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H.R. 1644 (108th): Energy Policy Act of 2003

The text of the bill below is as of Apr 9, 2003 (Reported by House Committee).


HR 1644 RH

Union Calendar No. 42

108th CONGRESS

1st Session

H. R. 1644

[Report No. 108-65, Part I]

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

IN THE HOUSE OF REPRESENTATIVES

April 7, 2003

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 Science, Resources, Education and the Workforce, and Transportation and Infrastructure, 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

April 8, 2003

Reported from the Committee on Energy and Commerce with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

April 8, 2003

Referred to the Committee on the Judiciary for a period ending not later than April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(k), rule X

April 8, 2003

Referral to the Committees on Science, Resources, Education and the Workforce, and Transportation and Infrastructure extended for a period ending not later than April 9, 2003

April 9, 2003

Referred to the Committee on Government Reform for a period ending not later than April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(h), rule X

April 9, 2003

The Committees on Science, Resources, Education and the Workforce, Transportation and Infrastructure, the Judiciary, and Government Reform discharged; referred to the Committee of the Whole House on the State of the Union and ordered to be printed

[For text of introduced bill, see copy of bill as introduced on April 7, 2003]


A BILL

To enhance energy conservation and research and development, to 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; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Energy Policy Act of 2003’.

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

      Sec. 1. Short title; table of contents.

TITLE I--ENERGY CONSERVATION

Subtitle A--Federal Leadership in Energy Conservation

      Sec. 1001. Energy and water saving measures in congressional buildings.

      Sec. 1002. Energy management requirements.

      Sec. 1003. Energy use measurement and accountability.

      Sec. 1004. Federal building performance standards.

      Sec. 1005. Procurement of energy efficient products.

      Sec. 1006. Energy savings performance contracts.

      Sec. 1007. Voluntary commitments to reduce industrial energy intensity.

      Sec. 1008. Federal agency participation in demand reduction programs.

      Sec. 1009. Advanced Building Efficiency Testbed.

      Sec. 1010. Increased use of recovered mineral component in federally funded projects involving procurement of cement or concrete.

Subtitle B--Energy Assistance and State Programs

      Sec. 1021. LIHEAP and weatherization assistance.

      Sec. 1022. State energy programs.

      Sec. 1023. Energy efficient appliance rebate programs.

      Sec. 1024. Energy efficient public buildings.

      Sec. 1025. Low income community energy efficiency pilot program.

Subtitle C--Energy Efficient Products

      Sec. 1041. Energy Star program.

      Sec. 1042. Consumer education on energy efficiency benefits of air conditioning, heating, and ventilation maintenance.

      Sec. 1043. Additional definitions.

      Sec. 1044. Additional test procedures.

      Sec. 1045. Energy conservation standards for additional consumer and commercial products.

      Sec. 1046. Energy labeling.

      Sec. 1047. Study of energy efficiency standards.

TITLE II--OIL AND GAS

Subtitle A--Alaska Natural Gas Pipeline

      Sec. 2001. Short title.

      Sec. 2002. Findings and purposes.

      Sec. 2003. Definitions.

      Sec. 2004. Issuance of certificate of public convenience and necessity.

      Sec. 2005. Environmental reviews.

      Sec. 2006. Pipeline expansion.

      Sec. 2007. Federal Coordinator.

      Sec. 2008. Judicial review.

      Sec. 2009. State jurisdiction over in-State delivery of natural gas.

      Sec. 2010. Study of alternative means of construction.

      Sec. 2011. Clarification of ANGTA status and authorities.

      Sec. 2012. Sense of Congress.

      Sec. 2013. Participation of small business concerns.

      Sec. 2014. Alaska pipeline construction training program.

Subtitle B--Strategic Petroleum Reserve

      Sec. 2101. Full capacity of Strategic Petroleum Reserve.

      Sec. 2102. Strategic Petroleum Reserve expansion.

      Sec. 2103. Permanent authority to operate the Strategic Petroleum Reserve and other energy programs.

Subtitle C--Hydraulic Fracturing

      Sec. 2201. Hydraulic fracturing.

Subtitle D--Unproven Oil and Natural Gas Reserves Recovery Program

      Sec. 2301. Program.

      Sec. 2302. Eligible reservoirs.

      Sec. 2303. Focus areas.

      Sec. 2304. Limitation on location of activities.

      Sec. 2305. Program administration.

      Sec. 2306. Advisory Committee.

      Sec. 2307. Limits on participation.

      Sec. 2308. Payments to Federal Government.

      Sec. 2309. Authorization of appropriations.

      Sec. 2310. Public availability of project results and methodologies.

      Sec. 2311. Sunset.

      Sec. 2312. Definitions.

Subtitle E--Miscellaneous

      Sec. 2401. Appeals relating to pipeline construction projects.

      Sec. 2402. Natural gas market data transparency.

      Sec. 2403. Oil and gas exploration and production defined.

TITLE III--HYDROELECTRIC RELICENSING

Subtitle A--Alternative Conditions

      Sec. 3001. Alternative conditions and fishways.

Subtitle B--Additional Hydropower

      Sec. 3201. Hydroelectric production incentives.

      Sec. 3202. Hydroelectric efficiency improvement.

      Sec. 3203. Small hydroelectric power projects.

      Sec. 3204. Increased hydroelectric generation at existing Federal facilities.

TITLE IV--NUCLEAR MATTERS

Subtitle A--Price-Anderson Act Amendments

      Sec. 4001. Short title.

      Sec. 4002. Extension of indemnification authority.

      Sec. 4003. Maximum assessment.

      Sec. 4004. Department of Energy liability limit.

      Sec. 4005. Incidents outside the United States.

      Sec. 4006. Reports.

      Sec. 4007. Inflation adjustment.

      Sec. 4008. Price-Anderson treatment of modular reactors.

      Sec. 4009. Applicability.

      Sec. 4010. Prohibition on assumption by United States Government of liability for certain foreign accidents.

      Sec. 4011. Secure transfer of nuclear materials.

      Sec. 4012. Nuclear facility threats.

      Sec. 4013. Unreasonable risk consultation.

      Sec. 4014. Financial accountability.

      Sec. 4015. Civil penalties.

Subtitle B--Miscellaneous Matters

      Sec. 4021. Licenses.

      Sec. 4022. Nuclear Regulatory Commission meetings.

      Sec. 4023. NRC training program.

      Sec. 4024. Cost recovery from Government agencies.

      Sec. 4025. Elimination of pension offset.

      Sec. 4026. Carrying of firearms by licensee employees.

      Sec. 4027. Unauthorized introduction of dangerous weapons.

      Sec. 4028. Sabotage of nuclear facilities or fuel.

      Sec. 4029. Cooperative research and development and special demonstration projects for the uranium mining industry.

      Sec. 4030. Uranium sales.

      Sec. 4031. Medical isotope production.

      Sec. 4032. Highly enriched uranium diversion threat report.

      Sec. 4033. Whistleblower protection.

TITLE V--VEHICLES AND FUELS

Subtitle A--Energy Policy Act Amendments

      Sec. 5011. Credit for substantial contribution toward noncovered fleets.

      Sec. 5012. Credit for alternative fuel infrastructure.

      Sec. 5013. Alternative fueled vehicle report.

      Sec. 5014. Allocation of incremental costs.

Subtitle B--FreedomCAR and Hydrogen Fuel Program

      Sec. 5021. Short title.

      Sec. 5022. Findings, purpose, and definitions.

      Sec. 5023. Plan; report.

      Sec. 5024. Public-private partnership.

      Sec. 5025. Deployment.

      Sec. 5026. Assessment and transfer.

      Sec. 5027. Interagency task force.

      Sec. 5028. Advisory Committee.

      Sec. 5029. Authorization of appropriations.

      Sec. 5030. Fuel cell program at National Parks.

      Sec. 5030A. Advanced power system technology incentive program.

Subtitle C--Clean School Buses

      Sec. 5031. Establishment of pilot program.

      Sec. 5032. Fuel cell bus development and demonstration program.

      Sec. 5033. Authorization of appropriations.

Subtitle D--Advanced Vehicles

      Sec. 5041. Definitions.

      Sec. 5042. Pilot program.

      Sec. 5043. Reports to Congress.

      Sec. 5044. Authorization of appropriations.

Subtitle E--Hydrogen Fuel Cell Heavy-Duty Vehicles

      Sec. 5051. Definition.

      Sec. 5052. Findings.

      Sec. 5053. Hydrogen fuel cell buses.

      Sec. 5054. Authorization of appropriations.

Subtitle F--Miscellaneous

      Sec. 5061. Railroad efficiency.

      Sec. 5062. Mobile emission reductions trading and crediting.

      Sec. 5063. Idle reduction technologies.

      Sec. 5064. Study of aviation fuel conservation and emissions.

      Sec. 5065. Diesel fueled vehicles.

      Sec. 5066. Hybrid vehicles.

      Sec. 5067. Waivers of alternative fueled vehicle fueling requirement.

TITLE VI--DOE PROGRAMS

      Sec. 6001. Purposes.

      Sec. 6002. Definitions.

Subtitle A--Energy Efficiency

Part 1--Authorization of Appropriations

      Sec. 6011. Energy efficiency.

Part 2--Lighting Systems

      Sec. 6021. Next Generation Lighting Initiative.

Part 3--Vehicles

      Sec. 6031. Definitions.

      Sec. 6032. Establishment of secondary electric vehicle battery use program.

Subtitle B--Distributed Energy and Electric Energy Systems

Part 1--Authorization of Appropriations

      Sec. 6201. Distributed energy and electric energy systems.

Part 2--Distributed Power

      Sec. 6221. Strategy.

      Sec. 6222. High power density industry program.

      Sec. 6223. Micro-cogeneration energy technology.

Part 3--Transmission Systems

      Sec. 6231. Transmission infrastructure systems.

Subtitle C--Renewable Energy

Part 1--Authorization of Appropriations

      Sec. 6301. Renewable energy.

Part 2--Bioenergy

      Sec. 6321. Bioenergy programs.

Subtitle D--Nuclear Energy

Part 1--Authorization of Appropriations

      Sec. 6411. Nuclear energy.

Part 2--Nuclear Energy Research Programs

      Sec. 6421. Nuclear energy research programs.

Part 3--Advanced Fuel Recycling

      Sec. 6431. Advanced fuel recycling program.

Part 4--University Programs

      Sec. 6441. University nuclear science and engineering support.

Subtitle E--Fossil Energy

Part 1--Authorization of Appropriations

      Sec. 6501. Fossil energy.

Part 2--Ultra-deepwater and Unconventional Natural Gas and Other Petroleum Resources

      Sec. 6521. Program authority.

      Sec. 6522. Ultra-deepwater program.

      Sec. 6523. Unconventional natural gas and other petroleum resources program.

      Sec. 6524. Additional requirements for awards.

      Sec. 6525. Advisory committees.

      Sec. 6526. Limits on participation.

      Sec. 6527. Fund.

      Sec. 6528. Sunset.

      Sec. 6529. Definitions.

Subtitle F--Miscellaneous

      Sec. 6601. Waste reduction and use of alternatives.

      Sec. 6602. Coal gasification.

      Sec. 6603. Petroleum coke gasification.

      Sec. 6604. Other biopower and bioenergy.

      Sec. 6605. Technology transfer.

      Sec. 6606. Limitation on legal fee reimbursement.

      Sec. 6607. Complex well technology testing facility.

      Sec. 6608. Total integrated thermal systems.

      Sec. 6609. Oil bypass filtration technology.

TITLE VII--ELECTRICITY

Subtitle A--Transmission Capacity

      Sec. 7011. Transmission infrastructure improvement rulemaking.

      Sec. 7012. Siting of interstate electrical transmission facilities.

Subtitle B--Transmission Operation

      Sec. 7021. Open access transmission by certain utilities.

      Sec. 7022. Regional transmission organizations.

      Sec. 7023. Native load.

Subtitle C--Reliability

      Sec. 7031. Electric reliability standards.

Subtitle D--PUHCA Amendments

      Sec. 7041. Short title.

      Sec. 7042. Definitions.

      Sec. 7043. Repeal of the Public Utility Holding Company Act of 1935.

      Sec. 7044. Federal access to books and records.

      Sec. 7045. State access to books and records.

      Sec. 7046. Exemption authority.

      Sec. 7047. Affiliate transactions.

      Sec. 7048. Applicability.

      Sec. 7049. Effect on other regulations.

      Sec. 7050. Enforcement.

      Sec. 7051. Savings provisions.

      Sec. 7052. Implementation.

      Sec. 7053. Transfer of resources.

      Sec. 7054. Effective date.

      Sec. 7055. Authorization of appropriations.

      Sec. 7056. Conforming amendments to the Federal Power Act.

Subtitle E--PURPA Amendments

      Sec. 7061. Real-time pricing and time-of-use metering standards.

      Sec. 7062. Cogeneration and small power production purchase and sale requirements.

      Sec. 7063. Smart metering.

Subtitle F--Renewable Energy

      Sec. 7071. Net metering.

      Sec. 7072. Renewable energy production incentive.

      Sec. 7073. Renewable energy on Federal lands.

      Sec. 7074. Assessment of renewable energy resources.

Subtitle G--Market Transparency, Round Trip Trading Prohibition, and Enforcement

      Sec. 7081. Market transparency rules.

      Sec. 7082. Prohibition on round trip trading.

      Sec. 7083. Conforming changes.

      Sec. 7084. Enforcement.

Subtitle H--Consumer Protections

      Sec. 7091. Refund effective date.

      Sec. 7092. Jurisdiction over interstate sales.

      Sec. 7093. Consumer privacy.

      Sec. 7094. Unfair trade practices.

Subtitle I--Merger Review Reform and Accountability

      Sec. 7101. Merger review reform and accountability.

Subtitle J--Study of Economic Dispatch

      Sec. 7111. Study on the benefits of economic dispatch.

TITLE VIII--COAL

      Sec. 8001. Authorization of appropriations.

      Sec. 8002. Project criteria.

      Sec. 8003. Report.

      Sec. 8004. Clean coal centers of excellence.

TITLE IX--MOTOR FUELS

Subtitle A--General Provisions

      Sec. 9101. Renewable content of motor vehicle fuel.

      Sec. 9102. Fuels safe harbor.

      Sec. 9103. Findings and MTBE transition assistance.

      Sec. 9104. Elimination of oxygen content requirement for reformulated gasoline.

      Sec. 9105. Analyses of motor vehicle fuel changes.

      Sec. 9106. Data collection.

      Sec. 9107. Fuel system requirements harmonization study.

Subtitle B--MTBE Cleanup

      Sec. 9201. Funding for MTBE contamination.

TITLE X--AUTOMOBILE EFFICIENCY

      Sec. 10001. Authorization of appropriations for implementation and enforcement of fuel economy standards.

      Sec. 10002. Study of feasibility and effects of reducing use of fuel for automobiles.

TITLE XI--PREVENTING THE MISUSE OF NUCLEAR MATERIALS AND TECHNOLOGY

      Sec. 11001. Preventing the misuse of nuclear materials and technology.

TITLE XII--ADDITIONAL PROVISIONS

      Sec. 12001. Transmission technologies.

TITLE I--ENERGY CONSERVATION

Subtitle A--Federal Leadership in Energy Conservation

SEC. 1001. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) IN GENERAL- Part 3 of title V of the National Energy Conservation Policy Act is amended by adding at the end:

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

    ‘(a) IN GENERAL- The Architect of the Capitol--

      ‘(1) shall develop, update, and implement a cost-effective energy conservation and management plan (referred to in this section as the ‘plan’) for all facilities administered by the Congress (referred to in this section as ‘congressional buildings’) to meet the energy performance requirements for Federal buildings established under section 543(a)(1); and

      ‘(2) shall submit the plan to Congress, not later than 180 days after the date of enactment of this section.

    ‘(b) PLAN REQUIREMENTS- The plan shall include--

      ‘(1) a description of the life cycle cost analysis used to determine the cost-effectiveness of proposed energy efficiency projects;

      ‘(2) a schedule of energy surveys to ensure complete surveys of all congressional buildings every 5 years to determine the cost and payback period of energy and water conservation measures;

      ‘(3) a strategy for installation of life cycle cost-effective energy and water conservation measures;

      ‘(4) the results of a study of the costs and benefits of installation of submetering in congressional buildings; and

      ‘(5) information packages and ‘how-to’ guides for each Member and employing authority of Congress that detail simple, cost-effective methods to save energy and taxpayer dollars in the workplace.

    ‘(c) ANNUAL REPORT- The Architect shall submit to Congress annually a report on congressional energy management and conservation programs required under this section that describes in detail--

      ‘(1) energy expenditures and savings estimates for each facility;

      ‘(2) energy management and conservation projects; and

      ‘(3) future priorities to ensure compliance with this section.’.

    (b) TABLE OF CONTENTS AMENDMENT- The table of contents of the National Energy Conservation Policy Act is amended by adding at the end of the items relating to part 3 of title V the following new item:

      ‘Sec. 552. Energy and water savings measures in congressional buildings.’.

    (c) REPEAL- Section 310 of the Legislative Branch Appropriations Act, 1999 (40 U.S.C. 166i), is repealed.

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

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

SEC. 1002. ENERGY MANAGEMENT REQUIREMENTS.

    (a) ENERGY REDUCTION GOALS-

      (1) AMENDMENT- Section 543(a)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking ‘its Federal buildings so that’ and all that follows through the end and inserting ‘the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per gross square foot of the Federal buildings of the agency in fiscal years 2004 through 2013 is reduced, as compared with the energy consumption per gross square foot of the Federal buildings of the agency in fiscal year 2001, by the percentage specified in the following table:

‘Fiscal Year

Percentage reduction

          2004

--2

          2005

--4

          2006

--6

          2007

--8

          2008

--10

          2009

--12

          2010

--14

          2011

--16

          2012

--18

          2013

--20.’.

      (2) REPORTING BASELINE- The energy reduction goals and baseline established in paragraph (1) of section 543(a) of the National Energy Conservation Policy Act, as amended by paragraph (1) of this subsection, supersede all previous goals and baselines under such paragraph, and related reporting requirements.

    (b) REVIEW AND REVISION OF ENERGY PERFORMANCE REQUIREMENT- Section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is further amended by adding at the end the following:

    ‘(3) Not later than December 31, 2012, the Secretary shall review the results of the implementation of the energy performance requirement established under paragraph (1) and submit to Congress recommendations concerning energy performance requirements for fiscal years 2014 through 2023.’.

    (c) EXCLUSIONS- Section 543(c)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking ‘An agency may exclude’ and all that follows through the end and inserting ‘(A) An agency may exclude, from the energy performance requirement for a fiscal year established under subsection (a) and the energy management requirement established under subsection (b), any Federal building or collection of Federal buildings, if the head of the agency finds that--

      ‘(i) compliance with those requirements would be impracticable;

      ‘(ii) the agency has completed and submitted all federally required energy management reports;

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

      ‘(iv) the agency has implemented all practicable, life cycle cost-effective projects with respect to the Federal building or collection of Federal buildings to be excluded.

    ‘(B) A finding of impracticability under subparagraph (A)(i) shall be based on--

      ‘(i) the energy intensiveness of activities carried out in the Federal building or collection of Federal buildings; or

      ‘(ii) the fact that the Federal building or collection of Federal buildings is used in the performance of a national security function.’.

    (d) REVIEW BY SECRETARY- Section 543(c)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--

      (1) by striking ‘impracticability standards’ and inserting ‘standards for exclusion’; and

      (2) by striking ‘a finding of impracticability’ and inserting ‘the exclusion’.

    (e) CRITERIA- Section 543(c) of the National Energy Conservation Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end the following:

    ‘(3) Not later than 180 days after the date of enactment of this paragraph, the Secretary shall issue guidelines that establish criteria for exclusions under paragraph (1).’.

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

    ‘(e) RETENTION OF ENERGY 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. Except as otherwise provided by law, such funds may be used only for energy efficiency or unconventional and renewable energy resources projects.’.

    (g) REPORTS- Section 548(b) of the National Energy Conservation Policy Act (42 U.S.C. 8258(b)) is amended--

      (1) in the subsection heading, by inserting ‘THE PRESIDENT AND’ before ‘CONGRESS’; and

      (2) by inserting ‘President and’ before ‘Congress’.

    (h) CONFORMING AMENDMENT- Section 550(d) of the National Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second sentence by striking ‘the 20 percent reduction goal established under section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)).’ and inserting ‘each of the energy reduction goals established under section 543(a).’.

SEC. 1003. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

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

    ‘(e) Metering of Energy Use-

      ‘(1) DEADLINE- By October 1, 2010, in accordance with guidelines established by the Secretary under paragraph (2), all Federal buildings shall, for the purposes of efficient use of energy and reduction in the cost of electricity used in such buildings, be metered or submetered. Each agency shall use, to the maximum extent practicable, advanced meters or advanced metering devices that provide data at least daily and that measure at least hourly consumption of electricity in the Federal buildings of the agency. Such data shall be incorporated into existing Federal energy tracking systems and made available to Federal facility energy managers.

      ‘(2) Guidelines-

        ‘(A) IN GENERAL- Not later than 180 days after the date of enactment of this subsection, the Secretary, in consultation with the Department of Defense, the General Services Administration, representatives from the metering industry, utility industry, energy services industry, energy efficiency industry, national laboratories, universities, and Federal facility energy managers, shall establish guidelines for agencies to carry out paragraph (1).

        ‘(B) REQUIREMENTS FOR GUIDELINES- The guidelines shall--

          ‘(i) take into consideration--

            ‘(I) the cost of metering and submetering and the reduced cost of operation and maintenance expected to result from metering and submetering;

            ‘(II) the extent to which metering and submetering are expected to result in increased potential for energy management, increased potential for energy savings and energy efficiency improvement, and cost and energy savings due to utility contract aggregation; and

            ‘(III) the measurement and verification protocols of the Department of Energy;

          ‘(ii) include recommendations concerning the amount of funds and the number of trained personnel necessary to gather and use the metering information to track and reduce energy use;

          ‘(iii) establish priorities for types and locations of buildings to be metered and submetered based on cost-effectiveness and a schedule of one or more dates, not later than 1 year after the date of issuance of the guidelines, on which the requirements specified in paragraph (1) shall take effect; and

          ‘(iv) establish exclusions from the requirements specified in paragraph (1) based on the de minimis quantity of energy use of a Federal building, industrial process, or structure.

      ‘(3) PLAN- No later than 6 months after the date guidelines are established under paragraph (2), in a report submitted by the agency under section 548(a), each agency shall submit to the Secretary a plan describing how the agency will implement the requirements of paragraph (1), including (A) how the agency will designate personnel primarily responsible for achieving the requirements and (B) demonstration by the agency, complete with documentation, of any finding that advanced meters or advanced metering devices, as defined in paragraph (1), are not practicable.’.

SEC. 1004. FEDERAL BUILDING PERFORMANCE STANDARDS.

    Section 305(a) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)) is amended--

      (1) in paragraph (2)(A), by striking ‘CABO Model Energy Code, 1992’ and inserting ‘the 2000 International Energy Conservation Code’; and

      (2) by adding at the end the following:

    ‘(3) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS-

      ‘(A) IN GENERAL- Not later than 1 year after the date of enactment of this paragraph, the Secretary of Energy shall establish, by rule, revised Federal building energy efficiency performance standards that require that, if cost-effective, for new Federal buildings--

        ‘(i) such buildings be designed so as to achieve energy consumption levels at least 30 percent below those of the most recent ASHRAE Standard 90.1 or the most recent version of the International Energy Conservation Code, as appropriate; and

        ‘(ii) sustainable design principles are applied to the siting, design, and construction of all new and replacement buildings.

      ‘(B) ADDITIONAL REVISIONS- Not later than 1 year after the date of approval of amendments to ASHRAE Standard 90.1 or the 2000 International Energy Conservation Code, the Secretary of Energy shall determine, based on the cost-effectiveness of the requirements under the amendments, whether the revised standards established under this paragraph should be updated to reflect the amendments.

      ‘(C) STATEMENT ON COMPLIANCE OF NEW BUILDINGS- In the budget request of the Federal agency for each fiscal year and each report submitted by the Federal agency under section 548(a) of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)), the head of each Federal agency shall include--

        ‘(i) a list of all new Federal buildings owned, operated, or controlled by the Federal agency; and

        ‘(ii) a statement concerning whether the Federal buildings meet or exceed the revised standards established under this paragraph.’.

SEC. 1005. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) REQUIREMENTS- Part 3 of title V of the National Energy Conservation Policy Act is amended by adding at the end the following:

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

    ‘(a) DEFINITIONS- In this section:

      ‘(1) ENERGY STAR PRODUCT- The term ‘Energy Star product’ means a product that is rated for energy efficiency under an Energy Star program.

      ‘(2) ENERGY STAR PROGRAM- The term ‘Energy Star program’ means the program established by section 324A of the Energy Policy and Conservation Act.

      ‘(3) EXECUTIVE AGENCY- The term ‘executive agency’ has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

      ‘(4) FEMP DESIGNATED PRODUCT- The term ‘FEMP designated product’ means a product that is designated under the Federal Energy Management Program of the Department of Energy as being among the highest 25 percent of equivalent products for energy efficiency.

    ‘(b) PROCUREMENT OF ENERGY EFFICIENT PRODUCTS-

      ‘(1) REQUIREMENT- To meet the requirements of an executive agency for an energy consuming product, the head of the executive agency shall, except as provided in paragraph (2), procure--

        ‘(A) an Energy Star product; or

        ‘(B) a FEMP designated product.

      ‘(2) EXCEPTIONS- The head of an executive agency is not required to procure an Energy Star product or FEMP designated product under paragraph (1) if the head of the executive agency finds in writing that--

        ‘(A) an Energy Star product or FEMP designated product is not cost-effective over the life of the product taking energy cost savings into account; or

        ‘(B) no Energy Star product or FEMP designated product is reasonably available that meets the functional requirements of the executive agency.

      ‘(3) PROCUREMENT PLANNING- The head of an executive agency shall incorporate into the specifications for all procurements involving energy consuming products and systems, including guide specifications, project specifications, and construction, renovation, and services contracts that include provision of energy consuming products and systems, and into the factors for the evaluation of offers received for the procurement, criteria for energy efficiency that are consistent with the criteria used for rating Energy Star products and for rating FEMP designated products.

    ‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN FEDERAL CATALOGS- Energy Star products and FEMP designated products shall be clearly identified and prominently displayed in any inventory or listing of products by the General Services Administration or the Defense Logistics Agency. The General Services Administration or the Defense Logistics Agency shall supply only Energy Star products or FEMP designated products for all product categories covered by the Energy Star program or the Federal Energy Management Program, except in cases where the agency ordering a product specifies in writing that no Energy Star product or FEMP designated product is available to meet the buyer’s functional requirements, or that no Energy Star product or FEMP designated product is cost-effective for the intended application over the life of the product, taking energy cost savings into account.

    ‘(d) DESIGNATION OF ELECTRIC MOTORS- In the case of electric motors of 1 to 500 horsepower, agencies shall select only premium efficient motors that meet a standard designated by the Secretary. The Secretary shall designate such a standard within 120 days after the date of the enactment of this section, after considering the recommendations of associated electric motor manufacturers and energy efficiency groups.

    ‘(e) REGULATIONS- Not later than 180 days after the date of the enactment of this section, the Secretary shall issue guidelines to carry out this section.’.

    (b) CONFORMING AMENDMENT- The table of contents in section 101(b) of the National Energy Conservation Policy Act (42 U.S.C. 8201 note), as amended by section 1001(b) of this Act, is further amended by inserting after the item relating to section 552 the following:

      ‘Sec. 553. Federal procurement of energy efficient products.’.

SEC. 1006. ENERGY SAVINGS PERFORMANCE CONTRACTS.

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

    (b) 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.’.

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

      ‘(2) The term ‘energy savings’ means--

        ‘(A) 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 cogeneration or heat recovery, 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; or

        ‘(B) 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.’.

    (d) 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.

      Such contracts shall, with respect to an agency facility that is a public building as such term is defined in section 13(1) of the Public Buildings Act of 1959 (40 U.S.C. 3301), be in compliance with the prospectus requirements and procedures of section 7 of the Public Buildings Act of 1959 (40 U.S.C. 3307).’.

    (e) 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, more efficient treatment of wastewater or stormwater, improvements in operation or maintenance efficiencies, retrofit activities, or other related activities, not at a Federal hydroelectric facility.’.

    (f) REVIEW- Within 180 days after the date of the enactment of this section, 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. 1007. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) VOLUNTARY AGREEMENTS- The Secretary of Energy shall enter into voluntary agreements with one or more persons in industrial sectors that consume significant amounts of primary energy per unit of physical output to reduce the energy intensity of their production activities.

    (b) GOAL- Voluntary agreements under this section shall have a goal of reducing energy intensity by not less than 2.5 percent each year from 2004 through 2014.

    (c) RECOGNITION- The Secretary of Energy, in cooperation with the Administrator of the Environmental Protection Agency and other appropriate Federal agencies, shall develop mechanisms to recognize and publicize the achievements of participants in voluntary agreements under this section.

    (d) DEFINITION- In this section, the term ‘energy intensity’ means the primary energy consumed per unit of physical output in an industrial process.

    (e) TECHNICAL ASSISTANCE- An entity that enters into an agreement under this section and continues to make a good faith effort to achieve the energy efficiency goals specified in the agreement shall be eligible to receive from the Secretary a grant or technical assistance as appropriate to assist in the achievement of those goals.

    (f) REPORT- Not later than June 30, 2010 and June 30, 2014, the Secretary shall submit to Congress a report that evaluates the success of the voluntary agreements, with independent verification of a sample of the energy savings estimates provided by participating firms.

SEC. 1008. FEDERAL AGENCY PARTICIPATION IN DEMAND REDUCTION PROGRAMS.

    Section 546(c) of the National Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended by adding at the end of the following new paragraph:

    ‘(6) Federal agencies are encouraged to participate in State or regional demand side reduction programs. The availability of such programs, including measures employing onsite generation, and the savings resulting from such participation, should be included in the evaluation of energy options for Federal facilities.’.

SEC. 1009. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) ESTABLISHMENT- The Secretary of Energy, in consultation with the Administrator of the General Services Administration, shall establish an Advanced Building Efficiency Testbed program for the development, testing, and

demonstration of advanced engineering systems, components, and materials to enable innovations in building technologies. The program shall evaluate efficiency concepts for government and industry buildings, and demonstrate the ability of next generation buildings to support individual and organizational productivity and health as well as flexibility and technological change to improve environmental sustainability. Such program shall complement and not duplicate existing national programs.

    (b) PARTICIPANTS- The program established under subsection (a) shall be led by a university with the ability to combine the expertise from numerous academic fields including, at a minimum, intelligent workplaces and advanced building systems and engineering, electrical and computer engineering, computer science, architecture, urban design, and environmental and mechanical engineering. Such university shall partner with other universities and entities who have established programs and the capability of advancing innovative building efficiency technologies.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy to carry out this section $6,000,000 for each of the fiscal years 2004 through 2006, to remain available until expended. For any fiscal year in which funds are expended under this section, the Secretary shall provide one-third of the total amount to the lead university described in subsection (b), and provide the remaining two-thirds to the other participants referred to in subsection (b) on an equal basis.

SEC. 1010. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE.

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

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

    ‘SEC. 6005. (a) DEFINITIONS- In this section:

      ‘(1) AGENCY HEAD- The term ‘agency head’ means--

        ‘(A) the Secretary of Transportation; and

        ‘(B) the head of each other Federal agency that on a regular basis procures, or provides Federal funds to pay or assist in paying the cost of procuring, material for cement or concrete projects.

      ‘(2) CEMENT OR CONCRETE PROJECT- The term ‘cement or concrete project’ means a project for the construction or maintenance of a highway or other transportation facility or a Federal, State, or local government building or other public facility that--

        ‘(A) involves the procurement of cement or concrete; and

        ‘(B) is carried out in whole or in part using Federal funds.

      ‘(3) RECOVERED MINERAL COMPONENT- The term ‘recovered mineral component’ means--

        ‘(A) ground granulated blast furnace slag;

        ‘(B) coal combustion fly ash; and

        ‘(C) any other waste material or byproduct recovered or diverted from solid waste that the Administrator, in consultation with an agency head, determines should be treated as recovered mineral component under this section for use in cement or concrete projects paid for, in whole or in part, by the agency head.

    ‘(b) IMPLEMENTATION OF REQUIREMENTS-

      ‘(1) IN GENERAL- Not later than 1 year after the date of enactment of this section, the Administrator and each agency head shall take such actions as are necessary to implement fully all procurement requirements and incentives in effect as of the date of enactment of this section (including guidelines under section 6002) that provide for the use of cement and concrete incorporating recovered mineral component in cement or concrete projects.

      ‘(2) PRIORITY- In carrying out paragraph (1) an agency head shall give priority to achieving greater use of recovered mineral component in cement or concrete projects for which recovered mineral components historically have not been used or have been used only minimally.

      ‘(3) CONFORMANCE- The Administrator and each agency head shall carry out this subsection in accordance with section 6002.

    ‘(c) FULL IMPLEMENTATION STUDY-

      ‘(1) IN GENERAL- The Administrator, in cooperation with the Secretary of Transportation and the Secretary of Energy, shall conduct a study to determine the extent to which current procurement requirements, when fully implemented in accordance with subsection (b), may realize energy savings and environmental benefits attainable with substitution of recovered mineral component in cement used in cement or concrete projects.

      ‘(2) MATTERS TO BE ADDRESSED- The study shall--

        ‘(A) quantify the extent to which recovered mineral components are being substituted for Portland cement, particularly as a result of current procurement requirements, and the energy savings and environmental benefits associated with that substitution;

        ‘(B) identify all barriers in procurement requirements to fuller realization of energy savings and environmental benefits, including barriers resulting from exceptions from current law; and

        ‘(C)(i) identify potential mechanisms to achieve greater substitution of recovered mineral component in types of cement or concrete projects for which recovered mineral components historically have not been used or have been used only minimally;

        ‘(ii) evaluate the feasibility of establishing guidelines or standards for optimized substitution rates of recovered mineral component in those cement or concrete projects; and

        ‘(iii) identify any potential environmental or economic effects that may result from greater substitution of recovered mineral component in those cement or concrete projects.

      ‘(3) REPORT- Not later than 30 months after the date of enactment of this section, the Administrator shall submit to the Committee on Appropriations and Committee on Environment and Public Works of the Senate and the Committee on Appropriations, Committee on Energy and Commerce, and Committee on Transportation and Infrastructure of the House of Representatives a report on the study.

    ‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS- Unless the study conducted under subsection (c) identifies any effects or other problems described in subsection (c)(2)(C)(iii) that warrant further review or delay, the Administrator and each agency head shall, within 1 year of the release of the report in accordance with subsection (c)(3), take additional actions authorized under this Act to establish procurement requirements and incentives that provide for the use of cement and concrete with increased substitution of recovered mineral component in the construction and maintenance of cement or concrete projects, so as to--

      ‘(1) realize more fully the energy savings and environmental benefits associated with increased substitution; and

      ‘(2) eliminate barriers identified under subsection (c).

    ‘(e) EFFECT OF SECTION- Nothing in this section affects the requirements of section 6002 (including the guidelines and specifications for implementing those requirements).’.

    (b) TABLE OF CONTENTS AMENDMENT- The table of contents of the Solid Waste Disposal Act is amended by adding after the item relating to section 6004 the following new item:

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

Subtitle B--Energy Assistance and State Programs

SEC. 1021. LIHEAP AND WEATHERIZATION ASSISTANCE.

    (a) LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM- Section 2602(b) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking ‘each of fiscal years 2002 through 2004’ and inserting ‘each of fiscal years 2002 and 2003, and $3,400,000,000 for each of fiscal years 2004 through 2006’.

    (b) WEATHERIZATION- 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 ‘$325,000,000 for fiscal year 2004, $400,000,000 for fiscal year 2005, and $500,000,000 for fiscal year 2006’.

    (c) REPORT TO CONGRESS- Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall transmit to the Congress a report on how the Low-Income Home Energy Assistance Program could be used more effectively to prevent loss of life from extreme temperatures. In preparing such report, the Secretary shall consult with appropriate officials in all 50 States and the District of Columbia.

SEC. 1022. STATE ENERGY PROGRAMS.

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

    ‘(g) The Secretary shall, at least once every 3 years, invite the Governor of each State to review and, if necessary, revise the energy conservation plan of such State submitted under subsection (b) or (e). Such reviews should consider the energy conservation plans of other States within the region, and identify opportunities and actions carried out in pursuit of common energy conservation goals.’.

    (b) STATE ENERGY EFFICIENCY GOALS- Section 364 of the Energy Policy and Conservation Act (42 U.S.C. 6324) is amended to read as follows:

‘STATE ENERGY EFFICIENCY GOALS

    ‘SEC. 364. Each State energy conservation plan with respect to which assistance is made available under this part on or after the date of enactment of the Energy Policy Act of 2003 shall contain a goal, consisting of an improvement of 25 percent or more in the efficiency of use of energy in the State concerned in calendar year 2010 as compared to calendar year 1990, and may contain interim goals.’.

    (c) AUTHORIZATION OF APPROPRIATIONS- Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking ‘for fiscal years 1999 through 2003 such sums as may be necessary’ and inserting ‘$100,000,000 for each of the fiscal years 2004 and 2005 and $125,000,000 for fiscal year 2006’.

SEC. 1023. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) DEFINITIONS- In this section:

      (1) ELIGIBLE STATE- The term ‘eligible State’ means a State that meets the requirements of subsection (b).

      (2) ENERGY STAR PROGRAM- The term ‘Energy Star program’ means the program established by section 324A of the Energy Policy and Conservation Act.

      (3) RESIDENTIAL ENERGY STAR PRODUCT- The term ‘residential Energy Star product’ means a product for a residence that is rated for energy efficiency under the Energy Star program.

      (4) STATE ENERGY OFFICE- The term ‘State energy office’ means the State agency responsible for developing State energy conservation plans under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322).

      (5) STATE PROGRAM- The term ‘State program’ means a State energy efficient appliance rebate program described in subsection (b)(1).

    (b) ELIGIBLE STATES- A State shall be eligible to receive an allocation under subsection (c) if the State--

      (1) establishes (or has established) a State energy efficient appliance rebate program to provide rebates to residential consumers for the purchase of residential Energy Star products to replace used appliances of the same type;

      (2) submits an application for the allocation at such time, in such form, and containing such information as the Secretary may require; and

      (3) provides assurances satisfactory to the Secretary that the State will use the allocation to supplement, but not supplant, funds made available to carry out the State program.

    (c) AMOUNT OF ALLOCATIONS-

      (1) IN GENERAL- Subject to paragraph (2), for each fiscal year, the Secretary shall allocate to the

State energy office of each eligible State to carry out subsection (d) an amount equal to the product obtained by multiplying the amount made available under subsection (f) for the fiscal year by the ratio that the population of the State in the most recent calendar year for which data are available bears to the total population of all eligible States in that calendar year.

      (2) MINIMUM ALLOCATIONS- For each fiscal year, the amounts allocated under this subsection shall be adjusted proportionately so that no eligible State is allocated a sum that is less than an amount determined by the Secretary.

    (d) USE OF ALLOCATED FUNDS- The allocation to a State energy office under subsection (c) may be used to pay up to 50 percent of the cost of establishing and carrying out a State program.

    (e) ISSUANCE OF REBATES- Rebates may be provided to residential consumers that meet the requirements of the State program. The amount of a rebate shall be determined by the State energy office, taking into consideration--

      (1) the amount of the allocation to the State energy office under subsection (c);

      (2) the amount of any Federal or State tax incentive available for the purchase of the residential Energy Star product; and

      (3) the difference between the cost of the residential Energy Star product and the cost of an appliance that is not a residential Energy Star product, but is of the same type as, and is the nearest capacity, performance, and other relevant characteristics (as determined by the State energy office) to the residential Energy Star product.

    (f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $50,000,000 for each of the fiscal years 2004 through 2008.

SEC. 1024. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) GRANTS- The Secretary of Energy may make grants to the State agency responsible for developing State energy conservation plans under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), or, if no such agency exists, a State agency designated by the Governor of the State, to assist units of local government in the State in improving the energy efficiency of public buildings and facilities--

      (1) through construction of new energy efficient public buildings that use at least 30 percent less energy than a comparable public building constructed in compliance with standards prescribed in chapter 8 of the 2000 International Energy Conservation Code, or a similar State code intended to achieve substantially equivalent efficiency levels; or

      (2) through renovation of existing public buildings to achieve reductions in energy use of at least 30 percent as compared to the baseline energy use in such buildings prior to renovation, assuming a 3-year, weather-normalized average for calculating such baseline.

    (b) ADMINISTRATION- State energy offices receiving grants under this section shall--

      (1) maintain such records and evidence of compliance as the Secretary may require; and

      (2) develop and distribute information and materials and conduct programs to provide technical services and assistance to encourage planning, financing, and design of energy efficient public buildings by units of local government.

    (c) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this section, there are authorized to be appropriated to the Secretary of Energy such sums as may be necessary for each of fiscal years 2004 through 2013. Not more than 30 percent of appropriated funds shall be used for administration.

SEC. 1025. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) GRANTS- The Secretary of Energy is authorized to make grants to units of local government, private, non-profit community development organizations, and Indian tribe economic development entities to improve energy efficiency, identify and develop alternative renewable and distributed energy supplies, and increase energy conservation in low income rural and urban communities.

    (b) PURPOSE OF GRANTS- The Secretary may make grants on a competitive basis for--

      (1) investments that develop alternative renewable and distributed energy supplies;

      (2) energy efficiency projects and energy conservation programs;

      (3) studies and other activities that improve energy efficiency in low income rural and urban communities;

      (4) planning and development assistance for increasing the energy efficiency of buildings and facilities; and

      (5) technical and financial assistance to local government and private entities on developing new renewable and distributed sources of power or combined heat and power generation.

    (c) DEFINITION- For purposes of this section, the term ‘Indian tribe’ means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

    (d) AUTHORIZATION OF APPROPRIATIONS- For the purposes of this section there are authorized to be appropriated to the Secretary of Energy $20,000,000 for fiscal year 2004 and each fiscal year thereafter through fiscal year 2006.

Subtitle C--Energy Efficient Products

SEC. 1041. 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.

    ‘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 and other forms of communication about products and buildings that meet the highest energy efficiency standards. Responsibilities under the program shall be divided between the Department of Energy and the Environmental Protection Agency consistent with the terms of agreements between the 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, including special outreach to small businesses;

      ‘(3) preserve the integrity of the Energy Star label; and

      ‘(4) solicit the comments of interested parties in establishing a new Energy Star product category or in revising a product category, and upon adoption of a new or revised product category provide an explanation of the decision that responds to significant public comments.’.

    (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. 1042. 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 at the end the following:

    ‘(c) HVAC MAINTENANCE- (1) 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, carry out a program to educate homeowners and small business owners concerning the energy savings resulting from properly conducted maintenance of air conditioning, heating, and ventilating systems.

    ‘(2) The Secretary shall carry out the program in cooperation with the Administrator of the Environmental Protection Agency and such other entities as the Secretary considers appropriate, including industry trade associations, industry members, and energy efficiency organizations.

    ‘(d) SMALL BUSINESS EDUCATION AND ASSISTANCE- The Administrator of the Small Business Administration, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and coordinate a Government-wide program, building on the existing Energy Star for Small Business Program, to assist small business to become more energy efficient, understand the cost savings obtainable through efficiencies, and identify financing options for energy efficiency upgrades. The Secretary and the Administrator shall make the program information available directly to small businesses and through other Federal agencies, including the Federal Emergency Management Agency, and the Department of Agriculture.’.

SEC. 1043. ADDITIONAL DEFINITIONS.

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

      ‘(32) The term ‘battery charger’ means a device that charges batteries for consumer products.

      ‘(33) The term ‘commercial refrigerator, freezer and refrigerator-freezer’ means a refrigerator, freezer or refrigerator-freezer that--

        ‘(A) is not a consumer product regulated under this Act; and

        ‘(B) incorporates most components involved in the vapor-compression cycle and the refrigerated compartment in a single package.

      ‘(34) The term ‘external power supply’ means an external power supply circuit that is used to convert household electric current into either DC current or lower-voltage AC current to operate a consumer product.

      ‘(35) The term ‘illuminated exit sign’ means a sign that--

        ‘(A) is designed to be permanently fixed in place to identify an exit; and

        ‘(B) consists of--

          ‘(i) an electrically powered integral light source that illuminates the legend ‘EXIT’ and any directional indicators; and

          ‘(ii) provides contrast between the legend, any directional indicators, and the background.

      ‘(36)(A) Except as provided in subparagraph (B), the term ‘low-voltage dry-type transformer’ means a transformer that--

        ‘(i) has an input voltage of 600 volts or less;

        ‘(ii) is air-cooled;

        ‘(iii) does not use oil as a coolant; and

        ‘(iv) is rated for operation at a frequency of 60 Hertz.

      ‘(B) The term ‘low-voltage dry-type transformer’ does not include--

        ‘(i) transformers with multiple voltage taps, with the highest voltage tap equaling at least 20 percent more than the lowest voltage tap;

        ‘(ii) transformers that are designed to be used in a special purpose application, such as transformers commonly known as drive transformers, rectifier transformers, autotransformers, Uninterruptible Power System transformers, impedance transformers, harmonic transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers; or

        ‘(iii) any transformer not listed in clause (ii) that is excluded by the Secretary by rule because the transformer is designed for a special application and the application of standards to the transformer would not result in significant energy savings.

      ‘(37) The term ‘standby mode’ means the lowest amount of electric power used by a household appliance when not performing its active functions, as defined on an individual product basis by the Secretary.

      ‘(38) The term ‘torchiere’ means a portable electric lamp with a reflector bowl that directs light upward so as to give indirect illumination.

      ‘(39) The term ‘transformer’ means a device consisting of two or more coils of insulated wire that transfers alternating current by electromagnetic induction from one coil to another to change the original voltage or current value.

      ‘(40) The term ‘unit heater’ means a self-contained fan-type heater designed to be installed within the heated space, except that such term does not include a warm air furnace.

      ‘(41) The term ‘traffic signal module’ means a standard 8-inch (200mm) or 12-inch (300mm) traffic signal indication, consisting of a light source, a lens, and all other parts necessary for operation, that communicates movement messages to drivers through red, amber, and green colors.’.

SEC. 1044. ADDITIONAL TEST PROCEDURES.

    (a) EXIT SIGNS- Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293) is amended by adding at the end the following:

      ‘(9) Test procedures for illuminated exit signs shall be based on the test method used under Version 2.0 of the Energy Star program of the Environmental Protection Agency for illuminated exit signs.

      ‘(10) Test procedures for low voltage dry-type distribution transformers shall be based on the ‘Standard Test Method for Measuring the Energy Consumption of Distribution Transformers’ prescribed by the National Electrical Manufacturers Association (NEMA TP 2-1998). The Secretary may review and revise this test procedure based on future revisions to such standard test method.

      ‘(11) Test procedures for traffic signal modules shall be based on the test method used under the Energy Star program of the Environmental Protection Agency for traffic signal modules, as in effect on the date of enactment of this paragraph.’.

    (b) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS- Section 323 of the Energy Policy and Conservation Act (42 U.S.C. 6293) is further amended by adding at the end the following:

    ‘(f) ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS- The Secretary shall within 24 months after the date of enactment of this subsection prescribe testing requirements for suspended ceiling fans, refrigerated bottled or canned beverage vending machines, commercial unit heaters, and commercial refrigerators, freezers and refrigerator-freezers. Such testing requirements shall be based on existing test procedures used in industry to the extent practical and reasonable. In the case of suspended ceiling fans, such test procedures shall include efficiency at both maximum output and at an output no more than 50 percent of the maximum output.’.

SEC. 1045. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL CONSUMER AND COMMERCIAL PRODUCTS.

    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-

      ‘(1) INITIAL RULEMAKING- (A) The Secretary shall, within 18 months after the date of enactment of this subsection, prescribe by notice and comment, definitions of standby mode and test procedures for the standby mode power use of battery chargers and external power supplies. In establishing these test procedures, the Secretary shall consider, among other factors, existing test procedures used for measuring energy consumption in standby mode and assess the current and projected future market for battery chargers and external power supplies. This assessment

shall include estimates of the significance of potential energy savings from technical improvements to these products and suggested product classes for standards. Prior to the end of this time period, the Secretary shall hold a scoping workshop to discuss and receive comments on plans for developing energy conservation standards for standby mode energy use for these products.

      ‘(B) The Secretary shall, within 3 years after the date of enactment of this subsection, issue a final rule that determines whether energy conservation standards shall be promulgated for battery chargers and external power supplies or classes thereof. For each product class, any such standards shall be set at the lowest level of standby energy use that--

        ‘(i) meets the criteria of subsections (o), (p), (q), (r), (s) and (t); and

        ‘(ii) will result in significant overall annual energy savings, considering both standby mode and other operating modes.

      ‘(2) DESIGNATION OF ADDITIONAL COVERED PRODUCTS- (A) Not later than 180 days after the date of enactment of this subsection, the Secretary shall publish for public comment and public hearing a notice to determine whether any noncovered products should be designated as covered products for the purpose of instituting a rulemaking under this section to determine whether an energy conservation standard restricting standby mode energy consumption, should be promulgated; except that any restriction on standby mode energy consumption shall be limited to major sources of such consumption.

      ‘(B) In making the determinations pursuant to subparagraph (A) of whether to designate new covered products and institute rulemakings, the Secretary shall, among other relevant factors and in addition to the criteria in section 322(b), consider--

        ‘(i) standby mode power consumption compared to overall product energy consumption; and

        ‘(ii) the priority and energy savings potential of standards which may be promulgated under this subsection compared to other required rulemakings under this section and the available resources of the Department to conduct such rulemakings.

      ‘(C) Not later than 1 year after the date of enactment of this subsection, the Secretary shall issue a determination of any new covered products for which he intends to institute rulemakings on standby mode pursuant to this section and he shall state the dates by which he intends to initiate those rulemakings.

      ‘(3) REVIEW OF STANDBY ENERGY USE IN COVERED PRODUCTS- In determining pursuant to section 323 whether test procedures and energy conservation standards pursuant to this section should be revised, the Secretary shall consider for covered products which are major sources of standby mode energy consumption whether to incorporate standby mode into such test procedures and energy conservation standards, taking into account, among other relevant factors, the criteria for non-covered products in subparagraph (B) of paragraph (2) of this subsection.

      ‘(4) RULEMAKING FOR STANDBY MODE- (A) Any rulemaking instituted under this subsection or for covered products under this section which restricts standby mode power consumption shall be subject to the criteria and procedures for issuing energy conservation standards set forth in this section and the criteria set forth in subparagraph (B) of paragraph (2) of this subsection.

      ‘(B) No standard can be proposed for new covered products or covered products in a standby mode unless the Secretary has promulgated applicable test procedures for each product pursuant to section 323.

      ‘(C) The provisions of section 327 shall apply to new covered products which are subject to the rulemakings for standby mode after a final rule has been issued.

      ‘(5) EFFECTIVE DATE- Any standard promulgated under this subsection shall be applicable to products manufactured or imported 3 years after the date of promulgation.

      ‘(6) VOLUNTARY PROGRAMS TO REDUCE STANDBY MODE ENERGY USE- The Secretary and the Administrator shall collaborate and develop programs, including programs pursuant to section 324A (relating to Energy Star Programs) and other voluntary industry agreements or codes of conduct, which are designed to reduce standby mode energy use.

    ‘(v) SUSPENDED CEILING FANS, VENDING MACHINES, UNIT HEATERS, AND COMMERCIAL REFRIGERATORS, FREEZERS AND REFRIGERATOR-FREEZERS- 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 suspended ceiling fans, refrigerated bottled or canned beverage vending machines, unit heaters, and commercial refrigerators, freezers and refrigerator-freezers. In establishing standards under this subsection, the Secretary shall use the criteria and procedures contained in subsections (l) and (m). Any standard prescribed under this subsection shall apply to products manufactured 3 years after the date of publication of a final rule establishing such standard.

    ‘(w) ILLUMINATED EXIT SIGNS- Illuminated exit signs manufactured on or after January 1, 2005 shall meet the Version 2.0 Energy Star Program performance requirements for illuminated exit signs prescribed by the Environmental Protection Agency

    ‘(x) TORCHIERES- Torchieres manufactured on or after January 1, 2005--

      ‘(1) shall consume not more than 190 watts of power; and

      ‘(2) shall not be capable of operating with lamps that total more than 190 watts.

    ‘(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS- The efficiency of low voltage dry-type transformers manufactured on or after January 1, 2005 shall be the Class I Efficiency Levels for low voltage dry-type transformers specified in Table 4-2 of the ‘Guide for Determining Energy Efficiency for Distribution Transformers’ published by the National Electrical Manufacturers Association (NEMA TP-1-1996).

    ‘(z) TRAFFIC SIGNAL MODULES- Traffic signal modules manufactured on or after January 1, 2006 shall meet the performance requirements used under the Energy Star program of the Environmental Protection Agency for traffic signals, as in effect on the date of enactment of this paragraph, and shall be installed with compatible, electrically-connected signal control interface devices and conflict monitoring systems.

    ‘(aa) EFFECTIVE DATE OF SECTION 327- The provisions of section 327 shall apply to products for which standards are set in subsections (v) through (z) of this section after the effective date for such standards.’.

SEC. 1046. ENERGY LABELING.

    (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER PRODUCT LABELING- Paragraph (2) of section 324(a) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the following:

    ‘(F) Not later than 3 months after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to consider the effectiveness of the current consumer products labeling program in assisting consumers in making purchasing decisions and improving energy efficiency and to consider changes to the labeling rules that would improve the effectiveness of consumer product labels. Such rulemaking shall be completed within 2 years after the date of enactment of this subparagraph.’.

    (b) RULEMAKING ON LABELING FOR ADDITIONAL PRODUCTS- Section 324(a) of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is further amended by adding at the end the following:

    ‘(5) The Secretary or the Commission, as appropriate, may for covered products referred to in subsections (u) through (z) of section 325, prescribe, by rule, pursuant to this section, labeling requirements for such products after a test procedure has been set pursuant to section 323.’.

SEC. 1047. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary of Energy shall contract with the National Academy of Sciences for a study, to be completed within 1 year of enactment of this Act, to examine whether the goals of energy efficiency standards are best served by measurement of energy consumed, and efficiency improvements, at the actual site of energy consumption, or through the full fuel cycle, beginning at the source of energy production. The Secretary shall submit the report to the Congress.

TITLE II--OIL AND GAS

Subtitle A--Alaska Natural Gas Pipeline

SEC. 2001. SHORT TITLE.

    This subtitle may be cited as the ‘Alaska Natural Gas Pipeline Act of 2003’.

SEC. 2002. FINDINGS AND PURPOSES.

    (a) FINDINGS- Congress finds the following:

      (1) Construction of a natural gas pipeline system from the Alaskan North Slope to United States markets is in the national interest and will enhance national energy security by providing access to the significant gas reserves in Alaska needed to meet the anticipated demand for natural gas.

      (2) The Commission issued a conditional certificate of public convenience and necessity for the Alaska natural gas transportation system, which remains in effect.

    (b) PURPOSES- The purposes of this subtitle are as follows:

      (1) To provide a statutory framework for the expedited approval, construction, and initial operation of an Alaska natural gas transportation project, as an alternative to the framework provided in the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et seq.), which remains in effect.

      (2) To establish a process for providing access to such transportation project in order to promote competition in the exploration, development, and production of Alaska natural gas.

      (3) To clarify Federal authorities under the Alaska Natural Gas Transportation Act of 1976.

SEC. 2003. DEFINITIONS.

    In this subtitle, the following definitions apply:

      (1) ALASKA NATURAL GAS- The term ‘Alaska natural gas’ means natural gas derived from the area of the State of Alaska lying north of 64 degrees North latitude.

      (2) ALASKA NATURAL GAS TRANSPORTATION PROJECT- The term ‘Alaska natural gas transportation project’ means any natural gas pipeline system that carries Alaska natural gas to the border between Alaska and Canada (including related facilities subject to the jurisdiction of the Commission) that is authorized under either--

        (A) the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et seq.); or

        (B) section 2004.

      (3) ALASKA NATURAL GAS TRANSPORTATION SYSTEM- The term ‘Alaska natural gas transportation system’ means the Alaska natural gas transportation project authorized under the Alaska Natural Gas Transportation Act of 1976 and designated and described in section 2 of the President’s decision.

      (4) COMMISSION- The term ‘Commission’ means the Federal Energy Regulatory Commission.

      (5) PRESIDENT’S DECISION- The term ‘President’s decision’ means the decision and report to Congress on the Alaska natural gas transportation system issued by the President on September 22, 1977, pursuant to section 7 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719e) and approved by Public Law 95-158 (91 Stat. 1268).

SEC. 2004. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.

    (a) AUTHORITY OF THE COMMISSION- Notwithstanding the provisions of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et seq.), the Commission may, pursuant to section 7(c) of the Natural Gas Act (15 U.S.C. 717f(c)), consider and act on an application for the issuance of a certificate of public convenience and necessity authorizing the construction and operation of an Alaska natural gas transportation project other than the Alaska natural gas transportation system.

    (b) ISSUANCE OF CERTIFICATE-

      (1) IN GENERAL- The Commission shall issue a certificate of public convenience and necessity authorizing the construction and operation of an Alaska natural gas transportation project under this section if the applicant has satisfied the requirements of section 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).

      (2) CONSIDERATIONS- In considering an application under this section, the Commission shall presume that--

        (A) a public need exists to construct and operate the proposed Alaska natural gas transportation project; and

        (B) sufficient downstream capacity will exist to transport the Alaska natural gas moving through such project to markets in the contiguous United States.

    (c) EXPEDITED APPROVAL PROCESS- The Commission shall issue a final order granting or denying any application for a certificate of public convenience and necessity under section 7(c) of the Natural Gas Act (15 U.S.C. 717f(c)) and this section not more than 60 days after the issuance of the final environmental impact statement for that project pursuant to section 2005.

    (d) 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.

    (e) OPEN SEASON- Except where an expansion is ordered pursuant to section 2006, initial or expansion capacity on any Alaska natural gas transportation project shall be allocated in accordance with procedures to be established by the Commission in regulations governing the conduct of open seasons for such project. Such procedures shall include the criteria for and timing of any open seasons, be consistent with the purposes set forth in section 2002(b)(2), and, for any open season for capacity beyond the initial capacity, provide the opportunity for the transportation of natural gas other than from the Prudhoe Bay and Point Thompson units. The Commission shall issue such regulations not later than 120 days after the date of enactment of this Act.

    (f) PROJECTS IN THE CONTIGUOUS UNITED STATES- Applications for additional or expanded pipeline facilities that may be required to transport Alaska natural gas from Canada to markets in the contiguous United States may be made pursuant to the Natural Gas Act. To the extent such pipeline facilities include the expansion of any facility constructed pursuant to the Alaska Natural Gas Transportation Act of 1976, the provisions of that Act shall continue to apply.

    (g) STUDY OF IN-STATE NEEDS- The holder of the certificate of public convenience and necessity issued, modified, or amended by the Commission for an Alaska natural gas transportation project shall demonstrate that it has conducted a study of Alaska in-State needs, including tie-in points along the Alaska natural gas transportation project for in-State access.

    (h) ALASKA ROYALTY GAS- The Commission, upon the request of the State of Alaska and after a hearing, may provide for reasonable access to the Alaska natural gas transportation project for the State of Alaska or its designee for the transportation of the State’s royalty gas for local consumption needs within the State; except that the rates of existing shippers of subscribed capacity on such project shall not be increased as a result of such access.

    (i) REGULATIONS- The Commission may issue regulations to carry out the provisions of this section.

SEC. 2005. ENVIRONMENTAL REVIEWS.

    (a) COMPLIANCE WITH NEPA- The issuance of a certificate of public convenience and necessity authorizing the construction and operation of any Alaska natural gas transportation project under section 2004 shall be treated as a major Federal action significantly affecting the quality of the human environment within the meaning of section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

    (b) DESIGNATION OF LEAD AGENCY- The Commission shall be the lead agency for purposes of complying with the National Environmental Policy Act of 1969, and shall be responsible for preparing the statement required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with respect to an Alaska natural gas transportation project under section 2004. The Commission shall prepare a single environmental statement under this section, which shall consolidate the environmental reviews of all Federal agencies considering any aspect of the project.

    (c) OTHER AGENCIES- All Federal agencies considering aspects of the construction and operation of an Alaska

natural gas transportation project under section 2004 shall cooperate with the Commission, and shall comply with deadlines established by the Commission in the preparation of the statement under this section. The statement prepared under this section shall be used by all such agencies to satisfy their responsibilities under section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) with respect to such project.

    (d) EXPEDITED PROCESS- The Commission shall issue a draft statement under this section not later than 12 months after the Commission determines the application to be complete and shall issue the final statement not later than 6 months after the Commission issues the draft statement, unless the Commission for good cause finds that additional time is needed.

SEC. 2006. PIPELINE EXPANSION.

    (a) AUTHORITY- With respect to any Alaska natural gas transportation project, upon the request of one or more persons and after giving notice and an opportunity for a hearing, the Commission may order the expansion of such project if it determines that such expansion is required by the present and future public convenience and necessity.

    (b) REQUIREMENTS- Before ordering an expansion, the Commission shall--

      (1) approve or establish rates for the expansion service that are designed to ensure the recovery, on an incremental or rolled-in basis, of the cost associated with the expansion (including a reasonable rate of return on investment);

      (2) ensure that the rates as established do not require existing shippers on the Alaska natural gas transportation project to subsidize expansion shippers;

      (3) find that the proposed shipper will comply with, and the proposed expansion and the expansion of service will be undertaken and implemented based on, terms and conditions consistent with the then-effective tariff of the Alaska natural gas transportation project;

      (4) find that the proposed facilities will not adversely affect the financial or economic viability of the Alaska natural gas transportation project;

      (5) find that the proposed facilities will not adversely affect the overall operations of the Alaska natural gas transportation project;

      (6) find that the proposed facilities will not diminish the contract rights of existing shippers to previously subscribed certificated capacity;

      (7) ensure that all necessary environmental reviews have been completed; and

      (8) find that adequate downstream facilities exist or are expected to exist to deliver incremental Alaska natural gas to market.

    (c) REQUIREMENT FOR A FIRM TRANSPORTATION AGREEMENT- Any order of the Commission issued pursuant to this section shall be null and void unless the person or persons requesting the order executes a firm transportation agreement with the Alaska natural gas transportation project within a reasonable period of time as specified in such order.

    (d) LIMITATION- Nothing in this section shall be construed to expand or otherwise affect any authorities of the Commission with respect to any natural gas pipeline located outside the State of Alaska.

    (e) REGULATIONS- The Commission may issue regulations to carry out the provisions of this section.

SEC. 2007. FEDERAL COORDINATOR.

    (a) ESTABLISHMENT- There is established, as an independent office in the executive branch, the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects.

    (b) FEDERAL COORDINATOR- The Office shall be headed by a Federal Coordinator for Alaska Natural Gas Transportation Projects, who shall--

      (1) be appointed by the President, by and with the advice of the Senate;

      (2) hold office at the pleasure of the President; and

      (3) be compensated at the rate prescribed for level III of the Executive Schedule (5 U.S.C. 5314).

    (c) DUTIES- The Federal Coordinator shall be responsible for--

      (1) coordinating the expeditious discharge of all activities by Federal agencies with respect to an Alaska natural gas transportation project; and

      (2) ensuring the compliance of Federal agencies with the provisions of this subtitle.

    (d) REVIEWS AND ACTIONS OF OTHER FEDERAL AGENCIES-

      (1) EXPEDITED REVIEWS AND ACTIONS- All reviews conducted and actions taken by any Federal officer or agency relating to an Alaska natural gas transportation project authorized under this section shall be expedited, in a manner consistent with completion of the necessary reviews and approvals by the deadlines set forth in this subtitle.

      (2) PROHIBITION ON CERTAIN TERMS AND CONDITIONS- Except with respect to Commission actions under sections 2004, 2005, and 2006, no Federal officer or agency shall have the authority to include terms and conditions that are permitted, but not required, by law on any certificate, right-of-way, permit, lease, or other authorization issued to an Alaska natural gas transportation project if the Federal Coordinator determines that the terms and conditions would prevent or impair in any significant respect the expeditious construction and operation of the project.

      (3) PROHIBITION ON CERTAIN ACTIONS- Except with respect to Commission actions under sections 2004, 2005, and 2006, unless required by law, no Federal officer or agency shall add to, amend, or abrogate any certificate, right-of-way, permit, lease, or other authorization issued to an Alaska natural gas transportation project if the Federal Coordinator determines that such action would prevent or impair in any significant respect the expeditious construction and operation of the project.

    (e) STATE COORDINATION- The Federal Coordinator shall enter into a Joint Surveillance and Monitoring Agreement, approved by the President and the Governor of Alaska, with the State of Alaska similar to that in effect during construction of the Trans-Alaska Oil Pipeline to monitor the construction of the Alaska natural gas transportation project. The Federal Government shall have primary surveillance and monitoring responsibility where the Alaska natural gas transportation project crosses Federal lands and private lands, and the State government shall have primary surveillance and monitoring responsibility where the Alaska natural gas transportation project crosses State lands.

    (f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS AND AUTHORITY- Upon appointment of the Federal Coordinator by the President, all of the functions and authority of the Office of Federal Inspector of Construction for the Alaska Natural Gas Transportation System vested in the Secretary of Energy pursuant to section 3012(b) of Public Law 102-486 (15 U.S.C. 719e(b)), including all functions and authority described and enumerated in the Reorganization Plan No. 1 of 1979 (44 Fed. Reg. 33,663), Executive Order No. 12142 of June 21, 1979 (44 Fed. Reg. 36,927), and section 5 of the President’s decision, shall be transferred to the Federal Coordinator.

SEC. 2008. JUDICIAL REVIEW.

    (a) EXCLUSIVE JURISDICTION- Except for review by the Supreme Court of the United States on writ of certiorari, the United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction to determine--

      (1) the validity of any final order or action (including a failure to act) of any Federal agency or officer under this subtitle;

      (2) the constitutionality of any provision of this subtitle, or any decision made or action taken under this subtitle; or

      (3) the adequacy of any environmental impact statement prepared under the National Environmental Policy Act of 1969 with respect to any action under this subtitle.

    (b) DEADLINE FOR FILING CLAIM- Claims arising under this subtitle may be brought not later than 60 days after the date of the decision or action giving rise to the claim.

    (c) EXPEDITED CONSIDERATION- The United States Court of Appeals for the District of Columbia Circuit shall set any action brought under subsection (a) for expedited consideration, taking into account the national interest as described in section 2002(a).

    (d) AMENDMENT TO ANGTA- Section 10(c) of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719h) is amended by inserting after paragraph (1) the following:

    ‘(2) The United States Court of Appeals for the District of Columbia Circuit shall set any action brought under this section for expedited consideration, taking into account the national interest described in section 2.’.

SEC. 2009. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.

    (a) LOCAL DISTRIBUTION- Any facility receiving natural gas from the Alaska natural gas transportation project for delivery to consumers within the State of Alaska shall be deemed to be a local distribution facility within the meaning of section 1(b) of the Natural Gas Act (15 U.S.C. 717(b)), and therefore not subject to the jurisdiction of the Commission.

    (b) ADDITIONAL PIPELINES- Nothing in this subtitle, except as provided in section 2004(d), shall preclude or affect a future gas pipeline that may be constructed to deliver natural gas to Fairbanks, Anchorage, Matanuska-Susitna Valley, or the Kenai peninsula or Valdez or any other site in the State of Alaska for consumption within or distribution outside the State of Alaska.

    (c) RATE COORDINATION- Pursuant to the Natural Gas Act, the Commission shall establish rates for the transportation of natural gas on the Alaska natural gas transportation project. In exercising such authority, the Commission, pursuant to section 17(b) of the Natural Gas Act (15 U.S.C. 717p(b)), shall confer with the State of Alaska regarding rates (including rate settlements) applicable to natural gas transported on and delivered from the Alaska natural gas transportation project for use within the State of Alaska.

SEC. 2010. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

    (a) REQUIREMENT OF STUDY- If no application for the issuance of a certificate or amended certificate of public convenience and necessity authorizing the construction and operation of an Alaska natural gas transportation project has been filed with the Commission not later than 18 months after the date of enactment of this Act, the Secretary of Energy shall conduct a study of alternative approaches to the construction and operation of the project.

    (b) SCOPE OF STUDY- The study shall consider the feasibility of establishing a Government corporation to construct an Alaska natural gas transportation project, and alternative means of providing Federal financing and ownership (including alternative combinations of Government and private corporate ownership) of the project.

    (c) CONSULTATION- In conducting the study, the Secretary of Energy shall consult with the Secretary of the

Treasury and the Secretary of the Army (acting through the Commanding General of the Corps of Engineers).

    (d) REPORT- If the Secretary of Energy is required to conduct a study under subsection (a), the Secretary shall submit a report containing the results of the study, the Secretary’s recommendations, and any proposals for legislation to implement the Secretary’s recommendations to Congress.

SEC. 2011. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.

    (a) SAVINGS CLAUSE- Nothing in this subtitle affects any decision, certificate, permit, right-of-way, lease, or other authorization issued under section 9 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) or any Presidential findings or waivers issued in accordance with that Act.

    (b) CLARIFICATION OF AUTHORITY TO AMEND TERMS AND CONDITIONS TO MEET CURRENT PROJECT REQUIREMENTS- Any Federal officer or agency responsible for granting or issuing any certificate, permit, right-of-way, lease, or other authorization under section 9 of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) may add to, amend, or abrogate any term or condition included in such certificate, permit, right-of-way, lease, or other authorization to meet current project requirements (including the physical design, facilities, and tariff specifications), so long as such action does not compel a change in the basic nature and general route of the Alaska natural gas transportation system as designated and described in section 2 of the President’s decision, or would otherwise prevent or impair in any significant respect the expeditious construction and initial operation of such transportation system.

    (c) UPDATED ENVIRONMENTAL REVIEWS- The Secretary of Energy shall require the sponsor of the Alaska natural gas transportation system to submit such updated environmental data, reports, permits, and impact analyses as the Secretary determines are necessary to develop detailed terms, conditions, and compliance plans required by section 5 of the President’s decision.

SEC. 2012. SENSE OF CONGRESS.

    It is the sense of Congress that an Alaska natural gas transportation project will provide significant economic benefits to the United States and Canada. In order to maximize those benefits, Congress urges the sponsors of the pipeline project to make every effort to use steel that is manufactured or produced in North America and to negotiate a project labor agreement to expedite construction of the pipeline.

SEC. 2013. PARTICIPATION OF SMALL BUSINESS CONCERNS.

    (a) SENSE OF CONGRESS- It is the sense of Congress that an Alaska natural gas transportation project will provide significant economic benefits to the United States and Canada. In order to maximize those benefits, Congress urges the sponsors of the pipeline project to maximize the participation of small business concerns in contracts and subcontracts awarded in carrying out the project.

    (b) STUDY-

      (1) IN GENERAL- The Comptroller General shall conduct a study on the extent to which small business concerns participate in the construction of oil and gas pipelines in the United States.

      (2) REPORT- Not later that 1 year after the date of enactment of this Act, the Comptroller General shall transmit to Congress a report containing the results of the study.

      (3) UPDATES- The Comptroller General shall update the study at least once every 5 years and transmit to Congress a report containing the results of the update.

      (4) APPLICABILITY- After the date of completion of the construction of an Alaska natural gas transportation project, this subsection shall no longer apply.

    (c) SMALL BUSINESS CONCERN DEFINED- In this section, the term ‘small business concern’ has the meaning given such term in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

SEC. 2014. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.

    (a) ESTABLISHMENT OF PROGRAM- The Secretary of Labor (in this section referred to as the ‘Secretary’) may make grants to the Alaska Department of Labor and Workforce Development to--

      (1) develop a plan to train, through the workforce investment system established in the State of Alaska under the Workforce Investment Act of 1998 (112 Stat. 936 et seq.), adult and dislocated workers, including Alaska Natives, in urban and rural Alaska in the skills required to construct and operate an Alaska gas pipeline system; and

      (2) implement the plan developed pursuant to paragraph (1).

    (b) REQUIREMENTS FOR PLANNING GRANTS- The Secretary may make a grant under subsection (a)(1) only if--

      (1) the Governor of Alaska certifies in writing to the Secretary that there is a reasonable expectation that construction of an Alaska gas pipeline will commence within 3 years after the date of such certification; and

      (2) the Secretary of the Interior concurs in writing to the Secretary with the certification made under paragraph (1).

    (c) REQUIREMENTS FOR IMPLEMENTATION GRANTS- The Secretary may make a grant under subsection (a)(2) only if--

      (1) the Secretary has approved a plan developed pursuant to subsection (a)(1);

      (2) the Governor of Alaska requests the grant funds and certifies in writing to the Secretary that there is a reasonable expectation that the construction of an Alaska gas pipeline system will commence within 2 years after the date of such certification;

      (3) the Secretary of the Interior concurs in writing to the Secretary with the certification made under paragraph (2) after considering--

        (A) the status of necessary State and Federal permits;

        (B) the availability of financing for the pipeline project; and

        (C) other relevant factors and circumstances.

    (d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Labor

such sums as may be necessary, but not to exceed $20,000,000, to carry out this section.

Subtitle B--Strategic Petroleum Reserve

SEC. 2101. FULL CAPACITY OF STRATEGIC PETROLEUM RESERVE.

    The President shall--

      (1) fill the Strategic Petroleum Reserve established pursuant to part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231 et seq.) to full capacity as soon as practicable;

      (2) acquire petroleum for the Strategic Petroleum Reserve by the most practicable and cost-effective means, with consideration being given to domestically produced petroleum, including the acquisition of crude oil the United States is entitled to receive in kind as royalties from production on Federal lands; and

      (3) ensure that the fill rate minimizes impacts on petroleum markets.

SEC. 2102. STRATEGIC PETROLEUM RESERVE EXPANSION.

    (a) PLAN- Not later than 180 days after the date of the enactment of this Act, the Secretary of Energy shall transmit to the Congress a plan for the expansion of the Strategic Petroleum Reserve to 1,000,000,000 barrels, including--

      (1) plans for the elimination of infrastructure impediments to maximum drawdown capability;

      (2) a schedule for the completion of all required environmental reviews;

      (3) provision for consultation with Federal and State environmental agencies;

      (4) a schedule and procedures for site selection; and

      (5) anticipated annual budget requests.

    (b) CONSTRUCTION OF ADDITIONAL CAPACITY- The Secretary of Energy shall acquire property and complete construction for the expansion of the Strategic Petroleum Reserve in accordance with the plan transmitted under subsection (a).

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy $1,500,000,000 for carrying out this section, to remain available until expended.

SEC. 2103. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM RESERVE AND OTHER ENERGY PROGRAMS.

    (a) AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION ACT- Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 et seq.) is amended--

      (1) by striking section 166 (42 U.S.C. 6246) and inserting--

‘AUTHORIZATION OF APPROPRIATIONS

    ‘SEC. 166. There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this part and part D, to remain available until expended.’;

      (2) by striking section 186 (42 U.S.C. 6250e); and

      (3) by striking part E (42 U.S.C. 6251; relating to the expiration of title I of the Act).

    (b) AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CONSERVATION ACT- Title II of the Energy Policy and Conservation Act (42 U.S.C. 6271 et seq.) is amended--

      (1) by inserting before section 273 (42 U.S.C. 6283) the following:

‘Part C--Summer Fill and Fuel Budgeting Programs’;

      (2) by striking section 273(e) (42 U.S.C. 6283(e); relating to the expiration of summer fill and fuel budgeting programs); and

      (3) by striking part D (42 U.S.C. 6285; relating to the expiration of title II of the Act).

    (c) TECHNICAL AMENDMENTS- The table of contents for the Energy Policy and Conservation Act is amended--

      (1) by inserting after the items relating to part C of title I the following:

‘Part D--Northeast Home Heating Oil Reserve

      ‘Sec. 181. Establishment.

      ‘Sec. 182. Authority.

      ‘Sec. 183. Conditions for release; plan.

      ‘Sec. 184. Northeast Home Heating Oil Reserve Account.

      ‘Sec. 185. Exemptions.’;

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

‘Part C--Summer Fill and Fuel Budgeting Programs

      ‘Sec. 273. Summer fill and fuel budgeting programs.’; and

      (3) by striking the items relating to part D of title II.

    (d) AMENDMENT TO THE ENERGY POLICY AND CONSERVATION ACT- Section 183(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6250b(b)(1)) is amended by inserting ‘(considered as a heating season average)’ after ‘mid-October through March’.

Subtitle C--Hydraulic Fracturing

SEC. 2201. HYDRAULIC FRACTURING.

    Paragraph (1) of section 1421(d) of the Safe Drinking Water Act (42 U.S.C. 300h(d)) is amended to read as follows:

      ‘(1) The term ‘underground injection’--

        ‘(A) means the subsurface emplacement of fluids by well injection; and

        ‘(B) excludes--

          ‘(i) the underground injection of natural gas for purposes of storage; and

          ‘(ii) the underground injection of fluids or propping agents pursuant to hydraulic fracturing operations related to oil or gas production activities.’.

Subtitle D--Unproven Oil and Natural Gas Reserves Recovery Program

SEC. 2301. PROGRAM.

    The Secretary shall carry out a program to demonstrate technologies for the recovery of oil and natural gas reserves from reservoirs described in section 2302.

SEC. 2302. ELIGIBLE RESERVOIRS.

    The program under this subtitle shall only address oil and natural gas reservoirs with 1 or more of the following characteristics:

      (1) Complex geology involving rapid changes in the type and quality of the oil reservoir across the reservoir.

      (2) Low reservoir pressure.

      (3) Unconventional natural gas reservoirs in coalbeds, tight sands, or shales.

SEC. 2303. FOCUS AREAS.

    The program under this subtitle may focus on areas including coal-bed methane, deep drilling, natural gas production from tight sands, natural gas production from gas shales, innovative production techniques (including horizontal drilling, fracture detection methodologies, and three-dimensional seismic), and enhanced recovery techniques.

SEC. 2304. LIMITATION ON LOCATION OF ACTIVITIES.

    Activities under this subtitle shall be carried out only--

      (1) in--

        (A) areas onshore in the United States on public land administered by the Secretary of the Interior available for oil and gas leasing, where consistent with applicable law and land use plans; and

        (B) areas onshore in the United States on State or private land, subject to applicable law; and

      (2) with the approval of the appropriate Federal or State land management agency or private land owner.

SEC. 2305. PROGRAM ADMINISTRATION.

    (a) ROLE OF THE SECRETARY- The Secretary shall have ultimate responsibility for, and oversight of, all aspects of the program under this subtitle.

    (b) ROLE OF THE PROGRAM CONSORTIUM-

      (1) IN GENERAL- The Secretary shall contract with a consortium to--

        (A) manage awards pursuant to subsection (e)(4);

        (B) make recommendations to the Secretary for project solicitations;

        (C) disburse funds awarded under subsection (e) as directed by the Secretary in accordance with the annual plan under subsection (d); and

        (D) carry out other activities assigned to the program consortium by this section.

      (2) LIMITATION- The Secretary may not assign any activities to the program consortium except as specifically authorized under this section.

      (3) CONFLICT OF INTEREST- (A) The Secretary shall establish procedures--

        (i) to ensure that each board member, officer, or employee of the program consortium who is in a decisionmaking capacity under subsection (e)(3) or (4) shall disclose to the Secretary any financial interests in, or financial relationships with, applicants for or recipients of awards under this section, including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; and

        (ii) to require any board member, officer, or employee with a financial relationship or interest disclosed under clause (i) to recuse himself or herself from any review under subsection (e)(3) or oversight under subsection (e)(4) with respect to such applicant or recipient.

      (B) The Secretary may disqualify an application or revoke an award under this section if a board member, officer, or employee has failed to comply with procedures required under subparagraph (A)(ii).

    (c) SELECTION OF THE PROGRAM CONSORTIUM-

      (1) IN GENERAL- The Secretary shall select the program consortium through an open, competitive process.

      (2) MEMBERS- The program consortium may include corporations and institutions of higher education. The Secretary shall give preference in the selection of the program consortium to applicants with broad representation from the various major oil and natural gas basins in the United States. After submitting a proposal under paragraph (4), the program consortium may not add members without the consent of the Secretary.

      (3) TAX STATUS- The program consortium shall be an entity that is exempt from tax under section 501(c)(3) of the Internal Revenue Code of 1986.

      (4) SCHEDULE- Not later than 90 days after the date of enactment of this Act, the Secretary shall solicit proposals for the creation of the program consortium, which must be submitted not less than 180 days after the date of enactment of this Act. The Secretary shall select the program consortium not later than 240 days after such date of enactment.

      (5) APPLICATION- Applicants shall submit a proposal including such information as the Secretary may require. At a minimum, each proposal shall--

        (A) list all members of the consortium;

        (B) fully describe the structure of the consortium, including any provisions relating to intellectual property; and

        (C) describe how the applicant would carry out the activities of the program consortium under this section.

      (6) ELIGIBILITY- To be eligible to be selected as the program consortium, an applicant must be an entity whose members collectively have demonstrated capabilities in planning and managing programs for the production of oil or natural gas.

      (7) CRITERION- The Secretary may consider the amount of the fee an applicant proposes to receive under subsection (f) in selecting a consortium under this section.

    (d) ANNUAL PLAN-

      (1) IN GENERAL- The program under this subtitle shall be carried out pursuant to an annual plan prepared by the Secretary in accordance with paragraph (2).

      (2) DEVELOPMENT- (A) Before drafting an annual plan under this subsection, the Secretary shall solicit specific written recommendations from the program consortium for each element to be addressed in the plan, including those described in paragraph (4). The Secretary may request that the program consortium submit its recommendations in the form of a draft annual plan.

      (B) The Secretary shall submit the recommendations of the program consortium under subparagraph (A) to the Advisory Committee for review, and the Advisory Committee shall provide to the Secretary written comments by a date determined by the Secretary. The Secretary may also solicit comments from any other experts.

      (C) The Secretary shall consult regularly with the program consortium throughout the preparation of the annual plan.

      (3) PUBLICATION- The Secretary shall transmit to the Congress and publish in the Federal Register the annual plan, along with any written comments received under paragraph (2)(A) and (B). The annual plan shall be transmitted and published not later than 60 days after the date of enactment of an Act making appropriations for a fiscal year for the program under this subtitle.

      (4) CONTENTS- The annual plan shall describe the ongoing and prospective activities of the program under this subtitle and shall include--

        (A) a list of any solicitations for awards that the Secretary plans to issue to carry out activities, including the topics for such work, who would be eligible to apply, selection criteria, and the duration of awards; and

        (B) a description of the activities expected of the program consortium to carry out subsection (e)(4).

    (e) AWARDS-

      (1) IN GENERAL- The Secretary shall make awards to carry out activities under the program under this subtitle. The program consortium shall not be eligible to receive such awards, but members of the program consortium may receive such awards.

      (2) PROPOSALS-

        (A) SOLICITATION- The Secretary shall solicit proposals for awards under this subsection in such manner and at such time as the Secretary may prescribe, in consultation with the program consortium.

        (B) CONTENTS- Each proposal submitted shall include the following:

          (i) An estimate of the potential unproven reserves in the reservoir, established by a registered petroleum engineer.

          (ii) An estimate of the potential for success of the project.

          (iii) A detailed project plan.

          (iv) A detailed analysis of the costs associated with the project.

          (v) A time frame for project completion.

          (vi) Evidence that any lienholder on the project will subordinate its interests to the extent necessary to ensure that the Federal government receives its portion of any revenues pursuant to section 2308.

          (vii) Such other matters as the Secretary considers appropriate.

      (3) REVIEW- The Secretary shall make awards under this subsection through a competitive process, which shall include a review by individuals selected by the Secretary. Such individuals shall include, for each application, Federal officials, the program consortium, and non-Federal experts who are not board members, officers, or employees of the program consortium or of a member of the program consortium.

      (4) OVERSIGHT- (A) The program consortium shall oversee the implementation of awards under this subsection, consistent with the annual plan under subsection (d), including disbursing funds and monitoring activities carried out under such awards for compliance with the terms and conditions of the awards.

      (B) Nothing in subparagraph (A) shall limit the authority or responsibility of the Secretary to oversee awards, or limit the authority of the Secretary to review or revoke awards.

      (C) The Secretary shall provide to the program consortium the information necessary for the program consortium to carry out its responsibilities under this paragraph.

    (f) FEE- To compensate the program consortium for carrying out its activities under this section, the Secretary shall provide to the program consortium a fee in an amount not to exceed 7.5 percent of the amounts awarded under subsection (e) for each fiscal year.

    (g) DISALLOWED EXPENSES- No portion of any award shall be used by a recipient for general or administrative expenses of any kind.

    (h) AUDIT- The Secretary shall retain an independent, commercial auditor to determine the extent to which funds provided to the program consortium, and funds provided under awards made under subsection (e), have been expended in a manner consistent with the purposes and requirements of this subtitle. The auditor shall transmit a report annually to the Secretary, who shall transmit the report to Congress, along with a plan to remedy any deficiencies cited in the report.

SEC. 2306. ADVISORY COMMITTEE.

    (a) ESTABLISHMENT- Not later than 270 days after the date of enactment of this Act, the Secretary shall establish an Advisory Committee.

    (b) MEMBERSHIP- The Advisory Committee shall be composed of members appointed by the Secretary and including--

      (1) individuals with extensive experience or operational knowledge of oil and natural gas production, including independent oil and gas producers;

      (2) individuals broadly representative of oil and natural gas production; and

      (3) no individuals who are Federal employees.

    (c) DUTIES- The Advisory Committee shall advise the Secretary on the development and implementation of activities under this subtitle.

    (d) COMPENSATION- A member of the Advisory Committee shall serve without compensation but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code.

    (e) PROHIBITION- The Advisory Committee shall not make recommendations on funding awards to consortia or for specific projects.

SEC. 2307. LIMITS ON PARTICIPATION.

    An entity shall be eligible to receive an award under this subtitle only if the Secretary finds--

      (1) that the entity’s participation in the program under this subtitle would be in the economic interest of the United States;

      (2) that the entity is a United States-owned entity organized under the laws of the United States with production levels of less than 1,000 barrels per day of oil equivalent; and

      (3) that the entity has demonstrated that nongovernmental third party sources of financing are not available for the proposal project.

SEC. 2308. PAYMENTS TO FEDERAL GOVERNMENT.

    (a) INITIAL RATE- Until the amount of a grant under this subtitle has been fully repaid to the Federal Government under this subsection, 95 percent of all revenues derived from increased incremental production attributable to participation in the program under this subtitle shall be paid to the Secretary by the purchaser of such increased production.

    (b) RATE AFTER REPAYMENT- After the Federal Government has been fully repaid under subsection (a), 5 percent of all revenues derived from increased incremental production attributable to participation in the program under this subtitle shall be paid to the Secretary by the purchaser of such increased production.

SEC. 2309. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for carrying out this subtitle $100,000,000, to remain available until expended.

SEC. 2310. PUBLIC AVAILABILITY OF PROJECT RESULTS AND METHODOLOGIES.

    The results of any project undertaken pursuant to this subtitle and the methodologies used to achieve those results shall be made public by the Secretary. The methodologies used shall not be proprietary so that such methodologies may be used for other projects by persons not seeking awards pursuant to this subtitle.

SEC. 2311. SUNSET.

    The authority provided by this subtitle shall terminate on September 30, 2010.

SEC. 2312. DEFINITIONS.

    In this subtitle:

      (1) PROGRAM CONSORTIUM- The term ‘program consortium’ means the consortium selected under section 2305(c).

      (2) REMOTE OR INCONSEQUENTIAL- The term ‘remote or inconsequential’ has the meaning given that term in regulations issued by the Office of Government Ethics under section 208(b)(2) of title 18, United States Code.

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

Subtitle E--Miscellaneous

SEC. 2401. APPEALS RELATING TO PIPELINE CONSTRUCTION PROJECTS.

    (a) AGENCY OF RECORD- Any Federal administrative agency proceeding that is an appeal or review of Federal authority for an interstate natural gas pipeline construction project, including construction of natural gas storage and liquefied natural gas facilities, shall use as its exclusive record for all purposes the record compiled by the Federal Energy Regulatory Commission pursuant to such Commission’s proceeding under section 7 of the Natural Gas Act.

    (b) SENSE OF THE CONGRESS- It is the sense of the Congress that all Federal and State agencies with jurisdiction over interstate natural gas pipeline construction activities should coordinate their proceedings within the time frames established by the Federal Energy Regulatory Commission while it is acting pursuant to section 7 of the Natural Gas Act to determine whether a proposed interstate natural gas pipeline is in the public convenience and necessity.

SEC. 2402. NATURAL GAS MARKET DATA TRANSPARENCY.

    (a) ESTABLISHMENT OF SYSTEM- Not later than 180 days after the date of enactment of this Act, the Federal Energy Regulatory Commission shall issue rules authorizing or establishing an electronic information system to provide the Commission and the public with timely access to such information as is necessary or appropriate to facilitate price transparency and participation in natural gas markets. Such system shall provide information about the market price of natural gas sold in interstate commerce.

    (b) DATA SUBJECT TO DISCLOSURE- Rules issued under subsection (a) shall require public availability only of--

      (1) aggregate data; and

      (2) transaction-specific data that is otherwise required by the Federal Energy Regulatory Commission to be made public.

    (c) CIVIL PENALTY- Any person who violates any provision of a rule issued under subsection (a) shall be subject to a civil penalty of not more than $1,000,000 for each day that such violation continues. Such penalty shall be assessed by the Federal Energy Regulatory Commission, after notice and opportunity for public hearing. In determining the amount of a proposed penalty, the Commission shall take into consideration the seriousness of the violation and the efforts of such person to remedy the violation in a timely manner.

SEC. 2403. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

    Section 502 of the Federal Water Pollution Control Act (33 U.S.C. 1362) is amended by adding at the end the following:

    ‘(24) The term ‘oil and gas exploration and production’ means all field operations necessary for both exploration and production of oil and gas, including activities necessary to prepare a site for drilling and for the movement and placement of drilling equipment, whether or not such activities may be considered construction activities.’.

TITLE III--HYDROELECTRIC RELICENSING

Subtitle A--Alternative Conditions

SEC. 3001. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) FEDERAL RESERVATIONS- Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is amended by inserting after ‘adequate protection and utilization of such reservation.’ at the end of the first proviso the following: ‘The license applicant shall be entitled to a determination on the record, after opportunity for an agency trial-type hearing of any disputed issues of material fact, with respect to such conditions.’.

    (b) FISHWAYS- Section 18 of the Federal Power Act (16 U.S.C. 811) is amended by inserting after ‘and such fishways as may be prescribed by the Secretary of Commerce.’ the following: ‘The license applicant shall be entitled to a determination on the record, after opportunity for an agency trial-type hearing of any disputed issues of material fact, with respect to such fishways.’.

    (c) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS- Part I of the Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the following new section at the end thereof:

‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

    ‘(a) ALTERNATIVE CONDITIONS- (1) Whenever any person applies for a license for any project works within any reservation of the United States, and the Secretary of the department under whose supervision such reservation falls (referred to in this subsection as ‘the Secretary’) deems a condition to such license to be necessary under the first proviso of section 4(e), the license applicant may propose an alternative condition.

    ‘(2) Notwithstanding the first proviso of section 4(e), the Secretary shall accept the proposed alternative condition referred to in paragraph (1), and the Commission shall include in the license such alternative condition, if the Secretary determines, based on substantial evidence provided by the license applicant or otherwise available to the Secretary, that such alternative condition--

      ‘(A) provides for the adequate protection and utilization of the reservation; and

      ‘(B) will either--

        ‘(i) cost less to implement; or

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

      as compared to the condition initially deemed necessary by the Secretary.

    ‘(3) The Secretary shall submit into the public record of the Commission proceeding with any condition under section 4(e) or alternative condition it accepts under this section, a written statement explaining the basis for such condition, and reason for not accepting any alternative condition under this section. The written statement must demonstrate that the Secretary gave equal consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision.

    ‘(4) Nothing in this section shall prohibit other interested parties from proposing alternative conditions.

    ‘(5) If the Secretary does not accept an applicant’s alternative condition under this section, and the Commission finds that the Secretary’s condition would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue a non-binding advisory within 90 days. The Secretary may accept the Dispute Resolution Service advisory unless the Secretary finds that the recommendation will not adequately protect the reservation. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.

    ‘(b) ALTERNATIVE PRESCRIPTIONS- (1) Whenever the Secretary of the Interior or the Secretary of Commerce prescribes a fishway under section 18, the license applicant or licensee may propose an alternative to such prescription to construct, maintain, or operate a fishway. The alternative may include a fishway or an alternative to a fishway.

    ‘(2) Notwithstanding section 18, the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall accept and prescribe, and the Commission shall require, the proposed alternative referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by the licensee or otherwise available to the Secretary, that such alternative--

      ‘(A) will be no less protective of the fish resources than the fishway initially prescribed by the Secretary; and

      ‘(B) will either--

        ‘(i) cost less to implement; or

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

      as compared to the fishway initially deemed necessary by the Secretary.

    ‘(3) The Secretary concerned shall submit into the public record of the Commission proceeding with any prescription under section 18 or alternative prescription it accepts under this section, a written statement explaining the basis for such prescription, and reason for not accepting any alternative prescription under this section. The written statement must demonstrate that the Secretary gave equal consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision.

    ‘(4) Nothing in this section shall prohibit other interested parties from proposing alternative prescriptions.

    ‘(5) If the Secretary concerned does not accept an applicant’s alternative prescription under this section, and the Commission finds that the Secretary’s prescription would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue a non-binding advisory within 90 days. The Secretary may accept the Dispute Resolution Service advisory unless the Secretary finds that the recommendation will not adequately protect the fish resources. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.’.

Subtitle B--Additional Hydropower

SEC. 3201. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) INCENTIVE PAYMENTS- For electric energy generated and sold by a qualified hydroelectric facility during the incentive period, the Secretary of Energy (referred to in this section as the ‘Secretary’) shall make, subject to the availability of appropriations, incentive payments to the owner or operator of such facility. The amount of such payment made to any such owner or operator shall be as determined under subsection (e) of this section. Payments under this section may only be made upon receipt by the Secretary of an incentive payment application which establishes that the applicant is eligible to receive such payment and which satisfies such other requirements as the Secretary deems necessary. Such application shall be in such form, and shall be submitted at such time, as the Secretary shall establish.

    (b) DEFINITIONS- For purposes of this section:

      (1) QUALIFIED HYDROELECTRIC FACILITY- The term ‘qualified hydroelectric facility’ means a turbine or other generating device owned or solely operated by a non-Federal entity which generates hydroelectric energy for sale and which is added to an existing dam or conduit.

      (2) EXISTING DAM OR CONDUIT- The term ‘existing dam or conduit’ means any dam or conduit the construction of which was completed before the date of the enactment of this section and which does not require any construction or enlargement of impoundment or diversion structures (other than repair or reconstruction) in connection with the installation of a turbine or other generating device.

      (3) CONDUIT- The term ‘conduit’ has the same meaning as when used in section 30(a)(2) of the Federal Power Act.

    The terms defined in this subsection shall apply without regard to the hydroelectric kilowatt capacity of the facility concerned, without regard to whether the facility uses a dam owned by a governmental or nongovernmental entity, and without regard to whether the facility begins operation on or after the date of the enactment of this section.

    (c) ELIGIBILITY WINDOW- Payments may be made under this section only for electric energy generated from a qualified hydroelectric facility which begins operation during the period of 10 fiscal years beginning with the first full fiscal year occurring after the date of enactment of this subtitle.

    (d) INCENTIVE PERIOD- A qualified hydroelectric facility may receive payments under this section for a period of 10 fiscal years (referred to in this section as the ‘incentive period’). Such period shall begin with the fiscal year in which electric energy generated from the facility is first eligible for such payments.

    (e) AMOUNT OF PAYMENT-

      (1) IN GENERAL- Payments made by the Secretary under this section to the owner or operator of a qualified hydroelectric facility shall be based on the number of kilowatt hours of hydroelectric energy generated by the facility during the incentive period. For any such facility, the amount of such payment shall be 1.8 cents per kilowatt hour (adjusted as provided in paragraph (2)), subject to the availability of appropriations under subsection (g), except that no facility may receive more than $750,000 in one calendar year.

      (2) ADJUSTMENTS- The amount of the payment made to any person under this section as provided in paragraph (1) shall be adjusted for inflation for each fiscal year beginning after calendar year 2003 in the same manner as provided in the provisions of section 29(d)(2)(B) of the Internal Revenue Code of 1986, except that in applying such provisions the calendar year 2003 shall be substituted for calendar year 1979.

    (f) SUNSET- No payment may be made under this section to any qualified hydroelectric facility after the expiration of the period of 20 fiscal years beginning with the first full fiscal year occurring after the date of enactment of this subtitle, and no payment may be made under this section to any such facility after a payment has been made with respect to such facility for a period of 10 fiscal years.

    (g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary to carry out the purposes of this section $10,000,000 for each of the fiscal years 2004 through 2013.

SEC. 3202. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) INCENTIVE PAYMENTS- The Secretary of Energy shall make incentive payments to the owners or operators of hydroelectric facilities at existing dams to be used to make capital improvements in the facilities that are directly related to improving the efficiency of such facilities by at least 3 percent.

    (b) LIMITATIONS- Incentive payments under this section shall not exceed 10 percent of the costs of the capital improvement concerned and not more than one payment may be made with respect to improvements at a single facility. No payment in excess of $750,000 may be made with respect to improvements at a single facility.

    (c) AUTHORIZATION- There is authorized to be appropriated to carry out this section not more than $10,000,000 for each of the fiscal years 2004 through 2013.

SEC. 3203. SMALL HYDROELECTRIC POWER PROJECTS.

    Section 408(a)(6) of the Public Utility Regulatory Policies Act of 1978 is amended by striking ‘April 20, 1977’ and inserting ‘March 4, 2003’.

SEC. 3204. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL FACILITIES.

    (a) IN GENERAL- The Secretary of Energy, in consultation with the Secretary of the Interior and Secretary of the Army, shall conduct studies of the cost-effective opportunities to increase hydropower generation at existing federally-owned or operated water regulation, storage, and conveyance facilities. Such studies shall be completed within two years after the date of enactment of this subtitle and transmitted to the Committee on Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate. An individual study shall be prepared for each of the Nation’s principal river basins. Each such study shall identify and describe with specificity the following matters:

      (1) Opportunities to improve the efficiency of hydropower generation at such facilities through, but not limited to, mechanical, structural, or operational changes.

      (2) Opportunities to improve the efficiency of the use of water supplied or regulated by Federal projects where such improvement could, in the absence of legal or administrative constraints, make additional water supplies available for hydropower generation or reduce project energy use.

      (3) Opportunities to create additional hydropower generating capacity at existing facilities through, but not limited to, the construction of additional generating facilities, the uprating of generators and turbines, and the construction of pumped storage facilities.

      (4) Preliminary assessment of the costs and the economic and environmental consequences of such measures.

    (b) PREVIOUS STUDIES- If studies of the type required by subsection (a) have been prepared by any agency of the United States and published within the five years prior to the date of enactment of this subtitle, the Secretary of Energy may choose not to perform new studies and incorporate the information in such studies into the studies required by subsection (a).

    (c) AUTHORIZATION- There is authorized to be appropriated such sums as may be necessary to carry out the purposes of this section.

TITLE IV--NUCLEAR MATTERS

Subtitle A--Price-Anderson Act Amendments

SEC. 4001. SHORT TITLE.

    This subtitle may be cited as the ‘Price-Anderson Amendments Act of 2003’.

SEC. 4002. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) INDEMNIFICATION OF NUCLEAR REGULATORY COMMISSION LICENSEES- Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is amended--

      (1) in the subsection heading, by striking ‘LICENSES’ and inserting ‘LICENSEES’; and

      (2) by striking ‘December 31, 2003’ each place it appears and inserting ‘August 1, 2017’.

    (b) INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS- Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended by striking ‘December 31, 2004’ and inserting ‘August 1, 2017’.

    (c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL INSTITUTIONS- Section 170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘August 1, 2002’ each place it appears and inserting ‘August 1, 2017’.

SEC. 4003. MAXIMUM ASSESSMENT.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is amended--

      (1) in subsection b.(1), in the second proviso of the third sentence--

        (A) by striking ‘$63,000,000’ and inserting ‘$94,000,000’; and

        (B) by striking ‘$10,000,000 in any 1 year’ and inserting ‘$15,000,000 in any 1 year (subject to adjustment for inflation under subsection t.)’; and

      (2) in subsection t-

        (A) by inserting ‘total and annual’ after ‘amount of the maximum’;

        (B) by striking ‘the date of the enactment of the Price-Anderson Amendments Act of 1988’ and inserting ‘July 1, 2002’; and

        (C) by striking ‘such date of enactment’ and inserting ‘July 1, 2002’.

SEC. 4004. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS- Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by striking paragraph (2) and inserting the following:

    ‘(2) In an agreement of indemnification entered into under paragraph (1), the Secretary--

      ‘(A) may require the contractor to provide and maintain the financial protection of such a type and in such amounts as the Secretary shall determine to be appropriate to cover public liability arising out of or in connection with the contractual activity; and

      ‘(B) shall indemnify the persons indemnified against such liability above the amount of the financial protection required, in the amount of $10,000,000,000 (subject to adjustment for inflation under subsection t.), in the aggregate, for all persons indemnified in connection with the contract and for each nuclear incident, including such legal costs of the contractor as are approved by the Secretary.’.

    (b) CONTRACT AMENDMENTS- Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by striking paragraph (3) and inserting the following:

    ‘(3) All agreements of indemnification under which the Department of Energy (or its predecessor agencies) may be required to indemnify any person under this section shall be deemed to be amended, on the date of enactment of the Price-Anderson Amendments Act of 2003, to reflect the amount of indemnity for public liability and any applicable financial protection required of the contractor under this subsection.’.

    (c) LIABILITY LIMIT- Section 170 e.(1)(B) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--

      (1) by striking ‘the maximum amount of financial protection required under subsection b. or’; and

      (2) by striking ‘paragraph (3) of subsection d., whichever amount is more’ and inserting ‘paragraph (2) of subsection d.’.

SEC. 4005. INCIDENTS OUTSIDE THE UNITED STATES.

    (a) AMOUNT OF INDEMNIFICATION- Section 170 d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking ‘$100,000,000’ and inserting ‘$500,000,000’.

    (b) LIABILITY LIMIT- Section 170 e.(4) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is amended by striking ‘$100,000,000’ and inserting ‘$500,000,000’.

SEC. 4006. REPORTS.

    Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) is amended by striking ‘August 1, 1998’ and inserting ‘August 1, 2013’.

SEC. 4007. INFLATION ADJUSTMENT.

    Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) is amended--

      (1) by redesignating paragraph (2) as paragraph (3); and

      (2) by adding after paragraph (1) the following:

    ‘(2) The Secretary shall adjust the amount of indemnification provided under an agreement of indemnification under subsection d. not less than once during each 5-year period following July 1, 2002, in accordance with the aggregate percentage change in the Consumer Price Index since--

      ‘(A) that date, in the case of the first adjustment under this paragraph; or

      ‘(B) the previous adjustment under this paragraph.’.

SEC. 4008. PRICE-ANDERSON TREATMENT OF MODULAR REACTORS.

    Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) is amended by adding at the end the following new paragraph:

    ‘(5)(A) For purposes of this section only, the Commission shall consider a combination of facilities described in subparagraph (B) to be a single facility having a rated capacity of 100,000 electrical kilowatts or more.

    ‘(B) A combination of facilities referred to in subparagraph (A) is 2 or more facilities located at a single site, each of which has a rated capacity of 100,000 electrical kilowatts or more but not more than 300,000 electrical kilowatts, with a combined rated capacity of not more than 1,300,000 electrical kilowatts.’.

SEC. 4009. APPLICABILITY.

    The amendments made by sections 4003, 4004, and 4005 do not apply to a nuclear incident that occurs before the date of enactment of this Act.

SEC. 4010. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF LIABILITY FOR CERTAIN FOREIGN ACCIDENTS.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is amended by adding at the end the following new subsection:

    ‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR CERTAIN FOREIGN ACCIDENTS- Notwithstanding this section or any other provision of law, no officer of the United States or of any department, agency, or instrumentality of the United States Government may enter into any contract or other arrangement, or into any amendment or modification of a contract or other arrangement, the purpose or effect of which would be to directly or indirectly impose liability on the United States Government, or any department, agency, or instrumentality of the United States Government, or to otherwise directly or indirectly require an indemnity by the United States Government, for nuclear accidents occurring in connection with the design, construction, or operation of a production facility or utilization facility in any country whose government has been identified by the Secretary of State as engaged in state sponsorship of terrorist activities (specifically including any country the government of which, as of September 11, 2001, had been determined by the Secretary of State under section 620A(a) of the Foreign Assistance Act of 1961, section 6(j)(1) of the Export Administration Act of 1979, or section 40(d) of the Arms Export Control Act to have repeatedly provided support for acts of international terrorism).’.

SEC. 4011. SECURE TRANSFER OF NUCLEAR MATERIALS.

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

    ‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS-

    ‘a. The Nuclear Regulatory Commission shall establish a system to ensure that, with respect to activities by any party pursuant to a license issued under this Act--

      ‘(1) materials described in subsection b., when transferred or received in the United States--

        ‘(A) from a facility licensed by the Nuclear Regulatory Commission;

        ‘(B) from a facility licensed by an agreement State; or

        ‘(C) from a country with whom the United States has an agreement for cooperation under section 123,

      are accompanied by a manifest describing the type and amount of materials being transferred;

      ‘(2) each individual transferring or accompanying the transfer of such materials has been subject to a security background check by appropriate Federal entities; and

      ‘(3) such materials are not transferred to or received at a destination other than a facility licensed

by the Nuclear Regulatory Commission or an agreement State under this Act or other appropriate Federal facility, or a destination outside the United States in a country with whom the United States has an agreement for cooperation under section 123.

    ‘b. Except as otherwise provided by the Commission by regulation, the materials referred to in subsection a. are byproduct materials, source materials, special nuclear materials, high-level radioactive waste, spent nuclear fuel, transuranic waste, and low-level radioactive waste (as defined in section 2(16) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(16))).’.

    (b) REGULATIONS- Not later than 1 year after the date of the enactment of this Act, and from time to time thereafter as it considers necessary, the Nuclear Regulatory Commission shall issue regulations identifying radioactive materials that, consistent with the protection of public health and safety and the common defense and security, are appropriate exceptions to the requirements of section 170C of the Atomic Energy Act of 1954, as added by subsection (a) of this section.

    (c) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect upon the issuance of regulations under subsection (b).

    (d) EFFECT ON OTHER LAW- Nothing in this section or the amendment made by this section shall waive, modify, or affect the application of chapter 51 of title 49, United States Code, part A of subtitle V of title 49, United States Code, part B of subtitle VI of title 49, United States Code, and title 23, United States Code.

    (e) TABLE OF SECTIONS AMENDMENT- The table of sections for chapter 14 of the Atomic Energy Act of 1954 is amended by adding at the end the following new item:

      ‘Sec. 170C. Secure transfer of nuclear materials.’.

SEC. 4012. NUCLEAR FACILITY THREATS.

    (a) STUDY- The President, in consultation with the Nuclear Regulatory Commission and other appropriate Federal, State, and local agencies and private entities, shall conduct a study to identify the types of threats that pose an appreciable risk to the security of the various classes of facilities licensed by the Nuclear Regulatory Commission under the Atomic Energy Act of 1954. Such study shall take into account, but not be limited to--

      (1) the events of September 11, 2001;

      (2) an assessment of physical, cyber, biochemical, and other terrorist threats;

      (3) the potential for attack on facilities by multiple coordinated teams of a large number of individuals;

      (4) the potential for assistance in an attack from several persons employed at the facility;

      (5) the potential for suicide attacks;

      (6) the potential for water-based and air-based threats;

      (7) the potential use of explosive devices of considerable size and other modern weaponry;

      (8) the potential for attacks by persons with a sophisticated knowledge of facility operations;

      (9) the potential for fires, especially fires of long duration; and

      (10) the potential for attacks on spent fuel shipments by multiple coordinated teams of a large number of individuals.

    (b) SUMMARY AND CLASSIFICATION REPORT- Not later than 180 days after the date of the enactment of this Act, the President shall transmit to the Congress and the Nuclear Regulatory Commission a report--

      (1) summarizing the types of threats identified under subsection (a); and

      (2) classifying each type of threat identified under subsection (a), in accordance with existing laws and regulations, as either--

        (A) involving attacks and destructive acts, including sabotage, directed against the facility by an enemy of the United States, whether a foreign government or other person, or otherwise falling under the responsibilities of the Federal Government; or

        (B) involving the type of risks that Nuclear Regulatory Commission licensees should be responsible for guarding against.

    (c) FEDERAL ACTION REPORT- Not later than 90 days after the date on which a report is transmitted under subsection (b), the President shall transmit to the Congress a report on actions taken, or to be taken, to address the types of threats identified under subsection (b)(2)(A). Such report may include a classified annex as appropriate.

    (d) REGULATIONS- Not later than 270 days after the date on which a report is transmitted under subsection (b), the Nuclear Regulatory Commission shall issue regulations, including changes to the design basis threat, to ensure that licensees address the threats identified under subsection (b)(2)(B).

    (e) PHYSICAL SECURITY PROGRAM- The Nuclear Regulatory Commission shall establish an operational safeguards response evaluation program that ensures that the physical protection capability and operational safeguards response for sensitive nuclear facilities, as determined by the Commission consistent with the protection of public health and the common defense and security, shall be tested periodically through Commission approved or designed, observed, and evaluated force-on-force exercises to determine whether the ability to defeat the design basis threat is being maintained. For purposes of this subsection, the term ‘sensitive nuclear facilities’ includes at a minimum commercial nuclear power plants, including associated spent fuel storage facilities, spent fuel storage pools and dry cask storage at closed reactors, independent spent fuel storage facilities and geologic repository operations areas, category I fuel cycle facilities, and gaseous diffusion plants.

    (f) CONTROL OF INFORMATION- In carrying out this section, the President and the Nuclear Regulatory Commission shall control the dissemination of restricted data, safeguards information, and other classified national security information in a manner so as to ensure the common defense and security, consistent with chapter 12 of the Atomic Energy Act of 1954.

SEC. 4013. UNREASONABLE RISK CONSULTATION.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is amended by adding at the end the following new subsection:

    ‘v. UNREASONABLE RISK CONSULTATION- (1) Before entering into an agreement of indemnification under this section with respect to a utilization facility, the Nuclear

Regulatory Commission shall consult with the Assistant to the President for Homeland Security (or any successor official) concerning whether the location of the proposed facility and the design of that type of facility ensure that the facility provides for adequate protection of public health and safety if subject to a terrorist attack.

    ‘(2) Before issuing a license or a license renewal for a sensitive nuclear facility, the Nuclear Regulatory Commission shall consult with the Secretary of Homeland Security or his designee concerning the emergency evacuation plan for the communities living near the sensitive nuclear facility. For purposes of this paragraph, the term ‘sensitive nuclear facility’ has the meaning given that term in section 4012 of the Energy Policy Act of 2003.’.

SEC. 4014. FINANCIAL ACCOUNTABILITY.

    (a) AMENDMENT- Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is amended by adding at the end the following new subsection:

    ‘w. FINANCIAL ACCOUNTABILITY- (1) Notwithstanding subsection d., the Attorney General may bring an action in the appropriate United States district court to recover from a contractor of the Secretary (or subcontractor or supplier of such contractor) amounts paid by the Federal Government under an agreement of indemnification under subsection d. for public liability resulting from conduct which constitutes intentional misconduct of any corporate officer, manager, or superintendent of such contractor (or subcontractor or supplier of such contractor).

    ‘(2) The Attorney General may recover under paragraph (1) an amount not to exceed the amount of the profit derived by the defendant from the contract.

    ‘(3) No amount recovered from any contractor (or subcontractor or supplier of such contractor) under paragraph (1) may be reimbursed directly or indirectly by the Department of Energy.

    ‘(4) Paragraph (1) shall not apply to any nonprofit entity conducting activities under contract for the Secretary.

    ‘(5) No waiver of a defense required under this section shall prevent a defendant from asserting such defense in an action brought under this subsection.

    ‘(6) The Secretary shall, by rule, define the terms ‘profit’ and ‘nonprofit entity’ for purposes of this subsection. Such rulemaking shall be completed not later than 180 days after the date of the enactment of this subsection.’.

    (b) EFFECTIVE DATE- The amendment made by this section shall not apply to any agreement of indemnification entered into under section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) before the date of the enactment of this Act.

SEC. 4015. CIVIL PENALTIES.

    (a) REPEAL OF AUTOMATIC REMISSION- Section 234A b. (2) of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by striking the last sentence.

    (b) LIMITATION FOR NONPROFIT INSTITUTIONS- Subsection d. of section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is amended to read as follows:

    ‘d. Notwithstanding subsection a., a civil penalty for a violation under subsection a. shall not exceed the amount of any discretionary fee paid under the contract under which such violation occurs for any nonprofit contractor, subcontractor, or supplier--

      ‘(1) described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; or

      ‘(2) identified by the Secretary by rule as appropriate to be treated the same under this subsection as an entity described in paragraph (1), consistent with the purposes of this section.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall not apply to any violation of the Atomic Energy Act of 1954 occurring under a contract entered into before the date of the enactment of this Act.

    (d) RULEMAKING- Not later than 6 months after the date of the enactment of this Act, the Secretary of Energy shall issue a rule for the implementation of the amendment made by subsection (b).

Subtitle B--Miscellaneous Matters

SEC. 4021. LICENSES.

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

SEC. 4022. NUCLEAR REGULATORY COMMISSION MEETINGS.

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

SEC. 4023. NRC TRAINING PROGRAM.

    (a) IN GENERAL- In order to maintain the human resource investment and infrastructure of the United States in the nuclear sciences, health physics, and engineering fields, in accordance with the statutory authorities of the Commission relating to the civilian nuclear energy program, the Nuclear Regulatory Commission shall carry out a training and fellowship program to address shortages of individuals with critical nuclear safety regulatory skills.

    (b) AUTHORIZATION OF APPROPRIATIONS-

      (1) IN GENERAL- There are authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2004 through 2007.

      (2) AVAILABILITY- Funds made available under paragraph (1) shall remain available until expended.

SEC. 4024. 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. 4025. ELIMINATION OF PENSION OFFSET.

    Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is amended by adding at the end the following:

      ‘y. exempt from the application of sections 8344 and 8468 of title 5, United States Code, an annuitant who was formerly an employee of the Commission

who is hired by the Commission as a consultant, if the Commission finds that the annuitant has a skill that is critical to the performance of the duties of the Commission.’.

SEC. 4026. CARRYING OF FIREARMS BY LICENSEE EMPLOYEES.

    Section 161 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(k)) is amended to read as follows:

      ‘k. authorize such of its members, officers, and employees as it deems necessary in the interest of the common defense and security to carry firearms while in the discharge of their official duties. The Commission may also authorize--

        ‘(1) such of those employees of its contractors and subcontractors (at any tier) engaged in the protection of property under the jurisdiction of the United States located at facilities owned by or contracted to the United States or being transported to or from such facilities as it deems necessary in the interests of the common defense and security; and

        ‘(2) such of those employees of persons licensed or certified by the Commission (including employees of contractors of licensees or certificate holders) engaged in the protection of property of (A) facilities owned or operated by a Commission licensee or certificate holder that are designated by the Commission, or (B) property of significance to the common defense and security located at facilities owned or operated by a Commission licensee or certificate holder or being transported to or from such facilities;

      to carry firearms while in the discharge of their official duties. A person authorized to carry firearms under this subsection may, while in the performance of, and in connection with, official duties, make arrests without warrant for any offense against the United States committed in that person’s presence or for any felony cognizable under the laws of the United States if that person has reasonable grounds to believe that the individual to be arrested has committed or is committing such felony. An employee of a contractor or subcontractor or of a Commission licensee or certificate holder (or a contractor of a licensee or certificate holder) authorized to carry firearms under this subsection may make such arrests only when the individual to be arrested is within, or in direct flight from, the area of such offense. A person granted authority to make arrests by this subsection may exercise that authority only in the enforcement of laws regarding the property of the United States in the custody of the Department of Energy, the Nuclear Regulatory Commission, or a contractor of the Department of Energy or Nuclear Regulatory Commission or of a licensee or certificate holder of the Commission, laws applicable to facilities owned or operated by a Commission licensee or certificate holder that are designated by the Commission pursuant to this subsection and property of significance to the common defense and security that is in the custody of a licensee or certificate holder or a contractor of a licensee or certificate holder of the Commission, or any provision of this Act that may subject an offender to a fine, imprisonment, or both. The arrest authority conferred by this subsection is in addition to any arrest authority under other laws. The Secretary and the Commission, with the approval of the Attorney General, shall issue guidelines to implement this subsection;’.

SEC. 4027. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

    Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2278a(a)) is amended by adding after ‘custody of the Commission’ the following: ‘or subject to its licensing authority or to certification by the Commission under this Act or any other Act’.

SEC. 4028. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

    Section 236 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2284(a)) is amended to read as follows:

    ‘a. Any person who intentionally and willfully destroys or causes physical damage to, or who intentionally and willfully attempts to destroy or cause physical damage to--

      ‘(1) any production facility or utilization facility licensed under this Act;

      ‘(2) any nuclear waste storage, treatment, or disposal facility licensed under this Act;

      ‘(3) any nuclear fuel for a utilization facility licensed under this Act or any spent nuclear fuel from such a facility;

      ‘(4) any uranium enrichment or nuclear fuel fabrication facility licensed or certified by the Nuclear Regulatory Commission; or

      ‘(5) any production, utilization, waste storage, waste treatment, waste disposal, uranium enrichment, or nuclear fuel fabrication facility subject to licensing or certification under this Act during its construction where the destruction or damage caused or attempted to be caused could affect public health and safety during the operation of the facility,

    shall be fined not more than $1,000,000 or imprisoned for up to life in prison without parole, or both.’.

SEC. 4029. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL DEMONSTRATION PROJECTS FOR THE URANIUM MINING INDUSTRY.

    (a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Energy $10,000,000 for each of fiscal years 2004, 2005, and 2006 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, in Colorado, Nebraska, Texas, Utah, or Wyoming.

SEC. 4030. URANIUM SALES.

    (a) RESTRICTIONS ON INVENTORY SALES- Section 3112(d) of the USEC Privatization Act (42 U.S.C. 2297h-10(d)) is amended to read as follows:

    ‘(d) INVENTORY SALES- (1) In addition to the transfers and sales authorized under subsections (b), (c), and (e), the Secretary of Energy or the Secretary of the Army may transfer or sell uranium subject to paragraph (2).

    ‘(2) Except as provided in subsections (b), (c), and (e), no sale or transfer of uranium shall be made under this subsection by the Secretary of Energy or the Secretary of the Army unless--

      ‘(A) the President determines that the material is not necessary for national security needs;

      ‘(B) the price paid to the appropriate Secretary, if the transaction is a sale, will not be less that the fair market value of the material; and

      ‘(C) the sale or transfer to end users is made pursuant to a contract of at least 3 years duration.

    ‘(3) The Secretary of Energy shall not make any transfer or sale of uranium under this subsection that would cause the total amount of uranium transferred or sold pursuant to this subsection that is delivered for consumption by end users to exceed--

      ‘(A) 3 million pounds of U3O8 equivalent in fiscal year 2004, 2005, 2006, 2007, 2008, or 2009;

      ‘(B) 5 million pounds of U3O8 equivalent in fiscal year 2010 or 2011;

      ‘(C) 7 million pounds of U3O8 equivalent in fiscal year 2012; and

      ‘(D) 10 million pounds of U3O8 equivalent in fiscal year 2013 or any fiscal year thereafter.

    ‘(4) For the purposes of this subsection, the recovery of uranium from uranium bearing materials transferred or sold by the Secretary of Energy or the Secretary of the Army to the domestic uranium industry shall be the preferred method of making uranium available. The recovered uranium shall be counted against the annual maximum deliveries set for in this section, when such uranium is sold to end users.’.

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

    ‘(g) TRANSFERS TO CORPORATION- Notwithstanding subsection (b)(2) and subsection (d)(2), the Secretary may transfer up to 9,550 metric tons of uranium to the Corporation to replace uranium that the Secretary transferred to the Corporation on or about June 30, 1993, April 20, 1998, and May 18, 1998, and that does not meet commercial specifications.’.

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

    ‘(h) SERVICES- (1) Notwithstanding any other provision of this section, if the Secretary determines that if the Corporation has failed, or may fail, to perform any obligation under the Agreement between the Department of Energy and the Corporation dated June 17, 2002, and as amended thereafter, which failure could result in termination of the Agreement, the Secretary shall notify the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate, in such a manner that affords the Committees an opportunity to comment, prior to a determination by the Secretary whether termination, waiver, or modification of the Agreement is required. The Secretary is authorized to take such action as he determines necessary under the Agreement to terminate, waive, or modify provisions of the Agreement to achieve its purposes.

    ‘(2) Notwithstanding any other provision of this section, if the Secretary determines in accordance with Article 2D of the Agreement between the Department of Energy and the Corporation dated June 17, 2002, and as amended thereafter, to transition operation of the Paducah gaseous diffusion plant, the Secretary may provide uranium enrichment services in a manner consistent with Article 2D of such Agreement.’.

    (d) REPORT- Within 3 years after the date of enactment of this Act, the Secretary shall report to the Congress on the implementation of this section. The report shall include a discussion of available excess uranium inventories, all sales or transfers made by the Secretary of Energy or the Secretary of the Army, the impact of such sales or transfers on the domestic uranium industry, the spot market uranium price, and the national security interests of the United States, and any steps taken to remediate any adverse impacts of such sales or transfers.

SEC. 4031. MEDICAL ISOTOPE PRODUCTION.

    Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 2160d) is amended--

      (1) by redesignating subsection b. as subsection f.;

      (2) by inserting after subsection a. the following:

    ‘b. The Commission may issue a license authorizing the export (including shipment to and use at intermediate and ultimate consignees specified in the license) to a Recipient Country of highly enriched uranium for medical isotope production if, in addition to any other requirements of this Act, the Commission determines that--

      ‘(1) a Recipient Country that supplies an assurance letter to the United States Government in connection with the Commission’s consideration of the export license application has informed the United States Government that any intermediate consignees and the ultimate consignee specified in the application are required to use such highly enriched uranium solely to produce medical isotopes; and

      ‘(2) the highly enriched uranium for medical isotope production will be irradiated only in a reactor in a Recipient Country that--

        ‘(A) uses an alternative nuclear reactor fuel; or

        ‘(B) is the subject of an agreement with the United States Government to convert to an alternative nuclear reactor fuel when such fuel can be used in that reactor.

    ‘c. Applications to the Commission for licenses authorizing the export to a Recipient Country of highly enriched uranium for medical isotope production shall be subject to subsection b., and subsection a. shall not be applicable to such exports.

    ‘d. The Commission is authorized to specify, by rulemaking or decision in connection with an export license application, that a country other than a Recipient Country may receive exports of highly enriched uranium for medical isotope production in accordance with the same criteria established by subsection b. for exports to a Recipient Country, upon the Commission’s finding that such additional country is a party to the Treaty on the Nonproliferation of Nuclear Weapons and the Convention on the Physical Protection of Nuclear Material and will receive such highly enriched uranium pursuant to an agreement with the United States concerning peaceful uses of nuclear energy.

    ‘e. The Commission shall review the adequacy of physical protection requirements that are currently applicable to the transportation of highly enriched uranium for medical isotope production. If it determines that additional physical protection measures are necessary, including any limits that the Commission finds are necessary on the quantity of highly enriched uranium contained in a single shipment for medical isotope production, the Commission shall impose such requirements, as license conditions or through other appropriate means.’; and

      (3) in subsection f., as so redesignated by paragraph (1) of this section--

        (A) by striking ‘and’ at the end of paragraph (2);

        (B) by striking the period at the end of paragraph (3)(B) and inserting a semicolon; and

        (C) by adding at the end the following:

      ‘(4) the term ‘medical isotopes’ means radioactive isotopes, including Molybdenum 99, Iodine 131, and Xenon 133, that are used to produce radiopharmaceuticals for diagnostic or therapeutic procedures on patients, or in connection with research and development of radiopharmaceuticals;

      ‘(5) the term ‘highly enriched uranium for medical isotope production’ means highly enriched uranium contained in, or for use in, targets to be irradiated for the sole purpose of producing medical isotopes;

      ‘(6) the term ‘radiopharmaceuticals’ means radioactive isotopes containing byproduct material combined with chemical or biological material that are designed to accumulate temporarily in a part of the body, for therapeutic purposes or for enabling the production of a useful image of the appropriate body organ or function for use in diagnosis of medical conditions; and

      ‘(7) the term ‘Recipient Country’ means Canada, Belgium, France, Germany, and the Netherlands.’.

SEC. 4032. HIGHLY ENRICHED URANIUM DIVERSION THREAT REPORT.

    Section 307 of the Energy Reorganization Act of 1974 (42 U.S.C. 5877) is amended by adding at the end the following new subsection:

    ‘(d) Not later than 6 months after the date of the enactment of this Act, the Secretary of Energy shall transmit to the Congress a report with recommendations on reducing the threat resulting from the theft or diversion of highly enriched uranium. Such report shall address--

      ‘(1) monitoring of highly enriched uranium supplies at any commercial companies who have access to substantial amounts of highly enriched uranium;

      ‘(2) assistance to companies described in paragraph (1) with security and personnel checks;

      ‘(3) acceleration of the process of blending down excess highly enriched uranium into low-enriched uranium;

      ‘(4) purchasing highly enriched uranium (except for production of medical isotopes);

      ‘(5) paying the cost of shipping highly enriched uranium;

      ‘(6) accelerating the conversion of commercial research reactors and energy reactors to the use of low-enriched uranium fuel where they now use highly enriched uranium fuel; and

      ‘(7) minimizing, and encouraging transparency in, the further enrichment of low-enriched uranium to highly enriched uranium.’.

SEC. 4033. WHISTLEBLOWER PROTECTION.

    (a) DEFINITION OF EMPLOYER- Section 211(a)(2) of the Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is amended--

      (1) by striking ‘and’ at the end of subparagraph (C);

      (2) in subparagraph (D), by striking ‘that is indemnified’ and all that follows through ‘12344.’ and inserting ‘or the Commission; and’; and

      (3) by adding at the end the following new subparagraph:

      ‘(E) the Department of Energy and the Commission.’.

    (b) DE NOVO REVIEW- Subsection (b) of such section 211 is amended by adding at the end the following new paragraph:

    ‘(4) If the Secretary has not issued a final decision within 180 days after the filing of a complaint under paragraph (1), and there is no showing that such delay is due to the bad faith of the claimant, the claimant may bring an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy.’.

TITLE V--VEHICLES AND FUELS

Subtitle A--Energy Policy Act Amendments

SEC. 5011. CREDIT FOR SUBSTANTIAL CONTRIBUTION TOWARD NONCOVERED FLEETS.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is amended by adding at the end the following new subsection:

    ‘(e) CREDIT FOR SUBSTANTIAL CONTRIBUTION TOWARD USE OF DEDICATED VEHICLES IN NONCOVERED FLEETS-

      ‘(1) DEFINITIONS- In this subsection:

        ‘(A) MEDIUM OR HEAVY DUTY VEHICLE- The term ‘medium or heavy duty vehicle’ means a dedicated vehicle that--

          ‘(i) in the case of a medium duty vehicle, has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds; or

          ‘(ii) in the case of a heavy duty vehicle, has a gross vehicle weight rating of more than 14,000 pounds.

        ‘(B) SUBSTANTIAL CONTRIBUTION- The term ‘substantial contribution’ means not less than $15,000 in cash or in kind services, as determined by the Secretary.

      ‘(2) ALLOCATION OF CREDITS- The Secretary shall allocate a credit to a fleet or covered person under this section if the fleet or person makes a substantial contribution toward the acquisition and use of dedicated vehicles or neighborhood electric vehicles by a person that owns, operates, leases, or otherwise controls a fleet that is not covered by this title.

      ‘(3) MULTIPLE CREDITS FOR MEDIUM AND HEAVY DUTY VEHICLES- The Secretary shall issue 2 full credits to a fleet or covered person under this section if the fleet or person makes a substantial contribution toward the acquisition and use of a medium or heavy duty vehicle.

      ‘(4) USE OF CREDITS- At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the acquisition of the dedicated vehicle or neighborhood electric vehicle is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.

      ‘(5) LIMITATION- Except as provided in paragraph (3), no more than 1 credit shall be allocated under this subsection for each vehicle.’.

SEC. 5012. CREDIT FOR ALTERNATIVE FUEL INFRASTRUCTURE.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258), as amended by this Act, is further amended by adding at the end the following new subsection:

    ‘(f) CREDIT FOR INVESTMENT IN ALTERNATIVE FUEL INFRASTRUCTURE-

      ‘(1) DEFINITION- In this subsection, the term ‘qualifying infrastructure’ means--

        ‘(A) equipment required to refuel or recharge alternative fueled vehicles;

        ‘(B) facilities or equipment required to maintain, repair, or operate alternative fueled vehicles;

        ‘(C) training programs, educational materials, or other activities necessary to provide information regarding the operation, maintenance, or benefits associated with alternative fueled vehicles; and

        ‘(D) such other activities the Secretary considers to constitute an appropriate expenditure in support of the operation, maintenance, or further widespread adoption of or utilization of alternative fueled vehicles.

      ‘(2) ALLOCATION OF CREDITS- The Secretary shall allocate a credit to a fleet or covered person under this section for investment in qualifying infrastructure if the qualifying infrastructure is open to the general public during regular business hours.

      ‘(3) AMOUNT- For the purposes of credits under this subsection--

        ‘(A) 1 credit shall be equal to a minimum investment of $25,000 in cash or in kind services, as determined by the Secretary; and

        ‘(B) except in the case of a Federal or State fleet, no part of the investment may be provided by Federal or State funds.

      ‘(4) USE OF CREDITS- At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the investment is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.’.

SEC. 5013. ALTERNATIVE FUELED VEHICLE REPORT.

    (a) DEFINITIONS- In this section:

      (1) ALTERNATIVE FUEL- The term ‘alternative fuel’ has the meaning given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

      (2) ALTERNATIVE FUELED VEHICLE- The term ‘alternative fueled vehicle’ has the meaning given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

      (3) LIGHT DUTY MOTOR VEHICLE- The term ‘light duty motor vehicle’ has the meaning given the term in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).

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

    (b) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report on the effect that titles III, IV, and V of the Energy Policy Act of 1992 have had on the development of alternative fueled vehicle technology, the availability of alternative fueled vehicles in the market, the cost of light duty motor vehicles that are alternative fueled vehicles, and the availability, cost, and use of alternative fuels and biodiesel. Such report shall include any recommendations of the Secretary for legislation concerning the alternative fueled vehicle requirements under the Energy Policy Act of 1992, and shall examine, discuss, and determine the following:

      (1) The number of alternative fueled vehicles acquired by fleets or covered persons required to acquire alternative fueled vehicles.

      (2) The extent to which fleets subject to alternative fueled vehicle acquisition requirements have met those requirements through the use of fuel mixtures that contain at least 20 percent biodiesel pursuant to section 312 of the Energy Policy Act of 1992 (42 U.S.C. 13220).

      (3) The amount of alternative fuel used in alternative fueled vehicles acquired by fleets required to acquire alternative fueled vehicles under the Energy Policy Act of 1992.

      (4) The amount of petroleum displaced by the use of alternative fueled vehicles acquired by fleets or covered persons.

      (5) The cost of compliance with vehicle acquisition requirements under the Energy Policy Act of 1992, and the benefits of using such fuel and vehicles.

      (6) Projections of the amount of biodiesel, the number of alternative fueled vehicles, and the amount of alternative fuel that will be used over the next decade by fleets required to acquire alternative fueled vehicles under the Energy Policy Act of 1992.

      (7) The existence of any obstacles to increased use of alternative fuel and biodiesel in vehicles acquired or maintained by fleets required to acquire alternative fueled vehicles under the Energy Policy Act of 1992, and the benefits of using such fuel and vehicles.

SEC. 5014. ALLOCATION OF INCREMENTAL COSTS.

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

Subtitle B--FreedomCAR and Hydrogen Fuel Program

SEC. 5021. SHORT TITLE.

    This subtitle may be cited as the ‘FreedomCAR and Hydrogen Fuel Act of 2003’ or ‘Freedom Act’.

SEC. 5022. FINDINGS, PURPOSE, AND DEFINITIONS.

    (a) FINDINGS- Congress finds that--

      (1) the United States is currently dependent on foreign sources for a majority of its petroleum supply;

      (2) the Nation’s dependence on foreign petroleum is expected to increase in the decades ahead;

      (3) it is in the national interest to reduce dependence on imported petroleum by accelerating Federal efforts to partner with the private sector by deploying hydrogen fuel cell vehicles and the refueling infrastructure to support those vehicles;

      (4) it is in the national interest to develop a light duty vehicle fleet that substantially reduces dependence on foreign petroleum, assists the Nation in meeting its requirements under the Clean Air Act and reduces greenhouse gas emissions in a manner that maintains the freedom of consumers to purchase the kinds of vehicles they wish to drive and the freedom to refuel those vehicles safely, affordably, and conveniently;

      (5) hydrogen fuel cell vehicles and supporting infrastructure have the potential to accelerate the parallel advancement of fuel cells for stationary power that will enhance the resiliency, reliability, and environmental performance of the Nation’s electricity infrastructure;

      (6) ancillary benefits for the Nation, including the acceleration of fuel cell technology for consumer electronics and portable power, are likely to result from the advancement of hydrogen fuel cell vehicles and supporting infrastructure;

      (7) there is a need for deployment of bridging technologies including gasoline electric and diesel electric hybrid drive systems, advanced combustion engines including clean diesel, electric battery, and power electronics, and alternative fuels and other technology that can contribute to reducing petroleum demand and decreasing air emissions;

      (8) low-cost hydrogen production, storage, and delivery facilities are essential to the success of the FreedomCAR Vehicle Programs; and

      (9) work should be performed in a manner that is cognizant of consumer acceptance, passenger safety, and marketplace success.

    (b) PURPOSE- The purpose of this subtitle is to reduce significantly the Nation’s dependence on imported petroleum, enhance the production and conservation of energy, and reduce air emissions through support of the following Department of Energy actions:

      (1) Programs and activities leading to--

        (A) a commitment by automakers and hydrogen energy and energy infrastructure providers no later than year 2015 to offer safe, affordable, and technically viable hydrogen fuel cell vehicles and refueling infrastructure in the mass consumer market; and

        (B) a commitment by the automakers and hydrogen energy and energy infrastructure providers to the deployment of hydrogen fuel cell vehicles and affordable and convenient refueling infrastructure no later than year 2020.

      (2) A program to establish international codes, standards, and safety protocols for the use and manufacture of domestic and foreign products.

      (3) Interagency, intergovernmental, and international programs and activities for education, information exchange, and cooperation.

    (c) DEFINITIONS- In this subtitle:

      (1) The term ‘Advisory Committee’ means the Hydrogen Technical and Fuel Cell Advisory Committee established under section 5028 of this Act.

      (2) The term ‘Department’ means the Department of Energy.

      (3) The term ‘FreedomCAR’ is the acronym for a Department initiative in automotive research and development entitled ‘Freedom Cooperative Automotive Research’.

      (4) The term ‘fuel cell’ means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by an electrochemical process taking place at separate electrodes in the device.

      (5) The term ‘infrastructure’ means the equipment, systems, or facilities used to produce, distribute, deliver, or store hydrogen and other advanced clean fuels.

      (6) The term ‘light duty vehicle’ means a car or truck, classified by the Department of Transportation as a Class I or IIA vehicle.

      (7) The term ‘Secretary’ means the Secretary of Energy.

SEC. 5023. PLAN; REPORT.

    (a) PLAN- The Secretary, in consultation with other appropriate Federal agencies, shall prepare a comprehensive interagency coordination plan for activities under this subtitle. This plan may be provided as part of the President’s annual budget submission to Congress.

    (b) REPORT- Not later than one year after the date of enactment of this subtitle, and biennially thereafter, the Secretary shall transmit to the Congress a report on the status of programs and activities under this subtitle. This report may be provided as part of the President’s annual budget submission to Congress. This report may include, in addition to any views and recommendations of the Secretary--

      (1) an assessment of the effectiveness of the programs and activities under this subtitle and the extent to which the purposes in section 5022(b) have been met; and

      (2) the potential for interagency, intergovernmental, international, or private sector collaboration opportunities and activities under this subtitle.-

SEC. 5024. PUBLIC-PRIVATE PARTNERSHIP.

    (a) PROGRAM- In partnership with the private sector, the Secretary shall conduct a program designed to facilitate the production and conservation of energy and the deployment of energy infrastructure, including all of the following:

      (1) Hydrogen energy.

      (2) Fuel cells.

      (3) Advanced vehicle technologies.

      (4) Clean fuels in addition to hydrogen.

      (5) Codes, standards, and safety protocols.-

    (b) PROGRAM GOALS-

      (1) AUTOMAKERS- For automakers the goals of the program are--

        (A) to enable a commitment by automakers no later than year 2015 to offer safe, affordable, and technically viable hydrogen fuel cell vehicles into commerce; and

        (B) to enable production, delivery, and acceptance by consumers of model year 2020 hydrogen fuel cell and other vehicles that will have--

          (i) a range of at least three hundred miles;

          (ii) improved performance and ease of driving;

          (iii) met all light duty safety regulations created under section 30111 of title 49, United States Code; and

          (iv) when compared to light duty vehicles in model year 2003--

            (I) a fuel economy that is two and one half times the equivalent fuel economy of these vehicles as regulated under the Motor Vehicle Information and Cost Savings Act, or about 70 miles per gallon, and

            (II) near zero emissions of air pollutants regulated under the Clean Air Act.

      (2) HYDROGEN ENERGY AND ENERGY INFRASTRUCTURE- For hydrogen energy and energy infrastructure the goals of the program include, but are not limited to, a commitment not later than 2015 that will enable the deployment by 2020 of infrastructure to provide--

        (A) safe and convenient refueling;

        (B) activities leading to widespread availability of hydrogen from domestic energy sources through--

          (i) production, including consideration of cost-effective production from domestic energy sources;

          (ii) delivery, including transmission by pipeline and other distribution methods for hydrogen; and

          (iii) storage, including storage in surface transportation vehicles;

        (C) hydrogen for fuel cells, internal combustion engines, and other energy conversion devices for portable, stationary, and transportation applications; and

        (D) other technologies consistent with the Department’s plan.

      (3) FUEL CELLS- The program for fuel cells and their portable, stationary, and transportation applications may include, but is not limited to--

        (A) a safe, economical, and environmentally sound hydrogen fuel cell;

        (B) a fuel cell for light duty and other vehicles; and

        (C) other technologies consistent with the Department’s plan.

      (4) ADVANCED VEHICLE TECHNOLOGIES- The program for advanced vehicle technologies may include, but is not limited to--

        (A) advanced combustion;

        (B) materials;

        (C) energy storage;

        (D) control systems; and

        (E) other technologies consistent with the Department’s plan.

      (5) CODES, STANDARDS, AND SAFETY PROTOCOLS- (A) The Department’s program for codes, standards, and safety protocols shall strive towards establishment of international codes, standards, and safety protocols for the use and manufacture of domestic and foreign products.

      (B) The Secretary may represent the United States interests with respect to activities and programs under this subsection, collaborating with the Secretary of Transportation, and in consultation with other appropriate governments and nongovernmental organizations including the following:

        (i) Other Federal, State, regional, and local governments and their representatives.

        (ii) Industry and its representatives, including members of the energy and transportation industries.

        (iii) Foreign governments and their representatives including international organizations.

    (c) FEDERAL FUNDING- (1) The Secretary shall carry out the programs and activities under this section consistent with the generally applicable Federal laws and regulations governing awards of financial assistance, contracts, or other agreements, and may include funding to nationally recognized university-based research centers.

    (2) The Secretary shall endeavor to avoid duplication or displacement of other research and development programs and activities.

    (d) COST SHARING- (1) The Secretary shall require a commitment from non-Federal sources of at least 20 percent of the cost of proposed programs under this section.

    (2) The Secretary may reduce or eliminate the cost sharing requirement under paragraph (1)--

      (A) if the Secretary determines that the activity is of a basic or fundamental nature which is vital to the success of the program and unlikely to occur in a timely manner without reduction or elimination of the cost-sharing requirement; or

      (B) for technical analyses, outreach programs, and other activities including educational programs under section 5027 of this subtitle that the Secretary does not expect to result in a marketable product.

SEC. 5025. DEPLOYMENT.

    (a) DEPLOYMENT PROGRAM- In partnership with the private sector, the Secretary shall conduct a program to facilitate the deployment of--

      (1) hydrogen energy and energy infrastructure;

      (2) fuel cells;

      (3) advanced vehicle technologies;

      (4) clean fuels in addition to hydrogen; and

      (5) codes, standards, and safety protocols.-

    (b) PROGRAM GOALS- (1) For automakers, the goals of the program are--

      (A) to enable a decision by automakers no later than year 2015 to offer safe, affordable, and technically viable hydrogen fuel cell vehicles into commerce; and

      (B) to enable production and delivery to, and acceptance by, consumers of model year 2020 hydrogen fuel cell and other vehicles that will have--

        (i) a range of at least 300 miles;

        (ii) improved performance and ease of driving;

        (iii) met all light duty safety regulations created under section 30111 of title 49, United States Code; and

        (iv) when compared to light duty vehicles in model year 2003--

          (I) a fuel economy that is two and one half times the equivalent fuel economy of these vehicles under the Motor Vehicle Information and Cost Savings Act, or about 70 miles per gallon; and

          (II) near zero emissions of air pollutants regulated under the Clean Air Act.

    (2) For hydrogen energy and energy infrastructure the goals of the program include, but are not limited to, a commitment not later than 2015 that will enable the deployment by 2020 of infrastructure to provide--

      (A) safe, convenient, and affordable refueling;

      (B) widespread availability of hydrogen from domestic energy sources through--

        (i) production, including consideration of cost-effective production from domestic energy sources;

        (ii) delivery, including transmission by pipeline and other distribution methods, for hydrogen in its gaseous, liquid, and solid states; and

        (iii) storage, including storage in surface transportation vehicles;

      (C) hydrogen for fuel cells, internal combustion engines, and other energy conversion devices for portable, stationary, and transportation applications; and

      (D) other technologies consistent with the Department’s plan.

    (c) FUEL CELLS- The program for fuel cells and their portable, stationary, and transportation applications may include but is not limited to--

      (1) a safe, economical, and environmentally sound hydrogen fuel cell;

      (2) a fuel cell for light duty and other vehicles; and

      (3) other technologies consistent with the Department’s plan.

    (d) ADVANCED VEHICLE TECHNOLOGIES- The program for advanced vehicle technologies may include, but is not limited to--

      (1) advanced combustion;

      (2) materials;

      (3) energy storage;

      (4) control systems; and

      (5) other technologies consistent with the Department’s plan.

    (e) FEDERAL FUNDING- The Secretary shall carry out the program and activities under this section consistent with laws and regulations governing awards of financial assistance, contracts or other agreements, and may include funding to nationally recognized university-based research centers. The Secretary shall endeavor to avoid duplication or displacement of other programs.

    (f) COST SHARING-

      (1) IN GENERAL- The Secretary shall require a commitment from non-Federal sources of at least 50 percent of the costs directly relating to a demonstration under this section.

      (2) REDUCTION- The Secretary may reduce the non-Federal requirement under paragraph (1) if the Secretary determines that--

        (A) the reduction is appropriate considering the technological risks involved; and

        (B) the terms and conditions are consistent with the Agreement on Subsidies and Countervailing Measures.

      (3) COOPERATIVE AGREEMENTS WITH GOVERNMENTS- The Secretary may enter into cooperative and cost sharing agreements with Federal, State, or local governments to deploy vehicles, vehicle systems, and refueling infrastructure using hydrogen, fuel cells, or other advanced technologies in government facilities or fleet transportation systems.

SEC. 5026. ASSESSMENT AND TRANSFER.

    (a) PROGRAM- The Secretary may conduct a program to transfer technology to the private sector under this subtitle.

    (b) DISCLOSURE- The Secretary may protect from disclosure, for up to 5 years after the information was developed, any information developed pursuant to a cost shared transaction, or subagreement thereunder, entered into under this subtitle to advance the goals of the programs, which developed information is of a character that it would be protected from disclosure under section 552(b)(4) of title 5, United States Code, if this developed information had been obtained from a person other than a Federal agency.

SEC. 5027. INTERAGENCY TASK FORCE.

    (a) ESTABLISHMENT- Not later than 120 days after the date of enactment of this Act, the President shall establish an interagency task force chaired by the Secretary or his designee with representatives from each of the following:

      (1) The Office of Science and Technology Policy within the Executive Office of the President.

      (2) The Department of Transportation.

      (3) The Department of Defense.

      (4) The Department of Commerce (including the National Institute of Standards and Technology).

      (5) The Environmental Protection Agency.

      (6) The National Aeronautics and Space Administration.

      (7) Other Federal agencies as the Secretary determines appropriate.

    (b) DUTIES OF THE INTERAGENCY TASK FORCE-

      (1) PLANNING- The task force shall coordinate the implementation of the interagency plan in section 5023(a), and work towards deployment of--

        (A) a safe, economical, and environmentally sound fuel infrastructure, including an infrastructure that supports buses and other fleet transportation;

        (B) fuel cells in government and other applications, including portable, stationary, and transportation applications; and

        (C) distributed power generation, including the generation of combined heat, power, and clean fuels including hydrogen.

      (2) INFORMATION EXCHANGE- (A) The interagency task force shall coordinate interagency programs and activities including the exchange of information.

      (B) The heads of all agencies, including those whose agencies are not represented on the interagency task force, shall cooperate with and furnish information to the interagency task force, the Advisory Committee, and the Department.

      (C) The information exchange may consist of workshops, publications, conferences, and a database for use by the public and private sectors. The interagency task force is expected to--

        (i) foster the exchange of generic, nonproprietary information and technology among industry, academia, and government;

        (ii) update the inventory and assessment of hydrogen, fuel cells, and other advanced technologies, including their commercial capability for the economic and environmentally safe production, distribution, delivery, storage, and use of clean fuels including hydrogen;

        (iii) integrate technical and other information made available as a result of the programs and activities under this subtitle;

        (iv) promote the marketplace introduction of infrastructure for hydrogen and other clean fuel vehicles; and

        (v) conduct an education program to provide FreedomCAR and hydrogen fuel information to potential end-users.

SEC. 5028. ADVISORY COMMITTEE.

    (a) ESTABLISHMENT- The Hydrogen Technical and Fuel Cell Advisory Committee is established to advise the Secretary on the programs and activities under this subtitle.

    (b) MEMBERSHIP-

      (1) MEMBERS- The Advisory Committee is comprised of not fewer than 12 nor more than 25 members. These members shall be appointed by the Secretary to represent domestic industry, academia, professional societies, government agencies, and financial, environmental, and other appropriate organizations based on the Department’s assessment of the technical and other qualifications of committee members and the needs of the Advisory Committee.

      (2) TERMS- The term of a member of the Advisory Committee shall not be more than 3 years. The Secretary may appoint members of the Advisory Committee in a manner that allows the terms of the members serving at any time to expire at spaced intervals so as to ensure continuity in the functioning of the Advisory Committee. A member of the Advisory Committee whose term is expiring may be reappointed.

      (3) CHAIRPERSON- The Advisory Committee shall have a chairperson, who is elected by the members from among their number.

    (c) REVIEW- The Advisory Committee shall review and make recommendations to the Secretary on--

      (1) the implementation of programs and activities under this subtitle;

      (2) the safety, economical, and environmental consequences of technologies for the production, distribution, delivery, storage, or use of hydrogen energy and fuel cells; and

      (3) the interagency coordination plan under section 5023(a) of this Act.

    (d) RESPONSE TO RECOMMENDATIONS- The Secretary shall consider, but need not adopt, any recommendations of the Advisory Committee under subsection (c).

    (e) ADVISORY COMMITTEE SUPPORT- The Secretary shall provide resources necessary in the judgment of the Secretary for the Advisory Committee to carry out its responsibilities under this subtitle.

SEC. 5029. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out the purposes of this subtitle including programs for light duty vehicles, in addition to any amounts made available for these purposes under other Acts--

      (1) $273,500,000 for fiscal year 2004;

      (2) $325,000,000 for fiscal year 2005;

      (3) $375,000,000 for fiscal year 2006;

      (4) $400,000,000 for fiscal year 2007; and

      (5) $425,000,000 for fiscal year 2008.

SEC. 5030. FUEL CELL PROGRAM AT NATIONAL PARKS.

    The Secretary of Energy, in cooperation with the Secretary of Interior and the National Park Service, is authorized to establish a program to provide matching funds to assist in the deployment of fuel cells at one or more prominent National Parks. The Secretary of Energy shall transmit to Congress within 1 year, and annually thereafter, a report describing any activities taken pursuant to such program. The report shall address whether activities taken pursuant to such program reduce the environmental impacts of energy use at National Parks. There are authorized to be appropriated $2,000,000 for each of fiscal years 2004 through 2010 to carry out the purposes of this section.

SEC. 5030A. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.

    (a) PROGRAM- The Secretary of Energy is authorized to establish an Advanced Power System Technology Incentive Program to support the deployment of certain advanced power system technologies and to improve and protect certain critical governmental, industrial, and commercial processes. Funds provided under this section shall be used by the Secretary to make incentive payments to eligible owners or operators of advanced power system technologies to increase power generation through enhanced operational, economic, and environmental performance. Payments under this section may only be made upon receipt by the Secretary of an incentive payment application establishing an applicant as either--

      (1) a qualifying advanced power system technology facility; or

      (2) a qualifying security and assured power facility.

    (b) INCENTIVES- Subject to availability of funds, a payment of 1.8 cents per kilowatt-hour shall be paid to the owner or operator of a qualifying advanced power system technology facility under this section for electricity generated at such facility. An additional 0.7 cents per kilowatt-hour shall be paid to the owner or operator of a qualifying security and assured power facility for electricity generated at such facility. Any facility qualifying under this section shall be eligible for an incentive payment for up to, but not more than, the first 10,000,000 kilowatt-hours produced in any fiscal year.

    (c) ELIGIBILITY- For purposes of this section--

      (1) the term ‘qualifying advanced power system technology facility’ means a facility using an advanced fuel cell, turbine, or hybrid power system or power storage system to generate or store electric energy; and

      (2) the term ‘qualifying security and assured power facility’ means a qualifying advanced power system technology facility determined by the Secretary of Energy, in consultation with the Secretary of Homeland Security, to be in critical need of secure, reliable, rapidly available, high-quality power for critical governmental, industrial, or commercial applications.

    (d) AUTHORIZATION- There are authorized to be appropriated to the Secretary of Energy for the purposes of this section, $10,000,000 for each of the fiscal years 2004 through 2010.

Subtitle C--Clean School Buses

SEC. 5031. ESTABLISHMENT OF PILOT PROGRAM.

    (a) ESTABLISHMENT- The Secretary of Energy, in consultation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall establish a pilot program for awarding grants on a competitive basis to eligible entities for the acquisition of alternative fuel school buses and ultra-low sulfur diesel school buses.

    (b) REQUIREMENTS- Not later than 3 months after the date of the enactment of this Act, the Secretary shall establish and publish in the Federal register grant requirements on eligibility for assistance, and on implementation of the program established under subsection (a), including certification requirements to ensure compliance with this subtitle.

    (c) SOLICITATION- Not later than 6 months after the date of the enactment of this Act, the Secretary shall solicit proposals for grants under this section.

    (d) ELIGIBLE RECIPIENTS- A grant shall be awarded under this section only--

      (1) to a local or State governmental entity responsible for providing school bus service to one or more public school systems or responsible for the purchase of school buses; or

      (2) to a contracting entity that provides school bus service to one or more public school systems, if the grant application is submitted jointly with the school system or systems which the buses will serve.

    (e) TYPES OF GRANTS-

      (1) IN GENERAL- Grants under this section shall promote the conservation of energy and improvement of public health and the environment by facilitating the acquisition of alternative fuel school buses and ultra-low sulfur diesel school buses in lieu of buses manufactured before model year 1977 and diesel-powered buses manufactured before model year 1991.

      (2) NO ECONOMIC BENEFIT- Other than the receipt of the grant, a recipient of a grant under this section may not receive any economic benefit in connection with the receipt of the grant.

      (3) PRIORITY OF GRANT APPLICATIONS- The Secretary shall give priority to awarding grants to applicants who will utilize grants to replace buses manufactured before model year 1977.

    (f) CONDITIONS OF GRANT- A grant provided under this section shall include the following conditions:

      (1) All buses acquired with funds provided under the grant shall be operated as part of the school bus fleet for which the grant was made for a minimum of 5 years.

      (2) Funds provided under the grant may only be used--

        (A) to pay the cost, except as provided in paragraph (3), of new alternative fuel school buses or ultra-low sulfur diesel school buses, including State taxes and contract fees; and

        (B) to provide--

          (i) up to 10 percent of the price of the alternative fuel buses acquired, for necessary alternative fuel infrastructure if the infrastructure will only be available to the grant recipient; and

          (ii) up to 15 percent of the price of the alternative fuel buses acquired, for necessary alternative fuel infrastructure if the infrastructure will be available to the grant recipient and to other bus fleets.

      (3) The grant recipient shall be required to provide at least the lesser of 15 percent of the total cost of each bus received or $15,000 per bus.

      (4) In the case of a grant recipient receiving a grant to demonstrate ultra-low sulfur diesel school buses, the grant recipient shall be required to provide documentation to the satisfaction of the Secretary that diesel fuel containing sulfur at not more than 15 parts per million is available for carrying out the purposes of the grant, and a commitment by the applicant to use such fuel in carrying out the purposes of the grant.

    (g) BUSES- Funding under a grant made under this section may be used to facilitate the use only of new alternative fuel school buses or ultra-low sulfur diesel school buses--

      (1) with a gross vehicle weight of greater than 14,000 pounds;

      (2) that are powered by a heavy duty engine;

      (3) that, in the case of alternative fuel school buses, emit not more than--

        (A) for buses manufactured in model year 2002, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

        (B) for buses manufactured in model years 2003 through 2006, 1.8 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

      (4) that, in the case of ultra-low sulfur diesel school buses, emit not more than--

        (A) for buses manufactured in model years 2002 through 2003, 3.0 grams per brake horsepower-hour of oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

        (B) for buses manufactured in model years 2004 through 2006, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter,

      except that under no circumstances shall buses be acquired under this section that emit nonmethane hydrocarbons, oxides of nitrogen, or particulate matter at a rate greater than the best performing technology of the same class of ultra-low sulfur diesel school buses commercially available at the time the grant is made.

    (h) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the maximum extent practicable to achieve nationwide deployment of alternative fuel school buses and ultra-low sulfur diesel school buses through the program under this section, and shall ensure a broad geographic distribution of grant awards, with a goal of no State receiving more than 10 percent of the grant funding made available under this section for a fiscal year.

    (i) LIMIT ON FUNDING- The Secretary shall provide not less than 20 percent and not more than 25 percent of the grant funding made available under this section for any fiscal year for the acquisition of ultra-low sulfur diesel school buses.

    (j) REDUCTION OF SCHOOL BUS IDLING- Each local educational agency (as defined in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) that receives Federal funds under the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged to develop a policy, consistent with the health, safety, and welfare of students and the proper operation and maintenance of school buses, to reduce the incidence of unnecessary school bus idling at schools when picking up and unloading students.

    (k) ANNUAL REPORT- Not later than January 31 of each year, the Secretary of Energy shall provide a report evaluating implementation of the program under this section to the Congress. Such report shall include the total number of grant applications received, the number and types of alternative fuel school buses and ultra-low sulfur diesel school buses requested in grant applications, a list of grants awarded and the criteria used to select the grant recipients, certified engine emission levels of all buses purchased under the program, and any other information the Secretary considers appropriate.

    (l) DEFINITIONS- For purposes of this section--

      (1) the term ‘alternative fuel school bus’ means a school bus powered substantially by electricity (including electricity supplied by a fuel cell), or by liquefied natural gas, compressed natural gas, liquefied petroleum gas, hydrogen, propane, or methanol or ethanol at no less than 85 percent by volume;

      (2) the term ‘idling’ means operating an engine while remaining stationary for more than approximately 3 minutes, except that such term does not

apply to routine stoppages associated with traffic movement or congestion; and

      (3) the term ‘ultra-low sulfur diesel school bus’ means a school bus powered by diesel fuel which contains sulfur at not more than 15 parts per million.

SEC. 5032. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.

    (a) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program for entering into cooperative agreements with private sector fuel cell bus developers for the acquisition of fuel cell-powered school buses, and subsequently with not less than 2 units of local government using natural gas-powered school buses and such private sector fuel cell bus developers to facilitate the use of fuel cell-powered school buses.

    (b) COST SHARING- The non-Federal contribution for activities funded under this section shall be not less than 20 percent for fuel infrastructure development activities.

    (c) FUNDING- No more than $25,000,000 of the amounts authorized under section 5033 may be used for carrying out this section for the period encompassing fiscal years 2003 through 2006.

    (d) REPORTS TO CONGRESS- Not later than 3 years after the date of the enactment of this Act, and not later than October 1, 2006, the Secretary shall transmit to the Congress a report that--

      (1) evaluates the process of converting natural gas infrastructure to accommodate fuel cell-powered school buses; and

      (2) assesses the overall impact on energy conservation, public health, and the environment as a result of this program under this section.

SEC. 5033. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for carrying out this subtitle, to remain available until expended--

      (1) $60,000,000 for fiscal year 2004;

      (2) $70,000,000 for fiscal year 2005; and

      (3) $80,000,000 for fiscal year 2006.

Subtitle D--Advanced Vehicles

SEC. 5041. DEFINITIONS.

    For the purposes of this subtitle, the following definitions apply:

      (1) ALTERNATIVE FUELED VEHICLE- The term ‘alternative fueled vehicle’ means a vehicle propelled solely on an alternative fuel as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211), except the term does not include any vehicle that the Secretary determines, by rule, does not yield substantial environmental benefits over a vehicle operating solely on gasoline or diesel derived from fossil fuels.

      (2) FUEL CELL VEHICLE- The term ‘fuel cell vehicle’ means a vehicle propelled by one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel which is stored on board the vehicle in any form and may or may not require reformation prior to use.

      (3) HYBRID VEHICLE- The term ‘hybrid vehicle’ means a medium or heavy duty vehicle propelled by an internal combustion engine using any combustible fuel and an onboard rechargeable battery storage system.

      (4) NEIGHBORHOOD ELECTRIC VEHICLE- The term ‘neighborhood electric vehicle’ means a motor vehicle that qualifies as both--

        (A) a low-speed vehicle, as such term is defined in section 571.3(b) of title 49, Code of Federal Regulations; and

        (B) a zero-emission vehicle, as such term is defined in section 86.1702-99 of title 40, Code of Federal Regulations.

      (5) PILOT PROGRAM- The term ‘pilot program’ means the competitive grant program established under section 5042.

      (6) ULTRA-LOW SULFUR DIESEL VEHICLE- The term ‘ultra-low sulfur diesel vehicle’ means a vehicle manufactured in model years 2002 through 2006 powered by a heavy-duty diesel engine that--

        (A) is fueled by diesel fuel which contains sulfur at not more than 15 parts per million; and

        (B) emits not more than the lesser of--

          (i) for vehicles manufactured in--

            (I) model years 2002 and 2003, 3.0 grams per brake horsepower-hour of oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and

            (II) model years 2004 through 2006, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; or

          (ii) the emissions of nonmethane hydrocarbons, oxides of nitrogen, and particulate matter of the best performing technology of ultra-low sulfur diesel vehicles of the same class and application that are commercially available.

SEC. 5042. PILOT PROGRAM.

    (a) ESTABLISHMENT- The Secretary shall establish a competitive grant pilot program, to be administered through the Clean Cities Program of the Department of Energy, to provide not more than 10 geographically dispersed project grants to State governments, local governments, or metropolitan transportation authorities to carry out a project or projects for the purposes described in subsection (b).

    (b) GRANT PURPOSES- Grants under this section may be used for the following purposes:

      (1) The acquisition of alternative fueled vehicles or fuel cell vehicles, including--

        (A) passenger vehicles including neighborhood electric vehicles; and

        (B) motorized two-wheel bicycles, scooters, or other vehicles for use by law enforcement personnel or other State or local government or metropolitan transportation authority employees.

      (2) The acquisition of alternative fueled vehicles, hybrid vehicles, or fuel cell vehicles, including--

        (A) buses used for public transportation or transportation to and from schools;

        (B) delivery vehicles for goods or services; and

        (C) ground support vehicles at public airports, including vehicles to carry baggage or push airplanes away from terminal gates.

      (3) The acquisition of ultra-low sulfur diesel vehicles.

      (4) Infrastructure necessary to directly support an alternative fueled vehicle, fuel cell vehicle, or hybrid vehicle project funded by the grant, including fueling and other support equipment.

      (5) Operation and maintenance of vehicles, infrastructure, and equipment acquired as part of a project funded by the grant.

    (c) APPLICATIONS-

      (1) REQUIREMENTS- The Secretary shall issue requirements for applying for grants under the pilot program. At a minimum, the Secretary shall require that applications be submitted by the head of a State or local government or a metropolitan transportation authority, or any combination thereof, and a registered participant in the Clean Cities Program of the Department of Energy, and shall include--

        (A) a description of the projects proposed in the application, including how they meet the requirements of this subtitle;

        (B) an estimate of the ridership or degree of use of the projects proposed in the application;

        (C) an estimate of the air pollution emissions reduced and fossil fuel displaced as a result of the projects proposed in the application, and a plan to collect and disseminate environmental data, related to the projects to be funded under the grant, over the life of the projects;

        (D) a description of how the projects proposed in the application will be sustainable without Federal assistance after the completion of the term of the grant;

        (E) a complete description of the costs of each project proposed in the application, including acquisition, construction, operation, and maintenance costs over the expected life of the project;

        (F) a description of which costs of the projects proposed in the application will be supported by Federal assistance under this subtitle; and

        (G) documentation to the satisfaction of the Secretary that diesel fuel containing sulfur at not more than 15 parts per million is available for carrying out the projects, and a commitment by the applicant to use such fuel in carrying out the projects.

      (2) PARTNERS- An applicant under paragraph (1) may carry out projects under the pilot program in partnership with public and private entities.

    (d) SELECTION CRITERIA- In evaluating applications under the pilot program, the Secretary shall consider each applicant’s previous experience with similar projects and shall give priority consideration to applications that--

      (1) are most likely to maximize protection of the environment;

      (2) demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed projects and the greatest likelihood that each project proposed in the application will be maintained or expanded after Federal assistance under this subtitle is completed; and

      (3) exceed the minimum requirements of subsection (c)(1)(A).

    (e) PILOT PROJECT REQUIREMENTS-

      (1) MAXIMUM AMOUNT- The Secretary shall not provide more than $20,000,000 in Federal assistance under the pilot program to any applicant.

      (2) COST SHARING- The Secretary shall not provide more than 50 percent of the cost, incurred during the period of the grant, of any project under the pilot program.

      (3) MAXIMUM PERIOD OF GRANTS- The Secretary shall not fund any applicant under the pilot program for more than 5 years.

      (4) DEPLOYMENT AND DISTRIBUTION- The Secretary shall seek to the maximum extent practicable to ensure a broad geographic distribution of project sites.

      (5) TRANSFER OF INFORMATION AND KNOWLEDGE- The Secretary shall establish mechanisms to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants

and to other interested parties, including other applicants that submitted applications.

    (f) SCHEDULE-

      (1) PUBLICATION- Not later than 3 months after the date of the enactment of this Act, the Secretary shall publish in the Federal Register, Commerce Business Daily, and elsewhere as appropriate, a request for applications to undertake projects under the pilot program. Applications shall be due within 6 months of the publication of the notice.

      (2) SELECTION- Not later than 6 months after the date by which applications for grants are due, the Secretary shall select by competitive, peer review all applications for projects to be awarded a grant under the pilot program.

    (g) LIMIT ON FUNDING- The Secretary shall provide not less than 20 percent and not more than 25 percent of the grant funding made available under this section for the acquisition of ultra-low sulfur diesel vehicles.

SEC. 5043. REPORTS TO CONGRESS.

    (a) INITIAL REPORT- Not later than 2 months after the date grants are awarded under this subtitle, the Secretary shall transmit to the Congress a report containing--

      (1) an identification of the grant recipients and a description of the projects to be funded;

      (2) an identification of other applicants that submitted applications for the pilot program; and

      (3) a description of the mechanisms used by the Secretary to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants and to other interested parties, including other applicants that submitted applications.

    (b) EVALUATION- Not later than 3 years after the date of the enactment of this Act, and annually thereafter until the pilot program ends, the Secretary shall transmit to the Congress a report containing an evaluation of the effectiveness of the pilot program, including an assessment of the benefits to the environment derived from the projects included in the pilot program as well as an estimate of the potential benefits to the environment to be derived from widespread application of alternative fueled vehicles and ultra-low sulfur diesel vehicles.

SEC. 5044. AUTHORIZATION OF APPROPRIATIONS.

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

Subtitle E--Hydrogen Fuel Cell Heavy-Duty Vehicles

SEC. 5051. DEFINITION.

    For the purposes of this subtitle, the term ‘advanced vehicle technologies program’ means the program created pursuant to section 5506 of title 49, United States Code.

SEC. 5052. FINDINGS.

    The Congress makes the following findings:

      (1) The Department of Energy and the Department of Transportation jointly developed the consortium-based advanced vehicle technologies program to develop energy efficient and clean heavy-duty vehicles in 1998.

      (2) The majority of clean fuel vehicles in operation today are transit buses.

      (3) Hydrogen fuel cell heavy-duty vehicle bus deployments can most appropriately advance hydrogen fuel cell technology development due to centralized refueling, stable duty cycles, and fixed routes.

      (4) Hydrogen fuel cell heavy-duty vehicle bus deployments are the most effective manner in which to advance technology developments for public awareness, consumption, and acceptance.

SEC. 5053. HYDROGEN FUEL CELL BUSES.

    The Secretary of Energy, through the advanced vehicle technologies program, in coordination with the Secretary of Transportation, shall advance the development of fuel cell bus technologies by providing funding for 4 demonstration sites that--

      (1) have or will soon have hydrogen infrastructure for fuel cell bus operation; and

      (2) are operated by entities with experience in the development of fuel cell bus technologies,

    to enable the widespread utilization of fuel cell buses. Such demonstrations shall address the reliability of fuel cell heavy-duty vehicles, expense, infrastructure, containment, storage, safety, training, and other issues.

SEC. 5054. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of Energy $10,000,000 for each of the fiscal years 2004 through 2008 for carrying out this subtitle.

Subtitle F--Miscellaneous

SEC. 5061. RAILROAD EFFICIENCY.

    (a) ESTABLISHMENT- The Secretary shall, in conjunction with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, establish a public-private research partnership involving the Federal Government, the railroad industry, locomotive manufacturers and equipment suppliers, and the research facility owned by the Federal Railroad Administration and operated by contract. The goal of the research partnership shall include developing and demonstrating locomotive technologies that increase fuel economy, reduce emissions, and lower costs.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out the requirements of this section $25,000,000 for fiscal year 2004, $30,000,000 for fiscal year 2005, and $35,000,000 for fiscal year 2006.

SEC. 5062. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

    Within 180 days after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall provide a report to the Congress on the Environmental Protection Agency’s experience with the trading of mobile source emission reduction credits for use by owners and operators of stationary source emission sources to meet emission offset requirements within a nonattainment area. The report shall describe--

      (1) projects approved by the Environmental Protection Agency that include the trading of mobile source emission reduction credits for use by stationary sources in complying with offset requirements, including project and stationary sources location, volumes of emissions offset and traded, a description of the sources of mobile emission reduction credits, and, if available, the cost of the credits;

      (2) the significant issues identified by the Environmental Protection Agency in its consideration and approval of trading in such projects;

      (3) the requirements for monitoring and assessing the air quality benefits of any approved project;

      (4) the statutory authority upon which the Environmental Protection Agency has based approval of such projects;

      (5) an evaluation of how the resolution of issues in approved projects could be utilized in other projects; and

      (6) any other issues the Environmental Protection Agency considers relevant to the trading and generation of mobile source emission reduction credits for use by stationary sources or for other purposes.

SEC. 5063. IDLE REDUCTION TECHNOLOGIES.

    (a) DEFINITIONS- For purposes of this section:

      (1) IDLE REDUCTION TECHNOLOGY- The term ‘idle reduction technology’ means a device or system of devices utilized to reduce long-duration idling of a heavy-duty vehicle.

      (2) HEAVY-DUTY VEHICLE- The term ‘heavy-duty vehicle’ means a vehicle that has a gross vehicle weight rating greater than 26,000 pounds and is powered by a diesel engine.

      (3) LONG-DURATION IDLING- The term ‘long-duration idling’ means the operation of a main drive engine, for a period greater than 15 consecutive minutes, where the main drive engine is not engaged in gear. Such term does not apply to routine stoppages associated with traffic movement or congestion.

    (b) STUDIES OF THE BENEFITS OF IDLE REDUCTION TECHNOLOGIES-

      (1) POTENTIAL FUEL SAVINGS- Not later than 90 days after the date of enactment of this section, the Secretary of Energy shall, in consultation with the Secretary of Transportation, commence a study to analyze the potential fuel savings resulting from use of idle reduction technologies.

      (2) RECOGNITION OF BENEFITS OF ADVANCED IDLE REDUCTION TECHNOLOGIES- Within 90 days after the date of enactment of this section, 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 long-duration 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 section, 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 reduction technologies, and whether such credits should be subject to an emissions trading system, and shall revise Agency regulations and guidance as the Administrator deems appropriate.

      (3) IDLING TECHNOLOGIES- Not later than 180 days after the date of the enactment of this section, the Secretary of Energy, in consultation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall commence a study to analyze where heavy duty and other vehicles stop for long duration idling.

    (c) VEHICLE WEIGHT EXEMPTION- Section 127(a) of title 23, United States Code, is amended by adding at the end the following: ‘In instances where an idle reduction technology is installed onboard a motor vehicle, the maximum gross vehicle weight limit and the axle weight limit for any motor vehicle equipped with an idling reduction system may be increased by an amount necessary to compensate for the additional weight of the idling reduction system, except that the weight limit increase shall be no greater than 400 pounds.’.

SEC. 5064. STUDY OF AVIATION FUEL CONSERVATION AND EMISSIONS.

    The Administrator of the Federal Aviation Administration and the Administrator of the Environmental Protection Agency shall jointly commence a study within 60 days after the date of enactment of this Act to identify the impact of aircraft emissions on air quality in nonattainment areas and to identify ways to promote fuel conservation measures for aviation, enhance fuel efficiency, and reduce emissions. As part of this study, the Administrator of the Federal Aviation Administration and the Administrator of the Environmental Protection Agency shall focus on how air traffic management inefficiencies, such as aircraft idling at airports, result in unnecessary fuel burn and air emissions. Within 180 days after the commencement of the study, the Administrator of the Federal Aviation Administration and the Administrator of the Environmental Protection Agency shall submit a report to the Committees on Energy and Commerce and Transportation and Infrastructure of the House of Representatives and the Committees on Environment and Public Works and Commerce, Science, and Transportation of the Senate containing the results of the study and recommendations as to how unnecessary fuel use and emissions affecting air quality may be reduced, without impacting safety and security, increasing individual aircraft noise, and taking into account all aircraft emissions and their relative impact on human health.

SEC. 5065. DIESEL FUELED VEHICLES.

    (a) DIESEL COMBUSTION AND AFTER TREATMENT TECHNOLOGIES- The Secretary of Energy shall accelerate efforts to improve diesel combustion and after-treatment technologies for use in diesel fueled motor vehicles.

    (b) GOAL-

      (1) COMPLIANCE WITH TIER 2 EMISSION STANDARDS BY 2010- The Secretary shall carry out subsection (a) with a view to developing and demonstrating diesel technology meeting tier 2 emission standards not later than 2010.

      (2) TIER 2 EMISSION STANDARDS DEFINED- In this subsection, the term ‘tier 2 emission standards’ means the motor vehicle emission standards promulgated by the Administrator of the Environmental Protection Agency on February 10, 2000, under sections 202 and 211 of the Clean Air Act to apply to passenger cars, light trucks, and larger passenger vehicles of model years after the 2003 vehicle model year.

SEC. 5066. HYBRID VEHICLES.

    (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 hybrid vehicle which is either a passenger automobile or light duty truck with fewer than 2 occupants to operate in high occupancy vehicle lanes.

    (b) DEFINITION- In this section, the term ‘hybrid vehicle’ means a motor vehicle which draws propulsion energy from both--

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

      (2) an onboard rechargeable energy storage system.

SEC. 5067. WAIVERS OF ALTERNATIVE FUELED VEHICLE FUELING REQUIREMENT.

    Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended to read as follows:

    ‘(E)(i) Dual fueled vehicles acquired pursuant to this section shall be operated on alternative fuels unless the Secretary determines that an agency needs a waiver of such requirement for vehicles in the fleet of the agency in a particular geographic area where--

      ‘(I) the alternative fuel otherwise required to be used in the vehicle is not reasonably available to retail purchasers of the fuel, as certified to the Secretary by the head of the agency; or

      ‘(II) the cost of the alternative fuel otherwise required to be used in the vehicle is unreasonably more expensive compared to gasoline, as certified by the head of the agency.

    ‘(ii) The Secretary shall monitor compliance with this subparagraph by all such fleets and shall report annually to the Congress on the extent to which the requirements of

this subparagraph 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.’.

TITLE VI--DOE PROGRAMS

SEC. 6001. PURPOSES.

    The purposes of this title are to--

      (1) contribute to a national energy strategy through Department of Energy programs that promote the production and conservation of energy in partnership with industry;

      (2) protect and strengthen the Nation’s economy, standard of living, and national security by reducing dependence on imported energy;

      (3) meet future needs for energy services at the lowest total cost to the Nation, giving balanced and comprehensive consideration to technologies that improve the efficiency of energy end uses and that enhance energy supply;

      (4) reduce the environmental impacts of energy production, distribution, transportation, and use;

      (5) help increase domestic production of energy, increase the availability of hydrocarbon reserves, and lower energy prices; and

      (6) stimulate economic growth and enhance the ability of United States companies to compete in future markets for advanced energy technologies.

SEC. 6002. DEFINITIONS.

    For purposes of this title:

      (1) DEPARTMENT- The term ‘Department’ means the Department of Energy.

      (2) DEPARTMENTAL MISSION- The term ‘departmental mission’ means any of the functions vested in the Secretary of Energy by the Department of Energy Organization Act (42 U.S.C. 7101 et seq.) or other law.

      (3) INSTITUTION OF HIGHER EDUCATION- The term ‘institution of higher education’ has the meaning given that term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

      (4) JOINT VENTURE- The term ‘joint venture’ has the meaning given that term under section 2 of the National Cooperative Research and Production Act of 1993 (15 U.S.C. 4301).

      (5) NATIONAL LABORATORY- The term ‘National Laboratory’ means any of the following laboratories owned by the Department:

        (A) Ames National Laboratory.

        (B) Argonne National Laboratory.

        (C) Brookhaven National Laboratory.

        (D) Fermi National Laboratory.

        (E) Idaho National Engineering and Environmental Laboratory.

        (F) Lawrence Berkeley National Laboratory.

        (G) Lawrence Livermore National Laboratory.

        (H) Los Alamos National Laboratory.

        (I) National Energy Technology Laboratory.

        (J) National Renewable Energy Laboratory.

        (K) Oak Ridge National Laboratory.

        (L) Pacific Northwest National Laboratory.

        (M) Princeton Plasma Physics Laboratory.

        (N) Sandia National Laboratories.

        (O) Thomas Jefferson National Accelerator Facility.

      (6) NONMILITARY ENERGY LABORATORY- The term ‘nonmilitary energy laboratory’ means any of the following laboratories of the Department:

        (A) Ames National Laboratory.

        (B) Argonne National Laboratory.

        (C) Brookhaven National Laboratory.

        (D) Fermi National Laboratory.

        (E) Lawrence Berkeley National Laboratory.

        (F) Oak Ridge National Laboratory.

        (G) Pacific Northwest National Laboratory.

        (H) Princeton Plasma Physics Laboratory.

        (I) Stanford Linear Accelerator Center.

        (J) Thomas Jefferson National Accelerator Facility.

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

Subtitle A--Energy Efficiency

PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6011. ENERGY EFFICIENCY.

    (a) IN GENERAL- The following sums are authorized to be appropriated to the Secretary for energy efficiency and conservation activities, including activities authorized under this subtitle:

      (1) For fiscal year 2003, $560,000,000.

      (2) For fiscal year 2004, $616,000,000.

      (3) For fiscal year 2005, $695,000,000.

      (4) For fiscal year 2006, $772,000,000.

      (5) For fiscal year 2007, $865,000,000.

    (b) ALLOCATIONS- From amounts authorized under subsection (a), the following sums are authorized:

      (1) LIGHTING SYSTEMS- For activities under section 6021, $10,000,000 for fiscal year 2003 and $50,000,000 for each of fiscal years 2004 through 2007.

      (2) SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM- For activities under section 6032--

        (A) for fiscal year 2003, $1,000,000;

        (B) for fiscal year 2004, $4,000,000;

        (C) for fiscal year 2005, $7,000,000;

        (D) for fiscal year 2006, $7,000,000; and

        (E) for fiscal year 2007, $7,000,000.

    (c) EXTENDED AUTHORIZATION- There are authorized to be appropriated to the Secretary for activities under section 6021, $50,000,000 for each of fiscal years 2008 through 2012.

    (d) LIMITS ON USE OF FUNDS- None of the funds authorized to be appropriated under this section may be used for--

      (1) the promulgation and implementation of energy efficiency regulations;

      (2) the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act;

      (3) the State Energy Program under part D of title III of the Energy Policy and Conservation Act; or

      (4) the Federal Energy Management Program under part 3 of title V of the National Energy Conservation Policy Act.

PART 2--LIGHTING SYSTEMS

SEC. 6021. NEXT GENERATION LIGHTING INITIATIVE.

    (a) IN GENERAL- The Secretary shall carry out a Next Generation Lighting Initiative in accordance with this section to support activities related to advanced solid-state lighting technologies based on white light emitting diodes.

    (b) OBJECTIVES- The objectives of the initiative shall be--

      (1) to develop, by 2012, advanced solid-state lighting technologies based on white light emitting diodes that, compared to incandescent and fluorescent lighting technologies, are--

        (A) longer lasting;

        (B) more energy-efficient; and

        (C) cost-competitive;

      (2) to develop an inorganic white light emitting diode that has an efficiency of 160 lumens per watt and a 10-year lifetime; and

      (3) to develop an organic white light emitting diode with an efficiency of 100 lumens per watt with a 5-year lifetime that--

        (A) illuminates over a full color spectrum;

        (B) covers large areas over flexible surfaces; and

        (C) does not contain harmful pollutants, such as mercury, typical of fluorescent lamps.

    (c) CONSORTIUM-

      (1) IN GENERAL- The Secretary shall establish the Next Generation Lighting Initiative through a private consortium (which may include private firms, trade associations and institutions of higher education), which the Secretary shall select through a competitive process. Each proposed consortium shall submit to the Secretary such information as the Secretary may require, including a program plan agreed to by all participants of the consortium.

      (2) JOINT VENTURE- The consortium shall be structured as a joint venture among the participants of the consortium. The Secretary shall serve on the governing council of the consortium.

      (3) ELIGIBILITY- To be eligible to be selected as the consortium under paragraph (1), an applicant must be broadly representative of United States solid-state lighting research, development, and manufacturing expertise as a whole.

      (4) GRANTS- (A) The Secretary shall award grants to the consortium, which the consortium may disburse to researchers, including those who are not participants of the consortium.

      (B) To receive a grant, the consortium must provide a description to the Secretary of the proposed activities and list the parties that will receive funding.

      (5) NATIONAL LABORATORIES- National Laboratories may participate in the activities described in this section, and may receive funds from the consortium.

      (6) INTELLECTUAL PROPERTY- Participants in the consortium and the Federal Government shall have royalty-free nonexclusive rights to use intellectual property derived from activities funded pursuant to this subsection.

    (d) DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION- The Secretary shall carry out the development, demonstration, and commercial application activities of the Next Generation Lighting Initiative through awards to private firms, trade associations, and institutions of higher education. In selecting awardees, the Secretary may give preference to members of the consortium selected pursuant to subsection (c).

    (e) PLANS AND ASSESSMENTS- (1) The consortium shall formulate an annual operating plan which shall include priorities, technical milestones, and plans for technology transfer, and which shall be subject to approval by the Secretary.

    (2) The Secretary shall enter into an arrangement with the National Academy of Sciences to conduct periodic reviews of the Next Generation Lighting Initiative. The Academy shall review the priorities, technical milestones, and plans for technology transfer established under paragraph (1) and evaluate the progress toward achieving them. The Secretary shall consider the results of such reviews in evaluating the plans submitted under paragraph (1).

    (f) AUDIT- The Secretary shall retain an independent, commercial auditor to perform an audit of the consortium to determine the extent to which the funds authorized by this section have been expended in a manner consistent with the purposes of this section. The auditor shall transmit a report annually to the Secretary, who shall transmit the report to the Congress, along with a plan to remedy any deficiencies cited in the report.

    (g) SUNSET- The Next Generation Lighting Initiative shall terminate no later than September 30, 2013.

    (h) DEFINITIONS- As used in this section:

      (1) ADVANCED SOLID-STATE LIGHTING- The term ‘advanced solid-state lighting’ means a semiconducting device package and delivery system that produces white light using externally applied voltage.

      (2) INORGANIC WHITE LIGHT EMITTING DIODE- The term ‘inorganic white light emitting diode’ means an inorganic semiconducting package that produces white light using externally applied voltage.

      (3) ORGANIC WHITE LIGHT EMITTING DIODE- The term ‘organic white light emitting diode’ means an organic semiconducting compound that produces white light using externally applied voltage.

PART 3--VEHICLES

SEC. 6031. DEFINITIONS.

    For purposes of this part, the term--

      (1) ‘battery’ means an energy storage device that previously has been used to provide motive power in a vehicle powered in whole or in part by electricity; and

      (2) ‘associated equipment’ means equipment located where the batteries will be used that is necessary to enable the use of the energy stored in the batteries.

SEC. 6032. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) PROGRAM- The Secretary shall establish and conduct a program for the secondary use of batteries. Such program shall be--

      (1) designed to demonstrate the use of batteries in secondary application, including utility and commercial power storage and power quality;

      (2) structured to evaluate the performance, including useful service life and costs, of such batteries in field operations, and evaluate the necessary supporting infrastructure, including reuse and disposal of batteries; and

      (3) coordinated with ongoing secondary battery use programs at the National Laboratories and in industry.

    (b) SOLICITATION- (1) Not later than 6 months after the date of the enactment of this Act, the Secretary shall solicit proposals to demonstrate the secondary use of batteries and associated equipment and supporting infrastructure in geographic locations throughout the United States. The Secretary may make additional solicitations for proposals if the Secretary determines that such solicitations are necessary to carry out this section.

    (2)(A) Proposals submitted in response to a solicitation under this section shall include--

      (i) a description of the project, including the batteries to be used in the project, the proposed locations and applications for the batteries, the number of batteries to be demonstrated, and the type, characteristics, and estimated life-cycle costs of the batteries compared to other energy storage devices currently used;

      (ii) the contribution, if any, of State or local governments and other persons to the demonstration project;

      (iii) the type of associated equipment and supporting infrastructure to be demonstrated; and

      (iv) any other information the Secretary considers appropriate.

    (B) If the proposal includes a lease arrangement, the proposal shall indicate the terms of such lease arrangement for the batteries and associated equipment.

    (c) SELECTION OF PROPOSALS- (1)(A) The Secretary, in cooperation with affected Federal Regulatory agencies, shall, not later than 3 months after the closing date established by the Secretary for receipt of proposals under subsection (b), select at least 5 proposals to receive financial assistance under this section.

    (B) No one project selected under this section shall receive more than 25 percent of the funds authorized under this section. No more than 3 projects selected under this section shall demonstrate the same battery type.

    (2) In selecting a proposal under this section, the Secretary shall consider--

      (A) the ability of the proposer to acquire the batteries and associated equipment and to successfully manage and conduct the demonstration project, including satisfying the reporting requirements set forth in paragraph (3)(B);

      (B) the geographic and climatic diversity of the projects selected;

      (C) the long-term technical and competitive viability of the batteries to be used in the project and of the original manufacturer of such batteries;

      (D) the suitability of the batteries for their intended uses;

      (E) the technical performance of the batteries, including the expected additional useful life and the batteries’ ability to retain energy;

      (F) the environmental effects of the use of and disposal of the batteries proposed to be used in the project selected;

      (G) the extent of involvement of State or local government and other persons in the demonstration project and whether such involvement will--

        (i) permit a reduction of the Federal cost share per project; or

        (ii) otherwise be used to allow the Federal contribution to be provided to demonstrate a greater number of batteries; and

      (H) such other criteria as the Secretary considers appropriate.

    (3) CONDITIONS- The Secretary shall require that--

      (A) as a part of a demonstration project, the users of the batteries provide to the proposer information regarding the operation, maintenance, performance, and use of the batteries, and the proposer provide such information to the battery manufacturer, for 3 years after the beginning of the demonstration project;

      (B) the proposer provide to the Secretary and the Administrator of the United States Environmental Protection Agency such information regarding the operation, maintenance, performance, and use of the batteries as the Secretary or the Administrator may request;

      (C) the proposer provide to the Secretary such information regarding the disposal of the batteries as the Secretary may require to ensure that the proposer disposes of the batteries in accordance with applicable law; and

      (D) the proposer provide at least 50 percent of the costs associated with the proposal.

Subtitle B--Distributed Energy and Electric Energy Systems

PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6201. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    The following sums are authorized to be appropriated to the Secretary for distributed energy and electric energy systems activities, including activities authorized under this subtitle:

      (1) For fiscal year 2004, $190,000,000.

      (2) For fiscal year 2005, $200,000,000.

      (3) For fiscal year 2006, $220,000,000.

      (4) For fiscal year 2007, $240,000,000.

PART 2--DISTRIBUTED POWER

SEC. 6221. STRATEGY.

    (a) REQUIREMENT- Not later than 1 year after the date of enactment of this Act, the Secretary shall develop and transmit to the Congress a strategy for a comprehensive program to develop hybrid distributed power systems that combine--

      (1) one or more renewable electric power generation technologies of 10 megawatts or less located near the site of electric energy use; and

      (2) nonintermittent electric power generation technologies suitable for use in a distributed power system.

    (b) CONTENTS- The strategy shall--

      (1) identify the needs best met with such hybrid distributed power systems and the technological barriers to the use of such systems;

      (2) provide for the development of methods to design, test, integrate into systems, and operate such hybrid distributed power systems;

      (3) include, as appropriate, activities needed for the adoption of such hybrid distributed power systems, including energy storage devices and environmental control technologies; and

      (4) describe how activities under the strategy will be integrated with other activities supported by the Department of Energy related to electric power technologies.

SEC. 6222. HIGH POWER DENSITY INDUSTRY PROGRAM.

    The Secretary shall establish a comprehensive program to improve energy efficiency of high power density facilities, including data centers, server farms, and telecommunications facilities. Such program shall consider technologies that provide significant improvement in thermal controls, metering, load management, peak load reduction, or the efficient cooling of electronics.

SEC. 6223. MICRO-COGENERATION ENERGY TECHNOLOGY.

    The Secretary shall make competitive, merit-based grants to consortia for the development of micro-cogeneration energy technology. The consortia shall explore the use of small-scale combined heat and power in residential heating appliances.

PART 3--TRANSMISSION SYSTEMS

SEC. 6231. TRANSMISSION INFRASTRUCTURE SYSTEMS.

    (a) PROGRAM AUTHORIZED- The Secretary shall develop a program to promote improved reliability and efficiency of electrical transmission systems. Such program may include--

      (1) advanced energy technologies, materials, and systems;

      (2) advanced grid reliability and efficiency technology development;

      (3) technologies contributing to significant load reductions;

      (4) advanced metering, load management, and control technologies;

      (5) technologies to enhance existing grid components;

      (6) the development and use of high-temperature superconductors to--

        (A) enhance the reliability, operational flexibility, or power-carrying capability of electric transmission or distribution systems; or

        (B) increase the efficiency of electric energy generation, transmission, distribution, or storage systems;

      (7) integration of power systems, including systems to deliver high-quality electric power, electric power reliability, and combined heat and power;

      (8) any other infrastructure technologies, as appropriate; and

      (9) technology transfer and education.

    (b) PROGRAM PLAN- Not later than 1 year after the date of the enactment of this Act, the Secretary, in consultation with other appropriate Federal agencies, shall prepare and transmit to Congress a 5-year program plan to guide activities under this section. In preparing the program plan, the Secretary shall consult with utilities, energy services providers, manufacturers, institutions of higher education, other appropriate State and local agencies, environmental organizations, professional and technical societies, and any other persons the Secretary considers appropriate.

    (c) REPORT- Not later than 2 years after the transmittal of the plan under subsection (b), the Secretary shall transmit a report to Congress describing the progress made under this section and identifying any additional resources needed to continue the development and commercial application of transmission infrastructure technologies.

Subtitle C--Renewable Energy

PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6301. RENEWABLE ENERGY.

    (a) IN GENERAL- The following sums are authorized to be appropriated to the Secretary for renewable energy activities, including activities authorized under this subtitle:

      (1) For fiscal year 2004, $460,000,000.

      (2) For fiscal year 2005, $510,000,000.

      (3) For fiscal year 2006, $560,000,000.

      (4) For fiscal year 2007, $609,000,000.

    (b) BIOENERGY- From the amounts authorized under subsection (a), the following sums are authorized to be appropriated to carry out section 6321 and other bioenergy activities:

      (1) For fiscal year 2004, $135,425,000.

      (2) For fiscal year 2005, $155,600,000.

      (3) For fiscal year 2006, $167,650,000.

      (4) For fiscal year 2007, $180,000,000.

    (c) USE OF FUNDS-

      (1) BIOENERGY- Of the funds authorized under subsection (b), not less than $5,000,000 for each fiscal year shall be made available for grants to Historically Black Colleges and Universities, Tribal Colleges, and Hispanic-Serving Institutions.

      (2) RURAL AND REMOTE LOCATIONS- In carrying out this section, the Secretary, in consultation with the Secretary of Agriculture, shall demonstrate the production and use of energy from advanced wind power technology, biomass, geothermal energy systems, and other renewable energy technologies in order to assist in delivering electricity to rural and remote locations.

      (3) HYDROPOWER- Of the funds authorized under subsection (a), not less than $5,000,000 for each fiscal year shall be made available for demonstration projects of off-stream pumped storage hydropower.

PART 2--BIOENERGY

SEC. 6321. BIOENERGY PROGRAMS.

    (a) PROGRAM- The Secretary shall conduct a program to facilitate the production of bioenergy, including--

      (1) biopower energy systems;

      (2) biofuels;

      (3) integrated applications of both biopower and biofuels;

      (4) feedstocks; and

      (5) economic analysis.

    (b) DEFINITION- For purposes of this section, the term ‘bioenergy’ includes energy produced from animal waste and agricultural crops.

Subtitle D--Nuclear Energy

PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6411. NUCLEAR ENERGY.

    (a) CORE PROGRAMS- The following sums are authorized to be appropriated to the Secretary for nuclear energy activities, regulation of research and development activities and nuclear regulatory research, including activities authorized under this subtitle, other than those described in subsection (b):

      (1) For fiscal year 2004, $200,000,000.

      (2) For fiscal year 2005, $233,000,000.

      (3) For fiscal year 2006, $266,000,000.

      (4) For fiscal year 2007, $300,000,000.

    (b) NUCLEAR INFRASTRUCTURE SUPPORT- The following sums are authorized to be appropriated to the Secretary for activities under section 6421(f):

      (1) For fiscal year 2004, $120,000,000.

      (2) For fiscal year 2005, $125,000,000.

      (3) For fiscal year 2006, $130,000,000.

      (4) For fiscal year 2007, $135,000,000.

    (c) ALLOCATIONS- From amounts authorized under subsection (a), the following sums are authorized:

      (1) ADVANCED FUEL RECYCLING PROGRAM- For activities under section 6431--

        (A) for fiscal year 2004, $80,000,000;

        (B) for fiscal year 2005, $93,000,000;

        (C) for fiscal year 2006, $106,000,000; and

        (D) for fiscal year 2007, $120,000,000.

      (2) UNIVERSITY PROGRAMS- For activities under section 6441--

        (A) for fiscal year 2004, $25,000,000;

        (B) for fiscal year 2005, $33,900,000;

        (C) for fiscal year 2006, $37,900,000; and

        (D) for fiscal year 2007, $43,600,000.

    (d) LIMIT ON USE OF FUNDS- None of the funds authorized under this section may be used for decommissioning the Fast Flux Test Facility.

PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 6421. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) NUCLEAR ENERGY RESEARCH INITIATIVE- The Secretary shall carry out a Nuclear Energy Research Initiative for research and development related to nuclear energy.

    (b) NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM- The Secretary shall carry out a Nuclear Energy Plant Optimization Program to support research and development activities addressing reliability, availability, productivity, and component aging in existing nuclear power plants.

    (c) NUCLEAR POWER 2010 PROGRAM- The Secretary shall carry out a Nuclear Power 2010 Program, consistent with recommendations in the October 2001 report entitled ‘A Roadmap to Deploy New Nuclear Power Plants in the United States by 2010’ issued by the Nuclear Energy Research Advisory Committee of the Department. The Program shall--

      (1) rely on the expertise and capabilities of the National Laboratories in the areas of advanced nuclear fuels cycles and fuels testing;

      (2) pursue an approach that considers a variety of reactor designs;

      (3) include participation of international collaborators in research, development, and design efforts as appropriate; and

      (4) encourage industry participation.

    (d) GENERATION IV NUCLEAR ENERGY SYSTEMS INITIATIVE- The Secretary shall carry out a Generation IV Nuclear Energy Systems Initiative to develop an overall technology plan and to support research and development necessary to make an informed technical decision about the most promising candidates for eventual commercial application. The Initiative shall examine advanced proliferation-resistant and passively safe reactor designs, including designs that--

      (1) are economically competitive with other electric power generation plants;

      (2) have higher efficiency, lower cost, and improved safety compared to reactors in operation on the date of enactment of this Act;

      (3) use fuels that are proliferation resistant and have substantially reduced production of high-level waste per unit of output; and

      (4) utilize improved instrumentation.

    (e) REACTOR PRODUCTION OF HYDROGEN- The Secretary shall carry out research to examine designs for high-temperature reactors capable of producing large-scale quantities of hydrogen using thermochemical processes.

    (f) NUCLEAR INFRASTRUCTURE SUPPORT- The Secretary shall develop and implement a strategy for the facilities of the Office of Nuclear Energy, Science, and Technology and shall transmit a report containing the strategy along with the President’s budget request to the Congress for fiscal year 2005. Such strategy shall provide a cost-effective means for--

      (1) maintaining existing facilities and infrastructure, as needed;

      (2) closing unneeded facilities;

      (3) making facility upgrades and modifications; and

      (4) building new facilities.

PART 3--ADVANCED FUEL RECYCLING

SEC. 6431. ADVANCED FUEL RECYCLING PROGRAM.

    (a) IN GENERAL- The Secretary, through the Director of the Office of Nuclear Energy, Science and Technology, shall conduct an advanced fuel recycling technology research and development program to evaluate proliferation-resistant fuel recycling and transmutation technologies which minimize environmental or public health and safety impacts as an alternative to aqueous reprocessing technologies deployed as of the date of enactment of this Act

in support of evaluation of alternative national strategies for spent nuclear fuel and the Generation IV advanced reactor concepts, subject to annual review by the Secretary’s Nuclear Energy Research Advisory Committee or other independent entity, as appropriate. Opportunities to enhance progress of this program through international cooperation should be sought.

    (b) REPORTS- The Secretary shall report on the activities of the advanced fuel recycling technology research and development program, as part of the Department’s annual budget submission.

PART 4--UNIVERSITY PROGRAMS

SEC. 6441. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) ESTABLISHMENT- The Secretary shall support a program to invest in human resources and infrastructure in the nuclear sciences and engineering and related fields (including health physics and nuclear and radiochemistry), consistent with departmental missions related to civilian nuclear research and development.

    (b) DUTIES- In carrying out the program under this section, the Secretary shall--

      (1) establish a graduate and undergraduate fellowship program to attract new and talented students;

      (2) establish a Junior Faculty Research Initiation Grant Program to assist institutions of higher education in recruiting and retaining new faculty in the nuclear sciences and engineering;

      (3) support fundamental nuclear sciences and engineering research through the Nuclear Engineering Education Research Program;

      (4) encourage collaborative nuclear research among industry, National Laboratories, and institutions of higher education through the Nuclear Energy Research Initiative; and

      (5) support communication and outreach related to nuclear science and engineering.

    (c) MAINTAINING UNIVERSITY RESEARCH AND TRAINING REACTORS AND ASSOCIATED INFRASTRUCTURE- Activities under this section may include--

      (1) converting research reactors currently using high-enrichment fuels to low-enrichment fuels, upgrading operational instrumentation, and sharing of reactors among institutions of higher education;

      (2) providing technical assistance, in collaboration with the United States nuclear industry, in relicensing and upgrading training reactors as part of a student training program; and

      (3) providing funding for reactor improvements as part of a focused effort that emphasizes research, training, and education.

    (d) UNIVERSITY-NATIONAL LABORATORY INTERACTIONS- The Secretary shall develop--

      (1) a sabbatical fellowship program for professors at institutions of higher education to spend extended periods of time at National Laboratories in the areas of nuclear science and technology; and

      (2) a visiting scientist program in which National Laboratory staff can spend time in academic nuclear science and engineering departments.

    The Secretary may provide fellowships for students to spend time at National Laboratories in the area of nuclear science with a member of the Laboratory staff acting as a mentor.

    (e) OPERATING AND MAINTENANCE COSTS- Funding for a research project provided under this section may be used to offset a portion of the operating and maintenance costs of a research reactor at an institution of higher education used in the research project.

Subtitle E--Fossil Energy

PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6501. FOSSIL ENERGY.

    There are authorized to be appropriated to the Secretary for fossil energy activities, including activities authorized under this subtitle--

      (1) $523,000,000 for fiscal year 2004;

      (2) $542,000,000 for fiscal year 2005;

      (3) $558,000,000 for fiscal year 2006; and

      (4) $585,000,000 for fiscal year 2007.

PART 2--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES

SEC. 6521. PROGRAM AUTHORITY.

    (a) IN GENERAL- The Secretary shall carry out a program under this part for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production, including safe operations and environmental mitigation.

    (b) PROGRAM ELEMENTS- The program under this part shall address the following areas, including improving safety and minimizing environmental impacts of activities within each area:

      (1) Ultra-deepwater technology.

      (2) Ultra-deepwater architecture.

      (3) Unconventional natural gas and other petroleum resource exploration and production technology.

    (c) LIMITATION ON LOCATION OF FIELD ACTIVITIES- Field activities under the program under this part shall be carried out only--

      (1) in--

        (A) areas in the territorial waters of the United States not under any Outer Continental Shelf moratorium as of September 30, 2002;

        (B) areas onshore in the United States on public land administered by the Secretary of the Interior available for oil and gas leasing, where consistent with applicable law and land use plans; and

        (C) areas onshore in the United States on State or private land, subject to applicable law; and

      (2) with the approval of the appropriate Federal or State land management agency or private land owner.

    (d) NATIONAL ENERGY TECHNOLOGY LABORATORY- The Secretary, through the National Energy Technology Laboratory, shall carry out activities complementary to activities under subsection (b)(1).

    (e) CONSULTATION WITH SECRETARY OF THE INTERIOR- In carrying out this part, the Secretary shall consult regularly with the Secretary of the Interior.

SEC. 6522. ULTRA-DEEPWATER PROGRAM.

    (a) IN GENERAL- The Secretary shall carry out the activities under paragraphs (1) and (2) of section 6521(b), to maximize the value of the ultra-deepwater natural gas and other petroleum resources of the United States by increasing the supply of such resources and by reducing the cost and increasing the efficiency of exploration for and production of such resources, while improving safety and minimizing environmental impacts.

    (b) ROLE OF THE SECRETARY- The Secretary shall have ultimate responsibility for, and oversight of, all aspects of the program under this section.

    (c) ROLE OF THE PROGRAM CONSORTIUM-

      (1) IN GENERAL- The Secretary shall contract with a consortium to--

        (A) manage awards pursuant to subsection (f)(4);

        (B) make recommendations to the Secretary for project solicitations;

        (C) disburse funds awarded under subsection (f) as directed by the Secretary in accordance with the annual plan under subsection (e); and

        (D) carry out other activities assigned to the program consortium by this section.

      (2) LIMITATION- The Secretary may not assign any activities to the program consortium except as specifically authorized under this section.

      (3) CONFLICT OF INTEREST- (A) The Secretary shall establish procedures--

        (i) to ensure that each board member, officer, or employee of the program consortium who is in a decisionmaking capacity under subsection (f)(3) or (4) shall disclose to the Secretary any financial interests in, or financial relationships with, applicants for or recipients of awards under this section, including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; and

        (ii) to require any board member, officer, or employee with a financial relationship or interest disclosed under clause (i) to recuse himself or herself from any review under subsection (f)(3) or oversight under subsection (f)(4) with respect to such applicant or recipient.

      (B) The Secretary may disqualify an application or revoke an award under this section if a board member, officer, or employee has failed to comply with procedures required under subparagraph (A)(ii).

    (d) SELECTION OF THE PROGRAM CONSORTIUM-

      (1) IN GENERAL- The Secretary shall select the program consortium through an open, competitive process.

      (2) MEMBERS- The program consortium may include corporations, institutions of higher education, National Laboratories, or other research institutions. After submitting a proposal under paragraph (4), the program consortium may not add members without the consent of the Secretary.

      (3) TAX STATUS- The program consortium shall be an entity that is exempt from tax under section 501(c)(3) of the Internal Revenue Code of 1986.

      (4) SCHEDULE- Not later than 90 days after the date of enactment of this Act, the Secretary shall solicit proposals for the creation of the program consortium, which must be submitted not less than 180 days after the date of enactment of this Act. The Secretary shall select the program consortium not later than 240 days after such date of enactment.

      (5) APPLICATION- Applicants shall submit a proposal including such information as the Secretary may require. At a minimum, each proposal shall--

        (A) list all members of the consortium;

        (B) fully describe the structure of the consortium, including any provisions relating to intellectual property; and

        (C) describe how the applicant would carry out the activities of the program consortium under this section.

      (6) ELIGIBILITY- To be eligible to be selected as the program consortium, an applicant must be an entity whose members collectively have demonstrated capabilities in planning and managing programs in natural gas or other petroleum exploration or production.

      (7) CRITERION- The Secretary may consider the amount of the fee an applicant proposes to receive under subsection (g) in selecting a consortium under this section.

    (e) ANNUAL PLAN-

      (1) IN GENERAL- The program under this section shall be carried out pursuant to an annual plan prepared by the Secretary in accordance with paragraph (2).

      (2) DEVELOPMENT- (A) Before drafting an annual plan under this subsection, the Secretary shall solicit specific written recommendations from the program consortium for each element to be addressed in the plan, including those described in paragraph (4). The Secretary may request that the program consortium submit its recommendations in the form of a draft annual plan.

      (B) The Secretary shall submit the recommendations of the program consortium under subparagraph (A) to the Ultra-Deepwater Advisory Committee established under section 6525(a) for review, and such Advisory Committee shall provide to the Secretary written comments by a date determined by the Secretary. The Secretary may also solicit comments from any other experts.

      (C) The Secretary shall consult regularly with the program consortium throughout the preparation of the annual plan.

      (3) PUBLICATION- The Secretary shall transmit to the Congress and publish in the Federal Register the annual plan, along with any written comments received under paragraph (2)(A) and (B). The annual plan shall be transmitted and published not later than 60 days after the date of enactment of an Act

making appropriations for a fiscal year for the program under this section.

      (4) CONTENTS- The annual plan shall describe the ongoing and prospective activities of the program under this section and shall include--

        (A) a list of any solicitations for awards that the Secretary plans to issue to carry out activities, including the topics for such work, who would be eligible to apply, selection criteria, and the duration of awards; and

        (B) a description of the activities expected of the program consortium to carry out subsection (f)(4).

    (f) AWARDS-

      (1) IN GENERAL- The Secretary shall make awards to carry out activities under the program under this section. The program consortium shall not be eligible to receive such awards, but members of the program consortium may receive such awards.

      (2) PROPOSALS- The Secretary shall solicit proposals for awards under this subsection in such manner and at such time as the Secretary may prescribe, in consultation with the program consortium.

      (3) REVIEW- The Secretary shall make awards under this subsection through a competitive process, which shall include a review by individuals selected by the Secretary. Such individuals shall include, for each application, Federal officials, the program consortium, and non-Federal experts who are not board members, officers, or employees of the program consortium or of a member of the program consortium.

      (4) OVERSIGHT- (A) The program consortium shall oversee the implementation of awards under this subsection, consistent with the annual plan under subsection (e), including disbursing funds and monitoring activities carried out under such awards for compliance with the terms and conditions of the awards.

      (B) Nothing in subparagraph (A) shall limit the authority or responsibility of the Secretary to oversee awards, or limit the authority of the Secretary to review or revoke awards.

      (C) The Secretary shall provide to the program consortium the information necessary for the program consortium to carry out its responsibilities under this paragraph.

    (g) FEE-

      (1) IN GENERAL- To compensate the program consortium for carrying out its activities under this section, the Secretary shall provide to the program consortium a fee in an amount not to exceed 7.5 percent of the amounts awarded under subsection (f) for each fiscal year.

      (2) ADVANCE- The Secretary shall advance funds to the program consortium upon selection of the consortium, which shall be deducted from amounts to be provided under paragraph (1).

    (h) AUDIT- The Secretary shall retain an independent, commercial auditor to determine the extent to which funds provided to the program consortium, and funds provided under awards made under subsection (f), have been expended in a manner consistent with the purposes and requirements of this part. The auditor shall transmit a report annually to the Secretary, who shall transmit the report to Congress, along with a plan to remedy any deficiencies cited in the report.

SEC. 6523. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES PROGRAM.

    (a) IN GENERAL- The Secretary, after consulting with appropriate Federal regulatory agencies, shall carry out activities under section 6521(b)(3), to maximize the value of the onshore unconventional natural gas and other petroleum resources of the United States by increasing the supply of such resources and by reducing the cost and increasing the efficiency of exploration for and production of such resources, while improving safety and minimizing environmental impacts.

    (b) AWARDS-

      (1) IN GENERAL- The Secretary shall carry out this section through awards made through an open, competitive process.

      (2) CONSORTIA- In carrying out paragraph (1), the Secretary shall give preference to making awards to consortia.

    (c) AUDIT- The Secretary shall retain an independent, commercial auditor to determine the extent to which funds provided under awards made under this section have been expended in a manner consistent with the purposes and requirements of this part. The auditor shall transmit a report annually to the Secretary, who shall transmit the report to Congress, along with a plan to remedy any deficiencies cited in the report.

    (d) FOCUS AREAS- Awards under this section may focus on areas including advanced coal-bed methane, deep drilling, natural gas production from tight sands, natural gas production from gas shales, innovative exploration and production techniques, enhanced recovery techniques, and environmental mitigation of unconventional natural gas and other petroleum resources exploration and production.

    (e) ACTIVITIES BY THE UNITED STATES GEOLOGICAL SURVEY- The Secretary of the Interior, through the United States Geological Survey, shall, where appropriate, carry out programs to complement the programs under this section.

SEC. 6524. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) DEMONSTRATION PROJECTS- An application for an award under this part for a demonstration project shall describe with specificity the intended commercial use of the technology to be demonstrated.

    (b) FLEXIBILITY IN LOCATING DEMONSTRATION PROJECTS- Subject to the limitation in section 6521(c), a demonstration project under this part relating to an ultra-deepwater technology or an ultra-deepwater architecture may be conducted in deepwater depths.

    (c) INTELLECTUAL PROPERTY AGREEMENTS- If an award under this part is made to a consortium (other than the program consortium), the consortium shall provide to the Secretary a signed contract agreed to by all members of the consortium describing the rights of each member to intellectual property used or developed under the award.

    (d) TECHNOLOGY TRANSFER- Each recipient of an award under this part shall conduct technology transfer activities, as appropriate.

SEC. 6525. ADVISORY COMMITTEES.

    (a) ULTRA-DEEPWATER ADVISORY COMMITTEE-

      (1) ESTABLISHMENT- Not later than 270 days after the date of enactment of this section, the Secretary shall establish an advisory committee to be known as the Ultra-Deepwater Advisory Committee.

      (2) MEMBERSHIP- The advisory committee under this subsection shall be composed of members appointed by the Secretary and including--

        (A) individuals with extensive experience or operational knowledge of offshore natural gas and other petroleum exploration and production;

        (B) individuals broadly representative of the affected interests in ultra-deepwater natural gas and other petroleum production, including interests in environmental protection and safe operations;

        (C) no individuals who are Federal employees; and

        (D) no individuals who are board members, officers, or employees of the program consortium.

      (3) DUTIES- The advisory committee under this subsection shall--

        (A) advise the Secretary on the development and implementation of programs under this part related to ultra-deepwater natural gas and other petroleum resources; and

        (B) carry out section 6522(e)(2)(B).

      (4) COMPENSATION- A member of the advisory committee under this subsection shall serve without compensation but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code.

    (b) UNCONVENTIONAL RESOURCES TECHNOLOGY ADVISORY COMMITTEE-

      (1) ESTABLISHMENT- Not later than 270 days after the date of enactment of this section, the Secretary shall establish an advisory committee to be known as the Unconventional Resources Technology Advisory Committee.

      (2) MEMBERSHIP- The advisory committee under this subsection shall be composed of members appointed by the Secretary and including--

        (A) individuals with extensive experience or operational knowledge of unconventional natural gas and other petroleum resource exploration and production, including independent oil and gas producers;

        (B) individuals broadly representative of the affected interests in unconventional natural gas and other petroleum resource exploration and production, including interests in environmental protection and safe operations; and

        (C) no individuals who are Federal employees.

      (3) DUTIES- The advisory committee under this subsection shall advise the Secretary on the development and implementation of activities under this part related to unconventional natural gas and other petroleum resources.

      (4) COMPENSATION- A member of the advisory committee under this subsection shall serve without compensation but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code.

    (c) PROHIBITION- No advisory committee established under this section shall make recommendations on funding awards to consortia or for specific projects.

SEC. 6526. LIMITS ON PARTICIPATION.

    (a) IN GENERAL- An entity shall be eligible to receive an award under this part only if the Secretary finds--

      (1) that the entity’s participation in the program under this part would be in the economic interest of the United States; and

      (2) that either--

        (A) the entity is a United States-owned entity organized under the laws of the United States; or

        (B) the entity is organized under the laws of the United States and has a parent entity organized under the laws of a country which affords--

          (i) to United States-owned entities opportunities, comparable to those afforded to any other entity, to participate in any cooperative venture similar to those authorized under this part;

          (ii) to United States-owned entities local investment opportunities comparable to those afforded to any other entity; and

          (iii) adequate and effective protection for the intellectual property rights of United States-owned entities.

    (b) SENSE OF CONGRESS AND REPORT- It is the Sense of the Congress that ultra-deepwater technology developed under this part is to be developed primarily for production of ultra-deepwater natural gas and other petroleum resources of the United States, and that this priority is to be reflected in the terms of grants, contracts, and cooperative agreements entered under this part. As part of the annual Departmental budget submission, the Secretary shall report on all steps taken to implement the policy described in this subsection.

SEC. 6527. FUND.

    There is hereby established in the Treasury of the United States a separate fund to be known as the ‘Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Products Fund’.

SEC. 6528. SUNSET.

    The authority provided by this part shall terminate on September 30, 2010.

SEC. 6529. DEFINITIONS.

    In this part:

      (1) DEEPWATER- The term ‘deepwater’ means a water depth that is greater than 200 but less than 1,500 meters.

      (2) PROGRAM CONSORTIUM- The term ‘program consortium’ means the consortium selected under section 6522(d).

      (3) REMOTE OR INCONSEQUENTIAL- The term ‘remote or inconsequential’ has the meaning given

that term in regulations issued by the Office of Government Ethics under section 208(b)(2) of title 18, United States Code.

      (4) ULTRA-DEEPWATER- The term ‘ultra-deepwater’ means a water depth that is equal to or greater than 1,500 meters.

      (5) ULTRA-DEEPWATER ARCHITECTURE- The term ‘ultra-deepwater architecture’ means the integration of technologies for the exploration for, or production of, natural gas or other petroleum resources located at ultra-deepwater depths.

      (6) ULTRA-DEEPWATER TECHNOLOGY- The term ‘ultra-deepwater technology’ means a discrete technology that is specially suited to address one or more challenges associated with the exploration for, or production of, natural gas or other petroleum resources located at ultra-deepwater depths.

      (7) UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCE- The term ‘unconventional natural gas and other petroleum resource’ means natural gas and other petroleum resource located onshore in an economically inaccessible geological formation.

Subtitle F--Miscellaneous

SEC. 6601. WASTE REDUCTION AND USE OF ALTERNATIVES.

    (a) GRANT AUTHORITY- The Secretary 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;

      (3) the emissions of air pollutants and other relevant environmental impacts; and

      (4) how this process provides benefits to both cement kiln operations and carpet suppliers.

    (b) QUALIFIED INSTITUTION- For the purposes of subsection (a), a qualified institution is a research-intensive institution of higher education with demonstrated expertise in the fields of fiber recycling and logistical modeling of carpet waste collection and preparation.

    (c) WASTE REDUCTION AND USE OF ALTERNATIVES- There are authorized to be appropriated to the Secretary to carry out activities under this section $500,000 for fiscal year 2004.

SEC. 6602. COAL GASIFICATION.

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

SEC. 6603. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for at least one petroleum coke gasification polygeneration project.

SEC. 6604. OTHER BIOPOWER AND BIOENERGY.

    The Secretary shall conduct a program to assist in the planning, design, and implementation of projects to convert rice straw, rice hulls, sugarcane bagasse, forest thinnings, and barley grain into biopower and biofuels.

SEC. 6605. TECHNOLOGY TRANSFER.

    There are authorized to be appropriated to the Secretary $1,000,000 for a competitively awarded contract, to an entity with offshore oil and gas management experience, for the transfer of technologies relating to ultra-deepwater research and development developed at the Naval Surface Warfare Center, Carderock Division.

SEC. 6606. LIMITATION ON LEGAL FEE REIMBURSEMENT.

    The Department of Energy shall not, except as required under a contract entered into before the date of enactment of this Act, reimburse any contractor or subcontractor of the Department for any legal fees or expenses incurred with respect to a complaint subsequent to--

      (1) an adverse determination on the merits with respect to such complaint against the contractor or subcontractor by the Director of the Department of Energy’s Office of Hearings and Appeals pursuant to section 708 of title 10, Code of Federal Regulations, or by a Department of Labor Administrative Law Judge pursuant to section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851); or

      (2) an adverse final judgment by any State or Federal court with respect to such complaint against the contractor or subcontractor for wrongful termination or retaliation due to the making of disclosures protected under chapter 12 of title 5, United States Code, section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851), or any comparable State law,

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

SEC. 6607. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

    The Secretary, in coordination with industry leaders in extended reach drilling technology, shall establish a Complex Well Technology Testing Facility at the Rocky Mountain Oilfield Testing Center to increase the range of extended drilling technology to 50,000 feet, so that more energy resources can be realized with fewer drilling facilities.

SEC. 6608. TOTAL INTEGRATED THERMAL SYSTEMS.

    The Secretary shall--

      (1) conduct a study of the benefits of total integrated thermal systems in reducing demand for oil and protecting the environment; and

      (2) examine the feasibility of using total integrated thermal systems in Department of Defense and other Federal motor vehicle fleets.

SEC. 6609. OIL BYPASS FILTRATION TECHNOLOGY.

    The Secretary of Energy and the Administrator of the Environmental Protection Agency shall--

      (1) conduct a joint study of the benefits of oil bypass filtration technology in reducing demand for oil and protecting the environment; and

      (2) examine the feasibility of using oil bypass filtration technology in Federal motor vehicle fleets.

TITLE VII--ELECTRICITY

Subtitle A--Transmission Capacity

SEC. 7011. TRANSMISSION INFRASTRUCTURE IMPROVEMENT RULEMAKING.

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

‘SEC. 215. TRANSMISSION INFRASTRUCTURE IMPROVEMENT RULEMAKING.

    ‘(a) RULEMAKING REQUIREMENT- Within 1 year after the enactment of this section, the Commission shall establish, by rule, incentive-based (including but not limited to performance-based) transmission rate treatments to promote capital investment in the enlargement and improvement of facilities for the transmission of electric energy in interstate commerce as appropriate to--

      ‘(1) promote economically efficient transmission and generation of electricity;

      ‘(2) provide a return on equity that attracts new investment in transmission facilities and reasonably reflects the risks taken by public utilities in restructuring control of transmission assets; and

      ‘(3) encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing transmission facilities and improve the operation of such facilities.

    The Commission may, from time to time, revise such rule.

    ‘(b) FUNDING OF CERTAIN FACILITIES- The rule promulgated pursuant to this section shall provide that, upon the request of a regional transmission organization or other Commission-approved transmission organization, new transmission facilities that increase the transfer capability of the transmission system shall be participant funded. In such rules, the Commission shall also provide guidance as to what types of facilities may be participant funded.

    ‘(c) JUST AND REASONABLE RATES- With respect to any transmission rate filed with the Commission on or after the effective date of the rule promulgated under this section, the Commission shall, in its review of such rate under sections 205 and 206, apply the rules adopted pursuant to this section, including any revisions thereto. Nothing in this section shall be construed to override, weaken, or conflict with the procedural and other requirements of this part, including the requirement of sections 205 and 206 that all rates, charges, terms, and conditions be just and reasonable and not unduly discriminatory or preferential.’.

SEC. 7012. SITING OF INTERSTATE ELECTRICAL TRANSMISSION FACILITIES.

    (a) AMENDMENT OF FEDERAL POWER ACT- Part II of the Federal Power Act is amended by adding at the end the following:

‘SEC. 216. SITING OF INTERSTATE ELECTRICAL TRANSMISSION FACILITIES

    ‘(a) TRANSMISSION STUDIES- Within one year after the enactment of this section, and every 3 years thereafter, the Secretary of Energy shall conduct a study of electric transmission congestion. After considering alternatives and recommendations from interested parties the Secretary shall issue a report, based on such study, which may designate one or more geographic areas experiencing electric energy transmission congestion as ‘interstate congestion areas’.

    ‘(b) CONSTRUCTION PERMIT- The Commission is authorized, after notice and an opportunity for hearing, to issue permits for the construction or modification of electric transmission facilities in interstate congestion areas designated by the Secretary under subsection (a) if the Commission makes each of the following findings:

      ‘(1) A finding that--

        ‘(A) the State in which the transmission facilities are to be constructed or modified is without authority to approve the siting of the facilities, or

        ‘(B) a State commission or body in the State in which the transmission facilities are to be constructed or modified that has authority to approve the siting of the facilities has withheld approval, conditioned its approval in such a manner that the proposed construction or modification will not significantly reduce transmission congestion in interstate commerce and is otherwise not economically feasible, or delayed final approval for more than one year after the filing of an application seeking approval or one year after the designation of the relevant interstate congestion area, whichever is later.

      ‘(2) A finding that the facilities to be authorized by the permit will be used for the transmission of electric energy in interstate commerce.

      ‘(3) A finding that the proposed construction or modification is consistent with the public interest.

      ‘(4) A finding that the proposed construction or modification will significantly reduce transmission congestion in interstate commerce.

    The Commission may include in a permit issued under this section conditions consistent with the public interest.

    ‘(c) PERMIT APPLICATIONS- Permit applications under subsection (b) shall be made in writing to the Commission and verified under oath. The Commission shall issue rules setting forth the form of the application, the information it is to contain, and the manner of service of notice of the permit application upon interested persons.

    ‘(d) COMMENTS- In any proceeding before the Commission under subsection (b), the Commission shall afford each State in which a transmission facility covered by the permit is or will be located, each affected Federal agency and Indian tribe, private property owners, and other interested persons, a reasonable opportunity to present their views and recommendations with respect to the need for and impact of a facility covered by the permit.

    ‘(e) RIGHTS-OF-WAY- In the case of a permit under subsection (b) for electric transmission facilities to be located on property other than property owned by the United States or a State, if the permit holder cannot acquire by contract, or is unable to agree with the owner of the property to the compensation to be paid for, the necessary right-of-way to construct or modify such transmission facilities, the permit holder may acquire the right-of-way by the exercise of the right of eminent domain in the district court of the United States for the district in which the property concerned is located, or in the appropriate court of the State in which the property is located. The practice and procedure in any action or proceeding for that purpose in the

district court of the United States shall conform as nearly as may be with the practice and procedure in similar action or proceeding in the courts of the State where the property is situated.

    ‘(f) STATE LAW- Nothing in this section shall preclude any person from constructing any transmission facilities pursuant to State law.

    ‘(g) COMPLIANCE WITH OTHER LAWS- Commission action under this section shall be subject to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and all other applicable Federal laws.

    ‘(h) COMPENSATION- Any exercise of eminent domain authority pursuant to this section shall be considered a taking of private property for which just compensation is due. Just compensation shall be an amount equal to the full fair market value of the property taken on the date of the exercise of eminent domain authority, except that the compensation shall exceed fair market value if necessary to make the landowner whole for decreases in the value of any portion of the land not subject to eminent domain. Any parcel of land acquired by eminent domain under this subsection shall be transferred back to the owner from whom it was acquired (or his heirs or assigns) if the land is not used for power line construction or modification within a reasonable period of time after the acquisition. Property acquired under this subsection may not be used for any heritage area, recreational trail, or park, or for any other purpose (other than power line construction or modification, and for power line operation and maintenance) without the consent of the owner of the parcel from whom the property was acquired (or his heirs or assigns).

    ‘(i) ERCOT- Nothing in this section shall be construed to authorize any interconnection with any facility owned or operated by an entity referred to in section 212(k)(2)(B).

    ‘(j) RIGHTS OF WAY ON FEDERAL LANDS-

      ‘(1) LEAD AGENCY- If an applicant, or prospective applicant, for Federal authorization related to an electricity transmission or distribution facility so requests, the Department of Energy (DOE) shall act as the lead agency for purposes of coordinating all applicable Federal authorization and related environmental review of the facility. The term ‘Federal authorization’ shall mean any authorization required under Federal law in order to site a transmission or distribution facility, including but not limited to such permits, special use authorizations, certifications, opinions, or other approvals as may be required, whether issued by a Federal or a State agency. To the maximum extent practicable under applicable Federal law, the Secretary of Energy shall coordinate this Federal authorization and review process with any Indian tribes, multi-State entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions.

      ‘(2) AUTHORITY TO SET DEADLINES- As lead agency, the Department of Energy, in consultation with other Federal and, as appropriate, with Indian tribes, multi-State entities, and State agencies that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of and Federal authorization decisions relating to the proposed facility. The Secretary of Energy shall ensure that once an application has been submitted with such data as the Secretary deems necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed within 1 year or, if a requirement of another provision of Federal law makes this impossible, as soon thereafter as is practicable. The Secretary of Energy also shall provide an expeditious pre-application mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant within 60 days of when the prospective applicant submits a request for such information concerning--

        ‘(A) the likelihood of approval for a potential facility; and

        ‘(B) key issues of concern to the agencies and public.

      ‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW AND RECORD OF DECISION- The Secretary of Energy, in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed project under Federal law. The document may be an environmental assessment or environmental impact statement under the National Environmental Policy Act of 1969 if warranted, or such other form of analysis as may be warranted. DOE and other agencies shall streamline the review and permitting of transmission and distribution facilities within corridors designated under section 503 of the Federal Land Policy and Management Act (43 U.S.C. 1763) by fully taking into account prior analyses and decisions as to the corridors. The document under this section may consist of or include an environmental assessment, if allowed by law, or an environmental impact statement, if warranted or required by law, or such other form of analysis as warranted, consistent with any requirement of the National Environmental Policy Act, the Federal Land Policy and Management Act, or any other applicable law. Such document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable laws.

      ‘(4) APPEALS- In the event that any agency has denied a Federal authorization required for a transmission or distribution facility, or has failed to act by the deadline established by the Secretary pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the Secretary of Energy, who shall, in consultation with the affected agency, review the denial or take action on the pending application. Based on the overall record and in consultation with the affected agency, the Secretary may then either issue the necessary authorization with any appropriate conditions, or deny the application. The Secretary shall issue a decision

within 90 days of the filing of the appeal. In making a decision under this paragraph, the Secretary shall comply with all applicable requirements of Federal law, including any requirements of the Endangered Species Act, the Clean Water Act, the National Forest Management Act, the National Environmental Policy Act, and the Federal Land Management and Policy Act.

      ‘(5) CONFORMING REGULATIONS AND MEMORANDA OF AGREEMENT- Not later than 18 months after the date of enactment of this section, the Secretary of Energy shall issue any regulations necessary to implement the foregoing provisions. Not later than 1 year after the date of enactment of this section, the Secretary and the heads of all relevant Federal departments and non-departmental agencies shall, and interested Indian tribes, multi-State entities, and State agencies may, enter into Memoranda of Agreement to ensure the timely and coordinated review and permitting of electricity transmission and distribution facilities. The head of each Federal department or non-departmental agency with approval authority shall designate a senior responsible official and dedicate sufficient other staff and resources to ensure that the DOE regulations and any Memoranda are fully implemented.

      ‘(6) MISCELLANEOUS- Each Federal authorization for an electricity transmission or distribution facility shall be issued for a duration, as determined by the Secretary of Energy, commensurate with the anticipated use of the facility and with appropriate authority to manage the right-of-way for reliability and environmental protection. Further, when such authorizations expire, they shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing its importance for public health, safety and economic welfare and as a legitimate use of Federal lands.

      ‘(7) MAINTAINING AND ENHANCING THE TRANSMISSION INFRASTRUCTURE- In exercising the responsibilities under this section, the Secretary of Energy shall consult regularly with the Federal Energy Regulatory Commission (FERC) and FERC-approved Regional Transmission Organizations and Independent System Operators.

    ‘(k) INTERSTATE COMPACTS- The consent of Congress is hereby given for States to enter into interstate compacts establishing regional transmission siting agencies to facilitate coordination among the States within such areas for purposes of siting future electric energy transmission facilities and to carry out State electric energy transmission siting responsibilities. The Secretary of Energy may provide technical assistance to regional transmission siting agencies established under this subsection.

    ‘(l) SAVINGS CLAUSE- Nothing in this section shall be construed to affect any requirement of the environmental laws of the United States, including, but not limited to, the National Environmental Policy Act of 1969. This section shall not apply to any component of the National Wilderness Preservation System, the National Wild and Scenic Rivers System, or the National Park system (including National Monuments therein).’.

    (b) FEDERAL CORRIDORS- The Secretary of the Interior, the Secretary of Energy, the Secretary of Agriculture, and the Chairman of the Council on Environmental Quality shall, within 90 days of the date of enactment of this subsection, submit a joint report to Congress identifying the following:

      (1) all existing designated transmission and distribution corridors on Federal land and the status of work related to proposed transmission and distribution corridor designations, the schedule for completing such work, any impediments to completing the work, and steps that Congress could take to expedite the process;

      (2) the number of pending applications to locate transmission and distribution facilities on Federal lands, key information relating to each such facility, how long each application has been pending, the schedule for issuing a timely decision as to each facility, and progress in incorporating existing and new such rights-of-way into relevant land use and resource management plans or their equivalent; and

      (3) the number of existing transmission and distribution rights-of-way on Federal lands that will come up for renewal within the following 5, 10, and 15 year periods, and a description of how the Secretaries plan to manage such renewals.

Subtitle B--Transmission Operation

SEC. 7021. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.

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

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

    ‘(a) IN GENERAL- Subject to section 212(h), the Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services--

      ‘(1) at rates that are comparable to those that the unregulated transmitting utility charges itself, and

      ‘(2) on terms and conditions (not relating to rates) that are comparable to those under which such unregulated transmitting utility provides transmission services to itself and that are not unduly discriminatory or preferential.

    ‘(b) EXEMPTIONS-

      ‘(1) IN GENERAL- The Commission shall exempt from any rule or order under this subsection any unregulated transmitting utility that--

        ‘(A)(i) sells no more than 4,000,000 megawatt hours of electricity per year; and

        ‘(ii) is a distribution utility; or

        ‘(B) does not own or operate any transmission facilities that are necessary for operating an interconnected transmission system (or any portion thereof); or

        ‘(C) meets other criteria the Commission determines to be in the public interest.

      ‘(2) LOCAL DISTRIBUTION- The requirements of subsection (a) shall not apply to facilities used in local distribution.

    ‘(c) RATE CHANGING PROCEDURES- The rate changing procedures applicable to public utilities under subsections (c) and (d) of section 205 are applicable to unregulated transmitting utilities for purposes of this section.

    ‘(d) REMAND- In exercising its authority under paragraph (1), the Commission may remand transmission rates to an unregulated transmitting utility for review and revision where necessary to meet the requirements of subsection (a).

    ‘(e) SECTION 211 REQUESTS- The provision of transmission services under subsection (a) does not preclude a request for transmission services under section 211.

    ‘(f) DEFINITIONS- For purposes of this section--

      ‘(1) The term ‘unregulated transmitting utility’ means an entity that--

        ‘(A) owns or operates facilities used for the transmission of electric energy in interstate commerce, and

        ‘(B) is either an entity described in section 201(f) or a rural electric cooperative.

      ‘(2) The term ‘distribution utility’ means an unregulated transmitting utility that serves at least ninety percent of its electric customers at retail.’.

SEC. 7022. REGIONAL TRANSMISSION ORGANIZATIONS.

    (a) SENSE OF THE CONGRESS ON RTOS- It is the sense of Congress that, in order to promote fair, open access to electric transmission service, benefit retail consumers, facilitate wholesale competition, improve efficiencies in transmission grid management, promote grid reliability, remove opportunities for unduly discriminatory or preferential transmission practices, and provide for the efficient development of transmission infrastructure needed to meet the growing demands of competitive wholesale power markets, all transmitting utilities in interstate commerce should voluntarily become members of independently administered regional transmission organizations that have operational control of interstate transmission facilities and do not own or control generation facilities used to supply electric energy for sale at wholesale.

    (b) SENSE OF THE CONGRESS ON CAPITAL INVESTMENT- It is the sense of the Congress that the Federal Energy Regulatory Commission should provide to any transmitting utility that becomes a member of an operational regional transmitting organization approved by the Commission a return on equity sufficient to attract new investment capital for expansion of transmission capacity, in accordance with sections 205 and 206 of the Federal Power Act (16 U.S.C. 824d and 824e), including the requirement that rates be just and reasonable.

    (c) REPORT ON PENDING APPLICATIONS- Not later than 120 days after the date of enactment of this section, the Federal Energy Regulatory Commission shall submit to 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 a report containing the following:

      (1) A list of all regional transmission organization applications filed at the Commission pursuant to the Commission’s Order No. 2000, including an identification of each public utility and other entity included within the proposed membership of the regional transmission organization.

      (2) A table showing the date each such application was filed, the date of any revised filings of such application, the date of each preliminary or final Commission order regarding such application, and a statement of whether the application has been rejected, preliminarily approved, finally approved, or has some other status (including a description of that status).

      (3) For any application that has not been finally approved by the Commission, a detailed description of every aspect of the application that the Commission has determined does not conform to the requirements of Order No. 2000.

      (4) For any application that has not been finally approved by the Commission, an explanation by the Commission of why the items described pursuant to paragraph (3) constitute material noncompliance with the requirements of the Commission’s Order No. 2000 sufficient to justify denial of approval by the Commission.

      (5) For all regional transmission organization applications filed pursuant to the Commission’s Order No. 2000, whether finally approved or not--

        (A) a discussion of that regional transmission organization’s efforts to minimize rate seams between itself and--

          (i) other regional transmission organizations; and

          (ii) entities not participating in a regional transmission organization; and

        (B) a discussion of the impact of such seams on consumers and wholesale competition; and

        (C) a discussion of minimizing cost-shifting on consumers.

    (d) FEDERAL UTILITY PARTICIPATION IN RTOS-

      (1) DEFINITIONS- For purposes of this section--

        (A) The term ‘appropriate Federal regulatory authority’ means--

          (i) with respect to a Federal power marketing agency, the Secretary of Energy, except that the Secretary may designate the Administrator of a Federal power marketing agency to act as the appropriate Federal regulatory authority with respect to the transmission system of that Federal power marketing agency; and

          (ii) with respect to the Tennessee Valley Authority, the Board of Directors of the Tennessee Valley Authority.

        (B) The term ‘Federal utility’ means a Federal power marketing agency or the Tennessee Valley Authority.

        (C) The term ‘transmission system’ means electric transmission facilities owned, leased, or contracted for by the United States and operated by a Federal utility.

      (2) TRANSFER- The appropriate Federal regulatory authority is authorized to enter into a contract, agreement or other arrangement transferring control and use of all or part of the Federal utility’s transmission system to a regional transmission organization approved by the Federal Energy Regulatory Commission. Such contract, agreement or arrangement shall include--

        (A) performance standards for operation and use of the transmission system that the head of the Federal utility determines necessary or appropriate, including standards that assure recovery of all the Federal utility’s costs and expenses related to the transmission facilities that are the subject of the contract, agreement or other arrangement, consistency with existing contracts and third-party financing arrangements, and consistency with said Federal utility’s statutory authorities, obligations, and limitations;

        (B) provisions for monitoring and oversight by the Federal utility of the regional transmission organization’s fulfillment of the terms and conditions of the contract, agreement or other arrangement, including a provision that may provide for the resolution of disputes through arbitration or other means with the regional transmission organization or with other participants, notwithstanding the obligations and limitations of any other law regarding arbitration; and

        (C) a provision that allows the Federal utility to withdraw from the regional transmission organization and terminate the contract, agreement or other arrangement in accordance with its terms.

      Neither this section, actions taken pursuant to it, nor any other transaction of a Federal utility using a regional transmission organization shall serve to confer upon the Federal Energy Regulatory Commission jurisdiction or authority over the Federal utility’s electric generation assets, electric capacity or energy that the Federal utility is authorized by law to market, or the Federal utility’s power sales activities.

      (3) EXISTING STATUTORY AND OTHER OBLIGATIONS-

        (A) SYSTEM OPERATION REQUIREMENTS- Any statutory provision requiring or authorizing a Federal utility to transmit electric power or to construct, operate or maintain its transmission system shall not be construed to prohibit a transfer of control and use of its transmission system pursuant to, and subject to all requirements of paragraph (2).

        (B) OTHER OBLIGATIONS- This subsection shall not be construed to--

          (i) suspend, or exempt any Federal utility from, any provision of existing Federal law, including but not limited to any requirement or direction relating to the use of the Federal utility’s transmission system, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or

          (ii) authorize abrogation of any contract or treaty obligation.

SEC. 7023. NATIVE LOAD.

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

‘SEC. 217. SERVICE OBLIGATIONS OF LOAD-SERVING ENTITIES.

    ‘(a) IN GENERAL- In exercising authority under this Act, the Commission shall ensure that any load-serving entity that either--

      ‘(1) owns transmission facilities for the transmission of electric energy in interstate commerce used to purchase or deliver electric energy to meet--

        ‘(A) a service obligation to customers; or

        ‘(B) an existing wholesale contractual obligation; or

      ‘(2) holds a contract or service agreement for firm transmission service used to purchase or deliver electric energy to meet--

        ‘(A) a service obligation to customers; or

        ‘(B) an existing wholesale contractual obligation

    shall be entitled to use such transmission facilities or equivalent transmission rights to meet such obligations before transmission capacity is made available for other uses.

    ‘(b) USE BY SUCCESSOR IN INTEREST- To the extent that all or a portion of the service obligation or contractual obligation covered by subsection (a) is transferred to another load serving entity, the successor shall be entitled to use such transmission facilities or firm transmission rights associated with the transferred service obligation consistent with subsection (a). Subsequent transfers to another load serving entity, or back to the original load-serving entity, shall be entitled to the same rights.

    ‘(c) OTHER ENTITIES- The Commission may exercise authority under this Act to make transmission rights not used to meet an obligation covered by subsection (a) available to other entities in a manner determined by the Commission to be not unduly discriminatory or preferential.

    ‘(d) DEFINITIONS- For the purposes of this section:

      ‘(1) The term ‘load-serving entity’ means an electric utility, transmitting utility or Federal power marketing agency that has an obligation under Federal, State, or local law, or under long-term contracts, to provide electric service to either--

        ‘(A) electric consumers (as defined in section 3(5) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(5)); or

        ‘(B) an electric utility as defined in section 3(4) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(5)) that has an obligation to provide electric service to electric consumers.

      Such obligations shall be deemed ‘service obligations’.

      ‘(2) The term ‘existing wholesale contractual obligation’ means an obligation under a firm long-term wholesale contract that was in effect on March 28, 2003. A contract modification after March 28, 2003

(other than one that increases the quantity of electric energy sold under the contract) shall not affect the status of such contract as an existing wholesale contractual obligation.

    ‘(e) RELATIONSHIP TO OTHER PROVISIONS- To the extent that a transmitting utility reserves transmission capacity (or reserves the equivalent amount of tradable transmission rights) to provide firm transmission service to meet service obligations or firm long-term wholesale contractual obligations pursuant to subsection (a), that transmitting utility shall not be considered as engaging in undue discrimination or preference under this Act.

    ‘(f) JURISDICTION- This section shall not apply to an entity located in an area referred to in section 212(k)(2)(A).

    ‘(g) SAVINGS CLAUSE- Nothing in this section shall affect any allocation of transmission rights by the PJM Interconnection, the New York Independent System Operator, the New England Independent System Operator, the Midwest Independent System Operator, or the California Independent System Operator. Nothing in this section shall provide a basis for abrogating any contract for firm transmission service or rights in effect as of the date of enactment of this section.’.

Subtitle C--Reliability

SEC. 7031. ELECTRIC RELIABILITY STANDARDS.

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

‘SEC. 218. ELECTRIC RELIABILITY.

    ‘(a) DEFINITIONS- For purposes of this section--

      ‘(1) The term ‘bulk-power system’ means--

        ‘(A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and

        ‘(B) electric energy from generation facilities needed to maintain transmission system reliability.

      The term does not include facilities used in the local distribution of electric energy.

      ‘(2) The terms ‘Electric Reliability Organization’ and ‘ERO’ mean the organization certified by the Commission under subsection (c) the purpose of which is to establish and enforce reliability standards for the bulk-power system, subject to Commission review.

      ‘(3) The term ‘reliability standard’ means a requirement, approved by the Commission under this section, to provide for reliable operation of the bulk-power system. The term includes requirements for the operation of existing bulk-power system facilities and the design of planned additions or modifications to such facilities to the extent necessary to provide for reliable operation of the bulk-power system, but the term does not include any requirement to enlarge such facilities or to construct new transmission capacity or generation capacity.

      ‘(4) The term ‘reliable operation’ means operating the elements of the bulk-power system within equipment and electric system thermal, voltage, and stability limits so that instability, uncontrolled separation, or cascading failures of such system will not occur as a result of a sudden disturbance or unanticipated failure of system elements.

      ‘(5) The term ‘Interconnection’ means a geographic area in which the operation of bulk-power system components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain reliable operation of the facilities within their control.

      ‘(6) The term ‘transmission organization’ means a regional transmission organization, independent

system operator, independent transmission provider, or other transmission organization finally approved by the Commission for the operation of transmission facilities.

      ‘(7) The term ‘regional entity’ means an entity having enforcement authority pursuant to subsection (e)(4).

    ‘(b) JURISDICTION AND APPLICABILITY- (1) The Commission shall have jurisdiction, within the United States, over the ERO certified by the Commission under subsection (c), any regional entities, and all users, owners and operators of the bulk-power system, including but not limited to the entities described in section 201(f), for purposes of approving reliability standards established under this section and enforcing compliance with this section. All users, owners and operators of the bulk-power system shall comply with reliability standards that take effect under this section.

    ‘(2) The Commission shall issue a final rule to implement the requirements of this section not later than 180 days after the date of enactment of this section.

    ‘(c) CERTIFICATION- Following the issuance of a Commission rule under subsection (b)(2), any person may submit an application to the Commission for certification as the Electric Reliability Organization (ERO). The Commission may certify one such ERO if the Commission determines that such ERO--

      ‘(1) has the ability to develop and enforce, subject to subsection (e)(2), reliability standards that provide for an adequate level of reliability of the bulk-power system;

      ‘(2) has established rules that--

        ‘(A) assure its independence of the users and owners and operators of the bulk-power system, while assuring fair stakeholder representation in the selection of its directors and balanced decisionmaking in any ERO committee or subordinate organizational structure;

        ‘(B) allocate equitably reasonable dues, fees, and other charges among end users for all activities under this section;

        ‘(C) provide fair and impartial procedures for enforcement of reliability standards through the imposition of penalties in accordance with subsection (e) (including limitations on activities, functions, or operations, or other appropriate sanctions);

        ‘(D) provide for reasonable notice and opportunity for public comment, due process, openness, and balance of interests in developing reliability standards and otherwise exercising its duties; and

        ‘(E) provide for taking, after certification, appropriate steps to gain recognition in Canada and Mexico.

    ‘(d) RELIABILITY STANDARDS- (1) The Electric Reliability Organization shall file each reliability standard or modification to a reliability standard that it proposes to be made effective under this section with the Commission.

    ‘(2) The Commission may approve, by rule or order, a proposed reliability standard or modification to a reliability standard if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The Commission shall give due weight to the technical expertise of the Electric Reliability Organization with respect to the content of a proposed standard or modification to a reliability standard and to the technical expertise of a regional entity organized on an Interconnection-wide basis with respect to a reliability standard to be applicable within that Interconnection, but shall not defer with respect to the effect of a standard on competition. A proposed standard or modification shall take effect upon approval by the Commission.

    ‘(3) The Electric Reliability Organization shall rebuttably presume that a proposal from a regional entity organized on an Interconnection-wide basis for a reliability standard or modification to a reliability standard to be applicable on an Interconnection-wide basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest.

    ‘(4) The Commission shall remand to the Electric Reliability Organization for further consideration a proposed reliability standard or a modification to a reliability standard that the Commission disapproves in whole or in part.

    ‘(5) The Commission, upon its own motion or upon complaint, may order the Electric Reliability Organization to submit to the Commission a proposed reliability standard or a modification to a reliability standard that addresses a specific matter if the Commission considers such a new or modified reliability standard appropriate to carry out this section.

    ‘(6) The final rule adopted under subsection (b)(2) shall include fair processes for the identification and timely resolution of any conflict between a reliability standard and any function, rule, order, tariff, rate schedule, or agreement accepted, approved, or ordered by the Commission applicable to a transmission organization. Such transmission organization shall continue to comply with such function, rule, order, tariff, rate schedule or agreement accepted approved, or ordered by the Commission until--

      ‘(A) the Commission finds a conflict exists between a reliability standard and any such provision;

      ‘(B) the Commission orders a change to such provision pursuant to section 206 of this part; and

      ‘(C) the ordered change becomes effective under this part.

    If the Commission determines that a reliability standard needs to be changed as a result of such a conflict, it shall order the ERO to develop and file with the Commission a modified reliability standard under paragraph (4) or (5) of this subsection.

    ‘(e) ENFORCEMENT- (1) The ERO may impose, subject to paragraph (2), a penalty on a user or owner or operator of the bulk-power system for a violation of a reliability standard approved by the Commission under subsection (d) if the ERO, after notice and an opportunity for a hearing--

      ‘(A) finds that the user or owner or operator has violated a reliability standard approved by the Commission under subsection (d); and

      ‘(B) files notice and the record of the proceeding with the Commission.

    ‘(2) A penalty imposed under paragraph (1) may take effect not earlier than the 31st day after the electric reliability organization files with the Commission notice of the penalty and the record of proceedings. Such penalty shall

be subject to review by the Commission, on its own motion or upon application by the user, owner or operator that is the subject of the penalty filed within 30 days after the date such notice is filed with the Commission. Application to the Commission for review, or the initiation of review by the Commission on its own motion, shall not operate as a stay of such penalty unless the Commission otherwise orders upon its own motion or upon application by the user, owner or operator that is the subject of such penalty. In any proceeding to review a penalty imposed under paragraph (1), the Commission, after notice and opportunity for hearing (which hearing may consist solely of the record before the electric reliability organization and opportunity for the presentation of supporting reasons to affirm, modify, or set aside the penalty), shall by order affirm, set aside, reinstate, or modify the penalty, and, if appropriate, remand to the electric reliability organization for further proceedings. The Commission shall implement expedited procedures for such hearings.

    ‘(3) On its own motion or upon complaint, the Commission may order compliance with a reliability standard and may impose a penalty against a user or owner or operator of the bulk-power system, if the Commission finds, after notice and opportunity for a hearing, that the user or owner or operator of the bulk-power system has engaged or is about to engage in any acts or practices that constitute or will constitute a violation of a reliability standard.

    ‘(4) The Commission shall establish regulations authorizing the ERO to enter into an agreement to delegate authority to a regional entity for the purpose of proposing reliability standards to the ERO and enforcing reliability standards under paragraph (1) if--

      ‘(A) the regional entity is governed by--

        ‘(i) an independent board;

        ‘(ii) a balanced stakeholder board; or

        ‘(iii) a combination independent and balanced stakeholder board.

      ‘(B) the regional entity otherwise satisfies the provisions of subsection (c)(1) and (2); and

      ‘(C) the agreement promotes effective and efficient administration of bulk-power system reliability.

    The Commission may modify such delegation. The ERO and the Commission shall rebuttably presume that a proposal for delegation to a regional entity organized on an Interconnection-wide basis promotes effective and efficient administration of bulk-power system reliability and should be approved. Such regulation may provide that the Commission may assign the ERO’s authority to enforce reliability standards under paragraph (1) directly to a regional entity consistent with the requirements of this paragraph.

    ‘(5) The Commission may take such action as is necessary or appropriate against the ERO or a regional entity to ensure compliance with a reliability standard or any Commission order affecting the ERO or a regional entity.

    ‘(6) Any penalty imposed under this section shall bear a reasonable relation to the seriousness of the violation and shall take into consideration the efforts of such user, owner, or operator to remedy the violation in a timely manner.

    ‘(f) CHANGES IN ELECTRICITY RELIABILITY ORGANIZATION RULES- The Electric Reliability Organization shall file with the Commission for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The Commission, upon its own motion or complaint, may propose a change to the rules of the Electric Reliability Organization. A proposed rule or proposed rule change shall take effect upon a finding by the Commission, after notice and opportunity for comment, that the change is just, reasonable, not unduly discriminatory or preferential, is in the public interest, and satisfies the requirements of subsection (c).

    ‘(g) RELIABILITY REPORTS- The Electric Reliability Organization shall conduct periodic assessments of the reliability and adequacy of the bulk-power system in North America.

    ‘(h) COORDINATION WITH CANADA AND MEXICO- The President is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance with reliability standards and the effectiveness of the Electric Reliability Organization in the United States and Canada or Mexico.

    ‘(i) SAVINGS PROVISIONS- (1) The Electric Reliability Organization shall have authority to develop and enforce compliance with reliability standards for only the bulk-power system.

    ‘(2) This section does not authorize the Electric Reliability Organization or the Commission to order the construction of additional generation or transmission capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services.

    ‘(3) Nothing in this section shall be construed to preempt any authority of any State to take action to ensure the safety, adequacy, and reliability of electric service within that State, as long as such action is not inconsistent with any reliability standard, except that the State of New York may establish rules that result in greater reliability within that State, as long as such action does not result in lesser reliability outside the State than that provided by the reliability standards.

    ‘(4) Within 90 days of the application of the Electric Reliability Organization or other affected party, and after notice and opportunity for comment, the Commission shall issue a final order determining whether a State action is inconsistent with a reliability standard, taking into consideration any recommendation of the Electric Reliability Organization.

    ‘(5) The Commission, after consultation with the Electric Reliability Organization and the State taking action, may stay the effectiveness of any State action, pending the Commission’s issuance of a final order.

    ‘(j) REGIONAL ADVISORY BODIES- The Commission shall establish a regional advisory body on the petition of at least two-thirds of the States within a region that have more than one-half of their electric load served within the region. A regional advisory body shall be composed or of one member from each participating State in the region, appointed by the Governor of each State, and may include representatives of agencies, States, and provinces outside the United States. A regional advisory body may provide advice to the Electric Reliability Organization, a regional entity, or the Commission regarding the governance of an existing or proposed regional entity within the same region,

whether a standard proposed to apply within the region is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the region are just, reasonable, not unduly discriminatory or preferential, and in the public interest and any other responsibilities requested by the Commission. The Commission may give deference to the advice of any such regional advisory body if that body is organized on an Interconnection-wide basis.

    ‘(k) APPLICATION TO ALASKA AND HAWAII- The provisions of this section do not apply to Alaska or Hawaii.’.

Subtitle D--PUHCA Amendments

SEC. 7041. SHORT TITLE.

    This subtitle may be cited as the ‘Public Utility Holding Company Act of 2003’.

SEC. 7042. DEFINITIONS.

    For purposes of this subtitle:

      (1) The term ‘affiliate’ of a company means any company, 5 percent or more of the outstanding voting securities of which are owned, controlled, or held with power to vote, directly or indirectly, by such company.

      (2) The term ‘associate company’ of a company means any company in the same holding company system with such company.

      (3) The term ‘Commission’ means the Federal Energy Regulatory Commission.

      (4) The term ‘company’ means a corporation, partnership, association, joint stock company, business trust, or any organized group of persons, whether incorporated or not, or a receiver, trustee, or other liquidating agent of any of the foregoing.

      (5) The term ‘electric utility company’ means any company that owns or operates facilities used for the generation, transmission, or distribution of electric energy for sale.

      (6) The terms ‘exempt wholesale generator’ and ‘foreign utility company’ have the same meanings as in sections 32 and 33, respectively, of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as those sections existed on the day before the effective date of this subtitle.

      (7) The term ‘gas utility company’ means any company that owns or operates facilities used for distribution at retail (other than the distribution only in enclosed portable containers or distribution to tenants or employees of the company operating such facilities for their own use and not for resale) of natural or manufactured gas for heat, light, or power.

      (8) The term ‘holding company’ means--

        (A) any company that directly or indirectly owns, controls, or holds, with power to vote, 10 percent or more of the outstanding voting securities of a public utility company or of a holding company of any public utility company; and

        (B) any person, determined by the Commission, after notice and opportunity for hearing, to exercise directly or indirectly (either alone or pursuant to an arrangement or understanding with one or more persons) such a controlling influence over the management or policies of any public utility company or holding company as to make it necessary or appropriate for the rate protection of utility customers with respect to rates that such person be subject to the obligations, duties, and liabilities imposed by this subtitle upon holding companies.

      (9) The term ‘holding company system’ means a holding company, together with its subsidiary companies.

      (10) The term ‘jurisdictional rates’ means rates established by the Commission for the transmission of electric energy in interstate commerce, the sale of electric energy at wholesale in interstate commerce, the transportation of natural gas in interstate commerce, and the sale in interstate commerce of natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use.

      (11) The term ‘natural gas company’ means a person engaged in the transportation of natural gas in interstate commerce or the sale of such gas in interstate commerce for resale.

      (12) The term ‘person’ means an individual or company.

      (13) The term ‘public utility’ means any person who owns or operates facilities used for transmission of electric energy in interstate commerce or sales of electric energy at wholesale in interstate commerce.

      (14) The term ‘public utility company’ means an electric utility company or a gas utility company.

      (15) The term ‘State commission’ means any commission, board, agency, or officer, by whatever name designated, of a State, municipality, or other political subdivision of a State that, under the laws of such State, has jurisdiction to regulate public utility companies.

      (16) The term ‘subsidiary company’ of a holding company means--

        (A) any company, 10 percent or more of the outstanding voting securities of which are directly or indirectly owned, controlled, or held with power to vote, by such holding company; and

        (B) any person, the management or policies of which the Commission, after notice and opportunity for hearing, determines to be subject to a controlling influence, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with one or more other persons) so as to make it necessary for the rate protection of utility customers with respect to rates that such person be subject to the obligations, duties, and liabilities imposed by this subtitle upon subsidiary companies of holding companies.

      (17) The term ‘voting security’ means any security presently entitling the owner or holder thereof to vote in the direction or management of the affairs of a company.

SEC. 7043. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

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

SEC. 7044. FEDERAL ACCESS TO BOOKS AND RECORDS.

    (a) IN GENERAL- Each holding company and each associate company thereof shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records as the Commission deems to be relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

    (b) AFFILIATE COMPANIES- Each affiliate of a holding company or of any subsidiary company of a holding company shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records with respect to any transaction with another affiliate, as the Commission deems to be relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

    (c) HOLDING COMPANY SYSTEMS- The Commission may examine the books, accounts, memoranda, and other records of any company in a holding company system, or any affiliate thereof, as the Commission deems to be relevant to costs incurred by a public utility or natural gas company within such holding company system and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

    (d) CONFIDENTIALITY- No member, officer, or employee of the Commission shall divulge any fact or information that may come to his or her knowledge during the course of examination of books, accounts, memoranda, or other records as provided in this section, except as may be directed by the Commission or by a court of competent jurisdiction.

SEC. 7045. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In GENERAL- Upon the written request of a State commission having jurisdiction to regulate a public utility company in a holding company system, the holding company or any associate company or affiliate thereof, other than such public utility company, wherever located, shall produce for inspection books, accounts, memoranda, and other records that--

      (1) have been identified in reasonable detail by the State commission;

      (2) the State commission deems are relevant to costs incurred by such public utility company; and

      (3) are necessary for the effective discharge of the responsibilities of the State commission with respect to such proceeding.

    (b) LIMITATION- Subsection (a) does not apply to any person that is a holding company solely by reason of ownership of one or more qualifying facilities under the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.).

    (c) CONFIDENTIALITY OF INFORMATION- The production of books, accounts, memoranda, and other records under subsection (a) shall be subject to such terms and conditions as may be necessary and appropriate to safeguard against unwarranted disclosure to the public of any trade secrets or sensitive commercial information.

    (d) EFFECT ON STATE LAW- Nothing in this section shall preempt applicable State law concerning the provision of books, accounts, memoranda, and other records, or in any way limit the rights of any State to obtain books, accounts, memoranda, and other records under any other Federal law, contract, or otherwise.

    (e) COURT JURISDICTION- Any United States district court located in the State in which the State commission referred to in subsection (a) is located shall have jurisdiction to enforce compliance with this section.

SEC. 7046. EXEMPTION AUTHORITY.

    (a) RULEMAKING- Not later than 90 days after the effective date of this subtitle, the Commission shall promulgate a final rule to exempt from the requirements of section 7044 (relating to Federal access to books and records) any person that is a holding company, solely with respect to one or more--

      (1) qualifying facilities under the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);

      (2) exempt wholesale generators; or

      (3) foreign utility companies.

    (b) OTHER AUTHORITY- The Commission shall exempt a person or transaction from the requirements of section 7044 (relating to Federal access to books and records) if, upon application or upon the motion of the Commission--

      (1) the Commission finds that the books, accounts, memoranda, and other records of any person are not relevant to the jurisdictional rates of a public utility or natural gas company; or

      (2) the Commission finds that any class of transactions is not relevant to the jurisdictional rates of a public utility or natural gas company.

SEC. 7047. AFFILIATE TRANSACTIONS.

    (a) COMMISSION AUTHORITY UNAFFECTED- Nothing in this subtitle shall limit the authority of the Commission under the Federal Power Act (16 U.S.C. 791a et seq.) to require that jurisdictional rates are just and reasonable, including the ability to deny or approve the pass through of costs, the prevention of cross-subsidization, and the promulgation of such rules and regulations as are necessary or appropriate for the protection of utility consumers.

    (b) RECOVERY OF COSTS- Nothing in this subtitle shall preclude the Commission or a State commission from exercising its jurisdiction under otherwise applicable law to determine whether a public utility company, public utility, or natural gas company may recover in rates any costs of an activity performed by an associate company, or any costs of goods or services acquired by such public utility company from an associate company.

SEC. 7048. APPLICABILITY.

    Except as otherwise specifically provided in this subtitle, no provision of this subtitle shall apply to, or be deemed to include--

      (1) the United States;

      (2) a State or any political subdivision of a State;

      (3) any foreign governmental authority not operating in the United States;

      (4) any agency, authority, or instrumentality of any entity referred to in paragraph (1), (2), or (3); or

      (5) any officer, agent, or employee of any entity referred to in paragraph (1), (2), or (3) acting as such in the course of his or her official duty.

SEC. 7049. EFFECT ON OTHER REGULATIONS.

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

SEC. 7050. ENFORCEMENT.

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

SEC. 7051. SAVINGS PROVISIONS.

    (a) IN GENERAL- Nothing in this subtitle prohibits a person from engaging in or continuing to engage in activities or transactions in which it is legally engaged or authorized to engage on the date of enactment of this Act, so long as that person continues to comply with the terms of any such authorization, whether by rule or by order.

    (b) EFFECT ON OTHER COMMISSION AUTHORITY- Nothing in this subtitle limits the authority of the Commission under the Federal Power Act (16 U.S.C. 791a et seq.) (including section 301 of that Act) or the Natural Gas Act (15 U.S.C. 717 et seq.) (including section 8 of that Act).

SEC. 7052. IMPLEMENTATION.

    Not later than 12 months after the date of enactment of this subtitle, the Commission shall--

      (1) promulgate such regulations as may be necessary or appropriate to implement this subtitle (other than section 7045, relating to State access to books and records); and

      (2) submit to the Congress detailed recommendations on technical and conforming amendments to Federal law necessary to carry out this subtitle and the amendments made by this subtitle.

SEC. 7053. TRANSFER OF RESOURCES.

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

SEC. 7054. EFFECTIVE DATE.

    This subtitle shall take effect 12 months after the date of enactment of this subtitle.

SEC. 7055. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 7056. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) CONFLICT OF JURISDICTION- Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.

    (b) DEFINITIONS- (1) Section 201(g)(5) of the Federal Power Act (16 U.S.C. 824(g)(5)) is amended by striking ‘1935’ and inserting ‘2003’.

    (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is amended by striking ‘1935’ and inserting ‘2003’.

Subtitle E--PURPA Amendments

SEC. 7061. REAL-TIME PRICING AND TIME-OF-USE METERING STANDARDS.

    (a) ADOPTION OF STANDARDS- Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

      ‘(11) REAL-TIME PRICING- (A) Each electric utility shall, at the request of an electric consumer, provide electric service under a real-time rate schedule, under which the rate charged by the electric utility varies by the hour (or smaller time interval) according to changes in the electric utility’s wholesale power cost. The real-time pricing service shall enable the electric consumer to manage energy use and cost through real-time metering and communications technology.

      ‘(B) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      ‘(C) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standard set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.

      ‘(12) TIME-OF-USE METERING- (A) Each electric utility shall, at the request of an electric consumer, provide electric service under a time-of-use rate schedule which enables the electric consumer to manage energy use and cost through time-of-use metering and technology.

      ‘(B) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      ‘(C) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standards set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.’.

    (b) SPECIAL RULES- Section 115 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the following:

    ‘(i) REAL-TIME PRICING- In a State that permits third-party marketers to sell electric energy to retail electric consumers, the electric consumer shall be entitled to receive the same real-time metering and communication service as a direct retail electric consumer of the electric utility.

    ‘(j) TIME-OF-USE METERING- In a State that permits third-party marketers to sell electric energy to retail electric consumers, the electric consumer shall be entitled to receive the same time-of-use metering and communication service as a direct retail electric consumer of the electric utility.’.

SEC. 7062. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE REQUIREMENTS.

    (a) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS- Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding at the end the following:

    ‘(m) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS-

      ‘(1) OBLIGATION TO PURCHASE- After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to purchase electric energy from a qualifying cogeneration facility or a qualifying small power production facility under this section if the Commission finds that--

        ‘(A) the qualifying cogeneration facility or qualifying small power production facility has access to

          ‘(i) independently administered, auction-based day ahead and real time wholesale markets for the sale of electric energy, and

          ‘(ii) long-term wholesale markets for the sale of capacity and electric energy;

        ‘(B) the qualifying cogeneration facility or qualifying small power production facility has access to a competitive wholesale market for the sale of electric energy that provides such qualifying cogeneration facility or qualifying small power production facility with opportunities to sell electric energy that, at a minimum, are comparable to the opportunities provided by the markets, or some minimum combination thereof, described in subparagraph (A); or

        ‘(C) the qualifying cogeneration facility does not meet criteria established by the Commission pursuant to the rulemaking set forth in subparagraph (n) and has not filed with the Commission a notice of self-certification or an application for Commission certification under 18 C.F.R. 292.207 prior to the date of enactment of this subsection.

      ‘(2) COMMISSION REVIEW- (A) Any electric utility may file an application with the Commission for relief from the mandatory purchase obligation pursuant to this subsection on a utility-wide basis. Such application shall set forth the reasons why such relief is appropriate and describe how the conditions set forth in subparagraphs (A) and (B) of paragraph (1) of this subsection have been met.

      ‘(B) After notice, including sufficient notice to potentially affected qualifying facilities, and an opportunity for comment, and within 90 days of the filing of an application under subparagraph (A), the Commission shall make a final determination as to whether the conditions set forth in subparagraphs (A) and (B) of paragraph (1) have been met. The Commission shall not be authorized to issue a tolling order regarding such application or otherwise delay a final decision regarding such application.

      ‘(3) REINSTATEMENT OF OBLIGATION TO PURCHASE- (A) At any time after the Commission makes a finding under paragraph (2) relieving an electric utility of its obligation to purchase electric energy, a qualifying cogeneration facility or a qualifying small power production facility may apply to the Commission for an order reinstating the electric utility’s obligation to purchase electric energy under this section. Such application shall set forth the reasons why such relief is no longer appropriate and describe how the tests set forth in subparagraphs (A) and (B) of paragraph (1) of this subsection are no longer met.

      ‘(B) After notice, including sufficient notice to potentially affected utilities, and opportunity for comment, and within 90 days of the filing of an application under subparagraph (A), the Commission shall issue an order reinstating the electric utility’s obligation to purchase electric energy under this section if the Commission finds that the condition in paragraph (1), which relieved the obligation to purchase, is no longer met. The Commission shall not be authorized to issue a tolling order regarding such application or otherwise delay a final decision regarding such application.

      ‘(4) OBLIGATION TO SELL- After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to sell electric energy to a qualifying cogeneration facility or a qualifying small power production facility if--

        ‘(A) competing retail electric suppliers are willing and able to provide electric energy to the qualifying cogeneration facility or qualifying small power production facility, and

        ‘(B) the electric utility is not required by State law to sell electric energy in its service territory.

      ‘(5) NO EFFECT ON EXISTING RIGHTS AND REMEDIES- Nothing in this subsection affects the rights or remedies of any party under any contract or obligation, in effect or pending approval before the appropriate State regulatory authority or nonregulated electric utility on the date of enactment of this subsection, to purchase electric energy or capacity from or to sell electric energy or capacity to a facility under this Act (including the right to recover costs of purchasing electric energy or capacity).

      ‘(6) RECOVERY OF COSTS-

        ‘(A) REGULATION- To ensure recovery by an electric utility that purchases electric energy or capacity from a qualifying facility pursuant to any legally enforceable obligation entered into or imposed under this section of all prudently incurred costs associated with the purchases, the Commission shall issue and enforce such regulations as may be required to ensure that the electric utility shall recover the prudently incurred costs associated with such purchases.

        ‘(B) ENFORCEMENT- A regulation under subparagraph (A) shall be enforceable in accordance with the provisions of law applicable to enforcement of regulations under the Federal Power Act (16 U.S.C. 791a et seq.).

    ‘(n) RULEMAKING FOR NEW FACILITIES-

      ‘(1) IN GENERAL- Not later than 180 days after the date of enactment of this subsection, the Commission shall issue a rule revising the criteria for qualifying cogeneration facilities in 18 C.F.R. 292.205. In particular, the Commission shall evaluate the rules regarding qualifying facility criteria and revise such rules, as necessary, to ensure--

        ‘(A) that the thermal energy output of a new qualifying cogeneration facility is used in a productive and beneficial manner;

        ‘(B) the electrical and thermal output of the cogeneration facility is used predominantly for commercial or industrial processes and not intended predominantly for sale to an electric utility; and

        ‘(C) continuing progress in the development of efficient electric energy generating technology.

      ‘(2) APPLICABILITY- Any revisions made to operating and efficiency standards shall be applicable only to a cogeneration facility that--

        ‘(A) was not a qualifying cogeneration facility, or

        ‘(B) had not filed with the Commission a notice of self-certification or an application for Commission certification under 18 C.F.R. 292.207

    prior to the date of enactment of this subsection.

      ‘(3) DEFINITION- For purposes of this subsection, the term ‘commercial processes’ includes uses of thermal and electric energy for educational and healthcare facilities.

    ‘(o) RULES FOR EXISTING FACILITIES- Notwithstanding rule revisions under subsection (n), the Commission’s rules in effect prior to the effective date of any revised rules prescribed under subsection (n) shall continue to apply to any cogeneration facility or small power production facility that--

      ‘(1) was a qualifying cogeneration facility or a qualifying small power production facility, or

      ‘(2) had filed with the Commission a notice of self-certification or an application for Commission certification under 18 C.F.R. 292.207

    prior to the date of enactment of subsections (m) and (n).’.

    (b) ELIMINATION OF OWNERSHIP LIMITATIONS- (1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is amended to read as follows:

    ‘(C) ‘qualifying small power production facility’ means a small power production facility that the Commission determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Commission may, by rule, prescribe.’.

    (2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B)) is amended to read as follows:

    ‘(B) ‘qualifying cogeneration facility’ means a cogeneration facility that the Commission determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Commission may, by rule, prescribe.’.

SEC. 7063. SMART METERING.

    (a) IN GENERAL- Section 111(d) of the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

      ‘(13) TIME-BASED METERING AND COMMUNICATIONS- (A) Not later than eighteen (18) months after the date of enactment of this paragraph, each electric utility shall offer each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance in the costs of generating and purchasing electricity at the wholesale level. The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology.

      ‘(B) The types of time-based rate schedules that may be offered under the schedule referred to in subparagraph (A) include, among others, each of the following:

        ‘(i) Time-Of-Use pricing whereby electricity prices are set for a specific time period on an advance or forward basis, typically not changing more often than twice a year. Prices paid for energy consumed during these periods shall be pre-established and known to consumers in advance of such consumption, allowing them to vary their demand and usage in response to such prices and manage their energy costs by shifting usage to a lower cost period or reducing their consumption overall.

        ‘(ii) Critical Peak Pricing whereby time-of-use prices are in effect except for certain peak days, when prices may reflect the costs of generating and purchasing electricity at the wholesale level and when consumers may receive additional discounts for reducing peak period energy consumption.

        ‘(iii) Real-Time pricing whereby electricity prices are set for a specific time period on an advanced or forward basis and may change as often as hourly.

      ‘(C) Each electric utility subject to subparagraph (A) shall provide each customer requesting a time-based rate with a time-based meter capable of enabling the utility and customer to offer and receive such rate, respectively.

      ‘(D) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      ‘(E) In a State that permits third-party marketers to sell electric energy to retail electric consumers, such consumers shall be entitled to receive that same time-based metering and communications device and service as a retail electric consumer of the electric utility.

      ‘(F) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall, not later than twelve (12) months after enactment of this paragraph conduct an investigation in accordance with section 115(i) and issue a decision whether it is appropriate to implement the standards set out in subparagraphs (A) and (C).’.

    (b) STATE INVESTIGATION OF DEMAND RESPONSE AND TIME-BASED METERING-

    Section 115 of the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding the at the end the following:

    ‘(k) TIME-BASED METERING AND COMMUNICATIONS- Each State regulatory authority shall, not later than twelve (12) months after enactment of this subsection, conduct an investigation and issue a decision whether or not it is appropriate for electric utilities to provide and install time-based meters and communications devices for each of their customers which enable such customers to participate in time-based pricing rate schedules and other demand response programs.’.

    (c) FEDERAL ASSISTANCE ON DEMAND RESPONSE- Section 132(a) of the Public Utility Regulatory Polices Act of 1978 (16 U.S.C. 2642(a)) is amended by striking ‘and’ at the end of paragraph (3), striking the period at the end of paragraph (4) and inserting ‘; and’, and by adding the following at the end thereof:

      ‘(5) technologies, techniques and rate-making methods related to advanced metering and communications and the use of these technologies, techniques and methods in demand response programs.’.

    (d) FEDERAL GUIDANCE- Section 132 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2643) is amended by adding the following at the end thereof:

    ‘(d) DEMAND RESPONSE- The Secretary shall be responsible for each of the following:

      ‘(1) Educating consumers on the availability, advantages and benefits of advanced metering and communications technologies including the funding of demonstration or pilot projects.

      ‘(2) Working with States, utilities, other energy providers and advanced metering and communications experts to identify and address barriers to the adoption of demand response programs, and

      ‘(3) Within 6 months of enactment, provide the Congress with a report that identifies and quantifies the national benefits of demand response and provides policy recommendations as to how to achieve specific levels of such benefits by January 1, 2005.’.

    (e) DEMAND RESPONSE AND REGIONAL COORDINATION-

      (1) POLICY- It is the policy of the United States to encourage States to coordinate, on a regional basis, State energy policies to provide reliable and affordable demand response services to the public.

      (2) TECHNICAL ASSISTANCE- The Secretary of Energy shall provide technical assistance to States and regional organizations formed by two or more States to assist them in--

        (A) identifying the areas with the greatest demand response potential;

        (B) identifying and resolving problems in transmission and distribution networks, including through the use of demand response; and

        (C) developing plans and programs to use demand response to respond to peak demand or emergency needs.

      (3) REPORT- The Federal Energy Regulatory Commission shall prepare and publish an annual report, by appropriate region, that assesses demand response resources, including those available from all consumer classes, and which identifies and reviews each of the following:

        (A) Saturation and penetration rate of advanced meters and communications technologies, devices and systems.

        (B) Existing demand response programs and time-based rate programs.

        (C) The annual resource contribution of demand resources, including the prior year and following years.

        (D) The potential for demand response as a quantifiable, reliable resource for regional planning purposes.

        (E) Steps taken to ensure that, in regional transmission planning and operations, that demand resources are provided equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, transmission provider or transmitting party.

    (f) COST RECOVERY OF DEMAND RESPONSE DEVICES- It is the policy of the United States that time-based pricing and other forms of demand response, whereby electricity customers are provided with electricity price signals and the ability to benefit by responding to them, shall be encouraged and the deployment of such technology and devices that enable electricity customers to participate in such pricing and demand response systems shall be facilitated. It is further the policy of the United States that the benefits of such demand response that accrue to those not deploying such technology and devices, but who are part of the same regional electricity entity, shall be recognized.

Subtitle F--Renewable Energy

SEC. 7071. NET METERING.

    (a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

      ‘(14) NET METERING- (A) Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves.

      ‘(B) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      ‘(C) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standard set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.’.

    (b) SPECIAL RULES FOR NET METERING- Section 115 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the following:

    ‘(l) NET METERING- In undertaking the consideration and making the determination under section 111 with respect to the standard concerning net metering established by section 111(d)(14), the term ‘net metering service’ shall mean a service provided in accordance with the following standards:

      ‘(1) RATES AND CHARGES- An electric utility--

        ‘(A) shall charge the owner or operator of an on-site generating facility rates and charges that are identical to those that would be charged other electric consumers of the electric utility in the same rate class; and

        ‘(B) shall not charge the owner or operator of an on-site generating facility any additional standby, capacity, interconnection, or other rate or charge.

      ‘(2) MEASUREMENT- An electric utility that sells electric energy to the owner or operator of an on-site generating facility shall measure the quantity of electric energy produced by the on-site facility and the quantity of electric energy consumed by the owner or operator of an on-site generating facility during a billing period in accordance with normal metering practices.

      ‘(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED- If the quantity of electric energy sold by the electric utility to an on-site generating facility exceeds the quantity of electric energy supplied by the on-site generating facility to the electric utility during the billing period, the electric utility may bill the owner or operator for the net quantity of electric energy sold, in accordance with normal metering practices.

      ‘(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED- If the quantity of electric energy supplied by the on-site generating facility to the electric utility exceeds the quantity of electric energy sold by the electric utility to the on-site generating facility during the billing period--

        ‘(A) the electric utility may bill the owner or operator of the on-site generating facility for the appropriate charges for the billing period in accordance with paragraph (2); and

        ‘(B) the owner or operator of the on-site generating facility shall be credited for the excess kilowatt-hours generated during the billing period, with the kilowatt-hour credit appearing on the bill for the following billing period.

      ‘(5) SAFETY AND PERFORMANCE STANDARDS- An eligible on-site generating facility and net metering system used by an electric consumer shall meet all applicable safety, performance, reliability, and interconnection standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.

      ‘(6) ADDITIONAL CONTROL AND TESTING REQUIREMENTS- The Commission, after consultation with State regulatory authorities and nonregulated electric utilities and after notice and opportunity for comment, may adopt, by rule, additional control and testing requirements for on-site generating facilities and net metering systems that the Commission determines are necessary to protect public safety and system reliability.

      ‘(7) DEFINITIONS- For purposes of this subsection:

        ‘(A) The term ‘eligible on-site generating facility’ means--

          ‘(i) a facility on the site of a residential electric consumer with a maximum generating capacity of 10 kilowatts or less that is fueled by solar energy, wind energy, or fuel cells; or

          ‘(ii) a facility on the site of a commercial electric consumer with a maximum generating capacity of 500 kilowatts or less that is fueled solely by a renewable energy resource, landfill gas, or a high efficiency system.

        ‘(B) The term ‘renewable energy resource’ means solar, wind, biomass, or geothermal energy.

        ‘(C) The term ‘high efficiency system’ means service fuel cells or combined heat and power.

        ‘(D) The term ‘net metering’ means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.’

SEC. 7072. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) INCENTIVE PAYMENTS- Section 1212(a) of the Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amended by striking ‘and which satisfies’ and all that follows through ‘Secretary shall establish.’ and inserting ‘. If there are insufficient appropriations to make full payments for electric production from all qualified renewable energy facilities in any given year, the Secretary shall assign 60 percent of appropriated funds for that year to facilities that use solar, wind, geothermal, or closed-loop (dedicated energy crops) biomass technologies to generate electricity, and assign the remaining 40 percent to other projects. The Secretary may, after transmitting to the Congress an explanation of the reasons therefor, alter the percentage requirements of the preceding sentence.’.

    (b) QUALIFIED RENEWABLE ENERGY FACILITY- Section 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--

      (1) by striking ‘a State or any political’ and all that follows through ‘nonprofit electrical cooperative’ and inserting ‘a not-for-profit electric cooperative, a public utility described in section 115 of the Internal Revenue Code of 1986, a State, Commonwealth, territory, or possession of the United States or the District of Columbia, or a political subdivision thereof, or an Indian tribal government of subdivision thereof,’; and

      (2) by inserting ‘landfill gas,’ after ‘wind, biomass,’.

    (c) ELIGIBILITY WINDOW- Section 1212(c) of the Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by striking ‘during the 10-fiscal year period beginning with the first full fiscal year occurring after the enactment of this section’ and inserting ‘after October 1, 2003, and before October 1, 2013’.

    (d) AMOUNT OF PAYMENT- Section 1212(e)(1) of the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ‘landfill gas,’ after ‘wind, biomass,’.

    (e) SUNSET- Section 1212(f) of the Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by striking ‘the expiration of’ and all that follows through ‘of this section’ and inserting ‘September 30, 2023’.

    (f) AUTHORIZATION OF APPROPRIATIONS- Section 1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:

    ‘(g) AUTHORIZATION OF APPROPRIATIONS-

      ‘(1) IN GENERAL- Subject to paragraph (2), there are authorized to be appropriated such sums as may be necessary to carry out this section for fiscal years 2003 through 2023.

      ‘(2) AVAILABILITY OF FUNDS- Funds made available under paragraph (1) shall remain available until expended.’.

SEC. 7073. RENEWABLE ENERGY ON FEDERAL LANDS.

    (a) REPORT TO CONGRESS- Within 24 months after the date of enactment of this section, the Secretary of the Interior, in cooperation with the Secretary of Agriculture, shall develop and report to the Congress recommendations on opportunities to develop renewable energy on public lands under the jurisdiction of the Secretary of the Interior and National Forest System lands under the jurisdiction of the Secretary of Agriculture. The report shall include--

      (1) 5-year plans developed by the Secretary of the Interior and the Secretary of Agriculture, respectively, for encouraging the development of wind and solar energy consistent with applicable law and management plans; and

      (2) an analysis of--

        (A) the use of rights-of-ways, leases, or other methods to develop wind and solar energy on such lands;

        (B) the anticipated benefits of grants, loans, tax credits, or other provisions to promote wind and solar energy development on such lands; and

        (C) any issues that the Secretary of the Interior or the Secretary of Agriculture have encountered in managing wind or solar energy projects on such lands, or believe are likely to arise in relation to the development of wind or solar energy on such lands;

      (3) a list, developed in consultation with the Secretary of Energy and the Secretary of Defense, of lands under the jurisdiction of the Department of Energy or Defense that would be suitable for development for wind or solar energy, and any recommended

statutory and regulatory mechanisms for such development; and

      (4) any recommendations pertaining to the issues addressed in the report.

    (b) NATIONAL ACADEMY OF SCIENCES STUDY-

      (1) IN GENERAL- Within 90 days after the date of the enactment of this Act, the Secretary of the Interior shall contract with the National Academy of Sciences to--

        (A) study the potential for the development of wind, solar, and ocean energy on the Outer Continental Shelf;

        (B) assess existing Federal authorities for the development of such resources; and

        (C) recommend statutory and regulatory mechanisms for such development.

      (2) TRANSMITTAL OF RESULTS- The results of the study shall be transmitted to the Congress within 24 months after the date of the enactment of this Act.

SEC. 7074. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) RESOURCE ASSESSMENT- Not later than 3 months after the date of enactment of this Act, and each year thereafter, the Secretary of Energy shall review the available assessments of renewable energy resources available within the United States, including solar, wind, biomass, ocean, geothermal, and hydroelectric energy resources, and undertake new assessments as necessary, taking into account changes in market conditions, available technologies, and other relevant factors.

    (b) CONTENTS OF REPORTS- Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Secretary shall publish a report based on the assessment under subsection (a). The report shall contain--

      (1) a detailed inventory describing the available amount and characteristics of the renewable energy resources; and

      (2) such other information as the Secretary believes would be useful in developing such renewable energy resources, including descriptions of surrounding terrain, population and load centers, nearby energy infrastructure, location of energy and water resources, and available estimates of the costs needed to develop each resource, together with an identification of any barriers to providing adequate transmission for remote sources of renewable energy resources to current and emerging markets, recommendations for removing or addressing such barriers, and ways to provide access to the grid that do not unfairly disadvantage renewable or other energy producers.

Subtitle G--Market Transparency, Round Trip Trading Prohibition, and Enforcement

SEC. 7081. MARKET TRANSPARENCY RULES.

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

‘SEC. 219. MARKET TRANSPARENCY RULES.

    ‘(a) COMMISSION RULES- Not later than 180 days after the date of enactment of this section, the Commission shall issue rules establishing an electronic information system to provide the Commission and the public with access to such information as is necessary or appropriate to facilitate price transparency and participation in markets subject to the Commission’s jurisdiction. Such systems shall provide information about the availability and market price of sales of electric energy at wholesale in interstate commerce and transmission of electric energy in interstate commerce to the Commission, State commissions, buyers and sellers of wholesale electric energy, users of transmission services, and the public on a timely basis. The Commission shall have authority to obtain such information from any person, and any entity described in section 201(f), who sells electric energy at wholesale in interstate commerce or provides transmission services in interstate commerce.

    ‘(b) EXEMPTIONS- The Commission shall exempt from disclosure information it determines would, if disclosed, (1) be detrimental to the operation of an effective market; or (2) jeopardize system security. This section shall not apply to an entity described in section 212(k)(2)(B) with respect to transactions for the purchase or sale of wholesale electric energy and transmission services within the area described in section 212(k)(2)(A).’.

SEC. 7082. PROHIBITION ON ROUND-TRIP TRADING.

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

‘SEC. 220. PROHIBITION ON ROUND-TRIP TRADING.

    ‘(a) PROHIBITION- It shall be a violation of this Act for any person, and any entity described in section 201(f), willfully and knowingly to enter into any contract or other arrangement to execute a round-trip trade for the purchase or sale of electric energy at wholesale.

    ‘(b) DEFINITION OF ROUND-TRIP TRADE- For the purposes of this section, the term ‘round-trip trade’ means a transaction, or combination of transactions, in which a person or other entity--

      ‘(1) enters into a contract or other arrangement to purchase from, or sell to, any other person or other entity electric energy at wholesale;

      ‘(2) simultaneously with entering into the contract described in paragraph (1), arranges a financially offsetting trade with such other person or entity for the same quantity of electric energy so that, collectively, the purchase and sale transactions in themselves result in no financial gain or loss; and

      ‘(3) has a specific intent to distort reported revenues, trading volumes, or prices.’.

SEC. 7083. CONFORMING CHANGES.

    Section 201(e) of the Federal Power Act is amended by striking ‘or 212’ and inserting ‘212, 215, 216, 217, 218, 219, or 220’. Section 201(b)(2) of such Act is amended by striking ‘and 212’ and inserting ‘212, 215, 216, 217, 218, 219, and 220’.

SEC. 7084. ENFORCEMENT.

    (a) COMPLAINTS- Section 306 of the Federal Power Act (16 U.S.C. 825e) is amended by--

      (1) inserting ‘electric utility,’ after ‘Any person,’; and

      (2) inserting ‘, transmitting utility,’ after ‘licensee’ each place it appears.

    (b) REVIEW OF COMMISSION ORDERS- Section 313(a) of the Federal Power Act (16 U.S.C. 8251) is amended by inserting ‘electric utility,’ after ‘person,’ in the first place it appears and by striking ‘any person unless such person’ and inserting ‘any entity unless such entity’.

    (c) CRIMINAL PENALTIES- Section 316 of the Federal Power Act (16 U.S.C. 825o) is amended--

      (1) in subsection (a), by striking ‘$5,000’ and inserting ‘$1,000,000’, and by striking ‘two years’ and inserting ‘five years’;

      (2) in subsection (b), by striking ‘$500’ and inserting ‘$25,000’; and

      (3) by striking subsection (c).

    (d) CIVIL PENALTIES- Section 316A of the Federal Power Act (16 U.S.C. 825-1) is amended--

      (1) in subsections (a) and (b), by striking ‘section 211, 212, 213, or 214’ each place it appears and inserting ‘Part II’; and

      (2) in subsection (b), by striking ‘$10,000’ and inserting ‘$1,000,000’.

Subtitle H--Consumer Protections

SEC. 7091. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is amended by--

      (1) striking ‘the date 60 days after the filing of such complaint nor later than 5 months after the expiration of such 60-day period’ in the second sentence and inserting ‘the date of the filing of such complaint nor later than 5 months after the filing of such complaint’;

      (2) striking ‘60 days after’ in the third sentence and inserting ‘of’;

      (3) striking ‘expiration of such 60-day period’ in the third sentence and inserting ‘publication date’; and

      (4) in the fifth sentence after ‘rendered by the’ insert ‘date 60 days after the’.

SEC. 7092. JURISDICTION OVER INTERSTATE SALES.

    (a) SCOPE OF AUTHORITY- Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by adding the following new subsection at the end thereof:

    ‘(e)(1) If an entity that is not a public utility (including an entity referred to in section 201(f)) voluntarily makes a spot market sale of electric energy and such sale violates Commission rules in effect at the time of such sale, such entity shall be subject to the Commission’s refund authority under this section with respect to such violation.

    ‘(2) This section shall not apply to any entity that is either--

      ‘(A) an entity described in section 201(f); or

      ‘(B) a rural electric cooperative

    that does not sell more than 4,000,000 megawatt hours of electricity per year.

    ‘(3) For purposes of this subsection, the term ‘spot market sale’ means an agreement for the sale of electric energy at wholesale in interstate commerce that is for 24 hours or less and that is entered into the day of, or the day prior to, delivery.’.

    (b) CONFORMING AMENDMENTS- (1) Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended as follows:

      (A) In subsection (b), in the seventh sentence, by striking ‘the public utility to make’.

      (B) In the first sentence of subsection (a), by striking ‘hearing had’ and inserting ‘hearing held’.

    (2) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) is amended as follows:

      (A) In the first sentence by striking ‘sections 210’ and inserting ‘sections 206(f), 210’.

      (B) In the second sentence by striking ‘section 210’ and inserting ‘section 206(f), 210,’.

    (3) Section 201(e) of the Federal Power Act is amended by striking ‘section 210’ and inserting ‘section 206(f), 210’.

    (c) UNIFORM INVESTIGATION AUTHORITY- Section 307(a) of the Federal Power Act (16 U.S.C. 825f(a)) is amended as follows:

      (1) By inserting ‘, electric utility, transmitting utility, or other entity’ after ‘person’ each time it appears.

      (2) By striking the period at the end of the first sentence and inserting the following: ‘or in obtaining information about the sale of electric energy at wholesale in interstate commerce and the transmission of electric energy in interstate commerce.’.

    (d) SANCTITY OF CONTRACT- (1) The Federal Energy Regulatory Commission shall have no authority to abrogate or modify any provision of a contract, except upon a finding, after notice and opportunity for a hearing, that such action is necessary to protect the public interest, unless such contract expressly provides for a different standard of review.

    (2) For purposes of this subsection, a contract is any agreement, in effect and subject to the jurisdiction of the Commission--

      (A) under section 4 of the Natural Gas Act or section 205 of the Federal Power Act; and

      (B) that is not for sales in an organized exchange or auction spot market.

    (3) This subsection shall not apply to any contract executed before the date of enactment of this section unless such contract is an interconnection agreement, nor shall this subsection affect the outcome in any proceeding regarding any contract for sales of electric power executed before the date of enactment of this section.

SEC. 7093. CONSUMER PRIVACY.

    (a) IN GENERAL- The Federal Trade Commission shall issue rules protecting the privacy of electric consumers from the disclosure of consumer information obtained in connection with the sale or delivery of electric energy to electric consumers. The Federal Trade Commission shall proceed in accordance with section 553 of title 5, United States Code, when prescribing a rule under this section.

    (b) STATE AUTHORITY- If the Federal Trade Commission determines that a State’s regulations provide equivalent or greater protection than the provisions of this section, such State regulations shall apply in that State in lieu of the regulations issued by the Commission under this section.

SEC. 7094. UNFAIR TRADE PRACTICES.

    (a) SLAMMING- The Federal Trade Commission shall issue rules prohibiting the change of selection of an electric utility except with the informed consent of the electric consumer or if approved by the appropriate State regulatory authority.

    (b) CRAMMING- The Federal Trade Commission shall issue rules prohibiting the sale of goods and services to an electric consumer unless expressly authorized by law or the electric consumer.

    (c) RULEMAKING- The Federal Trade Commission shall proceed in accordance with section 553 of title 5, United States Code, when prescribing a rule under this section.

    (d) STATE AUTHORITY- If the Federal Trade Commission determines that a State’s regulations provide equivalent or greater protection than the provisions of this section, such State regulations shall apply in that State in lieu of the regulations issued by the Commission under this section.

Subtitle I--Merger Review Reform and Accountability

SEC. 7101. MERGER REVIEW REFORM AND ACCOUNTABILITY.

    (a) MERGER REVIEW REFORM- Within 180 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Federal Energy Regulatory Commission and the Department of Justice, shall prepare, and transmit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate each of the following:

      (1) A study of the extent to which the authorities vested in the Federal Energy Regulatory Commission under section 203 of the Federal Power Act are duplicative of authorities vested in--

        (A) other agencies of Federal and State government; and

        (B) the Federal Energy Regulatory Commission, including under sections 205 and 206 of the Federal Power Act.

      (2) Recommendations on reforms to the Federal Power Act that would eliminate any unnecessary duplication in the exercise of regulatory authority or unnecessary delays in the approval (or disapproval) of applications for the sale, lease, or other disposition of public utility facilities.

    (b) MERGER REVIEW ACCOUNTABILITY- Not later than 1 year after the date of enactment of this Act and annually thereafter, with respect to all orders issued within the preceding year that impose a condition on a sale, lease, or other disposition of public utility facilities under section 203(b) of the Federal Power Act, the Federal Energy Regulatory Commission shall transmit a report to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate explaining each of the following:

      (1) The condition imposed.

      (2) Whether the Commission could have imposed such condition by exercising its authority under any provision of the Federal Power Act other than under section 203(b).

      (3) If the Commission could not have imposed such condition other than under section 203(b), why the Commission determined that such condition was consistent with the public interest.

Subtitle J--Study of Economic Dispatch

SEC. 7111. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) STUDY- The Secretary of Energy, in coordination and consultation with the States, shall conduct a study on--

      (1) the procedures currently used by electric utilities to perform economic dispatch,

      (2) identifying possible revisions to those procedures to improve the ability of nonutility generation resources to offer their output for sale for the purpose of inclusion in economic dispatch; and

      (3) the potential benefits to residential, commercial, and industrial electricity consumers nationally and in each state if economic dispatch procedures were revised to improve the ability of nonutility generation resources to offer their output for inclusion in economic dispatch.

    (b) DEFINITION- The term ‘economic dispatch’ when used in this section means the operation of generation facilities to produce energy at the lowest cost to reliably serve consumers, recognizing any operational limits of generation and transmission facilities.

    (c) REPORT TO CONGRESS AND THE STATES- Not later than 90 days after the date of enactment of this Act, and on a yearly basis following, the Secretary of Energy shall submit a report to the Congress and the States on the results of the study conducted under subsection (a), including recommendations to the Congress and the States for any suggested legislative or regulatory changes.

TITLE VIII--COAL

SEC. 8001. AUTHORIZATION OF APPROPRIATIONS.

    (a) CLEAN COAL POWER INITIATIVE- Except as provided in subsection (b), there are authorized to be appropriated to the Secretary to carry out the activities authorized by this title $200,000,000 for each of the fiscal years 2005 through 2013, to remain available until expended.

    (b) LIMIT ON USE OF FUNDS- The Secretary shall transmit to the Congress the report required by this subsection not later than September 30, 2004. Notwithstanding subsection (a), no funds may be used to carry out the activities authorized by this title after September 30, 2004, unless the report has been transmitted. The report shall include, with respect to subsection (a), a 10-year plan containing--

      (1) a detailed assessment of whether the aggregate funding levels provided under subsection (a) are the appropriate funding levels for that program;

      (2) a detailed description of how proposals will be solicited and evaluated, including a list of all activities expected to be undertaken;

      (3) a detailed list of technical milestones for each coal and related technology that will be pursued; and

      (4) a detailed description of how the program will avoid problems enumerated in General Accounting Office reports on the Clean Coal Technology Program, including problems that have resulted in unspent funds and projects that failed either financially or scientifically.

    (c) APPLICABILITY- Subsection (b) shall not apply to any project begun before September 30, 2004.

SEC. 8002. PROJECT CRITERIA.

    (a) IN GENERAL- The Secretary shall not provide funding under this title for any project that does not advance efficiency, environmental performance, and cost competitiveness well beyond the level of technologies that on a full scale are in operation or have been demonstrated as of the date of the enactment of this Act.

    (b) TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE-

      (1) GASIFICATION- (A) In allocating the funds made available under section 8001(a), the Secretary shall ensure that up to 80 percent of the funds are used only for coal-based gasification technologies, including gasification combined cycle, gasification fuel cells, gasification coproduction and hybrid gasification/combustion.

      (B) The Secretary shall set technical milestones specifying emissions levels for projects funded under this paragraph. The milestones shall be designed to increasingly restrict emission levels through the life of the program. The milestones shall be designed to achieve by 2020 coal gasification projects able--

        (i) to remove 99 percent of sulfur dioxide;

        (ii) to emit no more than .05 lbs of NOx per million BTU;

        (iii) to achieve substantial reductions in mercury emissions; and

        (iv) to achieve a thermal efficiency of--

          (I) 60 percent for coal of more than 9,000 Btu;

          (II) 59 percent for coal of 7,000 to 9,000 Btu; and

          (III) 50 percent for coal of less than 7,000 Btu.

      (2) OTHER PROJECTS- For projects not described in paragraph (1), the Secretary shall set technical milestones specifying emissions levels. The milestones shall be designed to increasingly restrict emission levels through the life of the program. The milestones shall be designed to achieve by 2010 projects able--

        (A) to remove 97 percent of sulfur dioxide;

        (B) to emit no more than .08 lbs of NOx per million BTU;

        (C) to achieve substantial reductions in mercury emissions; and

        (D) except as provided in paragraph (4), to achieve a thermal efficiency of--

          (i) 45 percent for coal of more than 9,000 Btu;

          (ii) 44 percent for coal of 7,000 to 9,000 Btu; and

          (iii) 42 percent for coal of less than 7,000 Btu.

      (3) CONSULTATION- Before setting the technical milestones under paragraphs (1)(B) and (2), the Secretary shall consult with the Administrator of the Environmental Protection Agency and interested entities, including coal producers, industries using coal, organizations to promote coal or advanced coal technologies, environmental organizations, and organizations representing workers.

      (4) EXISTING UNITS- In the case of projects at existing units, in lieu of the thermal efficiency requirements set forth in paragraph (1)(B)(iv) and (2)(D), the projects shall be designed to achieve an overall thermal design efficiency improvement compared to the efficiency of the unit as operated, of not less than--

        (A) 7 percent for coal of more than 9,000 Btu;

        (B) 6 percent for coal of 7,000 to 9,000 Btu; or

        (C) 4 percent for coal of less than 7,000 Btu.

      (5) PERMITTED USES- In allocating funds made available under section 8001, the Secretary may fund projects that include, as part of the project, the separation and capture of carbon dioxide.

    (c) FINANCIAL CRITERIA- The Secretary shall not provide a funding award under this title unless the recipient has documented to the satisfaction of the Secretary that--

      (1) the award recipient is financially viable without the receipt of additional Federal funding;

      (2) the recipient will provide sufficient information to the Secretary for the Secretary to ensure that the award funds are spent efficiently and effectively; and

      (3) a market exists for the technology being demonstrated or applied, as evidenced by statements of interest in writing from potential purchasers of the technology.

    (d) FINANCIAL ASSISTANCE- The Secretary shall provide financial assistance to projects that meet the requirements of subsections (a), (b), and (c) and are likely to--

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

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

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

    (e) FEDERAL SHARE- The Federal share of the cost of a project funded by the Secretary under this title shall not exceed 50 percent.

    (f) APPLICABILITY- No technology, or level of emission reduction, shall be treated as adequately demonstrated for purposes of section 111 of the Clean Air Act, achievable for purposes of section 169 of that Act, or achievable in practice for purposes of section 171 of that Act solely by reason of the use of such technology, or the achievement of such emission reduction, by one or more facilities receiving assistance under this title.

SEC. 8003. REPORT.

    Not later than 1 year after the date of the enactment of this Act, and once every 2 years thereafter for the following 8 years, the Secretary, in consultation with other appropriate Federal agencies, shall transmit to the Congress a report describing--

      (1) the technical milestones set forth in section 8002 and how those milestones ensure progress toward meeting the requirements of subsections (b)(1)(B) and (b)(2) of section 8002; and

      (2) the status of projects funded under this title.

SEC. 8004. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 8001, the Secretary shall award competitive, merit-based grants to universities for the establishment of Centers of Excellence for Energy Systems of the Future. The Secretary shall provide grants to universities that can show the greatest potential for advancing new clean coal technologies.

TITLE IX--MOTOR FUELS

Subtitle A--General Provisions

SEC. 9101. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) IN GENERAL- Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended--

      (1) by redesignating subsection (o) as subsection (q); and

      (2) by inserting after subsection (n) the following:

    ‘(o) RENEWABLE FUEL PROGRAM-

      ‘(1) DEFINITIONS- In this section:

        ‘(A) CELLULOSIC BIOMASS ETHANOL- The term ‘cellulosic biomass ethanol’ means ethanol derived from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, including--

          ‘(i) dedicated energy crops and trees;

          ‘(ii) wood and wood residues;

          ‘(iii) plants;

          ‘(iv) grasses;

          ‘(v) agricultural residues;

          ‘(vi) fibers;

          ‘(vii) animal wastes and other waste materials; and

          ‘(viii) municipal solid waste.

        ‘(B) RENEWABLE FUEL-

          ‘(i) IN GENERAL- The term ‘renewable fuel’ means motor vehicle fuel that--

            ‘(I)(aa) is produced from grain, starch, oilseeds, or other biomass; or

            ‘(bb) is natural gas produced from a biogas source, including a landfill, sewage waste treatment plant, feedlot, or other place where decaying organic material is found; and

            ‘(II) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle.

          ‘(ii) INCLUSION- The term ‘renewable fuel’ includes cellulosic biomass ethanol and biodiesel (as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)) and any blending components derived from renewable fuel (provided that only the renewable fuel portion of any such blending component shall be considered part of the applicable volume under the renewable fuel program established by this subsection).

        ‘(C) SMALL REFINERY- The term ‘small refinery’ means a refinery for which average aggregate daily crude oil throughput for the calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.

      ‘(2) RENEWABLE FUEL PROGRAM-

        ‘(A) IN GENERAL- Not later than 1 year from enactment of this provision, the Administrator shall promulgate regulations ensuring that gasoline sold or dispensed to consumers in the contiguous United States, on an annual average basis, contains the applicable volume of renewable fuel as specified in subparagraph (B). Regardless of the date of promulgation, such regulations shall contain compliance provisions for refiners, blenders, and importers, as appropriate, to ensure that the requirements of this section are met, but shall not restrict where renewables can be used, or impose any per-gallon obligation for the use of renewables. If the Administrator does not promulgate such regulations, the applicable percentage, on a volume percentage of gasoline basis, shall be 1.62 in 2005.

        ‘(B) APPLICABLE VOLUME-

          ‘(i) CALENDAR YEARS 2005 THROUGH 2015- For the purpose of subparagraph (A), the applicable volume for any of calendar years 2005 through 2015 shall be determined in accordance with the following table:

Applicable volume of renewable fuel

‘Calendar year:

(In billions of gallons)

          2005

--2.7

          2006

--2.7

          2007

--2.9

          2008

--2.9

          2009

--3.4

          2010

--3.4

          2011

--3.4

          2012

--4.2

          2013

--4.2

          2014

--4.2

          2015

--5.0.

          ‘(ii) CALENDAR YEAR 2016 AND THEREAFTER- For the purpose of subparagraph (A), the applicable volume for calendar year 2016 and each calendar year thereafter shall be equal to the product obtained by multiplying--

            ‘(I) the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and

            ‘(II) the ratio that--

‘(aa) 5.0 billion gallons of renewable fuels; bears to

‘(bb) the number of gallons of gasoline sold or introduced into commerce in calendar year 2015.

      ‘(3) APPLICABLE PERCENTAGES- Not later than October 31 of each calendar year after 2002, the Administrator of the Energy Information Administration shall provide the Administrator an estimate of the volumes of gasoline sales in the United States for the coming calendar year. Based on such estimates, the Administrator shall, by November 30 of each calendar year after 2003, determine and publish in the Federal Register, the renewable fuel obligation, on a volume percentage of gasoline basis, applicable to refiners, blenders, and importers, as appropriate, for the coming calendar year, to ensure that the requirements of paragraph (2) are met. For each calendar year, the Administrator shall establish a single applicable percentage that applies to all parties, and make provision to avoid redundant obligations. In determining the applicable percentages, the Administrator shall make adjustments to account for the use of renewable fuels by exempt small refineries during the previous year.

      ‘(4) CELLULOSIC BIOMASS ETHANOL- For the purpose of paragraph (2), 1 gallon of cellulosic biomass ethanol shall be considered to be the equivalent of 1.5 gallon of renewable fuel.

      ‘(5) CREDIT PROGRAM-

        ‘(A) IN GENERAL- The regulations promulgated to carry out this subsection shall provide for the generation of an appropriate amount of credits by any person that refines, blends, or imports gasoline that contains a quantity of renewable fuel that is greater than the quantity required under paragraph (2). Such regulations shall provide for the generation of an appropriate amount of credits for biodiesel fuel. If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.

        ‘(B) USE OF CREDITS- A person that generates credits under subparagraph (A) may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with paragraph (2).

        ‘(C) LIFE OF CREDITS- A credit generated under this paragraph shall be valid to show compliance:

          ‘(i) in the calendar year in which the credit was generated or the next calendar year, or

          ‘(ii) in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (6).

        ‘(D) INABILITY TO PURCHASE SUFFICIENT CREDITS- The regulations promulgated to carry

out this subsection shall include provisions allowing any person that is unable to generate or purchase sufficient credits to meet the requirements under paragraph (2) to carry forward a renewables deficit provided that, in the calendar year following the year in which the renewables deficit is created, such person shall achieve compliance with the renewables requirement under paragraph (2), and shall generate or purchase additional renewables credits to offset the renewables deficit of the previous year.

      ‘(6) SEASONAL VARIATIONS IN RENEWABLE FUEL USE-

        ‘(A) STUDY- For each of calendar years 2005 through 2015, the Administrator of the Energy Information Administration, shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.

        ‘(B) REGULATION OF EXCESSIVE SEASONAL VARIATIONS- If, for any calendar year, the Administrator of the Energy Information Administration, based on the study under subparagraph (A), makes the determinations specified in subparagraph (C), the Administrator shall promulgate regulations to ensure that 35 percent or more of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) is used during each of the periods specified in subparagraph (D) of each subsequent calendar year.

        ‘(C) DETERMINATIONS- The determinations referred to in subparagraph (B) are that--

          ‘(i) less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during one of the periods specified in subparagraph (D) of the calendar year;

          ‘(ii) a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years; and

          ‘(iii) promulgating regulations or other requirements to impose a 35% or more seasonal use of renewable fuels will not prevent or interfere with the attainment of national ambient air quality standards or significantly increase the price of motor fuels to the consumer.

        ‘(D) PERIODS- The two periods referred to in this paragraph are--

          ‘(i) April through September; and

          ‘(ii) January through March and October through December.

        ‘(E) EXCLUSIONS- Renewable fuels blended or consumed in 2005 in a State which has received a waiver under section 209(b) shall not be included in the study in subparagraph (A).

      ‘(7) WAIVERS-

        ‘(A) IN GENERAL- The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, may waive the requirement of paragraph (2) in whole or in part on petition by one or more States by reducing the national quantity of renewable fuel required under this subsection--

          ‘(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirement would have a significant and meaningful adverse impact on the economy or environment of a State, a region, or the United States, or will prevent or interfere with the attainment of a national ambient air quality standard in any area of a State; or

          ‘(ii) based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.

        ‘(B) PETITIONS FOR WAIVERS- The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall approve or disapprove a State petition for a waiver of the requirement of paragraph (2) within 90 days after the date on which the petition is received by the Administrator. If the Administrator does not act to approve or disapprove a State petition for a waiver within 90 days, the Administrator shall publish a notice setting forth the reasons for not acting within the required 90-day period.

        ‘(C) TERMINATION OF WAIVERS- A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture and the Secretary of Energy.

      ‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF PROGRAM- Not later than 180 days from enactment, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2005, on a national, regional or State basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days from enactment, the Administrator shall, consistent with the recommendations of the Secretary waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2005. This provision shall not be interpreted as limiting the Administrator’s authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (7) or paragraph (9), pertaining to waivers.

      ‘(9) ASSESSMENT AND WAIVER- The Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture on his own motion, or upon petition of any State shall evaluate the requirement of

paragraph (2) and determine, prior to January 1, 2007, or prior to January 1 of any subsequent year in which the applicable volume of renewable fuel is increased under paragraph (2)(B), whether the requirement of paragraph (2), including the applicable volume of renewable fuel contained in paragraph (2)(B) should remain in effect, in whole or in part, during 2007 or any year or years subsequent to 2007. In evaluating the requirement of paragraph (2) and in making any determination under this section, the Secretary shall consider the best available information and data collected by accepted methods or best available means regarding--

        ‘(A) the capacity of renewable fuel producers to supply an adequate amount of renewable fuel at competitive prices to fulfill the requirement in paragraph (2);

        ‘(B) the potential of the requirement in paragraph (2) to significantly raise the price of gasoline, food or heating oil for consumers in any significant area or region of the country above the price that would otherwise apply to such commodities in the absence of the requirement;

        ‘(C) the potential of the requirement in paragraph (2) to interfere with the supply of fuel in any significant gasoline market or region of the country, including interference with the efficient operation of refiners, blenders, importers, wholesale suppliers, and retail vendors of gasoline, and other motor fuels; and

        ‘(D) the potential of the requirement to cause or promote exceedences of Federal, State, or local air quality standards.

      If the Secretary determines, after public notice and the opportunity for comment, that the requirement of paragraph (2) would have significant and meaningful adverse impact on the supply of fuel and related infrastructure or on the economy, environment, public health or environment of any significant area or region of the country, the Secretary may waive, in whole or in part, the requirement of paragraph (2) in any one year or period of years as well as reduce the applicable volume of renewable fuel contained in paragraph (2)(B) in any one year or period of years.

      ‘(10) SMALL REFINERIES-

        ‘(A) IN GENERAL- The requirement of paragraph (2) shall not apply to small refineries until the first calendar year beginning more than 5 years after the first year set forth in the table in paragraph (2)(B)(i). Not later than December 31, 2006, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.

        ‘(B) ECONOMIC HARDSHIP-

          ‘(i) EXTENSION OF EXEMPTION- A small refinery may at any time petition the Administrator for an extension of the exemption from the requirement of paragraph (2) for the reason of disproportionate economic hardship. In evaluating a hardship petition, the Administrator, in consultation with the Secretary of Energy, shall consider the findings of the study in addition to other economic factors.

          ‘(ii) DEADLINE FOR ACTION ON PETITIONS- The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.

        ‘(C) CREDIT PROGRAM- If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.

        ‘(D) OPT-IN FOR SMALL REFINERS- A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).’.

    (b) PENALTIES AND ENFORCEMENT- Section 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is amended--

      (1) in paragraph (1)--

        (A) in the first sentence, by striking ‘or (n)’ each place it appears and inserting ‘(n) or (o)’; and

        (B) in the second sentence, by striking ‘or (m)’ and inserting ‘(m), or (o)’; and

      (2) in the first sentence of paragraph (2), by striking ‘and (n)’ each place it appears and inserting ‘(n), and (o)’.

    (c) SURVEY OF RENEWABLE FUEL MARKET-

      (1) SURVEY AND REPORT- Not later than December 1, 2006, and annually thereafter, the Administrator of the Environmental Protection Agency (in consultation with the Secretary of Energy acting through the Administrator of the Energy Information Administration) shall--

        (A) conduct, with respect to each conventional gasoline use area and each reformulated gasoline use area in each State, a survey to determine the market shares of--

          (i) conventional gasoline containing ethanol;

          (ii) reformulated gasoline containing ethanol;

          (iii) conventional gasoline containing renewable fuel; and

          (iv) reformulated gasoline containing renewable fuel; and

        (B) submit to Congress, and make publicly available, a report on the results of the survey under subparagraph (A).

      (2) RECORDKEEPING AND REPORTING REQUIREMENTS- The Administrator may require any refiner, blender, or importer to keep such records and make

such reports as are necessary to ensure that the survey conducted under paragraph (1) is accurate. The Administrator shall rely, to the extent practicable, on existing reporting and recordkeeping requirements to avoid duplicative requirements.

      (3) APPLICABLE LAW- Activities carried out under this subsection shall be conducted in a manner designed to protect confidentiality of individual responses.

      (4) CALCULATION OF MARKET SHARES- Market shares for conventional gasoline and reformulated gasoline use areas will be calculated on a statewide basis using information collected under paragraph (2) and other information available to the Administrator. Market share information may be based upon gasoline distribution patterns that include multistate use areas.

SEC. 9102. FUELS SAFE HARBOR.

    (a) IN GENERAL- Notwithstanding any other provision of Federal or State law, no renewable fuel, as defined by section 211(o)(1) of the Clean Air Act, or fuel containing MTBE, used or intended to be used as a motor vehicle fuel, nor any motor vehicle fuel containing such renewable fuel or MTBE, shall be deemed defective in design or manufacture by virtue of the fact that it is, or contains, such a renewable fuel or MTBE, if it does not violate a control or prohibition imposed by the Administrator under section 211 of such Act, and the manufacturer is in compliance with all requests for information under subsection (b) of such section 211(b) of the Clean Air Act. If the safe harbor provided by this section does not apply, the existence of a design defect or manufacturing defect shall be determined under otherwise applicable law. Nothing in this paragraph shall be construed to affect the liability of any person for environmental remediation costs, drinking water contamination, negligence, public nuisance or any other liability other than liability for a defect in design or manufacture of a motor vehicle fuel.

    (b) EFFECTIVE DATE- This section shall be effective as of the date of enactment and shall apply with respect to all claims filed on or after that date.

SEC. 9103. FINDINGS AND MTBE TRANSITION ASSISTANCE.

    (a) FINDINGS- Congress finds that--

      (1) since 1979, methyl tertiary butyl ether (referred to in this section as ‘MTBE’) has been used nationwide at low levels in gasoline to replace lead as an octane booster or anti-knocking agent;

      (2) Public Law 101-549 (commonly known as the ‘Clean Air Act Amendments of 1990’) (42 U.S.C. 7401 et seq.) established a fuel oxygenate standard under which reformulated gasoline must contain at least 2 percent oxygen by weight;

      (3) at the time of the adoption of the fuel oxygen standard, Congress was aware that significant use of MTBE would result from the adoption of that standard, and that the use of MTBE would likely be important to the cost-effective implementation of that program;

      (4) Congress was aware that gasoline and its component additives can and do leak from storage tanks;

      (5) the fuel industry responded to the fuel oxygenate standard established by Public Law 101-549 by making substantial investments in--

        (A) MTBE production capacity; and

        (B) systems to deliver MTBE-containing gasoline to the marketplace;

      (6) Congress has--

        (A) reconsidered the relative value of the oxygenate requirement for reformulated gasoline; and

        (B) decided to provide for the elimination of the oxygenate requirement for reformulated gasoline and to provide for a renewable content requirement for motor fuel; and

      (7) it is appropriate for Congress to provide some limited transition assistance--

        (A) to merchant producers of MTBE who produced MTBE in response to a market created by the oxygenate requirement contained in the Clean Air Act; and

        (B) for the purpose of mitigating any fuel supply problems that may result from the elimination of the oxygenate requirement for reformulated gasoline.

    (b) PURPOSES- The purpose of this section is to provide assistance to merchant producers of MTBE in making the transition from producing MTBE to producing other fuel additives.

    (c) MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE- Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended by adding at the end the following:

      ‘(5) MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE-

        ‘(A) IN GENERAL-

          ‘(i) GRANTS- The Secretary of Energy, in consultation with the Administrator, may make grants to merchant producers of methyl tertiary butyl ether in the United States to assist the producers in the conversion of eligible production facilities described in subparagraph (C) to the production of iso-octane and alkylates.

          ‘(ii) Determination- The Administrator, in consultation with the Secretary of Energy, may determine that transition assistance for the production of iso-octane and alkylates is inconsistent with the provisions of subparagraph (B) and, on that basis, may deny applications for grants authorized by this provision.

        ‘(B) FURTHER GRANTS- The Secretary of Energy, in consultation with the Administrator, may also further make grants to merchant producers of MTBE in the United States to assist the producers in the conversion of eligible production facilities described in subparagraph (C) to the production of such other fuel additives that, consistent with this subsection--

          ‘(i) unless the Administrator determines that such fuel additives may reasonably be anticipated to endanger public health or the environment;

          ‘(ii) have been registered and have been tested or are being tested in accordance with the requirements of this section; and

          ‘(iii) will contribute to replacing gasoline volumes lost as a result of paragraph (5).

        ‘(C) Eligible production facilities- A production facility shall be eligible to receive a grant under this paragraph if the production facility--

          ‘(i) is located in the United States; and

          ‘(ii) produced methyl tertiary butyl ether for consumption before April 1, 2003 and ceased production at any time after the date of enactment.

        ‘(D) Authorization of appropriations- There is authorized to be appropriated to carry out this paragraph $250,000,000 for each of fiscal years 2004 through 2006, to remain available until expended.’.

    (d) EFFECT ON STATE LAW- The amendments made to the Clean Air Act by this title have no effect regarding any available authority of States to limit the use of methyl tertiary butyl ether in motor vehicle fuel.

SEC. 9104. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED GASOLINE.

    (a) Elimination-

      (1) In general- Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended--

        (A) in paragraph (2)--

          (i) in the second sentence of subparagraph (A), by striking ‘(including the oxygen content requirement contained in subparagraph (B))’;

          (ii) by striking subparagraph (B); and

          (iii) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively;

        (B) in paragraph (3)(A), by striking clause (v);

        (C) in paragraph (7)--

          (i) in subparagraph (A)--

            (I) by striking clause (i); and

            (II) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and

          (ii) in subparagraph (C)--

            (I) by striking clause (ii); and

            (II) by redesignating clause (iii) as clause (ii); and

      (2) Effective date- The amendments made by paragraph (1) take effect 270 days after the date of enactment of this Act, except that such amendments shall take effect upon enactment in any State that has received a waiver under section 209(b) of the Clean Air Act.

    (b) Maintenance of Toxic Air Pollutant Emission Reductions- Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is amended--

      (1) by striking ‘Within 1 year after the enactment of the Clean Air Act Amendments of 1990,’ and inserting the following:

        ‘(A) In general- Not later than November 15, 1991,’; and

      (2) by adding at the end the following:

        ‘(B) Maintenance of toxic air pollutant emissions reductions from reformulated gasoline-

          ‘(i) Definitions- In this subparagraph the term ‘PADD’ means a Petroleum Administration for Defense District.

          ‘(ii) Regulations regarding emissions of toxic air pollutants- Not later than 270 days after the date of enactment of this subparagraph the Administrator shall establish, for each refinery or importer, standards for toxic air pollutants from use of the reformulated gasoline produced or distributed by the refinery or importer that maintain the reduction of the average annual aggregate emissions of toxic air pollutants for reformulated gasoline produced or distributed by the refinery or importer during calendar years 1999 and 2000, determined on the basis of data collected by the Administrator with respect to the refinery or importer.

          ‘(iii) Standards applicable to specific refineries or importers-

            ‘(I) Applicability of standards- For any calendar year, the standards applicable to a refinery or importer under clause (ii) shall apply to the quantity of gasoline produced or distributed by the refinery or importer in the calendar year only to the extent that the quantity is less than or equal to the average annual quantity of reformulated gasoline produced or distributed by the refinery or importer during calendar years 1999 and 2000.

            ‘(II) Applicability of other standards- For any calendar year, the quantity of gasoline produced or distributed by a refinery or importer that is in excess of the quantity subject to subclause (I) shall be subject to standards for toxic air pollutants promulgated under subparagraph (A) and paragraph (3)(B).

          ‘(iv) Credit program- The Administrator shall provide for the granting and use of credits for emissions of toxic air pollutants in the same manner as provided in paragraph (7).

          ‘(v) Regional protection of toxics reduction baselines-

            ‘(I) In general- Not later than 60 days after the date of enactment of this subparagraph, and not later than April 1 of each calendar year that begins after that date of enactment, the Administrator shall publish in the Federal Register a report that specifies,

with respect to the previous calendar year--

‘(aa) the quantity of reformulated gasoline produced that is in excess of the average annual quantity of reformulated gasoline produced in 1999 and 2000; and

‘(bb) the reduction of the average annual aggregate emissions of toxic air pollutants in each PADD, based on retail survey data or data from other appropriate sources.

            ‘(II) Effect of failure to maintain aggregate toxics reductions- If, in any calendar year, the reduction of the average annual aggregate emissions of toxic air pollutants in a PADD fails to meet or exceed the reduction of the average annual aggregate emissions of toxic air pollutants in the PADD in calendar years 1999 and 2000, the Administrator, not later than 90 days after the date of publication of the report for the calendar year under subclause (I), shall--

‘(aa) identify, to the maximum extent practicable, the reasons for the failure, including the sources, volumes, and characteristics of reformulated gasoline that contributed to the failure; and

‘(bb) promulgate revisions to the regulations promulgated under clause (ii), to take effect not earlier than 180 days but not later than 270 days after the date of promulgation, to provide that, notwithstanding clause (iii)(II), all reformulated gasoline produced or distributed at each refinery or importer shall meet the standards applicable under clause (ii) not later than April 1 of the year following the report in subclause (II) and for subsequent years.

          ‘(vi) Regulations to control hazardous air pollutants from motor vehicles and motor vehicle fuels- Not later than July 1, 2004, the Administrator shall promulgate final regulations to control hazardous air pollutants from motor vehicles and motor vehicle fuels, as provided for in section 80.1045 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subparagraph).’.

    (c) Consolidation in Reformulated Gasoline Regulations- Not later than 180 days after the date of enactment of this Act, the Administrator shall revise the reformulated gasoline regulations under subpart D of part 80 of title 40, Code of Federal Regulations, to consolidate the regulations applicable to VOC-Control Regions 1 and 2 under section 80.41 of that title by eliminating the less stringent requirements applicable to gasoline designated for VOC-Control Region 2 and instead applying the more stringent requirements applicable to gasoline designated for VOC-Control Region 1.

    (d) SAVINGS CLAUSE- Nothing in this section is intended to affect or prejudice either any legal claims or actions with respect to regulations promulgated by the Administrator prior to enactment of this Act regarding emissions of toxic air pollutants from motor vehicles or the adjustment of standards applicable to a specific refinery or importer made under such prior regulations and the Administrator may apply such adjustments to the standards applicable to such refinery or importer under clause (iii)(I) of section 211(k)(1)(B) of the Clean Air Act, except that--

      (1) the Administrator shall revise such adjustments to be based only on calendar years 1999-2000, and

      (2) for adjustments based on toxic air pollutant emissions from reformulated gasoline significantly below the national annual average emissions of toxic air pollutants from all reformulated gasoline, the Administrator may revise such adjustments to take account of the scope of any lawful and enforceable Federal or State prohibition on methyl tertiary butyl ether imposed after the effective date of the enactment of this paragraph, except that any such adjustment shall require such refiner or importer, to the greatest extent practicable, to maintain the reduction achieved during calendar year 1999-2000 in the average annual aggregate emissions of toxic air pollutants from reformulated gasoline produced or distributed by the refinery or importer. Any such adjustment shall not be made at a level below the average percentage of reductions of emissions of toxic air pollutants for reformulated gasoline supplied to PADD I during calendar years 1999-2000.

SEC. 9105. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by inserting after subsection (o) the following:

    ‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES AND EMISSIONS MODEL-

      ‘(1) ANTI-BACKSLIDING ANALYSIS-

        ‘(A) DRAFT ANALYSIS- Not later than 4 years after the date of enactment of this paragraph, the Administrator shall publish for public comment a draft analysis of the changes in emissions of air pollutants and air quality due to the use of motor vehicle fuel and fuel additives resulting from implementation of the amendments made by title IX of the Energy Policy Act of 2003.

        ‘(B) FINAL ANALYSIS- After providing a reasonable opportunity for comment but not later than 5 years after the date of enactment of this paragraph, the Administrator shall publish the analysis in final form.

      ‘(2) EMISSIONS MODEL- For the purposes of this subsection, as soon as the necessary data are available, the Administrator shall develop and finalize an emissions model that reasonably reflects the effects of gasoline characteristics or components on

emissions from vehicles in the motor vehicle fleet during calendar year 2005.’.

SEC. 9106. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 7135) is amended by adding at the end the following:

    ‘(m) RENEWABLE FUELS SURVEY- (1) In order to improve the ability to evaluate the effectiveness of the Nation’s renewable fuels mandate, the Administrator shall conduct and publish the results of a survey of renewable fuels demand in the motor vehicle fuels market in the United States monthly, and in a manner designed to protect the confidentiality of individual responses. In conducting the survey, the Administrator shall collect information both on a national and regional basis, including--

      ‘(A) the quantity of renewable fuels produced;

      ‘(B) the quantity of renewable fuels blended;

      ‘(C) the quantity of renewable fuels imported;

      ‘(D) the quantity of renewable fuels demanded;

      ‘(E) market price data; and

      ‘(F) such other analyses or evaluations as the Administrator finds is necessary to achieve the purposes of this section.

    ‘(2) The Administrator shall also collect or estimate information both on a national and regional basis, pursuant to subparagraphs (A) through (F) of paragraph (1), for the five years prior to implementation of this subsection.

    ‘(3) This subsection does not affect the authority of the Administrator to collect data under section 52 of the Federal Energy Administration Act of 1974 (15 U.S.C. 790a).’.

SEC. 9107. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) STUDY-

      (1) IN GENERAL- The Administrator of the Environmental Protection Agency and the Secretary of Energy shall jointly conduct a study of Federal, State, and local requirements concerning motor vehicle fuels, including--

        (A) requirements relating to reformulated gasoline, volatility (measured in Reid vapor pressure), oxygenated fuel, and diesel fuel; and

        (B) other requirements that vary from State to State, region to region, or locality to locality.

      (2) REQUIRED ELEMENTS- The study shall assess--

        (A) the effect of the variety of requirements described in paragraph (1) on the supply, quality, and price of motor vehicle fuels available to consumers in various States and localities;

        (B) the effect of the requirements described in paragraph (1) on achievement of--

          (i) national, regional, and local air quality standards and goals; and

          (ii) related environmental and public health protection standards and goals;

        (C) the effect of Federal, State, and local motor vehicle fuel regulations, including multiple motor vehicle fuel requirements, on--

          (i) domestic refineries;

          (ii) the fuel distribution system; and

          (iii) industry investment in new capacity;

        (D) the effect of the requirements described in paragraph (1) on emissions from vehicles, refineries, and fuel handling facilities;

        (E) the feasibility of developing national or regional motor vehicle fuel slates for the 48 contiguous States that, while improving air quality at the national, regional and local levels consistent with the attainment of national ambient air quality standards, could--

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

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

          (iii) provide increased liquidity to the gasoline market; and

          (iv) enhance fuel quality, consistency, and supply;

        (F) the feasibility of providing incentives, to promote cleaner burning motor vehicle fuel; and

        (G) the extent to which improvements in air quality and any increases or decreases in the price of motor fuel can be projected to result from the Environmental Protection Agency’s Tier II requirements for conventional gasoline and vehicle emission systems, the reformulated gasoline program, the renewable content requirements established by this subtitle, State programs regarding gasoline volatility, and any other requirements imposed by States or localities affecting the composition of motor fuel.

    (b) REPORT-

      (1) IN GENERAL- Not later than December 31, 2006, the Administrator of the Environmental Protection Agency and the Secretary of Energy shall submit to Congress a report on the results of the study conducted under subsection (a).

      (2) RECOMMENDATIONS-

        (A) IN GENERAL- The report shall contain recommendations for legislative and administrative actions that may be taken--

          (i) to improve air quality;

          (ii) to reduce costs to consumers and producers; and

          (iii) to increase supply liquidity.

        (B) REQUIRED CONSIDERATIONS- The recommendations under subparagraph (A) shall take into account the need to provide advance notice of required modifications to refinery and fuel distribution systems in order to ensure an adequate supply of motor vehicle fuel in all States.

      (3) CONSULTATION- In developing the report, the Administrator of the Environmental Protection Agency and the Secretary of Energy shall consult with--

        (A) the Governors of the States;

        (B) automobile manufacturers;

        (C) motor vehicle fuel producers and distributors; and

        (D) the public.

Subtitle B--MTBE Cleanup

SEC. 9201. FUNDING FOR MTBE CONTAMINATION.

    Notwithstanding any other provision of law, there is authorized to be appropriated to the Administrator of the United States Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund not more than $850,000,000 to be used for taking such action limited to site assessment (including exposure assessment), corrective action, inspection of underground storage tank systems, and groundwater monitoring as the Administrator deems necessary to protect human health, welfare, and the environment from underground storage tank releases of fuel containing fuel oxygenates.

TITLE X--AUTOMOBILE EFFICIENCY

SEC. 10001. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND ENFORCEMENT OF FUEL ECONOMY STANDARDS.

    In addition to any other funds authorized by law, there are authorized to be appropriated to the National Highway Traffic Safety Administration to implement and enforce average fuel economy standards $5,000,000 for fiscal years 2004 through 2006.

SEC. 10002. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR AUTOMOBILES.

    (a) IN GENERAL- Not later than 30 days after the date of the enactment of this Act, the Administrator of the National Highway Traffic Safety Administration shall study the feasibility and effects of reducing by model year 2012, 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 Administrator shall submit to 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 XI--PREVENTING THE MISUSE OF NUCLEAR MATERIALS AND TECHNOLOGY

SEC. 11001. PREVENTING THE MISUSE OF NUCLEAR MATERIALS AND TECHNOLOGY.

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

    ‘SEC. 170D. PREVENTING THE MISUSE OF NUCLEAR MATERIALS AND TECHNOLOGY-

    ‘a. In order to successfully promote the development of nuclear energy as a safe and reliable source of electrical energy, it is the policy of the United States to prevent any nuclear materials, technology, components, substances, technical information, or related goods or services from being misused or diverted from peaceful nuclear energy purposes.

    ‘b. In order to further advance the policy set forth in subsection a., notwithstanding any other provision of law, no Federal agency shall issue any license, approval, or authorization for the export or reexport, or the transfer or retransfer, either directly or indirectly, to any country whose government has been identified by the Secretary of State as engaged in state sponsorship of terrorist activities (specifically including any country the government of which, as of September 11, 2001, had been determined by the Secretary of State under section 620A(a) of the Foreign Assistance Act of 1961, section 6(j)(1) of the Export Administration Act of 1979, or section 40(d) of the Arms Export Control Act to have repeatedly provided support for acts of international terrorism) of--

      ‘(1) any special nuclear material or byproduct material;

      ‘(2) any nuclear production or utilization facilities; or

      ‘(3) any components, technologies, substances, technical information, or related goods or services used (or which could be used) in a nuclear production or utilization facility.

    ‘c. Any license, approval, or authorization described in subsection b. made prior to the date of enactment of this section is hereby revoked.’.

    (b) TABLE OF CONTENTS AMENDMENT- The table of contents of such chapter 14 is amended by adding at the end the following item:

      ‘Sec. 170D. Preventing the misuse of nuclear materials and technology.’.

TITLE XII--ADDITIONAL PROVISIONS

SEC. 12001. TRANSMISSION TECHNOLOGIES.

    The Federal Energy Regulatory Commission shall take affirmative steps in the exercise of its authorities under the Federal Power Act to encourage the deployment of transmission technologies that utilize real time monitoring and analytical software to increase and maximize the capacity and efficiency of transmission networks and to reduce line losses.

Union Calendar No. 42

108th CONGRESS

1st Session

H. R. 1644

[Report No. 108-65, Part I]

A BILL

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


April 8, 2003

Reported from the Committee on Energy and Commerce with an amendment

Referred to the Committee on the Judiciary for a period ending not later than April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(k), rule X

Referral to the Committees on Science, Resources, Education and the Workforce, and Transportation and Infrastructure extended for a period ending not later than April 9, 2003

April 9, 2003

Referred to the Committee on Government Reform for a period ending not later than April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(h), rule X

The Committees on Science, Resources, Education and the Workforce, Transportation and Infrastructure, the Judiciary, and Government Reform discharged; referred to the Committee of the Whole House on the State of the Union and ordered to be printed