehicle fuels market in the United States monthly, and in a 
manner designed to protect the confidentiality of individual 
responses. In conducting the survey, the Administrator shall 
collect information both on a national and regional basis, 
including each of the following:
            ``(A) The quantity of renewable fuels produced.
            ``(B) The quantity of renewable fuels blended.
            ``(C) The quantity of renewable fuels imported.
            ``(D) The quantity of renewable fuels demanded.
            ``(E) Market price data.
            ``(F) Such other analyses or evaluations as the 
        Administrator finds are necessary to achieve the 
        purposes of this section.
    ``(2) The Administrator shall also collect or estimate 
information both on a national and regional basis, pursuant to 
subparagraphs (A) through (F) of paragraph (1), for the 5 years 
prior to implementation of this subsection.
    ``(3) This subsection does not affect the authority of the 
Administrator to collect data under section 52 of the Federal 
Energy Administration Act of 1974 (15 U.S.C. 790a).''.

SEC. 1509. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the 
        Environmental Protection Agency and the Secretary shall 
        jointly conduct a study of Federal, State, and local 
        requirements concerning motor vehicle fuels, 
        including--
                    (A) requirements relating to reformulated 
                gasoline, volatility (measured in Reid vapor 
                pressure), oxygenated fuel, and diesel fuel; 
                and
                    (B) other requirements that vary from State 
                to State, region to region, or locality to 
                locality.
            (2) Required elements.--The study shall assess--
                    (A) the effect of the variety of 
                requirements described in paragraph (1) on the 
                supply, quality, and price of motor vehicle 
                fuels available to the consumer;
                    (B) the effect of the requirements 
                described in paragraph (1) on achievement of--
                            (i) national, regional, and local 
                        air quality standards and goals; and
                            (ii) related environmental and 
                        public health protection standards and 
                        goals (including the protection of 
                        children, pregnant women, minority or 
                        low-income communities, and other 
                        sensitive populations);
                    (C) the effect of Federal, State, and local 
                motor vehicle fuel regulations, including 
                multiple motor vehicle fuel requirements, on--
                            (i) domestic refiners;
                            (ii) the fuel distribution system; 
                        and
                            (iii) industry investment in new 
                        capacity;
                    (D) the effect of the requirements 
                described in paragraph (1) on emissions from 
                vehicles, refiners, and fuel handling 
                facilities;
                    (E) the feasibility of developing national 
                or regional motor vehicle fuel slates for the 
                48 contiguous States that, while protecting and 
                improving air quality at the national, 
                regional, and local levels, could--
                            (i) enhance flexibility in the fuel 
                        distribution infrastructure and improve 
                        fuel fungibility;
                            (ii) reduce price volatility and 
                        costs to consumers and producers;
                            (iii) provide increased liquidity 
                        to the gasoline market; and
                            (iv) enhance fuel quality, 
                        consistency, and supply;
                    (F) the feasibility of providing 
                incentives, and the need for the development of 
                national standards necessary, to promote 
                cleaner burning motor vehicle fuel; and
                    (G) the extent to which improvements in air 
                quality and any increases or decreases in the 
                price of motor fuel can be projected to result 
                from the Environmental Protection Agency's Tier 
                II requirements for conventional gasoline and 
                vehicle emission systems, on-road and off-road 
                diesel rules, the reformulated gasoline 
                program, the renewable content requirements 
                established by this subtitle, State programs 
                regarding gasoline volatility, and any other 
                requirements imposed by the Federal Government, 
                States or localities affecting the composition 
                of motor fuel.
    (b) Report.--
            (1) In general.--Not later than June 1, 2008, the 
        Administrator of the Environmental Protection Agency 
        and the Secretary shall submit to Congress a report on 
        the results of the study conducted under subsection 
        (a).
            (2) Recommendations.--
                    (A) In general.--The report shall contain 
                recommendations for legislative and 
                administrative actions that may be taken--
                            (i) to improve air quality;
                            (ii) to reduce costs to consumers 
                        and producers; and
                            (iii) to increase supply liquidity.
                    (B) Required considerations.--The 
                recommendations under subparagraph (A) shall 
                take into account the need to provide advance 
                notice of required modifications to refinery 
                and fuel distribution systems in order to 
                ensure an adequate supply of motor vehicle fuel 
                in all States.
            (3) Consultation.--In developing the report, the 
        Administrator of the Environmental Protection Agency 
        and the Secretary shall consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) State and local air pollution control 
                regulators;
                    (D) public health experts;
                    (E) motor vehicle fuel producers and 
                distributors; and
                    (F) the public.

SEC. 1510. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE AND 
                    CELLULOSIC BIOMASS LOAN GUARANTEE PROGRAM.

    (a) Definition of Municipal Solid Waste.--In this section, 
the term ``municipal solid waste'' has the meaning given the 
term ``solid waste'' in section 1004 of the Solid Waste 
Disposal Act (42 U.S.C. 6903).
    (b) Establishment of Program.--The Secretary shall 
establish a program to provide guarantees of loans by private 
institutions for the construction of facilities for the 
processing and conversion of municipal solid waste and 
cellulosic biomass into fuel ethanol and other commercial 
byproducts.
    (c) Requirements.--The Secretary may provide a loan 
guarantee under subsection (b) to an applicant if--
            (1) without a loan guarantee, credit is not 
        available to the applicant under reasonable terms or 
        conditions sufficient to finance the construction of a 
        facility described in subsection (b);
            (2) the prospective earning power of the applicant 
        and the character and value of the security pledged 
        provide a reasonable assurance of repayment of the loan 
        to be guaranteed in accordance with the terms of the 
        loan; and
            (3) the loan bears interest at a rate determined by 
        the Secretary to be reasonable, taking into account the 
        current average yield on outstanding obligations of the 
        United States with remaining periods of maturity 
        comparable to the maturity of the loan.
    (d) Criteria.--In selecting recipients of loan guarantees 
from among applicants, the Secretary shall give preference to 
proposals that--
            (1) meet all applicable Federal and State 
        permitting requirements;
            (2) are most likely to be successful; and
            (3) are located in local markets that have the 
        greatest need for the facility because of--
                    (A) the limited availability of land for 
                waste disposal;
                    (B) the availability of sufficient 
                quantities of cellulosic biomass; or
                    (C) a high level of demand for fuel ethanol 
                or other commercial byproducts of the facility.
    (e) Maturity.--A loan guaranteed under subsection (b) shall 
have a maturity of not more than 20 years.
    (f) Terms and Conditions.--The loan agreement for a loan 
guaranteed under subsection (b) shall provide that no provision 
of the loan agreement may be amended or waived without the 
consent of the Secretary.
    (g) Assurance of Repayment.--The Secretary shall require 
that an applicant for a loan guarantee under subsection (b) 
provide an assurance of repayment in the form of a performance 
bond, insurance, collateral, or other means acceptable to the 
Secretary in an amount equal to not less than 20 percent of the 
amount of the loan.
    (h) Guarantee Fee.--The recipient of a loan guarantee under 
subsection (b) shall pay the Secretary an amount determined by 
the Secretary to be sufficient to cover the administrative 
costs of the Secretary relating to the loan guarantee.
    (i) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all guarantees 
made under this section. Any such guarantee made by the 
Secretary shall be conclusive evidence of the eligibility of 
the loan for the guarantee with respect to principal and 
interest. The validity of the guarantee shall be incontestable 
in the hands of a holder of the guaranteed loan.
    (j) Reports.--Until each guaranteed loan under this section 
has been repaid in full, the Secretary shall annually submit to 
Congress a report on the activities of the Secretary under this 
section.
    (k) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.
    (l) Termination of Authority.--The authority of the 
Secretary to issue a loan guarantee under subsection (b) 
terminates on the date that is 10 years after the date of 
enactment of this Act.

SEC. 1511. RENEWABLE FUEL.

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

``SEC. 212. RENEWABLE FUEL.

    ``(a) Definitions.--In this section:
            ``(1) Municipal solid waste.--The term `municipal 
        solid waste' has the meaning given the term `solid 
        waste' in section 1004 of the Solid Waste Disposal Act 
        (42 U.S.C. 6903).
            ``(2) RFG state.--The term `RFG State' means a 
        State in which is located 1 or more covered areas (as 
        defined in section 211(k)(10)(D)).
            ``(3) Secretary.--The term `Secretary' means the 
        Secretary of Energy.
    ``(b) Cellulosic Biomass Ethanol and Municipal Solid Waste 
Loan Guarantee Program.--
            ``(1) In general.--Funds may be provided for the 
        cost (as defined in the Federal Credit Reform Act of 
        1990 (2 U.S.C. 661 et seq.)) of loan guarantees issued 
        under title XIV of the Energy Policy Act to carry out 
        commercial demonstration projects for celluosic biomass 
        and sucrose-derived ethanol.
            ``(2) Demonstration projects.--
                    ``(A) In general.--The Secretary shall 
                issue loan guarantees under this section to 
                carry out not more than 4 projects to 
                commercially demonstrate the feasibility and 
                viability of producing cellulosic biomass 
                ethanol or sucrose-derived ethanol, including 
                at least 1 project that uses cereal straw as a 
                feedstock and 1 project that uses municipal 
                solid waste as a feedstock.
                    ``(B) Design capacity.--Each project shall 
                have a design capacity to produce at least 
                30,000,000 gallons of cellulosic biomass 
                ethanol each year.
            ``(3) Applicant assurances.--An applicant for a 
        loan guarantee under this section shall provide 
        assurances, satisfactory to the Secretary, that--
                    ``(A) the project design has been validated 
                through the operation of a continuous process 
                facility with a cumulative output of at least 
                50,000 gallons of ethanol;
                    ``(B) the project has been subject to a 
                full technical review;
                    ``(C) the project is covered by adequate 
                project performance guarantees;
                    ``(D) the project, with the loan guarantee, 
                is economically viable; and
                    ``(E) there is a reasonable assurance of 
                repayment of the guaranteed loan.
            ``(4) Limitations.--
                    ``(A) Maximum guarantee.--Except as 
                provided in subparagraph (B), a loan guarantee 
                under this section may be issued for up to 80 
                percent of the estimated cost of a project, but 
                may not exceed $250,000,000 for a project.
                    ``(B) Additional guarantees.--
                            ``(i) In general.--The Secretary 
                        may issue additional loan guarantees 
                        for a project to cover up to 80 percent 
                        of the excess of actual project cost 
                        over estimated project cost but not to 
                        exceed 15 percent of the amount of the 
                        original guarantee.
                            ``(ii) Principal and interest.--
                        Subject to subparagraph (A), the 
                        Secretary shall guarantee 100 percent 
                        of the principal and interest of a loan 
                        made under subparagraph (A).
            ``(5) Equity contributions.--To be eligible for a 
        loan guarantee under this section, an applicant for the 
        loan guarantee shall have binding commitments from 
        equity investors to provide an initial equity 
        contribution of at least 20 percent of the total 
        project cost.
            ``(6) Insufficient amounts.--If the amount made 
        available to carry out this section is insufficient to 
        allow the Secretary to make loan guarantees for 3 
        projects described in subsection (b), the Secretary 
        shall issue loan guarantees for 1 or more qualifying 
        projects under this section in the order in which the 
        applications for the projects are received by the 
        Secretary.
            ``(7) Approval.--An application for a loan 
        guarantee under this section shall be approved or 
        disapproved by the Secretary not later than 90 days 
        after the application is received by the Secretary.
    ``(c) Authorization of Appropriations for Resource 
Center.--There is authorized to be appropriated, for a resource 
center to further develop bioconversion technology using low-
cost biomass for the production of ethanol at the Center for 
Biomass-Based Energy at the Mississippi State University and 
the Oklahoma State University, $4,000,000 for each of fiscal 
years 2005 through 2007.
    ``(d) Renewable Fuel Production Research and Development 
Grants.--
            ``(1) In general.--The Administrator shall provide 
        grants for the research into, and development and 
        implementation of, renewable fuel production 
        technologies in RFG States with low rates of ethanol 
        production, including low rates of production of 
        cellulosic biomass ethanol.
            ``(2) Eligibility.--
                    ``(A) In general.--The entities eligible to 
                receive a grant under this subsection are 
                academic institutions in RFG States, and 
                consortia made up of combinations of academic 
                institutions, industry, State government 
                agencies, or local government agencies in RFG 
                States, that have proven experience and 
                capabilities with relevant technologies.
                    ``(B) Application.--To be eligible to 
                receive a grant under this subsection, an 
                eligible entity shall submit to the 
                Administrator an application in such manner and 
                form, and accompanied by such information, as 
                the Administrator may specify.
            ``(3) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $25,000,000 for each of fiscal years 2006 
        through 2010.
    ``(e) Cellulosic Biomass Ethanol Conversion Assistance.--
            ``(1) In general.--The Secretary may provide grants 
        to merchant producers of cellulosic biomass ethanol in 
        the United States to assist the producers in building 
        eligible production facilities described in paragraph 
        (2) for the production of cellulosic biomass ethanol.
            ``(2) Eligible production facilities.--A production 
        facility shall be eligible to receive a grant under 
        this subsection if the production facility--
                    ``(A) is located in the United States; and
                    ``(B) uses cellulosic biomass feedstocks 
                derived from agricultural residues or municipal 
                solid waste.
            ``(3) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection--
                    ``(A) $250,000,000 for fiscal year 2006; 
                and
                    ``(B) $400,000,000 for fiscal year 2007.''.

SEC. 1512. CONVERSION ASSISTANCE FOR CELLULOSIC BIOMASS, WASTE-DERIVED 
                    ETHANOL, APPROVED RENEWABLE FUELS.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
amended by adding at the end the following:
    ``(r) Conversion Assistance for Cellulosic Biomass, Waste-
Derived Ethanol, Approved Renewable Fuels.--
            ``(1) In general.--The Secretary of Energy may 
        provide grants to merchant producers of cellulosic 
        biomass ethanol, waste-derived ethanol, and approved 
        renewable fuels in the United States to assist the 
        producers in building eligible production facilities 
        described in paragraph (2) for the production of 
        ethanol or approved renewable fuels.
            ``(2) Eligible production facilities.--A production 
        facility shall be eligible to receive a grant under 
        this subsection if the production facility--
                    ``(A) is located in the United States; and
                    ``(B) uses cellulosic or renewable biomass 
                or waste-derived feedstocks derived from 
                agricultural residues, wood residues, municipal 
                solid waste, or agricultural byproducts.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated the following amounts to 
        carry out this subsection:
                    ``(A) $100,000,000 for fiscal year 2006.
                    ``(B) $250,000,000 for fiscal year 2007.
                    ``(C) $400,000,000 for fiscal year 2008.
            ``(4) Definitions.--For the purposes of this 
        subsection:
                    ``(A) The term `approved renewable fuels' 
                are fuels and components of fuels that have 
                been approved by the Department of Energy, as 
                defined in section 301 of the Energy Policy Act 
                of 1992 (42 U.S.C. 13211), which have been made 
                from renewable biomass.
                    ``(B) The term `renewable biomass' is, as 
                defined in Presidential Executive Order 13134, 
                published in the Federal Register on August 16, 
                1999, any organic matter that is available on a 
                renewable or recurring basis (excluding old-
                growth timber), including dedicated energy 
                crops and trees, agricultural food and feed 
                crop residues, aquatic plants, animal wastes, 
                wood and wood residues, paper and paper 
                residues, and other vegetative waste materials. 
                Old-growth timber means timber of a forest from 
                the late successional stage of forest 
                development.''.

SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GASOLINES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
amended by adding at the end the following:
    ``(s) Blending of Compliant Reformulated Gasolines.--
            ``(1) In general.--Notwithstanding subsections (h) 
        and (k) and subject to the limitations in paragraph (2) 
        of this subsection, it shall not be a violation of this 
        subtitle for a gasoline retailer, during any month of 
        the year, to blend at a retail location batches of 
        ethanol-blended and non-ethanol-blended reformulated 
        gasoline, provided that--
                    ``(A) each batch of gasoline to be blended 
                has been individually certified as in 
                compliance with subsections (h) and (k) prior 
                to being blended;
                    ``(B) the retailer notifies the 
                Administrator prior to such blending, and 
                identifies the exact location of the retail 
                station and the specific tank in which such 
                blending will take place;
                    ``(C) the retailer retains and, as 
                requested by the Administrator or the 
                Administrator's designee, makes available for 
                inspection such certifications accounting for 
                all gasoline at the retail outlet; and
                    ``(D) the retailer does not, between June 1 
                and September 15 of each year, blend a batch of 
                VOC-controlled, or `summer', gasoline with a 
                batch of non-VOC-controlled, or `winter', 
                gasoline (as these terms are defined under 
                subsections (h) and (k)).
            ``(2) Limitations.--
                    ``(A) Frequency limitation.--A retailer 
                shall only be permitted to blend batches of 
                compliant reformulated gasoline under this 
                subsection a maximum of two blending periods 
                between May 1 and September 15 of each calendar 
                year.
                    ``(B) Duration of blending period.--Each 
                blending period authorized under subparagraph 
                (A) shall extend for a period of no more than 
                10 consecutive calendar days.
            ``(3) Surveys.--A sample of gasoline taken from a 
        retail location that has blended gasoline within the 
        past 30 days and is in compliance with subparagraphs 
        (A), (B), (C), and (D) of paragraph (1) shall not be 
        used in a VOC survey mandated by 40 C.F.R. Part 80.
            ``(4) State implementation plans.--A State shall be 
        held harmless and shall not be required to revise its 
        State implementation plan under section 110 to account 
        for the emissions from blended gasoline authorized 
        under paragraph (1).
            ``(5) Preservation of state law.--Nothing in this 
        subsection shall--
                    ``(A) preempt existing State laws or 
                regulations regulating the blending of 
                compliant gasolines; or
                    ``(B) prohibit a State from adopting such 
                restrictions in the future.
            ``(6) Regulations.--The Administrator shall 
        promulgate, after notice and comment, regulations 
        implementing this subsection within one year after the 
        date of enactment of this subsection.
            ``(7) Effective date.--This subsection shall become 
        effective 15 months after the date of its enactment and 
        shall apply to blended batches of reformulated gasoline 
        on or after that date, regardless of whether the 
        implementing regulations required by paragraph (6) have 
        been promulgated by the Administrator by that date.
            ``(8) Liability.--No person other than the person 
        responsible for blending under this subsection shall be 
        subject to an enforcement action or penalties under 
        subsection (d) solely arising from the blending of 
        compliant reformulated gasolines by the retailers.
            ``(9) Formulation of gasoline.--This subsection 
        does not grant authority to the Administrator or any 
        State (or any subdivision thereof) to require 
        reformulation of gasoline at the refinery to adjust for 
        potential or actual emissions increases due to the 
        blending authorized by this subsection.''.

SEC. 1514. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

    (a) In General.--Subject to the availability of 
appropriations under subsection (d), the Administrator of the 
Environmental Protection Agency shall, in consultation with the 
Secretary of Agriculture and the Biomass Research and 
Development Technical Advisory Committee established under 
section 306 of the Biomass Research and Development Act of 2000 
(Public Law 106-224; 7 U.S.C. 8101 note), establish a program, 
to be known as the ``Advanced Biofuel Technologies Program'', 
to demonstrate advanced technologies for the production of 
alternative transportation fuels.
    (b) Priority.--In carrying out the program under subsection 
(a), the Administrator shall give priority to projects that 
enhance the geographical diversity of alternative fuels 
production and utilize feedstocks that represent 10 percent or 
less of ethanol or biodiesel fuel production in the United 
States during the previous fiscal year.
    (c) Demonstration Projects.--
            (1) In general.--As part of the program under 
        subsection (a), the Administrator shall fund 
        demonstration projects--
                    (A) to develop not less than 4 different 
                conversion technologies for producing 
                cellulosic biomass ethanol; and
                    (B) to develop not less than 5 technologies 
                for coproducing value-added bioproducts (such 
                as fertilizers, herbicides, and pesticides) 
                resulting from the production of biodiesel 
                fuel.
            (2) Administration.--Demonstration projects under 
        this subsection shall be--
                    (A) conducted based on a merit-reviewed, 
                competitive process; and
                    (B) subject to the cost-sharing 
                requirements of section 988.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $110,000,000 for 
each of fiscal years 2005 through 2009.

SEC. 1515. WASTE-DERIVED ETHANOL AND BIODIESEL.

    Section 312(f)(1) of the Energy Policy Act of 1992 (42 
U.S.C. 13220(f)(1)) is amended--
            (1) by striking ```biodiesel' means'' and inserting 
        the following: ```biodiesel'--
                    ``(A) means''; and
            (2) in subparagraph (A) (as designated by paragraph 
        (1)) by striking ``and'' at the end and inserting the 
        following:
                    ``(B) includes biodiesel derived from--
                            ``(i) animal wastes, including 
                        poultry fats and poultry wastes, and 
                        other waste materials; or
                            ``(ii) municipal solid waste and 
                        sludges and oils derived from 
                        wastewater and the treatment of 
                        wastewater; and''.''

SEC. 1516. SUGAR ETHANOL LOAN GUARANTEE PROGRAM.

    (a) In General.--Funds may be provided for the cost (as 
defined in section 502 of the Federal Credit Reform Act of 1990 
(2 U.S.C. 661a)) of loan guarantees issued under title XIV to 
carry out commercial demonstration projects for ethanol derived 
from sugarcane, bagasse, and other sugarcane byproducts.
    (b) Demonstration Projects.--The Secretary may issue loan 
guarantees under this section to projects to demonstrate 
commercially the feasibility and viability of producing ethanol 
using sugarcane, sugarcane bagasse, and other sugarcane 
byproducts as a feedstock.
    (c) Requirements.--An applicant for a loan guarantee under 
this section may provide assurances, satisfactory to the 
Secretary, that--
            (1) the project design has been validated through 
        the operation of a continuous process facility;
            (2) the project has been subject to a full 
        technical review;
            (3) the project, with the loan guarantee, is 
        economically viable; and
            (4) there is a reasonable assurance of repayment of 
        the guaranteed loan.
    (d) Limitations.--
            (1) Maximum guarantee.--Except as provided in 
        paragraph (2), a loan guarantee under this section--
                    (A) may be issued for up to 80 percent of 
                the estimated cost of a project; but
                    (B) shall not exceed $50,000,000 for any 1 
                project.
            (2) Additional guarantees.--
                    (A) In general.--The Secretary may issue 
                additional loan guarantees for a project to 
                cover--
                            (i) up to 80 percent of the excess 
                        of actual project costs; but
                            (ii) not to exceed 15 percent of 
                        the amount of the original loan 
                        guarantee.
                    (B) Principal and interest.--Subject to 
                subparagraph (A), the Secretary shall guarantee 
                100 percent of the principal and interest of a 
                loan guarantee made under subparagraph (A).

            Subtitle B--Underground Storage Tank Compliance

SEC. 1521. SHORT TITLE.

    This subtitle may be cited as the ``Underground Storage 
Tank Compliance Act ''.

SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS.

    (a) In General.--Section 9004 of the Solid Waste Disposal 
Act (42 U.S.C. 6991c) is amended by adding at the end the 
following:
    ``(f) Trust Fund Distribution.--
            ``(1) In general.--
                    ``(A) Amount and permitted uses of 
                distribution.--The Administrator shall 
                distribute to States not less than 80 percent 
                of the funds from the Trust Fund that are made 
                available to the Administrator under section 
                9014(2)(A) for each fiscal year for use in 
                paying the reasonable costs, incurred under a 
                cooperative agreement with any State for--
                            ``(i) corrective actions taken by 
                        the State under section 9003(h)(7)(A);
                            ``(ii) necessary administrative 
                        expenses, as determined by the 
                        Administrator, that are directly 
                        related to State fund or State 
                        assurance programs under subsection 
                        (c)(1); or
                            ``(iii) enforcement, by a State or 
                        a local government, of State or local 
                        regulations pertaining to underground 
                        storage tanks regulated under this 
                        subtitle.
                    ``(B) Use of funds for enforcement.--In 
                addition to the uses of funds authorized under 
                subparagraph (A), the Administrator may use 
                funds from the Trust Fund that are not 
                distributed to States under subparagraph (A) 
                for enforcement of any regulation promulgated 
                by the Administrator under this subtitle.
                    ``(C) Prohibited uses.--Funds provided to a 
                State by the Administrator under subparagraph 
                (A) shall not be used by the State to provide 
                financial assistance to an owner or operator to 
                meet any requirement relating to underground 
                storage tanks under subparts B, C, D, H, and G 
                of part 280 of title 40, Code of Federal 
                Regulations (as in effect on the date of 
                enactment of this subsection).
            ``(2) Allocation.--
                    ``(A) Process.--Subject to subparagraphs 
                (B) and (C), in the case of a State with which 
                the Administrator has entered into a 
                cooperative agreement under section 
                9003(h)(7)(A), the Administrator shall 
                distribute funds from the Trust Fund to the 
                State using an allocation process developed by 
                the Administrator.
                    ``(B) Diversion of state funds.--The 
                Administrator shall not distribute funds under 
                subparagraph (A)(iii) of subsection (f)(1) to 
                any State that has diverted funds from a State 
                fund or State assurance program for purposes 
                other than those related to the regulation of 
                underground storage tanks covered by this 
                subtitle, with the exception of those transfers 
                that had been completed earlier than the date 
                of enactment of this subsection.
                    ``(C) Revisions to process.--The 
                Administrator may revise the allocation process 
                referred to in subparagraph (A) after--
                            ``(i) consulting with State 
                        agencies responsible for overseeing 
                        corrective action for releases from 
                        underground storage tanks; and
                            ``(ii) taking into consideration, 
                        at a minimum, each of the following:
                                    ``(I) The number of 
                                confirmed releases from 
                                federally regulated leaking 
                                underground storage tanks in 
                                the States.
                                    ``(II) The number of 
                                federally regulated underground 
                                storage tanks in the States.
                                    ``(III) The performance of 
                                the States in implementing and 
                                enforcing the program.
                                    ``(IV) The financial needs 
                                of the States.
                                    ``(V) The ability of the 
                                States to use the funds 
                                referred to in subparagraph (A) 
                                in any year.
            ``(3) Distributions to state agencies.--
        Distributions from the Trust Fund under this subsection 
        shall be made directly to a State agency that--
                    ``(A) enters into a cooperative agreement 
                referred to in paragraph (2)(A); or
                    ``(B) is enforcing a State program approved 
                under this section.''.
    (b) Withdrawal of Approval of State Funds.--Section 9004(c) 
of the Solid Waste Disposal Act (42 U.S.C. 6991c(c)) is amended 
by inserting the following new paragraph at the end thereof:
            ``(6) Withdrawal of approval.--After an opportunity 
        for good faith, collaborative efforts to correct 
        financial deficiencies with a State fund, the 
        Administrator may withdraw approval of any State fund 
        or State assurance program to be used as a financial 
        responsibility mechanism without withdrawing approval 
        of a State underground storage tank program under 
        section 9004(a).''.
    (c) Ability to Pay.--Section 9003(h)(6) of the Solid Waste 
Disposal Act (42 U.S.C. 6591a(h)(6)) is amended by adding the 
following new subparagraph at the end thereof:
                    ``(E) Inability or limited ability to 
                pay.--
                            ``(i) In general.--In determining 
                        the level of recovery effort, or amount 
                        that should be recovered, the 
                        Administrator (or the State pursuant to 
                        paragraph (7)) shall consider the owner 
                        or operator's ability to pay. An 
                        inability or limited ability to pay 
                        corrective action costs must be 
                        demonstrated to the Administrator (or 
                        the State pursuant to paragraph (7)) by 
                        the owner or operator.
                            ``(ii) Considerations.--In 
                        determining whether or not a 
                        demonstration is made under clause (i), 
                        the Administrator (or the State 
                        pursuant to paragraph (7)) shall take 
                        into consideration the ability of the 
                        owner or operator to pay corrective 
                        action costs and still maintain its 
                        basic business operations, including 
                        consideration of the overall financial 
                        condition of the owner or operator and 
                        demonstrable constraints on the ability 
                        of the owner or operator to raise 
                        revenues.
                            ``(iii) Information.--An owner or 
                        operator requesting consideration under 
                        this subparagraph shall promptly 
                        provide the Administrator (or the State 
                        pursuant to paragraph (7)) with all 
                        relevant information needed to 
                        determine the ability of the owner or 
                        operator to pay corrective action 
                        costs.
                            ``(iv) Alternative payment 
                        methods.--The Administrator (or the 
                        State pursuant to paragraph (7)) shall 
                        consider alternative payment methods as 
                        may be necessary or appropriate if the 
                        Administrator (or the State pursuant to 
                        paragraph (7)) determines that an owner 
                        or operator cannot pay all or a portion 
                        of the costs in a lump sum payment.
                            ``(v) Misrepresentation.--If an 
                        owner or operator provides false 
                        information or otherwise misrepresents 
                        their financial situation under clause 
                        (ii), the Administrator (or the State 
                        pursuant to paragraph (7)) shall seek 
                        full recovery of the costs of all such 
                        actions pursuant to the provisions of 
                        subparagraph (A) without consideration 
                        of the factors in subparagraph (B).''.

SEC. 1523. INSPECTION OF UNDERGROUND STORAGE TANKS.

    (a) Inspection Requirements.--Section 9005 of the Solid 
Waste Disposal Act (42 U.S.C. 6991d) is amended by inserting 
the following new subsection at the end thereof:
    ``(c) Inspection Requirements.--
            ``(1) Uninspected tanks.--In the case of 
        underground storage tanks regulated under this subtitle 
        that have not undergone an inspection since December 
        22, 1998, not later than 2 years after the date of 
        enactment of this subsection, the Administrator or a 
        State that receives funding under this subtitle, as 
        appropriate, shall conduct on-site inspections of all 
        such tanks to determine compliance with this subtitle 
        and the regulations under this subtitle (40 C.F.R. 280) 
        or a requirement or standard of a State program 
        developed under section 9004.
            ``(2) Periodic inspections.--After completion of 
        all inspections required under paragraph (1), the 
        Administrator or a State that receives funding under 
        this subtitle, as appropriate, shall conduct on-site 
        inspections of each underground storage tank regulated 
        under this subtitle at least once every 3 years to 
        determine compliance with this subtitle and the 
        regulations under this subtitle (40 C.F.R. 280) or a 
        requirement or standard of a State program developed 
        under section 9004. The Administrator may extend for up 
        to one additional year the first 3-year inspection 
        interval under this paragraph if the State demonstrates 
        that it has insufficient resources to complete all such 
        inspections within the first 3-year period.
            ``(3) Inspection authority.--Nothing in this 
        section shall be construed to diminish the 
        Administrator's or a State's authorities under section 
        9005(a).''.
    (b) Study of Alternative Inspection Programs.--The 
Administrator of the Environmental Protection Agency, in 
coordination with a State, shall gather information on 
compliance assurance programs that could serve as an 
alternative to the inspection programs under section 9005(c) of 
the Solid Waste Disposal Act (42 U.S.C. 6991d(c)) and shall, 
within 4 years after the date of enactment of this Act, submit 
a report to the Congress containing the results of such study.

SEC. 1524. OPERATOR TRAINING.

    (a) In General.--Section 9010 of the Solid Waste Disposal 
Act (42 U.S.C. 6991i) is amended to read as follows:

``SEC. 9010. OPERATOR TRAINING.

    ``(a) Guidelines.--
            ``(1) In general.--Not later than 2 years after the 
        date of enactment of the Underground Storage Tank 
        Compliance Act, in consultation and cooperation with 
        States and after public notice and opportunity for 
        comment, the Administrator shall publish guidelines 
        that specify training requirements for--
                    ``(A) persons having primary responsibility 
                for on-site operation and maintenance of 
                underground storage tank systems;
                    ``(B) persons having daily on-site 
                responsibility for the operation and 
                maintenance of underground storage tanks 
                systems; and
                    ``(C) daily, on-site employees having 
                primary responsibility for addressing 
                emergencies presented by a spill or release 
                from an underground storage tank system.
            ``(2) Considerations.--The guidelines described in 
        paragraph (1) shall take into account--
                    ``(A) State training programs in existence 
                as of the date of publication of the 
                guidelines;
                    ``(B) training programs that are being 
                employed by tank owners and tank operators as 
                of the date of enactment of the Underground 
                Storage Tank Compliance Act;
                    ``(C) the high turnover rate of tank 
                operators and other personnel;
                    ``(D) the frequency of improvement in 
                underground storage tank equipment technology;
                    ``(E) the nature of the businesses in which 
                the tank operators are engaged;
                    ``(F) the substantial differences in the 
                scope and length of training needed for the 
                different classes of persons described in 
                subparagraphs (A), (B), and (C) of paragraph 
                (1); and
                    ``(G) such other factors as the 
                Administrator determines to be necessary to 
                carry out this section.
    ``(b) State Programs.--
            ``(1) In general.--Not later than 2 years after the 
        date on which the Administrator publishes the 
        guidelines under subsection (a)(1), each State that 
        receives funding under this subtitle shall develop 
        State-specific training requirements that are 
        consistent with the guidelines developed under 
        subsection (a)(1).
            ``(2) Requirements.--State requirements described 
        in paragraph (1) shall--
                    ``(A) be consistent with subsection (a);
                    ``(B) be developed in cooperation with tank 
                owners and tank operators;
                    ``(C) take into consideration training 
                programs implemented by tank owners and tank 
                operators as of the date of enactment of this 
                section; and
                    ``(D) be appropriately communicated to tank 
                owners and operators.
            ``(3) Financial incentive.--The Administrator may 
        award to a State that develops and implements 
        requirements described in paragraph (1), in addition to 
        any funds that the State is entitled to receive under 
        this subtitle, not more than $200,000, to be used to 
        carry out the requirements.
    ``(c) Training.--All persons that are subject to the 
operator training requirements of subsection (a) shall--
            ``(1) meet the training requirements developed 
        under subsection (b); and
            ``(2) repeat the applicable requirements developed 
        under subsection (b), if the tank for which they have 
        primary daily on-site management responsibilities is 
        determined to be out of compliance with--
                    ``(A) a requirement or standard promulgated 
                by the Administrator under section 9003; or
                    ``(B) a requirement or standard of a State 
                program approved under section 9004.''.
    (b) State Program Requirement.--Section 9004(a) of the 
Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended by 
striking ``and'' at the end of paragraph (7), by striking the 
period at the end of paragraph (8) and inserting ``; and'', and 
by adding the following new paragraph at the end thereof:
            ``(9) State-specific training requirements as 
        required by section 9010.''.
    (c) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C. 
6991e) is amended as follows:
            (1) By striking ``or'' at the end of subparagraph 
        (B).
            (2) By adding the following new subparagraph after 
        subparagraph (C):
            ``(D) the training requirements established by 
        States pursuant to section 9010 (relating to operator 
        training); or''.
    (d) Table of Contents.--The item relating to section 9010 
in table of contents for the Solid Waste Disposal Act is 
amended to read as follows:

``Sec. 9010. Operator training''.

SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDITIVES.

    Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 
6991b(h)) is amended as follows:
            (1) In paragraph (7)(A)--
                    (A) by striking ``paragraphs (1) and (2) of 
                this subsection'' and inserting ``paragraphs 
                (1), (2), and (12)''; and
                    (B) by striking ``and including the 
                authorities of paragraphs (4), (6), and (8) of 
                this subsection'' and inserting ``and the 
                authority under sections 9011 and 9012 and 
                paragraphs (4), (6), and (8),''.
            (2) By adding at the end the following:
            ``(12) Remediation of oxygenated fuel 
        contamination.--
                    ``(A) In general.--The Administrator and 
                the States may use funds made available under 
                section 9014(2)(B) to carry out corrective 
                actions with respect to a release of a fuel 
                containing an oxygenated fuel additive that 
                presents a threat to human health or welfare or 
                the environment.
                    ``(B) Applicable authority.--The 
                Administrator or a State shall carry out 
                subparagraph (A) in accordance with paragraph 
                (2), and in the case of a State, in accordance 
                with a cooperative agreement entered into by 
                the Administrator and the State under paragraph 
                (7).''.

SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND ENFORCEMENT.

    (a) Release Prevention and Compliance.--Subtitle I of the 
Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by 
adding at the end the following:

``SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND COMPLIANCE.

    ``Funds made available under section 9014(2)(D) from the 
Trust Fund may be used to conduct inspections, issue orders, or 
bring actions under this subtitle--
            ``(1) by a State, in accordance with a grant or 
        cooperative agreement with the Administrator, of State 
        regulations pertaining to underground storage tanks 
        regulated under this subtitle; and
            ``(2) by the Administrator, for tanks regulated 
        under this subtitle (including under a State program 
        approved under section 9004).''.
    (b) Government-Owned Tanks.--Section 9003 of the Solid 
Waste Disposal Act (42 U.S.C. 6991b) is amended by adding at 
the end the following:
    ``(i) Government-Owned Tanks.--
            ``(1) State compliance report.--(A) Not later than 
        2 years after the date of enactment of this subsection, 
        each State that receives funding under this subtitle 
        shall submit to the Administrator a State compliance 
        report that--
                    ``(i) lists the location and owner of each 
                underground storage tank described in 
                subparagraph (B) in the State that, as of the 
                date of submission of the report, is not in 
                compliance with section 9003; and
                    ``(ii) specifies the date of the last 
                inspection and describes the actions that have 
                been and will be taken to ensure compliance of 
                the underground storage tank listed under 
                clause (i) with this subtitle.
            ``(B) An underground storage tank described in this 
        subparagraph is an underground storage tank that is--
                    ``(i) regulated under this subtitle; and
                    ``(ii) owned or operated by the Federal, 
                State, or local government.
            ``(C) The Administrator shall make each report, 
        received under subparagraph (A), available to the 
        public through an appropriate media.
            ``(2) Financial incentive.--The Administrator may 
        award to a State that develops a report described in 
        paragraph (1), in addition to any other funds that the 
        State is entitled to receive under this subtitle, not 
        more than $50,000, to be used to carry out the report.
            ``(3) Not a safe harbor.--This subsection does not 
        relieve any person from any obligation or requirement 
        under this subtitle.''.
    (c) Public Record.--Section 9002 of the Solid Waste 
Disposal Act (42 U.S.C. 6991a) is amended by adding at the end 
the following:
    ``(d) Public Record.--
            ``(1) In general.--The Administrator shall require 
        each State that receives Federal funds to carry out 
        this subtitle to maintain, update at least annually, 
        and make available to the public, in such manner and 
        form as the Administrator shall prescribe (after 
        consultation with States), a record of underground 
        storage tanks regulated under this subtitle.
            ``(2) Considerations.--To the maximum extent 
        practicable, the public record of a State, 
        respectively, shall include, for each year--
                    ``(A) the number, sources, and causes of 
                underground storage tank releases in the State;
                    ``(B) the record of compliance by 
                underground storage tanks in the State with--
                            ``(i) this subtitle; or
                            ``(ii) an applicable State program 
                        approved under section 9004; and
                    ``(C) data on the number of underground 
                storage tank equipment failures in the 
                State.''.
    (d) Incentive for Performance.--Section 9006 of the Solid 
Waste Disposal Act (42 U.S.C. 6991e) is amended by adding at 
the end the following:
    ``(e) Incentive for Performance.--Both of the following may 
be taken into account in determining the terms of a civil 
penalty under subsection (d):
            ``(1) The compliance history of an owner or 
        operator in accordance with this subtitle or a program 
        approved under section 9004.
            ``(2) Any other factor the Administrator considers 
        appropriate.''.
    (e) Table of Contents.--The table of contents for such 
subtitle I is amended by adding the following new item at the 
end thereof:

``Sec. 9011. Use of funds for release prevention and compliance''.

SEC. 1527. DELIVERY PROHIBITION.

    (a) In General.--Subtitle I of the Solid Waste Disposal Act 
(42 U.S.C. 6991 et seq.) is amended by adding at the end the 
following:

``SEC. 9012. DELIVERY PROHIBITION.

    ``(a) Requirements.--
            ``(1) Prohibition of delivery or deposit.--
        Beginning 2 years after the date of enactment of this 
        section, it shall be unlawful to deliver to, deposit 
        into, or accept a regulated substance into an 
        underground storage tank at a facility which has been 
        identified by the Administrator or a State implementing 
        agency to be ineligible for such delivery, deposit, or 
        acceptance.
            ``(2) Guidance.--Within 1 year after the date of 
        enactment of this section, the Administrator shall, in 
        consultation with the States, underground storage tank 
        owners, and product delivery industries, publish 
        guidelines detailing the specific processes and 
        procedures they will use to implement the provisions of 
        this section. The processes and procedures include, at 
        a minimum--
                    ``(A) the criteria for determining which 
                underground storage tank facilities are 
                ineligible for delivery, deposit, or acceptance 
                of a regulated substance;
                    ``(B) the mechanisms for identifying which 
                facilities are ineligible for delivery, 
                deposit, or acceptance of a regulated substance 
                to the underground storage tank owning and fuel 
                delivery industries;
                    ``(C) the process for reclassifying 
                ineligible facilities as eligible for delivery, 
                deposit, or acceptance of a regulated 
                substance;
                    ``(D) one or more processes for providing 
                adequate notice to underground storage tank 
                owners and operators and supplier industries 
                that an underground storage tank has been 
                determined to be ineligible for delivery, 
                deposit, or acceptance or a regulated 
                substance; and
                    ``(E) a delineation of, or a process for 
                determining, the specified geographic areas 
                subject to paragraph (4).
            ``(3) Compliance.--States that receive funding 
        under this subtitle shall, at a minimum, comply with 
        the processes and procedures published under paragraph 
        (2).
            ``(4) Consideration.--
                    ``(A) Rural and remote areas.--Subject to 
                subparagraph (B), the Administrator or a State 
                may consider not treating an underground 
                storage tank as ineligible for delivery, 
                deposit or acceptance of a regulated substance 
                if such treatment would jeopardize the 
                availability of, or access to, fuel in any 
                rural and remote areas unless an urgent threat 
                to public health, as determined by the 
                Administrator, exists.
                    ``(B) Applicability.--Subparagraph (A) 
                shall apply only during the 180-day period 
                following the date of a determination by the 
                Administrator or the appropriate State under 
                subparagraph (A).
    ``(b) Effect on State Authority.--Nothing in this section 
shall affect or preempt the authority of a State to prohibit 
the delivery, deposit, or acceptance of a regulated substance 
to an underground storage tank.
    ``(c) Defense to Violation.--A person shall not be in 
violation of subsection (a)(1) if the person has not been 
provided with notice pursuant to subsection (a)(2)(D) of the 
ineligibility of a facility for delivery, deposit, or 
acceptance of a regulated substance as determined by the 
Administrator or a State, as appropriate, under this 
section.''.
    (b) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C. 
6991e(d)(2)) is amended as follows:
            (1) By adding the following new subparagraph after 
        subparagraph (D):
            ``(E) the delivery prohibition requirement 
        established by section 9012,''.
            (2) By adding the following new sentence at the end 
        thereof: ``Any person making or accepting a delivery or 
        deposit of a regulated substance to an underground 
        storage tank at an ineligible facility in violation of 
        section 9012 shall also be subject to the same civil 
        penalty for each day of such violation.''.
    (c) Table of Contents.--The table of contents for such 
subtitle I is amended by adding the following new item at the 
end thereof:

``Sec. 9012. Delivery prohibition''.

SEC. 1528. FEDERAL FACILITIES.

    Section 9007 of the Solid Waste Disposal Act (42 U.S.C. 
6991f) is amended to read as follows:

``SEC. 9007. FEDERAL FACILITIES.

    ``(a) In General.--Each department, agency, and 
instrumentality of the executive, legislative, and judicial 
branches of the Federal Government (1) having jurisdiction over 
any underground storage tank or underground storage tank 
system, or (2) engaged in any activity resulting, or which may 
result, in the installation, operation, management, or closure 
of any underground storage tank, release response activities 
related thereto, or in the delivery, acceptance, or deposit of 
any regulated substance to an underground storage tank or 
underground storage tank system shall be subject to, and comply 
with, all Federal, State, interstate, and local requirements, 
both substantive and procedural (including any requirement for 
permits or reporting or any provisions for injunctive relief 
and such sanctions as may be imposed by a court to enforce such 
relief), respecting underground storage tanks in the same 
manner, and to the same extent, as any person is subject to 
such requirements, including the payment of reasonable service 
charges. The Federal, State, interstate, and local substantive 
and procedural requirements referred to in this subsection 
include, but are not limited to, all administrative orders and 
all civil and administrative penalties and fines, regardless of 
whether such penalties or fines are punitive or coercive in 
nature or are imposed for isolated, intermittent, or continuing 
violations. The United States hereby expressly waives any 
immunity otherwise applicable to the United States with respect 
to any such substantive or procedural requirement (including, 
but not limited to, any injunctive relief, administrative order 
or civil or administrative penalty or fine referred to in the 
preceding sentence, or reasonable service charge). The 
reasonable service charges referred to in this subsection 
include, but are not limited to, fees or charges assessed in 
connection with the processing and issuance of permits, renewal 
of permits, amendments to permits, review of plans, studies, 
and other documents, and inspection and monitoring of 
facilities, as well as any other nondiscriminatory charges that 
are assessed in connection with a Federal, State, interstate, 
or local underground storage tank regulatory program. Neither 
the United States, nor any agent, employee, or officer thereof, 
shall be immune or exempt from any process or sanction of any 
State or Federal Court with respect to the enforcement of any 
such injunctive relief. No agent, employee, or officer of the 
United States shall be personally liable for any civil penalty 
under any Federal, State, interstate, or local law concerning 
underground storage tanks with respect to any act or omission 
within the scope of the official duties of the agent, employee, 
or officer. An agent, employee, or officer of the United States 
shall be subject to any criminal sanction (including, but not 
limited to, any fine or imprisonment) under any Federal or 
State law concerning underground storage tanks, but no 
department, agency, or instrumentality of the executive, 
legislative, or judicial branch of the Federal Government shall 
be subject to any such sanction. The President may exempt any 
underground storage tank of any department, agency, or 
instrumentality in the executive branch from compliance with 
such a requirement if he determines it to be in the paramount 
interest of the United States to do so. No such exemption shall 
be granted due to lack of appropriation unless the President 
shall have specifically requested such appropriation as a part 
of the budgetary process and the Congress shall have failed to 
make available such requested appropriation. Any exemption 
shall be for a period not in excess of one year, but additional 
exemptions may be granted for periods not to exceed one year 
upon the President's making a new determination. The President 
shall report each January to the Congress all exemptions from 
the requirements of this section granted during the preceding 
calendar year, together with his reason for granting each such 
exemption.
    ``(b) Review of and Report on Federal Underground Storage 
Tanks.--
            ``(1) Review.--Not later than 12 months after the 
        date of enactment of the Underground Storage Tank 
        Compliance Act, each Federal agency that owns or 
        operates 1 or more underground storage tanks, or that 
        manages land on which 1 or more underground storage 
        tanks are located, shall submit to the Administrator, 
        the Committee on Energy and Commerce of the United 
        States House of Representatives, and the Committee on 
        the Environment and Public Works of the United States 
        Senate a compliance strategy report that--
                    ``(A) lists the location and owner of each 
                underground storage tank described in this 
                paragraph;
                    ``(B) lists all tanks that are not in 
                compliance with this subtitle that are owned or 
                operated by the Federal agency;
                    ``(C) specifies the date of the last 
                inspection by a State or Federal inspector of 
                each underground storage tank owned or operated 
                by the agency;
                    ``(D) lists each violation of this subtitle 
                respecting any underground storage tank owned 
                or operated by the agency;
                    ``(E) describes the operator training that 
                has been provided to the operator and other 
                persons having primary daily on-site management 
                responsibility for the operation and 
                maintenance of underground storage tanks owned 
                or operated by the agency; and
                    ``(F) describes the actions that have been 
                and will be taken to ensure compliance for each 
                underground storage tank identified under 
                subparagraph (B).
            ``(2) Not a safe harbor.--This subsection does not 
        relieve any person from any obligation or requirement 
        under this subtitle.''.

SEC. 1529. TANKS ON TRIBAL LANDS.

    (a) In General.--Subtitle I of the Solid Waste Disposal Act 
(42 U.S.C. 6991 et seq.) is amended by adding the following at 
the end thereof:

``SEC. 9013. TANKS ON TRIBAL LANDS.

    ``(a) Strategy.--The Administrator, in coordination with 
Indian tribes, shall, not later than 1 year after the date of 
enactment of this section, develop and implement a strategy--
            ``(1) giving priority to releases that present the 
        greatest threat to human health or the environment, to 
        take necessary corrective action in response to 
        releases from leaking underground storage tanks located 
        wholly within the boundaries of--
                    ``(A) an Indian reservation; or
                    ``(B) any other area under the jurisdiction 
                of an Indian tribe; and
            ``(2) to implement and enforce requirements 
        concerning underground storage tanks located wholly 
        within the boundaries of--
                    ``(A) an Indian reservation; or
                    ``(B) any other area under the jurisdiction 
                of an Indian tribe.
    ``(b) Report.--Not later than 2 years after the date of 
enactment of this section, the Administrator shall submit to 
Congress a report that summarizes the status of implementation 
and enforcement of this subtitle in areas located wholly 
within--
            ``(1) the boundaries of Indian reservations; and
            ``(2) any other areas under the jurisdiction of an 
        Indian tribe.
The Administrator shall make the report under this subsection 
available to the public.
    ``(c) Not a Safe Harbor.--This section does not relieve any 
person from any obligation or requirement under this subtitle.
    ``(d) State Authority.--Nothing in this section applies to 
any underground storage tank that is located in an area under 
the jurisdiction of a State, or that is subject to regulation 
by a State, as of the date of enactment of this section.''.
    (b) Table of Contents.--The table of contents for such 
subtitle I is amended by adding the following new item at the 
end thereof:

``Sec. 9013. Tanks on Tribal lands''.

SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUNDWATER.

    (a) In General.--Section 9003 of the Solid Waste Disposal 
Act (42 U.S.C. 6991b) is amended by adding the following new 
subsection at the end:
    ``(i) Additional Measures to Protect Groundwater From 
Contamination.--The Administrator shall require each State that 
receives funding under this subtitle to require one of the 
following:
            ``(1) Tank and piping secondary containment.--(A) 
        Each new underground storage tank, or piping connected 
        to any such new tank, installed after the effective 
        date of this subsection, or any existing underground 
        storage tank, or existing piping connected to such 
        existing tank, that is replaced after the effective 
        date of this subsection, shall be secondarily contained 
        and monitored for leaks if the new or replaced 
        underground storage tank or piping is within 1,000 feet 
        of any existing community water system or any existing 
        potable drinking water well.
            ``(B) In the case of a new underground storage tank 
        system consisting of one or more underground storage 
        tanks and connected by piping, subparagraph (A) shall 
        apply to all underground storage tanks and connected 
        pipes comprising such system.
            ``(C) In the case of a replacement of an existing 
        underground storage tank or existing piping connected 
        to the underground storage tank, subparagraph (A) shall 
        apply only to the specific underground storage tank or 
        piping being replaced, not to other underground storage 
        tanks and connected pipes comprising such system.
            ``(D) Each installation of a new motor fuel 
        dispenser system, after the effective date of this 
        subsection, shall include under-dispenser spill 
        containment if the new dispenser is within 1,000 feet 
        of any existing community water system or any existing 
        potable drinking water well.
            ``(E) This paragraph shall not apply to repairs to 
        an underground storage tank, piping, or dispenser that 
        are meant to restore a tank, pipe, or dispenser to 
        operating condition.
            ``(F) As used in this subsection:
                    ``(i) The term `secondarily contained' 
                means a release detection and prevention system 
                that meets the requirements of 40 CFR 
                280.43(g), but shall not include under-
                dispenser spill containment or control systems.
                    ``(ii) The term `underground storage tank' 
                has the meaning given to it in section 9001, 
                except that such term does not include tank 
                combinations or more than a single underground 
                pipe connected to a tank.
                    ``(iii) The term `installation of a new 
                motor fuel dispenser system' means the 
                installation of a new motor fuel dispenser and 
                the equipment necessary to connect the 
                dispenser to the underground storage tank 
                system, but does not mean the installation of a 
                motor fuel dispenser installed separately from 
                the equipment need to connect the dispenser to 
                the underground storage tank system.
            ``(2) Evidence of financial responsibility and 
        certification.--
                    ``(A) Manufacturer and installer financial 
                responsibility.--A person that manufactures an 
                underground storage tank or piping for an 
                underground storage tank system or that 
                installs an underground storage tank system is 
                required to maintain evidence of financial 
                responsibility under section 9003(d) in order 
                to provide for the costs of corrective actions 
                directly related to releases caused by improper 
                manufacture or installation unless the person 
                can demonstrate themselves to be already 
                covered as an owner or operator of an 
                underground storage tank under section 9003.
                    ``(B) Installer certification.--The 
                Administrator and each State that receives 
                funding under this subtitle, as appropriate, 
                shall require that a person that installs an 
                underground storage tank system is--
                            ``(i) certified or licensed by the 
                        tank and piping manufacturer;
                            ``(ii) certified or licensed by the 
                        Administrator or a State, as 
                        appropriate;
                            ``(iii) has their underground 
                        storage tank system installation 
                        certified by a registered professional 
                        engineer with education and experience 
                        in underground storage tank system 
                        installation;
                            ``(iv) has had their installation 
                        of the underground storage tank 
                        inspected andapproved by the 
Administrator or the State, as appropriate;
                            ``(v) compliant with a code of 
                        practice developed by a nationally 
                        recognized association or independent 
                        testing laboratory and in accordance 
                        with the manufacturer's instructions; 
                        or
                            ``(vi) compliant with another 
                        method that is determined by the 
                        Administrator or a State, as 
                        appropriate, to be no less protective 
                        of human health and the environment.
                    ``(C) Savings clause.--Nothing in 
                subparagraph (A) alters or affects the 
                liability of any owner or operator of an 
                underground storage tank.''.
    (b) Effective Date.--This subsection shall take effect 18 
months after the date of enactment of this subsection.
    (c) Promulgation of Regulations or Guidelines.--The 
Administrator shall issue regulations or guidelines 
implementing the requirements of this subsection, including 
guidance to differentiate between the terms ``repair'' and 
``replace'' for the purposes of section 9003(i)(1) of the Solid 
Waste Disposal Act.
    (d) Penalties.--Section 9006(d)(2) of such Act (42 U.S.C. 
6991e(d)(2)) is amended as follows:
            (1) By striking ``or'' at the end of subparagraph 
        (B).
            (2) By inserting ``; or'' at the end of 
        subparagraph (C).
            (3) By adding the following new subparagraph after 
        subparagraph (C):
                    ``(D) the requirements established in 
                section 9003(i),''.

SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Subtitle I of the Solid Waste Disposal Act 
(42 U.S.C. 6991 et seq.) is amended by adding at the end the 
following:

``SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the 
Administrator the following amounts:
            ``(1) To carry out subtitle I (except sections 
        9003(h), 9005(c), 9011 and 9012) $50,000,000 for each 
        of fiscal years 2005 through 2009.
            ``(2) From the Trust Fund, notwithstanding section 
        9508(c)(1) of the Internal Revenue Code of 1986:
                    ``(A) to carry out section 9003(h) (except 
                section 9003(h)(12)) $200,000,000 for each of 
                fiscal years 2005 through 2009;
                    ``(B) to carry out section 9003(h)(12), 
                $200,000,000 for each of fiscal years 2005 
                through 2009;
                    ``(C) to carry out sections 9003(i), 
                9004(f), and 9005(c) $100,000,000 for each of 
                fiscal years 2005 through 2009; and
                    ``(D) to carry out sections 9010, 9011, 
                9012, and 9013 $55,000,000 for each of fiscal 
                years 2005 through 2009.''.
    (b) Table of Contents.--The table of contents for such 
subtitle I is amended by adding the following new item at the 
end thereof:

``Sec. 9014. Authorization of appropriations''.

SEC. 1532. CONFORMING AMENDMENTS.

    (a) In General.--Section 9001 of the Solid Waste Disposal 
Act (42 U.S.C. 6991) is amended as follows:
            (1) By striking ``For the purposes of this 
        subtitle--'' and inserting ``In this subtitle:''.
            (2) By redesignating paragraphs (1), (2), (3), (4), 
        (5), (6), (7), and (8) as paragraphs (10), (7), (4), 
        (3), (8), (5), (2), and (6), respectively.
            (3) By inserting before paragraph (2) (as 
        redesignated by paragraph (2) of this subsection) the 
        following:
            ``(1) Indian tribe.--
                    ``(A) In general.--The term `Indian tribe' 
                means any Indian tribe, band, nation, or other 
                organized group or community that is recognized 
                as being eligible for special programs and 
                services provided by the United States to 
                Indians because of their status as Indians.
                    ``(B) Inclusions.--The term `Indian tribe' 
                includes an Alaska Native village, as defined 
                in or established under the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1601 et seq.); 
                and''.
            (4) By inserting after paragraph (8) (as 
        redesignated by paragraph (2) of this subsection) the 
        following:
            ``(9) Trust fund.--The term `Trust Fund' means the 
        Leaking Underground Storage Tank Trust Fund established 
        by section 9508 of the Internal Revenue Code of 
        1986.''.
    (b) Conforming Amendments.--The Solid Waste Disposal Act 
(42 U.S.C. 6901 and following) is amended as follows:
            (1) Section 9003(f) (42 U.S.C. 6991b(f)) is 
        amended--
                    (A) in paragraph (1), by striking 
                ``9001(2)(B)'' and inserting ``9001(7)(B)''; 
                and
                    (B) in paragraphs (2) and (3), by striking 
                ``9001(2)(A)'' each place it appears and 
                inserting ``9001(7)(A)''.
            (2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended 
        in paragraphs (1), (2)(C), (7)(A), and (11) by striking 
        ``Leaking Underground Storage Tank Trust Fund'' each 
        place it appears and inserting ``Trust Fund''.
            (3) Section 9009 (42 U.S.C. 6991h) is amended--
                    (A) in subsection (a), by striking 
                ``9001(2)(B)'' and inserting ``9001(7)(B)''; 
                and
                    (B) in subsection (d), by striking 
                ``section 9001(1) (A) and (B)'' and inserting 
                ``subparagraphs (A) and (B) of section 
                9001(10)''.

SEC. 1533. TECHNICAL AMENDMENTS.

    The Solid Waste Disposal Act is amended as follows:
            (1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is 
        amended by striking ``sustances'' and inserting 
        ``substances''.
            (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is 
        amended by striking ``subsection (c) and (d) of this 
        section'' and inserting ``subsections (c) and (d)''.
            (3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended 
        by striking ``in 9001(2) (A) or (B) or both'' and 
        inserting ``in subparagraph (A) or (B) of section 
        9001(7)''.
            (4) Section 9005 (42 U.S.C. 6991d) is amended--
                    (A) in subsection (a), by striking ``study 
                taking'' and inserting ``study, taking'';
                    (B) in subsection (b)(1), by striking 
                ``relevent'' and inserting ``relevant''; and
                    (C) in subsection (b)(4), by striking 
                ``Evironmental'' and inserting 
                ``Environmental''.

                       Subtitle C--Boutique Fuels

SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.

    (a) Temporary Waivers During Supply Emergencies.--Section 
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is 
amended by inserting ``(i)'' after ``(C)'' and by adding the 
following new clauses at the end thereof:
    ``(ii) The Administrator may temporarily waive a control or 
prohibition respecting the use of a fuel or fuel additive 
required or regulated by the Administrator pursuant to 
subsection (c), (h), (i), (k), or (m) of this section or 
prescribed in an applicable implementation plan under section 
110 approved by the Administrator under clause (i) of this 
subparagraph if, after consultation with, and concurrence by, 
the Secretary of Energy, the Administrator determines that--
            ``(I) extreme and unusual fuel or fuel additive 
        supply circumstances exist in a State or region of the 
        Nation which prevent the distribution of an adequate 
        supply of the fuel or fuel additive to consumers;
            ``(II) such extreme and unusual fuel and fuel 
        additive supply circumstances are the result of a 
        natural disaster, an Act of God, a pipeline or refinery 
        equipment failure, or another event that could not 
        reasonably have been foreseen or prevented and not the 
        lack of prudent planning on the part of the suppliers 
        of the fuel or fuel additive to such State or region; 
        and
            ``(III) it is in the public interest to grant the 
        waiver (for example, when a waiver is necessary to meet 
        projected temporary shortfalls in the supply of the 
        fuel or fuel additive in a State or region of the 
        Nation which cannot otherwise be compensated for).
    ``(iii) If the Administrator makes the determinations 
required under clause (ii), such a temporary extreme and 
unusual fuel and fuel additive supply circumstances waiver 
shall be permitted only if--
            ``(I) the waiver applies to the smallest geographic 
        area necessary to address the extreme and unusual fuel 
        and fuel additive supply circumstances;
            ``(II) the waiver is effective for a period of 20 
        calendar days or, if the Administrator determines that 
        a shorter waiver period is adequate, for the shortest 
        practicable time period necessary to permit the 
        correction of the extreme and unusual fuel and fuel 
        additive supply circumstances and to mitigate impact on 
        air quality;
            ``(III) the waiver permits a transitional period, 
        the exact duration of which shall be determined by the 
        Administrator (but which shall be for the shortest 
        practicable period), after the termination of the 
        temporary waiver to permit wholesalers and retailers to 
        blend down their wholesale and retail inventory;
            ``(IV) the waiver applies to all persons in the 
        motor fuel distribution system; and
            ``(V) the Administrator has given public notice to 
        all parties in the motor fuel distribution system, and 
        local and State regulators, in the State or region to 
        be covered by the waiver.
The term `motor fuel distribution system' as used in this 
clause shall be defined by the Administrator through 
rulemaking.
    ``(iv) Within 180 days of the date of enactment of this 
clause, the Administrator shall promulgate regulations to 
implement clauses (ii) and (iii).
    ``(v) Nothing in this subparagraph shall--
            ``(I) limit or otherwise affect the application of 
        any other waiver authority of the Administrator 
        pursuant to this section or pursuant to a regulation 
        promulgated pursuant to this section; and
            ``(II) subject any State or person to an 
        enforcement action, penalties, or liability solely 
        arising from actions taken pursuant to the issuance of 
        a waiver under this subparagraph.''.
    (b) Limit on Number of Boutique Fuels.--Section 
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)), as 
amended by subsection (a), is further amended by adding at the 
end the following:
    ``(v)(I) The Administrator shall have no authority, when 
considering a State implementation plan or a State 
implementation plan revision, to approve under this paragraph 
any fuel included in such plan or revision if the effect of 
such approval increases the total number of fuels approved 
under this paragraph as of September 1, 2004, in all State 
implementation plans.
    ``(II) The Administrator, in consultation with the 
Secretary of Energy, shall determine the total number of fuels 
approved under this paragraph as of September 1, 2004, in all 
State implementation plans and shall publish a list of such 
fuels, including the states and Petroleum Administration for 
Defense District in which they are used, in the Federal 
Register for public review and comment no later than 90 days 
after enactment.
    ``(III) The Administrator shall remove a fuel from the list 
published under subclause (II) if a fuel ceases to be included 
in a State implementation plan or if a fuel in a State 
implementation plan is identical to a Federal fuel formulation 
implemented by the Administrator, but the Administrator shall 
not reduce the total number of fuels authorized under the list 
published under subclause (II).
    ``(IV) Subclause (I) shall not limit the Administrator's 
authority to approve a control or prohibition respecting any 
new fuel under this paragraph in a State implementation plan or 
revision to a State implementation plan if such new fuel:
            ``(aa) completely replaces a fuel on the list 
        published under subclause (II); or
            ``(bb) does not increase the total number of fuels 
        on the list published under subclause (II) as of 
        September 1, 2004.
In the event that the total number of fuels on the list 
published under subclause (II) at the time of the 
Administrator's consideration of a control or prohibition 
respecting a new fuel is lower than the total number of fuels 
on such list as of September 1, 2004, the Administrator may 
approve a control or prohibition respecting a new fuel under 
this subclause if the Administrator, after consultation with 
the Secretary of Energy, publishes in the Federal Register 
after notice and comment a finding that, in the Administrator's 
judgment, such control or prohibition respecting a new fuel 
will not cause fuel supply or distribution interruptions or 
have a significant adverse impact on fuel producibility in the 
affected area or contiguous areas.
    ``(V) The Administrator shall have no authority under this 
paragraph, when considering any particular State's 
implementation plan or a revision to that State's 
implementation plan, to approve any fuel unless that fuel was, 
as of the date of such consideration, approved in at least one 
State implementation plan in the applicable Petroleum 
Administration for Defense District. However, the Administrator 
may approve as part of a State implementation plan or State 
implementation plan revision a fuel with a summertime Reid 
Vapor Pressure of 7.0 psi. In no event shall such approval by 
the Administrator cause an increase in the total number of 
fuels on the list published under subclause (II).
    ``(VI) Nothing in this clause shall be construed to have 
any effect regarding any available authority of States to 
require the use of any fuel additive registered in accordance 
with subsection (b), including any fuel additive registered in 
accordance with subsection (b) after the enactment of this 
subclause.''.
    (c) Study and Report to Congress on Boutique Fuels.--
            (1) Joint study.--The Administrator of the 
        Environmental Protection Agency and the Secretary shall 
        undertake a study of the effects on air quality, on the 
        number of fuel blends, on fuel availability, on fuel 
        fungibility, and on fuel costs of the State plan 
        provisions adopted pursuant to section 211(c)(4)(C) of 
        the Clean Air Act (42 U.S.C. 7545(c)(4)(C)).
            (2) Focus of study.--The primary focus of the study 
        required under paragraph (1) shall be to determine how 
        to develop a Federal fuels system that maximizes motor 
        fuel fungibility and supply, addresses air quality 
        requirements, and reduces motor fuel price volatility 
        including that which has resulted from the 
        proliferation of boutique fuels, and to recommend to 
        Congress such legislative changes as are necessary to 
        implement such a system. The study should include the 
        impacts on overall energy supply, distribution, and use 
        as a result of the legislative changes recommended.
            (3) Conduct of study.--In carrying out their joint 
        duties under this section, the Administrator and the 
        Secretary shall use sound science and objective science 
        practices, shall consider the best available science, 
        shall use data collected by accepted means and shall 
        consider and include a description of the weight of the 
        scientific evidence. The Administrator and the 
        Secretary shall coordinate the study required by this 
        section with other studies required by the act.
            (4) Responsibility of administrator.--In carrying 
        out the study required by this section, the 
        Administrator shall coordinate obtaining comments from 
        affected parties interested in the air quality impact 
        assessment portion of the study.
            (5) Responsibility of secretary.--In carrying out 
        the study required by this section, the Secretary shall 
        coordinate obtaining comments from affected parties 
        interested in the fuel availability, number of fuel 
        blends, fuel fungibility and fuel costs portion of the 
        study.
            (6) Report to congress.--The Administrator and the 
        Secretary jointly shall submit the results of the study 
        required by this section in a report to the Congress 
        not later than 12 months after the date of the 
        enactment of this Act, together with any recommended 
        regulatory and legislative changes. Such report shall 
        be submitted to the Committee on Energy and Commerce of 
        the United States House of Representatives and the 
        Committees on Energy and Natural Resources and on 
        Environment and Public Works of the United States 
        Senate.
            (7) Authorization of appropriations.--There is 
        authorized to be appropriated jointly to the 
        Administrator and the Secretary $500,000 for the 
        completion of the study required under this subsection.
    (d) Definitions.--In this section:
            (1) The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) The term ``fuel'' means gasoline, diesel fuel, 
        and any other liquid petroleum product commercially 
        known as gasoline and diesel fuel for use in highway 
        and nonroad motor vehicles.
            (3) The term ``a control or prohibition respecting 
        a new fuel'' means a control or prohibition on the 
        formulation, composition, or emissions characteristics 
        of a fuel that would require the increase or decrease 
        of a constituent in gasoline or diesel fuel.

                       TITLE XVI--CLIMATE CHANGE

       Subtitle A--National Climate Change Technology Deployment

SEC. 1601. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY STRATEGIES.

    Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 13381 
et seq.) is amended by adding at the end the following:

``SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING STRATEGIES.

    ``(a) Definitions.--In this section:
            ``(1) Advisory committee.--The term `Advisory 
        Committee' means the Climate Change Technology Advisory 
        Committee established under subsection (f)(1).
            ``(2) Carbon sequestration.--The term `carbon 
        sequestration' means the capture of carbon dioxide 
        through terrestrial, geological, biological, or other 
        means, which prevents the release of carbon dioxide 
        into the atmosphere.
            ``(3) Committee.--The term `Committee' means the 
        Committee on Climate Change Technology established 
        under subsection (b)(1).
            ``(4) Developing country.--The term `developing 
        country' has the meaning given the term in section 
        1608(m).
            ``(5) Greenhouse gas.--The term `greenhouse gas' 
        means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; and
                    ``(F) sulfur hexafluoride.
            ``(6) Greenhouse gas intensity.--The term 
        `greenhouse gas intensity' means the ratio of 
        greenhouse gas emissions to economic output.
            ``(7) National laboratory.--The term `National 
        Laboratory' has the meaning given the term in section 
        3(3) of the Energy Policy Act of 2005.
    ``(b) Committee on Climate Change Technology.--
            ``(1) In general.--Not later than 180 days after 
        the date of enactment of this section, the President 
        shall establish a Committee on Climate Change 
        Technology to--
                    ``(A) integrate current Federal climate 
                reports; and
                    ``(B) coordinate Federal climate change 
                technology activities and programs carried out 
                in furtherance of the strategy developed under 
                subsection (c)(1).
            ``(2) Membership.--The Committee shall be composed 
        of at least 7 members, including--
                    ``(A) the Secretary, who shall chair the 
                Committee;
                    ``(B) the Secretary of Commerce;
                    ``(C) the Chairman of the Council on 
                Environmental Quality;
                    ``(D) the Secretary of Agriculture;
                    ``(E) the Administrator of the 
                Environmental Protection Agency;
                    ``(F) the Secretary of Transportation;
                    ``(G) the Director of the Office of Science 
                and Technology Policy; and
                    ``(H) other representatives as may be 
                determined by the President.
            ``(3) Staff.--The members of the Committee shall 
        provide such personnel as are necessary to enable the 
        Committee to perform its duties.
    ``(c) National Climate Change Technology Policy.--
            ``(1) In general.--Not later than 18 months after 
        the date of enactment of this section, the Committee 
        shall, based on applicable Federal climate reports, 
        submit to the Secretary and the President a national 
        strategy to promote the deployment and 
        commercialization of greenhouse gas intensity reducing 
        technologies and practices developed through research 
        and development programs conducted by the National 
        Laboratories, other Federal research facilities, 
        institutions of higher education, and the private 
        sector.
            ``(2) Updates.--The Committee shall--
                    ``(A) at the time of submission of the 
                strategy to the President under paragraph (1), 
                also make the strategy available to the public; 
                and
                    ``(B) update the strategy every 5 years, or 
                more frequently as the Committee determines to 
                be necessary.
    ``(d) Climate Change Technology Program.--Not later than 
180 days after the date on which the Committee is established 
under subsection (b)(1), the Secretary, in consultation with 
the Committee, shall establish within the Department of Energy 
the Climate Change Technology Program to--
            ``(1) assist the Committee in the interagency 
        coordination of climate change technology research, 
        development, demonstration, and deployment to reduce 
        greenhouse gas intensity; and
            ``(2) carry out the programs authorized under this 
        section.
    ``(e) Technology Inventory.--
            ``(1) In general.--The Secretary shall conduct and 
        make public an inventory and evaluation of greenhouse 
        gas intensity reducing technologies that have been 
        developed, or are under development, by the National 
        Laboratories, other Federal research facilities, 
        institutions of higher education, and the private 
        sector to determine which technologies are suitable for 
        commercialization and deployment.
            ``(2) Report.--Not later than 180 days after the 
        completion of the inventory under paragraph (1), the 
        Secretary shall submit to Congress a report that 
        includes the results of the completed inventory and any 
        recommendations of the Secretary.
            ``(3) Use.--The Secretary shall use the results of 
        the inventory as guidance in the commercialization and 
        deployment of greenhouse gas intensity reducing 
        technologies.
            ``(4) Updated inventory.--The Secretary shall--
                    ``(A) periodically update the inventory 
                under paragraph (1), including when determined 
                necessary by the Committee; and
                    ``(B) make the updated inventory available 
                to the public.
    ``(f) Climate Change Technology Advisory Committee.--
            ``(1) In general.--The Secretary, in consultation 
        with the Committee, may establish under section 624 of 
        the Department of Energy Organization Act (42 U.S.C. 
        7234) a Climate Change Technology Advisory Committee to 
        identify statutory, regulatory, economic, and other 
        barriers to the commercialization and deployment of 
        greenhouse gas intensity reducing technologies and 
        practices in the United States.
            ``(2) Composition.--The Advisory Committee shall be 
        composed of the following members, to be appointed by 
        the Secretary, in consultation with the Committee:
                    ``(A) 1 representative shall be appointed 
                from each National Laboratory.
                    ``(B) 3 members shall be representatives of 
                energy-producing trade organizations.
                    ``(C) 3 members shall represent energy-
                intensive trade organizations.
                    ``(D) 3 members shall represent groups that 
                represent end-use energy and other consumers.
                    ``(E) 3 members shall be employees of the 
                Federal Government who are experts in energy 
                technology, intellectual property, and tax.
                    ``(F) 3 members shall be representatives of 
                institutions of higher education with expertise 
                in energy technology development that are 
                recommended by the National Academy of 
                Engineering.
            ``(3) Report.--Not later than 1 year after the date 
        of enactment of this section and annually thereafter, 
        the Advisory Committee shall submit to the Committee a 
        report that describes--
                    ``(A) the findings of the Advisory 
                Committee; and
                    ``(B) any recommendations of the Advisory 
                Committee for the removal or reduction of 
                barriers to commercialization, deployment, and 
                increasing the use of greenhouse gas intensity 
                reducing technologies and practices.
    ``(g) Greenhouse Gas Intensity Reducing Technology 
Deployment.--
            ``(1) In general.--Based on the strategy developed 
        under subsection (c)(1), the technology inventory 
        conducted under subsection (e)(1), the greenhouse gas 
        intensity reducing technology study report submitted 
        under subsection (e)(2), and reports under subsection 
        (f)(3), if any, the Committee shall develop 
        recommendations that would provide for the removal of 
        domestic barriers to the commercialization and 
        deployment of greenhouse gas intensity reducing 
        technologies and practices.
            ``(2) Requirements.--In developing the 
        recommendations under paragraph (1), the Committee 
        shall consider in the aggregate--
                    ``(A) the cost-effectiveness of the 
                technology;
                    ``(B) fiscal and regulatory barriers;
                    ``(C) statutory and other barriers; and
                    ``(D) intellectual property issues.
            ``(3) Demonstration projects.--In developing 
        recommendations under paragraph (1), the Committee may 
        identify the need for climate change technology 
        demonstration projects.
            ``(4) Report.--Not later than 18 months after the 
        date of enactment of this section, the Committee shall 
        submit to the President and Congress a report that--
                    ``(A) identifies, based on the report 
                submitted under subsection (f)(3), any barriers 
                to, and commercial risks associated with, the 
                deployment of greenhouse gas intensity reducing 
                technologies; and
                    ``(B) includes a plan for carrying out 
                demonstration projects.
            ``(5) Updates.--The Committee shall--
                    ``(A) at the time of submission of the 
                report to Congress under paragraph (4), also 
                make the report available to the public; and
                    ``(B) update the report every 5 years, or 
                more frequently as the Committee determines to 
                be necessary.
    ``(h) Procedures for Calculating, Monitoring, and Analyzing 
Greenhouse Gas Intensity.--The Secretary, in collaboration with 
the Committee and the National Institute of Standards and 
Technology, and after public notice and opportunity for 
comment, shall develop standards and best practices for 
calculating, monitoring, and analyzing greenhouse gas 
intensity.
    ``(i) Demonstration Projects.--
            ``(1) In general.--The Secretary shall, subject to 
        the availability of appropriations, support 
        demonstration projects that--
                    ``(A) increase the reduction of the 
                greenhouse gas intensity to levels below that 
                which would be achieved by technologies being 
                used in the United States as of the date of 
                enactment of this section;
                    ``(B) maximize the potential return on 
                Federal investment;
                    ``(C) demonstrate distinct roles in public-
                private partnerships;
                    ``(D) produce a large-scale reduction of 
                greenhouse gas intensity if commercialization 
                occurred; and
                    ``(E) support a diversified portfolio to 
                mitigate the uncertainty associated with a 
                single technology.
            ``(2) Cost sharing.--In supporting a demonstration 
        project under this subsection, the Secretary shall 
        require cost-sharing in accordance with section 988 of 
        the Energy Policy Act of 2005.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this subsection.
    ``(j) Cooperative Research and Development Agreements.--In 
carrying out greenhouse gas intensity reduction research and 
technology deployment activities under this subtitle, the 
Secretary may enter into cooperative research and development 
agreements under section 12 of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3710a).''.

    Subtitle B--Climate Change Technology Deployment in Developing 
                               Countries

SEC. 1611. CLIMATE CHANGE TECHNOLOGY DEPLOYMENT IN DEVELOPING 
                    COUNTRIES.

    The Global Environmental Protection Assistance Act of 1989 
(Public Law 101-240; 103 Stat. 2521) is amending by adding at 
the end the following:

        ``PART C--TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES

``SEC. 731. DEFINITIONS.

    ``In this part:
            ``(1) Carbon sequestration.--The term `carbon 
        sequestration' means the capture of carbon dioxide 
        through terrestrial, geological, biological, or other 
        means, which prevents the release of carbon dioxide 
        into the atmosphere.
            ``(2) Greenhouse gas.--The term `greenhouse gas' 
        means carbon dioxide, methane, nitrous oxide, 
        hydrofluorocarbons, perfluorocarbons, and sulfur 
        hexafluoride.
            ``(3) Greenhouse gas intensity.--The term 
        `greenhouse gas intensity' means the ratio of 
        greenhouse gas emissions to economic output.

``SEC. 732. REDUCTION OF GREENHOUSE GAS INTENSITY.

    ``(a) Lead Agency.--
            ``(1) In general.--The Department of State shall 
        act as the lead agency for integrating into United 
        States foreign policy the goal of reducing greenhouse 
        gas intensity in developing countries.
            ``(2) Reports.--
                    ``(A) Initial report.--Not later than 180 
                days after the date of enactment of this part, 
                the Secretary of State shall submit to the 
                appropriate authorizing and appropriating 
                committees of Congress an initial report, based 
                on the most recent information available to the 
                Secretary from reliable public sources, that 
                identifies the 25 developing countries that are 
                the largest greenhouse gas emitters, including 
                for each country--
                            ``(i) an estimate of the quantity 
                        and types of energy used;
                            ``(ii) an estimate of the 
                        greenhouse gas intensity of the energy, 
                        manufacturing, agricultural, and 
                        transportation sectors;
                            ``(iii) a description the progress 
                        of any significant projects undertaken 
                        to reduce greenhouse gas intensity;
                            ``(iv) a description of the 
                        potential for undertaking projects to 
                        reduce greenhouse gas intensity;
                            ``(v) a description of any 
                        obstacles to the reduction of 
                        greenhouse gas intensity; and
                            ``(vi) a description of the best 
                        practices learned by the Agency for 
                        International Development from 
                        conducting previous pilot and 
                        demonstration projects to reduce 
                        greenhouse gas intensity.
                    ``(B) Update.--Not later than 18 months 
                after the date on which the initial report is 
                submitted under subparagraph (A), the Secretary 
                shall submit to the appropriate authorizing and 
                appropriating committees of Congress, based on 
                the best information available to the 
                Secretary, an update of the information 
                provided in the initial report.
                    ``(C) Use.--
                            ``(i) Initial report.--The 
                        Secretary of State shall use the 
                        initial report submitted under 
                        subparagraph (A) to establish baselines 
                        for the developing countries identified 
                        in the report with respect to the 
                        information provided under clauses (i) 
                        and (ii) of that subparagraph.
                            ``(ii) Annual reports.--The 
                        Secretary of State shall use the annual 
                        reports prepared under subparagraph (B) 
                        and any other information available to 
                        the Secretary to track the progress of 
                        the developing countries with respect 
                        to reducing greenhouse gas intensity.
    ``(b) Projects.--The Secretary of State, in coordination 
with Administrator of the United States Agency for 
International Development, shall (directly or through 
agreements with the World Bank, the International Monetary 
Fund, the Overseas Private Investment Corporation, and other 
development institutions) provide assistance to developing 
countries specifically for projects to reduce greenhouse gas 
intensity, including projects to--
            ``(1) leverage, through bilateral agreements, funds 
        for reduction of greenhouse gas intensity;
            ``(2) increase private investment in projects and 
        activities to reduce greenhouse gas intensity; and
            ``(3) expedite the deployment of technology to 
        reduce greenhouse gas intensity.
    ``(c) Focus.--In providing assistance under subsection (b), 
the Secretary of State shall focus on--
            ``(1) promoting the rule of law, property rights, 
        contract protection, and economic freedom; and
            ``(2) increasing capacity, infrastructure, and 
        training.
    ``(d) Priority.--In providing assistance under subsection 
(b), the Secretary of State shall give priority to projects in 
the 25 developing countries identified in the report submitted 
under subsection (a)(2)(A).

``SEC. 733. TECHNOLOGY INVENTORY FOR DEVELOPING COUNTRIES.

    ``(a) In General.--The Secretary of Energy, in coordination 
with the Secretary of State and the Secretary of Commerce, 
shall conduct an inventory of greenhouse gas intensity reducing 
technologies that are developed, or under development in the 
United States, to identify technologies that are suitable for 
transfer to, deployment in, and commercialization in the 
developing countries identified in the report submitted under 
section 732(a)(2)(A).
    ``(b) Report.--Not later than 180 days after the completion 
of the inventory under subsection (a), the Secretary of State 
and the Secretary of Energy shall jointly submit to Congress a 
report that--
            ``(1) includes the results of the completed 
        inventory;
            ``(2) identifies obstacles to the transfer, 
        deployment, and commercialization of the inventoried 
        technologies;
            ``(3) includes results from previous Federal 
        reports related to the inventoried technologies; and
            ``(4) includes an analysis of market forces related 
        to the inventoried technologies.

``SEC. 734. TRADE-RELATED BARRIERS TO EXPORT OF GREENHOUSE GAS 
                    INTENSITY REDUCING TECHNOLOGIES.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this part, the United States Trade Representative 
shall (as appropriate and consistent with applicable bilateral, 
regional, and mutual trade agreements)--
            ``(1) identify trade-relations barriers maintained 
        by foreign countries to the export of greenhouse gas 
        intensity reducing technologies and practices from the 
        United States to the developing countries identified in 
        the report submitted under section 732(a)(2)(A); and
            ``(2) negotiate with foreign countries for the 
        removal of those barriers.
    ``(b) Annual Report.--Not later than 1 year after the date 
on which a report is submitted under subsection (a)(1) and 
annually thereafter, the United States Trade Representative 
shall submit to Congress a report that describes any progress 
made with respect to removing the barriers identified by the 
United States Trade Representative under subsection (a)(1).

``SEC. 735. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY EXPORT 
                    INITIATIVE.

    ``(a) In General.--There is established an interagency 
working group to carry out a Greenhouse Gas Intensity Reducing 
Technology Export Initiative to--
            ``(1) promote the export of greenhouse gas 
        intensity reducing technologies and practices from the 
        United States;
            ``(2) identify developing countries that should be 
        designated as priority countries for the purpose of 
        exporting greenhouse gas intensity reducing 
        technologies and practices, based on the report 
        submitted under section 732(a)(2)(A);
            ``(3) identify potential barriers to adoption of 
        exported greenhouse gas intensity reducing technologies 
        and practices based on the reports submitted under 
        section 734; and
            ``(4) identify previous efforts to export energy 
        technologies to learn best practices.
    ``(b) Composition.--The working group shall be composed 
of--
            ``(1) the Secretary of State, who shall act as the 
        head of the working group;
            ``(2) the Administrator of the United States Agency 
        for International Development;
            ``(3) the United States Trade Representative;
            ``(4) a designee of the Secretary of Energy;
            ``(5) a designee of the Secretary of Commerce; and
            ``(6) a designee of the Administrator of the 
        Environmental Protection Agency.
    ``(c) Performance Reviews and Reports.--Not later than 180 
days after the date of enactment of this part and each year 
thereafter, the interagency working group shall--
            ``(1) conduct a performance review of actions taken 
        and results achieved by the Federal Government 
        (including each of the agencies represented on the 
        interagency working group) to promote the export of 
        greenhouse gas intensity reducing technologies and 
        practices from the United States; and
            ``(2) submit to the appropriate authorizing and 
        appropriating committees of Congress a report that 
        describes the results of the performance reviews and 
        evaluates progress in promoting the export of 
        greenhouse gas intensity reducing technologies and 
        practices from the United States, including any 
        recommendations for increasing the export of the 
        technologies and practices.

``SEC. 736. TECHNOLOGY DEMONSTRATION PROJECTS.

    ``(a) In General.--The Secretary of State, in coordination 
with the Secretary of Energy and the Administrator of the 
United States Agency for International Development, shall 
promote the adoption of technologies and practices that reduce 
greenhouse gas intensity in developing countries in accordance 
with this section.
    ``(b) Demonstration Projects.--
            ``(1) In general.--The Secretaries and the 
        Administrator shall plan, coordinate, and carry out, or 
        provide assistance for the planning, coordination, or 
        carrying out of, demonstration projects under this 
        section in at least 10 eligible countries, as 
        determined by the Secretaries and the Administrator.
            ``(2) Eligibility.--A country shall be eligible for 
        assistance under this subsection if the Secretaries and 
        the Administrator determine that the country has 
        demonstrated a commitment to--
                    ``(A) just governance, including--
                            ``(i) promoting the rule of law;
                            ``(ii) respecting human and civil 
                        rights;
                            ``(iii) protecting private property 
                        rights; and
                            ``(iv) combating corruption; and
                    ``(B) economic freedom, including economic 
                policies that--
                            ``(i) encourage citizens and firms 
                        to participate in global trade and 
                        international capital markets;
                            ``(ii) promote private sector 
                        growth and the sustainable management 
                        of natural resources; and
                            ``(iii) strengthen market forces in 
                        the economy.
            ``(3) Selection.--In determining which eligible 
        countries to provide assistance to under paragraph (1), 
        the Secretaries and the Administrator shall consider--
                    ``(A) the opportunity to reduce greenhouse 
                gas intensity in the eligible country; and
                    ``(B) the opportunity to generate economic 
                growth in the eligible country.
            ``(4) Types of projects.--Demonstration projects 
        under this section may include--
                    ``(A) coal gasification, coal liquefaction, 
                and clean coal projects;
                    ``(B) carbon sequestration projects;
                    ``(C) cogeneration technology initiatives;
                    ``(D) renewable projects; and
                    ``(E) lower emission transportation.

``SEC. 737. FELLOWSHIP AND EXCHANGE PROGRAMS.

    ``The Secretary of State, in coordination with the 
Secretary of Energy, the Secretary of Commerce, and the 
Administrator of the Environmental Protection Agency, shall 
carry out fellowship and exchange programs under which 
officials from developing countries visit the United States to 
acquire expertise and knowledge of best practices to reduce 
greenhouse gas intensity in their countries.

``SEC. 738. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 739. EFFECTIVE DATE.

    ``Except as otherwise provided in this part, this part 
takes effect on October 1, 2005.''.

           TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

SEC. 1701. DEFINITIONS.

    In this title:
            (1) Commercial technology.--
                    (A) In general.--The term ``commercial 
                technology'' means a technology in general use 
                in the commercial marketplace.
                    (B) Inclusions.--The term ``commercial 
                technology'' does not include a technology 
                solely by use of the technology in a 
                demonstration project funded by the Department.
            (2) Cost.--The term ``cost'' has the meaning given 
        the term ``cost of a loan guarantee'' within the 
        meaning of section 502(5)(C) of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
            (3) Eligible project.--The term ``eligible 
        project'' means a project described in section 1703.
            (4) Guarantee.--
                    (A) In general.--The term ``guarantee'' has 
                the meaning given the term ``loan guarantee'' 
                in section 502 of the Federal Credit Reform Act 
                of 1990 (2 U.S.C. 661a).
                    (B) Inclusion.--The term ``guarantee'' 
                includes a loan guarantee commitment (as 
                defined in section 502 of the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661a)).
            (5) Obligation.--The term ``obligation'' means the 
        loan or other debt obligation that is guaranteed under 
        this section.

SEC. 1702. TERMS AND CONDITIONS.

    (a) In General.--Except for division C of Public Law 108-
324, the Secretary shall make guarantees under this or any 
other Act for projects on such terms and conditions as the 
Secretary determines, after consultation with the Secretary of 
the Treasury, only in accordance with this section.
    (b) Specific Appropriation or Contribution.--No guarantee 
shall be made unless--
            (1) an appropriation for the cost has been made; or
            (2) the Secretary has received from the borrower a 
        payment in full for the cost of the obligation and 
        deposited the payment into the Treasury.
    (c) Amount.--Unless otherwise provided by law, a guarantee 
by the Secretary shall not exceed an amount equal to 80 percent 
of the project cost of the facility that is the subject of the 
guarantee, as estimated at the time at which the guarantee is 
issued.
    (d) Repayment.--
            (1) In general.--No guarantee shall be made unless 
        the Secretary determines that there is reasonable 
        prospect of repayment of the principal and interest on 
        the obligation by the borrower.
            (2) Amount.--No guarantee shall be made unless the 
        Secretary determines that the amount of the obligation 
        (when combined with amounts available to the borrower 
        from other sources) will be sufficient to carry out the 
        project.
            (3) Subordination.--The obligation shall be subject 
        to the condition that the obligation is not subordinate 
        to other financing.
    (e) Interest Rate.--An obligation shall bear interest at a 
rate that does not exceed a level that the Secretary determines 
appropriate, taking into account the prevailing rate of 
interest in the private sector for similar loans and risks.
    (f) Term.--The term of an obligation shall require full 
repayment over a period not to exceed the lesser of--
            (1) 30 years; or
            (2) 90 percent of the projected useful life of the 
        physical asset to be financed by the obligation (as 
        determined by the Secretary).
    (g) Defaults.--
            (1) Payment by secretary.--
                    (A) In general.--If a borrower defaults on 
                the obligation (as defined in regulations 
                promulgated by the Secretary and specified in 
                the guarantee contract), the holder of the 
                guarantee shall have the right to demand 
                payment of the unpaid amount from the 
                Secretary.
                    (B) Payment required.--Within such period 
                as may be specified in the guarantee or related 
                agreements, the Secretary shall pay to the 
                holder of the guarantee the unpaid interest on, 
                and unpaid principal of the obligation as to 
                which the borrower has defaulted, unless the 
                Secretary finds that there was no default by 
                the borrower in the payment of interest or 
                principal or that the default has been 
                remedied.
                    (C) Forbearance.--Nothing in this 
                subsection precludes any forbearance by the 
                holder of the obligation for the benefit of the 
                borrower which may be agreed upon by the 
                parties to the obligation and approved by the 
                Secretary.
            (2) Subrogation.--
                    (A) In general.--If the Secretary makes a 
                payment under paragraph (1), the Secretary 
                shall be subrogated to the rights of the 
                recipient of the payment as specified in the 
                guarantee or related agreements including, 
                where appropriate, the authority 
                (notwithstanding any other provision of law) 
                to--
                            (i) complete, maintain, operate, 
                        lease, or otherwise dispose of any 
                        property acquired pursuant to such 
                        guarantee or related agreements; or
                            (ii) permit the borrower, pursuant 
                        to an agreement with the Secretary, to 
                        continue to pursue the purposes of the 
                        project if the Secretary determines 
                        this to be in the public interest.
                    (B) Superiority of rights.--The rights of 
                the Secretary, with respect to any property 
                acquired pursuant to a guarantee or related 
                agreements, shall be superior to the rights of 
                any other person with respect to the property.
                    (C) Terms and conditions.--A guarantee 
                agreement shall include such detailed terms and 
                conditions as the Secretary determines 
                appropriate to--
                            (i) protect the interests of the 
                        United States in the case of default; 
                        and
                            (ii) have available all the patents 
                        and technology necessary for any person 
                        selected, including the Secretary, to 
                        complete and operate the project.
            (3) Payment of principal and interest by 
        secretary.--With respect to any obligation guaranteed 
        under this section, the Secretary may enter into a 
        contract to pay, and pay, holders of the obligation, 
        for and on behalf of the borrower, from funds 
        appropriated for that purpose, the principal and 
        interest payments which become due and payable on the 
        unpaid balance of the obligation if the Secretary finds 
        that--
                    (A)(i) the borrower is unable to meet the 
                payments and is not in default;
                    (ii) it is in the public interest to permit 
                the borrower to continue to pursue the purposes 
                of the project; and
                    (iii) the probable net benefit to the 
                Federal Government in paying the principal and 
                interest will be greater than that which would 
                result in the event of a default;
                    (B) the amount of the payment that the 
                Secretary is authorized to pay shall be no 
                greater than the amount of principal and 
                interest that the borrower is obligated to pay 
                under the agreement being guaranteed; and
                    (C) the borrower agrees to reimburse the 
                Secretary for the payment (including interest) 
                on terms and conditions that are satisfactory 
                to the Secretary.
            (4) Action by attorney general.--
                    (A) Notification.--If the borrower defaults 
                on an obligation, the Secretary shall notify 
                the Attorney General of the default.
                    (B) Recovery.--On notification, the 
                Attorney General shall take such action as is 
                appropriate to recover the unpaid principal and 
                interest due from--
                            (i) such assets of the defaulting 
                        borrower as are associated with the 
                        obligation; or
                            (ii) any other security pledged to 
                        secure the obligation.
    (h) Fees.--
            (1) In general.--The Secretary shall charge and 
        collect fees for guarantees in amounts the Secretary 
        determines are sufficient to cover applicable 
        administrative expenses.
            (2) Availability.--Fees collected under this 
        subsection shall--
                    (A) be deposited by the Secretary into the 
                Treasury; and
                    (B) remain available until expended, 
                subject to such other conditions as are 
                contained in annual appropriations Acts.
    (i) Records; Audits.--
            (1) In general.--A recipient of a guarantee shall 
        keep such records and other pertinent documents as the 
        Secretary shall prescribe by regulation, including such 
        records as the Secretary may require to facilitate an 
        effective audit.
            (2) Access.--The Secretary and the Comptroller 
        General of the United States, or their duly authorized 
        representatives, shall have access, for the purpose of 
        audit, to the records and other pertinent documents.
    (j) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all guarantees 
issued under this section with respect to principal and 
interest.

SEC. 1703. ELIGIBLE PROJECTS.

    (a) In General.--The Secretary may make guarantees under 
this section only for projects that--
            (1) avoid, reduce, or sequester air pollutants or 
        anthropogenic emissions of greenhouse gases; and
            (2) employ new or significantly improved 
        technologies as compared to commercial technologies in 
        service in the United States at the time the guarantee 
        is issued.
    (b) Categories.--Projects from the following categories 
shall be eligible for a guarantee under this section:
            (1) Renewable energy systems.
            (2) Advanced fossil energy technology (including 
        coal gasification meeting the criteria in subsection 
        (d)).
            (3) Hydrogen fuel cell technology for residential, 
        industrial or -transportation applications.
            (4) Advanced nuclear energy facilities.
            (5) Carbon capture and sequestration practices and 
        technologies, including agricultural and forestry 
        practices that store and sequester carbon.
            (6) Efficient electrical generation, transmission, 
        and distribution technologies.
            (7) Efficient end-use energy technologies.
            (8) Production facilities for fuel efficient 
        vehicles, including hybrid and advanced diesel 
        vehicles.
            (9) Pollution control equipment.
            (10) Refineries, meaning facilities at which crude 
        oil is refined into gasoline.
    (c) Gasification Projects.--The Secretary may make 
guarantees for the following gasification projects:
            (1) Integrated gasification combined cycle 
        projects.--Integrated gasification combined cycle 
        plants meeting the emission levels under subsection 
        (d), including--
                    (A) projects for the generation of 
                electricity--
                            (i) for which, during the term of 
                        the guarantee--
                                    (I) coal, biomass, 
                                petroleum coke, or a 
                                combination of coal, biomass, 
                                and petroleum coke will account 
                                for at least 65 percent of 
                                annual heat input; and
                                    (II) electricity will 
                                account for at least 65 percent 
                                of net useful annual energy 
                                output;
                            (ii) that have a design that is 
                        determined by the Secretary to be 
                        capable of accommodating the equipment 
                        likely to be necessary to capture the 
                        carbon dioxide that would otherwise be 
                        emitted in flue gas from the plant;
                            (iii) that have an assured revenue 
                        stream that covers project capital and 
                        operating costs (including servicing 
                        all debt obligations covered by the 
                        guarantee) that is approved by the 
                        Secretary and the relevant State public 
                        utility commission; and
                            (iv) on which construction 
                        commences not later than the date that 
                        is 3 years after the date of the 
                        issuance of the guarantee;
                    (B) a project to produce energy from coal 
                (of not more than 13,000 Btu/lb and mined in 
                the western United States) using appropriate 
                advanced integrated gasification combined cycle 
                technology that minimizes and offers the 
                potential to sequester carbon dioxide emissions 
                and that--
                            (i) may include repowering of 
                        existing facilities;
                            (ii) may be built in stages;
                            (iii) shall have a combined output 
                        of at least 100 megawatts;
                            (iv) shall be located in a western 
                        State at an altitude greater than 4,000 
                        feet; and
                            (v) shall demonstrate the ability 
                        to use coal with an energy content of 
                        not more than 9,000 Btu/lb;
                    (C) a project located in a taconite-
                producing region of the United States that is 
                entitled under the law of the State in which 
                the plant is located to enter into a long-term 
                contract approved by a State public utility 
                commission to sell at least 450 megawatts of 
                output to a utility;
                    (D) facilities that--
                            (i) generate 1 or more hydrogen-
                        rich and carbon monoxide-rich product 
                        streams from the gasification of coal 
                        or coal waste; and
                            (ii) use those streams to 
                        facilitate the production of ultra 
                        clean premium fuels through the 
                        Fischer-Tropsch process; and
                    (E) a project to produce energy and clean 
                fuels, using appropriate coal liquefaction 
                technology, from Western bituminous or 
                subbituminous coal, that--
                            (i) is owned by a State government; 
                        and
                            (ii) may include tribal and private 
                        coal resources.
            (2) Industrial gasification projects.--Facilities 
        that gasify coal, biomass, or petroleum coke in any 
        combination to produce synthesis gas for use as a fuel 
        or feedstock and for which electricity accounts for 
        less than 65 percent of the useful energy output of the 
        facility.
            (3) Petroleum coke gasification projects.--The 
        Secretary is encouraged to make loan guarantees under 
        this title available for petroleum coke gasification 
        projects.
            (4) Liquifaction project.--Notwithstanding any 
        other provision of law, funds awarded under the clean 
        coal power initiative under subtitle A of title IV for 
        coal-to-oil liquefaction projects may be used to 
        finance the cost of loan guarantees for projects 
        awarded such funds.
    (d) Emission Levels.--In addition to any other applicable 
Federal or State emission limitation requirements, a project 
shall attain at least--
            (1) total sulfur dioxide emissions in flue gas from 
        the project that do not exceed 0.05 lb/mmBTU;
            (2) a 90-percent removal rate (including any fuel 
        pretreatment) of mercury from the coal-derived gas, and 
        any other fuel, combusted by the project;
            (3) total nitrogen oxide emissions in the flue gas 
        from the project that do not exceed 0.08 lb/mmBTU; and
            (4) total particulate emissions in the flue gas 
        from the project that do not exceed 0.01 lb/mmBTU.
    (e) Qualification of Facilities Receiving Tax Credits.--A 
project that receives tax credits for clean coal technology 
shall not be disqualified from receiving a guarantee under this 
title.

SEC. 1704. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
such sums as are necessary to provide the cost of guarantees 
under this title.
    (b) Use of Other Appropriated Funds.--The Department may 
use amounts awarded under the clean coal power initiative under 
subtitle A of title IV to carry out the project described in 
section 1703(c)(1)(C), on the request of the recipient of such 
award, for a loan guarantee, to the extent that the amounts 
have not yet been disbursed to, or have been repaid by, the 
recipient.

                          TITLE XVIII--STUDIES

SEC. 1801. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.

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

SEC. 1802. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary shall contract with the National Academy of 
Sciences for a study, to be completed within 1 year after the 
date of enactment of this Act, to examine whether the goals of 
energy efficiency standards are best served by measurement of 
energy consumed, and efficiency improvements, at the actual 
site of energy consumption, or through the full fuel cycle, 
beginning at the source of energy production. The Secretary 
shall submit the report to Congress.

SEC. 1803. TELECOMMUTING STUDY.

    (a) Study Required.--The Secretary, in consultation with 
the Commission, the Director of the Office of Personnel 
Management, the Administrator of General Services, and the 
Administrator of NTIA, shall conduct a study of the energy 
conservation implications of the widespread adoption of 
telecommuting by Federal employees 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 by Federal 
employees:
            (1) Reductions of energy use and energy costs in 
        commuting and regular office heating, cooling, and 
        other operations.
            (2) Other energy reductions accomplished by 
        telecommuting.
            (3) Existing regulatory barriers that hamper 
        telecommuting, including barriers to broadband 
        telecommunications services deployment.
            (4) Collateral benefits to the environment, family 
        life, and other values.
    (c) Report Required.--The Secretary shall submit to the 
President and 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) Commission.--The term ``Commission'' means the 
        Federal Communications Commission.
            (2) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration of 
        the Department of Commerce.
            (3) 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.
            (4) Federal employee.--The term ``Federal 
        employee'' has the meaning provided the term 
        ``employee'' by section 2105 of title 5, United States 
        Code.

SEC. 1804. LIHEAP REPORT.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary of Health and Human Services shall transmit 
to Congress a report on how the Low-Income Home Energy 
Assistance Program could be used more effectively to prevent 
loss of life from extreme temperatures. In preparing such 
report, the Secretary shall consult with appropriate officials 
in all 50 States and the District of Columbia.

SEC. 1805. OIL BYPASS FILTRATION TECHNOLOGY.

    The Secretary and the Administrator of the Environmental 
Protection Agency shall--
            (1) conduct a joint study of the benefits of oil 
        bypass filtration technology in reducing demand for oil 
        and protecting the environment;
            (2) examine the feasibility of using oil bypass 
        filtration technology in Federal motor vehicle fleets; 
        and
            (3) include in such study, prior to any 
        determination of the feasibility of using oil bypass 
        filtration technology, the evaluation of products and 
        various manufacturers.

SEC. 1806. TOTAL INTEGRATED THERMAL SYSTEMS.

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

SEC. 1807. REPORT ON ENERGY INTEGRATION WITH LATIN AMERICA.

    The Secretary shall submit an annual 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 concerning the status of 
energy export development in Latin America and efforts by the 
Secretary and other departments and agencies of the United 
States to promote energy integration with Latin America. The 
report shall contain a detailed analysis of the status of 
energy export development in Mexico and a description of all 
significant efforts by the Secretary and other departments and 
agencies to promote a constructive relationship with Mexico 
regarding the development of that nation's energy capacity. In 
particular this report shall outline efforts the Secretary and 
other departments and agencies have made to ensure that 
regulatory approval and oversight of United States/Mexico 
border projects that result in the expansion of Mexican energy 
capacity are effectively coordinated across departments and 
with the Mexican government.

SEC. 1808. LOW-VOLUME GAS RESERVOIR STUDY.

    (a) Study.--The Secretary shall make a grant to an 
organization of oil and gas producing States, specifically 
those containing significant numbers of marginal oil and 
natural gas wells, for conducting an annual study of low-volume 
natural gas reservoirs. Such organization shall work with the 
State geologist of each State being studied.
    (b) Contents.--The studies under this section shall--
            (1) determine the status and location of marginal 
        wells and gas reservoirs;
            (2) gather the production information of these 
        marginal wells and reservoirs;
            (3) estimate the remaining producible reserves 
        based on variable pipeline pressures;
            (4) locate low-pressure gathering facilities and 
        pipelines;
            (5) recommend incentives which will enable the 
        continued production of these resources;
            (6) produce maps and literature to disseminate to 
        States to promote conservation of natural gas reserves; 
        and
            (7) evaluate the amount of natural gas that is 
        being wasted through the practice of venting or flaring 
        of natural gas produced in association with crude oil 
        well production.
    (c) Data Analysis.--Data development and analysis under 
this section shall be performed by an institution of higher 
education with GIS capabilities. If the organization receiving 
the grant under subsection (a) does not have GIS capabilities, 
such organization shall contract with one or more entities 
with--
            (1) technological capabilities and resources to 
        perform advanced image processing, GIS programming, and 
        data analysis; and
            (2) the ability to--
                    (A) process remotely sensed imagery with 
                high spatial resolution;
                    (B) deploy global positioning systems;
                    (C) process and synthesize existing, 
                variable-format gas well, pipeline, gathering 
                facility, and reservoir data;
                    (D) create and query GIS databases with 
                infrastructure location and attribute 
                information;
                    (E) write computer programs to customize 
                relevant GIS software;
                    (F) generate maps, charts, and graphs which 
                summarize findings from data research for 
                presentation to different audiences; and
                    (G) deliver data in a variety of formats, 
                including Internet Map Server for query and 
                display, desktop computer display, and access 
                through handheld personal digital assistants.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section--
            (1) $1,500,000 for fiscal year 2006; and
            (2) $450,000 for each of the fiscal years 2007 
        through 2010.
    (e) Definitions.--For purposes of this section, the term 
``GIS'' means geographic information systems technology that 
facilitates the organization and management of data with a 
geographic component.

SEC. 1809. INVESTIGATION OF GASOLINE PRICES.

    (a) Investigation.--Not later than 90 days after the date 
of enactment of this Act, the Federal Trade Commission shall 
conduct an investigation to determine if the price of gasoline 
is being artificially manipulated by reducing refinery capacity 
or by any other form of market manipulation or price gouging 
practices.
    (b) Evaluation and Analysis.--The Secretary shall direct 
the National Petroleum Council to conduct an evaluation and 
analysis to determine whether, and to what extent, 
environmental and other regulations affect new domestic 
refinery construction and significant expansion of existing 
refinery capacity.
    (c) Reports to Congress.--
            (1) Investigation.--On completion of the 
        investigation under subsection (a), the Federal Trade 
        Commission shall submit to Congress a report that 
        describes--
                    (A) the results of the investigation; and
                    (B) any recommendations of the Federal 
                Trade Commission.
            (2) Evaluation and analysis.--On completion of the 
        evaluation and analysis under subsection (b), the 
        Secretary shall submit to Congress a report that 
        describes--
                    (A) the results of the evaluation and 
                analysis; and
                    (B) any recommendations of the National 
                Petroleum Council.

SEC. 1810. ALASKA NATURAL GAS PIPELINE.

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

SEC. 1811. COAL BED METHANE STUDY.

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

SEC. 1812. BACKUP FUEL CAPABILITY STUDY.

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

SEC. 1813. INDIAN LAND RIGHTS-OF-WAY.

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

SEC. 1814. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

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

SEC. 1815. INTERAGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND 
                    RETAIL MARKETS FOR ELECTRIC ENERGY.

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

SEC. 1816. STUDY OF RAPID ELECTRICAL GRID RESTORATION.

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

SEC. 1817. STUDY OF DISTRIBUTED GENERATION.

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

SEC. 1818. NATURAL GAS SUPPLY SHORTAGE REPORT.

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

SEC. 1819. HYDROGEN PARTICIPATION STUDY.

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

SEC. 1820. OVERALL EMPLOYMENT IN A HYDROGEN ECONOMY.

    (a) Study.--
            (1) In general.--The Secretary shall carry out a 
        study of the likely effects of a transition to a 
        hydrogen economy on overall employment in the United 
        States.
            (2) Contents.--In completing the study, the 
        Secretary shall take into consideration--
                    (A) the replacement effects of new goods 
                and services;
                    (B) international competition;
                    (C) workforce training requirements;
                    (D) multiple possible fuel cycles, 
                including usage of raw materials;
                    (E) rates of market penetration of 
                technologies; and
                    (F) regional variations based on geography.
    (b) Report.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report describing the findings, conclusions, and 
recommendations of the study under subsection (a).

SEC. 1821. STUDY OF BEST MANAGEMENT PRACTICES FOR ENERGY RESEARCH AND 
                    DEVELOPMENT PROGRAMS.

    (a) In General.--The Secretary shall enter into an 
arrangement with the National Academy of Public Administration 
under which the Academy shall conduct a study to assess 
management practices for research, development, and 
demonstration programs at the Department.
    (b) Scope of the Study.--The study shall consider--
            (1) management practices that act as barriers 
        between the Office of Science and offices conducting 
        mission-oriented research;
            (2) recommendations for management practices that 
        would improve coordination and bridge the innovation 
        gap between the Office of Science and offices 
        conducting mission-oriented research;
            (3) the applicability of the management practices 
        used by the Department of Defense Advanced Research 
        Projects Agency to research programs at the Department;
            (4) the advisability of creating an agency within 
        the Department modeled after the Department of Defense 
        Advanced Research Projects Agency;
            (5) recommendations for management practices that 
        could best encourage innovative research and efficiency 
        at the Department; and
            (6) any other relevant considerations.
    (c) Report.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report on the study conducted under this section.

SEC. 1822. EFFECT OF ELECTRICAL CONTAMINANTS ON RELIABILITY OF ENERGY 
                    PRODUCTION SYSTEMS.

    Not later than 180 days after the date of enactment of this 
Act, the Secretary shall enter into a contract with the 
National Academy of Sciences under which the National Academy 
of Sciences shall determine the effect that electrical 
contaminants (such as tin whiskers) may have on the reliability 
of energy production systems, including nuclear energy.

SEC. 1823. ALTERNATIVE FUELS REPORTS.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Congress 
reports on the potential for each of biodiesel and hythane to 
become major, sustainable, alternative fuels.
    (b) Biodiesel Report.--The report relating to biodiesel 
submitted under subsection (a) shall--
            (1) provide a detailed assessment of--
                    (A) potential biodiesel markets and 
                manufacturing capacity; and
                    (B) environmental and energy security 
                benefits with respect to the use of biodiesel;
            (2) identify any impediments, especially in 
        infrastructure needed for production, distribution, and 
        storage, to biodiesel becoming a substantial source of 
        fuel for conventional diesel and heating oil 
        applications;
            (3) identify strategies to enhance the commercial 
        deployment of biodiesel; and
            (4) include an examination and recommendations, as 
        appropriate, of the ways in which biodiesel may be 
        modified to be a cleaner-burning fuel.
    (c) Hythane Report.--The report relating to hythane 
submitted under subsection (a) shall--
            (1) provide a detailed assessment of potential 
        hythane markets and the research and development 
        activities that are necessary to facilitate the 
        commercialization of hythane as a competitive, 
        environmentally friendly transportation fuel;
            (2) address--
                    (A) the infrastructure necessary to 
                produce, blend, distribute, and store hythane 
                for widespread commercial purposes; and
                    (B) other potential market barriers to the 
                commercialization of hythane;
            (3) examine the viability of producing hydrogen 
        using energy-efficient, environmentally friendly 
        methods so that the hydrogen can be blended with 
        natural gas to produce hythane; and
            (4) include an assessment of the modifications that 
        would be required to convert compressed natural gas 
        vehicle engines to engines that use hythane as fuel.
    (d) Grants for Report Completion.--The Secretary may use 
such sums as are available to the Secretary to provide, to 1 or 
more colleges or universities selected by the Secretary, grants 
for use in carrying out research to assist the Secretary in 
preparing the reports required to be submitted under subsection 
(a).

SEC. 1824. FINAL ACTION ON REFUNDS FOR EXCESSIVE CHARGES.

    FERC shall--
            (1) seek to conclude its investigation into the 
        unjust or unreasonable charges incurred by California 
        during the 2000-2001 electricity crisis as soon as 
        possible;
            (2) seek to ensure that refunds the Commission 
        determines are owed to the State of California are paid 
        to the State of California; and
            (3) submit to Congress a report by December 31, 
        2005, describing the actions taken by the Commission to 
        date under this section and timetables for further 
        actions.

SEC. 1825. FUEL CELL AND HYDROGEN TECHNOLOGY STUDY.

    (a) In General.--As soon as practicable after the date of 
enactment of this Act, the Secretary shall enter into a 
contract with the National Academy of Sciences and the National 
Research Council to carry out a study of fuel cell technologies 
that provides a budget roadmap for the development of fuel cell 
technologies and the transition from petroleum to hydrogen in a 
significant percentage of the vehicles sold by 2020.
    (b) Requirements.--In carrying out the study, the National 
Academy of Sciences and the National Research Council shall--
            (1) establish as a goal the maximum percentage 
        practicable of vehicles that the National Academy of 
        Sciences and the National Research Council determines 
        can be fueled by hydrogen by 2020;
            (2) determine the amount of Federal and private 
        funding required to meet the goal established under 
        paragraph (1);
            (3) determine what actions are required to meet the 
        goal established under paragraph (1);
            (4) examine the need for expanded and enhanced 
        Federal research and development programs, changes in 
        regulations, grant programs, partnerships between the 
        Federal Government and industry, private sector 
        investments, infrastructure investments by the Federal 
        Government and industry, educational and public 
        information initiatives, and Federal and State tax 
        incentives to meet the goal established under paragraph 
        (1);
            (5) consider whether other technologies would be 
        less expensive or could be more quickly implemented 
        than fuel cell technologies to achieve significant 
        reductions in carbon dioxide emissions;
            (6) take into account any reports relating to fuel 
        cell technologies and hydrogen-fueled vehicles, 
        including--
                    (A) the report prepared by the National 
                Academy of Engineering and the National 
                Research Council in 2004 entitled ``Hydrogen 
                Economy: Opportunities, Costs, Barriers, and 
                R&D Needs''; and
                    (B) the report prepared by the U.S. Fuel 
                Cell Council in 2003 entitled ``Fuel Cells and 
                Hydrogen: The Path Forward'';
            (7) consider the challenges, difficulties, and 
        potential barriers to meeting the goal established 
        under paragraph (1); and
            (8) with respect to the budget roadmap--
                    (A) specify the amount of funding required 
                on an annual basis from the Federal Government 
                and industry to carry out the budget roadmap; 
                and
                    (B) specify the advantages and 
                disadvantages to moving toward the transition 
                to hydrogen in vehicles in accordance with the 
                timeline established by the budget roadmap.

SEC. 1826. PASSIVE SOLAR TECHNOLOGIES.

    (a) Definition of Passive Solar Technology.--In this 
section, the term ``passive solar technology'' means a passive 
solar technology, including daylighting, that--
            (1) is used exclusively to avoid electricity use; 
        and
            (2) can be metered to determine energy savings.
    (b) Study.--The Secretary shall conduct a study to 
determine--
            (1) the range of levelized costs of avoided 
        electricity for passive solar technologies;
            (2) the quantity of electricity displaced using 
        passive solar technologies in the United States as of 
        the date of enactment of this Act; and
            (3) the projected energy savings from passive solar 
        technologies in 5, 10, 15, 20, and 25 years after the 
        date of enactment of this Act if--
                    (A) incentives comparable to the incentives 
                provided for electricity generation 
                technologies were provided for passive solar 
                technologies; and
                    (B) no new incentives for passive solar 
                technologies were provided.
    (c) Report.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that describes the results of the study under subsection 
(b).

SEC. 1827. STUDY OF LINK BETWEEN ENERGY SECURITY AND INCREASES IN 
                    VEHICLE MILES TRAVELED.

    (a) In General.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which 
the Academy shall conduct a study to assess the implications on 
energy use and efficiency of land development patterns in the 
United States.
    (b) Scope.--The study shall consider--
            (1) the correlation, if any, between land 
        development patterns and increases in vehicle miles 
        traveled;
            (2) whether petroleum use in the transportation 
        sector can be reduced through changes in the design of 
        development patterns;
            (3) the potential benefits of--
                    (A) information and education programs for 
                State and local officials (including planning 
                officials) on the potential for energy savings 
                through planning, design, development, and 
                infrastructure decisions;
                    (B) incorporation of location efficiency 
                models in transportation infrastructure 
                planning and investments; and
                    (C) transportation policies and strategies 
                to help transportation planners manage the 
                demand for the number and length of vehicle 
                trips, including trips that increase the 
                viability of other means of travel; and
            (4) such other considerations relating to the study 
        topic as the National Academy of Sciences finds 
        appropriate.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the National Academy of Sciences shall 
submit to the Secretary and Congress a report on the study 
conducted under this section.

SEC. 1828. SCIENCE STUDY ON CUMULATIVE IMPACTS OF MULTIPLE OFFSHORE 
                    LIQUEFIED NATURAL GAS FACILITIES.

    (a) In General.--The Secretary (in consultation with the 
National Oceanic Atmospheric Administration, the Commandant of 
the Coast Guard, affected recreational and commercial fishing 
industries, and affected energy and transportation 
stakeholders) shall carry out a study and compile existing 
science (including studies and data) to determine the risks or 
benefits presented by cumulative impacts of multiple offshore 
liquefied natural gas facilities reasonably assumed to be 
constructed in an area of the Gulf of Mexico using the open-
rack vaporization system.
    (b) Accuracy.--In carrying out subsection (a), the 
Secretary shall verify the accuracy of available science and 
develop a science-based evaluation of significant short-term 
and long-term cumulative impacts, both adverse and beneficial, 
of multiple offshore liquefied natural gas facilities 
reasonably assumed to be constructed in an area of the Gulf of 
Mexico using or proposing the open-rack vaporization system on 
the fisheries and marine populations in the vicinity of the 
facility.

SEC. 1829. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--The Architect of the Capitol, as part of 
the process of updating the Master Plan Study for the Capitol 
complex, shall--
            (1) carry out a study to evaluate the energy 
        infrastructure of the Capitol complex to determine how 
        to augment the infrastructure to become more energy 
        efficient--
                    (A) by using unconventional and renewable 
                energy resources;
                    (B) by--
                            (i) incorporating new technologies 
                        to implement effective green building 
                        solutions;
                            (ii) adopting computer-based 
                        building management systems; and
                            (iii) recommending strategies based 
                        on end-user behavioral changes to 
                        implement low-cost environmental gains; 
                        and
                    (C) in a manner that would enable the 
                Capitol complex to have reliable utility 
                service in the event of power fluctuations, 
                shortages, or outages;
            (2) carry out a study to explore the feasibility of 
        installing energy and water conservation measures on 
        the rooftop of the Dirksen Senate Office Building, 
        including the area directly above the food service 
        facilities in the center of the building, including the 
        installation of--
                    (A) a vegetative covering area, using 
                native species to the maximum extent 
                practicable, to--
                            (i) insulate and increase the 
                        energy efficiency of the building;
                            (ii) reduce precipitation runoff 
                        and conserve water for landscaping or 
                        other uses;
                            (iii) increase, and provide more 
                        efficient use of, available outdoor 
                        space through management of the rooftop 
                        of the center of the building as a park 
                        or garden area for occupants of the 
                        building; and
                            (iv) improve the aesthetics of the 
                        building; and
                    (B) onsite renewable energy and other 
                state-of-the-art technologies to--
                            (i) improve the energy efficiency 
                        and energy security of the building of 
                        the Capitol complex by providing 
                        additional or backup sources of power 
                        in the event of a power shortage or 
                        other emergency;
                            (ii) reduce the use of resources by 
                        the building; or
                            (iii) enhance worker productivity; 
                        and
                    (C) not later than 180 days after the date 
                of enactment of this Act, submit to Congress a 
                report describing the findings and 
                recommendations of the study under subparagraph 
                (B).
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated to the Architect of the Capitol to carry out 
this section $2,000,000 for each of fiscal years 2006 through 
2010.

SEC. 1830. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which 
the National Academy of Sciences shall conduct a study of the 
short-term and long-term availability of skilled workers to 
meet the energy and mineral security requirements of the United 
States.
    (b) Inclusions.--The study shall include an analysis of--
            (1) the need for and availability of workers for 
        the oil, gas, and mineral industries;
            (2) the availability of skilled labor at both entry 
        level and more senior levels; and
            (3) recommendations for future actions needed to 
        meet future labor requirements.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that describes the results of the study.

SEC. 1831. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall complete a study 
to determine the effect that titles III, IV, and V of the 
Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.) have had 
on--
            (1) the development of alternative fueled vehicle 
        technology;
            (2) the availability of that technology in the 
        market; and
            (3) the cost of alternative fueled vehicles.
    (b) Topics.--As part of the study under subsection (a), the 
Secretary shall specifically identify--
            (1) the number of alternative fueled vehicles 
        acquired by fleets or covered persons required to 
        acquire alternative fueled vehicles;
            (2) the quantity, by type, of alternative fuel 
        actually used in alternative fueled vehicles acquired 
        by fleets or covered persons;
            (3) the quantity of petroleum displaced by the use 
        of alternative fuels in alternative fueled vehicles 
        acquired by fleets or covered persons;
            (4) the direct and indirect costs of compliance 
        with requirements under titles III, IV, and V of the 
        Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.), 
        including--
                    (A) vehicle acquisition requirements 
                imposed on fleets or covered persons;
                    (B) administrative and recordkeeping 
                expenses;
                    (C) fuel and fuel infrastructure costs;
                    (D) associated training and employee 
                expenses; and
                    (E) any other factors or expenses the 
                Secretary determines to be necessary to compile 
                reliable estimates of the overall costs and 
                benefits of complying with programs under those 
                titles for fleets, covered persons, and the 
                national economy;
            (5) the existence of obstacles preventing 
        compliance with vehicle acquisition requirements and 
        increased use of alternative fuel in alternative fueled 
        vehicles acquired by fleets or covered persons; and
            (6) the projected impact of amendments to the 
        Energy Policy Act of 1992 made by this title.
    (c) Report.--Upon completion of the study under this 
section, the Secretary shall submit to Congress a report that 
describes the results of the study and includes any 
recommendations of the Secretary for legislative or 
administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV and V of the Energy 
Policy Act of 1992 (42 U.S.C. 13211 et seq.).

SEC. 1832. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary, in coordination and consultation 
with the States, shall conduct a study on--
            (1) the procedures currently used by electric 
        utilities to perform economic dispatch;
            (2) identifying possible revisions to those 
        procedures to improve the ability of nonutility 
        generation resources to offer their output for sale for 
        the purpose of inclusion in economic dispatch; and
            (3) the potential benefits to residential, 
        commercial, and industrial electricity consumers 
        nationally and in each state if economic dispatch 
        procedures were revised to improve the ability of 
        nonutility generation resources to offer their output 
        for inclusion in economic dispatch.
    (b) Definition.--The term ``economic dispatch'' when used 
in this section means the operation of generation facilities to 
produce energy at the lowest cost to reliably serve consumers, 
recognizing any operational limits of generation and 
transmission facilities.
    (c) Report to Congress and the States.--Not later than 90 
days after the date of enactment of this Act, and on a yearly 
basis following, the Secretary shall submit a report to 
Congress and the States on the results of the study conducted 
under subsection (a), including recommendations to Congress and 
the States for any suggested legislative or regulatory changes.

SEC. 1833. RENEWABLE ENERGY ON FEDERAL LAND.

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

SEC. 1834. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
                    FACILITIES.

    (a) In General.--The Secretary of the Interior, the 
Secretary, and the Secretary of the Army shall jointly conduct 
a study of the potential for increasing electric power 
production capability at federally owned or operated water 
regulation, storage, and conveyance facilities.
    (b) Content.--The study under this section shall include 
identification and description in detail of each facility that 
is capable, with or without modification, of producing 
additional hydroelectric power, including estimation of the 
existing potential for the facility to generate hydroelectric 
power.
    (c) Report.--The Secretaries shall submit to the Committees 
on Energy and Commerce, Resources, and Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate a 
report on the findings, conclusions, and recommendations of the 
study under this section by not later than 18 months after the 
date of the enactment of this Act. The report shall include 
each of the following:
            (1) The identifications, descriptions, and 
        estimations referred to in subsection (b).
            (2) A description of activities currently conducted 
        or considered, or that could be considered, to produce 
        additional hydroelectric power from each identified 
        facility.
            (3) A summary of prior actions taken by the 
        Secretaries to produce additional hydroelectric power 
        from each identified facility.
            (4) The costs to install, upgrade, or modify 
        equipment or take other actions to produce additional 
        hydroelectric power from each identified facility and 
        the level of Federal power customer involvement in the 
        determination of such costs.
            (5) The benefits that would be achieved by such 
        installation, upgrade, modification, or other action, 
        including quantified estimates of any additional energy 
        or capacity from each facility identified under 
        subsection (b).
            (6) A description of actions that are planned, 
        underway, or might reasonably be considered to increase 
        hydroelectric power production by replacing turbine 
        runners, by performing generator upgrades or rewinds, 
        or construction of pumped storage facilities.
            (7) The impact of increased hydroelectric power 
        production on irrigation, water supply, fish, wildlife, 
        Indian tribes, river health, water quality, navigation, 
        recreation, fishing, and flood control.
            (8) Any additional recommendations to increase 
        hydroelectric power production from, and reduce costs 
        and improve efficiency at, federally owned or operated 
        water regulation, storage, and conveyance facilities.

SEC. 1835. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND DEVELOPMENT 
                    PRACTICES.

    (a) Review.--In consultation with affected private surface 
owners, oil and gas industry, and other interested parties, the 
Secretary of the Interior shall undertake a review of the 
current policies and practices with respect to management of 
Federal subsurface oil and gas development activities and their 
effects on the privately owned surface. This review shall 
include--
            (1) a comparison of the rights and responsibilities 
        under existing mineral and land law for the owner of a 
        Federal mineral lease, the private surface owners and 
        the Department;
            (2) a comparison of the surface owner consent 
        provisions in section 714 of the Surface Mining Control 
        and Reclamation Act of 1977 (30 U.S.C. 1304) concerning 
        surface mining of Federal coal deposits and the surface 
        owner consent provisions for oil and gas development, 
        including coalbed methane production; and
            (3) recommendations for administrative or 
        legislative action necessary to facilitate reasonable 
        access for Federal oil and gas activities while 
        addressing surface owner concerns and minimizing 
        impacts to private surface.
    (b) Report.--The Secretary of the Interior shall report the 
results of such review to Congress not later than 180 days 
after the date of enactment of this Act.

SEC. 1836. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE 
                    POWDER RIVER BASIN.

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

SEC. 1837. NATIONAL SECURITY REVIEW OF INTERNATIONAL ENERGY 
                    REQUIREMENTS.

    (a) Study.--The Secretary, in consultation with the 
Secretary of Defense and Secretary of Homeland Security, shall 
conduct a study of the growing energy requirements of the 
People's Republic of China and the implications of such growth 
on the political, strategic, economic, or national security 
interests of the United States, including--
            (1) an assessment of the type, nationality, and 
        location of energy assets that have been sought for 
        investment by entities located in the People's Republic 
        of China;
            (2) an assessment of the extent to which investment 
        in energy assets by entities located in the People's 
        Republic of China has been on market-based terms and 
        free from subsidies from the People's Republic of 
        China;
            (3) an assessment of the effect of investment in 
        energy assets by entities located in the People's 
        Republic of China on the control by the United States 
        of dual-use and export-controlled technologies, 
        including the effect on current and future access to 
        foreign and domestic sources of rare earth elements 
        used to produce such technologies;
            (4) an assessment of the relationship between the 
        Government of the People's Republic of China and 
        energy-related businesses located in the People's 
        Republic of China;
            (5) an assessment of the impact on the world energy 
        market of the common practice of entities located in 
        the People's Republic of China of removing the energy 
        assets owned or controlled by such entities from the 
        competitive market, with emphasis on the effect if such 
        practice expands along with the growth in energy 
        consumption of the People's Republic of China;
            (6) an examination of the United States energy 
        policy and foreign policy as it relates to ensuring a 
        competitive global energy market;
            (7) an examination of the relationship between the 
        United States and the People's Republic of China as it 
        relates to pursuing energy interests in a manner that 
        avoids conflicts; and
            (8) a comparison of the appropriate laws and 
        regulations of other nations to determine whether a 
        United States company would be permitted to purchase, 
        acquire, merge, or otherwise establish a joint 
        relationship with an entity whose primary place of 
        business is in that other nation, including the laws 
        and regulations of the People's Republic of China.
    (b) Report and Recommendations.--Not later than 120 days 
after the date of the enactment of this Act, the Secretary, in 
consultation with the Secretary of Defense, shall report to the 
President and the Congress on the findings of the study 
described in subsection (a) and any recommendations the 
Secretaries consider appropriate.
    (c) Regulatory Effect.--Notwithstanding any other provision 
of law, any instrumentality of the United States vested with 
authority to review a transaction that includes an investment 
in a United States domestic corporation may not conclude a 
national security review related to an investment in the energy 
assets of a United States domestic corporation by an entity 
owned or controlled by the government of the People's Republic 
of China for 21 days after the report to the President and the 
Congress, and until the President certifies that he has 
received the report described in subsection (b).

SEC. 1838. USED OIL RE-REFINING STUDY.

    The Secretary, in consultation with the Administrator of 
the Environmental Protection Agency, shall undertake a study of 
the energy and environmental benefits of the re-refining of 
used lubricating oil and report to Congress within 90 days 
after enactment of this Act including recommendations of 
specific steps that can be taken to improve collections of used 
lubricating oil and increase re-refining and other beneficial 
re-use of such oil.

SEC. 1839. TRANSMISSION SYSTEM MONITORING.

    Within 6 months after the date of enactment of this Act, 
the Secretary and the Federal Energy Regulatory Commission 
shall study and report to Congress on the steps which must be 
taken to establish a system to make available to all 
transmission system owners and Regional Transmission 
Organizations (as defined in the Federal Power Act) within the 
Eastern and Western Interconnections real-time information on 
the functional status of all transmission lines within such 
Interconnections. In such study, the Commission shall assess 
technical means for implementing such transmission information 
system and identify the steps the Commission or Congress must 
take to require the implementation of such system.

SEC. 1840. REPORT IDENTIFYING AND DESCRIBING THE STATUS OF POTENTIAL 
                    HYDROPOWER FACILITIES.

    (a) Report Requirement.--Not later than 90 days after the 
date of enactment of this Act, the Secretary of the Interior, 
acting through the Bureau of Reclamation, shall submit to the 
Committee on Resources of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate a 
report identifying and describing the status of potential 
hydropower facilities included in water surface storage studies 
undertaken by the Secretary for projects that have not been 
completed or authorized for construction.
    (b) Report Contents.--The report shall include the 
following:
            (1) Identification of all surface storage studies 
        authorized by Congress since the enactment of the 
        Reclamation Project Act of 1939 (43 U.S.C. 485 et 
        seq.).
            (2) The purposes of each project included within 
        each study identified under paragraph (1).
            (3) The status of each study identified under 
        paragraph (1), including for each study--
                    (A) whether the study is completed or, if 
                not completed, still authorized;
                    (B) the level of analyses conducted at the 
                feasibility and reconnaissance levels of 
                review;
                    (C) identifiable environmental impacts of 
                each project included in the study, including 
                to fish and wildlife, water quality, and 
                recreation;
                    (D) projected water yield from each such 
                project;
                    (E) beneficiaries of each such project;
                    (F) the amount authorized and expended;
                    (G) projected funding needs and timelines 
                for completing the study (if applicable);
                    (H) anticipated costs of each such project; 
                and
                    (I) other factors that might interfere with 
                construction of any such project.
            (4) An identification of potential hydroelectric 
        facilities that might be developed pursuant to each 
        study identified under paragraph (1).
            (5) Applicable costs and benefits associated with 
        potential hydroelectric production pursuant to each 
        study.
      And the Senate agree to the same.

                From the Committee on Energy and Commerce, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Joe Barton,
                                   Ralph M. Hall,
                                   Mike Bilirakis,
                                   Fred Upton,
                                   Cliff Stearns,
                                   Paul Gillmor,
                                   John Shimkus,
                                   John Shadegg,
                                   Chip Pickering,
                                   Roy Blunt,
                                   Charles F. Bass,
                                   John D. Dingell,
                                   Rick Boucher,
                                   Bart Stupak,
                                   Albert R. Wynn,
                From the Committee on Agriculture, for 
                consideration of secs. 332, 344, 346, 1701, 
                1806, 2008, 2019, 2024, 2029, and 2030 of the 
                House bill, and secs. 251-253, 264, 303, 319, 
                342, 343, 345, and 347 of the Senate amendment, 
                and modifications committed to conference:
                                   Bob Goodlatte,
                                   Frank D. Lucas,
                                   Collin C. Peterson,
                From the Committee on Armed Services, for 
                consideration of secs. 104, 231, 601-607, 609-
                612, and 661 of the House bill, and secs. 104, 
                281, 601-607, 609, 610, 625, 741-743, 1005, and 
                1006 of the Senate amendment, and modifications 
                committed to conference:
                                   Duncan Hunter,
                                   Curt Weldon,
                                   Ike Skelton,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 121, 632, 
                640, 2206, and 2209 of the House bill, and 
                secs. 625, 1103, 1104, and 1106 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Charlie Norwood,
                                   Sam Johnson,
                From the Committee on Financial Services, for 
                consideration of secs. 141-149 of the House 
                bill, and secs. 161-164 and 505 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Michael G. Oxley,
                                   Bob Ney,
                From the Committee on Government Reform, for 
                consideration of secs. 102, 104, 105, 203, 205, 
                502, 624, 632, 701, 704, 1002, 1227, and 2304 
                of the House bill, and secs. 102, 104, 105, 
                108, 203, 502, 625, 701-703, 723-725, 741-743, 
                939, and 1011 of the Senate amendment, and 
                modifications committed to conference:
                                   Tom Davis,
                                   Darrell Issa,
                                   Diane E. Watson,
                From the Committee on the Judiciary, for 
                consideration of secs. 320, 377, 612, 625, 632, 
                663, 665, 1221, 1265, 1270, 1283, 1442, 1502, 
                and 2208 of the House bill, and secs. 137, 211, 
                328, 384, 389, 625, 1221, 1264, 1269, 1270, 
                1275, 1280, and 1402 of the Senate amendment, 
                and modifications committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Steve Chabot,
                From the Committee on Resources, for 
                consideration of secs. 204, 231, 330, 344, 346, 
                355, 358, 377, 379, Title V, secs. 969-976, 
                1701, 1702, Title XVIII, secs. 1902, 2001-2019, 
                2022-2031, 2033, 2041, 2042, 2051-2055, Title 
                XXI, Title XXII, and Title XXIV of the House 
                bill, and secs. 241-245, 252, 253, 261-270, 
                281, 311-317, 319-323, 326, 327, 342-346, 348, 
                371, 387, 391, 411-414, 416, and 501-506 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Richard Pombo,
                                   Barbara Cubin,
                                   Nick Rahall,
                From the Committee on Rules, for consideration 
                of sec. 713 of the Senate amendment, and 
                modifications committed to conference:
                                   David Dreier,
                                   Lincoln Diaz-Balart,
                                   Louise Slaughter,
                From the Committee on Science, for 
                consideration of secs. 108, 126, 205, 209, 302, 
                401-404, 411, 416, 441, 601-607, 609-612, 631, 
                651, 652, 661, 711, 712, 721-724, 731, 741-744, 
                751, 754, 757, 759, 801-811, Title IX, secs. 
                1002, 1225-1227, 1451, 1452, 1701, 1820, and 
                Title XXIV of the House bill, and secs. 125, 
                126, 142, 212, 230-232, 251-253, 302, 318, 327, 
                346, 401-407, 415, 503, 601-607, 609, 610, 624, 
                631-635, 706, 721, 722, 725, 731, 734, 751, 
                752, 757, 801, Title IX, Title X, secs. 1102, 
                1103, 1105, 1106, 1224, Title XIV, secs. 1601, 
                1602, and 1611 of the Senate amendment, and 
                modifications committed to conference:
                                   Sherwood Boehlert,
                                   Judy Biggert,
                                   Bart Gordon,
                Provided that Mr. Costello is appointed in lieu 
                of Mr. Gordon for consideration of secs. 401-
                404, 411, 416, and 441 of the House bill, and 
                secs. 401-407 and 415 of the Senate amendment, 
                and modifications committed to conference:
                                   Jerry F. Costello,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 101-
                103, 105, 108, 109, 137, 205, 208, 231, 241, 
                242, 320, 328-330, 377, 379, 721-724, 741-744, 
                751, 755, 756, 758, 811, 1211, 1221, 1231, 
                1234, 1236, 1241, 1281-1283, 1285, 1295, 1442, 
                1446, 2008, 2010, 2026, 2029, 2030, 2207, and 
                2210 of the House bill, and secs. 101-103, 105, 
                107, 108, 281, 325, 344, 345, 383, 731-733, 
                752, 1211, 1221, 1231, 1233, 1235, 1261, 1263, 
                1266, and 1291 of the Senate amendment, and 
                modifications committed to conference:
                                   Don Young,
                                   Tom Petri,
                From the Committee on Ways and Means, for 
                consideration of Title XII of the House bill, 
                and secs. 135, 405, Title XV, and sec. 1611 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   William Thomas,
                                   Dave Camp,
                                 Managers on the Part of the House.

                                   Pete Domenici,
                                   Larry E. Craig,
                                   Craig Thomas,
                                   Lamar Alexander,
                                   Lisa Murkowski,
                                   Jeff Bingaman,
                                   Daniel K. Akaka,
                                   Byron L. Dorgan,
                                   Richard M. Burr,
                                   Tim Johnson,
                                   Chuck Grassley,
                                   Orrin Hatch,
                                   Max Baucus,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The Managers on the part of the House and Senate at the 
conference on the disagreeing votes of the two Houses on the 
amendment of the Senate to the bill H.R. 6, to ensure jobs for 
our future with secure, affordable, and reliable energy, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
Managers and recommended in the accompanying conference report:
      The Senate amendment to the text of the bill struck all 
of the House bill after the enacting clause, and inserted a 
substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment.
      The managers on the Part of the House and Senate met on 
July 14, July 19, July 21, July 24, and July 25, 2005.

                From the Committee on Energy and Commerce, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Joe Barton,
                                   Ralph M. Hall,
                                   Mike Bilirakis,
                                   Fred Upton,
                                   Cliff Stearns,
                                   Paul Gillmor,
                                   John Shimkus,
                                   John Shadegg,
                                   Chip Pickering,
                                   Roy Blunt,
                                   Charles F. Bass,
                                   John D. Dingell,
                                   Rick Boucher,
                                   Bart Stupak,
                                   Albert R. Wynn,
                From the Committee on Agriculture, for 
                consideration of secs. 332, 344, 346, 1701, 
                1806, 2008, 2019, 2024, 2029, and 2030 of the 
                House bill, and secs. 251-253, 264, 303, 319, 
                342, 343, 345, and 347 of the Senate amendment, 
                and modifications committed to conference:
                                   Bob Goodlatte,
                                   Frank D. Lucas,
                                   Collin C. Peterson,
                From the Committee on Armed Services, for 
                consideration of secs. 104, 231, 601-607, 609-
                612, and 661 of the House bill, and secs. 104, 
                281, 601-607, 609, 625, 741-743, 1005, and 1006 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Duncan Hunter,
                                   Curt Weldon,
                                   Ike Skelton,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 121, 632, 
                640, 2206, and 2209 of the House bill, and 
                secs. 625, 1103, 1104, and 1106 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Charlie Norwood,
                                   Sam Johnson,
                From the Committee on Financial Services, for 
                consideration of secs. 141-149, of the House 
                bill, and secs. 161-164, and 505 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Michael G. Oxley,
                                   Bob Ney,
                From the Committee on Government Reform, for 
                consideration of secs. 102, 104, 105, 203, 205, 
                502, 624, 632, 701, 704, 1002, 1227, and 2304 
                of the House bill, and secs. 102, 104, 105, 
                108, 203, 502, 625, 701-703, 723-725, 741-743, 
                939, and 1011 of the Senate amendment, and 
                modifications committed to conference:
                                   Tom Davis,
                                   Darrell Issa,
                                   Diane E. Watson,
                From the Committee on Judiciary, for 
                consideration of secs. 320, 377, 612, 625, 632, 
                663, 665, 1221, 1265, 1270, 1283, 1442, 1502, 
                and 2208 of the House bill, and secs. 137, 211, 
                328, 384, 389, 625, 1221, 1264, 1269, 1270, 
                1275, 1280, and 1402 of the Senate amendment, 
                and modifications committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Steve Chabot,
                From the Committee on Resources, for 
                consideration of secs. 204, 231, 330, 344, 346, 
                355, 358, 377, 379, Title V, secs. 969-976, 
                1701, 1702, Title XVII, secs. 1902, 2001-2019, 
                2022-2031, 2033, 2041, 2042, 2051-2055, Title 
                XXI, Title XXII, and Title XXIV of the House 
                bill, and secs. 241-245, 252, 253, 261-270, 
                281, 311-317, 319-323, 326, 327, 342-346, 348, 
                371, 387, 391, 411-414, 416, and 501-506 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Richard Pombo,
                                   Barbara Cubin,
                                   Nick Rahall,
                From the Committee on Rules, for consideration 
                of secs. 713 of the Senate amendment, and 
                modifications committed to conference:
                                   David Dreier,
                                   Lincoln Diaz-Balart,
                                   Louise Slaughter,
                From the Committee on Science, for 
                consideration of secs. 108, 126, 205, 209, 302, 
                401-404, 411, 416, 441, 601-607, 609-612, 631, 
                651, 652, 661, 711, 712, 721-724, 731, 741-744, 
                751, 754, 757, 759, 801-811, Title IX, secs. 
                1002, 1225-1777, 1451, 1452, 1701, 1820, and 
                Title XXIV of the House bill, and secs. 125, 
                126, 142, 212, 230-232, 251-253, 302, 318, 327, 
                346, 401-407, 415, 503, 601-607, 609, 610, 624, 
                631-635, 706, 721, 722, 725, 731, 734, 751, 
                752, 757, 801, Title IX, Title X, secs. 1102, 
                1103, 1105, 1106, 1224, Title XIV, secs. 1601, 
                1602, and 1611 of the Senate amendment, and 
                modifications committed to conference:
                                   Sherwood Boehlert,
                                   Judy Biggert,
                                   Bart Gordon,
                Provided that Mr. Costello is appointed in lieu 
                of Mr. Gordon for consideration of secs. 401-
                404, 411, 416, and 441 of the House bill, and 
                secs. 401-407 and 415 of the Senate amendment, 
                and modifications committed to conference:
                                   Jerry F. Costello,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 101-
                103, 105, 108, 109, 137, 205, 208, 231, 241, 
                242, 320, 328-330, 377, 379, 721-724, 741-744, 
                751, 755, 756, 758, 811, 1211, 1221, 1231, 
                1234, 1236, 1241, 1281-1283, 1285, 1295, 1442, 
                1446, 2008, 2010, 2026, 2029, 2030, 2207, and 
                2210 of the House bill, and secs. 101-103, 105, 
                107, 108, 281, 325, 344, 345, 383, 731-733, 
                752, 1211, 1221, 1231, 1233, 1235, 1261, 1263, 
                1266, and 1291 of the Senate amendment, and 
                modifications committed to conference:
                                   Don Young,
                                   Tom Petri,
                From the Committee on Ways and Means, for 
                consideration of Title XIII of the House bill, 
                and secs. 135, 405, Title XV, and sec. 1611 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   William Thomas,
                                   Dave Camp,
                                 Managers on the Part of the House.

                                   Pete Domenici,
                                   Larry E. Craig,
                                   Craig Thomas,
                                   Lamar Alexander,
                                   Lisa Murkowski,
                                   Jeff Bingaman,
                                   Daniel K. Akaka,
                                   Byron L. Dorgan,
                                   Richard M. Burr,
                                   Tim Johnson,
                                   Chuck Grassley,
                                   Orrin Hatch,
                                   Max Baucus,
                                Managers on the Part of the Senate.

                                  
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