[House Report 109-49]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     109-49

======================================================================
 
    PROVIDING FOR CONSIDERATION OF H.R. 6, ENERGY POLICY ACT OF 2005

                                _______
                                

   April 19, 2005.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. Sessions, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 219]

    The Committee on Rules, having had under consideration 
House Resolution 219, by a non-record vote, reports the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 6, the 
Energy Policy Act of 2005, under a structured rule. The rule 
provides one hour and 30 minutes of general debate with 30 
minutes equally divided and controlled by the chairman and 
ranking minority member of the Committee on Energy and Commerce 
and 20 minutes equally divided and controlled by the chairmen 
and ranking minority members of each of the following 
Committees: Science, Resources, and Ways and Means. The rule 
waives all points of order against consideration of the bill.
    The rule makes in order only those amendments printed in 
this report, and provides that those amendments may be offered 
only in the order printed in this report, may be offered only 
by a Member designated in this report, shall be considered as 
read, shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment except as specified 
in the report, and shall not be subject to a demand for a 
division of the question in the House or in the Committee of 
the Whole. The rule waives all points of order against the 
amendments printed in this report. The rule also provides one 
motion to recommit with or without instructions.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

                   RULES COMMITTEE RECORD VOTE NO. 32

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mrs. Slaughter.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Stupak, 
which prohibits any Federal or state permit or lease for new 
oil or gas slant, directional, or offshore drilling in or under 
the Great Lakes.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                   RULES COMMITTEE RECORD VOTE NO. 33

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Dingell, 
which restores fairness to the hydroelectric relicensing 
provisions of the bill by insuring that all parties to a 
licensing proceeding are entitled to a trial-type hearing for 
any issues of disputed material fact and that all parties may 
offer alternative conditions and prescriptions that must be 
accepted under certain conditions. Allows the resources 
Secretaries to consolidate multiple requests for trial-type 
hearings. Directs the resources Secretaries in the case of 
multiple alternatives to choose the alternative that is best 
suited to the relevant standards in the Federal Power Act.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                   RULES COMMITTEE RECORD VOTE NO. 34

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Rahall, 
which strikes Title XXI which eliminates provisions of law 
which require certain federal coal resources be made available 
on a competitive basis.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                   RULES COMMITTEE RECORD VOTE NO. 35

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mrs. Capps, 
which strikes the safe harbor provision for MTBE; strikes the 
transition assistance for MTBE manufacturers; and speeds up the 
national phaseout of MTBE to 4 years from date of enactment.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                   RULES COMMITTEE RECORD VOTE NO. 36

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mrs. Matsui.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Davis of 
Florida, which strikes section 330, ``Appeals Relating to 
Pipeline Construction or Offshore Mineral Development 
Projects.''.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                   RULES COMMITTEE RECORD VOTE NO. 37

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mrs. Matsui.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mrs. Johnson 
of Texas, which strikes section 1443 of H.R. 6. Under the 
existing Act, areas that have unhealthy air are required to 
reduce ozone-forming smog pollution by set statutory deadlines. 
Section 1443 would delay the set statutory deadlines.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                   RULES COMMITTEE RECORD VOTE NO. 38

    Date: April 19, 2005.
    Measure: H.R. 6, Energy Policy Act of 2005.
    Motion by: Mrs. Matsui.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Gilchrest, 
which requires the development of a National Climate Change 
Strategy, with the goal of stabilizing greenhouse gas 
concentrations in our atmosphere.
    Results: Defeated 3 to 8.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--Nay; Gingrey--Nay; 
Slaughter--Yea; McGovern--Yea; Matsui--Yea; Dreier--Nay.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Barton: Manager's Amendment. Changes Table of Contents. 
Sets ESPC cap at $500 million by having OMB approve contracts. 
Includes ceiling fan efficiency standards. Limits preemption on 
state consumer product energy efficiency standards. Includes 
affordable housing amendments. Moves photovoltaic program back 
from DOE to GSA. Deletes duplicative provisions reported by the 
Resources Committee. Adds the Natural Gas Market Reform 
provision from the H.R. 6 conference report of the 108th 
Congress back into bill. Allows clean air coal projects of 600 
MW or less. Makes employee benefits provision subject to 
appropriations. Clarifies references to firearm laws under 
nuclear security provision. Includes aircraft idling study as 
modified by the Transportation and Infrastructure Committee. 
Includes engine idling program as amended. Includes hydrogen 
fuel cell bus program. Reinserts Western MI Demonstration 
Project originally from the H.R. 6 conference report. Reinserts 
Western Hemisphere Energy Cooperation originally from the H.R. 
6 conference report. Reinserts Arctic Engineering Research 
Center originally from the H.R. 6 conference report. Reinserts 
Barrow Geophysical Research Facility originally from the H.R. 6 
conference report. Clarifies tax status of Ultra-deep 
consortium. Amends PUHCA language to allow savings clause and 
makes enforcement provisions effective on date of enactment. 
Requires regional boards with FERC participation to study 
security constrained economic dispatch. Changes Bump Up date. 
Modifies Soybean oil reference. Modifies NAS MTBE study date. 
Includes on-road and off-road diesel rules in fuel 
harmonization study. Clarifies LUST rulemakings and dates for 
appropriations. Boutique Fuels studies clarified and made 
subject to sound science. Modifications to Title headings. 
(Revised) (10 minutes)
    2. Dingell: Authorizes the Federal Energy Regulatory 
Commission (FERC) to deter and punish fraud and manipulation in 
electricity and gas markets, increases penalties for Federal 
Power Act violations, authorizes FERC to refund all electricity 
overcharges, does not repeal the Public Utility Holding Company 
Act of 1935 (PUHCA), and directs the Securities and Exchange 
Commission to review utility holding companies' status under 
PUHCA to prevent them from wrongly claiming exemptions. The 
amendment retains a number of valuable provisions from Title 
XII, such as ``open access'' for public power entities, and 
does not modify the ``native load'' provision adopted in the 
Energy and Commerce Committee. The amendment retains Title 
XII's electric transmission provision, including the spending 
caps. (20 minutes)
    3. Markey: Strikes the provisions that will allow oil and 
gas exploration in the Arctic National Wildlife Refuge. (30 
minutes)
    4. Boehlert/Markey/Kirk/Gilchrest/Leach/Shays: Directs the 
Secretary of Transportation to increase fuel economy standards 
from today's average of 25 miles/gallon to 33 miles/gallon over 
10 years (by 2015), consistent with the findings of the 
National Academy of Sciences, in order to save 10% of the 
gasoline the nation would otherwise consume by 2015. Amendment 
also directs the Secretary to maximize job retention in the 
American auto manufacturing sector and to prevent taking 
actions that would reduce safety. (20 minutes)
    5. Johnson (CT): Requires that the EPA's fuel economy test 
procedures reflect current driving patterns and conditions and 
provide consumers with more accurate information about fuel 
economy. (10 minutes)
    6. Rogers (MI)/Kilpatrick: Amendment to the Johnson of 
Connecticut amendment. Directs the Administrator of the EPA to 
revise certain Federal vehicle fuel economy adjustment factors 
to take into consideration higher speed limits, faster 
acceleration rates, variations in temperature, use of air 
conditioning, shorter city test cycle lengths, and the use of 
other fuel depleting features to provide consumers with 
accurate fuel economy information on new vehicle labels. (10 
minutes)
    7. Bishop (NY)/Markey: This Democratic alternative energy 
policy will help lower gas prices, increase our energy 
efficiency standards, and eliminate special interest subsidies 
and instead invest those resources in new technology to create 
a better energy future for our children. (30 minutes)
    8. Slaughter: Requires any escalator being installed in 
federal buildings to be an Intermittent Escalator. In addition, 
federal agencies would also be encouraged to incorporate other 
escalator energy conservation measures. (10 minutes)
    9. Waxman: Requires the Administration to take ``voluntary, 
regulatory, and other actions'' to reduce oil demand in the 
U.S. by 1 million barrels per day from projected levels by 
2013. (10 minutes)
    10. Oberstar: Authorizes $20 million for the Administrator 
of General Services Administration to proceed with the Sun Wall 
Design Project, the winning entry in a national 
designcompetition sponsored jointly by the Department of Energy and the 
National Renewable Energy Laboratory, to install a photovoltaic solar 
electric system on the headquarters building of the Department of 
Energy. (10 minutes)
    11. Abercrombie: Authorizes a 3-year demonstration program 
for the production of ethanol in Hawaii to parallel the 
existing program for corn to show that the process can be 
applicable to cane sugar and can be replicated on larger scale 
once the sugar cane industry has site located and constructed 
ethanol production facilities. Specifically, $8.0 million would 
result in a $1.00 per gallon payment to refiners and 8.0 
million gallons of ethanol fuel. (10 minutes)
    12. Kaptur: Provides the Secretary of Energy the authority 
to include in the Strategic Petroleum Reserve alternative 
fuels, including ethanol and biodiesel and rename the reserve 
the ``Strategic Fuels Reserve.'' (10 minutes)
    13. Conaway: Provides that the Department of Energy, in 
consultation with the Department of Labor and the Department of 
lnterior, will evaluate and report on both the short term and 
longer term availability of skilled workers to meet the energy 
security of the United States, addressing the availability of 
skilled labor at both entry level and at more senior levels in 
the oil, gas, and mineral industries. (10 minutes)
    14. Solis: Strikes all of Title III, Subtitle D, the 
Refinery Revitalization Act. Subtitle D preempts state 
regulations, relaxes public health and environmental laws for 
siting of refineries, and has adverse impacts on under-served 
communities. (10 minutes)
    15. Udall (NM): Strikes section 631, eliminating the 
proposed $10 million payment for three fiscal years to domestic 
uranium producers ``to identify, test, and develop improved in 
situ leaching mining technologies, including low-cost 
environmental restoration technologies.'' (10 minutes)
    16. Ford: Authorizes the Environmental Protection Agency to 
establish a program to encourage the domestic production of 
hybrid and advanced diesel vehicles. The program shall include 
grants (not to exceed $300 million each of the next ten years) 
to domestic automobile manufacturers to (a) encourage 
production of hybrid and advanced diesel vehicles and (b) 
provide consumer alternatives in the form of discounts, 
rebates, etc. to purchase hybrid and advanced diesel vehicles. 
(10 minutes)
    17. Kaptur/Kucinich: Amends section 722, the Pilot Program 
for the Department of Energy's Clean Cities Program, to 
increase the number of project grants to State governments, 
local governments, and metropolitan transportation authorities 
from 15 to 30. Also reduces the amount of total Federal 
assistance under the pilot program to anyone applicant from $20 
million to $15 million. Does not increase the bill's authorized 
spending level of $200 million for the pilot program. (10 
minutes)
    18. Millender-McDonald: Establishes a Diesel Truck Retrofit 
and Fleet Modernization Program to be administered in 
conjunction with the Secretary of Energy and the Administrator 
of the Environmental Protection Agency. Competitive grants are 
to be awarded to public agencies and/or state and local 
governments and entities to implement fleet modernization 
programs including installation of retrofit technologies for 
diesel trucks. (10 minutes)
    19. Blumenauer: Establishes within the Department of 
Transportation a Conserve by Bicycling pilot program, which 
would oversee up to 10 pilot projects geographically dispersed 
across the country designed to conserve energy resources by 
providing education and marketing tools to convert car trips to 
bike trips. In addition, the projects would encourage 
partnerships between stakeholders from transportation, law 
enforcement, education, public health, environment, and energy 
fields. Requires a report to Congress within two years of 
implementation. (10 minutes)
    20 Jackson-Lee: Earmarks $5 million annually for bioenergy 
training and education targeted to minority and socially 
disadvantaged farmers and ranchers. (10 minutes)
    21. Davis, T. (VA)/Waxman: Strikes section 978, ``Improved 
Coordination and Management of Civilian Science and Technology 
Programs,'' which would create 2 new, Senate-confirmed 
assistant secretary positions within the Department of Energy, 
increasing the total number of Senate-confirmed assistant 
secretaries in the Department to 8. (10 minutes)
    22. Walsh: Establishes a National Priority Project 
designation to be awarded annually to organizations that have 
advanced the field of renewable energy technology and 
contributed to North American energy independence. The 
designation shall be awarded in two categories: renewable 
energy generation projects; and, energy efficient and renewable 
energy building projects. (10 minutes)
    23. Engel: Makes producers of ``approved renewable fuels'' 
eligible for grants to build production facilities for 
renewable fuels. In the current bill, only merchant producers 
of cellulosic biomass and waste derived from ethanol are 
eligible for grants. (10 minutes)
    24. Israel: Requires the Comptroller General of the United 
States to conduct a study on the impact of the consolidation of 
gasoline wholesales (and above) on the gasoline retail market 
(pricing of retail gasoline, local small business ownership and 
other market impacts).The study shall be delivered back to 
Congress 12 months from enactment of the legislation. (10 minutes)
    25. Kucinich: Authorizes a National Academy of Sciences 
study on the feasibility of mustard seed as a feedstock for 
biodiesel. (10 minutes)
    26. Holt: Requires the Secretary of Energy, within 2 years 
of enactment, to report to Congress on the potential fuel 
savings from information technology systems that help 
businesses and consumers to plan their travel and avoid delays. 
These systems may include, for example, web-based real time 
transit information systems, congestion information systems, 
car-pool information systems, parking information systems, 
freight route management, and traffic management systems. (10 
minutes)
    27. Grijalva: Strikes section 2005 which requires the 
Secretary of the Interior to suspend the collection of royalty 
payments to the Treasury for offshore oil and gas production on 
the Outer Continental Shelf (OCS) in the Gulf of Mexico. (10 
minutes)
    28. Inslee: Reduces by 50% any royalty payments, excluding 
the costs of processing the rights-of-way, for wind energy 
generation that otherwise would be paid to the Treasury on BLM 
lands. This royalty relief provision terminates after 10 years 
of enactment or after the Secretary declares there exists a 
generation capacity of at least 10,000 megawatts of electricity 
from renewable sources on public lands, whichever is sooner. 
(10 minutes)
    29. Hastings (FL): Expands the definition of environmental 
justice, directs each Federal Agency to establish an office of 
environmental justice, reestablishes the interagency Federal 
Working Group on Environmental Justice, and requires that 
Executive Order (EO) 12898 (relating to Federal actions to 
address environmental justice in minority populations and low-
income populations) remain in force until changed by law. (10 
minutes)
    30. Castle: Strikes language in the bill (section 320 of 
title III), which would preempt the authority of state and 
local governments to ensure that liquefied natural gas (LNG) 
facilities are sited in areas where they do not pose a threat 
to public safety, and the states' authority to ensure that such 
facilities are not sited in places where they pose a threat to 
sensitive coastal and ocean areas. Under section 320, the 
Federal Energy Regulatory Commission (FERC), would be made the 
lead federal agency for LNG siting decisions, and states would 
be granted only a consultative role. (10 minutes)
    (Summaries derived from information provided by amendment 
sponsors.)

                    TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Barton of Texas, or His 
                   Designee, Debatable for 10 Minutes

  In the item in the table of contents relating to section 142, 
strike ``cdbg'' and insert ``CDBG''.

  In section 105(a)(1), strike ``Section 801(a)'' and insert 
``Section 801(a)(2)''.

  In section 105(a)(1), strike ``(42 U.S.C. 8287(a))'' and 
insert ``(42 U.S.C. 8287(a)(2))''.

  In section 105(a)(1), in the proposed subparagraph (E), 
insert ``and report to the Office of Management and Budget'' 
after ``shall meet monthly''.

  In section 105(a)(1), in the proposed subparagraph (E), 
insert ``No Federal agency shall enter into a contract under 
this title unless the Office of Management and Budget has 
approved such contract.'' after ``contracts are not 
exceeded.''.

  In section 105, strike subsections (c), (d), (e), (f), and 
(g), and redesignate subsection (h) as subsection (c).

  In section 133(b), in the proposed subsection (f), strike 
``for suspended ceiling fans,''; and strike the last sentence.

  In section 133(c), in the proposed subsection (v), strike 
``Suspended Ceiling Fans, Vending Machines,'' and insert 
``Vending Machines'' in the subsection heading.

  In section 133(c), in the proposed subsection (v), strike 
``suspended ceiling fans, refrigerated bottled or canned 
beverage vending machines,'' and insert ``refrigerated bottled 
or canned beverage vending machines''.

  In section 136, strike ``Section 327'' and insert ``Effective 
3 years after the date of enactment of this Act, section 327''.

  In section 136, redesignate the proposed subsection (h) as 
subsection (i).

  In section 136, in the proposed subsection (i)(1) (as so 
redesignated by the preceding amendment), strike ``or revised'' 
both places it appears.

  In section 148 of the bill, strike subparagraph (B) of 
paragraph (1) and insert the following:

                          (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')'';
  In section 148 of the bill, strike subparagraph (B) of 
paragraph (2) and all that follows through the end of paragraph 
(3) and insert the following:

                          (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''.
  In section 205(a), in the proposed section 570(a)(1), strike 
``Secretary'' and insert ``Administrator of General Services''.

  In section 205(a), in the proposed section 570(a)(4), strike 
``Secretary'' and insert ``Administrator''.

  In section 205(a), in the proposed section 570(b)(1), strike 
``Secretary'' and insert ``Administrator''.

  In section 205(a), in the proposed section 570(b)(2), strike 
``Secretary'' and insert ``Administrator''.

  In section 205(a), strike ``Part 4 of title V of the National 
Energy Conservation Policy Act (42 U.S.C. 8271 et seq.)'' and 
insert ``Subchapter VI of chapter 31 of title 40, United States 
Code,''.

  In section 205(a), at the beginning of the quoted material, 
strike ``SEC. 570.'' and insert ``Sec. 3177.''.

  Strike section 206 (and amend the table of contents 
accordingly).

  Strike section 244 (and amend the table of contents 
accordingly).

  Strike section 245 (and amend the table of contents 
accordingly).

  In title III, after section 330, insert the following new 
section (and amend the table of contents accordingly):

SEC. 332. NATURAL GAS MARKET REFORM.

  (a) Clarification of Existing CFTC Authority.--
          (1) False reporting.--Section 9(a)(2) of the 
        Commodity Exchange Act (7 U.S.C. 13(a)(2)) is amended 
        by striking ``false or misleading or knowingly 
        inaccurate reports'' and inserting ``knowingly false or 
        knowingly misleading or knowingly inaccurate reports''.
          (2) Commission administrative and civil authority.--
        Section 9 of the Commodity Exchange Act (7 U.S.C. 13) 
        is amended by redesignating subsection (f) as 
        subsection (e), and adding:
  ``(f) Commission Administrative and Civil Authority.--The 
Commission may bring administrative or civil actions as 
provided in this Act against any person for a violation of any 
provision of this section including, but not limited to, false 
reporting under subsection (a)(2).''.
          (3) Effect of amendments.--The amendments made by 
        paragraphs (1) and (2) restate, without substantive 
        change, existing burden of proof provisions and 
        existing Commission civil enforcement authority, 
        respectively. These clarifying changes do not alter any 
        existing burden of proof or grant any new statutory 
        authority. The provisions of this section, as restated 
        herein, continue to apply to any action pending on or 
        commenced after the date of enactment of this Act for 
        any act, omission, or violation occurring before, on, 
        or after, such date of enactment.
  (b) Fraud Authority.--Section 4b of the Commodity Exchange 
Act (7 U.S.C. 6b) is amended--
          (1) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
          (2) by striking subsection (a) and inserting the 
        following:
  ``(a) It shall be unlawful--
          ``(1) for any person, in or in connection with any 
        order to make, or the making of, any contract of sale 
        of any commodity for future delivery or in interstate 
        commerce, that is made, or to be made, on or subject to 
        the rules of a designated contract market, for or on 
        behalf of any other person; or
          ``(2) for any person, in or in connection with any 
        order to make, or the making of, any contract of sale 
        of any commodity for future delivery, or other 
        agreement, contract, or transaction subject to section 
        5a(g) (1) and (2) of this Act, that is made, or to be 
        made, for or on behalf of, or with, any other person, 
        other than on or subject to the rules of a designated 
        contract market--
                  ``(A) to cheat or defraud or attempt to cheat 
                or defraud such other person;
                  ``(B) willfully to make or cause to be made 
                to such other person any false report or 
                statement or willfully to enter or cause to be 
                entered for such other person any false record;
                  ``(C) willfully to deceive or attempt to 
                deceive such other person by any means 
                whatsoever in regard to any order or contract 
                or the disposition or execution of any order or 
                contract, or in regard to any act of agency 
                performed, with respect to any order or 
                contract for or, in the case of subsection 
                (a)(2), with such other person; or
                  ``(D)(i) to bucket an order if such order is 
                either represented by such person as an order 
                to be executed, or required to be executed, on 
                or subject to the rules of a designated 
                contract market; or
                  ``(ii) to fill an order by offset against the 
                order or orders of any other person, or 
                willfully and knowingly and without the prior 
                consent of such other person to become the 
                buyer in respect to any selling order of such 
                other person, or become the seller in respect 
                to any buying order of such other person, if 
                such order is either represented by such person 
                as an order to be executed, or required to be 
                executed, on or subject to the rules of a 
                designated contract market.
  ``(b) Subsection (a)(2) shall not obligate any person, in 
connection with a transaction in a contract of sale of a 
commodity for future delivery, or other agreement, contract or 
transaction subject to section 5a(g) (1) and (2) of this Act, 
with another person, to disclose to such other person nonpublic 
information that may be material to the market price of such 
commodity or transaction, except as necessary to make any 
statement made to such other person in connection with such 
transaction, not misleading in any material respect.''.
  (c) Jurisdiction of the CFTC.--The Natural Gas Act (15 U.S.C. 
717 et seq.) is amended by adding at the end:

``SEC. 26. JURISDICTION.

  ``This Act shall not affect the exclusive jurisdiction of the 
Commodity Futures Trading Commission with respect to accounts, 
agreements, contracts, or transactions in commodities under the 
Commodity Exchange Act (7 U.S.C. 1 et seq.). Any request for 
information by the Commission to a designated contract market, 
registered derivatives transaction execution facility, board of 
trade, exchange, or market involving accounts, agreements, 
contracts, or transactions in commodities (including natural 
gas, electricity, and other energy commodities) within the 
exclusive jurisdiction of the Commodity Futures Trading 
Commission shall be directed to the Commodity Futures Trading 
Commission, which shall cooperate in responding to any 
information request by the Commission.''.
  (d) Increased Penalties.--Section 21 of the Natural Gas Act 
(15 U.S.C. 717t) 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''; and
          (2) in subsection (b), by striking ``$500'' and 
        inserting ``$50,000''.
  In section 441(a), in the proposed section 3105(b)(1), insert 
``or equal to'' after ``projects less than''.

  In section 640, strike ``Section 3110'' and insert ``Section 
3110(a)''.

  In section 640, in the proposed paragraph (8), strike ``Not 
later than'' and insert ``To the extent appropriations are 
provided in advance for this purpose or are otherwise 
available, not later than''.

  In section 663, at the beginning of the quoted material, 
strike ``(z)'' and insert ``z.''.

  In section 663, in the proposed subsection z.(1), strike 
``section 922(o), (v), and (w)'' and insert ``section 922(a)(4) 
and (o)''.

  In section 663, in the proposed subsection z.(2)(A), strike 
``, (o), (v), and (w)'' and insert ``and (o)''.

  In section 722(b)(1)(B), strike ``, scooters,''.

  In title VII, amend section 753 to read as follows:

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.
  In title VII, amend section 756 to read as follows:

SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.

  (a) Definitions.--In this section:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of the Environmental Protection 
        Agency.
          (2) Advanced truck stop electrification system.--The 
        term ``advanced truck stop electrification system'' 
        means a stationary system that delivers heat, air 
        conditioning, electricity, 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 
        device or system of devices that--
                  (A) is used to reduce long-duration idling of 
                a heavy-duty vehicle; and
                  (B) allows for the main drive engine or 
                auxiliary refrigeration engine of a heavy-duty 
                vehicle to be shut down.
          (6) Energy conservation technology.--the term 
        ``energy conservation technology'' means any device, 
        system of devices, or equipment that improves the fuel 
        economy of a heavy-duty vehicle.
          (7) Long-duration idling.--
                  (A) In general.--The term ``long-duration 
                idling'' means the operation of a main drive 
                engine or auxiliary refrigeration engine of a 
                heavy-duty vehicle, for a period greater than 
                15 consecutive minutes, at a time at which the 
                main drive engine is not engaged in gear.
                  (B) Exclusions.--The term ``long-duration 
                idling'' does not include the operation of a 
                main drive engine or auxiliary refrigeration 
                engine of a heavy-duty vehicle during a routine 
                stoppage associated with traffic movement or 
                congestion.
  (b) Idle Reduction Technology Benefits, Programs, and 
Studies.--
          (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator 
        shall--
                  (A)(i) commence a review of the mobile source 
                air emission models of the Environmental 
                Protection Agency used under the Clean Air Act 
                (42 U.S.C. 7401 et seq.) to determine whether 
                the models accurately reflect the emissions 
                resulting from long-duration idling of heavy-
                duty vehicles and other vehicles and engines; 
                and
                  (ii) update those models as the Administrator 
                determines to be appropriate; and
                  (B)(i) commence a review of the emission 
                reductions achieved by the use of idle 
                reduction technology; and
                  (ii) complete such revisions of the 
                regulations and guidance of the Environmental 
                Protection Agency as the Administrator 
                determines to be appropriate.
          (2) Deadline for completion.--Not later than 180 days 
        after the date of enactment of this Act, the 
        Administrator shall--
                  (A) complete the reviews under subparagraphs 
                (A)(i) and (B)(i) of paragraph (1); and
                  (B) prepare and make publicly available 1 or 
                more reports on the results of the reviews.
          (3) Discretionary inclusions.--The reviews under 
        subparagraphs (A)(i) and (B)(i) of paragraph (1) and 
        the reports under paragraph (2)(B) may address the 
        potential fuel 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) 
                        $19,500,000 for fiscal year 2006, 
                        $30,000,000 for fiscal year 2007, and 
                        $45,000,000 for fiscal year 2008.
                          (ii) Cost sharing.--Subject to clause 
                        (iii), the Administrator shall require 
                        at least 50 percent of the costs 
                        directly and specifically related to 
                        any project under this section to be 
                        provided from non-Federal sources.
                          (iii) Necessary and appropriate 
                        reductions.--The Administrator may 
                        reduce the non-Federal requirement 
                        under clause (ii) if the Administrator 
                        determines that the reduction is 
                        necessary and appropriate to meet the 
                        objectives of this section.
          (5) Idling location study.--
                  (A) In general.--Not later than 90 days after 
                the date of enactment of this Act, the 
                Administrator, in consultation with the 
                Secretary of Transportation, shall commence a 
                study to analyze all locations at which heavy-
                duty vehicles stop for long-duration idling, 
                including--
                          (i) truck stops;
                          (ii) rest areas;
                          (iii) border crossings;
                          (iv) ports;
                          (v) transfer facilities; and
                          (vi) private terminals.
                  (B) Deadline for completion.--Not later than 
                180 days after the date of enactment of this 
                Act, the Administrator shall--
                          (i) complete the study under 
                        subparagraph (A); and
                          (ii) prepare and make publicly 
                        available 1 or more reports of the 
                        results of the study.
  (c) Vehicle Weight Exemption.--Section 127(a) of title 23, 
United States Code, is amended--
          (1) by designating the first through eleventh 
        sentences as paragraphs (1) through (11), respectively; 
        and
          (2) by adding at the end the following:
          ``(12) Heavy duty vehicles.--
                  ``(A) In general.--Subject to subparagraphs 
                (B) and (C), in order to promote reduction of 
                fuel use and emissions because of engine 
                idling, the maximum gross vehicle weight limit 
                and the axle weight limit for any heavy-duty 
                vehicle equipped with an idle reduction 
                technology shall be increased by a quantity 
                necessary to compensate for the additional 
                weight of the idle reduction system.
                  ``(B) Maximum weight increase.--The weight 
                increase under subparagraph (A) shall be not 
                greater than 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.
  In title VIII, after section 810, insert the following and 
make the necessary conforming changes in the table of contents:

SEC. 811. HYDROGEN FUEL CELL BUSES.

  The Secretary of Energy, through the advanced vehicle 
technologies program, in coordination with the Secretary of 
Transportation, shall advance the development of fuel cell bus 
technologies by providing funding for 4 demonstration sites 
that--
          (1) have or will soon have hydrogen infrastructure 
        for fuel cell bus operation; and
          (2) are operated by entities with experience in the 
        development of fuel cell bus technologies, to enable 
        the widespread utilization of fuel cell buses.
Such demonstrations shall address the reliability of fuel cell 
heavy-duty vehicles, expense, infrastructure, containment, 
storage, safety, training, and other issues.
  In title IX, subtitle F, chapter 1, add at the end the 
following new sections:

SEC. 968A. 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 that might 
otherwise apply during the pendency of the demonstration 
project.

SEC. 968B. WESTERN HEMISPHERE ENERGY COOPERATION.

  (a) Program.--The Secretary shall carry out a program to 
promote cooperation on energy issues with Western Hemisphere 
countries.
  (b) Activities.--Under the program, the Secretary shall fund 
activities to work with Western Hemisphere countries to--
          (1) assist the countries in formulating and adopting 
        changes in economic policies and other policies to--
                  (A) increase the production of energy 
                supplies; and
                  (B) improve energy efficiency; and
          (2) assist in the development and transfer of energy 
        supply and efficiency technologies that would have a 
        beneficial impact on world energy markets.
  (c) University Participation.--To the extent practicable, the 
Secretary shall carry out the program under this section with 
the participation of universities so as to take advantage of 
the acceptance of universities by Western Hemisphere countries 
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 universities that involve the participation of 
        minority students, such as Hispanic-serving 
        institutions and Historically Black Colleges and 
        Universities.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section--
          (1) $8,000,000 for fiscal year 2006;
          (2) $10,000,000 for fiscal year 2007;
          (3) $13,000,000 for fiscal year 2008;
          (4) $16,000,000 for fiscal year 2009; and
          (5) $19,000,000 for fiscal year 2010.

SEC. 968C. ARCTIC ENGINEERING RESEARCH CENTER.

  (a) In General.--The Secretary of Energy (referred to in this 
section as the ``Secretary'') in consultation with the 
Secretary of Transportation 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 
        possible;
          (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. 968D. 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.
  In section 970(d), amend paragraph (3) to read as follows:

          (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.
  In section 1236, adding a new section 217 to the Federal 
Power Act, insert a period before the final closing quotation 
marks.

  In section 1252(a) and in section 1252(b), strike ``Public 
Utilities'' and insert ``Public Utility''.

  In section 1254(b)(1), in the amendment to section 112(b) of 
the Public Utility Regulatory Policies Act of 1978, strike 
``(3)(A)'' and insert ``(5)(A)''.

  In section 1254(b)(2), strike ``112(d) f'' and insert 
``112(d) of''.

  In title XII, in section 1274(a), after ``for'' strike 
``section'' and insert ``sections 1269 (relating to effect on 
other regulations), 1270 (relating to enforcement), 1271 
(relating to savings provisions), and''.

  In title XII, amend section 1298 to read as follows:

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.''.
  In section 1443, in the amendment adding subsection (d) to 
section 181 of the Clean Air Act, in paragraph (4), strike 
``If, no more than 18 months prior to the date of enactment of 
this subsection'' and insert ``If, after April 1, 2003'' and 
strike ``within 12 months after the date of enactment of this 
subsection''.

   In title XIV, in section 1446, strike ``as defined under 
section 2(a)(1)(A)'' and insert ``identified under section 
2(a)(1)(B)'' and strike ``2720(a)(1)(A)'' and insert 
``2720(a)(1)(B)''.

  In title XV, in section 1505(a), strike ``The review shall be 
completed no later than May 31, 2014'' and insert ``The review 
shall commence after May 31, 2013, and shall be completed no 
later than May 31, 2014''.

  In section 1505(b), strike ``No later'' and insert ``After 
completion of the review under subsection (a) and no later''.

  In section 1510, in subparagraph (G) of subsection (a)(2), 
after ``vehicle emission systems,'' insert ``on-road and off-
road diesel rules,'' and after ``imposed by'' insert ``the 
Federal Government,''.

  In section 1510(b)(1), strike ``2007'' and insert ``2009''.

  In title XV, in section 1530, in subsection (a) adding a new 
subsection (i) to section 9003 of the Solid Waste Disposal Act, 
strike subparagraph (G) of paragraph (1) of such new subsection 
(i) and insert a period at the end of subsection (b).

  In title XV, in section 1531, in the amendment adding new 
section 9014 to the Solid Waste Disposal Act, in paragraph 
(2)(C) strike ``9004(f)'' and insert ``9003(i), 9004(f),'' and 
in paragraph (2)(D) strike ``9011 and 9012'' and insert ``9010, 
9011, 9012, and 9013''.

  In section 1541(c)(2), strike ``preserves air quality 
standards'' and insert ``addresses air quality requirements''.

  In section 1541(c)(2), strike ``that results'' and insert 
``including that which has resulted''.

  In section 1541(c), insert the following new paragraph after 
paragraph (2) and redesignate the following paragraphs 
accordingly:

          (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 and 
        shall endeavor to avoid duplication of effort with 
        regard to such studies.
  In section 1541(c)(4) (as redesignated by the preceding 
amendment), strike the sentence beginning with ``The 
Administrator shall use sound''.

  In the heading of title XVII, insert ``--RESOURCES'' at the 
end (and amend the table of contents accordingly).

  In the heading of title XIX, insert ``--RESOURCES'' at the 
end (and amend the table of contents accordingly).

  Strike section 2026 (and amend the table of contents 
accordingly).

  In the heading of title XXI, insert ``--RESOURCES'' at the 
end (and amend the table of contents accordingly).

  Redesignate title XXV as title XXIV, and redesignate sections 
2501 through 2506 as sections 2401 through 2406, respectively 
(and amend the table of contents accordingly).

  Redesignate section 2601 as section 2055, and move it to the 
end of subtitle D of title XX.

  Redesignate section 2602 as section 112, and move it to the 
end of subtitle A of title I.

  Strike the remainder of title XXVI.
                              ----------                              


2. An Amendment To Be Offered by Representative Dingell of Michigan, or 
                 His Designee, Debatable for 20 Minutes

  Title XII of H.R. 6 is amended by striking sections 1201 
through 1235 and sections 1237 through 1298, by striking the 
title heading, by inserting the following before title XIII, by 
redesignating section 1236 (relating to native load service 
obligation) as section 1233 of the following and inserting such 
redesignated section 1233 after section 1232 of the following, 
and by making the necessary conforming changes in the table of 
contents:

                         TITLE XII--ELECTRICITY

SECTION 1201. SHORT TITLE.

  This title may be cited as the ``Electric Reliability 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 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 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).
  ``(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.
        The total amount of all dues, fees, and other charges 
        collected by the ERO in each of the fiscal years 2006 
        through 2015 and allocated under subparagraph (B) shall 
        not exceed $50,000,000.
  ``(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) Limitation on Annual Appropriations.--There is authorized 
to be appropriated not mroe than $50,000,000 per year for 
fiscal years 2006 through 2015 for all activities under the 
amendment made by subsection (a).

            Subtitle B--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 the following new 
section:

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

  ``(a) Transmission 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 such 
        unregulated transmitting utility provides transmission 
        services to itself and that are not unduly 
        discriminatory or preferential.
  ``(b) Exemption.--The Commission shall exempt from any rule 
or order under this section any unregulated transmitting 
utility that--
          ``(1) sells no more than 4,000,000 megawatt hours of 
        electricity per year; or
          ``(2) does not own or operate any transmission 
        facilities that are necessary for operating an 
        interconnected transmission system (or any portion 
        thereof); or
          ``(3) meets other criteria the Commission determines 
        to be in the public interest.
  ``(c) Local Distribution Facilities.--The requirements of 
subsection (a) shall not apply to facilities used in local 
distribution.
  ``(d) Exemption Termination.--Whenever the Commission, after 
an evidentiary hearing held upon 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 (b) 
unreasonably impairs the continued reliability of an 
interconnected transmission system, it shall revoke the 
exemption granted to that transmitting utility.
  ``(e) 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.
  ``(f) Remand.--In exercising its authority under paragraph 
(1) of subsection (a), the Commission may remand transmission 
rates to an unregulated transmitting utility for review and 
revision where necessary to meet the requirements of subsection 
(a).
  ``(g) Other Requests.--The provision of transmission services 
under subsection (a) does not preclude a request for 
transmission services under section 211.
  ``(h) 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 (26 U.S.C. 141).
  ``(i) 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 an RTO or 
any other Commission-approved independent transmission 
organization designated to provide nondiscriminatory 
transmission access.
  ``(j) Definition.--For purposes of 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).''.

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION 
                    ORGANIZATIONS.

  (a) Definitions.--For purposes of this section--
          (1) Appropriate federal regulatory authority.--The 
        term ``appropriate Federal regulatory authority'' 
        means--
                  (A) with respect to a Federal power marketing 
                agency (as defined in the Federal Power Act), 
                the Secretary of Energy, 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 that 
                Federal power marketing agency; and
                  (B) with respect to the Tennessee Valley 
                Authority, the Board of Directors of the 
                Tennessee Valley Authority.
          (2) Federal utility.--The term ``Federal utility'' 
        means a Federal power marketing agency or the Tennessee 
        Valley Authority.
          (3) Transmission system.--The term ``transmission 
        system'' means electric transmission facilities owned, 
        leased, or contracted for by the United States and 
        operated by a Federal utility.
  (b) Transfer.--The appropriate Federal regulatory authority 
is authorized to enter into a contract, agreement or other 
arrangement transferring control and use of all or part of the 
Federal utility's transmission system to an RTO or ISO (as 
defined in the Federal Power Act), approved by the Federal 
Energy Regulatory Commission. Such 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 necessary or appropriate, including 
        standards that assure recovery of all the Federal 
        utility's costs and expenses related to the 
        transmission facilities that are the subject of the 
        contract, agreement or other arrangement; consistency 
        with existing contracts and third-party financing 
        arrangements; and consistency with said Federal 
        utility's statutory authorities, obligations, and 
        limitations;
          (2) provisions for monitoring and oversight by the 
        Federal utility of the RTO's or ISO's fulfillment of 
        the 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 regional 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 RTO or ISO and terminate the 
        contract, agreement or other arrangement in accordance 
        with its terms.
Neither this section, actions taken pursuant to it, nor any 
other transaction of a Federal utility using an RTO or ISO 
shall confer upon the Federal Energy Regulatory Commission 
jurisdiction or authority over the Federal utility's electric 
generation assets, electric capacity or energy that the Federal 
utility is authorized by law to market, or the Federal 
utility's power sales activities.
  (c) 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 its transmission system shall be construed to 
        prohibit a transfer of control and use of its 
        transmission system pursuant to, and subject to all 
        requirements of subsection (b).
          (2) Other obligations.--This subsection shall not be 
        construed to--
                  (A) suspend, or exempt any Federal utility 
                from, any provision of existing Federal law, 
                including but not limited to any requirement or 
                direction relating to the use of the Federal 
                utility's transmission system, environmental 
                protection, fish and wildlife protection, flood 
                control, navigation, water delivery, or 
                recreation; or
                  (B) authorize abrogation of any contract or 
                treaty obligation.
          (3) Repeal.--Section 311 of title III of Appendix B 
        of the Act of October 27, 2000 (P.L. 106-377, section 
        1(a)(2); 114 Stat. 1441, 1441A-80; 16 U.S.C. 824n) is 
        repealed.

                    Subtitle C--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 Utilities 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 
by adding at the end the following:
          ``(14) Time-based metering and communications.--
                  ``(A) Not later than 18 months after the date 
                of enactment of this paragraph, each electric 
                utility shall offer each of its customer 
                classes, and provide individual customers upon 
                customer request, a time-based rate schedule 
                under which the rate charged by the electric 
                utility varies during different time periods 
                and reflects the variance, if any, in the 
                utility's costs of generating and purchasing 
                electricity at the wholesale level. The time-
                based rate schedule shall enable the electric 
                consumer to manage energy use and cost through 
                advanced metering and communications 
                technology.
                  ``(B) The types of time-based rate schedules 
                that may be offered under the schedule referred 
                to in subparagraph (A) include, among others--
                          ``(i) time-of-use pricing whereby 
                        electricity prices are set for a 
                        specific time period on an advance or 
                        forward basis, typically not changing 
                        more often than twice a year, based on 
                        the utility's cost of generating and/or 
                        purchasing such electricity at the 
                        wholesale level for the benefit of the 
                        consumer. Prices paid for energy 
                        consumed during these periods shall be 
                        pre-established and known to consumers 
                        in advance of such consumption, 
                        allowing them to vary their demand and 
                        usage in response to such prices and 
                        manage their energy costs by shifting 
                        usage to a lower cost period or 
                        reducing their consumption overall;
                          ``(ii) critical peak pricing whereby 
                        time-of-use prices are in effect except 
                        for certain peak days, when prices may 
                        reflect the costs of generating and/or 
                        purchasing electricity at the wholesale 
                        level and when consumers may receive 
                        additional discounts for reducing peak 
                        period energy consumption; and
                          ``(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.
                  ``(C) Each electric utility subject to 
                subparagraph (A) shall provide each customer 
                requesting a time-based rate with a time-based 
                meter capable of enabling the utility and 
                customer to offer and receive such rate, 
                respectively.
                  ``(D) For purposes of implementing this 
                paragraph, any reference contained in this 
                section to the date of enactment of the Public 
                Utility Regulatory Policies Act of 1978 shall 
                be deemed to be a reference to the date of 
                enactment of this paragraph.
                  ``(E) In a State that permits third-party 
                marketers to sell electric energy to retail 
                electric consumers, such consumers shall be 
                entitled to receive the same time-based 
                metering and communications device and service 
                as a retail electric consumer of the electric 
                utility.
                  ``(F) Notwithstanding subsections (b) and (c) 
                of section 112, each State regulatory authority 
                shall, not later than 18 months after the date 
                of enactment of this paragraph conduct an 
                investigation in accordance with section 115(i) 
                and issue a decision whether it is appropriate 
                to implement the standards set out in 
                subparagraphs (A) and (C).''.
  (b) State Investigation of Demand Response and Time-Based 
Metering.--Section 115 of the Public Utilities Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
          (1) By inserting in subsection (b) after the phrase 
        ``the standard for time-of-day rates established by 
        section 111(d)(3)'' the following: ``and the standard 
        for time-based metering and communications established 
        by section 111(d)(14)''.
          (2) By inserting in subsection (b) after the phrase 
        ``are likely to exceed the metering'' the following: 
        ``and communications''.
          (3) By adding 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 of Energy 
        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; and
                  (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.
  (f) Federal Encouragement of Demand Response Devices.--It is 
the policy of the United States that time-based pricing and 
other forms of demand response, whereby electricity customers 
are provided with electricity price signals and the ability to 
benefit by responding to them, shall be encouraged, and the 
deployment of such technology and devices that enable 
electricity customers to participate in such pricing and demand 
response systems shall be facilitated. 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).''.

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

SEC. 1282. 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. 221. PROHIBITION ON FILING FALSE INFORMATION.

  ``No person or other 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 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 such Federal 
agency.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

  ``(a) Prohibition.--No person or other entity (including an 
entity described in section 201(f)) shall willfully and 
knowingly enter into any contract or other arrangement to 
execute a `round trip trade' for the purchase or sale of 
electric energy at wholesale.
  ``(b) Definition.--For the purposes of this section, the term 
`round trip trade' means a transaction, or combination of 
transactions, in which a person or any other entity--
          ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other 
        entity electric energy at wholesale;
          ``(2) simultaneously with entering into the contract 
        or arrangement described in paragraph (1), arranges a 
        financially offsetting trade with such other person or 
        entity for the same such electric energy, at the same 
        location, price, quantity and terms so that, 
        collectively, the purchase and sale transactions in 
        themselves result in no financial gain or loss; and
          ``(3) enters into the contract or arrangement with a 
        specific intent to fraudulently affect reported 
        revenues, trading volumes, or prices.''.

SEC. 1283. FRAUDULENT OR MANIPULATIVE PRACTICES.

  (a) Unlawful Acts.--It shall be unlawful for any entity, 
directly or indirectly, by the use of any means or 
instrumentality of interstate commerce or of the mails to use 
or employ, in 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, or the sale in interstate commerce of 
natural gas for resale for ultimate public consumption for 
domestic, commercial, industrial, or any other use, any 
fraudulent, manipulative, or deceptive device or contrivance in 
contravention of such rules and regulations as the Federal 
Energy Regulatory Commission may prescribe as necessary or 
appropriate in the public interest.
  (b) Application of Federal Power Act to This Act.--The 
provisions of section 307 through 309 and 313 through 317 of 
the Federal Power Act shall apply to violations of the Electric 
Reliability Act of 2005 in the same manner and to the same 
extent as such provisions apply to entities subject to Part II 
of the Federal Power Act.

SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC UNDER FEDERAL POWER 
                    ACT.

   Part III of the Federal Power Act is amended by inserting 
the following new section after section 319 and by 
redesignating sections 320 and 321 as sections 321 and 322, 
respectively:

``SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, ETC.

  ``(a) Rule Required for Certain Waivers, Exemptions, Etc.--
Not later than 6 months after the enactment of this Act, the 
Commission shall promulgate a rule establishing specific 
criteria for providing an exemption, waiver, or other reduced 
or abbreviated form of compliance with the requirements of 
sections 204, 301, 304, and 305 (including any prospective 
blanket order). Such criteria shall be sufficient to insure 
that any such action taken by the Commission will be consistent 
with the purposes of such requirements and will otherwise 
protect the public interest.
  ``(b) Moratorium on Certain Waivers, Exemptions, Etc.--After 
the date of enactment of this section, the Commission may not 
issue, adopt, order, approve, or promulgate any exemption, 
waiver, or other reduced or abbreviated form of compliance with 
the requirements of section 204, 301, 304, or 305 (including 
any prospective blanket order) until after the rule promulgated 
under subsection (a) has taken effect.
  ``(c) Previous Ferc Action.--The Commission shall undertake a 
review, by rule or order, of each exemption, waiver, or other 
reduced or abbreviated form of compliance described in 
subsection (a) that was taken before the date of enactment of 
this section. No such action may continue in force and effect 
after the date 18 months after the date of enactment of this 
section unless the Commission finds that such action complies 
with the rule under subsection (a).
  ``(d) Exemption Under 204(f) not Applicable.--For purposes of 
this section, in applying section 204, the provisions of 
section 204(f) shall not apply.''.

SEC. 1285. REPORTING REQUIREMENTS IN ELECTRIC POWER SALES AND 
                    TRANSMISSION.

  (a) Audit Trails.--Section 304 of the Federal Power Act is 
amended by adding the following new subsection at the end 
thereof:
  ``(c)(1) The Commission shall, by rule or order, require each 
person or other entity engaged in the transmission of electric 
energy in interstate commerce or the sale of electric energy at 
wholesale in interstate commerce, and each broker, dealer, and 
power marketer involved in any such transmission or sale, to 
maintain, and periodically submit to the Commission, such 
records, in electronic form, of each transaction relating to 
such transmission or sale as may be necessary to determine 
whether any person has employed any fraudulent, manipulative, 
or deceptive device or contrivance in contravention of rules 
promulgated by the Commission.
          ``(2) Section 201(f) shall not limit the application 
        of this subsection.''.
  (b) Natural Gas.--Section 8 of the Natural Gas Act is amended 
by adding the following new subsection at the end thereof:
  ``(d) The Commission shall, by rule or order, require each 
person or other entity engaged in the transportation of natural 
gas in interstate commerce, or the sale in interstate commerce 
of natural gas for resale for ultimate public consumption for 
domestic, commercial, industrial, or any other use, and each 
broker, dealer, and power marketer involved in any such 
transportation or sale, to maintain, and periodically submit to 
the Commission, such records, in electronic form, of each 
transaction relating to such transmission or sale as may be 
necessary to determine whether any person has employed any 
fraudulent, manipulative, or deceptive device or contrivance in 
contravention of rules promulgated by the Commission.''.

SEC. 1286. TRANSPARENCY.

  (a) Definition.--As used in this section the term ``electric 
power or natural gas information processor'' means any person 
engaged in the business of--
          (1) collecting, processing, or preparing for 
        distribution or publication, or assisting, 
        participating in, or coordinating the distribution or 
        publication of, information with respect to 
        transactions in or quotations involving the purchase or 
        sale of electric power, natural gas, the transmission 
        of electric energy, or the transportation of natural 
        gas, or
          (2) distributing or publishing (whether by means of a 
        ticker tape, a communications network, a terminal 
        display device, or otherwise) on a current and 
        continuing basis, information with respect to such 
        transactions or quotations.
The term does not include any bona fide newspaper, news 
magazine, or business or financial publication of general and 
regular circulation, any self-regulatory organization, any 
bank, broker, dealer, building and loan, savings and loan, or 
homestead association, or cooperative bank, if such bank, 
broker, dealer, association, or cooperative bank would be 
deemed to be an electric power or natural gas information 
processor solely by reason of functions performed by such 
institutions as part of customary banking, brokerage, dealing, 
association, or cooperative bank activities, or any common 
carrier, as defined in section 3 of the Communications Act of 
1934, subject to the jurisdiction of the Federal Communications 
Commission or a State commission, as defined in section 3 of 
that Act, unless the Commission determines that such carrier is 
engaged in the business of collecting, processing, or preparing 
for distribution or publication, information with respect to 
transactions in or quotations involving the purchase or sale of 
electric power, natural gas, the transmission of electric 
energy, or the transportation of natural gas.
  (b) Prohibition.--No electric power or natural gas 
information processor may make use of the mails or any means or 
instrumentality of interstate commerce--
          (1) to collect, process, distribute, publish, or 
        prepare for distribution or publication any information 
        with respect to quotations for, or transactions 
        involving the purchase or sale of electric power, 
        natural gas, the transmission of electric energy, or 
        the transportation of natural gas, or
          (2) to assist, participate in, or coordinate the 
        distribution or publication of such information in 
        contravention of such rules and regulations as the 
        Federal Energy Regulatory Commission shall prescribe as 
        necessary or appropriate in the public interest to
                  (A) prevent the use, distribution, or 
                publication of fraudulent, deceptive, or 
                manipulative information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas;
                  (B) assure the prompt, accurate, reliable, 
                and fair collection, processing, distribution, 
                and publication of information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas, and the 
                fairness and usefulness of the form and content 
                of such information;
                  (C) assure that all such information 
                processors may, for purposes of distribution 
                and publication, obtain on fair and reasonable 
                terms such information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas as is 
                collected, processed, or prepared for 
                distribution or publication by any exclusive 
                processor of such information acting in such 
                capacity;
                  (D) assure that, subject to such limitations 
                as the Commission, by rule, may impose as 
                necessary or appropriate for the maintenance of 
                fair and orderly markets, all persons may 
                obtain on terms which are not unreasonably 
                discriminatory such information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas as is 
                published or distributed by any electric power 
                or natural gas information processor;
                  (E) assure that all electricity and natural 
                gas electronic communication networks transmit 
                and direct orders for the purchase and sale of 
                electricity or natural gas in a manner 
                consistent with the establishment and operation 
                of an efficient, fair, and orderly market 
                system for electricity and natural gas; and
                  (F) assure equal regulation of all markets 
                involving the purchase or sale of electric 
                power, natural gas, the transmission of 
                electric energy, or the transportation of 
                natural gas and all persons effecting 
                transactions involving the purchase or sale of 
                electric power, natural gas, the transmission 
                of electric energy, or the transportation of 
                natural gas.
  (c) Related Commodities.--For purposes of this section, the 
phrase ``purchase or sale of electric power, natural gas, the 
transmission of electric energy, or the transportation of 
natural gas'' includes the purchase or sale of any commodity 
(as defined in the Commodities Exchange Act) relating to any 
such purchase or sale if such commodity is excluded from 
regulation under the Commodities Exchange Act pursuant to 
section 2 of that Act.
  (d) Prohibition.--No person who owns, controls, or is under 
the control or ownership of a public utility, a natural gas 
company, or a public utility holding company may own, control, 
or operate any electronic computer network or other mulitateral 
trading facility utilized to trade electricity or natural gas.

SEC. 1287. PENALTIES.

  (a) Criminal Penalties.--Section 316 of the Federal Power Act 
(16 U.S.C. 825o(c)) is amended as follows:
          (1) By striking ``$5,000'' in subsection (a) and 
        inserting ``$5,000,000 for an individual and 
        $25,000,000 for any other defendant'' and by striking 
        out ``two years'' and inserting ``five years'' .
          (2) By striking ``$500'' in subsection (b) and 
        inserting ``$1,000,000''.
          (3) By striking subsection (c).
  (b) Civil Penalties.--Section 316A of the Federal Power Act 
(16 U.S.C. 825o091) is amended as follows:
          (1) By striking ``section 211, 212, 213, or 214'' 
        each place it appears and inserting ``Part II''.
          (2) By striking ``$10,000 for each day that such 
        violation continues'' and inserting ``the greater of 
        $1,000,000 or three times the profit made or gain or 
        loss avoided by reason of such violation''.
          (3) By adding the following at the end thereof:
  ``(c) Authority of a Court to Prohibit Persons From Certain 
Activities.--In any proceeding under this section, the court 
may censure, place limitations on the activities, functions, or 
operations of, suspend or revoke the ability of any entity 
(without regard to section 201(f)) to participate in the 
transmission of electric energy in interstate commerce or the 
sale of electric energy at wholesale in interstate commerce if 
it finds that such censure, placing of limitations, suspension, 
or revocation is in the public interest and that one or more of 
the following applies to such entity:
          ``(1) Such entity has willfully made or caused to be 
        made in any application or report required to be filed 
        with the Commission or with any other appropriate 
        regulatory agency, or in any proceeding before the 
        Commission, any statement which was at the time and in 
        the light of the circumstances under which it was made 
        false or misleading with respect to any material fact, 
        or has omitted to state in any such application or 
        report any material fact which is required to be stated 
        therein.
          ``(2) Such entity has been convicted of any felony or 
        misdemeanor or of a substantially equivalent crime by a 
        foreign court of competent jurisdiction which the court 
        finds--
                  ``(A) involves the purchase or sale of 
                electricity, the taking of a false oath, the 
                making of a false report, bribery, perjury, 
                burglary, any substantially equivalent activity 
                however denominated by the laws of the relevant 
                foreign government, or conspiracy to commit any 
                such offense;
                  ``(B) arises out of the conduct of the 
                business of transmitting electric energy in 
                interstate commerce or selling or purchasing 
                electric energy at wholesale in interstate 
                commerce;
                  ``(C) involves the larceny, theft, robbery, 
                extortion, forgery, counterfeiting, fraudulent 
                concealment, embezzlement, fraudulent 
                conversion, or misappropriation of funds, or 
                securities, or substantially equivalent 
                activity however denominated by the laws of the 
                relevant foreign government; or
                  ``(D) involves the violation of section 152, 
                1341, 1342, or 1343 or chapter 25 or 47 of 
                title 18, United States Code, or a violation of 
                a substantially equivalent foreign statute.
          ``(3) Such entity is permanently or temporarily 
        enjoined by order, judgment, or decree of any court of 
        competent jurisdiction from acting as an investment 
        adviser, underwriter, broker, dealer, municipal 
        securities dealer, government securities broker, 
        government securities dealer, transfer agent, foreign 
        person performing a function substantially equivalent 
        to any of the above, or entity or person required to be 
        registered under the Commodity Exchange Act or any 
        substantially equivalent foreign statute or regulation, 
        or as an affiliated person or employee of any 
        investment company, bank, insurance company, foreign 
        entity substantially equivalent to any of the above, or 
        entity or person required to be registered under the 
        Commodity Exchange Act or any substantially equivalent 
        foreign statute or regulation, or from engaging in or 
        continuing any conduct or practice in connection with 
        any such activity, or in connection with the purchase 
        or sale of any security.
          ``(4) Such entity has willfully violated any 
        provision of this Act.
          ``(5) Such entity has willfully aided, abetted, 
        counseled, commanded, induced, or procured the 
        violation by any other person of any provision of this 
        Act, or has failed reasonably to supervise, with a view 
        to preventing violations of the provisions of this Act, 
        another person who commits such a violation, if such 
        other person is subject to his supervision. For the 
        purposes of this paragraph no person shall be deemed to 
        have failed reasonably to supervise any other person, 
        if--
                  ``(A) there have been established procedures, 
                and a system for applying such procedures, 
                which would reasonably be expected to prevent 
                and detect, insofar as practicable, any such 
                violation by such other person, and
                  ``(B) such person has reasonably discharged 
                the duties and obligations incumbent upon him 
                by reason of such procedures and system without 
                reasonable cause to believe that such 
                procedures and system were not being complied 
                with.
          ``(6) Such entity has been found by a foreign 
        financial or energy regulatory authority to have--
                  ``(A) made or caused to be made in any 
                application or report required to be filed with 
                a foreign regulatory authority, or in any 
                proceeding before a foreign financial or energy 
                regulatory authority, any statement that was at 
                the time and in the light of the circumstances 
                under which it was made false or misleading 
                with respect to any material fact, or has 
                omitted to state in any application or report 
                to the foreign regulatory authority any 
                material fact that is required to be stated 
                therein;
                  ``(B) violated any foreign statute or 
                regulation regarding the transmission or sale 
                of electricity or natural gas;
                  ``(C) aided, abetted, counseled, commanded, 
                induced, or procured the violation by any 
                person of any provision of any statutory 
                provisions enacted by a foreign government, or 
                rules or regulations thereunder, empowering a 
                foreign regulatory authority regarding 
                transactions in electricity or natural gas, or 
                contracts of sale of electricity or natural 
                gas, traded on or subject to the rules of a 
                contract market or any board of trade, or has 
                been found, by a foreign regulatory authority, 
                to have failed
        reasonably to supervise, with a view to preventing 
        violations of such statutory provisions, rules, and 
        regulations, another person who commits such a 
        violation, if such other person is subject to his 
        supervision.
          ``(7) Such entity is subject to any final order of a 
        State commission (or any agency or officer performing 
        like functions), State authority that supervises or 
        examines banks, savings associations, or credit unions, 
        State insurance commission (or any agency or office 
        performing like functions), an appropriate Federal 
        banking agency (as defined in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(q))), or the 
        National Credit Union Administration, that--
                  ``(A) bars such person from association with 
                an entity regulated by such commission, 
                authority, agency, or officer, or from engaging 
                in the business of securities, insurance, 
                banking, savings association activities, or 
                credit union activities; or
                  ``(B) constitutes a final order based on 
                violations of any laws or regulations that 
                prohibit fraudulent, manipulative, or deceptive 
                conduct.''
          (4) Such entity is subject to statutory 
        disqualification within the meaning of section 3(a)(39) 
        of the Securities Exchange Act of 1934.
  (c) Natural Gas Act Penalties.--Section 21 of the Natural Gas 
Act is amended by adding the following new subsection at the 
end thereof:
  ``(c) Authority of a Court to Prohibit Persons From Certain 
Activities.--In any proceeding under this section, the court 
may censure, place limitations on the activities, functions, or 
operations of, suspend or revoke the ability of any entity 
(without regard to section 201(f)) to participate in the 
transportation of natural gas in interstate commerce, or the 
sale in interstate commerce of natural gas for resale for 
ultimate public consumption for domestic, commercial, 
industrial, or any other use if it finds that such censure, 
placing of limitations, suspension, or revocation is in the 
public interest and that one or more of the following applies 
to such entity:
          ``(1) Such entity has willfully made or caused to be 
        made in any application or report required to be filed 
        with the Commission or with any other appropriate 
        regulatory agency, or in any proceeding before the 
        Commission, any statement which was at the time and in 
        the light of the circumstances under which it was made 
        false or misleading with respect to any material fact, 
        or has omitted to state in any such application or 
        report any material fact which is required to be stated 
        therein.
          ``(2) Such entity has been convicted of any felony or 
        misdemeanor or of a substantially equivalent crime by a 
        foreign court of competent jurisdiction which the court 
        finds--
                  ``(A) involves the purchase or sale of 
                natural gas, the taking of a false oath, the 
                making of a false report, bribery, perjury, 
                burglary, any substantially equivalent activity 
                however denominated by the laws of the relevant 
                foreign government, or conspiracy to commit any 
                such offense;
                  ``(B) arises out of the conduct of the 
                business of transmitting natural gas in 
                interstate commerce, or the selling in 
                interstate commerce of natural gas for resale 
                for ultimate public consumption for domestic, 
                commercial, industrial, or any other use;
                  ``(C) involves the larceny, theft, robbery, 
                extortion, forgery, counterfeiting, fraudulent 
                concealment, embezzlement, fraudulent 
                conversion, or misappropriation of funds, or 
                securities, or substantially equivalent 
                activity however denominated by the laws of the 
                relevant foreign government; or
                  ``(D) involves the violation of section 152, 
                1341, 1342, or 1343 or chapter 25 or 47 of 
                title 18, United States Code, or a violation of 
                a substantially equivalent foreign statute.
          ``(3) Such entity is permanently or temporarily 
        enjoined by order, judgment, or decree of any court of 
        competent jurisdiction from acting as an investment 
        adviser, underwriter, broker, dealer, municipal 
        securities dealer, government securities broker, 
        government securities dealer, transfer agent, foreign 
        person performing a function substantially equivalent 
        to any of the above, or entity or person required to be 
        registered under the Commodity Exchange Act or any 
        substantially equivalent foreign statute or regulation, 
        or as an affiliated person or employee of any 
        investment company, bank, insurance company, foreign 
        entity substantially equivalent to any of the above, or 
        entity or person required to be registered under the 
        Commodity Exchange Act or any substantially equivalent 
        foreign statute or regulation, or from engaging in or 
        continuing any conduct or practice in connection with 
        any such activity, or in connection with the purchase 
        or sale of any security.
          ``(4) Such entity has willfully violated any 
        provision of this Act.
          ``(5) Such entity has willfully aided, abetted, 
        counseled, commanded, induced, or procured the 
        violation by any other person of any provision of this 
        Act, or has failed reasonably to supervise, with a view 
        to preventing violations of the provisions of this Act, 
        another person who commits such a violation, if such 
        other person is subject to his supervision. For the 
        purposes of this paragraph no person shall be deemed to 
        have failed reasonably to supervise any other person, 
        if--
                  ``(A) there have been established procedures, 
                and a system for applying such procedures, 
                which would reasonably be expected to prevent 
                and detect, insofar as practicable, any such 
                violation by such other person, and
                  ``(B) such person has reasonably discharged 
                the duties and obligations incumbent upon him 
                by reason of such procedures and system without 
                reasonable cause to believe that such 
                procedures and system were not being complied 
                with.
          ``(6) Such entity has been found by a foreign 
        financial or energy regulatory authority to have--
                  ``(A) made or caused to be made in any 
                application or report required to be filed with 
                a foreign regulatory authority, or in any 
                proceeding before a foreign financial or energy 
                regulatory authority, any statement that was at 
                the time and in the light of the circumstances 
                under which it was made false or misleading 
                with respect to any material fact, or has 
                omitted to state in any application or report 
                to the foreign regulatory authority any 
                material fact that is required to be stated 
                therein;
                  ``(B) violated any foreign statute or 
                regulation regarding the transmission or sale 
                of electricity or natural gas;
                  ``(C) aided, abetted, counseled, commanded, 
                induced, or procured the violation by any 
                person of any provision of any statutory 
                provisions enacted by a foreign government, or 
                rules or regulations thereunder, empowering a 
                foreign regulatory authority regarding 
                transactions in electricity or natural gas, or 
                contracts of sale of electricity or natural 
                gas, traded on or subject to the rules of a 
                contract market or any board of trade, or has 
                been found, by a foreign regulatory authority, 
                to have failed reasonably to supervise, with a 
                view to preventing violations of such statutory 
                provisions, rules, and regulations, another 
                person who commits such a violation, if such 
                other person is subject to his supervision.
          ``(7) Such entity is subject to any final order of a 
        State commission (or any agency or officer performing 
        like functions), State authority that supervises or 
        examines banks, savings associations, or credit unions, 
        State insurance commission (or any agency or office 
        performing like functions), an appropriate Federal 
        banking agency (as defined in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(q))), or the 
        National Credit Union Administration, that--
                  ``(A) bars such person from association with 
                an entity regulated by such commission, 
                authority, agency, or officer, or from engaging 
                in the business of securities, insurance, 
                banking, savings association activities, or 
                credit union activities; or
                  ``(B) constitutes a final order based on 
                violations of any laws or regulations that 
                prohibit fraudulent, manipulative, or deceptive 
                conduct.
          ``(8) Such entity is subject to statutory 
        disqualification within the meaning of section 3(a)(39) 
        of the Securities Exchange Act of 1934.''.

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS.

   Not later than 12 months after the enactment of this Act the 
Securities and Exchange Commission shall review each exemption 
granted to any person under section 3(a) of the Public Utility 
Holding Company Act of 1935 and shall review the action of 
persons operating pursuant to a claim of exempt status under 
section 3 to determine if such exemptions and claims are 
consistent with the requirements of such section 3(a) and 
whether or not such exemptions or claims of exemption should 
continue in force and effect.

SEC. 1289. REVIEW OF ACCOUNTING FOR CONTRACTS INVOLVED IN ENERGY 
                    TRADING.

  Not later than 12 months after the enactment of this Act, the 
Comptroller General of the United States shall submit to the 
Congress a report of the results of its review of accounting 
for contracts in energy trading and risk management activities. 
The review and report shall include, among other issues, the 
use of mark-to-market accounting and when gains and losses 
should be recognized, with a view toward improving the 
transparency of energy trading activities for the benefit of 
investors, consumers, and the integrity of these markets.

SEC. 1290. PROTECTION OF FERC REGULATED SUBSIDIARIES.

   Section 205 of the Federal Power Act is amended by adding 
after subsection (f) the following new subsection:
  ``(g) Rules and Procedures to Protect Consumers of Public 
Utilities.--Not later than 9 months after the date of enactment 
of this Act, the Commission shall adopt rules and procedures 
for the protection of electric consumers from self-dealing, 
interaffiliate abuse, and other harmful actions taken by 
persons owning or controlling public utilities. Such rules 
shall ensure that no asset of a public utility company shall be 
used as collateral for indebtedness incurred by the holding 
company of, and any affiliate of, such public utility company, 
and no public utility shall acquire or own any securities of 
the holding company or other affiliates of the holding company 
unless the Commission has determined that such acquisition or 
ownership is consistent with the public interest and the 
protection of consumers of such public utility.''.

SEC. 1291. REFUNDS UNDER THE FEDERAL POWER ACT.

   Section 206(b) of the Federal Power Act is amended as 
follows:
          (1) By amending the first sentence to read as 
        follows: ``In any proceeding under this section, the 
        refund effective date shall be the date of the filing 
        of a complaint or the date of the Commission motion 
        initiating the proceeding, except that in the case of a 
        complaint with regard to market-based rates, the 
        Commission may establish an earlier refund effective 
        date.''.
          (2) By striking the second and third sentences.
          (3) By striking out ``the refund effective date or 
        by'' and ``, whichever is earlier,'' in the fifth 
        sentence.
          (4) In the seventh sentence by striking ``through a 
        date fifteen months after such refund effective date'' 
        and insert ``and prior to the conclusion of the 
        proceeding'' and by striking the proviso.

SEC. 1292. ACCOUNTS AND REPORTS.

   Section 318 of the Federal Power Act is amended by adding 
the following at the end thereof: ``This section shall not 
apply to sections 301 and 304 of this Act.''.

SEC. 1293. MARKET-BASED RATES.

   Section 205 of the Federal Power Act is amended by adding 
the following new subsection at the end thereof:
  ``(g) For each public utility granted the authority by the 
Commission to sell electric energy at market-based rates, the 
Commission shall review the activities and characteristics of 
such utility not less frequently than annually to determine 
whether such rates are just and reasonable. Each such utility 
shall notify the Commission promptly of any change in the 
activities and characteristics relied upon by the Commission in 
granting such public utility the authority to sell electric 
energy at market-based rates. If the Commission finds that:
          ``(1) a rate charged by a public utility authorized 
        to sell electric energy at market-based rates is 
        unjust, unreasonable, unduly discriminatory or 
        preferential,
          ``(2) the public utility has intentionally engaged in 
        an activity that violates any other rule, tariff, or 
        order of the Commission, or
          ``(3) any violation of the Electric Reliability Act 
        of 2005,
the Commission shall issue an order immediately modifying or 
revoking the authority of that public utility to sell electric 
energy at market-based rates.''.

SEC. 1294. ENFORCEMENT.

  (a) Complaints.--Section 306 of the Federal Power Act (16 
U.S.C. 825e) is amended as follows:
          (1) By inserting ``electric utility,'' after ``Any 
        person,''.
          (2) By inserting ``, transmitting utility,'' after 
        ``licensee'' each place it appears.
  (b) Review of Commission Orders.--Section 313(a) of the 
Federal Power Act (16 U.S.C. 8251) 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''.
  (c) Investigations.--Section 307(a) of the Federal Power Act 
(16 U.S.C. 825f(a)) is amended as follows:
          (1) By inserting ``, electric utility, transmitting 
        utility, or other entity'' after ``person'' each time 
        it appears.
          (2) By striking the period at the end of the first 
        sentence and inserting 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.''.

SEC. 1295. 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).
  ``(d) The Commission shall, by rule or order, require each 
person or other entity engaged in the transportation of natural 
gas in interstate commerce, or the sale in interstate commerce 
of natural gas for resale for ultimate public consumption for 
domestic, commercial, industrial, or any other use, and each 
broker, dealer, and power marketer involved in any such 
transportation or sale, to maintain, and periodically submit to 
the Commission, such records, in electronic form, of each 
transaction relating to such transmission or sale as may be 
necessary to determine whether any person has employed any 
fraudulent, manipulative, or deceptive device or contrivance in 
contravention of rules promulgated by the Commission.''.

SEC. 1296. SAVINGS PROVISION.

  Nothing in this title or in any amendment made by this title 
shall be construed to affect the authority of any court to make 
a determination in any proceeding commenced before the 
enactment of this Act regarding the authority of the Federal 
Energy Regulatory Commission to permit any person to sell or 
distribute electric energy at market-based rates.

       3. An Amendment To Be Offered by Representative Markey of 
        Massachusetts, or His Designee, Debatable for 30 Minutes

    Strike title XXII.
                              ----------                              


 4. An Amendment To Be Offered by Representative Boehlert of New York, 
               or His Designee, Debatable for 20 Minutes

  In title VII, at the end of subtitle E, add the following:

SEC. 775. AVERAGE FUEL ECONOMY STANDARDS.

  (a) Purpose.--The purpose of this section is to seek to save 
each year after 2014 10 percent of the oil that would otherwise 
be used for fuel by automobiles in the United States if average 
fuel economy standards remained at the same level as the 
standards that apply for model year 2007.
  (b) In General.--Section 32902 of title 49, United States 
Code, is amended by redesignating subsections (i) and (j) in 
order as subsections (j) and (k), and by inserting after 
subsection (h) the following:
  ``(i)  Standards for Model Years After 2007.--The Secretary 
of Transportation shall prescribe by regulation average fuel 
economy standards for automobiles manufactured by a 
manufacturer in model years after model year 2007, that shall--
          ``(1) ensure that the average fuel economy achieved 
        by automobiles manufactured by a manufacturer in model 
        years after 2014 is no less than 33 miles per gallon;
          ``(2) ensure that improvements to fuel economy 
        standards do not degrade the safety of automobiles 
        manufactured by a manufacturer; and
          ``(3) maximize the retention of jobs in the 
        automobile manufacturing sector of the United 
        States.''.
  (c) Conforming Amendments.--Such section is further amended--
          (1) in subsection (c)(1) in the first sentence by 
        inserting ``and subsection (i)'' after ``of this 
        subsection''; and
          (2) in subsection (k) (as redesignated by subsection 
        (a)) by striking ``or (g)'' and inserting ``(g), or 
        (i)''.
                              ----------                              


5. An Amendment To Be Offered by Representative Johnson of Connecticut, 
               or Her Designee, Debatable for 10 Minutes

  In title VII, subtitle E, add at the end the following new 
section:

SEC. 775. UPDATE TESTING PROCEDURES.

  The Administrator of the Environmental Protection Agency 
shall update or revise test procedures, Subpart B_Fuel Economy 
Regulations for 1978 and Later Model Year Automobiles-Test 
Procedures 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.
                              ----------                              


6. An Amendment To Be Offered by Representative Rogers of Michigan, or 
  His Designee, as an Amendment to the Amendment Numbered ___, To Be 
  Offered by Representative Johnson of Connecticut, Debatable for 10 
                                Minutes

  In the matter proposed to be inserted by the amendment, 
strike ``test procedures'' and all that follows through ``Later 
Model Year Automobiles-Test Procedures'' and insert ``the 
adjustment factors in sections''.
                              ----------                              


7. An Amendment To Be Offered by Representative Bishop of New York, or 
                 His Designee, Debatable for 30 Minutes

  In section 109(2), at the end of the quoted material insert 
the following new paragraph:

          ``(4) All housing constructed under the military 
        housing privatization initiative of the Department of 
        Defense shall, to the maximum extent practicable--
                  ``(A) meet Federal building energy efficiency 
                standards under this section; and
                  ``(B) include Energy Star appliances.
  In title I, subtitle A, add at the end the following new 
section:

SEC. 112. MODEL BUILDING ENERGY CODE COMPLIANCE GRANT PROGRAM.

  (a) In General.--The Secretary shall carry out a program to 
provide grants to each State that the Secretary determines, 
with respect to new buildings in the State, achieves at least a 
90-percent rate of compliance (based on energy performance) 
with the most recent model building energy codes.
  (b) Guidelines.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall issue guidelines 
that standardize criteria by which a State that seeks to 
receive a grant under this section may--
          (1) verify compliance with applicable model building 
        energy codes; and
          (2) demonstrate eligibility to receive a grant under 
        this section.
  (c) Local Government Codes.--In the case of a State in which 
building energy codes are established by local governments--
          (1) A local government may--
                  (A) apply for a grant under this section; and
                  (B) verify compliance, and demonstrate 
                eligibility, for the grant under subsection 
                (b); and
          (2) if the Secretary determines that the local 
        government is eligible to receive a grant, the 
        Secretary may provide a grant to the local government.
  (d) Use of Funds.--Funds from a grant provided under this 
section may be used only to carry out activities relating to 
the implementation of building energy codes and beyond-code 
building practices.
  (e) Authorization of Appropriations.--
          (1) In general.--There is authorized to be 
        appropriated to carry out this section $25,000,000 for 
        each of fiscal years 2006 through 2010.
          (2) Set aside.--Of the amounts authorized to be 
        appropriated under paragraph (1), the Secretary may use 
        not more than $500,000 for each fiscal year--
                  (A) to develop compliance guidelines;
                  (B) to train State and local officials; and
                  (C) to administer grants provided under this 
                section.
  In section 131(a), amend the proposed section 324A(3) to read 
as follows:

          ``(3) preserve the integrity of the Energy Star label 
        by--
                  ``(A) regularly updating Energy Star 
                criteria; and
                  ``(B) ensuring, in general, that--
                          ``(i) not more than 25 percent of 
                        available models in a product class 
                        receive the Energy Star designation; 
                        and
                          ``(ii) Energy Star designated 
                        products and buildings are at least 10 
                        percent more efficient than--
                                  ``(I) appliance standards in 
                                effect on the date of enactment 
                                of this section; and
                                  ``(II) the most recent model 
                                energy code;
  In section 133(a)(2), add at the end the following new 
paragraphs:

          ``(45)(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 term `commercial prerinse spray 
                valve' may include (as determined by the 
                secretary by rule) 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 that would meet the criteria 
                        specified in subsection (o)(4).
                  ``(C) The term `commercial prerinse spray 
                valve' may exclude (as determined by the 
                secretary by rule) 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.
          ``(46) 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.''.
  In section 133(b)(1), insert after the proposed paragraph 
(13) the following new paragraphs:

  ``(14) 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.
  ``(15) 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 Prerinse Spray Valves.'''.
  In section 133(c), at the end of the quoted material insert 
the following new subsections:

  ``(ee) 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)
    ..........................................................      1.00
    > 25 -....................................................      1.20
    > 35 -....................................................      1.30
    > 54 - < 75...............................................      1.50
    ..........................................................     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 standards established under 
paragraph (1) should be amended.
          ``(B) The final rule shall contain any amendment by 
        the Secretary and shall provide that the amendment 
        shall apply 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)
    ..........................................................      1.20
    > 25 -....................................................      1.30
    > 35 -....................................................      1.40
    > 45 -....................................................      1.50
    > 54 - < 75...............................................      1.60
    ..........................................................      2.5.
  ``(ff) Commercial Prerinse Spray Valves.--Commercial prerinse 
spray valves manufactured on or after January 1, 2006, shall 
have a flow rate less than or equal to 1.6 gallons per minute.
  ``(gg) Standards for Certain Furnaces.--(1) Notwithstanding 
subsection (f) and except as provided in paragraphs (2) and 
(3), a furnace (including a furnace designed solely for 
installation in a mobile home) manufactured 3 or more years 
after the date of enactment of this subsection shall have an 
annual fuel utilization efficiency of--
          ``(A) for natural gas- and propane-fired equipment, 
        not less than 80 percent; and
          ``(B) for oil-fired equipment not less than 83 
        percent.
  ``(2)(A) Notwithstanding subsection (f) and except as 
provided in paragraph (3)--
          ``(i) a boiler (other than a gas steam boiler) 
        manufactured 3 or more years after the date of 
        enactment of this subsection shall have an annual fuel 
        utilization efficiency of not less than 84 percent; and
          ``(ii) a gas steam boiler manufactured 3 or more 
        years after the date of enactment of this subsection 
        shall have an annual fuel utilization efficiency of not 
        less than 82 percent.
  ``(B)(i) Notwithstanding subsection (f), if, after the date 
of enactment of this subsection, the Governor of a cold climate 
State files with the Secretary a notice that the State has 
implemented a requirement for an annual fuel utilization 
efficiency of not less than 90 percent for furnaces (other than 
boilers and furnaces designed solely for installation in a 
mobile home or boiler), the annual fuel utilization efficiency 
of a furnace sold in that State shall be not less than 90 
percent.
  ``(ii) If a State described in clause (i) fails to implement 
or reasonably enforce (as determined by the Secretary) annual 
fuel utilization efficiency in accordance with that clause, the 
annual fuel use efficiency for furnaces (other than boilers and 
furnaces designed solely for installation in a mobile home or 
boiler) in that State shall be the fuel utilization efficiency 
established under paragraph (1).
  ``(3)(A) Not later than 5 years after the date on which a 
standard for a product under this subsection takes effect, the 
Secretary shall promulgate a final rule to determine whether 
that standard should be amended.
  ``(B) If the Secretary determines that a standard under 
subparagraph (A) should be amended--
          ``(i) the final rule promulgated pursuant to 
        subparagraph (A) shall contain the new standard; and
          ``(ii) the new standard shall apply to any product 
        manufactured after the date that is 5 years after the 
        date on which the final rule is promulgated.''.
  In section 134(b), in the quoted material, insert at the end 
the following new paragraphs:

          ``(6) In the case of dehumidifiers covered under 
        section 325(ee), the Commission shall not require an 
        Energy Guide label.
          ``(7)(A) Not later than July 1, 2006, the Commission 
        shall prescribe by rule, pursuant to this section, 
        labeling requirements for the electricity used by 
        ceiling fans to circulate air in a room.
          ``(B) The requirements shall be based on the test 
        procedure and labeling requirements contained in the 
        Energy Star Program Requirements for Residential 
        Ceiling Fans, version 2.0, issued by the Environmental 
        Protection Agency, except that third party testing and 
        other non-labeling requirements shall not be 
        promulgated unless the Commission determines the 
        requirements are necessary to achieve compliance.
          ``(C) The rule shall apply to products manufactured 
        after the later of--
                  ``(i) January 1, 2007; or
                  ``(ii) the date that is 60 days after the 
                final rule is prescribed.''.
  In section 135, in the proposed subsection (h), insert ``, 
upon adoption of a standard under this Act'' after ``fan light 
kits''.

  In title I, subtitle, C, add at the end the following new 
section:

SEC. 137. COMMERCIAL PACKAGE AIR CONDITIONING AND HEATING 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 (E) through (H), 
                respectively; and
                  (B) by inserting after subparagraph (C) the 
                following:
                  ``(D) Very large commercial package air 
                conditioning and heating equipment.'';
          (2) in paragraph (2)(B), by striking ``small and 
        large'';
          (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 at or above 135,000 Btu per hour and 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 at or above 240,000 Btu per hour and below 
        760,000 Btu per hour (cooling capacity).'';
          (4) by redesignating paragraphs (10) through (18) as 
        paragraphs (9) through (17), respectively; and
          (5) in paragraph (10) (as redesignated by 
        subparagraph (D)), by inserting ``, except for gas unit 
        heaters and gas duct furnaces'' after ``furnaces''.
  (b) Standards.--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,'';
          (4) in paragraph (4), by inserting ``, except for a 
        gas unit heater or gas duct furnace,'' after 
        ``boiler'';
          (5) 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 would result in 
                        significant additional conservation of 
                        energy and is technologically feasible 
                        and economically justified.
                          ``(iii) This subparagraph does not 
                        apply to gas-fired warm-air furnaces, 
                        gas-fired package boilers, storage 
                        water heaters, gas unit heaters, or gas 
                        duct furnaces manufactured 5 or more 
                        years after the date of enactment of 
                        the National Energy Efficiency Policy 
                        Act of 2005.''; 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
          (6) by adding at the end the following:
          ``(7) Each 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) Each 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) Each 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).
          ``(10) Notwithstanding paragraph (4) and except as 
        provided in paragraph (14), the minimum thermal 
        efficiency at the maximum rated capacity of a gas-fired 
        warm-air furnace with the capacity of 225,000 Btu per 
        hour or more manufactured 4 or more years after the 
        date of enactment of this paragraph shall be 79.5 
        percent.
          ``(11) Notwithstanding paragraph (4) and except as 
        provided in paragraph (14), the minimum combustion 
        efficiency at the maximum rated capacity of a gas-fired 
        package boiler with the capacity of 300,000 Btu per 
        hour or more manufactured 4 or more years after the 
        date of enactment of this paragraph shall be 84 
        percent.
          ``(12) Notwithstanding paragraph (5) (excluding 
        paragraph (5)(g)), and except as provided in paragraph 
        (14)--
                  ``(A) the maximum standby loss (expressed as 
                a percent per hour) of a gas-fired storage 
                water heater shall be 1.30 (expressed as a 
                measurement of storage volume in gallons); and
                  ``(B) the minimal thermal efficiency of a 
                gas-fired storage water heater shall be 82 
                percent.
          ``(13) Except as provided in paragraph (14), each gas 
        unit heater and gas duct furnace manufactured 3 or more 
        years after the date of enactment of this paragraph 
        shall be equipped with--
                  ``(A) an intermittent ignition device; and
                  ``(B)(i) power venting; or
                  ``(ii) an automatic flue damper.
          ``(14)(A) Not later than 5 years after the date on 
        which a standard for a product under paragraph (10), 
        (11), (12), or (13) takes effect, the Secretary shall 
        promulgate a final rule to determine whether the 
        standard for that product should be amended.
                  ``(B) If the Secretary determines that a 
                standard should be amended under subparagraph 
                (A)--
                          ``(i) the final rule promulgated 
                        pursuant to subparagraph (A) shall 
                        contain the new standard; and
                          ``(ii) the new standard shall apply 
                        to any product manufactured 4 or more 
                        years after the date on which the final 
                        rule is promulgated.''.
  (c) Test Procedures.--Section 343 of the Energy Policy and 
Conservation Act (42 U.S.C. 6314) is amended in subsections 
(a)(4) and (d)(1), by inserting ``very large commercial package 
air conditioning and heating equipment,'' after ``large 
commercial package air conditioning and heating equipment,'' 
each place it appears.
  (d) Labeling.--Section 344(e) of the Energy Policy and 
Conservation Act (42 U.S.C. 6315(e)) is amended in the first 
and second sentences, by inserting ``very large commercial 
package air conditioning and heating equipment,'' after ``large 
commercial package air conditioning and heating equipment,'' 
each place it appears.
  (e) Administration, Penalties, Enforcement, and Preemption.--
Section 345 of the Energy Policy and Conservation Act (42 
U.S.C. 6316) is amended by adding at the end the following:
  ``(d)(1) Except as provided in paragraphs (2) and (3), 
section 327 shall apply with respect to the equipment specified 
in section 340(1)(D) 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 prescribed or enacted prior 
to 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.
  ``(3) If the California Energy Commission adopts, not later 
than March 31, 2005, a regulation concerning the energy 
efficiency or energy effective after, the standards established 
under section 342(a)(9) take effect on January 1, 2010.''.
  In section 304, insert at the end the following: ``In 
determining whether to defer such acquisition, the Secretary 
shall use market-based practices when deciding to acquire 
petroleum for the Strategic Petroleum Reserve, as used prior to 
2002; carry out and make public analyses of costs and savings 
when making or deferring such acquisitions; take into account 
and report to Congress the impact the acquisition will have on 
the domestic and foreign supply of petroleum and the resulting 
price increases or decreases; and consult with the Secretary of 
Homeland Security on the security consequences of such 
acquisition or deferral.''.

  In title III, subtitle A, add at the end the following new 
section:

SEC. 305. SENSE OF THE HOUSE OF REPRESENTATIVES.

  It is the sense of the House of Representatives that, to 
address the crude oil price problem in the short-term, the 
President should communicate immediately to the members of the 
Organization of Petroleum Exporting Countries (OPEC) cartel and 
non-OPEC countries that participate in the cartel of crude oil 
producing countries that--
          (1) the United States seeks to maintain strong 
        relations with crude oil producers around the world 
        while promoting international efforts to remove 
        barriers to energy trade and investment and increased 
        access for United States energy firms around the world;
          (2) the United States believes that restricting 
        supply in a market that is in demand for additional 
        crude oil does serious damage to the efforts that OPEC 
        members have made to demonstrate that they represent a 
        reliable source of crude oil supply;
          (3) the United States believes that stable crude oil 
        prices and supplies are essential for strong economic 
        growth throughout the world;
          (4) the United States seeks an immediate increase in 
        the OPEC crude oil production quotas; and
          (5) the United States will temporarily suspend 
        further purchases of crude oil for the Strategic 
        Petroleum Reserve, thereby freeing up additional supply 
        for the marketplace.
  Amend section 355 to read as follows (and amend the table of 
contents accordingly):

SEC. 355. 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.
  Title XII is amended by striking sections 1201 through 1235 
and sections 1237 through 1298, by striking the title heading, 
by inserting the following before title XIII, by redesignating 
section 1236 (relating to native load service obligation) as 
section 1233 of the following and inserting such redesignated 
section 1233 after section 1232 of the following, and by making 
the necessary conforming changes in the table of contents:

                         TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

  This title may be cited as the ``Electric Reliability 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 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 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).
  ``(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.
        The total amount of all dues, fees, and other charges 
        collected by the ERO in each of the fiscal years 2006 
        through 2015 and allocated under subparagraph (B) shall 
        not exceed $50,000,000.
  ``(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) Limitation on Annual Appropriations.--There is authorized 
to be appropriated not mroe than $50,000,000 per year for 
fiscal years 2006 through 2015 for all activities under the 
amendment made by subsection (a).

            Subtitle B--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 the following new 
section:

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

  ``(a) Transmission 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 such 
        unregulated transmitting utility provides transmission 
        services to itself and that are not unduly 
        discriminatory or preferential.
  ``(b) Exemption.--The Commission shall exempt from any rule 
or order under this section any unregulated transmitting 
utility that--
          ``(1) sells no more than 4,000,000 megawatt hours of 
        electricity per year; or
          ``(2) does not own or operate any transmission 
        facilities that are necessary for operating an 
        interconnected transmission system (or any portion 
        thereof); or
          ``(3) meets other criteria the Commission determines 
        to be in the public interest.
  ``(c) Local Distribution Facilities.--The requirements of 
subsection (a) shall not apply to facilities used in local 
distribution.
  ``(d) Exemption Termination.--Whenever the Commission, after 
an evidentiary hearing held upon 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 (b) 
unreasonably impairs the continued reliability of an 
interconnected transmission system, it shall revoke the 
exemption granted to that transmitting utility.
  ``(e) 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.
  ``(f) Remand.--In exercising its authority under paragraph 
(1) of subsection (a), the Commission may remand transmission 
rates to an unregulated transmitting utility for review and 
revision where necessary to meet the requirements of subsection 
(a).
  ``(g) Other Requests.--The provision of transmission services 
under subsection (a) does not preclude a request for 
transmission services under section 211.
  ``(h) 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 (26 U.S.C. 141).
  ``(i) 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 an RTO or 
any other Commission-approved independent transmission 
organization designated to provide nondiscriminatory 
transmission access.
  ``(j) Definition.--For purposes of 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).''.

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION 
                    ORGANIZATIONS.

  (a) Definitions.--For purposes of this section--
          (1) Appropriate federal regulatory authority.--The 
        term ``appropriate Federal regulatory authority'' 
        means--
                  (A) with respect to a Federal power marketing 
                agency (as defined in the Federal Power Act), 
                the Secretary of Energy, 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 that 
                Federal power marketing agency; and
                  (B) with respect to the Tennessee Valley 
                Authority, the Board of Directors of the 
                Tennessee Valley Authority.
          (2) Federal utility.--The term ``Federal utility'' 
        means a Federal power marketing agency or the Tennessee 
        Valley Authority.
          (3) Transmission system.--The term ``transmission 
        system'' means electric transmission facilities owned, 
        leased, or contracted for by the United States and 
        operated by a Federal utility.
  (b) Transfer.--The appropriate Federal regulatory authority 
is authorized to enter into a contract, agreement or other 
arrangement transferring control and use of all or part of the 
Federal utility's transmission system to an RTO or ISO (as 
defined in the Federal Power Act), approved by the Federal 
Energy Regulatory Commission. Such 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 necessary or appropriate, including 
        standards that assure recovery of all the Federal 
        utility's costs and expenses related to the 
        transmission facilities that are the subject of the 
        contract, agreement or other arrangement; consistency 
        with existing contracts and third-party financing 
        arrangements; and consistency with said Federal 
        utility's statutory authorities, obligations, and 
        limitations;
          (2) provisions for monitoring and oversight by the 
        Federal utility of the RTO's or ISO's fulfillment of 
        the 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 regional 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 RTO or ISO and terminate the 
        contract, agreement or other arrangement in accordance 
        with its terms.
Neither this section, actions taken pursuant to it, nor any 
other transaction of a Federal utility using an RTO or ISO 
shall confer upon the Federal Energy Regulatory Commission 
jurisdiction or authority over the Federal utility's electric 
generation assets, electric capacity or energy that the Federal 
utility is authorized by law to market, or the Federal 
utility's power sales activities.
  (c) 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 its transmission system shall be construed to 
        prohibit a transfer of control and use of its 
        transmission system pursuant to, and subject to all 
        requirements of subsection (b).
          (2) Other obligations.--This subsection shall not be 
        construed to--
                  (A) suspend, or exempt any Federal utility 
                from, any provision of existing Federal law, 
                including but not limited to any requirement or 
                direction relating to the use of the Federal 
                utility's transmission system, environmental 
                protection, fish and wildlife protection, flood 
                control, navigation, water delivery, or 
                recreation; or
                  (B) authorize abrogation of any contract or 
                treaty obligation.
          (3) Repeal.--Section 311 of title III of Appendix B 
        of the Act of October 27, 2000 (P.L. 106-377, section 
        1(a)(2); 114 Stat. 1441, 1441A-80; 16 U.S.C. 824n) is 
        repealed.

                    Subtitle C--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 Utilities 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 
by adding at the end the following:
          ``(14) Time-based metering and communications.--
                  ``(A) Not later than 18 months after the date 
                of enactment of this paragraph, each electric 
                utility shall offer each of its customer 
                classes, and provide individual customers upon 
                customer request, a time-based rate schedule 
                under which the rate charged by the electric 
                utility varies during different time periods 
                and reflects the variance, if any, in the 
                utility's costs of generating and purchasing 
                electricity at the wholesale level. The time-
                based rate schedule shall enable the electric 
                consumer to manage energy use and cost through 
                advanced metering and communications 
                technology.
                  ``(B) The types of time-based rate schedules 
                that may be offered under the schedule referred 
                to in subparagraph (A) include, among others--
                          ``(i) time-of-use pricing whereby 
                        electricity prices are set for a 
                        specific time period on an advance or 
                        forward basis, typically not changing 
                        more often than twice a year, based on 
                        the utility's cost of generating and/or 
                        purchasing such electricity at the 
                        wholesale level for the benefit of the 
                        consumer. Prices paid for energy 
                        consumed during these periods shall be 
                        pre-established and known to consumers 
                        in advance of such consumption, 
                        allowing them to vary their demand and 
                        usage in response to such prices and 
                        manage their energy costs by shifting 
                        usage to a lower cost period or 
                        reducing their consumption overall;
                          ``(ii) critical peak pricing whereby 
                        time-of-use prices are in effect except 
                        for certain peak days, when prices may 
                        reflect the costs of generating and/or 
                        purchasing electricity at the wholesale 
                        level and when consumers may receive 
                        additional discounts for reducing peak 
                        period energy consumption; and
                          ``(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.
                  ``(C) Each electric utility subject to 
                subparagraph (A) shall provide each customer 
                requesting a time-based rate with a time-based 
                meter capable of enabling the utility and 
                customer to offer and receive such rate, 
                respectively.
                  ``(D) For purposes of implementing this 
                paragraph, any reference contained in this 
                section to the date of enactment of the Public 
                Utility Regulatory Policies Act of 1978 shall 
                be deemed to be a reference to the date of 
                enactment of this paragraph.
                  ``(E) In a State that permits third-party 
                marketers to sell electric energy to retail 
                electric consumers, such consumers shall be 
                entitled to receive the same time-based 
                metering and communications device and service 
                as a retail electric consumer of the electric 
                utility.
                  ``(F) Notwithstanding subsections (b) and (c) 
                of section 112, each State regulatory authority 
                shall, not later than 18 months after the date 
                of enactment of this paragraph conduct an 
                investigation in accordance with section 115(i) 
                and issue a decision whether it is appropriate 
                to implement the standards set out in 
                subparagraphs (A) and (C).''.
  (b) State Investigation of Demand Response and Time-Based 
Metering.--Section 115 of the Public Utilities Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
          (1) By inserting in subsection (b) after the phrase 
        ``the standard for time-of-day rates established by 
        section 111(d)(3)'' the following: ``and the standard 
        for time-based metering and communications established 
        by section 111(d)(14)''.
          (2) By inserting in subsection (b) after the phrase 
        ``are likely to exceed the metering'' the following: 
        ``and communications''.
          (3) By adding 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 of Energy 
        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; and
                  (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.
  (f) Federal Encouragement of Demand Response Devices.--It is 
the policy of the United States that time-based pricing and 
other forms of demand response, whereby electricity customers 
are provided with electricity price signals and the ability to 
benefit by responding to them, shall be encouraged, and the 
deployment of such technology and devices that enable 
electricity customers to participate in such pricing and demand 
response systems shall be facilitated. 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).''.

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

SEC. 1282. 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. 221. PROHIBITION ON FILING FALSE INFORMATION.

  ``No person or other 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 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 such Federal 
agency.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

  ``(a) Prohibition.--No person or other entity (including an 
entity described in section 201(f)) shall willfully and 
knowingly enter into any contract or other arrangement to 
execute a `round trip trade' for the purchase or sale of 
electric energy at wholesale.
  ``(b) Definition.--For the purposes of this section, the term 
`round trip trade' means a transaction, or combination of 
transactions, in which a person or any other entity--
          ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other 
        entity electric energy at wholesale;
          ``(2) simultaneously with entering into the contract 
        or arrangement described in paragraph (1), arranges a 
        financially offsetting trade with such other person or 
        entity for the same such electric energy, at the same 
        location, price, quantity and terms so that, 
        collectively, the purchase and sale transactions in 
        themselves result in no financial gain or loss; and
          ``(3) enters into the contract or arrangement with a 
        specific intent to fraudulently affect reported 
        revenues, trading volumes, or prices.''.

SEC. 1283. FRAUDULENT OR MANIPULATIVE PRACTICES.

  (a) Unlawful Acts.--It shall be unlawful for any entity, 
directly or indirectly, by the use of any means or 
instrumentality of interstate commerce or of the mails to use 
or employ, in 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, or the sale in interstate commerce of 
natural gas for resale for ultimate public consumption for 
domestic, commercial, industrial, or any other use, any 
fraudulent, manipulative, or deceptive device or contrivance in 
contravention of such rules and regulations as the Federal 
Energy Regulatory Commission may prescribe as necessary or 
appropriate in the public interest.
  (b) Application of Federal Power Act to This Act.--The 
provisions of section 307 through 309 and 313 through 317 of 
the Federal Power Act shall apply to violations of the Electric 
Reliability Act of 2005 in the same manner and to the same 
extent as such provisions apply to entities subject to Part II 
of the Federal Power Act.

SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC. UNDER FEDERAL POWER 
                    ACT.

   Part III of the Federal Power Act is amended by inserting 
the following new section after section 319 and by 
redesignating sections 320 and 321 as sections 321 and 322, 
respectively:

``SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, ETC.

  ``(a) Rule Required for Certain Waivers, Exemptions, Etc.--
Not later than 6 months after the enactment of this Act, the 
Commission shall promulgate a rule establishing specific 
criteria for providing an exemption, waiver, or other reduced 
or abbreviated form of compliance with the requirements of 
sections 204, 301, 304, and 305 (including any prospective 
blanket order). Such criteria shall be sufficient to insure 
that any such action taken by the Commission will be consistent 
with the purposes of such requirements and will otherwise 
protect the public interest.
  ``(b) Moratorium on Certain Waivers, Exemptions, Etc.--After 
the date of enactment of this section, the Commission may not 
issue, adopt, order, approve, or promulgate any exemption, 
waiver, or other reduced or abbreviated form of compliance with 
the requirements of section 204, 301, 304, or 305 (including 
any prospective blanket order) until after the rule promulgated 
under subsection (a) has taken effect.
  ``(c) Previous Ferc Action.--The Commission shall undertake a 
review, by rule or order, of each exemption, waiver, or other 
reduced or abbreviated form of compliance described in 
subsection (a) that was taken before the date of enactment of 
this section. No such action may continue in force and effect 
after the date 18 months after the date of enactment of this 
section unless the Commission finds that such action complies 
with the rule under subsection (a).
  ``(d) Exemption Under 204(f) not Applicable.--For purposes of 
this section, in applying section 204, the provisions of 
section 204(f) shall not apply.''.

SEC. 1285. REPORTING REQUIREMENTS IN ELECTRIC POWER SALES AND 
                    TRANSMISSION.

  (a) Audit Trails.--Section 304 of the Federal Power Act is 
amended by adding the following new subsection at the end 
thereof:
  ``(c)(1) The Commission shall, by rule or order, require each 
person or other entity engaged in the transmission of electric 
energy in interstate commerce or the sale of electric energy at 
wholesale in interstate commerce, and each broker, dealer, and 
power marketer involved in any such transmission or sale, to 
maintain, and periodically submit to the Commission, such 
records, in electronic form, of each transaction relating to 
such transmission or sale as may be necessary to determine 
whether any person has employed any fraudulent, manipulative, 
or deceptive device or contrivance in contravention of rules 
promulgated by the Commission.
          ``(2) Section 201(f) shall not limit the application 
        of this subsection.''.
  (b) Natural Gas.--Section 8 of the Natural Gas Act is amended 
by adding the following new subsection at the end thereof:
  ``(d) The Commission shall, by rule or order, require each 
person or other entity engaged in the transportation of natural 
gas in interstate commerce, or the sale in interstate commerce 
of natural gas for resale for ultimate public consumption for 
domestic, commercial, industrial, or any other use, and each 
broker, dealer, and power marketer involved in any such 
transportation or sale, to maintain, and periodically submit to 
the Commission, such records, in electronic form, of each 
transaction relating to such transmission or sale as may be 
necessary to determine whether any person has employed any 
fraudulent, manipulative, or deceptive device or contrivance in 
contravention of rules promulgated by the Commission.''.

SEC. 1286. TRANSPARENCY.

  (a) Definition.--As used in this section the term ``electric 
power or natural gas information processor'' means any person 
engaged in the business of--
          (1) collecting, processing, or preparing for 
        distribution or publication, or assisting, 
        participating in, or coordinating the distribution or 
        publication of, information with respect to 
        transactions in or quotations involving the purchase or 
        sale of electric power, natural gas, the transmission 
        of electric energy, or the transportation of natural 
        gas, or
          (2) distributing or publishing (whether by means of a 
        ticker tape, a communications network, a terminal 
        display device, or otherwise) on a current and 
        continuing basis, information with respect to such 
        transactions or quotations.
The term does not include any bona fide newspaper, news 
magazine, or business or financial publication of general and 
regular circulation, any self-regulatory organization, any 
bank, broker, dealer, building and loan, savings and loan, or 
homestead association, or cooperative bank, if such bank, 
broker, dealer, association, or cooperative bank would be 
deemed to be an electric power or natural gas information 
processor solely by reason of functions performed by such 
institutions as part of customary banking, brokerage, dealing, 
association, or cooperative bank activities, or any common 
carrier, as defined in section 3 of the Communications Act of 
1934, subject to the jurisdiction of the Federal Communications 
Commission or a State commission, as defined in section 3 of 
that Act, unless the Commission determines that such carrier is 
engaged in the business of collecting, processing, or preparing 
for distribution or publication, information with respect to 
transactions in or quotations involving the purchase or sale of 
electric power, natural gas, the transmission of electric 
energy, or the transportation of natural gas.
  (b) Prohibition.--No electric power or natural gas 
information processor may make use of the mails or any means or 
instrumentality of interstate commerce--
          (1) to collect, process, distribute, publish, or 
        prepare for distribution or publication any information 
        with respect to quotations for, or transactions 
        involving the purchase or sale of electric power, 
        natural gas, the transmission of electric energy, or 
        the transportation of natural gas, or
          (2) to assist, participate in, or coordinate the 
        distribution or publication of such information in 
        contravention of such rules and regulations as the 
        Federal Energy Regulatory Commission shall prescribe as 
        necessary or appropriate in the public interest to
                  (A) prevent the use, distribution, or 
                publication of fraudulent, deceptive, or 
                manipulative information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas;
                  (B) assure the prompt, accurate, reliable, 
                and fair collection, processing, distribution, 
                and publication of information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas, and the 
                fairness and usefulness of the form and content 
                of such information;
                  (C) assure that all such information 
                processors may, for purposes of distribution 
                and publication, obtain on fair and reasonable 
                terms such information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas as is 
                collected, processed, or prepared for 
                distribution or publication by any exclusive 
                processor of such information acting in such 
                capacity;
                  (D) assure that, subject to such limitations 
                as the Commission, by rule, may impose as 
                necessary or appropriate for the maintenance of 
                fair and orderly markets, all persons may 
                obtain on terms which are not unreasonably 
                discriminatory such information with respect to 
                quotations for and transactions involving the 
                purchase or sale of electric power, natural 
                gas, the transmission of electric energy, or 
                the transportation of natural gas as is 
                published or distributed by any electric power 
                or natural gas information processor;
                  (E) assure that all electricity and natural 
                gas electronic communication networks transmit 
                and direct orders for the purchase and sale of 
                electricity or natural gas in a manner 
                consistent with the establishment and operation 
                of an efficient, fair, and orderly market 
                system for electricity and natural gas; and
                  (F) assure equal regulation of all markets 
                involving the purchase or sale of electric 
                power, natural gas, the transmission of 
                electric energy, or the transportation of 
                natural gas and all persons effecting 
                transactions involving the purchase or sale of 
                electric power, natural gas, the transmission 
                of electric energy, or the transportation of 
                natural gas.
  (c) Related Commodities.--For purposes of this section, the 
phrase ``purchase or sale of electric power, natural gas, the 
transmission of electric energy, or the transportation of 
natural gas'' includes the purchase or sale of any commodity 
(as defined in the Commodities Exchange Act) relating to any 
such purchase or sale if such commodity is excluded from 
regulation under the Commodities Exchange Act pursuant to 
section 2 of that Act.
  (d) Prohibition.--No person who owns, controls, or is under 
the control or ownership of a public utility, a natural gas 
company, or a public utility holding company may own, control, 
or operate any electronic computer network or other mulitateral 
trading facility utilized to trade electricity or natural gas.

SEC. 1287. PENALTIES.

  (a) Criminal Penalties.--Section 316 of the Federal Power Act 
(16 U.S.C. 825o(c)) is amended as follows:
          (1) By striking ``$5,000'' in subsection (a) and 
        inserting ``$5,000,000 for an individual and 
        $25,000,000 for any other defendant'' and by striking 
        out ``two years'' and inserting ``five years'' .
          (2) By striking ``$500'' in subsection (b) and 
        inserting ``$1,000,000''.
          (3) By striking subsection (c).
  (b) Civil Penalties.--Section 316A of the Federal Power Act 
(16 U.S.C. 825o091) is amended as follows:
          (1) By striking ``section 211, 212, 213, or 214'' 
        each place it appears and inserting ``Part II''.
          (2) By striking ``$10,000 for each day that such 
        violation continues'' and inserting ``the greater of 
        $1,000,000 or three times the profit made or gain or 
        loss avoided by reason of such violation''.
          (3) By adding the following at the end thereof:
  ``(c) Authority of a Court to Prohibit Persons From Certain 
Activities.--In any proceeding under this section, the court 
may censure, place limitations on the activities, functions, or 
operations of, suspend or revoke the ability of any entity 
(without regard to section 201(f)) to participate in the 
transmission of electric energy in interstate commerce or the 
sale of electric energy at wholesale in interstate commerce if 
it finds that such censure, placing of limitations, suspension, 
or revocation is in the public interest and that one or more of 
the following applies to such entity:
          ``(1) Such entity has willfully made or caused to be 
        made in any application or report required to be filed 
        with the Commission or with any other appropriate 
        regulatory agency, or in any proceeding before the 
        Commission, any statement which was at the time and in 
        the light of the circumstances under which it was made 
        false or misleading with respect to any material fact, 
        or has omitted to state in any such application or 
        report any material fact which is required to be stated 
        therein.
          ``(2) Such entity has been convicted of any felony or 
        misdemeanor or of a substantially equivalent crime by a 
        foreign court of competent jurisdiction which the court 
        finds--
                  ``(A) involves the purchase or sale of 
                electricity, the taking of a false oath, the 
                making of a false report, bribery, perjury, 
                burglary, any substantially equivalent activity 
                however denominated by the laws of the relevant 
                foreign government, or conspiracy to commit any 
                such offense;
                  ``(B) arises out of the conduct of the 
                business of transmitting electric energy in 
                interstate commerce or selling or purchasing 
                electric energy at wholesale in interstate 
                commerce;
                  ``(C) involves the larceny, theft, robbery, 
                extortion, forgery, counterfeiting, fraudulent 
                concealment, embezzlement, fraudulent 
                conversion, or misappropriation of funds, or 
                securities, or substantially equivalent 
                activity however denominated by the laws of the 
                relevant foreign government; or
                  ``(D) involves the violation of section 152, 
                1341, 1342, or 1343 or chapter 25 or 47 of 
                title 18, United States Code, or a violation of 
                a substantially equivalent foreign statute.
          ``(3) Such entity is permanently or temporarily 
        enjoined by order, judgment, or decree of any court of 
        competent jurisdiction from acting as an investment 
        adviser, underwriter, broker, dealer, municipal 
        securities dealer, government securities broker, 
        government securities dealer, transfer agent, foreign 
        person performing a function substantially equivalent 
        to any of the above, or entity or person required to be 
        registered under the Commodity Exchange Act or any 
        substantially equivalent foreign statute or regulation, 
        or as an affiliated person or employee of any 
        investment company, bank, insurance company, foreign 
        entity substantially equivalent to any of the above, or 
        entity or person required to be registered under the 
        Commodity Exchange Act or any substantially equivalent 
        foreign statute or regulation, or from engaging in or 
        continuing any conduct or practice in connection with 
        any such activity, or in connection with the purchase 
        or sale of any security.
          ``(4) Such entity has willfully violated any 
        provision of this Act.
          ``(5) Such entity has willfully aided, abetted, 
        counseled, commanded, induced, or procured the 
        violation by any other person of any provision of this 
        Act, or has failed reasonably to supervise, with a view 
        to preventing violations of the provisions of this Act, 
        another person who commits such a violation, if such 
        other person is subject to his supervision. For the 
        purposes of this paragraph no person shall be deemed to 
        have failed reasonably to supervise any other person, 
        if--
                  ``(A) there have been established procedures, 
                and a system for applying such procedures, 
                which would reasonably be expected to prevent 
                and detect, insofar as practicable, any such 
                violation by such other person, and
                  ``(B) such person has reasonably discharged 
                the duties and obligations incumbent upon him 
                by reason of such procedures and system without 
                reasonable cause to believe that such 
                procedures and system were not being complied 
                with.
          ``(6) Such entity has been found by a foreign 
        financial or energy regulatory authority to have--
                  ``(A) made or caused to be made in any 
                application or report required to be filed with 
                a foreign regulatory authority, or in any 
                proceeding before a foreign financial or energy 
                regulatory authority, any statement that was at 
                the time and in the light of the circumstances 
                under which it was made false or misleading 
                with respect to any material fact, or has 
                omitted to state in any application or report 
                to the foreign regulatory authority any 
                material fact that is required to be stated 
                therein;
                  ``(B) violated any foreign statute or 
                regulation regarding the transmission or sale 
                of electricity or natural gas; or
                  ``(C) aided, abetted, counseled, commanded, 
                induced, or procured the violation by any 
                person of any provision of any statutory 
                provisions enacted by a foreign government, or 
                rules or regulations thereunder, empowering a 
                foreign regulatory authority regarding 
                transactions in electricity or natural gas, or 
                contracts of sale of electricity or natural 
                gas, traded on or subject to the rules of a 
                contract market or any board of trade, or has 
                been found, by a foreign regulatory authority, 
                to have failed reasonably to supervise, with a 
                view to preventing violations of such statutory 
                provisions, rules, and regulations, another 
                person who commits such a violation, if such 
                other person is subject to his supervision.
          ``(7) Such entity is subject to any final order of a 
        State commission (or any agency or officer performing 
        like functions), State authority that supervises or 
        examines banks, savings associations, or credit unions, 
        State insurance commission (or any agency or office 
        performing like functions), an appropriate Federal 
        banking agency (as defined in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(q))), or the 
        National Credit Union Administration, that--
                  ``(A) bars such person from association with 
                an entity regulated by such commission, 
                authority, agency, or officer, or from engaging 
                in the business of securities, insurance, 
                banking, savings association activities, or 
                credit union activities; or
                  ``(B) constitutes a final order based on 
                violations of any laws or regulations that 
                prohibit fraudulent, manipulative, or deceptive 
                conduct.''
          (4) Such entity is subject to statutory 
        disqualification within the meaning of section 3(a)(39) 
        of the Securities Exchange Act of 1934.".
  (c) Natural Gas Act Penalties.--Section 21 of the Natural Gas 
Act is amended by adding the following new subsection at the 
end thereof:
  ``(c) Authority of a Court to Prohibit Persons From Certain 
Activities.--In any proceeding under this section, the court 
may censure, place limitations on the activities, functions, or 
operations of, suspend or revoke the ability of any entity 
(without regard to section 201(f)) to participate in the 
transportation of natural gas in interstate commerce, or the 
sale in interstate commerce of natural gas for resale for 
ultimate public consumption for domestic, commercial, 
industrial, or any other use if it finds that such censure, 
placing of limitations, suspension, or revocation is in the 
public interest and that one or more of the following applies 
to such entity:
          ``(1) Such entity has willfully made or caused to be 
        made in any application or report required to be filed 
        with the Commission or with any other appropriate 
        regulatory agency, or in any proceeding before the 
        Commission, any statement which was at the time and in 
        the light of the circumstances under which it was made 
        false or misleading with respect to any material fact, 
        or has omitted to state in any such application or 
        report any material fact which is required to be stated 
        therein.
          ``(2) Such entity has been convicted of any felony or 
        misdemeanor or of a substantially equivalent crime by a 
        foreign court of competent jurisdiction which the court 
        finds--
                  ``(A) involves the purchase or sale of 
                natural gas, the taking of a false oath, the 
                making of a false report, bribery, perjury, 
                burglary, any substantially equivalent activity 
                however denominated by the laws of the relevant 
                foreign government, or conspiracy to commit any 
                such offense;
                  ``(B) arises out of the conduct of the 
                business of transmitting natural gas in 
                interstate commerce, or the selling in 
                interstate commerce of natural gas for resale 
                for ultimate public consumption for domestic, 
                commercial, industrial, or any other use;
                  ``(C) involves the larceny, theft, robbery, 
                extortion, forgery, counterfeiting, fraudulent 
                concealment, embezzlement, fraudulent 
                conversion, or misappropriation of funds, or 
                securities, or substantially equivalent 
                activity however denominated by the laws of the 
                relevant foreign government; or
                  ``(D) involves the violation of section 152, 
                1341, 1342, or 1343 or chapter 25 or 47 of 
                title 18, United States Code, or a violation of 
                a substantially equivalent foreign statute.
          ``(3) Such entity is permanently or temporarily 
        enjoined by order, judgment, or decree of any court of 
        competent jurisdiction from acting as an investment 
        adviser, underwriter, broker, dealer, municipal 
        securities dealer, government securities broker, 
        government securities dealer, transfer agent, foreign 
        person performing a function substantially equivalent 
        to any of the above, or entity or person required to be 
        registered under the Commodity Exchange Act or any 
        substantially equivalent foreign statute or regulation, 
        or as an affiliated person or employee of any 
        investment company, bank, insurance company, foreign 
        entity substantially equivalent to any of the above, or 
        entity or person required to be registered under the 
        Commodity Exchange Act or any substantially equivalent 
        foreign statute or regulation, or from engaging in or 
        continuing any conduct or practice in connection with 
        any such activity, or in connection with the purchase 
        or sale of any security.
          ``(4) Such entity has willfully violated any 
        provision of this Act.
          ``(5) Such entity has willfully aided, abetted, 
        counseled, commanded, induced, or procured the 
        violation by any other person of any provision of this 
        Act, or has failed reasonably to supervise, with a view 
        to preventing violations of the provisions of this Act, 
        another person who commits such a violation, if such 
        other person is subject to his supervision. For the 
        purposes of this paragraph no person shall be deemed to 
        have failed reasonably to supervise any other person, 
        if--
                  ``(A) there have been established procedures, 
                and a system for applying such procedures, 
                which would reasonably be expected to prevent 
                and detect, insofar as practicable, any such 
                violation by such other person, and
                  ``(B) such person has reasonably discharged 
                the duties and obligations incumbent upon him 
                by reason of such procedures and system without 
                reasonable cause to believe that such 
                procedures and system were not being complied 
                with.
          ``(6) Such entity has been found by a foreign 
        financial or energy regulatory authority to have--
                  ``(A) made or caused to be made in any 
                application or report required to be filed with 
                a foreign regulatory authority, or in any 
                proceeding before a foreign financial or energy 
                regulatory authority, any statement that was at 
                the time and in the light of the circumstances 
                under which it was made false or misleading 
                with respect to any material fact, or has 
                omitted to state in any application or report 
                to the foreign regulatory authority any 
                material fact that is required to be stated 
                therein;
                  ``(B) violated any foreign statute or 
                regulation regarding the transmission or sale 
                of electricity or natural gas;
                  ``(C) aided, abetted, counseled, commanded, 
                induced, or procured the violation by any 
                person of any provision of any statutory 
                provisions enacted by a foreign government, or 
                rules or regulations thereunder, empowering a 
                foreign regulatory authority regarding 
                transactions in electricity or natural gas, or 
                contracts of sale of electricity or natural 
                gas, traded on or subject to the rules of a 
                contract market or any board of trade, or has 
                been found, by a foreign regulatory authority, 
                to have failed reasonably to supervise, with a 
                view to preventing violations of such statutory 
                provisions, rules, and regulations, another 
                person who commits such a violation, if such 
                other person is subject to his supervision.
          ``(7) Such entity is subject to any final order of a 
        State commission (or any agency or officer performing 
        like functions), State authority that supervises or 
        examines banks, savings associations, or credit unions, 
        State insurance commission (or any agency or office 
        performing like functions), an appropriate Federal 
        banking agency (as defined in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(q))), or the 
        National Credit Union Administration, that--
                  ``(A) bars such person from association with 
                an entity regulated by such commission, 
                authority, agency, or officer, or from engaging 
                in the business of securities, insurance, 
                banking, savings association activities, or 
                credit union activities; or
                  ``(B) constitutes a final order based on 
                violations of any laws or regulations that 
                prohibit fraudulent, manipulative, or deceptive 
                conduct.
          ``(8) Such entity is subject to statutory 
        disqualification within the meaning of section 3(a)(39) 
        of the Securities Exchange Act of 1934.''.

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS.

   Not later than 12 months after the enactment of this Act the 
Securities and Exchange Commission shall review each exemption 
granted to any person under section 3(a) of the Public Utility 
Holding Company Act of 1935 and shall review the action of 
persons operating pursuant to a claim of exempt status under 
section 3 to determine if such exemptions and claims are 
consistent with the requirements of such section 3(a) and 
whether or not such exemptions or claims of exemption should 
continue in force and effect.

SEC. 1289. REVIEW OF ACCOUNTING FOR CONTRACTS INVOLVED IN ENERGY 
                    TRADING.

  Not later than 12 months after the enactment of this Act, the 
Comptroller General of the United States shall submit to the 
Congress a report of the results of its review of accounting 
for contracts in energy trading and risk management activities. 
The review and report shall include, among other issues, the 
use of mark-to-market accounting and when gains and losses 
should be recognized, with a view toward improving the 
transparency of energy trading activities for the benefit of 
investors, consumers, and the integrity of these markets.

SEC. 1290. PROTECTION OF FERC REGULATED SUBSIDIARIES.

   Section 205 of the Federal Power Act is amended by adding 
after subsection (f) the following new subsection:
  ``(g) Rules and Procedures to Protect Consumers of Public 
Utilities.--Not later than 9 months after the date of enactment 
of this Act, the Commission shall adopt rules and procedures 
for the protection of electric consumers from self-dealing, 
interaffiliate abuse, and other harmful actions taken by 
persons owning or controlling public utilities. Such rules 
shall ensure that no asset of a public utility company shall be 
used as collateral for indebtedness incurred by the holding 
company of, and any affiliate of, such public utility company, 
and no public utility shall acquire or own any securities of 
the holding company or other affiliates of the holding company 
unless the Commission has determined that such acquisition or 
ownership is consistent with the public interest and the 
protection of consumers of such public utility.''.

SEC. 1291. REFUNDS UNDER THE FEDERAL POWER ACT.

   Section 206(b) of the Federal Power Act is amended as 
follows:
          (1) By amending the first sentence to read as 
        follows: ``In any proceeding under this section, the 
        refund effective date shall be the date of the filing 
        of a complaint or the date of the Commission motion 
        initiating the proceeding, except that in the case of a 
        complaint with regard to market-based rates, the 
        Commission may establish an earlier refund effective 
        date.''.
          (2) By striking the second and third sentences.
          (3) By striking out ``the refund effective date or 
        by'' and ``, whichever is earlier,'' in the fifth 
        sentence.
          (4) In the seventh sentence by striking ``through a 
        date fifteen months after such refund effective date'' 
        and insert ``and prior to the conclusion of the 
        proceeding'' and by striking the proviso.

SEC. 1292. ACCOUNTS AND REPORTS.

   Section 318 of the Federal Power Act is amended by adding 
the following at the end thereof: ``This section shall not 
apply to sections 301 and 304 of this Act.''.

SEC. 1293. MARKET-BASED RATES.

   Section 205 of the Federal Power Act is amended by adding 
the following new subsection at the end thereof:
  ``(g) For each public utility granted the authority by the 
Commission to sell electric energy at market-based rates, the 
Commission shall review the activities and characteristics of 
such utility not less frequently than annually to determine 
whether such rates are just and reasonable. Each such utility 
shall notify the Commission promptly of any change in the 
activities and characteristics relied upon by the Commission in 
granting such public utility the authority to sell electric 
energy at market-based rates. If the Commission finds that:
          ``(1) a rate charged by a public utility authorized 
        to sell electric energy at market-based rates is 
        unjust, unreasonable, unduly discriminatory or 
        preferential,
          ``(2) the public utility has intentionally engaged in 
        an activity that violates any other rule, tariff, or 
        order of the Commission, or
          ``(3) any violation of the Electric Reliability Act 
        of 2005,
the Commission shall issue an order immediately modifying or 
revoking the authority of that public utility to sell electric 
energy at market-based rates.''.

SEC. 1294. ENFORCEMENT.

  (a) Complaints.--Section 306 of the Federal Power Act (16 
U.S.C. 825e) is amended as follows:
          (1) By inserting ``electric utility,'' after ``Any 
        person,''.
          (2) By inserting ``, transmitting utility,'' after 
        ``licensee'' each place it appears.
  (b) Review of Commission Orders.--Section 313(a) of the 
Federal Power Act (16 U.S.C. 8251) 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''.
  (c) Investigations.--Section 307(a) of the Federal Power Act 
(16 U.S.C. 825f(a)) is amended as follows:
          (1) By inserting ``, electric utility, transmitting 
        utility, or other entity'' after ``person'' each time 
        it appears.
          (2) By striking the period at the end of the first 
        sentence and inserting 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.''.

SEC. 1295. 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).
  ``(d) The Commission shall, by rule or order, require each 
person or other entity engaged in the transportation of natural 
gas in interstate commerce, or the sale in interstate commerce 
of natural gas for resale for ultimate public consumption for 
domestic, commercial, industrial, or any other use, and each 
broker, dealer, and power marketer involved in any such 
transportation or sale, to maintain, and periodically submit to 
the Commission, such records, in electronic form, of each 
transaction relating to such transmission or sale as may be 
necessary to determine whether any person has employed any 
fraudulent, manipulative, or deceptive device or contrivance in 
contravention of rules promulgated by the Commission.''.

SEC. 1296. SAVINGS PROVISION.

  Nothing in this title or in any amendment made by this title 
shall be construed to affect the authority of any court to make 
a determination in any proceeding commenced before the 
enactment of this Act regarding the authority of the Federal 
Energy Regulatory Commission to permit any person to sell or 
distribute electric energy at market-based rates.
  In section 25C(b)(1)(A) of the Internal Revenue Code of 1986, 
as proposed to be added by section 1311 of the bill, insert 
after clause (iii) the following new clauses:

                          (iv) $150 for each electric heat pump 
                        water heater,
                          (v) $200 for each advanced natural 
                        gas, oil, propane furnace, or hot water 
                        boiler installed in 2006 ($150 for 
                        equipment installed in 2007, $100 for 
                        equipment installed in 2008),
                          (vi) $150 for each advanced natural 
                        gas, oil, or propane water heater,
                          (vii) $50 for each mid-efficiency 
                        natural gas, oil, or propane water 
                        heater,
                          (viii) $50 for an advanced main air 
                        circulating fan which is installed in a 
                        furnace with an Annual Fuel Utilization 
                        Efficiency of less than 92 percent,
                          (ix) $150 for each advanced 
                        combination space and water heating 
                        system,
                          (x) $50 for each mid-efficiency 
                        combination space and water heating 
                        system,
                          (xi) $250 for each geothermal heat 
                        pump, and
                          (xii) $250 for each advanced central 
                        air conditioner or central heat pump 
                        ($150 for equipment installed in 2008).
  In section 25C(a) of the Internal Revenue Code of 1986, as 
proposed to be added by section 1311 of the bill, insert after 
paragraph (3) the following new paragraph:

          (4) the energy efficient building property described 
        in clauses (iv) through (xii) of subsection (b)(1)(A).
  In section 25C(b) of the Internal Revenue Code of 1986, as 
proposed to be added by section 1311 of the bill, insert after 
paragraph (2) the following new paragraph:

          (3) Safety certifications.--No credit shall be 
        allowed under this section for an item of property 
        specified in clause (iv) through (xii) of paragraph (1) 
        unless such property meets the performance and quality 
        standards, and the certification requirements (if any), 
        which--
                  (A) 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),
                  (B) in the case of the energy efficiency 
                ratio (EER) for property described in clause 
                (viii) or (ix) of subsection (d)(1)(B)--
                          (i) require measurements to be based 
                        on published data which is tested by 
                        manufacturers at 95 degrees Fahrenheit, 
                        and
                          (ii) do not require ratings to be 
                        based on certified data of the Air 
                        Conditioning and Refrigeration 
                        Institute, and
                  (C) are in effect at the time of the 
                acquisition of the property.
  In section 25C(c) of the Internal Revenue Code of 1986, as 
proposed to be added by section 1311 of the bill, add at the 
end the following new paragraphs:

          (4) 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 1.7 in the 
                standard Department of Energy test procedure,
                  (B) an advanced natural gas, oil, propane 
                furnace, or hot water boiler which achieves at 
                least 92 percent annual fuel utilization 
                efficiency (AFUE) and which has an advanced 
                main air circulating fan,
                  (C) an advanced natural gas, oil, or propane 
                water heater which has an energy factor of at 
                least 0.80 in the standard Department of Energy 
                test procedure,
                  (D) a mid-efficiency natural gas, oil, or 
                propane water heater which has an energy factor 
                of at least 0.65 but less than 0.80 in the 
                standard Department of Energy test procedure,
                  (E) an advanced main air circulating fan 
                which has an annual electricity use of no more 
                than 2 percent of the total annual energy use 
                (as determined in the standard Department of 
                Energy test procedures) and which is used in a 
                new natural gas, propane, or oil-fired furnace,
                  (F) an advanced combination space and water 
                heating system which has a combined energy 
                factor of at least 0.80 and a combined annual 
                fuel utilization efficiency (AFUE) of at least 
                78 percent in the standard Department of Energy 
                test procedure,
                  (G) a mid-efficiency combination space and 
                water heating system which has a combined 
                energy factor of at least 0.65 but less than 
                0.80 and a combined annual fuel utilization 
                efficiency (AFUE) of at least 78 percent in the 
                standard Department of Energy test procedure,
                  (H) a geothermal heat pump which has water 
                heating capability by a desuperheater or full-
                condensing option and which has an energy 
                efficiency ratio (EER) of at least 18 for 
                ground-loop systems, at least 21 for ground-
                water systems, and at least 17 for direct 
                GeoExchange systems; and
                  (I) a central air conditioner or central heat 
                pump which meets the Energy Star specifications 
                as set by the Environmental Protection Agency. 
                The specifications must be made effective after 
                December 31, 2005, and must be current as of 
                the date of the expenditure or made effective 
                later in the calendar year of the expenditure.
          (5) Labor costs.--Expenditures for labor costs 
        properly allocable to the onsite preparation, assembly, 
        or original installation of the property and for piping 
        or wiring to interconnect property described in 
        paragraph (4) to the dwelling unit shall be taken into 
        account for purposes of this section.
  In subtitle B of title XIII, add at the end the following:

SEC. 1318. 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) is amended by 
adding at the end the following new section:

``SEC. 45K. NEW ENERGY EFFICIENT HOME CREDIT.

  ``(a) In General.--For purposes of section 38, in the case of 
an eligible contractor with respect to a qualified new energy 
efficient home, the credit determined under this section for 
the taxable year with respect to such home is an amount equal 
to the aggregate adjusted bases of all energy efficient 
property installed in such home during construction of such 
home.
  ``(b) Limitations.--
          ``(1) Maximum credit.--
                  ``(A) In general.--The credit allowed by this 
                section with respect to a dwelling unit shall 
                not exceed--
                          ``(i) in the case of a dwelling unit 
                        described in clause (i) or (iii) of 
                        subsection (c)(3)(C), $1,000, and
                          ``(ii) in the case of a dwelling unit 
                        described in clause (ii) or (iv) of 
                        subsection (c)(3)(C), $2,000.
                  ``(B) Prior credit amounts on same dwelling 
                unit taken into account.--If a credit was 
                allowed under subsection (a) with respect to a 
                dwelling unit in 1 or more prior taxable years, 
                the amount of the credit otherwise allowable 
                for the taxable year with respect to such 
                dwelling unit shall be reduced by the sum of 
                the credits allowed under subsection (a) with 
                respect to the dwelling unit for all prior 
                taxable years.
          ``(2) Coordination with certain credits.--For 
        purposes of this section--
                  ``(A) the basis of any property referred to 
                in subsection (a) shall be reduced by that 
                portion of the basis of any property which is 
                attributable to qualified rehabilitation 
                expenditures (as defined in section 47(c)(2)) 
                or to the energy percentage of energy property 
                (as determined under section 48(a)), and
                  ``(B) expenditures taken into account under 
                section 47 or 48(a) shall not be taken into 
                account under this section.
  ``(c) 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.
        If more than 1 person is described in subparagraph (A) 
        or (B) with respect to any qualified new energy 
        efficient home, such term means the person designated 
        as such by the owner of such home.
          ``(2) Energy efficient property.--The term `energy 
        efficient property' means any energy efficient building 
        envelope component, and any energy efficient heating or 
        cooling equipment or system, which can, individually or 
        in combination with other components, result in a 
        dwelling unit meeting the requirements of this section.
          ``(3) 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 is--
                          ``(i) certified to have a level of 
                        annual heating and cooling energy 
                        consumption which is at least 30 
                        percent below the annual level of 
                        heating and cooling energy consumption 
                        of a comparable dwelling unit 
                        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 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 construction, and 
                        to have building envelope component 
                        improvements account for at least \1/3\ 
                        of such 30 percent,
                          ``(ii) certified to have a level of 
                        annual heating and cooling energy 
                        consumption which is at least 50 
                        percent below such annual level and to 
                        have building envelope component 
                        improvements account for at least \1/5\ 
                        of such 50 percent,
                          ``(iii) a manufactured home which 
                        meets the requirements of clause (i) 
                        and which conforms to Federal 
                        Manufactured Home Construction and 
                        Safety Standards (section 3280 of title 
                        24, Code of Federal Regulations), or
                          ``(iv) a manufactured home which 
                        meets the requirements of clause (ii) 
                        and which conforms to Federal 
                        Manufactured Home Construction and 
                        Safety Standards (section 3280 of title 
                        24, Code of Federal Regulations).
          ``(4) Construction.--The term `construction' includes 
        substantial reconstruction and rehabilitation.
          ``(5) Acquire.--The term `acquire' includes purchase 
        and, in the case of reconstruction and rehabilitation, 
        such term includes a binding written contract for such 
        reconstruction or rehabilitation.
          ``(6) Building envelope component.--The term 
        `building envelope component' means--
                  ``(A) any sealant, 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--
                          ``(i) are specifically and primarily 
                        designed to reduce the heat gain of 
                        such dwelling unit, and
                          ``(ii) meet the Energy Star program 
                        requirements.
  ``(d) Certification.--
          ``(1) Method of certification.--A certification 
        described in subsection (c)(3)(C) shall be determined 
        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.--A certification described in subsection 
        (c)(3)(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 determined 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 
determined.
  ``(f) Special Rule With Respect to Buildings With Energy 
Efficient Property.--In any case in which a deduction under 
section 200 or a credit under section 25C has been allowed with 
respect to property in connection with a dwelling unit, the 
level of annual heating and cooling energy consumption of the 
comparable dwelling unit referred to in clauses (i) and (ii) of 
subsection (c)(3)(C) shall be determined assuming such 
comparable dwelling unit contains the property for which such 
deduction or credit has been allowed.
  ``(g) Application of Section.--
          ``(1) 50 percent homes.--In the case of any dwelling 
        unit described in clause (ii) or (iv) of subsection 
        (c)(3)(C), subsection (a) shall apply to qualified new 
        energy efficient homes acquired during the period 
        beginning on the date of the enactment of this section, 
        and ending on December 31, 2009.
          ``(2) 30 percent homes.--In the case of any dwelling 
        unit described in clause (i) or (iii) of subsection 
        (c)(3)(C), subsection (a) shall apply to qualified new 
        energy efficient homes acquired during the period 
        beginning on the date of the enactment of this section, 
        and ending on December 31, 2007.''.
  (b) Credit Made Part of General Business Credit.--Section 
38(b) (relating to current year business credit) is amended by 
striking ``plus'' at the end of paragraph (19), by striking the 
period at the end of paragraph (18) and inserting ``, plus'', 
and by adding at the end the following new paragraph:
          ``(21) the new energy efficient home credit 
        determined under section 45K(a).''.
  (c) Basis Adjustment.--Subsection (a) of section 1016 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 45K(e), in 
        the case of amounts with respect to which a credit has 
        been allowed under section 45K.''.
  (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 45K(a).''.
  (e) 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 new item:


``Sec. 45K. New energy efficient home credit.''.

  (f) Effective Date.--The amendments made by this section 
shall apply to taxable years ending after the date of the 
enactment of this Act.

SEC. 1319. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

  (a) In General.--Part VI of subchapter B of chapter 1 
(relating to itemized deductions for individuals and 
corporations) is amended by inserting after section 179B the 
following new section:

``SEC. 179C. 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 the taxable 
year and all prior taxable years shall not exceed an amount 
equal to the product of--
          ``(1) $2.25, and
          ``(2) the square footage of the building.
  ``(c) Definitions.--For purposes of this section--
          ``(1) Energy efficient commercial building 
        property.--The term `energy efficient commercial 
        building property' means property--
                  ``(A) which is installed on or in any 
                building located in the United States,
                  ``(B) 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
                  ``(C) 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).
        A building described in subparagraph (A) may include 
        any residential rental property, including any low-rise 
        multifamily structure or single family housing property 
        which is not within the scope of Standard 90.1-2001, 
        but shall not include any qualified new energy 
        efficient home (within the meaning of section 
        45K(d)(3)) for which a credit under section 45K has 
        been allowed.
          ``(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)(C) is not met, but
                          ``(ii) there is a certification in 
                        accordance with paragraph (6) that any 
                        system referred to in subsection 
                        (c)(1)(B) satisfies the energy-savings 
                        targets established by the Secretary 
                        under subparagraph (B) with respect to 
                        such system,
                then the requirement of subsection (c)(1)(C) 
                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 `$.75' for `$2.25'.
                  ``(B) Regulations.--The Secretary, after 
                consultation with the Secretary of Energy, 
                shall establish a target for each system 
                described in subsection (c)(1)(B) which, if 
                such targets were met for all such systems, the 
                building would meet the requirements of 
                subsection (c)(1)(C).
          ``(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 or, in the case of residential 
        property, the 2005 California Residential Alternative 
        Calculation Method Approval Manual. These regulations 
        shall meet the following requirements:
                  ``(A) In calculating tradeoffs and energy 
                performance, the regulations shall prescribe 
                the costs per unit of energy and power, such as 
                kilowatt hour, kilowatt, gallon of fuel oil, 
                and cubic foot or Btu of natural gas, which may 
                be dependent on time of usage. If a State has 
                developed annual energy usage and cost 
                calculation procedures based on time of usage 
                costs for use in the performance standards of 
                the State's building energy code before the 
                effective date of this section, the State may 
                use those annual energy usage and cost 
                calculation procedures in lieu of those adopted 
                by the Secretary.
                  ``(B) The calculation methods under this 
                paragraph need not comply fully with section 11 
                of Standard 90.1-2001.
                  ``(C) The calculation methods shall be fuel 
                neutral, such that the same energy efficiency 
                features shall qualify a building for the 
                deduction under this section regardless of 
                whether the heating source is a gas or oil 
                furnace or an electric heat pump. The reference 
                building for a proposed design which employs 
                electric resistance heating shall be modeled as 
                using a heat pump.
                  ``(D) The calculation methods shall provide 
                appropriate calculated energy savings for 
                design methods and technologies not otherwise 
                credited in either Standard 90.1-2001 or in the 
                2005 California Nonresidential Alternative 
                Calculation Method Approval Manual, including 
                the following:
                          ``(i) Natural ventilation.
                          ``(ii) Evaporative cooling.
                          ``(iii) Automatic lighting controls 
                        such as occupancy sensors, photocells, 
                        and timeclocks.
                          ``(iv) Daylighting.
                          ``(v) Designs utilizing semi-
                        conditioned spaces which maintain 
                        adequate comfort conditions without air 
                        conditioning or without heating.
                          ``(vi) Improved fan system 
                        efficiency, including reductions in 
                        static pressure.
                          ``(vii) Advanced unloading mechanisms 
                        for mechanical cooling, such as 
                        multiple or variable speed compressors.
                          ``(viii) The calculation methods may 
                        take into account the extent of 
                        commissioning in the building, and 
                        allow the taxpayer to take into account 
                        measured performance which exceeds 
                        typical performance.
                          ``(ix) On-site generation of 
                        electricity, including combined heat 
                        and power systems, fuel cells, and 
                        renewable energy generation such as 
                        solar energy.
                          ``(x) Wiring with lower energy losses 
                        than wiring satisfying Standard 90.1-
                        2001 requirements for building power 
                        distribution systems.
          ``(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 public property, 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 
        public entity which is 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) Coordination With Other Tax Benefits.--
          ``(1) No double benefit.--No deduction shall be 
        allowed under subsection (a) with respect to any 
        building for which a credit under section 45K has been 
        allowed.
          ``(2) Special rule with respect to buildings with 
        energy efficient property.--In any case in which a 
        deduction under section 200 or a credit under section 
        25C has been allowed with respect to property in 
        connection with a building, the annual energy and power 
        costs of the reference building referred to in 
        subsection (c)(1)(C) shall be determined assuming such 
        reference building contains the property for which such 
        deduction or credit has been allowed.
  ``(h) 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)(C) or (d)(1)(A) is not fully 
        implemented.
  ``(i) Termination.--This section shall not apply with respect 
to property placed in service after December 31, 2010.''.
  (b) Conforming Amendments.--
          (1) Section 1016(a) 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 179C(e).''.
          (2) Section 1245(a) is amended by inserting ``179C,'' 
        after ``179B,'' 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 179C''.
          (4) 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.''.
          (5) Section 312(k)(3)(B) is amended by striking 
        ``section 179, 179A, or 179B'' each place it appears in 
        the heading and text and inserting ``section 179, 179A, 
        179B, or 179C''.
  (c) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 is amended by inserting after section 
179B the following new item:

``Sec. 179C. Energy efficient commercial buildings deduction.''.

  (d) Effective Date.--The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act in taxable years ending after such date.

SEC. 1320. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY.

  (a) In General.--Section 48(a)(3)(A) (defining energy 
property), as amended by this title, is amended by striking 
``or'' at the end of clause (ii), by inserting ``or'' at the 
end of clause (iii), and by adding at the end the following:
                          ``(iv) combined heat and power system 
                        property,''.
  (b) Combined Heat and Power System Property.--Section 48 
(relating to energy credit), as amended by this title, is 
amended by adding at the end the following new subsection:
  ``(c) Combined Heat and Power System Property.--For purposes 
of subsection (a)(3)(A)(iv)--
          ``(1) Combined heat and power system property.--The 
        term `combined heat and power system property' means 
        property comprising a system--
                  ``(A) which uses the same energy source for 
                the simultaneous or sequential generation of 
                electrical power, mechanical shaft power, or 
                both, in combination with the generation of 
                steam or other forms of useful thermal energy 
                (including heating and cooling applications),
                  ``(B) which has an electrical capacity of not 
                more than 15 megawatts or a mechanical energy 
                capacity of not more than 2,000 horsepower or 
                an equivalent combination of electrical and 
                mechanical energy capacities,
                  ``(C) which produces--
                          ``(i) at least 20 percent of its 
                        total useful energy in the form of 
                        thermal energy which is not used to 
                        produce electrical or mechanical power 
                        (or combination thereof), and
                          ``(ii) at least 20 percent of its 
                        total useful energy in the form of 
                        electrical or mechanical power (or 
                        combination thereof),
                  ``(D) the energy efficiency percentage of 
                which exceeds 60 percent, and
                  ``(E) which is placed in service before 
                January 1, 2009.
          ``(2) Special rules.--
                  ``(A) Energy efficiency percentage.--For 
                purposes of this subsection, the energy 
                efficiency percentage of a system is the 
                fraction--
                          ``(i) the numerator of which is the 
                        total useful electrical, thermal, and 
                        mechanical power produced by the system 
                        at normal operating rates, and expected 
                        to be consumed in its normal 
                        application, and
                          ``(ii) the denominator of which is 
                        the lower heating value of the fuel 
                        sources for the system.
                  ``(B) Determinations made on btu basis.--The 
                energy efficiency percentage and the 
                percentages under paragraph (1)(C) shall be 
                determined on a Btu basis.
                  ``(C) Input and output property not 
                included.--The term `combined heat and power 
                system property' does not include property used 
                to transport the energy source to the facility 
                or to distribute energy produced by the 
                facility.
                  ``(D) Public utility property.--
                          ``(i) Accounting rule for public 
                        utility property.--If the combined heat 
                        and power system property is public 
                        utility property (as defined in section 
                        168(i)(10)), the taxpayer may only 
                        claim the credit under subsection (a) 
                        if, with respect to such property, the 
                        taxpayer uses a normalization method of 
                        accounting.
                          ``(ii) Certain exception not to 
                        apply.--The matter in subsection (a)(3) 
                        which follows subparagraph (D) thereof 
                        shall not apply to combined heat and 
                        power system property.
                  ``(E) Nonapplication of certain rules.--For 
                purposes of determining if the term `combined 
                heat and power system property' includes 
                technologies which generate electricity or 
                mechanical power using back-pressure steam 
                turbines in place of existing pressure-reducing 
                valves or which make use of waste heat from 
                industrial processes such as by using organic 
                rankine, stirling, or kalina heat engine 
                systems, paragraph (1) shall be applied without 
                regard to subparagraphs (A), (C), and (D) 
                thereof.
          ``(3) Systems using bagasse.--If a system is designed 
        to use bagasse for at least 90 percent of the energy 
        source--
                  ``(A) paragraph (1)(D) shall not apply, but
                  ``(B) the amount of credit determined under 
                subsection (a) with respect to such system 
                shall not exceed the amount which bears the 
                same ratio to such amount of credit (determined 
                without regard to this paragraph) as the energy 
                efficiency percentage of such system bears to 
                60 percent.
  (c) Effective Date.--The amendments made by this subsection 
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. 1320A. EXTENSION THROUGH 2010 FOR PLACING QUALIFIED FACILITIES IN 
                    SERVICE FOR PRODUCING RENEWABLE ELECTRIC ENERGY.

  (a) In General.--Subsection (d) of section 45 is amended by 
striking ``January 1, 2006'' each place it appears and 
inserting ``January 1, 2011''.
  (b) Effective Date.--The amendments made by this section 
shall apply to property originally placed in service on or 
after January 1, 2006.
  At the end of title XIII, insert after subtitle C the 
following new subtitle:

  Subtitle D--Method of Accounting for Oil, Gas, and Primary Products 
                                Thereof

SEC. 1331. PROHIBITION ON USING LAST IN, FIRST-OUT ACCOUNTING FOR OIL, 
                    GAS, AND PRIMARY PRODUCTS THEREOF.

  (a) In General.--Section 472 (relating to last-in, first-out 
inventories) is amended by adding at the end the following new 
subsection:
  ``(h) Oil and Gas.--Notwithstanding any other provision of 
this section--
          ``(1) oil, gas, and any primary product of oil or 
        gas, shall be inventoried separately, and
          ``(2) a taxpayer may not use the method provided in 
        subsection (b) in inventorying oil, gas, and any 
        primary product of oil or gas.''.
  (b) Effective Date and Special Rule.--
          (1) In general.--The amendment made by subsection (a) 
        shall apply to taxable years beginning after the date 
        of the enactment of this Act.
          (2) Change in method of accounting.--In the case of 
        any taxpayer required by the amendment made by this 
        section to change its method of accounting for its 
        first taxable year beginning after the date of the 
        enactment of this Act--
                  (A) such change shall be treated as initiated 
                by the taxpayer,
                  (B) such change shall be treated as made with 
                the consent of the Secretary of the Treasury, 
                and
                  (C) the net amount of the adjustments 
                required to be taken into account by the 
                taxpayer under section 481 of the Internal 
                Revenue Code of 1986 shall be taken into 
                account ratably over a period (not greater than 
                10 taxable years) beginning with such first 
                taxable year.

SEC. 1332. EMERGING TECHNOLOGIES TRUST FUND.

  (a) In General.--Subchapter A of chapter 98 (relating to 
trust fund code) is amended by adding at the end the following 
new section:

``SEC. 9511. EMERGING TECHNOLOGIES TRUST FUND.

  ``(a) Creation of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the 
`Emerging Technologies Trust Fund', consisting of such amounts 
as may be appropriated or credited to such Trust Fund as 
provided in this section or section 9602(b).
  ``(b) Transfers to Trust Fund.--
          ``(1) In general.--There are hereby appropriated to 
        the Emerging Technologies Trust Fund amounts equivalent 
        to the taxes received in the Treasury by reason of 
        section 472(h) (relating to prohibition on use of last-
        in, first-out inventory accounting for oil and gas).
          ``(2) Limitation.--The amount appropriated to the 
        Trust Fund under paragraph (1) for any fiscal year 
        shall not exceed $5,000,000,000.
  ``(c) Expenditures.--Amounts in the Emerging Technologies 
Trust Fund shall be available to the Secretary of Energy to 
carry out a program to research and develop emerging 
technologies for more efficient and renewable energy 
sources.''.
  (b) Clerical Amendment.--The table of sections for such 
subchapter is amended by adding at the end thereof the 
following new item:

``Sec. 9511. Emerging Technologies Trust Fund.''.

  In title XIV, add at the end the following new sections:

SEC. 1452. SMALL BUSINESS COMMERCIALIZATION ASSISTANCE.

  (a) Authority.--The Secretary of Energy shall provide 
assistance, to small businesses with less than 100 employees 
and startup companies, for the commercial application of 
renewable energy and energy efficiency technologies developed 
by or with support from the Department of Energy. Such 
assistance shall be provided through a competitive review 
process.
  (b) Applications.--The Secretary of Energy shall establish 
requirements for applications for assistance under this 
section. Such applications shall contain a commercial 
application plan, including a description of the financial, 
business, and technical support (including support from 
universities and national laboratories) the applicant 
anticipates in its commercial application effort.
  (c) Selection.--The Secretary of Energy shall select 
applicants to receive assistance under this section on the 
basis of which applications are the most likely to result in 
commercial application of renewable energy and energy 
efficiency technologies.
  (d) Limit on Federal Funding.--The Secretary of Energy shall 
provide under this section no more than 50 percent of the costs 
of the project funded.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Energy for carrying out 
this section $200,000,000 for each of the fiscal years 2006 
through 2010, and such sums as may be necessary for each of the 
fiscal years 2011 through 2026.

SEC. 1453. SENSE OF THE CONGRESS.

  It is the sense of the Congress that the President should 
direct the Federal Trade Commission and Attorney General to 
exercise vigorous oversight over the oil markets to protect the 
American people from price gouging and unfair practices at the 
gasoline pump.

SEC. 1454. TRANSPARENCY.

  The Federal Trade Commission, in consultation with the 
Secretary of Energy, shall issue regulations requiring full 
disclosure by refiners and distributors of their wholesale 
motor fuel pricing policies, with a separate listing of each 
component contributing to prices, including the cost of crude 
oil (with exploration, extraction, and transportation costs 
shown separately if the refiner or distributor is also the 
producer of the crude oil), refining, marketing, 
transportation, equipment, overhead, and profit, along with 
ption of any rebates, incentives, and market enhancement 
allowances.
  In title XVI, add at the end the following new section:

SEC. 1614. STUDY OF FINANCING FOR PROTOTYPE TECHNOLOGIES.

  (a) Independent Assessment.--The Secretary of Energy shall 
commission an independent assessment of innovative financing 
techniques to facilitate construction of new renewable energy 
and energy efficiency facilities that might not otherwise be 
built in a competitive market.
  (b) Conduct of the Assessment.--The Secretary of Energy shall 
retain an independent contractor with proven expertise in 
financing large capital projects or in financial services 
consulting to conduct the assessment under this section.
  (c) Content of the Assessment.--The assessment shall include 
a comprehensive examination of all available techniques to 
safeguard private investors against risks (including both 
market-based and government-imposed risks) that are beyond the 
control of the investors. Such techniques may include Federal 
loan guarantees, Federal price guarantees, special tax 
considerations, and direct Federal investment.
  (d) Report.--The Secretary of Energy shall submit the results 
of the independent assessment to the Congress not later than 9 
months after the date of enactment of this section.
                              ----------                              


8. An Amendment To Be Offered by Representative Slaughter of New York, 
               or Her Designee, Debatable for 10 Minutes

  In title I, subtitle C, add at the end the following new 
section:

SEC. 135. INTERMITTENT ESCALATORS.

  Section 543 of the National Energy Conservation Policy Act 
(42 U.S.C. 8253) is amended by adding at the end the following 
new subsection:
  ``(e) Intermittent Escalators.--
          ``(1) Requirement.--Except as provided in paragraph 
        (2), any escalator acquired for installation in a 
        Federal building shall be an intermittent escalator.
          ``(2) Exception.--Paragraph (1) shall not apply at a 
        location outside the United States where the Federal 
        agency determines that to acquire an intermittent 
        escalator would require substantially greater cost to 
        the Government over the life of the escalator.
          ``(3) Additional energy conservation measures.--In 
        addition to complying with paragraph (1), Federal 
        agencies shall incorporate other escalator energy 
        conservation measures, as appropriate.
          ``(4) Definition.--For purposes of this subsection, 
        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.''.
                              ----------                              


 9. An Amendment To Be Offered by Representative Waxman of California, 
               or His Designee, Debatable for 10 Minutes

  At the end of title I, add the following new subtitle and 
make the necessary conforming changes in the table of contents:

                 Subtitle E--Plan to Reduce Oil Demand

SEC. 151. PRESIDENTIAL ACTIONS.

  (a) Proposed Actions.--For purposes of reducing waste of oil 
and decreasing demand for foreign oil, not later than 6 months 
after the date of enactment of this Act, appropriate Federal 
Departments and agencies, as identified by the President, shall 
propose voluntary, regulatory, and other actions sufficient to 
reduce demand for oil in the United States by at least 1.0 
million barrels per day from projected demand for oil in 2013.
  (b) Request to Congress.--If the President determines that 
the Departments and agencies referred to in subsection (a) lack 
authority or funding to implement the actions proposed under 
subsection (a), the President shall request the necessary 
authority or funding from Congress no later than 9 months after 
the date of enactment of this Act.
  (c) Final Actions.--No later than 12 months after the date of 
enactment of this Act, the Departments and agencies referred to 
in subsection (a) shall finalize the actions proposed pursuant 
to subsection (a) for which they have authority and funding.
  (d) Presidential Determination.--The Departments and agencies 
referred to in subsection (a) may finalize regulatory and other 
actions pursuant to subsection (c) that achieve demand 
reductions less than the demand reduction specified in 
subsection (a) if the President, after public notice and 
opportunity for comment, determines that there are no practical 
opportunities for the nation to further reduce waste of oil.
  (e) CAFE.--Nothing in this section shall mandate any changes 
in average fuel economy standards (``CAFE'' standards) 
prescribed under chapter 329 of title 49 of the United States 
Code.
                              ----------                              


10. An Amendment To Be Offered by Representative Oberstar of Minnesota, 
               or His Designee, Debatable for 10 Minutes

  At the end of subtitle A of title II, add the following (and 
conform the table of contents accordingly):

SEC. 209. 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.
                              ----------                              


11. An Amendment To Be Offered by Representative Abercrombie of Hawaii, 
               or His Designee, Debatable for 10 Minutes

  In title II, subtitle A, add at the end the following new 
section:

SEC. 209. SUGAR CANE ETHANOL PILOT PROGRAM.

  (a) Definitions.--In this section:
          (1) Program.--The term ``program'' means the Sugar 
        Cane Ethanol Pilot Program established by subsection 
        (b).
          (2) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
  (b) Establishment.--There is established within the 
Department of Energy a program to be known as the ``Sugar Cane 
Ethanol Pilot Program''.
  (c) Project.--
          (1) In general.--In carrying out the program, the 
        Secretary shall establish a pilot project that is--
                  (A) located in the State of Hawaii; and
                  (B) designed to study the creation of ethanol 
                from cane sugar.
          (2) Requirements.--A pilot project described in 
        paragraph (1) shall--
                  (A) be limited to the production of ethanol 
                in Hawaii in a way similar to the existing 
                program for the processing of corn for ethanol 
                to show that the process can be applicable to 
                cane sugar;
                  (B) include information on how the scale of 
                projection can be replicated once the sugar 
                cane industry has site located and constructed 
                ethanol production facilities; and
                  (C) not last more than 3 years.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $8,000,000, to remain 
available until expended.
                              ----------                              


12. An Amendment To Be Offered by Representative Kaptur of Ohio, or Her 
                   Designee, Debatable for 10 Minutes

  In title III, subtitle A, add at the end the following new 
section (and amend the table of contents accordingly):

SEC. 305. STRATEGIC FUELS RESERVE.

  The Energy Policy and Conservation Act is amended--
          (1) in section 2(2) (42 U.S.C. 6201(2)), by striking 
        ``Strategic Petroleum Reserve'' and inserting 
        ``Strategic Fuels Reserve'';
          (2) in section 3 (42 U.S.C. 6202)--
                  (A) in paragraph (8)(C), by striking 
                ``petroleum products'' each place it appears 
                and inserting ``fuel products''; and
                  (B) by adding at the end the following new 
                paragraph:
          ``(11) The term `fuel products' means petroleum 
        products and alternative fuels, including ethanol and 
        biodiesel.'';
          (3) in title I (42 U.S.C. 6212 et seq.) by striking 
        ``Strategic Petroleum Reserve'' each place it appears 
        and inserting ``Strategic Fuels Reserve'';
          (4) in part B of title I (42 U.S.C. 6231 et seq.)--
                  (A) by striking ``petroleum products'' each 
                place it appears, including headings (and the 
                corresponding items in the table of contents), 
                and inserting ``fuel products'';
                  (B) by striking ``petroleum product'' each 
                place it appears, including headings (and the 
                corresponding items in the table of contents), 
                and inserting ``fuel product''; and
                  (C) by striking ``Petroleum products'' each 
                place it appears and inserting ``Fuel 
                products'';
          (5) in section 165 (42 U.S.C. 6245)--
                  (A) in paragraph (5), by striking ``of 
                petroleum'' and inserting ``of fuel''; and
                  (B) in paragraph (7), by striking ``Petroleum 
                Accounts'' and inserting ``Fuel Accounts''; and
          (6) in section 167 (42 U.S.C. 6247)--
                  (A) in the section heading (and the 
                corresponding item in the table of contents), 
                by striking ``SPR Petroleum'' and inserting 
                ``SFR Fuel''; and
                  (B) in subsection (a), by striking ``SPR 
                Petroleum'' and inserting ``SFR Fuel''.
                              ----------                              


 13. An Amendment To Be Offered by Representative Conaway of Texas, or 
                 His Designee, Debatable for 10 Minutes

  In title III, subtitle B, add at the end the following new 
section:

SEC. 334. OIL, GAS, AND MINERAL INDUSTRY WORKERS.

  Congress recognizes that a critical component in meeting 
expanded domestic oil and gas supplies is the availability of 
adequate numbers of trained and skilled workers who can 
undertake the difficult, complex, and often hazardous tasks to 
bring new supplies into production. Years of volatility in oil 
and gas prices, and uncertainty over Federal policy on access 
to resources, has created a severe shortage of skilled workers 
for the oil and gas industry. To address this shortage, the 
Secretary of Energy, in consultation with the Secretary of 
Labor, shall evaluate both the short term and longer term 
availability of skilled workers to meet the energy security 
requirements of the United States, addressing the availability 
of skilled labor at both entry level and at more senior levels 
in the oil, gas, and mineral industries. Within twelve months 
of the date of enactment of this Act, the Secretary of Energy, 
the Secretary of Labor, and the Secretary of the Interior shall 
submit to Congress a report with recommendations as appropriate 
to meet the future labor requirements for the domestic 
extraction industries.
                              ----------                              


 14. An Amendment To Be Offered by Representative Solis of California, 
               or Her Designee, Debatable for 10 Minutes

  Strike subtitle D of title III (relating to refinery 
revitalization) and make the necessary conforming changes in 
the table of contents.
                              ----------                              


 15. An Amendment To Be Offered by Representative Udall of New Mexico, 
               or His Designee, Debatable for 10 Minutes

  Strike section 631 (and amend the table of contents 
accordingly).
                              ----------                              


16. An Amendment To Be Offered by Representative Ford of Tennessee, or 
                 His Designee, Debatable for 10 Minutes

  In title VII, subtitle B, part 1, add at the end the 
following new section:

SEC. 713. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.

  (a) Program.--The Administrator of the Environmental 
Protection Agency shall establish a program to encourage 
domestic production and sales of efficient hybrid and advanced 
diesel vehicles. The program shall include grants to domestic 
automobile manufacturers to--
          (1) encourage production of efficient hybrid and 
        advanced diesel vehicles; and
          (2) provide consumer incentives, including discounts 
        and rebates, for the purchase of efficient hybrid and 
        advanced diesel vehicles.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Administrator of the Environmental 
Protection Agency for carrying out this section $300,000,000 
for each of the fiscal years 2006 through 2015.
                              ----------                              


17. An Amendment To Be Offered by Representative Kaptur of Ohio, or Her 
                   Designee, Debatable for 10 Minutes

  In section 722(a), strike ``15'' and insert ``20''.
  In section 722(e)(1), strike ``$20,000,000'' and 
``$15,000,000''.
                              ----------                              


18. An Amendment To Be Offered by Representative Millender-McDonald of 
         California, or Her Designee, Debatable for 10 Minutes

  In title VII, after section 743 insert the following new 
section and make the necessary conforming changes in the table 
of contents:

SEC. 743A. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION PROGRAM.

  (a) Establishment.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of 
Energy, 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 5 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 2005.
          (2) $35,000,000 for fiscal year 2006.
          (3) $45,000,000 for fiscal year 2007.
          (4) Such sums as are necessary for each of fiscal 
        years 2008 and 2009.
                              ----------                              


19. An Amendment To Be Offered by Representative Blumenauer of Oregon, 
               or His Designee, Debatable for 10 Minutes

  In title VII, subtitle D, after section 754, insert the 
following new section (and amend the table of contents 
accordingly):

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 State or local 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 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).
                              ----------                              


20. An amendment To Be Offered by Representative Jackson-Lee of Texas, 
               or Her Designee, Debatable for 10 Minutes

  In section 910, add at the end the following new subsection:
  (h) 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 
social disadvantaged farmers and ranchers.
                              ----------                              


21. An Amendment To Be Offered by Representative Tom Davis of Virginia, 
               or His Designee, Debatable for 10 Minutes

  Strike section 978 (and conform the table of contents 
accordingly).
                              ----------                              


22. An Amendment To Be Offered by Representative Walsh of New York, or 
                 His Designee, Debatable for 10 Minutes


SEC. 1452. NATIONAL PRIORITY PROJECT DESIGNATION.

  (a) Definitions.--For purposes of this section:
          (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
          (2) Department.--The term ``Department'' means the 
        Department of Energy.
  (b) Designation of National Priority Projects.--
          (1) In general.--There is hereby established the 
        National Priority Project designation, which shall be 
        evidenced by a medal bearing the inscription ``National 
        Priority Project''. The medal shall be of such design 
        and materials and bear such additional inscriptions as 
        the President may prescribe.
          (2) Making and presentation of designation.--
                  (A) In general.--The President, on the basis 
                of recommendations made by the Secretary, shall 
                annually designate organizations, if any, that 
                have--
                          (i) advanced the field of renewable 
                        energy technology and contribute to 
                        North American energy independence; and
                          (ii) a project that has been 
                        certified by the Secretary under 
                        subsection (c).
                  (B) Presentation.--The President shall 
                designate projects with such ceremonies as the 
                President may prescribe.
                  (C) Use of designation.--An organization that 
                receives a designation under this section may 
                publicize its designation as a National 
                Priority Project in its advertising.
                  (D) Categories in which the designation may 
                be given.--Separate designations shall be made 
                to qualifying projects in each of the following 
                categories:
                          (i) Renewable energy generation 
                        projects.
                          (ii) Energy efficient and renewable 
                        energy building projects.
  (c) Application and Certification.--
          (1) Selection criteria.--Certification and selection 
        of the projects to receive the designation shall be 
        based on the following criteria:
                  (A) For all projects.--The project 
                demonstrates that it will install no less than 
                30 megawatts of renewable energy generation 
                capacity.
                  (B) For energy efficient building and 
                renewable energy projects.--In addition to 
                meeting the criteria established in 
                subparagraph (A), building projects shall--
                          (i) comply with nationally recognized 
                        standards for high-performance, 
                        sustainable buildings;
                          (ii) utilize whole-building 
                        integration of energy efficiency and 
                        environmental performance design and 
                        technology, including advanced building 
                        controls;
                          (iii) utilize renewable energy for at 
                        least 50 percent of its energy 
                        consumption;
                          (iv) comply with applicable Energy 
                        Star standards; and
                          (v) include at least 5,000,000 square 
                        feet of enclosed space.
          (2) Application.--
                  (A) Initial applications.--No later than 4 
                months 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 the provisions of this section.
                  (B) Contents.--The application shall describe 
                the project, or planned project, and its plans 
                to meet the criteria listed in paragraph (1).
          (3) Certification.--Not later than 60 days after the 
        application period described in paragraph (2), the 
        Secretary shall certify projects that are reasonably 
        expected to meet the criteria described in paragraph 
        (1).
                              ----------                              


23. An Amendment To be Offered by Representative Engel of New York, or 
                 His Designee, Debatable for 10 Minutes

  In section 1512, in the section heading, strike ``CELLULOSIC 
BIOMASS AND WASTE-DERIVED ETHANOL CONVERSION ASSISTANCE'' 
insert ``CONVERSION ASSISTANCE FOR CELLULOSIC BIOMASS, WASTE-
DERIVED ETHANOL, APPROVED RENEWABLE FUELS''.
  In section 1512, in the proposed subsection (r), in the 
subsection heading, strike ``Cellulosic Biomass and Waste-
derived Ethanol Conversion Assistance'' and insert ``Conversion 
Assistance for Cellulosic Biomass, Waste-derived Ethanol, 
Approved Renewable Fuels''.
  In section 1512, in the proposed subsection (r)(1), strike 
``waste-derived ethanol'' and insert ``, waste-derived ethanol, 
and approved renewable fuels''.
  In section 1512, in the proposed subsection (r)(1), insert 
``or approved renewable fuels'' after ``production of 
ethanol''.
  In section 1512, in the proposed subsection (r)(2)(B), insert 
``or renewable'' after ``uses cellulosic''.
  In section 1512, in the proposed subsection (r), insert after 
paragraph (3) the following new paragraph:
          ``(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, acquatic 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.''.
                              ----------                              


24. An Amendment To Be Offered by Representative Israel of New York, or 
                 His Designee, Debatable for 10 Minutes

  At the end of title XVI, add the following new section:

SEC. 1614. CONSOLIDATION OF GASOLINE INDUSTRY.

  (a) In General.--The Comptroller General of the United States 
shall conduct a study of the consolidation of the refiners, 
importers, producers, and wholesalers of gasoline with the 
sellers of such gasoline at retail. The study shall include an 
analysis of the impact of such consolidation on--
          (1) the retail price of gasoline,
          (2) small business ownership,
          (3) other corollary effects on the market economy of 
        fuel distribution,
          (4) local communities, and
          (5) other market impacts of such consolidation.
  (b) Submission to Congress.--The Comptroller General shall 
submit such study to the Congress not later than one year after 
the date of the enactment of this Act.
                              ----------                              


 25. An Amendment To Be Offered by Representative Kucinich of Ohio, or 
                 His Designee, Debatable for 10 Minutes

  In title XVI, add at the end the following new section (and 
amend the table of contents accordingly):

SEC. 1614. FEASIBILITY STUDY OF MUSTARD SEED BIODIESEL.

  (a) Study.--The Secretary of Energy shall enter into an 
arrangement with the National Academy of Sciences for a study 
to determine the feasibility of using of mustard seed as a 
feedstock for biodiesel.
  (b) Contents.--The study shall include comparisons to other 
biodiesel feedstocks using the following criteria:
          (1) Economics from crop production to biodiesel in 
        the typical percentage blends.
          (2) Adaptability to various geographic and 
        agricultural regions in the United States.
          (3) Percentage and quality of oil content.
          (4) Cetene ratings, viscosity ratings, emissions for 
        the typical percentage blends.
          (5) Potential to enhance oil, pesticide and herbicide 
        qualities.
          (6) Process technologies to convert into biodiesel.
          (7) Usefulness of byproducts from the conversion 
        process.
          (8) Other criteria the National Academy of Sciences 
        considers pertinent.
  (c) Report to Congress.--Not later than 1 year after the date 
of enactment of this Act, the National Academy of Sciences 
shall transmit results of the study to Congress, the Secretary 
of Energy, and the Secretary of Agriculture, including any 
findings and recommendations.
                              ----------                              


26. An Amendment To Be Offered by Representative Holt of New Jersey, or 
                 His Designee, Debatable for 10 Minutes

  In title XVI, add at the end the following new section (and 
amend the table of contents accordingly):

SEC. 1614. STUDY OF FUEL SAVINGS FROM INFORMATION TECHNOLOGY FOR 
                    TRANSPORTATION.

  Not later than 2 years after the date of enactment of this 
Act, the Secretary of Energy shall, in consultation with the 
Secretary of Transportation, report to Congress on the 
potential fuel savings from information technology systems that 
help businesses and consumers to plan their travel and avoid 
delays. These systems may include web-based real-time transit 
information systems, congestion information systems, carpool 
information systems, parking information systems, freight route 
management, and traffic management systems. The report shall 
include analysis of fuel savings, analysis of system costs, 
assessment of local, State, and regional differences in 
applicability, and evaluation of case studies, best practices, 
and emerging technologies from both the private and public 
sector.
                              ----------                              


 27. An Amendment To Be Offered by Representative Grijalva of Arizona, 
               or His Designee, Debatable for 10 Minutes

  Strike section 2005.
                              ----------                              


28. An Amendment To Be Offered by Representative Inslee of Washington, 
               or His Designee, Debatable for 10 Minutes

  At the end of title XXVI add the following:

SEC. __. LIMITATION ON RENT AND OTHER CHARGES WITH RESPECT TO WIND 
                    ENERGY DEVELOPMENT PROJECTS ON PUBLIC LANDS.

  (a) In General.--The Secretary of the Interior may not impose 
rent and other charges, excluding for the cost of processing 
rights-of-way, with respect to any wind energy development 
project on public lands that, in the aggregate, exceed 50 
percent of the maximum amount of rent that could be charged 
with respect to that project under the terms of Bureau of Land 
Management Instruction Memorandum No. 2003-020, dated October 
16, 2002.
  (b) Termination.--Subsection (a) shall not apply after the 
earlier of--
          (1) the date on which the Secretary of the Interior 
        determines there exists at least 10,000 megawatts of 
        electricity generating capacity from non-hydropower 
        renewable energy resources on public lands; or
          (2) the end of the 10-year period beginning on the 
        date of the enactment of this Act.
  (c) State Share not Affected.--This section shall not affect 
any State share of rent and other charges with respect to any 
wind energy development project on public lands.
                              ----------                              


 29. An Amendment To Be Offered by Representative Hastings of Florida, 
               or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new title:

                   TITLE XXVII--ENVIRONMENTAL JUSTICE

SEC. 2701. EXECUTIVE ORDER 12898.

  The provisions of Executive Order 12898, dated February 11, 
1994, pertaining to Federal actions to address environmental 
justice in minority populations and low-income populations, 
shall remain in force until changed by law. In carrying out 
such executive order, the provisions of this title shall apply.

SEC. 2702. ADDITIONAL PROVISIONS RELATING TO ENVIRONMENTAL JUSTICE.

  (a) Definition of Environmental Justice.--For purposes of 
Executive Order 12898, environmental justice is the fair 
treatment and meaningful involvement of all people regardless 
of race, color, national origin, educational level, or income 
with respect to the development, implementation, and 
enforcement of environmental laws, regulations, and policies. 
Environmental justice seeks to ensure that minority and low-
income communities have adequate access to public information 
relating to human health and environmental planning, 
regulations, and enforcement. Environmental justice ensures 
that no population, especially the elderly and children, are 
forced to shoulder a disproportionate burden of the negative 
human health and environmental impacts of pollution or other 
environmental hazard.
  (b) Identification and Prioritization of Environmental 
Justice Communities.--For purposes of Executive Order 12898, 
criteria for defining an environmental justice community shall 
include demographic characteristics, such as percentages of 
minority and low-income residents within an area, as well as--
          (1) health vulnerabilities, such as cancer mortality 
        and incidence rate, infant mortality, low birth weight, 
        asthma, and childhood lead poisoning; and
          (2) environmental conditions, such as facility 
        density and proximity to Corrective Action/Superfund 
        Sites, Enforcement Data (percent and number of 
        uninspected facilities, percent and number of 
        unaddressed violations, average and total penalty and 
        air nonattainment status), emissions, attainment 
        status, indoor air issues, 305b stream data, fish 
        advisories, beach closings, and truck traffic.
  (c) Establishment of Offices of Environmental Justice.--For 
purposes of Executive Order 12898, each of the following shall 
establish an Office of Environmental Justice:
          (1) Department of Health and Human Services.
          (2) Department of Housing and Urban Development.
          (3) Department of Defense.
          (4) Department of Labor.
          (5) Department of Agriculture.
          (6) Department of Transportation.
          (7) Department of Justice.
          (8) Department of the Interior.
          (9) Department of Commerce.
          (10) Department of Energy.
          (11) Environmental Protection Agency.
          (12) Office of Management and Budget.
          (13) Office of Science and Technology Policy.
          (14) Office of the Deputy Assistant to the President 
        for Environmental Policy.
          (15) Office of the Assistant to the President for 
        Domestic Policy.
          (16) National Economic Council.
          (17) Council of Economic Advisers.
          (18) Such other Government officials as the President 
        may designate.
  (d) Integration of Environmental Justice Policies in Agency 
Actions.--For purposes of the environmental justice strategies 
developed by agencies under Executive Order 12898, each agency 
shall integrate the strategy into the operation and mission of 
the agency and explicitly address compliance with this Act, 
including in the following activities:
          (1) Future rulemaking activities.
          (2) The development of any future guidance, 
        environmental reviews (including NEPA, CAA, Federal 
        Land Policy Act), regulation, or procedures for Federal 
        agency programs, policies, or activities that affect 
        human health or the environment.
  (e) Interagency Federal Working Group Coordination and 
Guidance.--The interagency Federal Working Group on 
Environmental Justice (in this section referred to as the 
``Working Group'') shall--
          (1) coordinate an integrated environmental justice 
        training plan for the Federal agencies and offices 
        listed in subsection (c);
          (2) formalize public participation efforts;
          (3) survey the Federal agencies and offices to 
        determine what is effective and how to best facilitate 
        outreach without duplicating efforts;
          (4) develop a strategy for allocating 
        responsibilities and ensuring participation, even when 
        faced with competing agency priorities; and
          (5) coordinate plans to communicate research results 
        so reporting and outreach activities produce more 
        useful and timely information.
  (f) Agency Public Participation Efforts.--
          (1) Outreach efforts.--Each Federal agency listed in 
        subsection (c) shall carry out and report outreach 
        activities to the Working Group, including the 
        following:
                  (A) Respond directly to inquiries from the 
                public and other stakeholders.
                  (B) Maintain websites and listservers.
                  (C) Produce and distribute hardcopy documents 
                and multimedia products.
                  (D) Conduct or sponsor briefings, lectures, 
                and press conferences.
                  (E) Testify before Congress or other 
                government bodies.
                  (F) Finance scholarships, fellowships, and 
                internships.
                  (G) Support museum exhibits and other public 
                displays.
                  (H) Sponsor, participate, or otherwise 
                contribute to meetings attended by 
                stakeholders.
                  (I) Provide scientifically-sound content for 
                K-12 education activities; and
                  (J) fund outreach efforts managed outside the 
                Federal Government.
          (2) Stakeholders.--To ensure their active public 
        participation and to provide input early in 
        environmental decision-making, Federal agencies along 
        with the Working Group shall develop ways to enhance 
        partnerships and coordination with stakeholders, 
        including affected communities, Federal, Tribal, State, 
        and local governments, environmental organizations, 
        nonprofit organizations, academic institutions 
        (including Historically Black Colleges and Universities 
        (HBCUs), Hispanic Serving Institutions (HSIs), and 
        Tribal Colleges), and business and industry.
  (g) Community Technology Centers.--
          (1) In general.--Federal agencies shall fund 
        community technology centers to assist with technical 
        assistance issues in the environmental justice area.
          (2) Description.--In this subsection, the term 
        ``community technology center'' (CTC) refers to 
        programs with the goal of providing at least 10 hours 
        of open access a week for anyone in a community, 
        especially youth and adults in low-income urban and 
        rural communities, for purposes of providing technical 
        assistance to communities experiencing issues of 
        environmental hazards.
          (3) Location.--A community technology center may be 
        located in places such as libraries, community centers, 
        schools, churches, social service agencies, low-income 
        residential housing complexes, and Minority Academic 
        Institutions (such as Historically Black Colleges and 
        Universities, Hispanic Serving Institutions, and Tribal 
        Colleges).
          (4) Activities of community technology center.--A 
        community technology center funded under this section 
        shall--
                  (A) assist community members in becoming 
                active participants in cleanup and 
                environmental development activities;
                  (B) provide independent and credible 
                technical assistance to communities affected by 
                hazardous waste contamination;
                  (C) review and interpret technical documents 
                and other materials;
                  (D) sponsor workshops, short courses, and 
                other learning experiences to explain basic 
                science and environmental policy;
                  (E) inform community members about existing 
                technical assistance materials, such as 
                publications, videos, and web sites;
                  (F) offer training to community leaders in 
                facilitation and conflict resolution among 
                stakeholders; and
                  (G) create technical assistance materials 
                tailored to the identified needs of a 
                community.
                              ----------                              


30. An Amendment To Be Offered by Representative Castle of Delaware, or 
                 His Designee, Debatable for 10 Minutes

  In title III, strike section 320, and make the necessary 
conforming changes in the table of contents.

                                  
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