Energy Policy Act of 2005 - Sets forth an energy research and development program, including: (1) energy efficiency; (2) renewable energy; (3) oil and gas; (4) coal; (5) Indian energy; (6) nuclear matters and security; (7) vehicles and motor fuels, including ethanol; (8) hydrogen; (9) electricity; and (10) energy tax incentives.
Amends the National Energy Conservation Policy Act to: (1) institute grant programs for low-income community energy efficiency and energy efficient public buildings; and (2) revise energy conservation standards for additional consumer products.
Amends the Energy Policy Act of 1992 to prescribe incentive payments for renewable energy production facilities.
Amends the Federal Power Act to prescribe guidelines for hydroelectric licensing proposals for alternative conditions and requirements governing project works within a federal reservation.
Instructs the Secretary of Energy to make incentive payments to promote hydroelectric production.
Amends the Natural Gas Act with respect to: (1) construction, expansion, or operation of liquefaction or gasification natural gas terminals; and (2) natural gas market transparency.
Prescribes procedural guidelines for the Secretaries of the Interior and of Agriculture to enter into a Memorandum of Understanding regarding oil and gas leasing on federal lands.
United States Refinery Revitalization Act of 2005 - Prescribes procedural guidelines for: (1) designation of refinery revitalization zones; and (2) coordination and expeditious review of permitting process for such zones.
Sets forth a Clean Coal Power Initiative campaign that includes grants to universities to establish Centers of Excellence for Energy Systems of the Future.Authorizes federal loan guarantees for designated coal gasification projects.
Amends the Energy Policy Act of 1992 to prescribe implementation guidelines for a clean air coal program.
Indian Tribal Energy Development and Self-Determination Act of 2005 - Amends the Department of Energy Organization Act and the Energy Policy Act of 1992 to establish the Office of Indian Energy Policy and Programs to promote Indian tribal energy resource development through grants and loans.
Prescribes guidelines for energy efficiency in federally assisted housing on Indian lands.
Price-Anderson Amendments Act of 2005 - Amends the Atomic Energy Act of 1954 to modify and extend indemnification authority and liability limits for Nuclear Regulatory Commission (NRC) licensees and Department of Energy (DOE) contractors.
Prohibits assumption by the U.S. Government of liability for certain foreign incidents.
Directs the NRC to establish a training and fellowship program for individuals with critical nuclear safety regulatory skills.
Revises requirements for: (1) uranium sales; (2) special demonstration projects for the uranium mining industry; (3) whistleblower protection requirements; (4) medical isotope production; (5) uranium enrichment facilities; and (6) the national uranium stockpile.
Instructs the Secretary of Energy to establish an Advanced Reactor Hydrogen Co-Generation Project.
Provides for disposal of: (1) Fernald uranium processing facility byproduct material; and (2) greater-than-class C radioactive waste.
Establishes programs to promote: (1) hybrid vehicles; (2) hybrid retrofit and electric conversion technologies for combustion engine vehicles; and (3) alternative fuels for dual-fueled vehicles.
Sets forth implementation guidelines for pilot programs that target: (1) alternative fueled vehicles; (2) fuel cell buses and alternative fuel and altra-low sulfur diesel fuel (clean) school buses; (3) advanced vehicles; and (4) hybrid vehicles.
Instructs the Secretary of Energy to conduct programs that address: (1) production of hydrogen from diverse energy sources; and (2) solar and wind technologies.
Directs the Secretary to conduct: (1) a secondary electric vehicle battery use program; and (2) a Next Generation Lighting Initiative.
Directs the Secretary of Energy to implement initiatives regarding: (1) energy efficiency; (2) distributed energy and electric energy systems; (3) renewable energy; (4) nuclear energy; (5) fossil energy; (6) ultra-deepwater and unconventional natural gas, and other petroleum resources; (7) energy sciences; (8) energy and environment; (9) United States-Israel cooperation; and (10) Department of Energy management.
Electric Reliability Act of 2005 - Amends the Federal Power Act to grant Federal Energy Regulatory Commission (FERC) regulatory jurisdiction over an Electric Reliability Organization.
Amends the Public Utility Regulatory Policies Act of 1978 to: (1) require electric utilities to make net metering and smart metering available upon consumer request; and (2) terminate mandatory purchase and sale requirements pertaining to cogeneration and small power production utilities.
Public Utility Holding Company Act of 2005 - Repeals the Public Utility Holding Company Act of 1935.
Amends the Federal Power Act to: (1) direct FERC to promulgate market transparency rules governing wholesale electric energy and transmission services; and (2) prohibit round trip trading.
Authorizes the Federal Trade Commission (FTC) to issue rules that prohibit in the absence of consumer consent: (1) the change of selection of an electric utility ("slamming"); and (2) the sale of goods and services to an electric consumer ("cramming").
Revises Federal Power Act requirements for electric utility mergers.
Directs FERC to convene a joint board to study the issue of security constrained economic dispatch for a market region.
Retains the effect of Department of Energy Order No. 202-03-2 (August 28, 2003) regarding transmission security.
Extends the attainment date for certain downwind ozone nonattainment areas.
Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency (Administrator) to promulgate regulations ensuring that domestic motor vehicle fuel consumption includes renewable fuel containing ethanol.
Authorizes the Secretary of Energy to make grants to provide assistance to merchant producers of methyl tertiary butyl ether (MTBE) in making the transition from producing MTBE to producing iso-octane, iso-octene, alkylates, or renewable fuels. Prohibits the use of MTBE in motor vehicle fuel by December 31, 2014, in any state that does not specifically authorize it. Authorizes the President to determine by June 30, 2014, that this prohibition against the use of MTBE in motor vehicle fuel shall not take place and that the legal authority to prohibit its use in motor vehicle fuel shall become null and void.
Eliminates the oxygen content requirement for reformulated gasoline.
Conditions the Administrator's approval of state fuel restrictions upon a finding that they will neither cause fuel supply or distribution interruptions nor have a significant adverse impact on fuel producibility.
Authorizes the Secretary of Energy to: (1) make loan guarantees for private sector construction of facilities for the processing and conversion of municipal solid waste and cellulosic biomass into fuel ethanol and other commercial byproducts; and (2) provide grants for construction of ethanol production facilities.
Underground Storage Tank Compliance Act of 2005 - Amends the Solid Waste Disposal Act to require the Administrator to distribute specified fund percentages from the Leaking Underground Storage Tank Trust Fund to states to pay costs for regulation of underground storage tanks (USTs).
Amends the Clean Air Act to cite conditions under which the Administrator may waive the prohibition against the use of extreme and unusual fuel or fuel additive supplies ("boutique fuels").
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1640 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1640
To ensure jobs for our future with secure and reliable energy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 14, 2005
Mr. Barton of Texas (for himself, Mr. Hall, Mr. Upton, Mr. Stearns,
Mrs. Cubin, Mr. Shimkus, Mr. Pickering, Mr. Blunt, Mr. Buyer, Mr.
Radanovich, Mr. Pitts, Mr. Terry, and Mr. Rogers of Michigan)
introduced the following bill; which was referred to the Committee on
Energy and Commerce, and in addition to the Committees on Science,
Resources, Education and the Workforce, Transportation and
Infrastructure, Financial Services, and Agriculture, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To ensure jobs for our future with secure and reliable energy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Policy Act
of 2005''.
(b) Table of Contents.--The table of contents for the bill is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy Savings Performance Contracts.
Sec. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Subtitle B--Energy Assistance and State Programs
Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Subtitle C--Energy Efficient Products
Sec. 131. Energy Star Program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Energy conservation standards for additional products.
Sec. 134. Energy labeling.
Sec. 135. Preemption.
Sec. 136. State consumer product energy efficiency standards.
Subtitle D--Public Housing
Sec. 145. Grants for energy-conserving improvements for assisted
housing.
Sec. 147. Energy-efficient appliances.
Sec. 149. Energy strategy for HUD.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Insular areas energy security.
Sec. 205. Use of photovoltaic energy in public buildings.
Sec. 206. Grants to improve the commercial value of forest biomass for
electric energy, useful heat,
transportation fuels, petroleum-based
product substitutes, and other commercial
purposes.
Sec. 207. Biobased products.
Sec. 208. Renewable energy security.
Subtitle C--Hydroelectric
Part I--Alternative Conditions
Sec. 231. Alternative conditions and fishways.
Part II--Additional Hydropower
Sec. 241. Hydroelectric production incentives.
Sec. 242. Hydroelectric efficiency improvement.
Sec. 243. Small hydroelectric power projects.
Sec. 244. Increased hydroelectric generation at existing Federal
facilities.
Sec. 245. Shift of project loads to off-peak periods.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
Sec. 301. Permanent authority to operate the Strategic Petroleum
Reserve and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.
Sec. 304. Suspension of Strategic Petroleum Reserve deliveries.
Subtitle B--Production Incentives
Sec. 320. Liquefaction or gasification natural gas terminals.
Sec. 327. Hydraulic fracturing.
Sec. 330. Appeals relating to pipeline construction or offshore mineral
development projects.
Sec. 333. Natural gas market transparency.
Subtitle C--Access to Federal Land
Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 346. Compliance with executive order 13211; actions concerning
regulations that significantly affect
energy supply, distribution, or use.
Sec. 350. Energy facility rights-of-way and corridors on Federal land.
Sec. 355. Encouraging Great Lakes oil and gas drilling ban.
Sec. 358. Federal coalbed methane regulation.
Subtitle D--Refining Revitalization
Sec. 371. Short title.
Sec. 372. Findings.
Sec. 373. Purpose.
Sec. 374. Designation of Refinery Revitalization Zones.
Sec. 375. Memorandum of understanding.
Sec. 376. State environmental permitting assistance.
Sec. 377. Coordination and expeditious review of permitting process.
Sec. 378. Compliance with all environmental regulations required.
Sec. 379. Definitions.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean Coal Centers of Excellence.
Subtitle B--Clean Power Projects
Sec. 411. Coal technology loan.
Sec. 412. Coal gasification.
Sec. 414. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Subtitle D--Coal and related programs
Sec. 441. Clean air coal program.
TITLE V--INDIAN ENERGY
Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Four Corners transmission line project.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Prohibition on assumption by United States Government of
liability for certain foreign incidents.
Sec. 611. Civil penalties.
Sec. 612. Financial accountability.
Subtitle B--General Nuclear Matters
Sec. 621. Licenses.
Sec. 622. NRC training program.
Sec. 623. Cost recovery from government agencies.
Sec. 624. Elimination of pension offset.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 629. Report on feasibility of developing commercial nuclear energy
generation facilities at existing
Department of Energy sites.
Sec. 630. Uranium sales.
Sec. 631. Cooperative research and development and special
demonstration projects for the uranium
mining industry.
Sec. 632. Whistleblower protection.
Sec. 633. Medical isotope production.
Sec. 634. Fernald byproduct material.
Sec. 635. Safe disposal of greater-than-class c radioactive waste.
Sec. 636. Prohibition on nuclear exports to countries that sponsor
terrorism.
Sec. 638. National uranium stockpile.
Sec. 639. Nuclear Regulatory Commission meetings.
Sec. 640. Employee benefits.
Subtitle C--Additional hydrogen production provisions
Sec. 651. Hydrogen production programs.
Sec. 652. Definitions.
Subtitle D--Nuclear Security
Sec. 661. Nuclear facility threats.
Sec. 662. Fingerprinting for criminal history record checks.
Sec. 663. Use of firearms by security personnel of licensees and
certificate holders of the Commission.
Sec. 664. Unauthorized introduction of dangerous weapons.
Sec. 665. Sabotage of nuclear facilities or fuel.
Sec. 666. Secure transfer of nuclear materials.
Sec. 667. Department of Homeland Security consultation.
Sec. 668. Authorization of appropriations.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 704. Incremental cost allocation.
Sec. 705. Lease condensates.
Sec. 706. Review of Energy Policy Act of 1992 programs.
Sec. 707. Report concerning compliance with alternative fueled vehicle
purchasing requirements.
Subtitle B--Hybrid vehicles, advanced vehicles, and fuel cell buses
Part 1--Hybrid Vehicles
Sec. 711. Hybrid vehicles.
Sec. 712. Hybrid retrofit and electric conversion program.
Part 2--Advanced Vehicles
Sec. 721. Definitions.
Sec. 722. Pilot program.
Sec. 723. Reports to Congress.
Sec. 724. Authorization of appropriations.
Part 3--Fuel Cell Buses
Sec. 731. Fuel cell transit bus demonstration.
Subtitle C--Clean School Buses
Sec. 741. Definitions.
Sec. 742. Program for replacement of certain school buses with clean
school buses.
Sec. 743. Diesel retrofit program.
Sec. 744. Fuel cell school buses.
Subtitle D--Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 759. Ultra-efficient engine technology for aircraft.
Subtitle E--Automobile Efficiency
Sec. 771. Authorization of appropriations for implementation and
enforcement of fuel economy standards.
Sec. 772. Revised considerations for decisions on maximum feasible
average fuel economy.
Sec. 773. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 774. Study of feasibility and effects of reducing use of fuel for
automobiles.
TITLE VIII--HYDROGEN
Sec. 801. Definitions.
Sec. 802. Plan.
Sec. 803. Programs.
Sec. 804. Interagency task force.
Sec. 805. Advisory Committee.
Sec. 806. External review.
Sec. 807. Miscellaneous provisions.
Sec. 808. Savings clause.
Sec. 809. Authorization of appropriations.
Sec. 810. Solar and wind technologies.
TITLE IX--STUDIES AND PROGRAM SUPPORT
Sec. 901. Goals.
Sec. 902. Definitions.
Subtitle A--Energy Efficiency
Sec. 904. Energy efficiency.
Sec. 905. Next Generation Lighting Initiative.
Sec. 906. National Building Performance Initiative.
Sec. 907. Secondary electric vehicle battery use program.
Sec. 908. Energy efficiency study initiative.
Sec. 909. Electric motor control technology.
Subtitle B--Distributed Energy and Electric Energy Systems
Sec. 911. Distributed energy and electric energy systems.
Sec. 913. High power density industry program.
Sec. 916. Reciprocating power.
Sec. 917. Advanced portable power devices.
Subtitle C--Renewable Energy
Sec. 918. Renewable energy.
Sec. 919. Bioenergy programs.
Sec. 920. Concentrating solar power study program.
Sec. 921. Miscellaneous projects.
Sec. 922. Renewable energy in public buildings.
Sec. 923. University biodiesel program.
Subtitle D--Nuclear energy
Sec. 929. Alternatives to industrial radioactive sources.
Sec. 930. Geological isolation of spent fuel.
Subtitle E--Fossil Energy
Part I--Studies and Program Support
Sec. 931. Fossil energy.
Sec. 932. Oil and gas studies.
Sec. 933. Technology transfer.
Sec. 934. Coal mining technologies.
Sec. 935. Coal and related technologies program.
Sec. 936. Complex Well Technology Testing Facility.
Part II--Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources
Sec. 941. Program authority.
Sec. 942. Ultra-deepwater Program.
Sec. 943. Unconventional natural gas and other petroleum resources
Program.
Sec. 944. Additional requirements for awards.
Sec. 945. Advisory committees.
Sec. 946. Limits on participation.
Sec. 947. Sunset.
Sec. 948. Definitions.
Sec. 949. Funding.
Subtitle F--Energy Sciences
Sec. 953. Plan for Fusion Energy Sciences Program.
Sec. 954. Spallation Neutron Source.
Sec. 962. Nitrogen fixation.
Subtitle G--Energy and Environment
Sec. 966. Waste reduction and use of alternatives.
Sec. 967. Report on fuel cell test center.
Sec. 968. Arctic Engineering Research Center.
Sec. 970. Western Michigan demonstration project.
Sec. 971. Low-cost hydrogen propulsion and infrastructure.
Sec. 972. Carbon-based fuel cell development.
Subtitle H--International Cooperation
Sec. 981. United States-Israel cooperation.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
Sec. 1001. Additional Assistant Secretary position.
Sec. 1002. Other transactions authority.
Sec. 1003. University collaboration.
Sec. 1004. Sense of Congress.
TITLE XII--ELECTRICITY
Sec. 1201. Short title.
Subtitle A--Reliability Standards
Sec. 1211. Electric reliability standards.
Subtitle B--Transmission Infrastructure Modernization
Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Transmission system monitoring.
Sec. 1224. Advanced transmission technologies.
Sec. 1225. Electric transmission and distribution programs.
Sec. 1226. Advanced Power System Technology Incentive Program.
Sec. 1227. Office of Electric Transmission and Distribution.
Subtitle C--Transmission Operation Improvements
Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Sense of Congress on Regional Transmission Organizations.
Sec. 1233. Regional Transmission Organization applications progress
report.
Sec. 1234. Federal utility participation in Regional Transmission
Organizations.
Sec. 1235. Standard market design.
Sec. 1236. Native load service obligation.
Sec. 1237. Study on the benefits of economic dispatch.
Subtitle D--Transmission Rate Reform
Sec. 1241. Transmission infrastructure investment.
Subtitle E--Amendments to PURPA
Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale
requirements.
Sec. 1254. Interconnection.
Subtitle F--Repeal of PUHCA
Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
Sec. 1281. Market transparency rules.
Sec. 1282. Market manipulation.
Sec. 1283. Enforcement.
Sec. 1284. Refund effective date.
Sec. 1285. Refund authority.
Sec. 1286. Sanctity of contract.
Sec. 1287. Consumer privacy and unfair trade practices.
Subtitle H--Merger Reform
Sec. 1291. Merger review reform and accountability.
Sec. 1292. Electric utility mergers.
Subtitle I--Definitions
Sec. 1295. Definitions.
Subtitle J--Technical and Conforming Amendments
Sec. 1297. Conforming amendments.
Subtitle K--Economic Dispatch
Sec. 1298. Economic dispatch.
TITLE XIV--MISCELLANEOUS
Subtitle C--Other Provisions
Sec. 1441. Continuation of transmission security order.
Sec. 1442. Review of agency determinations.
Sec. 1443. Attainment dates for downwind ozone nonattainment areas.
Sec. 1444. Energy production incentives.
Sec. 1446. Regulation of certain oil used in transformers.
Sec. 1447. Risk assessments.
Sec. 1448. Oxygen-fuel.
Sec. 1449. Petrochemical and oil refinery facility health assessment.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
Sec. 1501. Renewable content of motor vehicle fuel.
Sec. 1502. Fuels safe harbor.
Sec. 1503. Findings and MTBE transition assistance.
Sec. 1504. Use of MTBE.
Sec. 1505. National Academy of Sciences review and presidential
determination.
Sec. 1506. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 1507. Analyses of motor vehicle fuel changes.
Sec. 1508. Data collection.
Sec. 1509. Reducing the proliferation of State fuel controls.
Sec. 1510. Fuel system requirements harmonization study.
Sec. 1511. Commercial byproducts from municipal solid waste and
cellulosic biomass loan guarantee program.
Sec. 1512. Cellulosic biomass and waste-derived ethanol conversion
assistance.
Sec. 1513. Blending of compliant reformulated gasolines.
Subtitle B--Underground Storage Tank Compliance
Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on Tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.
Subtitle C--Boutique Fuels
Sec. 1541. Reducing the proliferation of boutique fuels.
TITLE XVI--STUDIES
Sec. 1601. Study on inventory of petroleum and natural gas storage.
Sec. 1605. Study of energy efficiency standards.
Sec. 1606. Telecommuting study.
Sec. 1607. LIHEAP report.
Sec. 1608. Oil bypass filtration technology.
Sec. 1609. Total integrated thermal systems.
Sec. 1610. University collaboration.
Sec. 1611. Reliability and consumer protection assessment.
Sec. 1612. Report on energy integration with Latin America.
Sec. 1613. Low-volume gas reservoir study.
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.
(a) In General.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by adding
at the end the following:
``SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL
BUILDINGS.
``(a) In General.--The Architect of the Capitol--
``(1) shall develop, update, and implement a cost-effective
energy conservation and management plan (referred to in this
section as the `plan') for all facilities administered by
Congress (referred to in this section as `congressional
buildings') to meet the energy performance requirements for
Federal buildings established under section 543(a)(1); and
``(2) shall submit the plan to Congress, not later than 180
days after the date of enactment of this section.
``(b) Plan Requirements.--The plan shall include--
``(1) a description of the life cycle cost analysis used to
determine the cost-effectiveness of proposed energy efficiency
projects;
``(2) a schedule of energy surveys to ensure complete
surveys of all congressional buildings every 5 years to
determine the cost and payback period of energy and water
conservation measures;
``(3) a strategy for installation of life cycle cost-
effective energy and water conservation measures;
``(4) the results of a study of the costs and benefits of
installation of submetering in congressional buildings; and
``(5) information packages and `how-to' guides for each
Member and employing authority of Congress that detail simple,
cost-effective methods to save energy and taxpayer dollars in
the workplace.
``(c) Annual Report.--The Architect of the Capitol shall submit to
Congress annually a report on congressional energy management and
conservation programs required under this section that describes in
detail--
``(1) energy expenditures and savings estimates for each
facility;
``(2) energy management and conservation projects; and
``(3) future priorities to ensure compliance with this
section.''.
(b) Table of Contents Amendment.--The table of contents of the
National Energy Conservation Policy Act is amended by adding at the end
of the items relating to part 3 of title V the following new item:
``Sec. 552. Energy and water savings measures in congressional
buildings.''.
(c) Repeal.--Section 310 of the Legislative Branch Appropriations
Act, 1999 (2 U.S.C. 1815), is repealed.
(d) Energy Infrastructure.--The Architect of the Capitol, building
on the Master Plan Study completed in July 2000, shall commission a
study to evaluate the energy infrastructure of the Capital Complex to
determine how the infrastructure could be augmented to become more
energy efficient, using unconventional and renewable energy resources,
in a way that would enable the Complex to have reliable utility service
in the event of power fluctuations, shortages, or outages.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Architect of the Capitol to carry out subsection
(d), $2,000,000 for each of fiscal years 2006 through 2010.
SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Reduction Goals.--
(1) Amendment.--Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by
striking ``its Federal buildings so that'' and all that follows
through the end and inserting ``the Federal buildings of the
agency (including each industrial or laboratory facility) so
that the energy consumption per gross square foot of the
Federal buildings of the agency in fiscal years 2006 through
2015 is reduced, as compared with the energy consumption per
gross square foot of the Federal buildings of the agency in
fiscal year 2003, by the percentage specified in the following
table:
``Fiscal Year Percentage reduction
2006................................................... 2
2007................................................... 4
2008................................................... 6
2009................................................... 8
2010................................................... 10
2011................................................... 12
2012................................................... 14
2013................................................... 16
2014................................................... 18
2015................................................... 20.''.
(2) Reporting baseline.--The energy reduction goals and
baseline established in paragraph (1) of section 543(a) of the
National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)),
as amended by this subsection, supersede all previous goals and
baselines under such paragraph, and related reporting
requirements.
(b) Review and Revision of Energy Performance Requirement.--Section
543(a) of the National Energy Conservation Policy Act (42 U.S.C.
8253(a)) is further amended by adding at the end the following:
``(3) Not later than December 31, 2014, the Secretary shall review
the results of the implementation of the energy performance requirement
established under paragraph (1) and submit to Congress recommendations
concerning energy performance requirements for fiscal years 2016
through 2025.''.
(c) Exclusions.--Section 543(c)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking
``An agency may exclude'' and all that follows through the end and
inserting ``(A) An agency may exclude, from the energy performance
requirement for a fiscal year established under subsection (a) and the
energy management requirement established under subsection (b), any
Federal building or collection of Federal buildings, if the head of the
agency finds that--
``(i) compliance with those requirements would be
impracticable;
``(ii) the agency has completed and submitted all federally
required energy management reports;
``(iii) the agency has achieved compliance with the energy
efficiency requirements of this Act, the Energy Policy Act of
1992, Executive orders, and other Federal law; and
``(iv) the agency has implemented all practicable, life
cycle cost-effective projects with respect to the Federal
building or collection of Federal buildings to be excluded.
``(B) A finding of impracticability under subparagraph (A)(i) shall
be based on--
``(i) the energy intensiveness of activities carried out in
the Federal building or collection of Federal buildings; or
``(ii) the fact that the Federal building or collection of
Federal buildings is used in the performance of a national
security function.''.
(d) Review by Secretary.--Section 543(c)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
(1) by striking ``impracticability standards'' and
inserting ``standards for exclusion'';
(2) by striking ``a finding of impracticability'' and
inserting ``the exclusion''; and
(3) by striking ``energy consumption requirements'' and
inserting ``requirements of subsections (a) and (b)(1)''.
(e) Criteria.--Section 543(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end
the following:
``(3) Not later than 180 days after the date of enactment of this
paragraph, the Secretary shall issue guidelines that establish criteria
for exclusions under paragraph (1).''.
(f) Retention of Energy and Water Savings.--Section 546 of the
National Energy Conservation Policy Act (42 U.S.C. 8256) is amended by
adding at the end the following new subsection:
``(e) Retention of Energy and Water Savings.--An agency may retain
any funds appropriated to that agency for energy expenditures, water
expenditures, or wastewater treatment expenditures, at buildings
subject to the requirements of section 543(a) and (b), that are not
made because of energy savings or water savings. Except as otherwise
provided by law, such funds may be used only for energy efficiency,
water conservation, or unconventional and renewable energy resources
projects.''.
(g) Reports.--Section 548(b) of the National Energy Conservation
Policy Act (42 U.S.C. 8258(b)) is amended--
(1) in the subsection heading, by inserting ``the President
and'' before ``Congress''; and
(2) by inserting ``President and'' before ``Congress''.
(h) Conforming Amendment.--Section 550(d) of the National Energy
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second
sentence by striking ``the 20 percent reduction goal established under
section 543(a) of the National Energy Conservation Policy Act (42
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals
established under section 543(a).''.
SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.
Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is further amended by adding at the end the following:
``(e) Metering of Energy Use.--
``(1) Deadline.--By October 1, 2012, in accordance with
guidelines established by the Secretary under paragraph (2),
all Federal buildings shall, for the purposes of efficient use
of energy and reduction in the cost of electricity used in such
buildings, be metered or submetered. Each agency shall use, to
the maximum extent practicable, advanced meters or advanced
metering devices that provide data at least daily and that
measure at least hourly consumption of electricity in the
Federal buildings of the agency. Such data shall be
incorporated into existing Federal energy tracking systems and
made available to Federal facility energy managers.
``(2) Guidelines.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, the
Secretary, in consultation with the Department of
Defense, the General Services Administration,
representatives from the metering industry, utility
industry, energy services industry, energy efficiency
industry, energy efficiency advocacy organizations,
national laboratories, universities, and Federal
facility energy managers, shall establish guidelines
for agencies to carry out paragraph (1).
``(B) Requirements for guidelines.--The guidelines
shall--
``(i) take into consideration--
``(I) the cost of metering and
submetering and the reduced cost of
operation and maintenance expected to
result from metering and submetering;
``(II) the extent to which metering
and submetering are expected to result
in increased potential for energy
management, increased potential for
energy savings and energy efficiency
improvement, and cost and energy
savings due to utility contract
aggregation; and
``(III) the measurement and
verification protocols of the
Department of Energy;
``(ii) include recommendations concerning
the amount of funds and the number of trained
personnel necessary to gather and use the
metering information to track and reduce energy
use;
``(iii) establish priorities for types and
locations of buildings to be metered and
submetered based on cost-effectiveness and a
schedule of 1 or more dates, not later than 1
year after the date of issuance of the
guidelines, on which the requirements specified
in paragraph (1) shall take effect; and
``(iv) establish exclusions from the
requirements specified in paragraph (1) based
on the de minimis quantity of energy use of a
Federal building, industrial process, or
structure.
``(3) Plan.--Not later than 6 months after the date
guidelines are established under paragraph (2), in a report
submitted by the agency under section 548(a), each agency shall
submit to the Secretary a plan describing how the agency will
implement the requirements of paragraph (1), including (A) how
the agency will designate personnel primarily responsible for
achieving the requirements and (B) demonstration by the agency,
complete with documentation, of any finding that advanced
meters or advanced metering devices, as defined in paragraph
(1), are not practicable.''.
SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Requirements.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended by section
101, is amended by adding at the end the following:
``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' has the meaning given that
term in section 7902(a) of title 5, United States Code.
``(2) Energy star product.--The term `Energy Star product'
means a product that is rated for energy efficiency under an
Energy Star program.
``(3) Energy star program.--The term `Energy Star program'
means the program established by section 324A of the Energy
Policy and Conservation Act.
``(4) FEMP designated product.--The term `FEMP designated
product' means a product that is designated under the Federal
Energy Management Program of the Department of Energy as being
among the highest 25 percent of equivalent products for energy
efficiency.
``(b) Procurement of Energy Efficient Products.--
``(1) Requirement.--To meet the requirements of an agency
for an energy consuming product, the head of the agency shall,
except as provided in paragraph (2), procure--
``(A) an Energy Star product; or
``(B) a FEMP designated product.
``(2) Exceptions.--The head of an agency is not required to
procure an Energy Star product or FEMP designated product under
paragraph (1) if the head of the agency finds in writing that--
``(A) an Energy Star product or FEMP designated
product is not cost-effective over the life of the
product taking energy cost savings into account; or
``(B) no Energy Star product or FEMP designated
product is reasonably available that meets the
functional requirements of the agency.
``(3) Procurement planning.--The head of an agency shall
incorporate into the specifications for all procurements
involving energy consuming products and systems, including
guide specifications, project specifications, and construction,
renovation, and services contracts that include provision of
energy consuming products and systems, and into the factors for
the evaluation of offers received for the procurement, criteria
for energy efficiency that are consistent with the criteria
used for rating Energy Star products and for rating FEMP
designated products.
``(c) Listing of Energy Efficient Products in Federal Catalogs.--
Energy Star products and FEMP designated products shall be clearly
identified and prominently displayed in any inventory or listing of
products by the General Services Administration or the Defense
Logistics Agency. The General Services Administration or the Defense
Logistics Agency shall supply only Energy Star products or FEMP
designated products for all product categories covered by the Energy
Star program or the Federal Energy Management Program, except in cases
where the agency ordering a product specifies in writing that no Energy
Star product or FEMP designated product is available to meet the
buyer's functional requirements, or that no Energy Star product or FEMP
designated product is cost-effective for the intended application over
the life of the product, taking energy cost savings into account.
``(d) Specific Products.--(1) In the case of electric motors of 1
to 500 horsepower, agencies shall select only premium efficient motors
that meet a standard designated by the Secretary. The Secretary shall
designate such a standard not later than 120 days after the date of the
enactment of this section, after considering the recommendations of
associated electric motor manufacturers and energy efficiency groups.
``(2) All Federal agencies are encouraged to take actions to
maximize the efficiency of air conditioning and refrigeration
equipment, including appropriate cleaning and maintenance, including
the use of any system treatment or additive that will reduce the
electricity consumed by air conditioning and refrigeration equipment.
Any such treatment or additive must be--
``(A) determined by the Secretary to be effective in
increasing the efficiency of air conditioning and refrigeration
equipment without having an adverse impact on air conditioning
performance (including cooling capacity) or equipment useful
life;
``(B) determined by the Administrator of the Environmental
Protection Agency to be environmentally safe; and
``(C) shown to increase seasonal energy efficiency ratio
(SEER) or energy efficiency ratio (EER) when tested by the
National Institute of Standards and Technology according to
Department of Energy test procedures without causing any
adverse impact on the system, system components, the
refrigerant or lubricant, or other materials in the system.
Results of testing described in subparagraph (C) shall be published in
the Federal Register for public review and comment. For purposes of
this section, a hardware device or primary refrigerant shall not be
considered an additive.
``(e) Regulations.--Not later than 180 days after the date of the
enactment of this section, the Secretary shall issue guidelines to
carry out this section.''.
(b) Conforming Amendment.--The table of contents of the National
Energy Conservation Policy Act is further amended by inserting after
the item relating to section 552 the following new item:
``Sec. 553. Federal procurement of energy efficient products.''.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Limitations.--
(1) In general.--Section 801(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by
adding at the end the following subparagraph:
``(E) All Federal agencies combined may not, after the date of
enactment of the Energy Policy Act of 2005, enter into more than a
total of 100 contracts under this title. Payments made by the Federal
Government under all contracts permitted by this subparagraph combined
shall not exceed a total of $500,000,000. Each Federal agency shall
appoint a coordinator for Energy Savings Performance Contracts with the
responsibility to monitor the number of such contracts for that Federal
agency and the investment value of each contract. The coordinators for
each Federal agency shall meet monthly to ensure that the limits
specified in this subparagraph on the number of contracts and the
payments made for the contracts are not exceeded.''.
(2) Definition.--Section 804(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(1)) is amended to read
as follows:
``(1) The term `Federal agency' means the Department of
Defense, the Department of Veterans Affairs, and the Department
of Energy.''.
(3) Validity of contracts.--The amendments made by this
subsection shall not affect the validity of contracts entered
into under title VIII of the National Energy Conservation
Policy Act (42 U.S.C. 8287 et seq.) before the date of
enactment of this Act, or of contracts described in subsection
(h).
(b) Permanent Extension.--Effective October 1, 2006, section 801(c)
of the National Energy Conservation Policy Act (42 U.S.C. 8287(c)) is
repealed.
(c) Payment of Costs.--Section 802 of the National Energy
Conservation Policy Act (42 U.S.C. 8287a) is amended by inserting ``,
water, or wastewater treatment'' after ``payment of energy''.
(d) Energy Savings.--Section 804(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as
follows:
``(2) The term `energy savings' means a reduction in the
cost of energy, water, or wastewater treatment, from a base
cost established through a methodology set forth in the
contract, used in an existing federally owned building or
buildings or other federally owned facilities as a result of--
``(A) the lease or purchase of operating equipment,
improvements, altered operation and maintenance, or
technical services;
``(B) the increased efficient use of existing
energy sources by cogeneration or heat recovery,
excluding any cogeneration process for other than a
federally owned building or buildings or other
federally owned facilities; or
``(C) the increased efficient use of existing water
sources in either interior or exterior applications.''.
(e) Energy Savings Contract.--Section 804(3) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as
follows:
``(3) The terms `energy savings contract' and `energy
savings performance contract' mean a contract that provides for
the performance of services for the design, acquisition,
installation, testing, and, where appropriate, operation,
maintenance, and repair, of an identified energy or water
conservation measure or series of measures at 1 or more
locations. Such contracts shall, with respect to an agency
facility that is a public building (as such term is defined in
section 3301 of title 40, United States Code), be in compliance
with the prospectus requirements and procedures of section 3307
of title 40, United States Code.''.
(f) Energy or Water Conservation Measure.--Section 804(4) of the
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended
to read as follows:
``(4) The term `energy or water conservation measure'
means--
``(A) an energy conservation measure, as defined in
section 551; or
``(B) a water conservation measure that improves
the efficiency of water use, is life-cycle cost-
effective, and involves water conservation, water
recycling or reuse, more efficient treatment of
wastewater or stormwater, improvements in operation or
maintenance efficiencies, retrofit activities, or other
related activities, not at a Federal hydroelectric
facility.''.
(g) Review.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Energy shall complete a review
of the Energy Savings Performance Contract program to identify
statutory, regulatory, and administrative obstacles that prevent
Federal agencies from fully utilizing the program. In addition, this
review shall identify all areas for increasing program flexibility and
effectiveness, including audit and measurement verification
requirements, accounting for energy use in determining savings,
contracting requirements, including the identification of additional
qualified contractors, and energy efficiency services covered. The
Secretary shall report these findings to Congress and shall implement
identified administrative and regulatory changes to increase program
flexibility and effectiveness to the extent that such changes are
consistent with statutory authority.
(h) Extension of Authority.--Any energy savings performance
contract entered into under section 801 of the National Energy
Conservation Policy Act (42 U.S.C. 8287) after October 1, 2006, and
before the date of enactment of this Act, shall be deemed to have been
entered into pursuant to such section 801 as amended by subsection (a)
of this section.
SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.
(a) Voluntary Agreements.--The Secretary of Energy is authorized to
enter into voluntary agreements with 1 or more persons in industrial
sectors that consume significant amounts of primary energy per unit of
physical output to reduce the energy intensity of their production
activities by a significant amount relative to improvements in each
sector in recent years.
(b) Recognition.--The Secretary of Energy, in cooperation with the
Administrator of the Environmental Protection Agency and other
appropriate Federal agencies, shall recognize and publicize the
achievements of participants in voluntary agreements under this
section.
(c) Definition.--In this section, the term ``energy intensity''
means the primary energy consumed per unit of physical output in an
industrial process.
SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED.
(a) Establishment.--The Secretary of Energy, in consultation with
the Administrator of General Services, shall establish an Advanced
Building Efficiency Testbed program for the development, testing, and
demonstration of advanced engineering systems, components, and
materials to enable innovations in building technologies. The program
shall evaluate efficiency concepts for government and industry
buildings, and demonstrate the ability of next generation buildings to
support individual and organizational productivity and health
(including by improving indoor air quality) as well as flexibility and
technological change to improve environmental sustainability. Such
program shall complement and not duplicate existing national programs.
(b) Participants.--The program established under subsection (a)
shall be led by a university with the ability to combine the expertise
from numerous academic fields including, at a minimum, intelligent
workplaces and advanced building systems and engineering, electrical
and computer engineering, computer science, architecture, urban design,
and environmental and mechanical engineering. Such university shall
partner with other universities and entities who have established
programs and the capability of advancing innovative building efficiency
technologies.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section
$6,000,000 for each of the fiscal years 2006 through 2008, to remain
available until expended. For any fiscal year in which funds are
expended under this section, the Secretary shall provide \1/3\ of the
total amount to the lead university described in subsection (b), and
provide the remaining \2/3\ to the other participants referred to in
subsection (b) on an equal basis.
SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.
Section 305(a) of the Energy Conservation and Production Act (42
U.S.C. 6834(a)) is amended--
(1) in paragraph (2)(A), by striking ``CABO Model Energy
Code, 1992'' and inserting ``the 2003 International Energy
Conservation Code''; and
(2) by adding at the end the following:
``(3) Revised federal building energy efficiency performance
standards.--
``(A) In general.--Not later than 1 year after the date of
enactment of this paragraph, the Secretary of Energy shall
establish, by rule, revised Federal building energy efficiency
performance standards that require that--
``(i) if life-cycle cost-effective, for new Federal
buildings--
``(I) such buildings be designed so as to
achieve energy consumption levels at least 30
percent below those of the version current as
of the date of enactment of this paragraph of
the ASHRAE Standard or the International Energy
Conservation Code, as appropriate; and
``(II) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings; and
``(ii) where water is used to achieve energy
efficiency, water conservation technologies shall be
applied to the extent they are life-cycle cost
effective.
``(B) Additional revisions.--Not later than 1 year after
the date of approval of each subsequent revision of the ASHRAE
Standard or the International Energy Conservation Code, as
appropriate, the Secretary of Energy shall determine, based on
the cost-effectiveness of the requirements under the
amendments, whether the revised standards established under
this paragraph should be updated to reflect the amendments.
``(C) Statement on compliance of new buildings.--In the
budget request of the Federal agency for each fiscal year and
each report submitted by the Federal agency under section
548(a) of the National Energy Conservation Policy Act (42
U.S.C. 8258(a)), the head of each Federal agency shall
include--
``(i) a list of all new Federal buildings owned,
operated, or controlled by the Federal agency; and
``(ii) a statement concerning whether the Federal
buildings meet or exceed the revised standards
established under this paragraph.''.
SEC. 110. DAYLIGHT SAVINGS.
(a) Repeal.--Section 3(a) of the Uniform Time Act of 1966 (15
U.S.C. 260a(a)) is amended--
(1) by striking ``April'' and inserting ``March''; and
(2) by striking ``October'' and inserting ``November''.
(b) Report to Congress.--Not later than 9 months after the date of
enactment of this Act, the Secretary of Energy shall report to Congress
on the impact this section on energy consumption in the United States.
Subtitle B--Energy Assistance and State Programs
SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.
(a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is
amended by striking ``and $2,000,000,000 for each of fiscal years 2002
through 2004'' and inserting ``and $5,100,000,000 for each of fiscal
years 2005 through 2007''.
(b) Renewable Fuels.--The Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) is amended by adding at the end the
following new section:
``renewable fuels
``Sec. 2612. In providing assistance pursuant to this title, a
State, or any other person with which the State makes arrangements to
carry out the purposes of this title, may purchase renewable fuels,
including biomass.''.
(c) Report to Congress.--The Secretary of Energy shall report to
Congress on the use of renewable fuels in providing assistance under
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.).
SEC. 122. WEATHERIZATION ASSISTANCE.
(a) Authorization of Appropriations.--Section 422 of the Energy
Conservation and Production Act (42 U.S.C. 6872) is amended by striking
``for fiscal years 1999 through 2003 such sums as may be necessary''
and inserting ``$500,000,000 for fiscal year 2006, $600,000,000 for
fiscal year 2007, and $700,000,000 for fiscal year 2008''.
(b) Eligibility.--Section 412(7) of the Energy Conservation and
Production Act (42 U.S.C. 6862(7)) is amended by striking ``125
percent'' both places it appears and inserting ``150 percent''.
SEC. 123. STATE ENERGY PROGRAMS.
(a) State Energy Conservation Plans.--Section 362 of the Energy
Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at
the end the following new subsection:
``(g) The Secretary shall, at least once every 3 years, invite the
Governor of each State to review and, if necessary, revise the energy
conservation plan of such State submitted under subsection (b) or (e).
Such reviews should consider the energy conservation plans of other
States within the region, and identify opportunities and actions
carried out in pursuit of common energy conservation goals.''.
(b) State Energy Efficiency Goals.--Section 364 of the Energy
Policy and Conservation Act (42 U.S.C. 6324) is amended to read as
follows:
``state energy efficiency goals
``Sec. 364. Each State energy conservation plan with respect to
which assistance is made available under this part on or after the date
of enactment of the Energy Policy Act of 2005 shall contain a goal,
consisting of an improvement of 25 percent or more in the efficiency of
use of energy in the State concerned in calendar year 2012 as compared
to calendar year 1990, and may contain interim goals.''.
(c) Authorization of Appropriations.--Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking
``for fiscal years 1999 through 2003 such sums as may be necessary''
and inserting ``$100,000,000 for each of the fiscal years 2006 and 2007
and $125,000,000 for fiscal year 2008''.
SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.
(a) Definitions.--In this section:
(1) Eligible state.--The term ``eligible State'' means a
State that meets the requirements of subsection (b).
(2) Energy star program.--The term ``Energy Star program''
means the program established by section 324A of the Energy
Policy and Conservation Act.
(3) Residential energy star product.--The term
``residential Energy Star product'' means a product for a
residence that is rated for energy efficiency under the Energy
Star program.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(5) State energy office.--The term ``State energy office''
means the State agency responsible for developing State energy
conservation plans under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322).
(6) State program.--The term ``State program'' means a
State energy efficient appliance rebate program described in
subsection (b)(1).
(b) Eligible States.--A State shall be eligible to receive an
allocation under subsection (c) if the State--
(1) establishes (or has established) a State energy
efficient appliance rebate program to provide rebates to
residential consumers for the purchase of residential Energy
Star products to replace used appliances of the same type;
(2) submits an application for the allocation at such time,
in such form, and containing such information as the Secretary
may require; and
(3) provides assurances satisfactory to the Secretary that
the State will use the allocation to supplement, but not
supplant, funds made available to carry out the State program.
(c) Amount of Allocations.--
(1) In general.--Subject to paragraph (2), for each fiscal
year, the Secretary shall allocate to the State energy office
of each eligible State to carry out subsection (d) an amount
equal to the product obtained by multiplying the amount made
available under subsection (f) for the fiscal year by the ratio
that the population of the State in the most recent calendar
year for which data are available bears to the total population
of all eligible States in that calendar year.
(2) Minimum allocations.--For each fiscal year, the amounts
allocated under this subsection shall be adjusted
proportionately so that no eligible State is allocated a sum
that is less than an amount determined by the Secretary.
(d) Use of Allocated Funds.--The allocation to a State energy
office under subsection (c) may be used to pay up to 50 percent of the
cost of establishing and carrying out a State program.
(e) Issuance of Rebates.--Rebates may be provided to residential
consumers that meet the requirements of the State program. The amount
of a rebate shall be determined by the State energy office, taking into
consideration--
(1) the amount of the allocation to the State energy office
under subsection (c);
(2) the amount of any Federal or State tax incentive
available for the purchase of the residential Energy Star
product; and
(3) the difference between the cost of the residential
Energy Star product and the cost of an appliance that is not a
residential Energy Star product, but is of the same type as,
and is the nearest capacity, performance, and other relevant
characteristics (as determined by the State energy office) to,
the residential Energy Star product.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $50,000,000 for
each of the fiscal years 2006 through 2010.
SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.
(a) Grants.--The Secretary of Energy may make grants to the State
agency responsible for developing State energy conservation plans under
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322),
or, if no such agency exists, a State agency designated by the Governor
of the State, to assist units of local government in the State in
improving the energy efficiency of public buildings and facilities--
(1) through construction of new energy efficient public
buildings that use at least 30 percent less energy than a
comparable public building constructed in compliance with
standards prescribed in the most recent version of the
International Energy Conservation Code, or a similar State code
intended to achieve substantially equivalent efficiency levels;
or
(2) through renovation of existing public buildings to
achieve reductions in energy use of at least 30 percent as
compared to the baseline energy use in such buildings prior to
renovation, assuming a 3-year, weather-normalized average for
calculating such baseline.
(b) Administration.--State energy offices receiving grants under
this section shall--
(1) maintain such records and evidence of compliance as the
Secretary may require; and
(2) develop and distribute information and materials and
conduct programs to provide technical services and assistance
to encourage planning, financing, and design of energy
efficient public buildings by units of local government.
(c) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Energy $30,000,000 for each of fiscal years 2006 through 2010. Not more
than 10 percent of appropriated funds shall be used for administration.
SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.
(a) Grants.--The Secretary of Energy is authorized to make grants
to units of local government, private, non-profit community development
organizations, and Indian tribe economic development entities to
improve energy efficiency; identify and develop alternative, renewable,
and distributed energy supplies; and increase energy conservation in
low income rural and urban communities.
(b) Purpose of Grants.--The Secretary may make grants on a
competitive basis for--
(1) investments that develop alternative, renewable, and
distributed energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy
efficiency in low income rural and urban communities;
(4) planning and development assistance for increasing the
energy efficiency of buildings and facilities; and
(5) technical and financial assistance to local government
and private entities on developing new renewable and
distributed sources of power or combined heat and power
generation.
(c) Definition.--For purposes of this section, the term ``Indian
tribe'' means any Indian tribe, band, nation, or other organized group
or community, including any Alaskan Native village or regional or
village corporation as defined in or established pursuant to the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), that is
recognized as eligible for the special programs and services provided
by the United States to Indians because of their status as Indians.
(d) Authorization of Appropriations.--For the purposes of this
section there are authorized to be appropriated to the Secretary of
Energy $20,000,000 for each of fiscal years 2006 through 2008.
Subtitle C--Energy Efficient Products
SEC. 131. ENERGY STAR PROGRAM.
(a) Amendment.--The Energy Policy and Conservation Act (42 U.S.C.
6201 et seq.) is amended by inserting the following after section 324:
``SEC. 324A. ENERGY STAR PROGRAM.
``There is established at the Department of Energy and the
Environmental Protection Agency a voluntary program to identify and
promote energy-efficient products and buildings in order to reduce
energy consumption, improve energy security, and reduce pollution
through voluntary labeling of or other forms of communication about
products and buildings that meet the highest energy efficiency
standards. Responsibilities under the program shall be divided between
the Department of Energy and the Environmental Protection Agency
consistent with the terms of agreements between the 2 agencies. The
Administrator and the Secretary shall--
``(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for achieving energy
efficiency and to reduce pollution;
``(2) work to enhance public awareness of the Energy Star
label, including special outreach to small businesses;
``(3) preserve the integrity of the Energy Star label;
``(4) solicit comments from interested parties prior to
establishing or revising an Energy Star product category,
specification, or criterion (or effective dates for any of the
foregoing);
``(5) upon adoption of a new or revised product category,
specification, or criterion, provide reasonable notice to
interested parties of any changes (including effective dates)
in product categories, specifications, or criteria along with
an explanation of such changes and, where appropriate,
responses to comments submitted by interested parties; and
``(6) provide appropriate lead time (which shall be 9
months, unless the Agency or Department determines otherwise)
prior to the effective date for a new or a significant revision
to a product category, specification, or criterion, taking into
account the timing requirements of the manufacturing, product
marketing, and distribution process for the specific product
addressed.''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Policy and Conservation Act is amended by inserting after the
item relating to section 324 the following new item:
``Sec. 324A. Energy Star program.''.
SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.
Section 337 of the Energy Policy and Conservation Act (42 U.S.C.
6307) is amended by adding at the end the following:
``(c) HVAC Maintenance.--For the purpose of ensuring that installed
air conditioning and heating systems operate at their maximum rated
efficiency levels, the Secretary shall, not later than 180 days after
the date of enactment of this subsection, carry out a program to
educate homeowners and small business owners concerning the energy
savings resulting from properly conducted maintenance of air
conditioning, heating, and ventilating systems. The Secretary shall
carry out the program in a cost-shared manner in cooperation with the
Administrator of the Environmental Protection Agency and such other
entities as the Secretary considers appropriate, including industry
trade associations, industry members, and energy efficiency
organizations.
``(d) Small Business Education and Assistance.--The Administrator
of the Small Business Administration, in consultation with the
Secretary of Energy and the Administrator of the Environmental
Protection Agency, shall develop and coordinate a Government-wide
program, building on the existing Energy Star for Small Business
Program, to assist small businesses to become more energy efficient,
understand the cost savings obtainable through efficiencies, and
identify financing options for energy efficiency upgrades. The
Secretary and the Administrator of the Small Business Administration
shall make the program information available directly to small
businesses and through other Federal agencies, including the Federal
Emergency Management Program and the Department of Agriculture.''.
SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.
(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) is amended--
(1) in paragraph (30)(S), by striking the period and adding
at the end the following: ``but does not include any lamp
specifically designed to be used for special purpose
applications and that is unlikely to be used in general purpose
applications such as those described in subparagraph (D), and
also does not include any lamp not described in subparagraph
(D) that is excluded by the Secretary, by rule, because the
lamp is designed for special applications and is unlikely to be
used in general purpose applications.''; and
(2) by adding at the end the following:
``(32) The term `battery charger' means a device that
charges batteries for consumer products and includes battery
chargers embedded in other consumer products.
``(33) The term `commercial refrigerators, freezers, and
refrigerator-freezers' means refrigerators, freezers, or
refrigerator-freezers that--
``(A) are not consumer products regulated under
this Act; and
``(B) incorporate most components involved in the
vapor-compression cycle and the refrigerated
compartment in a single package.
``(34) The term `external power supply' means an external
power supply circuit that is used to convert household electric
current into either DC current or lower-voltage AC current to
operate a consumer product.
``(35) The term `illuminated exit sign' means a sign that--
``(A) is designed to be permanently fixed in place
to identify an exit; and
``(B) consists of an electrically powered integral
light source that illuminates the legend `EXIT' and any
directional indicators and provides contrast between
the legend, any directional indicators, and the
background.
``(36)(A) Except as provided in subparagraph (B), the term
`distribution transformer' means a transformer that--
``(i) has an input voltage of 34.5 kilovolts or
less;
``(ii) has an output voltage of 600 volts or less;
and
``(iii) is rated for operation at a frequency of 60
Hertz.
``(B) The term `distribution transformer' does not
include--
``(i) transformers with multiple voltage taps, with
the highest voltage tap equaling at least 20 percent
more than the lowest voltage tap;
``(ii) transformers, such as those commonly known
as drive transformers, rectifier transformers, auto-
transformers, Uninterruptible Power System
transformers, impedance transformers, regulating
transformers, sealed and nonventilating transformers,
machine tool transformers, welding transformers,
grounding transformers, or testing transformers, that
are designed to be used in a special purpose
application and are unlikely to be used in general
purpose applications; or
``(iii) any transformer not listed in clause (ii)
that is excluded by the Secretary by rule because--
``(I) the transformer is designed for a
special application;
``(II) the transformer is unlikely to be
used in general purpose applications; and
``(III) the application of standards to the
transformer would not result in significant
energy savings.
``(37) The term `low-voltage dry-type distribution
transformer' means a distribution transformer that--
``(A) has an input voltage of 600 volts or less;
``(B) is air-cooled; and
``(C) does not use oil as a coolant.
``(38) The term `standby mode' means the lowest power
consumption mode that--
``(A) cannot be switched off or influenced by the
user; and
``(B) may persist for an indefinite time when an
appliance is connected to the main electricity supply
and used in accordance with the manufacturer's
instructions,
as defined on an individual product basis by the Secretary.
``(39) The term `torchiere' means a portable electric lamp
with a reflector bowl that directs light upward so as to give
indirect illumination.
``(40) The term `traffic signal module' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication,
consisting of a light source, a lens, and all other parts
necessary for operation, that communicates movement messages to
drivers through red, amber, and green colors.
``(41) The term `transformer' means a device consisting of
2 or more coils of insulated wire that transfers alternating
current by electromagnetic induction from 1 coil to another to
change the original voltage or current value.
``(42) The term `unit heater' means a self-contained fan-
type heater designed to be installed within the heated space,
except that such term does not include a warm air furnace.
``(43) The term `ceiling fan' means a non-portable device
that is suspended from a ceiling for circulating air via the
rotation of fan blades.
``(44) The term `ceiling fan light kit' means equipment
designed to provide light from a ceiling fan which can be--
``(A) integral, such that the equipment is attached
to the ceiling fan prior to the time of retail sale; or
``(B) attachable, such that at the time of retail
sale the equipment is not physically attached to the
ceiling fan, but may be included inside the ceiling fan
package at the time of sale or sold separately for
subsequent attachment to the fan.''.
(b) Test Procedures.--Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended--
(1) in subsection (b), by adding at the end the following:
``(9) Test procedures for illuminated exit signs shall be based on
the test method used under Version 2.0 of the Energy Star program of
the Environmental Protection Agency for illuminated exit signs.
``(10) Test procedures for distribution transformers and low
voltage dry-type distribution transformers shall be based on the
`Standard Test Method for Measuring the Energy Consumption of
Distribution Transformers' prescribed by the National Electrical
Manufacturers Association (NEMA TP 2-1998). The Secretary may review
and revise this test procedure. For purposes of section 346(a), this
test procedure shall be deemed to be testing requirements prescribed by
the Secretary under section 346(a)(1) for distribution transformers for
which the Secretary makes a determination that energy conservation
standards would be technologically feasible and economically justified,
and would result in significant energy savings.
``(11) Test procedures for traffic signal modules shall be based on
the test method used under the Energy Star program of the Environmental
Protection Agency for traffic signal modules, as in effect on the date
of enactment of this paragraph.
``(12) Test procedures for medium base compact fluorescent lamps
shall be based on the test methods used under the August 9, 2001,
version of the Energy Star program of the Environmental Protection
Agency and Department of Energy for compact fluorescent lamps. Covered
products shall meet all test requirements for regulated parameters in
section 325(bb). However, covered products may be marketed prior to
completion of lamp life and lumen maintenance at 40 percent of rated
life testing provided manufacturers document engineering predictions
and analysis that support expected attainment of lumen maintenance at
40 percent rated life and lamp life time.
``(13) The Secretary shall, not later than 18 months after the date
of enactment of this paragraph, prescribe testing requirements for
ceiling fans and ceiling fan light kits.''; and
(2) by adding at the end the following:
``(f) Additional Consumer and Commercial Products.--The Secretary
shall, not later than 24 months after the date of enactment of this
subsection, prescribe testing requirements for suspended ceiling fans,
refrigerated bottled or canned beverage vending machines, and
commercial refrigerators, freezers, and refrigerator-freezers. Such
testing requirements shall be based on existing test procedures used in
industry to the extent practical and reasonable. In the case of
suspended ceiling fans, such test procedures shall include efficiency
at both maximum output and at an output no more than 50 percent of the
maximum output.''.
(c) New Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by adding at the end the
following:
``(u) Battery Charger and External Power Supply Electric Energy
Consumption.--
``(1) Initial rulemaking.--(A) The Secretary shall, within
18 months after the date of enactment of this subsection,
prescribe by notice and comment, definitions and test
procedures for the power use of battery chargers and external
power supplies. In establishing these test procedures, the
Secretary shall consider, among other factors, existing
definitions and test procedures used for measuring energy
consumption in standby mode and other modes and assess the
current and projected future market for battery chargers and
external power supplies. This assessment shall include
estimates of the significance of potential energy savings from
technical improvements to these products and suggested product
classes for standards. Prior to the end of this time period,
the Secretary shall hold a scoping workshop to discuss and
receive comments on plans for developing energy conservation
standards for energy use for these products.
``(B) The Secretary shall, within 3 years after the date of
enactment of this subsection, issue a final rule that
determines whether energy conservation standards shall be
issued for battery chargers and external power supplies or
classes thereof. For each product class, any such standards
shall be set at the lowest level of energy use that--
``(i) meets the criteria and procedures of
subsections (o), (p), (q), (r), (s), and (t); and
``(ii) will result in significant overall annual
energy savings, considering both standby mode and other
operating modes.
``(2) Review of standby energy use in covered products.--In
determining pursuant to section 323 whether test procedures and
energy conservation standards pursuant to this section should
be revised, the Secretary shall consider, for covered products
that are major sources of standby mode energy consumption,
whether to incorporate standby mode into such test procedures
and energy conservation standards, taking into account, among
other relevant factors, standby mode power consumption compared
to overall product energy consumption.
``(3) Rulemaking.--The Secretary shall not propose a
standard under this section unless the Secretary has issued
applicable test procedures for each product pursuant to section
323.
``(4) Effective date.--Any standard issued under this
subsection shall be applicable to products manufactured or
imported 3 years after the date of issuance.
``(5) Voluntary programs.--The Secretary and the
Administrator shall collaborate and develop programs, including
programs pursuant to section 324A (relating to Energy Star
Programs) and other voluntary industry agreements or codes of
conduct, that are designed to reduce standby mode energy use.
``(v) Suspended Ceiling Fans, Vending Machines, and Commercial
Refrigerators, Freezers, and Refrigerator-Freezers.--The Secretary
shall not later than 36 months after the date on which testing
requirements are prescribed by the Secretary pursuant to section
323(f), prescribe, by rule, energy conservation standards for suspended
ceiling fans, refrigerated bottled or canned beverage vending machines,
and commercial refrigerators, freezers, and refrigerator-freezers. In
establishing standards under this subsection, the Secretary shall use
the criteria and procedures contained in subsections (o) and (p). Any
standard prescribed under this subsection shall apply to products
manufactured 3 years after the date of publication of a final rule
establishing such standard.
``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured
on or after January 1, 2006, shall meet the Version 2.0 Energy Star
Program performance requirements for illuminated exit signs prescribed
by the Environmental Protection Agency.
``(x) Torchieres.--Torchieres manufactured on or after January 1,
2006--
``(1) shall consume not more than 190 watts of power; and
``(2) shall not be capable of operating with lamps that
total more than 190 watts.
``(y) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of low voltage dry-type distribution transformers
manufactured on or after January 1, 2006, shall be the Class I
Efficiency Levels for distribution transformers specified in Table 4-2
of the `Guide for Determining Energy Efficiency for Distribution
Transformers' published by the National Electrical Manufacturers
Association (NEMA TP-1-2002).
``(z) Traffic Signal Modules.--Traffic signal modules manufactured
on or after January 1, 2006, shall meet the performance requirements
used under the Energy Star program of the Environmental Protection
Agency for traffic signals, as in effect on the date of enactment of
this subsection, and shall be installed with compatible, electrically
connected signal control interface devices and conflict monitoring
systems.
``(aa) Unit Heaters.--Unit heaters manufactured on or after the
date that is 3 years after the date of enactment of this subsection
shall be equipped with an intermittent ignition device and shall have
either power venting or an automatic flue damper.
``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp and
covered lamp (no reflector) medium base compact fluorescent lamps
manufactured on or after January 1, 2006, shall meet the following
requirements prescribed by the August 9, 2001, version of the Energy
Star Program Requirements for Compact Fluorescent Lamps, Energy Star
Eligibility Criteria, Energy-Efficiency Specification issued by the
Environmental Protection Agency and Department of Energy: minimum
initial efficacy; lumen maintenance at 1000 hours; lumen maintenance at
40 percent of rated life; rapid cycle stress test; and lamp life. The
Secretary may, by rule, establish requirements for color quality (CRI);
power factor; operating frequency; and maximum allowable start time
based on the requirements prescribed by the August 9, 2001, version of
the Energy Star Program Requirements for Compact Fluorescent Lamps. The
Secretary may, by rule, revise these requirements or establish other
requirements considering energy savings, cost effectiveness, and
consumer satisfaction.
``(cc) Effective Date.--Section 327 shall apply--
``(1) to products for which standards are to be established
under subsections (u) and (v) on the date on which a final rule
is issued by the Department of Energy, except that any State or
local standards prescribed or enacted for any such product
prior to the date on which such final rule is issued shall not
be preempted until the standard established under subsection
(u) or (v) for that product takes effect; and
``(2) to products for which standards are established under
subsections (w) through (bb) on the date of enactment of those
subsections, except that any State or local standards
prescribed or enacted prior to the date of enactment of those
subsections shall not be preempted until the standards
established under subsections (w) through (bb) take effect.
``(dd) Ceiling Fans.--
``(1) Features.--All ceiling fans manufactured on or after
January 1, 2006, shall have the following features:
``(A) Lighting controls operate independently from
fan speed controls.
``(B) Adjustable speed controls (either more than 1
speed or variable speed).
``(C) The capability of reversible fan action,
except for fans sold for industrial applications,
outdoor applications, and where safety standards would
be violated by the use of the reversible mode. The
Secretary may promulgate regulations to define in
greater detail the exceptions provided under this
subparagraph but may not substantively expand the
exceptions.
``(2) Revised standards.--
``(A) In general.--Notwithstanding any provision of
this Act, if the requirements of subsections (o) and
(p) are met, the Secretary may consider and prescribe
energy efficiency or energy use standards for
electricity used by ceiling fans to circulate air in a
room.
``(B) Special consideration.--If the Secretary sets
such standards, the Secretary shall consider--
``(i) exempting or setting different
standards for certain product classes for which
the primary standards are not technically
feasible or economically justified; and
``(ii) establishing separate exempted
product classes for highly decorative fans for
which air movement performance is a secondary
design feature.
``(C) Application.--Any air movement standard
prescribed under this subsection shall apply to
products manufactured on or after the date that is 3
years after the date of publication of a final rule
establishing the standard.''.
(d) Residential Furnace Fans.--Section 325(f)(3) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(f)(3)) is amended by adding
the following new subparagraph at the end:
``(D) Notwithstanding any provision of this Act, the Secretary may
consider, and prescribe, if the requirements of subsection (o) of this
section are met, energy efficiency or energy use standards for
electricity used for purposes of circulating air through duct work.''.
SEC. 134. ENERGY LABELING.
(a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C.
6294(a)(2)) is amended by adding at the end the following:
``(F) Not later than 3 months after the date of enactment of this
subparagraph, the Commission shall initiate a rulemaking to consider
the effectiveness of the current consumer products labeling program in
assisting consumers in making purchasing decisions and improving energy
efficiency and to consider changes to the labeling rules that would
improve the effectiveness of consumer product labels. Such rulemaking
shall be completed not later than 2 years after the date of enactment
of this subparagraph.
``(G)(i) Not later than 18 months after date of enactment of this
subparagraph, 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.
``(ii) The rule prescribed under clause (i) shall apply to products
manufactured after the later of--
``(I) January 1, 2009; or
``(II) the date that is 60 days after the final rule is
prescribed.''.
(b) Rulemaking on Labeling for Additional Products.--Section 324(a)
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is
further amended by adding at the end the following:
``(5) The Secretary or the Commission, as appropriate, may, for
covered products referred to in subsections (u) through (aa) of section
325, prescribe, by rule, pursuant to this section, labeling
requirements for such products after a test procedure has been set
pursuant to section 323. In the case of products to which TP-1
standards under section 325(y) apply, labeling requirements shall be
based on the `Standard for the Labeling of Distribution Transformer
Efficiency' prescribed by the National Electrical Manufacturers
Association (NEMA TP-3) as in effect upon the date of enactment of this
paragraph.''.
SEC. 135. PREEMPTION.
Section 327 of the Energy Policy and Conservation Act (42 U.S.C.
6297) is amended by adding at the end the following:
``(h) Ceiling Fans.--Effective on January 1, 2006, this section
shall apply to and supersede all State and local standards prescribed
or enacted for ceiling fans and ceiling fan light kits.''.
SEC. 136. STATE CONSUMER PRODUCT ENERGY EFFICIENCY STANDARDS.
Section 327 of the Energy Policy and Conservation Act (42 U.S.C.
6297) is amended by adding at the end the following new subsection:
``(h) Limitation on Preemption.--Subsections (a) and (b) shall not
apply with respect to State regulation of energy consumption or water
use of any covered product during any period of time--
``(1) after the date which is 3 years after a Federal
standard is required by law to be established or revised, but
has not been established or revised; and
``(2) before the date on which such Federal standard is
established or revised.''.
Subtitle D--Public Housing
SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED
HOUSING.
Section 251(b)(1) of the National Energy Conservation Policy Act
(42 U.S.C. 8231(1)) is amended--
(1) by striking ``financed with loans'' and inserting
``assisted'';
(2) by inserting after ``1959,'' the following: ``which are
eligible multifamily housing projects (as such term is defined
in section 512 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note)) and are
subject to mortgage restructuring and rental assistance
sufficiency plans under such Act,''; and
(3) by inserting after the period at the end of the first
sentence the following new sentence: ``Such improvements may
also include the installation of energy and water conserving
fixtures and fittings that conform to the American Society of
Mechanical Engineers/American National Standards Institute
standards A112.19.2-1998 and A112.18.1-2000, or any revision
thereto, applicable at the time of installation.''.
SEC. 147. ENERGY-EFFICIENT APPLIANCES.
In purchasing appliances, a public housing agency shall purchase
energy-efficient appliances that are Energy Star products or FEMP-
designated products, as such terms are defined in section 553 of the
National Energy Conservation Policy Act (as amended by this title),
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.
SEC. 149. ENERGY STRATEGY FOR HUD.
The Secretary of Housing and Urban Development shall develop and
implement an integrated strategy to reduce utility expenses through
cost-effective energy conservation and efficiency measures and energy
efficient design and construction of public and assisted housing. The
energy strategy shall include the development of energy reduction goals
and incentives for public housing agencies. The Secretary shall submit
a report to Congress, not later than 1 year after the date of the
enactment of this Act, on the energy strategy and the actions taken by
the Department of Housing and Urban Development to monitor the energy
usage of public housing agencies and shall submit an update every 2
years thereafter on progress in implementing the strategy.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) Resource Assessment.--Not later than 6 months after the date of
enactment of this Act, and each year thereafter, the Secretary of
Energy shall review the available assessments of renewable energy
resources within the United States, including solar, wind, biomass,
ocean (tidal, wave, current, and thermal), geothermal, and
hydroelectric energy resources, and undertake new assessments as
necessary, taking into account changes in market conditions, available
technologies, and other relevant factors.
(b) Contents of Reports.--Not later than 1 year after the date of
enactment of this Act, and each year thereafter, the Secretary shall
publish a report based on the assessment under subsection (a). The
report shall contain--
(1) a detailed inventory describing the available amount
and characteristics of the renewable energy resources; and
(2) such other information as the Secretary believes would
be useful in developing such renewable energy resources,
including descriptions of surrounding terrain, population and
load centers, nearby energy infrastructure, location of energy
and water resources, and available estimates of the costs
needed to develop each resource, together with an
identification of any barriers to providing adequate
transmission for remote sources of renewable energy resources
to current and emerging markets, recommendations for removing
or addressing such barriers, and ways to provide access to the
grid that do not unfairly disadvantage renewable or other
energy producers.
(c) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Energy $10,000,000 for each of fiscal years 2006 through 2010.
SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) Incentive Payments.--Section 1212(a) of the Energy Policy Act
of 1992 (42 U.S.C. 13317(a)) is amended by striking ``and which
satisfies'' and all that follows through ``Secretary shall establish.''
and inserting ``. If there are insufficient appropriations to make full
payments for electric production from all qualified renewable energy
facilities in any given year, the Secretary shall assign 60 percent of
appropriated funds for that year to facilities that use solar, wind,
geothermal, or closed-loop (dedicated energy crops) biomass
technologies to generate electricity, and assign the remaining 40
percent to other projects. The Secretary may, after transmitting to
Congress an explanation of the reasons therefor, alter the percentage
requirements of the preceding sentence.''.
(b) Qualified Renewable Energy Facility.--Section 1212(b) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
(1) by striking ``a State or any political'' and all that
follows through ``nonprofit electrical cooperative'' and
inserting ``a not-for-profit electric cooperative, a public
utility described in section 115 of the Internal Revenue Code
of 1986, a State, Commonwealth, territory, or possession of the
United States or the District of Columbia, or a political
subdivision thereof, or an Indian tribal government or
subdivision thereof,''; and
(2) by inserting ``landfill gas, livestock methane, ocean
(tidal, wave, current, and thermal),'' after ``wind,
biomass,''.
(c) Eligibility Window.--Section 1212(c) of the Energy Policy Act
of 1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-
fiscal year period beginning with the first full fiscal year occurring
after the enactment of this section'' and inserting ``after October 1,
2005, and before October 1, 2015''.
(d) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act
of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ``landfill gas,
livestock methane, ocean (tidal, wave, current, and thermal),'' after
``wind, biomass,''.
(e) Sunset.--Section 1212(f) of the Energy Policy Act of 1992 (42
U.S.C. 13317(f)) is amended by striking ``the expiration of'' and all
that follows through ``of this section'' and inserting ``September 30,
2025''.
(f) Authorization of Appropriations.--Section 1212(g) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:
``(g) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated such sums as may be necessary to
carry out this section for fiscal years 2005 through 2025.
``(2) Availability of funds.--Funds made available under
paragraph (1) shall remain available until expended.''.
SEC. 203. FEDERAL PURCHASE REQUIREMENT.
(a) Requirement.--The President, acting through the Secretary of
Energy, shall seek to ensure that, to the extent economically feasible
and technically practicable, of the total amount of electric energy the
Federal Government consumes during any fiscal year, the following
amounts shall be renewable energy:
(1) Not less than 3 percent in fiscal years 2007 through
2009.
(2) Not less than 5 percent in fiscal years 2010 through
2012.
(3) Not less than 7.5 percent in fiscal year 2013 and each
fiscal year thereafter.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means any solid,
nonhazardous, cellulosic material that is derived from--
(A) any of the following forest-related resources:
mill residues, precommercial thinnings, slash, and
brush, or nonmerchantable material;
(B) solid wood waste materials, including waste
pallets, crates, dunnage, manufacturing and
construction wood wastes (other than pressure-treated,
chemically-treated, or painted wood wastes), and
landscape or right-of-way tree trimmings, but not
including municipal solid waste (garbage), gas derived
from the biodegradation of solid waste, or paper that
is commonly recycled;
(C) agriculture wastes, including orchard tree
crops, vineyard, grain, legumes, sugar, and other crop
by-products or residues, and livestock waste nutrients;
or
(D) a plant that is grown exclusively as a fuel for
the production of electricity.
(2) Renewable energy.--The term ``renewable energy'' means
electric energy generated from solar, wind, biomass, landfill
gas, ocean (tidal, wave, current, and thermal), geothermal,
municipal solid waste, or new hydroelectric generation capacity
achieved from increased efficiency or additions of new capacity
at an existing hydroelectric project.
(c) Calculation.--For purposes of determining compliance with the
requirement of this section, the amount of renewable energy shall be
doubled if--
(1) the renewable energy is produced and used on-site at a
Federal facility;
(2) the renewable energy is produced on Federal lands and
used at a Federal facility; or
(3) the renewable energy is produced on Indian land as
defined in title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et. seq.) and used at a Federal facility.
(d) Report.--Not later than April 15, 2007, and every 2 years
thereafter, the Secretary of Energy shall provide a report to Congress
on the progress of the Federal Government in meeting the goals
established by this section.
SEC. 204. INSULAR AREAS ENERGY SECURITY.
Section 604 of the Act entitled ``An Act to authorize
appropriations for certain insular areas of the United States, and for
other purposes'', approved December 24, 1980 (48 U.S.C. 1492), is
amended--
(1) in subsection (a)(4) by striking the period and
inserting a semicolon;
(2) by adding at the end of subsection (a) the following
new paragraphs:
``(5) electric power transmission and distribution lines in
insular areas are inadequate to withstand damage caused by the
hurricanes and typhoons which frequently occur in insular areas
and such damage often costs millions of dollars to repair; and
``(6) the refinement of renewable energy technologies since
the publication of the 1982 Territorial Energy Assessment
prepared pursuant to subsection (c) reveals the need to
reassess the state of energy production, consumption,
infrastructure, reliance on imported energy, opportunities for
energy conservation and increased energy efficiency, and
indigenous sources in regard to the insular areas.'';
(3) by amending subsection (e) to read as follows:
``(e)(1) The Secretary of the Interior, in consultation with the
Secretary of Energy and the head of government of each insular area,
shall update the plans required under subsection (c) by--
``(A) updating the contents required by subsection (c);
``(B) drafting long-term energy plans for such insular
areas with the objective of reducing, to the extent feasible,
their reliance on energy imports by the year 2012, increasing
energy conservation and energy efficiency, and maximizing, to
the extent feasible, use of indigenous energy sources; and
``(C) drafting long-term energy transmission line plans for
such insular areas with the objective that the maximum
percentage feasible of electric power transmission and
distribution lines in each insular area be protected from
damage caused by hurricanes and typhoons.
``(2) Not later than December 31, 2007, the Secretary of the
Interior shall submit to Congress the updated plans for each insular
area required by this subsection.''; and
(4) by amending subsection (g)(4) to read as follows:
``(4) Power line grants for insular areas.--
``(A) In general.--The Secretary of the Interior is
authorized to make grants to governments of insular
areas of the United States to carry out eligible
projects to protect electric power transmission and
distribution lines in such insular areas from damage
caused by hurricanes and typhoons.
``(B) Eligible projects.--The Secretary may award
grants under subparagraph (A) only to governments of
insular areas of the United States that submit written
project plans to the Secretary for projects that meet
the following criteria:
``(i) The project is designed to protect
electric power transmission and distribution
lines located in 1 or more of the insular areas
of the United States from damage caused by
hurricanes and typhoons.
``(ii) The project is likely to
substantially reduce the risk of future damage,
hardship, loss, or suffering.
``(iii) The project addresses 1 or more
problems that have been repetitive or that pose
a significant risk to public health and safety.
``(iv) The project is not likely to cost
more than the value of the reduction in direct
damage and other negative impacts that the
project is designed to prevent or mitigate. The
cost benefit analysis required by this
criterion shall be computed on a net present
value basis.
``(v) The project design has taken into
consideration long-term changes to the areas
and persons it is designed to protect and has
manageable future maintenance and modification
requirements.
``(vi) The project plan includes an
analysis of a range of options to address the
problem it is designed to prevent or mitigate
and a justification for the selection of the
project in light of that analysis.
``(vii) The applicant has demonstrated to
the Secretary that the matching funds required
by subparagraph (D) are available.
``(C) Priority.--When making grants under this
paragraph, the Secretary shall give priority to grants
for projects which are likely to--
``(i) have the greatest impact on reducing
future disaster losses; and
``(ii) best conform with plans that have
been approved by the Federal Government or the
government of the insular area where the
project is to be carried out for development or
hazard mitigation for that insular area.
``(D) Matching requirement.--The Federal share of
the cost for a project for which a grant is provided
under this paragraph shall not exceed 75 percent of the
total cost of that project. The non-Federal share of
the cost may be provided in the form of cash or
services.
``(E) Treatment of funds for certain purposes.--
Grants provided under this paragraph shall not be
considered as income, a resource, or a duplicative
program when determining eligibility or benefit levels
for Federal major disaster and emergency assistance.
``(F) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $5,000,000 for each fiscal year beginning
after the date of the enactment of this paragraph.''.
SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.
(a) In General.--Part 4 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8271 et seq.) is amended by adding
at the end the following:
``SEC. 570. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.
``(a) Photovoltaic Energy Commercialization Program.--
``(1) In general.--The Secretary may establish a
photovoltaic energy commercialization program for the
procurement and installation of photovoltaic solar electric
systems for electric production in new and existing public
buildings.
``(2) Purposes.--The purposes of the program shall be to
accomplish the following:
``(A) To accelerate the growth of a commercially
viable photovoltaic industry to make this energy system
available to the general public as an option which can
reduce the national consumption of fossil fuel.
``(B) To reduce the fossil fuel consumption and
costs of the Federal Government.
``(C) To attain the goal of installing solar energy
systems in 20,000 Federal buildings by 2010, as
contained in the Federal Government's Million Solar
Roof Initiative of 1997.
``(D) To stimulate the general use within the
Federal Government of life-cycle costing and innovative
procurement methods.
``(E) To develop program performance data to
support policy decisions on future incentive programs
with respect to energy.
``(3) Acquisition of photovoltaic solar electric systems.--
``(A) In general.--The program shall provide for
the acquisition of photovoltaic solar electric systems
and associated storage capability for use in public
buildings.
``(B) Acquisition levels.--The acquisition of
photovoltaic electric systems shall be at a level
substantial enough to allow use of low-cost production
techniques with at least 150 megawatts (peak)
cumulative acquired during the 5 years of the program.
``(4) Administration.--The Secretary shall administer the
program and shall--
``(A) issue such rules and regulations as may be
appropriate to monitor and assess the performance and
operation of photovoltaic solar electric systems
installed pursuant to this subsection;
``(B) develop innovative procurement strategies for
the acquisition of such systems; and
``(C) transmit to Congress an annual report on the
results of the program.
``(b) Photovoltaic Systems Evaluation Program.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Secretary shall establish a
photovoltaic solar energy systems evaluation program to
evaluate such photovoltaic solar energy systems as are required
in public buildings.
``(2) Program requirement.--In evaluating photovoltaic
solar energy systems under the program, the Secretary shall
ensure that such systems reflect the most advanced technology.
``(c) Authorization of Appropriations.--
``(1) Photovoltaic energy commercialization program.--There
are authorized to be appropriated to carry out subsection (a)
$50,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.
``(2) Photovoltaic systems evaluation program.--There are
authorized to be appropriated to carry out subsection (b)
$10,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.''.
(b) Conforming Amendment.--The table of sections for the National
Energy Conservation Policy Act is amended by inserting after the item
relating to section 569 the following:
``Sec. 570. Use of photovoltaic energy in public buildings.''.
SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR
ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS,
PETROLEUM-BASED PRODUCT SUBSTITUTES, AND OTHER COMMERCIAL
PURPOSES.
(a) Findings.--Congress finds the following:
(1) Thousands of communities in the United States, many
located near Federal lands, are at risk to wildfire.
Approximately 190,000,000 acres of land managed by the
Secretary of Agriculture and the Secretary of the Interior are
at risk of catastrophic fire in the near future. The
accumulation of heavy forest fuel loads continues to increase
as a result of disease, insect infestations, and drought,
further raising the risk of fire each year.
(2) In addition, more than 70,000,000 acres across all land
ownerships are at risk to higher than normal mortality over the
next 15 years from insect infestation and disease. High levels
of tree mortality from insects and disease result in increased
fire risk, loss of old growth, degraded watershed conditions,
and changes in species diversity and productivity, as well as
diminished fish and wildlife habitat and decreased timber
values.
(3) Preventive treatments such as removing fuel loading,
ladder fuels, and hazard trees, planting proper species mix and
restoring and protecting early successional habitat, and other
specific restoration treatments designed to reduce the
susceptibility of forest land, woodland, and rangeland to
insect outbreaks, disease, and catastrophic fire present the
greatest opportunity for long-term forest health by creating a
mosaic of species-mix and age distribution. Such prevention
treatments are widely acknowledged to be more successful and
cost effective than suppression treatments in the case of
insects, disease, and fire.
(4) The byproducts of preventive treatment (wood, brush,
thinnings, chips, slash, and other hazardous fuels) removed
from forest lands, woodlands and rangelands represent an
abundant supply of biomass for biomass-to-energy facilities and
raw material for business. There are currently few markets for
the extraordinary volumes of byproducts being generated as a
result of the necessary large-scale preventive treatment
activities.
(5) The United States should--
(A) promote economic and entrepreneurial
opportunities in using byproducts removed through
preventive treatment activities related to hazardous
fuels reduction, disease, and insect infestation; and
(B) develop and expand markets for traditionally
underused wood and biomass as an outlet for byproducts
of preventive treatment activities.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means trees and woody
plants, including limbs, tops, needles, and other woody parts,
and byproducts of preventive treatment, such as wood, brush,
thinnings, chips, and slash, that are removed--
(A) to reduce hazardous fuels; or
(B) to reduce the risk of or to contain disease or
insect infestation.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b(e)).
(3) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the Secretary
concerned);
(C) an Indian tribe;
(D) a small business, micro-business, or a
corporation that is incorporated in the United States;
and
(E) a nonprofit organization.
(4) Preferred community.--The term ``preferred community''
means--
(A) any town, township, municipality, or other
similar unit of local government (as determined by the
Secretary concerned) that--
(i) has a population of not more than
50,000 individuals; and
(ii) the Secretary concerned, in the sole
discretion of the Secretary concerned,
determines contains or is located near land,
the condition of which is at significant risk
of catastrophic wildfire, disease, or insect
infestation or which suffers from disease or
insect infestation; or
(B) any county that--
(i) is not contained within a metropolitan
statistical area; and
(ii) the Secretary concerned, in the sole
discretion of the Secretary concerned,
determines contains or is located near land,
the condition of which is at significant risk
of catastrophic wildfire, disease, or insect
infestation or which suffers from disease or
insect infestation.
(5) Secretary concerned.--The term ``Secretary concerned''
means--
(A) the Secretary of Agriculture with respect to
National Forest System lands; and
(B) the Secretary of the Interior with respect to
Federal lands under the jurisdiction of the Secretary
of the Interior and Indian lands.
(c) Biomass Commercial Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
any person that owns or operates a facility that uses biomass
as a raw material to produce electric energy, sensible heat,
transportation fuels, or substitutes for petroleum-based
products to offset the costs incurred to purchase biomass for
use by such facility.
(2) Grant amounts.--A grant under this subsection may not
exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--As a
condition of a grant under this subsection, the grant recipient
shall keep such records as the Secretary concerned may require
to fully and correctly disclose the use of the grant funds and
all transactions involved in the purchase of biomass. Upon
notice by a representative of the Secretary concerned, the
grant recipient shall afford the representative reasonable
access to the facility that purchases or uses biomass and an
opportunity to examine the inventory and records of the
facility.
(d) Improved Biomass Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
persons to offset the cost of projects to develop or research
opportunities to improve the use of, or add value to, biomass.
In making such grants, the Secretary concerned shall give
preference to persons in preferred communities.
(2) Selection.--The Secretary concerned shall select a
grant recipient under paragraph (1) after giving consideration
to the anticipated public benefits of the project, including
the potential to develop thermal or electric energy resources
or affordable energy, opportunities for the creation or
expansion of small businesses and micro-businesses, and the
potential for new job creation.
(3) Grant amount.--A grant under this subsection may not
exceed $500,000.
(e) Authorization of Appropriations.--There are authorized to be
appropriated $50,000,000 for each of the fiscal years 2006 through 2016
to carry out this section.
(f) Report.--Not later than October 1, 2012, the Secretary of
Agriculture, in consultation with the Secretary of the Interior, shall
submit to the Committee on Energy and Natural Resources and the
Committee on Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Resources, the Committee on Energy and Commerce, and the
Committee on Agriculture of the House of Representatives a report
describing the results of the grant programs authorized by this
section. The report shall include the following:
(1) An identification of the size, type, and the use of
biomass by persons that receive grants under this section.
(2) The distance between the land from which the biomass
was removed and the facility that used the biomass.
(3) The economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible
operations.
SEC. 207. BIOBASED PRODUCTS.
Section 9002(c)(1) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8102(c)(1)) is amended by inserting ``or such items that
comply with the regulations issued under section 103 of Public Law 100-
556 (42 U.S.C. 6914b-1)'' after ``practicable''.
SEC. 208. RENEWABLE ENERGY SECURITY.
(a) Weatherization Assistance.--Section 415(c) of the Energy
Conservation and Production Act (42 U.S.C. 6865(c)) is amended--
(1) in paragraph (1), by striking ``in paragraph (3)'' and
inserting ``in paragraphs (3) and (4)'';
(2) in paragraph (3), by striking ``$2,500 per dwelling
unit average provided in paragraph (1)'' and inserting
``dwelling unit averages provided in paragraphs (1) and (4)'';
and
(3) by adding at the end the following new paragraphs:
``(4) The expenditure of financial assistance provided under this
part for labor, weatherization materials, and related matters for a
renewable energy system shall not exceed an average of $3,000 per
dwelling unit.
``(5)(A) The Secretary shall by regulations--
``(i) establish the criteria which are to be used in
prescribing performance and quality standards under paragraph
(6)(A)(ii) or in specifying any form of renewable energy under
paragraph (6)(A)(i)(I); and
``(ii) establish a procedure under which a manufacturer of
an item may request the Secretary to certify that the item will
be treated, for purposes of this paragraph, as a renewable
energy system.
``(B) The Secretary shall make a final determination with respect
to any request filed under subparagraph (A)(ii) within 1 year after the
filing of the request, together with any information required to be
filed with such request under subparagraph (A)(ii).
``(C) Each month the Secretary shall publish a report of any
request under subparagraph (A)(ii) which has been denied during the
preceding month and the reasons for the denial.
``(D) The Secretary shall not specify any form of renewable energy
under paragraph (6)(A)(i)(I) unless the Secretary determines that--
``(i) there will be a reduction in oil or natural gas
consumption as a result of such specification;
``(ii) such specification will not result in an increased
use of any item which is known to be, or reasonably suspected
to be, environmentally hazardous or a threat to public health
or safety; and
``(iii) available Federal subsidies do not make such
specification unnecessary or inappropriate (in the light of the
most advantageous allocation of economic resources).
``(6) In this subsection--
``(A) the term `renewable energy system' means a system
which--
``(i) when installed in connection with a dwelling,
transmits or uses--
``(I) solar energy, energy derived from the
geothermal deposits, energy derived from
biomass, or any other form of renewable energy
which the Secretary specifies by regulations,
for the purpose of heating or cooling such
dwelling or providing hot water or electricity
for use within such dwelling; or
``(II) wind energy for nonbusiness
residential purposes;
``(ii) meets the performance and quality standards
(if any) which have been prescribed by the Secretary by
regulations;
``(iii) in the case of a combustion rated system,
has a thermal efficiency rating of at least 75 percent;
and
``(iv) in the case of a solar system, has a thermal
efficiency rating of at least 15 percent; and
``(B) the term `biomass' means any organic matter that is
available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and
residues, plants (including aquatic plants), grasses, residues,
fibers, and animal wastes, municipal wastes, and other waste
materials.''.
(b) District Heating and Cooling Programs.--Section 172 of the
Energy Policy Act of 1992 (42 U.S.C. 13451 note) is amended--
(1) in subsection (a)--
(A) by striking ``and'' at the end of paragraph
(3);
(B) by striking the period at the end of paragraph
(4) and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(5) evaluate the use of renewable energy systems (as such
term is defined in section 415(c) of the Energy Conservation
and Production Act (42 U.S.C. 6865(c))) in residential
buildings.''; and
(2) in subsection (b), by striking ``this Act'' and
inserting ``the Energy Policy Act of 2005''.
(c) Definition of Biomass.--Section 203(2) of the Biomass Energy
and Alcohol Fuels Act of 1980 (42 U.S.C. 8802(2)) is amended to read as
follows:
``(2) The term `biomass' means any organic matter that is
available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and
residues, plants (including aquatic plants), grasses, residues,
fibers, and animal wastes, municipal wastes, and other waste
materials.''.
(d) Rebate Program.--
(1) Establishment.--The Secretary of Energy shall establish
a program providing rebates for consumers for expenditures made
for the installation of a renewable energy system in connection
with a dwelling unit or small business.
(2) Amount of rebate.--Rebates provided under the program
established under paragraph (1) shall be in an amount not to
exceed the lesser of--
(A) 25 percent of the expenditures described in
paragraph (1) made by the consumer; or
(B) $3,000.
(3) Definition.--For purposes of this subsection, the term
``renewable energy system'' has the meaning given that term in
section 415(c)(6)(A) of the Energy Conservation and Production
Act (42 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) of
this section.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Energy for carrying out
this subsection, to remain available until expended--
(A) $150,000,000 for fiscal year 2006;
(B) $150,000,000 for fiscal year 2007;
(C) $200,000,000 for fiscal year 2008;
(D) $250,000,000 for fiscal year 2009; and
(E) $250,000,000 for fiscal year 2010.
(e) Renewable Fuel Inventory.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Energy shall transmit
to Congress a report containing--
(1) an inventory of renewable fuels available for
consumers; and
(2) a projection of future inventories of renewable fuels
based on the incentives provided in this section
Subtitle C--Hydroelectric
PART I--ALTERNATIVE CONDITIONS
SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) Federal Reservations.--Section 4(e) of the Federal Power Act
(16 U.S.C. 797(e)) is amended by inserting after ``adequate protection
and utilization of such reservation.'' at the end of the first proviso
the following: ``The license applicant shall be entitled to a
determination on the record, after opportunity for an expedited agency
trial-type hearing of any disputed issues of material fact, with
respect to such conditions. Such hearing may be conducted in accordance
with procedures established by agency regulation in consultation with
the Federal Energy Regulatory Commission.''.
(b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 811)
is amended by inserting after ``and such fishways as may be prescribed
by the Secretary of Commerce.'' the following: ``The license applicant
shall be entitled to a determination on the record, after opportunity
for an expedited agency trial-type hearing of any disputed issues of
material fact, with respect to such fishways. Such hearing may be
conducted in accordance with procedures established by agency
regulation in consultation with the Federal Energy Regulatory
Commission.''.
(c) Alternative Conditions and Prescriptions.--Part I of the
Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the
following new section at the end thereof:
``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.
``(a) Alternative Conditions.--(1) Whenever any person applies for
a license for any project works within any reservation of the United
States, and the Secretary of the department under whose supervision
such reservation falls (referred to in this subsection as `the
Secretary') deems a condition to such license to be necessary under the
first proviso of section 4(e), the license applicant may propose an
alternative condition.
``(2) Notwithstanding the first proviso of section 4(e), the
Secretary shall accept the proposed alternative condition referred to
in paragraph (1), and the Commission shall include in the license such
alternative condition, if the Secretary determines, based on
substantial evidence provided by the license applicant or otherwise
available to the Secretary, that such alternative condition--
``(A) provides for the adequate protection and utilization
of the reservation; and
``(B) will either--
``(i) cost less to implement; or
``(ii) result in improved operation of the project
works for electricity production,
as compared to the condition initially deemed necessary by the
Secretary.
``(3) The Secretary shall submit into the public record of the
Commission proceeding with any condition under section 4(e) or
alternative condition it accepts under this section, a written
statement explaining the basis for such condition, and reason for not
accepting any alternative condition under this section. The written
statement must demonstrate that the Secretary gave equal consideration
to the effects of the condition adopted and alternatives not accepted
on energy supply, distribution, cost, and use; flood control;
navigation; water supply; and air quality (in addition to the
preservation of other aspects of environmental quality); based on such
information as may be available to the Secretary, including information
voluntarily provided in a timely manner by the applicant and others.
The Secretary shall also submit, together with the aforementioned
written statement, all studies, data, and other factual information
available to the Secretary and relevant to the Secretary's decision.
``(4) Nothing in this section shall prohibit other interested
parties from proposing alternative conditions.
``(5) If the Secretary does not accept an applicant's alternative
condition under this section, and the Commission finds that the
Secretary's condition would be inconsistent with the purposes of this
part, or other applicable law, the Commission may refer the dispute to
the Commission's Dispute Resolution Service. The Dispute Resolution
Service shall consult with the Secretary and the Commission and issue a
non-binding advisory within 90 days. The Secretary may accept the
Dispute Resolution Service advisory unless the Secretary finds that the
recommendation will not provide for the adequate protection and
utilization of the reservation. The Secretary shall submit the advisory
and the Secretary's final written determination into the record of the
Commission's proceeding.
``(b) Alternative Prescriptions.--(1) Whenever the Secretary of the
Interior or the Secretary of Commerce prescribes a fishway under
section 18, the license applicant or licensee may propose an
alternative to such prescription to construct, maintain, or operate a
fishway.
``(2) Notwithstanding section 18, the Secretary of the Interior or
the Secretary of Commerce, as appropriate, shall accept and prescribe,
and the Commission shall require, the proposed alternative referred to
in paragraph (1), if the Secretary of the appropriate department
determines, based on substantial evidence provided by the licensee or
otherwise available to the Secretary, that such alternative--
``(A) will be no less protective than the fishway initially
prescribed by the Secretary; and
``(B) will either--
``(i) cost less to implement; or
``(ii) result in improved operation of the project
works for electricity production,
as compared to the fishway initially deemed necessary by the
Secretary.
``(3) The Secretary concerned shall submit into the public record
of the Commission proceeding with any prescription under section 18 or
alternative prescription it accepts under this section, a written
statement explaining the basis for such prescription, and reason for
not accepting any alternative prescription under this section. The
written statement must demonstrate that the Secretary gave equal
consideration to the effects of the condition adopted and alternatives
not accepted on energy supply, distribution, cost, and use; flood
control; navigation; water supply; and air quality (in addition to the
preservation of other aspects of environmental quality); based on such
information as may be available to the Secretary, including information
voluntarily provided in a timely manner by the applicant and others.
The Secretary shall also submit, together with the aforementioned
written statement, all studies, data, and other factual information
available to the Secretary and relevant to the Secretary's decision.
``(4) Nothing in this section shall prohibit other interested
parties from proposing alternative prescriptions.
``(5) If the Secretary concerned does not accept an applicant's
alternative prescription under this section, and the Commission finds
that the Secretary's prescription would be inconsistent with the
purposes of this part, or other applicable law, the Commission may
refer the dispute to the Commission's Dispute Resolution Service. The
Dispute Resolution Service shall consult with the Secretary and the
Commission and issue a non-binding advisory within 90 days. The
Secretary may accept the Dispute Resolution Service advisory unless the
Secretary finds that the recommendation will be less protective than
the fishway initially prescribed by the Secretary. The Secretary shall
submit the advisory and the Secretary's final written determination
into the record of the Commission's proceeding.''.
PART II--ADDITIONAL HYDROPOWER
SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and sold by
a qualified hydroelectric facility during the incentive period, the
Secretary of Energy (referred to in this section as the ``Secretary'')
shall make, subject to the availability of appropriations, incentive
payments to the owner or operator of such facility. The amount of such
payment made to any such owner or operator shall be as determined under
subsection (e) of this section. Payments under this section may only be
made upon receipt by the Secretary of an incentive payment application
which establishes that the applicant is eligible to receive such
payment and which satisfies such other requirements as the Secretary
deems necessary. Such application shall be in such form, and shall be
submitted at such time, as the Secretary shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term ``qualified
hydroelectric facility'' means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added to
an existing dam or conduit.
(2) Existing dam or conduit.--The term ``existing dam or
conduit'' means any dam or conduit the construction of which
was completed before the date of the enactment of this section
and which does not require any construction or enlargement of
impoundment or diversion structures (other than repair or
reconstruction) in connection with the installation of a
turbine or other generating device.
(3) Conduit.--The term ``conduit'' has the same meaning as
when used in section 30(a)(2) of the Federal Power Act (16
U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without regard to the
hydroelectric kilowatt capacity of the facility concerned, without
regard to whether the facility uses a dam owned by a governmental or
nongovernmental entity, and without regard to whether the facility
begins operation on or after the date of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this section
only for electric energy generated from a qualified hydroelectric
facility which begins operation during the period of 10 fiscal years
beginning with the first full fiscal year occurring after the date of
enactment of this subtitle.
(d) Incentive Period.--A qualified hydroelectric facility may
receive payments under this section for a period of 10 fiscal years
(referred to in this section as the ``incentive period''). Such period
shall begin with the fiscal year in which electric energy generated
from the facility is first eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under this
section to the owner or operator of a qualified hydroelectric
facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the
incentive period. For any such facility, the amount of such
payment shall be 1.8 cents per kilowatt hour (adjusted as
provided in paragraph (2)), subject to the availability of
appropriations under subsection (g), except that no facility
may receive more than $750,000 in 1 calendar year.
(2) Adjustments.--The amount of the payment made to any
person under this section as provided in paragraph (1) shall be
adjusted for inflation for each fiscal year beginning after
calendar year 2005 in the same manner as provided in the
provisions of section 29(d)(2)(B) of the Internal Revenue Code
of 1986, except that in applying such provisions the calendar
year 2005 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to any
qualified hydroelectric facility after the expiration of the period of
20 fiscal years beginning with the first full fiscal year occurring
after the date of enactment of this subtitle, and no payment may be
made under this section to any such facility after a payment has been
made with respect to such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out the purposes of this section
$10,000,000 for each of the fiscal years 2006 through 2015.
SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary of Energy shall make
incentive payments to the owners or operators of hydroelectric
facilities at existing dams to be used to make capital improvements in
the facilities that are directly related to improving the efficiency of
such facilities by at least 3 percent.
(b) Limitations.--Incentive payments under this section shall not
exceed 10 percent of the costs of the capital improvement concerned and
not more than 1 payment may be made with respect to improvements at a
single facility. No payment in excess of $750,000 may be made with
respect to improvements at a single facility.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section not more than $10,000,000 for
each of the fiscal years 2006 through 2015.
SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS.
Section 408(a)(6) of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2708(a)(6)) is amended by striking ``April 20, 1977''
and inserting ``March 4, 2003''.
SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL
FACILITIES.
(a) In General.--The Secretary of the Interior and the Secretary of
Energy, in consultation with the Secretary of the Army, shall jointly
conduct a study of the potential for increasing electric power
production capability at federally owned or operated water regulation,
storage, and conveyance facilities.
(b) Content.--The study under this section shall include
identification and description in detail of each facility that is
capable, with or without modification, of producing additional
hydroelectric power, including estimation of the existing potential for
the facility to generate hydroelectric power.
(c) Report.--The Secretaries shall submit to the Committees on
Energy and Commerce, Resources, and Transportation and Infrastructure
of the House of Representatives and the Committee on Energy and Natural
Resources of the Senate a report on the findings, conclusions, and
recommendations of the study under this section by not later than 18
months after the date of the enactment of this Act. The report shall
include each of the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities currently conducted or
considered, or that could be considered, to produce additional
hydroelectric power from each identified facility.
(3) A summary of prior actions taken by the Secretaries to
produce additional hydroelectric power from each identified
facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility and the level of Federal power
customer involvement in the determination of such costs.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action, including
quantified estimates of any additional energy or capacity from
each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by replacing turbine runners, by performing
generator upgrades or rewinds, or construction of pumped
storage facilities.
(7) The impact of increased hydroelectric power production
on irrigation, fish, wildlife, Indian tribes, river health,
water quality, navigation, recreation, fishing, and flood
control.
(8) Any additional recommendations to increase
hydroelectric power production from, and reduce costs and
improve efficiency at, federally owned or operated water
regulation, storage, and conveyance facilities.
SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.
(a) In General.--The Secretary of the Interior shall--
(1) review electric power consumption by Bureau of
Reclamation facilities for water pumping purposes; and
(2) make such adjustments in such pumping as possible to
minimize the amount of electric power consumed for such pumping
during periods of peak electric power consumption, including by
performing as much of such pumping as possible during off-peak
hours at night.
(b) Consent of Affected Irrigation Customers Required.--The
Secretary may not under this section make any adjustment in pumping at
a facility without the consent of each person that has contracted with
the United States for delivery of water from the facility for use for
irrigation and that would be affected by such adjustment.
(c) Existing Obligations not Affected.--This section shall not be
construed to affect any existing obligation of the Secretary to provide
electric power, water, or other benefits from Bureau of Reclamation
facilities, including recreational releases.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM
RESERVE AND OTHER ENERGY PROGRAMS.
(a) Amendment to Title I of the Energy Policy and Conservation
Act.--Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211
et seq.) is amended--
(1) by striking section 166 (42 U.S.C. 6246) and inserting
the following:
``authorization of appropriations
``Sec. 166. There are authorized to be appropriated to the
Secretary such sums as may be necessary to carry out this part and part
D, to remain available until expended.'';
(2) by striking section 186 (42 U.S.C. 6250e); and
(3) by striking part E (42 U.S.C. 6251; relating to the
expiration of title I of the Act).
(b) Amendment to Title II of the Energy Policy and Conservation
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C.
6271 et seq.) is amended--
(1) by inserting before section 273 (42 U.S.C. 6283) the
following:
``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS'';
(2) by striking section 273(e) (42 U.S.C. 6283(e); relating
to the expiration of summer fill and fuel budgeting programs);
and
(3) by striking part D (42 U.S.C. 6285; relating to the
expiration of title II of the Act).
(c) Technical Amendments.--The table of contents for the Energy
Policy and Conservation Act is amended--
(1) by inserting after the items relating to part C of
title I the following:
``Part D--Northeast Home Heating Oil Reserve
``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
(2) by amending the items relating to part C of title II to
read as follows:
``Part C--Summer Fill and Fuel Budgeting Programs
``Sec. 273. Summer fill and fuel budgeting programs.'';
and
(3) by striking the items relating to part D of title II.
(d) Amendment to the Energy Policy and Conservation Act.--Section
183(b)(1) of the Energy Policy and Conservation Act (42 U.S.C.
6250(b)(1)) is amended by striking all after ``increases'' through to
``mid-October through March'' and inserting ``by more than 60 percent
over its 5-year rolling average for the months of mid-October through
March (considered as a heating season average)''.
(e) Fill Strategic Petroleum Reserve to Capacity.--The Secretary of
Energy shall, as expeditiously as practicable, acquire petroleum in
amounts sufficient to fill the Strategic Petroleum Reserve to the
1,000,000,000 barrel capacity authorized under section 154(a) of the
Energy Policy and Conservation Act (42 U.S.C. 6234(a)), consistent with
the provisions of sections 159 and 160 of such Act (42 U.S.C. 6239,
6240).
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.
Section 713 of the Energy Act of 2000 (42 U.S.C. 6201 note) is
amended by striking ``4'' and inserting ``9''.
SEC. 303. SITE SELECTION.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Energy shall complete a proceeding to select, from sites
that the Secretary has previously studied, sites necessary to enable
acquisition by the Secretary of the full authorized volume of the
Strategic Petroleum Reserve.
SEC. 304. SUSPENSION OF STRATEGIC PETROLEUM RESERVE DELIVERIES.
The Secretary of Energy shall suspend deliveries of royalty-in-kind
oil to the Strategic Petroleum Reserve until the price of oil falls
below $40 per barrel for 2 consecutive weeks on the New York Mercantile
Exchange.
Subtitle B--Production Incentives
SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS TERMINALS.
(a) Scope of Natural Gas Act.--Section 1(b) of the Natural Gas Act
(15 U.S.C. 717(b)) is amended by inserting ``and to the importation or
exportation of natural gas in foreign commerce and to persons engaged
in such importation or exportation,'' after ``such transportation or
sale,''.
(b) Definition.--Section 2 of the Natural Gas Act (15 U.S.C. 717a)
is amended by adding at the end the following new paragraph:
``(11) `Liquefaction or gasification natural gas terminal'
includes all facilities located onshore or in State waters that
are used to receive, unload, load, store, transport, gasify,
liquefy, or process natural gas that is imported to the United
States from a foreign country, exported to a foreign country
from the United States, or transported in interstate commerce
by waterborne tanker, but does not include--
``(A) waterborne tankers used to deliver natural
gas to or from any such facility; or
``(B) any pipeline or storage facility subject to
the jurisdiction of the Commission under section 7.''.
(c) Authorization for Construction, Expansion, or Operation of
Liquefaction or Gasification Natural Gas Terminals.--(1) The title for
section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
inserting ``; liquefaction or gasification natural gas terminals''
after ``exportation or importation of natural gas''.
(2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
adding at the end the following:
``(d) Authorization for Construction, Expansion, or Operation of
Liquefaction or Gasification Natural Gas Terminals.--
``(1) Commission authorization required.--No person shall
construct, expand, or operate a liquefaction or gasification
natural gas terminal without an order from the Commission
authorizing such person to do so.
``(2) Authorization procedures.--
``(A) Notice and hearing.--Upon the filing of any
application to construct, expand, or operate a
liquefaction or gasification natural gas terminal, the
Commission shall--
``(i) set the matter for hearing;
``(ii) give reasonable notice of the
hearing to all interested persons, including
the State commission of the State in which the
liquefaction or gasification natural gas
terminal is located;
``(iii) decide the matter in accordance
with this subsection; and
``(iv) issue or deny the appropriate order
accordingly.
``(B) Designation as lead agency.--
``(i) In general.--The Commission shall act
as the lead agency for the purposes of
coordinating all applicable Federal
authorizations and for the purposes of
complying with the National Environmental
Policy Act of 1969 (42 U.S.C. 4312 et seq.) for
a liquefaction or gasification natural gas
terminal.
``(ii) Other agencies.--Each Federal agency
considering an aspect of the construction,
expansion, or operation of a liquefaction or
gasification natural gas terminal shall
cooperate with the Commission and comply with
the deadlines established by the Commission.
``(C) Schedule.--
``(i) Commission authority to set
schedule.--The Commission shall establish a
schedule for all Federal and State
administrative proceedings required under
authority of Federal law to construct, expand,
or operate a liquefaction or gasification
natural gas terminal. In establishing the
schedule, the Commission shall--
``(I) ensure expeditious completion
of all such proceedings; and
``(II) accommodate the applicable
schedules established by Federal law
for such proceedings.
``(ii) Failure to meet schedule.--If a
Federal or State administrative agency does not
complete a proceeding for an approval that is
required before a person may construct, expand,
or operate the liquefaction or gasification
natural gas terminal, in accordance with the
schedule established by the Commission under
this subparagraph, and if--
``(I) a determination has been made
by the Court pursuant to section 19(d)
that such delay is unreasonable; and
``(II) the agency has failed to act
on any remand by the Court within the
deadline set by the Court,
that approval may be conclusively presumed by
the Commission.
``(D) Exclusive record.--The Commission shall, with
the cooperation of Federal and State administrative
agencies and officials, maintain a complete
consolidated record of all decisions made or actions
taken by the Commission or by a Federal administrative
agency or officer (or State administrative agency or
officer acting under delegated Federal authority) with
respect to the construction, expansion, or operation of
a liquefaction or gasification natural gas terminal.
Such record shall be the exclusive record for any
Federal administrative proceeding that is an appeal or
review of any such decision made or action taken.
``(E) State and local safety considerations.--
``(i) In general.--The Commission shall
consult with the State commission of the State
in which the liquefaction or gasification
natural gas terminal is located regarding State
and local safety considerations prior to
issuing an order pursuant to this subsection
and consistent with the schedule established
under subparagraph (C).
``(ii) State safety inspections.--The State
commission of the State in which a liquefaction
or gasification natural gas terminal is located
may, after the terminal is operational, conduct
safety inspections with respect to the
liquefaction or gasification natural gas
terminal if--
``(I) the State commission provides
written notice to the Commission of its
intention to do so; and
``(II) the inspections will be
carried out in conformance with Federal
regulations and guidelines.
Enforcement of any safety violation discovered
by a State commission pursuant to this clause
shall be carried out by Federal officials. The
Commission shall take appropriate action in
response to a report of a violation not later
that 90 days after receiving such report.
``(iii) State and local safety
considerations.--For the purposes of this
subparagraph, State and local safety
considerations include--
``(I) the kind and use of the
facility;
``(II) the existing and projected
population and demographic
characteristics of the location;
``(III) the existing and proposed
land use near the location;
``(IV) the natural and physical
aspects of the location;
``(V) the medical, law enforcement,
and fire prevention capabilities near
the location that can respond at the
facility; and
``(VI) the feasibility of remote
siting.
``(3) Issuance of commission order.--
``(A) In general.--The Commission shall issue an
order authorizing, in whole or in part, the
construction, expansion, or operation covered by the
application to any qualified applicant--
``(i) unless the Commission finds such
actions or operations will not be consistent
with the public interest; and
``(ii) if the Commission has found that the
applicant is--
``(I) able and willing to carry out
the actions and operations proposed;
and
``(II) willing to conform to the
provisions of this Act and any
requirements, rules, and regulations of
the Commission set forth under this
Act.
``(B) Terms and conditions.--The Commission may by
its order grant an application, in whole or in part,
with such modification and upon such terms and
conditions as the Commission may find necessary or
appropriate.
``(C) Limitations on terms and conditions to
commission order.--
``(i) In general.--Any Commission order
issued pursuant to this subsection before
January 1, 2011, shall not be conditioned on--
``(I) a requirement that the
liquefaction or gasification natural
gas terminal offer service to persons
other than the person, or any affiliate
thereof, securing the order; or
``(II) any regulation of the
liquefaction or gasification natural
gas terminal's rates, charges, terms,
or conditions of service.
``(ii) Inapplicable to terminal exit
pipeline.--Clause (i) shall not apply to any
pipeline subject to the jurisdiction of the
Commission under section 7 exiting a
liquefaction or gasification natural gas
terminal.
``(iii) Expansion of regulated terminal.--
An order issued under this paragraph that
relates to an expansion of an existing
liquefaction or gasification natural gas
terminal, where any portion of the existing
terminal continues to be subject to Commission
regulation of rates, charges, terms, or
conditions of service, may not result in--
``(I) subsidization of the
expansion by regulated terminal users;
``(II) degradation of service to
the regulated terminal users; or
``(III) undue discrimination
against the regulated terminal users.
``(iv) Expiration.--This subparagraph shall
cease to have effect on January 1, 2021.
``(4) Definition.--For the purposes of this subsection, the
term `Federal authorization' means any authorization required
under Federal law in order to construct, expand, or operate a
liquefaction or gasification natural gas terminal, including
such permits, special use authorizations, certifications,
opinions, or other approvals as may be required, whether issued
by a Federal or State agency.''.
(d) Judicial Review.--Section 19 of the Natural Gas Act (15 U.S.C.
717r) is amended by adding at the end the following:
``(d) Judicial Review.--
``(1) In general.--The United States Court of Appeals for
the District of Columbia Circuit shall have original and
exclusive jurisdiction over any civil action--
``(A) for review of any order, action, or failure
to act of any Federal or State administrative agency to
issue, condition, or deny any permit, license,
concurrence, or approval required under Federal law for
the construction, expansion, or operation of a
liquefaction or gasification natural gas terminal;
``(B) alleging unreasonable delay, in meeting a
schedule established under section 3(d)(2)(C) or
otherwise, by any Federal or State administrative
agency in entering an order or taking other action
described in subparagraph (A); or
``(C) challenging any decision made or action taken
by the Commission under section 3(d).
``(2) Commission action.--For any action described in this
subsection, the Commission shall file with the Court the
consolidated record maintained under section 3(d)(2)(D).
``(3) Court action.--If the Court finds under paragraph
(1)(A) or (B) that an order, action, failure to act, or delay
is inconsistent with applicable Federal law, and would prevent
the construction, expansion, or operation of a liquefaction or
gasification natural gas terminal, the order or action shall be
deemed to have been issued or taken, subject to any conditions
established by the Federal or State administrative agency upon
remand from the Court, such conditions to be consistent with
the order of the Court. If the Court remands the order or
action to the Federal or State agency, the Court shall set a
reasonable deadline for the agency to act on remand.
``(4) Unreasonable delay.--For the purposes of paragraph
(1)(B), the failure of an agency to issue a permit, license,
concurrence, or approval within the later of--
``(A) 1 year after the date of filing of an
application for the permit, license, concurrence, or
approval; or
``(B) 60 days after the date of issuance of the
order under section 3(d),
shall be considered unreasonable delay unless the Court, for
good cause shown, determines otherwise.
``(5) Expedited review.--The Court shall set any action
brought under this subsection for expedited consideration.''.
SEC. 327. HYDRAULIC FRACTURING.
Paragraph (1) of section 1421(d) of the Safe Drinking Water Act (42
U.S.C. 300h(d)) is amended to read as follows:
``(1) Underground injection.--The term `underground
injection'--
``(A) means the subsurface emplacement of fluids by
well injection; and
``(B) excludes--
``(i) the underground injection of natural
gas for purposes of storage; and
``(ii) the underground injection of fluids
or propping agents pursuant to hydraulic
fracturing operations related to oil or gas
production activities.''.
SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION OR OFFSHORE MINERAL
DEVELOPMENT PROJECTS.
(a) Agency of Record, Pipeline Construction Projects.--Any Federal
administrative agency proceeding that is an appeal or review under
section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1465), as amended by this Act, related to Federal authority for an
interstate natural gas pipeline construction project, including
construction of natural gas storage and liquefied natural gas
facilities, shall use as its exclusive record for all purposes the
record compiled by the Federal Energy Regulatory Commission pursuant to
the Commission's proceeding under sections 3 and 7 of the Natural Gas
Act (15 U.S.C. 717b, 717f).
(b) Sense of Congress.--It is the sense of Congress that all
Federal and State agencies with jurisdiction over interstate natural
gas pipeline construction activities should coordinate their
proceedings within the timeframes established by the Federal Energy
Regulatory Commission when the Commission is acting under sections 3
and 7 of the Natural Gas Act (15 U.S.C. 717b, 717f) to determine
whether a certificate of public convenience and necessity should be
issued for a proposed interstate natural gas pipeline.
(c) Agency of Record, Offshore Mineral Development Projects.--Any
Federal administrative agency proceeding that is an appeal or review
under section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1465), as amended by this Act, related to Federal authority for the
permitting, approval, or other authorization of energy projects,
including projects to explore, develop, or produce mineral resources in
or underlying the outer Continental Shelf shall use as its exclusive
record for all purposes (except for the filing of pleadings) the record
compiled by the relevant Federal permitting agency.
SEC. 333. NATURAL GAS MARKET TRANSPARENCY.
The Natural Gas Act (15 U.S.C 717 et seq.) is amended--
(1) by redesignating section 24 as section 25; and
(2) by inserting after section 23 the following:
``SEC. 24. NATURAL GAS MARKET TRANSPARENCY.
``(a) Authorization.--(1) Not later than 180 days after the date of
enactment of the Energy Policy Act of 2005, the Federal Energy
Regulatory Commission shall issue rules directing all entities subject
to the Commission's jurisdiction as provided under this Act to timely
report information about the availability and prices of natural gas
sold at wholesale in interstate commerce to the Commission and price
publishers.
``(2) The Commission shall evaluate the data for adequate price
transparency and accuracy.
``(3) Rules issued under this subsection requiring the reporting of
information to the Commission that may become publicly available shall
be limited to aggregate data and transaction-specific data that are
otherwise required by the Commission to be made public.
``(4) In exercising its authority under this section, the
Commission shall not--
``(A) compete with, or displace from the market place, any
price publisher; or
``(B) regulate price publishers or impose any requirements
on the publication of information.
``(b) Timely Enforcement.--No person shall be subject to any
penalty under this section with respect to a violation occurring more
than 3 years before the date on which the Federal Energy Regulatory
Commission seeks to assess a penalty.
``(c) Limitation on Commission Authority.--(1) The Commission shall
not condition access to interstate pipeline transportation upon the
reporting requirements authorized under this section.
``(2) Natural gas sales by a producer that are attributable to
volumes of natural gas produced by such producer shall not be subject
to the rules issued pursuant to this section.
``(3) The Commission shall not require natural gas producers,
processors, or users who have a de minimis market presence to
participate in the reporting requirements provided in this section.''.
Subtitle C--Access to Federal Land
SEC. 344. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the Secretary
of Agriculture shall enter into a memorandum of understanding regarding
oil and gas leasing on--
(1) public lands under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System lands under the jurisdiction of
the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall include
provisions that--
(1) establish administrative procedures and lines of
authority that ensure timely processing of oil and gas lease
applications, surface use plans of operation, and applications
for permits to drill, including steps for processing surface
use plans and applications for permits to drill consistent with
the timelines established by the amendment made by section 348;
(2) eliminate duplication of effort by providing for
coordination of planning and environmental compliance efforts;
and
(3) ensure that lease stipulations are--
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to protect the
resource for which the stipulations are applied.
(c) Data Retrieval System.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall establish a joint data retrieval
system that is capable of--
(A) tracking applications and formal requests made
in accordance with procedures of the Federal onshore
oil and gas leasing program; and
(B) providing information regarding the status of
the applications and requests within the Department of
the Interior and the Department of Agriculture.
(2) Resource mapping.--Not later than 2 years after the
date of enactment of this Act, the Secretary of the Interior
and the Secretary of Agriculture shall establish a joint
Geographic Information System mapping system for use in--
(A) tracking surface resource values to aid in
resource management; and
(B) processing surface use plans of operation and
applications for permits to drill.
SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS CONCERNING
REGULATIONS THAT SIGNIFICANTLY AFFECT ENERGY SUPPLY,
DISTRIBUTION, OR USE.
(a) Requirement.--The head of each Federal agency shall require
that before the Federal agency takes any action that could have a
significant adverse effect on the supply of domestic energy resources
from Federal public land, the Federal agency taking the action shall
comply with Executive Order No. 13211 (42 U.S.C. 13201 note).
(b) Guidance.--Not later than 180 days after the date of enactment
of this Act, the Secretary of Energy shall publish guidance for
purposes of this section describing what constitutes a significant
adverse effect on the supply of domestic energy resources under
Executive Order No. 13211 (42 U.S.C. 13201 note).
(c) Memorandum of Understanding.--The Secretary of the Interior and
the Secretary of Agriculture shall include in the memorandum of
understanding under section 344 provisions for implementing subsection
(a) of this section.
SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND CORRIDORS ON FEDERAL LAND.
(a) Report to Congress.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Agriculture and the
Secretary of the Interior, in consultation with the Secretary
of Commerce, the Secretary of Defense, the Secretary of Energy,
and the Federal Energy Regulatory Commission, shall submit to
Congress a joint report--
(A) that addresses--
(i) the location of existing rights-of-way
and designated and de facto corridors for oil
and gas pipelines and electric transmission and
distribution facilities on Federal land; and
(ii) opportunities for additional oil and
gas pipeline and electric transmission capacity
within those rights-of-way and corridors; and
(B) that includes a plan for making available, on
request, to the appropriate Federal, State, and local
agencies, tribal governments, and other persons
involved in the siting of oil and gas pipelines and
electricity transmission facilities Geographic
Information System-based information regarding the
location of the existing rights-of-way and corridors
and any planned rights-of-way and corridors.
(2) Consultations and considerations.--In preparing the
report, the Secretary of the Interior and the Secretary of
Agriculture shall consult with--
(A) other agencies of Federal, State, tribal, or
local units of government, as appropriate;
(B) persons involved in the siting of oil and gas
pipelines and electric transmission facilities; and
(C) other interested members of the public.
(3) Limitation.--The Secretary of the Interior and the
Secretary of Agriculture shall limit the distribution of the
report and Geographic Information System-based information
referred to in paragraph (1) as necessary for national and
infrastructure security reasons, if either Secretary determines
that the information may be withheld from public disclosure
under a national security or other exception under section
552(b) of title 5, United States Code.
(b) Corridor Designations.--
(1) 11 contiguous western states.--Not later than 2 years
after the date of enactment of this Act, the Secretary of
Agriculture, the Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, and the Secretary of the
Interior, in consultation with the Federal Energy Regulatory
Commission and the affected utility industries, shall jointly--
(A) designate, under title V of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1761 et
seq.) and other applicable Federal laws, corridors for
oil and gas pipelines and electricity transmission and
facilities on Federal land in the eleven contiguous
Western States (as defined in section 103 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1702));
(B) perform any environmental reviews that may be
required to complete the designations of corridors for
the facilities on Federal land in the eleven contiguous
Western States; and
(C) incorporate the designated corridors into--
(i) the relevant departmental and agency
land use and resource management plans; or
(ii) equivalent plans.
(2) Other states.--Not later than 4 years after the date of
enactment of this Act, the Secretary of Agriculture, the
Secretary of Commerce, the Secretary of Defense, the Secretary
of Energy, and the Secretary of the Interior, in consultation
with the Federal Energy Regulatory Commission and the affected
utility industries, shall jointly--
(A) identify corridors for oil and gas pipelines
and electricity transmission and distribution
facilities on Federal land in the States other than
those described in paragraph (1); and
(B) schedule prompt action to identify, designate,
and incorporate the corridors into the land use plan.
(3) Ongoing responsibilities.--The Secretary of
Agriculture, the Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, and the Secretary of the
Interior, with respect to lands under their respective
jurisdictions, in consultation with the Federal Energy
Regulatory Commission and the affected utility industries,
shall establish procedures that--
(A) ensure that additional corridors for oil and
gas pipelines and electricity transmission and
distribution facilities on Federal land are promptly
identified and designated; and
(B) expedite applications to construct or modify
oil and gas pipelines and electricity transmission and
distribution facilities within the corridors, taking
into account prior analyses and environmental reviews
undertaken during the designation of corridors.
(c) Considerations.--In carrying out this section, the Secretaries
shall take into account the need for upgraded and new electricity
transmission and distribution facilities to--
(1) improve reliability;
(2) relieve congestion; and
(3) enhance the capability of the national grid to deliver
electricity.
(d) Definition of Corridor.--
(1) In general.--In this section and title V of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1761 et
seq.), the term ``corridor'' means--
(A) a linear strip of land--
(i) with a width determined with
consideration given to technological,
environmental, and topographical factors; and
(ii) that contains, or may in the future
contain, 1 or more utility, communication, or
transportation facilities;
(B) a land use designation that is established--
(i) by law;
(ii) by Secretarial Order;
(iii) through the land use planning
process; or
(iv) by other management decision; and
(C) a designation made for the purpose of
establishing the preferred location of compatible
linear facilities and land uses.
(2) Specifications of corridor.--On designation of a
corridor under this section, the centerline, width, and
compatible uses of a corridor shall be specified.
SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS DRILLING BAN.
Congress encourages no Federal or State permit or lease to be
issued for new oil and gas slant, directional, or offshore drilling in
or under one or more of the Great Lakes.
SEC. 358. FEDERAL COALBED METHANE REGULATION.
Any State currently on the list of Affected States established
under section 1339(b) of the Energy Policy Act of 1992 (42 U.S.C.
13368(b)) shall be removed from the list if, not later than 3 years
after the date of enactment of this Act, the State takes, or prior to
the date of enactment has taken, any of the actions required for
removal from the list under such section 1339(b).
Subtitle D--Refining Revitalization
SEC. 371. SHORT TITLE.
This subtitle may be cited as the ``United States Refinery
Revitalization Act of 2005''.
SEC. 372. FINDINGS.
Congress finds the following:
(1) It serves the national interest to increase petroleum
refining capacity for gasoline, heating oil, diesel fuel, jet
fuel, kerosene, and petrochemical feedstocks wherever located
within the United States, to bring more supply to the markets
for use by the American people. Nearly 50 percent of the
petroleum in the United States is used for the production of
gasoline. Refined petroleum products have a significant impact
on interstate commerce.
(2) United States demand for refined petroleum products
currently exceeds the country's petroleum refining capacity to
produce such products. By 2025, United States gasoline
consumption is projected to rise from 8,900,000 barrels per day
to 12,900,000 barrels per day. Diesel fuel and home heating oil
are becoming larger components of an increasing demand for
refined petroleum supply. With the increase in air travel, jet
fuel consumption is projected to be 789,000 barrels per day
higher in 2025 than today.
(3) The petroleum refining industry is operating at 95
percent of capacity. The United States is currently importing 5
percent of its refined petroleum products and because of the
stringent United States gasoline and diesel fuel
specifications, few foreign refiners can produce the clean
fuels required in the United States and the number of foreign
suppliers that can produce United States quality gasoline is
decreasing.
(4) Refiners are subject to significant environmental and
other regulations and face several new Clean Air Act
requirements over the next decade. New Clean Air Act
requirements will benefit the environment but will also require
substantial capital investment and additional government
permits.
(5) No new refinery has been built in the United States
since 1976 and many smaller domestic refineries have become
idle since the removal of the Domestic Crude Oil Allocation
Program and because of regulatory uncertainty and generally low
returns on capital employed. Today, the United States has 149
refineries, down from 324 in 1981. Restoration of recently
idled refineries alone would amount to 483,570 barrels a day in
additional capacity, or approximately 3.3 percent of the total
operating capacity.
(6) Refiners have met growing demand by increasing the use
of existing equipment and increasing the efficiency and
capacity of existing plants. But refining capacity has begun to
lag behind peak summer demand.
(7) Heavy industry and manufacturing jobs have closed or
relocated due to barriers to investment, burdensome regulation,
and high costs of operation, among other reasons.
(8) Because the production and disruption in supply of
refined petroleum products has a significant impact on
interstate commerce, it serves the national interest to
increase the domestic refining operating capacity.
(9) More regulatory certainty for refinery owners is needed
to stimulate investment in increased refinery capacity and
required procedures for Federal, State, and local regulatory
approvals need to be streamlined to ensure that increased
refinery capacity can be developed and operated in a safe,
timely, and cost-effective manner.
(10) The proposed Yuma Arizona Refinery, a grassroots
refinery facility, which only recently received its Federal air
quality permit after 5 years under the current regulatory
process, and is just now beginning its environmental impact
statement and local permitting process, serves as an example of
the obstacles a refiner would have to overcome to reopen an
idle refinery.
SEC. 373. PURPOSE.
The purpose of this subtitle is to encourage the expansion of the
United States refining capacity by providing an accelerated review and
approval process of all regulatory approvals for certain idle
refineries and lending corresponding legal and technical assistance to
States with resources that may be inadequate to meet such permit review
demands.
SEC. 374. DESIGNATION OF REFINERY REVITALIZATION ZONES.
Not later than 90 days after the date of enactment of this Act, the
Secretary shall designate as a Refinery Revitalization Zone any area--
(1) that--
(A) has experienced mass layoffs at manufacturing
facilities, as determined by the Secretary of Labor; or
(B) contains an idle refinery; and
(2) that has an unemployment rate that exceeds the national
average by at least 10 percent of the national average, as set
by the Department of Labor, Bureau of Labor Statistics, at the
time of the designation as a Refinery Revitalization Zone.
SEC. 375. MEMORANDUM OF UNDERSTANDING.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary shall enter into a memorandum of
understanding with the Administrator for the purposes of this subtitle.
The Secretary and the Administrator shall each designate a senior
official responsible for, and dedicate sufficient other staff and
resources to ensure, full implementation of the purposes of this
subtitle and any regulations enacted pursuant to this subtitle.
(b) Additional Signatories.--The Governor of any State, and the
appropriate representative of any Indian Tribe, with jurisdiction over
a Refinery Revitalization Zone, as designated by the Secretary pursuant
to section 374, may be signatories to the memorandum of understanding
under this section.
SEC. 376. STATE ENVIRONMENTAL PERMITTING ASSISTANCE.
Not later than 30 days after a Revitalization Program Qualifying
State becomes a signatory to the memorandum of understanding under
section 375(b)--
(1) the Secretary shall designate one or more employees of
the Department with expertise relating to the siting and
operation of refineries to provide legal and technical
assistance to that Revitalization Program Qualifying State; and
(2) the Administrator shall designate, to provide legal and
technical assistance for that Revitalization Program Qualifying
State, one or more employees of the Environmental Protection
Agency with expertise on regulatory issues, relating to the
siting and operation of refineries, with respect to each of--
(A) the Clean Air Act (42 U.S.C. 7401 et seq.);
(B) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
(C) the Safe Drinking Water Act (42 U.S.C. 300f et
seq.);
(D) the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601
et seq.);
(E) the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.);
(F) the Toxic Substances Control Act (15 U.S.C.
2601 et seq.);
(G) the National Historic Preservation Act (16
U.S.C. 470 et seq.); and
(H) the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).
SEC. 377. COORDINATION AND EXPEDITIOUS REVIEW OF PERMITTING PROCESS.
(a) Department of Energy as Lead Agency.--Upon written request of a
prospective applicant for Federal authorization for a refinery facility
in a Refinery Revitalization Zone, the Department shall act as the lead
Federal agency for the purposes of coordinating all applicable Federal
authorizations and environmental reviews of the refining facility. To
the maximum extent practicable under applicable Federal law, the
Secretary shall coordinate this Federal authorization and review
process with any Indian Tribes and State and local agencies responsible
for conducting any separate permitting and environmental reviews of the
refining facility.
(b) Schedule.--
(1) In general.--The Secretary, in coordination with the
agencies with authority over Federal authorizations and, as
appropriate, with Indian Tribes and State and local agencies
that are willing to coordinate their separate permitting and
environmental reviews with the Federal authorizations and
environmental reviews, shall establish a schedule with prompt
and binding intermediate and ultimate deadlines for the review
of, and Federal authorization decisions relating to, refinery
facility siting and operation.
(2) Preapplication process.--Prior to establishing the
schedule, the Secretary shall provide an expeditious
preapplication mechanism for applicants to confer with the
agencies involved and to have each agency communicate to the
prospective applicant within 60 days concerning--
(A) the likelihood of approval for a potential
refinery facility; and
(B) key issues of concern to the agencies and local
community.
(3) Schedule.--The Secretary shall consider the
preapplication findings under paragraph (2) in setting the
schedule and shall ensure that once an application has been
submitted with such information as the Secretary considers
necessary, all permit decisions and related environmental
reviews under all applicable Federal laws shall be completed
within 6 months or, where circumstances require otherwise, as
soon as thereafter practicable.
(c) Consolidated Environmental Review.--
(1) Lead agency.--In carrying out its role as the lead
Federal agency for environmental review, the Department shall
coordinate all applicable Federal actions for complying with
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) and shall be responsible for preparing any
environmental impact statement required by section 102(2)(C) of
that Act (42 U.S.C. 4332(2)(C)) or such other form of
environmental review as is required.
(2) Consolidation of statements.--In carrying out paragraph
(1), if the Department determines an environmental impact
statement is required, the Department shall prepare a single
environmental impact statement, which shall consolidate the
environmental reviews of all Federal agencies considering any
aspect of the project covered by the environmental impact
statement.
(d) Other Agencies.--Each Federal agency considering an aspect of
the siting or operation of a refinery facility in a Refinery
Revitalization Zone shall cooperate with the Department and comply with
the deadlines established by the Department in the preparation of any
environmental impact statement or such other form of review as is
required.
(e) Exclusive Record.--The Department shall, with the cooperation
of Federal and State administrative agencies and officials, maintain a
complete consolidated record of all decisions made or actions taken by
the Department or by a Federal administrative agency or officer (or
State administrative agency or officer acting under delegated Federal
authority) with respect to the siting or operation of a refinery
facility in a Refinery Revitalization Zone. Such record shall be the
exclusive record for any Federal administrative proceeding that is an
appeal or review of any such decision made or action taken.
(f) Appeals.--In the event any agency has denied a Federal
authorization required for a refinery facility in a Refinery
Revitalization Zone, or has failed to act by a deadline established by
the Secretary pursuant to subsection (b) for deciding whether to issue
the Federal authorization, the applicant or any State in which the
refinery facility would be located may file an appeal with the
Secretary. Based on the record maintained under subsection (e), and in
consultation with the affected agency, the Secretary may then either
issue the necessary Federal authorization with appropriate conditions,
or deny the appeal. The Secretary shall issue a decision within 60 days
after the filing of the appeal. In making a decision under this
subsection, the Secretary shall comply with applicable requirements of
Federal law, including each of the laws referred to in section
376(2)(A) through (H). Any judicial appeal of the Secretary's decision
shall be to the United States Court of Appeals for the District of
Columbia.
(g) Conforming Regulations.--Not later than 6 months after the date
of enactment of this Act, the Secretary shall issue any regulations
necessary to implement this subtitle.
SEC. 378. COMPLIANCE WITH ALL ENVIRONMENTAL REGULATIONS REQUIRED.
Nothing in this subtitle shall be construed to waive the
applicability of environmental laws and regulations to any refinery
facility.
SEC. 379. DEFINITIONS.
For the purposes of this subtitle, the term--
(1) ``Administrator'' means the Administrator of the
Environmental Protection Agency;
(2) ``Department'' means the Department of Energy;
(3) ``Federal authorization'' means any authorization
required under Federal law (including the Clean Air Act, the
Federal Water Pollution Control Act, the Safe Drinking Water
Act, the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, the Solid Waste Disposal Act, the
Toxic Substances Control Act, the National Historic
Preservation Act, and the National Environmental Policy Act of
1969) in order to site, construct, upgrade, or operate a
refinery facility within a Refinery Revitalization Zone,
including such permits, special use authorizations,
certifications, opinions, or other approvals as may be
required, whether issued by a Federal, State, or local agency;
(4) ``idle refinery'' means any real property site that has
been used at any time for a refinery facility since December
31, 1979, that has not been in operation after April 1, 2005;
(5) ``refinery facility'' means any facility designed and
operated to receive, unload, store, process and refine raw
crude oil by any chemical or physical process, including
distillation, fluid catalytic cracking, hydrocracking, coking,
alkylation, etherification, polymerization, catalytic
reforming, isomerization, hydrotreating, blending, and any
combination thereof;
(6) ``Revitalization Program Qualifying State'' means a
State or Indian Tribe that--
(A) has entered into the memorandum of
understanding pursuant to section 375(b); and
(B) has established a refining infrastructure
coordination office that the Secretary finds will
facilitate Federal-State cooperation for the purposes
of this subtitle; and
(7) ``Secretary'' means the Secretary of Energy.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
(a) Clean Coal Power Initiative.--There are authorized to be
appropriated to the Secretary of Energy (referred to in this title as
the ``Secretary'') to carry out the activities authorized by this
subtitle $200,000,000 for each of fiscal years 2006 through 2014, to
remain available until expended.
(b) Report.--The Secretary shall submit to Congress the report
required by this subsection not later than March 31, 2007. The report
shall include, with respect to subsection (a), a 10-year plan
containing--
(1) a detailed assessment of whether the aggregate funding
levels provided under subsection (a) are the appropriate
funding levels for that program;
(2) a detailed description of how proposals will be
solicited and evaluated, including a list of all activities
expected to be undertaken;
(3) a detailed list of technical milestones for each coal
and related technology that will be pursued; and
(4) a detailed description of how the program will avoid
problems enumerated in General Accounting Office reports on the
Clean Coal Technology Program, including problems that have
resulted in unspent funds and projects that failed either
financially or scientifically.
SEC. 402. PROJECT CRITERIA.
(a) In General.--The Secretary shall not provide funding under this
subtitle for any project that does not advance efficiency,
environmental performance, and cost competitiveness well beyond the
level of technologies that are in commercial service or have been
demonstrated on a scale that the Secretary determines is sufficient to
demonstrate that commercial service is viable as of the date of
enactment of this Act.
(b) Technical Criteria for Clean Coal Power Initiative.--
(1) Gasification projects.--
(A) In general.--In allocating the funds made
available under section 401(a), the Secretary shall
ensure that at least 60 percent of the funds are used
only for projects on coal-based gasification
technologies, including gasification combined cycle,
gasification fuel cells, gasification coproduction, and
hybrid gasification/combustion.
(B) Technical milestones.--The Secretary shall
periodically set technical milestones specifying the
emission and thermal efficiency levels that coal
gasification projects under this subtitle shall be
designed, and reasonably expected, to achieve. The
technical milestones shall become more restrictive
during the life of the program. The Secretary shall set
the periodic milestones so as to achieve by 2020 coal
gasification projects able--
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit not more than .05 lbs of
NO<INF>x</INF> per million Btu;
(iii) to achieve substantial reductions in
mercury emissions; and
(iv) to achieve a thermal efficiency of--
(I) 60 percent for coal of more
than 9,000 Btu;
(II) 59 percent for coal of 7,000
to 9,000 Btu; and
(III) 50 percent for coal of less
than 7,000 Btu.
(2) Other projects.--The Secretary shall periodically set
technical milestones and ensure that up to 40 percent of the
funds appropriated pursuant to section 401(a) are used for
projects not described in paragraph (1). The milestones shall
specify the emission and thermal efficiency levels that
projects funded under this paragraph shall be designed to and
reasonably expected to achieve. The technical milestones shall
become more restrictive during the life of the program. The
Secretary shall set the periodic milestones so as to achieve by
2010 projects able--
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NO<INF>x</INF>
per million Btu;
(C) to achieve substantial reductions in mercury
emissions; and
(D) to achieve a thermal efficiency of--
(i) 45 percent for coal of more than 9,000
Btu;
(ii) 44 percent for coal of 7,000 to 9,000
Btu; and
(iii) 40 percent for coal of less than
7,000 Btu.
(3) Consultation.--Before setting the technical milestones
under paragraphs (1)(B) and (2), the Secretary shall consult
with the Administrator of the Environmental Protection Agency
and interested entities, including coal producers, industries
using coal, organizations to promote coal or advanced coal
technologies, environmental organizations, and organizations
representing workers.
(4) Existing units.--In the case of projects at units in
existence on the date of enactment of this Act, in lieu of the
thermal efficiency requirements set forth in paragraphs
(1)(B)(iv) and (2)(D), the milestones shall be designed to
achieve an overall thermal design efficiency improvement,
compared to the efficiency of the unit as operated, of not less
than--
(A) 7 percent for coal of more than 9,000 Btu;
(B) 6 percent for coal of 7,000 to 9,000 Btu; or
(C) 4 percent for coal of less than 7,000 Btu.
(5) Permitted uses.--In carrying out this subtitle, the
Secretary may fund projects that include, as part of the
project, the separation and capture of carbon dioxide. The
thermal efficiency goals of paragraphs (1), (2), and (4) shall
not apply for projects that separate and capture at least 50
percent of the facility's potential emissions of carbon
dioxide.
(c) Financial Criteria.--The Secretary shall not provide a funding
award under this subtitle unless the recipient documents to the
satisfaction of the Secretary that--
(1) the award recipient is financially viable without the
receipt of additional Federal funding;
(2) the recipient will provide sufficient information to
the Secretary to enable the Secretary to ensure that the award
funds are spent efficiently and effectively; and
(3) a market exists for the technology being demonstrated
or applied, as evidenced by statements of interest in writing
from potential purchasers of the technology.
(d) Financial Assistance.--The Secretary shall provide financial
assistance to projects that meet the requirements of subsections (a),
(b), and (c) and are likely to--
(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy;
(2) improve the competitiveness of coal among various forms
of energy in order to maintain a diversity of fuel choices in
the United States to meet electricity generation requirements;
and
(3) demonstrate methods and equipment that are applicable
to 25 percent of the electricity generating facilities, using
various types of coal, that use coal as the primary feedstock
as of the date of enactment of this Act.
(e) Federal Share.--The Federal share of the cost of a coal or
related technology project funded by the Secretary under this subtitle
shall not exceed 50 percent.
(f) Applicability.--No technology, or level of emission reduction,
shall be treated as adequately demonstrated for purposes of section 111
of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of
section 169 of that Act (42 U.S.C. 7479), or achievable in practice for
purposes of section 171 of that Act (42 U.S.C. 7501) solely by reason
of the use of such technology, or the achievement of such emission
reduction, by 1 or more facilities receiving assistance under this
subtitle.
SEC. 403. REPORT.
Not later than 1 year after the date of enactment of this Act, and
once every 2 years thereafter through 2014, the Secretary, in
consultation with other appropriate Federal agencies, shall submit to
Congress a report describing--
(1) the technical milestones set forth in section 402 and
how those milestones ensure progress toward meeting the
requirements of subsections (b)(1)(B) and (b)(2) of section
402; and
(2) the status of projects funded under this subtitle.
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 401, the Secretary
shall award competitive, merit-based grants to universities for the
establishment of Centers of Excellence for Energy Systems of the
Future. The Secretary shall provide grants to universities that show
the greatest potential for advancing new clean coal technologies.
Subtitle B--Clean Power Projects
SEC. 411. COAL TECHNOLOGY LOAN.
There are authorized to be appropriated to the Secretary
$125,000,000 to provide a loan to the owner of the experimental plant
constructed under United States Department of Energy cooperative
agreement number DE-FC-22-91PC90544 on such terms and conditions as the
Secretary determines, including interest rates and upfront payments.
SEC. 412. COAL GASIFICATION.
The Secretary is authorized to provide loan guarantees for a
project to produce energy from a plant using integrated gasification
combined cycle technology of at least 400 megawatts in capacity that
produces power at competitive rates in deregulated energy generation
markets and that does not receive any subsidy (direct or indirect) from
ratepayers.
SEC. 414. PETROLEUM COKE GASIFICATION.
The Secretary is authorized to provide loan guarantees for at least
5 petroleum coke gasification projects.
SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.
The Secretary shall use $5,000,000 from amounts appropriated to
initiate, through the Chicago Operations Office, a project to
demonstrate the viability of high-energy electron scrubbing technology
on commercial-scale electrical generation using high-sulfur coal.
Subtitle D--Coal and Related Programs
SEC. 441. CLEAN AIR COAL PROGRAM.
(a) Amendment.--The Energy Policy Act of 1992 is amended by adding
the following new title at the end thereof:
``TITLE XXXI--CLEAN AIR COAL PROGRAM
``SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS.
``(a) Findings.--The Congress finds that--
``(1) new environmental regulations present additional
challenges for coal-fired electrical generation in the private
marketplace; and
``(2) the Department of Energy, in cooperation with
industry, has already fully developed and commercialized
several new clean-coal technologies that will allow the clean
use of coal.
``(b) Purposes.--The purposes of this title are to--
``(1) promote national energy policy and energy security,
diversity, and economic competitiveness benefits that result
from the increased use of coal;
``(2) mitigate financial risks, reduce the cost, and
increase the marketplace acceptance of the new clean coal
technologies; and
``(3) advance the deployment of pollution control equipment
to meet the current and future obligations of coal-fired
generation units regulated under the Clean Air Act (42 U.S.C.
7402 and following).
``SEC. 3102. AUTHORIZATION OF PROGRAM.
``The Secretary shall carry out a program to facilitate production
and generation of coal-based power and the installation of pollution
control equipment.
``SEC. 3103. AUTHORIZATION OF APPROPRIATIONS.
``(a) Pollution Control Projects.--There are authorized to be
appropriated to the Secretary $300,000,000 for fiscal year 2006,
$100,000,000 for fiscal year 2007, $40,000,000 for fiscal year 2008,
$30,000,000 for fiscal year 2009, and $30,000,000 for fiscal year 2010,
to remain available until expended, for carrying out the program for
pollution control projects, which may include--
``(1) pollution control equipment and processes for the
control of mercury air emissions;
``(2) pollution control equipment and processes for the
control of nitrogen dioxide air emissions or sulfur dioxide
emissions;
``(3) pollution control equipment and processes for the
mitigation or collection of more than one pollutant;
``(4) advanced combustion technology for the control of at
least two pollutants, including mercury, particulate matter,
nitrogen oxides, and sulfur dioxide, which may also be designed
to improve the energy efficiency of the unit; and
``(5) advanced pollution control equipment and processes
designed to allow use of the waste byproducts or other
byproducts of the equipment or an electrical generation unit
designed to allow the use of byproducts.
Funds appropriated under this subsection which are not awarded before
fiscal year 2012 may be applied to projects under subsection (b), in
addition to amounts authorized under subsection (b).
``(b) Generation Projects.--There are authorized to be appropriated
to the Secretary $250,000,000 for fiscal year 2007, $350,000,000 for
fiscal year 2008, $400,000,000 for fiscal year 2009, $400,000,000 for
fiscal year 2010, $400,000,000 for fiscal year 2011, $400,000,000 for
fiscal year 2012, and $300,000,000 for fiscal year 2013, to remain
available until expended, for generation projects and air pollution
control projects. Such projects may include--
``(1) coal-based electrical generation equipment and
processes, including gasification combined cycle or other coal-
based generation equipment and processes;
``(2) associated environmental control equipment, that will
be cost-effective and that is designed to meet anticipated
regulatory requirements;
``(3) coal-based electrical generation equipment and
processes, including gasification fuel cells, gasification
coproduction, and hybrid gasification/combustion projects; and
``(4) advanced coal-based electrical generation equipment
and processes, including oxidation combustion techniques,
ultra-supercritical boilers, and chemical looping, which the
Secretary determines will be cost-effective and could
substantially contribute to meeting anticipated environmental
or energy needs.
``(c) Limitation.--Funds placed at risk during any fiscal year for
Federal loans or loan guarantees pursuant to this title may not exceed
30 percent of the total funds obligated under this title.
``SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA.
``The Secretary shall pursuant to authorizations contained in
section 3103 provide funding for air pollution control projects
designed to facilitate compliance with Federal and State environmental
regulations, including any regulation that may be established with
respect to mercury.
``SEC. 3105. CRITERIA FOR GENERATION PROJECTS.
``(a) Criteria.--The Secretary shall establish criteria on which
selection of individual projects described in section 3103(b) should be
based. The Secretary may modify the criteria as appropriate to reflect
improvements in equipment, except that the criteria shall not be
modified to be less stringent. These selection criteria shall include--
``(1) prioritization of projects whose installation is
likely to result in significant air quality improvements in
nonattainment air quality areas;
``(2) prioritization of projects that result in the
repowering or replacement of older, less efficient units;
``(3) documented broad interest in the procurement of the
equipment and utilization of the processes used in the projects
by electrical generator owners or operators;
``(4) equipment and processes beginning in 2006 through
2011 that are projected to achieve an thermal efficiency of--
``(A) 40 percent for coal of more than 9,000 Btu
per pound based on higher heating values;
``(B) 38 percent for coal of 7,000 to 9,000 Btu per
pound based on higher heating values; and
``(C) 36 percent for coal of less than 7,000 Btu
per pound based on higher heating values,
except that energy used for coproduction or cogeneration shall
not be counted in calculating the thermal efficiency under this
paragraph; and
``(5) equipment and processes beginning in 2012 and 2013
that are projected to achieve an thermal efficiency of--
``(A) 45 percent for coal of more than 9,000 Btu
per pound based on higher heating values;
``(B) 44 percent for coal of 7,000 to 9,000 Btu per
pound based on higher heating values; and
``(C) 40 percent for coal of less than 7,000 Btu
per pound based on higher heating values,
except that energy used for coproduction or cogeneration shall
not be counted in calculating the thermal efficiency under this
paragraph.
``(b) Selection.--(1) In selecting the projects, up to 25 percent
of the projects selected may be either coproduction or cogeneration or
other gasification projects, but at least 25 percent of the projects
shall be for the sole purpose of electrical generation, and priority
should be given to equipment and projects less than 600 MW to foster
and promote standard designs.
``(2) The Secretary shall give priority to projects that have been
developed and demonstrated that are not yet cost competitive, and for
coal energy generation projects that advance efficiency, environmental
performance, or cost competitiveness significantly beyond the level of
pollution control equipment that is in operation on a full scale.
``SEC. 3106. FINANCIAL CRITERIA.
``(a) In General.--The Secretary shall only provide financial
assistance to projects that meet the requirements of sections 3103 and
3104 and are likely to--
``(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy; and
``(2) improve the competitiveness of coal in order to
maintain a diversity of domestic fuel choices in the United
States to meet electricity generation requirements.
``(b) Conditions.--The Secretary shall not provide a funding award
under this title unless--
``(1) the award recipient is financially viable without the
receipt of additional Federal funding; and
``(2) the recipient provides sufficient information to the
Secretary for the Secretary to ensure that the award funds are
spent efficiently and effectively.
``(c) Equal Access.--The Secretary shall, to the extent practical,
utilize cooperative agreement, loan guarantee, and direct Federal loan
mechanisms designed to ensure that all electrical generation owners
have equal access to these technology deployment incentives. The
Secretary shall develop and direct a competitive solicitation process
for the selection of technologies and projects under this title.
``SEC. 3107. FEDERAL SHARE.
``The Federal share of the cost of a coal or related technology
project funded by the Secretary under this title shall not exceed 50
percent. For purposes of this title, Federal funding includes only
appropriated funds.
``SEC. 3108. APPLICABILITY.
``No technology, or level of emission reduction, shall be treated
as adequately demonstrated for purposes of section 111 of the Clean Air
Act (42 U.S.C. 7411), achievable for purposes of section 169 of the
Clean Air Act (42 U.S.C. 7479), or achievable in practice for purposes
of section 171 of the Clean Air Act (42 U.S.C. 7501) solely by reason
of the use of such technology, or the achievement of such emission
reduction, by one or more facilities receiving assistance under this
title.''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Policy Act of 1992 is amended by adding at the end the
following:
``TITLE XXXI--CLEAN AIR COAL PROGRAM
``Sec. 3101. Findings; purposes; definitions.
``Sec. 3102. Authorization of program.
``Sec. 3103. Authorization of appropriations.
``Sec. 3104. Air pollution control project criteria.
``Sec. 3105. Criteria for generation projects.
``Sec. 3106. Financial criteria.
``Sec. 3107. Federal share.
``Sec. 3108. Applicability.''.
TITLE V--INDIAN ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Indian Tribal Energy Development
and Self-Determination Act of 2005''.
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
(a) In General.--Title II of the Department of Energy Organization
Act (42 U.S.C. 7131 et seq.) is amended by adding at the end the
following:
``office of indian energy policy and programs
``Sec. 217. (a) Establishment.--There is established within the
Department an Office of Indian Energy Policy and Programs (referred to
in this section as the `Office'). The Office shall be headed by a
Director, who shall be appointed by the Secretary and compensated at a
rate equal to that of level IV of the Executive Schedule under section
5315 of title 5, United States Code.
``(b) Duties of Director.--The Director, in accordance with Federal
policies promoting Indian self-determination and the purposes of this
Act, shall provide, direct, foster, coordinate, and implement energy
planning, education, management, conservation, and delivery programs of
the Department that--
``(1) promote Indian tribal energy development, efficiency,
and use;
``(2) reduce or stabilize energy costs;
``(3) enhance and strengthen Indian tribal energy and
economic infrastructure relating to natural resource
development and electrification; and
``(4) bring electrical power and service to Indian land and
the homes of tribal members located on Indian lands or
acquired, constructed, or improved (in whole or in part) with
Federal funds.''.
(b) Conforming Amendments.--
(1) The table of contents of the Department of Energy
Organization Act (42 U.S.C. prec. 7101) is amended--
(A) in the item relating to section 209, by
striking ``Section'' and inserting ``Sec.''; and
(B) by striking the items relating to sections 213
through 216 and inserting the following:
``Sec. 213. Establishment of policy for National Nuclear Security
Administration.
``Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.
(2) Section 5315 of title 5, United States Code, is amended
by inserting ``Director, Office of Indian Energy Policy and
Programs, Department of Energy.'' after ``Inspector General,
Department of Energy.''.
SEC. 503. INDIAN ENERGY.
(a) In General.--Title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et seq.) is amended to read as follows:
``TITLE XXVI--INDIAN ENERGY
``SEC. 2601. DEFINITIONS.
``For purposes of this title:
``(1) The term `Director' means the Director of the Office
of Indian Energy Policy and Programs, Department of Energy.
``(2) The term `Indian land' means--
``(A) any land located within the boundaries of an
Indian reservation, pueblo, or rancheria;
``(B) any land not located within the boundaries of
an Indian reservation, pueblo, or rancheria, the title
to which is held--
``(i) in trust by the United States for the
benefit of an Indian tribe or an individual
Indian;
``(ii) by an Indian tribe or an individual
Indian, subject to restriction against
alienation under laws of the United States; or
``(iii) by a dependent Indian community;
and
``(C) land that is owned by an Indian tribe and was
conveyed by the United States to a Native Corporation
pursuant to the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.), or that was conveyed by the
United States to a Native Corporation in exchange for
such land.
``(3) The term `Indian reservation' includes--
``(A) an Indian reservation in existence in any
State or States as of the date of enactment of this
paragraph;
``(B) a public domain Indian allotment; and
``(C) a dependent Indian community located within
the borders of the United States, regardless of whether
the community is located--
``(i) on original or acquired territory of
the community; or
``(ii) within or outside the boundaries of
any particular State.
``(4) The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b), except that the term
`Indian tribe', for the purpose of paragraph (11) and sections
2603(b)(3) and 2604, shall not include any Native Corporation.
``(5) The term `integration of energy resources' means any
project or activity that promotes the location and operation of
a facility (including any pipeline, gathering system,
transportation system or facility, or electric transmission or
distribution facility) on or near Indian land to process,
refine, generate electricity from, or otherwise develop energy
resources on, Indian land.
``(6) The term `Native Corporation' has the meaning given
the term in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602).
``(7) The term `organization' means a partnership, joint
venture, limited liability company, or other unincorporated
association or entity that is established to develop Indian
energy resources.
``(8) The term `Program' means the Indian energy resource
development program established under section 2602(a).
``(9) The term `Secretary' means the Secretary of the
Interior.
``(10) The term `tribal energy resource development
organization' means an organization of 2 or more entities, at
least 1 of which is an Indian tribe, that has the written
consent of the governing bodies of all Indian tribes
participating in the organization to apply for a grant, loan,
or other assistance authorized by section 2602.
``(11) The term `tribal land' means any land or interests
in land owned by any Indian tribe, title to which is held in
trust by the United States or which is subject to a restriction
against alienation under laws of the United States.
``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.
``(a) Department of the Interior Program.--
``(1) To assist Indian tribes in the development of energy
resources and further the goal of Indian self-determination,
the Secretary shall establish and implement an Indian energy
resource development program to assist consenting Indian tribes
and tribal energy resource development organizations in
achieving the purposes of this title.
``(2) In carrying out the Program, the Secretary shall--
``(A) provide development grants to Indian tribes
and tribal energy resource development organizations
for use in developing or obtaining the managerial and
technical capacity needed to develop energy resources
on Indian land, and to properly account for resulting
energy production and revenues;
``(B) provide grants to Indian tribes and tribal
energy resource development organizations for use in
carrying out projects to promote the integration of
energy resources, and to process, use, or develop those
energy resources, on Indian land; and
``(C) provide low-interest loans to Indian tribes
and tribal energy resource development organizations
for use in the promotion of energy resource development
on Indian land and integration of energy resources.
``(3) There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of fiscal
years 2006 through 2016.
``(b) Department of Energy Indian Energy Education Planning and
Management Assistance Program.--
``(1) The Director shall establish programs to assist
consenting Indian tribes in meeting energy education, research
and development, planning, and management needs.
``(2) In carrying out this subsection, the Director may
provide grants, on a competitive basis, to an Indian tribe or
tribal energy resource development organization for use in
carrying out--
``(A) energy, energy efficiency, and energy
conservation programs;
``(B) studies and other activities supporting
tribal acquisitions of energy supplies, services, and
facilities;
``(C) planning, construction, development,
operation, maintenance, and improvement of tribal
electrical generation, transmission, and distribution
facilities located on Indian land; and
``(D) development, construction, and
interconnection of electric power transmission
facilities located on Indian land with other electric
transmission facilities.
``(3)(A) The Director may develop, in consultation with
Indian tribes, a formula for providing grants under this
subsection.
``(B) In providing a grant under this subsection, the
Director shall give priority to an application received from an
Indian tribe with inadequate electric service (as determined by
the Director).
``(4) The Secretary of Energy may issue such regulations as
necessary to carry out this subsection.
``(5) There are authorized to be appropriated to carry out
this subsection $20,000,000 for each of fiscal years 2006
through 2016.
``(c) Department of Energy Loan Guarantee Program.--
``(1) Subject to paragraph (3), the Secretary of Energy may
provide loan guarantees (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for not more
than 90 percent of the unpaid principal and interest due on any
loan made to any Indian tribe for energy development.
``(2) A loan guarantee under this subsection shall be made
by--
``(A) a financial institution subject to
examination by the Secretary of Energy; or
``(B) an Indian tribe, from funds of the Indian
tribe.
``(3) The aggregate outstanding amount guaranteed by the
Secretary of Energy at any time under this subsection shall not
exceed $2,000,000,000.
``(4) The Secretary of Energy may issue such regulations as
the Secretary of Energy determines are necessary to carry out
this subsection.
``(5) There are authorized to be appropriated such sums as
are necessary to carry out this subsection, to remain available
until expended.
``(6) Not later than 1 year from the date of enactment of
this section, the Secretary of Energy shall report to Congress
on the financing requirements of Indian tribes for energy
development on Indian land.
``(d) Federal Agencies-Indian Energy Preference.--
``(1) In purchasing electricity or any other energy product
or byproduct, a Federal agency or department may give
preference to an energy and resource production enterprise,
partnership, consortium, corporation, or other type of business
organization the majority of the interest in which is owned and
controlled by 1 or more Indian tribes.
``(2) In carrying out this subsection, a Federal agency or
department shall not--
``(A) pay more than the prevailing market price for
an energy product or byproduct; or
``(B) obtain less than prevailing market terms and
conditions.
``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.
``(a) Grants.--The Secretary may provide to Indian tribes, on an
annual basis, grants for use in accordance with subsection (b).
``(b) Use of Funds.--Funds from a grant provided under this section
may be used--
``(1) by an Indian tribe for the development of a tribal
energy resource inventory or tribal energy resource on Indian
land;
``(2) by an Indian tribe for the development of a
feasibility study or other report necessary to the development
of energy resources on Indian land;
``(3) by an Indian tribe (other than an Indian Tribe in
Alaska except the Metlakatla Indian Community) for the
development and enforcement of tribal laws (including
regulations) relating to tribal energy resource development and
the development of technical infrastructure to protect the
environment under applicable law; or
``(4) by a Native Corporation for the development and
implementation of corporate policies and the development of
technical infrastructure to protect the environment under
applicable law; and
``(5) by an Indian tribe for the training of employees
that--
``(A) are engaged in the development of energy
resources on Indian land; or
``(B) are responsible for protecting the
environment.
``(c) Other Assistance.--In carrying out the obligations of the
United States under this title, the Secretary shall ensure, to the
maximum extent practicable and to the extent of available resources,
that upon the request of an Indian tribe, the Indian tribe shall have
available scientific and technical information and expertise, for use
in the Indian tribe's regulation, development, and management of energy
resources on Indian land. The Secretary may fulfill this responsibility
either directly, through the use of Federal officials, or indirectly,
by providing financial assistance to the Indian tribe to secure
independent assistance.
``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING
ENERGY DEVELOPMENT OR TRANSMISSION.
``(a) Leases and Business Agreements.--Subject to the provisions of
this section--
``(1) an Indian tribe may, at its discretion, enter into a
lease or business agreement for the purpose of energy resource
development on tribal land, including a lease or business
agreement for--
``(A) exploration for, extraction of, processing
of, or other development of the Indian tribe's energy
mineral resources located on tribal land; and
``(B) construction or operation of an electric
generation, transmission, or distribution facility
located on tribal land or a facility to process or
refine energy resources developed on tribal land; and
``(2) such lease or business agreement described in
paragraph (1) shall not require the approval of the Secretary
under section 2103 of the Revised Statutes (25 U.S.C. 81) or
any other provision of law, if--
``(A) the lease or business agreement is executed
pursuant to a tribal energy resource agreement approved
by the Secretary under subsection (e);
``(B) the term of the lease or business agreement
does not exceed--
``(i) 30 years; or
``(ii) in the case of a lease for the
production of oil resources, gas resources, or
both, 10 years and as long thereafter as oil or
gas is produced in paying quantities; and
``(C) the Indian tribe has entered into a tribal
energy resource agreement with the Secretary, as
described in subsection (e), relating to the
development of energy resources on tribal land
(including the periodic review and evaluation of the
activities of the Indian tribe under the agreement, to
be conducted pursuant to the provisions required by
subsection (e)(2)(D)(i)).
``(b) Rights-of-Way for Pipelines or Electric Transmission or
Distribution Lines.--An Indian tribe may grant a right-of-way over
tribal land for a pipeline or an electric transmission or distribution
line without approval by the Secretary if--
``(1) the right-of-way is executed in accordance with a
tribal energy resource agreement approved by the Secretary
under subsection (e);
``(2) the term of the right-of-way does not exceed 30
years;
``(3) the pipeline or electric transmission or distribution
line serves--
``(A) an electric generation, transmission, or
distribution facility located on tribal land; or
``(B) a facility located on tribal land that
processes or refines energy resources developed on
tribal land; and
``(4) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy resources
on tribal land (including the periodic review and evaluation of
the Indian tribe's activities under such agreement described in
subparagraphs (D) and (E) of subsection (e)(2)).
``(c) Renewals.--A lease or business agreement entered into or a
right-of-way granted by an Indian tribe under this section may be
renewed at the discretion of the Indian tribe in accordance with this
section.
``(d) Validity.--No lease, business agreement, or right-of-way
relating to the development of tribal energy resources pursuant to the
provisions of this section shall be valid unless the lease, business
agreement, or right-of-way is authorized by the provisions of a tribal
energy resource agreement approved by the Secretary under subsection
(e)(2).
``(e) Tribal Energy Resource Agreements.--
``(1) On issuance of regulations under paragraph (8), an
Indian tribe may submit to the Secretary for approval a tribal
energy resource agreement governing leases, business
agreements, and rights-of-way under this section.
``(2)(A) Not later than 180 days after the date on which
the Secretary receives a tribal energy resource agreement
submitted by an Indian tribe under paragraph (1), or not later
than 60 days after the Secretary receives a revised tribal
energy resource agreement submitted by an Indian tribe under
paragraph (4)(C), (or such later date as may be agreed to by
the Secretary and the Indian tribe), the Secretary shall
approve or disapprove the tribal energy resource agreement.
``(B) The Secretary shall approve a tribal energy resource
agreement submitted under paragraph (1) if--
``(i) the Secretary determines that the Indian
tribe has demonstrated that the Indian tribe has
sufficient capacity to regulate the development of
energy resources of the Indian tribe;
``(ii) the tribal energy resource agreement
includes provisions required under subparagraph (D);
and
``(iii) the tribal energy resource agreement
includes provisions that, with respect to a lease,
business agreement, or right-of-way under this
section--
``(I) ensure the acquisition of necessary
information from the applicant for the lease,
business agreement, or right-of-way;
``(II) address the term of the lease or
business agreement or the term of conveyance of
the right-of-way;
``(III) address amendments and renewals;
``(IV) address the economic return to the
Indian tribe under leases, business agreements,
and rights-of-way;
``(V) address technical or other relevant
requirements;
``(VI) establish requirements for
environmental review in accordance with
subparagraph (C);
``(VII) ensure compliance with all
applicable environmental laws;
``(VIII) identify final approval authority;
``(IX) provide for public notification of
final approvals;
``(X) establish a process for consultation
with any affected States concerning off-
reservation impacts, if any, identified
pursuant to the provisions required under
subparagraph (C)(i);
``(XI) describe the remedies for breach of
the lease, business agreement, or right-of-way;
``(XII) require each lease, business
agreement, and right-of-way to include a
statement that, in the event that any of its
provisions violates an express term or
requirement set forth in the tribal energy
resource agreement pursuant to which it was
executed--
``(aa) such provision shall be null
and void; and
``(bb) if the Secretary determines
such provision to be material, the
Secretary shall have the authority to
suspend or rescind the lease, business
agreement, or right-of-way or take
other appropriate action that the
Secretary determines to be in the best
interest of the Indian tribe;
``(XIII) require each lease, business
agreement, and right-of-way to provide that it
will become effective on the date on which a
copy of the executed lease, business agreement,
or right-of-way is delivered to the Secretary
in accordance with regulations adopted pursuant
to this subsection; and
``(XIV) include citations to tribal laws,
regulations, or procedures, if any, that set
out tribal remedies that must be exhausted
before a petition may be submitted to the
Secretary pursuant to paragraph (7)(B).
``(C) Tribal energy resource agreements submitted under
paragraph (1) shall establish, and include provisions to ensure
compliance with, an environmental review process that, with
respect to a lease, business agreement, or right-of-way under
this section, provides for--
``(i) the identification and evaluation of all
significant environmental impacts (as compared with a
no-action alternative), including effects on cultural
resources;
``(ii) the identification of proposed mitigation;
``(iii) a process for ensuring that the public is
informed of and has an opportunity to comment on the
environmental impacts of the proposed action before
tribal approval of the lease, business agreement, or
right-of-way; and
``(iv) sufficient administrative support and
technical capability to carry out the environmental
review process.
``(D) A tribal energy resource agreement negotiated between
the Secretary and an Indian tribe in accordance with this
subsection shall include--
``(i) provisions requiring the Secretary to conduct
a periodic review and evaluation to monitor the
performance of the Indian tribe's activities associated
with the development of energy resources under the
tribal energy resource agreement; and
``(ii) when such review and evaluation result in a
finding by the Secretary of imminent jeopardy to a
physical trust asset arising from a violation of the
tribal energy resource agreement or applicable Federal
laws, provisions authorizing the Secretary to take
appropriate actions determined by the Secretary to be
necessary to protect such asset, which actions may
include reassumption of responsibility for activities
associated with the development of energy resources on
tribal land until the violation and conditions that
gave rise to such jeopardy have been corrected.
``(E) The periodic review and evaluation described in
subparagraph (D) shall be conducted on an annual basis, except
that, after the third such annual review and evaluation, the
Secretary and the Indian tribe may mutually agree to amend the
tribal energy resource agreement to authorize the review and
evaluation required by subparagraph (D) to be conducted once
every 2 years.
``(3) The Secretary shall provide notice and opportunity
for public comment on tribal energy resource agreements
submitted for approval under paragraph (1). The Secretary's
review of a tribal energy resource agreement under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall
be limited to the direct effects of that approval.
``(4) If the Secretary disapproves a tribal energy resource
agreement submitted by an Indian tribe under paragraph (1), the
Secretary shall, not later than 10 days after the date of
disapproval--
``(A) notify the Indian tribe in writing of the
basis for the disapproval;
``(B) identify what changes or other actions are
required to address the concerns of the Secretary; and
``(C) provide the Indian tribe with an opportunity
to revise and resubmit the tribal energy resource
agreement.
``(5) If an Indian tribe executes a lease or business
agreement or grants a right-of-way in accordance with a tribal
energy resource agreement approved under this subsection, the
Indian tribe shall, in accordance with the process and
requirements set forth in the Secretary's regulations adopted
pursuant to paragraph (8), provide to the Secretary--
``(A) a copy of the lease, business agreement, or
right-of-way document (including all amendments to and
renewals of the document); and
``(B) in the case of a tribal energy resource
agreement or a lease, business agreement, or right-of-
way that permits payments to be made directly to the
Indian tribe, information and documentation of those
payments sufficient to enable the Secretary to
discharge the trust responsibility of the United States
to enforce the terms of, and protect the Indian tribe's
rights under, the lease, business agreement, or right-
of-way.
``(6)(A) For purposes of the activities to be undertaken by
the Secretary pursuant to this section, the Secretary shall--
``(i) carry out such activities in a manner
consistent with the trust responsibility of the United
States relating to mineral and other trust resources;
and
``(ii) act in good faith and in the best interests
of the Indian tribes.
``(B) Subject to the provisions of subsections (a)(2), (b),
and (c) waiving the requirement of Secretarial approval of
leases, business agreements, and rights-of-way executed
pursuant to tribal energy resource agreements approved under
this section, and the provisions of subparagraph (D), nothing
in this section shall absolve the United States from any
responsibility to Indians or Indian tribes, including, but not
limited to, those which derive from the trust relationship or
from any treaties, statutes, and other laws of the United
States, Executive Orders, or agreements between the United
States and any Indian tribe.
``(C) The Secretary shall continue to have a trust
obligation to ensure that the rights and interests of an Indian
tribe are protected in the event that--
``(i) any other party to any such lease, business
agreement, or right-of-way violates any applicable
provision of Federal law or the terms of any lease,
business agreement, or right-of-way under this section;
or
``(ii) any provision in such lease, business
agreement, or right-of-way violates any express
provision or requirement set forth in the tribal energy
resource agreement pursuant to which the lease,
business agreement, or right-of-way was executed.
``(D) Notwithstanding subparagraph (B), the United States
shall not be liable to any party (including any Indian tribe)
for any of the negotiated terms of, or any losses resulting
from the negotiated terms of, a lease, business agreement, or
right-of-way executed pursuant to and in accordance with a
tribal energy resource agreement approved by the Secretary
under paragraph (2). For the purpose of this subparagraph, the
term `negotiated terms' means any terms or provisions that are
negotiated by an Indian tribe and any other party or parties to
a lease, business agreement, or right-of-way entered into
pursuant to an approved tribal energy resource agreement.
``(7)(A) In this paragraph, the term `interested party'
means any person or entity the interests of which have
sustained or will sustain a significant adverse environmental
impact as a result of the failure of an Indian tribe to comply
with a tribal energy resource agreement of the Indian tribe
approved by the Secretary under paragraph (2).
``(B) After exhaustion of tribal remedies, and in
accordance with the process and requirements set forth in
regulations adopted by the Secretary pursuant to paragraph (8),
an interested party may submit to the Secretary a petition to
review compliance of an Indian tribe with a tribal energy
resource agreement of the Indian tribe approved by the
Secretary under paragraph (2).
``(C)(i) Not later than 120 days after the date on which
the Secretary receives a petition under subparagraph (B), the
Secretary shall determine whether the Indian tribe is not in
compliance with the tribal energy resource agreement, as
alleged in the petition.
``(ii) The Secretary may adopt procedures under paragraph
(8) authorizing an extension of time, not to exceed 120 days,
for making the determination under clause (i) in any case in
which the Secretary determines that additional time is
necessary to evaluate the allegations of the petition.
``(iii) Subject to subparagraph (D), if the Secretary
determines that the Indian tribe is not in compliance with the
tribal energy resource agreement as alleged in the petition,
the Secretary shall take such action as is necessary to ensure
compliance with the provisions of the tribal energy resource
agreement, which action may include--
``(I) temporarily suspending some or all activities
under a lease, business agreement, or right-of-way
under this section until the Indian tribe or such
activities are in compliance with the provisions of the
approved tribal energy resource agreement; or
``(II) rescinding approval of all or part of the
tribal energy resource agreement, and if all of such
agreement is rescinded, reassuming the responsibility
for approval of any future leases, business agreements,
or rights-of-way described in subsections (a) and (b).
``(D) Prior to seeking to ensure compliance with the
provisions of the tribal energy resource agreement of an Indian
tribe under subparagraph (C)(iii), the Secretary shall--
``(i) make a written determination that describes
the manner in which the tribal energy resource
agreement has been violated;
``(ii) provide the Indian tribe with a written
notice of the violations together with the written
determination; and
``(iii) before taking any action described in
subparagraph (C)(iii) or seeking any other remedy,
provide the Indian tribe with a hearing and a
reasonable opportunity to attain compliance with the
tribal energy resource agreement.
``(E) An Indian tribe described in subparagraph (D) shall
retain all rights to appeal as provided in regulations issued
by the Secretary.
``(8) Not later than 1 year after the date of enactment of
the Indian Tribal Energy Development and Self-Determination Act
of 2005, the Secretary shall issue regulations that implement
the provisions of this subsection, including--
``(A) criteria to be used in determining the
capacity of an Indian tribe described in paragraph
(2)(B)(i), including the experience of the Indian tribe
in managing natural resources and financial and
administrative resources available for use by the
Indian tribe in implementing the approved tribal energy
resource agreement of the Indian tribe;
``(B) a process and requirements in accordance with
which an Indian tribe may--
``(i) voluntarily rescind a tribal energy
resource agreement approved by the Secretary
under this subsection; and
``(ii) return to the Secretary the
responsibility to approve any future leases,
business agreements, and rights-of-way
described in this subsection;
``(C) provisions setting forth the scope of, and
procedures for, the periodic review and evaluation
described in subparagraphs (D) and (E) of paragraph
(2), including provisions for review of transactions,
reports, site inspections, and any other review
activities the Secretary determines to be appropriate;
and
``(D) provisions defining final agency actions
after exhaustion of administrative appeals from
determinations of the Secretary under paragraph (7).
``(f) No Effect on Other Law.--Nothing in this section affects the
application of--
``(1) any Federal environment law;
``(2) the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1201 et seq.); or
``(3) except as otherwise provided in this title, the
Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.)
and the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary for each of
fiscal years 2006 through 2016 to implement the provisions of this
section and to make grants or provide other appropriate assistance to
Indian tribes to assist the Indian tribes in developing and
implementing tribal energy resource agreements in accordance with the
provisions of this section.
``SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW.
``(a) In General.--The Secretary shall conduct a review of all
activities being conducted under the Indian Mineral Development Act of
1982 (25 U.S.C. 2101 et seq.) as of that date.
``(b) Report.--Not later than 1 year after the date of enactment of
the Indian Tribal Energy Development and Self-Determination Act of
2005, the Secretary shall submit to Congress a report that includes--
``(1) the results of the review;
``(2) recommendations to ensure that Indian tribes have the
opportunity to develop Indian energy resources; and
``(3) an analysis of the barriers to the development of
energy resources on Indian land (including legal, fiscal,
market, and other barriers), along with recommendations for the
removal of those barriers.''.
(b) Conforming Amendments.--The table of contents for the Energy
Policy Act of 1992 is amended by striking the items relating to title
XXVI and inserting the following:
``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving
energy development or transmission.
``Sec. 2605. Indian mineral development review.''.
SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT.
The Dine Power Authority, an enterprise of the Navajo Nation, shall
be eligible to receive grants and other assistance as authorized by
section 217 of the Department of Energy Organization Act, as added by
section 502 of this title, and section 2602 of the Energy Policy Act of
1992, as amended by this title, for activities associated with the
development of a transmission line from the Four Corners Area to
southern Nevada, including related power generation opportunities.
SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.
(a) In General.--The Secretary of Housing and Urban Development
shall promote energy conservation in housing that is located on Indian
land and assisted with Federal resources through--
(1) the use of energy-efficient technologies and
innovations (including the procurement of energy-efficient
refrigerators and other appliances);
(2) the promotion of shared savings contracts; and
(3) the use and implementation of such other similar
technologies and innovations as the Secretary of Housing and
Urban Development considers to be appropriate.
(b) Amendment.--Section 202(2) of the Native American Housing and
Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by
inserting ``improvement to achieve greater energy efficiency,'' after
``planning,''.
SEC. 506. CONSULTATION WITH INDIAN TRIBES.
In carrying out this title and the amendments made by this title,
the Secretary of Energy and the Secretary shall, as appropriate and to
the maximum extent practicable, involve and consult with Indian tribes
in a manner that is consistent with the Federal trust and the
government-to-government relationships between Indian tribes and the
United States.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Price-Anderson Amendments Act
of 2005'' .
SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is
amended--
(1) in the subsection heading, by striking ``Licenses'' and
inserting ``Licensees''; and
(2) by striking ``December 31, 2003'' each place it appears
and inserting ``December 31, 2025''.
(b) Indemnification of Department of Energy Contractors.--Section
170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A))
is amended by striking ``December 31, 2006'' and inserting ``December
31, 2025''.
(c) Indemnification of Nonprofit Educational Institutions.--Section
170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended
by striking ``August 1, 2002'' each place it appears and inserting
``December 31, 2025''.
SEC. 603. MAXIMUM ASSESSMENT.
Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is
amended--
(1) in the second proviso of the third sentence of
subsection b.(1)--
(A) by striking ``$63,000,000'' and inserting
``$95,800,000''; and
(B) by striking ``$10,000,000 in any 1 year'' and
inserting ``$15,000,000 in any 1 year (subject to
adjustment for inflation under subsection t.)''; and
(2) in subsection t.(1)--
(A) by inserting ``total and annual'' after
``amount of the maximum'';
(B) by striking ``the date of the enactment of the
Price-Anderson Amendments Act of 1988'' and inserting
``August 20, 2003''; and
(C) in subparagraph (A), by striking ``such date of
enactment'' and inserting ``August 20, 2003''.
SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) Indemnification of Department of Energy Contractors.--Section
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended
by striking paragraph (2) and inserting the following:
``(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary--
``(A) may require the contractor to provide and maintain
financial protection of such a type and in such amounts as the
Secretary shall determine to be appropriate to cover public
liability arising out of or in connection with the contractual
activity; and
``(B) shall indemnify the persons indemnified against such
liability above the amount of the financial protection
required, in the amount of $10,000,000,000 (subject to
adjustment for inflation under subsection t.), in the
aggregate, for all persons indemnified in connection with the
contract and for each nuclear incident, including such legal
costs of the contractor as are approved by the Secretary.''.
(b) Contract Amendments.--Section 170 d. of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph
(3) and inserting the following--
``(3) All agreements of indemnification under which the Department
of Energy (or its predecessor agencies) may be required to indemnify
any person under this section shall be deemed to be amended, on the
date of enactment of the Price-Anderson Amendments Act of 2005, to
reflect the amount of indemnity for public liability and any applicable
financial protection required of the contractor under this
subsection.''.
(c) Liability Limit.--Section 170 e.(1)(B) of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
(1) by striking ``the maximum amount of financial
protection required under subsection b. or''; and
(2) by striking ``paragraph (3) of subsection d., whichever
amount is more'' and inserting ``paragraph (2) of subsection
d.''.
SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.
(a) Amount of Indemnification.--Section 170 d.(5) of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking
``$100,000,000'' and inserting ``$500,000,000''.
(b) Liability Limit.--Section 170 e.(4) of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)(4)) is amended by striking ``$100,000,000'' and
inserting ``$500,000,000''.
SEC. 606. REPORTS.
Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(p)) is amended by striking ``August 1, 1998'' and inserting
``December 31, 2021''.
SEC. 607. INFLATION ADJUSTMENT.
Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(t)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) The Secretary shall adjust the amount of indemnification
provided under an agreement of indemnification under subsection d. not
less than once during each 5-year period following July 1, 2003, in
accordance with the aggregate percentage change in the Consumer Price
Index since--
``(A) that date, in the case of the first adjustment under
this paragraph; or
``(B) the previous adjustment under this paragraph.''.
SEC. 608. TREATMENT OF MODULAR REACTORS.
Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(b)) is amended by adding at the end the following:
``(5)(A) For purposes of this section only, the Commission shall
consider a combination of facilities described in subparagraph (B) to
be a single facility having a rated capacity of 100,000 electrical
kilowatts or more.
``(B) A combination of facilities referred to in subparagraph (A)
is 2 or more facilities located at a single site, each of which has a
rated capacity of 100,000 electrical kilowatts or more but not more
than 300,000 electrical kilowatts, with a combined rated capacity of
not more than 1,300,000 electrical kilowatts.''.
SEC. 609. APPLICABILITY.
The amendments made by sections 603, 604, and 605 do not apply to
a nuclear incident that occurs before the date of the enactment of this
Act.
SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF
LIABILITY FOR CERTAIN FOREIGN INCIDENTS.
Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is
amended by adding at the end the following new subsection:
``u. Prohibition on Assumption of Liability for Certain Foreign
Incidents.--Notwithstanding this section or any other provision of law,
no officer of the United States or of any department, agency, or
instrumentality of the United States Government may enter into any
contract or other arrangement, or into any amendment or modification of
a contract or other arrangement, the purpose or effect of which would
be to directly or indirectly impose liability on the United States
Government, or any department, agency, or instrumentality of the United
States Government, or to otherwise directly or indirectly require an
indemnity by the United States Government, for nuclear incidents
occurring in connection with the design, construction, or operation of
a production facility or utilization facility in any country whose
government has been identified by the Secretary of State as engaged in
state sponsorship of terrorist activities (specifically including any
country the government of which, as of September 11, 2001, had been
determined by the Secretary of State under section 620A(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of
the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or
section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)) to
have repeatedly provided support for acts of international terrorism).
This subsection shall not apply to nuclear incidents occurring as a
result of missions, carried out under the direction of the Secretary of
Energy, the Secretary of Defense, or the Secretary of State, that are
necessary to safely secure, store, transport, or remove nuclear
materials for nuclear safety or nonproliferation purposes.''.
SEC. 611. CIVIL PENALTIES.
(a) Repeal of Automatic Remission.--Section 234A b.(2) of the
Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by
striking the last sentence.
(b) Limitation for Not-for-Profit Institutions.--Subsection d. of
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is
amended to read as follows:
``d.(1) Notwithstanding subsection a., in the case of any not-for-
profit contractor, subcontractor, or supplier, the total amount of
civil penalties paid under subsection a. may not exceed the total
amount of fees paid within any 1-year period (as determined by the
Secretary) under the contract under which the violation occurs.
``(2) For purposes of this section, the term `not-for-profit' means
that no part of the net earnings of the contractor, subcontractor, or
supplier inures to the benefit of any natural person or for-profit
artificial person.''.
(c) Effective Date.--The amendments made by this section shall not
apply to any violation of the Atomic Energy Act of 1954 (42 U.S.C. 2011
et seq.) occurring under a contract entered into before the date of
enactment of this section.
SEC. 612. FINANCIAL ACCOUNTABILITY.
(a) Amendment.--Section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) is amended by adding at the end the following new
subsection:
``v. Financial Accountability.--(1) Notwithstanding subsection d.,
the Attorney General may bring an action in the appropriate United
States district court to recover from a contractor of the Secretary (or
subcontractor or supplier of such contractor) amounts paid by the
Federal Government under an agreement of indemnification under
subsection d. for public liability resulting from conduct which
constitutes intentional misconduct of any corporate officer, manager,
or superintendent of such contractor (or subcontractor or supplier of
such contractor).
``(2) The Attorney General may recover under paragraph (1)
an amount not to exceed the amount of the profit derived by the
defendant from the contract.
``(3) No amount recovered from any contractor (or
subcontractor or supplier of such contractor) under paragraph
(1) may be reimbursed directly or indirectly by the Department
of Energy.
``(4) Paragraph (1) shall not apply to any nonprofit entity
conducting activities under contract for the Secretary.
``(5) No waiver of a defense required under this section
shall prevent a defendant from asserting such defense in an
action brought under this subsection.
``(6) The Secretary shall, by rule, define the terms
`profit' and `nonprofit entity' for purposes of this
subsection. Such rulemaking shall be completed not later than
180 days after the date of the enactment of this subsection.''.
(b) Effective Date.--The amendment made by this section shall not
apply to any agreement of indemnification entered into under section
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) before the
date of the enactment of this Act.
Subtitle B--General Nuclear Matters
SEC. 621. LICENSES.
Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2133(c)) is amended by inserting ``from the authorization to commence
operations'' after ``forty years''.
SEC. 622. NRC TRAINING PROGRAM.
(a) In General.--In order to maintain the human resource investment
and infrastructure of the United States in the nuclear sciences, health
physics, and engineering fields, in accordance with the statutory
authorities of the Nuclear Regulatory Commission relating to the
civilian nuclear energy program, the Nuclear Regulatory Commission
shall carry out a training and fellowship program to address shortages
of individuals with critical nuclear safety regulatory skills.
(b) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Nuclear Regulatory Commission to carry out this section
$1,000,000 for each of fiscal years 2005 through 2009.
(2) Availability.--Funds made available under paragraph (1)
shall remain available until expended.
SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.
Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(w)) is amended--
(1) by striking ``for or is issued'' and all that follows
through ``1702'' and inserting ``to the Commission for, or is
issued by the Commission, a license or certificate'';
(2) by striking ``483a'' and inserting ``9701''; and
(3) by striking ``, of applicants for, or holders of, such
licenses or certificates''.
SEC. 624. ELIMINATION OF PENSION OFFSET.
Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is
amended by adding at the end the following:
``y. Exempt from the application of sections 8344 and 8468 of title
5, United States Code, an annuitant who was formerly an employee of the
Commission who is hired by the Commission as a consultant, if the
Commission finds that the annuitant has a skill that is critical to the
performance of the duties of the Commission.''.
SEC. 625. ANTITRUST REVIEW.
Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2135(c)) is amended by adding at the end the following:
``(9) Applicability.--This subsection does not apply to an
application for a license to construct or operate a utilization
facility or production facility under section 103 or 104 b. that is
filed on or after the date of enactment of this paragraph.''.
SEC. 626. DECOMMISSIONING.
Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(i)) is amended--
(1) by striking ``and (3)'' and inserting ``(3)''; and
(2) by inserting before the semicolon at the end the
following: ``, and (4) to ensure that sufficient funds will be
available for the decommissioning of any production or
utilization facility licensed under section 103 or 104 b.,
including standards and restrictions governing the control,
maintenance, use, and disbursement by any former licensee under
this Act that has control over any fund for the decommissioning
of the facility''.
SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.
Title II of the Energy Reorganization Act of 1974 (42 U.S.C. 5841
et seq.) is amended by adding at the end the following new section:
``limitation on legal fee reimbursement
``Sec. 212. The Department of Energy shall not, except as required
under a contract entered into before the date of enactment of this
section, reimburse any contractor or subcontractor of the Department
for any legal fees or expenses incurred with respect to a complaint
subsequent to--
``(1) an adverse determination on the merits with respect
to such complaint against the contractor or subcontractor by
the Director of the Department of Energy's Office of Hearings
and Appeals pursuant to part 708 of title 10, Code of Federal
Regulations, or by a Department of Labor Administrative Law
Judge pursuant to section 211 of this Act; or
``(2) an adverse final judgment by any State or Federal
court with respect to such complaint against the contractor or
subcontractor for wrongful termination or retaliation due to
the making of disclosures protected under chapter 12 of title
5, United States Code, section 211 of this Act, or any
comparable State law,
unless the adverse determination or final judgment is reversed upon
further administrative or judicial review.''.
SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COMMERCIAL NUCLEAR ENERGY
GENERATION FACILITIES AT EXISTING DEPARTMENT OF ENERGY
SITES.
Not later than 1 year after the date of the enactment of this Act,
the Secretary of Energy shall submit to Congress a report on the
feasibility of developing commercial nuclear energy generation
facilities at Department of Energy sites in existence on the date of
enactment of this Act.
SEC. 630. URANIUM SALES.
(a) Sales, Transfers, and Services.--Section 3112 of the USEC
Privatization Act (42 U.S.C. 2297h-10) is amended by striking
subsections (d), (e), and (f) and inserting the following:
``(3) The Secretary may transfer to the Corporation,
notwithstanding subsections (b)(2) and (d), natural uranium in amounts
sufficient to fulfill the Department of Energy's commitments under
Article 4(B) of the Agreement between the Department and the
Corporation dated June 17, 2002.
``(d) Inventory Sales.--(1) In addition to the transfers and sales
authorized under subsections (b) and (c) and under paragraph (5) of
this subsection, the United States Government may transfer or sell
uranium in any form subject to paragraphs (2), (3), and (4).
``(2) Except as provided in subsections (b) and (c) and paragraph
(5) of this subsection, no sale or transfer of uranium shall be made
under this subsection by the United States Government unless--
``(A) the President determines that the material is not
necessary for national security needs and the sale or transfer
has no adverse impact on implementation of existing government-
to-government agreements;
``(B) the price paid to the appropriate Federal agency, if
the transaction is a sale, will not be less than the fair
market value of the material; and
``(C) the sale or transfer to commercial nuclear power end
users is made pursuant to a contract of at least 3 years'
duration.
``(3) Except as provided in paragraph (5), the United States
Government shall not make any transfer or sale of uranium in any form
under this subsection that would cause the total amount of uranium
transferred or sold pursuant to this subsection that is delivered for
consumption by commercial nuclear power end users to exceed--
``(A) 3,000,000 pounds of U<INF>3</INF> O<INF>8</INF>
equivalent in fiscal year 2005, 2006, 2007, 2008, or 2009;
``(B) 5,000,000 pounds of U<INF>3</INF>O<INF>8</INF>
equivalent in fiscal year 2010 or 2011;
``(C) 7,000,000 pounds of U<INF>3</INF>O<INF>8</INF>
equivalent in fiscal year 2012; and
``(D) 10,000,000 pounds of U<INF>3</INF>O<INF>8</INF>
equivalent in fiscal year 2013 or any fiscal year thereafter.
``(4) Except for sales or transfers under paragraph (5), for the
purposes of this subsection, the recovery of uranium from uranium
bearing materials transferred or sold by the United States Government
to the domestic uranium industry shall be the preferred method of
making uranium available. The recovered uranium shall be counted
against the annual maximum deliveries set forth in this section, when
such uranium is sold to end users.
``(5) The United States Government may make the following sales and
transfers:
``(A) Sales or transfers to a Federal agency if the
material is transferred for the use of the receiving agency
without any resale or transfer to another entity and the
material does not meet commercial specifications.
``(B) Sales or transfers to any person for national
security purposes, as determined by the Secretary.
``(C) Sales or transfers to any State or local agency or
nonprofit, charitable, or educational institution for use other
than the generation of electricity for commercial use.
``(D) Sales or transfers to the Department of Energy
research reactor sales program.
``(E) Sales or transfers, at fair market value, for
emergency purposes in the event of a disruption in supply to
commercial nuclear power end users in the United States.
``(F) Sales or transfers, at fair market value, for use in
a commercial reactor in the United States with nonstandard fuel
requirements.
``(G) Sales or transfers provided for under law for use by
the Tennessee Valley Authority in relation to the Department of
Energy's highly enriched uranium or tritium programs.
``(6) For purposes of this subsection, the term `United States
Government' does not include the Tennessee Valley Authority.
``(e) Savings Provision.--Nothing in this subchapter modifies the
terms of the Russian HEU Agreement.
``(f) Services.--Notwithstanding any other provision of this
section, if the Secretary determines that the Corporation has failed,
or may fail, to perform any obligation under the Agreement between the
Department of Energy and the Corporation dated June 17, 2002, and as
amended thereafter, which failure could result in termination of the
Agreement, the Secretary shall notify Congress, in such a manner that
affords Congress an opportunity to comment, prior to a determination by
the Secretary whether termination, waiver, or modification of the
Agreement is required. The Secretary is authorized to take such action
as he determines necessary under the Agreement to terminate, waive, or
modify provisions of the Agreement to achieve its purposes.''.
(b) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary of Energy shall report to Congress on the
implementation of this section. The report shall include a discussion
of available excess uranium inventories; all sales or transfers made by
the United States Government; the impact of such sales or transfers on
the domestic uranium industry, the spot market uranium price, and the
national security interests of the United States; and any steps taken
to remediate any adverse impacts of such sales or transfers.
SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL
DEMONSTRATION PROJECTS FOR THE URANIUM MINING INDUSTRY.
(a) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy $10,000,000 for each of fiscal
years 2006, 2007, and 2008 for--
(1) cooperative, cost-shared agreements between the
Department of Energy and domestic uranium producers to
identify, test, and develop improved in situ leaching mining
technologies, including low-cost environmental restoration
technologies that may be applied to sites after completion of
in situ leaching operations; and
(2) funding for competitively selected demonstration
projects with domestic uranium producers relating to--
(A) enhanced production with minimal environmental
impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination activities.
(b) Domestic Uranium Producer.--For purposes of this section, the
term ``domestic uranium producer'' has the meaning given that term in
section 1018(4) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-
7(4)), except that the term shall not include any producer that has not
produced uranium from domestic reserves on or after July 30, 1998.
(c) Limitation.--No activities funded under this section may be
carried out in the State of New Mexico.
SEC. 632. WHISTLEBLOWER PROTECTION.
(a) Definition of Employer.--Section 211(a)(2) of the Energy
Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and'' and
(3) by adding at the end the following:
``(E) a contractor or subcontractor of the
Commission.''.
(b) De Novo Review.--Subsection (b) of such section 211 is amended
by adding at the end the following new paragraph:
``(4) If the Secretary has not issued a final decision
within 540 days after the filing of a complaint under paragraph
(1), and there is no showing that such delay is due to the bad
faith of the person seeking relief under this paragraph, such
person may bring an action at law or equity for de novo review
in the appropriate district court of the United States, which
shall have jurisdiction over such an action without regard to
the amount in controversy.''.
SEC. 633. MEDICAL ISOTOPE PRODUCTION.
Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 2160d) is
amended--
(1) in subsection a., by striking ``a. The Commission'' and
inserting ``a. In General.--Except as provided in subsection
b., the Commission'';
(2) by redesignating subsection b. as subsection c.; and
(3) by inserting after subsection a. the following:
``b. Medical Isotope Production.--
``(1) Definitions.--In this subsection:
``(A) Highly enriched uranium.--The term `highly
enriched uranium' means uranium enriched to include
concentration of U-235 above 20 percent.
``(B) Medical isotope.--The term `medical isotope'
includes Molybdenum 99, Iodine 131, Xenon 133, and
other radioactive materials used to produce a
radiopharmaceutical for diagnostic, therapeutic
procedures or for research and development.
``(C) Radiopharmaceutical.--The term
`radiopharmaceutical' means a radioactive isotope
that--
``(i) contains byproduct material combined
with chemical or biological material; and
``(ii) is designed to accumulate
temporarily in a part of the body for
therapeutic purposes or for enabling the
production of a useful image for use in a
diagnosis of a medical condition.
``(D) Recipient country.--The term `recipient
country' means Canada, Belgium, France, Germany, and
the Netherlands.
``(2) Licenses.--The Commission may issue a license
authorizing the export (including shipment to and use at
intermediate and ultimate consignees specified in the license)
to a recipient country of highly enriched uranium for medical
isotope production if, in addition to any other requirements of
this Act (except subsection a.), the Commission determines
that--
``(A) a recipient country that supplies an
assurance letter to the United States Government in
connection with the consideration by the Commission of
the export license application has informed the United
States Government that any intermediate consignees and
the ultimate consignee specified in the application are
required to use the highly enriched uranium solely to
produce medical isotopes; and
``(B) the highly enriched uranium for medical
isotope production will be irradiated only in a reactor
in a recipient country that--
``(i) uses an alternative nuclear reactor
fuel; or
``(ii) is the subject of an agreement with
the United States Government to convert to an
alternative nuclear reactor fuel when
alternative nuclear reactor fuel can be used in
the reactor.
``(3) Review of physical protection requirements.--
``(A) In general.--The Commission shall review the
adequacy of physical protection requirements that, as
of the date of an application under paragraph (2), are
applicable to the transportation and storage of highly
enriched uranium for medical isotope production or
control of residual material after irradiation and
extraction of medical isotopes.
``(B) Imposition of additional requirements.--If
the Commission determines that additional physical
protection requirements are necessary (including a
limit on the quantity of highly enriched uranium that
may be contained in a single shipment), the Commission
shall impose such requirements as license conditions or
through other appropriate means.
``(4) First report to congress.--
``(A) NAS study.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to
conduct a study to determine--
``(i) the feasibility of procuring supplies
of medical isotopes from commercial sources
that do not use highly enriched uranium;
``(ii) the current and projected demand and
availability of medical isotopes in regular
current domestic use;
``(iii) the progress that is being made by
the Department of Energy and others to
eliminate all use of highly enriched uranium in
reactor fuel, reactor targets, and medical
isotope production facilities; and
``(iv) the potential cost differential in
medical isotope production in the reactors and
target processing facilities if the products
were derived from production systems that do
not involve fuels and targets with highly
enriched uranium.
``(B) Feasibility.--For the purpose of this
subsection, the use of low enriched uranium to produce
medical isotopes shall be determined to be feasible
if--
``(i) low enriched uranium targets have
been developed and demonstrated for use in the
reactors and target processing facilities that
produce significant quantities of medical
isotopes to serve United States needs for such
isotopes;
``(ii) sufficient quantities of medical
isotopes are available from low enriched
uranium targets and fuel to meet United States
domestic needs; and
``(iii) the average anticipated total cost
increase from production of medical isotopes in
such facilities without use of highly enriched
uranium is less than 10 percent.
``(C) Report by the secretary.--Not later than 5
years after the date of enactment of the Energy Policy
Act of 2005, the Secretary shall submit to Congress a
report that--
``(i) contains the findings of the National
Academy of Sciences made in the study under
subparagraph (A); and
``(ii) discloses the existence of any
commitments from commercial producers to
provide domestic requirements for medical
isotopes without use of highly enriched uranium
consistent with the feasibility criteria
described in subparagraph (B) not later than
the date that is 4 years after the date of
submission of the report.
``(5) Second report to congress.--If the study of the
National Academy of Sciences determines under paragraph
(4)(A)(i) that the procurement of supplies of medical isotopes
from commercial sources that do not use highly enriched uranium
is feasible, but the Secretary is unable to report the
existence of commitments under paragraph (4)(C)(ii), not later
than the date that is 6 years after the date of enactment of
the Energy Policy Act of 2005, the Secretary shall submit to
Congress a report that describes options for developing
domestic supplies of medical isotopes in quantities that are
adequate to meet domestic demand without the use of highly
enriched uranium consistent with the cost increase described in
paragraph (4)(B)(iii).
``(6) Certification.--At such time as commercial facilities
that do not use highly enriched uranium are capable of meeting
domestic requirements for medical isotopes, within the cost
increase described in paragraph (4)(B)(iii) and without
impairing the reliable supply of medical isotopes for domestic
utilization, the Secretary shall submit to Congress a
certification to that effect.
``(7) Sunset provision.--After the Secretary submits a
certification under paragraph (6), the Commission shall, by
rule, terminate its review of export license applications under
this subsection.''.
SEC. 634. FERNALD BYPRODUCT MATERIAL.
Title III of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10221
et seq.) is amended by adding at the end the following new section:
``fernald byproduct material
``Sec. 307. Notwithstanding any other law, the material in the
concrete silos at the Fernald uranium processing facility managed on
the date of enactment of this section by the Department shall be
considered byproduct material (as defined by section 11 e.(2) of the
Atomic Energy Act of 1954 (42 U.S.C. 2014(e)(2))). The Department may
dispose of the material in a facility regulated by the Commission or by
an Agreement State. If the Department disposes of the material in such
a facility, the Commission or the Agreement State shall regulate the
material as byproduct material under that Act. This material shall
remain subject to the jurisdiction of the Department until it is
received at a commercial, Commission-licensed, or Agreement State-
licensed facility, at which time the material shall be subject to the
health and safety requirements of the Commission or the Agreement State
with jurisdiction over the disposal site.''.
SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.
Subtitle D of title I of the Nuclear Waste Policy Act of 1982 (42
U.S.C. 10171) is amended by adding at the end the following new
section:
``safe disposal of greater-than-class c radioactive waste
``Sec. 152. (a) Designation of Responsibility.--The Secretary shall
designate an Office within the Department to have the responsibility
for activities needed to develop a new, or use an existing, facility
for safely disposing of all low-level radioactive waste with
concentrations of radionuclides that exceed the limits established by
the Commission for Class C radioactive waste (referred to in this
section as `GTCC waste').
``(b) Comprehensive Plan.--The Secretary shall develop a
comprehensive plan for permanent disposal of GTCC waste which includes
plans for a disposal facility. This plan shall be transmitted to
Congress in a series of reports, including the following:
``(1) Report on short-term plan.--Not later than 180 days
after the date of enactment of this section, the Secretary
shall submit to Congress a plan describing the Secretary's
operational strategy for continued recovery and storage of GTCC
waste until a permanent disposal facility is available.
``(2) Update of 1987 report.--
``(A) In general.--Not later than 1 year after the
date of enactment of this section, the Secretary shall
submit to Congress an update of the Secretary's
February 1987 report submitted to Congress that made
comprehensive recommendations for the disposal of GTCC
waste.
``(B) Contents.--The update under this paragraph
shall contain--
``(i) a detailed description and
identification of the GTCC waste that is to be
disposed;
``(ii) a description of current domestic
and international programs, both Federal and
commercial, for management and disposition of
GTCC waste;
``(iii) an identification of the Federal
and private options and costs for the safe
disposal of GTCC waste;
``(iv) an identification of the options for
ensuring that, wherever possible, generators
and users of GTCC waste bear all reasonable
costs of waste disposal;
``(v) an identification of any new
statutory authority required for disposal of
GTCC waste; and
``(vi) in coordination with the
Environmental Protection Agency and the
Commission, an identification of any new
regulatory guidance needed for the disposal of
GTCC waste.
``(3) Report on cost and schedule for completion of
environmental impact statement and record of decision.--Not
later than 180 days after the date of submission of the update
required under paragraph (2), the Secretary shall submit to
Congress a report containing an estimate of the cost and
schedule to complete a draft and final environmental impact
statement and to issue a record of decision for a permanent
disposal facility, utilizing either a new or existing facility,
for GTCC waste.''.
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR
TERRORISM.
(a) In General.--Section 129 of the Atomic Energy Act of 1954 (42
U.S.C. 2158) is amended--
(1) by inserting ``a.'' before ``No nuclear materials and
equipment''; and
(2) by adding at the end the following new subsection:
``b.(1) Notwithstanding any other provision of law, including
specifically section 121 of this Act, and except as provided in
paragraphs (2) and (3), no nuclear materials and equipment or sensitive
nuclear technology, including items and assistance authorized by
section 57 b. of this Act and regulated under part 810 of title 10,
Code of Federal Regulations, and nuclear-related items on the Commerce
Control List maintained under part 774 of title 15 of the Code of
Federal Regulations, shall be exported or reexported, or transferred or
retransferred whether directly or indirectly, and no Federal agency
shall issue any license, approval, or authorization for the export or
reexport, or transfer, or retransfer, whether directly or indirectly,
of these items or assistance (as defined in this paragraph) to any
country whose government has been identified by the Secretary of State
as engaged in state sponsorship of terrorist activities (specifically
including any country the government of which has been determined by
the Secretary of State under section 620A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or section
40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)) to have
repeatedly provided support for acts of international terrorism).
``(2) This subsection shall not apply to exports, reexports,
transfers, or retransfers of radiation monitoring technologies,
surveillance equipment, seals, cameras, tamper-indication devices,
nuclear detectors, monitoring systems, or equipment necessary to safely
store, transport, or remove hazardous materials, whether such items,
services, or information are regulated by the Department of Energy, the
Department of Commerce, or the Nuclear Regulatory Commission, except to
the extent that such technologies, equipment, seals, cameras, devices,
detectors, or systems are available for use in the design or
construction of nuclear reactors or nuclear weapons.
``(3) The President may waive the application of paragraph (1) to a
country if the President determines and certifies to Congress that the
waiver will not result in any increased risk that the country receiving
the waiver will acquire nuclear weapons, nuclear reactors, or any
materials or components of nuclear weapons and--
``(A) the government of such country has not within the
preceding 12-month period willfully aided or abetted the
international proliferation of nuclear explosive devices to
individuals or groups or willfully aided and abetted an
individual or groups in acquiring unsafeguarded nuclear
materials;
``(B) in the judgment of the President, the government of
such country has provided adequate, verifiable assurances that
it will cease its support for acts of international terrorism;
``(C) the waiver of that paragraph is in the vital national
security interest of the United States; or
``(D) such a waiver is essential to prevent or respond to a
serious radiological hazard in the country receiving the waiver
that may or does threaten public health and safety.''.
(b) Applicability to Exports Approved for Transfer but not
Transferred.--Subsection b. of section 129 of Atomic Energy Act of
1954, as added by subsection (a) of this section, shall apply with
respect to exports that have been approved for transfer as of the date
of the enactment of this Act but have not yet been transferred as of
that date.
SEC. 638. NATIONAL URANIUM STOCKPILE.
The USEC Privatization Act (42 U.S.C. 2297h et seq.) is amended by
adding at the end the following new section:
``SEC. 3118. NATIONAL URANIUM STOCKPILE.
``(a) Stockpile Creation.--The Secretary of Energy may create a
national low-enriched uranium stockpile with the goals to--
``(1) enhance national energy security; and
``(2) reduce global proliferation threats.
``(b) Source of Material.--The Secretary shall obtain material for
the stockpile from--
``(1) material derived from blend-down of Russian highly
enriched uranium derived from weapons materials; and
``(2) domestically mined and enriched uranium.
``(c) Limitation on Sales or Transfers.--Sales or transfer of
materials in the stockpile shall occur pursuant to section 3112.''.
SEC. 639. NUCLEAR REGULATORY COMMISSION MEETINGS.
If a quorum of the Nuclear Regulatory Commission gathers to discuss
official Commission business the discussions shall be recorded, and the
Commission shall notify the public of such discussions within 15 days
after they occur. The Commission shall promptly make a transcript of
the recording available to the public on request, except to the extent
that public disclosure is exempted or prohibited by law. This section
shall not apply to a meeting, within the meaning of that term under
section 552b(a)(2) of title 5, United States Code.
SEC. 640. EMPLOYEE BENEFITS.
Section 3110 of the USEC Privatization Act (42 U.S.C. 2297h-8(a))
is amended by adding at the end the following new paragraph:
``(8) Continuity of Benefits.--Not later than 30 days after the
date of enactment of this paragraph, the Secretary shall implement such
actions as are necessary to ensure that any employee who--
``(A) is involved in providing infrastructure or
environmental remediation services at the Portsmouth, Ohio, or
the Paducah, Kentucky, Gaseous Diffusion Plant;
``(B) has been an employee of the Department of Energy's
predecessor management and integrating contractor (or its first
or second tier subcontractors), or of the Corporation, at the
Portsmouth, Ohio, or the Paducah, Kentucky, facility; and
``(C) was eligible as of April 1, 2005, to participate in
or transfer into the Multiple Employer Pension Plan or the
associated multiple employer retiree health care benefit plans,
as defined in those plans,
shall continue to be eligible to participate in or transfer into such
pension or health care benefit plans.''.
Subtitle C--Additional Hydrogen Production Provisions
SEC. 651. HYDROGEN PRODUCTION PROGRAMS.
(a) Advanced Reactor Hydrogen Cogeneration Project.--
(1) Project establishment.-- The Secretary is directed to
establish an Advanced Reactor Hydrogen Cogeneration Project.
(2) Project definition.-- The project shall consist of the
research, development, design, construction, and operation of a
hydrogen production cogeneration research facility that,
relative to the current commercial reactors, enhances safety
features, reduces waste production, enhances thermal
efficiencies, increases proliferation resistance, and has the
potential for improved economics and physical security in
reactor siting. This facility shall be constructed so as to
enable research and development on advanced reactors of the
type selected and on alternative approaches for reactor-based
production of hydrogen.
(3) Project management.--
(A) Management.--The project shall be managed
within the Department by the Office of Nuclear Energy,
Science, and Technology.
(B) Lead laboratory.--The lead laboratory for the
project, providing the site for the reactor
construction, shall be the Idaho National Laboratory
(in this subsection referred to as ``INL'').
(C) Steering committee.--The Secretary shall
establish a national steering committee with membership
from the national laboratories, universities, and
industry to provide advice to the Secretary and the
Director of the Office of Nuclear Energy, Science, and
Technology on technical and program management aspects
of the project.
(D) Collaboration.--Project activities shall be
conducted at INL, other national laboratories,
universities, domestic industry, and international
partners.
(4) Project requirements.--
(A) Research and development.--
(i) In general.--The project shall include
planning, research and development, design, and
construction of an advanced, next-generation,
nuclear energy system suitable for enabling
further research and development on advanced
reactor technologies and alternative approaches
for reactor-based generation of hydrogen.
(ii) Reactor test capabilities at inl.--The
project shall utilize, where appropriate,
extensive reactor test capabilities resident at
INL.
(iii) Alternatives.--The project shall be
designed to explore technical, environmental,
and economic feasibility of alternative
approaches for reactor-based hydrogen
production.
(iv) Industrial lead.--The industrial lead
for the project shall be a company incorporated
in the United States.
(B) International collaboration.--
(i) In general.--The Secretary shall seek
international cooperation, participation, and
financial contribution in this project.
(ii) Assistance from international
partners.--The Secretary may contract for
assistance from specialists or facilities from
member countries of the Generation IV
International Forum, the Russian Federation, or
other international partners where such
specialists or facilities provide access to
cost-effective and relevant skills or test
capabilities.
(iii) Generation iv international forum.--
International activities shall be coordinated
with the Generation IV International Forum.
(iv) Generation iv nuclear energy systems
program.--The Secretary may combine this
project with the Generation IV Nuclear Energy
Systems Program.
(C) Demonstration.--The overall project, which may
involve demonstration of selected project objectives in
a partner nation, must demonstrate both electricity and
hydrogen production and may provide flexibility, where
technically and economically feasible in the design and
construction, to enable tests of alternative reactor
core and cooling configurations.
(D) Partnerships.--The Secretary shall establish
cost-shared partnerships with domestic industry or
international participants for the research,
development, design, construction, and operation of the
research facility, and preference in determining the
final project structure shall be given to an overall
project which retains United States leadership while
maximizing cost sharing opportunities and minimizing
Federal funding responsibilities.
(E) Target date.--The Secretary shall select
technologies and develop the project to provide initial
testing of either hydrogen production or electricity
generation by 2011, or provide a report to Congress
explaining why this date is not feasible.
(F) Waiver of construction timelines.--The
Secretary is authorized to conduct the Advanced Reactor
Hydrogen Cogeneration Project without the constraints
of DOE Order 413.3, relating to program and project
management for the acquisition of capital assets, as
necessary to meet the specified operational date.
(G) Competition.--The Secretary may fund up to 2
teams for up to 1 year to develop detailed proposals
for competitive evaluation and selection of a single
proposal and concept for further progress. The
Secretary shall define the format of the competitive
evaluation of proposals.
(H) Use of facilities.--Research facilities in
industry, national laboratories, or universities either
within the United States or with cooperating
international partners may be used to develop the
enabling technologies for the research facility.
Utilization of domestic university-based facilities
shall be encouraged to provide educational
opportunities for student development.
(I) Role of nuclear regulatory commission.--
(i) In general.--The Nuclear Regulatory
Commission shall have licensing and regulatory
authority for any reactor authorized under this
subsection, pursuant to section 202 of the
Energy Reorganization Act of 1974 (42 U.S.C.
5842).
(ii) Risk-based criteria.--The Secretary
shall seek active participation of the Nuclear
Regulatory Commission throughout the project to
develop risk-based criteria for any future
commercial development of a similar reactor
architecture.
(J) Report.--The Secretary shall develop and
transmit to Congress a comprehensive project plan not
later than 3 months after the date of enactment of this
Act. The project plan shall be updated annually with
each annual budget submission.
(b) Advanced Nuclear Reactor Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this subtitle related to advanced nuclear reactor
technologies and for implementing the recommendations related
to advanced nuclear reactor technologies that are included in
the report transmitted under subsection (d); and
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically diverse
to demonstrate the commercial production of hydrogen at
existing nuclear power plants, including one demonstration
project at a national laboratory or institution of higher
education using an advanced gas-cooled reactor.
(c) Collocation With Hydrogen Production Facility.--Section 103 of
the Atomic Energy Act of 1954 (42 U.S.C. 2011) is amended by adding at
the end the following new subsection:
``g. The Commission shall give priority to the licensing of a
utilization facility that is collocated with a hydrogen production
facility. The Commission shall issue a final decision approving or
disapproving the issuance of a license to construct and operate a
utilization facility not later than the expiration of 3 years after the
date of the submission of such application, if the application
references a Commission-certified design and an early site permit,
unless the Commission determines that the applicant has proposed
material and substantial changes to the design or the site design
parameters.''.
(d) Report.--The Secretary shall transmit to the Congress not later
than 120 days after the date of enactment of this Act a report
containing detailed summaries of the roadmaps prepared under subsection
(b)(1), descriptions of the Secretary's progress in establishing the
projects and other programs required under this section, and
recommendations for promoting the availability of advanced nuclear
reactor energy technologies for the production of hydrogen.
(e) Authorization of Appropriations.--For the purpose of supporting
research programs related to the development of advanced nuclear
reactor technologies under this section, there are authorized to be
appropriated to the Secretary--
(1) $65,000,000 for fiscal year 2006;
(2) $74,750,000 for fiscal year 2007;
(3) $85,962,500 for fiscal year 2008;
(4) $98,856,875 for fiscal year 2009;
(5) $113,685,406 for fiscal year 2010;
(6) $130,738,217 for fiscal year 2011;
(7) $150,348,950 for fiscal year 2012;
(8) $172,901,292 for fiscal year 2013;
(9) $198,836,486 for fiscal year 2014; and
(10) $228,661,959 for fiscal year 2015.
SEC. 652. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``advanced nuclear reactor technologies''
means--
(A) technologies related to advanced light water
reactors that may be commercially available in the
near-term, including mid-sized reactors with passive
safety features, for the generation of electric power
from nuclear fission and the production of hydrogen;
and
(B) technologies related to other nuclear reactors
that may require prototype demonstration prior to
availability in the mid-term or long-term, including
high-temperature, gas-cooled reactors and liquid metal
reactors, for the generation of electric power from
nuclear fission and the production of hydrogen;
(2) the term ``institution of higher education'' has the
meaning given to that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)); and
(3) the term ``Secretary'' means the Secretary of Energy.
Subtitle D--Nuclear Security
SEC. 661. NUCLEAR FACILITY THREATS.
(a) Study.--The President, in consultation with the Nuclear
Regulatory Commission (referred to in this subtitle as the
``Commission'') and other appropriate Federal, State, and local
agencies and private entities, shall conduct a study to identify the
types of threats that pose an appreciable risk to the security of the
various classes of facilities licensed by the Commission under the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study shall
take into account, but not be limited to--
(1) the events of September 11, 2001;
(2) an assessment of physical, cyber, biochemical, and
other terrorist threats;
(3) the potential for attack on facilities by multiple
coordinated teams of a large number of individuals;
(4) the potential for assistance in an attack from several
persons employed at the facility;
(5) the potential for suicide attacks;
(6) the potential for water-based and air-based threats;
(7) the potential use of explosive devices of considerable
size and other modern weaponry;
(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
(9) the potential for fires, especially fires of long
duration;
(10) the potential for attacks on spent fuel shipments by
multiple coordinated teams of a large number of individuals;
(11) the adequacy of planning to protect the public health
and safety at and around nuclear facilities, as appropriate, in
the event of a terrorist attack against a nuclear facility; and
(12) the potential for theft and diversion of nuclear
materials from such facilities.
(b) Summary and Classification Report.--Not later than 180 days
after the date of the enactment of this Act, the President shall
transmit to Congress and the Commission a report--
(1) summarizing the types of threats identified under
subsection (a); and
(2) classifying each type of threat identified under
subsection (a), in accordance with existing laws and
regulations, as either--
(A) involving attacks and destructive acts,
including sabotage, directed against the facility by an
enemy of the United States, whether a foreign
government or other person, or otherwise falling under
the responsibilities of the Federal Government; or
(B) involving the type of risks that Commission
licensees should be responsible for guarding against.
(c) Federal Action Report.--Not later than 90 days after the date
on which a report is transmitted under subsection (b), the President
shall transmit to Congress a report on actions taken, or to be taken,
to address the types of threats identified under subsection (b)(2)(A),
including identification of the Federal, State, and local agencies
responsible for carrying out the obligations and authorities of the
United States. Such report may include a classified annex, as
appropriate.
(d) Regulations.--Not later than 180 days after the date on which a
report is transmitted under subsection (b), the Commission may revise,
by rule, the design basis threats issued before the date of enactment
of this section as the Commission considers appropriate based on the
summary and classification report.
(e) Physical Security Program.--The Commission shall establish an
operational safeguards response evaluation program that ensures that
the physical protection capability and operational safeguards response
for sensitive nuclear facilities, as determined by the Commission
consistent with the protection of public health and the common defense
and security, shall be tested periodically through Commission approved
or designed, observed, and evaluated force-on-force exercises to
determine whether the ability to defeat the design basis threat is
being maintained. For purposes of this subsection, the term ``sensitive
nuclear facilities'' includes at a minimum commercial nuclear power
plants and category I fuel cycle facilities.
(f) Control of Information.--Notwithstanding any other provision of
law, the Commission may undertake any rulemaking under this subtitle in
a manner that will fully protect safeguards and classified national
security information.
(g) Federal Security Coordinators.--
(1) Regional offices.--Not later than 18 months after the
date of enactment of this Act, the Commission shall assign a
Federal security coordinator, under the employment of the
Commission, to each region of the Commission.
(2) Responsibilities.--The Federal security coordinator
shall be responsible for--
(A) communicating with the Commission and other
Federal, State, and local authorities concerning
threats, including threats against such classes of
facilities as the Commission determines to be
appropriate;
(B) ensuring that such classes of facilities as the
Commission determines to be appropriate maintain
security consistent with the security plan in
accordance with the appropriate threat level; and
(C) assisting in the coordination of security
measures among the private security forces at such
classes of facilities as the Commission determines to
be appropriate and Federal, State, and local
authorities, as appropriate.
(h) Training Program.--The President shall establish a program to
provide technical assistance and training to Federal agencies, the
National Guard, and State and local law enforcement and emergency
response agencies in responding to threats against a designated nuclear
facility.
SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY RECORD CHECKS.
(a) In General.--Subsection a. of section 149 of the Atomic Energy
Act of 1954 (42 U.S.C. 2169(a)) is amended--
(1) by striking ``a. The Nuclear'' and all that follows
through ``section 147.'' and inserting the following:
``a. In General.--
``(1) Requirements.--
``(A) In general.--The Commission shall require
each individual or entity--
``(i) that is licensed or certified to
engage in an activity subject to regulation by
the Commission;
``(ii) that has filed an application for a
license or certificate to engage in an activity
subject to regulation by the Commission; or
``(iii) that has notified the Commission,
in writing, of an intent to file an application
for licensing, certification, permitting, or
approval of a product or activity subject to
regulation by the Commission,
to fingerprint each individual described in
subparagraph (B) before the individual is permitted
unescorted access or access, whichever is applicable,
as described in subparagraph (B).
``(B) Individuals required to be fingerprinted.--
The Commission shall require to be fingerprinted each
individual who--
``(i) is permitted unescorted access to--
``(I) a utilization facility; or
``(II) radioactive material or
other property subject to regulation by
the Commission that the Commission
determines to be of such significance
to the public health and safety or the
common defense and security as to
warrant fingerprinting and background
checks; or
``(ii) is permitted access to safeguards
information under section 147.'';
(2) by striking ``All fingerprints obtained by a licensee
or applicant as required in the preceding sentence'' and
inserting the following:
``(2) Submission to the attorney general.--All fingerprints
obtained by an individual or entity as required in paragraph
(1)'';
(3) by striking ``The costs of any identification and
records check conducted pursuant to the preceding sentence
shall be paid by the licensee or applicant.'' and inserting the
following:
``(3) Costs.--The costs of any identification and records
check conducted pursuant to paragraph (1) shall be paid by the
individual or entity required to conduct the fingerprinting
under paragraph (1)(A).''; and
(4) by striking ``Notwithstanding any other provision of
law, the Attorney General may provide all the results of the
search to the Commission, and, in accordance with regulations
prescribed under this section, the Commission may provide such
results to licensee or applicant submitting such
fingerprints.'' and inserting the following:
``(4) Provision to individual or entity required to conduct
fingerprinting.--Notwithstanding any other provision of law,
the Attorney General may provide all the results of the search
to the Commission, and, in accordance with regulations
prescribed under this section, the Commission may provide such
results to the individual or entity required to conduct the
fingerprinting under paragraph (1)(A).''.
(b) Administration.--Subsection c. of section 149 of the Atomic
Energy Act of 1954 (42 U.S.C. 2169(c)) is amended--
(1) by striking ``, subject to public notice and comment,
regulations--'' and inserting ``requirements--''; and
(2) by striking, in paragraph (2)(B), ``unescorted access
to the facility of a licensee or applicant'' and inserting
``unescorted access to a utilization facility, radioactive
material, or other property described in subsection a.(1)(B)''.
(c) Biometric Methods.--Subsection d. of section 149 of the Atomic
Energy Act of 1954 (42 U.S.C. 2169(d)) is redesignated as subsection
e., and the following is inserted after subsection c.:
``d. Use of Other Biometric Methods.--The Commission may satisfy
any requirement for a person to conduct fingerprinting under this
section using any other biometric method for identification approved
for use by the Attorney General, after the Commission has approved the
alternative method by rule.''.
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF LICENSEES AND
CERTIFICATE HOLDERS OF THE COMMISSION.
Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is
amended by adding at the end the following subsection:
``(z)(1) notwithstanding section 922(o), (v), and (w) of
title 18, United States Code, or any similar provision of any
State law or any similar rule or regulation of a State or any
political subdivision of a State prohibiting the transfer or
possession of a handgun, a rifle or shotgun, a short-barreled
shotgun, a short-barreled rifle, a machinegun, a semiautomatic
assault weapon, ammunition for the foregoing, or a large
capacity ammunition feeding device, authorize security
personnel of licensees and certificate holders of the
Commission (including employees of contractors of licensees and
certificate holders) to receive, possess, transport, import,
and use 1 or more of those weapons, ammunition, or devices, if
the Commission determines that--
``(A) such authorization is necessary to the
discharge of the security personnel's official duties;
and
``(B) the security personnel--
``(i) are not otherwise prohibited from
possessing or receiving a firearm under Federal
or State laws pertaining to possession of
firearms by certain categories of persons;
``(ii) have successfully completed
requirements established through guidelines
implementing this subsection for training in
use of firearms and tactical maneuvers;
``(iii) are engaged in the protection of--
``(I) facilities owned or operated
by a Commission licensee or certificate
holder that are designated by the
Commission; or
``(II) radioactive material or
other property owned or possessed by a
person that is a licensee or
certificate holder of the Commission,
or that is being transported to or from
a facility owned or operated by such a
licensee or certificate holder, and
that has been determined by the
Commission to be of significance to the
common defense and security or public
health and safety; and
``(iv) are discharging their official
duties.
``(2) Such receipt, possession, transportation,
importation, or use shall be subject to--
``(A) chapter 44 of title 18, United States Code,
except for section 922(a)(4), (o), (v), and (w);
``(B) chapter 53 of title 26, United States Code,
except for section 5844; and
``(C) a background check by the Attorney General,
based on fingerprints and including a check of the
system established under section 103(b) of the Brady
Handgun Violence Prevention Act (18 U.S.C. 922 note) to
determine whether the person applying for the authority
is prohibited from possessing or receiving a firearm
under Federal or State law.
``(3) This subsection shall become effective upon the
issuance of guidelines by the Commission, with the approval of
the Attorney General, to govern the implementation of this
subsection.
``(4) In this subsection, the terms `handgun', `rifle',
`shotgun', `firearm', `ammunition', `machinegun',
`semiautomatic assault weapon', `large capacity ammunition
feeding device', `short-barreled shotgun', and `short-barreled
rifle' shall have the meanings given those terms in section
921(a) of title 18, United States Code.''.
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.
Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C.
2278a(a)) is amended in the first sentence by inserting ``or subject to
the licensing authority of the Commission or to certification by the
Commission under this Act or any other Act'' before the period at the
end.
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.
(a) In General.--Section 236 a. of the Atomic Energy Act of 1954
(42 U.S.C. 2284(a)) is amended--
(1) in paragraph (2), by striking ``storage facility'' and
inserting ``storage, treatment, or disposal facility'';
(2) in paragraph (3)--
(A) by striking ``such a utilization facility'' and
inserting ``a utilization facility licensed under this
Act''; and
(B) by striking ``or'' at the end;
(3) in paragraph (4)--
(A) by striking ``facility licensed'' and inserting
``, uranium conversion, or nuclear fuel fabrication
facility licensed or certified''; and
(B) by striking the comma at the end and inserting
a semicolon; and
(4) by inserting after paragraph (4) the following:
``(5) any production, utilization, waste storage, waste
treatment, waste disposal, uranium enrichment, uranium
conversion, or nuclear fuel fabrication facility subject to
licensing or certification under this Act during construction
of the facility, if the destruction or damage caused or
attempted to be caused could adversely affect public health and
safety during the operation of the facility;
``(6) any primary facility or backup facility from which a
radiological emergency preparedness alert and warning system is
activated; or
``(7) any radioactive material or other property subject to
regulation by the Nuclear Regulatory Commission that, before
the date of the offense, the Nuclear Regulatory Commission
determines, by order or regulation published in the Federal
Register, is of significance to the public health and safety or
to common defense and security,''.
(b) Penalties.--Section 236 of the Atomic Energy Act of 1954 (42
U.S.C. 2284) is amended by striking ``$10,000 or imprisoned for not
more than 20 years, or both, and, if death results to any person, shall
be imprisoned for any term of years or for life'' both places it
appears and inserting ``$1,000,000 or imprisoned for up to life without
parole''.
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.
(a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 (42
U.S.C. 2201-2210b) is amended by adding at the end the following new
section:
``SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS.
``a. The Nuclear Regulatory Commission shall establish a system to
ensure that materials described in subsection b., when transferred or
received in the United States by any party pursuant to an import or
export license issued pursuant to this Act, are accompanied by a
manifest describing the type and amount of materials being transferred
or received. Each individual receiving or accompanying the transfer of
such materials shall be subject to a security background check
conducted by appropriate Federal entities.
``b. Except as otherwise provided by the Commission by regulation,
the materials referred to in subsection a. are byproduct materials,
source materials, special nuclear materials, high-level radioactive
waste, spent nuclear fuel, transuranic waste, and low-level radioactive
waste (as defined in section 2(16) of the Nuclear Waste Policy Act of
1982 (42 U.S.C. 10101(16))).''.
(b) Regulations.--Not later than 1 year after the date of the
enactment of this Act, and from time to time thereafter as it considers
necessary, the Nuclear Regulatory Commission shall issue regulations
identifying radioactive materials or classes of individuals that,
consistent with the protection of public health and safety and the
common defense and security, are appropriate exceptions to the
requirements of section 170C of the Atomic Energy Act of 1954, as added
by subsection (a) of this section.
(c) Effective Date.--The amendment made by subsection (a) shall
take effect upon the issuance of regulations under subsection (b),
except that the background check requirement shall become effective on
a date established by the Commission.
(d) Effect on Other Law.--Nothing in this section or the amendment
made by this section shall waive, modify, or affect the application of
chapter 51 of title 49, United States Code, part A of subtitle V of
title 49, United States Code, part B of subtitle VI of title 49, United
States Code, and title 23, United States Code.
(e) Table of Sections Amendment.--The table of sections for chapter
14 of the Atomic Energy Act of 1954 is amended by adding at the end the
following new item:
``Sec. 170C. Secure transfer of nuclear materials.''.
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.
Before issuing a license for a utilization facility, the Nuclear
Regulatory Commission shall consult with the Department of Homeland
Security concerning the potential vulnerabilities of the location of
the proposed facility to terrorist attack.
SEC. 668. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as are necessary to carry out this subtitle and the amendments made by
this subtitle.
(b) Nuclear Regulatory Commission User Fees and Annual Charges.--
Section 6101 of the Omnibus Budget Reconciliation Act of 1990 (42
U.S.C. 2214) is amended--
(1) in subsection (a)--
(A) by striking ``Except as provided in paragraph
(3), the'' and inserting ``The'' in paragraph (1); and
(B) by striking paragraph (3); and
(2) in subsection (c)--
(A) by striking ``and'' at the end of paragraph
(2)(A)(i);
(B) by striking the period at the end of paragraph
(2)(A)(ii) and inserting a semicolon;
(C) by adding at the end of paragraph (2)(A) the
following new clauses:
``(iii) amounts appropriated to the
Commission for the fiscal year for
implementation of section 3116 of the Ronald W.
Reagan National Defense Authorization Act for
Fiscal Year 2005; and
``(iv) amounts appropriated to the
Commission for homeland security activities of
the Commission for the fiscal year, except for
the costs of fingerprinting and background
checks required by section 149 of the Atomic
Energy Act of 1954 (42 U.S.C. 2169) and the
costs of conducting security inspections.'';
and
(D) by amending paragraph (2)(B)(v) to read as
follows:
``(v) 90 percent for fiscal year 2005 and
each fiscal year thereafter.''.
(c) Repeal.--Section 7601 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (42 U.S.C. 2213) is repealed.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.
Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act
(42 U.S.C. 6374(a)(3)(E)) is amended to read as follows:
``(E)(i) Dual fueled vehicles acquired pursuant to this section
shall be operated on alternative fuels unless the Secretary determines
that an agency qualifies for a waiver of such requirement for vehicles
operated by the agency in a particular geographic area in which--
``(I) the alternative fuel otherwise required to be used in
the vehicle is not reasonably available to retail purchasers of
the fuel, as certified to the Secretary by the head of the
agency; or
``(II) the cost of the alternative fuel otherwise required
to be used in the vehicle is unreasonably more expensive
compared to gasoline, as certified to the Secretary by the head
of the agency.
``(ii) The Secretary shall monitor compliance with this
subparagraph by all such fleets and shall report annually to Congress
on the extent to which the requirements of this subparagraph are being
achieved. The report shall include information on annual reductions
achieved from the use of petroleum-based fuels and the problems, if
any, encountered in acquiring alternative fuels.''.
SEC. 704. INCREMENTAL COST ALLOCATION.
Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C.
13212(c)) is amended by striking ``may'' and inserting ``shall''.
SEC. 705. LEASE CONDENSATES.
(a) Lease Condensate Fuels.--Section 301 of the Energy Policy Act
of 1992 (42 U.S.C. 13211) is amended--
(1) in paragraph (2), by inserting ``mixtures containing 50
percent or more by volume of lease condensate or fuels
extracted from lease condensate;'' after ``liquefied petroleum
gas;'';
(2) in paragraph (13), by striking ``and'' at the end;
(3) in paragraph (14)--
(A) by inserting ``mixtures containing 50 percent
or more by volume of lease condensate or fuels
extracted from lease condensate,'' after ``liquefied
petroleum gas,''; and
(B) by striking the period and inserting ``; and'';
and
(4) by adding at the end the following:
``(15) the term `lease condensate' means a mixture,
primarily of pentanes and heavier hydrocarbons, that is
recovered as a liquid from natural gas in lease separation
facilities.''.
(b) Lease Condensate Use Credits.--
(1) In general.--Title III of the Energy Policy Act of 1992
(42 U.S.C. 13211 et seq.) is amended by adding at the end the
following:
``SEC. 313. LEASE CONDENSATE USE CREDITS.
``(a) In General.--Subject to subsection (d), the Secretary shall
allocate 1 credit under this section to a fleet or covered person for
each qualifying volume of the lease condensate component of fuel
containing at least 50 percent lease condensate, or fuels extracted
from lease condensate, after the date of enactment of this section for
use by the fleet or covered person in vehicles owned or operated by the
fleet or covered person that weigh more than 8,500 pounds gross vehicle
weight rating.
``(b) Requirements.--A credit allocated under this section--
``(1) shall be subject to the same exceptions, authority,
documentation, and use of credits that are specified for
qualifying volumes of biodiesel in section 312; and
``(2) shall not be considered a credit under section 508.
``(c) Regulation.--
``(1) In general.--Subject to subsection (d), not later
than January 1, 2006, after the collection of appropriate
information and data that consider usage options, uses in other
industries, products, or processes, potential volume
capacities, costs, air emissions, and fuel efficiencies, the
Secretary shall issue a regulation establishing requirements
and procedures for the implementation of this section.
``(2) Qualifying volume.--The regulation shall include a
determination of an appropriate qualifying volume for lease
condensate, except that in no case shall the Secretary
determine that the qualifying volume for lease condensate is
less than 1,125 gallons.
``(d) Applicability.--This section applies unless the Secretary
finds that the use of lease condensate as an alternative fuel would
adversely affect public health or safety or ambient air quality or the
environment.''.
(2) Table of contents amendment.--The table of contents of
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is
amended by adding at the end of the items relating to title III
the following:
``Sec. 313. Lease condensate use credits.''.
(c) Emergency Exemption.--Section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211) is amended in paragraph (9)(E) by inserting
before the semicolon at the end ``, including vehicles directly used in
the emergency repair of transmission lines and in the restoration of
electricity service following power outages, as determined by the
Secretary''.
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.
(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of Energy shall complete a
study to determine the effect that titles III, IV, and V of the Energy
Policy Act of 1992 (42 U.S.C. 13211 et seq.) have had on--
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the market; and
(3) the cost of alternative fueled vehicles.
(b) Topics.--As part of the study under subsection (a), the
Secretary shall specifically identify--
(1) the number of alternative fueled vehicles acquired by
fleets or covered persons required to acquire alternative
fueled vehicles;
(2) the quantity, by type, of alternative fuel actually
used in alternative fueled vehicles acquired by fleets or
covered persons;
(3) the quantity of petroleum displaced by the use of
alternative fuels in alternative fueled vehicles acquired by
fleets or covered persons;
(4) the direct and indirect costs of compliance with
requirements under titles III, IV, and V of the Energy Policy
Act of 1992 (42 U.S.C. 13211 et seq.), including--
(A) vehicle acquisition requirements imposed on
fleets or covered persons;
(B) administrative and recordkeeping expenses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee expenses; and
(E) any other factors or expenses the Secretary
determines to be necessary to compile reliable
estimates of the overall costs and benefits of
complying with programs under those titles for fleets,
covered persons, and the national economy;
(5) the existence of obstacles preventing compliance with
vehicle acquisition requirements and increased use of
alternative fuel in alternative fueled vehicles acquired by
fleets or covered persons; and
(6) the projected impact of amendments to the Energy Policy
Act of 1992 made by this title.
(c) Report.--Upon completion of the study under this section, the
Secretary shall submit to Congress a report that describes the results
of the study and includes any recommendations of the Secretary for
legislative or administrative changes concerning the alternative fueled
vehicle requirements under titles III, IV and V of the Energy Policy
Act of 1992 (42 U.S.C. 13211 et seq.).
SEC. 707. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUELED VEHICLE
PURCHASING REQUIREMENTS.
Section 310(b)(1) of the Energy Policy Act of 1992 (42 U.S.C.
13218(b)(1)) is amended by striking ``1 year after the date of
enactment of this subsection'' and inserting ``February 15, 2006''.
Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
PART 1--HYBRID VEHICLES
SEC. 711. HYBRID VEHICLES.
The Secretary of Energy shall accelerate efforts directed toward
the improvement of batteries and other rechargeable energy storage
systems, power electronics, hybrid systems integration, and other
technologies for use in hybrid vehicles.
SEC. 712. HYBRID RETROFIT AND ELECTRIC CONVERSION PROGRAM.
(a) Establishment.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary, shall establish
a program for awarding grants on a competitive basis to entities for
the installation of hybrid retrofit and electric conversion
technologies for combustion engine vehicles.
(b) Eligible Recipients.--A grant shall be awarded under this
section only--
(1) to a local or State governmental entity;
(2) to a for-profit or nonprofit corporation or other
person; or
(3) to 1 or more contracting entities that service
combustion engine vehicles for an entity described in paragraph
(1) or (2).
(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 per proposal or per vehicle; or
(B) involve the use of emissions control retrofit
or conversion technology.
(d) Conditions of Grant.--A grant shall be provided under this
section on the conditions that--
(1) combustion engine vehicles on which hybrid retrofit or
conversion technology are to be demonstrated--
(A) with the retrofit or conversion technology
applied will achieve low-emission standards consistent
with the Voluntary National Low Emission Vehicle
Program for Light-Duty Vehicles and Light-Duty Trucks
(40 CFR Part 86) without model year restrictions; and
(B) will be used for a minimum of 3 years;
(2) grant funds will be used for the purchase of hybrid
retrofit or conversion technology, including State taxes and
contract fees; and
(3) grant recipients will provide at least 15 percent of
the total cost of the retrofit or conversion, including the
purchase of hybrid retrofit or conversion technology and all
necessary labor for installation of the retrofit or conversion.
(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 verify--
(1) the hybrid retrofit or conversion technology to be
demonstrated; and
(2) 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--
(1) $20,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006;
(3) $45,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.
PART 2--ADVANCED VEHICLES
SEC. 721. DEFINITIONS.
In this part:
(1) Alternative fueled vehicle.--
(A) In general.--The term ``alternative fueled
vehicle'' means a vehicle propelled solely on an
alternative fuel (as defined in section 301 of the
Energy Policy Act of 1992 (42 U.S.C. 13211)).
(B) Exclusion.--The term ``alternative fueled
vehicle'' does not include a vehicle that the Secretary
determines, by regulation, does not yield substantial
environmental benefits over a vehicle operating solely
on gasoline or diesel derived from fossil fuels.
(2) Fuel cell vehicle.--The term ``fuel cell vehicle''
means a vehicle propelled by an electric motor powered by a
fuel cell system that converts chemical energy into electricity
by combining oxygen (from air) with hydrogen fuel that is
stored on the vehicle or is produced onboard by reformation of
a hydrocarbon fuel. Such fuel cell system may or may not
include the use of auxiliary energy storage systems to enhance
vehicle performance.
(3) Hybrid vehicle.--The term ``hybrid vehicle'' means a
medium or heavy duty vehicle propelled by an internal
combustion engine or heat engine using any combustible fuel and
an onboard rechargeable energy storage device.
(4) Neighborhood electric vehicle.--The term ``neighborhood
electric vehicle'' means a motor vehicle that--
(A) meets the definition of a low-speed vehicle (as
defined in part 571 of title 49, Code of Federal
Regulations);
(B) meets the definition of a zero-emission vehicle
(as defined in section 86.1702-99 of title 40, Code of
Federal Regulations);
(C) meets the requirements of Federal Motor Vehicle
Safety Standard No. 500; and
(D) has a maximum speed of not greater than 25
miles per hour.
(5) Pilot program.--The term ``pilot program'' means the
competitive grant program established under section 722.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel vehicle.--The term ``ultra-low
sulfur diesel vehicle'' means a vehicle manufactured in any of
model years 2004 through 2006 powered by a heavy-duty diesel
engine that--
(A) is fueled by diesel fuel that contains sulfur
at not more than 15 parts per million; and
(B) emits not more than the lesser of--
(i) for vehicles manufactured in model
years 2004 through 2006, 2.5 grams per brake
horsepower-hour of nonmethane hydrocarbons and
oxides of nitrogen and .01 grams per brake
horsepower-hour of particulate matter; or
(ii) the quantity of emissions of
nonmethane hydrocarbons, oxides of nitrogen,
and particulate matter of the best-performing
technology of ultra-low sulfur diesel vehicles
of the same class and application that are
commercially available.
SEC. 722. PILOT PROGRAM.
(a) Establishment.--The Secretary, in consultation with the
Secretary of Transportation, shall establish a competitive grant pilot
program, to be administered through the Clean Cities Program of the
Department of Energy, to provide not more than 15 geographically
dispersed project grants to State governments, local governments, or
metropolitan transportation authorities to carry out a project or
projects for the purposes described in subsection (b).
(b) Grant Purposes.--A grant under this section may be used for the
following purposes:
(1) The acquisition of alternative fueled vehicles or fuel
cell vehicles, including--
(A) passenger vehicles (including neighborhood
electric vehicles); and
(B) motorized 2-wheel bicycles, scooters, or other
vehicles for use by law enforcement personnel or other
State or local government or metropolitan
transportation authority employees.
(2) The acquisition of alternative fueled vehicles, hybrid
vehicles, or fuel cell vehicles, including--
(A) buses used for public transportation or
transportation to and from schools;
(B) delivery vehicles for goods or services; and
(C) ground support vehicles at public airports
(including vehicles to carry baggage or push or pull
airplanes toward or away from terminal gates).
(3) The acquisition of ultra-low sulfur diesel vehicles.
(4) Installation or acquisition of infrastructure necessary
to directly support an alternative fueled vehicle, fuel cell
vehicle, or hybrid vehicle project funded by the grant,
including fueling and other support equipment.
(5) Operation and maintenance of vehicles, infrastructure,
and equipment acquired as part of a project funded by the
grant.
(c) Applications.--
(1) Requirements.--
(A) In general.--The Secretary shall issue
requirements for applying for grants under the pilot
program.
(B) Minimum requirements.--At a minimum, the
Secretary shall require that an application for a
grant--
(i) be submitted by the head of a State or
local government or a metropolitan
transportation authority, or any combination
thereof, and a registered participant in the
Clean Cities Program of the Department of
Energy; and
(ii) include--
(I) a description of the project
proposed in the application, including
how the project meets the requirements
of this part;
(II) an estimate of the ridership
or degree of use of the project;
(III) an estimate of the air
pollution emissions reduced and fossil
fuel displaced as a result of the
project, and a plan to collect and
disseminate environmental data, related
to the project to be funded under the
grant, over the life of the project;
(IV) a description of how the
project will be sustainable without
Federal assistance after the completion
of the term of the grant;
(V) a complete description of the
costs of the project, including
acquisition, construction, operation,
and maintenance costs over the expected
life of the project;
(VI) a description of which costs
of the project will be supported by
Federal assistance under this part; and
(VII) documentation to the
satisfaction of the Secretary that
diesel fuel containing sulfur at not
more than 15 parts per million is
available for carrying out the project,
and a commitment by the applicant to
use such fuel in carrying out the
project.
(2) Partners.--An applicant under paragraph (1) may carry
out a project under the pilot program in partnership with
public and private entities.
(d) Selection Criteria.--In evaluating applications under the pilot
program, the Secretary shall--
(1) consider each applicant's previous experience with
similar projects; and
(2) give priority consideration to applications that--
(A) are most likely to maximize protection of the
environment;
(B) demonstrate the greatest commitment on the part
of the applicant to ensure funding for the proposed
project and the greatest likelihood that the project
will be maintained or expanded after Federal assistance
under this part is completed; and
(C) exceed the minimum requirements of subsection
(c)(1)(B)(ii).
(e) Pilot Project Requirements.--
(1) Maximum amount.--The Secretary shall not provide more
than $20,000,000 in Federal assistance under the pilot program
to any applicant.
(2) Cost sharing.--The Secretary shall not provide more
than 50 percent of the cost, incurred during the period of the
grant, of any project under the pilot program.
(3) Maximum period of grants.--The Secretary shall not fund
any applicant under the pilot program for more than 5 years.
(4) Deployment and distribution.--The Secretary shall seek
to the maximum extent practicable to ensure a broad geographic
distribution of project sites.
(5) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(f) Schedule.--
(1) Publication.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and elsewhere as
appropriate, a request for applications to undertake projects
under the pilot program. Applications shall be due not later
than 180 days after the date of publication of the notice.
(2) Selection.--Not later than 180 days after the date by
which applications for grants are due, the Secretary shall
select by competitive, peer reviewed proposal, all applications
for projects to be awarded a grant under the pilot program.
(g) Limit on Funding.--The Secretary shall provide not less than 20
nor more than 25 percent of the grant funding made available under this
section for the acquisition of ultra-low sulfur diesel vehicles.
SEC. 723. REPORTS TO CONGRESS.
(a) Initial Report.--Not later than 60 days after the date on which
grants are awarded under this part, the Secretary shall submit to
Congress a report containing--
(1) an identification of the grant recipients and a
description of the projects to be funded;
(2) an identification of other applicants that submitted
applications for the pilot program; and
(3) a description of the mechanisms used by the Secretary
to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the
pilot program participants and to other interested parties,
including other applicants that submitted applications.
(b) Evaluation.--Not later than 3 years after the date of enactment
of this Act, and annually thereafter until the pilot program ends, the
Secretary shall submit to Congress a report containing an evaluation of
the effectiveness of the pilot program, including--
(1) an assessment of the benefits to the environment
derived from the projects included in the pilot program; and
(2) an estimate of the potential benefits to the
environment to be derived from widespread application of
alternative fueled vehicles and ultra-low sulfur diesel
vehicles.
SEC. 724. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to carry
out this part $200,000,000, to remain available until expended.
PART 3--FUEL CELL BUSES
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.
(a) In General.--The Secretary of Energy, in consultation with the
Secretary of Transportation, shall establish a transit bus
demonstration program to make competitive, merit-based awards for 5-
year projects to demonstrate not more than 25 fuel cell transit buses
(and necessary infrastructure) in 5 geographically dispersed
localities.
(b) Preference.--In selecting projects under this section, the
Secretary of Energy shall give preference to projects that are most
likely to mitigate congestion and improve air quality.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section
$10,000,000 for each of fiscal years 2006 through 2010.
Subtitle C--Clean School Buses
SEC. 741. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Alternative fuel.--The term ``alternative fuel'' means
liquefied natural gas, compressed natural gas, liquefied
petroleum gas, hydrogen, propane, or methanol or ethanol at no
less than 85 percent by volume.
(3) Alternative fuel school bus.--The term ``alternative
fuel school bus'' means a school bus that meets all of the
requirements of this subtitle and is operated solely on an
alternative fuel.
(4) Emissions control retrofit technology.--The term
``emissions control retrofit technology'' means a particulate
filter or other emissions control equipment that is verified or
certified by the Administrator or the California Air Resources
Board as an effective emission reduction technology when
installed on an existing school bus.
(5) Idling.--The term ``idling'' means operating an engine
while remaining stationary for more than approximately 15
minutes, except that the term does not apply to routine
stoppages associated with traffic movement or congestion.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel fuel.--The term ``ultra-low
sulfur diesel fuel'' means diesel fuel that contains sulfur at
not more than 15 parts per million.
(8) Ultra-low sulfur diesel fuel school bus.--The term
``ultra-low sulfur diesel fuel school bus'' means a school bus
that meets all of the requirements of this subtitle and is
operated solely on ultra-low sulfur diesel fuel.
SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES WITH CLEAN
SCHOOL BUSES.
(a) Establishment.--The Administrator, in consultation with the
Secretary and other appropriate Federal departments and agencies, shall
establish a program for awarding grants on a competitive basis to
eligible entities for the replacement of existing school buses
manufactured before model year 1991 with alternative fuel school buses
and ultra-low sulfur diesel fuel school buses.
(b) Requirements.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall establish and
publish in the Federal Register grant requirements on
eligibility for assistance, and on implementation of the
program established under subsection (a), including
instructions for the submission of grant applications and
certification requirements to ensure compliance with this
subtitle.
(2) Application deadlines.--The requirements established
under paragraph (1) shall require submission of grant
applications not later than--
(A) in the case of the first year of program
implementation, the date that is 180 days after the
publication of the requirements in the Federal
Register; and
(B) in the case of each subsequent year, June 1 of
the year.
(c) Eligible Recipients.--A grant shall be awarded under this
section only--
(1) to 1 or more local or State governmental entities
responsible for providing school bus service to 1 or more
public school systems or responsible for the purchase of school
buses;
(2) to 1 or more contracting entities that provide school
bus service to 1 or more public school systems, if the grant
application is submitted jointly with the 1 or more school
systems to be served by the buses, except that the application
may provide that buses purchased using funds awarded shall be
owned, operated, and maintained exclusively by the 1 or more
contracting entities; or
(3) to a nonprofit school transportation association
representing private contracting entities, if the association
has notified and received approval from the 1 or more school
systems to be served by the buses.
(d) Award Deadlines.--
(1) In general.--Subject to paragraph (2), the
Administrator shall award a grant made to a qualified applicant
for a fiscal year--
(A) in the case of the first fiscal year of program
implementation, not later than the date that is 90 days
after the application deadline established under
subsection (b)(2); and
(B) in the case of each subsequent fiscal year, not
later than August 1 of the fiscal year.
(2) Insufficient number of qualified grant applications.--
If the Administrator does not receive a sufficient number of
qualified grant applications to meet the requirements of
subsection (i)(1) for a fiscal year, the Administrator shall
award a grant made to a qualified applicant under subsection
(i)(2) not later than September 30 of the fiscal year.
(e) Types of Grants.--
(1) In general.--A grant under this section shall be used
for the replacement of school buses manufactured before model
year 1991 with alternative fuel school buses and ultra-low
sulfur diesel fuel school buses.
(2) No economic benefit.--Other than the receipt of the
grant, a recipient of a grant under this section may not
receive any economic benefit in connection with the receipt of
the grant.
(3) Priority of grant applications.--The Administrator
shall give priority to applicants that propose to replace
school buses manufactured before model year 1977.
(f) Conditions of Grant.--A grant provided under this section shall
include the following conditions:
(1) School bus fleet.--All buses acquired with funds
provided under the grant shall be operated as part of the
school bus fleet for which the grant was made for a minimum of
5 years.
(2) Use of funds.--Funds provided under the grant may only
be used--
(A) to pay the cost, except as provided in
paragraph (3), of new alternative fuel school buses or
ultra-low sulfur diesel fuel school buses, including
State taxes and contract fees associated with the
acquisition of such buses; and
(B) to provide--
(i) up to 20 percent of the price of the
alternative fuel school buses acquired, for
necessary alternative fuel infrastructure if
the infrastructure will only be available to
the grant recipient; and
(ii) up to 25 percent of the price of the
alternative fuel school buses acquired, for
necessary alternative fuel infrastructure if
the infrastructure will be available to the
grant recipient and to other bus fleets.
(3) Grant recipient funds.--The grant recipient shall be
required to provide at least--
(A) in the case of a grant recipient described in
paragraph (1) or (3) of subsection (c), the lesser of--
(i) an amount equal to 15 percent of the
total cost of each bus received; or
(ii) $15,000 per bus; and
(B) in the case of a grant recipient described in
subsection (c)(2), the lesser of--
(i) an amount equal to 20 percent of the
total cost of each bus received; or
(ii) $20,000 per bus.
(4) Ultra-low sulfur diesel fuel.--In the case of a grant
recipient receiving a grant for ultra-low sulfur diesel fuel
school buses, the grant recipient shall be required to provide
documentation to the satisfaction of the Administrator that
diesel fuel containing sulfur at not more than 15 parts per
million is available for carrying out the purposes of the
grant, and a commitment by the applicant to use such fuel in
carrying out the purposes of the grant.
(5) Timing.--All alternative fuel school buses, ultra-low
sulfur diesel fuel school buses, or alternative fuel
infrastructure acquired under a grant awarded under this
section shall be purchased and placed in service as soon as
practicable.
(g) Buses.--
(1) In general.--Except as provided in paragraph (2),
funding under a grant made under this section for the
acquisition of new alternative fuel school buses or ultra-low
sulfur diesel fuel school buses shall only be used to acquire
school buses--
(A) with a gross vehicle weight of greater than
14,000 pounds;
(B) that are powered by a heavy duty engine;
(C) in the case of alternative fuel school buses
manufactured in model years 2004 through 2006, that
emit not more than 1.8 grams per brake horsepower-hour
of nonmethane hydrocarbons and oxides of nitrogen and
.01 grams per brake horsepower-hour of particulate
matter; and
(D) in the case of ultra-low sulfur diesel fuel
school buses manufactured in model years 2004 through
2006, that emit not more than 2.5 grams per brake
horsepower-hour of nonmethane hydrocarbons and oxides
of nitrogen and .01 grams per brake horsepower-hour of
particulate matter.
(2) Limitations.--A bus shall not be acquired under this
section that emits nonmethane hydrocarbons, oxides of nitrogen,
or particulate matter at a rate greater than the best
performing technology of the same class of ultra-low sulfur
diesel fuel school buses commercially available at the time the
grant is made.
(h) Deployment and Distribution.--The Administrator shall--
(1) seek, to the maximum extent practicable, to achieve
nationwide deployment of alternative fuel school buses and
ultra-low sulfur diesel fuel school buses through the program
under this section; and
(2) ensure a broad geographic distribution of grant awards,
with a goal of no State receiving more than 10 percent of the
grant funding made available under this section for a fiscal
year.
(i) Allocation of Funds.--
(1) In general.--Subject to paragraph (2), of the amount of
grant funding made available to carry out this section for any
fiscal year, the Administrator shall use--
(A) 70 percent for the acquisition of alternative
fuel school buses or supporting infrastructure; and
(B) 30 percent for the acquisition of ultra-low
sulfur diesel fuel school buses.
(2) Insufficient number of qualified grant applications.--
After the first fiscal year in which this program is in effect,
if the Administrator does not receive a sufficient number of
qualified grant applications to meet the requirements of
subparagraph (A) or (B) of paragraph (1) for a fiscal year,
effective beginning on August 1 of the fiscal year, the
Administrator shall make the remaining funds available to other
qualified grant applicants under this section.
(j) Reduction of School Bus Idling.--Each local educational agency
(as defined in section 9101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801)) that receives Federal funds under the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
is encouraged to develop a policy, consistent with the health, safety,
and welfare of students and the proper operation and maintenance of
school buses, to reduce the incidence of unnecessary school bus idling
at schools when picking up and unloading students.
(k) Annual Report.--
(1) In general.--Not later than January 31 of each year,
the Administrator shall transmit to Congress a report
evaluating implementation of the programs under this section
and section 743.
(2) Components.--The reports shall include a description
of--
(A) the total number of grant applications
received;
(B) the number and types of alternative fuel school
buses, ultra-low sulfur diesel fuel school buses, and
retrofitted buses requested in grant applications;
(C) grants awarded and the criteria used to select
the grant recipients;
(D) certified engine emission levels of all buses
purchased or retrofitted under the programs under this
section and section 743;
(E) an evaluation of the in-use emission level of
buses purchased or retrofitted under the programs under
this section and section 743; and
(F) any other information the Administrator
considers appropriate.
(l) Authorization of Appropriations.--There are authorized to be
appropriated to the Administrator to carry out this section, to remain
available until expended--
(1) $45,000,000 for fiscal year 2005;
(2) $65,000,000 for fiscal year 2006;
(3) $90,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.
SEC. 743. DIESEL RETROFIT PROGRAM.
(a) Establishment.--The Administrator, in consultation with the
Secretary, shall establish a program for awarding grants on a
competitive basis to entities for the installation of retrofit
technologies for diesel school buses.
(b) Eligible Recipients.--A grant shall be awarded under this
section only--
(1) to a local or State governmental entity responsible for
providing school bus service to 1 or more public school
systems;
(2) to 1 or more contracting entities that provide school
bus service to 1 or more public school systems, if the grant
application is submitted jointly with the 1 or more school
systems that the buses will serve, except that the application
may provide that buses purchased using funds awarded shall be
owned, operated, and maintained exclusively by the 1 or more
contracting entities; or
(3) to a nonprofit school transportation association
representing private contracting entities, if the association
has notified and received approval from the 1 or more school
systems to be served by the buses.
(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, or particulate matter per proposal or per
bus; or
(B) involve the use of emissions control retrofit
technology on diesel school buses that operate solely
on ultra-low sulfur diesel fuel.
(d) Conditions of Grant.--A grant shall be provided under this
section on the conditions that--
(1) buses 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 1991 or later;
and
(C) will be used for the transportation of school
children to and from school for a minimum of 5 years;
(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 15 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.
(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 verify--
(1) the retrofit emissions-control technology to be
demonstrated;
(2) that buses 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; and
(3) 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--
(1) $20,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006;
(3) $45,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.
SEC. 744. FUEL CELL SCHOOL BUSES.
(a) Establishment.--The Secretary shall establish a program for
entering into cooperative agreements--
(1) with private sector fuel cell bus developers for the
development of fuel cell-powered school buses; and
(2) subsequently, with not less than 2 units of local
government using natural gas-powered school buses and such
private sector fuel cell bus developers to demonstrate the use
of fuel cell-powered school buses.
(b) Cost Sharing.--The non-Federal contribution for activities
funded under this section shall be not less than--
(1) 20 percent for fuel infrastructure development
activities; and
(2) 50 percent for demonstration activities and for
development activities not described in paragraph (1).
(c) Reports to Congress.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall transmit to Congress a
report that--
(1) evaluates the process of converting natural gas
infrastructure to accommodate fuel cell-powered school buses;
and
(2) assesses the results of the development and
demonstration program under this section.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $25,000,000 for
the period of fiscal years 2005 through 2007.
Subtitle D--Miscellaneous
SEC. 751. RAILROAD EFFICIENCY.
(a) Establishment.--The Secretary of Energy shall, in cooperation
with the Secretary of Transportation and the Administrator of the
Environmental Protection Agency, establish a cost-shared, public-
private research partnership involving the Federal Government, railroad
carriers, locomotive manufacturers and equipment suppliers, and the
Association of American Railroads, to develop and demonstrate railroad
locomotive technologies that increase fuel economy, reduce emissions,
and lower costs of operation.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section--
(1) $25,000,000 for fiscal year 2006;
(2) $35,000,000 for fiscal year 2007; and
(3) $50,000,000 for fiscal year 2008.
SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall submit to Congress a report on the experience
of the Administrator with the trading of mobile source emission
reduction credits for use by owners and operators of stationary source
emission sources to meet emission offset requirements within a
nonattainment area.
(b) Contents.--The report shall describe--
(1) projects approved by the Administrator that include the
trading of mobile source emission reduction credits for use by
stationary sources in complying with offset requirements,
including a description of--
(A) project and stationary sources location;
(B) volumes of emissions offset and traded;
(C) the sources of mobile emission reduction
credits; and
(D) if available, the cost of the credits;
(2) the significant issues identified by the Administrator
in consideration and approval of trading in the projects;
(3) the requirements for monitoring and assessing the air
quality benefits of any approved project;
(4) the statutory authority on which the Administrator has
based approval of the projects;
(5) an evaluation of how the resolution of issues in
approved projects could be used in other projects; and
(6) any other issues that the Administrator considers
relevant to the trading and generation of mobile source
emission reduction credits for use by stationary sources or for
other purposes.
SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.
(a) In General.--Not later than 60 days after the date of enactment
of this Act, the Administrator of the Federal Aviation Administration
and the Administrator of the Environmental Protection Agency shall
jointly initiate a study to identify--
(1) the impact of aircraft emissions on air quality in
nonattainment areas; and
(2) ways to promote fuel conservation measures for aviation
to--
(A) enhance fuel efficiency; and
(B) reduce 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 the emissions on human
health.
SEC. 754. DIESEL FUELED VEHICLES.
(a) Definition of Tier 2 Emission Standards.--In this section, the
term ``tier 2 emission standards'' means the motor vehicle emission
standards that apply to passenger cars, light trucks, and larger
passenger vehicles manufactured after the 2003 model year, as issued on
February 10, 2000, by the Administrator of the Environmental Protection
Agency under sections 202 and 211 of the Clean Air Act (42 U.S.C. 7521,
7545).
(b) Diesel Combustion and After-Treatment Technologies.--The
Secretary of Energy shall accelerate efforts to improve diesel
combustion and after-treatment technologies for use in diesel fueled
motor vehicles.
(c) Goals.--The Secretary shall carry out subsection (b) with a
view toward achieving the following goals:
(1) Developing and demonstrating diesel technologies that,
not later than 2010, meet the following standards:
(A) Tier 2 emission standards.
(B) The heavy-duty emissions standards of 2007 that
are applicable to heavy-duty vehicles under regulations
issued by the Administrator of the Environmental
Protection Agency as of the date of enactment of this
Act.
(2) Developing the next generation of low-emission, high
efficiency diesel engine technologies, including homogeneous
charge compression ignition technology.
SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.
(a) In General.--Not later that 180 days after the date of
enactment of this Act, the Secretary shall initiate a partnership with
diesel engine, diesel fuel injection system, and diesel vehicle
manufacturers and diesel and biodiesel fuel providers, to include
biodiesel testing in advanced diesel engine and fuel system technology.
(b) Scope.--The program shall provide for testing to determine the
impact of biodiesel from different sources on current and future
emission control technologies, with emphasis on--
(1) the impact of biodiesel on emissions warranty, in-use
liability, and antitampering provisions;
(2) the impact of long-term use of biodiesel on engine
operations;
(3) the options for optimizing these technologies for both
emissions and performance when switching between biodiesel and
diesel fuel; and
(4) the impact of using biodiesel in these fueling systems
and engines when used as a blend with 2006 Environmental
Protection Agency-mandated diesel fuel containing a maximum of
15-parts-per-million sulfur content.
(c) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall provide an interim report to Congress on
the findings of the program, including a comprehensive analysis of
impacts from biodiesel on engine operation for both existing and
expected future diesel technologies, and recommendations for ensuring
optimal emissions reductions and engine performance with biodiesel.
(d) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 for each of fiscal years 2006 through 2010 to
carry out this section.
(e) Definition.--For purposes of this section, the term
``biodiesel'' means a diesel fuel substitute produced from nonpetroleum
renewable resources that meets the registration requirements for fuels
and fuel additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets
the American Society for Testing and Materials D6751-02a Standard
Specification for Biodiesel Fuel (B100) Blend Stock for Distillate
Fuels.
SEC. 759. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.
(a) Ultra-Efficient Engine Technology Partnership.--The Secretary
of Energy shall enter into a cooperative agreement with the National
Aeronautics and Space Administration for the development of ultra-
efficient engine technology for aircraft.
(b) Performance Objective.--The Secretary of Energy shall establish
the following performance objectives for the program set forth in
subsection (a):
(1) A fuel efficiency increase of 10 percent.
(2) A reduction in the impact of landing and takeoff
nitrogen oxides emissions on local air quality of 70 percent.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
$45,000,000 for each of the fiscal years 2006, 2007, 2008, 2009, and
2010.
Subtitle E--Automobile Efficiency
SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND
ENFORCEMENT OF FUEL ECONOMY STANDARDS.
In addition to any other funds authorized by law, there are
authorized to be appropriated to the National Highway Traffic Safety
Administration to carry out its obligations with respect to average
fuel economy standards $2,000,000 for each of fiscal years 2006 through
2010.
SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE
AVERAGE FUEL ECONOMY.
Section 32902(f) of title 49, United States Code, is amended to
read as follows:
``(f) Considerations for Decisions on Maximum Feasible Average Fuel
Economy.--When deciding maximum feasible average fuel economy under
this section, the Secretary of Transportation shall consider the
following matters:
``(1) Technological feasibility.
``(2) Economic practicability.
``(3) The effect of other motor vehicle standards of the
Government on fuel economy.
``(4) The need of the United States to conserve energy.
``(5) The effects of fuel economy standards on passenger
automobiles, nonpassenger automobiles, and occupant safety.
``(6) The effects of compliance with average fuel economy
standards on levels of automobile industry employment in the
United States.''.
SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE
FUELED VEHICLES.
(a) Manufacturing Incentives.--Section 32905 of title 49, United
States Code, is amended--
(1) in each of subsections (b) and (d), by striking ``1993-
2004'' and inserting ``1993-2010'';
(2) in subsection (f), by striking ``2001'' and inserting
``2007''; and
(3) in subsection (f)(1), by striking ``2004'' and
inserting ``2010''.
(b) Maximum Fuel Economy Increase.--Subsection (a)(1) of section
32906 of title 49, United States Code, is amended--
(1) in subparagraph (A), by striking ``the model years
1993-2004'' and inserting ``model years 1993-2010''; and
(2) in subparagraph (B), by striking ``the model years
2005-2008'' and inserting ``model years 2011-2014''.
SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR
AUTOMOBILES.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the Administrator of the National Highway
Traffic Safety Administration shall initiate a study of the feasibility
and effects of reducing by model year 2014, by a significant
percentage, the amount of fuel consumed by automobiles.
(b) Subjects of Study.--The study under this section shall
include--
(1) examination of, and recommendation of alternatives to,
the policy under current Federal law of establishing average
fuel economy standards for automobiles and requiring each
automobile manufacturer to comply with average fuel economy
standards that apply to the automobiles it manufactures;
(2) examination of how automobile manufacturers could
contribute toward achieving the reduction referred to in
subsection (a);
(3) examination of the potential of fuel cell technology in
motor vehicles in order to determine the extent to which such
technology may contribute to achieving the reduction referred
to in subsection (a); and
(4) examination of the effects of the reduction referred to
in subsection (a) on--
(A) gasoline supplies;
(B) the automobile industry, including sales of
automobiles manufactured in the United States;
(C) motor vehicle safety; and
(D) air quality.
(c) Report.--The Administrator shall submit to Congress a report on
the findings, conclusion, and recommendations of the study under this
section by not later than 1 year after the date of the enactment of
this Act.
TITLE VIII--HYDROGEN
SEC. 801. DEFINITIONS.
In this title:
(1) Advisory committee.--The term ``Advisory Committee''
means the Hydrogen Technical and Fuel Cell Advisory Committee
established under section 805.
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) Fuel cell.--The term ``fuel cell'' means a device that
directly converts the chemical energy of a fuel and an oxidant
into electricity by an electrochemical process taking place at
separate electrodes in the device.
(4) Infrastructure.--The term ``infrastructure'' means the
equipment, systems, or facilities used to produce, distribute,
deliver, or store hydrogen.
(5) Light duty vehicle.--The term ``light duty vehicle''
means a car or truck classified by the Department of
Transportation as a Class I or IIA vehicle.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 802. PLAN.
Not later than 6 months after the date of enactment of this Act,
the Secretary shall transmit to Congress a coordinated plan for the
programs described in this title and any other programs of the
Department that are directly related to fuel cells or hydrogen. The
plan shall describe, at a minimum--
(1) the agenda for the next 5 years for the programs
authorized under this title, including the agenda for each
activity enumerated in section 803(a);
(2) the types of entities that will carry out the
activities under this title and what role each entity is
expected to play;
(3) the milestones that will be used to evaluate the
programs for the next 5 years;
(4) the most significant technical and nontechnical hurdles
that stand in the way of achieving the goals described in
section 803(b), and how the programs will address those
hurdles; and
(5) the policy assumptions that are implicit in the plan,
including any assumptions that would affect the sources of
hydrogen or the marketability of hydrogen-related products.
SEC. 803. PROGRAMS.
(a) Activities.--The Secretary, in partnership with the private
sector, shall conduct programs to address--
(1) production of hydrogen from diverse energy sources,
including--
(A) fossil fuels, which may include carbon capture
and sequestration;
(B) hydrogen-carrier fuels (including ethanol and
methanol);
(C) renewable energy resources, including biomass;
and
(D) nuclear energy;
(2) use of hydrogen for commercial, industrial, and
residential electric power generation;
(3) safe delivery of hydrogen or hydrogen-carrier fuels,
including--
(A) transmission by pipeline and other distribution
methods; and
(B) convenient and economic refueling of vehicles
either at central refueling stations or through
distributed on-site generation;
(4) advanced vehicle technologies, including--
(A) engine and emission control systems;
(B) energy storage, electric propulsion, and hybrid
systems;
(C) automotive materials; and
(D) other advanced vehicle technologies;
(5) storage of hydrogen or hydrogen-carrier fuels,
including development of materials for safe and economic
storage in gaseous, liquid, or solid form at refueling
facilities and onboard vehicles;
(6) development of safe, durable, affordable, and efficient
fuel cells, including fuel-flexible fuel cell power systems,
improved manufacturing processes, high-temperature membranes,
cost-effective fuel processing for natural gas, fuel cell stack
and system reliability, low temperature operation, and cold
start capability;
(7) development, after consultation with the private
sector, of necessary codes and standards (including
international codes and standards and voluntary consensus
standards adopted in accordance with OMB Circular A-119) and
safety practices for the production, distribution, storage, and
use of hydrogen, hydrogen-carrier fuels, and related products;
(8) a public education program to develop improved
knowledge and acceptability of hydrogen-based systems; and
(9) the ability of domestic automobile manufacturers to
manufacture commercially available competitive hybrid vehicle
technologies in the United States.
(b) Program Goals.--
(1) Vehicles.--For vehicles, the goals of the program are--
(A) to enable a commitment by automakers no later
than year 2015 to offer safe, affordable, and
technically viable hydrogen fuel cell vehicles in the
mass consumer market; and
(B) to enable production, delivery, and acceptance
by consumers of model year 2020 hydrogen fuel cell and
other hydrogen-powered vehicles that will have--
(i) a range of at least 300 miles;
(ii) improved performance and ease of
driving;
(iii) safety and performance comparable to
vehicle technologies in the market; and
(iv) when compared to light duty vehicles
in model year 2003--
(I) fuel economy that is
substantially higher;
(II) substantially lower emissions
of air pollutants; and
(III) equivalent or improved
vehicle fuel system crash integrity and
occupant protection.
(2) Hydrogen energy and energy infrastructure.--For
hydrogen energy and energy infrastructure, the goals of the
program are to enable a commitment not later than 2015 that
will lead to infrastructure by 2020 that will provide--
(A) safe and convenient refueling;
(B) improved overall efficiency;
(C) widespread availability of hydrogen from
domestic energy sources through--
(i) production, with consideration of
emissions levels;
(ii) delivery, including transmission by
pipeline and other distribution methods for
hydrogen; and
(iii) storage, including storage in surface
transportation vehicles;
(D) hydrogen for fuel cells, internal combustion
engines, and other energy conversion devices for
portable, stationary, and transportation applications;
and
(E) other technologies consistent with the
Department's plan.
(3) Fuel cells.--The goals for fuel cells and their
portable, stationary, and transportation applications are to
enable--
(A) safe, economical, and environmentally sound
hydrogen fuel cells;
(B) fuel cells for light duty and other vehicles;
and
(C) other technologies consistent with the
Department's plan.
(c) Demonstration.--In carrying out the programs under this
section, the Secretary shall fund a limited number of demonstration
projects, consistent with a determination of the maturity, cost-
effectiveness, and environmental impacts of technologies supporting
each project. In selecting projects under this subsection, the
Secretary shall, to the extent practicable and in the public interest,
select projects that--
(1) involve using hydrogen and related products at existing
facilities or installations, such as existing office buildings,
military bases, vehicle fleet centers, transit bus authorities,
or units of the National Park System;
(2) depend on reliable power from hydrogen to carry out
essential activities;
(3) lead to the replication of hydrogen technologies and
draw such technologies into the marketplace;
(4) include vehicle, portable, and stationary
demonstrations of fuel cell and hydrogen-based energy
technologies;
(5) address the interdependency of demand for hydrogen fuel
cell applications and hydrogen fuel infrastructure;
(6) raise awareness of hydrogen technology among the
public;
(7) facilitate identification of an optimum technology
among competing alternatives;
(8) address distributed generation using renewable sources;
and
(9) address applications specific to rural or remote
locations, including isolated villages and islands, the
National Park System, and tribal entities.
The Secretary shall give preference to projects which address multiple
elements contained in paragraphs (1) through (9).
(d) Deployment.--In carrying out the programs under this section,
the Secretary shall, in partnership with the private sector, conduct
activities to facilitate the deployment of hydrogen energy and energy
infrastructure, fuel cells, and advanced vehicle technologies.
(e) Funding.--
(1) In general.--The Secretary shall carry out the programs
under this section using a competitive, merit-based review
process and consistent with the generally applicable Federal
laws and regulations governing awards of financial assistance,
contracts, or other agreements.
(2) Research centers.--Activities under this section may be
carried out by funding nationally recognized university-based
or Federal laboratory research centers.
(f) Cost Sharing.--
(1) Research and development.--Except as otherwise provided
in this title, for research and development programs carried
out under this title the Secretary shall require a commitment
from non-Federal sources of at least 20 percent of the cost of
the project. The Secretary may reduce or eliminate the non-
Federal requirement under this paragraph if the Secretary
determines that the research and development is of a basic or
fundamental nature or involves technical analyses or
educational activities.
(2) Demonstration and commercial application.--Except as
otherwise provided in this title, the Secretary shall require
at least 50 percent of the costs directly and specifically
related to any demonstration or commercial application project
under this title to be provided from non-Federal sources. The
Secretary may reduce the non-Federal requirement under this
paragraph if the Secretary determines that the reduction is
necessary and appropriate considering the technological risks
involved in the project and is necessary to meet the objectives
of this title.
(3) Calculation of amount.--In calculating the amount of
the non-Federal commitment under paragraph (1) or (2), the
Secretary may include personnel, services, equipment, and other
resources.
(4) Size of non-federal share.--The Secretary may consider
the size of the non-Federal share in selecting projects.
(g) Disclosure.--Section 623 of the Energy Policy Act of 1992 (42
U.S.C. 13293) relating to the protection of information shall apply to
projects carried out through grants, cooperative agreements, or
contracts under this title.
SEC. 804. INTERAGENCY TASK FORCE.
(a) Establishment.--Not later than 120 days after the date of
enactment of this Act, the President shall establish an interagency
task force chaired by the Secretary with representatives from each of
the following:
(1) The Office of Science and Technology Policy within the
Executive Office of the President.
(2) The Department of Transportation.
(3) The Department of Defense.
(4) The Department of Commerce (including the National
Institute of Standards and Technology).
(5) The Department of State.
(6) The Environmental Protection Agency.
(7) The National Aeronautics and Space Administration.
(8) Other Federal agencies as the Secretary determines
appropriate.
(b) Duties.--
(1) Planning.--The interagency task force shall work
toward--
(A) a safe, economical, and environmentally sound
fuel infrastructure for hydrogen and hydrogen-carrier
fuels, including an infrastructure that supports buses
and other fleet transportation;
(B) fuel cells in government and other
applications, including portable, stationary, and
transportation applications;
(C) distributed power generation, including the
generation of combined heat, power, and clean fuels
including hydrogen;
(D) uniform hydrogen codes, standards, and safety
protocols; and
(E) vehicle hydrogen fuel system integrity safety
performance.
(2) Activities.--The interagency task force may organize
workshops and conferences, may issue publications, and may
create databases to carry out its duties. The interagency task
force shall--
(A) foster the exchange of generic, nonproprietary
information and technology among industry, academia,
and government;
(B) develop and maintain an inventory and
assessment of hydrogen, fuel cells, and other advanced
technologies, including the commercial capability of
each technology for the economic and environmentally
safe production, distribution, delivery, storage, and
use of hydrogen;
(C) integrate technical and other information made
available as a result of the programs and activities
under this title;
(D) promote the marketplace introduction of
infrastructure for hydrogen fuel vehicles; and
(E) conduct an education program to provide
hydrogen and fuel cell information to potential end-
users.
(c) Agency Cooperation.--The heads of all agencies, including those
whose agencies are not represented on the interagency task force, shall
cooperate with and furnish information to the interagency task force,
the Advisory Committee, and the Department.
SEC. 805. ADVISORY COMMITTEE.
(a) Establishment.--The Hydrogen Technical and Fuel Cell Advisory
Committee is established to advise the Secretary on the programs and
activities under this title.
(b) Membership.--
(1) Members.--The Advisory Committee shall be comprised of
not fewer than 12 nor more than 25 members. The members shall
be appointed by the Secretary to represent domestic industry,
academia, professional societies, government agencies, Federal
laboratories, previous advisory panels, and financial,
environmental, and other appropriate organizations based on the
Department's assessment of the technical and other
qualifications of committee members and the needs of the
Advisory Committee.
(2) Terms.--The term of a member of the Advisory Committee
shall not be more than 3 years. The Secretary may appoint
members of the Advisory Committee in a manner that allows the
terms of the members serving at any time to expire at spaced
intervals so as to ensure continuity in the functioning of the
Advisory Committee. A member of the Advisory Committee whose
term is expiring may be reappointed.
(3) Chairperson.--The Advisory Committee shall have a
chairperson, who is elected by the members from among their
number.
(c) Review.--The Advisory Committee shall review and make
recommendations to the Secretary on--
(1) the implementation of programs and activities under
this title;
(2) the safety, economical, and environmental consequences
of technologies for the production, distribution, delivery,
storage, or use of hydrogen energy and fuel cells; and
(3) the plan under section 802.
(d) Response.--
(1) Consideration of recommendations.--The Secretary shall
consider, but need not adopt, any recommendations of the
Advisory Committee under subsection (c).
(2) Biennial report.--The Secretary shall transmit a
biennial report to Congress describing any recommendations made
by the Advisory Committee since the previous report. The report
shall include a description of how the Secretary has
implemented or plans to implement the recommendations, or an
explanation of the reasons that a recommendation will not be
implemented. The report shall be transmitted along with the
President's budget proposal.
(e) Support.--The Secretary shall provide resources necessary in
the judgment of the Secretary for the Advisory Committee to carry out
its responsibilities under this title.
SEC. 806. EXTERNAL REVIEW.
(a) Plan.--The Secretary shall enter into an arrangement with the
National Academy of Sciences to review the plan prepared under section
802, which shall be completed not later than 6 months after the Academy
receives the plan. Not later than 45 days after receiving the review,
the Secretary shall transmit the review to Congress along with a plan
to implement the review's recommendations or an explanation of the
reasons that a recommendation will not be implemented.
(b) Additional Review.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which the
Academy will review the programs under section 803 during the fourth
year following the date of enactment of this Act. The Academy's review
shall include the research priorities and technical milestones, and
evaluate the progress toward achieving them. The review shall be
completed not later than 5 years after the date of enactment of this
Act. Not later than 45 days after receiving the review, the Secretary
shall transmit the review to Congress along with a plan to implement
the review's recommendations or an explanation for the reasons that a
recommendation will not be implemented.
SEC. 807. MISCELLANEOUS PROVISIONS.
(a) Representation.--The Secretary may represent the United States
interests with respect to activities and programs under this title, in
coordination with the Department of Transportation, the National
Institute of Standards and Technology, and other relevant Federal
agencies, before governments and nongovernmental organizations
including--
(1) other Federal, State, regional, and local governments
and their representatives;
(2) industry and its representatives, including members of
the energy and transportation industries; and
(3) in consultation with the Department of State, foreign
governments and their representatives including international
organizations.
(b) Regulatory Authority.--Nothing in this title shall be construed
to alter the regulatory authority of the Department.
SEC. 808. SAVINGS CLAUSE.
Nothing in this title shall be construed to affect the authority of
the Secretary of Transportation that may exist prior to the date of
enactment of this Act with respect to--
(1) research into, and regulation of, hydrogen-powered
vehicles fuel systems integrity, standards, and safety under
subtitle VI of title 49, United States Code;
(2) regulation of hazardous materials transportation under
chapter 51 of title 49, United States Code;
(3) regulation of pipeline safety under chapter 601 of
title 49, United States Code;
(4) encouragement and promotion of research, development,
and deployment activities relating to advanced vehicle
technologies under section 5506 of title 49, United States
Code;
(5) regulation of motor vehicle safety under chapter 301 of
title 49, United States Code;
(6) automobile fuel economy under chapter 329 of title 49,
United States Code; or
(7) representation of the interests of the United States
with respect to the activities and programs under the authority
of title 49, United States Code.
SEC. 809. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to carry
out this title, in addition to any amounts made available for these
purposes under other Acts--
(1) $546,000,000 for fiscal year 2006;
(2) $750,000,000 for fiscal year 2007;
(3) $850,000,000 for fiscal year 2008;
(4) $900,000,000 for fiscal year 2009; and
(5) $1,000,000,000 for fiscal year 2010.
SEC. 810. SOLAR AND WIND TECHNOLOGIES.
(a) Solar Energy Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this subtitle related to solar energy
technologies and for implementing the recommendations related
to solar energy technologies that are included in the report
transmitted under subsection (c);
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically diverse
to demonstrate the production of hydrogen at solar energy
facilities, including one demonstration project at a national
laboratory or institution of higher education;
(3) establish a research and development program--
(A) to develop optimized concentrating solar power
devices that may be used for the production of both
electricity and hydrogen; and
(B) to evaluate the use of thermochemical cycles
for hydrogen production at the temperatures attainable
with concentrating solar power devices;
(4) coordinate with activities sponsored by the Department
of Energy's Office of Nuclear Energy, Science, and Technology
on high-temperature materials, thermochemical cycles, and
economic issues related to solar energy;
(5) provide for the construction and operation of new
concentrating solar power devices or solar power cogeneration
facilities that produce hydrogen either concurrently with, or
independently of, the production of electricity;
(6) support existing facilities and research programs
dedicated to the development and advancement of concentrating
solar power devices; and
(7) establish a program--
(A) to research and develop methods that use
electricity from photovoltaic devices for the onsite
production of hydrogen, such that no intermediate
transmission or distribution infrastructure is required
or used and future demand growth may be accommodated;
(B) to evaluate the economics of small-scale
electrolysis for hydrogen production; and
(C) to research the potential of modular
photovoltaic devices for the development of a hydrogen
infrastructure, the security implications of a hydrogen
infrastructure, and the benefits potentially derived
from a hydrogen infrastructure.
(b) Wind Energy Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this subtitle related to wind energy technologies
and for implementing the recommendations related to wind energy
technologies that are included in the report transmitted under
subsection (c); and
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically diverse
to demonstrate the production of hydrogen at existing wind
energy facilities, including one demonstration project at a
national laboratory or institution of higher education.
(c) Program Support.--The Secretary shall support research programs
at institutions of higher education for the development of solar energy
technologies and wind energy technologies for the production of
hydrogen. The research programs supported under this subsection shall--
(1) enhance fellowship and faculty assistance programs;
(2) provide support for fundamental research;
(3) encourage collaborative research among industry,
national laboratories, and institutions of higher education;
(4) support communication and outreach; and
(5) to the greatest extent possible--
(A) be located in geographic areas that are
regionally and climatically diverse; and
(B) be located at part B institutions, minority
institutions, and institutions of higher education
located in States participating in the Experimental
Program to Stimulate Competitive Research of the
Department of Energy.
(d) Institutions of Higher Education and National Laboratory
Interactions.--In conjunction with the programs supported under this
section, the Secretary shall develop sabbatical, fellowship, and
visiting scientist programs to encourage national laboratories and
institutions of higher education to share and exchange personnel.
(e) Definitions.--For purposes of this section--
(1) the term ``concentrating solar power devices'' means
devices that concentrate the power of the sun by reflection or
refraction to improve the efficiency of a photovoltaic or
thermal generation process;
(2) the term ``institution of higher education'' has the
meaning given to that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a));
(3) the term ``minority institution'' has the meaning given
to that term in section 365 of the Higher Education Act of 1965
(20 U.S.C. 1067k);
(4) the term ``part B institution'' has the meaning given
to that term in section 322 of the Higher Education Act of 1965
(20 U.S.C. 1061); and
(5) the term ``photovoltaic devices'' means devices that
convert light directly into electricity through a solid-state,
semiconductor process.
TITLE IX--STUDIES AND PROGRAM SUPPORT
SEC. 901. GOALS.
(a) In General.--The Secretary shall conduct a balanced set of
programs of study to support Federal energy policy and programs by the
Department. Such programs shall be focused on--
(1) increasing the efficiency of all energy intensive
sectors through conservation and improved technologies;
(2) promoting diversity of energy supply;
(3) decreasing the Nation's dependence on foreign energy
supplies;
(4) improving United States energy security; and
(5) decreasing the environmental impact of energy-related
activities.
(b) Goals.--The Secretary shall publish measurable 5-year cost and
performance-based goals with each annual budget submission in at least
the following areas:
(1) Energy efficiency for buildings, energy-consuming
industries, and vehicles.
(2) Electric energy generation (including distributed
generation), transmission, and storage.
(3) Renewable energy technologies including wind power,
photovoltaics, solar thermal systems, geothermal energy,
hydrogen-fueled systems, biomass-based systems, biofuels, and
hydropower.
(4) Fossil energy including power generation, onshore and
offshore oil and gas resource recovery, and transportation.
(5) Nuclear energy including programs for existing and
advanced reactors and education of future specialists.
(c) Public Comment.--The Secretary shall provide mechanisms for
input on the annually published goals from industry, university, and
other public sources.
(d) Effect of Goals.--
(1) No new authority or requirement.--Nothing in subsection
(a) or the annually published goals shall--
(A) create any new--
(i) authority for any Federal agency; or
(ii) requirement for any other person;
(B) be used by a Federal agency to support the
establishment of regulatory standards or regulatory
requirements; or
(C) alter the authority of the Secretary to make
grants or other awards.
(2) No limitation.--Nothing in this subsection shall be
construed to limit the authority of the Secretary to impose
conditions on grants or other awards based on the goals in
subsection (a) or any subsequent modification thereto.
SEC. 902. DEFINITIONS.
For purposes of this title:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Departmental mission.--The term ``departmental
mission'' means any of the functions vested in the Secretary of
Energy by the Department of Energy Organization Act (42 U.S.C.
7101 et seq.) or other law.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given that
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
Subtitle A--Energy Efficiency
SEC. 904. ENERGY EFFICIENCY.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for energy efficiency and conservation
activities, including activities authorized under this subtitle:
(1) For fiscal year 2006, $616,000,000.
(2) For fiscal year 2007, $695,000,000.
(3) For fiscal year 2008, $772,000,000.
(4) For fiscal year 2009, $865,000,000.
(5) For fiscal year 2010, $920,000,000.
(b) Allocations.--From amounts authorized under subsection (a), the
following sums are authorized:
(1) For activities under section 905--
(A) for fiscal year 2006, $20,000,000;
(B) for fiscal year 2007, $30,000,000;
(C) for fiscal year 2008, $50,000,000;
(D) for fiscal year 2009, $50,000,000; and
(E) for fiscal year 2010, $50,000,000.
(2) For activities under section 907--
(A) for fiscal year 2006, $4,000,000; and
(B) for each of fiscal years 2007 through 2010,
$7,000,000.
(3) For activities under section 908--
(A) for fiscal year 2006, $20,000,000;
(B) for fiscal year 2007, $25,000,000;
(C) for fiscal year 2008, $30,000,000;
(D) for fiscal year 2009, $35,000,000; and
(E) for fiscal year 2010, $40,000,000.
(4) For activities under section 909, $2,000,000 for each
of fiscal years 2007 through 2010.
(c) Extended Authorization.--There are authorized to be
appropriated to the Secretary for activities under section 905,
$50,000,000 for each of fiscal years 2011 through 2015.
(d) Limitation on Use of Funds.--None of the funds authorized to be
appropriated under this section may be used for--
(1) the issuance and implementation of energy efficiency
regulations;
(2) the Weatherization Assistance Program under part A of
title IV of the Energy Conservation and Production Act (42
U.S.C. 6861 et seq.);
(3) the State Energy Program under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321 et
seq.); or
(4) the Federal Energy Management Program under part 3 of
title V of the National Energy Conservation Policy Act (42
U.S.C. 8251 et seq.).
SEC. 905. NEXT GENERATION LIGHTING INITIATIVE.
(a) In General.--The Secretary shall carry out a Next Generation
Lighting Initiative in accordance with this section to support
activities related to advanced solid-state lighting technologies based
on white light emitting diodes.
(b) Objectives.--The objectives of the initiative shall be to
develop advanced solid-state organic and inorganic lighting
technologies based on white light emitting diodes that, compared to
incandescent and fluorescent lighting technologies, are longer lasting;
more energy-efficient; and cost-competitive, and have less
environmental impact.
(c) Industry Alliance.--The Secretary shall, not later than 3
months after the date of enactment of this section, competitively
select an Industry Alliance to represent participants that are private,
for-profit firms which, as a group, are broadly representative of
United States solid state lighting expertise as a whole.
(d) Study.--
(1) In general.--The Secretary shall carry out the
activities of the Next Generation Lighting Initiative through
competitively awarded grants, including to Industry Alliance
participants, National Laboratories, and institutions of higher
education.
(2) Assistance from the industry alliance.--The Secretary
shall annually solicit from the Industry Alliance--
(A) comments to identify solid-state lighting
technology needs;
(B) assessment of the progress of the Initiative's
research activities; and
(C) assistance in annually updating solid-state
lighting technology roadmaps.
(3) Availability of information and roadmaps.--The
information and roadmaps under paragraph (2) shall be available
to the public and public response shall be solicited by the
Secretary.
(e) Intellectual Property.--The Secretary may require, in
accordance with the authorities provided in section 202(a)(ii) of title
35, United States Code, section 152 of the Atomic Energy Act of 1954
(42 U.S.C. 2182), and section 9 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5908), that--
(1) for any new invention resulting from activities under
subsection (d)--
(A) the Industry Alliance members that are active
participants in research, development, and
demonstration activities related to the advanced solid-
state lighting technologies that are the subject of
this section shall be granted first option to negotiate
with the invention owner nonexclusive licenses and
royalties for uses of the invention related to solid-
state lighting on terms that are reasonable under the
circumstances; and
(B)(i) for 1 year after a United States patent is
issued for the invention, the patent holder shall not
negotiate any license or royalty with any entity that
is not a participant in the Industry Alliance described
in subparagraph (A); and
(ii) during the year described in clause (i), the
invention owner shall negotiate nonexclusive licenses
and royalties in good faith with any interested
participant in the Industry Alliance described in
subparagraph (A); and
(2) such other terms as the Secretary determines are
required to promote accelerated commercialization of inventions
made under the Initiative.
(f) National Academy Review.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to conduct periodic
reviews of the Next Generation Lighting Initiative. The Academy shall
review the priorities, technical milestones, and plans for technology
transfer and progress towards achieving them. The Secretary shall
consider the results of such reviews in evaluating the information
obtained under subsection (d)(2).
(g) Definitions.--As used in this section:
(1) Advanced solid-state lighting.--The term ``advanced
solid-state lighting'' means a semiconducting device package
and delivery system that produces white light using externally
applied voltage.
(2) Industry alliance.--The term ``Industry Alliance''
means an entity selected by the Secretary under subsection (c).
(3) White light emitting diode.--The term ``white light
emitting diode'' means a semiconducting package, utilizing
either organic or inorganic materials, that produces white
light using externally applied voltage.
SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) Interagency Group.--Not later than 90 days after the date of
enactment of this Act, the President shall establish an interagency
group to develop, in coordination with the advisory committee
established under subsection (e), a National Building Performance
Initiative (in this section referred to as the ``Initiative''). The
interagency group shall be co-chaired by appropriate officials of the
Department and the Department of Commerce, who shall jointly arrange
for the provision of necessary administrative support to the group.
(b) Integration of Efforts.--The Initiative, working with the
National Institute of Building Sciences, shall integrate Federal,
State, and voluntary private sector efforts to reduce the costs of
construction, operation, maintenance, and renovation of commercial,
industrial, institutional, and residential buildings.
(c) Department of Energy Role.--Within the Federal portion of the
Initiative, the Department shall be the lead agency for all aspects of
building performance related to use and conservation of energy.
(d) Advisory Committee.--
(1) Establishment.--The Secretary, in consultation with the
Secretary of Commerce and the Director of the Office of Science
and Technology Policy, shall establish an advisory committee
to--
(A) analyze and provide recommendations on
potential private sector roles and participation in the
Initiative; and
(B) review and provide recommendations on the plan
described in subsection (c).
(2) Membership.--Membership of the advisory committee shall
include representatives with a broad range of appropriate
expertise, including expertise in--
(A) building technology;
(B) architecture, engineering, and building
materials and systems; and
(C) the residential, commercial, and industrial
sectors of the construction industry.
(e) Construction.--Nothing in this section provides any Federal
agency with new authority to regulate building performance.
SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.
(a) Definitions.--For purposes of this section:
(1) Associated equipment.--The term ``associated
equipment'' means equipment located where the batteries will be
used that is necessary to enable the use of the energy stored
in the batteries.
(2) Battery.--The term ``battery'' means an energy storage
device that previously has been used to provide motive power in
a vehicle powered in whole or in part by electricity.
(b) Program.--The Secretary shall establish and conduct a program
of study for the secondary use of batteries if the Secretary finds that
there are sufficient numbers of such batteries to support the program.
The program shall be--
(1) designed to demonstrate the use of batteries in
secondary applications, including utility and commercial power
storage and power quality;
(2) structured to evaluate the performance, including
useful service life and costs, of such batteries in field
operations, and the necessary supporting infrastructure,
including reuse and disposal of batteries; and
(3) coordinated with ongoing secondary battery use programs
at the National Laboratories and in industry.
(c) Solicitation.--Not later than 180 days after the date of
enactment of this Act, if the Secretary finds under subsection (b) that
there are sufficient numbers of batteries to support the program, the
Secretary shall solicit proposals to demonstrate the secondary use of
batteries and associated equipment and supporting infrastructure in
geographic locations throughout the United States. The Secretary may
make additional solicitations for proposals if the Secretary determines
that such solicitations are necessary to carry out this section.
(d) Selection of Proposals.--
(1) In general.--The Secretary shall, not later than 90
days after the closing date established by the Secretary for
receipt of proposals under subsection (c), select up to 5
proposals which may receive financial assistance under this
section, subject to the availability of appropriations.
(2) Diversity; environmental effect.--In selecting
proposals, the Secretary shall consider diversity of battery
type, geographic and climatic diversity, and life-cycle
environmental effects of the approaches.
(3) Limitation.--No 1 project selected under this section
shall receive more than 25 percent of the funds authorized for
the program under this section.
(4) Optimization of federal resources.--The Secretary shall
consider the extent of involvement of State or local government
and other persons in each demonstration project to optimize use
of Federal resources.
(5) Other criteria.--The Secretary may consider such other
criteria as the Secretary considers appropriate.
(e) Conditions.--The Secretary shall require that--
(1) relevant information be provided to the Department, the
users of the batteries, the proposers, and the battery
manufacturers;
(2) the proposer provide at least 50 percent of the costs
associated with the proposal; and
(3) the proposer provide to the Secretary such information
regarding the disposal of the batteries as the Secretary may
require to ensure that the proposer disposes of the batteries
in accordance with applicable law.
SEC. 908. ENERGY EFFICIENCY STUDY INITIATIVE.
(a) Establishment.--The Secretary shall establish an Energy
Efficiency Science Initiative to be managed by the Assistant Secretary
in the Department with responsibility for energy conservation under
section 203(a)(9) of the Department of Energy Organization Act (42
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of
Science, for grants to be competitively awarded and subject to peer
review for studies relating to energy efficiency.
(b) Report.--The Secretary shall submit to Congress, along with the
President's annual budget request under section 1105(a) of title 31,
United States Code, a report on the activities of the Energy Efficiency
Science Initiative, including a description of the process used to
award the funds and an explanation of how the studies relate to energy
efficiency.
SEC. 909. ELECTRIC MOTOR CONTROL TECHNOLOGY.
The Secretary shall conduct a program of study on advanced control
devices to improve the energy efficiency of electric motors used in
heating, ventilation, air conditioning, and comparable systems.
Subtitle B--Distributed Energy and Electric Energy Systems
SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for distributed energy and electric
energy systems activities, including activities authorized under this
subtitle:
(1) For fiscal year 2006, $190,000,000.
(2) For fiscal year 2007, $200,000,000.
(3) For fiscal year 2008, $220,000,000.
(4) For fiscal year 2009, $240,000,000.
(5) For fiscal year 2010, $260,000,000.
(b) Micro-Cogeneration Energy Technology.--From amounts authorized
under subsection (a), $20,000,000 for each of fiscal years 2006 and
2007 is authorized for activities under section 914.
SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM.
The Secretary shall establish a comprehensive program of study to
improve energy efficiency of high power density facilities, including
data centers, server farms, and telecommunications facilities. Such
program shall consider technologies that provide significant
improvement in thermal controls, metering, load management, peak load
reduction, or the efficient cooling of electronics.
SEC. 916. RECIPROCATING POWER.
The Secretary shall conduct a program of study regarding fuel
system optimization and emissions reduction after-treatment
technologies for industrial reciprocating engines. Such after-treatment
technologies shall use processes that reduce emissions by recirculating
exhaust gases and shall be designed to be retrofitted to any new or
existing diesel or natural gas engine used for power generation,
peaking power generation, combined heat and power, or compression.
SEC. 917. ADVANCED PORTABLE POWER DEVICES.
(a) Program.--The Secretary shall--
(1) establish a program to develop working models of small
scale portable power devices; and
(2) to the fullest extent practicable, identify and utilize
the resources of universities that have shown expertise with
respect to advanced portable power devices for either civilian
or military use.
(b) Organization.--The universities identified and utilized under
subsection (a)(2) are authorized to establish an organization to
promote small scale portable power devices.
(c) Definition.--For purposes of this section, the term ``small
scale portable power device'' means a field deployable portable
mechanical or electromechanical device that can be used for
applications such as communications, computation, mobility enhancement,
weapons systems, optical devices, cooling, sensors, medical devices and
active biological agent detection systems.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $8,000,000
for the period encompassing fiscal years 2006 through 2010.
Subtitle C--Renewable Energy
SEC. 918. RENEWABLE ENERGY.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for renewable energy activities,
including activities authorized under this subtitle:
(1) For fiscal year 2006, $480,000,000.
(2) For fiscal year 2007, $550,000,000.
(3) For fiscal year 2008, $610,000,000.
(4) For fiscal year 2009, $659,000,000.
(5) For fiscal year 2010, $710,000,000.
(b) Bioenergy.--From the amounts authorized under subsection (a),
the following sums are authorized to be appropriated to carry out
section 919:
(1) For fiscal year 2006, $135,425,000.
(2) For fiscal year 2007, $155,600,000.
(3) For fiscal year 2008, $167,650,000.
(4) For fiscal year 2009, $180,000,000.
(5) For fiscal year 2010, $192,000,000.
(c) Concentrating Solar Power.--From amounts authorized under
subsection (a), the following sums are authorized to be appropriated to
carry out section 920:
(1) For fiscal year 2006, $20,000,000.
(2) For fiscal year 2007, $40,000,000.
(3) For each of fiscal years 2008, 2009, and 2010,
$50,000,000.
(d) Public Buildings.--From the amounts authorized under subsection
(a), $30,000,000 for each of the fiscal years 2006 through 2010 are
authorized to be appropriated to carry out section 922.
(e) Limits on Use of Funds.--
(1) No funds for renewable support and implementation.--
None of the funds authorized to be appropriated under this
section may be used for Renewable Support and Implementation.
(2) Grants.--Of the funds authorized under subsection (b),
not less than $5,000,000 for each fiscal year shall be made
available for grants to Historically Black Colleges and
Universities, Tribal Colleges, and Hispanic-Serving
Institutions.
(3) Regional field verification program.--Of the funds
authorized under subsection (a), not less than $4,000,000 for
each fiscal year shall be made available for the Regional Field
Verification Program of the Department.
(4) Off-stream pumped storage hydropower.--Of the funds
authorized under subsection (a), such sums as may be necessary
shall be made available for demonstration projects of off-
stream pumped storage hydropower.
(f) Consultation.--In carrying out this subtitle, the Secretary, in
consultation with the Secretary of Agriculture, shall demonstrate the
use of advanced wind power technology, including combined use with coal
gasification; biomass; geothermal energy systems; and other renewable
energy technologies to assist in delivering electricity to rural and
remote locations.
SEC. 919. BIOENERGY PROGRAMS.
(a) Definitions.--For the purposes of this section:
(1) The term ``agricultural byproducts'' includes waste
products, including poultry fat and poultry waste.
(2) The term ``cellulosic biomass'' means any portion of a
crop containing lignocellulose or hemicellulose, including
barley grain, grapeseed, forest thinnings, rice bran, rice
hulls, rice straw, soybean matter, and sugarcane bagasse, or
any crop grown specifically for the purpose of producing
cellulosic feedstocks.
(b) Program.--The Secretary shall conduct a program of study for
bioenergy, including--
(1) biopower energy systems;
(2) biofuels;
(3) bio-based products;
(4) integrated biorefineries that may produce biopower,
biofuels, and bio-based products;
(5) cross-cutting research and development in feedstocks
and enzymes; and
(6) economic analysis.
(c) Biofuels and Bio-Based Products.--The goals of the biofuels and
bio-based products programs shall be to promote, in partnership with
industry--
(1) advanced biochemical and thermochemical conversion
technologies capable of making biofuels that are price-
competitive with gasoline or diesel in either internal
combustion engines or fuel cell-powered vehicles, and bio-based
products from a variety of feedstocks, including grains,
cellulosic biomass, and other agricultural byproducts; and
(2) advanced biotechnology processes capable of making
biofuels and bio-based products with emphasis on development of
biorefinery technologies using enzyme-based processing systems.
SEC. 920. CONCENTRATING SOLAR POWER STUDY PROGRAM.
(a) In General.--The Secretary shall conduct a program of study to
evaluate the potential of concentrating solar power for hydrogen
production, including cogeneration approaches for both hydrogen and
electricity. Such program shall take advantage of existing facilities
to the extent possible and shall include--
(1) development of optimized technologies that are common
to both electricity and hydrogen production;
(2) evaluation of thermochemical cycles for hydrogen
production at the temperatures attainable with concentrating
solar power;
(3) evaluation of materials issues for the thermochemical
cycles described in paragraph (2);
(4) system architectures and economics studies; and
(5) coordination with activities in the Advanced Reactor
Hydrogen Cogeneration Project on high temperature materials,
thermochemical cycles, and economic issues.
(b) Assessment.--In carrying out the program under this section,
the Secretary shall--
(1) assess conflicting guidance on the economic potential
of concentrating solar power for electricity production
received from the National Research Council report entitled
``Renewable Power Pathways: A Review of the U.S. Department of
Energy's Renewable Energy Programs'' in 2000 and subsequent
Department-funded reviews of that report; and
(2) provide an assessment of the potential impact of the
technology before, or concurrent with, submission of the fiscal
year 2008 budget.
(c) Report.--Not later than 5 years after the date of enactment of
this Act, the Secretary shall provide a report to Congress on the
economic and technical potential for electricity or hydrogen
production, with or without cogeneration, with concentrating solar
power.
SEC. 921. MISCELLANEOUS PROJECTS.
The Secretary may conduct studies for--
(1) ocean energy, including wave energy; and
(2) the combined use of renewable energy technologies with
one another and with other energy technologies, including the
combined use of wind power and coal gasification technologies.
SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS.
(a) Technology Transfer Program.--The Secretary shall establish a
program for the transfer of innovative technologies for solar and other
renewable energy sources in buildings owned or operated by a State or
local government, and for the dissemination of information resulting
from an assessment of such program to interested parties.
(b) Limit on Federal Funding.--The Secretary shall provide under
this section no more than 40 percent of the incremental costs of the
solar or other renewable energy source project funded.
(c) Requirement.--As part of the application for awards under this
section, the Secretary shall require all applicants--
(1) to demonstrate a continuing commitment to the use of
solar and other renewable energy sources in buildings they own
or operate; and
(2) to state how they expect any award to further their
transition to the significant use of renewable energy.
SEC. 923. UNIVERSITY BIODIESEL PROGRAM.
(a) In General.--The Secretary shall establish a program regarding
the feasibility of the operation of diesel electric power generators,
using biodiesel fuels, with ratings as high as B100 at a university
electric generation facility. The program shall examine--
(1) heat rates of diesel fuels with large quantities of
cellulosic content;
(2) the reliability of operation of various fuel blends;
(3) performance in cold or freezing weather;
(4) stability of fuel after extended storage; and
(5) other criteria, as determined by the Secretary.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $400,000 to carry out subsection (a).
Such funds shall remain available until expended.
Subtitle D--Nuclear Energy
SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.
(a) Study.--The Secretary shall conduct a study and provide a
report to Congress not later than August 1, 2006. The study shall--
(1) survey industrial applications of large radioactive
sources, including well-logging sources;
(2) review current domestic and international Department,
Department of Defense, Department of State, and commercial
programs to manage and dispose of radioactive sources;
(3) discuss disposal options and practices for currently
deployed or future sources and, if deficiencies are noted in
existing disposal options or practices for either deployed or
future sources, recommend options to remedy deficiencies; and
(4) develop a program plan for research and development to
develop alternatives to large industrial sources that reduce
safety, environmental, or proliferation risks to either workers
using the sources or the public.
(b) Program.--The Secretary shall establish a research and
development program to implement the program plan developed under
subsection (a)(4). The program shall include miniaturized particle
accelerators for well-logging or other industrial applications and
portable accelerators for production of short-lived radioactive
materials at an industrial site.
SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL.
The Secretary shall conduct a study to determine the feasibility of
deep borehole disposal of spent nuclear fuel and high-level radioactive
waste. The study shall emphasize geological, chemical, and hydrological
characterization of, and design of engineered structures for, deep
borehole environments. Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit the study to
Congress.
Subtitle E--Fossil Energy
PART I--STUDIES AND PROGRAM SUPPORT
SEC. 931. FOSSIL ENERGY.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for fossil energy activities, including
activities authorized under this part:
(1) For fiscal year 2006, $530,000,000.
(2) For fiscal year 2007, $556,000,000.
(3) For fiscal year 2008, $583,000,000.
(4) For fiscal year 2009, $611,000,000.
(5) For fiscal year 2010, $626,000,000.
(b) Allocations.--From amounts authorized under subsection (a), the
following sums are authorized:
(1) For activities under section 932(b)(2), $28,000,000 for
each of the fiscal years 2006 through 2010.
(2) For activities under section 934--
(A) for fiscal year 2006, $12,000,000;
(B) for fiscal year 2007, $15,000,000; and
(C) for each of fiscal years 2008 through 2010,
$20,000,000.
(3) For activities under section 935--
(A) for fiscal year 2006, $259,000,000;
(B) for fiscal year 2007, $272,000,000;
(C) for fiscal year 2008, $285,000,000;
(D) for fiscal year 2009, $298,000,000; and
(E) for fiscal year 2010, $308,000,000.
(4) For the Office of Arctic Energy under section 3197 of
the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (42 U.S.C. 7144d), $25,000,000 for each of
fiscal years 2006 through 2010.
(5) For activities under section 933, $4,000,000 for fiscal
year 2006 and $2,000,000 for each of fiscal years 2007 through
2010.
(c) Extended Authorization.--There are authorized to be
appropriated to the Secretary for the Office of Arctic Energy under
section 3197 of the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (42 U.S.C. 7144d), $25,000,000 for each of fiscal
years 2009 through 2012.
(d) Limits on Use of Funds.--
(1) No funds for certain programs.--None of the funds
authorized under this section may be used for Fossil Energy
Environmental Restoration or Import/Export Authorization.
(2) Institutions of higher education.--Of the funds
authorized under subsection (b)(2), not less than 20 percent of
the funds appropriated for each fiscal year shall be dedicated
to activities carried out at institutions of higher education.
SEC. 932. OIL AND GAS STUDIES.
(a) Oil and Gas Studies.--The Secretary shall conduct a program of
studies on oil and gas, including--
(1) exploration and production;
(2) gas hydrates;
(3) reservoir life and extension;
(4) transportation and distribution infrastructure;
(5) ultraclean fuels;
(6) heavy oil and oil shale;
(7) related environmental research; and
(8) compressed natural gas marine transport.
(b) Fuel Cells.--
(1) In general.--The Secretary shall conduct a program of
studies on fuel cells for low-cost, high-efficiency, fuel-
flexible, modular power systems.
(2) Improved manufacturing production and processes.--The
studies under paragraph (1) shall include fuel cell technology
for commercial, residential, and transportation applications,
and distributed generation systems, utilizing improved
manufacturing production and processes.
(c) Natural Gas and Oil Deposits Report.--Not later than 2 years
after the date of enactment of this Act, and every 2 years thereafter,
the Secretary of the Interior, in consultation with other appropriate
Federal agencies, shall transmit a report to Congress of the latest
estimates of natural gas and oil reserves, reserves growth, and
undiscovered resources in Federal and State waters off the coast of
Louisiana and Texas.
(d) Integrated Clean Power and Energy.--
(1) National center or consortium of excellence.--The
Secretary shall establish a national center or consortium of
excellence in clean energy and power generation to address the
Nation's critical dependence on energy and the need to reduce
emissions.
(2) Program.--The center or consortium shall conduct a
program integrating the following focus areas:
(A) Efficiency and reliability of gas turbines for
power generation.
(B) Reduction in emissions from power generation.
(C) Promotion of energy conservation issues.
(D) Effectively utilizing alternative fuels and
renewable energy.
(E) Advanced materials technology for oil and gas
exploration and utilization in harsh environments.
(F) Education on energy and power generation
issues.
SEC. 933. TECHNOLOGY TRANSFER.
The Secretary shall establish a competitive program to award a
contract to a nonprofit entity for the purpose of transferring
technologies developed with public funds. The entity selected under
this section shall have experience in offshore oil and gas technology
management, in the transfer of technologies developed with public funds
to the offshore and maritime industry, and in management of an offshore
and maritime industry consortium. The program consortium selected under
section 942 shall not be eligible for selection under this section.
When appropriate, the Secretary shall consider utilizing the entity
selected under this section when implementing the activities authorized
by section 975.
SEC. 934. COAL MINING TECHNOLOGIES.
(a) Establishment.--The Secretary shall carry out a program of
studies on coal mining technologies. The Secretary shall cooperate with
appropriate Federal agencies, coal producers, trade associations,
equipment manufacturers, institutions of higher education with mining
engineering departments, and other relevant entities.
(b) Program.--The activities carried out under this section shall--
(1) be guided by the mining priorities identified by the
Mining Industry of the Future Program and in the
recommendations from relevant reports of the National Academy
of Sciences on mining technologies; and
(2) include activities exploring minimization of
contaminants in mined coal that contribute to environmental
concerns.
SEC. 935. COAL AND RELATED TECHNOLOGIES PROGRAM.
(a) In General.--In addition to the programs authorized under title
IV, the Secretary shall conduct a program of technology to study coal
and power systems, including programs to facilitate production and
generation of coal-based power through--
(1) innovations for existing plants;
(2) integrated gasification combined cycle;
(3) advanced combustion systems;
(4) turbines for synthesis gas derived from coal;
(5) carbon capture and sequestration;
(6) coal-derived transportation fuels and chemicals;
(7) solid fuels and feedstocks;
(8) advanced studies;
(9) advanced separation technologies; and
(10) a joint project for permeability enhancement in coals
for natural gas production and carbon dioxide sequestration.
(b) Cost and Performance Goals.--In carrying out programs
authorized by this section, the Secretary shall identify cost and
performance goals for coal-based technologies that would permit the
continued cost-competitive use of coal for electricity generation, as
chemical feedstocks, and as transportation fuel in 2007, 2015, and the
years after 2020. In establishing such cost and performance goals, the
Secretary shall--
(1) consider activities and studies undertaken to date by
industry in cooperation with the Department in support of such
assessment;
(2) consult with interested entities, including coal
producers, industries using coal, organizations to promote coal
and advanced coal technologies, environmental organizations,
and organizations representing workers;
(3) not later than 120 days after the date of enactment of
this Act, publish in the Federal Register proposed draft cost
and performance goals for public comments; and
(4) not later than 180 days after the date of enactment of
this Act and every 4 years thereafter, submit to Congress a
report describing final cost and performance goals for such
technologies that includes a list of technical milestones as
well as an explanation of how programs authorized in this
section will not duplicate the activities authorized under the
Clean Coal Power Initiative authorized under subtitle A of
title IV.
SEC. 936. COMPLEX WELL TECHNOLOGY TESTING FACILITY.
The Secretary, in coordination with industry leaders in extended
research drilling technology, shall establish a Complex Well Technology
Testing Facility at the Rocky Mountain Oilfield Testing Center to
increase the range of extended drilling technologies.
PART II--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER
PETROLEUM RESOURCES
SEC. 941. PROGRAM AUTHORITY.
(a) In General.--The Secretary shall carry out a program under this
part regarding technologies for ultra-deepwater and unconventional
natural gas and other petroleum resource exploration and production,
including addressing the technology challenges for small producers,
safe operations, and environmental mitigation (including reduction of
greenhouse gas emissions and sequestration of carbon).
(b) Program Elements.--The program under this part shall address
the following areas, including improving safety and minimizing
environmental impacts of activities within each area:
(1) Ultra-deepwater technology, including drilling to
formations in the Outer Continental Shelf to depths greater
than 15,000 feet.
(2) Ultra-deepwater architecture.
(3) Unconventional natural gas and other petroleum resource
exploration and production technology, including the technology
challenges of small producers.
(c) Limitation on Location of Field Activities.--Field activities
under the program under this part shall be carried out only--
(1) in--
(A) areas in the territorial waters of the United
States not under any Outer Continental Shelf moratorium
as of September 30, 2002;
(B) areas onshore in the United States on public
land administered by the Secretary of the Interior
available for oil and gas leasing, where consistent
with applicable law and land use plans; and
(C) areas onshore in the United States on State or
private land, subject to applicable law; and
(2) with the approval of the appropriate Federal or State
land management agency or private land owner.
(d) Consultation With Secretary of the Interior.--In carrying out
this part, the Secretary shall consult regularly with the Secretary of
the Interior.
SEC. 942. ULTRA-DEEPWATER PROGRAM.
(a) In General.--The Secretary shall carry out the activities under
section 941(a), to maximize the use of the ultra-deepwater natural gas
and other petroleum resources of the United States by increasing the
supply of such resources, through reducing the cost and increasing the
efficiency of exploration for and production of such resources, while
improving safety and minimizing environmental impacts.
(b) Role of the Secretary.--The Secretary shall have ultimate
responsibility for, and oversight of, all aspects of the program under
this section.
(c) Role of the Program Consortium.--
(1) In general.--The Secretary may contract with a
consortium to--
(A) manage awards pursuant to subsection (f)(4);
(B) make recommendations to the Secretary for
project solicitations;
(C) disburse funds awarded under subsection (f) as
directed by the Secretary in accordance with the annual
plan under subsection (e); and
(D) carry out other activities assigned to the
program consortium by this section.
(2) Limitation.--The Secretary may not assign any
activities to the program consortium except as specifically
authorized under this section.
(3) Conflict of interest.--
(A) Procedures.--The Secretary shall establish
procedures--
(i) to ensure that each board member,
officer, or employee of the program consortium
who is in a decision-making capacity under
subsection (f)(3) or (4) shall disclose to the
Secretary any financial interests in, or
financial relationships with, applicants for or
recipients of awards under this section,
including those of his or her spouse or minor
child, unless such relationships or interests
would be considered to be remote or
inconsequential; and
(ii) to require any board member, officer,
or employee with a financial relationship or
interest disclosed under clause (i) to recuse
himself or herself from any review under
subsection (f)(3) or oversight under subsection
(f)(4) with respect to such applicant or
recipient.
(B) Failure to comply.--The Secretary may
disqualify an application or revoke an award under this
section if a board member, officer, or employee has
failed to comply with procedures required under
subparagraph (A)(ii).
(d) Selection of the Program Consortium.--
(1) In general.--The Secretary shall select the program
consortium through an open, competitive process.
(2) Members.--The program consortium may include
corporations, trade associations, institutions of higher
education, National Laboratories, or other research
institutions. After submitting a proposal under paragraph (4),
the program consortium may not add members without the consent
of the Secretary.
(3) Tax status.--The program consortium shall be an entity
that is exempt from tax under section 501(c)(3) of the Internal
Revenue Code of 1986.
(4) Schedule.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall solicit proposals
from eligible consortia to perform the duties in subsection
(c)(1), which shall be submitted not later than 360 days after
the date of enactment of this Act. The Secretary shall select
the program consortium not later than 18 months after such date
of enactment.
(5) Application.--Applicants shall submit a proposal
including such information as the Secretary may require. At a
minimum, each proposal shall--
(A) list all members of the consortium;
(B) fully describe the structure of the consortium,
including any provisions relating to intellectual
property; and
(C) describe how the applicant would carry out the
activities of the program consortium under this
section.
(6) Criterion.--The Secretary shall consider the amount of
the fee an applicant proposes to receive under subsection (g)
in selecting a consortium under this section.
(e) Annual Plan.--
(1) In general.--The program under this section shall be
carried out pursuant to an annual plan prepared by the
Secretary in accordance with paragraph (2).
(2) Development.--
(A) Solicitation of recommendations.--Before
drafting an annual plan under this subsection, the
Secretary shall solicit specific written
recommendations from the program consortium for each
element to be addressed in the plan, including those
described in paragraph (4). The Secretary may request
that the program consortium submit its recommendations
in the form of a draft annual plan.
(B) Submission of recommendations; other comment.--
The Secretary shall submit the recommendations of the
program consortium under subparagraph (A) to the Ultra-
Deepwater Advisory Committee established under section
945(a) for review, and such Advisory Committee shall
provide to the Secretary written comments by a date
determined by the Secretary. The Secretary may also
solicit comments from any other experts.
(C) Consultation.--The Secretary shall consult
regularly with the program consortium throughout the
preparation of the annual plan.
(3) Publication.--The Secretary shall transmit to Congress
and publish in the Federal Register the annual plan, along with
any written comments received under paragraph (2)(A) and (B).
(4) Contents.--The annual plan shall describe the ongoing
and prospective activities of the program under this section
and shall include--
(A) a list of any solicitations for awards that the
Secretary plans to issue to carry out research,
development, demonstration, or commercial application
activities, including the topics for such work, who
would be eligible to apply, selection criteria, and the
duration of awards; and
(B) a description of the activities expected of the
program consortium to carry out subsection (f)(4).
(5) Estimates of increased royalty receipts.--The
Secretary, in consultation with the Secretary of the Interior,
shall provide an annual report to Congress with the President's
budget on the estimated cumulative increase in Federal royalty
receipts (if any) resulting from the implementation of this
part. The initial report under this paragraph shall be
submitted in the first President's budget following the
completion of the first annual plan required under this
subsection.
(f) Awards.--
(1) In general.--The Secretary shall make awards to carry
out activities under the program under this section. The
program consortium shall not be eligible to receive such
awards, but members of the program consortium may receive such
awards.
(2) Proposals.--The Secretary shall solicit proposals for
awards under this subsection in such manner and at such time as
the Secretary may prescribe, in consultation with the program
consortium.
(3) Review.--The Secretary shall make awards under this
subsection through a competitive process, which shall include a
review by individuals selected by the Secretary. Such
individuals shall include, for each application, Federal
officials, the program consortium, and non-Federal experts who
are not board members, officers, or employees of the program
consortium or of a member of the program consortium.
(4) Oversight.--
(A) In general.--The program consortium shall
oversee the implementation of awards under this
subsection, consistent with the annual plan under
subsection (e), including disbursing funds and
monitoring activities carried out under such awards for
compliance with the terms and conditions of the awards.
(B) Effect.--Nothing in subparagraph (A) shall
limit the authority or responsibility of the Secretary
to oversee awards, or limit the authority of the
Secretary to review or revoke awards.
(C) Provision of information.--The Secretary shall
provide to the program consortium the information
necessary for the program consortium to carry out its
responsibilities under this paragraph.
(g) Administrative Costs.--
(1) In general.--To compensate the program consortium for
carrying out its activities under this section, the Secretary
shall provide to the program consortium funds sufficient to
administer the program. This compensation may include a
management fee consistent with Department of Energy contracting
practices and procedures.
(2) Advance.--The Secretary shall advance funds to the
program consortium upon selection of the consortium, which
shall be deducted from amounts to be provided under paragraph
(1).
(h) Audit.--The Secretary shall retain an independent, commercial
auditor to determine the extent to which funds provided to the program
consortium, and funds provided under awards made under subsection (f),
have been expended in a manner consistent with the purposes and
requirements of this part. The auditor shall transmit a report annually
to the Secretary, who shall transmit the report to Congress, along with
a plan to remedy any deficiencies cited in the report.
SEC. 943. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES
PROGRAM.
(a) In General.--The Secretary shall carry out activities under
subsection 941(b)(3), to maximize the use of the onshore unconventional
natural gas and other petroleum resources of the United States, by
increasing the supply of such resources, through reducing the cost and
increasing the efficiency of exploration for and production of such
resources, while improving safety and minimizing environmental impacts.
(b) Awards.--
(1) In general.--The Secretary shall carry out this section
through awards to consortia made through an open, competitive
process. As a condition of award of funds, qualified consortia
shall--
(A) demonstrate capability and experience in
unconventional onshore natural gas or other petroleum
technologies;
(B) provide a research plan that demonstrates how
additional natural gas or oil production will be
achieved; and
(C) at the request of the Secretary, provide
technical advice to the Secretary for the purposes of
developing the annual plan required under subsection
(e).
(2) Production potential.--The Secretary shall seek to
ensure that the number and types of awards made under this
subsection have reasonable potential to lead to additional oil
and natural gas production on Federal lands.
(3) Schedule.--To carry out this subsection, not later than
180 days after the date of enactment of this Act, the Secretary
shall solicit proposals from consortia, which shall be
submitted not later than 360 days after the date of enactment
of this Act. The Secretary shall select the first group of
research consortia to receive awards under this subsection not
later than 18 months after such date of enactment.
(c) Audit.--The Secretary shall retain an independent, commercial
auditor to determine the extent to which funds provided under awards
made under this section have been expended in a manner consistent with
the purposes and requirements of this part. The auditor shall transmit
a report annually to the Secretary, who shall transmit the report to
Congress, along with a plan to remedy any deficiencies cited in the
report.
(d) Focus Areas for Awards.--
(1) Unconventional resources.--Awards from allocations
under section 949(d)(2) shall focus on areas including advanced
coalbed methane, deep drilling, natural gas production from
tight sands, natural gas production from gas shales, stranded
gas, innovative exploration and production techniques, enhanced
recovery techniques, and environmental mitigation of
unconventional natural gas and other petroleum resources
exploration and production.
(2) Small producers.--Awards from allocations under section
949(d)(3) shall be made to consortia consisting of small
producers or organized primarily for the benefit of small
producers, and shall focus on areas including complex geology
involving rapid changes in the type and quality of the oil and
gas reservoirs across the reservoir; low reservoir pressure;
unconventional natural gas reservoirs in coalbeds, deep
reservoirs, tight sands, or shales; and unconventional oil
reservoirs in tar sands and oil shales.
(e) Annual Plan.--
(1) In general.--The program under this section shall be
carried out pursuant to an annual plan prepared by the
Secretary in accordance with paragraph (2).
(2) Development.--
(A) Written recommendations.--Before drafting an
annual plan under this subsection, the Secretary shall
solicit specific written recommendations from the
consortia receiving awards under subsection (b) and the
Unconventional Resources Technology Advisory Committee
for each element to be addressed in the plan, including
those described in subparagraph (D).
(B) Consultation.--The Secretary shall consult
regularly with the consortia throughout the preparation
of the annual plan.
(C) Publication.--The Secretary shall transmit to
Congress and publish in the Federal Register the annual
plan, along with any written comments received under
subparagraph (A).
(D) Contents.--The annual plan shall describe the
ongoing and prospective activities under this section
and shall include a list of any solicitations for
awards that the Secretary plans to issue to carry out
activities, including the topics for such work, who
would be eligible to apply, selection criteria, and the
duration of awards.
(3) Estimates of increased royalty receipts.--The
Secretary, in consultation with the Secretary of the Interior,
shall provide an annual report to Congress with the President's
budget on the estimated cumulative increase in Federal royalty
receipts (if any) resulting from the implementation of this
part. The initial report under this paragraph shall be
submitted in the first President's budget following the
completion of the first annual plan required under this
subsection.
SEC. 944. ADDITIONAL REQUIREMENTS FOR AWARDS.
(a) Demonstration Projects.--An application for an award under this
part for a demonstration project shall describe with specificity the
intended commercial use of the technology to be demonstrated.
(b) Flexibility in Locating Demonstration Projects.--Subject to the
limitation in section 941(c), a demonstration project under this part
relating to an ultra-deepwater technology or an ultra-deepwater
architecture may be conducted in deepwater depths.
(c) Intellectual Property Agreements.--If an award under this part
is made to a consortium (other than the program consortium), the
consortium shall provide to the Secretary a signed contract agreed to
by all members of the consortium describing the rights of each member
to intellectual property used or developed under the award.
(d) Technology Transfer.--2.5 percent of the amount of each award
made under this part shall be designated for technology transfer and
outreach activities under this title.
(e) Cost Sharing Reduction for Independent Producers.--In applying
the cost sharing requirements under section 972 to an award under this
part the Secretary may reduce or eliminate the non-Federal requirement
if the Secretary determines that the reduction is necessary and
appropriate considering the technological risks involved in the
project.
SEC. 945. ADVISORY COMMITTEES.
(a) Ultra-Deepwater Advisory Committee.--
(1) Establishment.--Not later than 270 days after the date
of enactment of this Act, the Secretary shall establish an
advisory committee to be known as the Ultra-Deepwater Advisory
Committee.
(2) Membership.--The advisory committee under this
subsection shall be composed of members appointed by the
Secretary including--
(A) individuals with extensive experience or
operational knowledge of offshore natural gas and other
petroleum exploration and production;
(B) individuals broadly representative of the
affected interests in ultra-deepwater natural gas and
other petroleum production, including interests in
environmental protection and safe operations;
(C) no individuals who are Federal employees; and
(D) no individuals who are board members, officers,
or employees of the program consortium.
(3) Duties.--The advisory committee under this subsection
shall--
(A) advise the Secretary on the development and
implementation of programs under this part related to
ultra-deepwater natural gas and other petroleum
resources; and
(B) carry out section 942(e)(2)(B).
(4) Compensation.--A member of the advisory committee under
this subsection shall serve without compensation but shall
receive travel expenses in accordance with applicable
provisions under subchapter I of chapter 57 of title 5, United
States Code.
(b) Unconventional Resources Technology Advisory Committee.--
(1) Establishment.--Not later than 270 days after the date
of enactment of this Act, the Secretary shall establish an
advisory committee to be known as the Unconventional Resources
Technology Advisory Committee.
(2) Membership.--The advisory committee under this
subsection shall be composed of members appointed by the
Secretary including--
(A) a majority of members who are employees or
representatives of independent producers of natural gas
and other petroleum, including small producers;
(B) individuals with extensive research experience
or operational knowledge of unconventional natural gas
and other petroleum resource exploration and
production;
(C) individuals broadly representative of the
affected interests in unconventional natural gas and
other petroleum resource exploration and production,
including interests in environmental protection and
safe operations; and
(D) no individuals who are Federal employees.
(3) Duties.--The advisory committee under this subsection
shall advise the Secretary on the development and
implementation of activities under this part related to
unconventional natural gas and other petroleum resources.
(4) Compensation.--A member of the advisory committee under
this subsection shall serve without compensation but shall
receive travel expenses in accordance with applicable
provisions under subchapter I of chapter 57 of title 5, United
States Code.
(c) Prohibition.--No advisory committee established under this
section shall make recommendations on funding awards to particular
consortia or other entities, or for specific projects.
SEC. 946. LIMITS ON PARTICIPATION.
An entity shall be eligible to receive an award under this part
only if the Secretary finds--
(1) that the entity's participation in the program under
this part would be in the economic interest of the United
States; and
(2) that either--
(A) the entity is a United States-owned entity
organized under the laws of the United States; or
(B) the entity is organized under the laws of the
United States and has a parent entity organized under
the laws of a country that affords--
(i) to United States-owned entities
opportunities, comparable to those afforded to
any other entity, to participate in any
cooperative research venture similar to those
authorized under this part;
(ii) to United States-owned entities local
investment opportunities comparable to those
afforded to any other entity; and
(iii) adequate and effective protection for
the intellectual property rights of United
States-owned entities.
SEC. 947. SUNSET.
The authority provided by this part shall terminate on September
30, 2014.
SEC. 948. DEFINITIONS.
In this part:
(1) Deepwater.--The term ``deepwater'' means a water depth
that is greater than 200 but less than 1,500 meters.
(2) Independent producer of oil or gas.--
(A) In general.--The term ``independent producer of
oil or gas'' means any person that produces oil or gas
other than a person to whom subsection (c) of section
613A of the Internal Revenue Code of 1986 does not
apply by reason of paragraph (2) (relating to certain
retailers) or paragraph (4) (relating to certain
refiners) of section 613A(d) of such Code.
(B) Rules for applying paragraphs (2) and (4) of
section 613a(d).--For purposes of subparagraph (A),
paragraphs (2) and (4) of section 613A(d) of the
Internal Revenue Code of 1986 shall be applied by
substituting ``calendar year'' for ``taxable year''
each place it appears in such paragraphs.
(3) Program consortium.--The term ``program consortium''
means the consortium selected under section 942(d).
(4) Remote or inconsequential.--The term ``remote or
inconsequential'' has the meaning given that term in
regulations issued by the Office of Government Ethics under
section 208(b)(2) of title 18, United States Code.
(5) Small producer.--The term ``small producer'' means an
entity organized under the laws of the United States with
production levels of less than 1,000 barrels per day of oil
equivalent.
(6) Ultra-deepwater.--The term ``ultra-deepwater'' means a
water depth that is equal to or greater than 1,500 meters.
(7) Ultra-deepwater architecture.--The term ``ultra-
deepwater architecture'' means the integration of technologies
for the exploration for, or production of, natural gas or other
petroleum resources located at ultra-deepwater depths.
(8) Ultra-deepwater technology.--The term ``ultra-deepwater
technology'' means a discrete technology that is specially
suited to address 1 or more challenges associated with the
exploration for, or production of, natural gas or other
petroleum resources located at ultra-deepwater depths.
(9) Unconventional natural gas and other petroleum
resource.--The term ``unconventional natural gas and other
petroleum resource'' means natural gas and other petroleum
resource located onshore in an economically inaccessible
geological formation, including resources of small producers.
SEC. 949. FUNDING.
(a) In General.--
(1) Oil and gas lease income.--For each of fiscal years
2005 through 2014, from any Federal royalties, rents, and
bonuses derived from Federal onshore and offshore oil and gas
leases issued under the Outer Continental Shelf Lands Act and
the Mineral Leasing Act which are deposited in the Treasury,
and after distribution of any such funds as described in
subsection (c), $50,000,000 shall be deposited into the Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund (in this section referred to as the Fund). For
purposes of this section, the term ``royalties'' excludes
proceeds from the sale of royalty production taken in kind and
royalty production that is transferred under section 27(a)(3)
of the Outer Continental Shelf Lands Act (43 U.S.C.
1353(a)(3)).
(2) Authorization of appropriations.--In addition to
amounts described in paragraph (1), there are authorized to be
appropriated to the Secretary, to be deposited in the Fund,
$150,000,000 for each of the fiscal years 2005 through 2014, to
remain available until expended.
(b) Obligational Authority.--Monies in the Fund shall be available
to the Secretary for obligation under this part without fiscal year
limitation, to remain available until expended.
(c) Prior Distributions.--The distributions described in subsection
(a) are those required by law--
(1) to States and to the Reclamation Fund under the Mineral
Leasing Act (30 U.S.C. 191(a)); and
(2) to other funds receiving monies from Federal oil and
gas leasing programs, including--
(A) any recipients pursuant to section 8(g) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(g));
(B) the Land and Water Conservation Fund, pursuant
to section 2(c) of the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 4601-5(c));
(C) the Historic Preservation Fund, pursuant to
section 108 of the National Historic Preservation Act
(16 U.S.C. 470h); and
(D) the Secure Energy Reinvestment Fund.
(d) Allocation.--Amounts obligated from the Fund under this section
in each fiscal year shall be allocated as follows:
(1) 50 percent shall be for activities under section 942.
(2) 35 percent shall be for activities under section
943(d)(1).
(3) 10 percent shall be for activities under section
943(d)(2).
(4) 5 percent shall be for research under section 941(d).
(e) Fund.--There is hereby established in the Treasury of the
United States a separate fund to be known as the ``Ultra-Deepwater and
Unconventional Natural Gas and Other Petroleum Research Fund''.
Subtitle F--Energy Sciences
SEC. 953. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.
(a) Declaration of Policy.--It shall be the policy of the United
States to conduct a program of activities to ensure that the United
States is competitive with other nations in providing fusion energy for
its own needs and the needs of other nations.
(b) Planning.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall present to Congress
a plan, with proposed cost estimates, budgets, and potential
international partners, for the implementation of the policy
described in subsection (a).
(2) Costs and schedules.--Such plan shall also address the
status of and, to the degree possible, costs and schedules
for--
(A) the design and implementation of international
or national facilities for the testing of fusion
materials; and
(B) the design and implementation of international
or national facilities for the testing and development
of key fusion technologies.
SEC. 954. SPALLATION NEUTRON SOURCE.
(a) Definition.--For the purposes of this section, the term
``Spallation Neutron Source'' means Department Project 99-E-334, Oak
Ridge National Laboratory, Oak Ridge, Tennessee.
(b) Report.--The Secretary shall report on the Spallation Neutron
Source as part of the Department's annual budget submission, including
a description of the achievement of milestones, a comparison of actual
costs to estimated costs, and any changes in estimated project costs or
schedule.
(c) Limitations.--The total amount obligated by the Department,
including prior year appropriations, for the Spallation Neutron Source
shall not exceed--
(1) $1,192,700,000 for costs of construction;
(2) $219,000,000 for other project costs; and
(3) $1,411,700,000 for total project cost.
SEC. 962. NITROGEN FIXATION.
The Secretary shall conduct studies on biological nitrogen
fixation, including plant genomics research relevant to the development
of commercial crop varieties with enhanced nitrogen fixation efficiency
and ability.
Subtitle G--Energy and Environment
SEC. 966. WASTE REDUCTION AND USE OF ALTERNATIVES.
(a) Grant Authority.--The Secretary may make a single grant to a
qualified institution to examine burning post-consumer carpet in cement
kilns as an alternative energy source. The purposes of the grant shall
include determining--
(1) how post-consumer carpet can be burned without
disrupting kiln operations;
(2) the extent to which overall kiln emissions may be
reduced;
(3) the emissions of air pollutants and other relevant
environmental impacts; and
(4) how this process provides benefits to both cement kiln
operations and carpet suppliers.
(b) Qualified Institution.--For the purposes of subsection (a), a
qualified institution is an institution of higher education with
demonstrated expertise in the fields of fiber recycling and logistical
modeling of carpet waste collection and preparation.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $500,000.
SEC. 967. REPORT ON FUEL CELL TEST CENTER.
(a) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall transmit to Congress a report on the
results of a study of the establishment of a test center for next-
generation fuel cells at an institution of higher education that has
available a continuous source of hydrogen and access to the electric
transmission grid. Such report shall include a conceptual design for
such test center and a projection of the costs of establishing the test
center.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section $500,000.
SEC. 968. 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 2005 through 2010,
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 2005 through 2010.
SEC. 970. 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. 971. LOW-COST HYDROGEN PROPULSION AND INFRASTRUCTURE.
(a) Program.--The Secretary of Energy shall--
(1) establish a program with respect to the feasibility of
using hydrogen propulsion in light-weight vehicles and the
integration of the associated hydrogen production
infrastructure using off-the-shelf components; and
(2) identify universities and institutions that--
(A) have expertise in operating and testing
vehicles fueled by hydrogen, methane, and other fuels;
(B) have expertise in integrating off-the-shelf
components to minimize cost; and
(C) within two years can test a vehicle based on an
existing commercially available platform with a curb
weight of not less than 2,000 pounds before
modifications, that--
(i) operates solely on hydrogen gas;
(ii) can travel a minimum of 300 miles
under normal road conditions; and
(iii) uses hydrogen produced from water
using only solar energy.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
$200,000 for fiscal year 2006. Such sums shall remain available until
expended.
SEC. 972. CARBON-BASED FUEL CELL DEVELOPMENT.
(a) Grant Authority.--The Secretary of Energy is authorized to make
a single grant to a qualified institution to design and fabricate a 5-
kilowatt prototype coal-based fuel cell with the following performance
objectives:
(1) A current density of 600 milliamps per square
centimeter at a cell voltage of 0.8 volts.
(2) An operating temperature range not to exceed 900
degrees celsius.
(b) Qualified Institution.--For the purposes of subsection (a), a
qualified institution is a research-intensive institution of higher
education with demonstrated expertise in the development of carbon-
based fuel cells allowing the direct use of high sulfur content coal as
fuel, and which has produced a laboratory-scale carbon-based fuel cell
with a proven current density of 100 milliamps per square centimeter at
a voltage of 0.6 volts.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
$850,000 for fiscal year 2006.
Subtitle H--International Cooperation
SEC. 981. UNITED STATES-ISRAEL COOPERATION.
(a) Findings.--The Congress finds that--
(1) on February 1, 1996, United States Secretary of Energy
Hazel R. O'Leary and Israeli Minister of Energy and
Infrastructure Gonen Segev signed the Agreement between the
Department of Energy of the United States of America and the
Ministry of Energy and Infrastructure of Israel Concerning
Energy Cooperation, to establish a framework for collaboration
between the United States and Israel in energy research and
development activities;
(2) the Agreement entered into force in February 2000;
(3) in February 2005, the Agreement was automatically
renewed for one additional 5-year period pursuant to Article X
of the Agreement; and
(4) under the Agreement, the United States and Israel may
cooperate in energy research and development in a variety of
alternative and advanced energy sectors.
(b) Report to Congress.--(1) The Secretary of Energy shall report
to the Committee on Energy and Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate on--
(A) how the United States and Israel have cooperated on
energy research and development activities under the Agreement;
(B) projects initiated pursuant to the Agreement; and
(C) plans for future cooperation and joint projects under
the Agreement.
(2) The report shall be submitted no later than three months after
the date of enactment of this Act.
(c) Sense of Congress.--It is the sense of the Congress that energy
cooperation between the Governments of the United States and Israel is
mutually beneficial in the development of energy technology.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
SEC. 1001. ADDITIONAL ASSISTANT SECRETARY POSITION.
(a) Additional Assistant Secretary Position to Enable Improved
Management of Nuclear Energy Issues.--
(1) In general.--Section 203(a) of the Department of Energy
Organization Act (42 U.S.C. 7133(a)) is amended by striking
``six Assistant Secretaries'' and inserting ``7 Assistant
Secretaries''.
(2) Sense of congress.--It is the sense of Congress that
the leadership for departmental missions in nuclear energy
should be at the Assistant Secretary level.
(b) Technical and Conforming Amendments.--
(1) Title 5.--Section 5315 of title 5, United States Code,
is amended by striking ``Assistant Secretaries of Energy (6)''
and inserting ``Assistant Secretaries of Energy (7)''.
(2) Department of energy organization act.--The table of
contents for the Department of Energy Organization Act (42
U.S.C. 7101 note) is amended--
(A) by striking ``Section 209'' and inserting
``Sec. 209'';
(B) by striking ``213.'' and inserting ``Sec.
213.'';
(C) by striking ``214.'' and inserting ``Sec.
214.'';
(D) by striking ``215.'' and inserting ``Sec.
215.''; and
(E) by striking ``216.'' and inserting ``Sec.
216.''.
SEC. 1002. OTHER TRANSACTIONS AUTHORITY.
Section 646 of the Department of Energy Organization Act (42 U.S.C.
7256) is amended by adding at the end the following:
``(g)(1) In addition to other authorities granted to the Secretary
under law, the Secretary may enter into other transactions on such
terms as the Secretary may deem appropriate in furtherance of research,
development, or demonstration functions vested in the Secretary. Such
other transactions shall not be subject to the provisions of section 9
of the Federal Nonnuclear Energy Research and Development Act of 1974
(42 U.S.C. 5908) or section 152 of the Atomic Energy Act of 1954 (42
U.S.C. 2182).
``(2)(A) The Secretary shall ensure that--
``(i) to the maximum extent the Secretary determines
practicable, no transaction entered into under paragraph (1)
provides for research, development, or demonstration that
duplicates research, development, or demonstration being
conducted under existing projects carried out by the
Department;
``(ii) to the extent the Secretary determines practicable,
the funds provided by the Government under a transaction
authorized by paragraph (1) do not exceed the total amount
provided by other parties to the transaction; and
``(iii) to the extent the Secretary determines practicable,
competitive, merit-based selection procedures shall be used
when entering into transactions under paragraph (1).
``(B) A transaction authorized by paragraph (1) may be used for a
research, development, or demonstration project only if the Secretary
makes a written determination that the use of a standard contract,
grant, or cooperative agreement for the project is not feasible or
appropriate.
``(3)(A) The Secretary shall protect from disclosure, including
disclosure under section 552 of title 5, United States Code, for up to
5 years after the date the information is received by the Secretary--
``(i) a proposal, proposal abstract, and supporting
documents submitted to the Department in a competitive or
noncompetitive process having the potential for resulting in an
award under paragraph (1) to the party submitting the
information; and
``(ii) a business plan and technical information relating
to a transaction authorized by paragraph (1) submitted to the
Department as confidential business information.
``(B) The Secretary may protect from disclosure, for up to 5 years
after the information was developed, any information developed pursuant
to a transaction under paragraph (1) which developed information is of
a character that it would be protected from disclosure under section
552(b)(4) of title 5, United States Code, if obtained from a person
other than a Federal agency.
``(4) Not later than 90 days after the date of enactment of this
subsection, the Secretary shall prescribe guidelines for using other
transactions authorized by paragraph (1). Such guidelines shall be
published in the Federal Register for public comment under rulemaking
procedures of the Department.
``(5) The authority of the Secretary under this subsection may be
delegated only to an officer of the Department who is appointed by the
President by and with the advice and consent of the Senate and may not
be delegated to any other person.
``(6)(A) Not later than September 31, 2006, the Comptroller General
of the United States shall report to Congress on the Department's use
of the authorities granted under this section, including the ability to
attract nontraditional government contractors and whether additional
safeguards are needed with respect to the use of such authorities.
``(B) In this section, the term `nontraditional Government
contractor' has the same meaning as the term `nontraditional defense
contractor' as defined in section 845(e) of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C.
2371 note).''.
SEC. 1003. UNIVERSITY COLLABORATION.
Not later than 2 years after the date of enactment of this Act, the
Secretary of Energy shall transmit to the Congress a report that
examines the feasibility of promoting collaborations between major
universities and other colleges and universities in grants, contracts,
and cooperative agreements made by the Secretary for energy projects.
For purposes of this section, major universities are schools listed by
the Carnegie Foundation as Doctoral Research Extensive Universities.
The Secretary shall also consider providing incentives to increase the
inclusion of small institutions of higher education, including
minority-serving institutions, in energy grants, contracts, and
cooperative agreements.
SEC. 1004. SENSE OF CONGRESS.
It is the sense of the Congress that--
(1) the Secretary of Energy should develop and implement
more stringent procurement and inventory controls, including
controls on the purchase card program, to prevent waste, fraud,
and abuse of taxpayer funds by employees and contractors of the
Department of Energy; and
(2) the Department's Inspector General should continue to
closely review purchase card purchases and other procurement
and inventory practices at the Department.
TITLE 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, including cybersecurity protection, and the design
of planned additions or modifications to such facilities to the
extent necessary to provide for reliable operation of the bulk-
power system, but the term does not include any requirement to
enlarge such facilities or to construct new transmission
capacity or generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and electric
system thermal, voltage, and stability limits so that
instability, uncontrolled separation, or cascading failures of
such system will not occur as a result of a sudden disturbance,
including a cybersecurity incident, or unanticipated failure of
system elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators of
other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(8) The term `cybersecurity incident' means a malicious
act or suspicious event that disrupts, or was an attempt to
disrupt, the operation of those programmable electronic devices
and communication networks including hardware, software and
data that are essential to the reliable operation of the bulk
power system.
``(b) Jurisdiction and Applicability.--(1) The Commission shall
have jurisdiction, within the United States, over the ERO certified by
the Commission under subsection (c), any regional entities, and all
users, owners and operators of the bulk-power system, including but not
limited to the entities described in section 201(f), for purposes of
approving reliability standards established under this section and
enforcing compliance with this section. All users, owners and operators
of the bulk-power system shall comply with reliability standards that
take effect under this section.
``(2) The Commission shall issue a final rule to implement the
requirements of this section not later than 180 days after the date of
enactment of this section.
``(c) Certification.--Following the issuance of a Commission rule
under subsection (b)(2), any person may submit an application to the
Commission for certification as the Electric Reliability Organization.
The Commission may certify 1 such ERO if the Commission determines that
such ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and
owners and operators of the bulk-power system, while
assuring fair stakeholder representation in the
selection of its directors and balanced decisionmaking
in any ERO committee or subordinate organizational
structure;
``(B) allocate equitably reasonable dues, fees, and
other charges among end users for all activities under
this section;
``(C) provide fair and impartial procedures for
enforcement of reliability standards through the
imposition of penalties in accordance with subsection
(e) (including limitations on activities, functions, or
operations, or other appropriate sanctions);
``(D) provide for reasonable notice and opportunity
for public comment, due process, openness, and balance
of interests in developing reliability standards and
otherwise exercising its duties; and
``(E) provide for taking, after certification,
appropriate steps to gain recognition in Canada and
Mexico.
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 more 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 Infrastructure Modernization
SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
(a) Amendment of Federal Power Act.--Part II of the Federal Power
Act is amended by adding at the end the following:
``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
``(a) Designation of National Interest Electric Transmission
Corridors.--
``(1) Transmission congestion study.--Within 1 year after
the enactment of this section, and every 3 years thereafter,
the Secretary of Energy, in consultation with affected States,
shall conduct a study of electric transmission congestion.
After considering alternatives and recommendations from
interested parties, including an opportunity for comment from
affected States, the Secretary shall issue a report, based on
such study, which may designate any geographic area
experiencing electric energy transmission capacity constraints
or congestion that adversely affects consumers as a national
interest electric transmission corridor. The Secretary shall
conduct the study and issue the report in consultation with any
appropriate regional entity referenced in section 215 of this
Act.
``(2) Considerations.--In determining whether to designate
a national interest electric transmission corridor referred to
in paragraph (1) under this section, the Secretary may consider
whether--
``(A) the economic vitality and development of the
corridor, or the end markets served by the corridor,
may be constrained by lack of adequate or reasonably
priced electricity;
``(B)(i) economic growth in the corridor, or the
end markets served by the corridor, may be jeopardized
by reliance on limited sources of energy; and
``(ii) a diversification of supply is warranted;
``(C) the energy independence of the United States
would be served by the designation;
``(D) the designation would be in the interest of
national energy policy; and
``(E) the designation would enhance national
defense and homeland security.
``(b) Construction Permit.--Except as provided in subsection (i),
the Commission is authorized, after notice and an opportunity for
hearing, to issue a permit or permits for the construction or
modification of electric transmission facilities in a national interest
electric transmission corridor designated by the Secretary under
subsection (a) if the Commission finds that--
``(1)(A) a State in which the transmission facilities are
to be constructed or modified is without authority to--
``(i) approve the siting of the facilities; or
``(ii) consider the interstate benefits expected to
be achieved by the proposed construction or
modification of transmission facilities in the State;
``(B) the applicant for a permit is a transmitting utility
under this Act but does not qualify to apply for a permit or
siting approval for the proposed project in a State because the
applicant does not serve end-use customers in the State; or
``(C) a State commission or other entity that has authority
to approve the siting of the facilities has--
``(i) withheld approval for more than 1 year after
the filing of an application pursuant to applicable law
seeking approval or 1 year after the designation of the
relevant national interest electric transmission
corridor, whichever is later; or
``(ii) conditioned its approval in such a manner
that the proposed construction or modification will not
significantly reduce transmission congestion in
interstate commerce or is not economically feasible;
``(2) the facilities to be authorized by the permit will be
used for the transmission of electric energy in interstate
commerce;
``(3) the proposed construction or modification is
consistent with the public interest;
``(4) the proposed construction or modification will
significantly reduce transmission congestion in interstate
commerce and protects or benefits consumers; and
``(5) the proposed construction or modification is
consistent with sound national energy policy and will enhance
energy independence.
``(c) Permit Applications.--Permit applications under subsection
(b) shall be made in writing to the Commission. The Commission shall
issue rules setting forth the form of the application, the information
to be contained in the application, and the manner of service of notice
of the permit application upon interested persons.
``(d) Comments.--In any proceeding before the Commission under
subsection (b), the Commission shall afford each State in which a
transmission facility covered by the permit is or will be located, each
affected Federal agency and Indian tribe, private property owners, and
other interested persons, a reasonable opportunity to present their
views and recommendations with respect to the need for and impact of a
facility covered by the permit.
``(e) Rights-of-Way.--In the case of a permit under subsection (b)
for electric transmission facilities to be located on property other
than property owned by the United States or a State, if the permit
holder cannot acquire by contract, or is unable to agree with the owner
of the property to the compensation to be paid for, the necessary
right-of-way to construct or modify such transmission facilities, the
permit holder may acquire the right-of-way by the exercise of the right
of eminent domain in the district court of the United States for the
district in which the property concerned is located, or in the
appropriate court of the State in which the property is located. The
practice and procedure in any action or proceeding for that purpose in
the district court of the United States shall conform as nearly as may
be with the practice and procedure in similar action or proceeding in
the courts of the State where the property is situated.
``(f) State Law.--Nothing in this section shall preclude any person
from constructing or modifying any transmission facility pursuant to
State law.
``(g) Compensation.--Any exercise of eminent domain authority
pursuant to this section shall be considered a taking of private
property for which just compensation is due. Just compensation shall be
an amount equal to the full fair market value of the property taken on
the date of the exercise of eminent domain authority, except that the
compensation shall exceed fair market value if necessary to make the
landowner whole for decreases in the value of any portion of the land
not subject to eminent domain. Any parcel of land acquired by eminent
domain under this subsection shall be transferred back to the owner
from whom it was acquired (or his heirs or assigns) if the land is not
used for the construction or modification of electric transmission
facilities within a reasonable period of time after the acquisition.
Other than construction, modification, operation, or maintenance of
electric transmission facilities and related facilities, property
acquired under subsection (e) may not be used for any purpose
(including use for any heritage area, recreational trail, or park)
without the consent of the owner of the parcel from whom the property
was acquired (or the owner's heirs or assigns).
``(h) Coordination of Federal Authorizations for Transmission and
Distribution Facilities.--
``(1) Lead agency.--If an applicant, or prospective
applicant, for a Federal authorization related to an electric
transmission or distribution facility so requests, the
Department of Energy (DOE) shall act as the lead agency for
purposes of coordinating all applicable Federal authorizations
and related environmental reviews of the facility. For purposes
of this subsection, the term `Federal authorization' means any
authorization required under Federal law in order to site a
transmission or distribution facility, including but not
limited to such permits, special use authorizations,
certifications, opinions, or other approvals as may be
required, whether issued by a Federal or a State agency. To the
maximum extent practicable under applicable Federal law, the
Secretary of Energy shall coordinate this Federal authorization
and review process with any Indian tribes, multi-State
entities, and State agencies that are responsible for
conducting any separate permitting and environmental reviews of
the facility, to ensure timely and efficient review and permit
decisions.
``(2) Authority to set deadlines.--As lead agency, the
Department of Energy, in consultation with agencies responsible
for Federal authorizations and, as appropriate, with Indian
tribes, multi-State entities, and State agencies that are
willing to coordinate their own separate permitting and
environmental reviews with the Federal authorization and
environmental reviews, shall establish prompt and binding
intermediate milestones and ultimate deadlines for the review
of, and Federal authorization decisions relating to, the
proposed facility. The Secretary of Energy shall ensure that
once an application has been submitted with such data as the
Secretary considers necessary, all permit decisions and related
environmental reviews under all applicable Federal laws shall
be completed within 1 year or, if a requirement of another
provision of Federal law makes this impossible, as soon
thereafter as is practicable. The Secretary of Energy also
shall provide an expeditious pre-application mechanism for
prospective applicants to confer with the agencies involved to
have each such agency determine and communicate to the
prospective applicant within 60 days of when the prospective
applicant submits a request for such information concerning--
``(A) the likelihood of approval for a potential
facility; and
``(B) key issues of concern to the agencies and
public.
``(3) Consolidated environmental review and record of
decision.--As lead agency head, the Secretary of Energy, in
consultation with the affected agencies, shall prepare a single
environmental review document, which shall be used as the basis
for all decisions on the proposed project under Federal law.
The document may be an environmental assessment or
environmental impact statement under the National Environmental
Policy Act of 1969 if warranted, or such other form of analysis
as may be warranted. The Secretary of Energy and the heads of
other agencies shall streamline the review and permitting of
transmission and distribution facilities within corridors
designated under section 503 of the Federal Land Policy and
Management Act (43 U.S.C. 1763) by fully taking into account
prior analyses and decisions relating to the corridors. Such
document shall include consideration by the relevant agencies
of any applicable criteria or other matters as required under
applicable laws.
``(4) Appeals.--In the event that any agency has denied a
Federal authorization required for a transmission or
distribution facility, or has failed to act by the deadline
established by the Secretary pursuant to this section for
deciding whether to issue the authorization, the applicant or
any State in which the facility would be located may file an
appeal with the Secretary, who shall, in consultation with the
affected agency, review the denial or take action on the
pending application. Based on the overall record and in
consultation with the affected agency, the Secretary may then
either issue the necessary authorization with any appropriate
conditions, or deny the application. The Secretary shall issue
a decision within 90 days of the filing of the appeal. In
making a decision under this paragraph, the Secretary shall
comply with applicable requirements of Federal law, including
any requirements of the Endangered Species Act, the Clean Water
Act, the National Forest Management Act, the National
Environmental Policy Act of 1969, and the Federal Land Policy
and Management Act.
``(5) Conforming regulations and memoranda of
understanding.--Not later than 18 months after the date of
enactment of this section, the Secretary of Energy shall issue
any regulations necessary to implement this subsection. Not
later than 1 year after the date of enactment of this section,
the Secretary and the heads of all Federal agencies with
authority to issue Federal authorizations shall enter into
Memoranda of Understanding to ensure the timely and coordinated
review and permitting of electricity transmission and
distribution facilities. The head of each Federal agency with
authority to issue a Federal authorization shall designate a
senior official responsible for, and dedicate sufficient other
staff and resources to ensure, full implementation of the DOE
regulations and any Memoranda. Interested Indian tribes, multi-
State entities, and State agencies may enter such Memoranda of
Understanding.
``(6) Duration and renewal.--Each Federal land use
authorization for an electricity transmission or distribution
facility shall be issued--
``(A) for a duration, as determined by the
Secretary of Energy, commensurate with the anticipated
use of the facility, and
``(B) with appropriate authority to manage the
right-of-way for reliability and environmental
protection.
Upon the expiration of any such authorization (including an
authorization issued prior to enactment of this section), the
authorization shall be reviewed for renewal taking fully into
account reliance on such electricity infrastructure,
recognizing its importance for public health, safety and
economic welfare and as a legitimate use of Federal lands.
``(7) Maintaining and enhancing the transmission
infrastructure.--In exercising the responsibilities under this
section, the Secretary of Energy shall consult regularly with
the Federal Energy Regulatory Commission (FERC), FERC-approved
electric reliability organizations (including related regional
entities), and FERC-approved Regional Transmission
Organizations and Independent System Operators.
``(i) Interstate Compacts.--The consent of Congress is hereby given
for 3 or more contiguous States to enter into an interstate compact,
subject to approval by Congress, establishing regional transmission
siting agencies to facilitate siting of future electric energy
transmission facilities within such States and to carry out the
electric energy transmission siting responsibilities of such States.
The Secretary of Energy may provide technical assistance to regional
transmission siting agencies established under this subsection. Such
regional transmission siting agencies shall have the authority to
review, certify, and permit siting of transmission facilities,
including facilities in national interest electric transmission
corridors (other than facilities on property owned by the United
States). The Commission shall have no authority to issue a permit for
the construction or modification of electric transmission facilities
within a State that is a party to a compact, unless the members of a
compact are in disagreement and the Secretary makes, after notice and
an opportunity for a hearing, the finding described in subsection
(b)(1)(C).
``(j) Savings Clause.--Nothing in this section shall be construed
to affect any requirement of the environmental laws of the United
States, including, but not limited to, the National Environmental
Policy Act of 1969. Subsection (h)(4) of this section shall not apply
to any Congressionally-designated components of the National Wilderness
Preservation System, the National Wild and Scenic Rivers System, or the
National Park system (including National Monuments therein).
``(k) ERCOT.--This section shall not apply within the area referred
to in section 212(k)(2)(A).''.
(b) Reports to Congress on Corridors and Rights of Way on Federal
Lands.--The Secretary of the Interior, the Secretary of Energy, the
Secretary of Agriculture, and the Chairman of the Council on
Environmental Quality shall, within 90 days of the date of enactment of
this subsection, submit a joint report to Congress identifying each of
the following:
(1) All existing designated transmission and distribution
corridors on Federal land and the status of work related to
proposed transmission and distribution corridor designations
under Title V of the Federal Land Policy and Management Act (43
U.S.C. 1761 et. Seq.), the schedule for completing such work,
any impediments to completing the work, and steps that Congress
could take to expedite the process.
(2) The number of pending applications to locate
transmission and distribution facilities on Federal lands, key
information relating to each such facility, how long each
application has been pending, the schedule for issuing a timely
decision as to each facility, and progress in incorporating
existing and new such rights-of-way into relevant land use and
resource management plans or their equivalent.
(3) The number of existing transmission and distribution
rights-of-way on Federal lands that will come up for renewal
within the following 5, 10, and 15 year periods, and a
description of how the Secretaries plan to manage such
renewals.
SEC. 1222. THIRD-PARTY FINANCE.
(a) Existing Facilities.--The Secretary of Energy (hereinafter in
this section referred to as the ``Secretary''), acting through the
Administrator of the Western Area Power Administration (hereinafter in
this section referred to as ``WAPA''), or through the Administrator of
the Southwestern Power Administration (hereinafter in this section
referred to as ``SWPA''), or both, may design, develop, construct,
operate, maintain, or own, or participate with other entities in
designing, developing, constructing, operating, maintaining, or owning,
an electric power transmission facility and related facilities
(``Project'') needed to upgrade existing transmission facilities owned
by SWPA or WAPA if the Secretary of Energy, in consultation with the
applicable Administrator, determines that the proposed Project--
(1)(A) is located in a national interest electric
transmission corridor designated under section 216(a) of the
Federal Power Act and will reduce congestion of electric
transmission in interstate commerce; or
(B) is necessary to accommodate an actual or projected
increase in demand for electric transmission capacity;
(2) is consistent with--
(A) transmission needs identified, in a
transmission expansion plan or otherwise, by the
appropriate Regional Transmission Organization or
Independent System Operator (as defined in the Federal
Power Act), if any, or approved regional reliability
organization; and
(B) efficient and reliable operation of the
transmission grid; and
(3) would be operated in conformance with prudent utility
practice.
(b) New Facilities.--The Secretary, acting through WAPA or SWPA, or
both, may design, develop, construct, operate, maintain, or own, or
participate with other entities in designing, developing, constructing,
operating, maintaining, or owning, a new electric power transmission
facility and related facilities (``Project'') located within any State
in which WAPA or SWPA operates if the Secretary, in consultation with
the applicable Administrator, determines that the proposed Project--
(1)(A) is located in an area designated under section
216(a) of the Federal Power Act and will reduce congestion of
electric transmission in interstate commerce; or
(B) is necessary to accommodate an actual or projected
increase in demand for electric transmission capacity;
(2) is consistent with--
(A) transmission needs identified, in a
transmission expansion plan or otherwise, by the
appropriate Regional Transmission Organization or
Independent System Operator, if any, or approved
regional reliability organization; and
(B) efficient and reliable operation of the
transmission grid;
(3) will be operated in conformance with prudent utility
practice;
(4) will be operated by, or in conformance with the rules
of, the appropriate (A) Regional Transmission Organization or
Independent System Operator, if any, or (B) if such an
organization does not exist, regional reliability organization;
and
(5) will not duplicate the functions of existing
transmission facilities or proposed facilities which are the
subject of ongoing or approved siting and related permitting
proceedings.
(c) Other Funds.--
(1) In general.--In carrying out a Project under subsection
(a) or (b), the Secretary may accept and use funds contributed
by another entity for the purpose of carrying out the Project.
(2) Availability.--The contributed funds shall be available
for expenditure for the purpose of carrying out the Project--
(A) without fiscal year limitation; and
(B) as if the funds had been appropriated
specifically for that Project.
(3) Allocation of costs.--In carrying out a Project under
subsection (a) or (b), any costs of the Project not paid for by
contributions from another entity shall be collected through
rates charged to customers using the new transmission
capability provided by the Project and allocated equitably
among these project beneficiaries using the new transmission
capability.
(d) Relationship to Other Laws.--Nothing in this section affects
any requirement of--
(1) any Federal environmental law, including the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
(2) any Federal or State law relating to the siting of
energy facilities; or
(3) any existing authorizing statutes.
(e) Savings Clause.--Nothing in this section shall constrain or
restrict an Administrator in the utilization of other authority
delegated to the Administrator of WAPA or SWPA.
(f) Secretarial Determinations.--Any determination made pursuant to
subsections (a) or (b) shall be based on findings by the Secretary
using the best available data.
(g) Maximum Funding Amount.--The Secretary shall not accept and use
more than $100,000,000 under subsection (c)(1) for the period
encompassing fiscal years 2006 through 2015.
SEC. 1223. TRANSMISSION SYSTEM MONITORING.
Within 6 months after the date of enactment of this Act, the
Secretary of Energy and the Federal Energy Regulatory Commission shall
study and report to Congress on the steps which must be taken to
establish a system to make available to all transmission system owners
and Regional Transmission Organizations (as defined in the Federal
Power Act) within the Eastern and Western Interconnections real-time
information on the functional status of all transmission lines within
such Interconnections. In such study, the Commission shall assess
technical means for implementing such transmission information system
and identify the steps the Commission or Congress must take to require
the implementation of such system.
SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES.
(a) Authority.--The Federal Energy Regulatory Commission, in the
exercise of its authorities under the Federal Power Act and the Public
Utility Regulatory Policies Act of 1978, shall encourage the deployment
of advanced transmission technologies.
(b) Definition.--For the purposes of this section, the term
``advanced transmission technologies'' means technologies that increase
the capacity, efficiency, or reliability of existing or new
transmission facilities, including, but not limited to--
(1) high-temperature lines (including superconducting
cables);
(2) underground cables;
(3) advanced conductor technology (including advanced
composite conductors, high-temperature low-sag conductors, and
fiber optic temperature sensing conductors);
(4) high-capacity ceramic electric wire, connectors, and
insulators;
(5) optimized transmission line configurations (including
multiple phased transmission lines);
(6) modular equipment;
(7) wireless power transmission;
(8) ultra-high voltage lines;
(9) high-voltage DC technology;
(10) flexible AC transmission systems;
(11) energy storage devices (including pumped hydro,
compressed air, superconducting magnetic energy storage,
flywheels, and batteries);
(12) controllable load;
(13) distributed generation (including PV, fuel cells,
microturbines);
(14) enhanced power device monitoring;
(15) direct system state sensors;
(16) fiber optic technologies;
(17) power electronics and related software (including real
time monitoring and analytical software); and
(18) any other technologies the Commission considers
appropriate.
(c) Obsolete or Impracticable Technologies.--The Commission is
authorized to cease encouraging the deployment of any technology
described in this section on a finding that such technology has been
rendered obsolete or otherwise impracticable to deploy.
SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.
(a) Electric Transmission and Distribution Program.--The Secretary
of Energy (hereinafter in this section referred to as the
``Secretary'') acting through the Director of the Office of Electric
Transmission and Distribution shall establish a comprehensive research,
development, demonstration and commercial application program to
promote improved reliability and efficiency of electrical transmission
and distribution systems. This program shall include--
(1) advanced energy delivery and storage technologies,
materials, and systems, including new transmission
technologies, such as flexible alternating current transmission
systems, composite conductor materials and other technologies
that enhance reliability, operational flexibility, or power-
carrying capability;
(2) advanced grid reliability and efficiency technology
development;
(3) technologies contributing to significant load
reductions;
(4) advanced metering, load management, and control
technologies;
(5) technologies to enhance existing grid components;
(6) the development and use of high-temperature
superconductors to--
(A) enhance the reliability, operational
flexibility, or power-carrying capability of electric
transmission or distribution systems; or
(B) increase the efficiency of electric energy
generation, transmission, distribution, or storage
systems;
(7) integration of power systems, including systems to
deliver high-quality electric power, electric power
reliability, and combined heat and power;
(8) supply of electricity to the power grid by small scale,
distributed and residential-based power generators;
(9) the development and use of advanced grid design,
operation and planning tools;
(10) any other infrastructure technologies, as appropriate;
and
(11) technology transfer and education.
(b) Program Plan.--Not later than 1 year after the date of the
enactment of this legislation, the Secretary, in consultation with
other appropriate Federal agencies, shall prepare and transmit to
Congress a 5-year program plan to guide activities under this section.
In preparing the program plan, the Secretary may consult with
utilities, energy services providers, manufacturers, institutions of
higher education, other appropriate State and local agencies,
environmental organizations, professional and technical societies, and
any other persons the Secretary considers appropriate.
(c) Implementation.--The Secretary shall consider implementing this
program using a consortium of industry, university and national
laboratory participants.
(d) Report.--Not later than 2 years after the transmittal of the
plan under subsection (b), the Secretary shall transmit a report to
Congress describing the progress made under this section and
identifying any additional resources needed to continue the development
and commercial application of transmission and distribution
infrastructure technologies.
(e) Power Delivery Research Initiative.--
(1) In general.--The Secretary shall establish a research,
development, demonstration, and commercial application
initiative specifically focused on power delivery utilizing
components incorporating high temperature superconductivity.
(2) Goals.--The goals of this initiative shall be to--
(A) establish facilities to develop high
temperature superconductivity power applications in
partnership with manufacturers and utilities;
(B) provide technical leadership for establishing
reliability for high temperature superconductivity
power applications including suitable modeling and
analysis;
(C) facilitate commercial transition toward direct
current power transmission, storage, and use for high
power systems utilizing high temperature
superconductivity; and
(D) facilitate the integration of very low
impedance high temperature superconducting wires and
cables in existing electric networks to improve system
performance, power flow control and reliability.
(3) Requirements.--The initiative shall include--
(A) feasibility analysis, planning, research, and
design to construct demonstrations of superconducting
links in high power, direct current and controllable
alternating current transmission systems;
(B) public-private partnerships to demonstrate
deployment of high temperature superconducting cable
into testbeds simulating a realistic transmission grid
and under varying transmission conditions, including
actual grid insertions; and
(C) testbeds developed in cooperation with national
laboratories, industries, and universities to
demonstrate these technologies, prepare the
technologies for commercial introduction, and address
cost or performance roadblocks to successful commercial
use.
(4) Authorization of appropriations.--For purposes of
carrying out this subsection, there are authorized to be
appropriated--
(A) for fiscal year 2006, $15,000,000;
(B) for fiscal year 2007, $20,000,000;
(C) for fiscal year 2008, $30,000,000;
(D) for fiscal year 2009, $35,000,000; and
(E) for fiscal year 2010, $40,000,000.
SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.
(a) Program.--The Secretary of Energy is authorized to establish an
Advanced Power System Technology Incentive Program to support the
deployment of certain advanced power system technologies and to improve
and protect certain critical governmental, industrial, and commercial
processes. Funds provided under this section shall be used by the
Secretary to make incentive payments to eligible owners or operators of
advanced power system technologies to increase power generation through
enhanced operational, economic, and environmental performance. Payments
under this section may only be made upon receipt by the Secretary of an
incentive payment application establishing an applicant as either--
(1) a qualifying advanced power system technology facility;
or
(2) a qualifying security and assured power facility.
(b) Incentives.--Subject to availability of funds, a payment of 1.8
cents per kilowatt-hour shall be paid to the owner or operator of a
qualifying advanced power system technology facility under this section
for electricity generated at such facility. An additional 0.7 cents per
kilowatt-hour shall be paid to the owner or operator of a qualifying
security and assured power facility for electricity generated at such
facility. Any facility qualifying under this section shall be eligible
for an incentive payment for up to, but not more than, the first
10,000,000 kilowatt-hours produced in any fiscal year.
(c) Eligibility.--For purposes of this section:
(1) Qualifying advanced power system technology facility.--
The term ``qualifying advanced power system technology
facility'' means a facility using an advanced fuel cell,
turbine, or hybrid power system or power storage system to
generate or store electric energy.
(2) Qualifying security and assured power facility.--The
term ``qualifying security and assured power facility'' means a
qualifying advanced power system technology facility determined
by the Secretary of Energy, in consultation with the Secretary
of Homeland Security, to be in critical need of secure,
reliable, rapidly available, high-quality power for critical
governmental, industrial, or commercial applications.
(d) Authorization.--There are authorized to be appropriated to the
Secretary of Energy for the purposes of this section, $10,000,000 for
each of the fiscal years 2006 through 2012.
SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.
(a) Creation of an Office of Electric Transmission and
Distribution.--Title II of the Department of Energy Organization Act
(42 U.S.C. 7131 et seq.) (as amended by section 502(a) of this Act) is
amended by inserting the following after section 217, as added by title
V of this Act:
``SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.
``(a) Establishment.--There is established within the Department an
Office of Electric Transmission and Distribution. This Office shall be
headed by a Director, subject to the authority of the Secretary. The
Director shall be appointed by the Secretary. The Director shall be
compensated at the annual rate prescribed for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
``(b) Director.--The Director shall--
``(1) coordinate and develop a comprehensive, multi-year
strategy to improve the Nation's electricity transmission and
distribution;
``(2) implement or, where appropriate, coordinate the
implementation of, the recommendations made in the Secretary's
May 2002 National Transmission Grid Study;
``(3) oversee research, development, and demonstration to
support Federal energy policy related to electricity
transmission and distribution;
``(4) grant authorizations for electricity import and
export pursuant to section 202(c), (d), (e), and (f) of the
Federal Power Act (16 U.S.C. 824a);
``(5) perform other functions, assigned by the Secretary,
related to electricity transmission and distribution; and
``(6) develop programs for workforce training in power and
transmission engineering.''.
(b) Conforming Amendments.--(1) The table of contents of the
Department of Energy Organization Act (42 U.S.C. 7101 note) is amended
by inserting after the item relating to section 217 the following new
item:
``Sec. 218. Office of Electric Transmission and Distribution.''.
(2) Section 5315 of title 5, United States Code, is amended by
inserting after the item relating to ``Inspector General, Department of
Energy.'' the following:
``Director, Office of Electric Transmission and
Distribution, Department of Energy.''.
Subtitle C--Transmission Operation Improvements
SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by inserting after section 211 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. SENSE OF CONGRESS ON REGIONAL TRANSMISSION ORGANIZATIONS.
It is the sense of Congress that, in order to promote fair, open
access to electric transmission service, benefit retail consumers,
facilitate wholesale competition, improve efficiencies in transmission
grid management, promote grid reliability, remove opportunities for
unduly discriminatory or preferential transmission practices, and
provide for the efficient development of transmission infrastructure
needed to meet the growing demands of competitive wholesale power
markets, all transmitting utilities in interstate commerce should
voluntarily become members of Regional Transmission Organizations as
defined in section 3 of the Federal Power Act.
SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION APPLICATIONS PROGRESS
REPORT.
Not later than 120 days after the date of enactment of this
section, the Federal Energy Regulatory Commission shall submit to
Congress a report containing each of the following:
(1) A list of all regional transmission organization
applications filed at the Commission pursuant to subpart F of
part 35 of title 18, Code of Federal Regulations (in this
section referred to as ``Order No. 2000''), including an
identification of each public utility and other entity included
within the proposed membership of the regional transmission
organization.
(2) A brief description of the status of each pending
regional transmission organization application, including a
precise explanation of how each fails to comply with the
minimal requirements of Order No. 2000 and what steps need to
be taken to bring each application into such compliance.
(3) For any application that has not been finally approved
by the Commission, a detailed description of every aspect of
the application that the Commission has determined does not
conform to the requirements of Order No. 2000.
(4) For any application that has not been finally approved
by the Commission, an explanation by the Commission of why the
items described pursuant to paragraph (3) constitute material
noncompliance with the requirements of the Commission's Order
No. 2000 sufficient to justify denial of approval by the
Commission.
(5) For all regional transmission organization applications
filed pursuant to the Commission's Order No. 2000, whether
finally approved or not--
(A) a discussion of that regional transmission
organization's efforts to minimize rate seams between
itself and--
(i) other regional transmission
organizations; and
(ii) entities not participating in a
regional transmission organization;
(B) a discussion of the impact of such seams on
consumers and wholesale competition; and
(C) a discussion of minimizing cost-shifting on
consumers.
SEC. 1234. 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.
SEC. 1235. STANDARD MARKET DESIGN.
(a) Remand.--The Commission's proposed rulemaking entitled
``Remedying Undue Discrimination through Open Access Transmission
Service and Standard Electricity Market Design'' (Docket No. RM01-12-
000) (``SMD NOPR'') is remanded to the Commission for reconsideration.
No final rule mandating a standard electricity market design pursuant
to the proposed rulemaking, including any rule or order of general
applicability within the scope of the proposed rulemaking, may be
issued before October 31, 2006, or take effect before December 31,
2006. Any final rule issued by the Commission pursuant to the proposed
rulemaking shall be preceded by a second notice of proposed rulemaking
issued after the date of enactment of this Act and an opportunity for
public comment.
(b) Savings Clause.--This section shall not be construed to modify
or diminish any authority or obligation the Commission has under this
Act, the Federal Power Act, or other applicable law, including, but not
limited to, any authority to--
(1) issue any rule or order (of general or particular
applicability) pursuant to any such authority or obligation; or
(2) act on a filing or filings by 1 or more transmitting
utilities for the voluntary formation of a Regional
Transmission Organization or Independent System Operator (as
defined in the Federal Power Act) (and related market
structures or rules) or voluntary modification of an existing
Regional Transmission Organization or Independent System
Operator (and related market structures or rules).
SEC. 1236. NATIVE LOAD SERVICE OBLIGATION.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.
``(a) Meeting Service Obligations.--(1) Any load-serving entity
that, as of the date of enactment of this section--
``(A) owns generation facilities, markets the output of
Federal generation facilities, or holds rights under 1 or more
wholesale contracts to purchase electric energy, for the
purpose of meeting a service obligation, and
``(B) by reason of ownership of transmission facilities, or
1 or more contracts or service agreements for firm transmission
service, holds firm transmission rights for delivery of the
output of such generation facilities or such purchased energy
to meet such service obligation,
is entitled to use such firm transmission rights, or, equivalent
tradable or financial transmission rights, in order to deliver such
output or purchased energy, or the output of other generating
facilities or purchased energy to the extent deliverable using such
rights, to the extent required to meet its service obligation.
``(2) To the extent that all or a portion of the service obligation
covered by such firm transmission rights or equivalent tradable or
financial transmission rights is transferred to another load-serving
entity, the successor load-serving entity shall be entitled to use the
firm transmission rights or equivalent tradable or financial
transmission rights associated with the transferred service obligation.
Subsequent transfers to another load-serving entity, or back to the
original load-serving entity, shall be entitled to the same rights.
``(3) The Commission shall exercise its authority under this Act in
a manner that facilitates the planning and expansion of transmission
facilities to meet the reasonable needs of load-serving entities to
satisfy their service obligations, and enables load-serving entities to
secure firm transmission rights (or equivalent tradable or financial
rights) on a long term basis for long term power supply arrangements
made, or planned, to meet such needs.
``(b) Allocation of Transmission Rights.--Nothing in subsections
(a)(1) and (a)(2) of this section shall affect any existing or future
methodology employed by an RTO or ISO for allocating or auctioning
transmission rights if such RTO or ISO was authorized by the Commission
to allocate or auction financial transmission rights on its system as
of January 1, 2005, and the Commission determines that any future
allocation or auction is just, reasonable and not unduly discriminatory
or preferential, provided, however, that if such an RTO or ISO never
allocated financial transmission rights on its system that pertained to
a period before January 1, 2005, with respect to any application by
such RTO or ISO that would change its methodology the Commission shall
exercise its authority in a manner consistent with the Act and the
policies expressed in subsections (a)(1) and (a)(2) as applied to firm
transmission rights held by a load serving entity as of January 1,
2005, to the extent the associated generation ownership or power
purchase arrangements remain in effect.
``(c) Certain Transmission Rights.--The Commission may exercise
authority under this Act to make transmission rights not used to meet
an obligation covered by subsection (a) available to other entities in
a manner determined by the Commission to be just, reasonable, and not
unduly discriminatory or preferential.
``(d) Obligation to Build.--Nothing in this Act shall relieve a
load-serving entity from any obligation under State or local law to
build transmission or distribution facilities adequate to meet its
service obligations.
``(e) Contracts.--Nothing in this section shall provide a basis for
abrogating any contract or service agreement for firm transmission
service or rights in effect as of the date of the enactment of this
subsection. If an ISO in the Western Interconnection had allocated
financial transmission rights prior to the date of enactment of this
section but had not done so with respect to one or more load-serving
entities' firm transmission rights held under contracts to which the
preceding sentence applies (or held by reason of ownership of
transmission facilities), such load-serving entities may not be
required, without their consent, to convert such firm transmission
rights to tradable or financial rights, except where the load-serving
entity has voluntarily joined the ISO as a participating transmission
owner (or its successor) in accordance with the ISO tariff.
``(f) Water Pumping Facilities.--The Commission shall ensure that
any entity described in section 201(f) that owns transmission
facilities used predominately to support its own water pumping
facilities shall have, with respect to such facilities, protections for
transmission service comparable to those provided to load-serving
entities pursuant to this section.
``(g) FERC Rulemaking on Long-Term Transmission Rights in Organized
Markets.--Within one year after the date of enactment of this section
and after notice and an opportunity for comment, the Commission shall
by rule or order implement subsection (a)(3) in Commission-approved
RTOs and ISOs with organized electricity markets.
``(h) ERCOT.--This section shall not apply within the area referred
to in section 212(k)(2)(A).
``(i) Jurisdiction.--This section does not authorize the Commission
to take any action not otherwise within its jurisdiction.
``(j) Effect of Exercising Rights.--An entity that lawfully
exercises rights granted under subsection (a) shall not be considered
by such action as engaging in undue discrimination or preference under
this Act.
``(k) TVA Area.--For purposes of subsection (a)(1)(B), a load-
serving entity that is located within the service area of the Tennessee
Valley Authority and that has a firm wholesale power supply contract
with the Tennessee Valley Authority shall be deemed to hold firm
transmission rights for the transmission of such power.
``(l) Definitions.--For purposes of this section:
``(1) The term `distribution utility' means an electric
utility that has a service obligation to end-users or to a
State utility or electric cooperative that, directly or
indirectly, through 1 or more additional State utilities or
electric cooperatives, provides electric service to end-users.
``(2) The term `load-serving entity' means a distribution
utility or an electric utility that has a service obligation.
``(3) The term `service obligation' means a requirement
applicable to, or the exercise of authority granted to, an
electric utility under Federal, State or local law or under
long-term contracts to provide electric service to end-users or
to a distribution utility.
``(4) The term `State utility' means a State or any
political subdivision of a State, or any agency, authority, or
instrumentality of any 1 or more of the foregoing, or a
corporation which is wholly owned, directly or indirectly, by
any 1 or more of the foregoing, competent to carry on the
business of developing, transmitting, utilizing or distributing
power''.
SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.
(a) Study.--The Secretary of Energy, in coordination and
consultation with the States, shall conduct a study on--
(1) the procedures currently used by electric utilities to
perform economic dispatch;
(2) identifying possible revisions to those procedures to
improve the ability of nonutility generation resources to offer
their output for sale for the purpose of inclusion in economic
dispatch; and
(3) the potential benefits to residential, commercial, and
industrial electricity consumers nationally and in each state
if economic dispatch procedures were revised to improve the
ability of nonutility generation resources to offer their
output for inclusion in economic dispatch.
(b) Definition.--The term ``economic dispatch'' when used in this
section means the operation of generation facilities to produce energy
at the lowest cost to reliably serve consumers, recognizing any
operational limits of generation and transmission facilities.
(c) Report to Congress and the States.--Not later than 90 days
after the date of enactment of this Act, and on a yearly basis
following, the Secretary of Energy shall submit a report to Congress
and the States on the results of the study conducted under subsection
(a), including recommendations to Congress and the States for any
suggested legislative or regulatory changes.
Subtitle D--Transmission Rate Reform
SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT.
``(a) Rulemaking Requirement.--Within 1 year after the enactment of
this section, the Commission shall establish, by rule, incentive-based
(including, but not limited to performance-based) rate treatments for
the transmission of electric energy in interstate commerce by public
utilities for the purpose of benefiting consumers by ensuring
reliability and reducing the cost of delivered power by reducing
transmission congestion. Such rule shall--
``(1) promote reliable and economically efficient
transmission and generation of electricity by promoting capital
investment in the enlargement, improvement, maintenance and
operation of facilities for the transmission of electric energy
in interstate commerce;
``(2) provide a return on equity that attracts new
investment in transmission facilities (including related
transmission technologies);
``(3) encourage deployment of transmission technologies and
other measures to increase the capacity and efficiency of
existing transmission facilities and improve the operation of
such facilities; and
``(4) allow recovery of all prudently incurred costs
necessary to comply with mandatory reliability standards issued
pursuant to section 215 of this Act.
The Commission may, from time to time, revise such rule.
``(b) Additional Incentives for RTO Participation.--In the rule
issued under this section, the Commission shall, to the extent within
its jurisdiction, provide for incentives to each transmitting utility
or electric utility that joins a Regional Transmission Organization or
Independent System Operator. Incentives provided by the Commission
pursuant to such rule shall include--
``(1) recovery of all prudently incurred costs to develop
and participate in any proposed or approved RTO, ISO, or
independent transmission company;
``(2) recovery of all costs previously approved by a State
commission which exercised jurisdiction over the transmission
facilities prior to the utility's participation in the RTO or
ISO, including costs necessary to honor preexisting
transmission service contracts, in a manner which does not
reduce the revenues the utility receives for transmission
services for a reasonable transition period after the utility
joins the RTO or ISO;
``(3) recovery as an expense in rates of the costs
prudently incurred to conduct transmission planning and
reliability activities, including the costs of participating in
RTO, ISO and other regional planning activities and design,
study and other precertification costs involved in seeking
permits and approvals for proposed transmission facilities;
``(4) a current return in rates for construction work in
progress for transmission facilities and full recovery of
prudently incurred costs for constructing transmission
facilities;
``(5) formula transmission rates; and
``(6) a maximum 15 year accelerated depreciation on new
transmission facilities for rate treatment purposes.
The Commission shall ensure that any costs recoverable pursuant to this
subsection may be recovered by such utility through the transmission
rates charged by such utility or through the transmission rates charged
by the RTO or ISO that provides transmission service to such utility.
``(c) Just and Reasonable Rates.--All rates approved under the
rules adopted pursuant to this section, including any revisions to such
rules, are subject to the requirement of sections 205 and 206 that all
rates, charges, terms, and conditions be just and reasonable and not
unduly discriminatory or preferential.''.
Subtitle E--Amendments to PURPA
SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.
(a) Adoption of Standards.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(11) Net metering.--Each electric utility shall make
available upon request net metering service to any electric
consumer that the electric utility serves. For purposes of this
paragraph, the term `net metering service' means service to an
electric consumer under which electric energy generated by that
electric consumer from an eligible on-site generating facility
and delivered to the local distribution facilities may be used
to offset electric energy provided by the electric utility to
the electric consumer during the applicable billing period.
``(12) Fuel sources.--Each electric utility shall develop a
plan to minimize dependence on 1 fuel source and to ensure that
the electric energy it sells to consumers is generated using a
diverse range of fuels and technologies, including renewable
technologies.
``(13) Fossil fuel generation efficiency.--Each electric
utility shall develop and implement a 10-year plan to increase
the efficiency of its fossil fuel generation.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding at the end the following:
``(3)(A) Not later than 2 years after the enactment of this
paragraph, each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority) and each
nonregulated electric utility shall commence the consideration referred
to in section 111, or set a hearing date for such consideration, with
respect to each standard established by paragraphs (11) through (13) of
section 111(d).
``(B) Not later than 3 years after the date of the enactment of
this paragraph, each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority), and each
nonregulated electric utility, shall complete the consideration, and
shall make the determination, referred to in section 111 with respect
to each standard established by paragraphs (11) through (13) of section
111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following:
``In the case of each standard established by paragraphs (11) through
(13) of section 111(d), the reference contained in this subsection to
the date of enactment of this Act shall be deemed to be a reference to
the date of enactment of such paragraphs (11) through (13).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is
amended by adding at the end the following:
``(d) Prior State Actions.--Subsections (b) and (c) of this section
shall not apply to the standards established by paragraphs (11) through
(13) of section 111(d) in the case of any electric utility in a State
if, before the enactment of this subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard concerned
(or a comparable standard) for such utility; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such
utility.''.
(B) Cross reference.--Section 124 of such Act (16
U.S.C. 2634) is amended by adding the following at the
end thereof: ``In the case of each standard established
by paragraphs (11) through (13) of section 111(d), the
reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference
to the date of enactment of such paragraphs (11)
through (13).''.
SEC. 1252. SMART METERING.
(a) In General.--Section 111(d) of the Public Utilities Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(14) Time-based metering and communications.--
``(A) Not later than 18 months after the date of
enactment of this paragraph, each electric utility
shall offer each of its customer classes, and provide
individual customers upon customer request, a time-
based rate schedule under which the rate charged by the
electric utility varies during different time periods
and reflects the variance, if any, in the utility's
costs of generating and purchasing electricity at the
wholesale level. The time-based rate schedule shall
enable the electric consumer to manage energy use and
cost through advanced metering and communications
technology.
``(B) The types of time-based rate schedules that
may be offered under the schedule referred to in
subparagraph (A) include, among others--
``(i) time-of-use pricing whereby
electricity prices are set for a specific time
period on an advance or forward basis,
typically not changing more often than twice a
year, based on the utility's cost of generating
and/or purchasing such electricity at the
wholesale level for the benefit of the
consumer. Prices paid for energy consumed
during these periods shall be pre-established
and known to consumers in advance of such
consumption, allowing them to vary their demand
and usage in response to such prices and manage
their energy costs by shifting usage to a lower
cost period or reducing their consumption
overall;
``(ii) critical peak pricing whereby time-
of-use prices are in effect except for certain
peak days, when prices may reflect the costs of
generating and/or purchasing electricity at the
wholesale level and when consumers may receive
additional discounts for reducing peak period
energy consumption;
``(iii) real-time pricing whereby
electricity prices are set for a specific time
period on an advanced or forward basis,
reflecting the utility's cost of generating
and/or purchasing electricity at the wholesale
level, and may change as often as hourly; and
``(iv) credits for consumers with large
loads who enter into pre-established peak load
reduction agreements that reduce a utility's
planned capacity obligations.
``(C) Each electric utility subject to subparagraph
(A) shall provide each customer requesting a time-based
rate with a time-based meter capable of enabling the
utility and customer to offer and receive such rate,
respectively.
``(D) For purposes of implementing this paragraph,
any reference contained in this section to the date of
enactment of the Public Utility Regulatory Policies Act
of 1978 shall be deemed to be a reference to the date
of enactment of this paragraph.
``(E) In a State that permits third-party marketers
to sell electric energy to retail electric consumers,
such consumers shall be entitled to receive the same
time-based metering and communications device and
service as a retail electric consumer of the electric
utility.
``(F) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall, not
later than 18 months after the date of enactment of
this paragraph conduct an investigation in accordance
with section 115(i) and issue a decision whether it is
appropriate to implement the standards set out in
subparagraphs (A) and (C).''.
(b) State Investigation of Demand Response and Time-Based
Metering.--Section 115 of the Public 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;
(E) steps taken to ensure that, in regional
transmission planning and operations, demand resources
are provided equitable treatment as a quantifiable,
reliable resource relative to the resource obligations
of any load-serving entity, transmission provider, or
transmitting party; and
(F) regulatory barriers to improved customer
participation in demand response, peak reduction and
critical period pricing programs.
(f) Federal Encouragement of Demand Response Devices.--It is the
policy of the United States that time-based pricing and other forms of
demand response, whereby electricity customers are provided with
electricity price signals and the ability to benefit by responding to
them, shall be encouraged, the deployment of such technology and
devices that enable electricity customers to participate in such
pricing and demand response systems shall be facilitated, and
unnecessary barriers to demand response participation in energy,
capacity and ancillary service markets shall be eliminated. It is
further the policy of the United States that the benefits of such
demand response that accrue to those not deploying such technology and
devices, but who are part of the same regional electricity entity,
shall be recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by
adding at the end the following:
``(4)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing date
for such consideration, with respect to the standard
established by paragraph (14) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric utility,
shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to the
standard established by paragraph (14) of section 111(d).''.
(h) Failure to Comply.--Section 112(c) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by
adding at the end the following:
``In the case of the standard established by paragraph (14) of section
111(d), the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to the date of
enactment of such paragraph (14).''.
(i) Prior State Actions Regarding Smart Metering Standards.--
(1) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by
adding at the end the following:
``(e) Prior State Actions.--Subsections (b) and (c) of this section
shall not apply to the standard established by paragraph (14) of
section 111(d) in the case of any electric utility in a State if,
before the enactment of this subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard concerned
(or a comparable standard) for such utility within the previous
3 years; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such utility
within the previous 3 years.''.
(2) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of the standard established by paragraph (14) of
section 111(d), the reference contained in this subsection to
the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
SEC. 1253. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE
REQUIREMENTS.
(a) Termination of Mandatory Purchase and Sale Requirements.--
Section 210 of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 824a-3) is amended by adding at the end the following:
``(m) Termination of Mandatory Purchase and Sale Requirements.--
``(1) Obligation to purchase.--After the date of enactment
of this subsection, no electric utility shall be required to
enter into a new contract or obligation to purchase electric
energy from a qualifying cogeneration facility or a qualifying
small power production facility under this section if the
Commission finds that the qualifying cogeneration facility or
qualifying small power production facility has
nondiscriminatory access to--
``(A)(i) independently administered, auction-based
day ahead and real time wholesale markets for the sale
of electric energy; and
``(ii) wholesale markets for long-term sales of
capacity and electric energy; or
``(B)(i) transmission and interconnection services
that are provided by a Commission-approved regional
transmission entity and administered pursuant to an
open access transmission tariff that affords
nondiscriminatory treatment to all customers; and
``(ii) competitive wholesale markets that provide a
meaningful opportunity to sell capacity, including
long-term and short-term sales, and electric energy,
including long-term, short-term and real-time sales, to
buyers other than the utility to which the qualifying
facility is interconnected. In determining whether a
meaningful opportunity to sell exists, the Commission
shall consider, among other factors, evidence of
transactions within the relevant market; or
``(C) wholesale markets for the sale of capacity
and electric energy that are, at a minimum, of
comparable competitive quality as markets described in
subparagraphs (A) and (B).
``(2) Revised purchase and sale obligation for new
facilities.--(A) After the date of enactment of this
subsection, no electric utility shall be required pursuant to
this section to enter into a new contract or obligation to
purchase from or sell electric energy to a facility that is not
an existing qualifying cogeneration facility unless the
facility meets the criteria for qualifying cogeneration
facilities established by the Commission pursuant to the
rulemaking required by subsection (n).
``(B) For the purposes of this paragraph, the term
`existing qualifying cogeneration facility' means a facility
that--
``(i) was a qualifying cogeneration facility on the
date of enactment of subsection (m); or
``(ii) had filed with the Commission a notice of
self-certification, self recertification or an
application for Commission certification under 18
C.F.R. 292.207 prior to the date on which the
Commission issues the final rule required by subsection
(n).
``(3) Commission review.--Any electric utility may file an
application with the Commission for relief from the mandatory
purchase obligation pursuant to this subsection on a service
territory-wide basis. Such application shall set forth the
factual basis upon which relief is requested and describe why
the conditions set forth in subparagraphs (A), (B) or (C) of
paragraph (1) of this subsection have been met. After notice,
including sufficient notice to potentially affected qualifying
cogeneration facilities and qualifying small power production
facilities, and an opportunity for comment, the Commission
shall make a final determination within 90 days of such
application regarding whether the conditions set forth in
subparagraphs (A), (B) or (C) of paragraph (1) have been met.
``(4) Reinstatement of obligation to purchase.--At any time
after the Commission makes a finding under paragraph (3)
relieving an electric utility of its obligation to purchase
electric energy, a qualifying cogeneration facility, a
qualifying small power production facility, a State agency, or
any other affected person may apply to the Commission for an
order reinstating the electric utility's obligation to purchase
electric energy under this section. Such application shall set
forth the factual basis upon which the application is based and
describe why the conditions set forth in subparagraphs (A), (B)
or (C) of paragraph (1) of this subsection are no longer met.
After notice, including sufficient notice to potentially
affected utilities, and opportunity for comment, the Commission
shall issue an order within 90 days of such application
reinstating the electric utility's obligation to purchase
electric energy under this section if the Commission finds that
the conditions set forth in subparagraphs (A), (B) or (C) of
paragraph (1) which relieved the obligation to purchase, are no
longer met.
``(5) Obligation to sell.--After the date of enactment of
this subsection, no electric utility shall be required to enter
into a new contract or obligation to sell electric energy to a
qualifying cogeneration facility or a qualifying small power
production facility under this section if the Commission finds
that--
``(A) competing retail electric suppliers are
willing and able to sell and deliver electric energy to
the qualifying cogeneration facility or qualifying
small power production facility; and
``(B) the electric utility is not required by State
law to sell electric energy in its service territory.
``(6) No effect on existing rights and remedies.--Nothing
in this subsection affects the rights or remedies of any party
under any contract or obligation, in effect or pending approval
before the appropriate State regulatory authority or non-
regulated electric utility on the date of enactment of this
subsection, to purchase electric energy or capacity from or to
sell electric energy or capacity to a qualifying cogeneration
facility or qualifying small power production facility under
this Act (including the right to recover costs of purchasing
electric energy or capacity).
``(7) Recovery of costs.--(A) The Commission shall issue
and enforce such regulations as are necessary to ensure that an
electric utility that purchases electric energy or capacity
from a qualifying cogeneration facility or qualifying small
power production facility in accordance with any legally
enforceable obligation entered into or imposed under this
section recovers all prudently incurred costs associated with
the purchase.
``(B) A regulation under subparagraph (A) shall be
enforceable in accordance with the provisions of law applicable
to enforcement of regulations under the Federal Power Act (16
U.S.C. 791a et seq.).
``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not later
than 180 days after the date of enactment of this section, the
Commission shall issue a rule revising the criteria in 18 C.F.R.
292.205 for new qualifying cogeneration facilities seeking to sell
electric energy pursuant to section 210 of this Act to ensure--
``(i) that the thermal energy output of a new qualifying
cogeneration facility is used in a productive and beneficial
manner;
``(ii) the electrical, thermal, and chemical output of the
cogeneration facility is used fundamentally for industrial,
commercial, or institutional purposes and is not intended
fundamentally for sale to an electric utility, taking into
account technological, efficiency, economic, and variable
thermal energy requirements, as well as State laws applicable
to sales of electric energy from a qualifying facility to its
host facility; and
``(iii) continuing progress in the development of efficient
electric energy generating technology.
``(B) The rule issued pursuant to paragraph (1)(A) of this
subsecvtion shall be applicable only to facilities that seek to sell
electric energy pursuant to section 210 of this Act. For all other
purposes, except as specifically provided in subsection (m)(2)(A),
qualifying facility status shall be determined in accordance with the
rules and regulations of this Act.
``(2) Notwithstanding rule revisions under paragraph (1), the
Commission's criteria for qualifying cogeneration facilities in effect
prior to the date on which the Commission issues the final rule
required by paragraph (1) shall continue to apply to any cogeneration
facility that--
``(A) was a qualifying cogeneration facility on the date of
enactment of subsection (m), or
``(B) had filed with the Commission a notice of self-
certification, self-recertification or an application for
Commission certification under 18 C.F.R. 292.207 prior to the
date on which the Commission issues the final rule required by
paragraph (1).''.
(b) Elimination of Ownership Limitations.--
(1) Qualifying small power production facility.--Section
3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is
amended to read as follows:
``(C) `qualifying small power production facility'
means a small power production facility that the
Commission determines, by rule, meets such requirements
(including requirements respecting fuel use, fuel
efficiency, and reliability) as the Commission may, by
rule, prescribe;''.
(2) Qualifying cogeneration facility.--Section 3(18)(B) of
the Federal Power Act (16 U.S.C. 796(18)(B)) is amended to read
as follows:
``(B) `qualifying cogeneration facility' means a
cogeneration facility that the Commission determines,
by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and
fuel efficiency) as the Commission may, by rule,
prescribe;''.
SEC. 1254. INTERCONNECTION.
(a) Adoption of Standards.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(16) Interconnection.--Each electric utility shall make
available, upon request, interconnection service to any
electric consumer that the electric utility serves. For
purposes of this paragraph, the term `interconnection service'
means service to an electric consumer under which an on-site
generating facility on the consumer's premises shall be
connected to the local distribution facilities. Interconnection
services shall be offered based upon the standards developed by
the Institute of Electrical and Electronics Engineers: IEEE
Standard 1547 for Interconnecting Distributed Resources with
Electric Power Systems, as they may be amended from time to
time. In addition, agreements and procedures shall be
established whereby the services are offered shall promote
current best practices of interconnection for distributed
generation, including but not limited to practices stipulated
in model codes adopted by associations of state regulatory
agencies. All such agreements and procedures shall be just and
reasonable, and not unduly discriminatory or preferential.''.
(b) Compliance.--
(1) Time limitations.--Section 112 (b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(3)(A) Not later than one year after the enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking authority)
and each nonregulated utility shall commence the consideration
referred to in section 111, or set a hearing date for
consideration, with respect to the standard established by
paragraph (16) of section 111(d).
``(B) Not later than two years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for which it
has ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to each
standard established by paragraph (16) of section 111(d).''.
(2) Failure to comply.--Section 112 (d) f 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 (16), the reference
contained in this subsection to the date of enactment of this
Act shall be deemed to be a reference to the date of enactment
of paragraph (16).''.
(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 (16) of
section 111(d) in the case of any electric utility in a State if,
before the enactment of this subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard concerned
(or a comparable standard) for such utility; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such
utility.''.
(B) Cross reference.--Section 124 of such Act (16
U.S.C. 2634) is amended by adding the following at the
end thereof: ``In the case of each standard established
by paragraph (16) of section 111(d), the reference
contained in this subsection to the date of enactment
of the Act shall be deemed to be a reference to the
date of enactment of paragraph (16).''.
Subtitle F--Repeal of PUHCA
SEC. 1261. SHORT TITLE.
This subtitle may be cited as the ``Public Utility Holding Company
Act of 2005''.
SEC. 1262. DEFINITIONS.
For purposes of this subtitle:
(1) Affiliate.--The term ``affiliate'' of a company means
any company, 5 percent or more of the outstanding voting
securities of which are owned, controlled, or held with power
to vote, directly or indirectly, by such company.
(2) Associate company.--The term ``associate company'' of a
company means any company in the same holding company system
with such company.
(3) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(4) Company.--The term ``company'' means a corporation,
partnership, association, joint stock company, business trust,
or any organized group of persons, whether incorporated or not,
or a receiver, trustee, or other liquidating agent of any of
the foregoing.
(5) Electric utility company.--The term ``electric utility
company'' means any company that owns or operates facilities
used for the generation, transmission, or distribution of
electric energy for sale.
(6) Exempt wholesale generator and foreign utility
company.--The terms ``exempt wholesale generator'' and
``foreign utility company'' have the same meanings as in
sections 32 and 33, respectively, of the Public Utility Holding
Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as those
sections existed on the day before the effective date of this
subtitle.
(7) Gas utility company.--The term ``gas utility company''
means any company that owns or operates facilities used for
distribution at retail (other than the distribution only in
enclosed portable containers or distribution to tenants or
employees of the company operating such facilities for their
own use and not for resale) of natural or manufactured gas for
heat, light, or power.
(8) Holding company.--The term ``holding company'' means--
(A) any company that directly or indirectly owns,
controls, or holds, with power to vote, 10 percent or
more of the outstanding voting securities of a public-
utility company or of a holding company of any public-
utility company; and
(B) any person, determined by the Commission, after
notice and opportunity for hearing, to exercise
directly or indirectly (either alone or pursuant to an
arrangement or understanding with 1 or more persons)
such a controlling influence over the management or
policies of any public-utility company or holding
company as to make it necessary or appropriate for the
rate protection of utility customers with respect to
rates that such person be subject to the obligations,
duties, and liabilities imposed by this subtitle upon
holding companies.
(9) Holding company system.--The term ``holding company
system'' means a holding company, together with its subsidiary
companies.
(10) Jurisdictional rates.--The term ``jurisdictional
rates'' means rates accepted or established by the Commission
for the transmission of electric energy in interstate commerce,
the sale of electric energy at wholesale in interstate
commerce, the transportation of natural gas in interstate
commerce, and the sale in interstate commerce of natural gas
for resale for ultimate public consumption for domestic,
commercial, industrial, or any other use.
(11) Natural gas company.--The term ``natural gas company''
means a person engaged in the transportation of natural gas in
interstate commerce or the sale of such gas in interstate
commerce for resale.
(12) Person.--The term ``person'' means an individual or
company.
(13) Public utility.--The term ``public utility'' means any
person who owns or operates facilities used for transmission of
electric energy in interstate commerce or sales of electric
energy at wholesale in interstate commerce.
(14) Public-utility company.--The term ``public-utility
company'' means an electric utility company or a gas utility
company.
(15) State commission.--The term ``State commission'' means
any commission, board, agency, or officer, by whatever name
designated, of a State, municipality, or other political
subdivision of a State that, under the laws of such State, has
jurisdiction to regulate public utility companies.
(16) Subsidiary company.--The term ``subsidiary company''
of a holding company means--
(A) any company, 10 percent or more of the
outstanding voting securities of which are directly or
indirectly owned, controlled, or held with power to
vote, by such holding company; and
(B) any person, the management or policies of which
the Commission, after notice and opportunity for
hearing, determines to be subject to a controlling
influence, directly or indirectly, by such holding
company (either alone or pursuant to an arrangement or
understanding with 1 or more other persons) so as to
make it necessary for the rate protection of utility
customers with respect to rates that such person be
subject to the obligations, duties, and liabilities
imposed by this subtitle upon subsidiary companies of
holding companies.
(17) Voting security.--The term ``voting security'' means
any security presently entitling the owner or holder thereof to
vote in the direction or management of the affairs of a
company.
SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et
seq.) is repealed.
SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.
(a) In General.--Each holding company and each associate company
thereof shall maintain, and shall make available to the Commission,
such books, accounts, memoranda, and other records as the Commission
determines are relevant to costs incurred by a public utility or
natural gas company that is an associate company of such holding
company and necessary or appropriate for the protection of utility
customers with respect to jurisdictional rates.
(b) Affiliate Companies.--Each affiliate of a holding company or of
any subsidiary company of a holding company shall maintain, and shall
make available to the Commission, such books, accounts, memoranda, and
other records with respect to any transaction with another affiliate,
as the Commission determines are relevant to costs incurred by a public
utility or natural gas company that is an associate company of such
holding company and necessary or appropriate for the protection of
utility customers with respect to jurisdictional rates.
(c) Holding Company Systems.--The Commission may examine the books,
accounts, memoranda, and other records of any company in a holding
company system, or any affiliate thereof, as the Commission determines
are relevant to costs incurred by a public utility or natural gas
company within such holding company system and necessary or appropriate
for the protection of utility customers with respect to jurisdictional
rates.
(d) Confidentiality.--No member, officer, or employee of the
Commission shall divulge any fact or information that may come to his
or her knowledge during the course of examination of books, accounts,
memoranda, or other records as provided in this section, except as may
be directed by the Commission or by a court of competent jurisdiction.
SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS.
(a) In General.--Upon the written request of a State commission
having jurisdiction to regulate a public-utility company in a holding
company system, the holding company or any associate company or
affiliate thereof, other than such public-utility company, wherever
located, shall produce for inspection books, accounts, memoranda, and
other records that--
(1) have been identified in reasonable detail in a
proceeding before the State commission;
(2) the State commission determines are relevant to costs
incurred by such public-utility company; and
(3) are necessary for the effective discharge of the
responsibilities of the State commission with respect to such
proceeding.
(b) Limitation.--Subsection (a) does not apply to any person that
is a holding company solely by reason of ownership of 1 or more
qualifying facilities under the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2601 et seq.).
(c) Confidentiality of Information.--The production of books,
accounts, memoranda, and other records under subsection (a) shall be
subject to such terms and conditions as may be necessary and
appropriate to safeguard against unwarranted disclosure to the public
of any trade secrets or sensitive commercial information.
(d) Effect on State Law.--Nothing in this section shall preempt
applicable State law concerning the provision of books, accounts,
memoranda, and other records, or in any way limit the rights of any
State to obtain books, accounts, memoranda, and other records under any
other Federal law, contract, or otherwise.
(e) Court Jurisdiction.--Any United States district court located
in the State in which the State commission referred to in subsection
(a) is located shall have jurisdiction to enforce compliance with this
section.
SEC. 1266. EXEMPTION AUTHORITY.
(a) Rulemaking.--Not later than 90 days after the effective date of
this subtitle, the Commission shall issue a final rule to exempt from
the requirements of section 1264 (relating to Federal access to books
and records) any person that is a holding company, solely with respect
to 1 or more--
(1) qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) Other Authority.--The Commission shall exempt a person or
transaction from the requirements of section 1264 (relating to Federal
access to books and records) if, upon application or upon the motion of
the Commission--
(1) the Commission finds that the books, accounts,
memoranda, and other records of any person are not relevant to
the jurisdictional rates of a public utility or natural gas
company; or
(2) the Commission finds that any class of transactions is
not relevant to the jurisdictional rates of a public utility or
natural gas company.
SEC. 1267. AFFILIATE TRANSACTIONS.
(a) Commission Authority Unaffected.--Nothing in this subtitle
shall limit the authority of the Commission under the Federal Power Act
(16 U.S.C. 791a et seq.) to require that jurisdictional rates are just
and reasonable, including the ability to deny or approve the pass
through of costs, the prevention of cross-subsidization, and the
issuance of such rules and regulations as are necessary or appropriate
for the protection of utility consumers.
(b) Recovery of Costs.--Nothing in this subtitle shall preclude the
Commission or a State commission from exercising its jurisdiction under
otherwise applicable law to determine whether a public-utility company,
public utility, or natural gas company may recover in rates any costs
of an activity performed by an associate company, or any costs of goods
or services acquired by such public-utility company from an associate
company.
SEC. 1268. APPLICABILITY.
Except as otherwise specifically provided in this subtitle, no
provision of this subtitle shall apply to, or be deemed to include--
(1) the United States;
(2) a State or any political subdivision of a State;
(3) any foreign governmental authority not operating in the
United States;
(4) any agency, authority, or instrumentality of any entity
referred to in paragraph (1), (2), or (3); or
(5) any officer, agent, or employee of any entity referred
to in paragraph (1), (2), (3), or (4) acting as such in the
course of his or her official duty.
SEC. 1269. EFFECT ON OTHER REGULATIONS.
Nothing in this subtitle precludes the Commission or a State
commission from exercising its jurisdiction under otherwise applicable
law to protect utility customers.
SEC. 1270. ENFORCEMENT.
The Commission shall have the same powers as set forth in sections
306 through 317 of the Federal Power Act (16 U.S.C. 825e-825p) to
enforce the provisions of this subtitle.
SEC. 1271. SAVINGS PROVISIONS.
(a) In General.--Nothing in this subtitle, or otherwise in the
Public Utility Holding Company Act of 1935, or rules, regulations, or
orders thereunder, prohibits a person from engaging in or continuing to
engage in activities or transactions in which it is legally engaged or
authorized to engage on the date of enactment of this Act, if that
person continues to comply with the terms (other than an expiration
date or termination date) of any such authorization, whether by rule or
by order.
(b) Effect on Other Commission Authority.--Nothing in this subtitle
limits the authority of the Commission under the Federal Power Act (16
U.S.C. 791a et seq.) or the Natural Gas Act (15 U.S.C. 717 et seq.).
SEC. 1272. IMPLEMENTATION.
Not later than 12 months after the date of enactment of this
subtitle, the Commission shall--
(1) issue such regulations as may be necessary or
appropriate to implement this subtitle (other than section
1265, relating to State access to books and records); and
(2) submit to Congress detailed recommendations on
technical and conforming amendments to Federal law necessary to
carry out this subtitle and the amendments made by this
subtitle.
SEC. 1273. TRANSFER OF RESOURCES.
All books and records that relate primarily to the functions
transferred to the Commission under this subtitle shall be transferred
from the Securities and Exchange Commission to the Commission.
SEC. 1274. EFFECTIVE DATE.
(a) In General.--Except for section 1272 (relating to
implementation), this subtitle shall take effect 12 months after the
date of enactment of this subtitle.
(b) Compliance With Certain Rules.--If the Commission approves and
makes effective any final rulemaking modifying the standards of conduct
governing entities that own, operate, or control facilities for
transmission of electricity in interstate commerce or transportation of
natural gas in interstate commerce prior to the effective date of this
subtitle, any action taken by a public-utility company or utility
holding company to comply with the requirements of such rulemaking
shall not subject such public-utility company or utility holding
company to any regulatory requirement applicable to a holding company
under the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et
seq.).
SEC. 1275. SERVICE ALLOCATION.
(a) FERC Review.--In the case of non-power goods or administrative
or management services provided by an associate company organized
specifically for the purpose of providing such goods or services to any
public utility in the same holding company system, at the election of
the system or a State commission having jurisdiction over the public
utility, the Commission, after the effective date of this subtitle,
shall review and authorize the allocation of the costs for such goods
or services to the extent relevant to that associate company in order
to assure that each allocation is appropriate for the protection of
investors and consumers of such public utility.
(b) Cost Allocation.--Nothing in this section shall preclude the
Commission or a State commission from exercising its jurisdiction under
other applicable law with respect to the review or authorization of any
costs allocated to a public utility in a holding company system located
in the affected State as a result of the acquisition of non-power goods
or administrative and management services by such public utility from
an associate company organized specifically for that purpose.
(c) Rules.--Not later than 6 months after the date of enactment of
this Act, the Commission shall issue rules (which rules shall be
effective no earlier than the effective date of this subtitle) to
exempt from the requirements of this section any company in a holding
company system whose public utility operations are confined
substantially to a single State and any other class of transactions
that the Commission finds is not relevant to the jurisdictional rates
of a public utility.
(d) Public Utility.--As used in this section, the term ``public
utility'' has the meaning given that term in section 201(e) of the
Federal Power Act.
SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such funds as may be
necessary to carry out this subtitle.
SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.
(a) Conflict of Jurisdiction.--Section 318 of the Federal Power Act
(16 U.S.C. 825q) is repealed.
(b) Definitions.--(1) Section 201(g)(5) of the Federal Power Act
(16 U.S.C. 824(g)(5)) is amended by striking ``1935'' and inserting
``2005''.
(2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is
amended by striking ``1935'' and inserting ``2005''.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
SEC. 1281. MARKET TRANSPARENCY RULES.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 220. MARKET TRANSPARENCY RULES.
``(a) In General.--Not later than 180 days after the date of
enactment of this section, the Commission shall issue rules
establishing an electronic information system to provide the Commission
and the public with access to such information as is necessary or
appropriate to facilitate price transparency and participation in
markets subject to the Commission's jurisdiction under this Act. Such
systems shall provide information about the availability and market
price of wholesale electric energy and transmission services to the
Commission, State commissions, buyers and sellers of wholesale electric
energy, users of transmission services, and the public on a timely
basis. The Commission shall have authority to obtain such information
from any electric utility or transmitting utility, including any entity
described in section 201(f).
``(b) Exemptions.--The Commission shall exempt from disclosure
information it determines would, if disclosed, be detrimental to the
operation of an effective market or jeopardize system security. This
section shall not apply to transactions for the purchase or sale of
wholesale electric energy or transmission services within the area
described in section 212(k)(2)(A). In determining the information to be
made available under this section and time to make such information
available, the Commission shall seek to ensure that consumers and
competitive markets are protected from the adverse effects of potential
collusion or other anti-competitive behaviors that can be facilitated
by untimely public disclosure of transaction-specific information.
``(c) Commodity Futures Trading Commission.--This section shall not
affect the exclusive jurisdiction of the Commodity Futures Trading
Commission with respect to accounts, agreements, contracts, or
transactions in commodities under the Commodity Exchange Act (7 U.S.C.
1 et seq.).
``(d) Savings Provision.--In exercising its authority under this
section, the Commission shall not--
``(1) compete with, or displace from the market place, any
price publisher; or
``(2) regulate price publishers or impose any requirements
on the publication of information.''.
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. 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.''.
(d) Criminal Penalties.--Section 316 of the Federal Power Act (16
U.S.C. 825o) is amended--
(1) in subsection (a), by striking ``$5,000'' and inserting
``$1,000,000'', and by striking ``two years'' and inserting ``5
years'';
(2) in subsection (b), by striking ``$500'' and inserting
``$25,000''; and
(3) by striking subsection (c).
(e) Civil Penalties.--Section 316A of the Federal Power Act (16
U.S.C. 825o-1) is amended as follows:
(1) In subsections (a) and (b), by striking ``section 211,
212, 213, or 214'' each place it appears and inserting ``Part
II''.
(2) In subsection (b), by striking ``$10,000'' and
inserting ``$1,000,000''.
SEC. 1284. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is
amended as follows:
(1) By striking ``the date 60 days after the filing of such
complaint nor later than 5 months after the expiration of such
60-day period'' in the second sentence and inserting ``the date
of the filing of such complaint nor later than 5 months after
the filing of such complaint''.
(2) By striking ``60 days after'' in the third sentence and
inserting ``of''.
(3) By striking ``expiration of such 60-day period'' in the
third sentence and inserting ``publication date''.
(4) By striking the fifth sentence and inserting the
following: ``If no final decision is rendered by the conclusion
of the 180-day period commencing upon initiation of a
proceeding pursuant to this section, the Commission shall state
the reasons why it has failed to do so and shall state its best
estimate as to when it reasonably expects to make such
decision.''.
SEC. 1285. REFUND AUTHORITY.
Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by
adding the following new subsection at the end thereof:
``(e)(1) Except as provided in paragraph (2), if an entity
described in section 201(f) voluntarily makes a short-term sale of
electric energy and the sale violates Commission rules in effect at the
time of the sale, such entity shall be subject to the Commission's
refund authority under this section with respect to such violation.
``(2) This section shall not apply to--
``(A) any entity that sells less than 8,000,000 megawatt
hours of electricity per year; or
``(B) any electric cooperative.
``(3) For purposes of this subsection, the term `short-term sale'
means an agreement for the sale of electric energy at wholesale in
interstate commerce that is for a period of 31 days or less (excluding
monthly contracts subject to automatic renewal).
``(4) The Commission shall have refund authority under subsection
(e)(1) with respect to a voluntary short-term sale of electric energy
by the Bonneville Power Administration (in this section `Bonneville')
only if the sale is at an unjust and unreasonable rate and, in that
event, may order a refund only for short-term sales made by Bonneville
at rates that are higher than the highest just and reasonable rate
charged by any other entity for a short-term sale of electric energy in
the same geographic market for the same, or most nearly comparable,
period as the sale by Bonneville.
``(5) With respect to any Federal power marketing agency or the
Tennessee Valley Authority, the Commission shall not assert or exercise
any regulatory authority or powers under subsection (e)(1) other than
the ordering of refunds to achieve a just and reasonable rate.''.
SEC. 1286. SANCTITY OF CONTRACT.
(a) In General.--The Federal Energy Regulatory Commission (in this
section, ``the Commission'') shall have no authority to abrogate or
modify any provision of an executed contract or executed contract
amendment described in subsection (b) that has been entered into or
taken effect, except upon a finding that failure to take such action
would be contrary to the public interest.
(b) Limitation.--Except as provided in subsection (c), this section
shall apply only to a contract or contract amendment--
(1) executed on or after the date of enactment of this Act;
and
(2) entered into--
(A) for the purchase or sale of electric energy
under section 205 of the Federal Power Act (16 U.S.C.
824d) where the seller has been authorized by the
Commission to charge market-based rates; or
(B) under section 4 of the Natural Gas Act (15
U.S.C. 717c) where the natural gas company has been
authorized by the Commission to charge market-based
rates for the service described in the contract.
(c) Exclusion.--This section shall not apply to an executed
contract or executed contract amendment that expressly provides for a
standard of review other than the public interest standard.
(d) Savings Provision.--With respect to contracts to which this
section does not apply, nothing in this section alters existing law
regarding the applicable standard of review for a contract subject to
the jurisdiction of the Commission.
SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.
(a) Privacy.--The Federal Trade Commission may issue rules
protecting the privacy of electric consumers from the disclosure of
consumer information obtained in connection with the sale or delivery
of electric energy to electric consumers.
(b) Slamming.--The Federal Trade Commission may issue rules
prohibiting the change of selection of an electric utility except with
the informed consent of the electric consumer or if approved by the
appropriate State regulatory authority.
(c) Cramming.--The Federal Trade Commission may issue rules
prohibiting the sale of goods and services to an electric consumer
unless expressly authorized by law or the electric consumer.
(d) Rulemaking.--The Federal Trade Commission shall proceed in
accordance with section 553 of title 5, United States Code, when
prescribing a rule under this section.
(e) State Authority.--If the Federal Trade Commission determines
that a State's regulations provide equivalent or greater protection
than the provisions of this section, such State regulations shall apply
in that State in lieu of the regulations issued by the Commission under
this section.
(f) Definitions.--For purposes of this section:
(1) State regulatory authority.--The term ``State
regulatory authority'' has the meaning given that term in
section 3(21) of the Federal Power Act (16 U.S.C. 796(21)).
(2) Electric consumer and electric utility.--The terms
``electric consumer'' and ``electric utility'' have the
meanings given those terms in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Subtitle H--Merger Reform
SEC. 1291. MERGER REVIEW REFORM AND ACCOUNTABILITY.
(a) Merger Review Reform.--Within 180 days after the date of
enactment of this Act, the Secretary of Energy, in consultation with
the Federal Energy Regulatory Commission and the Attorney General of
the United States, shall prepare, and transmit to Congress each of the
following:
(1) A study of the extent to which the authorities vested
in the Federal Energy Regulatory Commission under section 203
of the Federal Power Act are duplicative of authorities vested
in--
(A) other agencies of Federal and State Government;
and
(B) the Federal Energy Regulatory Commission,
including under sections 205 and 206 of the Federal
Power Act.
(2) Recommendations on reforms to the Federal Power Act
that would eliminate any unnecessary duplication in the
exercise of regulatory authority or unnecessary delays in the
approval (or disapproval) of applications for the sale, lease,
or other disposition of public utility facilities.
(b) Merger Review Accountability.--Not later than 1 year after the
date of enactment of this Act and annually thereafter, with respect to
all orders issued within the preceding year that impose a condition on
a sale, lease, or other disposition of public utility facilities under
section 203(b) of the Federal Power Act, the Federal Energy Regulatory
Commission shall transmit a report to Congress explaining each of the
following:
(1) The condition imposed.
(2) Whether the Commission could have imposed such
condition by exercising its authority under any provision of
the Federal Power Act other than under section 203(b).
(3) If the Commission could not have imposed such condition
other than under section 203(b), why the Commission determined
that such condition was consistent with the public interest.
SEC. 1292. ELECTRIC UTILITY MERGERS.
(a) Amendment.--Section 203(a) of the Federal Power Act (16 U.S.C.
824b(a)) is amended to read as follows:
``(a)(1) No public utility shall, without first having secured an
order of the Commission authorizing it to do so--
``(A) sell, lease, or otherwise dispose of the whole of its
facilities subject to the jurisdiction of the Commission, or
any part thereof of a value in excess of $10,000,000;
``(B) merge or consolidate, directly or indirectly, such
facilities or any part thereof with those of any other person,
by any means whatsoever; or
``(C) purchase, acquire, or take any security with a value
in excess of $10,000,000 of any other public utility.
``(2) No holding company in a holding company system that includes
a public utility shall purchase, acquire, or take any security with a
value in excess of $10,000,000 of, or, by any means whatsoever,
directly or indirectly, merge or consolidate with, a public utility or
a holding company in a holding company system that includes a public
utility with a value in excess of $10,000,000 without first having
secured an order of the Commission authorizing it to do so.
``(3) Upon receipt of an application for such approval the
Commission shall give reasonable notice in writing to the Governor and
State commission of each of the States in which the physical property
affected, or any part thereof, is situated, and to such other persons
as it may deem advisable.
``(4) After notice and opportunity for hearing, the Commission
shall approve the proposed disposition, consolidation, acquisition, or
change in control, if it finds that the proposed transaction will be
consistent with the public interest. In evaluating whether a
transaction will be consistent with the public interest, the Commission
shall consider whether the proposed transaction--
``(A) will adequately protect consumer interests;
``(B) will be consistent with competitive wholesale
markets;
``(C) will impair the financial integrity of any public
utility that is a party to the transaction or an associate
company of any party to the transaction; and
``(D) satisfies such other criteria as the Commission
considers consistent with the public interest.
``(5) The Commission shall, by rule, adopt procedures for the
expeditious consideration of applications for the approval of
dispositions, consolidations, or acquisitions under this section. Such
rules shall identify classes of transactions, or specify criteria for
transactions, that normally meet the standards established in paragraph
(4). The Commission shall provide expedited review for such
transactions. The Commission shall grant or deny any other application
for approval of a transaction not later than 180 days after the
application is filed. If the Commission does not act within 180 days,
such application shall be deemed granted unless the Commission finds,
based on good cause, that further consideration is required to
determine whether the proposed transaction meets the standards of
paragraph (4) and issues an order tolling the time for acting on the
application for not more than 180 days, at the end of which additional
period the Commission shall grant or deny the application.
``(6) For purposes of this subsection, the terms `associate
company', `holding company', and `holding company system' have the
meaning given those terms in the Public Utility Holding Company Act of
2005.''.
(b) Effective Date.--The amendments made by this section shall take
effect 12 months after the date of enactment of this section.
Subtitle I--Definitions
SEC. 1295. DEFINITIONS.
(a) Electric Utility.--Section 3(22) of the Federal Power Act (16
U.S.C. 796(22)) is amended to read as follows:
``(22) Electric utility.--The term `electric utility' means
any person or Federal or State agency (including any entity
described in section 201(f)) that sells electric energy; such
term includes the Tennessee Valley Authority and each Federal
power marketing administration.''.
(b) Transmitting Utility.--Section 3(23) of the Federal Power Act
(16 U.S.C. 796(23)) is amended to read as follows:
``(23) Transmitting utility.--The term `transmitting
utility' means an entity, including any entity described in
section 201(f), that owns, operates, or controls facilities
used for the transmission of electric energy--
``(A) in interstate commerce; or
``(B) for the sale of electric energy at
wholesale.''.
(c) Additional Definitions.--Section 3 of the Federal Power Act (16
U.S.C. 796) is amended by adding at the end the following:
``(26) Electric cooperative.--The term `electric
cooperative' means a cooperatively owned electric utility.
``(27) RTO.--The term `Regional Transmission Organization'
or `RTO' means an entity of sufficient regional scope approved
by the Commission to exercise operational or functional control
of facilities used for the transmission of electric energy in
interstate commerce and to ensure nondiscriminatory access to
such facilities.
``(28) ISO.--The term `Independent System Operator' or
`ISO' means an entity approved by the Commission to exercise
operational or functional control of facilities used for the
transmission of electric energy in interstate commerce and to
ensure nondiscriminatory access to such facilities.''.
(d) Commission.--For the purposes of this title, the term
``Commission'' means the Federal Energy Regulatory Commission.
(e) Applicability.--Section 201(f) of the Federal Power Act (16
U.S.C. 824(f)) is amended by adding after ``political subdivision of a
state,'' the following: ``an electric cooperative that has financing
under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or
that sells less than 4,000,000 megawatt hours of electricity per
year,''.
Subtitle J--Technical and Conforming Amendments
SEC. 1297. CONFORMING AMENDMENTS.
The Federal Power Act is amended as follows:
(1) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) is
amended as follows:
(A) In the first sentence by striking ``210, 211,
and 212'' and inserting ``203(a)(2), 206(e), 210, 211,
211A, 212, 215, 216, 217, 218, 219, 220, 221, and
222''.
(B) In the second sentence by striking ``210 or
211'' and inserting ``203(a)(2), 206(e), 210, 211,
211A, 212, 215, 216, 217, 218, 219, 220, 221, and
222''.
(C) Section 201(b)(2) of such Act is amended by
striking ``The'' in the first place it appears and
inserting ``Notwithstanding section 201(f), the'' and
in the second sentence after ``any order'' by inserting
``or rule''.
(2) Section 201(e) of such Act is amended by striking
``210, 211, or 212'' and inserting ``206(e), 206(f), 210, 211,
211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222''.
(3) Section 206 of such Act (16 U.S.C. 824e) is amended as
follows:
(A) In subsection (b), in the seventh sentence, by
striking ``the public utility to make''.
(B) In the first sentence of subsection (a), by
striking ``hearing had'' and inserting ``hearing
held''.
(4) Section 211(c) of such Act (16 U.S.C. 824j(c)) is
amended by--
(A) striking ``(2)'';
(B) striking ``(A)'' and inserting ``(1)'';
(C) striking ``(B)'' and inserting ``(2)''; and
(D) striking ``termination of modification'' and
inserting ``termination or modification''.
(5) Section 211(d)(1) of such Act (16 U.S.C. 824j(d)(1)) is
amended by striking ``electric utility'' the second time it
appears and inserting ``transmitting utility''.
(6) Section 315 (c) of such Act (16 U.S.C. 825n(c)) is
amended by striking ``subsection'' and inserting ``section''.
Subtitle K--Economic Dispatch
SEC. 1298. ECONOMIC DISPATCH.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 223. JOINT BOARD ON ECONOMIC DISPATCH.
``(a) In General.--The Commission shall convene a joint board
pursuant to section 209 of this Act to study the issue of security
constrained economic dispatch for a market region.
``(b) Membership.--The Commission shall request each State to
nominate a representative for such joint board.
``(c) Powers.--The board's sole authority 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.
``(d) Report to the Congress.--The board shall issue a report on
these matters within one year of enactment of this section, including
any consensus recommendations for statutory or regulatory reform.''.
TITLE XIV--MISCELLANEOUS
Subtitle C--Other Provisions
SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY ORDER.
Department of Energy Order No. 202-03-2, issued by the Secretary of
Energy on August 28, 2003, shall remain in effect unless rescinded by
Federal statute.
SEC. 1442. REVIEW OF AGENCY DETERMINATIONS.
Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by
adding at the end the following:
``(i)(1) The United States Court of Appeals for the District of
Columbia Circuit shall have original and exclusive jurisdiction over
any civil action--
``(A) for review of any order or action of any Federal or
State administrative agency or officer to issue, condition, or
deny any permit, license, concurrence, or approval issued under
authority of any Federal law, other than the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.), required for
the construction of a natural gas pipeline for which a
certificate of public convenience and necessity is issued by
the Commission under this section;
``(B) alleging unreasonable delay by any Federal or State
administrative agency or officer in entering an order or taking
other action described in subparagraph (A); or
``(C) challenging any decision made or action taken under
this subsection.
``(2)(A) If the Court finds that the order, action, or failure to
act is not consistent with the public convenience and necessity (as
determined by the Commission under this section), or would prevent the
construction and operation of natural gas facilities authorized by the
certificate of public convenience and necessity, the permit, license,
concurrence, or approval that is the subject of the order, action, or
failure to act shall be deemed to have been issued subject to any
conditions set forth in the reviewed order or action that the Court
finds to be consistent with the public convenience and necessity.
``(B) For purposes of paragraph (1)(B), the failure of an agency or
officer to issue any such permit, license, concurrence, or approval
within the later of 1 year after the date of filing of an application
for the permit, license, concurrence, or approval or 60 days after the
date of issuance of the certificate of public convenience and necessity
under this section, shall be considered to be unreasonable delay unless
the Court, for good cause shown, determines otherwise.
``(C) The Court shall set any action brought under paragraph (1)
for expedited consideration.''.
SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE NONATTAINMENT AREAS.
Section 181 of the Clean Air Act (42 U.S.C.7511) is amended by
adding the following new subsection at the end thereof:
``(d) Extended Attainment Date for Certain Downwind Areas.--
``(1) Definitions.--(A) The term `upwind area' means an
area that--
``(i) significantly contributes to nonattainment in
another area, hereinafter referred to as a `downwind
area'; and
``(ii) is either--
``(I) a nonattainment area with a later
attainment date than the downwind area, or
``(II) an area in another State that the
Administrator has found to be significantly
contributing to nonattainment in the downwind
area in violation of section 110(a)(2)(D) and
for which the Administrator has established
requirements through notice and comment
rulemaking to eliminate the emissions causing
such significant contribution.
``(B) The term `current classification' means the
classification of a downwind area under this section at the
time of the determination under paragraph (2).
``(2) Extension.--If the Administrator--
``(A) determines that any area is a downwind area
with respect to a particular national ambient air
quality standard for ozone; and
``(B) approves a plan revision for such area as
provided in paragraph (3) prior to a reclassification
under subsection (b)(2)(A),
the Administrator, in lieu of such reclassification, shall
extend the attainment date for such downwind area for such
standard in accordance with paragraph (5).
``(3) Required approval.--In order to extend the attainment
date for a downwind area under this subsection, the
Administrator must approve a revision of the applicable
implementation plan for the downwind area for such standard
that--
``(A) complies with all requirements of this Act
applicable under the current classification of the
downwind area, including any requirements applicable to
the area under section 172(c) for such standard; and
``(B) includes any additional measures needed to
demonstrate attainment by the extended attainment date
provided under this subsection.
``(4) Prior reclassification determination.--If, no more
than 18 months prior to the date of enactment of this
subsection, the Administrator made a reclassification
determination under subsection (b)(2)(A) for any downwind area,
and the Administrator approves the plan revision referred to in
paragraph (3) for such area within 12 months after the date of
enactment of this subsection, the reclassification shall be
withdrawn and the attainment date extended in accordance with
paragraph (5) upon such approval. The Administrator shall also
withdraw a reclassification determination under subsection
(b)(2)(A) made after the date of enactment of this subsection
and extend the attainment date in accordance with paragraph (5)
if the Administrator approves the plan revision referred to in
paragraph (3) within 12 months of the date the reclassification
determination under subsection (b)(2)(A) is issued. In such
instances the `current classification' used for evaluating the
revision of the applicable implementation plan under paragraph
(3) shall be the classification of the downwind area under this
section immediately prior to such reclassification.
``(5) Extended date.--The attainment date extended under
this subsection shall provide for attainment of such national
ambient air quality standard for ozone in the downwind area as
expeditiously as practicable but no later than the date on
which the last reductions in pollution transport necessary for
attainment in the downwind area are required to be achieved by
the upwind area or areas.''.
SEC. 1444. ENERGY PRODUCTION INCENTIVES.
(a) In General.--A State may provide to any entity--
(1) a credit against any tax or fee owed to the State under
a State law, or
(2) any other tax incentive,
determined by the State to be appropriate, in the amount calculated
under and in accordance with a formula determined by the State, for
production described in subsection (b) in the State by the entity that
receives such credit or such incentive.
(b) Eligible Entities.--Subsection (a) shall apply with respect to
the production in the State of--
(1) electricity from coal mined in the State and used in a
facility, if such production meets all applicable Federal and
State laws and if such facility uses scrubbers or other forms
of clean coal technology,
(2) electricity from a renewable source such as wind,
solar, or biomass, or
(3) ethanol.
(c) Effect on Interstate Commerce.--Any action taken by a State in
accordance with this section with respect to a tax or fee payable, or
incentive applicable, for any period beginning after the date of the
enactment of this Act shall--
(1) be considered to be a reasonable regulation of
commerce; and
(2) not be considered to impose an undue burden on
interstate commerce or to otherwise impair, restrain, or
discriminate, against interstate commerce.
SEC. 1446. REGULATION OF CERTAIN OIL USED IN TRANSFORMERS.
Notwithstanding any other provision of law, or rule promulgated by
the Environmental Protection Agency, vegetable oil made from soybeans
and used in electric transformers as thermal insulation shall not be
regulated as an oil as defined under section 2(a)(1)(A) of the Edible
Oil Regulatory Reform Act (33 U.S.C. 2720(a)(1)(A)).
SEC. 1447. RISK ASSESSMENTS.
Subtitle B of title XXX of the Energy Policy Act of 1992 is amended
by adding at the end the following new section:
``SEC. 3022. RISK ASSESSMENT.
``Federal agencies conducting assessments of risks to human health
and the environment from energy technology, production, transport,
transmission, distribution, storage, use, or conservation activities
shall use sound and objective scientific practices in assessing such
risks, shall consider the best available science (including peer
reviewed studies), and shall include a description of the weight of the
scientific evidence concerning such risks.''.
SEC. 1448. OXYGEN-FUEL.
(a) Program.--The Secretary of Energy shall establish a program on
oxygen-fuel systems. If feasible, the program shall include renovation
of at least one existing large unit and one existing small unit, and
construction of one new large unit and one new small unit. Cost sharing
shall not be required.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section--
(1) $100,000,000 for fiscal year 2006;
(2) $100,000,000 for fiscal year 2007; and
(3) $100,000,000 for fiscal year 2008.
(c) Definitions.--For purposes of this section--
(1) the term ``large unit'' means a unit with a generating
capacity of 100 megawatts or more;
(2) the term ``oxygen-fuel systems'' means systems that
utilize fuel efficiency benefits of oil, gas, coal, and biomass
combustion using substantially pure oxygen, with high flame
temperatures and the exclusion of air from the boiler, in
industrial or electric utility steam generating units; and
(3) the term ``small unit'' means a unit with a generating
capacity in the 10-50 megawatt range.
SEC. 1449. PETROCHEMICAL AND OIL REFINERY FACILITY HEALTH ASSESSMENT.
(a) Establishment.--The Secretary of Energy shall conduct a study
of direct and significant health impacts to persons resulting from
living in proximity to petrochemical and oil refinery facilities. The
Secretary shall consult with the Director of the National Cancer
Institute and other Federal Government bodies with expertise in the
field it deems appropriate in the design of such study. The study shall
be conducted according to sound and objective scientific practices and
present the weight of the scientific evidence. The Secretary shall
obtain scientific peer review of the draft study.
(b) Report to Congress.--The Secretary shall transmit the results
of the study to Congress within 6 months of the enactment of this
section.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for activities under this section such
sums as are necessary for the completion of the study.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545)
is amended--
(1) by redesignating subsection (o) as subsection (q); and
(2) by inserting after subsection (n) the following:
``(o) Renewable Fuel Program.--
``(1) Definitions.--In this section:
``(A) Ethanol.--(i) The term `cellulosic biomass
ethanol' means ethanol derived from any lignocellulosic
or hemicellulosic matter that is available on a
renewable or recurring basis, including--
``(I) dedicated energy crops and trees;
``(II) wood and wood residues;
``(III) plants;
``(IV) grasses;
``(V) agricultural residues; and
``(VI) fibers.
``(ii) The term `waste derived ethanol' means
ethanol derived from--
``(I) animal wastes, including poultry fats
and poultry wastes, and other waste materials;
or
``(II) municipal solid waste.
``(B) Renewable fuel.--
``(i) In general.--The term `renewable
fuel' means motor vehicle fuel that--
``(I)(aa) is produced from grain,
starch, oilseeds, or other biomass; or
``(bb) is natural gas produced from
a biogas source, including a landfill,
sewage waste treatment plant, feedlot,
or other place where decaying organic
material is found; and
``(II) is used to replace or reduce
the quantity of fossil fuel present in
a fuel mixture used to operate a motor
vehicle.
``(ii) Inclusion.--The term `renewable
fuel' includes cellulosic biomass ethanol,
waste derived ethanol, and biodiesel (as
defined in section 312(f) of the Energy Policy
Act of 1992 (42 U.S.C. 13220(f)) and any
blending components derived from renewable fuel
(provided that only the renewable fuel portion
of any such blending component shall be
considered part of the applicable volume under
the renewable fuel program established by this
subsection).
``(C) Small refinery.--The term `small refinery'
means a refinery for which average aggregate daily
crude oil throughput for the calendar year (as
determined by dividing the aggregate throughput for the
calendar year by the number of days in the calendar
year) does not exceed 75,000 barrels.
``(2) Renewable fuel program.--
``(A) In general.--Not later than 1 year after the
enactment of this subsection, the Administrator shall
promulgate regulations ensuring that motor vehicle fuel
sold or dispensed to consumers in the contiguous United
States, on an annual average basis, contains the
applicable volume of renewable fuel as specified in
subparagraph (B). Regardless of the date of
promulgation, such regulations shall contain compliance
provisions for refiners, blenders, and importers, as
appropriate, to ensure that the requirements of this
section are met, but shall not restrict where renewable
fuel can be used, or impose any per-gallon obligation
for the use of renewable fuel. If the Administrator
does not promulgate such regulations, the applicable
percentage referred to in paragraph (4), on a volume
percentage of gasoline basis, shall be 2.2 in 2005.
``(B) Applicable volume.--
``(i) Calendar years 2005 through 2012.--
For the purpose of subparagraph (A), the
applicable volume for any of calendar years
2005 through 2012 shall be determined in
accordance with the following table:
Applicable volume of renewable fuel
``Calendar year (in billions of gallons)
2005................................................... 3.1
2006................................................... 3.3
2007................................................... 3.5
2008................................................... 3.8
2009................................................... 4.1
2010................................................... 4.4
2011................................................... 4.7
2012................................................... 5.0
``(ii) Calendar year 2013 and thereafter.--
For the purpose of subparagraph (A), the
applicable volume for calendar year 2013 and
each calendar year thereafter shall be equal to
the product obtained by multiplying--
``(I) the number of gallons of
gasoline that the Administrator
estimates will be sold or introduced
into commerce in the calendar year; and
``(II) the ratio that--
``(aa) 5.0 billion gallons
of renewable fuels; bears to
``(bb) the number of
gallons of gasoline sold or
introduced into commerce in
calendar year 2012.
``(3) Non-contiguous state opt-in.--Upon the petition of a
non-contiguous State, the Administrator may allow the renewable
fuel program established by subtitle A of title XV of the
Energy Policy Act of 2005 to apply in such non-contiguous State
at the same time or any time after the Administrator
promulgates regulations under paragraph (2). The Administrator
may promulgate or revise regulations under paragraph (2),
establish applicable percentages under paragraph (4), provide
for the generation of credits under paragraph (6), and take
such other actions as may be necessary to allow for the
application of the renewable fuels program in a non-contiguous
State.
``(4) Applicable percentages.--
``(A) Provision of estimate of volumes of gasoline
sales.--Not later than October 31 of each of calendar
years 2005 through 2011, the Administrator of the
Energy Information Administration shall provide to the
Administrator of the Environmental Protection Agency an
estimate of the volumes of gasoline that will be sold
or introduced into commerce in the United States during
the following calendar year.
``(B) Determination of applicable percentages.--
``(i) In general.--Not later than November
30 of each of the calendar years 2005 through
2011, based on the estimate provided under
subparagraph (A), the Administrator shall
determine and publish in the Federal Register,
with respect to the following calendar year,
the renewable fuel obligation that ensures that
the requirements of paragraph (2) are met.
``(ii) Required elements.--The renewable
fuel obligation determined for a calendar year
under clause (i) shall--
``(I) be applicable to refiners,
blenders, and importers, as
appropriate;
``(II) be expressed in terms of a
volume percentage of gasoline sold or
introduced into commerce; and
``(III) subject to subparagraph
(C)(i), consist of a single applicable
percentage that applies to all
categories of persons specified in
subclause (I).
``(C) Adjustments.--In determining the applicable
percentage for a calendar year, the Administrator shall
make adjustments--
``(i) to prevent the imposition of
redundant obligations to any person specified
in subparagraph (B)(ii)(I); and
``(ii) to account for the use of renewable
fuel during the previous calendar year by small
refineries that are exempt under paragraph
(11).
``(5) Equivalency.--For the purpose of paragraph (2), 1
gallon of either cellulosic biomass ethanol or waste derived
ethanol--
``(A) shall be considered to be the equivalent of
1.5 gallon of renewable fuel; or
``(B) if the cellulostic biomass ethanol or waste
derived ethanol is derived from agricultural residue or
wood residue or is an agricultural byproduct (as that
term is used in section 919 of the Energy Policy Act of
2005), shall be considered to be the equivalent of 2.5
gallons of renewable fuel.
``(6) Credit program.--
``(A) In general.--The regulations promulgated to
carry out this subsection shall provide for the
generation of an appropriate amount of credits by any
person that refines, blends, or imports gasoline that
contains a quantity of renewable fuel that is greater
than the quantity required under paragraph (2). Such
regulations shall provide for the generation of an
appropriate amount of credits for biodiesel fuel. If a
small refinery notifies the Administrator that it
waives the exemption provided paragraph (11), the
regulations shall provide for the generation of credits
by the small refinery beginning in the year following
such notification.
``(B) Use of credits.--A person that generates
credits under subparagraph (A) may use the credits, or
transfer all or a portion of the credits to another
person, for the purpose of complying with paragraph
(2).
``(C) Life of credits.--A credit generated under
this paragraph shall be valid to show compliance--
``(i) in the calendar year in which the
credit was generated or the next calendar year;
or
``(ii) in the calendar year in which the
credit was generated or next two consecutive
calendar years if the Administrator promulgates
regulations under paragraph (7).
``(D) Inability to purchase sufficient credits.--
The regulations promulgated to carry out this
subsection shall include provisions allowing any person
that is unable to generate or purchase sufficient
credits to meet the requirements under paragraph (2) to
carry forward a renewable fuel deficit provided that,
in the calendar year following the year in which the
renewable fuel deficit is created, such person shall
achieve compliance with the renewable fuel requirement
under paragraph (2), and shall generate or purchase
additional renewable fuel credits to offset the
renewable fuel deficit of the previous year.
``(7) Seasonal variations in renewable fuel use.--
``(A) Study.--For each of the calendar years 2005
through 2012, the Administrator of the Energy
Information Administration shall conduct a study of
renewable fuels blending to determine whether there are
excessive seasonal variations in the use of renewable
fuels.
``(B) Regulation of excessive seasonal
variations.--If, for any calendar year, the
Administrator of the Energy Information Administration,
based on the study under subparagraph (A), makes the
determinations specified in subparagraph (C), the
Administrator shall promulgate regulations to ensure
that 35 percent or more of the quantity of renewable
fuels necessary to meet the requirement of paragraph
(2) is used during each of the periods specified in
subparagraph (D) of each subsequent calendar year.
``(C) Determinations.--The determinations referred
to in subparagraph (B) are that--
``(i) less than 35 percent of the quantity
of renewable fuels necessary to meet the
requirement of paragraph (2) has been used
during one of the periods specified in
subparagraph (D) of the calendar year;
``(ii) a pattern of excessive seasonal
variation described in clause (i) will continue
in subsequent calendar years; and
``(iii) promulgating regulations or other
requirements to impose a 35 percent or more
seasonal use of renewable fuels will not
prevent or interfere with the attainment of
national ambient air quality standards or
significantly increase the price of motor fuels
to the consumer.
``(D) Periods.--The two periods referred to in this
paragraph are--
``(i) April through September; and
``(ii) January through March and October
through December.
``(E) Exclusions.--Renewable fuels blended or
consumed in 2005 in a State which has received a waiver
under section 209(b) shall not be included in the study
in subparagraph (A).
``(8) Waivers.--
``(A) In general.--The Administrator, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, may waive the requirement of
paragraph (2) in whole or in part on petition by one or
more States by reducing the national quantity of
renewable fuel required under this subsection--
``(i) based on a determination by the
Administrator, after public notice and
opportunity for comment, that implementation of
the requirement would severely harm the economy
or environment of a State, a region, or the
United States; or
``(ii) based on a determination by the
Administrator, after public notice and
opportunity for comment, that there is an
inadequate domestic supply or distribution
capacity to meet the requirement.
``(B) Petitions for waivers.--The Administrator, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, shall approve or disapprove a
State petition for a waiver of the requirement of
paragraph (2) within 90 days after the date on which
the petition is received by the Administrator.
``(C) Termination of waivers.--A waiver granted
under subparagraph (A) shall terminate after 1 year,
but may be renewed by the Administrator after
consultation with the Secretary of Agriculture and the
Secretary of Energy.
``(9) Study and waiver for initial year of program.--Not
later than 180 days after the enactment of this subsection, the
Secretary of Energy shall complete for the Administrator a
study assessing whether the renewable fuels requirement under
paragraph (2) will likely result in significant adverse
consumer impacts in 2005, on a national, regional, or State
basis. Such study shall evaluate renewable fuel supplies and
prices, blendstock supplies, and supply and distribution system
capabilities. Based on such study, the Secretary shall make
specific recommendations to the Administrator regarding waiver
of the requirements of paragraph (2), in whole or in part, to
avoid any such adverse impacts. Within 270 days after the
enactment of this subsection, the Administrator shall,
consistent with the recommendations of the Secretary, waive, in
whole or in part, the renewable fuels requirement under
paragraph (2) by reducing the national quantity of renewable
fuel required under this subsection in 2005. This paragraph
shall not be interpreted as limiting the Administrator's
authority to waive the requirements of paragraph (2) in whole,
or in part, under paragraph (8) or paragraph (10), pertaining
to waivers.
``(10) Assessment and waiver.--The Administrator, in
consultation with the Secretary of Energy and the Secretary of
Agriculture, shall evaluate the requirement of paragraph (2)
and determine, prior to January 1, 2007, and prior to January 1
of any subsequent year in which the applicable volume of
renewable fuel is increased under paragraph (2)(B), whether the
requirement of paragraph (2), including the applicable volume
of renewable fuel contained in paragraph (2)(B) should remain
in effect, in whole or in part, during 2007 or any year or
years subsequent to 2007. In evaluating the requirement of
paragraph (2) and in making any determination under this
section, the Administrator shall consider the best available
information and data collected by accepted methods or best
available means regarding--
``(A) the capacity of renewable fuel producers to
supply an adequate amount of renewable fuel at
competitive prices to fulfill the requirement of
paragraph (2);
``(B) the potential of the requirement of paragraph
(2) to significantly raise the price of gasoline, food
(excluding the net price impact on the requirement in
paragraph (2) on commodities used in the production of
ethanol), or heating oil for consumers in any
significant area or region of the country above the
price that would otherwise apply to such commodities in
the absence of such requirement;
``(C) the potential of the requirement of paragraph
(2) to interfere with the supply of fuel in any
significant gasoline market or region of the country,
including interference with the efficient operation of
refiners, blenders, importers, wholesale suppliers, and
retail vendors of gasoline, and other motor fuels; and
``(D) the potential of the requirement of paragraph
(2) to cause or promote exceedances of Federal, State,
or local air quality standards.
If the Administrator determines, by clear and convincing
information, after public notice and the opportunity for
comment, that the requirement of paragraph (2) would have
significant and meaningful adverse impact on the supply of fuel
and related infrastructure or on the economy, public health, or
environment of any significant area or region of the country,
the Administrator may waive, in whole or in part, the
requirement of paragraph (2) in any one year for which the
determination is made for that area or region of the country,
except that any such waiver shall not have the effect of
reducing the applicable volume of renewable fuel specified in
paragraph (2)(B) with respect to any year for which the
determination is made. In determining economic impact under
this paragraph, the Administrator shall not consider the
reduced revenues available from the Highway Trust Fund (section
9503 of the Internal Revenue Code of 1986) as a result of the
use of ethanol.
``(11) Small refineries.--
``(A) In general.--The requirement of paragraph (2)
shall not apply to small refineries until the first
calendar year beginning more than 5 years after the
first year set forth in the table in paragraph
(2)(B)(i). Not later than December 31, 2007, the
Secretary of Energy shall complete for the
Administrator a study to determine whether the
requirement of paragraph (2) would impose a
disproportionate economic hardship on small refineries.
For any small refinery that the Secretary of Energy
determines would experience a disproportionate economic
hardship, the Administrator shall extend the small
refinery exemption for such small refinery for no less
than two additional years.
``(B) Economic hardship.--
``(i) Extension of exemption.--A small
refinery may at any time petition the
Administrator for an extension of the exemption
from the requirement of paragraph (2) for the
reason of disproportionate economic hardship.
In evaluating a hardship petition, the
Administrator, in consultation with the
Secretary of Energy, shall consider the
findings of the study in addition to other
economic factors.
``(ii) Deadline for action on petitions.--
The Administrator shall act on any petition
submitted by a small refinery for a hardship
exemption not later than 90 days after the
receipt of the petition.
``(C) Credit program.--If a small refinery notifies
the Administrator that it waives the exemption provided
by this Act, the regulations shall provide for the
generation of credits by the small refinery beginning
in the year following such notification.
``(D) Opt-in for small refiners.--A small refinery
shall be subject to the requirements of this section if
it notifies the Administrator that it waives the
exemption under subparagraph (A).
``(12) Ethanol market concentration analysis.--
``(A) Analysis.--
``(i) In general.--Not later than 180 days
after the date of enactment of this subsection,
and annually thereafter, the Federal Trade
Commission shall perform a market concentration
analysis of the ethanol production industry
using the Herfindahl-Hirschman Index to
determine whether there is sufficient
competition among industry participants to
avoid price setting and other anticompetitive
behavior.
``(ii) Scoring.--For the purpose of scoring
under clause (i) using the Herfindahl-Hirschman
Index, all marketing arrangements among
industry participants shall be considered.
``(B) Report.--Not later than December 1, 2005, and
annually thereafter, the Federal Trade Commission shall
submit to Congress and the Administrator a report on
the results of the market concentration analysis
performed under subparagraph (A)(i).''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act
(42 U.S.C. 7545(d)) is amended as follows:
(1) In paragraph (1)--
(A) in the first sentence, by striking ``or (n)''
each place it appears and inserting ``(n), or (o)'';
and
(B) in the second sentence, by striking ``or (m)''
and inserting ``(m), or (o)''.
(2) In the first sentence of paragraph (2), by striking
``and (n)'' each place it appears and inserting ``(n), and
(o)''.
(c) Survey of Renewable Fuel Market.--
(1) Survey and report.--Not later than December 1, 2006,
and annually thereafter, the Administrator of the Environmental
Protection Agency (in consultation with the Secretary of Energy
acting through the Administrator of the Energy Information
Administration) shall--
(A) conduct, with respect to each conventional
gasoline use area and each reformulated gasoline use
area in each State, a survey to determine the market
shares of--
(i) conventional gasoline containing
ethanol;
(ii) reformulated gasoline containing
ethanol;
(iii) conventional gasoline containing
renewable fuel; and
(iv) reformulated gasoline containing
renewable fuel; and
(B) submit to Congress, and make publicly
available, a report on the results of the survey under
subparagraph (A).
(2) Recordkeeping and reporting requirements.--The
Administrator of the Environmental Protection Agency
(hereinafter in this subsection referred to as the
``Administrator'') may require any refiner, blender, or
importer to keep such records and make such reports as are
necessary to ensure that the survey conducted under paragraph
(1) is accurate. The Administrator, to avoid duplicative
requirements, shall rely, to the extent practicable, on
existing reporting and recordkeeping requirements and other
information available to the Administrator including gasoline
distribution patterns that include multistate use areas.
(3) Applicable law.--Activities carried out under this
subsection shall be conducted in a manner designed to protect
confidentiality of individual responses.
SEC. 1502. FUELS SAFE HARBOR.
(a) In General.--Notwithstanding any other provision of Federal or
State law, no renewable fuel, as defined by section 211(o)(1) of the
Clean Air Act, or methyl tertiary butyl ether (hereinafterin this
section referred to as ``MTBE''), used or intended to be used as a
motor vehicle fuel, nor any motor vehicle fuel containing such
renewable fuel or MTBE, shall be deemed a defective product by virtue
of the fact that it is, or contains, such a renewable fuel or MTBE, if
it does not violate a control or prohibition imposed by the
Administrator of the Environmental Protection Agency (hereinafter in
this section referred to as the ``Administrator'') under section 211 of
such Act, and the manufacturer is in compliance with all requests for
information under subsection (b) of such section 211 of such Act. If
the safe harbor provided by this section does not apply, the existence
of a claim of defective product shall be determined under otherwise
applicable law. Nothing in this subsection shall be construed to affect
the liability of any person for environmental remediation costs,
drinking water contamination, negligence for spills or other reasonably
foreseeable events, public or private nuisance, trespass, breach of
warranty, breach of contract, or any other liability other than
liability based upon a claim of defective product.
(b) Effective Date.--This section shall be effective as of
September 5, 2003, and shall apply with respect to all claims filed on
or after that date.
SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE.
(a) Findings.--Congress finds that--
(1) since 1979, methyl tertiary butyl ether (hereinafter in
this section referred to as ``MTBE'') has been used nationwide
at low levels in gasoline to replace lead as an octane booster
or anti-knocking agent;
(2) Public Law 101-549 (commonly known as the ``Clean Air
Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) established
a fuel oxygenate standard under which reformulated gasoline
must contain at least 2 percent oxygen by weight;
(3) at the time of the adoption of the fuel oxygen
standard, Congress was aware that significant use of MTBE would
result from the adoption of that standard, and that the use of
MTBE would likely be important to the cost-effective
implementation of that program;
(4) Congress was aware that gasoline and its component
additives can and do leak from storage tanks;
(5) the fuel industry responded to the fuel oxygenate
standard established by Public Law 101-549 by making
substantial investments in--
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing gasoline to
the marketplace;
(6) having previously required oxygenates like MTBE for air
quality purposes, Congress has--
(A) reconsidered the relative value of MTBE in
gasoline;
(B) decided to establish a date certain for action
by the Environmental Protection Agency to prohibit the
use of MTBE in gasoline; and
(C) decided to provide for the elimination of the
oxygenate requirement for reformulated gasoline and to
provide for a renewable fuels content requirement for
motor fuel; and
(7) it is appropriate for Congress to provide some limited
transition assistance--
(A) to merchant producers of MTBE who produced MTBE
in response to a market created by the oxygenate
requirement contained in the Clean Air Act; and
(B) for the purpose of mitigating any fuel supply
problems that may result from the elimination of the
oxygenate requirement for reformulated gasoline and
from the decision to establish a date certain for
action by the Environmental Protection Agency to
prohibit the use of MTBE in gasoline.
(b) Purposes.--The purpose of this section is to provide assistance
to merchant producers of MTBE in making the transition from producing
MTBE to producing other fuel additives.
(c) MTBE Merchant Producer Conversion Assistance.--Section 211(c)
of the Clean Air Act (42 U.S.C. 7545(c)) is amended by adding at the
end the following:
``(5) MTBE merchant producer conversion assistance.--
``(A) In general.--
``(i) Grants.--The Secretary of Energy, in
consultation with the Administrator, may make
grants to merchant producers of methyl tertiary
butyl ether (hereinafter in this subsection
referred to as `MTBE') in the United States to
assist the producers in the conversion of
eligible production facilities described in
subparagraph (C) to the production of iso-
octane, iso-octene, alkylates, or renewable
fuels.
``(ii) Determination.--The Administrator,
in consultation with the Secretary of Energy,
may determine that transition assistance for
the production of iso-octane, iso-octene,
alkylates, or renewable fuels is inconsistent
with the provisions of subparagraph (B) and, on
that basis, may deny applications for grants
authorized by this paragraph.
``(B) Further grants.--The Secretary of Energy, in
consultation with the Administrator, may also further
make grants to merchant producers of MTBE in the United
States to assist the producers in the conversion of
eligible production facilities described in
subparagraph (C) to the production of such other fuel
additives (unless the Administrator determines that
such fuel additives may reasonably be anticipated to
endanger public health or the environment) that,
consistent with this subsection--
``(i) have been registered and have been
tested or are being tested in accordance with
the requirements of this section; and
``(ii) will contribute to replacing
gasoline volumes lost as a result of amendments
made to subsection (k) of this section by
section 1504(a) and 1506 of the Energy Policy
Act of 2005.
``(C) Eligible production facilities.--A production
facility shall be eligible to receive a grant under
this paragraph if the production facility--
``(i) is located in the United States; and
``(ii) produced MTBE for consumption before
April 1, 2003 and ceased production at any time
after the date of enactment of this paragraph.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $250,000,000 for each of fiscal years 2005
through 2012, to remain available until expended.''.
SEC. 1504. USE OF MTBE.
(a) In General.--Subject to subsections (e) and (f), not later than
December 31, 2014, the use of methyl tertiary butyl ether (hereinafter
in this section referred to as ``MTBE'') in motor vehicle fuel in any
State other than a State described in subsection (c) is prohibited.
(b) Regulations.--The Administrator of the Environmental Protection
Agency (hereafter referred to in this section as the ``Administrator'')
shall promulgate regulations to effect the prohibition in subsection
(a).
(c) States That Authorize Use.--A State described in this
subsection is a State in which the Governor of the State submits a
notification to the Administrator authorizing the use of MTBE in motor
vehicle fuel sold or used in the State.
(d) Publication of Notice.--The Administrator shall publish in the
Federal Register each notice submitted by a State under subsection (c).
(e) Trace Quantities.--In carrying out subsection (a), the
Administrator may allow trace quantities of MTBE, not to exceed 0.5
percent by volume, to be present in motor vehicle fuel in cases that
the Administrator determines to be appropriate.
(f) Limitation.--The Administrator, under authority of subsection
(a), shall not prohibit or control the production of MTBE for export
from the United States or for any other use other than for use in motor
vehicle fuel.
(g) Effect on State Law.--The amendments made by this title have no
effect regarding any available authority of States to limit the use of
methyl tertiary butyl ether in motor vehicle fuel.
SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND PRESIDENTIAL
DETERMINATION.
(a) NAS Review.--Not later than May 31, 2013, the Secretary shall
enter into an arrangement with the National Academy of Sciences to
review the use of methyl tertiary butyl ether (hereafter referred to in
this section as ``MTBE'') in fuel and fuel additives. The review shall
only use the best available scientific information and data collected
by accepted methods or the best available means. The review shall
examine the use of MTBE in fuel and fuel additives, significant
beneficial and detrimental effects of this use on environmental quality
or public health or welfare including the costs and benefits of such
effects, likely effects of controls or prohibitions on MTBE regarding
fuel availability and price, and other appropriate and reasonable
actions that are available to protect the environment or public health
or welfare from any detrimental effects of the use of MTBE in fuel or
fuel additives. The review shall be peer-reviewed prior to publication
and all supporting data and analytical models shall be available to the
public. The review shall be completed no later than May 31, 2014.
(b) Presidential Determination.--No later than June 30, 2014, the
President may make a determination that restrictions on the use of MTBE
to be implemented pursuant to section 1504 shall not take place and
that the legal authority contained in section 1504 to prohibit the use
of MTBE in motor vehicle fuel shall become null and void.
SEC. 1506. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED
GASOLINE.
(a) Elimination.--
(1) In general.--Section 211(k) of the Clean Air Act (42
U.S.C. 7545(k)) is amended as follows:
(A) In paragraph (2)--
(i) in the second sentence of subparagraph
(A), by striking ``(including the oxygen
content requirement contained in subparagraph
(B))'';
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs (C)
and (D) as subparagraphs (B) and (C),
respectively.
(B) In paragraph (3)(A), by striking clause (v).
(C) In paragraph (7)--
(i) in subparagraph (A)--
(I) by striking clause (i); and
(II) by redesignating clauses (ii)
and (iii) as clauses (i) and (ii),
respectively; and
(ii) in subparagraph (C)--
(I) by striking clause (ii).
(II) by redesignating clause (iii)
as clause (ii).
(2) Effective date.--The amendments made by paragraph (1)
take effect 270 days after the date of enactment of this Act,
except that such amendments shall take effect upon such date of
enactment in any State that has received a waiver under section
209(b) of the Clean Air Act.
(b) Maintenance of Toxic Air Pollutant Emission Reductions.--
Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is
amended as follows:
(1) By striking ``Within 1 year after the enactment of the
Clean Air Act Amendments of 1990,'' and inserting the
following:
``(A) In general.--Not later than November 15,
1991,''.
(2) By adding at the end the following:
``(B) Maintenance of toxic air pollutant emissions
reductions from reformulated gasoline.--
``(i) Definitions.--In this subparagraph
the term `PADD' means a Petroleum
Administration for Defense District.
``(ii) Regulations regarding emissions of
toxic air pollutants.--Not later than 270 days
after the date of enactment of this
subparagraph the Administrator shall establish,
for each refinery or importer, standards for
toxic air pollutants from use of the
reformulated gasoline produced or distributed
by the refinery or importer that maintain the
reduction of the average annual aggregate
emissions of toxic air pollutants for
reformulated gasoline produced or distributed
by the refinery or importer during calendar
years 1999 and 2000, determined on the basis of
data collected by the Administrator with
respect to the refinery or importer.
``(iii) Standards applicable to specific
refineries or importers.--
``(I) Applicability of standards.--
For any calendar year, the standards
applicable to a refinery or importer
under clause (ii) shall apply to the
quantity of gasoline produced or
distributed by the refinery or importer
in the calendar year only to the extent
that the quantity is less than or equal
to the average annual quantity of
reformulated gasoline produced or
distributed by the refinery or importer
during calendar years 1999 and 2000.
``(II) Applicability of other
standards.--For any calendar year, the
quantity of gasoline produced or
distributed by a refinery or importer
that is in excess of the quantity
subject to subclause (I) shall be
subject to standards for toxic air
pollutants promulgated under
subparagraph (A) and paragraph (3)(B).
``(iv) Credit program.--The Administrator
shall provide for the granting and use of
credits for emissions of toxic air pollutants
in the same manner as provided in paragraph
(7).
``(v) Regional protection of toxics
reduction baselines.--
``(I) In general.--Not later than
60 days after the date of enactment of
this subparagraph, and not later than
April 1 of each calendar year that
begins after that date of enactment,
the Administrator shall publish in the
Federal Register a report that
specifies, with respect to the previous
calendar year--
``(aa) the quantity of
reformulated gasoline produced
that is in excess of the
average annual quantity of
reformulated gasoline produced
in 1999 and 2000; and
``(bb) the reduction of the
average annual aggregate
emissions of toxic air
pollutants in each PADD, based
on retail survey data or data
from other appropriate sources.
``(II) Effect of failure to
maintain aggregate toxics reductions.--
If, in any calendar year, the reduction
of the average annual aggregate
emissions of toxic air pollutants in a
PADD fails to meet or exceed the
reduction of the average annual
aggregate emissions of toxic air
pollutants in the PADD in calendar
years 1999 and 2000, the Administrator,
not later than 90 days after the date
of publication of the report for the
calendar year under subclause (I),
shall--
``(aa) identify, to the
maximum extent practicable, the
reasons for the failure,
including the sources, volumes,
and characteristics of
reformulated gasoline that
contributed to the failure; and
``(bb) promulgate revisions
to the regulations promulgated
under clause (ii), to take
effect not earlier than 180
days but not later than 270
days after the date of
promulgation, to provide that,
notwithstanding clause
(iii)(II), all reformulated
gasoline produced or
distributed at each refinery or
importer shall meet the
standards applicable under
clause (ii) not later than
April 1 of the year following
the report in subclause (II)
and for subsequent years.
``(vi) Regulations to control hazardous air
pollutants from motor vehicles and motor
vehicle fuels.--Not later than July 1, 2005,
the Administrator shall promulgate final
regulations to control hazardous air pollutants
from motor vehicles and motor vehicle fuels, as
provided for in section 80.1045 of title 40,
Code of Federal Regulations (as in effect on
the date of enactment of this subparagraph).''.
(c) Consolidation in Reformulated Gasoline Regulations.--Not later
than 180 days after the date of enactment of this Act, the
Administrator of the Environmental Protection Agency shall revise the
reformulated gasoline regulations under subpart D of part 80 of title
40, Code of Federal Regulations, to consolidate the regulations
applicable to VOC-Control Regions 1 and 2 under section 80.41 of that
title by eliminating the less stringent requirements applicable to
gasoline designated for VOC-Control Region 2 and instead applying the
more stringent requirements applicable to gasoline designated for VOC-
Control Region 1.
(d) Savings Clause.--Nothing in this section is intended to affect
or prejudice either any legal claims or actions with respect to
regulations promulgated by the Administrator of the Environmental
Protection Agency (hereinafter in this subsection referred to as the
``Administrator'') prior to the date of enactment of this Act regarding
emissions of toxic air pollutants from motor vehicles or the adjustment
of standards applicable to a specific refinery or importer made under
such prior regulations and the Administrator may apply such adjustments
to the standards applicable to such refinery or importer under clause
(iii)(I) of section 211(k)(1)(B) of the Clean Air Act, except that--
(1) the Administrator shall revise such adjustments to be
based only on calendar years 1999-2000; and
(2) for adjustments based on toxic air pollutant emissions
from reformulated gasoline significantly below the national
annual average emissions of toxic air pollutants from all
reformulated gasoline, the Administrator may revise such
adjustments to take account of the scope of Federal or State
prohibitions on the use of methyl tertiary butyl ether imposed
after the date of the enactment of this paragraph, except that
any such adjustment shall require such refiner or importer, to
the greatest extent practicable, to maintain the reduction
achieved during calendar years 1999-2000 in the average annual
aggregate emissions of toxic air pollutants from reformulated
gasoline produced or distributed by the refinery or importer;
Provided, that any such adjustment shall not be made at a level
below the average percentage of reductions of emissions of
toxic air pollutants for reformulated gasoline supplied to PADD
I during calendar years 1999-2000.
SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
inserting after subsection (o) the following:
``(p) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
``(1) Anti-backsliding analysis.--
``(A) Draft analysis.--Not later than 4 years after
the date of enactment of this subsection, the
Administrator shall publish for public comment a draft
analysis of the changes in emissions of air pollutants
and air quality due to the use of motor vehicle fuel
and fuel additives resulting from implementation of the
amendments made by subtitle A of title XV of the Energy
Policy Act of 2005.
``(B) Final analysis.--After providing a reasonable
opportunity for comment but not later than 5 years
after the date of enactment of this paragraph, the
Administrator shall publish the analysis in final form.
``(2) Emissions model.--For the purposes of this
subsection, as soon as the necessary data are available, the
Administrator shall develop and finalize an emissions model
that reasonably reflects the effects of gasoline
characteristics or components on emissions from vehicles in the
motor vehicle fleet during calendar year 2005.''.
SEC. 1508. DATA COLLECTION.
Section 205 of the Department of Energy Organization Act (42 U.S.C.
7135) is amended by adding at the end the following:
``(m) Renewable Fuels Survey.--(1) In order to improve the ability
to evaluate the effectiveness of the Nation's renewable fuels mandate,
the Administrator shall conduct and publish the results of a survey of
renewable fuels demand in the motor vehicle fuels market in the United
States monthly, and in a manner designed to protect the confidentiality
of individual responses. In conducting the survey, the Administrator
shall collect information both on a national and regional basis,
including each of the following:
``(A) The quantity of renewable fuels produced.
``(B) The quantity of renewable fuels blended.
``(C) The quantity of renewable fuels imported.
``(D) The quantity of renewable fuels demanded.
``(E) Market price data.
``(F) Such other analyses or evaluations as the
Administrator finds is necessary to achieve the purposes of
this section.
``(2) The Administrator shall also collect or estimate information
both on a national and regional basis, pursuant to subparagraphs (A)
through (F) of paragraph (1), for the 5 years prior to implementation
of this subsection.
``(3) This subsection does not affect the authority of the
Administrator to collect data under section 52 of the Federal Energy
Administration Act of 1974 (15 U.S.C. 790a).''.
SEC. 1509. REDUCING THE PROLIFERATION OF STATE FUEL CONTROLS.
(a) EPA Approval of State Plans With Fuel Controls.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended
by adding at the end the following: ``The Administrator shall not
approve a control or prohibition respecting the use of a fuel or fuel
additive under this subparagraph unless the Administrator, after
consultation with the Secretary of Energy, publishes in the Federal
Register a finding that, in the Administrator's judgment, such control
or prohibition will not cause fuel supply or distribution interruptions
or have a significant adverse impact on fuel producibility in the
affected area or contiguous areas.''.
(b) Study.--The Administrator of the Environmental Protection
Agency (hereinafter in this subsection referred to as the
``Administrator''), in cooperation with the Secretary of Energy, shall
undertake a study of the projected effects on air quality, the
proliferation of fuel blends, fuel availability, and fuel costs of
providing a preference for each of the following:
(A) Reformulated gasoline referred to in subsection (k) of
section 211 of the Clean Air Act.
(B) A low RVP gasoline blend that has been certified by the
Administrator as having a Reid Vapor Pressure of 7.0 pounds per
square inch (psi).
(C) A low RVP gasoline blend that has been certified by the
Administrator as having a Reid Vapor Pressure of 7.8 pounds per
square inch (psi).
In carrying out such study, the Administrator shall obtain comments
from affected parties. The Administrator shall submit the results of
such study to the Congress not later than 18 months after the date of
enactment of this Act, together with any recommended legislative
changes.
SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.
(a) Study.--
(1) In general.--The Administrator of the Environmental
Protection Agency (hereinafter in this section referred to as
the ``Administrator'') and the Secretary of Energy shall
jointly conduct a study of Federal, State, and local
requirements concerning motor vehicle fuels, including--
(A) requirements relating to reformulated gasoline,
volatility (measured in Reid vapor pressure),
oxygenated fuel, and diesel fuel; and
(B) other requirements that vary from State to
State, region to region, or locality to locality.
(2) Required elements.--The study shall assess--
(A) the effect of the variety of requirements
described in paragraph (1) on the supply, quality, and
price of motor vehicle fuels available to consumers in
various States and localities;
(B) the effect of the requirements described in
paragraph (1) on achievement of--
(i) national, regional, and local air
quality standards and goals; and
(ii) related environmental and public
health protection standards and goals;
(C) the effect of Federal, State, and local motor
vehicle fuel regulations, including multiple motor
vehicle fuel requirements, on--
(i) domestic refineries;
(ii) the fuel distribution system; and
(iii) industry investment in new capacity;
(D) the effect of the requirements described in
paragraph (1) on emissions from vehicles, refineries,
and fuel handling facilities;
(E) the feasibility of developing national or
regional motor vehicle fuel slates for the 48
contiguous States that, while improving air quality at
the national, regional and local levels consistent with
the attainment of national ambient air quality
standards, could--
(i) enhance flexibility in the fuel
distribution infrastructure and improve fuel
fungibility;
(ii) reduce price volatility and costs to
consumers and producers;
(iii) provide increased liquidity to the
gasoline market; and
(iv) enhance fuel quality, consistency, and
supply;
(F) the feasibility of providing incentives to
promote cleaner burning motor vehicle fuel; and
(G) the extent to which improvements in air quality
and any increases or decreases in the price of motor
fuel can be projected to result from the Environmental
Protection Agency's Tier II requirements for
conventional gasoline and vehicle emission systems, the
reformulated gasoline program, the renewable content
requirements established by this subtitle, State
programs regarding gasoline volatility, and any other
requirements imposed by States or localities affecting
the composition of motor fuel.
(b) Report.--
(1) In general.--Not later than December 31, 2007, the
Administrator and the Secretary of Energy shall submit to
Congress a report on the results of the study conducted under
subsection (a).
(2) Recommendations.--
(A) In general.--The report under this subsection
shall contain recommendations for legislative and
administrative actions that may be taken--
(i) to improve air quality;
(ii) to reduce costs to consumers and
producers; and
(iii) to increase supply liquidity.
(B) Required considerations.--The recommendations
under subparagraph (A) shall take into account the need
to provide advance notice of required modifications to
refinery and fuel distribution systems in order to
ensure an adequate supply of motor vehicle fuel in all
States.
(3) Consultation.--In developing the report under this
subsection, the Administrator and the Secretary of Energy shall
consult with--
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and distributors;
and
(D) the public.
SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE AND
CELLULOSIC BIOMASS LOAN GUARANTEE PROGRAM.
(a) Definition of Municipal Solid Waste.--In this section, the term
``municipal solid waste'' has the meaning given the term ``solid
waste'' in section 1004 of the Solid Waste Disposal Act (42 U.S.C.
6903).
(b) Establishment of Program.--The Secretary of Energy (hereinafter
in this section referred to as the ``Secretary'') shall establish a
program to provide guarantees of loans by private institutions for the
construction of facilities for the processing and conversion of
municipal solid waste and cellulosic biomass into fuel ethanol and
other commercial byproducts.
(c) Requirements.--The Secretary may provide a loan guarantee under
subsection (b) to an applicant if--
(1) without a loan guarantee, credit is not available to
the applicant under reasonable terms or conditions sufficient
to finance the construction of a facility described in
subsection (b);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a
reasonable assurance of repayment of the loan to be guaranteed
in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity
of the loan.
(d) Criteria.--In selecting recipients of loan guarantees from
among applicants, the Secretary shall give preference to proposals
that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest
need for the facility because of--
(A) the limited availability of land for waste
disposal;
(B) the availability of sufficient quantities of
cellulosic biomass; or
(C) a high level of demand for fuel ethanol or
other commercial byproducts of the facility.
(e) Maturity.--A loan guaranteed under subsection (b) shall have a
maturity of not more than 20 years.
(f) Terms and Conditions.--The loan agreement for a loan guaranteed
under subsection (b) shall provide that no provision of the loan
agreement may be amended or waived without the consent of the
Secretary.
(g) Assurance of Repayment.--The Secretary shall require that an
applicant for a loan guarantee under subsection (b) provide an
assurance of repayment in the form of a performance bond, insurance,
collateral, or other means acceptable to the Secretary in an amount
equal to not less than 20 percent of the amount of the loan.
(h) Guarantee Fee.--The recipient of a loan guarantee under
subsection (b) shall pay the Secretary an amount determined by the
Secretary to be sufficient to cover the administrative costs of the
Secretary relating to the loan guarantee.
(i) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
section. Any such guarantee made by the Secretary shall be conclusive
evidence of the eligibility of the loan for the guarantee with respect
to principal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed loan.
(j) Reports.--Until each guaranteed loan under this section has
been repaid in full, the Secretary shall annually submit to Congress a
report on the activities of the Secretary under this section.
(k) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(l) Termination of Authority.--The authority of the Secretary to
issue a loan guarantee under subsection (b) terminates on the date that
is 10 years after the date of enactment of this Act.
SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DERIVED ETHANOL CONVERSION
ASSISTANCE.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
adding at the end the following:
``(r) Cellulosic Biomass and Waste-Derived Ethanol Conversion
Assistance.--
``(1) In general.--The Secretary of Energy may provide
grants to merchant producers of cellulosic biomass ethanol and
waste-derived ethanol in the United States to assist the
producers in building eligible production facilities described
in paragraph (2) for the production of ethanol.
``(2) Eligible production facilities.--A production
facility shall be eligible to receive a grant under this
subsection if the production facility--
``(A) is located in the United States; and
``(B) uses cellulosic biomass or waste-derived
feedstocks derived from agricultural residues, wood
residues, municipal solid waste, or agricultural
byproducts as that term is used in section 919 of the
Energy Policy Act of 2005.
``(3) Authorization of appropriations.--There are
authorized to be appropriated the following amounts to carry
out this subsection:
``(A) $100,000,000 for fiscal year 2005.
``(B) $250,000,000 for fiscal year 2006.
``(C) $400,000,000 for fiscal year 2007.''.
SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GASOLINES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
adding at the end the following:
``(s) Blending of Compliant Reformulated Gasolines.--
``(1) In general.--Notwithstanding subsections (h) and (k)
and subject to the limitations in paragraph (2) of this
subsection, it shall not be a violation of this subtitle for a
gasoline retailer, during any month of the year, to blend at a
retail location batches of ethanol-blended and non-ethanol-
blended reformulated gasoline, provided that--
``(A) each batch of gasoline to be blended has been
individually certified as in compliance with
subsections (h) and (k) prior to being blended;
``(B) the retailer notifies the Administrator prior
to such blending, and identifies the exact location of
the retail station and the specific tank in which such
blending will take place;
``(C) the retailer retains and, as requested by the
Administrator or the Administrator's designee, makes
available for inspection such certifications accounting
for all gasoline at the retail outlet; and
``(D) the retailer does not, between June 1 and
September 15 of each year, blend a batch of VOC-
controlled, or `summer', gasoline with a batch of non-
VOC-controlled, or `winter', gasoline (as these terms
are defined under subsections (h) and (k)).
``(2) Limitations.--
``(A) Frequency limitation.--A retailer shall only
be permitted to blend batches of compliant reformulated
gasoline under this subsection a maximum of two
blending periods between May 1 and September 15 of each
calendar year.
``(B) Duration of blending period.--Each blending
period authorized under subparagraph (A) shall extend
for a period of no more than 10 consecutive calendar
days.
``(3) Surveys.--A sample of gasoline taken from a retail
location that has blended gasoline within the past 30 days and
is in compliance with subparagraphs (A), (B), (C), and (D) of
paragraph (1) shall not be used in a VOC survey mandated by 40
C.F.R. Part 80.
``(4) State implementation plans.--A State shall be held
harmless and shall not be required to revise its State
implementation plan under section 110 to account for the
emissions from blended gasoline authorized under paragraph (1).
``(5) Preservation of state law.--Nothing in this
subsection shall--
``(A) preempt existing State laws or regulations
regulating the blending of compliant gasolines; or
``(B) prohibit a State from adopting such
restrictions in the future.
``(6) Regulations.--The Administrator shall promulgate,
after notice and comment, regulations implementing this
subsection within one year after the date of enactment of this
subsection.
``(7) Effective date.--This subsection shall become
effective 15 months after the date of its enactment and shall
apply to blended batches of reformulated gasoline on or after
that date, regardless of whether the implementing regulations
required by paragraph (6) have been promulgated by the
Administrator by that date.
``(8) Liability.--No person other than the person
responsible for blending under this subsection shall be subject
to an enforcement action or penalties under subsection (d)
solely arising from the blending of compliant reformulated
gasolines by the retailers.
``(9) Formulation of gasoline.--This subsection does not
grant authority to the Administrator or any State (or any
subdivision thereof) to require reformulation of gasoline at
the refinery to adjust for potential or actual emissions
increases due to the blending authorized by this subsection.''.
Subtitle B--Underground Storage Tank Compliance
SEC. 1521. SHORT TITLE.
This subtitle may be cited as the ``Underground Storage Tank
Compliance Act of 2005''.
SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS.
(a) In General.--Section 9004 of the Solid Waste Disposal Act (42
U.S.C. 6991c) is amended by adding at the end the following:
``(f) Trust Fund Distribution.--
``(1) In general.--
``(A) Amount and permitted uses of distribution.--
The Administrator shall distribute to States not less
than 80 percent of the funds from the Trust Fund that
are made available to the Administrator under section
9014(2)(A) for each fiscal year for use in paying the
reasonable costs, incurred under a cooperative
agreement with any State for--
``(i) corrective actions taken by the State
under section 9003(h)(7)(A);
``(ii) necessary administrative expenses,
as determined by the Administrator, that are
directly related to State fund or State
assurance programs under subsection (c)(1); or
``(iii) enforcement, by a State or a local
government, of State or local regulations
pertaining to underground storage tanks
regulated under this subtitle.
``(B) Use of funds for enforcement.--In addition to
the uses of funds authorized under subparagraph (A),
the Administrator may use funds from the Trust Fund
that are not distributed to States under subparagraph
(A) for enforcement of any regulation promulgated by
the Administrator under this subtitle.
``(C) Prohibited uses.--Funds provided to a State
by the Administrator under subparagraph (A) shall not
be used by the State to provide financial assistance to
an owner or operator to meet any requirement relating
to underground storage tanks under subparts B, C, D, H,
and G of part 280 of title 40, Code of Federal
Regulations (as in effect on the date of enactment of
this subsection).
``(2) Allocation.--
``(A) Process.--Subject to subparagraphs (B) and
(C), in the case of a State with which the
Administrator has entered into a cooperative agreement
under section 9003(h)(7)(A), the Administrator shall
distribute funds from the Trust Fund to the State using
an allocation process developed by the Administrator.
``(B) Diversion of state funds.--The Administrator
shall not distribute funds under subparagraph (A)(iii)
of subsection (f)(1) to any State that has diverted
funds from a State fund or State assurance program for
purposes other than those related to the regulation of
underground storage tanks covered by this subtitle,
with the exception of those transfers that had been
completed earlier than the date of enactment of this
subsection.
``(C) Revisions to process.--The Administrator may
revise the allocation process referred to in
subparagraph (A) after--
``(i) consulting with State agencies
responsible for overseeing corrective action
for releases from underground storage tanks;
and
``(ii) taking into consideration, at a
minimum, each of the following:
``(I) The number of confirmed
releases from federally regulated
leaking underground storage tanks in
the States.
``(II) The number of federally
regulated underground storage tanks in
the States.
``(III) The performance of the
States in implementing and enforcing
the program.
``(IV) The financial needs of the
States.
``(V) The ability of the States to
use the funds referred to in
subparagraph (A) in any year.
``(3) Distributions to state agencies.--Distributions from
the Trust Fund under this subsection shall be made directly to
a State agency that--
``(A) enters into a cooperative agreement referred
to in paragraph (2)(A); or
``(B) is enforcing a State program approved under
this section.''.
(b) Withdrawal of Approval of State Funds.--Section 9004(c) of the
Solid Waste Disposal Act (42 U.S.C. 6991c(c)) is amended by inserting
the following new paragraph at the end thereof:
``(6) Withdrawal of approval.--After an opportunity for
good faith, collaborative efforts to correct financial
deficiencies with a State fund, the Administrator may withdraw
approval of any State fund or State assurance program to be
used as a financial responsibility mechanism without
withdrawing approval of a State underground storage tank
program under section 9004(a).''.
(c) Ability to Pay.--Section 9003(h)(6) of the Solid Waste Disposal
Act (42 U.S.C. 6591a(h)(6)) is amended by adding the following new
subparagraph at the end thereof:
``(E) Inability or limited ability to pay.--
``(i) In general.--In determining the level
of recovery effort, or amount that should be
recovered, the Administrator (or the State
pursuant to paragraph (7)) shall consider the
owner or operator's ability to pay. An
inability or limited ability to pay corrective
action costs must be demonstrated to the
Administrator (or the State pursuant to
paragraph (7)) by the owner or operator.
``(ii) Considerations.--In determining
whether or not a demonstration is made under
clause (i), the Administrator (or the State
pursuant to paragraph (7)) shall take into
consideration the ability of the owner or
operator to pay corrective action costs and
still maintain its basic business operations,
including consideration of the overall
financial condition of the owner or operator
and demonstrable constraints on the ability of
the owner or operator to raise revenues.
``(iii) Information.--An owner or operator
requesting consideration under this
subparagraph shall promptly provide the
Administrator (or the State pursuant to
paragraph (7)) with all relevant information
needed to determine the ability of the owner or
operator to pay corrective action costs.
``(iv) Alternative payment methods.--The
Administrator (or the State pursuant to
paragraph (7)) shall consider alternative
payment methods as may be necessary or
appropriate if the Administrator (or the State
pursuant to paragraph (7)) determines that an
owner or operator cannot pay all or a portion
of the costs in a lump sum payment.
``(v) Misrepresentation.--If an owner or
operator provides false information or
otherwise misrepresents their financial
situation under clause (ii), the Administrator
(or the State pursuant to paragraph (7)) shall
seek full recovery of the costs of all such
actions pursuant to the provisions of
subparagraph (A) without consideration of the
factors in subparagraph (B).''.
SEC. 1523. INSPECTION OF UNDERGROUND STORAGE TANKS.
(a) Inspection Requirements.--Section 9005 of the Solid Waste
Disposal Act (42 U.S.C. 6991d) is amended by inserting the following
new subsection at the end thereof:
``(c) Inspection Requirements.--
``(1) Uninspected tanks.--In the case of underground
storage tanks regulated under this subtitle that have not
undergone an inspection since December 22, 1998, not later than
2 years after the date of enactment of this subsection, the
Administrator or a State that receives funding under this
subtitle, as appropriate, shall conduct on-site inspections of
all such tanks to determine compliance with this subtitle and
the regulations under this subtitle (40 C.F.R. 280) or a
requirement or standard of a State program developed under
section 9004.
``(2) Periodic inspections.--After completion of all
inspections required under paragraph (1), the Administrator or
a State that receives funding under this subtitle, as
appropriate, shall conduct on-site inspections of each
underground storage tank regulated under this subtitle at least
once every 3 years to determine compliance with this subtitle
and the regulations under this subtitle (40 C.F.R. 280) or a
requirement or standard of a State program developed under
section 9004. The Administrator may extend for up to one
additional year the first 3-year inspection interval under this
paragraph if the State demonstrates that it has insufficient
resources to complete all such inspections within the first 3-
year period.
``(3) Inspection authority.--Nothing in this section shall
be construed to diminish the Administrator's or a State's
authorities under section 9005(a).''.
(b) Study of Alternative Inspection Programs.--The Administrator of
the Environmental Protection Agency, in coordination with a State,
shall gather information on compliance assurance programs that could
serve as an alternative to the inspection programs under section
9005(c) of the Solid Waste Disposal Act (42 U.S.C. 6991d(c)) and shall,
within 4 years after the date of enactment of this Act, submit a report
to the Congress containing the results of such study.
SEC. 1524. OPERATOR TRAINING.
(a) In General.--Section 9010 of the Solid Waste Disposal Act (42
U.S.C. 6991i) is amended to read as follows:
``SEC. 9010. OPERATOR TRAINING.
``(a) Guidelines.--
``(1) In general.--Not later than 2 years after the date of
enactment of the Underground Storage Tank Compliance Act of
2005, in consultation and cooperation with States and after
public notice and opportunity for comment, the Administrator
shall publish guidelines that specify training requirements
for--
``(A) persons having primary responsibility for on-
site operation and maintenance of underground storage
tank systems;
``(B) persons having daily on-site responsibility
for the operation and maintenance of underground
storage tanks systems; and
``(C) daily, on-site employees having primary
responsibility for addressing emergencies presented by
a spill or release from an underground storage tank
system.
``(2) Considerations.--The guidelines described in
paragraph (1) shall take into account--
``(A) State training programs in existence as of
the date of publication of the guidelines;
``(B) training programs that are being employed by
tank owners and tank operators as of the date of
enactment of the Underground Storage Tank Compliance
Act of 2005;
``(C) the high turnover rate of tank operators and
other personnel;
``(D) the frequency of improvement in underground
storage tank equipment technology;
``(E) the nature of the businesses in which the
tank operators are engaged;
``(F) the substantial differences in the scope and
length of training needed for the different classes of
persons described in subparagraphs (A), (B), and (C) of
paragraph (1); and
``(G) such other factors as the Administrator
determines to be necessary to carry out this section.
``(b) State Programs.--
``(1) In general.--Not later than 2 years after the date on
which the Administrator publishes the guidelines under
subsection (a)(1), each State that receives funding under this
subtitle shall develop State-specific training requirements
that are consistent with the guidelines developed under
subsection (a)(1).
``(2) Requirements.--State requirements described in
paragraph (1) shall--
``(A) be consistent with subsection (a);
``(B) be developed in cooperation with tank owners
and tank operators;
``(C) take into consideration training programs
implemented by tank owners and tank operators as of the
date of enactment of this section; and
``(D) be appropriately communicated to tank owners
and operators.
``(3) Financial incentive.--The Administrator may award to
a State that develops and implements requirements described in
paragraph (1), in addition to any funds that the State is
entitled to receive under this subtitle, not more than
$200,000, to be used to carry out the requirements.
``(c) Training.--All persons that are subject to the operator
training requirements of subsection (a) shall--
``(1) meet the training requirements developed under
subsection (b); and
``(2) repeat the applicable requirements developed under
subsection (b), if the tank for which they have primary daily
on-site management responsibilities is determined to be out of
compliance with--
``(A) a requirement or standard promulgated by the
Administrator under section 9003; or
``(B) a requirement or standard of a State program
approved under section 9004.''.
(b) State Program Requirement.--Section 9004(a) of the Solid Waste
Disposal Act (42 U.S.C. 6991c(a)) is amended by striking ``and'' at the
end of paragraph (7), by striking the period at the end of paragraph
(8) and inserting ``; and'', and by adding the following new paragraph
at the end thereof:
``(9) State-specific training requirements as required by
section 9010.''.
(c) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C. 6991e)
is amended as follows:
(1) By striking ``or'' at the end of subparagraph (B).
(2) By adding the following new subparagraph after
subparagraph (C):
``(D) the training requirements established by States
pursuant to section 9010 (relating to operator training); or''.
(d) Table of Contents.--The item relating to section 9010 in table
of contents for the Solid Waste Disposal Act is amended to read as
follows:
``Sec. 9010. Operator training.''.
SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDITIVES.
Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended as follows:
(1) In paragraph (7)(A)--
(A) by striking ``paragraphs (1) and (2) of this
subsection'' and inserting ``paragraphs (1), (2), and
(12)'' ; and
(B) by striking ``and including the authorities of
paragraphs (4), (6), and (8) of this subsection'' and
inserting ``and the authority under sections 9011 and
9012 and paragraphs (4), (6), and (8),''.
(2) By adding at the end the following:
``(12) Remediation of oxygenated fuel contamination.--
``(A) In general.--The Administrator and the States
may use funds made available under section 9014(2)(B)
to carry out corrective actions with respect to a
release of a fuel containing an oxygenated fuel
additive that presents a threat to human health or
welfare or the environment.
``(B) Applicable authority.--The Administrator or a
State shall carry out subparagraph (A) in accordance
with paragraph (2), and in the case of a State, in
accordance with a cooperative agreement entered into by
the Administrator and the State under paragraph (7).''.
SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND ENFORCEMENT.
(a) Release Prevention and Compliance.--Subtitle I of the Solid
Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by adding at the
end the following:
``SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND COMPLIANCE.
``Funds made available under section 9014(2)(D) from the Trust Fund
may be used to conduct inspections, issue orders, or bring actions
under this subtitle--
``(1) by a State, in accordance with a grant or cooperative
agreement with the Administrator, of State regulations
pertaining to underground storage tanks regulated under this
subtitle; and
``(2) by the Administrator, for tanks regulated under this
subtitle (including under a State program approved under
section 9004).''.
(b) Government-Owned Tanks.--Section 9003 of the Solid Waste
Disposal Act (42 U.S.C. 6991b) is amended by adding at the end the
following:
``(i) Government-Owned Tanks.--
``(1) State compliance report.--(A) Not later than 2 years
after the date of enactment of this subsection, each State that
receives funding under this subtitle shall submit to the
Administrator a State compliance report that--
``(i) lists the location and owner of each
underground storage tank described in subparagraph (B)
in the State that, as of the date of submission of the
report, is not in compliance with section 9003; and
``(ii) specifies the date of the last inspection
and describes the actions that have been and will be
taken to ensure compliance of the underground storage
tank listed under clause (i) with this subtitle.
``(B) An underground storage tank described in this
subparagraph is an underground storage tank that is--
``(i) regulated under this subtitle; and
``(ii) owned or operated by the Federal, State, or
local government.
``(C) The Administrator shall make each report, received
under subparagraph (A), available to the public through an
appropriate media.
``(2) Financial incentive.--The Administrator may award to
a State that develops a report described in paragraph (1), in
addition to any other funds that the State is entitled to
receive under this subtitle, not more than $50,000, to be used
to carry out the report.
``(3) Not a safe harbor.--This subsection does not relieve
any person from any obligation or requirement under this
subtitle.''.
(c) Public Record.--Section 9002 of the Solid Waste Disposal Act
(42 U.S.C. 6991a) is amended by adding at the end the following:
``(d) Public Record.--
``(1) In general.--The Administrator shall require each
State that receives Federal funds to carry out this subtitle to
maintain, update at least annually, and make available to the
public, in such manner and form as the Administrator shall
prescribe (after consultation with States), a record of
underground storage tanks regulated under this subtitle.
``(2) Considerations.--To the maximum extent practicable,
the public record of a State, respectively, shall include, for
each year--
``(A) the number, sources, and causes of
underground storage tank releases in the State;
``(B) the record of compliance by underground
storage tanks in the State with--
``(i) this subtitle; or
``(ii) an applicable State program approved
under section 9004; and
``(C) data on the number of underground storage
tank equipment failures in the State.''.
(d) Incentive for Performance.--Section 9006 of the Solid Waste
Disposal Act (42 U.S.C. 6991e) is amended by adding at the end the
following:
``(e) Incentive for Performance.--Both of the following may be
taken into account in determining the terms of a civil penalty under
subsection (d):
``(1) The compliance history of an owner or operator in
accordance with this subtitle or a program approved under
section 9004.
``(2) Any other factor the Administrator considers
appropriate.''.
(e) Table of Contents.--The table of contents for such subtitle I
is amended by adding the following new item at the end thereof:
``Sec. 9011. Use of funds for release prevention and compliance.''.
SEC. 1527. DELIVERY PROHIBITION.
(a) In General.--Subtitle I of the Solid Waste Disposal Act (42
U.S.C. 6991 et seq.) is amended by adding at the end the following:
``SEC. 9012. DELIVERY PROHIBITION.
``(a) Requirements.--
``(1) Prohibition of delivery or deposit.--Beginning 2
years after the date of enactment of this section, it shall be
unlawful to deliver to, deposit into, or accept a regulated
substance into an underground storage tank at a facility which
has been identified by the Administrator or a State
implementing agency to be ineligible for fuel delivery or
deposit.
``(2) Guidance.--Within 1 year after the date of enactment
of this section, the Administrator and States that receive
funding under this subtitle shall, in consultation with the
underground storage tank owner and product delivery industries,
for territory for which they are the primary implementing
agencies, publish guidelines detailing the specific processes
and procedures they will use to implement the provisions of
this section. The processes and procedures include, at a
minimum--
``(A) the criteria for determining which
underground storage tank facilities are ineligible for
delivery or deposit;
``(B) the mechanisms for identifying which
facilities are ineligible for delivery or deposit to
the underground storage tank owning and fuel delivery
industries;
``(C) the process for reclassifying ineligible
facilities as eligible for delivery or deposit; and
``(D) a delineation of, or a process for
determining, the specified geographic areas subject to
paragraph (4).
``(3) Delivery prohibition notice.--
``(A) Roster.--The Administrator and each State
implementing agency that receives funding under this
subtitle shall establish within 24 months after the
date of enactment of this section a Delivery
Prohibition Roster listing underground storage tanks
under the Administrator's or the State's jurisdiction
that are determined to be ineligible for delivery or
deposit pursuant to paragraph (2).
``(B) Notification.--The Administrator and each
State, as appropriate, shall make readily known, to
underground storage tank owners and operators and to
product delivery industries, the underground storage
tanks listed on a Delivery Prohibition Roster by:
``(i) posting such Rosters, including the
physical location and street address of each
listed underground storage tank, on official
web sites and, if the Administrator or the
State so chooses, other electronic means;
``(ii) updating these Rosters periodically;
and
``(iii) installing a tamper-proof tag,
seal, or other device blocking the fill pipes
of such underground storage tanks to prevent
the delivery of product into such underground
storage tanks.
``(C) Roster updates.--The Administrator and the
State shall update the Delivery Prohibition Rosters as
appropriate, but not less than once a month on the
first day of the month.
``(D) Tampering with device.--
``(i) Prohibition.--It shall be unlawful
for any person, other than an authorized
representative of the Administrator or a State,
as appropriate, to remove, tamper with,
destroy, or damage a device installed by the
Administrator or a State, as appropriate, under
subparagraph (B)(iii) of this subsection.
``(ii) Civil penalties.--Any person
violating clause (i) of this subparagraph shall
be subject to a civil penalty not to exceed
$10,000 for each violation.
``(4) Limitation.--
``(A) Rural and remote areas.--Subject to
subparagraph (B), the Administrator or a State shall
not include an underground storage tank on a Delivery
Prohibition Roster under paragraph (3) if an urgent
threat to public health, as determined by the
Administrator, does not exist and if such a delivery
prohibition would jeopardize the availability of, or
access to, fuel in any rural and remote areas.
``(B) Applicability of limitation.--The limitation
under subparagraph (A) shall apply only during the 180-
day period following the date of a determination by the
Administrator or the appropriate State that exercising
the authority of paragraph (3) is limited by
subparagraph (A).
``(b) Effect on State Authority.--Nothing in this section shall
affect the authority of a State to prohibit the delivery of a regulated
substance to an underground storage tank.
``(c) Defense to Violation.--A person shall not be in violation of
subsection (a)(1) if the underground storage tank into which a
regulated substance is delivered is not listed on the Administrator's
or the appropriate State's Prohibited Delivery Roster 7 calendar days
prior to the delivery being made.''.
(b) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By adding the following new subparagraph after
subparagraph (D):
``(E) the delivery prohibition requirement established by
section 9012,''.
(2) By adding the following new sentence at the end
thereof: ``Any person making or accepting a delivery or deposit
of a regulated substance to an underground storage tank at an
ineligible facility in violation of section 9012 shall also be
subject to the same civil penalty for each day of such
violation.''.
(c) Table of Contents.--The table of contents for such subtitle I
is amended by adding the following new item at the end thereof:
``Sec. 9012. Delivery prohibition.''.
SEC. 1528. FEDERAL FACILITIES.
Section 9007 of the Solid Waste Disposal Act (42 U.S.C. 6991f) is
amended to read as follows:
``SEC. 9007. FEDERAL FACILITIES.
``(a) In General.--Each department, agency, and instrumentality of
the executive, legislative, and judicial branches of the Federal
Government (1) having jurisdiction over any underground storage tank or
underground storage tank system, or (2) engaged in any activity
resulting, or which may result, in the installation, operation,
management, or closure of any underground storage tank, release
response activities related thereto, or in the delivery, acceptance, or
deposit of any regulated substance to an underground storage tank or
underground storage tank system shall be subject to, and comply with,
all Federal, State, interstate, and local requirements, both
substantive and procedural (including any requirement for permits or
reporting or any provisions for injunctive relief and such sanctions as
may be imposed by a court to enforce such relief), respecting
underground storage tanks in the same manner, and to the same extent,
as any person is subject to such requirements, including the payment of
reasonable service charges. The Federal, State, interstate, and local
substantive and procedural requirements referred to in this subsection
include, but are not limited to, all administrative orders and all
civil and administrative penalties and fines, regardless of whether
such penalties or fines are punitive or coercive in nature or are
imposed for isolated, intermittent, or continuing violations. The
United States hereby expressly waives any immunity otherwise applicable
to the United States with respect to any such substantive or procedural
requirement (including, but not limited to, any injunctive relief,
administrative order or civil or administrative penalty or fine
referred to in the preceding sentence, or reasonable service charge).
The reasonable service charges referred to in this subsection include,
but are not limited to, fees or charges assessed in connection with the
processing and issuance of permits, renewal of permits, amendments to
permits, review of plans, studies, and other documents, and inspection
and monitoring of facilities, as well as any other nondiscriminatory
charges that are assessed in connection with a Federal, State,
interstate, or local underground storage tank regulatory program.
Neither the United States, nor any agent, employee, or officer thereof,
shall be immune or exempt from any process or sanction of any State or
Federal Court with respect to the enforcement of any such injunctive
relief. No agent, employee, or officer of the United States shall be
personally liable for any civil penalty under any Federal, State,
interstate, or local law concerning underground storage tanks with
respect to any act or omission within the scope of the official duties
of the agent, employee, or officer. An agent, employee, or officer of
the United States shall be subject to any criminal sanction (including,
but not limited to, any fine or imprisonment) under any Federal or
State law concerning underground storage tanks, but no department,
agency, or instrumentality of the executive, legislative, or judicial
branch of the Federal Government shall be subject to any such sanction.
The President may exempt any underground storage tank of any
department, agency, or instrumentality in the executive branch from
compliance with such a requirement if he determines it to be in the
paramount interest of the United States to do so. No such exemption
shall be granted due to lack of appropriation unless the President
shall have specifically requested such appropriation as a part of the
budgetary process and the Congress shall have failed to make available
such requested appropriation. Any exemption shall be for a period not
in excess of one year, but additional exemptions may be granted for
periods not to exceed one year upon the President's making a new
determination. The President shall report each January to the Congress
all exemptions from the requirements of this section granted during the
preceding calendar year, together with his reason for granting each
such exemption.
``(b) Review of and Report on Federal Underground Storage Tanks.--
``(1) Review.--Not later than 12 months after the date of
enactment of the Underground Storage Tank Compliance Act of
2005, each Federal agency that owns or operates 1 or more
underground storage tanks, or that manages land on which 1 or
more underground storage tanks are located, shall submit to the
Administrator, the Committee on Energy and Commerce of the
United States House of Representatives, and the Committee on
the Environment and Public Works of the United States Senate a
compliance strategy report that--
``(A) lists the location and owner of each
underground storage tank described in this paragraph;
``(B) lists all tanks that are not in compliance
with this subtitle that are owned or operated by the
Federal agency;
``(C) specifies the date of the last inspection by
a State or Federal inspector of each underground
storage tank owned or operated by the agency;
``(D) lists each violation of this subtitle
respecting any underground storage tank owned or
operated by the agency;
``(E) describes the operator training that has been
provided to the operator and other persons having
primary daily on-site management responsibility for the
operation and maintenance of underground storage tanks
owned or operated by the agency; and
``(F) describes the actions that have been and will
be taken to ensure compliance for each underground
storage tank identified under subparagraph (B).
``(2) Not a safe harbor.--This subsection does not relieve
any person from any obligation or requirement under this
subtitle.''.
SEC. 1529. TANKS ON TRIBAL LANDS.
(a) In General.--Subtitle I of the Solid Waste Disposal Act (42
U.S.C. 6991 et seq.) is amended by adding the following at the end
thereof:
``SEC. 9013. TANKS ON TRIBAL LANDS.
``(a) Strategy.--The Administrator, in coordination with Indian
tribes, shall, not later than 1 year after the date of enactment of
this section, develop and implement a strategy--
``(1) giving priority to releases that present the greatest
threat to human health or the environment, to take necessary
corrective action in response to releases from leaking
underground storage tanks located wholly within the boundaries
of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction of an
Indian tribe; and
``(2) to implement and enforce requirements concerning
underground storage tanks located wholly within the boundaries
of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction of an
Indian tribe.
``(b) Report.--Not later than 2 years after the date of enactment
of this section, the Administrator shall submit to Congress a report
that summarizes the status of implementation and enforcement of this
subtitle in areas located wholly within--
``(1) the boundaries of Indian reservations; and
``(2) any other areas under the jurisdiction of an Indian
tribe.
The Administrator shall make the report under this subsection available
to the public.
``(c) Not a Safe Harbor.--This section does not relieve any person
from any obligation or requirement under this subtitle.
``(d) State Authority.--Nothing in this section applies to any
underground storage tank that is located in an area under the
jurisdiction of a State, or that is subject to regulation by a State,
as of the date of enactment of this section.''.
(b) Table of Contents.--The table of contents for such subtitle I
is amended by adding the following new item at the end thereof:
``Sec. 9013. Tanks on Tribal lands.''.
SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUNDWATER.
(a) In General.--Section 9003 of the Solid Waste Disposal Act (42
U.S.C. 6991b) is amended by adding the following new subsection at the
end:
``(i) Additional Measures to Protect Groundwater From
Contamination.--The Administrator shall require each State that
receives funding under this subtitle to require one of the following:
``(1) Tank and piping secondary containment.--(A) Each new
underground storage tank, or piping connected to any such new
tank, installed after the effective date of this subsection, or
any existing underground storage tank, or existing piping
connected to such existing tank, that is replaced after the
effective date of this subsection, shall be secondarily
contained and monitored for leaks if the new or replaced
underground storage tank or piping is within 1,000 feet of any
existing community water system or any existing potable
drinking water well.
``(B) In the case of a new underground storage tank system
consisting of one or more underground storage tanks and
connected by piping, subparagraph (A) shall apply to all
underground storage tanks and connected pipes comprising such
system.
``(C) In the case of a replacement of an existing
underground storage tank or existing piping connected to the
underground storage tank, subparagraph (A) shall apply only to
the specific underground storage tank or piping being replaced,
not to other underground storage tanks and connected pipes
comprising such system.
``(D) Each installation of a new motor fuel dispenser
system, after the effective date of this subsection, shall
include under-dispenser spill containment if the new dispenser
is within 1,000 feet of any existing community water system or
any existing potable drinking water well.
``(E) This paragraph shall not apply to repairs to an
underground storage tank, piping, or dispenser that are meant
to restore a tank, pipe, or dispenser to operating condition
``(F) As used in this subsection:
``(i) The term `secondarily contained' means a
release detection and prevention system that meets the
requirements of 40 CFR 280.43(g), but shall not include
under-dispenser spill containment or control systems.
``(ii) The term `underground storage tank' has the
meaning given to it in section 9001, except that such
term does not include tank combinations or more than a
single underground pipe connected to a tank.
``(iii) The term `installation of a new motor fuel
dispenser system' means the installation of a new motor
fuel dispenser and the equipment necessary to connect
the dispenser to the underground storage tank system,
but does not mean the installation of a motor fuel
dispenser installed separately from the equipment need
to connect the dispenser to the underground storage
tank system.
``(G) The Administrator may issue regulations or guidelines
implementing the requirements of this subsection.
``(2) Evidence of financial responsibility and
certification.--
``(A) Manufacturer and installer financial
responsibility.--A person that manufactures an
underground storage tank or piping for an underground
storage tank system or that installs an underground
storage tank system is required to maintain evidence of
financial responsibility under section 9003(d) in order
to provide for the costs of corrective actions directly
related to releases caused by improper manufacture or
installation unless the person can demonstrate
themselves to be already covered as an owner or
operator of an underground storage tank under section
9003.
``(B) Installer certification.--The Administrator
and each State that receives funding under this
subtitle, as appropriate, shall require that a person
that installs an underground storage tank system is--
``(i) certified or licensed by the tank and
piping manufacturer;
``(ii) certified or licensed by the
Administrator or a State, as appropriate;
``(iii) has their underground storage tank
system installation certified by a registered
professional engineer with education and
experience in underground storage tank system
installation;
``(iv) has had their installation of the
underground storage tank inspected and approved
by the Administrator or the State, as
appropriate;
``(v) compliant with a code of practice
developed by a nationally recognized
association of independent testing laboratory
and in accordance with the manufacturers
instructions; or
``(vi) compliant with another method that
is determined by the Administrator or a State,
as appropriate, to be no less protective of
human health and the environment.''.
(b) Effective Date.--This subsection shall take effect 18 months
after the date of enactment of this subsection
(c) Promulgation of Regulations or Guidelines.--The Administrator
shall issue regulations or guidelines implementing the requirements of
this subsection, including guidance to differentiate between the terms
``repair'' and ``replace'' for the purposes of section 9003(i)(1) of
the Solid Waste Disposal Act.
(d) Penalties.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By striking ``or'' at the end of subparagraph (B).
(2) By inserting ``; or'' at the end of subparagraph (C).
(3) By adding the following new subparagraph after
subparagraph (C):
``(D) the requirements establishd in section
9003(i),''.
SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Subtitle I of the Solid Waste Disposal Act (42
U.S.C. 6991 et seq.) is amended by adding at the end the following:
``SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Administrator the
following amounts:
``(1) To carry out subtitle I (except sections 9003(h),
9005(c), 9011 and 9012) $50,000,000 for each of fiscal years
2005 through 2009.
``(2) From the Trust Fund, notwithstanding section
9508(c)(1) of the Internal Revenue Code of 1986:
``(A) to carry out section 9003(h) (except section
9003(h)(12)) $200,000,000 for each of fiscal years 2005
through 2009;
``(B) to carry out section 9003(h)(12),
$200,000,000 for each of fiscal years 2005 through
2009;
``(C) to carry out sections 9004(f) and 9005(c)
$100,000,000 for each of fiscal years 2005 through
2009; and
``(D) to carry out sections 9011 and 9012
$55,000,000 for each of fiscal years 2005 through
2009.''.
(b) Table of Contents.--The table of contents for such subtitle I
is amended by adding the following new item at the end thereof:
``Sec. 9014. Authorization of appropriations.''.
SEC. 1532. CONFORMING AMENDMENTS.
(a) In General.--Section 9001 of the Solid Waste Disposal Act (42
U.S.C. 6991) is amended as follows:
(1) By striking ``For the purposes of this subtitle--'' and
inserting ``In this subtitle:''.
(2) By redesignating paragraphs (1), (2), (3), (4), (5),
(6), (7), and (8) as paragraphs (10), (7), (4), (3), (8), (5),
(2), and (6), respectively.
(3) By inserting before paragraph (2) (as redesignated by
paragraph (2) of this subsection) the following:
``(1) Indian tribe.--
``(A) In general.--The term `Indian tribe' means
any Indian tribe, band, nation, or other organized
group or community that is recognized as being eligible
for special programs and services provided by the
United States to Indians because of their status as
Indians.
``(B) Inclusions.--The term `Indian tribe' includes
an Alaska Native village, as defined in or established
under the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.); and''.
(4) By inserting after paragraph (8) (as redesignated by
paragraph (2) of this subsection) the following:
``(9) Trust fund.--The term `Trust Fund' means the Leaking
Underground Storage Tank Trust Fund established by section 9508
of the Internal Revenue Code of 1986.''.
(b) Conforming Amendments.--The Solid Waste Disposal Act (42 U.S.C.
6901 and following) is amended as follows:
(1) Section 9003(f) (42 U.S.C. 6991b(f)) is amended--
(A) in paragraph (1), by striking ``9001(2)(B)''
and inserting ``9001(7)(B)''; and
(B) in paragraphs (2) and (3), by striking
``9001(2)(A)'' each place it appears and inserting
``9001(7)(A)''.
(2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended in
paragraphs (1), (2)(C), (7)(A), and (11) by striking ``Leaking
Underground Storage Tank Trust Fund'' each place it appears and
inserting ``Trust Fund''.
(3) Section 9009 (42 U.S.C. 6991h) is amended--
(A) in subsection (a), by striking ``9001(2)(B)''
and inserting ``9001(7)(B)''; and
(B) in subsection (d), by striking ``section
9001(1) (A) and (B)'' and inserting ``subparagraphs (A)
and (B) of section 9001(10)''.
SEC. 1533. TECHNICAL AMENDMENTS.
The Solid Waste Disposal Act is amended as follows:
(1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is amended by
striking ``sustances'' and inserting ``substances''.
(2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is amended
by striking ``subsection (c) and (d) of this section'' and
inserting ``subsections (c) and (d)''.
(3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended by
striking ``in 9001(2) (A) or (B) or both'' and inserting ``in
subparagraph (A) or (B) of section 9001(7)''.
(4) Section 9005 (42 U.S.C. 6991d) is amended--
(A) in subsection (a), by striking ``study taking''
and inserting ``study, taking'';
(B) in subsection (b)(1), by striking ``relevent''
and inserting ``relevant''; and
(C) in subsection (b)(4), by striking
``Evironmental'' and inserting ``Environmental''.
Subtitle C--Boutique Fuels
SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.
(a) Temporary Waivers During Supply Emergencies.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended
by inserting ``(i)'' after ``(C)'' and by adding the following new
clauses at the end thereof:
``(ii) The Administrator may temporarily waive a control or
prohibition respecting the use of a fuel or fuel additive required or
regulated by the Administrator pursuant to subsection (c), (h), (i),
(k), or (m) of this section or prescribed in an applicable
implementation plan under section 110 approved by the Administrator
under clause (i) of this subparagraph if, after consultation with, and
concurrence by, the Secretary of Energy, the Administrator determines
that--
``(I) extreme and unusual fuel or fuel additive supply
circumstances exist in a State or region of the Nation which
prevent the distribution of an adequate supply of the fuel or
fuel additive to consumers;
``(II) such extreme and unusual fuel and fuel additive
supply circumstances are the result of a natural disaster, an
Act of God, a pipeline or refinery equipment failure, or
another event that could not reasonably have been foreseen or
prevented and not the lack of prudent planning on the part of
the suppliers of the fuel or fuel additive to such State or
region; and
``(III) it is in the public interest to grant the waiver
(for example, when a waiver is necessary to meet projected
temporary shortfalls in the supply of the fuel or fuel additive
in a State or region of the Nation which cannot otherwise be
compensated for).
``(iii) If the Administrator makes the determinations required
under clause (ii), such a temporary extreme and unusual fuel and fuel
additive supply circumstances waiver shall be permitted only if--
``(I) the waiver applies to the smallest geographic area
necessary to address the extreme and unusual fuel and fuel
additive supply circumstances;
``(II) the waiver is effective for a period of 20 calendar
days or, if the Administrator determines that a shorter waiver
period is adequate, for the shortest practicable time period
necessary to permit the correction of the extreme and unusual
fuel and fuel additive supply circumstances and to mitigate
impact on air quality;
``(III) the waiver permits a transitional period, the exact
duration of which shall be determined by the Administrator,
after the termination of the temporary waiver to permit
wholesalers and retailers to blend down their wholesale and
retail inventory;
``(IV) the waiver applies to all persons in the motor fuel
distribution system; and
``(V) the Administrator has given public notice to all
parties in the motor fuel distribution system, and local and
State regulators, in the State or region to be covered by the
waiver.
The term `motor fuel distribution system' as used in this clause shall
be defined by the Administrator through rulemaking.
``(iv) Within 180 days of the date of enactment of this clause, the
Administrator shall promulgate regulations to implement clauses (ii)
and (iii).
``(v) Nothing in this subparagraph shall--
``(I) limit or otherwise affect the application of any
other waiver authority of the Administrator pursuant to this
section or pursuant to a regulation promulgated pursuant to
this section; and
``(II) subject any State or person to an enforcement
action, penalties, or liability solely arising from actions
taken pursuant to the issuance of a waiver under this
subparagraph.''.
(b) Limit on Number of Boutique Fuels.--Section 211(c)(4)(C) of the
Clean Air Act (42 U.S.C. 7545(c)(4)), as amended by subsection (a), is
further amended by adding at the end the following:
``(v)(I) The Administrator shall have no authority, when
considering a State implementation plan or a State implementation plan
revision, to approve under this paragraph any fuel included in such
plan or revision if the effect of such approval increases the total
number of fuels approved under this paragraph as of September 1, 2004,
in all State implementation plans.
``(II) The Administrator, in consultation with the Secretary of
Energy, shall determine the total number of fuels approved under this
paragraph as of September 1, 2004, in all State implementation plans
and shall publish a list of such fuels, including the states and
Petroleum Administration for Defense District in which they are used,
in the Federal Register for public review and comment no later than 90
days after enactment.
``(III) The Administrator shall remove a fuel from the list
published under subclause (II) if a fuel ceases to be included in a
State implementation plan or if a fuel in a State implementation plan
is identical to a Federal fuel formulation implemented by the
Administrator, but the Administrator shall not reduce the total number
of fuels authorized under the list published under subclause (II).
``(IV) Subclause (I) shall not limit the Administrator's authority
to approve a control or prohibition respecting any new fuel under this
paragraph in a State implementation plan or revision to a State
implementation plan if such new fuel:
``(aa) completely replaces a fuel on the list published
under subclause (II); or
``(bb) does not increase the total number of fuels on the
list published under subclause (II) as of September 1, 2004.
In the event that the total number of fuels on the list published under
subclause (II) at the time of the Administrator's consideration of a
control or prohibition respecting a new fuel is lower than the total
number of fuels on such list as of September 1, 2004, the Administrator
may approve a control or prohibition respecting a new fuel under this
subclause if the Administrator, after consultation with the Secretary
of Energy, publishes in the Federal Register after notice and comment a
finding that, in the Administrator's judgment, such control or
prohibition respecting a new fuel will not cause fuel supply or
distribution interruptions or have a significant adverse impact on fuel
producibility in the affected area or contiguous areas.
``(V) The Administrator shall have no authority under this
paragraph, when considering any particular State's implementation plan
or a revision to that State's implementation plan, to approve any fuel
unless that fuel was, as of the date of such consideration, approved in
at least one State implementation plan in the applicable Petroleum
Administration for Defense District. However, the Administrator may
approve as part of a State implementation plan or State implementation
plan revision a fuel with a summertime Reid Vapor Pressure of 7.0 psi.
In no event shall such approval by the Administrator cause an increase
in the total number of fuels on the list published under subclause
(II).
``(VI) Nothing in this clause shall be construed to have any effect
regarding any available authority of States to require the use of any
fuel additive registered in accordance with subsection (b), including
any fuel additive registered in accordance with subsection (b) after
the enactment of this subclause.''.
(c) Study and Report to Congress on Boutique Fuels.--
(1) Joint study.--The Administrator of the Environmental
Protection Agency and the Secretary of Energy shall undertake a
study of the effects on air quality, on the number of fuel
blends, on fuel availability, on fuel fungibility, and on fuel
costs of the State plan provisions adopted pursuant to section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)).
(2) Focus of study.--The primary focus of the study
required under paragraph (1) shall be to determine how to
develop a Federal fuels system that maximizes motor fuel
fungibility and supply, preserves air quality standards, and
reduces motor fuel price volatility that results from the
proliferation of boutique fuels, and to recommend to Congress
such legislative changes as are necessary to implement such a
system. The study should include the impacts on overall energy
supply, distribution, and use as a result of the legislative
changes recommended.
(3) Responsibility of administrator.--In carrying out the
study required by this section, the Administrator shall
coordinate obtaining comments from affected parties interested
in the air quality impact assessment portion of the study. The
Administrator shall use sound and objective science practices,
shall consider the best available science, and shall consider
and include a description of the weight of the scientific
evidence.
(4) Responsibility of secretary.--In carrying out the study
required by this section, the Secretary shall coordinate
obtaining comments from affected parties interested in the fuel
availability, number of fuel blends, fuel fungibility and fuel
costs portion of the study.
(5) Report to congress.--The Administrator and the
Secretary jointly shall submit the results of the study
required by this section in a report to the Congress not later
than 12 months after the date of the enactment of this Act,
together with any recommended regulatory and legislative
changes. Such report shall be submitted to the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Environment and Public Works of the Senate.
(6) Authorization of appropriations.--There is authorized
to be appropriated jointly to the Administrator and the
Secretary $500,000 for the completion of the study required
under this subsection.
(d) Definitions.--In this section:
(1) The term ``Administrator'' means the Administrator of
the Environmental Protection Agency.
(2) The term ``Secretary'' means the Secretary of Energy.
(3) The term ``fuel'' means gasoline, diesel fuel, and any
other liquid petroleum product commercially known as gasoline
and diesel fuel for use in highway and nonroad motor vehicles.
(4) The term ``a control or prohibition respecting a new
fuel'' means a control or prohibition on the formulation,
composition, or emissions characteristics of a fuel that would
require the increase or decrease of a constituent in gasoline
or diesel fuel.
TITLE XVI--STUDIES
SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.
(a) Definition.--For purposes of this section ``petroleum'' means
crude oil, motor gasoline, jet fuel, distillates, and propane.
(b) Study.--The Secretary of Energy shall conduct a study on
petroleum and natural gas storage capacity and operational inventory
levels, nationwide and by major geographical regions.
(c) Contents.--The study shall address--
(1) historical normal ranges for petroleum and natural gas
inventory levels;
(2) historical and projected storage capacity trends;
(3) estimated operation inventory levels below which
outages, delivery slowdown, rationing, interruptions in
service, or other indicators of shortage begin to appear;
(4) explanations for inventory levels dropping below normal
ranges; and
(5) the ability of industry to meet United States demand
for petroleum and natural gas without shortages or price
spikes, when inventory levels are below normal ranges.
(d) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy shall submit a report to
Congress on the results of the study, including findings and any
recommendations for preventing future supply shortages.
SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS.
The Secretary of Energy shall contract with the National Academy of
Sciences for a study, to be completed within 1 year after the date of
enactment of this Act, to examine whether the goals of energy
efficiency standards are best served by measurement of energy consumed,
and efficiency improvements, at the actual site of energy consumption,
or through the full fuel cycle, beginning at the source of energy
production. The Secretary shall submit the report to Congress.
SEC. 1606. TELECOMMUTING STUDY.
(a) Study Required.--The Secretary, in consultation with the
Commission, the Director of the Office of Personnel Management, the
Administrator of General Services, and the Administrator of NTIA, shall
conduct a study of the energy conservation implications of the
widespread adoption of telecommuting by Federal employees in the United
States.
(b) Required Subjects of Study.--The study required by subsection
(a) shall analyze the following subjects in relation to the energy
saving potential of telecommuting by Federal employees:
(1) Reductions of energy use and energy costs in commuting
and regular office heating, cooling, and other operations.
(2) Other energy reductions accomplished by telecommuting.
(3) Existing regulatory barriers that hamper telecommuting,
including barriers to broadband telecommunications services
deployment.
(4) Collateral benefits to the environment, family life,
and other values.
(c) Report Required.--The Secretary shall submit to the President
and Congress a report on the study required by this section not later
than 6 months after the date of enactment of this Act. Such report
shall include a description of the results of the analysis of each of
the subject described in subsection (b).
(d) Definitions.--As used in this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration of the
Department of Commerce.
(4) Telecommuting.--The term ``telecommuting'' means the
performance of work functions using communications
technologies, thereby eliminating or substantially reducing the
need to commute to and from traditional worksites.
(5) Federal employee.--The term ``Federal employee'' has
the meaning provided the term ``employee'' by section 2105 of
title 5, United States Code.
SEC. 1607. LIHEAP REPORT.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Health and Human Services shall transmit to Congress a
report on how the Low-Income Home Energy Assistance Program could be
used more effectively to prevent loss of life from extreme
temperatures. In preparing such report, the Secretary shall consult
with appropriate officials in all 50 States and the District of
Columbia.
SEC. 1608. OIL BYPASS FILTRATION TECHNOLOGY.
The Secretary of Energy and the Administrator of the Environmental
Protection Agency shall--
(1) conduct a joint study of the benefits of oil bypass
filtration technology in reducing demand for oil and protecting
the environment;
(2) examine the feasibility of using oil bypass filtration
technology in Federal motor vehicle fleets; and
(3) include in such study, prior to any determination of
the feasibility of using oil bypass filtration technology, the
evaluation of products and various manufacturers.
SEC. 1609. TOTAL INTEGRATED THERMAL SYSTEMS.
The Secretary of Energy shall--
(1) conduct a study of the benefits of total integrated
thermal systems in reducing demand for oil and protecting the
environment; and
(2) examine the feasibility of using total integrated
thermal systems in Department of Defense and other Federal
motor vehicle fleets.
SEC. 1610. UNIVERSITY COLLABORATION.
Not later than 2 years after the date of enactment of this Act, the
Secretary of Energy shall transmit to Congress a report that examines
the feasibility of promoting collaborations between large institutions
of higher education and small institutions of higher education through
grants, contracts, and cooperative agreements made by the Secretary for
energy projects. The Secretary shall also consider providing incentives
for the inclusion of small institutions of higher education, including
minority-serving institutions, in energy research grants, contracts,
and cooperative agreements.
SEC. 1611. RELIABILITY AND CONSUMER PROTECTION ASSESSMENT.
Not later than 5 years after the date of enactment of this Act, and
each 5 years thereafter, the Federal Energy Regulatory Commission shall
assess the effects of the exemption of electric cooperatives and
government-owned utilities from Commission regulation under section
201(f) of the Federal Power Act. The assessment shall include any
effects on--
(1) reliability of interstate electric transmission
networks;
(2) benefit to consumers, and efficiency, of competitive
wholesale electricity markets;
(3) just and reasonable rates for electricity consumers;
and
(4) the ability of the Commission to protect electricity
consumers.
If the Commission finds that the 201(f) exemption results in adverse
effects on consumers or electric reliability, the Commission shall make
appropriate recommendations to Congress pursuant to section 311 of the
Federal Power Act.
SEC. 1612. REPORT ON ENERGY INTEGRATION WITH LATIN AMERICA.
The Secretary of Energy shall submit an annual report to the
Committee on Energy and Commerce of the United States House of
Representatives and to the Committee on Energy and Natural Resources of
the United States Senate concerning the status of energy export
development in Latin America and efforts by the Secretary and other
departments and agencies of the United States to promote energy
integration with Latin America. The report shall contain a detailed
analysis of the status of energy export development in Mexico and a
description of all significant efforts by the Secretary and other
departments and agencies to promote a constructive relationship with
Mexico regarding the development of that nation's energy capacity. In
particular this report shall outline efforts the Secretary and other
departments and agencies have made to ensure that regulatory approval
and oversight of United States/Mexico border projects that result in
the expansion of Mexican energy capacity are effectively coordinated
across departments and with the Mexican government.
SEC. 1613. LOW-VOLUME GAS RESERVOIR STUDY.
(a) Study.--The Secretary of Energy shall make a grant to an
organization of oil and gas producing States, specifically those
containing significant numbers of marginal oil and natural gas wells,
for conducting an annual study of low-volume natural gas reservoirs.
Such organization shall work with the State geologist of each State
being studied.
(b) Contents.--The studies under this section shall--
(1) determine the status and location of marginal wells and
gas reservoirs;
(2) gather the production information of these marginal
wells and reservoirs;
(3) estimate the remaining producible reserves based on
variable pipeline pressures;
(4) locate low-pressure gathering facilities and pipelines;
(5) recommend incentives which will enable the continued
production of these resources;
(6) produce maps and literature to disseminate to States to
promote conservation of natural gas reserves; and
(7) evaluate the amount of natural gas that is being wasted
through the practice of venting or flaring of natural gas
produced in association with crude oil well production.
(c) Data Analysis.--Data development and analysis under this
section shall be performed by an institution of higher education with
GIS capabilities. If the organization receiving the grant under
subsection (a) does not have GIS capabilities, such organization shall
contract with one or more entities with--
(1) technological capabilities and resources to perform
advanced image processing, GIS programming, and data analysis;
and
(2) the ability to--
(A) process remotely sensed imagery with high
spatial resolution;
(B) deploy global positioning systems;
(C) process and synthesize existing, variable-
format gas well, pipeline, gathering facility, and
reservoir data;
(D) create and query GIS databases with
infrastructure location and attribute information;
(E) write computer programs to customize relevant
GIS software;
(F) generate maps, charts, and graphs which
summarize findings from data research for presentation
to different audiences; and
(G) deliver data in a variety of formats, including
Internet Map Server for query and display, desktop
computer display, and access through handheld personal
digital assistants.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section--
(1) $1,500,000 for fiscal year 2006; and
(2) $450,000 for each of the fiscal years 2007 through
2010.
(e) Definitions.--For purposes of this section, the term ``GIS''
means geographic information systems technology that facilitates the
organization and management of data with a geographic component.
<all>
Referred to the Subcommittee on Energy and Mineral Resources.
Referred to the Subcommittee on Water and Power.
Referred to the Subcommittee on Fisheries and Oceans.
Referred to the Subcommittee on Energy.
Referred to the Subcommittee on Housing and Community Opportunity.
Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 109-215, Part I.
Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 109-215, Part I.
Committee on Transportation discharged.
Committee on Education and the Workforce discharged.
Committee on Resources discharged.
Committee on Science discharged.
Committee on Transportation discharged.
Committee on Education and the Workforce discharged.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Committee on Resources discharged.
Committee on Science discharged.
Committee on Agriculture discharged.
Committee on Financial Services discharged.
Committee on Agriculture discharged.
Committee on Financial Services discharged.
Placed on the Union Calendar, Calendar No. 122.