< Back to H.R. 2587 (107th Congress, 2001–2002)

Text of the Energy Advancement and Conservation Act of 2001

This bill was introduced on July 25, 2001, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jul 23, 2001 (Introduced).

This is not the latest text of this bill.

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HR 2587 IH

107th CONGRESS

1st Session

H. R. 2587

To enhance energy conservation, provide for security and diversity in the energy supply for the American people, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

July 23, 2001

Mr. TAUZIN (for himself and Mr. BARTON of Texas) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Science, Transportation and Infrastructure, the Budget, and Education and the Workforce, 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 enhance energy conservation, provide for security and diversity in the energy supply for the American people, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Energy Advancement and Conservation Act of 2001’.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title and table of contents.

TITLE I--ENERGY CONSERVATION

Subtitle A--Reauthorization of Federal Energy Conservation Programs

      Sec. 101. Authorization of appropriations.

Subtitle B--Federal Leadership in Energy Conservation

      Sec. 121. Federal facilities and national energy security.

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

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

      Sec. 124. Federal central air conditioner and heat pump efficiency.

      Sec. 125. Federal Energy Bank.

      Sec. 126. Advanced building efficiency testbed.

      Sec. 127. Use of interval data in Federal buildings.

      Sec. 128. Review of Energy Savings Performance Contract Program.

      Sec. 129. Capitol complex.

Subtitle C--State Programs

      Sec. 131. Amendments to State energy programs.

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

      Sec. 133. Amendments to Weatherization Assistance Program.

      Sec. 134. LIHEAP.

      Sec. 135. High performance public buildings.

Subtitle D--Energy Efficiency for Consumer Products

      Sec. 141. Energy Star program.

      Sec. 142. Labeling of energy efficient appliances.

      Sec. 143. Appliance standards.

Subtitle E--Energy Efficient Vehicles

      Sec. 151. High occupancy vehicle exception.

      Sec. 152. Railroad efficiency.

      Sec. 153. Biodiesel fuel use credits.

      Sec. 154. Mobile to stationary source trading.

Subtitle F--Other Provisions

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

      Sec. 162. Advanced idle elimination systems.

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

      Sec. 164. Gas flare study.

      Sec. 165. Telecommuting study.

TITLE II--AUTOMOBILE FUEL ECONOMY

      Sec. 201. Average fuel economy standards for nonpassenger automobiles.

      Sec. 202. Consideration of prescribing different average fuel economy standards for nonpassenger automobiles.

      Sec. 203. Dual fueled automobiles.

      Sec. 204. Fuel economy of the Federal fleet of automobiles.

      Sec. 205. Hybrid vehicles and alternative vehicles.

      Sec. 206. Federal fleet petroleum-based nonalternative fuels.

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

TITLE III--NUCLEAR ENERGY

Subtitle A--General Provisions

      Sec. 301. Budget status of Nuclear Waste Fund.

      Sec. 302. License period.

      Sec. 303. Cost recovery from Government agencies.

      Sec. 304. Depleted uranium hexafluoride.

      Sec. 305. Nuclear Regulatory Commission meetings.

Subtitle B--Domestic Uranium Fuel Cycle

      Sec. 311. Portsmouth cold standby.

      Sec. 312. Paducah funding.

      Sec. 313. Research and development.

      Sec. 314. Short-term reliability of domestic uranium enrichment capacity.

      Sec. 315. Cooperative research and development and special demonstration projects for the uranium mining industry.

      Sec. 316. Maintenance of a viable domestic uranium conversion industry.

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

      Sec. 318. Paducah decontamination and decommissioning plan.

TITLE IV--HYDROELECTRIC ENERGY

      Sec. 401. Alternative conditions and fishways.

      Sec. 402. FERC data on hydroelectric licensing.

TITLE V--CLEAN COAL

      Sec. 501. Short title.

      Sec. 502. Findings.

Subtitle A--Accelerated Clean Coal Power Production Program

      Sec. 511. Definitions.

      Sec. 512. Cost and performance goals.

      Sec. 513. Study.

      Sec. 514. Production and generation of coal-based power.

      Sec. 515. Authorization of appropriations.

      Sec. 516. Clean coal power initiative.

      Sec. 517. Financial assistance.

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

      Sec. 521. Credit for investment in qualifying clean coal technology.

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

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

      Sec. 531. Credit for investment in qualifying advanced clean coal technology.

      Sec. 532. Credit for production from qualifying advanced clean coal technology.

      Sec. 533. Risk pool for qualifying advanced clean coal technology.

Subtitle D--Treatment of Certain Governmental and Other Entities

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

TITLE VI--FUELS

      Sec. 601. Tank draining during transition to summertime RFG.

      Sec. 602. Gasoline blendstock requirements.

      Sec. 603. Boutique fuels.

      Sec. 604. Funding for MTBE contamination.

TITLE VII--RENEWABLE ENERGY

      Sec. 701. Assessment of renewable energy resources.

      Sec. 702. Renewable energy production incentive.

TITLE VIII--PIPELINE INTEGRITY

Subtitle A--Pipeline Integrity

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

      Sec. 802. Pipeline Integrity Technical Advisory Committee.

      Sec. 803. Authorization of appropriations.

Subtitle B-Other Pipeline Provisions

      Sec. 811. Prohibition on certain pipeline route.

      Sec. 812. Historic pipelines.

TITLE IX--MISCELLANEOUS PROVISIONS

      Sec. 901. Waste reduction and use of alternatives.

      Sec. 902. Annual report on United States energy independence.

      Sec. 903. Study of aircraft emissions.

TITLE I--ENERGY CONSERVATION

Subtitle A--Reauthorization of Federal Energy Conservation Programs

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Section 660 of the Department of Energy Organization Act (42 U.S.C. 7270) is amended as follows:

      (1) By inserting ‘(a)’ before ‘Appropriations’.

      (2) By inserting at the end the following new subsection:

    ‘(b) There are hereby authorized to be appropriated to the Department of Energy for fiscal year 2002, $950,000,000; for fiscal year 2003, $1,000,000,000; for fiscal year 2004, $1,050,000,000; for fiscal year 2005, $1,100,000,000; and for fiscal year 2006, $1,150,000,000, to carry out energy efficiency activities under the following laws, such sums to remain available until expended:

      ‘(1) Energy Policy and Conservation Act, including section 256(d)(42 U.S.C. 6276(d)) (promote export of energy efficient products), sections 321 through 346 (42 U.S.C. 6291-6317) (appliances program).

      ‘(2) Energy Conservation and Production Act, including sections 301 through 308 (42 U.S.C. 6831-6837) (energy conservation standards for new buildings).

      ‘(3) National Energy Conservation Policy Act, including sections 541-551 (42 U.S.C. 8251-8259) (Federal Energy Management Program).

      ‘(4) Energy Policy Act of 1992, including sections 103 (42 U.S.C. 13458) (energy efficient lighting and building centers), 121 (42 U.S.C. 6292 note) (energy efficiency labeling for windows and window systems), 125 (42 U.S.C. 6292 note) (energy efficiency information for commercial office equipment), 126 (42 U.S.C. 6292 note) (energy efficiency information for luminaires), 131 (42 U.S.C. 6348) (energy efficiency in industrial facilities), and 132 (42 U.S.C. 6349) (process-oriented industrial energy efficiency).’.

Subtitle B--Federal Leadership in Energy Conservation

SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.

    (a) PURPOSE- Section 542 of the National Energy Conservation Policy Act (42 U.S.C. 8252) is amended by inserting ‘, and generally to promote the production, supply, and marketing of energy efficiency products and services and the production, supply, and marketing of unconventional and renewable energy resources’ after ‘by the Federal Government’.

    (b) ENERGY MANAGEMENT REQUIREMENTS- Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended as follows:

      (1) In subsection (a)(1), by striking ‘during the fiscal year 1995’ and all that follows through the end and inserting ‘during--

    ‘(1) fiscal year 1995 is at least 10 percent;

    ‘(2) fiscal year 2000 is at least 20 percent;

    ‘(3) fiscal year 2005 is at least 30 percent;

    ‘(4) fiscal year 2010 is at least 35 percent;

    ‘(5) fiscal year 2015 is at least 40 percent; and

    ‘(6) fiscal year 2020 is at least 45 percent,

    less than the energy consumption per gross square foot of its Federal buildings in use during fiscal year 1985. To achieve the reductions required by this paragraph, an agency shall make maximum practicable use of energy efficiency products and services and unconventional and renewable energy resources, using guidelines issued by the Secretary under subsection (d) of this section.’.

      (2) In subsection (d), by inserting ‘Such guidelines shall include appropriate model technical standards for energy efficiency and unconventional and renewable energy resources products and services. Such standards shall reflect, to the extent practicable, evaluation of both currently marketed and potentially marketable products and services that could be used by agencies to improve energy efficiency and increase unconventional and renewable energy resources.’ after ‘implementation of this part.’.

      (3) By adding at the end the following new subsection:

    ‘(e) STUDIES- To assist in developing the guidelines issued by the Secretary under subsection (d) and in furtherance of the purposes of this section, the Secretary shall conduct studies to identify and encourage the production and marketing of energy efficiency products and services and unconventional and renewable energy resources. To conduct such studies, there are authorized to be appropriated to the Secretary $20,000,000 for each of the fiscal years 2003 through 2010.’.

    (c) DEFINITION- Section 551 of the National Energy Conservation Policy Act (42 U.S.C. 8259) is amended as follows:

      (1) By striking ‘and’ at the end of paragraph (8).

      (2) By striking the period at the end of paragraph (9) and inserting ‘; and’.

      (3) By adding at the end the following new paragraph:

      ‘(10) the term ‘unconventional and renewable energy resources’ includes renewable energy sources, hydrogen, fuel cells, cogeneration, combined heat and power, heat recovery (including by use of a Stirling heat engine), and distributed generation.’.

    (d) EXCLUSIONS FROM REQUIREMENT- The National Energy Conservation Policy Act (42 U.S.C. 7201 and following) is amended as follows:

      (1) In section 543(a)--

        (A) by striking ‘(1) Subject to paragraph (2)’ and inserting ‘Subject to subsection (c)’; and

        (B) by striking ‘(2) An agency’ and all that follows through ‘such exclusion.’.

      (2) By amending subsection (c) of such section 543 to read as follows:

    ‘(c) EXCLUSIONS- (1) A Federal building may be excluded from the requirements of subsections (a) and (b) only if--

      ‘(A) the President declares the building to require exclusion for national security reasons; and

      ‘(B) the agency responsible for the building has--

        ‘(i) completed and submitted all federally required energy management reports; and

        ‘(ii) achieved compliance with the energy efficiency requirements of this Act, the Energy Policy Act of 1992, Executive Orders, and other Federal law;

        ‘(iii) implemented all practical, life cycle cost-effective projects in the excluded building.

    ‘(2) The President shall only declare buildings described in paragraph (1)(A) to be excluded, not ancillary or nearby facilities that are not in themselves national security facilities.’.

      (3) In section 548(b)(1)(A)--

        (A) by striking ‘copy of the’; and

        (B) by striking ‘sections 543(a)(2) and 543(c)(3)’ and inserting ‘section 543(c)’.

    (e) ACQUISITION REQUIREMENT- Section 543(b) of such Act is amended--

      (1) in paragraph (1), by striking ‘(1) Not’ and inserting ‘(1) Except as provided in paragraph (5), not’; and

      (2) by adding at the end the following new paragraph:

    ‘(5)(A)(i) Agencies shall select only Energy Star products when available when acquiring energy-using products. For product groups where Energy Star labels are not yet available, agencies shall select products that are in the upper 25 percent of energy efficiency as designated by FEMP. The Secretary of Energy shall develop guidelines within 180 days after the enactment of this paragraph for exemptions to this section when equivalent products do not exist, are impractical, or do not meet the agency mission requirements.

    ‘(ii) The Administrator of the General Services Administration and the Secretary of Defense (acting through the Defense Logistics Agency), with assistance from the Administrator of the Environmental Protection Agency and the Secretary of Energy, shall create clear catalogue listings that designate Energy Star products in both print and electronic formats. After any existing federal inventories are exhausted, Administrator of the General Services Administration and the Secretary of Defense (acting through the Defense Logistics Agency) shall only replace inventories with energy-using products that are Energy Star, products that are rated in the top 25 percent of energy efficiency, or products that are exempted as designated by FEMP and defined in clause (i).

    ‘(iii) Agencies shall incorporate energy-efficient criteria consistent with Energy Star and other FEMP designated energy efficiency levels into all guide specifications and project specifications developed for new construction and renovation, as well as into product specification language developed for Basic Ordering Agreements, Blanket Purchasing Agreements, Government Wide Acquisition Contracts, and all other purchasing procedures.

    ‘(iv) The legislative branch shall be subject to this subparagraph to the same extent and in the same manner as are the Federal agencies referred to in section 521(1).

    ‘(B) Not later than 6 months after the date of the enactment of this paragraph, the Secretary of Energy shall establish guidelines defining the circumstances under which an agency shall not be required to comply with subparagraph (A). Such circumstances may include the absence of Energy Star products, systems, or designs that serve the purpose of the agency, issues relating to the compatibility of a product, system, or design with existing buildings or equipment, and excessive cost compared to other available and appropriate products, systems, or designs.

    ‘(C) Subparagraph (A) shall apply to agency acquisitions occurring on or after October 1, 2002.’.

    (f) METERING- Section 543 of such Act (42 U.S.C. 8254) is amended by adding at the end the following new subsection:

    ‘(f) METERING- (1) By October 1, 2004, all Federal buildings including buildings owned by the legislative branch and the Federal court system and other energy-using structures shall be metered or submetered in accordance with guidelines established by the Secretary under paragraph (2).

    ‘(2) Not later than 6 months after the date of the enactment of this subsection, the Secretary, in consultation with representatives from the metering industry, energy services industry, national laboratories, colleges of higher education, and federal facilities energy managers, shall establish guidelines for agencies to carry out paragraph (1). Such guidelines shall take into consideration each of the following:

      ‘(A) Cost.

      ‘(B) Resources, including personnel, required to maintain, interpret, and report on data so that the meters are continually reviewed.

      ‘(C) Energy management potential.

      ‘(D) Energy savings.

      ‘(E) Utility contract aggregation.

      ‘(F) Savings from operations and maintenance.

    ‘(3) Any building excluded under subsection (c) shall be individually metered or submetered as the Secretary determines necessary.’.

    (g) RETENTION OF ENERGY SAVINGS- Section 546 of such Act (42 U.S.C. 8256) is amended by adding at the end the following new subsection:

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

    (h) REPORTS- Section 548 of such Act (42 U.S.C. 8258) is amended as follows:

      (1) In subsection (a)--

        (A) by inserting ‘in accordance with guidelines established by and’ after ‘to the Secretary,’;

        (B) by striking ‘and’ at the end of paragraph (1);

        (C) by striking the period at the end of paragraph (2) and inserting a semicolon; and

        (D) by adding at the end the following new paragraphs:

      ‘(3) an energy emergency response plan developed by the agency;

      ‘(4) the quantity, and a description of, products, systems, and designs acquired by the agency that are not acquired as provided in section 543(b)(5)(A); and

      ‘(5) the percentage of the Agency’s capital expenditures that are used for energy efficiency and unconventional and renewable energy resources capital improvements.’.

      (2) In subsection (b)--

        (A) by striking ‘and’ at the end of paragraph (3);

        (B) by striking the period at the end of paragraph (4) and inserting ‘; and’; and

        (C) by adding at the end the following new paragraph:

      ‘(5) all information transmitted to the Secretary under subsection (a).’.

      (3) By amending subsection (c) to read as follows:

    ‘(c) AGENCY REPORTS TO CONGRESS- Each agency shall annually report to the Congress, as part of the agency’s annual budget request, on all of the agency’s activities implementing any Federal energy management requirement.’.

    (i) INSPECTOR GENERAL ENERGY AUDITS- Section 160(c) of the Energy Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by striking ‘is encouraged to conduct periodic’ and inserting ‘shall conduct periodic’.

    (j) FEDERAL ENERGY MANAGEMENT REVIEWS- Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at the end the following:

    ‘(g) PRIORITY RESPONSE REVIEWS- Each agency shall--

      ‘(1) not later than 9 months after the date of the enactment of this subsection, undertake a comprehensive review of all practicable measures for--

        ‘(A) increasing energy and water conservation, and

        ‘(B) using renewable energy sources; and

      ‘(2) not later than 180 days after completing the review, implement measures to achieve not less than 50 percent of the potential efficiency and renewable savings identified in the review.’.

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

    (a) COST SAVINGS FROM OPERATION AND MAINTENANCE EFFICIENCIES IN REPLACEMENT FACILITIES- Section 801(a) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the end the following new paragraph:

    ‘(3)(A) In the case of an energy savings contract or energy savings performance contract providing for energy savings through the construction and operation of one or more buildings or facilities to replace one or more existing buildings or facilities, benefits ancillary to the purpose of such contract under paragraph (1) may include savings resulting from reduced costs of operation and maintenance at such replacement buildings or facilities when compared with costs of operation and maintenance at the buildings or facilities being replaced, established through a methodology set forth in the contract.

    ‘(B) Notwithstanding paragraph (2)(B), aggregate annual payments by an agency under an energy savings contract or energy savings performance contract referred to in subparagraph (A) may take into account (through the procedures developed pursuant to this section) savings resulting from reduced costs of operation and maintenance as described in that subparagraph.’.

    (b) EXPANSION OF DEFINITION OF ENERGY SAVINGS TO INCLUDE WATER AND REPLACEMENT FACILITIES-

      (1) ENERGY SAVINGS- Section 804(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as follows:

      ‘(2)(A) The term ‘energy savings’ means a reduction in the cost of energy or water, from a base cost established through a methodology set forth in the contract, used in an existing federally owned building or buildings or other federally owned facilities as a result of--

        ‘(i) the lease or purchase of operating equipment, improvements, altered operation and maintenance, or technical services;

        ‘(ii) the increased efficient use of existing energy sources by solar and ground source geothermal resources, cogeneration or heat recovery (including by the use of a Stirling heat engine), excluding any cogeneration process for other than a federally owned building or buildings or other federally owned facilities; or

        ‘(iii) the increased efficient use of existing water sources.

      ‘(B) The term ‘energy savings’ also means, in the case of a replacement building or facility described in section 801(a)(3), a reduction in the cost of energy, from a base cost established through a methodology set forth in the contract, that would otherwise be utilized in one or more existing federally owned buildings or other federally owned facilities by reason of the construction and operation of the replacement building or facility.’.

      (2) ENERGY SAVINGS CONTRACT- Section 804(3) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as follows:

      ‘(3) The terms ‘energy savings contract’ and ‘energy savings performance contract’ mean a contract which provides for--

        ‘(A) the performance of services for the design, acquisition, installation, testing, operation, and, where appropriate, maintenance and repair, of an identified energy or water conservation measure or series of measures at one or more locations; or

        ‘(B) energy savings through the construction and operation of one or more buildings or facilities to replace one or more existing buildings or facilities.’.

      (3) ENERGY OR WATER CONSERVATION MEASURE- Section 804(4) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended to read as follows:

      ‘(4) The term ‘energy or water conservation measure’ means--

        ‘(A) an energy conservation measure, as defined in section 551(4) (42 U.S.C. 8259(4)); or

        ‘(B) a water conservation measure that improves water efficiency, is life cycle cost effective, and involves water conservation, water recycling or reuse, improvements in operation or maintenance efficiencies, retrofit activities, or other related activities, not at a Federal hydroelectric facility.’.

      (4) CONFORMING AMENDMENT- Section 801(a)(2)(C) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(C)) is amended by inserting ‘or water’ after ‘financing energy’.

    (c) EXTENSION OF AUTHORITY- Section 801(c) of the National Energy Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.

    (d) CONTRACTING AND AUDITING- Section 801(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by adding at the end the following new subparagraph:

    ‘(E) A Federal agency shall engage in contracting and auditing to implement energy savings performance contracts as necessary and appropriate to ensure compliance with the requirements of this Act, particularly the energy efficiency requirements of section 543.’.

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

    Section 546(c) of the National Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended as follows:

      (1) In paragraph (3) by adding at the end the following: ‘Such a utility incentive program may include a contract or contract term designed to provide for cost-effective electricity demand management, energy efficiency, or water conservation.’.

      (2) By adding at the end of the following new paragraphs:

    ‘(6) A utility incentive program may include a contract or contract term for a reduction in the energy, from a base cost established through a methodology set forth in such a contract, that would otherwise be utilized in one or more federally owned buildings or other federally owned facilities by reason of the construction or operation of one or more replacement buildings or facilities, as well as benefits ancillary to the purpose of such contract or contract term, including savings resulting from reduced costs of operation and maintenance at new or additional buildings or facilities when compared with the costs of operation and maintenance at existing buildings or facilities.

    ‘(7) Federal agencies are encouraged to participate in State or regional demand side reduction programs, including those operated by wholesale market institutions such as independent system operators, regional transmission organizations and other entities. The availability of such programs, and the savings resulting from such participation, should be included in the evaluation of energy options for Federal facilities.’.

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

    (a) REQUIREMENT- Federal agencies shall be required to acquire central air conditioners and heat pumps that meet or exceed the standards established under subsection (b) or (c) in the case of all central air conditioners and heat pumps acquired after the date of enactment of this Act.

    (b) STANDARDS- The standards referred to in subsection (a) are the following:

      (1) For air-cooled air conditioners with cooling capacities of less than 65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 12.0.

      (2) For air-source heat pumps with cooling capacities less than 65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 12 SEER, and a Heating Seasonal Performance Factor of 7.4.

    (c) MODIFIED STANDARDS- The Secretary of Energy may establish, after appropriate notice and comment, revised standards providing for reduced energy consumption or increased energy efficiency of central air conditioners and heat pumps acquired by the Federal Government, but may not establish standards less rigorous than those established by subsection (b).

    (d) DEFINITIONS- For purposes of this section, the terms ‘Energy Efficiency Ratio’, ‘Seasonal Energy Efficiency Ratio’, ‘Heating Seasonal Performance Factor’, and ‘Coefficient of Performance’ have the meanings used for those terms in Appendix M to Subpart B of Part 430 of title 10 of the Code of Federal Regulations, as in effect on May 24, 2001.

    (e) EXEMPTIONS- An agency shall be exempt from the requirements of this section with respect to air conditioner or heat pump purchases for particular uses where the agency head determines that purchase of a air conditioner or heat pump for such use would be impractical. A finding of impracticability shall be based on whether--

      (1) the energy savings pay-back period for such purchase would be less than 10 years;

      (2) space constraints or other technical factors would make compliance with this section cost-prohibitive; or

      (3) in the case of the Departments of Defense and Energy, compliance with this section would be inconsistent with the proper discharge of national security functions.

SEC. 125. FEDERAL ENERGY BANK.

    (a) DEFINITIONS- In this section:

      (1) AGENCY- The term ‘agency’ means each of the following:

        (A) An Executive agency (as defined in section 105 of title 5, United States Code, except that the term also includes the United States Postal Service and the United States Patent and Trademark Office).

        (B) Congress and any other entity in the legislative branch.

        (C) A court and any other entity in the judicial branch.

      (2) BANK- The term ‘Bank’ means the Federal Energy Bank established by subsection (b).

      (3) ENERGY EFFICIENCY PROJECT- The term ‘energy efficiency project’ means a project that assists an agency in meeting or exceeding the energy efficiency requirements of--

        (A) part 3 of title V of the National Energy Conservation Policy Act (42 U.S.C. 8251 et seq.);

        (B) subtitle F of title I of the Energy Policy Act of 1992 and the amendments made by that subtitle (106 Stat. 2843); and

        (C) applicable Executive orders, including Executive Order Nos. 12759 and 13123.

      Such term shall include water conservation and renewable energy projects.

      (4) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.

      (5) TOTAL UTILITY PAYMENTS- The term ‘total utility payments’ means payments made to supply electricity, natural gas, water, and any other form of energy to provide the heating, ventilation, air conditioning, lighting, and other energy needs of an agency facility.

    (b) ESTABLISHMENT OF BANK-

      (1) IN GENERAL- There is established in the Treasury of the United States a trust fund to be known as the ‘Federal Energy Bank’, consisting of--

        (A) such amounts as are appropriated to the Bank under subsection (f);

        (B) such amounts as are transferred to the Bank under paragraph (2);

        (C) such amounts as are repaid to the Bank under subsection (c)(2)(D); and

        (D) any interest earned on investment of amounts in the Bank under paragraph (3).

      (2) TRANSFERS TO BANK-

        (A) IN GENERAL- At the beginning of each of fiscal years 2002, 2003, and 2004, each agency shall transfer to the Secretary of the Treasury, for deposit in the Bank, an amount equal to 5 percent of the total utility payments paid by the agency in the preceding fiscal year.

        (B) UTILITIES PAID FOR AS PART OF RENTAL PAYMENTS- The Secretary shall by regulation establish a formula by which the appropriate portion of a rental payment that covers the cost of utilities shall be considered to be a utility payment for the purposes of subparagraph (A).

      (3) INVESTMENT OF FUNDS- The Secretary of the Treasury shall invest such portion of funds in the Bank as is not, in the Secretary’s judgment, required to meet current withdrawals. Investments may be made only in interest-bearing obligations of the United States.

    (c) LOANS FROM THE BANK-

      (1) IN GENERAL- The Secretary of the Treasury shall transfer from the Bank to the Secretary such amounts as are appropriated to carry out the loan program under paragraph (2).

      (2) LOAN PROGRAM-

        (A) IN GENERAL- In accordance with subsection (d), the Secretary, in consultation with the Secretary of Defense, Administrator of the General Services Administration and the Office of Administration and Budget within the Executive Office of the President, shall establish a program to loan amounts from the Bank to any agency that submits an application satisfactory to the Secretary in order to finance an energy efficiency project. The Bank is authorized to begin operation in fiscal year 2003 and receive and approve funding for energy efficiency projects subject to funding availability in fiscal year 2003.

        (B) PERFORMANCE CONTRACTING FUNDING- The Secretary shall not make a loan under this section for a project for which funding is available and is acceptable to the requesting agency under title VIII of the National Energy Conservation Policy Act (42 U.S.C. 8287 et seq.).

        (C) PURPOSES OF LOAN-

          (i) IN GENERAL- A loan under this section may be made to pay the costs of--

            (I) an energy efficiency project identification and design of an energy efficiency project, and energy metering plans and equipment for purposes of new and existing building energy systems and verifications of energy savings of an energy savings performance contract; or

            (II) development and administration of an energy savings performance contract or utility energy service agreement.

          (ii) LIMITATION- An agency may use not more than 15 percent of the amount of a loan under clause (i)(I) to pay the costs of administration and proposal development (including data collection and energy surveys).

        (D) REPAYMENTS-

          (i) IN GENERAL- An agency shall repay to the Bank the principal amount of the energy efficiency project loan plus interest at a rate determined by the President, in consultation with the Secretary and the Secretary of the Treasury. The repayment period shall be 10 years in the case of water conservation and renewable energy projects.

          (ii) WAIVER- The Secretary may waive the requirement of clause (i) if the Secretary determines that payment of interest by an agency is not required to sustain the needs of the Bank in making energy efficiency project loans.

        (E) AGENCY ENERGY BUDGETS- Until a loan is repaid, an agency budget submitted to Congress for a fiscal year shall not be reduced by the value of energy savings accrued as a result of the energy conservation measure implemented with funds from the Bank.

        (F) AVAILABILITY OF FUNDS- An agency shall not rescind or reprogram funds made available by this section. Funds loaned to an agency shall be retained by the agency until expended, without regard to fiscal year limitation.

    (d) SELECTION CRITERIA-

      (1) IN GENERAL- The Secretary shall establish criteria for the selection of energy efficiency projects to be awarded loans in accordance with paragraph (2).

      (2) SELECTION CRITERIA- The Secretary may make loans only for energy efficiency projects that--

        (A) are technically feasible;

        (B) are determined to be cost-effective using life cycle cost methods established by the Secretary by regulation;

        (C) include a measurement and management component to--

          (i) commission energy savings for new Federal facilities; and

          (ii) monitor and improve energy efficiency management at existing Federal facilities;

        (D) have a project payback period of 10 years or less; and

        (E) gives funding priority to projects with the quickest payback and least total cost.

    (e) REPORTS AND AUDITS-

      (1) REPORTS TO THE SECRETARY- Not later than 1 year after the installation of an energy efficiency project that has a total cost of more than $1,000,000, and each year thereafter, an agency shall submit to the Secretary a report that--

        (A) states whether the project meets or fails to meet the energy savings projections for the project; and

        (B) for each project that fails to meet the energy savings projections, states the reasons for the failure and describes proposed remedies.

      (2) AUDITS- The Secretary may audit any energy efficiency project financed with funding from the Bank to assess the project’s performance.

      (3) REPORTS TO CONGRESS- At the end of each fiscal year, the Secretary shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the operations of the Bank, including a statement of the total receipts into the Bank, and the total expenditures from the Bank to each agency.

    (f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as may be necessary for each of the fiscal years 2002 through 2008 to carry out this section.

SEC. 126. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) ESTABLISHMENT- The Secretary of Energy shall establish an Advanced Building Efficiency Testbed program for the development, testing, and demonstration of advanced engineering systems, components, and materials to enable innovations in building technologies. The program shall evaluate government and industry building efficiency concepts, and demonstrate the ability of next generation buildings to support individual and organizational productivity and health as well as flexibility and technological change to improve environmental sustainability.

    (b) PARTICIPANTS- The program established under subsection (a) shall be led by a university having demonstrated experience with the application of intelligent workplaces and advanced building systems in improving the quality of built environments. Such university shall also have the ability to combine the expertise from more than 12 academic fields, including electrical and computer engineering, computer science, architecture, urban design, and environmental and mechanical engineering. Such university shall partner with other universities and entities who have established programs and the capability of advancing innovative building efficiency technologies.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy to carry out this section $18,000,000 for fiscal year 2002, to remain available until expended, of which $6,000,000 shall be provided to the lead university described in subsection (b), and the remainder shall be provided equally to each of the other participants referred to in subsection (b).

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

    Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at the end the following new subsection:

    ‘(h) USE OF INTERVAL DATA IN FEDERAL BUILDINGS- Not later than January 1, 2003, each agency shall utilize, to the maximum extent practicable, for the purposes of efficient use of energy and reduction in the cost of electricity consumed in its Federal buildings, interval consumption data that measure on a real time or daily basis consumption of electricity in its Federal buildings. To meet the requirements of this subsection each agency shall prepare and submit at the earliest opportunity pursuant to section 548(a) to the Secretary, a plan describing how the agency intends to meet such requirements, including how it will designate personnel primarily responsible for achieving such requirements, and otherwise implement this subsection.’.

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

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

SEC. 129. CAPITOL COMPLEX.

    (a) ENERGY INFRASTRUCTURE- The Architect of the Capitol, building on the Master Plan Study completed in July 2000, shall commission a study to evaluate the energy infrastructure of the Capital Complex to determine how the infrastructure could be augmented to become more energy efficient, using unconventional and renewable energy resources, in a way that would enable the Complex to have reliable utility service in the event of power fluctuations, shortages, or outages.

    (b) AUTHORIZATION- There is authorized to be appropriated to the Architect of the Capitol to carry out this section, not more than $2,000,000 for fiscal years after the enactment of this Act.

Subtitle C--State Programs

SEC. 131. AMENDMENTS TO STATE ENERGY PROGRAMS.

    (a) STATE ENERGY CONSERVATION PLANS- Section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at the end the following new subsection:

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

    (b) STATE ENERGY EFFICIENCY GOALS- Section 364 of the Energy Policy and Conservation Act (42 U.S.C. 6324) is amended by inserting ‘Each State energy conservation plan with respect to which assistance is made available under this part on or after the date of the enactment of Energy Advancement and Conservation Act of 2001, shall contain a goal, consisting of an improvement of 25 percent or more in the efficiency of use of energy in the State concerned in the calendar year 2010 as compared to the calendar year 1990, and may contain interim goals.’ after ‘contain interim goals.’.

    (c) AUTHORIZATION OF APPROPRIATIONS- Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking ‘for fiscal years 1999 through 2003 such sums as may be necessary’ and inserting ‘$75,000,000 for fiscal year 2002, $100,000,000 for fiscal years 2003 and 2004, $125,000,000 for fiscal year 2005’.

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

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

SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.

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

SEC. 134. LIHEAP.

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 2602(b) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking the first sentence and inserting the following: ‘There are authorized to be appropriated to carry out the provisions of this title (other than section 2607A), $3,400,000,000 for each of fiscal years 2001 through 2005.’.

    (b) GAO STUDY- The Comptroller General of the United States shall conduct a study to determine--

      (1) the extent to which Low-Income Home Energy Assistance (LIHEAP) and other government energy subsidies paid to consumers discourage energy conservation and energy efficiency investments; and

      (2) the extent to which the goals of conservation and assistance for low income households could be simultaneously achieved through cash income supplements that do not specifically target energy, thereby maintaining incentives for wise use of expensive forms of energy, or through other means.

SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.

    (a) PROGRAM ESTABLISHMENT AND ADMINISTRATION-

      (1) ESTABLISHMENT- There is established in the Department of Energy the High Performance Public Buildings Program (in this section referred to as the ‘Program’).

      (2) IN GENERAL- The Secretary of Energy may, through the Program, make grants--

        (A) to assist units of local government in the production, through construction or renovation of buildings and facilities they own and operate, of high performance public buildings and facilities that are healthful, productive, energy efficient, and environmentally sound;

        (B) to State energy offices to administer the program of assistance to units of local government pursuant to this section; and

        (C) to State energy offices to promote participation by units of local government in the Program.

      (3) GRANTS TO ASSIST UNITS OF LOCAL GOVERNMENT- Grants under paragraph (2)(A) for new public buildings shall be used to achieve energy efficiency performance that reduces energy use at least 30 percent below that of a public building constructed in compliance with standards prescribed in Chapter 8 of the 2000 International Energy Conservation Code, or a similar State code intended to achieve substantially equivalent results. Grants under paragraph (2)(A) for existing public buildings shall be used to achieve energy efficiency performance that reduces energy use below the public building baseline consumption, assuming a 3-year, weather-normalized average for calculating such baseline. Grants under paragraph (2)(A) shall be made to units of local government that have--

        (A) demonstrated a need for such grants in order to respond appropriately to increasing population or to make major investments in renovation of public buildings; and

        (B) made a commitment to use the grant funds to develop high performance public buildings in accordance with a plan developed and approved pursuant to paragraph (5)(A).

      (4) OTHER GRANTS-

        (A) GRANTS FOR ADMINISTRATION- Grants under paragraph (2)(B) shall be used to evaluate compliance by units of local government with the requirements of this section, and in addition may be used for--

          (i) distributing information and materials to clearly define and promote the development of high performance public buildings for both new and existing facilities;

          (ii) organizing and conducting programs for local government personnel, architects, engineers, and others to advance the concepts of high performance public buildings;

          (iii) obtaining technical services and assistance in planning and designing high performance public buildings; and

          (iv) collecting and monitoring data and information pertaining to the high performance public building projects.

        (B) GRANTS TO PROMOTE PARTICIPATION- Grants under paragraph (2)(C) may be used for promotional and marketing activities, including facilitating private and public financing, promoting the use of energy service companies, working with public building users, and communities, and coordinating public benefit programs.

      (5) IMPLEMENTATION-

        (A) PLANS- A grant under paragraph (2)(A) shall be provided only to a unit of local government that, in consultation with its State office of energy, has developed a plan that the State energy office determines to be feasible and appropriate in order to achieve the purposes for which such grants are made.

        (B) SUPPLEMENTING GRANT FUNDS- State energy offices shall encourage qualifying units of local government to supplement their grant funds with funds from other sources in the implementation of their plans.

    (b) ALLOCATION OF FUNDS-

      (1) IN GENERAL- Except as provided in paragraph (3), funds appropriated to carry out this section shall be provided to State energy offices.

      (2) PURPOSES- Except as provided in paragraph (3), funds appropriated to carry out this section shall be allocated as follows:

        (A) Seventy percent shall be used to make grants under subsection (a)(2)(A).

        (B) Fifteen percent shall be used to make grants under subsection (a)(2)(B).

        (C) Fifteen percent shall be used to make grants under subsection (a)(2)(C).

      (3) OTHER FUNDS- The Secretary of Energy may retain not to exceed $300,000 per year from amounts appropriated under subsection (c) to assist State energy offices in coordinating and implementing the Program. Such funds may be used to develop reference materials to further define the principles and criteria to achieve high performance public buildings.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy to carry out this section such sums as may be necessary for each of the fiscal years 2002 through 2010.

    (d) REPORT TO CONGRESS- The Secretary of Energy shall conduct a biennial review of State actions implementing this section, and the Secretary shall report to Congress on the results of such reviews. In conducting such reviews, the Secretary shall assess the effectiveness of the calculation procedures used by the States in establishing eligibility of units of local government for funding under this section, and may assess other aspects of the State program to determine whether they have been effectively implemented.

    (e) DEFINITIONS- For purposes of this section:

      (1) HIGH PERFORMANCE PUBLIC BUILDING- The term ‘high performance public building’ means a public building which, in its design, construction, operation, and maintenance, maximizes use of unconventional and renewable energy resources and energy efficiency practices, is cost-effective on a life cycle basis, uses affordable, environmentally preferable, durable materials, enhances indoor environmental quality, protects and conserves water, and optimizes site potential.

      (2) RENEWABLE ENERGY- The term ‘renewable energy’ means energy produced by solar, wind, geothermal, hydroelectric, or biomass power.

      (3) UNCONVENTIONAL AND RENEWABLE ENERGY RESOURCES- The term ‘unconventional and renewable energy resources’ means renewable energy, hydrogen, fuel cells, cogeneration, combined heat and power, heat recovery (including by use of a Stirling heat engine), and distributed generation.

Subtitle D--Energy Efficiency for Consumer Products

SEC. 141. ENERGY STAR PROGRAM.

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

‘SEC. 324A. ENERGY STAR PROGRAM.

    ‘(a) IN GENERAL- There is established at the Department of Energy and the Environmental Protection Agency a program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through labeling of products and buildings that meet the highest energy efficiency standards. Responsibilities under the program shall be divided between the Department of Energy and the Environmental Protection Agency consistent with the terms of agreements between the two agencies. The Administrator and the Secretary shall--

      ‘(1) promote Energy Star compliant technologies as the preferred technologies in the marketplace for achieving energy efficiency and to reduce pollution;

      ‘(2) work to enhance public awareness of the Energy Star label; and

      ‘(3) preserve the integrity of the Energy Star label.

    For the purposes of carrying out this section, there is authorized to be appropriated for fiscal years 2002 through 2006 such sums as may be necessary, to remain available until expended.

    ‘(b) STUDY OF CERTAIN PRODUCTS AND BUILDINGS- Within 180 days after the date of enactment of this section, the Secretary and the Administrator, consistent with the terms of agreements between the two agencies, shall determine whether the Energy Star label should be extended to additional products and buildings, including the following:

      ‘(1) Air cleaners.

      ‘(2) Ceiling fans.

      ‘(3) Light commercial heating and cooling products.

      ‘(4) Reach-in refrigerators and freezers.

      ‘(5) Telephony.

      ‘(6) Vending machines.

      ‘(7) Residential water heaters.

      ‘(8) Refrigerated beverage merchandisers.

      ‘(9) Commercial ice makers.

      ‘(10) School buildings.

      ‘(11) Retail buildings.

      ‘(12) Health care facilities.

      ‘(13) Homes.

      ‘(14) Hotels and other commercial lodging facilities.

      ‘(15) Restaurants and other food service facilities.

      ‘(16) Solar water heaters.

      ‘(17) Building-integrated photovoltaic systems.

      ‘(18) Reflective pigment coatings.

      ‘(19) Windows.

      ‘(20) Boilers.

      ‘(21) Devices to extend the life of motor vehicle oil.

    ‘(c) COOL ROOFING- In determining whether the Energy Star label should be extended to roofing products, the Secretary and the Administrator shall work with the roofing products industry to determine the appropriate solar reflective index of roofing products.’.

    (b) TABLE OF CONTENTS AMENDMENT- The table of contents of the Energy Policy and Conservation Act is amended by inserting after the item relating to section 324 the following new item:

      ‘Sec. 324A. Energy Star program.’.

SEC. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.

    (a) STUDY- Section 324(e) of the Energy Policy and Conservation Act (42 U.S.C. 6294(e)) is amended as follows:

      (1) By inserting ‘(1)’ before ‘The Secretary, in consultation’.

      (2) By redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively.

      (3) By adding the following new paragraph at the end:

    ‘(2) The Secretary shall make recommendations to the Commission within 180 days of the date of enactment of this paragraph regarding labeling of consumer products that are not covered products in accordance with this section, where such labeling is likely to assist consumers in making purchasing decisions and is technologically and economically feasible.’.

    (b) NONCOVERED PRODUCTS- Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the following at the end:

    ‘(F) Not later than one year after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to prescribe labeling rules under this section applicable to consumer products that are not covered products if it determines that labeling of such products is likely to assist consumers in making purchasing decisions and is technologically and economically feasible.

    ‘(G) Not later than three months after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to consider the effectiveness of the current consumer products labeling program in assisting consumers in making purchasing decisions and improving energy efficiency and to consider changes to the label that would improve the effectiveness of the label. Such rulemaking shall be completed within 15 months of the date of enactment of this subparagraph.’.

SEC. 143. APPLIANCE STANDARDS.

    (a) STANDARDS FOR HOUSEHOLD APPLIANCES IN STANDBY MODE- Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended by adding at the end the following:

    ‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMPTION BY HOUSEHOLD APPLIANCES- (1) In this subsection:

      ‘(A) The term ‘household appliance’ means any device that uses household electric current and operates in a standby mode except digital televisions, digital set top boxes, and digital video recorders.

      ‘(B) The term ‘standby mode’ means a mode in which a household appliance consumes the least amount of electric energy that the household appliance is capable of consuming without being completely switched off.

    ‘(2)(A) Except as provided in subparagraph (B), a household appliance that is manufactured in, or imported for sale in, the United States on or after the date that is 2 years after the date of enactment of this subsection shall not consume in standby mode more than 1 watt.

    ‘(B)(i) A household appliance model that, as of the date of enactment of this subsection, is recognized under the Energy Star program administered by the Administrator of the Environmental Protection Agency and the Secretary shall have until January 1, 2005, to meet the standard under subparagraph (A).

    ‘(ii) In the case of analog televisions, the Secretary shall prescribe, on or after the date that is 2 years after the date of enactment of this subsection, in accordance with subsections (o) and (p) of section 325, an energy conservation standard that is technologically feasible and economically justified under section 325(o)(2)(A) (in lieu of the 1 watt standard under subparagraph (A)).

    ‘(3)(A) A manufacturer or importer of a household appliance may submit to the Secretary an application for an exemption of the household appliance from the standard under paragraph (2).

    ‘(B) The Secretary shall grant an exemption for a household appliance for which an application is made under subparagraph (A) if the applicant provides evidence showing that, and the Secretary determines that--

      ‘(i) it is not technically feasible to modify the household appliance to enable the household appliance to meet the standard;

      ‘(ii) the standard is incompatible with an energy efficiency standard applicable to the household appliance under another subsection; or

      ‘(iii) the cost of electricity that a typical consumer would save in operating the household appliance meeting the standard would not equal the increase in the price of the household appliance that would be attributable to the modifications that would be necessary to enable the household appliance to meet the standard by the earlier of--

        ‘(I) the date that is 7 years after the date of purchase of the household appliance; or

        ‘(II) the end of the useful life of the household appliance.

    ‘(C) If the Secretary determines that it is not technically feasible to modify a household appliance to meet the standard under paragraph (2), the Secretary shall establish a different standard for the household appliance in accordance with the criteria under subsection (l).

    ‘(4)(A) Not later than 1 year after the date of enactment of this subsection, the Secretary shall establish a test procedure for determining the amount of consumption of power by a household appliance operating in standby mode.

    ‘(B) In establishing the test procedure, the Secretary shall consider--

      ‘(i) international test procedures under development;

      ‘(ii) test procedures used in connection with the Energy Star program; and

      ‘(iii) test procedures used for measuring power consumption in standby mode in other countries.

    ‘(5) FURTHER REDUCTION OF STANDBY POWER CONSUMPTION- The Secretary shall provide technical assistance to manufacturers in achieving further reductions in standby mode electric energy consumption by household appliances.

    ‘(v) STANDBY MODE ELECTRIC ENERGY CONSUMPTION BY DIGITAL TELEVISIONS, DIGITAL SET TOP BOXES, AND DIGITAL VIDEO RECORDERS- The Secretary shall initiate on January 1, 2007 a rulemaking to prescribe, in accordance with subsections (o) and (p), an energy conservation standard of standby mode electric energy consumption by digital television sets, digital set top boxes, and digital video recorders. The Secretary shall issue a final rule prescribing such standards not later than 18 months thereafter. In determining whether a standard under this section is technologically feasible and economically justified under section 325(o)(2)(A), the Secretary shall consider the potential effects on market penetration by digital products covered under this section, and shall consider any recommendations by the FCC regarding such effects.’.

    (2) Section 325(n)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6295(n)(1)) is amended by striking ‘(11), and in paragraphs (13) and’.

    (b) STANDARDS FOR NONCOVERED PRODUCTS- Section 325(m) of the Energy Policy and Conservation Act (42 U.S.C. 6295(m)) is amended as follows:

      (1) Inserting ‘(1)’ before ‘After’.

      (2) Inserting the following at the end:

    (2) ‘Not later than one year after the date of enactment of the Energy Advancement and Conservation Act of 2001, the Secretary shall conduct a rulemaking to determine whether consumer products not classified as a covered product under section 322(a)(1) through (18) meet the criteria of section 322(b)(1). If the Secretary finds that a consumer product not classified as a covered product meets the criteria of section 322(b)(1), he shall prescribe, in accordance with subsections (o) and (p), an energy conservation standard for such consumer product, if such standard is reasonably probable to be technologically feasible and economically justified within the meaning of subsection (o)(2)(A).’.

    (c) CONSUMER EDUCATION ON ENERGY EFFICIENCY BENEFITS OF AIR CONDITIONING, HEATING AND VENTILATION MAINTENANCE- Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 6307) is amended by adding the following new subsection after subsection (b):

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

    (d) EFFICIENCY STANDARDS FOR FURNACE FANS, CEILING FANS, AND COLD DRINK VENDING MACHINES.-

      (1) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended by adding the following at the end thereof:

      ‘(32) The term ‘residential furnace fan’ means an electric fan installed as part of a furnace for purposes of circulating air through the system air filters, the heat exchangers or heating elements of the furnace, and the duct work.

      ‘(33) The terms ‘residential central air conditioner fan’ and ‘heat pump circulation fan’ mean an electric fan installed as part of a central air conditioner or heat pump for purposes of circulating air through the system air filters, the heat exchangers of the air conditioner or heat pump, and the duct work.

      ‘(34) The term ‘suspended ceiling fan’ means a fan intended to be mounted to a ceiling outlet box, ceiling building structure, or to a vertical rod suspended from the ceiling, and which as blades which rotate below the ceiling and consists of an electric motor, fan blades (which rotate in a direction parallel to the floor), an optional lighting kit, and one or more electrical controls (integral or remote) governing fan speed and lighting operation.

      ‘(35) The term ‘refrigerated bottled or canned beverage vending machine’ means a machine that cools bottled or canned beverages and dispenses them upon payment.’.

      (2) TESTING REQUIREMENTS- Section 323 of the Energy Policy and Conservation Act (42 U.S.C. 6293) is amended by adding the following at the end thereof:

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

      (3) STANDARDS FOR ADDITIONAL CONSUMER PRODUCTS- Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended by adding the following at the end thereof:

    ‘(w) RESIDENTIAL FURNACE FANS, CENTRAL AIR AND HEAT PUMP CIRCULATION FANS, SUSPENDED CEILING FANS, AND VENDING MACHINES- (1) The Secretary shall, within 18 months after the date of enactment of this subsection, assess the current and projected future market for residential furnace fans, residential central air conditioner and heat pump circulation fans, suspended ceiling fans, and refrigerated bottled or canned beverage vending machines. This assessment shall include an examination of the types of products sold, the number of products in use, annual sales of these products, energy used by these products sold, the number of products in use, annual sales of these products, energy used by these products, estimates of the potential energy savings from specific technical improvements to these products, and an examination of the cost-effectiveness of these improvements. Prior to the end of this time period, the Secretary shall hold an initial scoping workshop to discuss and receive input to plans for developing minimum efficiency standards for these products.

    ‘(2) The Secretary shall within 24 months after the date on which testing requirements are prescribed by the Secretary pursuant to section 323(f), prescribe, by rule, energy conservation standards for residential furnace fans, residential central air conditioner and heat pump circulation fans, suspended ceiling fans, and refrigerated bottled or canned beverage vending machines. In establishing these standards, the Secretary shall use the criteria and procedures contained in subsections (l) and (m). Any standard prescribed under this section shall apply to products manufactured 36 months after the date such rule is published.’.

      (4) LABELING- Section 324(a) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is amended by adding the following at the end thereof:

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

      (5) COVERED PRODUCTS- Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)) is amended by redesignating paragraph (19) as paragraph (20) and by inserting after paragraph (18) the following:

      ‘(19) Beginning on the effective date for standards established pursuant to subsection (v) of section 325, each product referred to in such subsection (v).’.

Subtitle E--Energy Efficient Vehicles

SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.

    (a) IN GENERAL- Notwithstanding section 102(a)(1) of title 23, United States Code, a State may, for the purpose of promoting energy conservation, permit a vehicle with fewer than 2 occupants to operate in high occupancy vehicle lanes if such vehicle is a hybrid vehicle or is fueled by an alternative fuel.

    (b) HYBRID VEHICLE DEFINED- In this section, the term ‘hybrid vehicle’ means a motor vehicle--

      (1) which draws propulsion energy from onboard sources of stored energy which are both--

        (A) an internal combustion or heat engine using combustible fuel; and

        (B) a rechargeable energy storage system;

      (2) which, in the case of a passenger automobile or light truck--

        (A) for 2002 and later model vehicles, has received a certificate of conformity under section 206 of the Clean Air Act (42 U.S.C. 7525) and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(e)(2)) for that make and model year; and

        (B) for 2004 and later model vehicles, has received a certificate that such vehicle meets the Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year vehicle; and

      (3) which is made by a manufacturer.

    (c) ALTERNATIVE FUEL DEFINED- In this section, the term ‘alternative fuel’ has the meaning such term has under section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)).

SEC. 152. RAILROAD EFFICIENCY.

    (a) LOCOMOTIVE TECHNOLOGY DEMONSTRATION- The Secretary of Energy shall establish a public-private research partnership with railroad carriers, locomotive manufacturers, and a world-class research and test center dedicated to the advancement of railroad technology, efficiency, and safety that is owned by the Federal Railroad Administration and operated in the private sector, for the development and demonstration of locomotive technologies that increase fuel economy, reduce emissions, improve safety, and lower costs.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy $25,000,000 for fiscal year 2002, $30,000,000 for fiscal year 2003, and $35,000,000 for fiscal year 2004 for carrying out this section.

SEC. 153. BIODIESEL FUEL USE CREDITS.

    Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 13220(c)) is amended--

      (1) by striking ‘NOT’ in the subsection heading; and

      (2) by striking ‘not’.

SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.

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

Subtitle F--Other Provisions

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

    (a) IN GENERAL- Each Federal agency shall carry out a review of its regulations and standards to determine those that act as a barrier to market entry for emerging energy-efficient technologies, including, but not limited to, fuel cells, combined heat and power, and distributed generation (including small-scale renewable energy).

    (b) REPORT TO CONGRESS- No later than 18 months after the date of enactment of this section, each agency shall provide a report to Congress and the President detailing all regulatory barriers to emerging energy-efficient technologies, along with actions the agency intends to take, or has taken, to remove such barriers.

    (c) PERIODIC REVIEW- Each agency shall subsequently review its regulations and standards in the manner specified in this section no less frequently than every 5 years, and report their findings to Congress and the President. Such reviews shall include a detailed analysis of all agency actions taken to remove existing barriers to emerging energy technologies.

SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.

    (a) DEFINITIONS-

      (1) ADVANCED IDLE ELIMINATION SYSTEM- The term ‘advanced idle elimination system’ means a device or system of devices that is installed at a truck stop or other location (for example, a loading, unloading, or transfer facility) where vehicles (such as trucks, trains, buses, boats, automobiles, and recreational vehicles) are parked and that is designed to provide to the vehicle the services (such as heat, air conditioning, and electricity) that would otherwise require the operation of the auxiliary or drive train engine or both while the vehicle is stationary and parked.

      (2) EXTENDED IDLING- The term ‘extended idling’ means the idling of a motor vehicle for a period greater than 60 minutes.

    (b) RECOGNITION OF BENEFITS OF ADVANCED IDLE ELIMINATION SYSTEMS- Within 90 days after the date of enactment of this subsection, the Administrator of the Environmental Protection Agency is directed to commence a review of the Agency’s mobile source air emissions models used under the Clean Air Act to determine whether such models accurately reflect the emissions resulting from extended idling of heavy-duty trucks and other vehicles and engines, and shall update those models as the Administrator deems appropriate. Additionally, within 90-days after the date of enactment of this subsection, the Administrator shall commence a review as to the appropriate emissions reductions credit that should be allotted under the Clean Air Act for the use of advanced idle elimination systems, and whether such credits should be subject to an emissions trading system, and shall revise Agency regulations and guidance as the Administrator deems appropriate.

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

    (a) STUDY- The Secretary of Energy and the Administrator of the Environmental Protection Agency shall jointly conduct a study of oil bypass filtration technology in motor vehicle engines. The study shall analyze and quantify the potential benefits of such technology in terms of reduced demand for oil and the potential environmental benefits of the technology in terms of reduced waste and air pollution. The Secretary and the Administrator shall also examine the feasibility of using such technology in the Federal motor vehicle fleet.

    (b) REPORT- Not later than 6 months after the enactment of this Act, the Secretary of Energy and the Administrator of the Environmental Protection Agency shall jointly submit a report containing the results of the study conducted under subsection (a) to the Committee on Energy and Commerce of the United States House of Representatives and to the Committee on Energy and Natural Resources of the United States Senate.

SEC. 164. GAS FLARE STUDY.

    (a) STUDY- The Secretary of Energy shall conduct a study of the economic feasibility of installing small cogeneration facilities utilizing excess gas flares at petrochemical facilities to provide reduced electricity costs to customers living within 3 miles of the petrochemical facilities. The Secretary shall solicit public comment to assist in preparing the report required under subsection (b).

    (b) REPORT- Not later than 18 months after the date of the enactment of this Act, the Secretary of Energy shall transmit a report to the Congress on the results of the study conducted under subsection (a).

SEC. 165. TELECOMMUTING STUDY.

    (a) STUDY REQUIRED- The Secretary, in consultation with Commission, and the NTIA, shall conduct a study of the energy conservation implications of the widespread adoption of telecommuting in the United States.

    (b) REQUIRED SUBJECTS OF STUDY- The study required by subsection (a) shall analyze the following subjects in relation to the energy saving potential of telecommuting:

      (1) Reductions of energy use and energy costs in commuting and regular office heating, cooling, and other operations.

      (2) Other energy reductions accomplished by telecommuting.

      (3) Existing regulatory barriers that hamper telecommuting, including barriers to broadband telecommunications services deployment.

      (4) Collateral benefits to the environment, family life, and other values.

    (c) REPORT REQUIRED- The Secretary shall submit to the President and the Congress a report on the study required by this section not later than 6 months after the date of enactment of this Act. Such report shall include a description of the results of the analysis of each of the subject described in subsection (b).

    (d) DEFINITIONS- As used in this section:

      (1) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.

      (2) COMMISSION- The term ‘Commission’ means the Federal Communications Commission.

      (3) NTIA- The term ‘NTIA’ means the National Telecommunications and Information Administration of the Department of Commerce.

      (4) TELECOMMUTING- The term ‘telecommuting’ means the performance of work functions using communications technologies, thereby eliminating or substantially reducing the need to commute to and from traditional worksites.

TITLE II--AUTOMOBILE FUEL ECONOMY

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

    Section 32902(a) of title 49, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘NONPASSENGER AUTOMOBILES- ’; and

      (2) by adding at the end the following:

    ‘(2) The Secretary shall prescribe under paragraph (1) average fuel economy standards for automobiles (except passenger automobiles) manufactured in model years 2004 through 2010 that are calculated to ensure that the aggregate amount of gasoline projected to be used in those model years by automobiles to which the standards apply is at least 5 billion gallons less than the aggregate amount of gasoline that would be used in those model years by such automobiles if they achieved only the fuel economy required under the average fuel economy standard that applies under this subsection to automobiles (except passenger automobiles) manufactured in model year 2002.’.

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

    (a) IN GENERAL- The Secretary of Transportation shall, in prescribing average fuel economy standards under section 32902(a) of title 49, United States Code, for automobiles (except passenger automobiles) manufactured in model year 2004, consider the potential benefits of--

      (1) establishing a weight-based system for automobiles, that is based on the inertia weight, curb weight, gross vehicle weight rating, or another appropriate measure of such automobiles; and

      (2) prescribing different fuel economy standards for automobiles that are subject to the weight-based system.

    (b) SPECIFIC CONSIDERATIONS- In implementing this section the Secretary--

      (1) shall consider any recommendations made in the National Academy of Sciences study completed pursuant to the Department of Transportation and Related Agencies Appropriations Act, 2000 (Public Law 106-346; 114 Stat. 2763 et seq.); and

      (2) shall evaluate the merits of any weight-based system in terms of motor vehicle safety, energy conservation, and competitiveness of and employment in the United States automotive sector, and if a weight-based system is established by the Secretary a manufacturer may trade credits between or among the automobiles (except passenger automobiles) manufactured by the manufacturer.

SEC. 203. DUAL FUELED AUTOMOBILES.

    (a) PURPOSES- The purposes of this section are--

      (1) to extend the manufacturing incentives for dual fueled automobiles, as set forth in subsections (b) and (d) of section 32905 of title 49, United States Code, through the 2008 model year; and

      (2) to similarly extend the limitation on the maximum average fuel economy increase for such automobiles, as set forth in subsection (a)(1) of section 32906 of title 49, United States Code.

    (b) AMENDMENTS-

      (1) MANUFACTURING INCENTIVES- Section 32905 of title 49, United States Code, is amended as follows:

        (A) Subsections (b) and (d) are each amended by striking ‘model years 1993-2004’ and inserting ‘model years 1993-2008’.

        (B) Subsection (f) is amended by striking ‘Not later than December 31, 2001, the Secretary’ and inserting ‘Not later than December 31, 2005, the Secretary’.

        (C) Subsection (f)(1) is amended by striking ‘model year 2004’ and inserting ‘model year 2008’.

        (D) Subsection (g) is amended by striking ‘Not later than September 30, 2000’ and inserting ‘Not later than September 30, 2004’.

      (2) MAXIMUM FUEL ECONOMY INCREASE- Subsection (a)(1) of section 32906 of title 49, United States Code, is amended as follows:

        (A) Subparagraph (A) is amended by striking ‘the model years 1993-2004’ and inserting ‘model years 1993-2008’.

        (B) Subparagraph (B) is amended by striking ‘the model years 2005-2008’ and inserting ‘model years 2009-2012’.

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

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

‘Sec. 32917. Standards for executive agency automobiles

    ‘(a) BASELINE AVERAGE FUEL ECONOMY- The head of each executive agency shall determine, for all automobiles in the agency’s fleet of automobiles that were leased or bought as a new vehicle in fiscal year 1999, the average fuel economy for such automobiles. For the purposes of this section, the average fuel economy so determined shall be the baseline average fuel economy for the agency’s fleet of automobiles.

    ‘(b) INCREASE OF AVERAGE FUEL ECONOMY- The head of an executive agency shall manage the procurement of automobiles for that agency in such a manner that--

      ‘(1) not later than September 30, 2003, the average fuel economy of the new automobiles in the agency’s fleet of automobiles is not less than 1 mile per gallon higher than the baseline average fuel economy determined under subsection (a) for that fleet; and

      ‘(2) not later than September 30, 2005, the average fuel economy of the new automobiles in the agency’s fleet of automobiles is not less than 3 miles per gallon higher than the baseline average fuel economy determined under subsection (a) for that fleet.

    ‘(c) CALCULATION OF AVERAGE FUEL ECONOMY- Average fuel economy shall be calculated for the purposes of this section in accordance with guidance which the Secretary of Transportation shall prescribe for the implementation of this section.

    ‘(d) DEFINITIONS- In this section:

      ‘(1) The term ‘automobile’ does not include any vehicle designed for combat-related missions, law enforcement work, or emergency rescue work.

      ‘(2) The term ‘executive agency’ has the meaning given that term in section 105 of title 5.

      ‘(3) The term ‘new automobile’, with respect to the fleet of automobiles of an executive agency, means an automobile that is leased for at least 60 consecutive days or bought, by or for the agency, after September 30, 1999.’.

SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.

    (a) IN GENERAL- Section 303(b)(1) of the Energy Policy Act of 1992 is amended by adding the following at the end: ‘Of the total number of vehicles acquired by a Federal fleet in fiscal years 2004 and 2005, at least 5 percent of the vehicles in addition to those covered by the preceding sentence shall be alternative fueled vehicles or hybrid vehicles and in fiscal year 2006 and thereafter at least 10 percent of the vehicles in addition to those covered by the preceding sentence shall be alternative fueled vehicles or hybrid vehicles.’.

    (b) DEFINITION- Section 301 of such Act is amended by striking ‘and’ at the end of paragraph (13), by striking the period at the end of paragraph (14) and inserting ‘; and’ and by adding at the end the following:

    ‘(15) The term ‘hybrid vehicle’ means a motor vehicle which draws propulsion energy from onboard sources of stored energy which are both--

      ‘(A) an internal combustion or heat engine using combustible fuel; and

      ‘(B) a rechargeable energy storage system.’.

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

    (a) IN GENERAL- Title III of the Energy Policy Act of 1992 (42 U.S.C. 13212 et seq.) is amended as follows:

      (1) By adding at the end thereof the following:

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

    ‘(a) PURPOSES- The purposes of this section are to complement and supplement the requirements of section 303 of this Act that Federal fleets, as that term is defined in section 303(b)(3), acquire in the aggregate a minimum percentage of alternative fuel vehicles, to encourage the manufacture and sale or lease of such vehicles nationwide, and to achieve, in the aggregate, a reduction in the amount of the petroleum-based fuels (other than the alternative fuels defined in this title) used by new light-duty motor vehicles acquired by the Federal Government in model years 2004 through 2010 and thereafter.

    ‘(b) IMPLEMENTATION- In furtherance of such purposes, such Federal fleets in the aggregate shall reduce the purchase of petroleum-based nonalternative fuels for such fleets beginning October 1, 2003, through September 30, 2009, from the amount purchased for such fleets over a comparable period since enactment of this Act, as determined by the Secretary, through the annual purchase, in accordance with section 304, and the use of alternative fuels for the light-duty motor vehicles of such Federal fleets, so as to achieve levels which reflect total reliance by such fleets on the consumptive use of alternative fuels consistent with the provisions of section 303(b) of this Act. The Secretary shall, within 120 days after the enactment of this section, promulgate, in consultation with the Administrator of the General Services Administration and the Director of the Office of Management and Budget and such other heads of entities referenced in section 303 within the executive branch as such Director may designate, standards for the full and prompt implementation of this section by such entities. The Secretary shall monitor compliance with this section and such standards by all such fleets and shall report annually to the Congress, based on reports by the heads of such fleets, on the extent to which the requirements of this section and such standards are being achieved. The report shall include information on annual reductions achieved of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels and in requiring their use.’.

      (2) By amending section 304(b) of such Act to read as follows:

    ‘(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary or, as appropriate, the head of each Federal fleet subject to the provisions of this section and section 313 of this Act, such sums as may be necessary to achieve the purposes of section 313(a) and the provisions of this section. Such sums shall remain available until expended.’.

    (b) CLERICAL AMENDMENT- The table of contents in section 1(b) of such Act is amended by adding at the end of the items relating to title III the following:

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

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

    (a) IN GENERAL- Not later than 30 days after the date of the enactment of this Act, the Secretary of Transportation shall enter into an arrangement with the National Academy of Sciences under which the Academy shall study the feasibility and effects of reducing by model year 2010, by a significant percentage, the use of fuel for automobiles.

    (b) SUBJECTS OF STUDY- The study under this section shall include--

      (1) examination of, and recommendation of alternatives to, the policy under current Federal law of establishing average fuel economy standards for automobiles and requiring each automobile manufacturer to comply with average fuel economy standards that apply to the automobiles it manufactures;

      (2) examination of how automobile manufacturers could contribute toward achieving the reduction referred to in subsection (a);

      (3) examination of the potential of fuel cell technology in motor vehicles in order to determine the extent to which such technology may contribute to achieving the reduction referred to in subsection (a); and

      (4) examination of the effects of the reduction referred to in subsection (a) on--

        (A) gasoline supplies;

        (B) the automobile industry, including sales of automobiles manufactured in the United States;

        (C) motor vehicle safety; and

        (D) air quality.

    (c) REPORT- The Secretary shall require the National Academy of Sciences to submit to the Secretary and the Congress a report on the findings, conclusion, and recommendations of the study under this section by not later than 1 year after the date of the enactment of this Act.

TITLE III--NUCLEAR ENERGY

Subtitle A--General Provisions

SEC. 301. BUDGET STATUS OF NUCLEAR WASTE FUND.

    (a) IN GENERAL- Notwithstanding any other provision of law, the receipts and disbursements of the Nuclear Waste Fund established under section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) shall not be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of--

      (1) the budget of the United States Government as submitted by the President;

      (2) the congressional budget; or

      (3) the Balanced Budget and Emergency Deficit Control Act of 1985.

    (b) EFFECT ON PAYGO SCORECARD- Upon the enactment of this Act, the Director of the Office of Management and Budget shall not make any estimates of changes in direct spending outlays and receipts under section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985 resulting from the enactment of subsection (a) of this section.

SEC. 302. LICENSE PERIOD.

    Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c)) is amended--

      (1) by striking ‘c. Each such’ and inserting the following:

    ‘c. LICENSE PERIOD-

      ‘(1) IN GENERAL- Each such’; and

      (2) by adding at the end the following:

      ‘(2) COMBINED LICENSES- In the case of a combined construction and operating license issued under section 185 b., the initial duration of the license may not exceed 40 years from the date on which the Commission finds, before operation of the facility, that the acceptance criteria required by section 185 b. are met.’.

SEC. 303. COST RECOVERY FROM GOVERNMENT AGENCIES.

    Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w)) is amended--

      (1) by striking ‘for or is issued’ and all that follows through ‘1702’ and inserting ‘to the Commission for, or is issued by the Commission, a license or certificate’;

      (2) by striking ‘483a’ and inserting ‘9701’; and

      (3) by striking ‘, of applicants for, or holders of, such licenses or certificates’.

SEC. 304. DEPLETED URANIUM HEXAFLUORIDE.

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

SEC. 305. NUCLEAR REGULATORY COMMISSION MEETINGS.

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

Subtitle B--Domestic Uranium Fuel Cycle

SEC. 311. PORTSMOUTH COLD STANDBY.

    The Secretary of Energy (in this subtitle referred to as the ‘Secretary’) may use, without need for further appropriations, funds from the United States Enrichment Corporation Fund established under section 1308 of the Atomic Energy Act of 1954 (other than amounts reserved under Public Law 105-204) for the implementation of cold standby status at the Portsmouth Gaseous Diffusion Plant, consistent with the plan required under section 314(b), in the following amounts:

      (1) $36,000,000 for fiscal year 2002.

      (2) $43,000,000 for fiscal year 2003.

      (3) $43,000,000 for fiscal year 2004.

      (4) $47,000,000 for fiscal year 2005.

SEC. 312. PADUCAH FUNDING.

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

SEC. 313. RESEARCH AND DEVELOPMENT.

    (a) PLAN- Not later than 5 months after the date of the enactment of this Act, the Secretary shall transmit to the Congress a detailed research and development plan with respect to advanced gas centrifuge technology for uranium enrichment.

    (b) ELEMENTS- The plan required under subsection (a) shall--

      (1) identify the technical obstacles to the deployment of an advanced gas centrifuge technology that will be cost competitive with advanced gas centrifuge technologies deployed in other nations, and propose a strategy to overcome those obstacles;

      (2) include plans for the construction of a pilot facility at a Department of Energy-owned Gaseous Diffusion Plant, and for full-scale deployment of advanced gas centrifuge technology, as necessary to move gas centrifuge technology for uranium enrichment from the laboratory to the marketplace, taking into consideration--

        (A) confirmation of technical performance; and

        (B) initiation of preliminary plant design and engineering that validates economic projections and considers cost effectiveness, accessibility to infrastructure, turnover activities, schedule, financing mechanisms, and risks of construction;

      (3) provide a process to validate and demonstrate commercial feasibility, if the pilot facility described in paragraph (2) is not constructed;

      (4) set forth a schedule to ensure full-scale deployment, and a strategy to provide a reliable and economical domestic source of uranium enrichment services until such full-scale deployment is completed;

      (5) evaluate the relative merits of full-scale deployment by--

        (A) private sector companies;

        (B) a government-owned corporation;

        (C) a partnership between the private and public sectors; and

        (D) the Department of Energy,

      using facilities and property at the Portsmouth Gaseous Diffusion Plant or the Paducah Gaseous Diffusion Plant; and

      (6) provide for a competitive process for deployment of the full-scale technology, and assignment of rights to use Department of Energy patents if the Department of Energy does not deploy the technology.

    (c) PUBLIC COMMENT- Not later than 3 months after the date of the enactment of this Act, the Secretary shall make available a draft version of the plan for a public comment period of 30 days.

    (d) IMPLEMENTATION- One month after the plan is transmitted to the Congress under subsection (a), the Secretary shall begin to implement the plan.

    (e) FUNDING-

      (1) AUTHORIZATION OF APPROPRIATIONS- For the purposes of implementing the plan developed under this section, the Secretary may use, without need for further appropriations, the following amounts from the United States Enrichment Corporation Fund established under section 1308 of the Atomic Energy Act of 1954 (other than amounts reserved under Public Law 105-204):

        (A) $27,000,000 for fiscal year 2002.

        (B) $40,000,000 for fiscal year 2003.

        (C) $58,000,000 for fiscal year 2004.

        (D) $67,000,000 for fiscal year 2005.

        (E) $62,000,000 for fiscal year 2006.

      (2) PLAN- The Secretary may use, without need for further appropriations, funds from the United States Enrichment Corporation Fund established under section 1308 of the Atomic Energy Act of 1954 (other than amounts reserved under Public Law 105-204) to pay the costs of developing the plan under this section.

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

    (a) CRITERIA- Not later than 4 months after the date of the enactment of this Act, the Secretary shall prepare, and make available for a 30-day period of public comment, draft criteria for determining when the hot restart of facilities at the Portsmouth Gaseous Diffusion Plant may be necessary, if supplies of nuclear fuel are disrupted or anticipated to be disrupted, to mitigate the impacts on--

      (1) the supply of nuclear fuel to power plants in the United States; and

      (2) uranium enrichment supply contracts with foreign utilities for which the United States Government is liable for performance in the event of nonperformance by the United States Enrichment Corporation or its successors, or where the United States has obligations under Federal law or treaty.

    (b) PLAN- Not later than 6 months after the date of the enactment of this Act, the Secretary shall prepare, and make available for a 30-day period of public comment, a plan for the hot restart of facilities at the Portsmouth Gaseous Diffusion Plant. Such plan shall--

      (1) incorporate the criteria developed under subsection (a);

      (2) provide for uranium enrichment capabilities of up to 3,000,000 separative work units per year;

      (3) ensure the capability of producing both higher assay (up to 10 percent U 235) and lower assay (0.7 percent to 4.95 percent U 235) fuels;

      (4) include options for the use of the Department of Energy’s inventory of natural uranium;

      (5) provide for the retention of sufficient R-114 refrigerant to operate the Portsmouth Gaseous Diffusion Plant for 15 years or until there is equivalent replacement uranium enrichment capacity deployed in the United States; and

      (6) include cost estimates for hot restart and annual operating costs of the facility.

    (c) TRANSMITTAL TO CONGRESS- Not later than 8 months after the date of the enactment of this Act, the Secretary shall transmit to the Congress the plan described in subsection (b), including the criteria developed under subsection (a).

    (d) FUNDING- The Secretary may use, without need for further appropriations, funds from the United States Enrichment Corporation Fund established under section 1308 of the Atomic Energy Act of 1954 (other than amounts reserved under Public Law 105-204) to pay the costs of developing the criteria and plan under this section.

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

    (a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary $10,000,000 for each of fiscal years 2002, 2003, and 2004 for--

      (1) cooperative, cost-shared, agreements between the Department of Energy and domestic uranium producers to identify, test, and develop improved in situ leaching mining technologies, including low-cost environmental restoration technologies that may be applied to sites after completion of in situ leaching operations; and

      (2) funding for competitively selected demonstration projects with domestic uranium producers relating to--

        (A) enhanced production with minimal environmental impacts;

        (B) restoration of well fields; and

        (C) decommissioning and decontamination activities.

    (b) DOMESTIC URANIUM PRODUCER- For purposes of this section, the term ‘domestic uranium producer’ has the meaning given that term in section 1018(4) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-7(4)), except that the term shall not include any producer that has not produced uranium from domestic reserves on or after July 30, 1998.

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

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

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

    Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is amended by adding at the end the following new subsection:

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

SEC. 318. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.

    The Secretary of Energy shall prepare and submit a plan to Congress within 180 days after the date of the enactment of this Act that establishes scope, cost, schedule, sequence of activities, and contracting strategy for--

      (1) the decontamination and decommissioning of the Department of Energy’s surplus buildings and facilities at the Paducah Gaseous Diffusion Plant that have no future anticipated reuse; and

      (2) the remediation of Department of Energy Material Storage Areas at the Paducah Gaseous Diffusion Plant.

    Such plan shall inventory all surplus facilities and buildings, and identify and rank health and safety risks associated with such facilities and buildings. Such plan shall inventory all Department of Energy Material Storage Areas, and identify and rank health and safety risks associated with such Department of Energy Material Storage Areas. The Department of Energy shall incorporate these risk factors in designing the sequence and schedule for the plan. Such plan shall identify funding requirements that are in addition to the expected outlays included in the Department of Energy’s Environmental Management Plan for the Paducah Gaseous Diffusion Plan.

TITLE IV--HYDROELECTRIC ENERGY

SEC. 401. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) ALTERNATIVE MANDATORY CONDITIONS- Section 4 of the Federal Power Act (16 U.S.C. 797) is amended by adding at the end the following:

    ‘(h)(1) Whenever any person applies for a license for any project works within any reservation of the United States, and the Secretary of the department under whose supervision such reservation falls deems a condition to such license to be necessary under the first proviso of subsection (e), the license applicant or any other party to the licensing proceeding may propose an alternative condition.

    ‘(2) Notwithstanding the first proviso of subsection (e), the Secretary of the department under whose supervision the reservation falls shall accept the proposed alternative condition referred to in paragraph (1), and the Commission shall include in the license such alternative condition, if the Secretary of the appropriate department determines, based on substantial evidence provided by the party proposing such alternative condition, that the alternative condition--

      ‘(A) provides no less protection for the reservation than provided by the condition deemed necessary by the Secretary; and

      ‘(B) will either--

        ‘(i) cost less to implement, or

        ‘(ii) result in improved operation of the project works for electricity production

      as compared to the condition deemed necessary by the Secretary.

    ‘(3) Within one year after the enactment of this subsection, each Secretary concerned shall, by rule, establish a process to expeditiously resolve conflicts arising under this subsection.’.

    (b) ALTERNATIVE FISHWAYS- Section 18 of the Federal Power Act (16 U.S.C. 811) is amended by--

      (1) inserting ‘(a)’ before the first sentence; and

      (2) adding at the end the following:

    ‘(b)(1) Whenever the Commission shall require a licensee to construct, maintain, or operate a fishway prescribed by the Secretary of the Interior or the Secretary of Commerce under this section, the licensee or any other party to the proceeding may propose an alternative to such prescription to construct, maintain, or operate a fishway.

    ‘(2) Notwithstanding subsection (a), the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall accept and prescribe, and the Commission shall require, the proposed alternative referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by the party proposing such alternative, that the alternative--

      ‘(A) will be no less effective than the fishway initially prescribed by the Secretary, and

      ‘(B) will either--

        ‘(i) cost less to implement, or

        ‘(ii) result in improved operation of the project works for electricity production

      as compared to the fishway initially prescribed by the Secretary.

    ‘(3) Within one year after the enactment of this subsection, the Secretary of the Interior and the Secretary of Commerce shall each, by rule, establish a process to expeditiously resolve conflicts arising under this subsection.’

SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.

    (a) DATA COLLECTION PROCEDURES- The Federal Energy Regulatory Commission shall revise its procedures regarding the collection of data in connection with the Commission’s consideration of hydroelectric licenses under the Federal Power Act. Such revised data collection procedures shall be designed to provide the Commission with complete and accurate information concerning the time and costs to parties involved in the licensing process. Such data shall be available for each significant stage in the licensing process and shall be designed to identify projects with similar characteristics so that analyses can be made of the time and costs involved in licensing proceedings based upon the different characteristics of those proceedings.

    (b) REPORTS- Within 6 months after the date of enactment of this Act, the Commission shall notify the Committee on Energy and Commerce of the United States House of Representatives and the Committee on Energy and Natural Resources of the United States Senate of the progress made by the Commission under subsection (a), and within one year after such date of enactment, the Commission shall submit a report to such Committees specifying the measures taken by the Commission pursuant to subsection (a).

TITLE V--CLEAN COAL

SEC. 501. SHORT TITLE.

    This title may be cited as the ‘National Electricity and Environmental Improvement Act’.

SEC. 502. FINDINGS.

    Congress finds that--

      (1) reliable, affordable, increasingly clean electricity will continue to power the growing United States economy;

      (2) an increasing use of electrotechnologies, the desire for continuous environmental improvement, a more competitive electricity market, and concerns about rising energy prices add importance to the need for reliable, affordable, increasingly clean electricity;

      (3) coal, which, as of the date of enactment of this Act, accounts for more than 1/2 of all electricity generated in the United States, is the most abundant fossil energy resource of the United States;

      (4) coal comprises more than 85 percent of all fossil resources in the United States and exists in quantities sufficient to supply the United States for 250 years at current usage rates;

      (5) investments in electricity generating facility emissions control technology over the past 30 years have reduced the aggregate emissions of pollutants from coal-based generating facilities by 21 percent, even as coal use for electricity generation has nearly tripled;

      (6) continuous improvement in efficiency and environmental performance from electricity generating facilities would allow continued use of coal and preserve less abundant energy resources for other energy uses;

      (7) new methods and equipment for converting coal into electricity can effectively eliminate health-threatening emissions and improve efficiency by as much as 50 percent, but initial deployment of new coal generation methods and equipment entails significant risk that generators may be unable to accept in a newly competitive electricity market; and

      (8) continued environmental improvement in coal-based generation and increasing the production and supply of power generation facilities with less air emissions, with the ultimate goal of near-zero emissions, is important and desirable.

Subtitle A--Accelerated Clean Coal Power Production Program

SEC. 511. DEFINITIONS.

    In this subtitle:

      (1) COST AND PERFORMANCE GOALS- The term ‘cost and performance goals’ means the cost and performance goals established under section 512.

      (2) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.

SEC. 512. COST AND PERFORMANCE GOALS.

    (a) IN GENERAL- The Secretary shall perform an assessment that establishes cost and performance goals with respect to various coal-based electric generation facilities, power production strategies, and other efforts that would permit the continued cost-competitive use of coal for electricity generation, as chemical feedstocks, and as transportation fuel in 2007, 2015, and 2020.

    (b) CONSULTATION- In establishing the cost and performance goals, the Secretary shall consult with representatives of--

      (1) the United States coal industry;

      (2) State coal development agencies;

      (3) the electric utility industry;

      (4) railroads and other transportation industries;

      (5) manufacturers of advanced coal-based equipment;

      (6) organizations representing workers;

      (7) organizations formed to--

        (A) promote the use of coal;

        (B) further the goals of environmental protection; and

        (C) promote the production and generation of coal-based power from advanced facilities; and

      (8) other appropriate Federal and State agencies.

    (c) TIMING- The Secretary shall--

      (1) not later than 120 days after the date of enactment of this Act, issue a set of draft cost and performance goals for public comment; and

      (2) not later than 180 days after the date of enactment of this Act, after taking into consideration any public comments received, submit to Congress the final cost and performance goals.

SEC. 513. STUDY.

    (a) IN GENERAL- Not later than 1 year after the date of enactment of this Act, and once every 2 years thereafter through 2016, the Secretary, in cooperation with the Secretary of the Interior and the Administrator of the Environmental Protection Agency, shall transmit to the Congress a report containing the results of a study to--

      (1) identify methods and equipment that, by themselves or in combination with other efforts, may be capable of achieving the cost and performance goals;

      (2) assess the costs that would be incurred by, and the period of time that would be required for, the production of power generation methods and equipment that, by themselves or in combination with other methods and equipment, contribute to the achievement of the cost and performance goals;

      (3) develop recommendations for the Department of Energy, in cooperation with industry, to develop and implement methods and equipment that, by themselves or in combination with other efforts, achieve the production and generation of coal-based power meeting the cost and performance goals; and

      (4) develop recommendations for additional authorities required to achieve the cost and performance goals.

    (b) EXPERT ADVICE- In carrying out this section, the Secretary shall give due weight to the expert advice of representatives of the entities described in section 512(b).

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

    (a) IN GENERAL- The Secretary shall carry out a program to facilitate production and generation of coal-based power through methods and equipment under--

      (1) this subtitle;

      (2) the Federal Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 5901 et seq.);

      (3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 et seq.); and

      (4) title XIII of the Energy Policy Act of 1992 (42 U.S.C. 13331 et seq.).

    (b) CONDITIONS- The program described in subsection (a) shall be designed to achieve the cost and performance goals.

SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- There are authorized to be appropriated to the Secretary to carry out sections 512, 513, and 514, $100,000,000 for each of the fiscal years 2002 through 2012, to remain available until expended.

    (b) CONDITIONS OF AUTHORIZATION- The authorization of appropriations under subsection (a)--

      (1) shall be in addition to authorizations of appropriations in effect on the date of enactment of this Act; and

      (2) shall not be a cap on Department of Energy fossil energy research and development and clean coal technology appropriations.

SEC. 516. CLEAN COAL POWER INITIATIVE.

    (a) IN GENERAL- The Secretary shall establish a clean coal power initiative to facilitate the production and generation of power from advanced coal-based methods and equipment applicable to new or existing power plants, including coproduction plants.

    (b) REQUIREMENTS- The methods and equipment to be addressed under the initiative--

      (1) shall be methods and equipment that, by themselves or in combination with other methods and equipment, advance efficiency and environmental performance, and increase the supply of power and promote cost competitiveness, well beyond that which is in operation or has been demonstrated as of the date of enactment of this Act; and

      (2) may include methods and equipment that have not previously been envisioned for the production and generation of coal-based power.

    (c) PLAN- Not later than 120 days after the date of enactment of this Act, the Secretary shall transmit to Congress a plan to carry out subsection (a) that includes a description of--

      (1) the program elements and management structure to be used;

      (2) milestones to be achieved with respect to the production and generation of coal-based power methods and equipment; and

      (3) the activities proposed to be conducted at facilities that serve or are located at new or existing coal-based electric generation units having at least 50 megawatts nameplate rating, including improvements to allow the units to achieve 1 or more of the following:

        (A) An overall design efficiency improvement of not less than 3 percent as compared with the efficiency of the unit as operated as of the date of enactment of this Act and before any retrofit, repowering, replacement, or installation.

        (B) A significant improvement in, or new alternative method or equipment to enhance, the environmental performance related to the control of sulfur dioxide, nitrogen oxide, or mercury in a manner that is different and well below the cost of activities at facilities that are in operation or have been in operation as of the date of enactment of this Act.

        (C) A means of recycling or reusing a significant portion of coal combustion or gasification wastes or byproducts produced by coal-based generating units, excluding practices that are generally available as of the date of enactment of this Act.

        (D) A means to capture, separate, and reuse or dispose of carbon dioxide that is different and well below the cost of methods and equipment that are in operation or have been in operation as of the date of enactment of this Act.

SEC. 517. FINANCIAL ASSISTANCE.

    (a) IN GENERAL- Not later than 180 days after the date on which the Secretary transmits to Congress the plan under section 516(c), the Secretary shall solicit proposals for projects that serve or are located at new or existing facilities designed to achieve 1 or more of the levels of performance set forth in section 516(c)(3).

    (b) PROJECT CRITERIA- A solicitation under subsection (a) may include solicitation of a proposal for a project to demonstrate--

      (1) an overall design efficiency improvement of not less 3 percentage points as compared with the efficiency of the unit as operated as of the date of enactment of this Act and with no increase in the potential to emit sulfur dioxide, nitrogen oxide, particulate matter, mercury, or carbon monoxide;

      (2) a reduction of emissions to a level of not more than--

        (A)(i) in the case of sulfur dioxide--

          (I) in the case of coal with a potential combustion concentration sulfur emission of 1.2 or more pounds per million British thermal units of heat input, 5 percent of the potential combustion concentration sulfur dioxide emissions; or

          (II) in the case of a coal with a potential combustion concentration of less than 1.2 pounds of per million British thermal units of heat input, 15 percent of the potential combustion concentration of sulfur dioxide emissions;

        (ii) in the case of nitrogen oxide--

          (I) in the case of a boiler other than a cyclone-fired boiler, emissions of 0.1 pound per million British thermal units of heat; or

          (II) in the case of a cyclone-fired boiler, 15 percent of the uncontrolled nitrogen oxide emissions from the boiler; or

        (iii) in the case of particulate matter, emissions of 0.02 pound per million British thermal units of heat input; or

        (B) the emission levels for the pollutants identified in subparagraph (A) that are specified in the new source performance standards of the Clean Air Act (42 U.S.C. 7411) in effect at the time of construction, installation, or retrofitting of the advanced coal-based method or equipment for the category of source if they are lower than the levels specified in subparagraph (A); or

      (3) the production of coal combustion byproducts that are capable of obtaining economic values significantly greater than byproducts produced as of the date of enactment of this Act with no increase in the potential to emit sulfur dioxide, nitrogen oxide, particulate matter, mercury, or carbon monoxide.

    (c) FINANCIAL ASSISTANCE- The Secretary shall provide financial assistance to projects that are likely to--

      (1) achieve overall cost reductions in the utilization of coal to generate useful forms of energy;

      (2) improve the competitiveness of coal among various forms of energy in order to maintain a diversity of fuel choices in the United States to meet electricity generation requirements;

      (3) achieve, in a cost-effective manner, 1 or more of the criteria described in the solicitation; and

      (4) demonstrate methods and equipment that are applicable to 25 percent of the electricity generating facilities that use coal as the primary feedstock as of the date of enactment of this Act.

    (d) FEDERAL SHARE- The Federal share of the cost of a project funded under this section shall not exceed 50 percent.

    (e) FUNDING- To carry out this section, the Secretary may use any unobligated funds available to the Secretary and any funds obligated to any project selected under the clean coal technology program that become unobligated.

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

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

    (a) ALLOWANCE OF QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT- Section 46 of the Internal Revenue Code of 1986 (relating to amount of credit) is amended by striking ‘and’ at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ‘, and’, and by adding at the end the following:

      ‘(4) the qualifying clean coal technology unit credit.’.

    (b) AMOUNT OF QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT- Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to rules for computing investment credit) is amended by inserting after section 48 the following:

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

    ‘(a) IN GENERAL- For purposes of section 46, the qualifying clean coal technology unit credit for any taxable year is an amount equal to 10 percent of the qualified investment in a qualifying system of continuous emission control for such taxable year.

    ‘(b) QUALIFYING SYSTEM OF CONTINUOUS EMISSION CONTROL-

      ‘(1) IN GENERAL- For purposes of subsection (a), the term ‘qualifying system of continuous emission control’ means a system of the taxpayer which--

        ‘(A) serves, is added to, or retrofits an existing coal-based electricity generation unit, the construction, installation, or retrofitting of which is completed by the taxpayer (but only with respect to that portion of the basis which is properly attributable to such construction, installation, or retrofitting),

        ‘(B) reduces the discharge into the atmosphere of 1 or more of the following pollutants to not more than--

          ‘(i) 5 percent of the potential combustion concentration sulfur dioxide emissions for a coal with a potential combustion concentration sulfur emission of 1.2 lb/million Btu of heat input or greater,

          ‘(ii) 15 percent of the potential combustion concentration sulfur dioxide emissions for a coal with a potential combustion concentration sulfur emission of less than 1.2 lb/million Btu of heat input,

          ‘(iii) nitrogen oxide emissions of 0.l lb per million Btu of heat input from other than cyclone-fired boilers,

          ‘(iv) 15 percent of the uncontrolled nitrogen oxide emissions from cyclone-fired boilers,

          ‘(v) particulate emission of 0.02 lb per million Btu of heat input, and

          ‘(vi) the emission levels specified in the new source performance standards of the Clean Air Act (42 U.S.C. 7411) in force at the time of construction, installation or retrofitting of the qualifying system of continuous emission control for the category of source if such level is lower than the levels specified in clause (i), (ii), (iii), (iv), or (v),

        ‘(C) is depreciable under section 167,

        ‘(D) has a useful life of not less than 4 years, and

        ‘(E) is located in the United States.

      ‘(2) SPECIAL RULE FOR SALE-LEASEBACKS- For purposes of subparagraph (A) of paragraph (1), in the case of a unit which--

        ‘(A) is originally placed in service by a person, and

        ‘(B) is sold and leased back by such person, or is leased to such person, within 3 months after the date such unit was originally placed in service, for a period of not less than 12 years,

      such unit shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback (or lease) referred to in subparagraph (B). The preceding sentence shall not apply to any property if the lessee and lessor of such property make an election under this sentence. Such an election, once made, may be revoked only with the consent of the Secretary.

    ‘(c) EXISTING COAL-BASED ELECTRICITY GENERATION UNIT- For purposes of subsection (a), the term ‘existing coal-based electricity generating unit’ means, with respect to any taxable year, a steam generator-turbine unit which uses coal to produce 75 percent or more of its output as electricity and was operated commercially before the effective date of this section.

    ‘(d) LIMIT ON QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT- For purposes of subsection (a), the credit shall be applicable to not more than the first $100,000,000 of qualifying investment in a qualifying system of continuous emission control at any 1 existing coal-based electricity generating unit.

    ‘(e) QUALIFIED INVESTMENT- For purposes of subsection (a), the term ‘qualified investment’ means, with respect to any taxable year, the basis of a qualifying system of continuous emission control placed in service by the taxpayer during such taxable year.

    ‘(f) QUALIFIED PROGRESS EXPENDITURES-

      ‘(1) INCREASE IN QUALIFIED INVESTMENT- In the case of a taxpayer who has made an election under paragraph (5), the amount of the qualified investment of such taxpayer for the taxable year (determined under subsection (e) without regard to this subsection) shall be increased by an amount equal to the aggregate of each qualified progress expenditure for the taxable year with respect to progress expenditure property.

      ‘(2) PROGRESS EXPENDITURE PROPERTY DEFINED- For purposes of this subsection, the term ‘progress expenditure property’ means any property being constructed by or for the taxpayer and which it is reasonable to believe will qualify as a qualifying system of continuous emission control which is being constructed by or for the taxpayer when it is placed in service.

      ‘(3) QUALIFIED PROGRESS EXPENDITURES DEFINED- For purposes of this subsection--

        ‘(A) SELF-CONSTRUCTED PROPERTY- In the case of any self-constructed property, the term ‘qualified progress expenditures’ means the amount which, for purposes of this subpart, is properly chargeable (during such taxable year) to capital account with respect to such property.

        ‘(B) NONSELF-CONSTRUCTED PROPERTY- In the case of nonself-constructed property, the term ‘qualified progress expenditures’ means the amount paid during the taxable year to another person for the construction of such property.

      ‘(4) OTHER DEFINITIONS- For purposes of this subsection--

        ‘(A) SELF-CONSTRUCTED PROPERTY- The term ‘self-constructed property’ means property for which it is reasonable to believe that more than half of the construction expenditures will be made directly by the taxpayer.

        ‘(B) NONSELF-CONSTRUCTED PROPERTY- The term ‘nonself-constructed property’ means property which is not self-constructed property.

        ‘(C) CONSTRUCTION, ETC- The term ‘construction’ includes reconstruction and erection, and the term ‘constructed’ includes reconstructed and erected.

        ‘(D) ONLY CONSTRUCTION OF QUALIFYING SYSTEM OF CONTINUOUS EMISSION CONTROL TO BE TAKEN INTO ACCOUNT- Construction shall be taken into account only if, for purposes of this subpart, expenditures therefor are properly chargeable to capital account with respect to the property.

      ‘(5) ELECTION- An election under this subsection may be made at such time and in such manner as the Secretary may by regulations prescribe. Such an election shall apply to the taxable year for which made and to all subsequent taxable years. Such an election, once made, may not be revoked except with the consent of the Secretary.

    ‘(g) COORDINATION WITH OTHER CREDITS- This section shall not apply to any property with respect to which the rehabilitation credit under section 47 or the energy credit under section 48 is allowed unless the taxpayer elects to waive the application of such credit to such property.

    ‘(h) TERMINATION- This section shall not apply with respect to any qualified investment made more than 10 years after the effective date of this section.’.

    (c) RECAPTURE- Section 50(a) of the Internal Revenue Code of 1986 (relating to other special rules) is amended by adding at the end the following:

      ‘(6) SPECIAL RULES RELATING TO QUALIFYING SYSTEM OF CONTINUOUS EMISSION CONTROL- For purposes of applying this subsection in the case of any credit allowable by reason of section 48A, the following shall apply:

        ‘(A) GENERAL RULE- In lieu of the amount of the increase in tax under paragraph (1), the increase in tax shall be an amount equal to the investment tax credit allowed under section 38 for all prior taxable years with respect to a qualifying system of continuous emission control (as defined by section 48A(b)(1)) multiplied by a fraction whose numerator is the number of years remaining to fully depreciate under this title the qualifying system of continuous emission control disposed of, and whose denominator is the total number of years over which such unit would otherwise have been subject to depreciation. For purposes of the preceding sentence, the year of disposition of the qualifying system of continuous emission control property shall be treated as a year of remaining depreciation.

        ‘(B) PROPERTY CEASES TO QUALIFY FOR PROGRESS EXPENDITURES- Rules similar to the rules of paragraph (2) shall apply in the case of qualified progress expenditures for a qualifying system of continuous emission control under section 48A, except that the amount of the increase in tax under subparagraph (A) of this paragraph shall be substituted in lieu of the amount described in such paragraph (2).

        ‘(C) APPLICATION OF PARAGRAPH- This paragraph shall be applied separately with respect to the credit allowed under section 38 regarding a qualifying system of continuous emission control.’.

    (d) TRANSITIONAL RULE- Section 39(d) of the Internal Revenue Code of 1986 (relating to transitional rules) is amended by adding at the end the following:

      ‘(11) NO CARRYBACK OF SECTION 48A CREDIT BEFORE EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is attributable to the qualifying clean coal technology unit credit determined under section 48A may be carried back to a taxable year ending before the date of enactment of section 48A.’.

    (e) TECHNICAL AMENDMENTS-

      (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking ‘and’ at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ‘, and’, and by adding at the end the following:

          ‘(iv) the portion of the basis of any qualifying system of continuous emission control attributable to any qualified investment (as defined by section 48A(e)).’.

      (2) Section 50(a)(4) of such Code is amended by striking ‘and (2)’ and inserting ‘, (2), and (6)’.

      (3) Section 50(c) of such Code is amended by adding at the end the following:

      ‘(6) NONAPPLICATION- Paragraphs (1) and (2) shall not apply to any qualifying clean coal technology unit credit under section 48A.’.

      (4) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48 the following:

‘Sec. 48A. Qualifying clean coal technology unit credit.’.

    (f) EFFECTIVE DATE- The amendments made by this section shall apply to periods after December 31, 2001, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of enactment of the Revenue Reconciliation Act of 1990).

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

    (a) CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY UNIT- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following:

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

    ‘(a) GENERAL RULE- For purposes of section 38, the qualifying clean coal technology production credit of any taxpayer for any taxable year is equal to the product of--

      ‘(1) the applicable amount of clean coal technology production credit, multiplied by

      ‘(2) the kilowatt hours of electricity produced by the taxpayer during such taxable year at a qualifying clean coal technology unit during the 10-year period beginning on the date the unit was returned to service after retrofit, repowering, or replacement.

    ‘(b) APPLICABLE AMOUNT-

      ‘(1) IN GENERAL- For purposes of this section, the applicable amount of clean coal technology production credit is equal to $0.0034.

      ‘(2) INFLATION ADJUSTMENT FACTOR- For calendar years after 2001, the applicable amount of clean coal technology production credit shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the amount is applied. If any amount as increased under the preceding sentence is not a multiple of 0.01 cent, such amount shall be rounded to the nearest multiple of 0.01 cent.

    ‘(c) DEFINITIONS AND SPECIAL RULES- For purposes of this section--

      ‘(1) QUALIFYING CLEAN COAL TECHNOLOGY UNIT- The term ‘qualifying clean coal technology unit’ means a unit of the taxpayer which--

        ‘(A) is an existing coal-based electricity generating steam generator-turbine unit,

        ‘(B) has a nameplate capacity rating of not more than 300,000 kilowatts, and

        ‘(C) has been retrofitted, repowered, or replaced with a clean coal technology within 10 years after the effective date of this section.

      ‘(2) CLEAN COAL TECHNOLOGY- The term ‘clean coal technology’ means technology which--

        ‘(A) uses coal to produce 50 percent or more of its thermal output as electricity, including advanced pulverized coal or atmospheric fluidized bed combustion, pressurized fluidized bed combustion, integrated gasification combined cycle, or any other technology for the production of electricity,

        ‘(B) has a design heat rate not less than 500 Btu/kWh below that of the existing unit before it is retrofit, repowered, or replaced with the qualifying clean coal technology,

        ‘(C) has a maximum design heat rate of not more than 9,500 Btu/kWh when the design coal has a heat content of more than 9,000 Btu per pound,

        ‘(D) has a maximum design heat rate of not more than 10,500 Btu/kWh when the design coal has a heat content of 9,000 Btu per pound or less, and

        ‘(E) reduces the discharge into the atmosphere of 1 or more of the following pollutants to not more than--

          ‘(i) 5 percent of the potential combustion concentration sulfur dioxide emissions for a coal with a potential combustion concentration sulfur emission of 1.2 lb/million Btu of heat input or greater,

          ‘(ii) 15 percent of the potential combustion concentration sulfur dioxide emissions for a coal with a potential combustion concentration sulfur emission of less than 1.2 lb/million Btu of heat input,

          ‘(iii) nitrogen oxide emissions of 0.1 lb per million Btu of heat input from other than cyclone-fired boilers,

          ‘(iv) 15 percent of the uncontrolled nitrogen oxide emissions from cyclone-fired boilers,

          ‘(v) particulate emissions of 0.02 lb per million Btu of heat input, and

          ‘(vi) the emission levels specified in the new source performance standards of the Clean Air Act (42 U.S.C. 7411) in effect at the time of construction, installation or retrofitting of the qualifying clean coal technology unit for the category of source if such level is lower than the levels specified in clause (i), (ii), (iii), (iv), or (v).

      ‘(3) APPLICATION OF CERTAIN RULES- The rules of paragraphs (3), (4), and (5) of section 45 shall apply.

      ‘(4) INFLATION ADJUSTMENT FACTOR- The term ‘inflation adjustment factor’ means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 2001.

      ‘(5) GDP IMPLICIT PRICE DEFLATOR- The term ‘GDP implicit price deflator’ means the most recent revision of the implicit price deflator for the gross domestic product as computed by the Department of Commerce before March 15 of the calendar year.

    ‘(d) COORDINATION WITH OTHER CREDITS- This section shall not apply to any property with respect to which the qualifying clean coal technology unit credit under section 48A is allowed unless the taxpayer elects to waive the application of such credit to such property.’.

    (b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b) of the Internal Revenue Code of 1986 is amended by striking ‘plus’ at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ‘, plus’, and by adding at the end the following:

      ‘(16) the qualifying clean coal technology production credit determined under section 45G(a).’.

    (c) TRANSITIONAL RULE- Section 39(d) of the Internal Revenue Code of 1986 (relating to transitional rules), as amended by section 201(d), is amended by adding at the end the following:

      ‘(12) NO CARRYBACK OF SECTION 45G CREDIT BEFORE EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is attributable to the qualifying clean coal technology production credit determined under section 45G may be carried back to a taxable year ending before the date of enactment of section 45G.’.

    (d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

‘Sec. 45G. Credit for production from a qualifying clean coal technology unit.’.

    (e) EFFECTIVE DATE- The amendments made by this section shall apply to production after the date of enactment of this Act.

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

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

    (a) ALLOWANCE OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT- Section 46 of the Internal Revenue Code of 1986 (relating to amount of credit), as amended by section 201(a), is amended by striking ‘and’ at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ‘, and’, and by adding at the end the following:

      ‘(5) the qualifying advanced clean coal technology facility credit.’.

    (b) AMOUNT OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT- Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to rules for computing investment credit), as amended by section 521(b), is amended by inserting after section 48A the following:

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

    ‘(a) IN GENERAL- For purposes of section 46, the qualifying advanced clean coal technology facility credit for any taxable year is an amount equal to 10 percent of the qualified investment in a qualifying advanced clean coal technology facility for such taxable year.

    ‘(b) QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY-

      ‘(1) IN GENERAL- For purposes of subsection (a), the term ‘qualifying advanced clean coal technology facility’ means a facility of the taxpayer which--

        ‘(A)(i)(I) original use of which commences with the taxpayer, or

        ‘(II) is a retrofitted or repowered conventional technology facility, the retrofitting or repowering of which is completed by the taxpayer (but only with respect to that portion of the basis which is properly attributable to such retrofitting or repowering), or

        ‘(ii) is acquired through purchase (as defined by section 179(d)(2)),

        ‘(B) is depreciable under section 167,

        ‘(C) has a useful life of not less than 4 years,

        ‘(D) is located in the United States, and

        ‘(E) uses qualifying advanced clean coal technology.

      ‘(2) SPECIAL RULE FOR SALE-LEASEBACKS- For purposes of subparagraph (A) of paragraph (1), in the case of a facility which--

        ‘(A) is originally placed in service by a person, and

        ‘(B) is sold and leased back by such person, or is leased to such person, within 3 months after the date such facility was originally placed in service, for a period of not less than 12 years,

      such facility shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback (or lease) referred to in subparagraph (B). The preceding sentence shall not apply to any property if the lessee and lessor of such property make an election under this sentence. Such an election, once made, may be revoked only with the consent of the Secretary.

    ‘(c) QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY- For purposes of paragraph (1)--

      ‘(1) IN GENERAL- The term ‘qualifying advanced clean coal technology’ means, with respect to clean coal technology--

        ‘(A) which has--

          ‘(i) multiple applications, with a combined capacity of not more than 5,000 megawatts (4,000 megawatts before 2009), of advanced pulverized coal or atmospheric fluidized bed combustion technology--

            ‘(I) installed as a new, retrofit, or repowering application,

            ‘(II) operated between 2000 and 2012, and

            ‘(III) having a design net heat rate of not more than 9,500 Btu per kilowatt hour when the design coal has a heat content of more than 9,000 Btu per pound, or a design net heat rate of not more than 9,900 Btu per kilowatt hour when the design coal has a heat content of 9,000 Btu per pound or less,

          ‘(ii) multiple applications, with a combined capacity of not more than 1,000 megawatts (500 megawatts before 2009 and 750 megawatts before 2013), of pressurized fluidized bed combustion technology--

            ‘(I) installed as a new, retrofit, or repowering application,

            ‘(II) operated between 2000 and 2016, and

            ‘(III) having a design net heat rate of not more than 8,400 Btu per kilowatt hour when the design coal has a heat content of more than 9,000 Btu per pound, or a design net heat rate of not more than 9,900 Btu’s per kilowatt hour when the design coal has a heat content of 9,000 Btu per pound or less, and

          ‘(iii) multiple applications, with a combined capacity of not more than 2,000 megawatts (1,000 megawatts before 2009 and 1,500 megawatts before 2013), of integrated gasification combined cycle technology, with or without fuel or chemical co-production--

            ‘(I) installed as a new, retrofit, or repowering application,

            ‘(II) operated between 2000 and 2016,

            ‘(III) having a design net heat rate of not more than 8,550 Btu per kilowatt hour when the design coal has a heat content of more than 9,000 Btu per pound, or a design net heat rate of not more than 9,900 Btu per kilowatt hour when the design coal has a heat content of 9,000 Btu per pound or less, and

            ‘(IV) having a net thermal efficiency on any fuel or chemical co-production of not less than 39 percent (higher heating value), or

          ‘(iv) multiple applications, with a combined capacity of not more than 2,000 megawatts (1,000 megawatts before 2009 and 1,500 megawatts before 2013) of technology for the production of electricity--

            ‘(I) installed as a new, retrofit, or repowering application,

            ‘(II) operated between 2000 and 2016, and

            ‘(III) having a carbon emission rate which is not more than 85 percent of conventional technology, and

        ‘(B) which reduces the discharge into the atmosphere of 1 or more of the following pollutants to not more than--

          ‘(i) 5 percent of the potential combustion concentration sulfur dioxide emissions for a coal with a potential combustion concentration sulfur emission of 1.2 lb/million Btu of heat input or greater,

          ‘(ii) 15 percent of the potential combustion concentration sulfur dioxide emissions for a coal with a potential combustion concentration sulfur emission of less than 1.2 lb/million Btu of heat input,

          ‘(iii) nitrogen oxide emissions of 0.1 lb per million Btu of heat input from other than cyclone-fired boilers,

          ‘(iv) 15 percent of the uncontrolled nitrogen oxide emissions from cyclone-fired boilers,

          ‘(v) particulate emissions of 0.02 lb per million Btu of heat input, and

          ‘(vi) the emission levels specified in the new source performance standards of the Clean Air Act (42 U.S.C. 7411) in effect at the time of retrofitting, repowering, or replacement of the qualifying clean coal technology unit for the category of source if such level is lower than the levels specified in clause (i), (ii), (iii), (iv), or (v).

      ‘(2) EXCEPTIONS- Such term shall not include any projects receiving or scheduled to receive funding under the Clean Coal Technology Program, or the Power Plant Improvement administered by the Secretary of the Department of Energy or a Qualifying Clean Coal Technology Unit as defined in section 45G(c)(1).

    ‘(d) CLEAN COAL TECHNOLOGY- The term ‘clean coal technology’ means advanced technology which uses coal to produce 75 percent or more of its thermal output as electricity including advanced pulverized coal or atmospheric fluidized bed combustion, pressurized fluidized bed combustion, integrated gasification combined cycle with or without fuel or chemical co-production, and any other technology for the production of electricity which exceeds the performance of conventional technology.

    ‘(e) CONVENTIONAL TECHNOLOGY- The term ‘conventional technology’ means--

      ‘(1) coal-fired combustion technology with a design net heat rate of not less than 9,500 Btu per kilowatt hour (HHV) and a carbon equivalents emission rate of not more than 0.54 pounds of carbon per kilowatt hour when the design coal has a heat content of more than 9,000 Btu per pound,

      ‘(2) coal-fired combustion technology with a design net heat rate of not less than 10,500 Btu per kilowatt hour (HHV) and a carbon equivalents emission rate of not more than 0.60 pounds of carbon per kilowatt hour when the design coal has a heat content of 9,000 Btu per pound or less, or

      ‘(3) natural gas-fired combustion technology with a design net heat rate of not less than 7,500 Btu per kilowatt hour (HHV) and a carbon equivalents emission rate of not more than 0.24 pounds of carbon per kilowatt hour.

    ‘(f) DESIGN NET HEAT RATE- The design net heat rate shall be based on the design annual heat input to and the design annual net electrical output from the qualifying advanced clean coal technology (determined without regard to such technology’s co-generation of steam).

    ‘(g) SELECTION CRITERIA- Selection criteria for qualifying advanced clean coal technology facilities--

      ‘(1) shall be established by the Secretary of Energy as part of a competitive solicitation,

      ‘(2) shall include primary criteria of minimum design net heat rate, maximum design thermal efficiency, environmental performance, and lowest cost to the government, and

      ‘(3) shall include supplemental criteria as determined appropriate by the Secretary of Energy.

    ‘(h) QUALIFIED INVESTMENT- For purposes of subsection (a), the term ‘qualified investment’ means, with respect to any taxable year, the basis of a qualifying advanced clean coal technology facility placed in service by the taxpayer during such taxable year.

    ‘(i) QUALIFIED PROGRESS EXPENDITURES-

      ‘(1) INCREASE IN QUALIFIED INVESTMENT- In the case of a taxpayer who has made an election under paragraph (5), the amount of the qualified investment of such taxpayer for the taxable year (determined under subsection (c) without regard to this section) shall be increased by an amount equal to the aggregate of each qualified progress expenditure for the taxable year with respect to progress expenditure property.

      ‘(2) PROGRESS EXPENDITURE PROPERTY DEFINED- For purposes of this subsection, the term ‘progress expenditure property’ means any property being constructed by or for the taxpayer and which it is reasonable to believe will qualify as a qualifying advanced clean coal technology facility which is being constructed by or for the taxpayer when it is placed in service.

      ‘(3) QUALIFIED PROGRESS EXPENDITURES DEFINED- For purposes of this subsection--

        ‘(A) SELF-CONSTRUCTED PROPERTY- In the case of any self-constructed property, the term ‘qualified progress expenditures’ means the amount which, for purposes of this subpart, is properly chargeable (during such taxable year) to capital account with respect to such property.

        ‘(B) NONSELF-CONSTRUCTED PROPERTY- In the case of nonself-constructed property, the term ‘qualified progress expenditures’ means the amount paid during the taxable year to another person for the construction of such property.

      ‘(4) OTHER DEFINITIONS- For purposes of this subsection--

        ‘(A) SELF-CONSTRUCTED PROPERTY- The term ‘self-constructed property’ means property for which it is reasonable to believe that more than half of the construction expenditures will be made directly by the taxpayer.

        ‘(B) NONSELF-CONSTRUCTED PROPERTY- The term ‘nonself-constructed property’ means property which is not self-constructed property.

        ‘(C) CONSTRUCTION, ETC.- The term ‘construction’ includes reconstruction and erection, and the term ‘constructed’ includes reconstructed and erected.

        ‘(D) ONLY CONSTRUCTION OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY TO BE TAKEN INTO ACCOUNT- Construction shall be taken into account only if, for purposes of this subpart, expenditures therefor are properly chargeable to capital account with respect to the property.

      ‘(5) ELECTION- An election under this subsection may be made at such time and in such manner as the Secretary may by regulations prescribe. Such an election shall apply to the taxable year for which made and to all subsequent taxable years. Such an election, once made, may not be revoked except with the consent of the Secretary.

    ‘(j) COORDINATION WITH OTHER CREDITS- This section shall not apply to any property with respect to which the rehabilitation credit under section 47 or the energy credit under section 48 is allowed unless the taxpayer elects to waive the application of such credit to such property.

    ‘(k) TERMINATION- This section shall not apply with respect to any qualified investment made more than 10 years after the effective date of this section.’.

    (c) RECAPTURE- Section 50(a) of the Internal Revenue Code of 1986 (relating to other special rules), as amended by section 201(c), is amended by adding at the end the following:

      ‘(7) SPECIAL RULES RELATING TO QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY- For purposes of applying this subsection in the case of any credit allowable by reason of section 48B, the following shall apply:

        ‘(A) GENERAL RULE- In lieu of the amount of the increase in tax under paragraph (1), the increase in tax shall be an amount equal to the investment tax credit allowed under section 38 for all prior taxable years with respect to a qualifying advanced clean coal technology facility (as defined by section 48B(b)(1)) multiplied by a fraction whose numerator is the number of years remaining to fully depreciate under this title the qualifying advanced clean coal technology facility disposed of, and whose denominator is the total number of years over which such facility would otherwise have been subject to depreciation. For purposes of the preceding sentence, the year of disposition of the qualifying advanced clean coal technology facility property shall be treated as a year of remaining depreciation.

        ‘(B) PROPERTY CEASES TO QUALIFY FOR PROGRESS EXPENDITURES- Rules similar to the rules of paragraph (2) shall apply in the case of qualified progress expenditures for a qualifying advanced clean coal technology facility under section 48B, except that the amount of the increase in tax under subparagraph (A) of this paragraph shall be substituted in lieu of the amount described in such paragraph (2).

        ‘(C) APPLICATION OF PARAGRAPH- This paragraph shall be applied separately with respect to the credit allowed under section 38 regarding a qualifying advanced clean coal technology facility.’.

    (d) TRANSITIONAL RULE- Section 39(d) of the Internal Revenue Code of 1986 (relating to transitional rules), as amended by section 202(c), is amended by adding at the end the following:

      ‘(13) NO CARRYBACK OF SECTION 48B CREDIT BEFORE EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is attributable to the qualifying advanced clean coal technology facility credit determined under section 48B may be carried back to a taxable year ending before the date of enactment of section 48B.’.

    (e) TECHNICAL AMENDMENTS-

      (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986, as amended by section 521(e)(1), is amended by striking ‘and’ at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ‘, and’, and by adding at the end the following:

          ‘(v) the portion of the basis of any qualifying advanced clean coal technology facility attributable to any qualified investment (as defined by section 48B(c)).’.

      (2) Section 50(a)(4) of such Code, is amended by striking ‘and (6)’ and inserting ‘(6), and (7)’.

      (3) Section 50(c)(6) of such Code, is amended by inserting ‘or any advanced clean coal technology facility credit under section 48B’ after ‘section 48A’.

      (4) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code, is amended by inserting after the item relating to section 48A the following:

‘Sec. 48B. Qualifying advanced clean coal technology facility credit.’.

    (f) EFFECTIVE DATE- The amendments made by this section shall apply to periods after December 31, 2001, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of enactment of the Revenue Reconciliation Act of 1990).

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

    (a) CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits), as amended by section 522(a), is amended by adding at the end the following:

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

    ‘(a) GENERAL RULE- For purposes of section 38, the qualifying advanced clean coal technology production credit of any taxpayer for any taxable year is equal to--

      ‘(1) the applicable amount of advanced clean coal technology production credit, multiplied by

      ‘(2) the sum of--

        ‘(A) the kilowatt hours of electricity, plus

        ‘(B) each 3,413 Btu of fuels or chemicals,

      produced by the taxpayer during such taxable year at a qualifying advanced clean coal technology facility during the 10-year period beginning on the date the facility was originally placed in service.

    ‘(b) APPLICABLE AMOUNT- For purposes of this section, the applicable amount of advanced clean coal technology production credit with respect to production from a qualifying advanced clean coal technology facility shall be determined as follows:

      ‘(1) Where the design coal has a heat content of more than 9,000 Btu per pound:

        ‘(A) In the case of a facility originally placed in service before 2009, if--

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

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

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

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

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

      ‘(2) Where the design coal has a heat content of not more than 9,000 Btu per pound:

        ‘(A) In the case of a facility originally placed in service before 2009, if--

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

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

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

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

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

      ‘(3) Where the clean coal technology facility is producing fuel or chemicals:

        ‘(A) In the case of a facility originally placed in service before 2009, if--

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

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

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

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

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

    ‘(c) INFLATION ADJUSTMENT FACTOR- For calendar years after 2001, each amount in paragraphs (1), (2), and (3) shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the amount is applied. If any amount as increased under the preceding sentence is not a multiple of 0.01 cent, such amount shall be rounded to the nearest multiple of 0.01 cent.

    ‘(d) DEFINITIONS AND SPECIAL RULES- For purposes of this section--

      ‘(1) IN GENERAL- Any term used in this section which is also used in section 48B shall have the meaning given such term in section 48B.

      ‘(2) APPLICABLE RULES- The rules of paragraphs (3), (4), and (5) of section 45 shall apply.

      ‘(3) INFLATION ADJUSTMENT FACTOR- The term ‘inflation adjustment factor’ means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 2001.

      ‘(4) GDP IMPLICIT PRICE DEFLATOR- The term ‘GDP implicit price deflator’ means the most recent revision of the implicit price deflator for the gross domestic product as computed by the Department of Commerce before March 15 of the calendar year.’.

    (b) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b) of the Internal Revenue Code of 1986, as amended by section 202(b), is amended by striking ‘plus’ at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting ‘, plus’, and by adding at the end the following:

      ‘(17) the qualifying advanced clean coal technology production credit determined under section 45H(a).’.

    (c) TRANSITIONAL RULE- Section 39(d) of the Internal Revenue Code of 1986 (relating to transitional rules), as amended by section 301(d), is amended by adding at the end the following:

      ‘(14) NO CARRYBACK OF SECTION 45H CREDIT BEFORE EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is attributable to the qualifying advanced clean coal technology production credit determined under section 45H may be carried back to a taxable year ending before the date of enactment of section 45H.’.

    (d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by section 202(d), is amended by adding at the end the following:

‘Sec. 45H. Credit for production from qualifying advanced clean coal technology.’.

    (e) EFFECTIVE DATE- The amendments made by this section shall apply to production after the date of enactment of this Act.

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

    (a) ESTABLISHMENT- The Secretary of the Treasury shall establish a financial risk pool which shall be available to any United States owner of a qualifying advanced clean coal technology which has qualified for an advanced clean coal technology production credit (as defined in section 45H of the Internal Revenue Code of 1986, as added by section 302) to offset for the first 3 years of the operation of such technology the costs (not to exceed 5 percent of the total cost of installation) for modifications resulting from the technology’s failure to achieve its design performance.

    (b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated such sums as are necessary to carry out the purposes of this section.

Subtitle D--Treatment of Certain Governmental and Other Entities

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

    Section 6401(b) of the Internal Revenue Code of 1986 (relating to excessive credits) is amended by adding at the end the following:

      ‘(3) CREDITS FOR CERTAIN ORGANIZATIONS AND GOVERNMENTAL UNITS-

        ‘(A) ALLOWANCE OF CREDITS- Any credit which would be allowable under section 45G, 45H, 48A, or 48B with respect to a facility of an entity whether or not such entity is exempt from tax, shall be treated as a credit allowable under subpart C of part IV of subchapter A of chapter 1 of subtitle A to such entity if such entity is--

          ‘(i) an organization described in section 501(c)(12)(C) and exempt from tax under section 501(a),

          ‘(ii) an organization described in section 1381(a)(2)(C),

          ‘(iii) a public utility (as defined in section 136(c)(2)(B)),

          ‘(iv) a State, the District of Columbia, or a possession of the United States, or any political subdivision thereof, or

          ‘(v) the Tennessee Valley Authority.

        ‘(B) USE OF CREDIT-

          ‘(i) TRANSFER OF CREDIT- An entity described in clause (i), (ii), (iii), or (iv) of subparagraph (A) may assign, trade, sell, or otherwise transfer any credit allowable to such entity under subparagraph (A) to any other person or entity.

          ‘(ii) USE OF CREDIT AS AN OFFSET- Notwithstanding any other provision of law, in the case of any entity described in clause (i) or (ii) of subparagraph (A), any credit allowable to such entity under subparagraph (A) may be applied by such entity, without penalty, as a prepayment of any loan, debt or other obligation the entity has made, incurred or guaranteed under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).

          ‘(iii) USE BY TVA-

            ‘(I) IN GENERAL- Notwithstanding any other provision of law, in the case of an entity described in subparagraph (A)(v), any credit allowable under subparagraph (A) to such entity may be applied as a credit against the payments required to be made in any fiscal year under section 15d(e) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 83ln-4(e)) as an annual return on the appropriations investment and an annual repayment sum.

            ‘(II) TREATMENT OF CREDITS- The aggregate amount of credits described in subparagraph (A) shall be treated in the same manner and to the same extent as if such credits were a payment in cash and shall be applied first against the annual return on the appropriations investment.

            ‘(III) CREDIT CARRYOVER- With respect to any fiscal year, if the aggregate amount of the credits described in subparagraph (A) exceeds the aggregate amount of payment obligations described in subclause (I), the excess amount shall remain available for application as credits against the amounts of such payment obligations in succeeding fiscal years in the same manner as described in this clause.

        ‘(C) CREDIT NOT INCOME- Neither a transfer under clause (i) nor a use under clause (ii) of subparagraph (B) of any credit allowable under subparagraph (A) shall result in income for purposes of section 501(c)(12).

        ‘(D) TRANSFER PROCEEDS TREATED AS ARISING FROM ESSENTIAL GOVERNMENT FUNCTION- Any proceeds derived by an entity described in clause (iii) or (iv) of subparagraph (A) from the transfer of any such credit under subparagraph (B)(I) shall be treated as arising from an essential government function.

        ‘(E) TREATMENT OF UNRELATED PERSONS- For purposes of this title, sales among and between entities described in clauses (i), (ii), (iii), and (iv) of subparagraph (A) shall be treated as sales between unrelated parties.’.

TITLE VI--FUELS

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

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

SEC. 602. GASOLINE BLENDSTOCK REQUIREMENTS.

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

SEC. 603. BOUTIQUE FUELS.

    (a) JOINT STUDY- The Administrator of the Environmental Protection Agency and the Secretary of Energy shall jointly conduct a study of all Federal, State, and local requirements regarding motor vehicle fuels, including requirements relating to reformulated gasoline, volatility (Reid Vapor Pressure), oxygenated fuel, diesel fuel and other requirements that vary from State to State, region to region, or locality to locality. The study shall analyze--

      (1) the effect of the variety of such requirements on the price of motor vehicle fuels to the consumer;

      (2) the availability and affordability of motor vehicle fuels in different States and localities;

      (3) the effect of Federal, State, and local regulations, including multiple fuel requirements, on domestic refineries and the fuel distribution system;

      (4) the effect of such requirements on local, regional, and national air quality requirements and goals;

      (5) the effect of such requirements on vehicle emissions;

      (6) the feasibility of developing national or regional fuel specifications for the contiguous United States that would--

        (A) enhance flexibility in the fuel distribution infrastructure and improve fuel fungibility;

        (B) reduce price volatility and costs to consumers and producers;

        (C) meet local, regional, and national air quality requirements and goals; and

        (D) provide increased gasoline market liquidity; and

      (7) the extent to which the Environmental Protection Agency’s Tier II requirements for conventional gasoline may achieve in future years the same or similar air quality results as State reformulated gasoline programs and State programs regarding gasoline volatility (RVP).

    (b) REPORT- By December 31, 2001, the Administrator of the Environmental Protection Agency and the Secretary of Energy shall submit a report to the Congress containing the results of the study conducted under subsection (a). Such report shall contain recommendations for legislative and administrative actions that may be taken to simplify the national distribution system for motor vehicle fuel, make such system more cost-effective, and reduce the costs and increase the availability of motor vehicle fuel to the end user while meeting the requirements of the Clean Air Act. Such recommendations shall take into account the need to provide lead time for refinery and fuel distribution system modifications necessary to assure adequate fuel supply for all States.

SEC. 604. FUNDING FOR MTBE CONTAMINATION.

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

TITLE VII--RENEWABLE ENERGY

SEC. 701. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) RESOURCE ASSESSMENT- Not later than one year after the date of enactment of this Act, and each year thereafter, the Secretary of Energy shall publish an assessment by the National Laboratories of all renewable energy resources available within the United States.

    (b) CONTENTS OF REPORT- The report published under subsection (a) shall contain each of the following:

      (1) A detailed inventory describing the available amount and characteristics of solar, wind, biomass, geothermal, hydroelectric and other renewable energy sources.

      (2) Such other information as the Secretary of Energy believes would be useful in developing such renewable energy resources, including descriptions of surrounding terrain, population and load centers, nearby energy infrastructure, location of energy and water resources, and available estimates of the costs needed to develop each resource.

SEC. 702. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is amended as follows:

      (1) In subsection (a) by striking ‘and which satisfies’ and all that follows through ‘Secretary shall establish.’ and inserting ‘. The Secretary shall establish other procedures necessary for efficient administration of the program. The Secretary shall not establish any criteria or procedures that have the effect of assigning to proposals a higher or lower priority for eligibility or allocation of appropriated funds on the basis of the energy source proposed.’.

      (2) In subsection (b)--

        (A) by striking ‘a State or any political’ and all that follows through ‘nonprofit electrical cooperative’ and inserting ‘an electricity-generating cooperative exempt from taxation under section 501(c)(12) or section 1381(a)(2)(C) of the Internal Revenue Code of 1986, a public utility described in section 115 of such Code, a State, Commonwealth, territory, or possession of the United States or the District of Columbia, or a political subdivision thereof, or an Indian tribal government or subdivision thereof,’; and

        (B) By inserting ‘landfill gas,’ after ‘wind, biomass,’.

      (3) In subsection (c) by striking ‘during the 10-fiscal year period beginning with the first full fiscal year occurring after the enactment of this section’ and inserting ‘before October 1, 2013’.

      (4) In subsection (d) by inserting ‘or in which the Secretary finds that all necessary Federal and State authorizations have been obtained to begin construction of the facility’ after ‘eligible for such payments’.

      (5) In subsection (e)(1) by inserting ‘landfill gas,’ after ‘wind, biomass,’.

      (6) In subsection (f) by striking ‘the expiration of’ and all that follows through ‘of this section’ and inserting ‘September 30, 2023’.

      (7) In subsection (g)--

        (A) by striking ‘1993, 1994, and 1995’ and inserting ‘2003 through 2023’; and

        (B) by inserting ‘Funds may be appropriated pursuant to this subsection to remain available until expended.’ after ‘purposes of this section.’.

TITLE VIII--PIPELINE INTEGRITY

Subtitle A--Pipeline Integrity

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

    (a) IN GENERAL- The Secretary of Transportation, in coordination with the Secretary of Energy, and in consultation with the Federal Energy Regulatory Commission, shall develop and implement an accelerated cooperative program of research, development, and demonstration to ensure the integrity of natural gas and hazardous liquid pipelines. This program shall include materials inspection techniques, risk assessment methodology, and information systems surety.

    (b) PURPOSE- The purpose of the cooperative research program shall be to promote research, development, and demonstration to--

      (1) ensure long-term safety, reliability, and service life for existing pipelines;

      (2) expand capabilities of internal inspection devices to identify and accurately measure defects and anomalies;

      (3) develop inspection techniques for pipelines that cannot accommodate the internal inspection devices;

      (4) develop innovative techniques to measure the structural integrity of pipelines to prevent pipeline failures;

      (5) develop improved materials and coatings for use in pipelines;

      (6) improve the capability, reliability, and practicality of external leak detection devices;

      (7) identify underground environments that might lead to shortened service life;

      (8) enhance safety in pipeline siting and land use;

      (9) minimize the environmental impact of pipelines;

      (10) demonstrate technologies that improve pipeline safety, reliability, and integrity;

      (11) provide risk assessment tools for optimizing risk mitigation strategies; and

      (12) provide highly secure information systems for controlling the operation of pipelines.

(c) AREAS- In carrying out this subtitle, the Secretary of Transportation, in coordination with the Secretary of Energy, shall consider research, development, and demonstration on natural gas, crude oil, and petroleum product pipelines for--

      (1) early crack, defect, and damage detection, including real-time damage monitoring;

      (2) automated internal pipeline inspection sensor systems;

      (3) land use guidance and set back management along pipeline rights-of-way for communities;

      (4) internal corrosion control;

      (5) corrosion-resistant coatings;

      (6) improved cathodic protection;

      (7) inspection techniques where internal inspection is not feasible, including measurement of structural integrity;

      (8) external leak detection, including portable real-time video imaging technology, and the advancement of computerized control center leak detection systems utilizing real-time remote field data input;

      (9) longer life, high strength, noncorrosive pipeline materials;

      (10) assessing the remaining strength of existing pipes;

      (11) risk and reliability analysis models, to be used to identify safety improvements that could be realized in the near term resulting from analysis of data obtained from a pipeline performance tracking initiative;

      (12) identification, monitoring, and prevention of outside force damage, including satellite surveillance; and

      (13) any other areas necessary to ensuring the public safety and protecting the environment.

    (d) RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM PLAN- Within 240 days after the date of enactment of this Act, the Secretary of Transportation, in coordination with the Secretary of Energy, the Federal Energy Regulatory Commission, and the Pipeline Integrity Technical Advisory Committee, shall prepare and submit to the Congress a 5-year program plan to guide activities under this subtitle. In preparing the program plan, the Secretary shall consult with appropriate representatives of the natural gas, crude oil, and petroleum product pipeline industries to select and prioritize appropriate project proposals. The Secretary may also seek the advice of utilities, manufacturers, institutions of higher learning, Federal agencies, the pipeline research institutions, national laboratories, State pipeline safety officials, environmental organizations, pipeline safety advocates, and professional and technical societies.

    (e) IMPLEMENTATION- The Secretary of Transportation shall have primary responsibility for ensuring the five-year plan provided for in subsection (d) is implemented as intended by this subtitle.

    (f) REPORTS TO CONGRESS- The Secretary of Transportation shall report to the Committee on Energy and Commerce and the Committee on Transportation and Infrastructure of the House of Representatives, and to the Committee on Energy and Natural Resources and the Committee on Commerce, Science, and Transportation of the Senate, annually as to the status and results to date of the implementation of the program plan. The report shall include the activities of the Departments of Transportation and Energy, the national laboratories, universities, and any other research organizations, including industry research organizations.

SEC. 802. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.

    (a) ESTABLISHMENT- The Secretary of Transportation shall enter into appropriate arrangements with the National Academy of Sciences to establish and manage the Pipeline Integrity Technical Advisory Committee for the purpose of advising the Secretary of Transportation and the Secretary of Energy on the development and implementation of the five-year research, development, and demonstration program plan under section 801(d). The Advisory Committee shall have an ongoing role in evaluating the progress and results of the research, development, and demonstration carried out under this subtitle.

    (b) MEMBERSHIP- The National Academy of Sciences shall appoint the members of the Pipeline Integrity Technical Advisory Committee after consultation with the Secretary of Transportation and the Secretary of Energy. The Advisory Committee shall also have 1 member from the Federal Energy Regulatory Commission. Members appointed to the Advisory Committee should have the necessary qualifications to provide technical contributions to the purposes of the Advisory Committee.

SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

    (a) AUTHORIZATION FROM USER FEES- There are authorized to be appropriated to the Secretary of Transportation for carrying out this subtitle $3,000,000, which is to be derived from user fees under section 60125 of title 49, United States Code, for each of the fiscal years 2002 through 2006.

    (b) DETECTION, PREVENTION, AND MITIGATION- There are authorized to be appropriated to the Secretary of Transportation from the Oil Spill Liability Trust Fund (26 U.S.C. 9509), $3,000,000 to carry out programs for detection, prevention, and mitigation of oil spills authorized in this subtitle for each of the fiscal years 2002 through 2006.

    (c) GENERAL AUTHORIZATION- There are authorized to be appropriated to the Secretary of Energy for carrying out this subtitle such sums as may be necessary for each of the fiscal years 2002 through 2006.

Subtitle B--Other Pipeline Provisions

SEC. 811. PROHIBITION ON CERTAIN PIPELINE ROUTE.

    No license, permit, lease, right-of-way, authorization or other approval required under Federal law for the construction of any pipeline to transport natural gas from lands within the Prudhoe Bay oil and gas lease area may be granted for any pipeline that follows a route that traverses--

      (1) the submerged lands (as defined by the Submerged Lands Act) beneath, or the adjacent shoreline of, the Beaufort Sea; and

      (2) enters Canada at any point north of 68 degrees North latitude.

SEC. 812. HISTORIC PIPELINES.

    Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by adding at the end the following new subsection:

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

TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. WASTE REDUCTION AND USE OF ALTERNATIVES.

    (a) GRANT AUTHORITY- The Secretary of Energy is authorized to make a single grant to a qualified institution to examine and develop the feasibility of burning post-consumer carpet in cement kilns as an alternative energy source. The purposes of the grant shall include determining--

      (1) how post-consumer carpet can be burned without disrupting kiln operations;

      (2) the extent to which overall kiln emissions may be reduced; and

      (3) how this process provides benefits to both cement kiln operations and carpet suppliers.

    (b) QUALIFIED INSTITUTION- For the purposes of subsection (a), a qualified institution is a research-intensive institution of higher learning with demonstrated expertise in the fields of fiber recycling and logistical modeling of carpet waste collection and preparation.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy for carrying out this section $275,000 for fiscal year 2002, to remain available until expended.

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

    (a) REPORT- The Secretary of Energy, in consultation with the heads of other relevant Federal agencies, shall include in each report under section 801(c) of the Department of Energy Organization Act a section which evaluates the progress the United States has made toward obtaining the goal of not more than 50 percent dependence on foreign oil sources by 2010.

    (b) ALTERNATIVES- The information required under this section to be included in the reports under section 801(c) of the Department of Energy Organization Act shall include a specification of what legislative or administrative actions must be implemented to meet this goal and set forth a range of options and alternatives with a cost/benefit analysis for each option or alternative together with an estimate of the contribution each option or alternative could make to reduce foreign oil imports. The Secretary shall solicit information from the public and request information from the Energy Information Agency and other agencies to develop the information required under this section. The information shall indicate, in detail, options and alternatives to--

      (1) increase the use of renewable domestic energy sources, including conventional and nonconventional sources;

      (2) conserve energy resources, including improving efficiencies and decreasing consumption; and

      (3) increase domestic production and use of oil, natural gas, nuclear, and coal, including any actions necessary to provide access to, and transportation of, these energy resources.

SEC. 903. STUDY OF AIRCRAFT EMISSIONS.

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