15 November 2003
Source: http://energy.senate.gov/legislation/energybill2003/energybill2003.cfm

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U.S. Senate Committee on Energy and Natural Resources

Proposed Chairmen's Mark to the Energy Policy Act of 2003, November 15, 2003:

Table of Contents

Title I - Efficiency

Title II - Renewables

Title III - Oil and Gas

Title IV - Coal

Title V - Indian Energy

Title VI - Nuclear Matters

Title VII - Vehicles and Fuels

Title VIII - Hydrogen

Title IX - Research and Development

Title X - Department of Energy Management

Title XI - Personnel

Title XII - Electricity

Title XIII - Tax

Title XIV - Miscellaneous

Title XV - Ethanol

Title XVI - Studies

Table of Contents

TITLE I—ENERGY EFFICIENCY
Subtitle A—Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Energy savings performance contracts pilot program for nonbuilding
applications.
Sec. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 110. Increased use of recovered mineral component in federally funded
projects involving procurement of cement or concrete.
Subtitle B—Energy Assistance and State Programs
Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Subtitle C—Energy Efficient Products
Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Energy conservation standards for additional products.
Sec. 134. Energy labeling.
Subtitle D—Public Housing
Sec. 141. Capacity building for energy-efficient, affordable housing.
Sec. 142. Increase of CDBG public services cap for energy conservation and efficiency
activities.
Sec. 143. FHA mortgage insurance incentives for energy efficient housing.
Sec. 144. Public Housing Capital Fund.
Sec. 145. Grants for energy-conserving improvements for assisted housing.
Sec. 146. North American Development Bank.
Sec. 147. Energy-efficient appliances.
Sec. 148. Energy efficiency standards.
Sec. 149. Energy strategy for HUD.
TITLE II—RENEWABLE ENERGY
Subtitle A—General Provisions
Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Insular areas energy security.
Sec. 205. Use of photovoltaic energy in public buildings.
Sec. 206. Grants to improve the commercial value of forest biomass for electric
energy, useful heat, transportation fuels, petroleum-based product
substitutes, and other commercial purposes.
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Sec. 207. Biobased products.
Subtitle B—Geothermal Energy
Sec. 211. Short title.
Sec. 212. Competitive lease sale requirements.
Sec. 213. Direct use.
Sec. 214. Royalties and near-term production incentives.
Sec. 215. Geothermal leasing and permitting on Federal lands.
Sec. 216. Review and report to Congress.
Sec. 217. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 218. Assessment of geothermal energy potential.
Sec. 219. Cooperative or unit plans.
Sec. 220. Royalty on byproducts.
Sec. 221. Repeal of authorities of Secretary to readjust terms, conditions, rentals,
and royalties.
Sec. 222. Crediting of rental toward royalty.
Sec. 223. Lease duration and work commitment requirements.
Sec. 224. Advanced royalties required for suspension of production.
Sec. 225. Annual rental.
Sec. 226. Leasing and permitting on Federal lands withdrawn for military purposes.
Sec. 227. Technical amendments.
Subtitle C—Hydroelectric
PART I—ALTERNATIVE CONDITIONS
Sec. 231. Alternative conditions and fishways.
PART II—ADDITIONAL HYDROPOWER
Sec. 241. Hydroelectric production incentives.
Sec. 242. Hydroelectric efficiency improvement.
Sec. 243. Small hydroelectric power projects.
Sec. 244. Increased hydroelectric generation at existing Federal facilities.
Sec. 245. Shift of project loads to off-peak periods.
Sec. 246. Corps of Engineers hydropower operation and maintenance funding.
Sec. 247. Limitation on certain charges assessed to the Flint Creek Project,
Montana.
Sec. 248. Reinstatement and transfer.
TITLE III—OIL AND GAS
Subtitle A—Petroleum Reserve and Home Heating Oil
Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve and
other energy programs.
Sec. 302. National Oilheat Research Alliance.
Subtitle B—Production Incentives
Sec. 311. Definition of Secretary.
Sec. 312. Program on oil and gas royalties in-kind.
Sec. 313. Marginal property production incentives.
Sec. 314. Incentives for natural gas production from deep wells in the shallow
waters of the Gulf of Mexico.
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Sec. 315. Royalty relief for deep water production.
Sec. 316. Alaska offshore royalty suspension.
Sec. 317. Oil and gas leasing in the National Petroleum Reserve in Alaska.
Sec. 318. Orphaned, abandoned, or idled wells on Federal land.
Sec. 319. Combined hydrocarbon leasing.
Sec. 320. Liquified natural gas.
Sec. 321. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 322. Preservation of geological and geophysical data.
Sec. 323. Oil and gas lease acreage limitations.
Sec. 324. Assessment of dependence of State of Hawaii on oil.
Sec. 325. Deadline for decision on appeals of consistency determination under
the Coastal Zone Management Act of 1972.
Sec. 326. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 327. Hydraulic fracturing.
Sec. 328. Oil and gas exploration and production defined.
Sec. 329. Outer Continental Shelf provisions.
Sec. 330. Appeals relating to pipeline construction or offshore mineral development
projects.
Sec. 331. Bilateral international oil supply agreements.
Sec. 332. Natural gas market reform.
Sec. 333. Natural gas market transparency.
Subtitle C—Access to Federal Land
Sec. 341. Office of Federal Energy Project Coordination.
Sec. 342. Federal onshore oil and gas leasing and permitting practices.
Sec. 343. Management of Federal oil and gas leasing programs.
Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 345. Estimates of oil and gas resources underlying onshore Federal land.
Sec. 346. Compliance with Executive Order 13211; actions concerning regulations
that significantly affect energy supply, distribution, or
use.
Sec. 347. Pilot project to improve Federal permit coordination.
Sec. 348. Deadline for consideration of applications for permits.
Sec. 349. Clarification of fair market rental value determinations for public
land and Forest Service rights-of-way.
Sec. 350. Energy facility rights-of-way and corridors on Federal land.
Sec. 351. Consultation regarding energy rights-of-way on public land.
Sec. 352. Renewable energy on Federal land.
Sec. 353. Electricity transmission line right-of-way, Cleveland National Forest
and adjacent public land, California.
Sec. 354. Sense of Congress regarding development of minerals under Padre Island
National Seashore.
Sec. 355. Encouraging prohibition of off-shore drilling in the Great Lakes.
Sec. 356. Finger Lakes National Forest withdrawal.
Sec. 357. Study on lease exchanges in the Rocky Mountain Front.
Sec. 358. Federal coalbed methane regulation.
Sec. 359. Livingston Parish mineral rights transfer.
Subtitle D—Alaska Natural Gas Pipeline
Sec. 371. Short title.
Sec. 372. Definitions.
Sec. 373. Issuance of certificate of public convenience and necessity.
Sec. 374. Environmental reviews.
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Sec. 375. Pipeline expansion.
Sec. 376. Federal Coordinator.
Sec. 377. Judicial review.
Sec. 378. State jurisdiction over in-State delivery of natural gas.
Sec. 379. Study of alternative means of construction.
Sec. 380. Clarification of ANGTA status and authorities.
Sec. 381. Sense of Congress concerning use of steel manufactured in North
America negotiation of a project labor agreement.
Sec. 382. Sense of Congress and study concerning participation by small business
concerns.
Sec. 383. Alaska pipeline construction training program.
Sec. 384. Sense of Congress concerning natural gas demand.
Sec. 385. Sense of Congress concerning Alaskan ownership.
Sec. 386. Loan guarantees.
TITLE IV—COAL
Subtitle A—Clean Coal Power Initiative
Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal Centers of Excellence.
Subtitle B—Clean Power Projects
Sec. 411. Coal technology loan.
Sec. 412. Coal gasification.
Sec. 413. Integrated gasification combined cycle technology.
Sec. 414. Petroleum coke gasification.
Subtitle C—Federal Coal Leases
Sec. 421. Repeal of the 160–acre limitation for coal leases.
Sec. 422. Mining plans.
Sec. 423. Payment of advance royalties under coal leases.
Sec. 424. Elimination of deadline for submission of coal lease operation and
reclamation plan.
Sec. 425. Amendment relating to financial assurances with respect to bonus
bids.
Sec. 426. Inventory requirement.
Sec. 427. Application of amendments.
Subtitle D—Coal and Related Programs
Sec. 441. Clean air coal program.
TITLE V—INDIAN ENERGY
Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Four Corners transmission line project.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.
TITLE VI—NUCLEAR MATTERS
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Subtitle A—Price-Anderson Act Amendments
Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Prohibition on assumption by United States Government of liability
for certain foreign incidents.
Sec. 611. Civil penalties.
Subtitle B—General Nuclear Matters
Sec. 621. Licenses.
Sec. 622. NRC training program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Report on feasibility of developing commercial nuclear energy generation
facilities at existing Department of Energy sites.
Sec. 630. Uranium sales.
Sec. 631. Cooperative research and development and special demonstration
projects for the uranium mining industry.
Sec. 632. Whistleblower protection.
Sec. 633. Medical isotope production.
Sec. 634. Fernald byproduct material.
Sec. 635. Safe disposal of greater-than-class C radioactive waste.
Sec. 636. Prohibition on nuclear exports to countries that sponsor terrorism.
Sec. 637. Uranium enrichment facilities.
Sec. 638. National uranium stockpile.
Subtitle C—Advanced Reactor Hydrogen Cogeneration Project
Sec. 651. Project establishment.
Sec. 652. Project definition.
Sec. 653. Project management.
Sec. 654. Project requirements.
Sec. 655. Authorization of appropriations.
Subtitle D—Nuclear Security
Sec. 661. Nuclear facility threats.
Sec. 662. Fingerprinting for criminal history record checks.
Sec. 663. Use of firearms by security personnel of licensees and certificate holders
of the Commission.
Sec. 664. Unauthorized introduction of dangerous weapons.
Sec. 665. Sabotage of nuclear facilities or fuel.
Sec. 666. Secure transfer of nuclear materials.
Sec. 667. Department of Homeland Security consultation.
Sec. 668. Authorization of appropriations.
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TITLE VII—VEHICLES AND FUELS
Subtitle A—Existing Programs
Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Neighborhood electric vehicles.
Sec. 703. Credits for medium and heavy duty dedicated vehicles.
Sec. 704. Incremental cost allocation.
Sec. 705. Alternative compliance and flexibility.
Sec. 706. Review of Energy Policy Act of 1992 programs.
Sec. 707. Report concerning compliance with alternative fueled vehicle purchasing
requirements.
Subtitle B—Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
PART 1—HYBRID VEHICLES
Sec. 711. Hybrid vehicles.
PART 2—ADVANCED VEHICLES
Sec. 721. Definitions.
Sec. 722. Pilot program.
Sec. 723. Reports to Congress.
Sec. 724. Authorization of appropriations.
PART 3—FUEL CELL BUSES
Sec. 731. Fuel cell transit bus demonstration.
Subtitle C—Clean School Buses
Sec. 741. Definitions.
Sec. 742. Program for replacement of certain school buses with clean school
buses.
Sec. 743. Diesel retrofit program.
Sec. 744. Fuel cell school buses.
Subtitle D—Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by bicycling program.
Sec. 756. Reduction of engine idling of heavy-duty vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 758. High occupancy vehicle exception.
Subtitle E—Automobile Efficiency
Sec. 771. Authorization of appropriations for implementation and enforcement
of fuel economy standards.
Sec. 772. Revised considerations for decisions on maximum feasible average
fuel economy.
Sec. 773. Extension of maximum fuel economy increase for alternative fueled
vehicles.
Sec. 774. Study of feasibility and effects of reducing use of fuel for automobiles.
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TITLE VIII—HYDROGEN
Sec. 801. Definitions.
Sec. 802. Plan.
Sec. 803. Programs.
Sec. 804. Interagency task force.
Sec. 805. Advisory Committee.
Sec. 806. External review.
Sec. 807. Miscellaneous provisions.
Sec. 808. Savings clause.
Sec. 809. Authorization of appropriations.
TITLE IX—RESEARCH AND DEVELOPMENT
Sec. 901. Goals.
Sec. 902. Definitions.
Subtitle A—Energy Efficiency
Sec. 904. Energy efficiency.
Sec. 905. Next Generation Lighting Initiative.
Sec. 906. National Building Performance Initiative.
Sec. 907. Secondary electric vehicle battery use program.
Sec. 908. Energy Efficiency Science Initiative.
Sec. 909. Electric motor control technology.
Sec. 910. Advanced Energy Technology Transfer Centers.
Subtitle B—Distributed Energy and Electric Energy Systems
Sec. 911. Distributed energy and electric energy systems.
Sec. 912. Hybrid distributed power systems.
Sec. 913. High power density industry program.
Sec. 914. Micro-cogeneration energy technology.
Sec. 915. Distributed energy technology demonstration program.
Sec. 916. Reciprocating power.
Subtitle C—Renewable Energy
Sec. 918. Renewable energy.
Sec. 919. Bioenergy programs.
Sec. 920. Concentrating solar power research and development program.
Sec. 921. Miscellaneous projects.
Sec. 922. Renewable energy in public buildings.
Sec. 923. Study of marine renewable energy options.
Subtitle D—Nuclear Energy
Sec. 924. Nuclear energy.
Sec. 925. Nuclear energy research and development programs.
Sec. 926. Advanced fuel cycle initiative.
Sec. 927. University nuclear science and engineering support.
Sec. 928. Security of reactor designs.
Sec. 929. Alternatives to industrial radioactive sources.
Sec. 930. Geological isolation of spent fuel.
Subtitle E—Fossil Energy
PART I—RESEARCH PROGRAMS
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Sec. 931. Fossil energy.
Sec. 932. Oil and gas research programs.
Sec. 933. Technology transfer.
Sec. 934. Research and development for coal mining technologies.
Sec. 935. Coal and related technologies program.
Sec. 936. Complex well technology testing facility.
Sec. 937. Fischer-Tropsch diesel fuel loan guarantee program.
PART II—ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND
OTHER PETROLEUM RESOURCES
Sec. 941. Program authority.
Sec. 942. Ultra-deepwater program.
Sec. 943. Unconventional natural gas and other petroleum resources program.
Sec. 944. Additional requirements for awards.
Sec. 945. Advisory Committees.
Sec. 946. Limits on participation.
Sec. 947. Sunset.
Sec. 948. Definitions.
Sec. 949. Funding.
Subtitle F—Science
Sec. 951. Science.
Sec. 952. United States participation in ITER.
Sec. 953. Plan for fusion energy sciences program.
Sec. 954. Spallation Neutron Source.
Sec. 955. Support for science and energy facilities and infrastructure.
Sec. 956. Catalysis research and development program.
Sec. 957. Nanoscale science and engineering research, development, demonstration,
and commercial application.
Sec. 958. Advanced scientific computing for energy missions.
Sec. 959. Genomes to Life program.
Sec. 960. Fission and fusion energy materials research program.
Sec. 961. Energy-Water Supply Program.
Sec. 962. Nitrogen fixation.
Subtitle G—Energy and Environment
Sec. 964. United States-Mexico energy technology cooperation.
Sec. 965. Western Hemisphere energy cooperation.
Sec. 966. Waste reduction and use of alternatives.
Sec. 967. Report on fuel cell test center.
Sec. 968. Arctic Engineering Research Center.
Sec. 969. Barrow Geophysical Research Facility.
Sec. 970. Western Michigan demonstration project.
Subtitle H—Management
Sec. 971. Availability of funds.
Sec. 972. Cost sharing.
Sec. 973. Merit review of proposals.
Sec. 974. External technical review of departmental programs.
Sec. 975. Improved coordination of technology transfer activities.
Sec. 976. Federal laboratory educational partners.
Sec. 977. Interagency cooperation.
Sec. 978. Technology infrastructure program.
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Sec. 979. Reprogramming.
Sec. 980. Construction with other laws.
Sec. 981. Report on research and development program evaluation methodologies.
Sec. 982. Department of Energy Science and Technology Scholarship Program.
Sec. 983. Report on equal employment opportunity practices.
Sec. 984. Small business advocacy and assistance.
Sec. 985. Report on mobility of scientific and technical personnel.
Sec. 986. National Academy of Sciences report.
Sec. 987. Outreach.
Sec. 988. Competitive award of management contracts.
Sec. 989. Educational programs in science and mathematics.
TITLE X—DEPARTMENT OF ENERGY MANAGEMENT
Sec. 1001. Additional Assistant Secretary position.
Sec. 1002. Other transactions authority.
TITLE XI—PERSONNEL AND TRAINING
Sec. 1101. Training guidelines for electric energy industry personnel.
Sec. 1102. Improved access to energy-related scientific and technical careers.
Sec. 1103. National Power Plant Operations Technology and Education Center.
Sec. 1104. International energy training.
TITLE XII—ELECTRICITY
Sec. 1201. Short title.
Subtitle A—Reliability Standards
Sec. 1211. Electric reliability standards.
Subtitle B—Transmission Infrastructure Modernization
Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Transmission system monitoring.
Sec. 1224. Advanced transmission technologies.
Sec. 1225. Electric transmission and distribution programs.
Sec. 1226. Advanced Power System Technology Incentive Program.
Sec. 1227. Office of Electric Transmission and Distribution.
Subtitle C—Transmission Operation Improvements
Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Sense of the Congress on Regional Transmission Organizations.
Sec. 1233. Regional Transmission Organization applications progress report.
Sec. 1234. Federal utility participation in Regional Transmission Organizations.
Sec. 1235. Standard market design.
Sec. 1236. Native load service obligation.
Sec. 1237. Study on the benefits of economic dispatch.
Subtitle D—Transmission Rate Reform
Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Voluntary transmission pricing plans
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Subtitle E—Amendments to PURPA
Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale requirements.
Subtitle F—Repeal of PUHCA
Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.
Subtitle G—Market Transparency, Enforcement, and Consumer Protection
Sec. 1281. Market transparency rules.
Sec. 1282. Market manipulation.
Sec. 1283. Enforcement.
Sec. 1284. Refund effective date.
Sec. 1285. Refund authority.
Sec. 1286. Sanctity of contract.
Sec. 1287. Consumer privacy and unfair trade practices.
Subtitle H—Merger Reform
Sec. 1291. Merger review reform and accountability.
Sec. 1292. Electric utility mergers.
Subtitle I—Definitions
Sec. 1295. Definitions.
Subtitle J—Technical and Conforming Amendments
Sec. 1297. Conforming amendments.
TITLE XIII—TO BE SUPPLIED
TITLE XIV—MISCELLANEOUS
Subtitle A—Rural and Remote Electricity Construction
Sec. 1401. Denali Commission programs.
Sec. 1402. Rural and remote community assistance.
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Subtitle B—Coastal Programs
Sec. 1411. Royalty payments under leases under the Outer Continental Shelf
Lands Act.
Sec. 1412. Domestic offshore energy reinvestment.
Subtitle C—Reforms to the Board of Directors of the Tennessee Valley
Authority
Sec. 1431. Change in composition, operation, and duties of the board of directors
of the Tennessee Valley Authority.
Sec. 1432. Change in manner of appointment of staff.
Sec. 1433. Conforming amendments.
Sec. 1434. Appointments; effective date; transition.
Subtitle D—Other Provisions
Sec. 1441. Continuation of transmission security order.
Sec. 1442. Review of agency determinations.
Sec. 1443. Attainment dates for downwind ozone nonattainment areas.
Sec. 1444. Energy production incentives
Sec. 1445. Use of granular mine tailings.
TITLE XV—ETHANOL AND MOTOR FUELS
Subtitle A—General Provisions
Sec. 1501. Renewable content of motor vehicle fuel.
Sec. 1502. Fuels safe harbor.
Sec. 1503. Findings and MTBE transition assistance.
Sec. 1504. Use of MTBE.
Sec. 1505. National Academy of Sciences review and presidential determination.
Sec. 1506. Elimination of oxygen content requirement for reformulated gasoline.
Sec. 1507. Analyses of motor vehicle fuel changes.
Sec. 1508. Data collection.
Sec. 1509. Reducing the proliferation of State fuel controls.
Sec. 1510. Fuel system requirements harmonization study.
Sec. 1511. Commercial byproducts from municipal solid waste and cellulosic
biomass loan guarantee program.
Sec. 1512. Resource center.
Sec. 1513. Cellulosic biomass and waste-derived ethanol conversion assistance.
Sec. 1514. Blending of compliant reformulated gasolines.
Subtitle B—Underground Storage Tank Compliance
Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Future release containment technology.
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Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.
TITLE XVI—STUDIES
Sec. 1601. Study on inventory of petroleum and natural gas storage.
Sec. 1602. Natural gas supply shortage report.
Sec. 1603. Split-estate Federal oil and gas leasing and development practices.
Sec. 1604. Resolution of Federal resource development conflicts in the Powder
River Basin.
Sec. 1605. Study of energy efficiency standards.
Sec. 1606. Telecommuting study.
Sec. 1607. LIHEAP report.
Sec. 1608. Oil bypass filtration technology.
Sec. 1609. Total integrated thermal systems.
Sec. 1610. University collaboration.
Sec. 1611. Reliability and consumer protection assessment.
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Title I - Efficiency

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE I—ENERGY EFFICIENCY 1
Subtitle A—Federal Programs 2
SEC. 101. ENERGY AND WATER SAVING MEASURES IN CON- 3
GRESSIONAL BUILDINGS. 4
(a) IN GENERAL.—Part 3 of title V of the National 5
Energy Conservation Policy Act (42 U.S.C. 8251 et seq.) 6
is amended by adding at the end the following: 7
‘‘SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN 8
CONGRESSIONAL BUILDINGS. 9
‘‘(a) IN GENERAL.—The Architect of the Capitol— 10
‘‘(1) shall develop, update, and implement a 11
cost-effective energy conservation and management 12
plan (referred to in this section as the ‘plan’) for all 13
facilities administered by Congress (referred to in 14
this section as ‘congressional buildings’) to meet the 15
energy performance requirements for Federal build- 16
ings established under section 543(a)(1); and 17
‘‘(2) shall submit the plan to Congress, not 18
later than 180 days after the date of enactment of 19
this section. 20
‘‘(b) PLAN REQUIREMENTS.—The plan shall 21
include— 22
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‘‘(1) a description of the life cycle cost analysis 1
used to determine the cost-effectiveness of proposed 2
energy efficiency projects; 3
‘‘(2) a schedule of energy surveys to ensure 4
complete surveys of all congressional buildings every 5
5 years to determine the cost and payback period of 6
energy and water conservation measures; 7
‘‘(3) a strategy for installation of life cycle cost- 8
effective energy and water conservation measures; 9
‘‘(4) the results of a study of the costs and ben- 10
efits of installation of submetering in congressional 11
buildings; and 12
‘‘(5) information packages and ‘how-to’ guides 13
for each Member and employing authority of Con- 14
gress that detail simple, cost-effective methods to 15
save energy and taxpayer dollars in the workplace. 16
‘‘(c) ANNUAL REPORT.—The Architect of the Capitol 17
shall submit to Congress annually a report on congres- 18
sional energy management and conservation programs re- 19
quired under this section that describes in detail— 20
‘‘(1) energy expenditures and savings estimates 21
for each facility; 22
‘‘(2) energy management and conservation 23
projects; and 24
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‘‘(3) future priorities to ensure compliance with 1
this section.’’. 2
(b) TABLE OF CONTENTS AMENDMENT.—The table 3
of contents of the National Energy Conservation Policy 4
Act is amended by adding at the end of the items relating 5
to part 3 of title V the following new item: 6
‘‘Sec. 552. Energy and water savings measures in congressional buildings.’’.
(c) REPEAL.—Section 310 of the Legislative Branch 7
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed. 8
(d) ENERGY INFRASTRUCTURE.—The Architect of 9
the Capitol, building on the Master Plan Study completed 10
in July 2000, shall commission a study to evaluate the 11
energy infrastructure of the Capital Complex to determine 12
how the infrastructure could be augmented to become 13
more energy efficient, using unconventional and renewable 14
energy resources, in a way that would enable the Complex 15
to have reliable utility service in the event of power fluc- 16
tuations, shortages, or outages. 17
(e) AUTHORIZATION OF APPROPRIATIONS.—There 18
are authorized to be appropriated to the Architect of the 19
Capitol to carry out subsection (d), $2,000,000 for each 20
of fiscal years 2004 through 2008. 21
SEC. 102. ENERGY MANAGEMENT REQUIREMENTS. 22
(a) ENERGY REDUCTION GOALS.— 23
(1) AMENDMENT.—Section 543(a)(1) of the 24
National Energy Conservation Policy Act (42 U.S.C. 25
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4
8253(a)(1)) is amended by striking ‘‘its Federal 1
buildings so that’’ and all that follows through the 2
end and inserting ‘‘the Federal buildings of the 3
agency (including each industrial or laboratory facil- 4
ity) so that the energy consumption per gross square 5
foot of the Federal buildings of the agency in fiscal 6
years 2004 through 2013 is reduced, as compared 7
with the energy consumption per gross square foot 8
of the Federal buildings of the agency in fiscal year 9
2001, by the percentage specified in the following 10
table: 11
‘‘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 reduc- 12
tion goals and baseline established in paragraph (1) 13
of section 543(a) of the National Energy Conserva- 14
tion Policy Act (42 U.S.C. 8253(a)(1)), as amended 15
by this subsection, supersede all previous goals and 16
baselines under such paragraph, and related report- 17
ing requirements. 18
(b) REVIEW AND REVISION OF ENERGY PERFORM- 19
ANCE REQUIREMENT.—Section 543(a) of the National 20
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5
Energy Conservation Policy Act (42 U.S.C. 8253(a)) is 1
further amended by adding at the end the following: 2
‘‘(3) Not later than December 31, 2012, the Sec- 3
retary shall review the results of the implementation of 4
the energy performance requirement established under 5
paragraph (1) and submit to Congress recommendations 6
concerning energy performance requirements for fiscal 7
years 2014 through 2023.’’. 8
(c) EXCLUSIONS.—Section 543(c)(1) of the National 9
Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) 10
is amended by striking ‘‘An agency may exclude’’ and all 11
that follows through the end and inserting ‘‘(A) An agency 12
may exclude, from the energy performance requirement 13
for a fiscal year established under subsection (a) and the 14
energy management requirement established under sub- 15
section (b), any Federal building or collection of Federal 16
buildings, if the head of the agency finds that— 17
‘‘(i) compliance with those requirements would 18
be impracticable; 19
‘‘(ii) the agency has completed and submitted 20
all federally required energy management reports; 21
‘‘(iii) the agency has achieved compliance with 22
the energy efficiency requirements of this Act, the 23
Energy Policy Act of 1992, Executive orders, and 24
other Federal law; and 25
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6
‘‘(iv) the agency has implemented all prac- 1
ticable, life cycle cost-effective projects with respect 2
to the Federal building or collection of Federal 3
buildings to be excluded. 4
‘‘(B) A finding of impracticability under subpara- 5
graph (A)(i) shall be based on— 6
‘‘(i) the energy intensiveness of activities car- 7
ried out in the Federal building or collection of Fed- 8
eral buildings; or 9
‘‘(ii) the fact that the Federal building or col- 10
lection of Federal buildings is used in the perform- 11
ance of a national security function.’’. 12
(d) REVIEW BY SECRETARY.—Section 543(c)(2) of 13
the National Energy Conservation Policy Act (42 U.S.C. 14
8253(c)(2)) is amended— 15
(1) by striking ‘‘impracticability standards’’ and 16
inserting ‘‘standards for exclusion’’; 17
(2) by striking ‘‘a finding of impracticability’’ 18
and inserting ‘‘the exclusion’’; and 19
(3) by striking ‘‘energy consumption require- 20
ments’’ and inserting ‘‘requirements of subsections 21
(a) and (b)(1)’’. 22
(e) CRITERIA.—Section 543(c) of the National En- 23
ergy Conservation Policy Act (42 U.S.C. 8253(c)) is fur- 24
ther amended by adding at the end the following: 25
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‘‘(3) Not later than 180 days after the date of enact- 1
ment of this paragraph, the Secretary shall issue guide- 2
lines that establish criteria for exclusions under paragraph 3
(1).’’. 4
(f) RETENTION OF ENERGY AND WATER SAVINGS.— 5
Section 546 of the National Energy Conservation Policy 6
Act (42 U.S.C. 8256) is amended by adding at the end 7
the following new subsection: 8
‘‘(e) RETENTION OF ENERGY AND WATER SAV- 9
INGS.—An agency may retain any funds appropriated to 10
that agency for energy expenditures, water expenditures, 11
or wastewater treatment expenditures, at buildings subject 12
to the requirements of section 543(a) and (b), that are 13
not made because of energy savings or water savings. Ex- 14
cept as otherwise provided by law, such funds may be used 15
only for energy efficiency, water conservation, or uncon- 16
ventional and renewable energy resources projects.’’. 17
(g) REPORTS.—Section 548(b) of the National En- 18
ergy Conservation Policy Act (42 U.S.C. 8258(b)) is 19
amended— 20
(1) in the subsection heading, by inserting 21
‘‘THE PRESIDENT AND’’ before ‘‘CONGRESS’’; and 22
(2) by inserting ‘‘President and’’ before ‘‘Con- 23
gress’’. 24
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8
(h) CONFORMING AMENDMENT.—Section 550(d) of 1
the National Energy Conservation Policy Act (42 U.S.C. 2
8258b(d)) is amended in the second sentence by striking 3
‘‘the 20 percent reduction goal established under section 4
543(a) of the National Energy Conservation Policy Act 5
(42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy 6
reduction goals established under section 543(a).’’. 7
SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNT- 8
ABILITY. 9
Section 543 of the National Energy Conservation 10
Policy Act (42 U.S.C. 8253) is further amended by adding 11
at the end the following: 12
‘‘(e) METERING OF ENERGY USE.— 13
‘‘(1) DEADLINE.—By October 1, 2010, in ac- 14
cordance with guidelines established by the Sec- 15
retary under paragraph (2), all Federal buildings 16
shall, for the purposes of efficient use of energy and 17
reduction in the cost of electricity used in such 18
buildings, be metered or submetered. Each agency 19
shall use, to the maximum extent practicable, ad- 20
vanced meters or advanced metering devices that 21
provide data at least daily and that measure at least 22
hourly consumption of electricity in the Federal 23
buildings of the agency. Such data shall be incor- 24
porated into existing Federal energy tracking sys- 25
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9
tems and made available to Federal facility energy 1
managers. 2
‘‘(2) GUIDELINES.— 3
‘‘(A) IN GENERAL.—Not later than 180 4
days after the date of enactment of this sub- 5
section, the Secretary, in consultation with the 6
Department of Defense, the General Services 7
Administration, representatives from the meter- 8
ing industry, utility industry, energy services in- 9
dustry, energy efficiency industry, energy effi- 10
ciency advocacy organizations, national labora- 11
tories, universities, and Federal facility energy 12
managers, shall establish guidelines for agencies 13
to carry out paragraph (1). 14
‘‘(B) REQUIREMENTS FOR GUIDELINES.— 15
The guidelines shall— 16
‘‘(i) take into consideration— 17
‘‘(I) the cost of metering and 18
submetering and the reduced cost of 19
operation and maintenance expected 20
to result from metering and sub- 21
metering; 22
‘‘(II) the extent to which meter- 23
ing and submetering are expected to 24
result in increased potential for en- 25
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10
ergy management, increased potential 1
for energy savings and energy effi- 2
ciency improvement, and cost and en- 3
ergy savings due to utility contract 4
aggregation; and 5
‘‘(III) the measurement and ver- 6
ification protocols of the Department 7
of Energy; 8
‘‘(ii) include recommendations con- 9
cerning the amount of funds and the num- 10
ber of trained personnel necessary to gath- 11
er and use the metering information to 12
track and reduce energy use; 13
‘‘(iii) establish priorities for types and 14
locations of buildings to be metered and 15
submetered based on cost-effectiveness and 16
a schedule of 1 or more dates, not later 17
than 1 year after the date of issuance of 18
the guidelines, on which the requirements 19
specified in paragraph (1) shall take effect; 20
and 21
‘‘(iv) establish exclusions from the re- 22
quirements specified in paragraph (1) 23
based on the de minimis quantity of energy 24
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11
use of a Federal building, industrial proc- 1
ess, or structure. 2
‘‘(3) PLAN.—Not later than 6 months after the 3
date guidelines are established under paragraph (2), 4
in a report submitted by the agency under section 5
548(a), each agency shall submit to the Secretary a 6
plan describing how the agency will implement the 7
requirements of paragraph (1), including (A) how 8
the agency will designate personnel primarily respon- 9
sible for achieving the requirements and (B) dem- 10
onstration by the agency, complete with documenta- 11
tion, of any finding that advanced meters or ad- 12
vanced metering devices, as defined in paragraph 13
(1), are not practicable.’’. 14
SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PROD- 15
UCTS. 16
(a) REQUIREMENTS.—Part 3 of title V of the Na- 17
tional Energy Conservation Policy Act (42 U.S.C. 8251 18
et seq.), as amended by section 101, is amended by adding 19
at the end the following: 20
‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFI- 21
CIENT PRODUCTS. 22
‘‘(a) DEFINITIONS.—In this section: 23
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12
‘‘(1) ENERGY STAR PRODUCT.—The term ‘En- 1
ergy Star product’ means a product that is rated for 2
energy efficiency under an Energy Star program. 3
‘‘(2) ENERGY STAR PROGRAM.—The term ‘En- 4
ergy Star program’ means the program established 5
by section 324A of the Energy Policy and Conserva- 6
tion Act. 7
‘‘(3) EXECUTIVE AGENCY.—The term ‘executive 8
agency’ has the meaning given the term in section 9
4 of the Office of Federal Procurement Policy Act 10
(41 U.S.C. 403). 11
‘‘(4) FEMP DESIGNATED PRODUCT.—The term 12
‘FEMP designated product’ means a product that is 13
designated under the Federal Energy Management 14
Program of the Department of Energy as being 15
among the highest 25 percent of equivalent products 16
for energy efficiency. 17
‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD- 18
UCTS.— 19
‘‘(1) REQUIREMENT.—To meet the require- 20
ments of an executive agency for an energy con- 21
suming product, the head of the executive agency 22
shall, except as provided in paragraph (2), procure— 23
‘‘(A) an Energy Star product; or 24
‘‘(B) a FEMP designated product. 25
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‘‘(2) EXCEPTIONS.—The head of an executive 1
agency is not required to procure an Energy Star 2
product or FEMP designated product under para- 3
graph (1) if the head of the executive agency finds 4
in writing that— 5
‘‘(A) an Energy Star product or FEMP 6
designated product is not cost-effective over the 7
life of the product taking energy cost savings 8
into account; or 9
‘‘(B) no Energy Star product or FEMP 10
designated product is reasonably available that 11
meets the functional requirements of the execu- 12
tive agency. 13
‘‘(3) PROCUREMENT PLANNING.—The head of 14
an executive agency shall incorporate into the speci- 15
fications for all procurements involving energy con- 16
suming products and systems, including guide speci- 17
fications, project specifications, and construction, 18
renovation, and services contracts that include provi- 19
sion of energy consuming products and systems, and 20
into the factors for the evaluation of offers received 21
for the procurement, criteria for energy efficiency 22
that are consistent with the criteria used for rating 23
Energy Star products and for rating FEMP des- 24
ignated products. 25
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14
‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN 1
FEDERAL CATALOGS.—Energy Star products and FEMP 2
designated products shall be clearly identified and promi- 3
nently displayed in any inventory or listing of products 4
by the General Services Administration or the Defense Lo- 5
gistics Agency. The General Services Administration or 6
the Defense Logistics Agency shall supply only Energy 7
Star products or FEMP designated products for all prod- 8
uct categories covered by the Energy Star program or the 9
Federal Energy Management Program, except in cases 10
where the agency ordering a product specifies in writing 11
that no Energy Star product or FEMP designated product 12
is available to meet the buyer’s functional requirements, 13
or that no Energy Star product or FEMP designated 14
product is cost-effective for the intended application over 15
the life of the product, taking energy cost savings into ac- 16
count. 17
‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of elec- 18
tric motors of 1 to 500 horsepower, agencies shall select 19
only premium efficient motors that meet a standard des- 20
ignated by the Secretary. The Secretary shall designate 21
such a standard not later than 120 days after the date 22
of the enactment of this section, after considering the rec- 23
ommendations of associated electric motor manufacturers 24
and energy efficiency groups. 25
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15
‘‘(2) All Federal agencies are encouraged to take ac- 1
tions to maximize the efficiency of air conditioning and 2
refrigeration equipment, including appropriate cleaning 3
and maintenance, including the use of any system treat- 4
ment or additive that will reduce the electricity consumed 5
by air conditioning and refrigeration equipment. Any such 6
treatment or additive must be— 7
‘‘(A) determined by the Secretary to be effective 8
in increasing the efficiency of air conditioning and 9
refrigeration equipment without having an adverse 10
impact on air conditioning performance (including 11
cooling capacity) or equipment useful life; 12
‘‘(B) determined by the Administrator of the 13
Environmental Protection Agency to be environ- 14
mentally safe; and 15
‘‘(C) shown to increase seasonal energy effi- 16
ciency ratio (SEER) or energy efficiency ratio 17
(EER) when tested by the National Institute of 18
Standards and Technology according to Department 19
of Energy test procedures without causing any ad- 20
verse impact on the system, system components, the 21
refrigerant or lubricant, or other materials in the 22
system. 23
Results of testing described in subparagraph (C) shall be 24
published in the Federal Register for public review and 25
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16
comment. For purposes of this section, a hardware device 1
or primary refrigerant shall not be considered an additive. 2
‘‘(e) REGULATIONS.—Not later than 180 days after 3
the date of the enactment of this section, the Secretary 4
shall issue guidelines to carry out this section.’’. 5
(b) CONFORMING AMENDMENT.—The table of con- 6
tents of the National Energy Conservation Policy Act is 7
further amended by inserting after the item relating to 8
section 552 the following new item: 9
‘‘Sec. 553. Federal procurement of energy efficient products.’’.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS. 10
(a) PERMANENT EXTENSION.—Effective September 11
30, 2003, section 801(c) of the National Energy Conserva- 12
tion Policy Act (42 U.S.C. 8287(c)) is repealed. 13
(b) PAYMENT OF COSTS.—Section 802 of the Na- 14
tional Energy Conservation Policy Act (42 U.S.C. 8287a) 15
is amended by inserting ‘‘, water, or wastewater treat- 16
ment’’ after ‘‘payment of energy’’. 17
(c) ENERGY SAVINGS.—Section 804(2) of the Na- 18
tional Energy Conservation Policy Act (42 U.S.C. 19
8287c(2)) is amended to read as follows: 20
‘‘(2) The term ‘energy savings’ means a reduc- 21
tion in the cost of energy, water, or wastewater 22
treatment, from a base cost established through a 23
methodology set forth in the contract, used in an ex- 24
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17
isting federally owned building or buildings or other 1
federally owned facilities as a result of— 2
‘‘(A) the lease or purchase of operating 3
equipment, improvements, altered operation and 4
maintenance, or technical services; 5
‘‘(B) the increased efficient use of existing 6
energy sources by cogeneration or heat recov- 7
ery, excluding any cogeneration process for 8
other than a federally owned building or build- 9
ings or other federally owned facilities; or 10
‘‘(C) the increased efficient use of existing 11
water sources in either interior or exterior ap- 12
plications.’’. 13
(d) ENERGY SAVINGS CONTRACT.—Section 804(3) of 14
the National Energy Conservation Policy Act (42 U.S.C. 15
8287c(3)) is amended to read as follows: 16
‘‘(3) The terms ‘energy savings contract’ and 17
‘energy savings performance contract’ mean a con- 18
tract that provides for the performance of services 19
for the design, acquisition, installation, testing, and, 20
where appropriate, operation, maintenance, and re- 21
pair, of an identified energy or water conservation 22
measure or series of measures at 1 or more loca- 23
tions. Such contracts shall, with respect to an agen- 24
cy facility that is a public building (as such term is 25
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November 14, 2003 (5:04 PM)
18
defined in section 3301 of title 40, United States 1
Code), be in compliance with the prospectus require- 2
ments and procedures of section 3307 of title 40, 3
United States Code.’’. 4
(e) ENERGY OR WATER CONSERVATION MEASURE.— 5
Section 804(4) of the National Energy Conservation Pol- 6
icy Act (42 U.S.C. 8287c(4)) is amended to read as fol- 7
lows: 8
‘‘(4) The term ‘energy or water conservation 9
measure’ means— 10
‘‘(A) an energy conservation measure, as 11
defined in section 551; or 12
‘‘(B) a water conservation measure that 13
improves the efficiency of water use, is life-cycle 14
cost-effective, and involves water conservation, 15
water recycling or reuse, more efficient treat- 16
ment of wastewater or stormwater, improve- 17
ments in operation or maintenance efficiencies, 18
retrofit activities, or other related activities, not 19
at a Federal hydroelectric facility.’’. 20
(f) REVIEW.—Not later than 180 days after the date 21
of the enactment of this Act, the Secretary of Energy shall 22
complete a review of the Energy Savings Performance 23
Contract program to identify statutory, regulatory, and 24
administrative obstacles that prevent Federal agencies 25
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19
from fully utilizing the program. In addition, this review 1
shall identify all areas for increasing program flexibility 2
and effectiveness, including audit and measurement ver- 3
ification requirements, accounting for energy use in deter- 4
mining savings, contracting requirements, including the 5
identification of additional qualified contractors, and en- 6
ergy efficiency services covered. The Secretary shall report 7
these findings to Congress and shall implement identified 8
administrative and regulatory changes to increase pro- 9
gram flexibility and effectiveness to the extent that such 10
changes are consistent with statutory authority. 11
SEC. 106. ENERGY SAVINGS PERFORMANCE CONTRACTS 12
PILOT PROGRAM FOR NONBUILDING APPLI- 13
CATIONS. 14
(a) IN GENERAL.—The Secretary of Defense and the 15
heads of other interested Federal agencies are authorized 16
to enter into up to 10 energy savings performance con- 17
tracts using procedures, established under subsection (b), 18
based on the procedures under title VIII of the National 19
Energy Conservation Policy Act (42 U.S.C. 8287 et seq.), 20
for the purpose of achieving energy or water savings, sec- 21
ondary savings, and benefits incidental to those purposes, 22
in nonbuilding applications. The payments to be made by 23
the Federal Government under such contracts shall not 24
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20
exceed a total of $200,000,000 for all such contracts com- 1
bined. 2
(b) PROCEDURES.—The Secretary of Energy, in con- 3
sultation with the Administrator of General Services and 4
the Secretary of Defense, shall establish procedures based 5
on the procedures under title VIII of the National Energy 6
Conservation Policy Act (42 U.S.C. 8287 et seq.), for im- 7
plementing this section. 8
(c) DEFINITIONS.—In this section: 9
(1) NONBUILDING APPLICATION.—The term 10
‘‘nonbuilding application’’ means— 11
(A) any class of vehicles, devices, or equip- 12
ment that are transportable under their own 13
power by land, sea, or air that consume energy 14
from any fuel source for the purpose of such 15
transportability, or to maintain a controlled en- 16
vironment within such vehicle, device, or equip- 17
ment; or 18
(B) any Federally owned equipment used 19
to generate electricity or transport water. 20
(2) SECONDARY SAVINGS.—The term ‘‘sec- 21
ondary savings’’ means additional energy or cost 22
savings that are a direct consequence of the energy 23
or water savings that result from the financing and 24
implementation of the energy savings performance 25
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21
contract, including, but not limited to, energy or cost 1
savings that result from a reduction in the need for 2
fuel delivery and logistical support, or the increased 3
efficiency in the production of electricity. 4
(d) REPORT.—Not later than 3 years after the date 5
of enactment of this section, the Secretary of Energy shall 6
report to Congress on the progress and results of the 7
projects funded pursuant to this section. Such report shall 8
include a description of projects undertaken; the energy, 9
water, and cost savings, secondary savings, and other ben- 10
efits that resulted from such projects; and recommenda- 11
tions on whether the pilot program should be extended, 12
expanded, or authorized permanently as a part of the pro- 13
gram authorized under title VIII of the National Energy 14
Conservation Policy Act (42 U.S.C. 8287 et seq.). 15
SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUS- 16
TRIAL ENERGY INTENSITY. 17
(a) VOLUNTARY AGREEMENTS.—The Secretary of 18
Energy is authorized to enter into voluntary agreements 19
with 1 or more persons in industrial sectors that consume 20
significant amounts of primary energy per unit of physical 21
output to reduce the energy intensity of their production 22
activities by a significant amount relative to improvements 23
in each sector in recent years. 24
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22
(b) RECOGNITION.—The Secretary of Energy, in co- 1
operation with the Administrator of the Environmental 2
Protection Agency and other appropriate Federal agen- 3
cies, shall recognize and publicize the achievements of par- 4
ticipants in voluntary agreements under this section. 5
(c) DEFINITION.—In this section, the term ‘‘energy 6
intensity’’ means the primary energy consumed per unit 7
of physical output in an industrial process. 8
SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED. 9
(a) ESTABLISHMENT.—The Secretary of Energy, in 10
consultation with the Administrator of General Services, 11
shall establish an Advanced Building Efficiency Testbed 12
program for the development, testing, and demonstration 13
of advanced engineering systems, components, and mate- 14
rials to enable innovations in building technologies. The 15
program shall evaluate efficiency concepts for government 16
and industry buildings, and demonstrate the ability of 17
next generation buildings to support individual and orga- 18
nizational productivity and health (including by improving 19
indoor air quality) as well as flexibility and technological 20
change to improve environmental sustainability. Such pro- 21
gram shall complement and not duplicate existing national 22
programs. 23
(b) PARTICIPANTS.—The program established under 24
subsection (a) shall be led by a university with the ability 25
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23
to combine the expertise from numerous academic fields 1
including, at a minimum, intelligent workplaces and ad- 2
vanced building systems and engineering, electrical and 3
computer engineering, computer science, architecture, 4
urban design, and environmental and mechanical engi- 5
neering. Such university shall partner with other univer- 6
sities and entities who have established programs and the 7
capability of advancing innovative building efficiency tech- 8
nologies. 9
(c) AUTHORIZATION OF APPROPRIATIONS.—There 10
are authorized to be appropriated to the Secretary of En- 11
ergy to carry out this section $6,000,000 for each of the 12
fiscal years 2004 through 2006, to remain available until 13
expended. For any fiscal year in which funds are expended 14
under this section, the Secretary shall provide 1/3 of the 15
total amount to the lead university described in subsection 16
(b), and provide the remaining 2/3 to the other participants 17
referred to in subsection (b) on an equal basis. 18
SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS. 19
Section 305(a) of the Energy Conservation and Pro- 20
duction Act (42 U.S.C. 6834(a)) is amended— 21
(1) in paragraph (2)(A), by striking ‘‘CABO 22
Model Energy Code, 1992’’ and inserting ‘‘the 2003 23
International Energy Conservation Code’’; and 24
(2) by adding at the end the following: 25
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24
‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI- 1
CIENCY PERFORMANCE STANDARDS.— 2
‘‘(A) IN GENERAL.—Not later than 1 year after 3
the date of enactment of this paragraph, the Sec- 4
retary of Energy shall establish, by rule, revised 5
Federal building energy efficiency performance 6
standards that require that— 7
‘‘(i) if life-cycle cost-effective, for new Fed- 8
eral buildings— 9
‘‘(I) such buildings be designed so as 10
to achieve energy consumption levels at 11
least 30 percent below those of the version 12
current as of the date of enactment of this 13
paragraph of the ASHRAE Standard or 14
the International Energy Conservation 15
Code, as appropriate; and 16
‘‘(II) sustainable design principles are 17
applied to the siting, design, and construc- 18
tion of all new and replacement buildings; 19
and 20
‘‘(ii) where water is used to achieve energy 21
efficiency, water conservation technologies shall 22
be applied to the extent they are life-cycle cost 23
effective. 24
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November 14, 2003 (5:04 PM)
25
‘‘(B) ADDITIONAL REVISIONS.—Not later than 1
1 year after the date of approval of each subsequent 2
revision of the ASHRAE Standard or the Inter- 3
national Energy Conservation Code, as appropriate, 4
the Secretary of Energy shall determine, based on 5
the cost-effectiveness of the requirements under the 6
amendments, whether the revised standards estab- 7
lished under this paragraph should be updated to re- 8
flect the amendments. 9
‘‘(C) STATEMENT ON COMPLIANCE OF NEW 10
BUILDINGS.—In the budget request of the Federal 11
agency for each fiscal year and each report sub- 12
mitted by the Federal agency under section 548(a) 13
of the National Energy Conservation Policy Act (42 14
U.S.C. 8258(a)), the head of each Federal agency 15
shall include— 16
‘‘(i) a list of all new Federal buildings 17
owned, operated, or controlled by the Federal 18
agency; and 19
‘‘(ii) a statement concerning whether the 20
Federal buildings meet or exceed the revised 21
standards established under this paragraph.’’. 22
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SEC. 110. INCREASED USE OF RECOVERED MINERAL COM- 1
PONENT IN FEDERALLY FUNDED PROJECTS 2
INVOLVING PROCUREMENT OF CEMENT OR 3
CONCRETE. 4
(a) AMENDMENT.—Subtitle F of the Solid Waste 5
Disposal Act (42 U.S.C. 6961 et seq.) is amended by add- 6
ing at the end the following new section: 7
‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT 8
IN FEDERALLY FUNDED PROJECTS INVOLVING PRO- 9
CUREMENT OF CEMENT OR CONCRETE 10
‘‘SEC. 6005. (a) DEFINITIONS.—In this section: 11
‘‘(1) AGENCY HEAD.—The term ‘agency head’ 12
means— 13
‘‘(A) the Secretary of Transportation; and 14
‘‘(B) the head of each other Federal agen- 15
cy that on a regular basis procures, or provides 16
Federal funds to pay or assist in paying the 17
cost of procuring, material for cement or con- 18
crete projects. 19
‘‘(2) CEMENT OR CONCRETE PROJECT.—The 20
term ‘cement or concrete project’ means a project 21
for the construction or maintenance of a highway or 22
other transportation facility or a Federal, State, or 23
local government building or other public facility 24
that— 25
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27
‘‘(A) involves the procurement of cement 1
or concrete; and 2
‘‘(B) is carried out in whole or in part 3
using Federal funds. 4
‘‘(3) RECOVERED MINERAL COMPONENT.—The 5
term ‘recovered mineral component’ means— 6
‘‘(A) ground granulated blast furnace slag; 7
‘‘(B) coal combustion fly ash; and 8
‘‘(C) any other waste material or byprod- 9
uct recovered or diverted from solid waste that 10
the Administrator, in consultation with an 11
agency head, determines should be treated as 12
recovered mineral component under this section 13
for use in cement or concrete projects paid for, 14
in whole or in part, by the agency head. 15
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.— 16
‘‘(1) IN GENERAL.—Not later than 1 year after 17
the date of enactment of this section, the Adminis- 18
trator and each agency head shall take such actions 19
as are necessary to implement fully all procurement 20
requirements and incentives in effect as of the date 21
of enactment of this section (including guidelines 22
under section 6002) that provide for the use of ce- 23
ment and concrete incorporating recovered mineral 24
component in cement or concrete projects. 25
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‘‘(2) PRIORITY.—In carrying out paragraph (1) 1
an agency head shall give priority to achieving great- 2
er use of recovered mineral component in cement or 3
concrete projects for which recovered mineral compo- 4
nents historically have not been used or have been 5
used only minimally. 6
‘‘(3) CONFORMANCE.—The Administrator and 7
each agency head shall carry out this subsection in 8
accordance with section 6002. 9
‘‘(c) FULL IMPLEMENTATION STUDY.— 10
‘‘(1) IN GENERAL.—The Administrator, in co- 11
operation with the Secretary of Transportation and 12
the Secretary of Energy, shall conduct a study to de- 13
termine the extent to which current procurement re- 14
quirements, when fully implemented in accordance 15
with subsection (b), may realize energy savings and 16
environmental benefits attainable with substitution 17
of recovered mineral component in cement used in 18
cement or concrete projects. 19
‘‘(2) MATTERS TO BE ADDRESSED.—The study 20
shall— 21
‘‘(A) quantify the extent to which recov- 22
ered mineral components are being substituted 23
for Portland cement, particularly as a result of 24
current procurement requirements, and the en- 25
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29
ergy savings and environmental benefits associ- 1
ated with that substitution; 2
‘‘(B) identify all barriers in procurement 3
requirements to greater realization of energy 4
savings and environmental benefits, including 5
barriers resulting from exceptions from current 6
law; and 7
‘‘(C)(i) identify potential mechanisms to 8
achieve greater substitution of recovered min- 9
eral component in types of cement or concrete 10
projects for which recovered mineral compo- 11
nents historically have not been used or have 12
been used only minimally; 13
‘‘(ii) evaluate the feasibility of establishing 14
guidelines or standards for optimized substi- 15
tution rates of recovered mineral component in 16
those cement or concrete projects; and 17
‘‘(iii) identify any potential environmental 18
or economic effects that may result from great- 19
er substitution of recovered mineral component 20
in those cement or concrete projects. 21
‘‘(3) REPORT.—Not later than 30 months after 22
the date of enactment of this section, the Adminis- 23
trator shall submit to Congress a report on the 24
study. 25
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30
‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.— 1
Unless the study conducted under subsection (c) identifies 2
any effects or other problems described in subsection 3
(c)(2)(C)(iii) that warrant further review or delay, the Ad- 4
ministrator and each agency head shall, not later than 1 5
year after the release of the report in accordance with sub- 6
section (c)(3), take additional actions authorized under 7
this Act to establish procurement requirements and incen- 8
tives that provide for the use of cement and concrete with 9
increased substitution of recovered mineral component in 10
the construction and maintenance of cement or concrete 11
projects, so as to— 12
‘‘(1) realize more fully the energy savings and 13
environmental benefits associated with increased 14
substitution; and 15
‘‘(2) eliminate barriers identified under sub- 16
section (c). 17
‘‘(e) EFFECT OF SECTION.—Nothing in this section 18
affects the requirements of section 6002 (including the 19
guidelines and specifications for implementing those re- 20
quirements).’’. 21
(b) TABLE OF CONTENTS AMENDMENT.—The table 22
of contents of the Solid Waste Disposal Act is amended 23
by adding after the item relating to section 6004 the fol- 24
lowing new item: 25
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‘‘Sec. 6005. Increased use of recovered mineral component in federally funded
projects involving procurement of cement or concrete.’’.
Subtitle B—Energy Assistance and 1
State Programs 2
SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PRO- 3
GRAM. 4
Section 2602(b) of the Low-Income Home Energy 5
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended 6
by striking ‘‘and $2,000,000,000 for each of fiscal years 7
2002 through 2004’’ and inserting ‘‘$2,000,000,000 for 8
fiscal years 2002 and 2003, and $3,400,000,000 for each 9
of fiscal years 2004 through 2006’’. 10
SEC. 122. WEATHERIZATION ASSISTANCE. 11
Section 422 of the Energy Conservation and Produc- 12
tion Act (42 U.S.C. 6872) is amended by striking ‘‘for 13
fiscal years 1999 through 2003 such sums as may be nec- 14
essary’’ and inserting ‘‘$325,000,000 for fiscal year 2004, 15
$400,000,000 for fiscal year 2005, and $500,000,000 for 16
fiscal year 2006’’. 17
SEC. 123. STATE ENERGY PROGRAMS. 18
(a) STATE ENERGY CONSERVATION PLANS.—Section 19
362 of the Energy Policy and Conservation Act (42 U.S.C. 20
6322) is amended by inserting at the end the following 21
new subsection: 22
‘‘(g) The Secretary shall, at least once every 3 years, 23
invite the Governor of each State to review and, if nec- 24
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32
essary, revise the energy conservation plan of such State 1
submitted under subsection (b) or (e). Such reviews should 2
consider the energy conservation plans of other States 3
within the region, and identify opportunities and actions 4
carried out in pursuit of common energy conservation 5
goals.’’. 6
(b) STATE ENERGY EFFICIENCY GOALS.—Section 7
364 of the Energy Policy and Conservation Act (42 U.S.C. 8
6324) is amended to read as follows: 9
‘‘STATE ENERGY EFFICIENCY GOALS 10
‘‘SEC. 364. Each State energy conservation plan with 11
respect to which assistance is made available under this 12
part on or after the date of enactment of the Energy Pol- 13
icy Act of 2003 shall contain a goal, consisting of an im- 14
provement of 25 percent or more in the efficiency of use 15
of energy in the State concerned in calendar year 2010 16
as compared to calendar year 1990, and may contain in- 17
terim goals.’’. 18
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 19
365(f) of the Energy Policy and Conservation Act (42 20
U.S.C. 6325(f)) is amended by striking ‘‘for fiscal years 21
1999 through 2003 such sums as may be necessary’’ and 22
inserting ‘‘$100,000,000 for each of the fiscal years 2004 23
and 2005 and $125,000,000 for fiscal year 2006’’. 24
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SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PRO- 1
GRAMS. 2
(a) DEFINITIONS.—In this section: 3
(1) ELIGIBLE STATE.—The term ‘‘eligible 4
State’’ means a State that meets the requirements 5
of subsection (b). 6
(2) ENERGY STAR PROGRAM.—The term ‘‘En- 7
ergy Star program’’ means the program established 8
by section 324A of the Energy Policy and Conserva- 9
tion Act. 10
(3) RESIDENTIAL ENERGY STAR PRODUCT.— 11
The term ‘‘residential Energy Star product’’ means 12
a product for a residence that is rated for energy ef- 13
ficiency under the Energy Star program. 14
(4) SECRETARY.—The term ‘‘Secretary’’ means 15
the Secretary of Energy. 16
(5) STATE ENERGY OFFICE.—The term ‘‘State 17
energy office’’ means the State agency responsible 18
for developing State energy conservation plans under 19
section 362 of the Energy Policy and Conservation 20
Act (42 U.S.C. 6322). 21
(6) STATE PROGRAM.—The term ‘‘State pro- 22
gram’’ means a State energy efficient appliance re- 23
bate program described in subsection (b)(1). 24
(b) ELIGIBLE STATES.—A State shall be eligible to 25
receive an allocation under subsection (c) if the State— 26
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34
(1) establishes (or has established) a State en- 1
ergy efficient appliance rebate program to provide 2
rebates to residential consumers for the purchase of 3
residential Energy Star products to replace used ap- 4
pliances of the same type; 5
(2) submits an application for the allocation at 6
such time, in such form, and containing such infor- 7
mation as the Secretary may require; and 8
(3) provides assurances satisfactory to the Sec- 9
retary that the State will use the allocation to sup- 10
plement, but not supplant, funds made available to 11
carry out the State program. 12
(c) AMOUNT OF ALLOCATIONS.— 13
(1) IN GENERAL.—Subject to paragraph (2), 14
for each fiscal year, the Secretary shall allocate to 15
the State energy office of each eligible State to carry 16
out subsection (d) an amount equal to the product 17
obtained by multiplying the amount made available 18
under subsection (f) for the fiscal year by the ratio 19
that the population of the State in the most recent 20
calendar year for which data are available bears to 21
the total population of all eligible States in that cal- 22
endar year. 23
(2) MINIMUM ALLOCATIONS.—For each fiscal 24
year, the amounts allocated under this subsection 25
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35
shall be adjusted proportionately so that no eligible 1
State is allocated a sum that is less than an amount 2
determined by the Secretary. 3
(d) USE OF ALLOCATED FUNDS.—The allocation to 4
a State energy office under subsection (c) may be used 5
to pay up to 50 percent of the cost of establishing and 6
carrying out a State program. 7
(e) ISSUANCE OF REBATES.—Rebates may be pro- 8
vided to residential consumers that meet the requirements 9
of the State program. The amount of a rebate shall be 10
determined by the State energy office, taking into 11
consideration— 12
(1) the amount of the allocation to the State 13
energy office under subsection (c); 14
(2) the amount of any Federal or State tax in- 15
centive available for the purchase of the residential 16
Energy Star product; and 17
(3) the difference between the cost of the resi- 18
dential Energy Star product and the cost of an ap- 19
pliance that is not a residential Energy Star prod- 20
uct, but is of the same type as, and is the nearest 21
capacity, performance, and other relevant character- 22
istics (as determined by the State energy office) to, 23
the residential Energy Star product. 24
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(f) AUTHORIZATION OF APPROPRIATIONS.—There 1
are authorized to be appropriated to the Secretary to carry 2
out this section $50,000,000 for each of the fiscal years 3
2004 through 2008. 4
SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS. 5
(a) GRANTS.—The Secretary of Energy may make 6
grants to the State agency responsible for developing State 7
energy conservation plans under section 362 of the Energy 8
Policy and Conservation Act (42 U.S.C. 6322), or, if no 9
such agency exists, a State agency designated by the Gov- 10
ernor of the State, to assist units of local government in 11
the State in improving the energy efficiency of public 12
buildings and facilities— 13
(1) through construction of new energy efficient 14
public buildings that use at least 30 percent less en- 15
ergy than a comparable public building constructed 16
in compliance with standards prescribed in the most 17
recent version of the International Energy Conserva- 18
tion Code, or a similar State code intended to 19
achieve substantially equivalent efficiency levels; or 20
(2) through renovation of existing public build- 21
ings to achieve reductions in energy use of at least 22
30 percent as compared to the baseline energy use 23
in such buildings prior to renovation, assuming a 3- 24
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37
year, weather-normalized average for calculating 1
such baseline. 2
(b) ADMINISTRATION.—State energy offices receiving 3
grants under this section shall— 4
(1) maintain such records and evidence of com- 5
pliance as the Secretary may require; and 6
(2) develop and distribute information and ma- 7
terials and conduct programs to provide technical 8
services and assistance to encourage planning, fi- 9
nancing, and design of energy efficient public build- 10
ings by units of local government. 11
(c) AUTHORIZATION OF APPROPRIATIONS.—For the 12
purposes of this section, there are authorized to be appro- 13
priated to the Secretary of Energy $30,000,000 for each 14
of fiscal years 2004 through 2008. Not more than 10 per- 15
cent of appropriated funds shall be used for administra- 16
tion. 17
SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY 18
PILOT PROGRAM. 19
(a) GRANTS.—The Secretary of Energy is authorized 20
to make grants to units of local government, private, non- 21
profit community development organizations, and Indian 22
tribe economic development entities to improve energy effi- 23
ciency; identify and develop alternative, renewable, and 24
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38
distributed energy supplies; and increase energy conserva- 1
tion in low income rural and urban communities. 2
(b) PURPOSE OF GRANTS.—The Secretary may make 3
grants on a competitive basis for— 4
(1) investments that develop alternative, renew- 5
able, and distributed energy supplies; 6
(2) energy efficiency projects and energy con- 7
servation programs; 8
(3) studies and other activities that improve en- 9
ergy efficiency in low income rural and urban com- 10
munities; 11
(4) planning and development assistance for in- 12
creasing the energy efficiency of buildings and facili- 13
ties; and 14
(5) technical and financial assistance to local 15
government and private entities on developing new 16
renewable and distributed sources of power or com- 17
bined heat and power generation. 18
(c) DEFINITION.—For purposes of this section, the 19
term ‘‘Indian tribe’’ means any Indian tribe, band, nation, 20
or other organized group or community, including any 21
Alaskan Native village or regional or village corporation 22
as defined in or established pursuant to the Alaska Native 23
Claims Settlement Act (43 U.S.C. 1601 et seq.), that is 24
recognized as eligible for the special programs and services 25
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39
provided by the United States to Indians because of their 1
status as Indians. 2
(d) AUTHORIZATION OF APPROPRIATIONS.—For the 3
purposes of this section there are authorized to be appro- 4
priated to the Secretary of Energy $20,000,000 for each 5
of fiscal years 2004 through 2006. 6
Subtitle C—Energy Efficient 7
Products 8
SEC. 131. ENERGY STAR PROGRAM. 9
(a) AMENDMENT.—The Energy Policy and Conserva- 10
tion Act (42 U.S.C. 6201 et seq.) is amended by inserting 11
the following after section 324: 12
‘‘SEC. 324A. ENERGY STAR PROGRAM. 13
‘‘There is established at the Department of Energy 14
and the Environmental Protection Agency a voluntary 15
program to identify and promote energy-efficient products 16
and buildings in order to reduce energy consumption, im- 17
prove energy security, and reduce pollution through vol- 18
untary labeling of or other forms of communication about 19
products and buildings that meet the highest energy effi- 20
ciency standards. Responsibilities under the program shall 21
be divided between the Department of Energy and the En- 22
vironmental Protection Agency consistent with the terms 23
of agreements between the 2 agencies. The Administrator 24
and the Secretary shall— 25
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40
‘‘(1) promote Energy Star compliant tech- 1
nologies as the preferred technologies in the market- 2
place for achieving energy efficiency and to reduce 3
pollution; 4
‘‘(2) work to enhance public awareness of the 5
Energy Star label, including special outreach to 6
small businesses; 7
‘‘(3) preserve the integrity of the Energy Star 8
label; 9
‘‘(4) solicit comments from interested parties 10
prior to establishing or revising an Energy Star 11
product category, specification, or criterion (or effec- 12
tive dates for any of the foregoing); 13
‘‘(5) upon adoption of a new or revised product 14
category, specification, or criterion, provide reason- 15
able notice to interested parties of any changes (in- 16
cluding effective dates) in product categories, speci- 17
fications, or criteria along with an explanation of 18
such changes and, where appropriate, responses to 19
comments submitted by interested parties; and 20
‘‘(6) provide appropriate lead time (which shall 21
be 9 months, unless the Agency or Department de- 22
termines otherwise) prior to the effective date for a 23
new or a significant revision to a product category, 24
specification, or criterion, taking into account the 25
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41
timing requirements of the manufacturing, product 1
marketing, and distribution process for the specific 2
product addressed.’’. 3
(b) TABLE OF CONTENTS AMENDMENT.—The table 4
of contents of the Energy Policy and Conservation Act is 5
amended by inserting after the item relating to section 6
324 the following new item: 7
‘‘Sec. 324A. Energy Star program.’’.
SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION 8
PROGRAM. 9
Section 337 of the Energy Policy and Conservation 10
Act (42 U.S.C. 6307) is amended by adding at the end 11
the following: 12
‘‘(c) HVAC MAINTENANCE.—For the purpose of en- 13
suring that installed air conditioning and heating systems 14
operate at their maximum rated efficiency levels, the Sec- 15
retary shall, not later than 180 days after the date of en- 16
actment of this subsection, carry out a program to educate 17
homeowners and small business owners concerning the en- 18
ergy savings resulting from properly conducted mainte- 19
nance of air conditioning, heating, and ventilating sys- 20
tems. The Secretary shall carry out the program in a cost- 21
shared manner in cooperation with the Administrator of 22
the Environmental Protection Agency and such other enti- 23
ties as the Secretary considers appropriate, including in- 24
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42
dustry trade associations, industry members, and energy 1
efficiency organizations. 2
‘‘(d) SMALL BUSINESS EDUCATION AND ASSIST- 3
ANCE.—The Administrator of the Small Business Admin- 4
istration, in consultation with the Secretary of Energy and 5
the Administrator of the Environmental Protection Agen- 6
cy, shall develop and coordinate a Government-wide pro- 7
gram, building on the existing Energy Star for Small 8
Business Program, to assist small businesses to become 9
more energy efficient, understand the cost savings obtain- 10
able through efficiencies, and identify financing options 11
for energy efficiency upgrades. The Secretary and the Ad- 12
ministrator of the Small Business Administration shall 13
make the program information available directly to small 14
businesses and through other Federal agencies, including 15
the Federal Emergency Management Program and the 16
Department of Agriculture.’’. 17
SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDI- 18
TIONAL PRODUCTS. 19
(a) DEFINITIONS.—Section 321 of the Energy Policy 20
and Conservation Act (42 U.S.C. 6291) is amended— 21
(1) in paragraph (30)(S), by striking the period 22
and adding at the end the following: ‘‘but does not 23
include any lamp specifically designed to be used for 24
special purpose applications and that is unlikely to 25
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43
be used in general purpose applications such as 1
those described in subparagraph (D), and also does 2
not include any lamp not described in subparagraph 3
(D) that is excluded by the Secretary, by rule, be- 4
cause the lamp is designed for special applications 5
and is unlikely to be used in general purpose appli- 6
cations.’’; and 7
(2) by adding at the end the following: 8
‘‘(32) The term ‘battery charger’ means a de- 9
vice that charges batteries for consumer products 10
and includes battery chargers embedded in other 11
consumer products. 12
‘‘(33) The term ‘commercial refrigerators, 13
freezers, and refrigerator-freezers’ means refrig- 14
erators, freezers, or refrigerator-freezers that— 15
‘‘(A) are not consumer products regulated 16
under this Act; and 17
‘‘(B) incorporate most components involved 18
in the vapor-compression cycle and the refrig- 19
erated compartment in a single package. 20
‘‘(34) The term ‘external power supply’ means 21
an external power supply circuit that is used to con- 22
vert household electric current into either DC cur- 23
rent or lower-voltage AC current to operate a con- 24
sumer product. 25
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‘‘(35) The term ‘illuminated exit sign’ means a 1
sign that— 2
‘‘(A) is designed to be permanently fixed in 3
place to identify an exit; and 4
‘‘(B) consists of an electrically powered in- 5
tegral light source that illuminates the legend 6
‘EXIT’ and any directional indicators and pro- 7
vides contrast between the legend, any direc- 8
tional indicators, and the background. 9
‘‘(36)(A) Except as provided in subparagraph 10
(B), the term ‘distribution transformer’ means a 11
transformer that— 12
‘‘(i) has an input voltage of 34.5 kilovolts 13
or less; 14
‘‘(ii) has an output voltage of 600 volts or 15
less; and 16
‘‘(iii) is rated for operation at a frequency 17
of 60 Hertz. 18
‘‘(B) The term ‘distribution transformer’ does 19
not include— 20
‘‘(i) transformers with multiple voltage 21
taps, with the highest voltage tap equaling at 22
least 20 percent more than the lowest voltage 23
tap; 24
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45
‘‘(ii) transformers, such as those commonly 1
known as drive transformers, rectifier trans- 2
formers, auto-transformers, Uninterruptible 3
Power System transformers, impedance trans- 4
formers, harmonic transformers, regulating 5
transformers, sealed and nonventilating trans- 6
formers, machine tool transformers, welding 7
transformers, grounding transformers, or test- 8
ing transformers, that are designed to be used 9
in a special purpose application and are unlikely 10
to be used in general purpose applications; or 11
‘‘(iii) any transformer not listed in clause 12
(ii) that is excluded by the Secretary by rule 13
because— 14
‘‘(I) the transformer is designed for a 15
special application; 16
‘‘(II) the transformer is unlikely to be 17
used in general purpose applications; and 18
‘‘(III) the application of standards to 19
the transformer would not result in signifi- 20
cant energy savings. 21
‘‘(37) The term ‘low-voltage dry-type distribu- 22
tion transformer’ means a distribution transformer 23
that— 24
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‘‘(A) has an input voltage of 600 volts or 1
less; 2
‘‘(B) is air-cooled; and 3
‘‘(C) does not use oil as a coolant. 4
‘‘(38) The term ‘standby mode’ means the low- 5
est power consumption mode that— 6
‘‘(A) cannot be switched off or influenced 7
by the user; and 8
‘‘(B) may persist for an indefinite time 9
when an appliance is connected to the main 10
electricity supply and used in accordance with 11
the manufacturer’s instructions, 12
as defined on an individual product basis by the Sec- 13
retary. 14
‘‘(39) The term ‘torchiere’ means a portable 15
electric lamp with a reflector bowl that directs light 16
upward so as to give indirect illumination. 17
‘‘(40) The term ‘traffic signal module’ means a 18
standard 8-inch (200mm) or 12-inch (300mm) traf- 19
fic signal indication, consisting of a light source, a 20
lens, and all other parts necessary for operation, 21
that communicates movement messages to drivers 22
through red, amber, and green colors. 23
‘‘(41) The term ‘transformer’ means a device 24
consisting of 2 or more coils of insulated wire that 25
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transfers alternating current by electromagnetic in- 1
duction from 1 coil to another to change the original 2
voltage or current value. 3
‘‘(42) The term ‘unit heater’ means a self-con- 4
tained fan-type heater designed to be installed with- 5
in the heated space, except that such term does not 6
include a warm air furnace.’’. 7
(b) TEST PROCEDURES.—Section 323 of the Energy 8
Policy and Conservation Act (42 U.S.C. 6293) is 9
amended— 10
(1) in subsection (b), by adding at the end the 11
following: 12
‘‘(9) Test procedures for illuminated exit signs 13
shall be based on the test method used under Ver- 14
sion 2.0 of the Energy Star program of the Environ- 15
mental Protection Agency for illuminated exit signs. 16
‘‘(10) Test procedures for distribution trans- 17
formers and low voltage dry-type distribution trans- 18
formers shall be based on the ‘Standard Test Meth- 19
od for Measuring the Energy Consumption of Dis- 20
tribution Transformers’ prescribed by the National 21
Electrical Manufacturers Association (NEMA TP 2– 22
1998). The Secretary may review and revise this test 23
procedure. For purposes of section 346(a), this test 24
procedure shall be deemed to be testing require- 25
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48
ments prescribed by the Secretary under section 1
346(a)(1) for distribution transformers for which the 2
Secretary makes a determination that energy con- 3
servation standards would be technologically feasible 4
and economically justified, and would result in sig- 5
nificant energy savings. 6
‘‘(11) Test procedures for traffic signal modules 7
shall be based on the test method used under the 8
Energy Star program of the Environmental Protec- 9
tion Agency for traffic signal modules, as in effect 10
on the date of enactment of this paragraph. 11
‘‘(12) Test procedures for medium base com- 12
pact fluorescent lamps shall be based on the test 13
methods used under the August 9, 2001, version of 14
the Energy Star program of the Environmental Pro- 15
tection Agency and Department of Energy for com- 16
pact fluorescent lamps. Covered products shall meet 17
all test requirements for regulated parameters in 18
section 325(bb). However, covered products may be 19
marketed prior to completion of lamp life and lumen 20
maintenance at 40 percent of rated life testing pro- 21
vided manufacturers document engineering pre- 22
dictions and analysis that support expected attain- 23
ment of lumen maintenance at 40 percent rated life 24
and lamp life time.’’; and 25
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49
(2) by adding at the end the following: 1
‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL 2
PRODUCTS.—The Secretary shall, not later than 24 3
months after the date of enactment of this subsection, pre- 4
scribe testing requirements for suspended ceiling fans, re- 5
frigerated bottled or canned beverage vending machines, 6
and commercial refrigerators, freezers, and refrigerator- 7
freezers. Such testing requirements shall be based on ex- 8
isting test procedures used in industry to the extent prac- 9
tical and reasonable. In the case of suspended ceiling fans, 10
such test procedures shall include efficiency at both max- 11
imum output and at an output no more than 50 percent 12
of the maximum output.’’. 13
(c) NEW STANDARDS.—Section 325 of the Energy 14
Policy and Conservation Act (42 U.S.C. 6295) is amended 15
by adding at the end the following: 16
‘‘(u) BATTERY CHARGER AND EXTERNAL POWER 17
SUPPLY ELECTRIC ENERGY CONSUMPTION.— 18
‘‘(1) INITIAL RULEMAKING.—(A) The Secretary 19
shall, within 18 months after the date of enactment 20
of this subsection, prescribe by notice and comment, 21
definitions and test procedures for the power use of 22
battery chargers and external power supplies. In es- 23
tablishing these test procedures, the Secretary shall 24
consider, among other factors, existing definitions 25
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50
and test procedures used for measuring energy con- 1
sumption in standby mode and other modes and as- 2
sess the current and projected future market for 3
battery chargers and external power supplies. This 4
assessment shall include estimates of the significance 5
of potential energy savings from technical improve- 6
ments to these products and suggested product 7
classes for standards. Prior to the end of this time 8
period, the Secretary shall hold a scoping workshop 9
to discuss and receive comments on plans for devel- 10
oping energy conservation standards for energy use 11
for these products. 12
‘‘(B) The Secretary shall, within 3 years after 13
the date of enactment of this subsection, issue a 14
final rule that determines whether energy conserva- 15
tion standards shall be issued for battery chargers 16
and external power supplies or classes thereof. For 17
each product class, any such standards shall be set 18
at the lowest level of energy use that— 19
‘‘(i) meets the criteria and procedures of 20
subsections (o), (p), (q), (r), (s), and (t); and 21
‘‘(ii) will result in significant overall an- 22
nual energy savings, considering both standby 23
mode and other operating modes. 24
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51
‘‘(2) REVIEW OF STANDBY ENERGY USE IN 1
COVERED PRODUCTS.—In determining pursuant to 2
section 323 whether test procedures and energy con- 3
servation standards pursuant to this section should 4
be revised, the Secretary shall consider, for covered 5
products that are major sources of standby mode en- 6
ergy consumption, whether to incorporate standby 7
mode into such test procedures and energy conserva- 8
tion standards, taking into account, among other 9
relevant factors, standby mode power consumption 10
compared to overall product energy consumption. 11
‘‘(3) RULEMAKING.—The Secretary shall not 12
propose a standard under this section unless the 13
Secretary has issued applicable test procedures for 14
each product pursuant to section 323. 15
‘‘(4) EFFECTIVE DATE.—Any standard issued 16
under this subsection shall be applicable to products 17
manufactured or imported 3 years after the date of 18
issuance. 19
‘‘(5) VOLUNTARY PROGRAMS.—The Secretary 20
and the Administrator shall collaborate and develop 21
programs, including programs pursuant to section 22
324A (relating to Energy Star Programs) and other 23
voluntary industry agreements or codes of conduct, 24
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52
that are designed to reduce standby mode energy 1
use. 2
‘‘(v) SUSPENDED CEILING FANS, VENDING MA- 3
CHINES, AND COMMERCIAL REFRIGERATORS, FREEZERS, 4
AND REFRIGERATOR-FREEZERS.—The Secretary shall not 5
later than 36 months after the date on which testing re- 6
quirements are prescribed by the Secretary pursuant to 7
section 323(f), prescribe, by rule, energy conservation 8
standards for suspended ceiling fans, refrigerated bottled 9
or canned beverage vending machines, and commercial re- 10
frigerators, freezers, and refrigerator-freezers. In estab- 11
lishing standards under this subsection, the Secretary 12
shall use the criteria and procedures contained in sub- 13
sections (o) and (p). Any standard prescribed under this 14
subsection shall apply to products manufactured 3 years 15
after the date of publication of a final rule establishing 16
such standard. 17
‘‘(w) ILLUMINATED EXIT SIGNS.—Illuminated exit 18
signs manufactured on or after January 1, 2005, shall 19
meet the Version 2.0 Energy Star Program performance 20
requirements for illuminated exit signs prescribed by the 21
Environmental Protection Agency. 22
‘‘(x) TORCHIERES.—Torchieres manufactured on or 23
after January 1, 2005— 24
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53
‘‘(1) shall consume not more than 190 watts of 1
power; and 2
‘‘(2) shall not be capable of operating with 3
lamps that total more than 190 watts. 4
‘‘(y) LOW VOLTAGE DRY-TYPE DISTRIBUTION 5
TRANSFORMERS.—The efficiency of low voltage dry-type 6
distribution transformers manufactured on or after Janu- 7
ary 1, 2005, shall be the Class I Efficiency Levels for dis- 8
tribution transformers specified in Table 4-2 of the ‘Guide 9
for Determining Energy Efficiency for Distribution Trans- 10
formers’ published by the National Electrical Manufactur- 11
ers Association (NEMA TP–1–2002). 12
‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal 13
modules manufactured on or after January 1, 2006, shall 14
meet the performance requirements used under the En- 15
ergy Star program of the Environmental Protection Agen- 16
cy for traffic signals, as in effect on the date of enactment 17
of this subsection, and shall be installed with compatible, 18
electrically connected signal control interface devices and 19
conflict monitoring systems. 20
‘‘(aa) UNIT HEATERS.—Unit heaters manufactured 21
on or after the date that is 3 years after the date of enact- 22
ment of this subsection shall be equipped with an intermit- 23
tent ignition device and shall have either power venting 24
or an automatic flue damper. 25
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‘‘(bb) MEDIUM BASE COMPACT FLUORESCENT 1
LAMPS.—Bare lamp and covered lamp (no reflector) me- 2
dium base compact fluorescent lamps manufactured on or 3
after January 1, 2005, shall meet the following require- 4
ments prescribed by the August 9, 2001, version of the 5
Energy Star Program Requirements for Compact Fluores- 6
cent Lamps, Energy Star Eligibility Criteria, Energy-Effi- 7
ciency Specification issued by the Environmental Protec- 8
tion Agency and Department of Energy: minimum initial 9
efficacy; lumen maintenance at 1000 hours; lumen mainte- 10
nance at 40 percent of rated life; rapid cycle stress test; 11
and lamp life. The Secretary may, by rule, establish re- 12
quirements for color quality (CRI); power factor; oper- 13
ating frequency; and maximum allowable start time based 14
on the requirements prescribed by the August 9, 2001, 15
version of the Energy Star Program Requirements for 16
Compact Fluorescent Lamps. The Secretary may, by rule, 17
revise these requirements or establish other requirements 18
considering energy savings, cost effectiveness, and con- 19
sumer satisfaction. 20
‘‘(cc) EFFECTIVE DATE.—Section 327 shall apply— 21
‘‘(1) to products for which standards are to be 22
established under subsections (u) and (v) on the 23
date on which a final rule is issued by the Depart- 24
ment of Energy, except that any State or local 25
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55
standards prescribed or enacted for any such prod- 1
uct prior to the date on which such final rule is 2
issued shall not be preempted until the standard es- 3
tablished under subsection (u) or (v) for that prod- 4
uct takes effect; and 5
‘‘(2) to products for which standards are estab- 6
lished under subsections (w) through (bb) on the 7
date of enactment of those subsections, except that 8
any State or local standards prescribed or enacted 9
prior to the date of enactment of those subsections 10
shall not be preempted until the standards estab- 11
lished under subsections (w) through (bb) take ef- 12
fect.’’. 13
(d) RESIDENTIAL FURNACE FANS.—Section 14
325(f)(3) of the Energy Policy and Conservation Act (42 15
U.S.C. 6295(f)(3)) is amended by adding the following 16
new subparagraph at the end: 17
‘‘(D) Notwithstanding any provision of this Act, the 18
Secretary may consider, and prescribe, if the requirements 19
of subsection (o) of this section are met, energy efficiency 20
or energy use standards for electricity used for purposes 21
of circulating air through duct work.’’. 22
SEC. 134. ENERGY LABELING. 23
(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER 24
PRODUCT LABELING.—Section 324(a)(2) of the Energy 25
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Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is 1
amended by adding at the end the following: 2
‘‘(F) Not later than 3 months after the date of enact- 3
ment of this subparagraph, the Commission shall initiate 4
a rulemaking to consider the effectiveness of the current 5
consumer products labeling program in assisting con- 6
sumers in making purchasing decisions and improving en- 7
ergy efficiency and to consider changes to the labeling 8
rules that would improve the effectiveness of consumer 9
product labels. Such rulemaking shall be completed not 10
later than 2 years after the date of enactment of this sub- 11
paragraph.’’. 12
(b) RULEMAKING ON LABELING FOR ADDITIONAL 13
PRODUCTS.—Section 324(a) of the Energy Policy and 14
Conservation Act (42 U.S.C. 6294(a)) is further amended 15
by adding at the end the following: 16
‘‘(5) The Secretary or the Commission, as appro- 17
priate, may, for covered products referred to in sub- 18
sections (u) through (aa) of section 325, prescribe, by rule, 19
pursuant to this section, labeling requirements for such 20
products after a test procedure has been set pursuant to 21
section 323. In the case of products to which TP–1 stand- 22
ards under section 325(y) apply, labeling requirements 23
shall be based on the ‘Standard for the Labeling of Dis- 24
tribution Transformer Efficiency’ prescribed by the Na- 25
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57
tional Electrical Manufacturers Association (NEMA TP– 1
3) as in effect upon the date of enactment of this para- 2
graph.’’. 3
Subtitle D—Public Housing 4
SEC. 141. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AF- 5
FORDABLE HOUSING. 6
Section 4(b) of the HUD Demonstration Act of 1993 7
(42 U.S.C. 9816 note) is amended— 8
(1) in paragraph (1), by inserting before the 9
semicolon at the end the following: ‘‘, including ca- 10
pabilities regarding the provision of energy efficient, 11
affordable housing and residential energy conserva- 12
tion measures’’; and 13
(2) in paragraph (2), by inserting before the 14
semicolon the following: ‘‘, including such activities 15
relating to the provision of energy efficient, afford- 16
able housing and residential energy conservation 17
measures that benefit low-income families’’. 18
SEC. 142. INCREASE OF CDBG PUBLIC SERVICES CAP FOR 19
ENERGY CONSERVATION AND EFFICIENCY 20
ACTIVITIES. 21
Section 105(a)(8) of the Housing and Community 22
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is 23
amended— 24
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(1) by inserting ‘‘or efficiency’’ after ‘‘energy 1
conservation’’; 2
(2) by striking ‘‘, and except that’’ and insert- 3
ing ‘‘; except that’’; and 4
(3) by inserting before the semicolon at the end 5
the following: ‘‘; and except that each percentage 6
limitation under this paragraph on the amount of 7
assistance provided under this title that may be used 8
for the provision of public services is hereby in- 9
creased by 10 percent, but such percentage increase 10
may be used only for the provision of public services 11
concerning energy conservation or efficiency’’. 12
SEC. 143. FHA MORTGAGE INSURANCE INCENTIVES FOR 13
ENERGY EFFICIENT HOUSING. 14
(a) SINGLE FAMILY HOUSING MORTGAGE INSUR- 15
ANCE.—Section 203(b)(2) of the National Housing Act 16
(12 U.S.C. 1709(b)(2)) is amended, in the first undesig- 17
nated paragraph beginning after subparagraph (B)(ii)(IV) 18
(relating to solar energy systems), by striking ‘‘20 per- 19
cent’’ and inserting ‘‘30 percent’’. 20
(b) MULTIFAMILY HOUSING MORTGAGE INSUR- 21
ANCE.—Section 207(c) of the National Housing Act (12 22
U.S.C. 1713(c)) is amended, in the last undesignated 23
paragraph beginning after paragraph (3) (relating to solar 24
energy systems and residential energy conservation meas- 25
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59
ures), by striking ‘‘20 percent’’ and inserting ‘‘30 per- 1
cent’’. 2
(c) COOPERATIVE HOUSING MORTGAGE INSUR- 3
ANCE.—Section 213(p) of the National Housing Act (12 4
U.S.C. 1715e(p)) is amended by striking ‘‘20 per centum’’ 5
and inserting ‘‘30 percent’’. 6
(d) REHABILITATION AND NEIGHBORHOOD CON- 7
SERVATION HOUSING MORTGAGE INSURANCE.—Section 8
220(d)(3)(B)(iii)(IV) of the National Housing Act (12 9
U.S.C. 1715k(d)(3)(B)(iii)(IV)) is amended— 10
(1) by striking ‘‘with respect to rehabilitation 11
projects involving not more than five family units,’’; 12
and 13
(2) by striking ‘‘20 per centum’’ and inserting 14
‘‘30 percent’’. 15
(e) LOW-INCOME MULTIFAMILY HOUSING MORT- 16
GAGE INSURANCE.—Section 221(k) of the National Hous- 17
ing Act (12 U.S.C. 1715l(k)) is amended by striking ‘‘20 18
per centum’’ and inserting ‘‘30 percent’’. 19
(f) ELDERLY HOUSING MORTGAGE INSURANCE.— 20
Section 231(c)(2)(C) of the National Housing Act (12 21
U.S.C. 1715v(c)(2)(C)) is amended by striking ‘‘20 per 22
centum’’ and inserting ‘‘30 percent’’. 23
(g) CONDOMINIUM HOUSING MORTGAGE INSUR- 24
ANCE.—Section 234(j) of the National Housing Act (12 25
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60
U.S.C. 1715y(j)) is amended by striking ‘‘20 per centum’’ 1
and inserting ‘‘30 percent’’. 2
SEC. 144. PUBLIC HOUSING CAPITAL FUND. 3
Section 9 of the United States Housing Act of 1937 4
(42 U.S.C. 1437g) is amended— 5
(1) in subsection (d)(1)— 6
(A) in subparagraph (I), by striking ‘‘and’’ 7
at the end; 8
(B) in subparagraph (J), by striking the 9
period at the end and inserting a semicolon; 10
and 11
(C) by adding at the end the following new 12
subparagraphs: 13
‘‘(K) improvement of energy and water-use 14
efficiency by installing fixtures and fittings that 15
conform to the American Society of Mechanical 16
Engineers/American National Standards Insti- 17
tute standards A112.19.2-1998 and A112.18.1- 18
2000, or any revision thereto, applicable at the 19
time of installation, and by increasing energy 20
efficiency and water conservation by such other 21
means as the Secretary determines are appro- 22
priate; and 23
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‘‘(L) integrated utility management and 1
capital planning to maximize energy conserva- 2
tion and efficiency measures.’’; and 3
(2) in subsection (e)(2)(C)— 4
(A) by striking ‘‘The’’ and inserting the 5
following: 6
‘‘(i) IN GENERAL.—The’’; and 7
(B) by adding at the end the following: 8
‘‘(ii) THIRD PARTY CONTRACTS.— 9
Contracts described in clause (i) may in- 10
clude contracts for equipment conversions 11
to less costly utility sources, projects with 12
resident-paid utilities, and adjustments to 13
frozen base year consumption, including 14
systems repaired to meet applicable build- 15
ing and safety codes and adjustments for 16
occupancy rates increased by rehabilita- 17
tion. 18
‘‘(iii) TERM OF CONTRACT.—The total 19
term of a contract described in clause (i) 20
shall not exceed 20 years to allow longer 21
payback periods for retrofits, including 22
windows, heating system replacements, 23
wall insulation, site-based generation, ad- 24
vanced energy savings technologies, includ- 25
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62
ing renewable energy generation, and other 1
such retrofits.’’. 2
SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVE- 3
MENTS FOR ASSISTED HOUSING. 4
Section 251(b)(1) of the National Energy Conserva- 5
tion Policy Act (42 U.S.C. 8231(1)) is amended— 6
(1) by striking ‘‘financed with loans’’ and in- 7
serting ‘‘assisted’’; 8
(2) by inserting after ‘‘1959,’’ the following: 9
‘‘which are eligible multifamily housing projects (as 10
such term is defined in section 512 of the Multi- 11
family Assisted Housing Reform and Affordability 12
Act of 1997 (42 U.S.C. 1437f note)) and are subject 13
to mortgage restructuring and rental assistance suf- 14
ficiency plans under such Act,’’; and 15
(3) by inserting after the period at the end of 16
the first sentence the following new sentence: ‘‘Such 17
improvements may also include the installation of 18
energy and water conserving fixtures and fittings 19
that conform to the American Society of Mechanical 20
Engineers/American National Standards Institute 21
standards A112.19.2-1998 and A112.18.1-2000, or 22
any revision thereto, applicable at the time of instal- 23
lation.’’. 24
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63
SEC. 146. NORTH AMERICAN DEVELOPMENT BANK. 1
Part 2 of subtitle D of title V of the North American 2
Free Trade Agreement Implementation Act (22 U.S.C. 3
290m–290m-3) is amended by adding at the end the fol- 4
lowing: 5
‘‘SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES. 6
‘‘Consistent with the focus of the Bank’s Charter on 7
environmental infrastructure projects, the Board members 8
representing the United States should use their voice and 9
vote to encourage the Bank to finance projects related to 10
clean and efficient energy, including energy conservation, 11
that prevent, control, or reduce environmental pollutants 12
or contaminants.’’. 13
SEC. 147. ENERGY-EFFICIENT APPLIANCES. 14
In purchasing appliances, a public housing agency 15
shall purchase energy-efficient appliances that are Energy 16
Star products or FEMP-designated products, as such 17
terms are defined in section 553 of the National Energy 18
Conservation Policy Act (as amended by this title), unless 19
the purchase of energy-efficient appliances is not cost-ef- 20
fective to the agency. 21
SEC. 148. ENERGY EFFICIENCY STANDARDS. 22
Section 109 of the Cranston-Gonzalez National Af- 23
fordable Housing Act (42 U.S.C. 12709) is amended— 24
(1) in subsection (a)— 25
(A) in paragraph (1)— 26
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64
(i) by striking ‘‘1 year after the date 1
of the enactment of the Energy Policy Act 2
of 1992’’ and inserting ‘‘September 30, 3
2004’’; 4
(ii) in subparagraph (A), by striking 5
‘‘and’’ at the end; 6
(iii) in subparagraph (B), by striking 7
the period at the end and inserting ‘‘; 8
and’’; and 9
(iv) by adding at the end the fol- 10
lowing: 11
‘‘(C) rehabilitation and new construction of 12
public and assisted housing funded by HOPE 13
VI revitalization grants under section 24 of the 14
United States Housing Act of 1937 (42 U.S.C. 15
1437v), where such standards are determined 16
to be cost effective by the Secretary of Housing 17
and Urban Development.’’; and 18
(B) in paragraph (2), by striking ‘‘Council 19
of American’’ and all that follows through 20
‘‘90.1–1989’)’’ and inserting ‘‘2003 Inter- 21
national Energy Conservation Code’’; 22
(2) in subsection (b)— 23
(A) by striking ‘‘within 1 year after the 24
date of the enactment of the Energy Policy Act 25
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65
of 1992’’ and inserting ‘‘by September 30, 1
2004’’; and 2
(B) by striking ‘‘CABO’’ and all that fol- 3
lows through ‘‘1989’’ and inserting ‘‘the 2003 4
International Energy Conservation Code’’; and 5
(3) in subsection (c)— 6
(A) in the heading, by striking ‘‘MODEL 7
ENERGY CODE’’ and inserting ‘‘THE INTER- 8
NATIONAL ENERGY CONSERVATION CODE’’; 9
and 10
(B) by striking ‘‘CABO’’ and all that fol- 11
lows through ‘‘1989’’ and inserting ‘‘the 2003 12
International Energy Conservation Code’’. 13
SEC. 149. ENERGY STRATEGY FOR HUD. 14
The Secretary of Housing and Urban Development 15
shall develop and implement an integrated strategy to re- 16
duce utility expenses through cost-effective energy con- 17
servation and efficiency measures and energy efficient de- 18
sign and construction of public and assisted housing. The 19
energy strategy shall include the development of energy 20
reduction goals and incentives for public housing agencies. 21
The Secretary shall submit a report to Congress, not later 22
than 1 year after the date of the enactment of this Act, 23
on the energy strategy and the actions taken by the De- 24
partment of Housing and Urban Development to monitor 25
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the energy usage of public housing agencies and shall sub- 1
mit an update every 2 years thereafter on progress in im- 2
plementing the strategy. 3
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November 14, 2003 (5:04 PM)

Title II - Renewables

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE II—RENEWABLE ENERGY 1
Subtitle A—General Provisions 2
SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RE- 3
SOURCES. 4
(a) RESOURCE ASSESSMENT.—Not later than 6 5
months after the date of enactment of this Act, and each 6
year thereafter, the Secretary of Energy shall review the 7
available assessments of renewable energy resources with- 8
in the United States, including solar, wind, biomass, ocean 9
(tidal, wave, current, and thermal), geothermal, and hy- 10
droelectric energy resources, and undertake new assess- 11
ments as necessary, taking into account changes in market 12
conditions, available technologies, and other relevant fac- 13
tors. 14
(b) CONTENTS OF REPORTS.—Not later than 1 year 15
after the date of enactment of this Act, and each year 16
thereafter, the Secretary shall publish a report based on 17
the assessment under subsection (a). The report shall 18
contain— 19
(1) a detailed inventory describing the available 20
amount and characteristics of the renewable energy 21
resources; and 22
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2
(2) such other information as the Secretary be- 1
lieves would be useful in developing such renewable 2
energy resources, including descriptions of sur- 3
rounding terrain, population and load centers, near- 4
by energy infrastructure, location of energy and 5
water resources, and available estimates of the costs 6
needed to develop each resource, together with an 7
identification of any barriers to providing adequate 8
transmission for remote sources of renewable energy 9
resources to current and emerging markets, rec- 10
ommendations for removing or addressing such bar- 11
riers, and ways to provide access to the grid that do 12
not unfairly disadvantage renewable or other energy 13
producers. 14
(c) AUTHORIZATION OF APPROPRIATIONS.—For the 15
purposes of this section, there are authorized to be appro- 16
priated to the Secretary of Energy $10,000,000 for each 17
of fiscal years 2004 through 2008. 18
SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. 19
(a) INCENTIVE PAYMENTS.—Section 1212(a) of the 20
Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is 21
amended by striking ‘‘and which satisfies’’ and all that 22
follows through ‘‘Secretary shall establish.’’ and inserting 23
‘‘. If there are insufficient appropriations to make full pay- 24
ments for electric production from all qualified renewable 25
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energy facilities in any given year, the Secretary shall as- 1
sign 60 percent of appropriated funds for that year to fa- 2
cilities that use solar, wind, geothermal, or closed-loop 3
(dedicated energy crops) biomass technologies to generate 4
electricity, and assign the remaining 40 percent to other 5
projects. The Secretary may, after transmitting to Con- 6
gress an explanation of the reasons therefor, alter the per- 7
centage requirements of the preceding sentence.’’. 8
(b) QUALIFIED RENEWABLE ENERGY FACILITY.— 9
Section 1212(b) of the Energy Policy Act of 1992 (42 10
U.S.C. 13317(b)) is amended— 11
(1) by striking ‘‘a State or any political’’ and 12
all that follows through ‘‘nonprofit electrical cooper- 13
ative’’ and inserting ‘‘a not-for-profit electric cooper- 14
ative, a public utility described in section 115 of the 15
Internal Revenue Code of 1986, a State, Common- 16
wealth, territory, or possession of the United States 17
or the District of Columbia, or a political subdivision 18
thereof, or an Indian tribal government or subdivi- 19
sion thereof,’’; and 20
(2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio- 21
mass,’’. 22
(c) ELIGIBILITY WINDOW.—Section 1212(c) of the 23
Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is 24
amended by striking ‘‘during the 10-fiscal year period be- 25
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4
ginning with the first full fiscal year occurring after the 1
enactment of this section’’ and inserting ‘‘after October 2
1, 2003, and before October 1, 2013’’. 3
(d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of 4
the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) 5
is amended by inserting ‘‘landfill gas,’’ after ‘‘wind, bio- 6
mass,’’. 7
(e) SUNSET.—Section 1212(f) of the Energy Policy 8
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking 9
‘‘the expiration of’’ and all that follows through ‘‘of this 10
section’’ and inserting ‘‘September 30, 2023’’. 11
(f) AUTHORIZATION OF APPROPRIATIONS.—Section 12
1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 13
13317(g)) is amended to read as follows: 14
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 15
‘‘(1) IN GENERAL.—Subject to paragraph (2), 16
there are authorized to be appropriated such sums 17
as may be necessary to carry out this section for fis- 18
cal years 2003 through 2023. 19
‘‘(2) AVAILABILITY OF FUNDS.—Funds made 20
available under paragraph (1) shall remain available 21
until expended.’’. 22
SEC. 203. FEDERAL PURCHASE REQUIREMENT. 23
(a) REQUIREMENT.—The President, acting through 24
the Secretary of Energy, shall seek to ensure that, to the 25
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5
extent economically feasible and technically practicable, of 1
the total amount of electric energy the Federal Govern- 2
ment consumes during any fiscal year, the following 3
amounts shall be renewable energy: 4
(1) Not less than 3 percent in fiscal years 2005 5
through 2007. 6
(2) Not less than 5 percent in fiscal years 2008 7
through 2010. 8
(3) Not less than 7.5 percent in fiscal year 9
2011 and each fiscal year thereafter. 10
(b) DEFINITIONS.—In this section: 11
(1) BIOMASS.—The term ‘‘biomass’’ means any 12
solid, nonhazardous, cellulosic material that is de- 13
rived from— 14
(A) any of the following forest-related re- 15
sources: mill residues, precommercial thinnings, 16
slash, and brush, or nonmerchantable material; 17
(B) solid wood waste materials, including 18
waste pallets, crates, dunnage, manufacturing 19
and construction wood wastes (other than pres- 20
sure-treated, chemically-treated, or painted 21
wood wastes), and landscape or right-of-way 22
tree trimmings, but not including municipal 23
solid waste (garbage), gas derived from the bio- 24
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6
degradation of solid waste, or paper that is 1
commonly recycled; 2
(C) agriculture wastes, including orchard 3
tree crops, vineyard, grain, legumes, sugar, and 4
other crop by-products or residues, and live- 5
stock waste nutrients; or 6
(D) a plant that is grown exclusively as a 7
fuel for the production of electricity. 8
(2) RENEWABLE ENERGY.—The term ‘‘renew- 9
able energy’’ means electric energy generated from 10
solar, wind, biomass, landfill gas, geothermal, munic- 11
ipal solid waste, or new hydroelectric generation ca- 12
pacity achieved from increased efficiency or addi- 13
tions of new capacity at an existing hydroelectric 14
project. 15
(c) CALCULATION.—For purposes of determining 16
compliance with the requirement of this section, the 17
amount of renewable energy shall be doubled if— 18
(1) the renewable energy is produced and used 19
on-site at a Federal facility; 20
(2) the renewable energy is produced on Fed- 21
eral lands and used at a Federal facility; or 22
(3) the renewable energy is produced on Indian 23
land as defined in title XXVI of the Energy Policy 24
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7
Act of 1992 (25 U.S.C. 3501 et. seq.) and used at 1
a Federal facility. 2
(d) REPORT.—Not later than April 15, 2005, and 3
every 2 years thereafter, the Secretary of Energy shall 4
provide a report to Congress on the progress of the Fed- 5
eral Government in meeting the goals established by this 6
section. 7
SEC. 204. INSULAR AREAS ENERGY SECURITY. 8
Section 604 of the Act entitled ‘‘An Act to authorize 9
appropriations for certain insular areas of the United 10
States, and for other purposes’’, approved December 24, 11
1980 (48 U.S.C. 1492), is amended— 12
(1) in subsection (a)(4) by striking the period 13
and inserting a semicolon; 14
(2) by adding at the end of subsection (a) the 15
following new paragraphs: 16
‘‘(5) electric power transmission and distribu- 17
tion lines in insular areas are inadequate to with- 18
stand damage caused by the hurricanes and ty- 19
phoons which frequently occur in insular areas and 20
such damage often costs millions of dollars to repair; 21
and 22
‘‘(6) the refinement of renewable energy tech- 23
nologies since the publication of the 1982 Territorial 24
Energy Assessment prepared pursuant to subsection 25
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8
(c) reveals the need to reassess the state of energy 1
production, consumption, infrastructure, reliance on 2
imported energy, opportunities for energy conserva- 3
tion and increased energy efficiency, and indigenous 4
sources in regard to the insular areas.’’; 5
(3) by amending subsection (e) to read as fol- 6
lows: 7
‘‘(e)(1) The Secretary of the Interior, in consultation 8
with the Secretary of Energy and the head of government 9
of each insular area, shall update the plans required under 10
subsection (c) by— 11
‘‘(A) updating the contents required by sub- 12
section (c); 13
‘‘(B) drafting long-term energy plans for such 14
insular areas with the objective of reducing, to the 15
extent feasible, their reliance on energy imports by 16
the year 2010, increasing energy conservation and 17
energy efficiency, and maximizing, to the extent fea- 18
sible, use of indigenous energy sources; and 19
‘‘(C) drafting long-term energy transmission 20
line plans for such insular areas with the objective 21
that the maximum percentage feasible of electric 22
power transmission and distribution lines in each in- 23
sular area be protected from damage caused by hur- 24
ricanes and typhoons. 25
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9
‘‘(2) Not later than December 31, 2005, the Sec- 1
retary of the Interior shall submit to Congress the updated 2
plans for each insular area required by this subsection.’’; 3
and 4
(4) by amending subsection (g)(4) to read as 5
follows: 6
‘‘(4) POWER LINE GRANTS FOR INSULAR 7
AREAS.— 8
‘‘(A) IN GENERAL.—The Secretary of the 9
Interior is authorized to make grants to govern- 10
ments of insular areas of the United States to 11
carry out eligible projects to protect electric 12
power transmission and distribution lines in 13
such insular areas from damage caused by hur- 14
ricanes and typhoons. 15
‘‘(B) ELIGIBLE PROJECTS.—The Secretary 16
may award grants under subparagraph (A) only 17
to governments of insular areas of the United 18
States that submit written project plans to the 19
Secretary for projects that meet the following 20
criteria: 21
‘‘(i) The project is designed to protect 22
electric power transmission and distribu- 23
tion lines located in 1 or more of the insu- 24
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10
lar areas of the United States from dam- 1
age caused by hurricanes and typhoons. 2
‘‘(ii) The project is likely to substan- 3
tially reduce the risk of future damage, 4
hardship, loss, or suffering. 5
‘‘(iii) The project addresses 1 or more 6
problems that have been repetitive or that 7
pose a significant risk to public health and 8
safety. 9
‘‘(iv) The project is not likely to cost 10
more than the value of the reduction in di- 11
rect damage and other negative impacts 12
that the project is designed to prevent or 13
mitigate. The cost benefit analysis required 14
by this criterion shall be computed on a 15
net present value basis. 16
‘‘(v) The project design has taken into 17
consideration long-term changes to the 18
areas and persons it is designed to protect 19
and has manageable future maintenance 20
and modification requirements. 21
‘‘(vi) The project plan includes an 22
analysis of a range of options to address 23
the problem it is designed to prevent or 24
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mitigate and a justification for the selec- 1
tion of the project in light of that analysis. 2
‘‘(vii) The applicant has demonstrated 3
to the Secretary that the matching funds 4
required by subparagraph (D) are avail- 5
able. 6
‘‘(C) PRIORITY.—When making grants 7
under this paragraph, the Secretary shall give 8
priority to grants for projects which are likely 9
to— 10
‘‘(i) have the greatest impact on re- 11
ducing future disaster losses; and 12
‘‘(ii) best conform with plans that 13
have been approved by the Federal Govern- 14
ment or the government of the insular area 15
where the project is to be carried out for 16
development or hazard mitigation for that 17
insular area. 18
‘‘(D) MATCHING REQUIREMENT.—The 19
Federal share of the cost for a project for which 20
a grant is provided under this paragraph shall 21
not exceed 75 percent of the total cost of that 22
project. The non-Federal share of the cost may 23
be provided in the form of cash or services. 24
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‘‘(E) TREATMENT OF FUNDS FOR CERTAIN 1
PURPOSES.—Grants provided under this para- 2
graph shall not be considered as income, a re- 3
source, or a duplicative program when deter- 4
mining eligibility or benefit levels for Federal 5
major disaster and emergency assistance. 6
‘‘(F) AUTHORIZATION OF APPROPRIA- 7
TIONS.—There are authorized to be appro- 8
priated to carry out this paragraph $5,000,000 9
for each fiscal year beginning after the date of 10
the enactment of this paragraph.’’. 11
SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC 12
BUILDINGS. 13
(a) IN GENERAL.—Subchapter VI of chapter 31 of 14
title 40, United States Code, is amended by adding at the 15
end the following: 16
‘‘§ 3177. Use of photovoltaic energy in public build- 17
ings 18
‘‘(a) PHOTOVOLTAIC ENERGY COMMERCIALIZATION 19
PROGRAM.— 20
‘‘(1) IN GENERAL.—The Administrator of Gen- 21
eral Services may establish a photovoltaic energy 22
commercialization program for the procurement and 23
installation of photovoltaic solar electric systems for 24
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13
electric production in new and existing public build- 1
ings. 2
‘‘(2) PURPOSES.—The purposes of the program 3
shall be to accomplish the following: 4
‘‘(A) To accelerate the growth of a com- 5
mercially viable photovoltaic industry to make 6
this energy system available to the general pub- 7
lic as an option which can reduce the national 8
consumption of fossil fuel. 9
‘‘(B) To reduce the fossil fuel consumption 10
and costs of the Federal Government. 11
‘‘(C) To attain the goal of installing solar 12
energy systems in 20,000 Federal buildings by 13
2010, as contained in the Federal Government’s 14
Million Solar Roof Initiative of 1997. 15
‘‘(D) To stimulate the general use within 16
the Federal Government of life-cycle costing 17
and innovative procurement methods. 18
‘‘(E) To develop program performance 19
data to support policy decisions on future incen- 20
tive programs with respect to energy. 21
‘‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR 22
ELECTRIC SYSTEMS.— 23
‘‘(A) IN GENERAL.—The program shall 24
provide for the acquisition of photovoltaic solar 25
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electric systems and associated storage capa- 1
bility for use in public buildings. 2
‘‘(B) ACQUISITION LEVELS.—The acquisi- 3
tion of photovoltaic electric systems shall be at 4
a level substantial enough to allow use of low- 5
cost production techniques with at least 150 6
megawatts (peak) cumulative acquired during 7
the 5 years of the program. 8
‘‘(4) ADMINISTRATION.—The Administrator 9
shall administer the program and shall— 10
‘‘(A) issue such rules and regulations as 11
may be appropriate to monitor and assess the 12
performance and operation of photovoltaic solar 13
electric systems installed pursuant to this sub- 14
section; 15
‘‘(B) develop innovative procurement strat- 16
egies for the acquisition of such systems; and 17
‘‘(C) transmit to Congress an annual re- 18
port on the results of the program. 19
‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION PRO- 20
GRAM.— 21
‘‘(1) IN GENERAL.—Not later than 60 days 22
after the date of enactment of this section, the Ad- 23
ministrator, in consultation with the Secretary of 24
Energy, shall establish a photovoltaic solar energy 25
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systems evaluation program to evaluate such photo- 1
voltaic solar energy systems as are required in public 2
buildings. 3
‘‘(2) PROGRAM REQUIREMENT.—In evaluating 4
photovoltaic solar energy systems under the pro- 5
gram, the Administrator shall ensure that such sys- 6
tems reflect the most advanced technology. 7
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— 8
‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZA- 9
TION PROGRAM.—There are authorized to be appro- 10
priated to carry out subsection (a) $50,000,000 for 11
each of fiscal years 2004 through 2008. Such sums 12
shall remain available until expended. 13
‘‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION 14
PROGRAM.—There are authorized to be appropriated 15
to carry out subsection (b) $10,000,000 for each of 16
fiscal years 2004 through 2008. Such sums shall re- 17
main available until expended.’’. 18
(b) CONFORMING AMENDMENT.—The section anal- 19
ysis for such chapter is amended by inserting after the 20
item relating to section 3176 the following: 21
‘‘3177. Use of photovoltaic energy in public buildings.’’.
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SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE 1
OF FOREST BIOMASS FOR ELECTRIC ENERGY, 2
USEFUL HEAT, TRANSPORTATION FUELS, PE- 3
TROLEUM-BASED PRODUCT SUBSTITUTES, 4
AND OTHER COMMERCIAL PURPOSES. 5
(a) FINDINGS.—Congress finds the following: 6
(1) Thousands of communities in the United 7
States, many located near Federal lands, are at risk 8
to wildfire. Approximately 190,000,000 acres of land 9
managed by the Secretary of Agriculture and the 10
Secretary of the Interior are at risk of catastrophic 11
fire in the near future. The accumulation of heavy 12
forest fuel loads continues to increase as a result of 13
disease, insect infestations, and drought, further 14
raising the risk of fire each year. 15
(2) In addition, more than 70,000,000 acres 16
across all land ownerships are at risk to higher than 17
normal mortality over the next 15 years from insect 18
infestation and disease. High levels of tree mortality 19
from insects and disease result in increased fire risk, 20
loss of old growth, degraded watershed conditions, 21
and changes in species diversity and productivity, as 22
well as diminished fish and wildlife habitat and de- 23
creased timber values. 24
(3) Preventive treatments such as removing fuel 25
loading, ladder fuels, and hazard trees, planting 26
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proper species mix and restoring and protecting 1
early successional habitat, and other specific restora- 2
tion treatments designed to reduce the susceptibility 3
of forest land, woodland, and rangeland to insect 4
outbreaks, disease, and catastrophic fire present the 5
greatest opportunity for long-term forest health by 6
creating a mosaic of species-mix and age distribu- 7
tion. Such prevention treatments are widely acknowl- 8
edged to be more successful and cost effective than 9
suppression treatments in the case of insects, dis- 10
ease, and fire. 11
(4) The byproducts of preventive treatment 12
(wood, brush, thinnings, chips, slash, and other haz- 13
ardous fuels) removed from forest lands, woodlands 14
and rangelands represent an abundant supply of bio- 15
mass for biomass-to-energy facilities and raw mate- 16
rial for business. There are currently few markets 17
for the extraordinary volumes of byproducts being 18
generated as a result of the necessary large-scale 19
preventive treatment activities. 20
(5) The United States should— 21
(A) promote economic and entrepreneurial 22
opportunities in using byproducts removed 23
through preventive treatment activities related 24
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to hazardous fuels reduction, disease, and insect 1
infestation; and 2
(B) develop and expand markets for tradi- 3
tionally underused wood and biomass as an out- 4
let for byproducts of preventive treatment ac- 5
tivities. 6
(b) DEFINITIONS.—In this section: 7
(1) BIOMASS.—The term ‘‘biomass’’ means 8
trees and woody plants, including limbs, tops, nee- 9
dles, and other woody parts, and byproducts of pre- 10
ventive treatment, such as wood, brush, thinnings, 11
chips, and slash, that are removed— 12
(A) to reduce hazardous fuels; or 13
(B) to reduce the risk of or to contain dis- 14
ease or insect infestation. 15
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 16
has the meaning given the term in section 4(e) of 17
the Indian Self-Determination and Education Assist- 18
ance Act (25 U.S.C. 450b(e)). 19
(3) PERSON.—The term ‘‘person’’ includes— 20
(A) an individual; 21
(B) a community (as determined by the 22
Secretary concerned); 23
(C) an Indian tribe; 24
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19
(D) a small business, micro-business, or a 1
corporation that is incorporated in the United 2
States; and 3
(E) a nonprofit organization. 4
(4) PREFERRED COMMUNITY.—The term ‘‘pre- 5
ferred community’’ means— 6
(A) any town, township, municipality, or 7
other similar unit of local government (as deter- 8
mined by the Secretary concerned) that— 9
(i) has a population of not more than 10
50,000 individuals; and 11
(ii) the Secretary concerned, in the 12
sole discretion of the Secretary concerned, 13
determines contains or is located near 14
land, the condition of which is at signifi- 15
cant risk of catastrophic wildfire, disease, 16
or insect infestation or which suffers from 17
disease or insect infestation; or 18
(B) any county that— 19
(i) is not contained within a metro- 20
politan statistical area; and 21
(ii) the Secretary concerned, in the 22
sole discretion of the Secretary concerned, 23
determines contains or is located near 24
land, the condition of which is at signifi- 25
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20
cant risk of catastrophic wildfire, disease, 1
or insect infestation or which suffers from 2
disease or insect infestation. 3
(5) SECRETARY CONCERNED.—The term ‘‘Sec- 4
retary concerned’’ means— 5
(A) the Secretary of Agriculture with re- 6
spect to National Forest System lands; and 7
(B) the Secretary of the Interior with re- 8
spect to Federal lands under the jurisdiction of 9
the Secretary of the Interior and Indian lands. 10
(c) BIOMASS COMMERCIAL USE GRANT PROGRAM.— 11
(1) IN GENERAL.—The Secretary concerned 12
may make grants to any person that owns or oper- 13
ates a facility that uses biomass as a raw material 14
to produce electric energy, sensible heat, transpor- 15
tation fuels, or substitutes for petroleum-based prod- 16
ucts to offset the costs incurred to purchase biomass 17
for use by such facility. 18
(2) GRANT AMOUNTS.—A grant under this sub- 19
section may not exceed $20 per green ton of biomass 20
delivered. 21
(3) MONITORING OF GRANT RECIPIENT ACTIVI- 22
TIES.—As a condition of a grant under this sub- 23
section, the grant recipient shall keep such records 24
as the Secretary concerned may require to fully and 25
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21
correctly disclose the use of the grant funds and all 1
transactions involved in the purchase of biomass. 2
Upon notice by a representative of the Secretary 3
concerned, the grant recipient shall afford the rep- 4
resentative reasonable access to the facility that pur- 5
chases or uses biomass and an opportunity to exam- 6
ine the inventory and records of the facility. 7
(d) IMPROVED BIOMASS USE GRANT PROGRAM.— 8
(1) IN GENERAL.—The Secretary concerned 9
may make grants to persons to offset the cost of 10
projects to develop or research opportunities to im- 11
prove the use of, or add value to, biomass. In mak- 12
ing such grants, the Secretary concerned shall give 13
preference to persons in preferred communities. 14
(2) SELECTION.—The Secretary concerned shall 15
select a grant recipient under paragraph (1) after 16
giving consideration to the anticipated public bene- 17
fits of the project, including the potential to develop 18
thermal or electric energy resources or affordable en- 19
ergy, opportunities for the creation or expansion of 20
small businesses and micro-businesses, and the po- 21
tential for new job creation. 22
(3) GRANT AMOUNT.—A grant under this sub- 23
section may not exceed $500,000. 24
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(e) AUTHORIZATION OF APPROPRIATIONS.—There 1
are authorized to be appropriated $50,000,000 for each 2
of the fiscal years 2004 through 2014 to carry out this 3
section. 4
(f) REPORT.—Not later than October 1, 2010, the 5
Secretary of Agriculture, in consultation with the Sec- 6
retary of the Interior, shall submit to the Committee on 7
Energy and Natural Resources and the Committee on Ag- 8
riculture, Nutrition, and Forestry of the Senate and the 9
Committee on Resources, the Committee on Energy and 10
Commerce, and the Committee on Agriculture of the 11
House of Representatives a report describing the results 12
of the grant programs authorized by this section. The re- 13
port shall include the following: 14
(1) An identification of the size, type, and the 15
use of biomass by persons that receive grants under 16
this section. 17
(2) The distance between the land from which 18
the biomass was removed and the facility that used 19
the biomass. 20
(3) The economic impacts, particularly new job 21
creation, resulting from the grants to and operation 22
of the eligible operations. 23
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SEC. 207. BIOBASED PRODUCTS. 1
Section 9002(c)(1) of the Farm Security and Rural 2
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended 3
by inserting ‘‘or such items that comply with the regula- 4
tions issued under section 103 of Public Law 100–556 (42 5
U.S.C. 6914b–1)’’ after ‘‘practicable’’. 6
Subtitle B—Geothermal Energy 7
SEC. 211. SHORT TITLE. 8
This subtitle may be cited as the ‘‘John Rishel Geo- 9
thermal Steam Act Amendments of 2003’’. 10
SEC. 212. COMPETITIVE LEASE SALE REQUIREMENTS. 11
Section 4 of the Geothermal Steam Act of 1970 (30 12
U.S.C. 1003) is amended to read as follows: 13
‘‘SEC. 4. LEASING PROCEDURES. 14
‘‘(a) NOMINATIONS.—The Secretary shall accept 15
nominations of lands to be leased at any time from quali- 16
fied companies and individuals under this Act. 17
‘‘(b) COMPETITIVE LEASE SALE REQUIRED.—The 18
Secretary shall hold a competitive lease sale at least once 19
every 2 years for lands in a State which has nominations 20
pending under subsection (a) if such lands are otherwise 21
available for leasing. 22
‘‘(c) NONCOMPETITIVE LEASING.—The Secretary 23
shall make available for a period of 2 years for non- 24
competitive leasing any tract for which a competitive lease 25
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24
sale is held, but for which the Secretary does not receive 1
any bids in a competitive lease sale. 2
‘‘(d) LEASES SOLD AS A BLOCK.—If information is 3
available to the Secretary indicating a geothermal resource 4
that could be produced as 1 unit can reasonably be ex- 5
pected to underlie more than 1 parcel to be offered in a 6
competitive lease sale, the parcels for such a resource may 7
be offered for bidding as a block in the competitive lease 8
sale. 9
‘‘(e) PENDING LEASE APPLICATIONS ON APRIL 1, 10
2003.—It shall be a priority for the Secretary of the Inte- 11
rior, and for the Secretary of Agriculture with respect to 12
National Forest Systems lands, to ensure timely comple- 13
tion of administrative actions necessary to process applica- 14
tions for geothermal leasing pending on April 1, 2003. 15
Such an application, and any lease issued pursuant to 16
such an application— 17
‘‘(1) except as provided in paragraph (2), shall 18
be subject to this section as in effect on April 1, 19
2003; or 20
‘‘(2) at the election of the applicant, shall be 21
subject to this section as in effect on the effective 22
date of this paragraph.’’. 23
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SEC. 213. DIRECT USE. 1
(a) FEES FOR DIRECT USE.—Section 5 of the Geo- 2
thermal Steam Act of 1970 (30 U.S.C. 1004) is 3
amended— 4
(1) in paragraph (c) by redesignating subpara- 5
graphs (1) and (2) as subparagraphs (A) and (B); 6
(2) by redesignating paragraphs (a) through (d) 7
in order as paragraphs (1) through (4); 8
(3) by inserting ‘‘(a) IN GENERAL.—’’ after 9
‘‘SEC. 5.’’; and 10
(4) by adding at the end the following: 11
‘‘(b) DIRECT USE.—Notwithstanding subsection 12
(a)(1), with respect to the direct use of geothermal re- 13
sources for purposes other than the commercial generation 14
of electricity, the Secretary of the Interior shall establish 15
a schedule of fees and collect fees pursuant to such a 16
schedule in lieu of royalties based upon the total amount 17
of the geothermal resources used. The schedule of fees 18
shall ensure that there is a fair return to the public for 19
the use of a geothermal resource based upon comparable 20
fees charged for direct use of geothermal resources by 21
States or private persons. For direct use by a State or 22
local government for public purposes there shall be no roy- 23
alty and the fee charged shall be nominal. Leases in exist- 24
ence on the date of enactment of the Energy Policy Act 25
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26
of 2003 shall be modified in order to reflect the provisions 1
of this subsection.’’. 2
(b) LEASING FOR DIRECT USE.—Section 4 of the 3
Geothermal Steam Act of 1970 (30 U.S.C. 1003) is fur- 4
ther amended by adding at the end the following: 5
‘‘(f) LEASING FOR DIRECT USE OF GEOTHERMAL 6
RESOURCES.—Lands leased under this Act exclusively for 7
direct use of geothermal resources shall be leased to any 8
qualified applicant who first applies for such a lease under 9
regulations issued by the Secretary, if— 10
‘‘(1) the Secretary publishes a notice of the 11
lands proposed for leasing 60 days before the date 12
of the issuance of the lease; and 13
‘‘(2) the Secretary does not receive in the 60- 14
day period beginning on the date of such publication 15
any nomination to include the lands concerned in the 16
next competitive lease sale. 17
‘‘(g) AREA SUBJECT TO LEASE FOR DIRECT USE.— 18
A geothermal lease for the direct use of geothermal re- 19
sources shall embrace not more than the amount of acre- 20
age determined by the Secretary to be reasonably nec- 21
essary for such proposed utilization.’’. 22
(c) EXISTING LEASES WITH A DIRECT USE FACIL- 23
ITY.— 24
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(1) APPLICATION TO CONVERT.—Any lessee 1
under a lease under the Geothermal Steam Act of 2
1970 that was issued before the date of the enact- 3
ment of this Act may apply to the Secretary of the 4
Interior, by not later than 18 months after the date 5
of the enactment of this Act, to convert such lease 6
to a lease for direct utilization of geothermal re- 7
sources in accordance with the amendments made by 8
this section. 9
(2) CONVERSION.—The Secretary shall approve 10
such an application and convert such a lease to a 11
lease in accordance with the amendments by not 12
later than 180 days after receipt of such application, 13
unless the Secretary determines that the applicant is 14
not a qualified applicant with respect to the lease. 15
(3) APPLICATION OF NEW LEASE TERMS.—The 16
amendment made by subsection (a)(4) shall apply 17
with respect to payments under a lease converted 18
under this subsection that are due and owing to the 19
United States on or after July 16, 2003. 20
SEC. 214. ROYALTIES AND NEAR-TERM PRODUCTION IN- 21
CENTIVES. 22
(a) ROYALTY.—Section 5 of the Geothermal Steam 23
Act of 1970 (30 U.S.C. 1004) is further amended— 24
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(1) in subsection (a) by striking paragraph (1) 1
and inserting the following: 2
‘‘(1) a royalty on electricity produced using geo- 3
thermal steam and associated geothermal resources, 4
other than direct use of geothermal resources, that 5
shall be— 6
‘‘(A) not less than 1 percent and not more 7
than 2.5 percent of the gross proceeds from the 8
sale of electricity produced from such resources 9
during the first 10 years of production under 10
the lease; and 11
‘‘(B) not less than 2 and not more than 5 12
percent of the gross proceeds from the sale of 13
electricity produced from such resources during 14
each year after such 10-year period;’’; and 15
(2) by adding at the end the following: 16
‘‘(c) FINAL REGULATION ESTABLISHING ROYALTY 17
RATES.—In issuing any final regulation establishing roy- 18
alty rates under this section, the Secretary shall seek— 19
‘‘(1) to provide lessees a simplified administra- 20
tive system; 21
‘‘(2) to encourage new development; and 22
‘‘(3) to achieve the same long-term level of roy- 23
alty revenues to States and counties as the regula- 24
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29
tion in effect on the date of enactment of this sub- 1
section. 2
‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF ELEC- 3
TRICITY.—The Secretary may provide to a lessee a credit 4
against royalties owed under this Act, in an amount equal 5
to the value of electricity provided under contract to a 6
State or county government that is entitled to a portion 7
of such royalties under section 20 of this Act, section 35 8
of the Mineral Leasing Act (30 U.S.C. 191), or section 9
6 of the Mineral Leasing Act for Acquired Lands (30 10
U.S.C. 355), if— 11
‘‘(1) the Secretary has approved in advance the 12
contract between the lessee and the State or county 13
government for such in-kind payments; 14
‘‘(2) the contract establishes a specific method- 15
ology to determine the value of such credits; and 16
‘‘(3) the maximum credit will be equal to the 17
royalty value owed to the State or county that is a 18
party to the contract and the electricity received will 19
serve as the royalty payment from the Federal Gov- 20
ernment to that entity.’’. 21
(b) DISPOSAL OF MONEYS FROM SALES, BONUSES, 22
ROYALTIES, AND RENTALS.—Section 20 of the Geo- 23
thermal Steam Act of 1970 (30 U.S.C. 1019) is amended 24
to read as follows: 25
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‘‘SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, 1
RENTALS, AND ROYALTIES. 2
‘‘(a) IN GENERAL.—Except with respect to lands in 3
the State of Alaska, all monies received by the United 4
States from sales, bonuses, rentals, and royalties under 5
this Act shall be paid into the Treasury of the United 6
States. Of amounts deposited under this subsection, sub- 7
ject to the provisions of section 35 of the Mineral Leasing 8
Act (30 U.S.C. 191(b)) and section 5(a)(2) of this Act— 9
‘‘(1) 50 percent shall be paid to the State with- 10
in the boundaries of which the leased lands or geo- 11
thermal resources are or were located; and 12
‘‘(2) 25 percent shall be paid to the County 13
within the boundaries of which the leased lands or 14
geothermal resources are or were located. 15
‘‘(b) USE OF PAYMENTS.—Amounts paid to a State 16
or county under subsection (a) shall be used consistent 17
with the terms of section 35 of the Mineral Leasing Act 18
(30 U.S.C. 191).’’. 19
(c) NEAR-TERM PRODUCTION INCENTIVE FOR EX- 20
ISTING LEASES.— 21
(1) IN GENERAL.—Notwithstanding section 22
5(a) of the Geothermal Steam Act of 1970, the roy- 23
alty required to be paid shall be 50 percent of the 24
amount of the royalty otherwise required, on any 25
lease issued before the date of enactment of this Act 26
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that does not convert to new royalty terms under 1
subsection (e)— 2
(A) with respect to commercial production 3
of energy from a facility that begins such pro- 4
duction in the 6-year period beginning on the 5
date of the enactment of this Act; or 6
(B) on qualified expansion geothermal en- 7
ergy. 8
(2) 4-YEAR APPLICATION.—Paragraph (1) ap- 9
plies only to new commercial production of energy 10
from a facility in the first 4 years of such produc- 11
tion. 12
(d) DEFINITION OF QUALIFIED EXPANSION GEO- 13
THERMAL ENERGY.—In this section, the term ‘‘qualified 14
expansion geothermal energy’’ means geothermal energy 15
produced from a generation facility for which— 16
(1) the production is increased by more than 10 17
percent as a result of expansion of the facility car- 18
ried out in the 6-year period beginning on the date 19
of the enactment of this Act; and 20
(2) such production increase is greater than 10 21
percent of the average production by the facility dur- 22
ing the 5-year period preceding the expansion of the 23
facility. 24
(e) ROYALTY UNDER EXISTING LEASES.— 25
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(1) IN GENERAL.—Any lessee under a lease 1
issued under the Geothermal Steam Act of 1970 be- 2
fore the date of the enactment of this Act may mod- 3
ify the terms of the lease relating to payment of roy- 4
alties to comply with the amendment made by sub- 5
section (a), by applying to the Secretary of the Inte- 6
rior by not later than 18 months after the date of 7
the enactment of this Act. 8
(2) APPLICATION OF MODIFICATION.—Such 9
modification shall apply to any use of geothermal 10
steam and any associated geothermal resources to 11
which the amendment applies that occurs after the 12
date of that application. 13
(3) CONSULTATION.—The Secretary— 14
(A) shall consult with the State and local 15
governments affected by any proposed changes 16
in lease royalty terms under this subsection; 17
and 18
(B) may establish a gross proceeds per- 19
centage within the range specified in the 20
amendment made by subsection (a)(1) and with 21
the concurrence of the lessee and the State. 22
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SEC. 215. GEOTHERMAL LEASING AND PERMITTING ON 1
FEDERAL LANDS. 2
(a) IN GENERAL.—Not later than 180 days after the 3
date of the enactment of this section, the Secretary of the 4
Interior and the Secretary of Agriculture shall enter into 5
and submit to Congress a memorandum of understanding 6
in accordance with this section regarding leasing and per- 7
mitting for geothermal development of public lands and 8
National Forest System lands under their respective juris- 9
dictions. 10
(b) LEASE AND PERMIT APPLICATIONS.—The memo- 11
randum of understanding shall— 12
(1) identify areas with geothermal potential on 13
lands included in the National Forest System and, 14
when necessary, require review of management plans 15
to consider leasing under the Geothermal Steam Act 16
of 1970 (30 U.S.C. 1001 et seq.) as a land use; and 17
(2) establish an administrative procedure for 18
processing geothermal lease applications, including 19
lines of authority, steps in application processing, 20
and time limits for application procession. 21
(c) DATA RETRIEVAL SYSTEM.—The memorandum 22
of understanding shall establish a joint data retrieval sys- 23
tem that is capable of tracking lease and permit applica- 24
tions and providing to the applicant information as to 25
their status within the Departments of the Interior and 26
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34
Agriculture, including an estimate of the time required for 1
administrative action. 2
SEC. 216. REVIEW AND REPORT TO CONGRESS. 3
The Secretary of the Interior shall promptly review 4
and report to Congress not later than 3 years after the 5
date of the enactment of this Act regarding the status of 6
all withdrawals from leasing under the Geothermal Steam 7
Act of 1970 (30 U.S.C. 1001 et seq.) of Federal lands, 8
specifying for each such area whether the basis for such 9
withdrawal still applies. 10
SEC. 217. REIMBURSEMENT FOR COSTS OF NEPA ANAL- 11
YSES, DOCUMENTATION, AND STUDIES. 12
(a) IN GENERAL.—The Geothermal Steam Act of 13
1970 (30 U.S.C. 1001 et seq.) is amended by adding at 14
the end the following: 15
‘‘SEC. 30. REIMBURSEMENT FOR COSTS OF CERTAIN ANAL- 16
YSES, DOCUMENTATION, AND STUDIES. 17
‘‘(a) IN GENERAL.—The Secretary of the Interior 18
may reimburse a person that is a lessee, operator, oper- 19
ating rights owner, or applicant for any lease under this 20
Act for reasonable amounts paid by the person for prepa- 21
ration for the Secretary by a contractor or other person 22
selected by the Secretary of any project-level analysis, doc- 23
umentation, or related study required pursuant to the Na- 24
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35
tional Environmental Policy Act of 1969 (42 U.S.C. 4321 1
et seq.) with respect to the lease. 2
‘‘(b) CONDITIONS.—The Secretary may provide reim- 3
bursement under subsection (a) only if— 4
‘‘(1) adequate funding to enable the Secretary 5
to timely prepare the analysis, documentation, or re- 6
lated study is not appropriated; 7
‘‘(2) the person paid the costs voluntarily; 8
‘‘(3) the person maintains records of its costs 9
in accordance with regulations issued by the Sec- 10
retary; 11
‘‘(4) the reimbursement is in the form of a re- 12
duction in the Federal share of the royalty required 13
to be paid for the lease for which the analysis, docu- 14
mentation, or related study is conducted, and is 15
agreed to by the Secretary and the person reim- 16
bursed prior to commencing the analysis, docu- 17
mentation, or related study; and 18
‘‘(5) the agreement required under paragraph 19
(4) contains provisions— 20
‘‘(A) reducing royalties owed on lease pro- 21
duction based on market prices; 22
‘‘(B) stipulating an automatic termination 23
of the royalty reduction upon recovery of docu- 24
mented costs; and 25
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36
‘‘(C) providing a process by which the les- 1
see may seek reimbursement for circumstances 2
in which production from the specified lease is 3
not possible.’’. 4
(b) APPLICATION.—The amendment made by this 5
section shall apply with respect to an analysis, documenta- 6
tion, or a related study conducted on or after the date 7
of enactment of this Act for any lease entered into before, 8
on, or after the date of enactment of this Act. 9
(c) DEADLINE FOR REGULATIONS.—The Secretary 10
shall issue regulations implementing the amendment made 11
by this section by not later than 1 year after the date 12
of enactment of this Act. 13
SEC. 218. ASSESSMENT OF GEOTHERMAL ENERGY POTEN- 14
TIAL. 15
The Secretary of Interior, acting through the Direc- 16
tor of the United States Geological Survey and in coopera- 17
tion with the States, shall update the 1978 Assessment 18
of Geothermal Resources, and submit that updated assess- 19
ment to Congress— 20
(1) not later than 3 years after the date of en- 21
actment of this Act; and 22
(2) thereafter as the availability of data and de- 23
velopments in technology warrant. 24
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SEC. 219. COOPERATIVE OR UNIT PLANS. 1
Section 18 of the Geothermal Steam Act of 1970 (30 2
U.S.C. 1017) is amended to read as follows: 3
‘‘SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS. 4
‘‘(a) ADOPTION OF UNITS BY LESSEES.— 5
‘‘(1) IN GENERAL.—For the purpose of more 6
properly conserving the natural resources of any 7
geothermal reservoir, field, or like area, or any part 8
thereof (whether or not any part of the geothermal 9
field, or like area, is then subject to any Unit Agree- 10
ment (cooperative plan of development or oper- 11
ation)), lessees thereof and their representatives may 12
unite with each other, or jointly or separately with 13
others, in collectively adopting and operating under 14
a Unit Agreement for such field, or like area, or any 15
part thereof including direct use resources, if deter- 16
mined and certified by the Secretary to be necessary 17
or advisable in the public interest. A majority inter- 18
est of owners of any single lease shall have the au- 19
thority to commit that lease to a Unit Agreement. 20
The Secretary of the Interior may also initiate the 21
formation of a Unit Agreement if in the public inter- 22
est. 23
‘‘(2) MODIFICATION OF LEASE REQUIREMENTS 24
BY SECRETARY.—The Secretary may, in the discre- 25
tion of the Secretary, and with the consent of the 26
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holders of leases involved, establish, alter, change, or 1
revoke rates of operations (including drilling, oper- 2
ations, production, and other requirements) of such 3
leases and make conditions with reference to such 4
leases, with the consent of the lessees, in connection 5
with the creation and operation of any such Unit 6
Agreement as the Secretary may deem necessary or 7
proper to secure the proper protection of the public 8
interest. Leases with unlike lease terms or royalty 9
rates do not need to be modified to be in the same 10
unit. 11
‘‘(b) REQUIREMENT OF PLANS UNDER NEW 12
LEASES.—The Secretary— 13
‘‘(1) may provide that geothermal leases issued 14
under this Act shall contain a provision requiring 15
the lessee to operate under such a reasonable Unit 16
Agreement; and 17
‘‘(2) may prescribe such an Agreement under 18
which such lessee shall operate, which shall ade- 19
quately protect the rights of all parties in interest, 20
including the United States. 21
‘‘(c) MODIFICATION OF RATE OF PROSPECTING, DE- 22
VELOPMENT, AND PRODUCTION.—The Secretary may re- 23
quire that any Agreement authorized by this section that 24
applies to lands owned by the United States contain a pro- 25
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vision under which authority is vested in the Secretary, 1
or any person, committee, or State or Federal officer or 2
agency as may be designated in the Agreement to alter 3
or modify from time to time the rate of prospecting and 4
development and the quantity and rate of production 5
under such an Agreement. 6
‘‘(d) EXCLUSION FROM DETERMINATION OF HOLD- 7
ING OR CONTROL.—Any lands that are subject to any 8
Agreement approved or prescribed by the Secretary under 9
this section shall not be considered in determining hold- 10
ings or control under any provision of this Act. 11
‘‘(e) POOLING OF CERTAIN LANDS.—If separate 12
tracts of lands cannot be independently developed and op- 13
erated to use geothermal steam and associated geothermal 14
resources pursuant to any section of this Act— 15
‘‘(1) such lands, or a portion thereof, may be 16
pooled with other lands, whether or not owned by 17
the United States, for purposes of development and 18
operation under a Communitization Agreement pro- 19
viding for an apportionment of production or royal- 20
ties among the separate tracts of land comprising 21
the production unit, if such pooling is determined by 22
the Secretary to be in the public interest; and 23
‘‘(2) operation or production pursuant to such 24
an Agreement shall be treated as operation or pro- 25
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November 14, 2003 (10:54 AM)
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duction with respect to each tract of land that is 1
subject to the agreement. 2
‘‘(f) UNIT AGREEMENT REVIEW.—No more than 5 3
years after approval of any cooperative or Unit Agreement 4
and at least every 5 years thereafter, the Secretary shall 5
review each such Agreement and, after notice and oppor- 6
tunity for comment, eliminate from inclusion in such 7
Agreement any lands that the Secretary determines are 8
not reasonably necessary for Unit operations under the 9
Agreement. Such elimination shall be based on scientific 10
evidence, and shall occur only if it is determined by the 11
Secretary to be for the purpose of conserving and properly 12
managing the geothermal resource. Any land so eliminated 13
shall be eligible for an extension under subsection (g) of 14
section 6 if it meets the requirements for such an exten- 15
sion. 16
‘‘(g) DRILLING OR DEVELOPMENT CONTRACTS.— 17
The Secretary may, on such conditions as the Secretary 18
may prescribe, approve drilling or development contracts 19
made by 1 or more lessees of geothermal leases, with 1 20
or more persons, associations, or corporations if, in the 21
discretion of the Secretary, the conservation of natural re- 22
sources or the public convenience or necessity may require 23
or the interests of the United States may be best served 24
thereby. All leases operated under such approved drilling 25
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41
or development contracts, and interests thereunder, shall 1
be excepted in determining holdings or control under sec- 2
tion 7. 3
‘‘(h) COORDINATION WITH STATE GOVERNMENTS.— 4
The Secretary shall coordinate unitization and pooling ac- 5
tivities with the appropriate State agencies and shall en- 6
sure that State leases included in any unitization or pool- 7
ing arrangement are treated equally with Federal leases.’’. 8
SEC. 220. ROYALTY ON BYPRODUCTS. 9
Section 5 of the Geothermal Steam Act of 1970 (30 10
U.S.C. 1004) is further amended in subsection (a) by 11
striking paragraph (2) and inserting the following: 12
‘‘(2) a royalty on any byproduct that is a min- 13
eral named in the first section of the Mineral Leas- 14
ing Act (30 U.S.C. 181), and that is derived from 15
production under the lease, at the rate of the royalty 16
that applies under that Act to production of such 17
mineral under a lease under that Act;’’. 18
SEC. 221. REPEAL OF AUTHORITIES OF SECRETARY TO RE- 19
ADJUST TERMS, CONDITIONS, RENTALS, AND 20
ROYALTIES. 21
Section 8 of the Geothermal Steam Act of 1970 (30 22
U.S.C. 1007) is amended by repealing subsection (b), and 23
by redesignating subsection (c) as subsection (b). 24
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SEC. 222. CREDITING OF RENTAL TOWARD ROYALTY. 1
Section 5 of the Geothermal Steam Act of 1970 (30 2
U.S.C. 1004) is further amended— 3
(1) in subsection (a)(2) by inserting ‘‘and’’ 4
after the semicolon at the end; 5
(2) in subsection (a)(3) by striking ‘‘; and’’ and 6
inserting a period; 7
(3) by striking paragraph (4) of subsection (a); 8
and 9
(4) by adding at the end the following: 10
‘‘(e) CREDITING OF RENTAL TOWARD ROYALTY.— 11
Any annual rental under this section that is paid with re- 12
spect to a lease before the first day of the year for which 13
the annual rental is owed shall be credited to the amount 14
of royalty that is required to be paid under the lease for 15
that year.’’. 16
SEC. 223. LEASE DURATION AND WORK COMMITMENT RE- 17
QUIREMENTS. 18
Section 6 of the Geothermal Steam Act of 1970 (30 19
U.S.C. 1005) is amended— 20
(1) by striking so much as precedes subsection 21
(c), and striking subsections (e), (g), (h), (i), and 22
(j); 23
(2) by redesignating subsections (c), (d), and 24
(f) in order as subsections (g), (h), and (i); and 25
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(3) by inserting before subsection (g), as so re- 1
designated, the following: 2
‘‘SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIRE- 3
MENTS. 4
‘‘(a) IN GENERAL.— 5
‘‘(1) PRIMARY TERM.—A geothermal lease shall 6
be for a primary term of 10 years. 7
‘‘(2) INITIAL EXTENSION.—The Secretary shall 8
extend the primary term of a geothermal lease for 9
5 years if, for each year after the fifth year of the 10
lease— 11
‘‘(A) the Secretary determined under sub- 12
section (c) that the lessee satisfied the work 13
commitment requirements that applied to the 14
lease for that year; or 15
‘‘(B) the lessee paid in accordance with 16
subsection (d) the value of any work that was 17
not completed in accordance with those require- 18
ments. 19
‘‘(3) ADDITIONAL EXTENSION.—The Secretary 20
shall extend the primary term of a geothermal lease 21
(after an initial extension under paragraph (2)) for 22
an additional 5 years if, for each year of the initial 23
extension under paragraph (2), the Secretary deter- 24
mined under subsection (c) that the lessee satisfied 25
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44
the work commitment requirements that applied to 1
the lease for that year. 2
‘‘(b) REQUIREMENT TO SATISFY ANNUAL WORK 3
COMMITMENT REQUIREMENT.— 4
‘‘(1) IN GENERAL.—The lessee for a geothermal 5
lease shall, for each year after the fifth year of the 6
lease, satisfy work commitment requirements pre- 7
scribed by the Secretary that apply to the lease for 8
that year. 9
‘‘(2) PRESCRIPTION OF WORK COMMITMENT RE- 10
QUIREMENTS.—The Secretary shall issue regulations 11
prescribing minimum equivalent dollar value work 12
commitment requirements for geothermal leases, 13
that— 14
‘‘(A) require that a lessee, in each year 15
after the fifth year of the primary term of a 16
geothermal lease, diligently work to achieve 17
commercial production or utilization of steam 18
under the lease; 19
‘‘(B) require that in each year to which 20
work commitment requirements under the regu- 21
lations apply, the lessee shall significantly re- 22
duce the amount of work that remains to be 23
done to achieve such production or utilization; 24
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November 14, 2003 (10:54 AM)
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‘‘(C) describe specific work that must be 1
completed by a lessee by the end of each year 2
to which the work commitment requirements 3
apply and factors, such as force majeure events, 4
that suspend or modify the work commitment 5
obligation; 6
‘‘(D) carry forward and apply to work 7
commitment requirements for a year, work 8
completed in any year in the preceding 3-year 9
period that was in excess of the work required 10
to be performed in that preceding year; 11
‘‘(E) establish transition rules for leases 12
issued before the date of the enactment of this 13
subsection, including terms under which a lease 14
that is near the end of its term on the date of 15
enactment of this subsection may be extended 16
for up to 2 years— 17
‘‘(i) to allow achievement of produc- 18
tion under the lease; or 19
‘‘(ii) to allow the lease to be included 20
in a producing unit; and 21
‘‘(F) establish an annual payment that, at 22
the option of the lessee, may be exercised in lieu 23
of meeting any work requirement for a limited 24
number of years that the Secretary determines 25
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November 14, 2003 (10:54 AM)
46
will not impair achieving diligent development 1
of the geothermal resource. 2
‘‘(3) TERMINATION OF APPLICATION OF RE- 3
QUIREMENTS.—Work commitment requirements pre- 4
scribed under this subsection shall not apply to a 5
geothermal lease after the date on which geothermal 6
steam is produced or utilized under the lease in com- 7
mercial quantities. 8
‘‘(c) DETERMINATION OF WHETHER REQUIREMENTS 9
SATISFIED.—The Secretary shall, by not later than 90 10
days after the end of each year for which work commit- 11
ment requirements under subsection (b) apply to a geo- 12
thermal lease— 13
‘‘(1) determine whether the lessee has satisfied 14
the requirements that apply for that year; 15
‘‘(2) notify the lessee of that determination; and 16
‘‘(3) in the case of a notification that the lessee 17
did not satisfy work commitment requirements for 18
the year, include in the notification— 19
‘‘(A) a description of the specific work that 20
was not completed by the lessee in accordance 21
with the requirements; and 22
‘‘(B) the amount of the dollar value of 23
such work that was not completed, reduced by 24
the amount of expenditures made for work com- 25
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47
pleted in a prior year that is carried forward 1
pursuant to subsection (b)(2)(D). 2
‘‘(d) PAYMENT OF VALUE OF UNCOMPLETED 3
WORK.— 4
‘‘(1) IN GENERAL.—If the Secretary notifies a 5
lessee that the lessee failed to satisfy work commit- 6
ment requirements under subsection (b), the lessee 7
shall pay to the Secretary, by not later than the end 8
of the 60-day period beginning on the date of the 9
notification, the dollar value of work that was not 10
completed by the lessee, in the amount stated in the 11
notification (as reduced under subsection (c)(3)(B)). 12
‘‘(2) FAILURE TO PAY VALUE OF 13
UNCOMPLETED WORK.—If a lessee fails to pay such 14
amount to the Secretary before the end of that pe- 15
riod, the lease shall terminate upon the expiration of 16
the period. 17
‘‘(e) CONTINUATION AFTER COMMERCIAL PRODUC- 18
TION OR UTILIZATION.—If geothermal steam is produced 19
or utilized in commercial quantities within the primary 20
term of the lease under subsection (a) (including any ex- 21
tension of the lease under subsection (a)), such lease shall 22
continue until the date on which geothermal steam is no 23
longer produced or utilized in commercial quantities. 24
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‘‘(f) CONVERSION OF GEOTHERMAL LEASE TO MIN- 1
ERAL LEASE.—The lessee under a lease that has produced 2
geothermal steam for electrical generation, has been deter- 3
mined by the Secretary to be incapable of any further com- 4
mercial production or utilization of geothermal steam, and 5
that is producing any valuable byproduct in payable quan- 6
tities may, within 6 months after such determination— 7
‘‘(1) convert the lease to a mineral lease under 8
the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 9
under the Mineral Leasing Act for Acquired Lands 10
(30 U.S.C. 351 et seq.), if the lands that are subject 11
to the lease can be leased under that Act for the 12
production of such byproduct; or 13
‘‘(2) convert the lease to a mining claim under 14
the general mining laws, if the byproduct is a 15
locatable mineral.’’. 16
SEC. 224. ADVANCED ROYALTIES REQUIRED FOR SUSPEN- 17
SION OF PRODUCTION. 18
Section 5 of the Geothermal Steam Act of 1970 (30 19
U.S.C. 1004) is further amended by adding at the end 20
the following: 21
‘‘(f) ADVANCED ROYALTIES REQUIRED FOR SUSPEN- 22
SION OF PRODUCTION.— 23
‘‘(1) CONTINUATION OF LEASE FOLLOWING 24
CESSATION OF PRODUCTION.—If, at any time after 25
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49
commercial production under a lease is achieved, 1
production ceases for any cause the lease shall re- 2
main in full force and effect— 3
‘‘(A) during the 1-year period beginning on 4
the date production ceases; and 5
‘‘(B) after such period if, and so long as, 6
the lessee commences and continues diligently 7
and in good faith until such production is re- 8
sumed the steps, operations, or procedures nec- 9
essary to cause a resumption of such produc- 10
tion. 11
‘‘(2) If production of heat or energy under a 12
geothermal lease is suspended after the date of any 13
such production for which royalty is required under 14
subsection (a) and the terms of paragraph (1) are 15
not met, the Secretary shall require the lessee, until 16
the end of such suspension, to pay royalty in ad- 17
vance at the monthly pro-rata rate of the average 18
annual rate at which such royalty was paid each 19
year in the 5-year-period preceding the date of sus- 20
pension. 21
‘‘(3) Paragraph (2) shall not apply if the sus- 22
pension is required or otherwise caused by the Sec- 23
retary, the Secretary of a military department, a 24
State or local government, or a force majeure.’’. 25
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SEC. 225. ANNUAL RENTAL. 1
(a) ANNUAL RENTAL RATE.—Section 5 of the Geo- 2
thermal Steam Act of 1970 (30 U.S.C. 1004) is further 3
amended in subsection (a) in paragraph (3) by striking 4
‘‘$1 per acre or fraction thereof for each year of the lease’’ 5
and all that follows through the end of the paragraph and 6
inserting ‘‘$1 per acre or fraction thereof for each year 7
of the lease through the tenth year in the case of a lease 8
awarded in a noncompetitive lease sale; or $2 per acre or 9
fraction thereof for the first year, $3 per acre or fraction 10
thereof for each of the second through tenth years, in the 11
case of a lease awarded in a competitive lease sale; and 12
$5 per acre or fraction thereof for each year after the 10th 13
year thereof for all leases.’’. 14
(b) TERMINATION OF LEASE FOR FAILURE TO PAY 15
RENTAL.—Section 5 of the Geothermal Steam Act of 16
1970 (30 U.S.C. 1004) is further amended by adding at 17
the end the following: 18
‘‘(g) TERMINATION OF LEASE FOR FAILURE TO PAY 19
RENTAL.— 20
‘‘(1) IN GENERAL.—The Secretary shall termi- 21
nate any lease with respect to which rental is not 22
paid in accordance with this Act and the terms of 23
the lease under which the rental is required, upon 24
the expiration of the 45-day period beginning on the 25
date of the failure to pay such rental. 26
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‘‘(2) NOTIFICATION.—The Secretary shall 1
promptly notify a lessee that has not paid rental re- 2
quired under the lease that the lease will be termi- 3
nated at the end of the period referred to in para- 4
graph (1). 5
‘‘(3) REINSTATEMENT.—A lease that would 6
otherwise terminate under paragraph (1) shall not 7
terminate under that paragraph if the lessee pays to 8
the Secretary, before the end of the period referred 9
to in paragraph (1), the amount of rental due plus 10
a late fee equal to 10 percent of such amount.’’. 11
SEC. 226. LEASING AND PERMITTING ON FEDERAL LANDS 12
WITHDRAWN FOR MILITARY PURPOSES. 13
Not later than 2 years after the date of enactment 14
of this Act, the Secretary of the Interior and the Secretary 15
of Defense, in consultation with each military service and 16
with interested States, counties, representatives of the 17
geothermal industry, and other persons, shall submit to 18
Congress a joint report concerning leasing and permitting 19
activities for geothermal energy on Federal lands with- 20
drawn for military purposes. Such report shall include the 21
following: 22
(1) A description of the Military Geothermal 23
Program, including any differences between it and 24
the non-Military Geothermal Program, including re- 25
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quired security procedures, and operational consider- 1
ations, and discussions as to the differences, and 2
why they are important. Further, the report shall 3
describe revenues or energy provided to the Depart- 4
ment of Defense and its facilities, royalty structures, 5
where applicable, and any revenue sharing with 6
States and counties or other benefits between— 7
(A) the implementation of the Geothermal 8
Steam Act of 1970 (30 U.S.C 1001 et seq.) and 9
other applicable Federal law by the Secretary of 10
the Interior; and 11
(B) the administration of geothermal leas- 12
ing under section 2689 of title 10, United 13
States Code, by the Secretary of Defense. 14
(2) If appropriate, a description of the current 15
methods and procedures used to ensure interagency 16
coordination, where needed, in developing renewable 17
energy sources on Federal lands withdrawn for mili- 18
tary purposes, and an identification of any new pro- 19
cedures that might be required in the future for the 20
improvement of interagency coordination to ensure 21
efficient processing and administration of leases or 22
contracts for geothermal energy on Federal lands 23
withdrawn for military purposes, consistent with the 24
defense purposes of such withdrawals. 25
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(3) Recommendations for any legislative or ad- 1
ministrative actions that might better achieve in- 2
creased geothermal production, including a common 3
royalty structure, leasing procedures, or other 4
changes that increase production, offset military op- 5
eration costs, or enhance the Federal agencies’ abil- 6
ity to develop geothermal resources. 7
Except as provided in this section, nothing in this subtitle 8
shall affect the legal status of the Department of the Inte- 9
rior and the Department of the Defense with respect to 10
each other regarding geothermal leasing and development 11
until such status is changed by law. 12
SEC. 227. TECHNICAL AMENDMENTS. 13
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 14
et seq.) is further amended as follows: 15
(1) By striking ‘‘geothermal steam and associ- 16
ated geothermal resources’’ each place it appears 17
and inserting ‘‘geothermal resources’’. 18
(2) Section 2(e) (30 U.S.C. 1001(e)) is amend- 19
ed to read as follows: 20
‘‘(e) ‘direct use’ means utilization of the heat of 21
geothermal resources for commercial, residential, ag- 22
ricultural, public facilities, or other energy needs 23
other than the commercial production of electricity; 24
and’’. 25
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November 14, 2003 (10:54 AM)
54
(3) Section 21 (30 U.S.C. 1020) is amended by 1
striking ‘‘(a) Within one hundred’’ and all that fol- 2
lows through ‘‘(b) Geothermal’’ and inserting ‘‘Geo- 3
thermal’’. 4
(4) The first section (30 U.S.C. 1001 note) is 5
amended by striking ‘‘That this’’ and inserting the 6
following: 7
‘‘SECTION 1. SHORT TITLE. 8
‘‘This’’. 9
(5) Section 2 (30 U.S.C. 1001) is amended by 10
striking ‘‘SEC. 2. As’’ and inserting the following: 11
‘‘SEC. 2. DEFINITIONS. 12
‘‘As’’. 13
(6) Section 3 (30 U.S.C. 1002) is amended by 14
striking ‘‘SEC. 3. Subject’’ and inserting the fol- 15
lowing: 16
‘‘SEC. 3 . LANDS SUBJECT TO GEOTHERMAL LEASING. 17
‘‘Subject’’. 18
(7) Section 5 (30 U.S.C. 1004) is further 19
amended by striking ‘‘SEC. 5.’’, and by inserting im- 20
mediately before and above subsection (a) the fol- 21
lowing: 22
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‘‘SEC. 5. RENTS AND ROYALTIES.’’. 1
(8) Section 7 (30 U.S.C. 1006) is amended by 2
striking ‘‘SEC. 7. A geothermal’’ and inserting the 3
following: 4
‘‘SEC. 7. ACREAGE OF GEOTHERMAL LEASE. 5
‘‘A geothermal’’. 6
(9) Section 8 (30 U.S.C. 1007) is amended by 7
striking ‘‘SEC. 8. (a) The’’ and inserting the fol- 8
lowing: 9
‘‘SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDI- 10
TIONS. 11
‘‘(a) The’’. 12
(10) Section 9 (30 U.S.C. 1008) is amended by 13
striking ‘‘SEC. 9. If’’ and inserting the following: 14
‘‘SEC. 9. BYPRODUCTS. 15
‘‘If’’. 16
(11) Section 10 (30 U.S.C. 1009) is amended 17
by striking ‘‘SEC. 10. The’’ and inserting the fol- 18
lowing: 19
‘‘SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS. 20
‘‘The’’. 21
(12) Section 11 (30 U.S.C. 1010) is amended 22
by striking ‘‘SEC. 11. The’’ and inserting the fol- 23
lowing: 24
‘‘SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION. 25
‘‘The’’. 26
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(13) Section 12 (30 U.S.C. 1011) is amended 1
by striking ‘‘SEC. 12. Leases’’ and inserting the fol- 2
lowing: 3
‘‘SEC. 12. TERMINATION OF LEASES. 4
‘‘Leases’’. 5
(14) Section 13 (30 U.S.C. 1012) is amended 6
by striking ‘‘SEC. 13. The’’ and inserting the fol- 7
lowing: 8
‘‘SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENT- 9
AL OR ROYALTY. 10
‘‘The’’. 11
(15) Section 14 (30 U.S.C. 1013) is amended 12
by striking ‘‘SEC. 14. Subject’’ and inserting the fol- 13
lowing: 14
‘‘SEC. 14. SURFACE LAND USE. 15
‘‘Subject’’. 16
(16) Section 15 (30 U.S.C. 1014) is amended 17
by striking ‘‘SEC. 15. (a) Geothermal’’ and inserting 18
the following: 19
‘‘SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING. 20
‘‘(a) Geothermal’’. 21
(17) Section 16 (30 U.S.C. 1015) is amended 22
by striking ‘‘SEC. 16. Leases’’ and inserting the fol- 23
lowing: 24
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‘‘SEC. 16. REQUIREMENT FOR LESSEES. 1
‘‘Leases’’. 2
(18) Section 17 (30 U.S.C. 1016) is amended 3
by striking ‘‘SEC. 17. Administration’’ and inserting 4
the following: 5
‘‘SEC. 17. ADMINISTRATION. 6
‘‘Administration’’. 7
(19) Section 19 (30 U.S.C. 1018) is amended 8
by striking ‘‘SEC. 19. Upon’’ and inserting the fol- 9
lowing: 10
‘‘SEC. 19. DATA FROM FEDERAL AGENCIES. 11
‘‘Upon’’. 12
(20) Section 21 (30 U.S.C. 1020) is further 13
amended by striking ‘‘SEC. 21.’’, and by inserting 14
immediately before and above the remainder of that 15
section the following: 16
‘‘SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVA- 17
TION OF MINERAL RIGHTS.’’. 18
(21) Section 22 (30 U.S.C. 1021) is amended 19
by striking ‘‘SEC. 22. Nothing’’ and inserting the 20
following: 21
‘‘SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS. 22
‘‘Nothing’’. 23
(22) Section 23 (30 U.S.C. 1022) is amended 24
by striking ‘‘SEC. 23. (a) All’’ and inserting the fol- 25
lowing: 26
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‘‘SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY. 1
‘‘(a) All’’. 2
(23) Section 24 (30 U.S.C. 1023) is amended 3
by striking ‘‘SEC. 24. The’’ and inserting the fol- 4
lowing: 5
‘‘SEC. 24. RULES AND REGULATIONS. 6
‘‘The’’. 7
(24) Section 25 (30 U.S.C. 1024) is amended 8
by striking ‘‘SEC. 25. As’’ and inserting the fol- 9
lowing: 10
‘‘SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER 11
CERTAIN OTHER LAWS. 12
‘‘As’’. 13
(25) Section 26 is amended by striking ‘‘SEC. 14
26. The’’ and inserting the following: 15
‘‘SEC. 26. AMENDMENT. 16
‘‘The’’. 17
(26) Section 27 (30 U.S.C. 1025) is amended 18
by striking ‘‘SEC. 27. The’’ and inserting the fol- 19
lowing: 20
‘‘SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL 21
RIGHTS. 22
‘‘The’’. 23
(27) Section 28 (30 U.S.C. 1026) is amended 24
by striking ‘‘SEC. 28. (a)(1) The’’ and inserting the 25
following: 26
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‘‘SEC. 28. SIGNIFICANT THERMAL FEATURES. 1
‘‘(a)(1) The’’. 2
(28) Section 29 (30 U.S.C. 1027) is amended 3
by striking ‘‘SEC. 29. The’’ and inserting the fol- 4
lowing: 5
‘‘SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING. 6
‘‘The’’. 7
Subtitle C—Hydroelectric 8
PART I—ALTERNATIVE CONDITIONS 9
SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS. 10
(a) FEDERAL RESERVATIONS.—Section 4(e) of the 11
Federal Power Act (16 U.S.C. 797(e)) is amended by in- 12
serting after ‘‘adequate protection and utilization of such 13
reservation.’’ at the end of the first proviso the following: 14
‘‘The license applicant shall be entitled to a determination 15
on the record, after opportunity for an expedited agency 16
trial-type hearing of any disputed issues of material fact, 17
with respect to such conditions. Such hearing may be con- 18
ducted in accordance with procedures established by agen- 19
cy regulation in consultation with the Federal Energy 20
Regulatory Commission.’’. 21
(b) FISHWAYS.—Section 18 of the Federal Power Act 22
(16 U.S.C. 811) is amended by inserting after ‘‘and such 23
fishways as may be prescribed by the Secretary of Com- 24
merce.’’ the following: ‘‘The license applicant shall be enti- 25
tled to a determination on the record, after opportunity 26
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for an expedited agency trial-type hearing of any disputed 1
issues of material fact, with respect to such fishways. Such 2
hearing may be conducted in accordance with procedures 3
established by agency regulation in consultation with the 4
Federal Energy Regulatory Commission.’’. 5
(c) ALTERNATIVE CONDITIONS AND PRESCRIP- 6
TIONS.—Part I of the Federal Power Act (16 U.S.C. 791a 7
et seq.) is amended by adding the following new section 8
at the end thereof: 9
‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 10
‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 11
person applies for a license for any project works within 12
any reservation of the United States, and the Secretary 13
of the department under whose supervision such reserva- 14
tion falls (referred to in this subsection as ‘the Secretary’) 15
deems a condition to such license to be necessary under 16
the first proviso of section 4(e), the license applicant may 17
propose an alternative condition. 18
‘‘(2) Notwithstanding the first proviso of section 4(e), 19
the Secretary shall accept the proposed alternative condi- 20
tion referred to in paragraph (1), and the Commission 21
shall include in the license such alternative condition, if 22
the Secretary determines, based on substantial evidence 23
provided by the license applicant or otherwise available to 24
the Secretary, that such alternative condition— 25
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‘‘(A) provides for the adequate protection and 1
utilization of the reservation; and 2
‘‘(B) will either— 3
‘‘(i) cost less to implement; or 4
‘‘(ii) result in improved operation of the 5
project works for electricity production, 6
as compared to the condition initially deemed nec- 7
essary by the Secretary. 8
‘‘(3) The Secretary shall submit into the public 9
record of the Commission proceeding with any condition 10
under section 4(e) or alternative condition it accepts under 11
this section, a written statement explaining the basis for 12
such condition, and reason for not accepting any alter- 13
native condition under this section. The written statement 14
must demonstrate that the Secretary gave equal consider- 15
ation to the effects of the condition adopted and alter- 16
natives not accepted on energy supply, distribution, cost, 17
and use; flood control; navigation; water supply; and air 18
quality (in addition to the preservation of other aspects 19
of environmental quality); based on such information as 20
may be available to the Secretary, including information 21
voluntarily provided in a timely manner by the applicant 22
and others. The Secretary shall also submit, together with 23
the aforementioned written statement, all studies, data, 24
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and other factual information available to the Secretary 1
and relevant to the Secretary’s decision. 2
‘‘(4) Nothing in this section shall prohibit other inter- 3
ested parties from proposing alternative conditions. 4
‘‘(5) If the Secretary does not accept an applicant’s 5
alternative condition under this section, and the Commis- 6
sion finds that the Secretary’s condition would be incon- 7
sistent with the purposes of this part, or other applicable 8
law, the Commission may refer the dispute to the Commis- 9
sion’s Dispute Resolution Service. The Dispute Resolution 10
Service shall consult with the Secretary and the Commis- 11
sion and issue a non-binding advisory within 90 days. The 12
Secretary may accept the Dispute Resolution Service advi- 13
sory unless the Secretary finds that the recommendation 14
will not provide for the adequate protection and utilization 15
of the reservation. The Secretary shall submit the advisory 16
and the Secretary’s final written determination into the 17
record of the Commission’s proceeding. 18
‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 19
the Secretary of the Interior or the Secretary of Commerce 20
prescribes a fishway under section 18, the license appli- 21
cant or licensee may propose an alternative to such pre- 22
scription to construct, maintain, or operate a fishway. 23
‘‘(2) Notwithstanding section 18, the Secretary of the 24
Interior or the Secretary of Commerce, as appropriate, 25
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shall accept and prescribe, and the Commission shall re- 1
quire, the proposed alternative referred to in paragraph 2
(1), if the Secretary of the appropriate department deter- 3
mines, based on substantial evidence provided by the li- 4
censee or otherwise available to the Secretary, that such 5
alternative— 6
‘‘(A) will be no less protective than the fishway 7
initially prescribed by the Secretary; and 8
‘‘(B) will either— 9
‘‘(i) cost less to implement; or 10
‘‘(ii) result in improved operation of the 11
project works for electricity production, 12
as compared to the fishway initially deemed nec- 13
essary by the Secretary. 14
‘‘(3) The Secretary concerned shall submit into the 15
public record of the Commission proceeding with any pre- 16
scription under section 18 or alternative prescription it ac- 17
cepts under this section, a written statement explaining 18
the basis for such prescription, and reason for not accept- 19
ing any alternative prescription under this section. The 20
written statement must demonstrate that the Secretary 21
gave equal consideration to the effects of the condition 22
adopted and alternatives not accepted on energy supply, 23
distribution, cost, and use; flood control; navigation; water 24
supply; and air quality (in addition to the preservation of 25
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other aspects of environmental quality); based on such in- 1
formation as may be available to the Secretary, including 2
information voluntarily provided in a timely manner by the 3
applicant and others. The Secretary shall also submit, to- 4
gether with the aforementioned written statement, all 5
studies, data, and other factual information available to 6
the Secretary and relevant to the Secretary’s decision. 7
‘‘(4) Nothing in this section shall prohibit other inter- 8
ested parties from proposing alternative prescriptions. 9
‘‘(5) If the Secretary concerned does not accept an 10
applicant’s alternative prescription under this section, and 11
the Commission finds that the Secretary’s prescription 12
would be inconsistent with the purposes of this part, or 13
other applicable law, the Commission may refer the dis- 14
pute to the Commission’s Dispute Resolution Service. The 15
Dispute Resolution Service shall consult with the Sec- 16
retary and the Commission and issue a non-binding advi- 17
sory within 90 days. The Secretary may accept the Dis- 18
pute Resolution Service advisory unless the Secretary 19
finds that the recommendation will be less protective than 20
the fishway initially prescribed by the Secretary. The Sec- 21
retary shall submit the advisory and the Secretary’s final 22
written determination into the record of the Commission’s 23
proceeding.’’. 24
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PART II—ADDITIONAL HYDROPOWER 1
SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES. 2
(a) INCENTIVE PAYMENTS.—For electric energy gen- 3
erated and sold by a qualified hydroelectric facility during 4
the incentive period, the Secretary of Energy (referred to 5
in this section as the ‘‘Secretary’’) shall make, subject to 6
the availability of appropriations, incentive payments to 7
the owner or operator of such facility. The amount of such 8
payment made to any such owner or operator shall be as 9
determined under subsection (e) of this section. Payments 10
under this section may only be made upon receipt by the 11
Secretary of an incentive payment application which estab- 12
lishes that the applicant is eligible to receive such payment 13
and which satisfies such other requirements as the Sec- 14
retary deems necessary. Such application shall be in such 15
form, and shall be submitted at such time, as the Sec- 16
retary shall establish. 17
(b) DEFINITIONS.—For purposes of this section: 18
(1) QUALIFIED HYDROELECTRIC FACILITY.— 19
The term ‘‘qualified hydroelectric facility’’ means a 20
turbine or other generating device owned or solely 21
operated by a non-Federal entity which generates 22
hydroelectric energy for sale and which is added to 23
an existing dam or conduit. 24
(2) EXISTING DAM OR CONDUIT.—The term 25
‘‘existing dam or conduit’’ means any dam or con- 26
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duit the construction of which was completed before 1
the date of the enactment of this section and which 2
does not require any construction or enlargement of 3
impoundment or diversion structures (other than re- 4
pair or reconstruction) in connection with the instal- 5
lation of a turbine or other generating device. 6
(3) CONDUIT.—The term ‘‘conduit’’ has the 7
same meaning as when used in section 30(a)(2) of 8
the Federal Power Act (16 U.S.C. 823a(a)(2)). 9
The terms defined in this subsection shall apply without 10
regard to the hydroelectric kilowatt capacity of the facility 11
concerned, without regard to whether the facility uses a 12
dam owned by a governmental or nongovernmental entity, 13
and without regard to whether the facility begins oper- 14
ation on or after the date of the enactment of this section. 15
(c) ELIGIBILITY WINDOW.—Payments may be made 16
under this section only for electric energy generated from 17
a qualified hydroelectric facility which begins operation 18
during the period of 10 fiscal years beginning with the 19
first full fiscal year occurring after the date of enactment 20
of this subtitle. 21
(d) INCENTIVE PERIOD.—A qualified hydroelectric 22
facility may receive payments under this section for a pe- 23
riod of 10 fiscal years (referred to in this section as the 24
‘‘incentive period’’). Such period shall begin with the fiscal 25
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67
year in which electric energy generated from the facility 1
is first eligible for such payments. 2
(e) AMOUNT OF PAYMENT.— 3
(1) IN GENERAL.—Payments made by the Sec- 4
retary under this section to the owner or operator of 5
a qualified hydroelectric facility shall be based on 6
the number of kilowatt hours of hydroelectric energy 7
generated by the facility during the incentive period. 8
For any such facility, the amount of such payment 9
shall be 1.8 cents per kilowatt hour (adjusted as 10
provided in paragraph (2)), subject to the avail- 11
ability of appropriations under subsection (g), except 12
that no facility may receive more than $750,000 in 13
1 calendar year. 14
(2) ADJUSTMENTS.—The amount of the pay- 15
ment made to any person under this section as pro- 16
vided in paragraph (1) shall be adjusted for inflation 17
for each fiscal year beginning after calendar year 18
2003 in the same manner as provided in the provi- 19
sions of section 29(d)(2)(B) of the Internal Revenue 20
Code of 1986, except that in applying such provi- 21
sions the calendar year 2003 shall be substituted for 22
calendar year 1979. 23
(f) SUNSET.—No payment may be made under this 24
section to any qualified hydroelectric facility after the ex- 25
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68
piration of the period of 20 fiscal years beginning with 1
the first full fiscal year occurring after the date of enact- 2
ment of this subtitle, and no payment may be made under 3
this section to any such facility after a payment has been 4
made with respect to such facility for a period of 10 fiscal 5
years. 6
(g) AUTHORIZATION OF APPROPRIATIONS.—There 7
are authorized to be appropriated to the Secretary to carry 8
out the purposes of this section $10,000,000 for each of 9
the fiscal years 2004 through 2013. 10
SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 11
(a) INCENTIVE PAYMENTS.—The Secretary of En- 12
ergy shall make incentive payments to the owners or oper- 13
ators of hydroelectric facilities at existing dams to be used 14
to make capital improvements in the facilities that are di- 15
rectly related to improving the efficiency of such facilities 16
by at least 3 percent. 17
(b) LIMITATIONS.—Incentive payments under this 18
section shall not exceed 10 percent of the costs of the cap- 19
ital improvement concerned and not more than 1 payment 20
may be made with respect to improvements at a single 21
facility. No payment in excess of $750,000 may be made 22
with respect to improvements at a single facility. 23
(c) AUTHORIZATION OF APPROPRIATIONS.—There 24
are authorized to be appropriated to carry out this section 25
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69
not more than $10,000,000 for each of the fiscal years 1
2004 through 2013. 2
SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS. 3
Section 408(a)(6) of the Public Utility Regulatory 4
Policies Act of 1978 (16 U.S.C. 2708(a)(6)) is amended 5
by striking ‘‘April 20, 1977’’ and inserting ‘‘March 4, 6
2003’’. 7
SEC. 244. INCREASED HYDROELECTRIC GENERATION AT 8
EXISTING FEDERAL FACILITIES. 9
(a) IN GENERAL.—The Secretary of the Interior and 10
the Secretary of Energy, in consultation with the Sec- 11
retary of the Army, shall jointly conduct a study of the 12
potential for increasing electric power production capa- 13
bility at federally owned or operated water regulation, 14
storage, and conveyance facilities. 15
(b) CONTENT.—The study under this section shall in- 16
clude identification and description in detail of each facil- 17
ity that is capable, with or without modification, of pro- 18
ducing additional hydroelectric power, including esti- 19
mation of the existing potential for the facility to generate 20
hydroelectric power. 21
(c) REPORT.—The Secretaries shall submit to the 22
Committees on Energy and Commerce, Resources, and 23
Transportation and Infrastructure of the House of Rep- 24
resentatives and the Committee on Energy and Natural 25
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Resources of the Senate a report on the findings, conclu- 1
sions, and recommendations of the study under this sec- 2
tion by not later than 18 months after the date of the 3
enactment of this Act. The report shall include each of 4
the following: 5
(1) The identifications, descriptions, and esti- 6
mations referred to in subsection (b). 7
(2) A description of activities currently con- 8
ducted or considered, or that could be considered, to 9
produce additional hydroelectric power from each 10
identified facility. 11
(3) A summary of prior actions taken by the 12
Secretaries to produce additional hydroelectric power 13
from each identified facility. 14
(4) The costs to install, upgrade, or modify 15
equipment or take other actions to produce addi- 16
tional hydroelectric power from each identified facil- 17
ity and the level of Federal power customer involve- 18
ment in the determination of such costs. 19
(5) The benefits that would be achieved by such 20
installation, upgrade, modification, or other action, 21
including quantified estimates of any additional en- 22
ergy or capacity from each facility identified under 23
subsection (b). 24
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(6) A description of actions that are planned, 1
underway, or might reasonably be considered to in- 2
crease hydroelectric power production by replacing 3
turbine runners, by performing generator upgrades 4
or rewinds, or construction of pumped storage facili- 5
ties. 6
(7) The impact of increased hydroelectric power 7
production on irrigation, fish, wildlife, Indian tribes, 8
river health, water quality, navigation, recreation, 9
fishing, and flood control. 10
(8) Any additional recommendations to increase 11
hydroelectric power production from, and reduce 12
costs and improve efficiency at, federally owned or 13
operated water regulation, storage, and conveyance 14
facilities. 15
SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERI- 16
ODS. 17
(a) IN GENERAL.—The Secretary of the Interior 18
shall— 19
(1) review electric power consumption by Bu- 20
reau of Reclamation facilities for water pumping 21
purposes; and 22
(2) make such adjustments in such pumping as 23
possible to minimize the amount of electric power 24
consumed for such pumping during periods of peak 25
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electric power consumption, including by performing 1
as much of such pumping as possible during off- 2
peak hours at night. 3
(b) CONSENT OF AFFECTED IRRIGATION CUSTOMERS 4
REQUIRED.—The Secretary may not under this section 5
make any adjustment in pumping at a facility without the 6
consent of each person that has contracted with the 7
United States for delivery of water from the facility for 8
use for irrigation and that would be affected by such ad- 9
justment. 10
(c) EXISTING OBLIGATIONS NOT AFFECTED.—This 11
section shall not be construed to affect any existing obliga- 12
tion of the Secretary to provide electric power, water, or 13
other benefits from Bureau of Reclamation facilities, in- 14
cluding recreational releases. 15
SEC. 246. CORPS OF ENGINEERS HYDROPOWER OPERATION 16
AND MAINTENANCE FUNDING. 17
(a) IN GENERAL.—Notwithstanding the last sentence 18
of section 5 of the Act of December 22, 1944 (commonly 19
known as the ‘‘Flood Control Act of 1944’’) (58 Stat. 890, 20
chapter 665; 16 U.S.C. 825s), the 11th paragraph under 21
the heading ‘‘OFFICE OF THE SECRETARY’’ in title I of 22
the Act of October 12, 1949 (63 Stat. 767, chapter 680; 23
16 U.S.C. 825s–1), the matter under the heading ‘‘CON- 24
TINUING FUND, SOUTHEASTERN POWER ADMINISTRA- 25
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73
TION’’ in title I of the Act of August 31, 1951 (65 Stat. 1
249, chapter 375; 16 U.S.C. 825s–2), section 3302 of title 2
31, United States Code, or any other law, and without 3
further appropriation or fiscal year limitation, for fiscal 4
year 2004 and each fiscal year thereafter, the Adminis- 5
trator of the Southeastern Power Administration, the Ad- 6
ministrator of the Southwestern Power Administration, 7
and the Administrator of the Western Area Power Admin- 8
istration may credit to the Secretary of the Army (referred 9
to in this section as the ‘‘Secretary’’), receipts, in an 10
amount determined under subsection (c), from the sale of 11
power and related services. 12
(b) USE OF FUNDS.— 13
(1) IN GENERAL.—The Secretary— 14
(A) shall, except as provided in paragraph 15
(2), use the amounts credited under subsection 16
(a) to fund only the Corps of Engineers annual 17
operation and maintenance activities that are 18
allocated exclusively to the power function and 19
assigned to the respective power marketing ad- 20
ministration and respective project system as 21
applicable for repayment; and 22
(B) shall not use the amounts for any 23
costs allocated to non-power functions of Corps 24
of Engineer operations. 25
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(2) EXCEPTION.—The Secretary may use 1
amounts credited by the Southwestern Power Ad- 2
ministration under subsection (a) for capital and 3
nonrecurring costs. 4
(c) AMOUNT.—The amount of the receipts credited 5
under subsection (a) shall be equal to such amount as— 6
(1) the Secretary of the Army requests; and 7
(2) the appropriate Administrator, in consulta- 8
tion with the power customers of the Administrator’s 9
power marketing administration, determines to be 10
appropriate to apply to the costs referred to in sub- 11
section (b). 12
(d) APPLICABLE LAW.—The amounts credited under 13
subsection (a) are exempt from sequestration under the 14
Balanced Budget and Emergency Deficit Control Act of 15
1985 (2 U.S.C. 901 et seq.). 16
SEC. 247. LIMITATION ON CERTAIN CHARGES ASSESSED TO 17
THE FLINT CREEK PROJECT, MONTANA. 18
Notwithstanding section 10(e)(1) of the Federal 19
Power Act (16 U.S.C. 803(e)(1)) or any other provision 20
of Federal law providing for the payment to the United 21
States of charges for the use of Federal land for the pur- 22
poses of operating and maintaining a hydroelectric devel- 23
opment licensed by the Federal Energy Regulatory Com- 24
mission (referred to in this section as the ‘‘Commission’’), 25
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75
any political subdivision of the State of Montana that 1
holds a license for Commission Project No. 1473 in Gran- 2
ite and Deer Lodge Counties, Montana, shall be required 3
to pay to the United States for the use of that land for 4
each year during which the political subdivision continues 5
to hold the license for the project, the lesser of— 6
(1) $25,000; or 7
(2) such annual charge as the Commission or 8
any other department or agency of the Federal Gov- 9
ernment may assess. 10
SEC. 248. REINSTATEMENT AND TRANSFER. 11
(a) REINSTATEMENT AND TRANSFER OF FEDERAL 12
LICENSE FOR PROJECT NUMBERED 2696.—Notwith- 13
standing section 8 of the Federal Power Act (16 U.S.C. 14
801) or any other provision of such Act, the Federal En- 15
ergy Regulatory Commission shall reinstate the license for 16
Project No. 2696 and transfer the license, without delay 17
or the institution of any proceedings, to the Town of 18
Stuyvesant, New York, holder of Federal Energy Regu- 19
latory Commission Preliminary Permit No. 11787, within 20
30 days after the date of enactment of this Act. 21
(b) HYDROELECTRIC INCENTIVES.—Project No. 22
2696 shall be entitled to the full benefit of any Federal 23
legislation that promotes hydroelectric development that 24
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76
is enacted within 2 years either before or after the date 1
of enactment of this Act. 2
(c) PROJECT DEVELOPMENT AND FINANCING.—The 3
Federal Energy Regulatory Commission shall permit the 4
Town of Stuyvesant to add as a colicensee any private or 5
public entity or entities to the reinstated license at any 6
time, notwithstanding the issuance of a preliminary permit 7
to the Town of Stuyvesant and any consideration of mu- 8
nicipal preference. The town shall be entitled, to the extent 9
that funds are available or shall be made available, to re- 10
ceive loans under sections 402 and 403 of the Public Util- 11
ity Regulatory Policies Act of 1978 (16 U.S.C. 2702 and 12
2703), or similar programs, for the reimbursement of fea- 13
sibility studies or development costs, or both, incurred 14
since January 1, 2001, through and including December 15
31, 2006. All power produced by the project shall be 16
deemed incremental hydropower for purpose of qualifying 17
for any energy credit or similar benefits. 18
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November 14, 2003 (10:54 AM)

Title III - Oil and Gas

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE III—OIL AND GAS 1
Subtitle A—Petroleum Reserve and 2
Home Heating Oil 3
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRA- 4
TEGIC PETROLEUM RESERVE AND OTHER 5
ENERGY PROGRAMS. 6
(a) AMENDMENT TO TITLE I OF THE ENERGY POL- 7
ICY AND CONSERVATION ACT.—Title I of the Energy Pol- 8
icy and Conservation Act (42 U.S.C. 6211 et seq.) is 9
amended— 10
(1) by striking section 166 (42 U.S.C. 6246) 11
and inserting the following: 12
‘‘AUTHORIZATION OF APPROPRIATIONS 13
‘‘SEC. 166. There are authorized to be appropriated 14
to the Secretary such sums as may be necessary to carry 15
out this part and part D, to remain available until ex- 16
pended.’’; 17
(2) by striking section 186 (42 U.S.C. 6250e); 18
and 19
(3) by striking part E (42 U.S.C. 6251; relat- 20
ing to the expiration of title I of the Act). 21
(b) AMENDMENT TO TITLE II OF THE ENERGY POL- 22
ICY AND CONSERVATION ACT.—Title II of the Energy 23
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Policy and Conservation Act (42 U.S.C. 6271 et seq.) is 1
amended— 2
(1) by inserting before section 273 (42 U.S.C. 3
6283) the following: 4
‘‘PART C—SUMMER FILL AND FUEL BUDGETING 5
PROGRAMS’’; 6
(2) by striking section 273(e) (42 U.S.C. 7
6283(e); relating to the expiration of summer fill 8
and fuel budgeting programs); and 9
(3) by striking part D (42 U.S.C. 6285; relat- 10
ing to the expiration of title II of the Act). 11
(c) TECHNICAL AMENDMENTS.—The table of con- 12
tents for the Energy Policy and Conservation Act is 13
amended— 14
(1) by inserting after the items relating to part 15
C of title I the following: 16
‘‘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 17
title II to read as follows: 18
‘‘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 19
title II. 20
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3
(d) AMENDMENT TO THE ENERGY POLICY AND CON- 1
SERVATION ACT.—Section 183(b)(1) of the Energy Policy 2
and Conservation Act (42 U.S.C. 6250(b)(1)) is amended 3
by striking all after ‘‘increases’’ through to ‘‘mid-October 4
through March’’ and inserting ‘‘by more than 60 percent 5
over its 5-year rolling average for the months of mid-Octo- 6
ber through March (considered as a heating season aver- 7
age)’’. 8
(e) FILL STRATEGIC PETROLEUM RESERVE TO CA- 9
PACITY.—The Secretary of Energy shall, as expeditiously 10
as practicable, acquire petroleum in amounts sufficient to 11
fill the Strategic Petroleum Reserve to the 1,000,000,000 12
barrel capacity authorized under section 154(a) of the En- 13
ergy Policy and Conservation Act (42 U.S.C. 6234(a)), 14
consistent with the provisions of sections 159 and 160 of 15
such Act (42 U.S.C. 6239, 6240). 16
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE. 17
Section 713 of the Energy Act of 2000 (42 U.S.C. 18
6201 note) is amended by striking ‘‘4’’ and inserting ‘‘9’’. 19
Subtitle B—Production Incentives 20
SEC. 311. DEFINITION OF SECRETARY. 21
In this subtitle, the term ‘‘Secretary’’ means the Sec- 22
retary of the Interior. 23
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4
SEC. 312. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND. 1
(a) APPLICABILITY OF SECTION.—Notwithstanding 2
any other provision of law, this section applies to all roy- 3
alty in-kind accepted by the Secretary on or after the date 4
of enactment of this Act under any Federal oil or gas lease 5
or permit under section 36 of the Mineral Leasing Act 6
(30 U.S.C. 192), section 27 of the Outer Continental Shelf 7
Lands Act (43 U.S.C. 1353), or any other Federal law 8
governing leasing of Federal land for oil and gas develop- 9
ment. 10
(b) TERMS AND CONDITIONS.—All royalty accruing 11
to the United States shall, on the demand of the Sec- 12
retary, be paid in oil or gas. If the Secretary makes such 13
a demand, the following provisions apply to such payment: 14
(1) SATISFACTION OF ROYALTY OBLIGATION.— 15
Delivery by, or on behalf of, the lessee of the royalty 16
amount and quality due under the lease satisfies the 17
lessee’s royalty obligation for the amount delivered, 18
except that transportation and processing reimburse- 19
ments paid to, or deductions claimed by, the lessee 20
shall be subject to review and audit. 21
(2) MARKETABLE CONDITION.— 22
(A) IN GENERAL.—Royalty production 23
shall be placed in marketable condition by the 24
lessee at no cost to the United States. 25
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5
(B) DEFINITION OF MARKETABLE CONDI- 1
TION.—In this paragraph, the term ‘‘in market- 2
able condition’’ means sufficiently free from im- 3
purities and otherwise in a condition that the 4
royalty production will be accepted by a pur- 5
chaser under a sales contract typical of the field 6
or area in which the royalty production was 7
produced. 8
(3) DISPOSITION BY THE SECRETARY.—The 9
Secretary may— 10
(A) sell or otherwise dispose of any royalty 11
production taken in-kind (other than oil or gas 12
transferred under section 27(a)(3) of the Outer 13
Continental Shelf Lands Act (43 U.S.C. 14
1353(a)(3)) for not less than the market price; 15
and 16
(B) transport or process (or both) any roy- 17
alty production taken in-kind. 18
(4) RETENTION BY THE SECRETARY.—The Sec- 19
retary may, notwithstanding section 3302 of title 31, 20
United States Code, retain and use a portion of the 21
revenues from the sale of oil and gas taken in-kind 22
that otherwise would be deposited to miscellaneous 23
receipts, without regard to fiscal year limitation, or 24
may use oil or gas received as royalty taken in-kind 25
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6
(in this paragraph referred to as ‘‘royalty produc- 1
tion’’) to pay the cost of— 2
(A) transporting the royalty production; 3
(B) processing the royalty production; 4
(C) disposing of the royalty production; or 5
(D) any combination of transporting, proc- 6
essing, and disposing of the royalty production. 7
(5) LIMITATION.— 8
(A) IN GENERAL.—Except as provided in 9
subparagraph (B), the Secretary may not use 10
revenues from the sale of oil and gas taken in- 11
kind to pay for personnel, travel, or other ad- 12
ministrative costs of the Federal Government. 13
(B) EXCEPTION.—Notwithstanding sub- 14
paragraph (A), the Secretary may use a portion 15
of the revenues from the sale of oil taken in- 16
kind, without fiscal year limitation, to pay 17
transportation costs, salaries, and other admin- 18
istrative costs directly related to filling the 19
Strategic Petroleum Reserve. 20
(c) REIMBURSEMENT OF COST.—If the lessee, pursu- 21
ant to an agreement with the United States or as provided 22
in the lease, processes the royalty gas or delivers the roy- 23
alty oil or gas at a point not on or adjacent to the lease 24
area, the Secretary shall— 25
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November 14, 2003 (10:56 AM)
7
(1) reimburse the lessee for the reasonable costs 1
of transportation (not including gathering) from the 2
lease to the point of delivery or for processing costs; 3
or 4
(2) allow the lessee to deduct the transportation 5
or processing costs in reporting and paying royalties 6
in-value for other Federal oil and gas leases. 7
(d) BENEFIT TO THE UNITED STATES REQUIRED.— 8
The Secretary may receive oil or gas royalties in-kind only 9
if the Secretary determines that receiving royalties in-kind 10
provides benefits to the United States that are greater 11
than or equal to the benefits that are likely to have been 12
received had royalties been taken in-value. 13
(e) REPORTS.— 14
(1) IN GENERAL.—Not later than September 15
30, 2005, the Secretary shall submit to Congress a 16
report that addresses— 17
(A) actions taken to develop businesses 18
processes and automated systems to fully sup- 19
port the royalty-in-kind capability to be used in 20
tandem with the royalty-in-value approach in 21
managing Federal oil and gas revenue; and 22
(B) future royalty-in-kind businesses oper- 23
ation plans and objectives. 24
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8
(2) REPORTS ON OIL OR GAS ROYALTIES TAKEN 1
IN-KIND.—For each of fiscal years 2004 through 2
2013 in which the United States takes oil or gas 3
royalties in-kind from production in any State or 4
from the outer Continental Shelf, excluding royalties 5
taken in-kind and sold to refineries under subsection 6
(h), the Secretary shall submit to Congress a report 7
that describes— 8
(A) the methodology or methodologies used 9
by the Secretary to determine compliance with 10
subsection (d), including the performance 11
standard for comparing amounts received by 12
the United States derived from royalties in-kind 13
to amounts likely to have been received had roy- 14
alties been taken in-value; 15
(B) an explanation of the evaluation that 16
led the Secretary to take royalties in-kind from 17
a lease or group of leases, including the ex- 18
pected revenue effect of taking royalties in-kind; 19
(C) actual amounts received by the United 20
States derived from taking royalties in-kind and 21
costs and savings incurred by the United States 22
associated with taking royalties in-kind, includ- 23
ing, but not limited to, administrative savings 24
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November 14, 2003 (10:56 AM)
9
and any new or increased administrative costs; 1
and 2
(D) an evaluation of other relevant public 3
benefits or detriments associated with taking 4
royalties in-kind. 5
(f) DEDUCTION OF EXPENSES.— 6
(1) IN GENERAL.—Before making payments 7
under section 35 of the Mineral Leasing Act (30 8
U.S.C. 191) or section 8(g) of the Outer Continental 9
Shelf Lands Act (43 U.S.C. 1337(g)) of revenues 10
derived from the sale of royalty production taken in- 11
kind from a lease, the Secretary shall deduct 12
amounts paid or deducted under subsections (b)(4) 13
and (c) and deposit the amount of the deductions in 14
the miscellaneous receipts of the United States 15
Treasury. 16
(2) ACCOUNTING FOR DEDUCTIONS.—When the 17
Secretary allows the lessee to deduct transportation 18
or processing costs under subsection (c), the Sec- 19
retary may not reduce any payments to recipients of 20
revenues derived from any other Federal oil and gas 21
lease as a consequence of that deduction. 22
(g) CONSULTATION WITH STATES.—The Secretary— 23
(1) shall consult with a State before conducting 24
a royalty in-kind program under this subtitle within 25
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November 14, 2003 (10:56 AM)
10
the State, and may delegate management of any 1
portion of the Federal royalty in-kind program to 2
the State except as otherwise prohibited by Federal 3
law; and 4
(2) shall consult annually with any State from 5
which Federal oil or gas royalty is being taken in- 6
kind to ensure, to the maximum extent practicable, 7
that the royalty in-kind program provides revenues 8
to the State greater than or equal to those likely to 9
have been received had royalties been taken in-value. 10
(h) SMALL REFINERIES.— 11
(1) PREFERENCE.—If the Secretary finds that 12
sufficient supplies of crude oil are not available in 13
the open market to refineries that do not have their 14
own source of supply for crude oil, the Secretary 15
may grant preference to such refineries in the sale 16
of any royalty oil accruing or reserved to the United 17
States under Federal oil and gas leases issued under 18
any mineral leasing law, for processing or use in 19
such refineries at private sale at not less than the 20
market price. 21
(2) PRORATION AMONG REFINERIES IN PRO- 22
DUCTION AREA.—In disposing of oil under this sub- 23
section, the Secretary of Energy may, at the discre- 24
tion of the Secretary, prorate the oil among refin- 25
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November 14, 2003 (10:56 AM)
11
eries described in paragraph (1) in the area in which 1
the oil is produced. 2
(i) DISPOSITION TO FEDERAL AGENCIES.— 3
(1) ONSHORE ROYALTY.—Any royalty oil or gas 4
taken by the Secretary in-kind from onshore oil and 5
gas leases may be sold at not less than the market 6
price to any Federal agency. 7
(2) OFFSHORE ROYALTY.—Any royalty oil or 8
gas taken in-kind from a Federal oil or gas lease on 9
the outer Continental Shelf may be disposed of only 10
under section 27 of the Outer Continental Shelf 11
Lands Act (43 U.S.C. 1353). 12
(j) FEDERAL LOW-INCOME ENERGY ASSISTANCE 13
PROGRAMS.— 14
(1) PREFERENCE.—In disposing of royalty oil 15
or gas taken in-kind under this section, the Sec- 16
retary may grant a preference to any person, includ- 17
ing any Federal or State agency, for the purpose of 18
providing additional resources to any Federal low-in- 19
come energy assistance program. 20
(2) REPORT.—Not later than 3 years after the 21
date of enactment of this Act, the Secretary shall 22
transmit a report to Congress, assessing the effec- 23
tiveness of granting preferences specified in para- 24
graph (1) and providing a specific recommendation 25
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November 14, 2003 (10:56 AM)
12
on the continuation of authority to grant pref- 1
erences. 2
SEC. 313. MARGINAL PROPERTY PRODUCTION INCENTIVES. 3
(a) DEFINITION OF MARGINAL PROPERTY.—Until 4
such time as the Secretary issues regulations under sub- 5
section (e) that prescribe a different definition, in this sec- 6
tion the term ‘‘marginal property’’ means an onshore unit, 7
communitization agreement, or lease not within a unit or 8
communitization agreement, that produces on average the 9
combined equivalent of less than 15 barrels of oil per well 10
per day or 90 million British thermal units of gas per well 11
per day calculated based on the average over the 3 most 12
recent production months, including only wells that 13
produce on more than half of the days during those 3 pro- 14
duction months. 15
(b) CONDITIONS FOR REDUCTION OF ROYALTY 16
RATE.—Until such time as the Secretary issues regula- 17
tions under subsection (e) that prescribe different thresh- 18
olds or standards, the Secretary shall reduce the royalty 19
rate on— 20
(1) oil production from marginal properties as 21
prescribed in subsection (c) when the spot price of 22
West Texas Intermediate crude oil at Cushing, Okla- 23
homa, is, on average, less than $15 per barrel for 90 24
consecutive trading days; and 25
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13
(2) gas production from marginal properties as 1
prescribed in subsection (c) when the spot price of 2
natural gas delivered at Henry Hub, Louisiana, is, 3
on average, less than $2.00 per million British ther- 4
mal units for 90 consecutive trading days. 5
(c) REDUCED ROYALTY RATE.— 6
(1) IN GENERAL.—When a marginal property 7
meets the conditions specified in subsection (b), the 8
royalty rate shall be the lesser of— 9
(A) 5 percent; or 10
(B) the applicable rate under any other 11
statutory or regulatory royalty relief provision 12
that applies to the affected production. 13
(2) PERIOD OF EFFECTIVENESS.—The reduced 14
royalty rate under this subsection shall be effective 15
beginning on the first day of the production month 16
following the date on which the applicable condition 17
specified in subsection (b) is met. 18
(d) TERMINATION OF REDUCED ROYALTY RATE.— 19
A royalty rate prescribed in subsection (d)(1)(A) shall 20
terminate— 21
(1) with respect to oil production from a mar- 22
ginal property, on the first day of the production 23
month following the date on which— 24
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November 14, 2003 (10:56 AM)
14
(A) the spot price of West Texas Inter- 1
mediate crude oil at Cushing, Oklahoma, on av- 2
erage, exceeds $15 per barrel for 90 consecutive 3
trading days; or 4
(B) the property no longer qualifies as a 5
marginal property; and 6
(2) with respect to gas production from a mar- 7
ginal property, on the first day of the production 8
month following the date on which— 9
(A) the spot price of natural gas delivered 10
at Henry Hub, Louisiana, on average, exceeds 11
$2.00 per million British thermal units for 90 12
consecutive trading days; or 13
(B) the property no longer qualifies as a 14
marginal property. 15
(e) REGULATIONS PRESCRIBING DIFFERENT RE- 16
LIEF.— 17
(1) DISCRETIONARY REGULATIONS.—The Sec- 18
retary may by regulation prescribe different param- 19
eters, standards, and requirements for, and a dif- 20
ferent degree or extent of, royalty relief for marginal 21
properties in lieu of those prescribed in subsections 22
(a) through (d). 23
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15
(2) MANDATORY REGULATIONS.—Not later 1
than 18 months after the date of enactment of this 2
Act, the Secretary shall by regulation— 3
(A) prescribe standards and requirements 4
for, and the extent of royalty relief for, mar- 5
ginal properties for oil and gas leases on the 6
outer Continental Shelf; and 7
(B) define what constitutes a marginal 8
property on the outer Continental Shelf for pur- 9
poses of this section. 10
(3) CONSIDERATIONS.—In promulgating regu- 11
lations under this subsection, the Secretary may 12
consider— 13
(A) oil and gas prices and market trends; 14
(B) production costs; 15
(C) abandonment costs; 16
(D) Federal and State tax provisions and 17
the effects of those provisions on production ec- 18
onomics; 19
(E) other royalty relief programs; 20
(F) regional differences in average well- 21
head prices; 22
(G) national energy security issues; and 23
(H) other relevant matters. 24
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16
(f) SAVINGS PROVISION.—Nothing in this section 1
prevents a lessee from receiving royalty relief or a royalty 2
reduction pursuant to any other law (including a regula- 3
tion) that provides more relief than the amounts provided 4
by this section. 5
SEC. 314. INCENTIVES FOR NATURAL GAS PRODUCTION 6
FROM DEEP WELLS IN THE SHALLOW WA- 7
TERS OF THE GULF OF MEXICO. 8
(a) ROYALTY INCENTIVE REGULATIONS.—The Sec- 9
retary shall publish a final regulation to complete the rule- 10
making begun by the Notice of Proposed Rulemaking enti- 11
tled ‘‘Relief or Reduction in Royalty Rates—Deep Gas 12
Provisions’’, published in the Federal Register on March 13
26, 2003 (Federal Register, volume 68, number 58, 14
14868-14886). 15
(b) ROYALTY INCENTIVE REGULATIONS FOR ULTRA 16
DEEP GAS WELLS.— 17
(1) IN GENERAL.—Not later than 180 days 18
after the date of enactment of this Act, in addition 19
to any other regulations that may provide royalty in- 20
centives for natural gas produced from deep wells on 21
oil and gas leases issued pursuant to the Outer Con- 22
tinental Shelf Lands Act (43 U.S.C. 1331 et seq.), 23
the Secretary shall issue regulations, in accordance 24
with the regulations published pursuant to sub- 25
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November 14, 2003 (10:56 AM)
17
section (a), granting royalty relief suspension vol- 1
umes of not less than 35,000,000,000 cubic feet 2
with respect to the production of natural gas from 3
ultra deep wells on leases issued before January 1, 4
2001, in shallow waters less than 200 meters deep 5
located in the Gulf of Mexico wholly west of 87 de- 6
grees, 30 minutes West longitude. Regulations 7
issued under this subsection shall be retroactive to 8
the date that the Notice of Proposed Rulemaking is 9
published in the Federal Register. 10
(2) DEFINITION OF ULTRA DEEP WELL.—In 11
this subsection, the term ‘‘ultra deep well’’ means a 12
well drilled with a perforated interval, the top of 13
which is at least 20,000 feet true vertical depth 14
below the datum at mean sea level. 15
SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUC- 16
TION. 17
(a) IN GENERAL.—For all tracts located in water 18
depths of greater than 400 meters in the Western and 19
Central Planning Area of the Gulf of Mexico, including 20
the portion of the Eastern Planning Area of the Gulf of 21
Mexico encompassing whole lease blocks lying west of 87 22
degrees, 30 minutes West longitude, any oil or gas lease 23
sale under the Outer Continental Shelf Lands Act (43 24
U.S.C. 1331 et seq.) occurring within 5 years after the 25
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18
date of enactment of this Act shall use the bidding system 1
authorized in section 8(a)(1)(H) of the Outer Continental 2
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)), except that 3
the suspension of royalties shall be set at a volume of not 4
less than— 5
(1) 5,000,000 barrels of oil equivalent for each 6
lease in water depths of 400 to 800 meters; 7
(2) 9,000,000 barrels of oil equivalent for each 8
lease in water depths of 800 to 1,600 meters; and 9
(3) 12,000,000 barrels of oil equivalent for each 10
lease in water depths greater than 1,600 meters. 11
(b) LIMITATION.—The Secretary may place limita- 12
tions on the suspension of royalty relief granted based on 13
market price. 14
SEC. 316. ALASKA OFFSHORE ROYALTY SUSPENSION. 15
Section 8(a)(3)(B) of the Outer Continental Shelf 16
Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by in- 17
serting ‘‘and in the Planning Areas offshore Alaska’’ after 18
‘‘West longitude’’. 19
SEC. 317. OIL AND GAS LEASING IN THE NATIONAL PETRO- 20
LEUM RESERVE IN ALASKA. 21
(a) TRANSFER OF AUTHORITY.— 22
(1) REDESIGNATION.—The Naval Petroleum 23
Reserves Production Act of 1976 (42 U.S.C. 6501 24
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November 14, 2003 (10:56 AM)
19
et seq.) is amended by redesignating section 107 (42 1
U.S.C. 6507) as section 108. 2
(2) TRANSFER.—The matter under the heading 3
‘‘EXPLORATION OF NATIONAL PETROLEUM RESERVE 4
IN ALASKA’’ under the heading ‘‘ENERGY AND 5
MINERALS’’ of title I of Public Law 96-514 (42 6
U.S.C. 6508) is— 7
(A) transferred to the Naval Petroleum 8
Reserves Production Act of 1976 (42 U.S.C. 9
6501 et seq.); 10
(B) redesignated as section 107 of that 11
Act; and 12
(C) moved so as to appear after section 13
106 of that Act (42 U.S.C. 6506). 14
(b) COMPETITIVE LEASING.—Section 107 of the 15
Naval Petroleum Reserves Production Act of 1976 (as 16
amended by subsection (a) of this section) is amended— 17
(1) by striking the heading and all that follows 18
through ‘‘Provided, That (1) activities’’ and insert- 19
ing the following: 20
‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND GAS. 21
‘‘(a) IN GENERAL.—Notwithstanding any other pro- 22
vision of law and pursuant to regulations issued by the 23
Secretary, the Secretary shall conduct an expeditious pro- 24
gram of competitive leasing of oil and gas in the National 25
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November 14, 2003 (10:56 AM)
20
Petroleum Reserve in Alaska (referred to in this section 1
as the ‘Reserve’). 2
‘‘(b) MITIGATION OF ADVERSE EFFECTS.—Activi- 3
ties’’; 4
(2) by striking ‘‘Alaska (the Reserve); (2) the’’ 5
and inserting ‘‘Alaska. 6
‘‘(c) LAND USE PLANNING; BLM WILDERNESS 7
STUDY.—The’’; 8
(3) by striking ‘‘Reserve; (3) the’’ and inserting 9
‘‘Reserve. 10
‘‘(d) FIRST LEASE SALE.—The’’; 11
(4) by striking ‘‘4332); (4) the’’ and inserting 12
‘‘4321 et seq.). 13
‘‘(e) WITHDRAWALS.—The’’; 14
(5) by striking ‘‘herein; (5) bidding’’ and insert- 15
ing ‘‘under this section. 16
‘‘(f) BIDDING SYSTEMS.—Bidding’’; 17
(6) by striking ‘‘629); (6) lease’’ and inserting 18
‘‘629). 19
‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’; 20
(7) by striking ‘‘structures; (7) the’’ and insert- 21
ing ‘‘structures. 22
‘‘(h) SIZE OF LEASE TRACTS.—The’’; 23
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21
(8) by striking ‘‘Secretary; (8)’’ and all that fol- 1
lows through ‘‘Drilling, production,’’ and inserting 2
‘‘Secretary. 3
‘‘(i) TERMS.— 4
‘‘(1) IN GENERAL.—Each lease shall be— 5
‘‘(A) issued for an initial period of not 6
more than 10 years; and 7
‘‘(B) renewed for successive 10-year terms 8
if— 9
‘‘(i) oil or gas is produced from the 10
lease in paying quantities; 11
‘‘(ii) oil or gas is capable of being pro- 12
duced in paying quantities; or 13
‘‘(iii) drilling or reworking operations, 14
as approved by the Secretary, are con- 15
ducted on the leased land. 16
‘‘(2) RENEWAL OF NONPRODUCING LEASES.— 17
The Secretary shall renew for an additional 10-year 18
term a lease that does not meet the requirements of 19
paragraph (1)(B) if the lessee submits to the Sec- 20
retary an application for renewal not later than 60 21
days before the expiration of the primary lease 22
and— 23
‘‘(A) the lessee certifies, and the Secretary 24
agrees, that hydrocarbon resources were discov- 25
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November 14, 2003 (10:56 AM)
22
ered on 1 or more wells drilled on the leased 1
land in such quantities that a prudent operator 2
would hold the lease for potential future devel- 3
opment; 4
‘‘(B) the lessee— 5
‘‘(i) pays the Secretary a renewal fee 6
of $100 per acre of leased land; and 7
‘‘(ii) provides evidence, and the Sec- 8
retary agrees that, the lessee has diligently 9
pursued exploration that warrants continu- 10
ation with the intent of continued explo- 11
ration or future development of the leased 12
land; or 13
‘‘(C) all or part of the lease— 14
‘‘(i) is part of a unit agreement cov- 15
ering a lease described in subparagraph 16
(A) or (B); and 17
‘‘(ii) has not been previously con- 18
tracted out of the unit. 19
‘‘(3) APPLICABILITY.—This subsection applies 20
to a lease that— 21
‘‘(A) is entered into before, on, or after the 22
date of enactment of the Energy Policy Act of 23
2003; and 24
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23
‘‘(B) is effective on or after the date of en- 1
actment of that Act. 2
‘‘(j) UNIT AGREEMENTS.— 3
‘‘(1) IN GENERAL.—For the purpose of con- 4
servation of the natural resources of all or part of 5
any oil or gas pool, field, reservoir, or like area, les- 6
sees (including representatives) of the pool, field, 7
reservoir, or like area may unite with each other, or 8
jointly or separately with others, in collectively 9
adopting and operating under a unit agreement for 10
all or part of the pool, field, reservoir, or like area 11
(whether or not any other part of the oil or gas pool, 12
field, reservoir, or like area is already subject to any 13
cooperative or unit plan of development or oper- 14
ation), if the Secretary determines the action to be 15
necessary or advisable in the public interest. 16
‘‘(2) PARTICIPATION BY STATE OF ALASKA.— 17
The Secretary shall ensure that the State of Alaska 18
is provided the opportunity for active participation 19
concerning creation and management of units 20
formed or expanded under this subsection that in- 21
clude acreage in which the State of Alaska has an 22
interest in the mineral estate. 23
‘‘(3) PARTICIPATION BY REGIONAL CORPORA- 24
TIONS.—The Secretary shall ensure that any Re- 25
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November 14, 2003 (10:56 AM)
24
gional Corporation (as defined in section 3 of the 1
Alaska Native Claims Settlement Act (43 U.S.C. 2
1602)) is provided the opportunity for active partici- 3
pation concerning creation and management of units 4
that include acreage in which the Regional Corpora- 5
tion has an interest in the mineral estate. 6
‘‘(4) PRODUCTION ALLOCATION METHOD- 7
OLOGY.—The Secretary may use a production alloca- 8
tion methodology for each participating area within 9
a unit created for land in the Reserve, State of Alas- 10
ka land, or Regional Corporation land shall, when 11
appropriate, be based on the characteristics of each 12
specific oil or gas pool, field, reservoir, or like area 13
to take into account reservoir heterogeneity and a 14
real variation in reservoir producibility across diverse 15
leasehold interests. 16
‘‘(5) BENEFIT OF OPERATIONS.—Drilling, pro- 17
duction,’’; 18
(9) by striking ‘‘When separate’’ and inserting 19
the following: 20
‘‘(6) POOLING.—If separate’’; 21
(10) by inserting ‘‘(in consultation with the 22
owners of the other land)’’ after ‘‘determined by the 23
Secretary of the Interior’’; 24
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November 14, 2003 (10:56 AM)
25
(11) by striking ‘‘thereto; (10) to’’ and all that 1
follows through ‘‘the terms provided therein’’ and in- 2
serting ‘‘to the agreement. 3
‘‘(k) EXPLORATION INCENTIVES.— 4
‘‘(1) IN GENERAL.— 5
‘‘(A) WAIVER, SUSPENSION, OR REDUC- 6
TION.—To encourage the greatest ultimate re- 7
covery of oil or gas or in the interest of con- 8
servation, the Secretary may waive, suspend, or 9
reduce the rental fees or minimum royalty, or 10
reduce the royalty on an entire leasehold (in- 11
cluding on any lease operated pursuant to a 12
unit agreement), if (after consultation with the 13
State of Alaska and the North Slope Borough 14
of Alaska and the concurrence of any Regional 15
Corporation for leases that include lands avail- 16
able for acquisition by the Regional Corporation 17
under the provisions of section 1431(o) of the 18
Alaska National Interest Lands Conservation 19
Act (16 U.S.C. 3101 et seq.)) the Secretary de- 20
termines that the waiver, suspension, or reduc- 21
tion is in the public interest. 22
‘‘(B) APPLICABILITY.—This paragraph ap- 23
plies to a lease that— 24
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November 14, 2003 (10:56 AM)
26
‘‘(i) is entered into before, on, or after 1
the date of enactment of the Energy Policy 2
Act of 2003; and 3
‘‘(ii) is effective on or after the date 4
of enactment of that Act.’’; 5
(12) by striking ‘‘The Secretary is authorized 6
to’’ and inserting the following: 7
‘‘(2) SUSPENSION OF OPERATIONS AND PRO- 8
DUCTION.—The Secretary may’’; 9
(13) by striking ‘‘In the event’’ and inserting 10
the following: 11
‘‘(3) SUSPENSION OF PAYMENTS.—If’’; 12
(14) by striking ‘‘thereto; and (11) all’’ and in- 13
serting ‘‘to the lease. 14
‘‘(l) RECEIPTS.—All’’; 15
(15) by redesignating clauses (A), (B), and (C) 16
as clauses (1), (2), and (3), respectively; 17
(16) by striking ‘‘Any agency’’ and inserting 18
the following: 19
‘‘(m) EXPLORATIONS.—Any agency’’; 20
(17) by striking ‘‘Any action’’ and inserting the 21
following: 22
‘‘(n) ENVIRONMENTAL IMPACT STATEMENTS.— 23
‘‘(1) JUDICIAL REVIEW.—Any action’’; 24
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November 14, 2003 (10:56 AM)
27
(18) by striking ‘‘The detailed’’ and inserting 1
the following: 2
‘‘(2) INITIAL LEASE SALES.—The detailed’’; 3
(19) by striking ‘‘of the Naval Petroleum Re- 4
serves Production Act of 1976 (90 Stat. 304; 42 5
U.S.C. 6504)’’; and 6
(20) by adding at the end the following: 7
‘‘(o) WAIVER OF ADMINISTRATION FOR CONVEYED 8
LANDS.—Notwithstanding section 14(g) of the Alaska 9
Native Claims Settlement Act (43 U.S.C. 1613(g)) or any 10
other provision of law— 11
‘‘(1) the Secretary of the Interior shall waive 12
administration of any oil and gas lease insofar as 13
such lease covers any land in the National Petro- 14
leum Reserve in Alaska in which the subsurface es- 15
tate is conveyed to the Arctic Slope Regional Cor- 16
poration; and 17
‘‘(2) if any such conveyance of such subsurface 18
estate does not cover all the land embraced within 19
any such oil and gas lease— 20
‘‘(A) the person who owns the subsurface 21
estate in any particular portion of the land cov- 22
ered by such lease shall be entitled to all of the 23
revenues reserved under such lease as to such 24
portion, including, without limitation, all the 25
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November 14, 2003 (10:56 AM)
28
royalty payable with respect to oil or gas pro- 1
duced from or allocated to such particular por- 2
tion of the land covered by such lease; and 3
‘‘(B) the Secretary of the Interior shall 4
segregate such lease into 2 leases, 1 of which 5
shall cover only the subsurface estate conveyed 6
to the Arctic Slope Regional Corporation, and 7
operations, production, or other circumstances 8
(other than payment of rentals or royalties) 9
that satisfy obligations of the lessee under, or 10
maintain, either of the segregated leases shall 11
likewise satisfy obligations of the lessee under, 12
or maintain, the other segregated lease to the 13
same extent as if such segregated leases re- 14
mained a part of the original unsegregated 15
lease.’’. 16
SEC. 318. ORPHANED, ABANDONED, OR IDLED WELLS ON 17
FEDERAL LAND. 18
(a) IN GENERAL.—The Secretary, in cooperation 19
with the Secretary of Agriculture, shall establish a pro- 20
gram not later than 1 year after the date of enactment 21
of this Act to remediate, reclaim, and close orphaned, 22
abandoned, or idled oil and gas wells located on land ad- 23
ministered by the land management agencies within the 24
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29
Department of the Interior and the Department of Agri- 1
culture. 2
(b) ACTIVITIES.—The program under subsection (a) 3
shall— 4
(1) include a means of ranking orphaned, aban- 5
doned, or idled wells sites for priority in remedi- 6
ation, reclamation, and closure, based on public 7
health and safety, potential environmental harm, 8
and other land use priorities; 9
(2) provide for identification and recovery of 10
the costs of remediation, reclamation, and closure 11
from persons or other entities currently providing a 12
bond or other financial assurance required under 13
State or Federal law for an oil or gas well that is 14
orphaned, abandoned, or idled; and 15
(3) provide for recovery from the persons or en- 16
tities identified under paragraph (2), or their sure- 17
ties or guarantors, of the costs of remediation, rec- 18
lamation, and closure of such wells. 19
(c) COOPERATION AND CONSULTATIONS.—In car- 20
rying out the program under subsection (a), the Secretary 21
shall— 22
(1) work cooperatively with the Secretary of Ag- 23
riculture and the States within which Federal land 24
is located; and 25
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November 14, 2003 (10:56 AM)
30
(2) consult with the Secretary of Energy and 1
the Interstate Oil and Gas Compact Commission. 2
(d) PLAN.—Not later than 1 year after the date of 3
enactment of this Act, the Secretary, in cooperation with 4
the Secretary of Agriculture, shall submit to Congress a 5
plan for carrying out the program under subsection (a). 6
(e) IDLED WELL.—For the purposes of this section, 7
a well is idled if— 8
(1) the well has been nonoperational for at least 9
7 years; and 10
(2) there is no anticipated beneficial use for the 11
well. 12
(f) TECHNICAL ASSISTANCE PROGRAM FOR NON- 13
FEDERAL LAND.— 14
(1) IN GENERAL.—The Secretary of Energy 15
shall establish a program to provide technical and fi- 16
nancial assistance to oil and gas producing States to 17
facilitate State efforts over a 10-year period to en- 18
sure a practical and economical remedy for environ- 19
mental problems caused by orphaned or abandoned 20
oil and gas exploration or production well sites on 21
State or private land. 22
(2) ASSISTANCE.—The Secretary of Energy 23
shall work with the States, through the Interstate 24
Oil and Gas Compact Commission, to assist the 25
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November 14, 2003 (10:56 AM)
31
States in quantifying and mitigating environmental 1
risks of onshore orphaned or abandoned oil or gas 2
wells on State and private land. 3
(3) ACTIVITIES.—The program under para- 4
graph (1) shall include— 5
(A) mechanisms to facilitate identification, 6
if feasible, of the persons currently providing a 7
bond or other form of financial assurance re- 8
quired under State or Federal law for an oil or 9
gas well that is orphaned or abandoned; 10
(B) criteria for ranking orphaned or aban- 11
doned well sites based on factors such as public 12
health and safety, potential environmental 13
harm, and other land use priorities; 14
(C) information and training programs on 15
best practices for remediation of different types 16
of sites; and 17
(D) funding of State mitigation efforts on 18
a cost-shared basis. 19
(g) FEDERAL REIMBURSEMENT FOR ORPHANED 20
WELL RECLAMATION PILOT PROGRAM.— 21
(1) REIMBURSEMENT FOR REMEDIATING, RE- 22
CLAIMING, AND CLOSING WELLS ON LAND SUBJECT 23
TO A NEW LEASE.—The Secretary shall carry out a 24
pilot program under which, in issuing a new oil and 25
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November 14, 2003 (10:56 AM)
32
gas lease on federally owned land on which 1 or 1
more orphaned wells are located, the Secretary— 2
(A) may require, but not as a condition of 3
the lease, that the lessee remediate, reclaim, 4
and close in accordance with standards estab- 5
lished by the Secretary, all orphaned wells on 6
the land leased; and 7
(B) shall develop a program to reimburse 8
a lessee, through a royalty credit against the 9
Federal share of royalties owed or other means, 10
for the reasonable actual costs of remediating, 11
reclaiming, and closing the orphaned well pur- 12
suant to that requirement. 13
(2) REIMBURSEMENT FOR RECLAIMING OR- 14
PHANED WELLS ON OTHER LAND.—In carrying out 15
this subsection, the Secretary— 16
(A) may authorize any lessee under an oil 17
and gas lease on federally owned land to re- 18
claim in accordance with the Secretary’s 19
standards— 20
(i) an orphaned well on unleased fed- 21
erally owned land; or 22
(ii) an orphaned well located on an ex- 23
isting lease on federally owned land for the 24
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November 14, 2003 (10:56 AM)
33
reclamation of which the lessee is not le- 1
gally responsible; and 2
(B) shall develop a program to provide re- 3
imbursement of 115 percent of the reasonable 4
actual costs of remediating, reclaiming, and 5
closing the orphaned well, through credits 6
against the Federal share of royalties or other 7
means. 8
(3) EFFECT OF REMEDIATION, RECLAMATION, 9
OR CLOSURE OF WELL PURSUANT TO AN APPROVED 10
REMEDIATION PLAN.— 11
(A) DEFINITION OF REMEDIATING 12
PARTY.—In this paragraph the term ‘‘remedi- 13
ating party’’ means a person who remediates, 14
reclaims, or closes an abandoned, orphaned, or 15
idled well pursuant to this subsection. 16
(B) GENERAL RULE.—A remediating party 17
who remediates, reclaims, or closes an aban- 18
doned, orphaned, or idled well in accordance 19
with a detailed written remediation plan ap- 20
proved by the Secretary under this subsection, 21
shall be immune from civil liability under Fed- 22
eral environmental laws, for— 23
(i) pre-existing environmental condi- 24
tions at or associated with the well, unless 25
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34
the remediating party owns or operates, in 1
the past owned or operated, or is related to 2
a person that owns or operates or in the 3
past owned or operated, the well or the 4
land on which the well is located; or 5
(ii) any remaining releases of pollut- 6
ants from the well during or after comple- 7
tion of the remediation, reclamation, or 8
closure of the well, unless the remediating 9
party causes increased pollution as a result 10
of activities that are not in accordance 11
with the approved remediation plan. 12
(C) LIMITATIONS.—Nothing in this section 13
shall limit in any way the liability of a remedi- 14
ating party for injury, damage, or pollution re- 15
sulting from the remediating party’s acts or 16
omissions that are not in accordance with the 17
approved remediation plan, are reckless or will- 18
ful, constitute gross negligence or wanton mis- 19
conduct, or are unlawful. 20
(4) REGULATIONS.—The Secretary may issue 21
such regulations as are appropriate to carry out this 22
subsection. 23
(h) AUTHORIZATION OF APPROPRIATIONS.— 24
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35
(1) IN GENERAL.—There are authorized to be 1
appropriated to carry out this section $25,000,000 2
for each of fiscal years 2005 through 2009. 3
(2) USE.—Of the amounts authorized under 4
paragraph (1), $5,000,000 are authorized for each 5
fiscal year for activities under subsection (f). 6
SEC. 319. COMBINED HYDROCARBON LEASING. 7
(a) SPECIAL PROVISIONS REGARDING LEASING.— 8
Section 17(b)(2) of the Mineral Leasing Act (30 U.S.C. 9
226(b)(2)) is amended— 10
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 11
(2) by adding at the end the following: 12
‘‘(B) For any area that contains any combination of 13
tar sand and oil or gas (or both), the Secretary may issue 14
under this Act, separately— 15
‘‘(i) a lease for exploration for and extraction of 16
tar sand; and 17
‘‘(ii) a lease for exploration for and development 18
of oil and gas. 19
‘‘(C) A lease issued for tar sand shall be issued using 20
the same bidding process, annual rental, and posting pe- 21
riod as a lease issued for oil and gas, except that the min- 22
imum acceptable bid required for a lease issued for tar 23
sand shall be $2 per acre. 24
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36
‘‘(D) The Secretary may waive, suspend, or alter any 1
requirement under section 26 that a permittee under a 2
permit authorizing prospecting for tar sand must exercise 3
due diligence, to promote any resource covered by a com- 4
bined hydrocarbon lease.’’. 5
(b) CONFORMING AMENDMENT.—Section 6
17(b)(1)(B) of the Mineral Leasing Act (30 U.S.C. 7
226(b)(1)(B)) is amended in the second sentence by in- 8
serting ‘‘, subject to paragraph (2)(B),’’ after ‘‘Sec- 9
retary’’. 10
(c) REGULATIONS.—Not later than 45 days after the 11
date of enactment of this Act, the Secretary shall issue 12
final regulations to implement this section. 13
SEC. 320. LIQUIFIED NATURAL GAS. 14
Section 3 of the Natural Gas Act (15 U.S.C. 717b) 15
is amended by adding at the end the following: 16
‘‘(d) LIMITATION ON COMMISSION AUTHORITY.—If 17
an applicant under this section proposes to construct or 18
expand a liquified natural gas terminal either onshore or 19
in State waters for the purpose of importing liquified nat- 20
ural gas into the United States, the Commission shall not 21
deny or condition the application solely on the basis that 22
the applicant proposes to utilize the terminal exclusively 23
or partially for gas that the applicant or any affiliate 24
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37
thereof will supply thereto. In all other respects, sub- 1
section (a) shall remain applicable to any such proposal.’’. 2
SEC. 321. ALTERNATE ENERGY-RELATED USES ON THE 3
OUTER CONTINENTAL SHELF. 4
(a) AMENDMENT TO OUTER CONTINENTAL SHELF 5
LANDS ACT.—Section 8 of the Outer Continental Shelf 6
Lands Act (43 U.S.C. 1337) is amended by adding at the 7
end the following: 8
‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF-WAY FOR 9
ENERGY AND RELATED PURPOSES.— 10
‘‘(1) IN GENERAL.—The Secretary, in consulta- 11
tion with the Secretary of the Department in which 12
the Coast Guard is operating and other relevant de- 13
partments and agencies of the Federal Government, 14
may grant a lease, easement, or right-of-way on the 15
outer Continental Shelf for activities not otherwise 16
authorized in this Act, the Deepwater Port Act of 17
1974 (33 U.S.C. 1501 et seq.), or the Ocean Ther- 18
mal Energy Conversion Act of 1980 (42 U.S.C. 19
9101 et seq.), or other applicable law, if those 20
activities— 21
‘‘(A) support exploration, development, 22
production, transportation, or storage of oil, 23
natural gas, or other minerals; 24
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38
‘‘(B) produce or support production, trans- 1
portation, or transmission of energy from 2
sources other than oil and gas; or 3
‘‘(C) use, for energy-related or marine-re- 4
lated purposes, facilities currently or previously 5
used for activities authorized under this Act. 6
‘‘(2) PAYMENTS.—The Secretary shall establish 7
reasonable forms of payments for any easement or 8
right-of-way granted under this subsection. Such 9
payments shall not be assessed on the basis of 10
throughput or production. The Secretary may estab- 11
lish fees, rentals, bonus, or other payments by rule 12
or by agreement with the party to which the lease, 13
easement, or right-of-way is granted. 14
‘‘(3) CONSULTATION.—Before exercising au- 15
thority under this subsection, the Secretary shall 16
consult with the Secretary of Defense and other ap- 17
propriate agencies concerning issues related to na- 18
tional security and navigational obstruction. 19
‘‘(4) COMPETITIVE OR NONCOMPETITIVE 20
BASIS.— 21
‘‘(A) IN GENERAL.—The Secretary may 22
issue a lease, easement, or right-of-way for en- 23
ergy and related purposes as described in para- 24
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graph (1) on a competitive or noncompetitive 1
basis. 2
‘‘(B) CONSIDERATIONS.—In determining 3
whether a lease, easement, or right-of-way shall 4
be granted competitively or noncompetitively, 5
the Secretary shall consider such factors as— 6
‘‘(i) prevention of waste and conserva- 7
tion of natural resources; 8
‘‘(ii) the economic viability of an en- 9
ergy project; 10
‘‘(iii) protection of the environment; 11
‘‘(iv) the national interest and na- 12
tional security; 13
‘‘(v) human safety; 14
‘‘(vi) protection of correlative rights; 15
and 16
‘‘(vii) potential return for the lease, 17
easement, or right-of-way. 18
‘‘(5) REGULATIONS.—Not later than 270 days 19
after the date of enactment of the Energy Policy Act 20
of 2003, the Secretary, in consultation with the Sec- 21
retary of the Department in which the Coast Guard 22
is operating and other relevant agencies of the Fed- 23
eral Government and affected States, shall issue any 24
necessary regulations to ensure safety, protection of 25
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40
the environment, prevention of waste, and conserva- 1
tion of the natural resources of the outer Conti- 2
nental Shelf, protection of national security inter- 3
ests, and protection of correlative rights in the outer 4
Continental Shelf. 5
‘‘(6) SECURITY.—The Secretary shall require 6
the holder of a lease, easement, or right-of-way 7
granted under this subsection to furnish a surety 8
bond or other form of security, as prescribed by the 9
Secretary, and to comply with such other require- 10
ments as the Secretary considers necessary to pro- 11
tect the interests of the United States. 12
‘‘(7) EFFECT OF SUBSECTION.—Nothing in this 13
subsection displaces, supersedes, limits, or modifies 14
the jurisdiction, responsibility, or authority of any 15
Federal or State agency under any other Federal 16
law. 17
‘‘(8) APPLICABILITY.—This subsection does not 18
apply to any area on the outer Continental Shelf 19
designated as a National Marine Sanctuary.’’. 20
(b) CONFORMING AMENDMENT.—Section 8 of the 21
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is 22
amended by striking the section heading and inserting the 23
following: ‘‘LEASES, EASEMENTS, AND RIGHTS-OF-WAY 24
ON THE OUTER CONTINENTAL SHELF.—’’. 25
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(c) SAVINGS PROVISION.—Nothing in the amendment 1
made by subsection (a) requires, with respect to any 2
project— 3
(1) for which offshore test facilities have been 4
constructed before the date of enactment of this Act; 5
or 6
(2) for which a request for proposals has been 7
issued by a public authority, 8
any resubmittal of documents previously submitted or any 9
reauthorization of actions previously authorized. 10
SEC. 322. PRESERVATION OF GEOLOGICAL AND GEO- 11
PHYSICAL DATA. 12
(a) SHORT TITLE.—This section may be cited as the 13
‘‘National Geological and Geophysical Data Preservation 14
Program Act of 2003’’. 15
(b) PROGRAM.—The Secretary shall carry out a Na- 16
tional Geological and Geophysical Data Preservation Pro- 17
gram in accordance with this section— 18
(1) to archive geologic, geophysical, and engi- 19
neering data, maps, well logs, and samples; 20
(2) to provide a national catalog of such archi- 21
val material; and 22
(3) to provide technical and financial assistance 23
related to the archival material. 24
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(c) PLAN.—Not later than 1 year after the date of 1
enactment of this Act, the Secretary shall submit to Con- 2
gress a plan for the implementation of the Program. 3
(d) DATA ARCHIVE SYSTEM.— 4
(1) ESTABLISHMENT.—The Secretary shall es- 5
tablish, as a component of the Program, a data ar- 6
chive system to provide for the storage, preservation, 7
and archiving of subsurface, surface, geological, geo- 8
physical, and engineering data and samples. The 9
Secretary, in consultation with the Advisory Com- 10
mittee, shall develop guidelines relating to the data 11
archive system, including the types of data and sam- 12
ples to be preserved. 13
(2) SYSTEM COMPONENTS.—The system shall 14
be comprised of State agencies that elect to be part 15
of the system and agencies within the Department 16
of the Interior that maintain geological and geo- 17
physical data and samples that are designated by 18
the Secretary in accordance with this subsection. 19
The Program shall provide for the storage of data 20
and samples through data repositories operated by 21
such agencies. 22
(3) LIMITATION OF DESIGNATION.—The Sec- 23
retary may not designate a State agency as a com- 24
ponent of the data archive system unless that agency 25
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43
is the agency that acts as the geological survey in 1
the State. 2
(4) DATA FROM FEDERAL LAND.—The data ar- 3
chive system shall provide for the archiving of rel- 4
evant subsurface data and samples obtained from 5
Federal land— 6
(A) in the most appropriate repository des- 7
ignated under paragraph (2), with preference 8
being given to archiving data in the State in 9
which the data were collected; and 10
(B) consistent with all applicable law and 11
requirements relating to confidentiality and pro- 12
prietary data. 13
(e) NATIONAL CATALOG.— 14
(1) IN GENERAL.—As soon as practicable after 15
the date of enactment of this Act, the Secretary 16
shall develop and maintain, as a component of the 17
Program, a national catalog that identifies— 18
(A) data and samples available in the data 19
archive system established under subsection (d); 20
(B) the repository for particular material 21
in the system; and 22
(C) the means of accessing the material. 23
(2) AVAILABILITY.—The Secretary shall make 24
the national catalog accessible to the public on the 25
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44
site of the Survey on the Internet, consistent with all 1
applicable requirements related to confidentiality 2
and proprietary data. 3
(f) ADVISORY COMMITTEE.— 4
(1) IN GENERAL.—The Advisory Committee 5
shall advise the Secretary on planning and imple- 6
mentation of the Program. 7
(2) NEW DUTIES.—In addition to its duties 8
under the National Geologic Mapping Act of 1992 9
(43 U.S.C. 31a et seq.), the Advisory Committee 10
shall perform the following duties: 11
(A) Advise the Secretary on developing 12
guidelines and procedures for providing assist- 13
ance for facilities under subsection (g)(1). 14
(B) Review and critique the draft imple- 15
mentation plan prepared by the Secretary under 16
subsection (c). 17
(C) Identify useful studies of data archived 18
under the Program that will advance under- 19
standing of the Nation’s energy and mineral re- 20
sources, geologic hazards, and engineering geol- 21
ogy. 22
(D) Review the progress of the Program in 23
archiving significant data and preventing the 24
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45
loss of such data, and the scientific progress of 1
the studies funded under the Program. 2
(E) Include in the annual report to the 3
Secretary required under section 5(b)(3) of the 4
National Geologic Mapping Act of 1992 (43 5
U.S.C. 31d(b)(3)) an evaluation of the progress 6
of the Program toward fulfilling the purposes of 7
the Program under subsection (b). 8
(g) FINANCIAL ASSISTANCE.— 9
(1) ARCHIVE FACILITIES.—Subject to the avail- 10
ability of appropriations, the Secretary shall provide 11
financial assistance to a State agency that is des- 12
ignated under subsection (d)(2) for providing facili- 13
ties to archive energy material. 14
(2) STUDIES.—Subject to the availability of ap- 15
propriations, the Secretary shall provide financial as- 16
sistance to any State agency designated under sub- 17
section (d)(2) for studies and technical assistance 18
activities that enhance understanding, interpreta- 19
tion, and use of materials archived in the data ar- 20
chive system established under subsection (d). 21
(3) FEDERAL SHARE.—The Federal share of 22
the cost of an activity carried out with assistance 23
under this subsection shall be not more than 50 per- 24
cent of the total cost of the activity. 25
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(4) PRIVATE CONTRIBUTIONS.—The Secretary 1
shall apply to the non-Federal share of the cost of 2
an activity carried out with assistance under this 3
subsection the value of private contributions of prop- 4
erty and services used for that activity. 5
(h) REPORT.—The Secretary shall include in each re- 6
port under section 8 of the National Geologic Mapping Act 7
of 1992 (43 U.S.C. 31g)— 8
(1) a description of the status of the Program; 9
(2) an evaluation of the progress achieved in 10
developing the Program during the period covered by 11
the report; and 12
(3) any recommendations for legislative or other 13
action the Secretary considers necessary and appro- 14
priate to fulfill the purposes of the Program under 15
subsection (b). 16
(i) MAINTENANCE OF STATE EFFORT.—It is the in- 17
tent of Congress that the States not use this section as 18
an opportunity to reduce State resources applied to the 19
activities that are the subject of the Program. 20
(j) DEFINITIONS.—In this section: 21
(1) ADVISORY COMMITTEE.—The term ‘‘Advi- 22
sory Committee’’ means the advisory committee es- 23
tablished under section 5 of the National Geologic 24
Mapping Act of 1992 (43 U.S.C. 31d). 25
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(2) PROGRAM.—The term ‘‘Program’’ means 1
the National Geological and Geophysical Data Pres- 2
ervation Program carried out under this section. 3
(3) SECRETARY.—The term ‘‘Secretary’’ means 4
the Secretary of the Interior, acting through the Di- 5
rector of the United States Geological Survey. 6
(4) SURVEY.—The term ‘‘Survey’’ means the 7
United States Geological Survey. 8
(k) AUTHORIZATION OF APPROPRIATIONS.—There 9
are authorized to be appropriated to carry out this section 10
$30,000,000 for each of fiscal years 2004 through 2008. 11
SEC. 323. OIL AND GAS LEASE ACREAGE LIMITATIONS. 12
Section 27(d)(1) of the Mineral Leasing Act (30 13
U.S.C. 184(d)(1)) is amended by inserting after ‘‘acreage 14
held in special tar sand areas’’ the following: ‘‘, and acre- 15
age under any lease any portion of which has been com- 16
mitted to a federally approved unit or cooperative plan or 17
communitization agreement or for which royalty (includ- 18
ing compensatory royalty or royalty in-kind) was paid in 19
the preceding calendar year,’’. 20
SEC. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HA- 21
WAII ON OIL. 22
(a) ASSESSMENT.—The Secretary of Energy shall as- 23
sess the economic implication of the dependence of the 24
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State of Hawaii on oil as the principal source of energy 1
for the State, including— 2
(1) the short- and long-term prospects for crude 3
oil supply disruption and price volatility and poten- 4
tial impacts on the economy of Hawaii; 5
(2) the economic relationship between oil-fired 6
generation of electricity from residual fuel and re- 7
fined petroleum products consumed for ground, ma- 8
rine, and air transportation; 9
(3) the technical and economic feasibility of in- 10
creasing the contribution of renewable energy re- 11
sources for generation of electricity, on an island-by- 12
island basis, including— 13
(A) siting and facility configuration; 14
(B) environmental, operational, and safety 15
considerations; 16
(C) the availability of technology; 17
(D) effects on the utility system including 18
reliability; 19
(E) infrastructure and transport require- 20
ments; 21
(F) community support; and 22
(G) other factors affecting the economic 23
impact of such an increase and any effect on 24
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the economic relationship described in para- 1
graph (2); 2
(4) the technical and economic feasibility of 3
using liquified natural gas to displace residual fuel 4
oil for electric generation, including neighbor island 5
opportunities, and the effect of the displacement on 6
the economic relationship described in paragraph 7
(2), including— 8
(A) the availability of supply; 9
(B) siting and facility configuration for on- 10
shore and offshore liquified natural gas receiv- 11
ing terminals; 12
(C) the factors described in subparagraphs 13
(B) through (F) of paragraph (3); and 14
(D) other economic factors; 15
(5) the technical and economic feasibility of 16
using renewable energy sources (including hydrogen) 17
for ground, marine, and air transportation energy 18
applications to displace the use of refined petroleum 19
products, on an island-by-island basis, and the eco- 20
nomic impact of the displacement on the relationship 21
described in (2); and 22
(6) an island-by-island approach to— 23
(A) the development of hydrogen from re- 24
newable resources; and 25
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(B) the application of hydrogen to the en- 1
ergy needs of Hawaii 2
(b) CONTRACTING AUTHORITY.—The Secretary of 3
Energy may carry out the assessment under subsection 4
(a) directly or, in whole or in part, through 1 or more 5
contracts with qualified public or private entities. 6
(c) REPORT.—Not later than 300 days after the date 7
of enactment of this Act, the Secretary of Energy shall 8
prepare, in consultation with agencies of the State of Ha- 9
waii and other stakeholders, as appropriate, and submit 10
to Congress, a report detailing the findings, conclusions, 11
and recommendations resulting from the assessment. 12
(d) AUTHORIZATION OF APPROPRIATIONS.—There 13
are authorized to be appropriated such sums as are nec- 14
essary to carry out this section. 15
SEC. 325. DEADLINE FOR DECISION ON APPEALS OF CON- 16
SISTENCY DETERMINATION UNDER THE 17
COASTAL ZONE MANAGEMENT ACT OF 1972. 18
(a) IN GENERAL.—Section 319 of the Coastal Zone 19
Management Act of 1972 (16 U.S.C. 1465) is amended 20
to read as follows: 21
‘‘APPEALS TO THE SECRETARY 22
‘‘SEC. 319. (a) NOTICE.—The Secretary shall publish 23
an initial notice in the Federal Register not later than 30 24
days after the date of the filing of any appeal to the Sec- 25
retary of a consistency determination under section 307. 26
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‘‘(b) CLOSURE OF RECORD.— 1
‘‘(1) IN GENERAL.—Not later than the end of 2
the 120-day period beginning on the date of publica- 3
tion of an initial notice under subsection (a), the 4
Secretary shall receive no more filings on the appeal 5
and the administrative record regarding the appeal 6
shall be closed. 7
‘‘(2) NOTICE.—Upon the closure of the admin- 8
istrative record, the Secretary shall immediately 9
publish a notice that the administrative record has 10
been closed. 11
‘‘(c) DEADLINE FOR DECISION.—The Secretary shall 12
issue a decision in any appeal filed under section 307 not 13
later than 120 days after the closure of the administrative 14
record. 15
‘‘(d) APPLICATION.—This section applies to appeals 16
initiated by the Secretary and appeals filed by an appli- 17
cant.’’. 18
(b) APPLICATION.— 19
(1) IN GENERAL.—Except as provided in para- 20
graph (2), the amendment made by subsection (a) 21
shall apply with respect to any appeal initiated or 22
filed before, on, or after the date of enactment of 23
this Act. 24
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(2) LIMITATION.—Subsection (a) of section 319 1
of the Coastal Zone Management Act of 1972 (as 2
amended by subsection (a)) shall not apply with re- 3
spect to an appeal initiated or filed before the date 4
of enactment of this Act. 5
(c) CLOSURE OF RECORD FOR APPEAL FILED BE- 6
FORE DATE OF ENACTMENT.—Notwithstanding section 7
319(b)(1) of the Coastal Zone Management Act of 1972 8
(as amended by this section), in the case of an appeal of 9
a consistency determination under section 307 of that Act 10
initiated or filed before the date of enactment of this Act, 11
the Secretary of Commerce shall receive no more filings 12
on the appeal and the administrative record regarding the 13
appeal shall be closed not later than 120 days after the 14
date of enactment of this Act. 15
SEC. 326. REIMBURSEMENT FOR COSTS OF NEPA ANAL- 16
YSES, DOCUMENTATION, AND STUDIES. 17
(a) IN GENERAL.—The Mineral Leasing Act is 18
amended by inserting after section 37 (30 U.S.C. 193) 19
the following: 20
‘‘REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES, 21
DOCUMENTATION, AND STUDIES 22
‘‘SEC. 38. (a) IN GENERAL.—The Secretary of the 23
Interior may reimburse a person that is a lessee, operator, 24
operating rights owner, or applicant for any lease under 25
this Act for reasonable amounts paid by the person for 26
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preparation for the Secretary by a contractor or other per- 1
son selected by the Secretary of any project-level analysis, 2
documentation, or related study required pursuant to the 3
National Environmental Policy Act of 1969 (42 U.S.C. 4
4321 et seq.) with respect to the lease. 5
‘‘(b) CONDITIONS.—The Secretary may provide reim- 6
bursement under subsection (a) only if— 7
‘‘(1) adequate funding to enable the Secretary 8
to timely prepare the analysis, documentation, or re- 9
lated study is not appropriated; 10
‘‘(2) the person paid the costs voluntarily; 11
‘‘(3) the person maintains records of its costs 12
in accordance with regulations issued by the Sec- 13
retary; 14
‘‘(4) the reimbursement is in the form of a re- 15
duction in the Federal share of the royalty required 16
to be paid for the lease for which the analysis, docu- 17
mentation, or related study is conducted, and is 18
agreed to by the Secretary and the person reim- 19
bursed prior to commencing the analysis, docu- 20
mentation, or related study; and 21
‘‘(5) the agreement required under paragraph 22
(4) contains provisions— 23
‘‘(A) reducing royalties owed on lease pro- 24
duction based on market prices; 25
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‘‘(B) stipulating an automatic termination 1
of the royalty reduction upon recovery of docu- 2
mented costs; and 3
‘‘(C) providing a process by which the les- 4
see may seek reimbursement for circumstances 5
in which production from the specified lease is 6
not possible.’’. 7
(b) APPLICATION.—The amendment made by this 8
section shall apply with respect to an analysis, documenta- 9
tion, or a related study conducted on or after the date 10
of enactment of this Act for any lease entered into before, 11
on, or after the date of enactment of this Act. 12
(c) DEADLINE FOR REGULATIONS.—The Secretary 13
shall issue regulations implementing the amendment made 14
by this section by not later than 1 year after the date 15
of enactment of this Act. 16
SEC. 327. HYDRAULIC FRACTURING. 17
Paragraph (1) of section 1421(d) of the Safe Drink- 18
ing Water Act (42 U.S.C. 300h(d)) is amended to read 19
as follows: 20
‘‘(1) UNDERGROUND INJECTION.—The term 21
‘underground injection’— 22
‘‘(A) means the subsurface emplacement of 23
fluids by well injection; and 24
‘‘(B) excludes— 25
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‘‘(i) the underground injection of nat- 1
ural gas for purposes of storage; and 2
‘‘(ii) the underground injection of 3
fluids or propping agents pursuant to hy- 4
draulic fracturing operations related to oil 5
or gas production activities.’’. 6
SEC. 328. OIL AND GAS EXPLORATION AND PRODUCTION 7
DEFINED. 8
Section 502 of the Federal Water Pollution Control 9
Act (33 U.S.C. 1362) is amended by adding at the end 10
the following: 11
‘‘(24) OIL AND GAS EXPLORATION AND PRO- 12
DUCTION.—The term ‘oil and gas exploration, pro- 13
duction, processing, or treatment operations or 14
transmission facilities’ means all field activities or 15
operations associated with exploration, production, 16
processing, or treatment operations, or transmission 17
facilities, including activities necessary to prepare a 18
site for drilling and for the movement and placement 19
of drilling equipment, whether or not such field ac- 20
tivities or operations may be considered to be con- 21
struction activities.’’. 22
SEC. 329. OUTER CONTINENTAL SHELF PROVISIONS. 23
(a) STORAGE ON THE OUTER CONTINENTAL 24
SHELF.—Section 5(a)(5) of the Outer Continental Shelf 25
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Lands Act (43 U.S.C. 1334(a)(5)) is amended by insert- 1
ing ‘‘from any source’’ after ‘‘oil and gas’’. 2
(b) DEEPWATER PROJECTS.—Section 6 of the Deep- 3
water Port Act of 1974 (33 U.S.C. 1505) is amended by 4
adding at the end the following: 5
‘‘(d) RELIANCE ON ACTIVITIES OF OTHER AGEN- 6
CIES.—In fulfilling the requirements of section 5(f)— 7
‘‘(1) to the extent that other Federal agencies 8
have prepared environmental impact statements, are 9
conducting studies, or are monitoring the affected 10
human, marine, or coastal environment, the Sec- 11
retary may use the information derived from those 12
activities in lieu of directly conducting such activi- 13
ties; and 14
‘‘(2) the Secretary may use information ob- 15
tained from any State or local government or from 16
any person.’’. 17
(c) NATURAL GAS DEFINED.—Section 3(13) of the 18
Deepwater Port Act of 1974 (33 U.S.C. 1502(13)) is 19
amended to read as follows: 20
‘‘(13) natural gas means— 21
‘‘(A) natural gas unmixed; or 22
‘‘(B) any mixture of natural or artificial 23
gas, including compressed or liquefied natural 24
gas, natural gas liquids, liquefied petroleum 25
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gas, and condensate recovered from natural 1
gas;’’. 2
SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUC- 3
TION OR OFFSHORE MINERAL DEVELOP- 4
MENT PROJECTS. 5
(a) AGENCY OF RECORD, PIPELINE CONSTRUCTION 6
PROJECTS.—Any Federal administrative agency pro- 7
ceeding that is an appeal or review under section 319 of 8
the Coastal Zone Management Act of 1972 (16 U.S.C. 9
1465), as amended by this Act, related to Federal author- 10
ity for an interstate natural gas pipeline construction 11
project, including construction of natural gas storage and 12
liquefied natural gas facilities, shall use as its exclusive 13
record for all purposes the record compiled by the Federal 14
Energy Regulatory Commission pursuant to the Commis- 15
sion’s proceeding under sections 3 and 7 of the Natural 16
Gas Act (15 U.S.C. 717b, 717f). 17
(b) SENSE OF CONGRESS.—It is the sense of Con- 18
gress that all Federal and State agencies with jurisdiction 19
over interstate natural gas pipeline construction activities 20
should coordinate their proceedings within the timeframes 21
established by the Federal Energy Regulatory Commission 22
when the Commission is acting under sections 3 and 7 23
of the Natural Gas Act (15 U.S.C. 717b, 717f) to deter- 24
mine whether a certificate of public convenience and neces- 25
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sity should be issued for a proposed interstate natural gas 1
pipeline. 2
(c) AGENCY OF RECORD, OFFSHORE MINERAL DE- 3
VELOPMENT PROJECTS.—Any Federal administrative 4
agency proceeding that is an appeal or review under sec- 5
tion 319 of the Coastal Zone Management Act of 1972 6
(16 U.S.C. 1465), as amended by this Act, related to Fed- 7
eral authority for the permitting, approval, or other au- 8
thorization of energy projects, including projects to ex- 9
plore, develop, or produce mineral resources in or under- 10
lying the outer Continental Shelf shall use as its exclusive 11
record for all purposes (except for the filing of pleadings) 12
the record compiled by the relevant Federal permitting 13
agency. 14
SEC. 331. BILATERAL INTERNATIONAL OIL SUPPLY AGREE- 15
MENTS. 16
(a) IN GENERAL.—Notwithstanding any other provi- 17
sion of law, the President may export oil to, or secure oil 18
for, any country pursuant to a bilateral international oil 19
supply agreement entered into by the United States with 20
the country before June 25, 1979, or to any country pur- 21
suant to the International Emergency Oil Sharing Plan 22
of the International Energy Agency. 23
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(b) MEMORANDUM OF AGREEMENT.—The following 1
agreements are deemed to have entered into force by oper- 2
ation of law and are deemed to have no termination date: 3
(1) The agreement entitled ‘‘Agreement amend- 4
ing and extending the memorandum of agreement of 5
June 22, 1979’’, entered into force November 13, 6
1994 (TIAS 12580). 7
(2) The agreement entitled ‘‘Agreement amend- 8
ing the contingency implementing arrangements of 9
October 17, 1980’’, entered into force June 27, 10
1995 (TIAS 12670). 11
SEC. 332. NATURAL GAS MARKET REFORM. 12
(a) CLARIFICATION OF EXISTING CFTC AUTHOR- 13
ITY.— 14
(1) FALSE REPORTING.—Section 9(a)(2) of the 15
Commodity Exchange Act (7 U.S.C. 13(a)(2)) is 16
amended by striking ‘‘false or misleading or know- 17
ingly inaccurate reports’’ and inserting ‘‘knowingly 18
false or knowingly misleading or knowingly inac- 19
curate reports’’. 20
(2) COMMISSION ADMINISTRATIVE AND CIVIL 21
AUTHORITY.—Section 9 of the Commodity Ex- 22
change Act (7 U.S.C. 13) is amended by redesig- 23
nating subsection (f) as subsection (e), and adding: 24
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‘‘(f) COMMISSION ADMINISTRATIVE AND CIVIL AU- 1
THORITY.—The Commission may bring administrative or 2
civil actions as provided in this Act against any person 3
for a violation of any provision of this section including, 4
but not limited to, false reporting under subsection 5
(a)(2).’’. 6
(3) EFFECT OF AMENDMENTS.—The amend- 7
ments made by paragraphs (1) and (2) restate, with- 8
out substantive change, existing burden of proof pro- 9
visions and existing Commission civil enforcement 10
authority, respectively. These clarifying changes do 11
not alter any existing burden of proof or grant any 12
new statutory authority. The provisions of this sec- 13
tion, as restated herein, continue to apply to any ac- 14
tion pending on or commenced after the date of en- 15
actment of this Act for any act, omission, or viola- 16
tion occurring before, on, or after, such date of en- 17
actment. 18
(b) FRAUD AUTHORITY.—Section 4b of the Com- 19
modity Exchange Act (7 U.S.C. 6b) is amended— 20
(1) by redesignating subsections (b) and (c) as 21
subsections (c) and (d), respectively; and 22
(2) by striking subsection (a) and inserting the 23
following: 24
‘‘(a) It shall be unlawful— 25
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‘‘(1) for any person, in or in connection with 1
any order to make, or the making of, any contract 2
of sale of any commodity for future delivery or in 3
interstate commerce, that is made, or to be made, on 4
or subject to the rules of a designated contract mar- 5
ket, for or on behalf of any other person; or 6
‘‘(2) for any person, in or in connection with 7
any order to make, or the making of, any contract 8
of sale of any commodity for future delivery, or 9
other agreement, contract, or transaction subject to 10
section 5a(g) (1) and (2) of this Act, that is made, 11
or to be made, for or on behalf of, or with, any other 12
person, other than on or subject to the rules of a 13
designated contract market— 14
‘‘(A) to cheat or defraud or attempt to 15
cheat or defraud such other person; 16
‘‘(B) willfully to make or cause to be made 17
to such other person any false report or state- 18
ment or willfully to enter or cause to be entered 19
for such other person any false record; 20
‘‘(C) willfully to deceive or attempt to de- 21
ceive such other person by any means whatso- 22
ever in regard to any order or contract or the 23
disposition or execution of any order or con- 24
tract, or in regard to any act of agency per- 25
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formed, with respect to any order or contract 1
for or, in the case of subsection (a)(2), with 2
such other person; or 3
‘‘(D)(i) to bucket an order if such order is 4
either represented by such person as an order 5
to be executed, or required to be executed, on 6
or subject to the rules of a designated contract 7
market; or 8
‘‘(ii) to fill an order by offset against the 9
order or orders of any other person, or willfully 10
and knowingly and without the prior consent of 11
such other person to become the buyer in re- 12
spect to any selling order of such other person, 13
or become the seller in respect to any buying 14
order of such other person, if such order is ei- 15
ther represented by such person as an order to 16
be executed, or required to be executed, on or 17
subject to the rules of a designated contract 18
market. 19
‘‘(b) Subsection (a)(2) shall not obligate any person, 20
in connection with a transaction in a contract of sale of 21
a commodity for future delivery, or other agreement, con- 22
tract or transaction subject to section 5a(g) (1) and (2) 23
of this Act, with another person, to disclose to such other 24
person nonpublic information that may be material to the 25
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market price of such commodity or transaction, except as 1
necessary to make any statement made to such other per- 2
son in connection with such transaction, not misleading 3
in any material respect.’’. 4
(c) JURISDICTION OF THE CFTC.—The Natural Gas 5
Act (15 U.S.C. 717 et seq.) is amended by adding at the 6
end: 7
‘‘SEC. 26. JURISDICTION. 8
‘‘This Act shall not affect the exclusive jurisdiction 9
of the Commodity Futures Trading Commission with re- 10
spect to accounts, agreements, contracts, or transactions 11
in commodities under the Commodity Exchange Act (7 12
U.S.C. 1 et seq.). Any request for information by the Com- 13
mission to a designated contract market, registered deriva- 14
tives transaction execution facility, board of trade, ex- 15
change, or market involving accounts, agreements, con- 16
tracts, or transactions in commodities (including natural 17
gas, electricity, and other energy commodities) within the 18
exclusive jurisdiction of the Commodity Futures Trading 19
Commission shall be directed to the Commodity Futures 20
Trading Commission, which shall cooperate in responding 21
to any information request by the Commission.’’. 22
(d) INCREASED PENALTIES.—Section 21 of the Nat- 23
ural Gas Act (15 U.S.C. 717t) is amended— 24
(1) in subsection (a)— 25
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(A) by striking ‘‘$5,000’’ and inserting 1
‘‘$1,000,000’’; and 2
(B) by striking ‘‘two years’’ and inserting 3
‘‘5 years’’; and 4
(2) in subsection (b), by striking ‘‘$500’’ and 5
inserting ‘‘$50,000’’. 6
SEC. 333. NATURAL GAS MARKET TRANSPARENCY. 7
The Natural Gas Act (15 U.S.C 717 et seq.) is 8
amended— 9
(1) by redesignating section 24 as section 25; 10
and 11
(2) by inserting after section 23 the following: 12
‘‘SEC. 24. NATURAL GAS MARKET TRANSPARENCY. 13
‘‘(a) AUTHORIZATION.—(1) Not later than 180 days 14
after the date of enactment of the Energy Policy Act of 15
2003, the Federal Energy Regulatory Commission shall 16
issue rules directing all entities subject to the Commis- 17
sion’s jurisdiction as provided under this Act to timely re- 18
port information about the availability and prices of nat- 19
ural gas sold at wholesale in interstate commerce to the 20
Commission and price publishers. 21
‘‘(2) The Commission shall evaluate the data for ade- 22
quate price transparency and accuracy. 23
‘‘(3) Rules issued under this subsection requiring the 24
reporting of information to the Commission that may be- 25
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come publicly available shall be limited to aggregate data 1
and transaction-specific data that are otherwise required 2
by the Commission to be made public. 3
‘‘(4) In exercising its authority under this section, the 4
Commission shall not— 5
‘‘(A) compete with, or displace from the market 6
place, any price publisher; or 7
‘‘(B) regulate price publishers or impose any re- 8
quirements on the publication of information. 9
‘‘(b) TIMELY ENFORCEMENT.—No person shall be 10
subject to any penalty under this section with respect to 11
a violation occurring more than 3 years before the date 12
on which the Federal Energy Regulatory Commission 13
seeks to assess a penalty. 14
‘‘(c) LIMITATION ON COMMISSION AUTHORITY.—(1) 15
The Commission shall not condition access to interstate 16
pipeline transportation upon the reporting requirements 17
authorized under this section. 18
‘‘(2) Natural gas sales by a producer that are attrib- 19
utable to volumes of natural gas produced by such pro- 20
ducer shall not be subject to the rules issued pursuant to 21
this section. 22
‘‘(3) The Commission shall not require natural gas 23
producers, processors, or users who have a de minimis 24
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market presence to participate in the reporting require- 1
ments provided in this section.’’. 2
Subtitle C—Access to Federal Land 3
SEC. 341. OFFICE OF FEDERAL ENERGY PROJECT COORDI- 4
NATION. 5
(a) ESTABLISHMENT.—The President shall establish 6
the Office of Federal Energy Project Coordination (re- 7
ferred to in this section as the ‘‘Office’’) within the Execu- 8
tive Office of the President in the same manner and with 9
the same mission as the White House Energy Projects 10
Task Force established by Executive Order No. 13212 (42 11
U.S.C. 13201 note). 12
(b) STAFFING.—The Office shall be staffed by func- 13
tional experts from relevant Federal agencies on a non- 14
reimbursable basis to carry out the mission of the Office. 15
(c) REPORT.—The Office shall transmit an annual 16
report to Congress that describes the activities put in place 17
to coordinate and expedite Federal decisions on energy 18
projects. The report shall list accomplishments in improv- 19
ing the Federal decisionmaking process and shall include 20
any additional recommendations or systemic changes 21
needed to establish a more effective and efficient Federal 22
permitting process. 23
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SEC. 342. FEDERAL ONSHORE OIL AND GAS LEASING AND 1
PERMITTING PRACTICES. 2
(a) REVIEW OF ONSHORE OIL AND GAS LEASING 3
PRACTICES.— 4
(1) IN GENERAL.—The Secretary of the Inte- 5
rior, in consultation with the Secretary of Agri- 6
culture with respect to National Forest System lands 7
under the jurisdiction of the Department of Agri- 8
culture, shall perform an internal review of current 9
Federal onshore oil and gas leasing and permitting 10
practices. 11
(2) INCLUSIONS.—The review shall include the 12
process for— 13
(A) accepting or rejecting offers to lease; 14
(B) administrative appeals of decisions or 15
orders of officers or employees of the Bureau of 16
Land Management with respect to a Federal oil 17
or gas lease; 18
(C) considering surface use plans of oper- 19
ation, including the timeframes in which the 20
plans are considered, and any recommendations 21
for improving and expediting the process; and 22
(D) identifying stipulations to address site- 23
specific concerns and conditions, including those 24
stipulations relating to the environment and re- 25
source use conflicts. 26
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(b) REPORT.—Not later than 180 days after the date 1
of enactment of this Act, the Secretary of the Interior and 2
the Secretary of Agriculture shall transmit a report to 3
Congress that describes— 4
(1) actions taken under section 3 of Executive 5
Order No. 13212 (42 U.S.C. 13201 note); and 6
(2) actions taken or any plans to improve the 7
Federal onshore oil and gas leasing program. 8
SEC. 343. MANAGEMENT OF FEDERAL OIL AND GAS LEAS- 9
ING PROGRAMS. 10
(a) TIMELY ACTION ON LEASES AND PERMITS.—To 11
ensure timely action on oil and gas leases and applications 12
for permits to drill on land otherwise available for leasing, 13
the Secretary of the Interior (in this section referred to 14
as the ‘‘Secretary’’) shall— 15
(1) ensure expeditious compliance with section 16
102(2)(C) of the National Environmental Policy Act 17
of 1969 (42 U.S.C. 4332(2)(C)); 18
(2) improve consultation and coordination with 19
the States and the public; and 20
(3) improve the collection, storage, and retrieval 21
of information relating to the leasing activities. 22
(b) BEST MANAGEMENT PRACTICES.— 23
(1) IN GENERAL.—Not later than 18 months 24
after the date of enactment of this Act, the Sec- 25
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retary shall develop and implement best manage- 1
ment practices to— 2
(A) improve the administration of the on- 3
shore oil and gas leasing program under the 4
Mineral Leasing Act (30 U.S.C. 181 et seq.); 5
and 6
(B) ensure timely action on oil and gas 7
leases and applications for permits to drill on 8
lands otherwise available for leasing. 9
(2) CONSIDERATIONS.—In developing the best 10
management practices under paragraph (1), the Sec- 11
retary shall consider any recommendations from the 12
review under section 342. 13
(3) REGULATIONS.—Not later than 180 days 14
after the development of best management practices 15
under paragraph (1), the Secretary shall publish, for 16
public comment, proposed regulations that set forth 17
specific timeframes for processing leases and appli- 18
cations in accordance with the practices, including 19
deadlines for— 20
(A) approving or disapproving resource 21
management plans and related documents, lease 22
applications, and surface use plans; and 23
(B) related administrative appeals. 24
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(c) IMPROVED ENFORCEMENT.—The Secretary shall 1
improve inspection and enforcement of oil and gas activi- 2
ties, including enforcement of terms and conditions in per- 3
mits to drill. 4
(d) AUTHORIZATION OF APPROPRIATIONS.—In addi- 5
tion to amounts authorized to be appropriated to carry 6
out section 17 of the Mineral Leasing Act (30 U.S.C. 7
226), there are authorized to be appropriated to the Sec- 8
retary for each of fiscal years 2004 through 2007— 9
(1) $40,000,000 to carry out subsections (a) 10
and (b); and 11
(2) $20,000,000 to carry out subsection (c). 12
SEC. 344. CONSULTATION REGARDING OIL AND GAS LEAS- 13
ING ON PUBLIC LAND. 14
(a) IN GENERAL.—Not later than 180 days after the 15
date of enactment of this Act, the Secretary of the Interior 16
and the Secretary of Agriculture shall enter into a memo- 17
randum of understanding regarding oil and gas leasing 18
on— 19
(1) public lands under the jurisdiction of the 20
Secretary of the Interior; and 21
(2) National Forest System lands under the ju- 22
risdiction of the Secretary of Agriculture. 23
(b) CONTENTS.—The memorandum of understanding 24
shall include provisions that— 25
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(1) establish administrative procedures and 1
lines of authority that ensure timely processing of oil 2
and gas lease applications, surface use plans of oper- 3
ation, and applications for permits to drill, including 4
steps for processing surface use plans and applica- 5
tions for permits to drill consistent with the 6
timelines established by the amendment made by 7
section 348; 8
(2) eliminate duplication of effort by providing 9
for coordination of planning and environmental com- 10
pliance efforts; and 11
(3) ensure that lease stipulations are— 12
(A) applied consistently; 13
(B) coordinated between agencies; and 14
(C) only as restrictive as necessary to pro- 15
tect the resource for which the stipulations are 16
applied. 17
(c) DATA RETRIEVAL SYSTEM.— 18
(1) IN GENERAL.—Not later than 1 year after 19
the date of enactment of this Act, the Secretary of 20
the Interior and the Secretary of Agriculture shall 21
establish a joint data retrieval system that is capable 22
of— 23
(A) tracking applications and formal re- 24
quests made in accordance with procedures of 25
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the Federal onshore oil and gas leasing pro- 1
gram; and 2
(B) providing information regarding the 3
status of the applications and requests within 4
the Department of the Interior and the Depart- 5
ment of Agriculture. 6
(2) RESOURCE MAPPING.—Not later than 2 7
years after the date of enactment of this Act, the 8
Secretary of the Interior and the Secretary of Agri- 9
culture shall establish a joint Geographic Informa- 10
tion System mapping system for use in— 11
(A) tracking surface resource values to aid 12
in resource management; and 13
(B) processing surface use plans of oper- 14
ation and applications for permits to drill. 15
SEC. 345. ESTIMATES OF OIL AND GAS RESOURCES UNDER- 16
LYING ONSHORE FEDERAL LAND. 17
(a) ASSESSMENT.—Section 604 of the Energy Act of 18
2000 (42 U.S.C. 6217) is amended— 19
(1) in subsection (a)— 20
(A) in paragraph (1)— 21
(i) by striking ‘‘reserve’’; and 22
(ii) by striking ‘‘and’’ after the semi- 23
colon; and 24
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(B) by striking paragraph (2) and insert- 1
ing the following: 2
‘‘(2) the extent and nature of any restrictions 3
or impediments to the development of the resources, 4
including— 5
‘‘(A) impediments to the timely granting of 6
leases; 7
‘‘(B) post-lease restrictions, impediments, 8
or delays on development for conditions of ap- 9
proval, applications for permits to drill, or proc- 10
essing of environmental permits; and 11
‘‘(C) permits or restrictions associated with 12
transporting the resources for entry into com- 13
merce; and 14
‘‘(3) the quantity of resources not produced or 15
introduced into commerce because of the restric- 16
tions.’’; 17
(2) in subsection (b)— 18
(A) by striking ‘‘reserve’’ and inserting 19
‘‘resource’’; and 20
(B) by striking ‘‘publically’’ and inserting 21
‘‘publicly’’; and 22
(3) by striking subsection (d) and inserting the 23
following: 24
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‘‘(d) ASSESSMENTS.—Using the inventory, the Sec- 1
retary of Energy shall make periodic assessments of eco- 2
nomically recoverable resources accounting for a range of 3
parameters such as current costs, commodity prices, tech- 4
nology, and regulations.’’. 5
(b) METHODOLOGY.—The Secretary of the Interior 6
shall use the same assessment methodology across all geo- 7
logical provinces, areas, and regions in preparing and 8
issuing national geological assessments to ensure accurate 9
comparisons of geological resources. 10
SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; AC- 11
TIONS CONCERNING REGULATIONS THAT 12
SIGNIFICANTLY AFFECT ENERGY SUPPLY, 13
DISTRIBUTION, OR USE. 14
(a) REQUIREMENT.—The head of each Federal agen- 15
cy shall require that before the Federal agency takes any 16
action that could have a significant adverse effect on the 17
supply of domestic energy resources from Federal public 18
land, the Federal agency taking the action shall comply 19
with Executive Order No. 13211 (42 U.S.C. 13201 note). 20
(b) GUIDANCE.—Not later than 180 days after the 21
date of enactment of this Act, the Secretary of Energy 22
shall publish guidance for purposes of this section describ- 23
ing what constitutes a significant adverse effect on the 24
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supply of domestic energy resources under Executive 1
Order No. 13211 (42 U.S.C. 13201 note). 2
(c) MEMORANDUM OF UNDERSTANDING.—The Sec- 3
retary of the Interior and the Secretary of Agriculture 4
shall include in the memorandum of understanding under 5
section 344 provisions for implementing subsection (a) of 6
this section. 7
SEC. 347. PILOT PROJECT TO IMPROVE FEDERAL PERMIT 8
COORDINATION. 9
(a) ESTABLISHMENT.—The Secretary of the Interior 10
(in this section referred to as the ‘‘Secretary’’) shall estab- 11
lish a Federal Permit Streamlining Pilot Project (in this 12
section referred to as the ‘‘Pilot Project’’). 13
(b) MEMORANDUM OF UNDERSTANDING.— 14
(1) IN GENERAL.—Not later than 90 days after 15
the date of enactment of this Act, the Secretary 16
shall enter into a memorandum of understanding 17
with the Secretary of Agriculture, the Administrator 18
of the Environmental Protection Agency, and the 19
Chief of Engineers of the Army Corps of Engineers 20
for purposes of this section. 21
(2) STATE PARTICIPATION.—The Secretary 22
may request that the Governors of Wyoming, Mon- 23
tana, Colorado, Utah, and New Mexico be signato- 24
ries to the memorandum of understanding. 25
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(c) DESIGNATION OF QUALIFIED STAFF.— 1
(1) IN GENERAL.—Not later than 30 days after 2
the date of the signing of the memorandum of un- 3
derstanding under subsection (b), all Federal signa- 4
tory parties shall assign to each of the field offices 5
identified in subsection (d), on a nonreimbursable 6
basis, an employee who has expertise in the regu- 7
latory issues relating to the office in which the em- 8
ployee is employed, including, as applicable, par- 9
ticular expertise in— 10
(A) the consultations and the preparation 11
of biological opinions under section 7 of the En- 12
dangered Species Act of 1973 (16 U.S.C. 13
1536); 14
(B) permits under section 404 of Federal 15
Water Pollution Control Act (33 U.S.C. 1344); 16
(C) regulatory matters under the Clean Air 17
Act (42 U.S.C. 7401 et seq.); 18
(D) planning under the National Forest 19
Management Act of 1976 (16 U.S.C. 472a et 20
seq.); and 21
(E) the preparation of analyses under the 22
National Environmental Policy Act of 1969 (42 23
U.S.C. 4321 et seq.). 24
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(2) DUTIES.—Each employee assigned under 1
paragraph (1) shall— 2
(A) not later than 90 days after the date 3
of assignment, report to the Bureau of Land 4
Management Field Managers in the office to 5
which the employee is assigned; 6
(B) be responsible for all issues relating to 7
the jurisdiction of the home office or agency of 8
the employee; and 9
(C) participate as part of the team of per- 10
sonnel working on proposed energy projects, 11
planning, and environmental analyses. 12
(d) FIELD OFFICES.—The following Bureau of Land 13
Management Field Offices shall serve as the Pilot Project 14
offices: 15
(1) Rawlins, Wyoming. 16
(2) Buffalo, Wyoming. 17
(3) Miles City, Montana 18
(4) Farmington, New Mexico. 19
(5) Carlsbad, New Mexico. 20
(6) Glenwood Springs, Colorado. 21
(7) Vernal, Utah. 22
(e) REPORTS.—Not later than 3 years after the date 23
of enactment of this Act, the Secretary shall transmit to 24
Congress a report that— 25
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(1) outlines the results of the Pilot Project to 1
date; and 2
(2) makes a recommendation to the President 3
regarding whether the Pilot Project should be imple- 4
mented throughout the United States. 5
(f) ADDITIONAL PERSONNEL.—The Secretary shall 6
assign to each field office identified in subsection (d) any 7
additional personnel that are necessary to ensure the ef- 8
fective implementation of— 9
(1) the Pilot Project; and 10
(2) other programs administered by the field of- 11
fices, including inspection and enforcement relating 12
to energy development on Federal land, in accord- 13
ance with the multiple use mandate of the Federal 14
Land Policy and Management Act of 1976 (43 15
U.S.C. 1701 et seq). 16
(g) SAVINGS PROVISION.—Nothing in this section 17
affects— 18
(1) the operation of any Federal or State law; 19
or 20
(2) any delegation of authority made by the 21
head of a Federal agency whose employees are par- 22
ticipating in the Pilot Project. 23
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SEC. 348. DEADLINE FOR CONSIDERATION OF APPLICA- 1
TIONS FOR PERMITS. 2
Section 17 of the Mineral Leasing Act (30 U.S.C. 3
226) is amended by adding at the end the following: 4
‘‘(p) DEADLINES FOR CONSIDERATION OF APPLICA- 5
TIONS FOR PERMITS.— 6
‘‘(1) IN GENERAL.—Not later than 10 days 7
after the date on which the Secretary receives an ap- 8
plication for any permit to drill, the Secretary 9
shall— 10
‘‘(A) notify the applicant that the applica- 11
tion is complete; or 12
‘‘(B) notify the applicant that information 13
is missing and specify any information that is 14
required to be submitted for the application to 15
be complete. 16
‘‘(2) ISSUANCE OR DEFERRAL.—Not later than 17
30 days after the applicant for a permit has sub- 18
mitted a complete application, the Secretary shall— 19
‘‘(A) issue the permit; or 20
‘‘(B)(i) defer decision on the permit; and 21
‘‘(ii) provide to the applicant a notice that 22
specifies any steps that the applicant could take 23
for the permit to be issued. 24
‘‘(3) REQUIREMENTS FOR DEFERRED APPLICA- 25
TIONS.— 26
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‘‘(A) IN GENERAL.—If the Secretary pro- 1
vides notice under paragraph (2)(B)(ii), the ap- 2
plicant shall have a period of 2 years from the 3
date of receipt of the notice in which to com- 4
plete all requirements specified by the Sec- 5
retary, including providing information needed 6
for compliance with the National Environmental 7
Policy Act of 1969 (42 U.S.C. 4321 et seq.). 8
‘‘(B) ISSUANCE OF DECISION ON PER- 9
MIT.—If the applicant completes the require- 10
ments within the period specified in subpara- 11
graph (A), the Secretary shall issue a decision 12
on the permit not later than 10 days after the 13
date of completion of the requirements de- 14
scribed in subparagraph (A). 15
‘‘(C) DENIAL OF PERMIT.—If the appli- 16
cant does not complete the requirements within 17
the period specified in subparagraph (A), the 18
Secretary shall deny the permit. 19
‘‘(q) REPORT.—On a quarterly basis, each field office 20
of the Bureau of Land Management and the Forest Serv- 21
ice shall transmit to the Secretary of the Interior or the 22
Secretary of Agriculture, respectively, a report that— 23
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‘‘(1) specifies the number of applications for 1
permits to drill received by the field office in the pe- 2
riod covered by the report; and 3
‘‘(2) describes how each of the applications was 4
disposed of by the field office.’’. 5
SEC. 349. CLARIFICATION OF FAIR MARKET RENTAL VALUE 6
DETERMINATIONS FOR PUBLIC LAND AND 7
FOREST SERVICE RIGHTS-OF-WAY. 8
(a) LINEAR RIGHTS-OF-WAY UNDER FEDERAL 9
LAND POLICY AND MANAGEMENT ACT OF 1976.—Section 10
504 of the Federal Land Policy and Management Act of 11
1976 (43 U.S.C. 1764) is amended by adding at the end 12
the following: 13
‘‘(k) DETERMINATION OF FAIR MARKET VALUE OF 14
LINEAR RIGHTS-OF-WAY.— 15
‘‘(1) IN GENERAL.—Effective beginning on the 16
date of the issuance of the rules required by para- 17
graph (2), for purposes of subsection (g), the Sec- 18
retary concerned shall determine the fair market 19
value for the use of land encumbered by a linear 20
right-of-way granted, issued, or renewed under this 21
title using the valuation method described in para- 22
graphs (2), (3), and (4). 23
‘‘(2) REVISIONS.—Not later than 1 year after 24
the date of enactment of this subsection— 25
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‘‘(A) the Secretary of the Interior shall 1
amend section 2803.1–2 of title 43, Code of 2
Federal Regulations, as in effect on the date of 3
enactment of this subsection, to revise the per 4
acre rental fee zone value schedule by State, 5
county, and type of linear right-of-way use to 6
reflect current values of land in each zone; and 7
‘‘(B) the Secretary of Agriculture shall 8
make the same revision for linear rights-of-way 9
granted, issued, or renewed under this title on 10
National Forest System land. 11
‘‘(3) UPDATES.—The Secretary concerned shall 12
annually update the schedule revised under para- 13
graph (2) by multiplying the current year’s rental 14
per acre by the annual change, second quarter to 15
second quarter (June 30 to June 30) in the Gross 16
National Product Implicit Price Deflator Index pub- 17
lished in the Survey of Current Business of the De- 18
partment of Commerce, Bureau of Economic Anal- 19
ysis. 20
‘‘(4) REVIEW.—If the cumulative change in the 21
index referred to in paragraph (3) exceeds 30 per- 22
cent, or the change in the 3-year average of the 1- 23
year Treasury interest rate used to determine per 24
acre rental fee zone values exceeds plus or minus 50 25
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percent, the Secretary concerned shall conduct a re- 1
view of the zones and rental per acre figures to de- 2
termine whether the value of Federal land has dif- 3
fered sufficiently from the index referred to in para- 4
graph (3) to warrant a revision in the base zones 5
and rental per acre figures. If, as a result of the re- 6
view, the Secretary concerned determines that such 7
a revision is warranted, the Secretary concerned 8
shall revise the base zones and rental per acre fig- 9
ures accordingly. Any revision of base zones and 10
rental per acre figure shall only affect lease rental 11
rates at inception or renewal.’’. 12
(b) RIGHTS-OF-WAY UNDER MINERAL LEASING 13
ACT.—Section 28(l) of the Mineral Leasing Act (30 14
U.S.C. 185(l)) is amended by inserting before the period 15
at the end the following: ‘‘using the valuation method de- 16
scribed in section 2803.1–2 of title 43, Code of Federal 17
Regulations, as revised in accordance with section 504(k) 18
of the Federal Land Policy and Management Act of 1976 19
(43 U.S.C. 1764(k))’’. 20
SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND COR- 21
RIDORS ON FEDERAL LAND. 22
(a) REPORT TO CONGRESS.— 23
(1) IN GENERAL.—Not later than 1 year after 24
the date of enactment of this Act, the Secretary of 25
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Agriculture and the Secretary of the Interior, in con- 1
sultation with the Secretary of Commerce, the Sec- 2
retary of Defense, the Secretary of Energy, and the 3
Federal Energy Regulatory Commission, shall sub- 4
mit to Congress a joint report— 5
(A) that addresses— 6
(i) the location of existing rights-of- 7
way and designated and de facto corridors 8
for oil and gas pipelines and electric trans- 9
mission and distribution facilities on Fed- 10
eral land; and 11
(ii) opportunities for additional oil 12
and gas pipeline and electric transmission 13
capacity within those rights-of-way and 14
corridors; and 15
(B) that includes a plan for making avail- 16
able, on request, to the appropriate Federal, 17
State, and local agencies, tribal governments, 18
and other persons involved in the siting of oil 19
and gas pipelines and electricity transmission 20
facilities Geographic Information System-based 21
information regarding the location of the exist- 22
ing rights-of-way and corridors and any planned 23
rights-of-way and corridors. 24
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(2) CONSULTATIONS AND CONSIDERATIONS.— 1
In preparing the report, the Secretary of the Interior 2
and the Secretary of Agriculture shall consult 3
with— 4
(A) other agencies of Federal, State, tribal, 5
or local units of government, as appropriate; 6
(B) persons involved in the siting of oil 7
and gas pipelines and electric transmission fa- 8
cilities; and 9
(C) other interested members of the public. 10
(3) LIMITATION.—The Secretary of the Interior 11
and the Secretary of Agriculture shall limit the dis- 12
tribution of the report and Geographic Information 13
System-based information referred to in paragraph 14
(1) as necessary for national and infrastructure se- 15
curity reasons, if either Secretary determines that 16
the information may be withheld from public disclo- 17
sure under a national security or other exception 18
under section 552(b) of title 5, United States Code. 19
(b) CORRIDOR DESIGNATIONS.— 20
(1) 11 CONTIGUOUS WESTERN STATES.—Not 21
later than 2 years after the date of enactment of 22
this Act, the Secretary of Agriculture, the Secretary 23
of Commerce, the Secretary of Defense, the Sec- 24
retary of Energy, and the Secretary of the Interior, 25
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in consultation with the Federal Energy Regulatory 1
Commission and the affected utility industries, shall 2
jointly— 3
(A) designate, under title V of the Federal 4
Land Policy and Management Act of 1976 (43 5
U.S.C. 1761 et seq.) and other applicable Fed- 6
eral laws, corridors for oil and gas pipelines and 7
electricity transmission and facilities on Federal 8
land in the eleven contiguous Western States 9
(as defined in section 103 of the Federal Land 10
Policy and Management Act of 1976 (43 U.S.C. 11
1702)); 12
(B) perform any environmental reviews 13
that may be required to complete the designa- 14
tions of corridors for the facilities on Federal 15
land in the eleven contiguous Western States; 16
and 17
(C) incorporate the designated corridors 18
into— 19
(i) the relevant departmental and 20
agency land use and resource management 21
plans; or 22
(ii) equivalent plans. 23
(2) OTHER STATES.—Not later than 4 years 24
after the date of enactment of this Act, the Sec- 25
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retary of Agriculture, the Secretary of Commerce, 1
the Secretary of Defense, the Secretary of Energy, 2
and the Secretary of the Interior, in consultation 3
with the Federal Energy Regulatory Commission 4
and the affected utility industries, shall jointly— 5
(A) identify corridors for oil and gas pipe- 6
lines and electricity transmission and distribu- 7
tion facilities on Federal land in the States 8
other than those described in paragraph (1); 9
and 10
(B) schedule prompt action to identify, 11
designate, and incorporate the corridors into 12
the land use plan. 13
(3) ONGOING RESPONSIBILITIES.—After com- 14
pleting the requirements under paragraphs (1) and 15
(2), the Secretary of Agriculture, the Secretary of 16
Commerce, the Secretary of Defense, the Secretary 17
of Energy, and the Secretary of the Interior, with 18
respect to lands under their respective jurisdictions, 19
in consultation with the Federal Energy Regulatory 20
Commission and the affected utility industries, shall 21
establish procedures that— 22
(A) ensure that additional corridors for oil 23
and gas pipelines and electricity transmission 24
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and distribution facilities on Federal land are 1
promptly identified and designated; and 2
(B) expedite applications to construct or 3
modify oil and gas pipelines and electricity 4
transmission and distribution facilities within 5
the corridors, taking into account prior analyses 6
and environmental reviews undertaken during 7
the designation of corridors. 8
(c) CONSIDERATIONS.—In carrying out this section, 9
the Secretaries shall take into account the need for up- 10
graded and new electricity transmission and distribution 11
facilities to— 12
(1) improve reliability; 13
(2) relieve congestion; and 14
(3) enhance the capability of the national grid 15
to deliver electricity. 16
(d) DEFINITION OF CORRIDOR.— 17
(1) IN GENERAL.—In this section and title V of 18
the Federal Land Policy and Management Act of 19
1976 (43 U.S.C. 1761 et seq.), the term ‘‘corridor’’ 20
means— 21
(A) a linear strip of land— 22
(i) with a width determined with con- 23
sideration given to technological, environ- 24
mental, and topographical factors; and 25
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(ii) that contains, or may in the fu- 1
ture contain, 1 or more utility, communica- 2
tion, or transportation facilities; 3
(B) a land use designation that is 4
established— 5
(i) by law; 6
(ii) by Secretarial Order; 7
(iii) through the land use planning 8
process; or 9
(iv) by other management decision; 10
and 11
(C) a designation made for the purpose of 12
establishing the preferred location of compatible 13
linear facilities and land uses. 14
(2) SPECIFICATIONS OF CORRIDOR.—On des- 15
ignation of a corridor under this section, the center- 16
line, width, and compatible uses of a corridor shall 17
be specified. 18
SEC. 351. CONSULTATION REGARDING ENERGY RIGHTS-OF- 19
WAY ON PUBLIC LAND. 20
(a) MEMORANDUM OF UNDERSTANDING.— 21
(1) IN GENERAL.—Not later than 6 months 22
after the date of enactment of this Act, the Sec- 23
retary of Energy, in consultation with the Secretary 24
of the Interior, the Secretary of Agriculture, and the 25
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Secretary of Defense with respect to lands under 1
their respective jurisdictions, shall enter into a 2
memorandum of understanding to coordinate all ap- 3
plicable Federal authorizations and environmental 4
reviews relating to a proposed or existing utility fa- 5
cility. To the maximum extent practicable under ap- 6
plicable law, the Secretary of Energy shall, to ensure 7
timely review and permit decisions, coordinate such 8
authorizations and reviews with any Indian tribes, 9
multi-State entities, and State agencies that are re- 10
sponsible for conducting any separate permitting 11
and environmental reviews of the affected utility fa- 12
cility. 13
(2) CONTENTS.—The memorandum of under- 14
standing shall include provisions that— 15
(A) establish— 16
(i) a unified right-of-way application 17
form; and 18
(ii) an administrative procedure for 19
processing right-of-way applications, in- 20
cluding lines of authority, steps in applica- 21
tion processing, and timeframes for appli- 22
cation processing; 23
(B) provide for coordination of planning 24
relating to the granting of the rights-of-way; 25
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(C) provide for an agreement among the 1
affected Federal agencies to prepare a single 2
environmental review document to be used as 3
the basis for all Federal authorization decisions; 4
and 5
(D) provide for coordination of use of 6
right-of-way stipulations to achieve consistency. 7
(b) NATURAL GAS PIPELINES.— 8
(1) IN GENERAL.—With respect to permitting 9
activities for interstate natural gas pipelines, the 10
May 2002 document entitled ‘‘Interagency Agree- 11
ment On Early Coordination Of Required Environ- 12
mental And Historic Preservation Reviews Con- 13
ducted In Conjunction With The Issuance Of Au- 14
thorizations To Construct And Operate Interstate 15
Natural Gas Pipelines Certificated By The Federal 16
Energy Regulatory Commission’’ shall constitute 17
compliance with subsection (a). 18
(2) REPORT.— 19
(A) IN GENERAL.—Not later than 1 year 20
after the date of enactment of this Act, and 21
every 2 years thereafter, agencies that are sig- 22
natories to the document referred to in para- 23
graph (1) shall transmit to Congress a report 24
on how the agencies under the jurisdiction of 25
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the Secretaries are incorporating and imple- 1
menting the provisions of the document referred 2
to in paragraph (1). 3
(B) CONTENTS.—The report shall 4
address— 5
(i) efforts to implement the provisions 6
of the document referred to in paragraph 7
(1); 8
(ii) whether the efforts have had a 9
streamlining effect; 10
(iii) further improvements to the per- 11
mitting process of the agency; and 12
(iv) recommendations for inclusion of 13
State and tribal governments in a coordi- 14
nated permitting process. 15
(c) DEFINITION OF UTILITY FACILITY.—In this sec- 16
tion, the term ‘‘utility facility’’ means any privately, pub- 17
licly, or cooperatively owned line, facility, or system— 18
(1) for the transportation of— 19
(A) oil, natural gas, synthetic liquid fuel, 20
or gaseous fuel; 21
(B) any refined product produced from oil, 22
natural gas, synthetic liquid fuel, or gaseous 23
fuel; or 24
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(C) products in support of the production 1
of material referred to in subparagraph (A) or 2
(B); 3
(2) for storage and terminal facilities in connec- 4
tion with the production of material referred to in 5
paragraph (1); or 6
(3) for the generation, transmission, and dis- 7
tribution of electric energy. 8
SEC. 352. RENEWABLE ENERGY ON FEDERAL LAND. 9
(a) REPORT.— 10
(1) IN GENERAL.—Not later than 24 months 11
after the date of enactment of this Act, the Sec- 12
retary of the Interior, in cooperation with the Sec- 13
retary of Agriculture, shall develop and transmit to 14
Congress a report that includes recommendations on 15
opportunities to develop renewable energy on— 16
(A) public lands under the jurisdiction of 17
the Secretary of the Interior; and 18
(B) National Forest System lands under 19
the jurisdiction of the Secretary of Agriculture. 20
(2) CONTENTS.—The report shall include— 21
(A) 5-year plans developed by the Sec- 22
retary of the Interior and the Secretary of Agri- 23
culture, respectively, for encouraging the devel- 24
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opment of renewable energy consistent with ap- 1
plicable law and management plans; 2
(B) an analysis of— 3
(i) the use of rights-of-way, leases, or 4
other methods to develop renewable energy 5
on such lands; 6
(ii) the anticipated benefits of grants, 7
loans, tax credits, or other provisions to 8
promote renewable energy development on 9
such lands; and 10
(iii) any issues that the Secretary of 11
the Interior or the Secretary of Agriculture 12
have encountered in managing renewable 13
energy projects on such lands, believe are 14
likely to arise in relation to the develop- 15
ment of renewable energy on such lands; 16
(C) a list, developed in consultation with 17
the Secretary of Energy and the Secretary of 18
Defense, of lands under the jurisdiction of the 19
Department of Energy or the Department of 20
Defense that would be suitable for development 21
for renewable energy, and any recommended 22
statutory and regulatory mechanisms for such 23
development; and 24
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(D) any recommendations relating to the 1
issues addressed in the report. 2
(b) NATIONAL ACADEMY OF SCIENCES STUDY.— 3
(1) IN GENERAL.—Not later than 90 days after 4
the date of enactment of this Act, the Secretary of 5
the Interior shall contract with the National Acad- 6
emy of Sciences to— 7
(A) study the potential for the development 8
of wind, solar, and ocean energy (including 9
tidal, wave, and thermal energy) on the outer 10
Continental Shelf; 11
(B) assess existing Federal authorities for 12
the development of such resources; and 13
(C) recommend statutory and regulatory 14
mechanisms for such development. 15
(2) TRANSMITTAL.—The results of the study 16
shall be transmitted to Congress not later than 2 17
years after the date of enactment of this Act. 18
(c) GENERATION CAPACITY OF ELECTRICITY FROM 19
RENEWABLE ENERGY RESOURCES ON PUBLIC LAND.— 20
The Secretary of the Interior shall, not later than 10 years 21
after the date of enactment of this Act, seek to approve 22
renewable energy projects located (or to be located) on 23
public lands with a generation capacity of at least 10,000 24
megawatts of electricity. 25
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SEC. 353. ELECTRICITY TRANSMISSION LINE RIGHT-OF- 1
WAY, CLEVELAND NATIONAL FOREST AND 2
ADJACENT PUBLIC LAND, CALIFORNIA. 3
(a) ISSUANCE.— 4
(1) IN GENERAL.—Not later than 60 days after 5
the completion of the environmental reviews under 6
subsection (c), the Secretary of the Interior and the 7
Secretary of Agriculture shall issue all necessary 8
grants, easements, permits, plan amendments, and 9
other approvals to allow for the siting and construc- 10
tion of a high-voltage electricity transmission line 11
right-of-way running approximately north to south 12
through the Trabuco Ranger District of the Cleve- 13
land National Forest in the State of California and 14
adjacent lands under the jurisdiction of the Bureau 15
of Land Management and the Forest Service. 16
(2) INCLUSIONS.—The right-of-way approvals 17
under paragraph (1) shall provide all necessary Fed- 18
eral authorization from the Secretary of the Interior 19
and the Secretary of Agriculture for the routing, 20
construction, operation, and maintenance of a 500- 21
kilovolt transmission line capable of meeting the 22
long-term electricity transmission needs of the region 23
between the existing Valley-Serrano transmission 24
line to the north and the Telega-Escondido trans- 25
mission line to the south, and for connecting to fu- 26
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ture generating capacity that may be developed in 1
the region. 2
(b) PROTECTION OF WILDERNESS AREAS.—The Sec- 3
retary of the Interior and the Secretary of Agriculture 4
shall not allow any portion of a transmission line right- 5
of-way corridor identified in subsection (a) to enter any 6
identified wilderness area in existence as of the date of 7
enactment of this Act. 8
(c) ENVIRONMENTAL AND ADMINISTRATIVE RE- 9
VIEWS.— 10
(1) DEPARTMENT OF INTERIOR OR LOCAL 11
AGENCY.—The Secretary of the Interior, acting 12
through the Director of the Bureau of Land Man- 13
agement, shall be the lead Federal agency with over- 14
all responsibility to ensure completion of required 15
environmental and other reviews of the approvals to 16
be issued under subsection (a). 17
(2) NATIONAL FOREST SYSTEM LAND.—For the 18
portions of the corridor on National Forest System 19
lands, the Secretary of Agriculture shall complete all 20
required environmental reviews and administrative 21
actions in coordination with the Secretary of the In- 22
terior. 23
(3) EXPEDITIOUS COMPLETION.—The reviews 24
required for issuance of the approvals under sub- 25
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section (a) shall be completed not later than 1 year 1
after the date of the enactment of this Act. 2
(d) OTHER TERMS AND CONDITIONS.—The trans- 3
mission line right-of-way shall be subject to such terms 4
and conditions as the Secretary of the Interior and the 5
Secretary of Agriculture consider necessary, based on the 6
environmental reviews under subsection (c), to protect the 7
value of historic, cultural, and natural resources under the 8
jurisdiction of the Secretary of the Interior or the Sec- 9
retary of Agriculture. 10
(e) PREFERENCE AMONG PROPOSALS.—The Sec- 11
retary of the Interior and the Secretary of Agriculture 12
shall give a preference to any application or preapplication 13
proposal for a transmission line right-of-way referred to 14
in subsection (a) that was submitted before December 31, 15
2002, over all other applications and proposals for the 16
same or a similar right-of-way submitted on or after that 17
date. 18
SEC. 354. SENSE OF CONGRESS REGARDING DEVELOPMENT 19
OF MINERALS UNDER PADRE ISLAND NA- 20
TIONAL SEASHORE. 21
(a) FINDINGS.—Congress finds the following: 22
(1) Pursuant to Public Law 87–712 (16 U.S.C. 23
459d et seq.; popularly known as the ‘‘Federal Ena- 24
bling Act’’) and various deeds and actions under 25
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that Act, the United States is the owner of only the 1
surface estate of certain lands constituting the 2
Padre Island National Seashore. 3
(2) Ownership of the oil, gas, and other min- 4
erals in the subsurface estate of the lands consti- 5
tuting the Padre Island National Seashore was never 6
acquired by the United States, and ownership of 7
those interests is held by the State of Texas and pri- 8
vate parties. 9
(3) Public Law 87–712 (16 U.S.C. 459d et 10
seq.)— 11
(A) expressly contemplated that the United 12
States would recognize the ownership and fu- 13
ture development of the oil, gas, and other min- 14
erals in the subsurface estate of the lands con- 15
stituting the Padre Island National Seashore by 16
the owners and their mineral lessees; and 17
(B) recognized that approval of the State 18
of Texas was required to create Padre Island 19
National Seashore. 20
(4) Approval was given for the creation of 21
Padre Island National Seashore by the State of 22
Texas through Tex. Rev. Civ. Stat. Ann. Art. 23
6077(t) (Vernon 1970), which expressly recognized 24
that development of the oil, gas, and other minerals 25
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in the subsurface of the lands constituting Padre Is- 1
land National Seashore would be conducted with full 2
rights of ingress and egress under the laws of the 3
State of Texas. 4
(b) SENSE OF CONGRESS.—It is the sense of Con- 5
gress that with regard to Federal law, any regulation of 6
the development of oil, gas, or other minerals in the sub- 7
surface of the lands constituting Padre Island National 8
Seashore should be made as if those lands retained the 9
status that the lands had on September 27, 1962. 10
SEC. 355. ENCOURAGING PROHIBITION OF OFF-SHORE 11
DRILLING IN THE GREAT LAKES. 12
Congress encourages— 13
(1) the States of Illinois, Michigan, New York, 14
Pennsylvania, and Wisconsin to continue to prohibit 15
offshore drilling in the Great Lakes for oil and gas; 16
and 17
(2) the States of Indiana, Minnesota, and Ohio 18
to enact a prohibition of such drilling. 19
SEC. 356. FINGER LAKES NATIONAL FOREST WITHDRAWAL. 20
All Federal land within the boundary of Finger Lakes 21
National Forest in the State of New York is withdrawn 22
from— 23
(1) all forms of entry, appropriation, or disposal 24
under the public land laws; and 25
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(2) disposition under all laws relating to oil and 1
gas leasing. 2
SEC. 357. STUDY ON LEASE EXCHANGES IN THE ROCKY 3
MOUNTAIN FRONT. 4
(a) DEFINITIONS.—For the purposes of this section: 5
(1) BADGER-TWO MEDICINE AREA.—The term 6
‘‘Badger-Two Medicine Area’’ means the Forest 7
Service land located in— 8
(A) T. 31 N., R. 12–13 W.; 9
(B) T. 30 N., R. 11–13 W.; 10
(C) T. 29 N., R. 10–16 W.; and 11
(D) T. 28 N., R. 10–14 W. 12
(2) BLACKLEAF AREA.—The term ‘‘Blackleaf 13
Area’’ means the Federal land owned by the Forest 14
Service and Bureau of Land Management that is lo- 15
cated in— 16
(A) T. 27 N., R. 9 W.; 17
(B) T. 26 N., R. 9–10 W.; 18
(C) T. 25 N., R. 8–10 W.; and 19
(D) T. 24 N., R. 8–9 W. 20
(3) ELIGIBLE LESSEE.—The term ‘‘eligible les- 21
see’’ means a lessee under a nonproducing lease. 22
(4) NONPRODUCING LEASE.—The term ‘‘non- 23
producing lease’’ means a Federal oil or gas lease— 24
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(A) that is in existence and in good stand- 1
ing on the date of enactment of this Act; and 2
(B) that is located in the Badger-Two 3
Medicine Area or the Blackleaf Area. 4
(5) SECRETARY.—The term ‘‘Secretary’’ means 5
the Secretary of the Interior. 6
(6) STATE.—The term ‘‘State’’ means the State 7
of Montana. 8
(b) EVALUATION.— 9
(1) IN GENERAL.—The Secretary, in consulta- 10
tion with the Governor of the State, and the eligible 11
lessees, shall evaluate opportunities for domestic oil 12
and gas production through the exchange of the 13
nonproducing leases. 14
(2) REQUIREMENTS.—In carrying out the eval- 15
uation under subsection (a), the Secretary shall— 16
(A) consider opportunities for domestic 17
production of oil and gas through— 18
(i) the exchange of the nonproducing 19
leases for oil and gas lease tracts of com- 20
parable value in the State; and 21
(ii) the issuance of bidding, royalty, or 22
rental credits for Federal oil and gas leases 23
in the State in exchange for the cancella- 24
tion of the nonproducing leases; 25
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(B) consider any other appropriate means 1
to exchange, or provide compensation for the 2
cancellation of, nonproducing leases, subject to 3
the consent of the eligible lessees; 4
(C) consider the views of any interested 5
persons, including the State; 6
(D) determine the level of interest of the 7
eligible lessees in exchanging the nonproducing 8
leases; 9
(E) assess the economic impact on the les- 10
sees and the State of lease exchange, lease can- 11
cellation, and final judicial or administrative de- 12
cisions related to the nonproducing leases; and 13
(F) provide recommendations on— 14
(i) whether to pursue an exchange of 15
the nonproducing leases; 16
(ii) any changes in laws (including 17
regulations) that are necessary for the Sec- 18
retary to carry out the exchange; and 19
(iii) any other appropriate means to 20
exchange or provide compensation for the 21
cancellation of a nonproducing lease, sub- 22
ject to the consent of the eligible lessee. 23
(c) VALUATION OF NONPRODUCING LEASES.—For 24
the purpose of the evaluation under subsection (a), the 25
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value of a nonproducing lease shall be an amount equal 1
to the difference between— 2
(1) the sum of— 3
(A) the amount paid by the eligible lessee 4
for the nonproducing lease; 5
(B) any direct expenditures made by the 6
eligible lessee before the transmittal of the re- 7
port in subsection (c) associated with the explo- 8
ration and development of the nonproducing 9
lease; and 10
(C) interest on any amounts under sub- 11
paragraphs (A) and (B) during the period be- 12
ginning on the date on which the amount was 13
paid and ending on the date on which credits 14
are issued under subsection (b)(2)(A)(ii); and 15
(2) the sum of the revenues from the nonpro- 16
ducing lease. 17
(d) REPORT TO CONGRESS.—Not later than 2 years 18
after the date of the enactment of this Act, the Secretary 19
shall initiate the evaluation in subsection (b) and transmit 20
to Congress a report on the evaluation. 21
SEC. 358. FEDERAL COALBED METHANE REGULATION. 22
Any State currently on the list of Affected States es- 23
tablished under section 1339(b) of the Energy Policy Act 24
of 1992 (42 U.S.C. 13368(b)) shall be removed from the 25
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list if, not later than 3 years after the date of enactment 1
of this Act, the State takes, or prior to the date of enact- 2
ment has taken, any of the actions required for removal 3
from the list under such section 1339(b). 4
SEC. 359. LIVINGSTON PARISH MINERAL RIGHTS TRANS- 5
FER. 6
(a) AMENDMENTS.—Section 102 of Public Law 102– 7
562 (106 Stat. 4234) is amended— 8
(1) by striking ‘‘(a) IN GENERAL.— 9
(2) by striking ‘‘and subject to the reservation 10
in subsection (b),’’; and 11
(3) by striking subsection (b). 12
(b) IMPLEMENTATION OF AMENDMENT.—The Sec- 13
retary of the Interior shall execute the legal instruments 14
necessary to effectuate the amendment made by sub- 15
section (a)(3). 16
Subtitle D—Alaska Natural Gas 17
Pipeline 18
SEC. 371. SHORT TITLE. 19
This subtitle may be cited as the ‘‘Alaska Natural 20
Gas Pipeline Act’’. 21
SEC. 372. DEFINITIONS. 22
In this subtitle: 23
(1) ALASKA NATURAL GAS.—The term ‘‘Alaska 24
natural gas’’ means natural gas derived from the 25
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area of the State of Alaska lying north of 64 degrees 1
north latitude. 2
(2) ALASKA NATURAL GAS TRANSPORTATION 3
PROJECT.—The term ‘‘Alaska natural gas transpor- 4
tation project’’ means any natural gas pipeline sys- 5
tem that carries Alaska natural gas to the border 6
between Alaska and Canada (including related facili- 7
ties subject to the jurisdiction of the Commission) 8
that is authorized under— 9
(A) the Alaska Natural Gas Transpor- 10
tation Act of 1976 (15 U.S.C. 719 et seq.); or 11
(B) section 373. 12
(3) ALASKA NATURAL GAS TRANSPORTATION 13
SYSTEM.—The term ‘‘Alaska natural gas transpor- 14
tation system’’ means the Alaska natural gas trans- 15
portation project authorized under the Alaska Nat- 16
ural Gas Transportation Act of 1976 (15 U.S.C. 17
719 et seq.) and designated and described in section 18
2 of the President’s decision. 19
(4) COMMISSION.—The term ‘‘Commission’’ 20
means the Federal Energy Regulatory Commission. 21
(5) FEDERAL COORDINATOR.—The term ‘‘Fed- 22
eral Coordinator’’ means the head of the Office of 23
the Federal Coordinator for Alaska Natural Gas 24
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Transportation Projects established by section 1
376(a). 2
(6) PRESIDENT’S DECISION.—The term ‘‘Presi- 3
dent’s decision’’ means the decision and report to 4
Congress on the Alaska natural gas transportation 5
system— 6
(A) issued by the President on September 7
22, 1977, in accordance with section 7 of the 8
Alaska Natural Gas Transportation Act of 9
1976 (15 U.S.C. 719e); and 10
(B) approved by Public Law 95–158 (15 11
U.S.C. 719f note; 91 Stat. 1268). 12
(7) SECRETARY.—The term ‘‘Secretary’’ means 13
the Secretary of Energy. 14
(8) STATE.—The term ‘‘State’’ means the State 15
of Alaska. 16
SEC. 373. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN- 17
IENCE AND NECESSITY. 18
(a) AUTHORITY OF THE COMMISSION.—Notwith- 19
standing the Alaska Natural Gas Transportation Act of 20
1976 (15 U.S.C. 719 et seq.), the Commission may, in 21
accordance with section 7(c) of the Natural Gas Act (15 22
U.S.C. 717f(c)), consider and act on an application for 23
the issuance of a certificate of public convenience and ne- 24
cessity authorizing the construction and operation of an 25
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Alaska natural gas transportation project other than the 1
Alaska natural gas transportation system. 2
(b) ISSUANCE OF CERTIFICATE.— 3
(1) IN GENERAL.—The Commission shall issue 4
a certificate of public convenience and necessity au- 5
thorizing the construction and operation of an Alas- 6
ka natural gas transportation project under this sec- 7
tion if the applicant has satisfied the requirements 8
of section 7(e) of the Natural Gas Act (15 U.S.C. 9
717f(e)). 10
(2) CONSIDERATIONS.—In considering an appli- 11
cation under this section, the Commission shall pre- 12
sume that— 13
(A) a public need exists to construct and 14
operate the proposed Alaska natural gas trans- 15
portation project; and 16
(B) sufficient downstream capacity will 17
exist to transport the Alaska natural gas mov- 18
ing through the project to markets in the con- 19
tiguous United States. 20
(c) EXPEDITED APPROVAL PROCESS.—Not later 21
than 60 days after the date of issuance of the final envi- 22
ronmental impact statement under section 374 for an 23
Alaska natural gas transportation project, the Commission 24
shall issue a final order granting or denying any applica- 25
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tion for a certificate of public convenience and necessity 1
for the project under section 7(c) of the Natural Gas Act 2
(15 U.S.C. 717f(c)) and this section. 3
(d) PROHIBITION OF CERTAIN PIPELINE ROUTE.— 4
No license, permit, lease, right-of-way, authorization, or 5
other approval required under Federal law for the con- 6
struction of any pipeline to transport natural gas from 7
land within the Prudhoe Bay oil and gas lease area may 8
be granted for any pipeline that follows a route that— 9
(1) traverses land beneath navigable waters (as 10
defined in section 2 of the Submerged Lands Act 11
(43 U.S.C. 1301)) beneath, or the adjacent shoreline 12
of, the Beaufort Sea; and 13
(2) enters Canada at any point north of 68 de- 14
grees north latitude. 15
(e) OPEN SEASON.— 16
(1) IN GENERAL.—Not later than 120 days 17
after the date of enactment of this Act, the Commis- 18
sion shall issue regulations governing the conduct of 19
open seasons for Alaska natural gas transportation 20
projects (including procedures for the allocation of 21
capacity). 22
(2) REGULATIONS.—The regulations referred to 23
in paragraph (1) shall— 24
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(A) include the criteria for and timing of 1
any open seasons; 2
(B) promote competition in the explo- 3
ration, development, and production of Alaska 4
natural gas; and 5
(C) for any open season for capacity ex- 6
ceeding the initial capacity, provide the oppor- 7
tunity for the transportation of natural gas 8
other than from the Prudhoe Bay and Point 9
Thomson units. 10
(3) APPLICABILITY.—Except in a case in which 11
an expansion is ordered in accordance with section 12
375, initial or expansion capacity on any Alaska nat- 13
ural gas transportation project shall be allocated in 14
accordance with procedures to be established by the 15
Commission in regulations issued under paragraph 16
(1). 17
(f) PROJECTS IN THE CONTIGUOUS UNITED 18
STATES.— 19
(1) IN GENERAL.—An application for additional 20
or expanded pipeline facilities that may be required 21
to transport Alaska natural gas from Canada to 22
markets in the contiguous United States may be 23
made in accordance with the Natural Gas Act (15 24
U.S.C. 717a et seq.). 25
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(2) EXPANSION.—To the extent that a pipeline 1
facility described in paragraph (1) includes the ex- 2
pansion of any facility constructed in accordance 3
with the Alaska Natural Gas Transportation Act of 4
1976 (15 U.S.C. 719 et seq.), that Act shall con- 5
tinue to apply. 6
(g) STUDY OF IN-STATE NEEDS.—The holder of the 7
certificate of public convenience and necessity issued, 8
modified, or amended by the Commission for an Alaska 9
natural gas transportation project shall demonstrate that 10
the holder has conducted a study of Alaska in-State needs, 11
including tie-in points along the Alaska natural gas trans- 12
portation project for in-State access. 13
(h) ALASKA ROYALTY GAS.— 14
(1) IN GENERAL.—Except as provided in para- 15
graph (2), the Commission, on a request by the 16
State and after a hearing, may provide for reason- 17
able access to the Alaska natural gas transportation 18
project by the State (or State designee) for the 19
transportation of royalty gas of the State for the 20
purpose of meeting local consumption needs within 21
the State. 22
(2) EXCEPTION.—The rates of shippers of sub- 23
scribed capacity on an Alaska natural gas transpor- 24
tation project described in paragraph (1), as in ef- 25
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112
fect as of the date on which access under that para- 1
graph is granted, shall not be increased as a result 2
of such access. 3
(i) REGULATIONS.—The Commission may issue such 4
regulations as are necessary to carry out this section. 5
SEC. 374. ENVIRONMENTAL REVIEWS. 6
(a) COMPLIANCE WITH NEPA.—The issuance of a 7
certificate of public convenience and necessity authorizing 8
the construction and operation of any Alaska natural gas 9
transportation project under section 373 shall be treated 10
as a major Federal action significantly affecting the qual- 11
ity of the human environment within the meaning of sec- 12
tion 102(2)(C) of the National Environmental Policy Act 13
of 1969 (42 U.S.C. 4332(2)(C)). 14
(b) DESIGNATION OF LEAD AGENCY.— 15
(1) IN GENERAL.—The Commission— 16
(A) shall be the lead agency for purposes 17
of complying with the National Environmental 18
Policy Act of 1969 (42 U.S.C. 4321 et seq.); 19
and 20
(B) shall be responsible for preparing the 21
environmental impact statement required by 22
section 102(2)(c) of that Act (42 U.S.C. 23
4332(2)(c)) with respect to an Alaska natural 24
gas transportation project under section 373. 25
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(2) CONSOLIDATION OF STATEMENTS.—In car- 1
rying out paragraph (1), the Commission shall pre- 2
pare a single environmental impact statement, which 3
shall consolidate the environmental reviews of all 4
Federal agencies considering any aspect of the Alas- 5
ka natural gas transportation project covered by the 6
environmental impact statement. 7
(c) OTHER AGENCIES.— 8
(1) IN GENERAL.—Each Federal agency consid- 9
ering an aspect of the construction and operation of 10
an Alaska natural gas transportation project under 11
section 373 shall— 12
(A) cooperate with the Commission; and 13
(B) comply with deadlines established by 14
the Commission in the preparation of the envi- 15
ronmental impact statement under this section. 16
(2) SATISFACTION OF NEPA REQUIREMENTS.— 17
The environmental impact statement prepared under 18
this section shall be adopted by each Federal agency 19
described in paragraph (1) in satisfaction of the re- 20
sponsibilities of the Federal agency under section 21
102(2)(C) of the National Environmental Policy Act 22
of 1969 (42 U.S.C. 4332(2)(C)) with respect to the 23
Alaska natural gas transportation project covered by 24
the environmental impact statement. 25
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(d) EXPEDITED PROCESS.—The Commission shall— 1
(1) not later than 1 year after the Commission 2
determines that the application under section 373 3
with respect to an Alaska natural gas transportation 4
project is complete, issue a draft environmental im- 5
pact statement under this section; and 6
(2) not later than 180 days after the date of 7
issuance of the draft environmental impact state- 8
ment, issue a final environmental impact statement, 9
unless the Commission for good cause determines 10
that additional time is needed. 11
SEC. 375. PIPELINE EXPANSION. 12
(a) AUTHORITY.—With respect to any Alaska natural 13
gas transportation project, on a request by 1 or more per- 14
sons and after giving notice and an opportunity for a hear- 15
ing, the Commission may order the expansion of the Alas- 16
ka natural gas project if the Commission determines that 17
such an expansion is required by the present and future 18
public convenience and necessity. 19
(b) RESPONSIBILITIES OF COMMISSION.—Before or- 20
dering an expansion under subsection (a), the Commission 21
shall— 22
(1) approve or establish rates for the expansion 23
service that are designed to ensure the recovery, on 24
an incremental or rolled-in basis, of the cost associ- 25
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ated with the expansion (including a reasonable rate 1
of return on investment); 2
(2) ensure that the rates do not require existing 3
shippers on the Alaska natural gas transportation 4
project to subsidize expansion shippers; 5
(3) find that a proposed shipper will comply 6
with, and the proposed expansion and the expansion 7
of service will be undertaken and implemented based 8
on, terms and conditions consistent with the tariff of 9
the Alaska natural gas transportation project in ef- 10
fect as of the date of the expansion; 11
(4) find that the proposed facilities will not ad- 12
versely affect the financial or economic viability of 13
the Alaska natural gas transportation project; 14
(5) find that the proposed facilities will not ad- 15
versely affect the overall operations of the Alaska 16
natural gas transportation project; 17
(6) find that the proposed facilities will not di- 18
minish the contract rights of existing shippers to 19
previously subscribed certificated capacity; 20
(7) ensure that all necessary environmental re- 21
views have been completed; and 22
(8) find that adequate downstream facilities 23
exist or are expected to exist to deliver incremental 24
Alaska natural gas to market. 25
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(c) REQUIREMENT FOR A FIRM TRANSPORTATION 1
AGREEMENT.—Any order of the Commission issued in ac- 2
cordance with this section shall be void unless the person 3
requesting the order executes a firm transportation agree- 4
ment with the Alaska natural gas transportation project 5
within such reasonable period of time as the order may 6
specify. 7
(d) LIMITATION.—Nothing in this section expands or 8
otherwise affects any authority of the Commission with 9
respect to any natural gas pipeline located outside the 10
State. 11
(e) REGULATIONS.—The Commission may issue such 12
regulations as are necessary to carry out this section. 13
SEC. 376. FEDERAL COORDINATOR. 14
(a) ESTABLISHMENT.—There is established, as an 15
independent office in the executive branch, the Office of 16
the Federal Coordinator for Alaska Natural Gas Trans- 17
portation Projects. 18
(b) FEDERAL COORDINATOR.— 19
(1) APPOINTMENT.—The Office shall be headed 20
by a Federal Coordinator for Alaska Natural Gas 21
Transportation Projects, who shall be appointed by 22
the President, by and with the advice and consent 23
of the Senate, to serve a term to last until 1 year 24
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following the completion of the project referred to in 1
section 373. 2
(2) COMPENSATION.—The Federal Coordinator 3
shall be compensated at the rate prescribed for level 4
III of the Executive Schedule (5 U.S.C. 5314). 5
(c) DUTIES.—The Federal Coordinator shall be re- 6
sponsible for— 7
(1) coordinating the expeditious discharge of all 8
activities by Federal agencies with respect to an 9
Alaska natural gas transportation project; and 10
(2) ensuring the compliance of Federal agencies 11
with the provisions of this subtitle. 12
(d) REVIEWS AND ACTIONS OF OTHER FEDERAL 13
AGENCIES.— 14
(1) EXPEDITED REVIEWS AND ACTIONS.—All 15
reviews conducted and actions taken by any Federal 16
agency relating to an Alaska natural gas transpor- 17
tation project authorized under this section shall be 18
expedited, in a manner consistent with completion of 19
the necessary reviews and approvals by the deadlines 20
under this subtitle. 21
(2) PROHIBITION OF CERTAIN TERMS AND CON- 22
DITIONS.—No Federal agency may include in any 23
certificate, right-of-way, permit, lease, or other au- 24
thorization issued to an Alaska natural gas trans- 25
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portation project any term or condition that may be 1
permitted, but is not required, by any applicable law 2
if the Federal Coordinator determines that the term 3
or condition would prevent or impair in any signifi- 4
cant respect the expeditious construction and oper- 5
ation, or an expansion, of the Alaska natural gas 6
transportation project. 7
(3) PROHIBITION OF CERTAIN ACTIONS.—Un- 8
less required by law, no Federal agency shall add to, 9
amend, or abrogate any certificate, right-of-way, per- 10
mit, lease, or other authorization issued to an Alas- 11
ka natural gas transportation project if the Federal 12
Coordinator determines that the action would pre- 13
vent or impair in any significant respect the expedi- 14
tious construction and operation, or an expansion, of 15
the Alaska natural gas transportation project. 16
(4) LIMITATION.—The Federal Coordinator 17
shall not have authority to— 18
(A) override— 19
(i) the implementation or enforcement 20
of regulations issued by the Commission 21
under section 373; or 22
(ii) an order by the Commission to ex- 23
pand the project under section 375; or 24
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(B) impose any terms, conditions, or re- 1
quirements in addition to those imposed by the 2
Commission or any agency with respect to con- 3
struction and operation, or an expansion of, the 4
project. 5
(e) STATE COORDINATION.— 6
(1) IN GENERAL.—The Federal Coordinator 7
and the State shall enter into a joint surveillance 8
and monitoring agreement similar to the agreement 9
in effect during construction of the Trans-Alaska 10
Pipeline, to be approved by the President and the 11
Governor of the State, for the purpose of monitoring 12
the construction of the Alaska natural gas transpor- 13
tation project. 14
(2) PRIMARY RESPONSIBILITY.—With respect 15
to an Alaska natural gas transportation project— 16
(A) the Federal Government shall have pri- 17
mary surveillance and monitoring responsibility 18
in areas where the Alaska natural gas transpor- 19
tation project crosses Federal land or private 20
land; and 21
(B) the State government shall have pri- 22
mary surveillance and monitoring responsibility 23
in areas where the Alaska natural gas transpor- 24
tation project crosses State land. 25
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(f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS 1
AND AUTHORITY.—On appointment of the Federal Coor- 2
dinator by the President, all of the functions and authority 3
of the Office of Federal Inspector of Construction for the 4
Alaska Natural Gas Transportation System vested in the 5
Secretary under section 3012(b) of the Energy Policy Act 6
of 1992 (15 U.S.C. 719e note; Public Law 102–486), in- 7
cluding all functions and authority described and enumer- 8
ated in the Reorganization Plan No. 1 of 1979 (44 Fed. 9
Reg. 33663), Executive Order No. 12142 of June 21, 10
1979 (44 Fed. Reg. 36927), and section 5 of the Presi- 11
dent’s decision, shall be transferred to the Federal Coordi- 12
nator. 13
(g) TEMPORARY AUTHORITY.—The functions, au- 14
thorities, duties, and responsibilities of the Federal Coor- 15
dinator shall be vested in the Secretary until the later of 16
the appointment of the Federal Coordinator by the Presi- 17
dent, or 18 months after the date of enactment of this 18
Act. 19
SEC. 377. JUDICIAL REVIEW. 20
(a) EXCLUSIVE JURISDICTION.—Except for review by 21
the Supreme Court on writ of certiorari, the United States 22
Court of Appeals for the District of Columbia Circuit shall 23
have original and exclusive jurisdiction to determine— 24
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(1) the validity of any final order or action (in- 1
cluding a failure to act) of any Federal agency or of- 2
ficer under this subtitle; 3
(2) the constitutionality of any provision of this 4
subtitle, or any decision made or action taken under 5
this subtitle; or 6
(3) the adequacy of any environmental impact 7
statement prepared under the National Environ- 8
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 9
with respect to any action under this subtitle. 10
(b) DEADLINE FOR FILING CLAIM.—A claim arising 11
under this subtitle may be brought not later than 60 days 12
after the date of the decision or action giving rise to the 13
claim. 14
(c) EXPEDITED CONSIDERATION.—The United 15
States Court of Appeals for the District of Columbia Cir- 16
cuit shall set any action brought under subsection (a) for 17
expedited consideration, taking into account the national 18
interest of enhancing national energy security by providing 19
access to the significant gas reserves in Alaska needed to 20
meet the anticipated demand for natural gas. 21
(d) AMENDMENT OF THE ALASKA NATURAL GAS 22
TRANSPORTATION ACT OF 1976.—Section 10(c) of the 23
Alaska Natural Gas Transportation Act of 1976 (15 24
U.S.C. 719h) is amended— 25
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(1) by striking ‘‘(c)(1) A claim’’ and inserting 1
the following: 2
‘‘(c) JURISDICTION.— 3
‘‘(1) SPECIAL COURTS.— 4
‘‘(A) IN GENERAL.—A claim’’; 5
(2) by striking ‘‘Such court shall have’’ and in- 6
serting the following: 7
‘‘(B) EXCLUSIVE JURISDICTION.—The 8
Special Court shall have’’; 9
(3) by inserting after paragraph (1) the fol- 10
lowing: 11
‘‘(2) EXPEDITED CONSIDERATION.—The Spe- 12
cial Court shall set any action brought under this 13
section for expedited consideration, taking into ac- 14
count the national interest described in section 2.’’; 15
and 16
(4) in paragraph (3), by striking ‘‘(3) The en- 17
actment’’ and inserting the following: 18
‘‘(3) ENVIRONMENTAL IMPACT STATEMENTS.— 19
The enactment’’. 20
SEC. 378. STATE JURISDICTION OVER IN-STATE DELIVERY 21
OF NATURAL GAS. 22
(a) LOCAL DISTRIBUTION.—Any facility receiving 23
natural gas from an Alaska natural gas transportation 24
project for delivery to consumers within the State— 25
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(1) shall be deemed to be a local distribution fa- 1
cility within the meaning of section 1(b) of the Nat- 2
ural Gas Act (15 U.S.C. 717(b)); and 3
(2) shall not be subject to the jurisdiction of the 4
Commission. 5
(b) ADDITIONAL PIPELINES.—Except as provided in 6
section 373(d), nothing in this subtitle shall preclude or 7
otherwise affect a future natural gas pipeline that may 8
be constructed to deliver natural gas to Fairbanks, An- 9
chorage, Matanuska-Susitna Valley, or the Kenai penin- 10
sula or Valdez or any other site in the State for consump- 11
tion within or distribution outside the State. 12
(c) RATE COORDINATION.— 13
(1) IN GENERAL.—In accordance with the Nat- 14
ural Gas Act (15 U.S.C. 717a et seq.), the Commis- 15
sion shall establish rates for the transportation of 16
natural gas on any Alaska natural gas transpor- 17
tation project. 18
(2) CONSULTATION.—In carrying out para- 19
graph (1), the Commission, in accordance with sec- 20
tion 17(b) of the Natural Gas Act (15 U.S.C. 21
717p(b)), shall consult with the State regarding 22
rates (including rate settlements) applicable to nat- 23
ural gas transported on and delivered from the Alas- 24
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ka natural gas transportation project for use within 1
the State. 2
SEC. 379. STUDY OF ALTERNATIVE MEANS OF CONSTRUC- 3
TION. 4
(a) REQUIREMENT OF STUDY.—If no application for 5
the issuance of a certificate or amended certificate of pub- 6
lic convenience and necessity authorizing the construction 7
and operation of an Alaska natural gas transportation 8
project has been filed with the Commission by the date 9
that is 18 months after the date of enactment of this Act, 10
the Secretary shall conduct a study of alternative ap- 11
proaches to the construction and operation of such an 12
Alaska natural gas transportation project. 13
(b) SCOPE OF STUDY.—The study under subsection 14
(a) shall take into consideration the feasibility of— 15
(1) establishing a Federal Government corpora- 16
tion to construct an Alaska natural gas transpor- 17
tation project; and 18
(2) securing alternative means of providing 19
Federal financing and ownership (including alter- 20
native combinations of Government and private cor- 21
porate ownership) of the Alaska natural gas trans- 22
portation project. 23
(c) CONSULTATION.—In conducting the study under 24
subsection (a), the Secretary shall consult with the Sec- 25
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retary of the Treasury and the Secretary of the Army (act- 1
ing through the Chief of Engineers). 2
(d) REPORT.—On completion of any study under sub- 3
section (a), the Secretary shall submit to Congress a re- 4
port that describes— 5
(1) the results of the study; and 6
(2) any recommendations of the Secretary (in- 7
cluding proposals for legislation to implement the 8
recommendations). 9
SEC. 380. CLARIFICATION OF ANGTA STATUS AND AU- 10
THORITIES. 11
(a) SAVINGS CLAUSE.—Nothing in this subtitle 12
affects— 13
(1) any decision, certificate, permit, right-of- 14
way, lease, or other authorization issued under sec- 15
tion 9 of the Alaska Natural Gas Transportation Act 16
of 1976 (15 U.S.C. 719g); or 17
(2) any Presidential finding or waiver issued in 18
accordance with that Act. 19
(b) CLARIFICATION OF AUTHORITY TO AMEND 20
TERMS AND CONDITIONS TO MEET CURRENT PROJECT 21
REQUIREMENTS.—Any Federal agency responsible for 22
granting or issuing any certificate, permit, right-of-way, 23
lease, or other authorization under section 9 of the Alaska 24
Natural Gas Transportation Act of 1976 (15 U.S.C. 25
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719g) may add to, amend, or rescind any term or condi- 1
tion included in the certificate, permit, right-of-way, lease, 2
or other authorization to meet current project require- 3
ments (including the physical design, facilities, and tariff 4
specifications), if the addition, amendment, or rescission— 5
(1) would not compel any change in the basic 6
nature and general route of the Alaska natural gas 7
transportation system as designated and described in 8
section 2 of the President’s decision; or 9
(2) would not otherwise prevent or impair in 10
any significant respect the expeditious construction 11
and initial operation of the Alaska natural gas 12
transportation system. 13
(c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec- 14
retary shall require the sponsor of the Alaska natural gas 15
transportation system to submit such updated environ- 16
mental data, reports, permits, and impact analyses as the 17
Secretary determines are necessary to develop detailed 18
terms, conditions, and compliance plans required by sec- 19
tion 5 of the President’s decision. 20
SEC. 381. SENSE OF CONGRESS CONCERNING USE OF 21
STEEL MANUFACTURED IN NORTH AMERICA 22
NEGOTIATION OF A PROJECT LABOR AGREE- 23
MENT. 24
It is the sense of Congress that— 25
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(1) an Alaska natural gas transportation 1
project would provide significant economic benefits 2
to the United States and Canada; and 3
(2) to maximize those benefits, the sponsors of 4
the Alaska natural gas transportation project should 5
make every effort to— 6
(A) use steel that is manufactured in 7
North America; and 8
(B) negotiate a project labor agreement to 9
expedite construction of the pipeline. 10
SEC. 382. SENSE OF CONGRESS AND STUDY CONCERNING 11
PARTICIPATION BY SMALL BUSINESS CON- 12
CERNS. 13
(a) DEFINITION OF SMALL BUSINESS CONCERN.— 14
In this section, the term ‘‘small business concern’’ has the 15
meaning given the term in section 3(a) of the Small Busi- 16
ness Act (15 U.S.C. 632(a)). 17
(b) SENSE OF CONGRESS.—It is the sense of Con- 18
gress that— 19
(1) an Alaska natural gas transportation 20
project would provide significant economic benefits 21
to the United States and Canada; and 22
(2) to maximize those benefits, the sponsors of 23
the Alaska natural gas transportation project should 24
maximize the participation of small business con- 25
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128
cerns in contracts and subcontracts awarded in car- 1
rying out the project. 2
(c) STUDY.— 3
(1) IN GENERAL.—The Comptroller General of 4
the United States shall conduct a study to determine 5
the extent to which small business concerns partici- 6
pate in the construction of oil and gas pipelines in 7
the United States. 8
(2) REPORT.—Not later that 1 year after the 9
date of enactment of this Act, the Comptroller Gen- 10
eral shall submit to Congress a report that describes 11
results of the study under paragraph (1). 12
(3) UPDATES.—The Comptroller General 13
shall— 14
(A) update the study at least once every 5 15
years until construction of an Alaska natural 16
gas transportation project is completed; and 17
(B) on completion of each update, submit 18
to Congress a report containing the results of 19
the update. 20
SEC. 383. ALASKA PIPELINE CONSTRUCTION TRAINING 21
PROGRAM. 22
(a) PROGRAM.— 23
(1) ESTABLISHMENT.—The Secretary of Labor 24
(in this section referred to as the ‘‘Secretary’’) shall 25
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make grants to the Alaska Workforce Investment 1
Board— 2
(A) to recruit and train adult and dis- 3
located workers in Alaska, including Alaska Na- 4
tives, in the skills required to construct and op- 5
erate an Alaska gas pipeline system; and 6
(B) for the design and construction of a 7
training facility to be located in Fairbanks, 8
Alaska, to support an Alaska gas pipeline train- 9
ing program. 10
(2) COORDINATION WITH EXISTING PRO- 11
GRAMS.—The training program established with the 12
grants authorized under paragraph (1) shall be con- 13
sistent with the vision and goals set forth in the 14
State of Alaska Unified Plan, as developed pursuant 15
to the Workforce Investment Act of 1998 (29 U.S.C. 16
2801 et seq.). 17
(b) REQUIREMENTS FOR GRANTS.—The Secretary 18
shall make a grant under subsection (a) only if— 19
(1) the Governor of the State of Alaska re- 20
quests the grant funds and certifies in writing to the 21
Secretary that there is a reasonable expectation that 22
the construction of the Alaska natural gas pipeline 23
system will commence by the date that is 2 years 24
after the date of the certification; and 25
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(2) the Secretary of Energy concurs in writing 1
to the Secretary with the certification made under 2
paragraph (1) after considering— 3
(A) the status of necessary Federal and 4
State permits; 5
(B) the availability of financing for the 6
Alaska natural gas pipeline project; and 7
(C) other relevant factors. 8
(c) AUTHORIZATION OF APPROPRIATIONS.—There 9
are authorized to be appropriated to the Secretary to carry 10
out this section $20,000,000. Not more than 15 percent 11
of the funds may be used for the facility described in sub- 12
section (a)(1)(B). 13
SEC. 384. SENSE OF CONGRESS CONCERNING NATURAL 14
GAS DEMAND. 15
It is the sense of Congress that— 16
(1) North American demand for natural gas 17
will increase dramatically over the course of the next 18
several decades; 19
(2) both the Alaska Natural Gas Pipeline and 20
the McKenzie Delta Natural Gas project in Canada 21
will be necessary to help meet the increased demand 22
for natural gas in North America; 23
(3) Federal and State officials should work to- 24
gether with officials in Canada to ensure both 25
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131
projects can move forward in a mutually beneficial 1
fashion; 2
(4) Federal and State officials should acknowl- 3
edge that the smaller scope, fewer permitting re- 4
quirements, and lower cost of the McKenzie Delta 5
project means it will most likely be completed before 6
the Alaska Natural Gas Pipeline; 7
(5) natural gas production in the 48 contiguous 8
States and Canada will not be able to meet all do- 9
mestic demand in the coming decades; and 10
(6) as a result, natural gas delivered from Alas- 11
kan North Slope will not displace or reduce the com- 12
mercial viability of Canadian natural gas produced 13
from the McKenzie Delta or production from the 48 14
contiguous States. 15
SEC. 385. SENSE OF CONGRESS CONCERNING ALASKAN 16
OWNERSHIP. 17
It is the sense of Congress that— 18
(1) Alaska Native Regional Corporations, com- 19
panies owned and operated by Alaskans, and indi- 20
vidual Alaskans should have the opportunity to own 21
shares of the Alaska natural gas pipeline in a way 22
that promotes economic development for the State; 23
and 24
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132
(2) to facilitate economic development in the 1
State, all project sponsors should negotiate in good 2
faith with any willing Alaskan person that desires to 3
be involved in the project. 4
SEC. 386. LOAN GUARANTEES. 5
(a) AUTHORITY.—(1) The Secretary may enter into 6
agreements with 1 or more holders of a certificate of pub- 7
lic convenience and necessity issued under section 373(b) 8
of this Act or section 9 of the Alaska Natural Gas Trans- 9
portation Act of 1976 (15 U.S.C. 719g) to issue Federal 10
guarantee instruments with respect to loans and other 11
debt obligations for a qualified infrastructure project. 12
(2) Subject to the requirements of this section, the 13
Secretary may also enter into agreements with 1 or more 14
owners of the Canadian portion of a qualified infrastruc- 15
ture project to issue Federal guarantee instruments with 16
respect to loans and other debt obligations for a qualified 17
infrastructure project as though such owner were a holder 18
described in paragraph (1). 19
(3) The authority of the Secretary to issue Federal 20
guarantee instruments under this section for a qualified 21
infrastructure project shall expire on the date that is 2 22
years after the date on which the final certificate of public 23
convenience and necessity (including any Canadian certifi- 24
cates of public convenience and necessity) is issued for the 25
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project. A final certificate shall be considered to have been 1
issued when all certificates of public convenience and ne- 2
cessity have been issued that are required for the initial 3
transportation of commercially economic quantities of nat- 4
ural gas from Alaska to the continental United States. 5
(b) CONDITIONS.—(1) The Secretary may issue a 6
Federal guarantee instrument for a qualified infrastruc- 7
ture project only after a certificate of public convenience 8
and necessity under section 373(b) of this Act or an 9
amended certificate under section 9 of the Alaska Natural 10
Gas Transportation Act of 1976 (15 U.S.C. 719g) has 11
been issued for the project. 12
(2) The Secretary may issue a Federal guarantee in- 13
strument under this section for a qualified infrastructure 14
project only if the loan or other debt obligation guaranteed 15
by the instrument has been issued by an eligible lender. 16
(3) The Secretary shall not require as a condition of 17
issuing a Federal guarantee instrument under this section 18
any contractual commitment or other form of credit sup- 19
port of the sponsors (other than equity contribution com- 20
mitments and completion guarantees), or any throughput 21
or other guarantee from prospective shippers greater than 22
such guarantees as shall be required by the project own- 23
ers. 24
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(c) LIMITATIONS ON AMOUNTS.—(1) The amount of 1
loans and other debt obligations guaranteed under this 2
section for a qualified infrastructure project shall not ex- 3
ceed 80 percent of the total capital costs of the project, 4
including interest during construction. 5
(2) The principal amount of loans and other debt ob- 6
ligations guaranteed under this section shall not exceed, 7
in the aggregate, $18,000,000,000, which amount shall be 8
indexed for United States dollar inflation from the date 9
of enactment of this Act, as measured by the Consumer 10
Price Index. 11
(d) LOAN TERMS AND FEES.—(1) The Secretary 12
may issue Federal guarantee instruments under this sec- 13
tion that take into account repayment profiles and grace 14
periods justified by project cash flows and project-specific 15
considerations. The term of any loan guaranteed under 16
this section shall not exceed 30 years. 17
(2) An eligible lender may assess and collect from the 18
borrower such other fees and costs associated with the ap- 19
plication and origination of the loan or other debt obliga- 20
tion as are reasonable and customary for a project finance 21
transaction in the oil and gas sector. 22
(e) REGULATIONS.—The Secretary may issue regula- 23
tions to carry out this section. 24
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135
(f) AUTHORIZATION OF APPROPRIATIONS.—There 1
are authorized to be appropriated such sums as may be 2
necessary to cover the cost of loan guarantees under this 3
section, as defined by section 502(5) of the Federal Credit 4
Reform Act of 1990 (2 U.S.C. 661a(5)). Such sums shall 5
remain available until expended. 6
(g) DEFINITIONS.—In this section, the following defi- 7
nitions apply: 8
(1) The term ‘‘Consumer Price Index’’ means 9
the Consumer Price Index for all-urban consumers, 10
United States city average, as published by the Bu- 11
reau of Labor Statistics, or if such index shall cease 12
to be published, any successor index or reasonable 13
substitute thereof. 14
(2) The term ‘‘eligible lender’’ means any non- 15
Federal qualified institutional buyer (as defined by 16
section 230.144A(a) of title 17, Code of Federal 17
Regulations (or any successor regulation), known as 18
Rule 144A(a) of the Securities and Exchange Com- 19
mission and issued under the Securities Act of 20
1933), including— 21
(A) a qualified retirement plan (as defined 22
in section 4974(c) of the Internal Revenue Code 23
of 1986 (26 U.S.C. 4974(c)) that is a qualified 24
institutional buyer; and 25
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136
(B) a governmental plan (as defined in 1
section 414(d) of the Internal Revenue Code of 2
1986 (26 U.S.C. 414(d)) that is a qualified in- 3
stitutional buyer. 4
(3) The term ‘‘Federal guarantee instrument’’ 5
means any guarantee or other pledge by the Sec- 6
retary to pledge the full faith and credit of the 7
United States to pay all of the principal and interest 8
on any loan or other debt obligation entered into by 9
a holder of a certificate of public convenience and 10
necessity. 11
(4) The term ‘‘qualified infrastructure project’’ 12
means an Alaskan natural gas transportation project 13
consisting of the design, engineering, finance, con- 14
struction, and completion of pipelines and related 15
transportation and production systems (including 16
gas treatment plants), and appurtenances thereto, 17
that are used to transport natural gas from the 18
Alaska North Slope to the continental United 19
States. 20
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November 14, 2003 (10:56 AM)

Title IV - Coal

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE IV—COAL 1
Subtitle A—Clean Coal Power 2
Initiative 3
SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 4
(a) CLEAN COAL POWER INITIATIVE.—There are au- 5
thorized to be appropriated to the Secretary of Energy (re- 6
ferred to in this title as the ‘‘Secretary’’) to carry out the 7
activities authorized by this subtitle $200,000,000 for 8
each of fiscal years 2004 through 2012, to remain avail- 9
able until expended. 10
(b) REPORT.—The Secretary shall submit to Con- 11
gress the report required by this subsection not later than 12
March 31, 2005. The report shall include, with respect 13
to subsection (a), a 10-year plan containing— 14
(1) a detailed assessment of whether the aggre- 15
gate funding levels provided under subsection (a) are 16
the appropriate funding levels for that program; 17
(2) a detailed description of how proposals will 18
be solicited and evaluated, including a list of all ac- 19
tivities expected to be undertaken; 20
(3) a detailed list of technical milestones for 21
each coal and related technology that will be pur- 22
sued; and 23
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November 14, 2003 (10:57 AM)
2
(4) a detailed description of how the program 1
will avoid problems enumerated in General Account- 2
ing Office reports on the Clean Coal Technology 3
Program, including problems that have resulted in 4
unspent funds and projects that failed either finan- 5
cially or scientifically. 6
SEC. 402. PROJECT CRITERIA. 7
(a) IN GENERAL.—The Secretary shall not provide 8
funding under this subtitle for any project that does not 9
advance efficiency, environmental performance, and cost 10
competitiveness well beyond the level of technologies that 11
are in commercial service or have been demonstrated on 12
a scale that the Secretary determines is sufficient to dem- 13
onstrate that commercial service is viable as of the date 14
of enactment of this Act. 15
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER 16
INITIATIVE.— 17
(1) GASIFICATION PROJECTS.— 18
(A) IN GENERAL.—In allocating the funds 19
made available under section 401(a), the Sec- 20
retary shall ensure that at least 60 percent of 21
the funds are used only for projects on coal- 22
based gasification technologies, including gasifi- 23
cation combined cycle, gasification fuel cells, 24
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3
gasification coproduction, and hybrid gasifi- 1
cation/combustion. 2
(B) TECHNICAL MILESTONES.—The Sec- 3
retary shall periodically set technical milestones 4
specifying the emission and thermal efficiency 5
levels that coal gasification projects under this 6
subtitle shall be designed, and reasonably ex- 7
pected, to achieve. The technical milestones 8
shall become more restrictive during the life of 9
the program. The Secretary shall set the peri- 10
odic milestones so as to achieve by 2020 coal 11
gasification projects able— 12
(i) to remove 99 percent of sulfur di- 13
oxide; 14
(ii) to emit not more than .05 lbs of 15
NOx per million Btu; 16
(iii) to achieve substantial reductions 17
in mercury emissions; and 18
(iv) to achieve a thermal efficiency 19
of— 20
(I) 60 percent for coal of more 21
than 9,000 Btu; 22
(II) 59 percent for coal of 7,000 23
to 9,000 Btu; and 24
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4
(III) 50 percent for coal of less 1
than 7,000 Btu. 2
(2) OTHER PROJECTS.—The Secretary shall pe- 3
riodically set technical milestones and ensure that up 4
to 40 percent of the funds appropriated pursuant to 5
section 401(a) are used for projects not described in 6
paragraph (1). The milestones shall specify the 7
emission and thermal efficiency levels that projects 8
funded under this paragraph shall be designed to 9
and reasonably expected to achieve. The technical 10
milestones shall become more restrictive during the 11
life of the program. The Secretary shall set the peri- 12
odic milestones so as to achieve by 2010 projects 13
able— 14
(A) to remove 97 percent of sulfur dioxide; 15
(B) to emit no more than .08 lbs of NOx 16
per million Btu; 17
(C) to achieve substantial reductions in 18
mercury emissions; and 19
(D) to achieve a thermal efficiency of— 20
(i) 45 percent for coal of more than 21
9,000 Btu; 22
(ii) 44 percent for coal of 7,000 to 23
9,000 Btu; and 24
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5
(iii) 40 percent for coal of less than 1
7,000 Btu. 2
(3) CONSULTATION.—Before setting the tech- 3
nical milestones under paragraphs (1)(B) and (2), 4
the Secretary shall consult with the Administrator of 5
the Environmental Protection Agency and interested 6
entities, including coal producers, industries using 7
coal, organizations to promote coal or advanced coal 8
technologies, environmental organizations, and orga- 9
nizations representing workers. 10
(4) EXISTING UNITS.—In the case of projects 11
at units in existence on the date of enactment of this 12
Act, in lieu of the thermal efficiency requirements 13
set forth in paragraph (1)(B)(iv) and (2)(D), the 14
milestones shall be designed to achieve an overall 15
thermal design efficiency improvement, compared to 16
the efficiency of the unit as operated, of not less 17
than— 18
(A) 7 percent for coal of more than 9,000 19
Btu; 20
(B) 6 percent for coal of 7,000 to 9,000 21
Btu; or 22
(C) 4 percent for coal of less than 7,000 23
Btu. 24
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6
(5) PERMITTED USES.—In carrying out this 1
subtitle, the Secretary may fund projects that in- 2
clude, as part of the project, the separation and cap- 3
ture of carbon dioxide. 4
(c) FINANCIAL CRITERIA.—The Secretary shall not 5
provide a funding award under this subtitle unless the re- 6
cipient documents to the satisfaction of the Secretary 7
that— 8
(1) the award recipient is financially viable 9
without the receipt of additional Federal funding; 10
(2) the recipient will provide sufficient informa- 11
tion to the Secretary to enable the Secretary to en- 12
sure that the award funds are spent efficiently and 13
effectively; and 14
(3) a market exists for the technology being 15
demonstrated or applied, as evidenced by statements 16
of interest in writing from potential purchasers of 17
the technology. 18
(d) FINANCIAL ASSISTANCE.—The Secretary shall 19
provide financial assistance to projects that meet the re- 20
quirements of subsections (a), (b), and (c) and are likely 21
to— 22
(1) achieve overall cost reductions in the utiliza- 23
tion of coal to generate useful forms of energy; 24
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7
(2) improve the competitiveness of coal among 1
various forms of energy in order to maintain a diver- 2
sity of fuel choices in the United States to meet elec- 3
tricity generation requirements; and 4
(3) demonstrate methods and equipment that 5
are applicable to 25 percent of the electricity gener- 6
ating facilities, using various types of coal, that use 7
coal as the primary feedstock as of the date of en- 8
actment of this Act. 9
(e) FEDERAL SHARE.—The Federal share of the cost 10
of a coal or related technology project funded by the Sec- 11
retary under this subtitle shall not exceed 50 percent. 12
(f) APPLICABILITY.—No technology, or level of emis- 13
sion reduction, shall be treated as adequately dem- 14
onstrated for purposes of section 111 of the Clean Air Act 15
(42 U.S.C. 7411), achievable for purposes of section 169 16
of that Act (42 U.S.C. 7479), or achievable in practice 17
for purposes of section 171 of that Act (42 U.S.C. 7501) 18
solely by reason of the use of such technology, or the 19
achievement of such emission reduction, by 1 or more fa- 20
cilities receiving assistance under this subtitle. 21
SEC. 403. REPORT. 22
Not later than 1 year after the date of enactment 23
of this Act, and once every 2 years thereafter through 24
2012, the Secretary, in consultation with other appro- 25
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November 14, 2003 (10:57 AM)
8
priate Federal agencies, shall submit to Congress a report 1
describing— 2
(1) the technical milestones set forth in section 3
402 and how those milestones ensure progress to- 4
ward meeting the requirements of subsections 5
(b)(1)(B) and (b)(2) of section 402; and 6
(2) the status of projects funded under this 7
subtitle. 8
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE. 9
As part of the program authorized in section 401, 10
the Secretary shall award competitive, merit-based grants 11
to universities for the establishment of Centers of Excel- 12
lence for Energy Systems of the Future. The Secretary 13
shall provide grants to universities that show the greatest 14
potential for advancing new clean coal technologies. 15
Subtitle B—Clean Power Projects 16
SEC. 411. COAL TECHNOLOGY LOAN. 17
There are authorized to be appropriated to the Sec- 18
retary $125,000,000 to provide a loan to the owner of the 19
experimental plant constructed under United States De- 20
partment of Energy cooperative agreement number DE– 21
FC–22–91PC90544 on such terms and conditions as the 22
Secretary determines, including interest rates and upfront 23
payments. 24
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9
SEC. 412. COAL GASIFICATION. 1
The Secretary is authorized to provide loan guaran- 2
tees for a project to produce energy from a plant using 3
integrated gasification combined cycle technology of at 4
least 400 megawatts in capacity that produces power at 5
competitive rates in deregulated energy generation mar- 6
kets and that does not receive any subsidy (direct or indi- 7
rect) from ratepayers. 8
SEC. 413. INTEGRATED GASIFICATION COMBINED CYCLE 9
TECHNOLOGY. 10
The Secretary is authorized to provide loan guaran- 11
tees for a project to produce energy from a plant using 12
integrated gasification combined cycle technology located 13
in a taconite-producing region of the United States that 14
is entitled under the law of the State in which the plant 15
is located to enter into a long-term contract approved by 16
a State Public Utility Commission to sell at least 450 17
megawatts of output to a utility. 18
SEC. 414. PETROLEUM COKE GASIFICATION. 19
The Secretary is authorized to provide loan guaran- 20
tees for at least 1 petroleum coke gasification 21
polygeneration project. 22
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Subtitle C—Federal Coal Leases 1
SEC. 421. REPEAL OF THE 160–ACRE LIMITATION FOR COAL 2
LEASES. 3
Section 3 of the Mineral Leasing Act (30 U.S.C. 203) 4
is amended— 5
(1) in the first sentence— 6
(A) by striking ‘‘Any person’’ and inserting 7
‘‘(a) Any person’’; 8
(B) by inserting a comma after ‘‘may’’; 9
and 10
(C) by striking ‘‘upon’’ and all that follows 11
through the period and inserting the following: 12
‘‘upon a finding by the Secretary that the 13
lease— 14
‘‘(1) would be in the interest of the United 15
States; 16
‘‘(2) would not displace a competitive interest 17
in the land; and 18
‘‘(3) would not include land or deposits that can 19
be developed as part of another potential or existing 20
operation; 21
secure modifications of the original coal lease by including 22
additional coal land or coal deposits contiguous or cor- 23
nering to those embraced in the lease, but in no event shall 24
the total area added by any modifications to an existing 25
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11
coal lease exceed 1280 acres, or add acreage larger than 1
the acreage in the original lease.’’; 2
(2) in the second sentence, by striking ‘‘The 3
Secretary’’ and inserting the following: 4
‘‘(b) The Secretary’’; and 5
(3) in the third sentence, by striking ‘‘The min- 6
imum’’ and inserting the following: 7
‘‘(c) The minimum’’. 8
SEC. 422. MINING PLANS. 9
Section 2(d)(2) of the Mineral Leasing Act (30 10
U.S.C. 202a(2)) is amended— 11
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 12
(2) by adding at the end the following: 13
‘‘(B) The Secretary may establish a period of more 14
than 40 years if the Secretary determines that the longer 15
period— 16
‘‘(i) will ensure the maximum economic recovery 17
of a coal deposit; or 18
‘‘(ii) the longer period is in the interest of the 19
orderly, efficient, or economic development of a coal 20
resource.’’. 21
SEC. 423. PAYMENT OF ADVANCE ROYALTIES UNDER COAL 22
LEASES. 23
Section 7(b) of the Mineral Leasing Act (30 U.S.C. 24
207(b)) is amended to read as follows: 25
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12
‘‘(b)(1) Each lease shall be subjected to the condition 1
of diligent development and continued operation of the 2
mine or mines, except in a case in which operations under 3
the lease are interrupted by strikes, the elements, or cas- 4
ualties not attributable to the lessee. 5
‘‘(2)(A) The Secretary of the Interior may suspend 6
the condition of continued operation upon the payment of 7
advance royalties, if the Secretary determines that the 8
public interest will be served by the suspension. 9
‘‘(B) Advance royalties required under subparagraph 10
(A) shall be computed based on— 11
‘‘(i) the average price for coal sold in the spot 12
market from the same region during the last month 13
of each applicable continued operation year; or 14
‘‘(ii) by using other methods established by the 15
Secretary of the Interior to capture the commercial 16
value of coal, 17
and based on commercial quantities, as defined by regula- 18
tion by the Secretary of the Interior. 19
‘‘(C) The aggregate number of years during the ini- 20
tial and any extended term of any lease for which advance 21
royalties may be accepted in lieu of the condition of contin- 22
ued operation shall not exceed 20. 23
‘‘(3) The amount of any production royalty paid for 24
any year shall be reduced (but not below 0) by the amount 25
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13
of any advance royalties paid under the lease, to the extent 1
that the advance royalties have not been used to reduce 2
production royalties for a prior year. 3
‘‘(4) The Secretary may, upon 6 months’ notice to 4
a lessee, cease to accept advance royalties in lieu of the 5
requirement of continued operation. 6
‘‘(5) Nothing in this subsection affects the require- 7
ment contained in the second sentence of subsection (a) 8
relating to commencement of production at the end of 10 9
years.’’. 10
SEC. 424. ELIMINATION OF DEADLINE FOR SUBMISSION OF 11
COAL LEASE OPERATION AND RECLAMATION 12
PLAN. 13
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 14
207(c)) is amended in the first sentence by striking ‘‘and 15
not later than three years after a lease is issued,’’. 16
SEC. 425. AMENDMENT RELATING TO FINANCIAL ASSUR- 17
ANCES WITH RESPECT TO BONUS BIDS. 18
Section 2(a) of the Mineral Leasing Act (30 U.S.C. 19
201(a)) is amended by adding at the end the following: 20
‘‘(4)(A) The Secretary shall not require a surety bond 21
or any other financial assurance to guarantee payment of 22
deferred bonus bid installments with respect to any coal 23
lease issued on a cash bonus bid to a lessee or successor 24
in interest having a history of a timely payment of noncon- 25
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14
tested coal royalties and advanced coal royalties in lieu 1
of production (where applicable) and bonus bid installment 2
payments. 3
‘‘(B) The Secretary may waive any requirement that 4
a lessee provide a surety bond or other financial assurance 5
for a coal lease issued before the date of the enactment 6
of the Energy Policy Act of 2003 only if the Secretary 7
determines that the lessee has a history of making timely 8
payments referred to in subparagraph (A). 9
‘‘(5) Notwithstanding any other provision of law, if 10
the lessee under a coal lease fails to pay any installment 11
of a deferred cash bonus bid within 10 days after the Sec- 12
retary provides written notice that payment of the install- 13
ment is past due— 14
‘‘(A) the lease shall automatically terminate; 15
and 16
‘‘(B) any bonus payments already made to the 17
United States with respect to the lease shall not be 18
returned to the lessee or credited in any future lease 19
sale.’’. 20
SEC. 426. INVENTORY REQUIREMENT. 21
(a) REVIEW OF ASSESSMENTS.— 22
(1) IN GENERAL.—The Secretary of the Inte- 23
rior, in consultation with the Secretary of Agri- 24
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15
culture and the Secretary, shall review coal assess- 1
ments and other available data to identify— 2
(A) public lands, other than National Park 3
lands, with coal resources; 4
(B) the extent and nature of any restric- 5
tions or impediments to the development of coal 6
resources on public lands identified under sub- 7
paragraph (A); and 8
(C) with respect to areas of such lands for 9
which sufficient data exists, resources of com- 10
pliant coal and supercompliant coal. 11
(2) DEFINITIONS.—In this subsection: 12
(A) COMPLIANT COAL.—The term ‘‘compli- 13
ant coal’’ means coal that contains not less 14
than 1.0 and not more than 1.2 pounds of sul- 15
fur dioxide per million Btu. 16
(B) SUPERCOMPLIANT COAL.—The term 17
‘‘supercompliant coal’’ means coal that contains 18
less than 1.0 pounds of sulfur dioxide per mil- 19
lion Btu. 20
(b) COMPLETION AND UPDATING OF THE INVEN- 21
TORY.—The Secretary of the Interior— 22
(1) shall complete the inventory under sub- 23
section (a)(1) by not later than 2 years after the 24
date of the enactment of this Act; and 25
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16
(2) shall update the inventory as the availability 1
of data and developments in technology warrant. 2
(c) REPORT.—The Secretary of the Interior shall 3
submit to Congress, and make publicly available— 4
(1) a report containing the inventory under this 5
section by not later than 2 years after the effective 6
date of this section; and 7
(2) each update of that inventory. 8
SEC. 427. APPLICATION OF AMENDMENTS. 9
The amendments made by this subtitle apply— 10
(1) with respect to any coal lease issued on or 11
after the date of enactment of this Act; and 12
(2) with respect to any coal lease issued before 13
the date of enactment of this Act, upon the earlier 14
of— 15
(A) the date of readjustment of the lease 16
as provided for by section 7(a) of the Mineral 17
Leasing Act (30 U.S.C. 207(a)); or 18
(B) the date the lessee requests such appli- 19
cation. 20
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Subtitle D—Coal and Related 1
Programs 2
SEC. 441. CLEAN AIR COAL PROGRAM. 3
(a) AMENDMENT.—The Energy Policy Act of 1992 4
is amended by adding the following new title at the end 5
thereof: 6
‘‘TITLE XXXI—CLEAN AIR COAL 7
PROGRAM 8
‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS. 9
‘‘(a) FINDINGS.—The Congress finds that— 10
‘‘(1) new environmental regulations present ad- 11
ditional challenges for coal-fired electrical generation 12
in the private marketplace; and 13
‘‘(2) the Department of Energy, in cooperation 14
with industry, has already fully developed and com- 15
mercialized several new clean-coal technologies that 16
will allow the clean use of coal. 17
‘‘(b) PURPOSES.—The purposes of this title are to— 18
‘‘(1) promote national energy policy and energy 19
security, diversity, and economic competitiveness 20
benefits that result from the increased use of coal; 21
‘‘(2) mitigate financial risks, reduce the cost, 22
and increase the marketplace acceptance of the new 23
clean coal technologies; and 24
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18
‘‘(3) advance the deployment of pollution con- 1
trol equipment to meet the current and future obli- 2
gations of coal-fired generation units regulated 3
under the Clean Air Act (42 U.S.C. 7402 and fol- 4
lowing). 5
‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. 6
‘‘The Secretary shall carry out a program to facilitate 7
production and generation of coal-based power and the in- 8
stallation of pollution control equipment. 9
‘‘SEC. 3103. AUTHORIZATION OF APPROPRIATIONS. 10
‘‘(a) POLLUTION CONTROL PROJECTS.—There are 11
authorized to be appropriated to the Secretary 12
$300,000,000 for fiscal year 2005, $100,000,000 for fis- 13
cal year 2006, $40,000,000 for fiscal year 2007, 14
$30,000,000 for fiscal year 2008, and $30,000,000 for fis- 15
cal year 2009, to remain available until expended, for car- 16
rying out the program for pollution control projects, which 17
may include— 18
‘‘(1) pollution control equipment and processes 19
for the control of mercury air emissions; 20
‘‘(2) pollution control equipment and processes 21
for the control of nitrogen dioxide air emissions or 22
sulfur dioxide emissions; 23
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19
‘‘(3) pollution control equipment and processes 1
for the mitigation or collection of more than one pol- 2
lutant; 3
‘‘(4) advanced combustion technology for the 4
control of at least two pollutants, including mercury, 5
particulate matter, nitrogen oxides, and sulfur diox- 6
ide, which may also be designed to improve the en- 7
ergy efficiency of the unit; and 8
‘‘(5) advanced pollution control equipment and 9
processes designed to allow use of the waste byprod- 10
ucts or other byproducts of the equipment or an 11
electrical generation unit designed to allow the use 12
of byproducts. 13
Funds appropriated under this subsection which are not 14
awarded before fiscal year 2011 may be applied to projects 15
under subsection (b), in addition to amounts authorized 16
under subsection (b). 17
‘‘(b) GENERATION PROJECTS.—There are authorized 18
to be appropriated to the Secretary $150,000,000 for fis- 19
cal year 2006, $250,000,000 for each of the fiscal years 20
2007 through 2011, and $100,000,000 for fiscal year 21
2012, to remain available until expended, for generation 22
projects and air pollution control projects. Such projects 23
may include— 24
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20
‘‘(1) coal-based electrical generation equipment 1
and processes, including gasification combined cycle 2
or other coal-based generation equipment and proc- 3
esses; 4
‘‘(2) associated environmental control equip- 5
ment, that will be cost-effective and that is designed 6
to meet anticipated regulatory requirements; 7
‘‘(3) coal-based electrical generation equipment 8
and processes, including gasification fuel cells, gas- 9
ification coproduction, and hybrid gasification/com- 10
bustion projects; and 11
‘‘(4) advanced coal-based electrical generation 12
equipment and processes, including oxidation com- 13
bustion techniques, ultra-supercritical boilers, and 14
chemical looping, which the Secretary determines 15
will be cost-effective and could substantially con- 16
tribute to meeting anticipated environmental or en- 17
ergy needs. 18
‘‘(c) LIMITATION.—Funds placed at risk during any 19
fiscal year for Federal loans or loan guarantees pursuant 20
to this title may not exceed 30 percent of the total funds 21
obligated under this title. 22
‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA. 23
‘‘The Secretary shall pursuant to authorizations con- 24
tained in section 3103 provide funding for air pollution 25
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21
control projects designed to facilitate compliance with 1
Federal and State environmental regulations, including 2
any regulation that may be established with respect to 3
mercury. 4
‘‘SEC. 3105. CRITERIA FOR GENERATION PROJECTS. 5
‘‘(a) CRITERIA.—The Secretary shall establish cri- 6
teria on which selection of individual projects described in 7
section 3103(b) should be based. The Secretary may mod- 8
ify the criteria as appropriate to reflect improvements in 9
equipment, except that the criteria shall not be modified 10
to be less stringent. These selection criteria shall include— 11
‘‘(1) prioritization of projects whose installation 12
is likely to result in significant air quality improve- 13
ments in nonattainment air quality areas; 14
‘‘(2) prioritization of projects that result in the 15
repowering or replacement of older, less efficient 16
units; 17
‘‘(3) documented broad interest in the procure- 18
ment of the equipment and utilization of the proc- 19
esses used in the projects by electrical generator 20
owners or operators; 21
‘‘(4) equipment and processes beginning in 22
2005 through 2010 that are projected to achieve an 23
thermal efficiency of— 24
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22
‘‘(A) 40 percent for coal of more than 1
9,000 Btu per pound based on higher heating 2
values; 3
‘‘(B) 38 percent for coal of 7,000 to 9,000 4
Btu per pound based on higher heating values; 5
and 6
‘‘(C) 36 percent for coal of less than 7,000 7
Btu per pound based on higher heating values, 8
except that energy used for coproduction or cogen- 9
eration shall not be counted in calculating the ther- 10
mal efficiency under this paragraph; and 11
‘‘(5) equipment and processes beginning in 12
2011 and 2012 that are projected to achieve an 13
thermal efficiency of— 14
‘‘(A) 45 percent for coal of more than 15
9,000 Btu per pound based on higher heating 16
values; 17
‘‘(B) 44 percent for coal of 7,000 to 9,000 18
Btu per pound based on higher heating values; 19
and 20
‘‘(C) 40 percent for coal of less than 7,000 21
Btu per pound based on higher heating values, 22
except that energy used for coproduction or cogen- 23
eration shall not be counted in calculating the ther- 24
mal efficiency under this paragraph. 25
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23
‘‘(b) SELECTION.—(1) In selecting the projects, up 1
to 25 percent of the projects selected may be either co- 2
production or cogeneration or other gasification projects, 3
but at least 25 percent of the projects shall be for the 4
sole purpose of electrical generation, and priority should 5
be given to equipment and projects less than 600 MW to 6
foster and promote standard designs. 7
‘‘(2) The Secretary shall give priority to projects that 8
have been developed and demonstrated that are not yet 9
cost competitive, and for coal energy generation projects 10
that advance efficiency, environmental performance, or 11
cost competitiveness significantly beyond the level of pollu- 12
tion control equipment that is in operation on a full scale. 13
‘‘SEC. 3106. FINANCIAL CRITERIA. 14
‘‘(a) IN GENERAL.—The Secretary shall only provide 15
financial assistance to projects that meet the requirements 16
of sections 3103 and 3104 and are likely to— 17
‘‘(1) achieve overall cost reductions in the utili- 18
zation of coal to generate useful forms of energy; 19
and 20
‘‘(2) improve the competitiveness of coal in 21
order to maintain a diversity of domestic fuel choices 22
in the United States to meet electricity generation 23
requirements. 24
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24
‘‘(b) CONDITIONS.—The Secretary shall not provide 1
a funding award under this title unless— 2
‘‘(1) the award recipient is financially viable 3
without the receipt of additional Federal funding; 4
and 5
‘‘(2) the recipient provides sufficient informa- 6
tion to the Secretary for the Secretary to ensure 7
that the award funds are spent efficiently and effec- 8
tively. 9
‘‘(c) EQUAL ACCESS.—The Secretary shall, to the ex- 10
tent practical, utilize cooperative agreement, loan guar- 11
antee, and direct Federal loan mechanisms designed to en- 12
sure that all electrical generation owners have equal access 13
to these technology deployment incentives. The Secretary 14
shall develop and direct a competitive solicitation process 15
for the selection of technologies and projects under this 16
title. 17
‘‘SEC. 3107. FEDERAL SHARE. 18
‘‘The Federal share of the cost of a coal or related 19
technology project funded by the Secretary under this title 20
shall not exceed 50 percent. For purposes of this title, 21
Federal funding includes only appropriated funds. 22
‘‘SEC. 3108. APPLICABILITY. 23
‘‘No technology, or level of emission reduction, shall 24
be treated as adequately demonstrated for purposes of sec- 25
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25
tion 111 of the Clean Air Act (42 U.S.C. 7411), achievable 1
for purposes of section 169 of the Clean Air Act (42 2
U.S.C. 7479), or achievable in practice for purposes of 3
section 171 of the Clean Air Act (42 U.S.C. 7501) solely 4
by reason of the use of such technology, or the achieve- 5
ment of such emission reduction, by one or more facilities 6
receiving assistance under this title.’’. 7
(b) TABLE OF CONTENTS AMENDMENT.—The table 8
of contents of the Energy Policy Act of 1992 is amended 9
by adding at the end the following: 10
‘‘TITLE XXXI—CLEAN AIR COAL PROGRAM
‘‘Sec. 3101. Findings; purposes; definitions.
‘‘Sec. 3102. Authorization of program.
‘‘Sec. 3103. Authorization of appropriations.
‘‘Sec. 3104. Air pollution control project criteria.
‘‘Sec. 3105. Criteria for generation projects.
‘‘Sec. 3106. Financial criteria.
‘‘Sec. 3107. Federal share.
‘‘Sec. 3108. Applicability.’’.
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Title V - Indian Energy

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE V—INDIAN ENERGY 1
SEC. 501. SHORT TITLE. 2
This title may be cited as the ‘‘Indian Tribal Energy 3
Development and Self-Determination Act of 2003’’. 4
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO- 5
GRAMS. 6
(a) IN GENERAL.—Title II of the Department of En- 7
ergy Organization Act (42 U.S.C. 7131 et seq.) is amend- 8
ed by adding at the end the following: 9
‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS 10
‘‘SEC. 217. (a) ESTABLISHMENT.—There is estab- 11
lished within the Department an Office of Indian Energy 12
Policy and Programs (referred to in this section as the 13
‘Office’). The Office shall be headed by a Director, who 14
shall be appointed by the Secretary and compensated at 15
a rate equal to that of level IV of the Executive Schedule 16
under section 5315 of title 5, United States Code. 17
‘‘(b) DUTIES OF DIRECTOR.—The Director, in ac- 18
cordance with Federal policies promoting Indian self-de- 19
termination and the purposes of this Act, shall provide, 20
direct, foster, coordinate, and implement energy planning, 21
education, management, conservation, and delivery pro- 22
grams of the Department that— 23
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2
‘‘(1) promote Indian tribal energy development, 1
efficiency, and use; 2
‘‘(2) reduce or stabilize energy costs; 3
‘‘(3) enhance and strengthen Indian tribal en- 4
ergy and economic infrastructure relating to natural 5
resource development and electrification; and 6
‘‘(4) bring electrical power and service to In- 7
dian land and the homes of tribal members located 8
on Indian lands or acquired, constructed, or im- 9
proved (in whole or in part) with Federal funds.’’. 10
(b) CONFORMING AMENDMENTS.— 11
(1) The table of contents of the Department of 12
Energy Organization Act (42 U.S.C. prec. 7101) is 13
amended— 14
(A) in the item relating to section 209, by 15
striking ‘‘Section’’ and inserting ‘‘Sec.’’; and 16
(B) by striking the items relating to sec- 17
tions 213 through 216 and inserting the fol- 18
lowing: 19
‘‘Sec. 213. Establishment of policy for National Nuclear Security Administration.
‘‘Sec. 214. Establishment of security, counterintelligence, and intelligence
policies.
‘‘Sec. 215. Office of Counterintelligence.
‘‘Sec. 216. Office of Intelligence.
‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’.
(2) Section 5315 of title 5, United States Code, 20
is amended by inserting ‘‘Director, Office of Indian 21
Energy Policy and Programs, Department of En- 22
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November 14, 2003 (10:58 AM)
3
ergy.’’ after ‘‘Inspector General, Department of En- 1
ergy.’’. 2
SEC. 503. INDIAN ENERGY. 3
(a) IN GENERAL.—Title XXVI of the Energy Policy 4
Act of 1992 (25 U.S.C. 3501 et seq.) is amended to read 5
as follows: 6
‘‘TITLE XXVI—INDIAN ENERGY 7
‘‘SEC. 2601. DEFINITIONS. 8
‘‘For purposes of this title: 9
‘‘(1) The term ‘Director’ means the Director of 10
the Office of Indian Energy Policy and Programs, 11
Department of Energy. 12
‘‘(2) The term ‘Indian land’ means— 13
‘‘(A) any land located within the bound- 14
aries of an Indian reservation, pueblo, or 15
rancheria; 16
‘‘(B) any land not located within the 17
boundaries of an Indian reservation, pueblo, or 18
rancheria, the title to which is held— 19
‘‘(i) in trust by the United States for 20
the benefit of an Indian tribe or an indi- 21
vidual Indian; 22
‘‘(ii) by an Indian tribe or an indi- 23
vidual Indian, subject to restriction against 24
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4
alienation under laws of the United States; 1
or 2
‘‘(iii) by a dependent Indian commu- 3
nity; and 4
‘‘(C) land that is owned by an Indian tribe 5
and was conveyed by the United States to a 6
Native Corporation pursuant to the Alaska Na- 7
tive Claims Settlement Act (43 U.S.C. 1601 et 8
seq.), or that was conveyed by the United 9
States to a Native Corporation in exchange for 10
such land. 11
‘‘(3) The term ‘Indian reservation’ includes— 12
‘‘(A) an Indian reservation in existence in 13
any State or States as of the date of enactment 14
of this paragraph; 15
‘‘(B) a public domain Indian allotment; 16
and 17
‘‘(C) a dependent Indian community lo- 18
cated within the borders of the United States, 19
regardless of whether the community is 20
located— 21
‘‘(i) on original or acquired territory 22
of the community; or 23
‘‘(ii) within or outside the boundaries 24
of any particular State. 25
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5
‘‘(4) The term ‘Indian tribe’ has the meaning 1
given the term in section 4 of the Indian Self-Deter- 2
mination and Education Assistance Act (25 U.S.C. 3
450b), except that the term ‘Indian tribe’, for the 4
purpose of paragraph (11) and sections 2603(b)(3) 5
and 2604, shall not include any Native Corporation. 6
‘‘(5) The term ‘integration of energy resources’ 7
means any project or activity that promotes the loca- 8
tion and operation of a facility (including any pipe- 9
line, gathering system, transportation system or fa- 10
cility, or electric transmission or distribution facility) 11
on or near Indian land to process, refine, generate 12
electricity from, or otherwise develop energy re- 13
sources on, Indian land. 14
‘‘(6) The term ‘Native Corporation’ has the 15
meaning given the term in section 3 of the Alaska 16
Native Claims Settlement Act (43 U.S.C. 1602). 17
‘‘(7) The term ‘organization’ means a partner- 18
ship, joint venture, limited liability company, or 19
other unincorporated association or entity that is es- 20
tablished to develop Indian energy resources. 21
‘‘(8) The term ‘Program’ means the Indian en- 22
ergy resource development program established 23
under section 2602(a). 24
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6
‘‘(9) The term ‘Secretary’ means the Secretary 1
of the Interior. 2
‘‘(10) The term ‘tribal energy resource develop- 3
ment organization’ means an organization of 2 or 4
more entities, at least 1 of which is an Indian tribe, 5
that has the written consent of the governing bodies 6
of all Indian tribes participating in the organization 7
to apply for a grant, loan, or other assistance au- 8
thorized by section 2602. 9
‘‘(11) The term ‘tribal land’ means any land or 10
interests in land owned by any Indian tribe, title to 11
which is held in trust by the United States or which 12
is subject to a restriction against alienation under 13
laws of the United States. 14
‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOP- 15
MENT. 16
‘‘(a) DEPARTMENT OF THE INTERIOR PROGRAM.— 17
‘‘(1) To assist Indian tribes in the development 18
of energy resources and further the goal of Indian 19
self-determination, the Secretary shall establish and 20
implement an Indian energy resource development 21
program to assist consenting Indian tribes and tribal 22
energy resource development organizations in achiev- 23
ing the purposes of this title. 24
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7
‘‘(2) In carrying out the Program, the Sec- 1
retary shall— 2
‘‘(A) provide development grants to Indian 3
tribes and tribal energy resource development 4
organizations for use in developing or obtaining 5
the managerial and technical capacity needed to 6
develop energy resources on Indian land, and to 7
properly account for resulting energy produc- 8
tion and revenues; 9
‘‘(B) provide grants to Indian tribes and 10
tribal energy resource development organiza- 11
tions for use in carrying out projects to pro- 12
mote the integration of energy resources, and to 13
process, use, or develop those energy resources, 14
on Indian land; and 15
‘‘(C) provide low-interest loans to Indian 16
tribes and tribal energy resource development 17
organizations for use in the promotion of en- 18
ergy resource development on Indian land and 19
integration of energy resources. 20
‘‘(3) There are authorized to be appropriated to 21
carry out this subsection such sums as are necessary 22
for each of fiscal years 2004 through 2014. 23
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8
‘‘(b) DEPARTMENT OF ENERGY INDIAN ENERGY 1
EDUCATION PLANNING AND MANAGEMENT ASSISTANCE 2
PROGRAM.— 3
‘‘(1) The Director shall establish programs to 4
assist consenting Indian tribes in meeting energy 5
education, research and development, planning, and 6
management needs. 7
‘‘(2) In carrying out this subsection, the Direc- 8
tor may provide grants, on a competitive basis, to an 9
Indian tribe or tribal energy resource development 10
organization for use in carrying out— 11
‘‘(A) energy, energy efficiency, and energy 12
conservation programs; 13
‘‘(B) studies and other activities sup- 14
porting tribal acquisitions of energy supplies, 15
services, and facilities; 16
‘‘(C) planning, construction, development, 17
operation, maintenance, and improvement of 18
tribal electrical generation, transmission, and 19
distribution facilities located on Indian land; 20
and 21
‘‘(D) development, construction, and inter- 22
connection of electric power transmission facili- 23
ties located on Indian land with other electric 24
transmission facilities. 25
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9
‘‘(3)(A) The Director may develop, in consulta- 1
tion with Indian tribes, a formula for providing 2
grants under this subsection. 3
‘‘(B) In providing a grant under this sub- 4
section, the Director shall give priority to an applica- 5
tion received from an Indian tribe with inadequate 6
electric service (as determined by the Director). 7
‘‘(4) The Secretary of Energy may issue such 8
regulations as necessary to carry out this subsection. 9
‘‘(5) There are authorized to be appropriated to 10
carry out this subsection $20,000,000 for each of 11
fiscal years 2004 through 2014. 12
‘‘(c) DEPARTMENT OF ENERGY LOAN GUARANTEE 13
PROGRAM.— 14
‘‘(1) Subject to paragraph (3), the Secretary of 15
Energy may provide loan guarantees (as defined in 16
section 502 of the Federal Credit Reform Act of 17
1990 (2 U.S.C. 661a)) for not more than 90 percent 18
of the unpaid principal and interest due on any loan 19
made to any Indian tribe for energy development. 20
‘‘(2) A loan guarantee under this subsection 21
shall be made by— 22
‘‘(A) a financial institution subject to ex- 23
amination by the Secretary of Energy; or 24
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10
‘‘(B) an Indian tribe, from funds of the In- 1
dian tribe. 2
‘‘(3) The aggregate outstanding amount guar- 3
anteed by the Secretary of Energy at any time under 4
this subsection shall not exceed $2,000,000,000. 5
‘‘(4) The Secretary of Energy may issue such 6
regulations as the Secretary of Energy determines 7
are necessary to carry out this subsection. 8
‘‘(5) There are authorized to be appropriated 9
such sums as are necessary to carry out this sub- 10
section, to remain available until expended. 11
‘‘(6) Not later than 1 year from the date of en- 12
actment of this section, the Secretary of Energy 13
shall report to Congress on the financing require- 14
ments of Indian tribes for energy development on In- 15
dian land. 16
‘‘(d) FEDERAL AGENCIES-INDIAN ENERGY PREF- 17
ERENCE.— 18
‘‘(1) In purchasing electricity or any other en- 19
ergy product or byproduct, a Federal agency or de- 20
partment may give preference to an energy and re- 21
source production enterprise, partnership, consor- 22
tium, corporation, or other type of business organi- 23
zation the majority of the interest in which is owned 24
and controlled by 1 or more Indian tribes. 25
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11
‘‘(2) In carrying out this subsection, a Federal 1
agency or department shall not— 2
‘‘(A) pay more than the prevailing market 3
price for an energy product or byproduct; or 4
‘‘(B) obtain less than prevailing market 5
terms and conditions. 6
‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULA- 7
TION. 8
‘‘(a) GRANTS.—The Secretary may provide to Indian 9
tribes, on an annual basis, grants for use in accordance 10
with subsection (b). 11
‘‘(b) USE OF FUNDS.—Funds from a grant provided 12
under this section may be used— 13
‘‘(1) by an Indian tribe for the development of 14
a tribal energy resource inventory or tribal energy 15
resource on Indian land; 16
‘‘(2) by an Indian tribe for the development of 17
a feasibility study or other report necessary to the 18
development of energy resources on Indian land; 19
‘‘(3) by an Indian tribe (other than an Indian 20
Tribe in Alaska except the Metlakatla Indian Com- 21
munity) for the development and enforcement of 22
tribal laws (including regulations) relating to tribal 23
energy resource development and the development of 24
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12
technical infrastructure to protect the environment 1
under applicable law; or 2
‘‘(4) by a Native Corporation for the develop- 3
ment and implementation of corporate policies and 4
the development of technical infrastructure to pro- 5
tect the environment under applicable law; and 6
‘‘(5) by an Indian tribe for the training of em- 7
ployees that— 8
‘‘(A) are engaged in the development of en- 9
ergy resources on Indian land; or 10
‘‘(B) are responsible for protecting the en- 11
vironment. 12
‘‘(c) OTHER ASSISTANCE.—In carrying out the obli- 13
gations of the United States under this title, the Secretary 14
shall ensure, to the maximum extent practicable and to 15
the extent of available resources, that upon the request 16
of an Indian tribe, the Indian tribe shall have available 17
scientific and technical information and expertise, for use 18
in the Indian tribe’s regulation, development, and manage- 19
ment of energy resources on Indian land. The Secretary 20
may fulfill this responsibility either directly, through the 21
use of Federal officials, or indirectly, by providing finan- 22
cial assistance to the Indian tribe to secure independent 23
assistance. 24
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13
‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS- 1
OF-WAY INVOLVING ENERGY DEVELOPMENT 2
OR TRANSMISSION. 3
‘‘(a) LEASES AND BUSINESS AGREEMENTS.—Subject 4
to the provisions of this section— 5
‘‘(1) an Indian tribe may, at its discretion, 6
enter into a lease or business agreement for the pur- 7
pose of energy resource development on tribal land, 8
including a lease or business agreement for— 9
‘‘(A) exploration for, extraction of, proc- 10
essing of, or other development of the Indian 11
tribe’s energy mineral resources located on trib- 12
al land; and 13
‘‘(B) construction or operation of an elec- 14
tric generation, transmission, or distribution fa- 15
cility located on tribal land or a facility to proc- 16
ess or refine energy resources on tribal land; 17
and 18
‘‘(2) such lease or business agreement described 19
in paragraph (1) shall not require the approval of 20
the Secretary under section 2103 of the Revised 21
Statutes (25 U.S.C. 81) or any other provision of 22
law, if— 23
‘‘(A) the lease or business agreement is ex- 24
ecuted pursuant to a tribal energy resource 25
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14
agreement approved by the Secretary under 1
subsection (e); 2
‘‘(B) the term of the lease or business 3
agreement does not exceed— 4
‘‘(i) 30 years; or 5
‘‘(ii) in the case of a lease for the pro- 6
duction of oil resources, gas resources, or 7
both, 10 years and as long thereafter as oil 8
or gas is produced in paying quantities; 9
and 10
‘‘(C) the Indian tribe has entered into a 11
tribal energy resource agreement with the Sec- 12
retary, as described in subsection (e), relating 13
to the development of energy resources on tribal 14
land (including the periodic review and evalua- 15
tion of the activities of the Indian tribe under 16
the agreement, to be conducted pursuant to the 17
provisions required by subsection (e)(2)(D)(i)). 18
‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ELECTRIC 19
TRANSMISSION OR DISTRIBUTION LINES.—An Indian 20
tribe may grant a right-of-way over tribal land for a pipe- 21
line or an electric transmission or distribution line without 22
approval by the Secretary if— 23
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15
‘‘(1) the right-of-way is executed in accordance 1
with a tribal energy resource agreement approved by 2
the Secretary under subsection (e); 3
‘‘(2) the term of the right-of-way does not ex- 4
ceed 30 years; 5
‘‘(3) the pipeline or electric transmission or dis- 6
tribution line serves— 7
‘‘(A) an electric generation, transmission, 8
or distribution facility located on tribal land; or 9
‘‘(B) a facility located on tribal land that 10
processes or refines energy resources on tribal 11
land; and 12
‘‘(4) the Indian tribe has entered into a tribal 13
energy resource agreement with the Secretary, as de- 14
scribed in subsection (e), relating to the development 15
of energy resources on tribal land (including the 16
periodic review and evaluation of the Indian tribe’s 17
activities under such agreement described in sub- 18
paragraphs (D) and (E) of subsection (e)(2)). 19
‘‘(c) RENEWALS.—A lease or business agreement en- 20
tered into or a right-of-way granted by an Indian tribe 21
under this section may be renewed at the discretion of the 22
Indian tribe in accordance with this section. 23
‘‘(d) VALIDITY.—No lease, business agreement, or 24
right-of-way relating to the development of tribal energy 25
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16
resources pursuant to the provisions of this section shall 1
be valid unless the lease, business agreement, or right-of- 2
way is authorized by the provisions of a tribal energy re- 3
source agreement approved by the Secretary under sub- 4
section (e)(2). 5
‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.— 6
‘‘(1) On issuance of regulations under para- 7
graph (8), an Indian tribe may submit to the Sec- 8
retary for approval a tribal energy resource agree- 9
ment governing leases, business agreements, and 10
rights-of-way under this section. 11
‘‘(2)(A) Not later than 180 days after the date 12
on which the Secretary receives a tribal energy re- 13
source agreement submitted by an Indian tribe 14
under paragraph (1), or not later than 60 days after 15
the Secretary receives a revised tribal energy re- 16
source agreement submitted by an Indian tribe 17
under paragraph (4)(C), (or such later date as may 18
be agreed to by the Secretary and the Indian tribe), 19
the Secretary shall approve or disapprove the tribal 20
energy resource agreement. 21
‘‘(B) The Secretary shall approve a tribal en- 22
ergy resource agreement submitted under paragraph 23
(1) if— 24
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17
‘‘(i) the Secretary determines that the In- 1
dian tribe has demonstrated that the Indian 2
tribe has sufficient capacity to regulate the de- 3
velopment of energy resources of the Indian 4
tribe; 5
‘‘(ii) the tribal energy resource agreement 6
includes provisions required under subpara- 7
graph (D); and 8
‘‘(iii) the tribal energy resource agreement 9
includes provisions that, with respect to a lease, 10
business agreement, or right-of-way under this 11
section— 12
‘‘(I) ensure the acquisition of nec- 13
essary information from the applicant for 14
the lease, business agreement, or right-of- 15
way; 16
‘‘(II) address the term of the lease or 17
business agreement or the term of convey- 18
ance of the right-of-way; 19
‘‘(III) address amendments and re- 20
newals; 21
‘‘(IV) address the economic return to 22
the Indian tribe under leases, business 23
agreements, and rights-of-way; 24
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18
‘‘(V) address technical or other rel- 1
evant requirements; 2
‘‘(VI) establish requirements for envi- 3
ronmental review in accordance with sub- 4
paragraph (C); 5
‘‘(VII) ensure compliance with all ap- 6
plicable environmental laws; 7
‘‘(VIII) identify final approval author- 8
ity; 9
‘‘(IX) provide for public notification of 10
final approvals; 11
‘‘(X) establish a process for consulta- 12
tion with any affected States concerning 13
off-reservation impacts, if any, identified 14
pursuant to the provisions required under 15
subparagraph (C)(i); 16
‘‘(XI) describe the remedies for 17
breach of the lease, business agreement, or 18
right-of-way; 19
‘‘(XII) require each lease, business 20
agreement, and right-of-way to include a 21
statement that, in the event that any of its 22
provisions violates an express term or re- 23
quirement set forth in the tribal energy re- 24
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19
source agreement pursuant to which it was 1
executed— 2
‘‘(aa) such provision shall be null 3
and void; and 4
‘‘(bb) if the Secretary determines 5
such provision to be material, the Sec- 6
retary shall have the authority to sus- 7
pend or rescind the lease, business 8
agreement, or right-of-way or take 9
other appropriate action that the Sec- 10
retary determines to be in the best in- 11
terest of the Indian tribe; 12
‘‘(XIII) require each lease, business 13
agreement, and right-of-way to provide 14
that it will become effective on the date on 15
which a copy of the executed lease, busi- 16
ness agreement, or right-of-way is deliv- 17
ered to the Secretary in accordance with 18
regulations adopted pursuant to this sub- 19
section; and 20
‘‘(XIV) include citations to tribal 21
laws, regulations, or procedures, if any, 22
that set out tribal remedies that must be 23
exhausted before a petition may be sub- 24
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20
mitted to the Secretary pursuant to para- 1
graph (7)(B). 2
‘‘(C) Tribal energy resource agreements sub- 3
mitted under paragraph (1) shall establish, and in- 4
clude provisions to ensure compliance with, an envi- 5
ronmental review process that, with respect to a 6
lease, business agreement, or right-of-way under this 7
section, provides for— 8
‘‘(i) the identification and evaluation of all 9
significant environmental impacts (as compared 10
with a no-action alternative), including effects 11
on cultural resources; 12
‘‘(ii) the identification of proposed mitiga- 13
tion; 14
‘‘(iii) a process for ensuring that the public 15
is informed of and has an opportunity to com- 16
ment on the environmental impacts of the pro- 17
posed action before tribal approval of the lease, 18
business agreement, or right-of-way; and 19
‘‘(iv) sufficient administrative support and 20
technical capability to carry out the environ- 21
mental review process. 22
‘‘(D) A tribal energy resource agreement nego- 23
tiated between the Secretary and an Indian tribe in 24
accordance with this subsection shall include— 25
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21
‘‘(i) provisions requiring the Secretary to 1
conduct a periodic review and evaluation to 2
monitor the performance of the Indian tribe’s 3
activities associated with the development of en- 4
ergy resources under the tribal energy resource 5
agreement; and 6
‘‘(ii) when such review and evaluation re- 7
sult in a finding by the Secretary of imminent 8
jeopardy to a physical trust asset arising from 9
a violation of the tribal energy resource agree- 10
ment or applicable Federal laws, provisions au- 11
thorizing the Secretary to take appropriate ac- 12
tions determined by the Secretary to be nec- 13
essary to protect such asset, which actions may 14
include reassumption of responsibility for activi- 15
ties associated with the development of energy 16
resources on tribal land until the violation and 17
conditions that gave rise to such jeopardy have 18
been corrected. 19
‘‘(E) The periodic review and evaluation de- 20
scribed in subparagraph (D) shall be conducted on 21
an annual basis, except that, after the third such an- 22
nual review and evaluation, the Secretary and the 23
Indian tribe may mutually agree to amend the tribal 24
energy resource agreement to authorize the review 25
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22
and evaluation required by subparagraph (D) to be 1
conducted once every 2 years. 2
‘‘(3) The Secretary shall provide notice and op- 3
portunity for public comment on tribal energy re- 4
source agreements submitted for approval under 5
paragraph (1). The Secretary’s review of a tribal en- 6
ergy resource agreement under the National Envi- 7
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 8
seq.) shall be limited to the direct effects of that ap- 9
proval. 10
‘‘(4) If the Secretary disapproves a tribal en- 11
ergy resource agreement submitted by an Indian 12
tribe under paragraph (1), the Secretary shall, not 13
later than 10 days after the date of disapproval— 14
‘‘(A) notify the Indian tribe in writing of 15
the basis for the disapproval; 16
‘‘(B) identify what changes or other ac- 17
tions are required to address the concerns of 18
the Secretary; and 19
‘‘(C) provide the Indian tribe with an op- 20
portunity to revise and resubmit the tribal en- 21
ergy resource agreement. 22
‘‘(5) If an Indian tribe executes a lease or busi- 23
ness agreement or grants a right-of-way in accord- 24
ance with a tribal energy resource agreement ap- 25
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23
proved under this subsection, the Indian tribe shall, 1
in accordance with the process and requirements set 2
forth in the Secretary’s regulations adopted pursu- 3
ant to paragraph (8), provide to the Secretary— 4
‘‘(A) a copy of the lease, business agree- 5
ment, or right-of-way document (including all 6
amendments to and renewals of the document); 7
and 8
‘‘(B) in the case of a tribal energy resource 9
agreement or a lease, business agreement, or 10
right-of-way that permits payments to be made 11
directly to the Indian tribe, information and 12
documentation of those payments sufficient to 13
enable the Secretary to discharge the trust re- 14
sponsibility of the United States to enforce the 15
terms of, and protect the Indian tribe’s rights 16
under, the lease, business agreement, or right- 17
of-way. 18
‘‘(6)(A) For purposes of the activities to be un- 19
dertaken by the Secretary pursuant to this section, 20
the Secretary shall— 21
‘‘(i) carry out such activities in a manner 22
consistent with the trust responsibility of the 23
United States relating to mineral and other 24
trust resources; and 25
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24
‘‘(ii) act in good faith and in the best in- 1
terests of the Indian tribes. 2
‘‘(B) Subject to the provisions of subsections 3
(a)(2), (b), and (c) waiving the requirement of Sec- 4
retarial approval of leases, business agreements, and 5
rights-of-way executed pursuant to tribal energy re- 6
source agreements approved under this section, and 7
the provisions of subparagraph (D), nothing in this 8
section shall absolve the United States from any re- 9
sponsibility to Indians or Indian tribes, including, 10
but not limited to, those which derive from the trust 11
relationship or from any treaties, statutes, and other 12
laws of the United States, Executive Orders, or 13
agreements between the United States and any In- 14
dian tribe. 15
‘‘(C) The Secretary shall continue to have a 16
trust obligation to ensure that the rights and inter- 17
ests of an Indian tribe are protected in the event 18
that— 19
‘‘(i) any other party to any such lease, 20
business agreement, or right-of-way violates any 21
applicable provision of Federal law or the terms 22
of any lease, business agreement, or right-of- 23
way under this section; or 24
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25
‘‘(ii) any provision in such lease, business 1
agreement, or right-of-way violates any express 2
provision or requirement set forth in the tribal 3
energy resource agreement pursuant to which 4
the lease, business agreement, or right-of-way 5
was executed. 6
‘‘(D) Notwithstanding subparagraph (B), the 7
United States shall not be liable to any party (in- 8
cluding any Indian tribe) for any of the negotiated 9
terms of, or any losses resulting from the negotiated 10
terms of, a lease, business agreement, or right-of- 11
way executed pursuant to and in accordance with a 12
tribal energy resource agreement approved by the 13
Secretary under paragraph (2). For the purpose of 14
this subparagraph, the term ‘negotiated terms’ 15
means any terms or provisions that are negotiated 16
by an Indian tribe and any other party or parties to 17
a lease, business agreement, or right-of-way entered 18
into pursuant to an approved tribal energy resource 19
agreement. 20
‘‘(7)(A) In this paragraph, the term ‘interested 21
party’ means any person or entity the interests of 22
which have sustained or will sustain a significant ad- 23
verse environmental impact as a result of the failure 24
of an Indian tribe to comply with a tribal energy re- 25
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26
source agreement of the Indian tribe approved by 1
the Secretary under paragraph (2). 2
‘‘(B) After exhaustion of tribal remedies, and in 3
accordance with the process and requirements set 4
forth in regulations adopted by the Secretary pursu- 5
ant to paragraph (8), an interested party may sub- 6
mit to the Secretary a petition to review compliance 7
of an Indian tribe with a tribal energy resource 8
agreement of the Indian tribe approved by the Sec- 9
retary under paragraph (2). 10
‘‘(C)(i) Not later than 120 days after the date 11
on which the Secretary receives a petition under sub- 12
paragraph (B), the Secretary shall determine wheth- 13
er the Indian tribe is not in compliance with the 14
tribal energy resource agreement, as alleged in the 15
petition. 16
‘‘(ii) The Secretary may adopt procedures 17
under paragraph (8) authorizing an extension of 18
time, not to exceed 120 days, for making the deter- 19
mination under clause (i) in any case in which the 20
Secretary determines that additional time is nec- 21
essary to evaluate the allegations of the petition. 22
‘‘(iii) Subject to subparagraph (D), if the Sec- 23
retary determines that the Indian tribe is not in 24
compliance with the tribal energy resource agree- 25
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November 14, 2003 (10:58 AM)
27
ment as alleged in the petition, the Secretary shall 1
take such action as is necessary to ensure compli- 2
ance with the provisions of the tribal energy resource 3
agreement, which action may include— 4
‘‘(I) temporarily suspending some or all ac- 5
tivities under a lease, business agreement, or 6
right-of-way under this section until the Indian 7
tribe or such activities are in compliance with 8
the provisions of the approved tribal energy re- 9
source agreement; or 10
‘‘(II) rescinding approval of all or part of 11
the tribal energy resource agreement, and if all 12
of such agreement is rescinded, reassuming the 13
responsibility for approval of any future leases, 14
business agreements, or rights-of-way described 15
in subsections (a) and (b). 16
‘‘(D) Prior to seeking to ensure compliance with 17
the provisions of the tribal energy resource agree- 18
ment of an Indian tribe under subparagraph (C)(iii), 19
the Secretary shall— 20
‘‘(i) make a written determination that de- 21
scribes the manner in which the tribal energy 22
resource agreement has been violated; 23
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28
‘‘(ii) provide the Indian tribe with a writ- 1
ten notice of the violations together with the 2
written determination; and 3
‘‘(iii) before taking any action described in 4
subparagraph (C)(iii) or seeking any other rem- 5
edy, provide the Indian tribe with a hearing and 6
a reasonable opportunity to attain compliance 7
with the tribal energy resource agreement. 8
‘‘(E) An Indian tribe described in subparagraph 9
(D) shall retain all rights to appeal as provided in 10
regulations issued by the Secretary. 11
‘‘(8) Not later than 1 year after the date of en- 12
actment of the Indian Tribal Energy Development 13
and Self-Determination Act of 2003, the Secretary 14
shall issue regulations that implement the provisions 15
of this subsection, including— 16
‘‘(A) criteria to be used in determining the 17
capacity of an Indian tribe described in para- 18
graph (2)(B)(i), including the experience of the 19
Indian tribe in managing natural resources and 20
financial and administrative resources available 21
for use by the Indian tribe in implementing the 22
approved tribal energy resource agreement of 23
the Indian tribe; 24
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29
‘‘(B) a process and requirements in accord- 1
ance with which an Indian tribe may— 2
‘‘(i) voluntarily rescind a tribal energy 3
resource agreement approved by the Sec- 4
retary under this subsection; and 5
‘‘(ii) return to the Secretary the re- 6
sponsibility to approve any future leases, 7
business agreements, and rights-of-way de- 8
scribed in this subsection; 9
‘‘(C) provisions setting forth the scope of, 10
and procedures for, the periodic review and 11
evaluation described in subparagraphs (D) and 12
(E) of paragraph (2), including provisions for 13
review of transactions, reports, site inspections, 14
and any other review activities the Secretary 15
determines to be appropriate; and 16
‘‘(D) provisions defining final agency ac- 17
tions after exhaustion of administrative appeals 18
from determinations of the Secretary under 19
paragraph (7). 20
‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in this 21
section affects the application of— 22
‘‘(1) any Federal environment law; 23
‘‘(2) the Surface Mining Control and Reclama- 24
tion Act of 1977 (30 U.S.C. 1201 et seq.); or 25
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30
‘‘(3) except as otherwise provided in this title, 1
the Indian Mineral Development Act of 1982 (25 2
U.S.C. 2101 et seq.) and the National Environ- 3
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 4
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 5
are authorized to be appropriated to the Secretary such 6
sums as are necessary for each of fiscal years 2004 7
through 2014 to implement the provisions of this section 8
and to make grants or provide other appropriate assist- 9
ance to Indian tribes to assist the Indian tribes in devel- 10
oping and implementing tribal energy resource agreements 11
in accordance with the provisions of this section. 12
‘‘SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW. 13
‘‘(a) IN GENERAL.—The Secretary shall conduct a 14
review of all activities being conducted under the Indian 15
Mineral Development Act of 1982 (25 U.S.C. 2101 et 16
seq.) as of that date. 17
‘‘(b) REPORT.—Not later than 1 year after the date 18
of enactment of the Indian Tribal Energy Development 19
and Self-Determination Act of 2003, the Secretary shall 20
submit to Congress a report that includes— 21
‘‘(1) the results of the review; 22
‘‘(2) recommendations to ensure that Indian 23
tribes have the opportunity to develop Indian energy 24
resources; and 25
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31
‘‘(3) an analysis of the barriers to the develop- 1
ment of energy resources on Indian land (including 2
legal, fiscal, market, and other barriers), along with 3
recommendations for the removal of those barriers. 4
‘‘SEC. 2606. FEDERAL POWER MARKETING ADMINISTRA- 5
TIONS. 6
‘‘(a) DEFINITIONS.—In this section: 7
‘‘(1) The term ‘‘Administrator’’ means the Ad- 8
ministrator of the Bonneville Power Administration 9
and the Administrator of the Western Area Power 10
Administration. 11
‘‘(2) The term ‘‘power marketing administra- 12
tion’’ means— 13
‘‘(A) the Bonneville Power Administration; 14
‘‘(B) the Western Area Power Administra- 15
tion; and 16
‘‘(C) any other power administration the 17
power allocation of which is used by or for the 18
benefit of an Indian tribe located in the service 19
area of the administration. 20
‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL ENERGY 21
DEVELOPMENT.—Each Administrator shall encourage In- 22
dian tribal energy development by taking such actions as 23
are appropriate, including administration of programs of 24
the Bonneville Power Administration and the Western 25
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32
Area Power Administration, in accordance with this sec- 1
tion. 2
‘‘(c) ACTION BY THE ADMINISTRATOR.—In carrying 3
out this section, and in accordance with existing law— 4
‘‘(1) each Administrator shall consider the 5
unique relationship that exists between the United 6
States and Indian tribes; 7
‘‘(2) power allocations from the Western Area 8
Power Administration to Indian tribes may be used 9
to meet firming and reserve needs of Indian-owned 10
energy projects on Indian land; 11
‘‘(3) the Administrator of the Western Area 12
Power Administration may purchase non-federally 13
generated power from Indian tribes to meet the 14
firming and reserve requirements of the Western 15
Area Power Administration; and 16
‘‘(4) each Administrator shall not pay more 17
than the prevailing market price for an energy prod- 18
uct nor obtain less than prevailing market terms and 19
conditions. 20
‘‘(d) ASSISTANCE FOR TRANSMISSION SYSTEM 21
USE.—(1) An Administrator may provide technical assist- 22
ance to Indian tribes seeking to use the high-voltage trans- 23
mission system for delivery of electric power. 24
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‘‘(2) The costs of technical assistance provided under 1
paragraph (1) shall be funded by the Secretary of Energy 2
using nonreimbursable funds appropriated for that pur- 3
pose, or by the applicable Indian tribes. 4
‘‘(e) POWER ALLOCATION STUDY.—Not later than 2 5
years after the date of enactment of the Indian Tribal En- 6
ergy Development and Self-Determination Act of 2003, 7
the Secretary of Energy shall submit to Congress a report 8
that— 9
‘‘(1) describes the use by Indian tribes of Fed- 10
eral power allocations of the Western Area Power 11
Administration (or power sold by the Southwestern 12
Power Administration) and the Bonneville Power 13
Administration to or for the benefit of Indian tribes 14
in service areas of those administrations; and 15
‘‘(2) identifies— 16
‘‘(A) the quantity of power allocated to, or 17
used for the benefit of, Indian tribes by the 18
Western Area Power Administration; 19
‘‘(B) the quantity of power sold to Indian 20
tribes by other power marketing administra- 21
tions; and 22
‘‘(C) barriers that impede tribal access to 23
and use of Federal power, including an assess- 24
ment of opportunities to remove those barriers 25
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34
and improve the ability of power marketing ad- 1
ministrations to deliver Federal power. 2
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 3
are authorized to be appropriated to carry out this section 4
$750,000, which shall remain available until expended and 5
shall not be reimbursable. 6
‘‘SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY. 7
‘‘(a) STUDY.—The Secretary of Energy, in coordina- 8
tion with the Secretary of the Army and the Secretary, 9
shall conduct a study of the cost and feasibility of devel- 10
oping a demonstration project that would use wind energy 11
generated by Indian tribes and hydropower generated by 12
the Army Corps of Engineers on the Missouri River to 13
supply firming power to the Western Area Power Adminis- 14
tration. 15
‘‘(b) SCOPE OF STUDY.—The study shall— 16
‘‘(1) determine the feasibility of the blending of 17
wind energy and hydropower generated from the 18
Missouri River dams operated by the Army Corps of 19
Engineers; 20
‘‘(2) review historical and projected require- 21
ments for firming power and the patterns of avail- 22
ability and use of firming power; 23
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35
‘‘(3) assess the wind energy resource potential 1
on tribal land and projected cost savings through a 2
blend of wind and hydropower over a 30-year period; 3
‘‘(4) determine seasonal capacity needs and as- 4
sociated transmission upgrades for integration of 5
tribal wind generation; and 6
‘‘(5) include an independent tribal engineer as 7
a study team member. 8
‘‘(c) REPORT.—Not later than 1 year after the date 9
of enactment of the Energy Policy Act of 2003, the Sec- 10
retary and Secretary of the Army shall submit to Congress 11
a report that describes the results of the study, 12
including— 13
‘‘(1) an analysis of the potential energy cost or 14
benefits to the customers of the Western Area Power 15
Administration through the use of combined wind 16
and hydropower; 17
‘‘(2) an evaluation of whether a combined wind 18
and hydropower system can reduce reservoir fluctua- 19
tion, enhance efficient and reliable energy produc- 20
tion, and provide Missouri River management flexi- 21
bility; 22
‘‘(3) recommendations for a demonstration 23
project that could be carried out by the Western 24
Area Power Administration in partnership with an 25
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36
Indian tribal government or tribal energy resource 1
development organization to demonstrate the feasi- 2
bility and potential of using wind energy produced 3
on Indian land to supply firming energy to the 4
Western Area Power Administration or any other 5
Federal power marketing agency; and 6
‘‘(4) an identification of— 7
‘‘(A) the economic and environmental costs 8
or benefits to be realized through such a Fed- 9
eral-tribal partnership; and 10
‘‘(B) the manner in which such a partner- 11
ship could contribute to the energy security of 12
the United States. 13
‘‘(d) FUNDING.— 14
‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 15
There are authorized to be appropriated to carry out 16
this section $500,000, to remain available until ex- 17
pended. 18
‘‘(2) NONREIMBURSABILITY.—Costs incurred by the 19
Secretary in carrying out this section shall be non- 20
reimbursable.’’. 21
(b) CONFORMING AMENDMENTS.—The table of con- 22
tents for the Energy Policy Act of 1992 is amended by 23
striking the items relating to title XXVI and inserting the 24
following: 25
‘‘Sec. 2601. Definitions.
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37
‘‘Sec. 2602. Indian tribal energy resource development.
‘‘Sec. 2603. Indian tribal energy resource regulation.
‘‘Sec. 2604. Leases, business agreements, and rights-of-way involving energy
development or transmission.
‘‘Sec. 2605. Indian mineral development review.
‘‘Sec. 2606. Federal Power Marketing Administrations.
‘‘Sec. 2607. Wind and hydropower feasibility study.’’.
SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT. 1
The Dine Power Authority, an enterprise of the Nav- 2
ajo Nation, shall be eligible to receive grants and other 3
assistance as authorized by section 217 of the Department 4
of Energy Organization Act, as added by section 502 of 5
this title, and section 2602 of the Energy Policy Act of 6
1992, as amended by this title, for activities associated 7
with the development of a transmission line from the Four 8
Corners Area to southern Nevada, including related power 9
generation opportunities. 10
SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED 11
HOUSING. 12
(a) IN GENERAL.—The Secretary of Housing and 13
Urban Development shall promote energy conservation in 14
housing that is located on Indian land and assisted with 15
Federal resources through— 16
(1) the use of energy-efficient technologies and 17
innovations (including the procurement of energy-ef- 18
ficient refrigerators and other appliances); 19
(2) the promotion of shared savings contracts; 20
and 21
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38
(3) the use and implementation of such other 1
similar technologies and innovations as the Secretary 2
of Housing and Urban Development considers to be 3
appropriate. 4
(b) AMENDMENT.—Section 202(2) of the Native 5
American Housing and Self-Determination Act of 1996 6
(25 U.S.C. 4132(2)) is amended by inserting ‘‘improve- 7
ment to achieve greater energy efficiency,’’ after ‘‘plan- 8
ning,’’. 9
SEC. 506. CONSULTATION WITH INDIAN TRIBES. 10
In carrying out this title and the amendments made 11
by this title, the Secretary of Energy and the Secretary 12
shall, as appropriate and to the maximum extent prac- 13
ticable, involve and consult with Indian tribes in a manner 14
that is consistent with the Federal trust and the govern- 15
ment-to-government relationships between Indian tribes 16
and the United States. 17
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Title VI - Nuclear Matters

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE VI—NUCLEAR MATTERS 1
Subtitle A—Price-Anderson Act 2
Amendments 3
SEC. 601. SHORT TITLE. 4
This subtitle may be cited as the ‘‘Price-Anderson 5
Amendments Act of 2003’’. 6
SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY. 7
(a) INDEMNIFICATION OF NUCLEAR REGULATORY 8
COMMISSION LICENSEES.—Section 170 c. of the Atomic 9
Energy Act of 1954 (42 U.S.C. 2210(c)) is amended— 10
(1) in the subsection heading, by striking ‘‘LI- 11
CENSES’’ and inserting ‘‘LICENSEES’’; and 12
(2) by striking ‘‘December 31, 2003’’ each 13
place it appears and inserting ‘‘December 31, 14
2023’’. 15
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY 16
CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En- 17
ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended 18
by striking ‘‘December 31, 2004’’ and inserting ‘‘Decem- 19
ber 31, 2023’’. 20
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL 21
INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 22
of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au- 23
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November 14, 2003 (10:59 AM)
2
gust 1, 2002’’ each place it appears and inserting ‘‘Decem- 1
ber 31, 2023’’. 2
SEC. 603. MAXIMUM ASSESSMENT. 3
Section 170 of the Atomic Energy Act of 1954 (42 4
U.S.C. 2210) is amended— 5
(1) in the second proviso of the third sentence 6
of subsection b.(1)— 7
(A) by striking ‘‘$63,000,000’’ and insert- 8
ing ‘‘$95,800,000’’; and 9
(B) by striking ‘‘$10,000,000 in any 1 10
year’’ and inserting ‘‘$15,000,000 in any 1 year 11
(subject to adjustment for inflation under sub- 12
section t.)’’; and 13
(2) in subsection t.(1)— 14
(A) by inserting ‘‘total and annual’’ after 15
‘‘amount of the maximum’’; 16
(B) by striking ‘‘the date of the enactment 17
of the Price-Anderson Amendments Act of 18
1988’’ and inserting ‘‘August 20, 2003’’; and 19
(C) in subparagraph (A), by striking ‘‘such 20
date of enactment’’ and inserting ‘‘August 20, 21
2003’’. 22
SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT. 23
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY 24
CONTRACTORS.—Section 170 d. of the Atomic Energy Act 25
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3
of 1954 (42 U.S.C. 2210(d)) is amended by striking para- 1
graph (2) and inserting the following: 2
‘‘(2) In an agreement of indemnification entered into 3
under paragraph (1), the Secretary— 4
‘‘(A) may require the contractor to provide and 5
maintain financial protection of such a type and in 6
such amounts as the Secretary shall determine to be 7
appropriate to cover public liability arising out of or 8
in connection with the contractual activity; and 9
‘‘(B) shall indemnify the persons indemnified 10
against such liability above the amount of the finan- 11
cial protection required, in the amount of 12
$10,000,000,000 (subject to adjustment for inflation 13
under subsection t.), in the aggregate, for all per- 14
sons indemnified in connection with the contract and 15
for each nuclear incident, including such legal costs 16
of the contractor as are approved by the Secretary.’’. 17
(b) CONTRACT AMENDMENTS.—Section 170 d. of the 18
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is further 19
amended by striking paragraph (3) and inserting the 20
following— 21
‘‘(3) All agreements of indemnification under which 22
the Department of Energy (or its predecessor agencies) 23
may be required to indemnify any person under this sec- 24
tion shall be deemed to be amended, on the date of enact- 25
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4
ment of the Price-Anderson Amendments Act of 2003, to 1
reflect the amount of indemnity for public liability and any 2
applicable financial protection required of the contractor 3
under this subsection.’’. 4
(c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 5
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 6
amended— 7
(1) by striking ‘‘the maximum amount of finan- 8
cial protection required under subsection b. or’’; and 9
(2) by striking ‘‘paragraph (3) of subsection d., 10
whichever amount is more’’ and inserting ‘‘para- 11
graph (2) of subsection d.’’. 12
SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES. 13
(a) AMOUNT OF INDEMNIFICATION.—Section 170 14
d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 15
2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and 16
inserting ‘‘$500,000,000’’. 17
(b) LIABILITY LIMIT.—Section 170 e.(4) of the 18
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is 19
amended by striking ‘‘$100,000,000’’ and inserting 20
‘‘$500,000,000’’. 21
SEC. 606. REPORTS. 22
Section 170 p. of the Atomic Energy Act of 1954 (42 23
U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 24
and inserting ‘‘December 31, 2019’’. 25
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5
SEC. 607. INFLATION ADJUSTMENT. 1
Section 170 t. of the Atomic Energy Act of 1954 (42 2
U.S.C. 2210(t)) is amended— 3
(1) by redesignating paragraph (2) as para- 4
graph (3); and 5
(2) by inserting after paragraph (1) the fol- 6
lowing: 7
‘‘(2) The Secretary shall adjust the amount of indem- 8
nification provided under an agreement of indemnification 9
under subsection d. not less than once during each 5-year 10
period following July 1, 2003, in accordance with the ag- 11
gregate percentage change in the Consumer Price Index 12
since— 13
‘‘(A) that date, in the case of the first adjust- 14
ment under this paragraph; or 15
‘‘(B) the previous adjustment under this para- 16
graph.’’. 17
SEC. 608. TREATMENT OF MODULAR REACTORS. 18
Section 170 b. of the Atomic Energy Act of 1954 (42 19
U.S.C. 2210(b)) is amended by adding at the end the fol- 20
lowing: 21
‘‘(5)(A) For purposes of this section only, the Com- 22
mission shall consider a combination of facilities described 23
in subparagraph (B) to be a single facility having a rated 24
capacity of 100,000 electrical kilowatts or more. 25
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6
‘‘(B) A combination of facilities referred to in sub- 1
paragraph (A) is 2 or more facilities located at a single 2
site, each of which has a rated capacity of 100,000 elec- 3
trical kilowatts or more but not more than 300,000 elec- 4
trical kilowatts, with a combined rated capacity of not 5
more than 1,300,000 electrical kilowatts.’’. 6
SEC. 609. APPLICABILITY. 7
The amendments made by sections 603, 604, and 605 8
do not apply to a nuclear incident that occurs before the 9
date of the enactment of this Act. 10
SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED 11
STATES GOVERNMENT OF LIABILITY FOR 12
CERTAIN FOREIGN INCIDENTS. 13
Section 170 of the Atomic Energy Act of 1954 (42 14
U.S.C. 2210) is amended by adding at the end the fol- 15
lowing new subsection: 16
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR 17
CERTAIN FOREIGN INCIDENTS.—Notwithstanding this 18
section or any other provision of law, no officer of the 19
United States or of any department, agency, or instrumen- 20
tality of the United States Government may enter into any 21
contract or other arrangement, or into any amendment or 22
modification of a contract or other arrangement, the pur- 23
pose or effect of which would be to directly or indirectly 24
impose liability on the United States Government, or any 25
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7
department, agency, or instrumentality of the United 1
States Government, or to otherwise directly or indirectly 2
require an indemnity by the United States Government, 3
for nuclear incidents occurring in connection with the de- 4
sign, construction, or operation of a production facility or 5
utilization facility in any country whose government has 6
been identified by the Secretary of State as engaged in 7
state sponsorship of terrorist activities (specifically includ- 8
ing any country the government of which, as of September 9
11, 2001, had been determined by the Secretary of State 10
under section 620A(a) of the Foreign Assistance Act of 11
1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export 12
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), 13
or section 40(d) of the Arms Export Control Act (22 14
U.S.C. 2780(d)) to have repeatedly provided support for 15
acts of international terrorism). This subsection shall not 16
apply to nuclear incidents occurring as a result of mis- 17
sions, carried out under the direction of the Secretary of 18
Energy, the Secretary of Defense, or the Secretary of 19
State, that are necessary to safely secure, store, transport, 20
or remove nuclear materials for nuclear safety or non- 21
proliferation purposes.’’. 22
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8
SEC. 611. CIVIL PENALTIES. 1
(a) REPEAL OF AUTOMATIC REMISSION.—Section 2
234A b.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 3
2282a(b)(2)) is amended by striking the last sentence. 4
(b) LIMITATION FOR NOT-FOR-PROFIT INSTITU- 5
TIONS.—Subsection d. of section 234A of the Atomic En- 6
ergy Act of 1954 (42 U.S.C. 2282a(d)) is amended to read 7
as follows: 8
‘‘d.(1) Notwithstanding subsection a., in the case of 9
any not-for-profit contractor, subcontractor, or supplier, 10
the total amount of civil penalties paid under subsection 11
a. may not exceed the total amount of fees paid within 12
any 1-year period (as determined by the Secretary) under 13
the contract under which the violation occurs. 14
‘‘(2) For purposes of this section, the term ‘‘not-for- 15
profit’’ means that no part of the net earnings of the con- 16
tractor, subcontractor, or supplier inures to the benefit of 17
any natural person or for-profit artificial person.’’. 18
(c) EFFECTIVE DATE.—The amendments made by 19
this section shall not apply to any violation of the Atomic 20
Energy Act of 1954 (42 U.S.C. 2011 et seq.) occurring 21
under a contract entered into before the date of enactment 22
of this section. 23
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9
Subtitle B—General Nuclear 1
Matters 2
SEC. 621. LICENSES. 3
Section 103 c. of the Atomic Energy Act of 1954 (42 4
U.S.C. 2133(c)) is amended by inserting ‘‘from the au- 5
thorization to commence operations’’ after ‘‘forty years’’. 6
SEC. 622. NRC TRAINING PROGRAM. 7
(a) IN GENERAL.—In order to maintain the human 8
resource investment and infrastructure of the United 9
States in the nuclear sciences, health physics, and engi- 10
neering fields, in accordance with the statutory authorities 11
of the Nuclear Regulatory Commission relating to the ci- 12
vilian nuclear energy program, the Nuclear Regulatory 13
Commission shall carry out a training and fellowship pro- 14
gram to address shortages of individuals with critical nu- 15
clear safety regulatory skills. 16
(b) AUTHORIZATION OF APPROPRIATIONS.— 17
(1) IN GENERAL.—There are authorized to be 18
appropriated to the Nuclear Regulatory Commission 19
to carry out this section $1,000,000 for each of fis- 20
cal years 2004 through 2008. 21
(2) AVAILABILITY.—Funds made available 22
under paragraph (1) shall remain available until ex- 23
pended. 24
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10
SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES. 1
Section 161 w. of the Atomic Energy Act of 1954 2
(42 U.S.C. 2201(w)) is amended— 3
(1) by striking ‘‘for or is issued’’ and all that 4
follows through ‘‘1702’’ and inserting ‘‘to the Com- 5
mission for, or is issued by the Commission, a li- 6
cense or certificate’’; 7
(2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 8
and 9
(3) by striking ‘‘, of applicants for, or holders 10
of, such licenses or certificates’’. 11
SEC. 624. ELIMINATION OF PENSION OFFSET. 12
Section 161 of the Atomic Energy Act of 1954 (42 13
U.S.C. 2201) is amended by adding at the end the fol- 14
lowing: 15
‘‘y. Exempt from the application of sections 8344 and 16
8468 of title 5, United States Code, an annuitant who was 17
formerly an employee of the Commission who is hired by 18
the Commission as a consultant, if the Commission finds 19
that the annuitant has a skill that is critical to the per- 20
formance of the duties of the Commission.’’. 21
SEC. 625. ANTITRUST REVIEW. 22
Section 105 c. of the Atomic Energy Act of 1954 (42 23
U.S.C. 2135(c)) is amended by adding at the end the fol- 24
lowing: 25
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11
‘‘(9) APPLICABILITY.—This subsection does not 1
apply to an application for a license to construct or oper- 2
ate a utilization facility or production facility under sec- 3
tion 103 or 104 b. that is filed on or after the date of 4
enactment of this paragraph.’’. 5
SEC. 626. DECOMMISSIONING. 6
Section 161 i. of the Atomic Energy Act of 1954 (42 7
U.S.C. 2201(i)) is amended— 8
(1) by striking ‘‘and (3)’’ and inserting ‘‘(3)’’; 9
and 10
(2) by inserting before the semicolon at the end 11
the following: ‘‘, and (4) to ensure that sufficient 12
funds will be available for the decommissioning of 13
any production or utilization facility licensed under 14
section 103 or 104 b., including standards and re- 15
strictions governing the control, maintenance, use, 16
and disbursement by any former licensee under this 17
Act that has control over any fund for the decom- 18
missioning of the facility’’. 19
SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT. 20
The Department of Energy shall not, except as re- 21
quired under a contract entered into before the date of 22
enactment of this Act, reimburse any contractor or sub- 23
contractor of the Department for any legal fees or ex- 24
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12
penses incurred with respect to a complaint subsequent 1
to— 2
(1) an adverse determination on the merits with 3
respect to such complaint against the contractor or 4
subcontractor by the Director of the Department of 5
Energy’s Office of Hearings and Appeals pursuant 6
to part 708 of title 10, Code of Federal Regulations, 7
or by a Department of Labor Administrative Law 8
Judge pursuant to section 211 of the Energy Reor- 9
ganization Act of 1974 (42 U.S.C. 5851); or 10
(2) an adverse final judgment by any State or 11
Federal court with respect to such complaint against 12
the contractor or subcontractor for wrongful termi- 13
nation or retaliation due to the making of disclo- 14
sures protected under chapter 12 of title 5, United 15
States Code, section 211 of the Energy Reorganiza- 16
tion Act of 1974 (42 U.S.C. 5851), or any com- 17
parable State law, 18
unless the adverse determination or final judgment is re- 19
versed upon further administrative or judicial review. 20
SEC. 628. DECOMMISSIONING PILOT PROGRAM. 21
(a) PILOT PROGRAM.—The Secretary of Energy shall 22
establish a decommissioning pilot program to decommis- 23
sion and decontaminate the sodium-cooled fast breeder ex- 24
perimental test-site reactor located in northwest Arkansas 25
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13
in accordance with the decommissioning activities con- 1
tained in the August 31, 1998, Department of Energy re- 2
port on the reactor. 3
(b) AUTHORIZATION OF APPROPRIATIONS.—There 4
are authorized to be appropriated to the Secretary of En- 5
ergy to carry out this section $16,000,000. 6
SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COM- 7
MERCIAL NUCLEAR ENERGY GENERATION 8
FACILITIES AT EXISTING DEPARTMENT OF 9
ENERGY SITES. 10
Not later than 1 year after the date of the enactment 11
of this Act, the Secretary of Energy shall submit to Con- 12
gress a report on the feasibility of developing commercial 13
nuclear energy generation facilities at Department of En- 14
ergy sites in existence on the date of enactment of this 15
Act. 16
SEC. 630. URANIUM SALES. 17
(a) SALES, TRANSFERS, AND SERVICES.—Section 18
3112 of the USEC Privatization Act (42 U.S.C. 2297h– 19
10) is amended by striking subsections (d), (e), and (f) 20
and inserting the following: 21
‘‘(3) The Secretary may transfer to the Corporation, 22
notwithstanding subsections (b)(2) and (d), natural ura- 23
nium in amounts sufficient to fulfill the Department of 24
Energy’s commitments under Article 4(B) of the Agree- 25
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14
ment between the Department and the Corporation dated 1
June 17, 2002. 2
‘‘(d) INVENTORY SALES.—(1) In addition to the 3
transfers and sales authorized under subsections (b) and 4
(c) and under paragraph (5) of this subsection, the United 5
States Government may transfer or sell uranium in any 6
form subject to paragraphs (2), (3), and (4). 7
‘‘(2) Except as provided in subsections (b) and (c) 8
and paragraph (5) of this subsection, no sale or transfer 9
of uranium shall be made under this subsection by the 10
United States Government unless— 11
‘‘(A) the President determines that the material 12
is not necessary for national security needs and the 13
sale or transfer has no adverse impact on implemen- 14
tation of existing government-to-government agree- 15
ments; 16
‘‘(B) the price paid to the appropriate Federal 17
agency, if the transaction is a sale, will not be less 18
than the fair market value of the material; and 19
‘‘(C) the sale or transfer to commercial nuclear 20
power end users is made pursuant to a contract of 21
at least 3 years’ duration. 22
‘‘(3) Except as provided in paragraph (5), the United 23
States Government shall not make any transfer or sale 24
of uranium in any form under this subsection that would 25
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15
cause the total amount of uranium transferred or sold pur- 1
suant to this subsection that is delivered for consumption 2
by commercial nuclear power end users to exceed— 3
‘‘(A) 3,000,000 pounds of U3O8 equivalent in 4
fiscal year 2004, 2005, 2006, 2007, 2008, or 2009; 5
‘‘(B) 5,000,000 pounds of U3O8 equivalent in 6
fiscal year 2010 or 2011; 7
‘‘(C) 7,000,000 pounds of U3O8 equivalent in 8
fiscal year 2012; and 9
‘‘(D) 10,000,000 pounds of U3O8 equivalent in 10
fiscal year 2013 or any fiscal year thereafter. 11
‘‘(4) Except for sales or transfers under paragraph 12
(5), for the purposes of this subsection, the recovery of 13
uranium from uranium bearing materials transferred or 14
sold by the United States Government to the domestic 15
uranium industry shall be the preferred method of making 16
uranium available. The recovered uranium shall be count- 17
ed against the annual maximum deliveries set forth in this 18
section, when such uranium is sold to end users. 19
‘‘(5) The United States Government may make the 20
following sales and transfers: 21
‘‘(A) Sales or transfers to a Federal agency if 22
the material is transferred for the use of the receiv- 23
ing agency without any resale or transfer to another 24
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16
entity and the material does not meet commercial 1
specifications. 2
‘‘(B) Sales or transfers to any person for na- 3
tional security purposes, as determined by the Sec- 4
retary. 5
‘‘(C) Sales or transfers to any State or local 6
agency or nonprofit, charitable, or educational insti- 7
tution for use other than the generation of electricity 8
for commercial use. 9
‘‘(D) Sales or transfers to the Department of 10
Energy research reactor sales program. 11
‘‘(E) Sales or transfers, at fair market value, 12
for emergency purposes in the event of a disruption 13
in supply to commercial nuclear power end users in 14
the United States. 15
‘‘(F) Sales or transfers, at fair market value, 16
for use in a commercial reactor in the United States 17
with nonstandard fuel requirements. 18
‘‘(G) Sales or transfers provided for under law 19
for use by the Tennessee Valley Authority in relation 20
to the Department of Energy’s highly enriched ura- 21
nium or tritium programs. 22
‘‘(6) For purposes of this subsection, the term 23
‘‘United States Government’’ does not include the Ten- 24
nessee Valley Authority. 25
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17
‘‘(e) SAVINGS PROVISION.—Nothing in this sub- 1
chapter modifies the terms of the Russian HEU Agree- 2
ment. 3
‘‘(f) SERVICES.—Notwithstanding any other provi- 4
sion of this section, if the Secretary determines that the 5
Corporation has failed, or may fail, to perform any obliga- 6
tion under the Agreement between the Department of En- 7
ergy and the Corporation dated June 17, 2002, and as 8
amended thereafter, which failure could result in termi- 9
nation of the Agreement, the Secretary shall notify Con- 10
gress, in such a manner that affords Congress an oppor- 11
tunity to comment, prior to a determination by the Sec- 12
retary whether termination, waiver, or modification of the 13
Agreement is required. The Secretary is authorized to take 14
such action as he determines necessary under the Agree- 15
ment to terminate, waive, or modify provisions of the 16
Agreement to achieve its purposes.’’. 17
(b) REPORT.—Not later than 3 years after the date 18
of enactment of this Act, the Secretary of Energy shall 19
report to Congress on the implementation of this section. 20
The report shall include a discussion of available excess 21
uranium inventories; all sales or transfers made by the 22
United States Government; the impact of such sales or 23
transfers on the domestic uranium industry, the spot mar- 24
ket uranium price, and the national security interests of 25
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18
the United States; and any steps taken to remediate any 1
adverse impacts of such sales or transfers. 2
SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT 3
AND SPECIAL DEMONSTRATION PROJECTS 4
FOR THE URANIUM MINING INDUSTRY. 5
(a) AUTHORIZATION OF APPROPRIATIONS.—There 6
are authorized to be appropriated to the Secretary of En- 7
ergy $10,000,000 for each of fiscal years 2004, 2005, and 8
2006 for— 9
(1) cooperative, cost-shared agreements between 10
the Department of Energy and domestic uranium 11
producers to identify, test, and develop improved in 12
situ leaching mining technologies, including low-cost 13
environmental restoration technologies that may be 14
applied to sites after completion of in situ leaching 15
operations; and 16
(2) funding for competitively selected dem- 17
onstration projects with domestic uranium producers 18
relating to— 19
(A) enhanced production with minimal en- 20
vironmental impacts; 21
(B) restoration of well fields; and 22
(C) decommissioning and decontamination 23
activities. 24
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19
(b) DOMESTIC URANIUM PRODUCER.—For purposes 1
of this section, the term ‘‘domestic uranium producer’’ has 2
the meaning given that term in section 1018(4) of the En- 3
ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except 4
that the term shall not include any producer that has not 5
produced uranium from domestic reserves on or after July 6
30, 1998. 7
(c) LIMITATION.—No activities funded under this 8
section may be carried out in the State of New Mexico. 9
SEC. 632. WHISTLEBLOWER PROTECTION. 10
(a) DEFINITION OF EMPLOYER.—Section 211(a)(2) 11
of the Energy Reorganization Act of 1974 (42 U.S.C. 12
5851(a)(2)) is amended— 13
(1) in subparagraph (C), by striking ‘‘and’’ at 14
the end; 15
(2) in subparagraph (D), by striking the period 16
at the end and inserting ‘‘; and’’ and 17
(3) by adding at the end the following: 18
‘‘(E) a contractor or subcontractor of the 19
Commission.’’. 20
(b) DE NOVO REVIEW.—Subsection (b) of such sec- 21
tion 211 is amended by adding at the end the following 22
new paragraph: 23
‘‘(4) If the Secretary has not issued a final de- 24
cision within 540 days after the filing of a complaint 25
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November 14, 2003 (10:59 AM)
20
under paragraph (1), and there is no showing that 1
such delay is due to the bad faith of the person 2
seeking relief under this paragraph, such person 3
may bring an action at law or equity for de novo re- 4
view in the appropriate district court of the United 5
States, which shall have jurisdiction over such an ac- 6
tion without regard to the amount in controversy.’’. 7
SEC. 633. MEDICAL ISOTOPE PRODUCTION. 8
Section 134 of the Atomic Energy Act of 1954 (42 9
U.S.C. 2160d) is amended— 10
(1) in subsection a., by striking ‘‘a. The Com- 11
mission’’ and inserting ‘‘a. IN GENERAL.—Except as 12
provided in subsection b., the Commission’’; 13
(2) by redesignating subsection b. as subsection 14
c.; and 15
(3) by inserting after subsection a. the fol- 16
lowing: 17
‘‘b. MEDICAL ISOTOPE PRODUCTION.— 18
‘‘(1) DEFINITIONS.—In this subsection: 19
‘‘(A) HIGHLY ENRICHED URANIUM.—The 20
term ‘highly enriched uranium’ means uranium 21
enriched to include concentration of U–235 22
above 20 percent. 23
‘‘(B) MEDICAL ISOTOPE.—The term ‘med- 24
ical isotope’ includes Molybdenum 99, Iodine 25
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21
131, Xenon 133, and other radioactive mate- 1
rials used to produce a radiopharmaceutical for 2
diagnostic, therapeutic procedures or for re- 3
search and development. 4
‘‘(C) RADIOPHARMACEUTICAL.—The term 5
‘radiopharmaceutical’ means a radioactive iso- 6
tope that— 7
‘‘(i) contains byproduct material com- 8
bined with chemical or biological material; 9
and 10
‘‘(ii) is designed to accumulate tempo- 11
rarily in a part of the body for therapeutic 12
purposes or for enabling the production of 13
a useful image for use in a diagnosis of a 14
medical condition. 15
‘‘(D) RECIPIENT COUNTRY.—The term ‘re- 16
cipient country’ means Canada, Belgium, 17
France, Germany, and the Netherlands. 18
‘‘(2) LICENSES.—The Commission may issue a 19
license authorizing the export (including shipment to 20
and use at intermediate and ultimate consignees 21
specified in the license) to a recipient country of 22
highly enriched uranium for medical isotope produc- 23
tion if, in addition to any other requirements of this 24
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22
Act (except subsection a.), the Commission deter- 1
mines that— 2
‘‘(A) a recipient country that supplies an 3
assurance letter to the United States Govern- 4
ment in connection with the consideration by 5
the Commission of the export license applica- 6
tion has informed the United States Govern- 7
ment that any intermediate consignees and the 8
ultimate consignee specified in the application 9
are required to use the highly enriched uranium 10
solely to produce medical isotopes; and 11
‘‘(B) the highly enriched uranium for med- 12
ical isotope production will be irradiated only in 13
a reactor in a recipient country that— 14
‘‘(i) uses an alternative nuclear reac- 15
tor fuel; or 16
‘‘(ii) is the subject of an agreement 17
with the United States Government to con- 18
vert to an alternative nuclear reactor fuel 19
when alternative nuclear reactor fuel can 20
be used in the reactor. 21
‘‘(3) REVIEW OF PHYSICAL PROTECTION RE- 22
QUIREMENTS.— 23
‘‘(A) IN GENERAL.—The Commission shall 24
review the adequacy of physical protection re- 25
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November 14, 2003 (10:59 AM)
23
quirements that, as of the date of an applica- 1
tion under paragraph (2), are applicable to the 2
transportation and storage of highly enriched 3
uranium for medical isotope production or con- 4
trol of residual material after irradiation and 5
extraction of medical isotopes. 6
‘‘(B) IMPOSITION OF ADDITIONAL RE- 7
QUIREMENTS.—If the Commission determines 8
that additional physical protection requirements 9
are necessary (including a limit on the quantity 10
of highly enriched uranium that may be con- 11
tained in a single shipment), the Commission 12
shall impose such requirements as license condi- 13
tions or through other appropriate means. 14
‘‘(4) FIRST REPORT TO CONGRESS.— 15
‘‘(A) NAS STUDY.—The Secretary shall 16
enter into an arrangement with the National 17
Academy of Sciences to conduct a study to 18
determine— 19
‘‘(i) the feasibility of procuring sup- 20
plies of medical isotopes from commercial 21
sources that do not use highly enriched 22
uranium; 23
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24
‘‘(ii) the current and projected de- 1
mand and availability of medical isotopes 2
in regular current domestic use; 3
‘‘(iii) the progress that is being made 4
by the Department of Energy and others 5
to eliminate all use of highly enriched ura- 6
nium in reactor fuel, reactor targets, and 7
medical isotope production facilities; and 8
‘‘(iv) the potential cost differential in 9
medical isotope production in the reactors 10
and target processing facilities if the prod- 11
ucts were derived from production systems 12
that do not involve fuels and targets with 13
highly enriched uranium. 14
‘‘(B) FEASIBILITY.—For the purpose of 15
this subsection, the use of low enriched uranium 16
to produce medical isotopes shall be determined 17
to be feasible if— 18
‘‘(i) low enriched uranium targets 19
have been developed and demonstrated for 20
use in the reactors and target processing 21
facilities that produce significant quantities 22
of medical isotopes to serve United States 23
needs for such isotopes; 24
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25
‘‘(ii) sufficient quantities of medical 1
isotopes are available from low enriched 2
uranium targets and fuel to meet United 3
States domestic needs; and 4
‘‘(iii) the average anticipated total 5
cost increase from production of medical 6
isotopes in such facilities without use of 7
highly enriched uranium is less than 10 8
percent. 9
‘‘(C) REPORT BY THE SECRETARY.—Not 10
later than 5 years after the date of enactment 11
of the Energy Policy Act of 2003, the Secretary 12
shall submit to Congress a report that— 13
‘‘(i) contains the findings of the Na- 14
tional Academy of Sciences made in the 15
study under subparagraph (A); and 16
‘‘(ii) discloses the existence of any 17
commitments from commercial producers 18
to provide domestic requirements for med- 19
ical isotopes without use of highly enriched 20
uranium consistent with the feasibility cri- 21
teria described in subparagraph (B) not 22
later than the date that is 4 years after 23
the date of submission of the report. 24
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‘‘(5) SECOND REPORT TO CONGRESS.—If the 1
study of the National Academy of Sciences deter- 2
mines under paragraph (4)(A)(i) that the procure- 3
ment of supplies of medical isotopes from commer- 4
cial sources that do not use highly enriched uranium 5
is feasible, but the Secretary is unable to report the 6
existence of commitments under paragraph 7
(4)(C)(ii), not later than the date that is 6 years 8
after the date of enactment of the Energy Policy Act 9
of 2003, the Secretary shall submit to Congress a 10
report that describes options for developing domestic 11
supplies of medical isotopes in quantities that are 12
adequate to meet domestic demand without the use 13
of highly enriched uranium consistent with the cost 14
increase described in paragraph (4)(B)(iii). 15
‘‘(6) CERTIFICATION.—At such time as com- 16
mercial facilities that do not use highly enriched 17
uranium are capable of meeting domestic require- 18
ments for medical isotopes, within the cost increase 19
described in paragraph (4)(B)(iii) and without im- 20
pairing the reliable supply of medical isotopes for 21
domestic utilization, the Secretary shall submit to 22
Congress a certification to that effect. 23
‘‘(7) SUNSET PROVISION.—After the Secretary 24
submits a certification under paragraph (6), the 25
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27
Commission shall, by rule, terminate its review of 1
export license applications under this subsection.’’. 2
SEC. 634. FERNALD BYPRODUCT MATERIAL. 3
Notwithstanding any other law, the material in the 4
concrete silos at the Fernald uranium processing facility 5
managed on the date of enactment of this Act by the De- 6
partment of Energy shall be considered byproduct mate- 7
rial (as defined by section 11 e.(2) of the Atomic Energy 8
Act of 1954 (42 U.S.C. 2014(e)(2))). The Department of 9
Energy may dispose of the material in a facility regulated 10
by the Nuclear Regulatory Commission or by an Agree- 11
ment State. If the Department of Energy disposes of the 12
material in such a facility, the Nuclear Regulatory Com- 13
mission or the Agreement State shall regulate the material 14
as byproduct material under that Act. This material shall 15
remain subject to the jurisdiction of the Department of 16
Energy until it is received at a commercial, Nuclear Regu- 17
latory Commission-licensed, or Agreement State-licensed 18
facility, at which time the material shall be subject to the 19
health and safety requirements of the Nuclear Regulatory 20
Commission or the Agreement State with jurisdiction over 21
the disposal site. 22
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SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RA- 1
DIOACTIVE WASTE. 2
(a) DESIGNATION OF RESPONSIBILITY.—The Sec- 3
retary of Energy shall designate an Office within the De- 4
partment of Energy to have the responsibility for activities 5
needed to develop a new, or use an existing, facility for 6
safely disposing of all low-level radioactive waste with con- 7
centrations of radionuclides that exceed the limits estab- 8
lished by the Nuclear Regulatory Commission for Class 9
C radioactive waste (referred to in this section as ‘‘GTCC 10
waste’’). 11
(b) COMPREHENSIVE PLAN.—The Secretary of En- 12
ergy shall develop a comprehensive plan for permanent 13
disposal of GTCC waste which includes plans for a dis- 14
posal facility. This plan shall be transmitted to Congress 15
in a series of reports, including the following: 16
(1) REPORT ON SHORT-TERM PLAN.—Not later 17
than 180 days after the date of enactment of this 18
Act, the Secretary of Energy shall submit to Con- 19
gress a plan describing the Secretary’s operational 20
strategy for continued recovery and storage of 21
GTCC waste until a permanent disposal facility is 22
available. 23
(2) UPDATE OF 1987 REPORT.— 24
(A) IN GENERAL.—Not later than 1 year 25
after the date of enactment of this Act, the Sec- 26
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November 14, 2003 (10:59 AM)
29
retary of Energy shall submit to Congress an 1
update of the Secretary’s February 1987 report 2
submitted to Congress that made comprehen- 3
sive recommendations for the disposal of GTCC 4
waste. 5
(B) CONTENTS.—The update under this 6
paragraph shall contain— 7
(i) a detailed description and identi- 8
fication of the GTCC waste that is to be 9
disposed; 10
(ii) a description of current domestic 11
and international programs, both Federal 12
and commercial, for management and dis- 13
position of GTCC waste; 14
(iii) an identification of the Federal 15
and private options and costs for the safe 16
disposal of GTCC waste; 17
(iv) an identification of the options for 18
ensuring that, wherever possible, genera- 19
tors and users of GTCC waste bear all rea- 20
sonable costs of waste disposal; 21
(v) an identification of any new statu- 22
tory authority required for disposal of 23
GTCC waste; and 24
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30
(vi) in coordination with the Environ- 1
mental Protection Agency and the Nuclear 2
Regulatory Commission, an identification 3
of any new regulatory guidance needed for 4
the disposal of GTCC waste. 5
(3) REPORT ON COST AND SCHEDULE FOR 6
COMPLETION OF ENVIRONMENTAL IMPACT STATE- 7
MENT AND RECORD OF DECISION.—Not later than 8
180 days after the date of submission of the update 9
required under paragraph (2), the Secretary of En- 10
ergy shall submit to Congress a report containing an 11
estimate of the cost and schedule to complete a draft 12
and final environmental impact statement and to 13
issue a record of decision for a permanent disposal 14
facility, utilizing either a new or existing facility, for 15
GTCC waste. 16
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUN- 17
TRIES THAT SPONSOR TERRORISM. 18
(a) IN GENERAL.—Section 129 of the Atomic Energy 19
Act of 1954 (42 U.S.C. 2158) is amended— 20
(1) by inserting ‘‘a.’’ before ‘‘No nuclear mate- 21
rials and equipment’’; and 22
(2) by adding at the end the following new sub- 23
section: 24
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‘‘b.(1) Notwithstanding any other provision of law, 1
including specifically section 121 of this Act, and except 2
as provided in paragraphs (2) and (3), no nuclear mate- 3
rials and equipment or sensitive nuclear technology, in- 4
cluding items and assistance authorized by section 57 b. 5
of this Act and regulated under part 810 of title 10, Code 6
of Federal Regulations, and nuclear-related items on the 7
Commerce Control List maintained under part 774 of title 8
15 of the Code of Federal Regulations, shall be exported 9
or reexported, or transferred or retransferred whether di- 10
rectly or indirectly, and no Federal agency shall issue any 11
license, approval, or authorization for the export or reex- 12
port, or transfer, or retransfer, whether directly or indi- 13
rectly, of these items or assistance (as defined in this para- 14
graph) to any country whose government has been identi- 15
fied by the Secretary of State as engaged in state sponsor- 16
ship of terrorist activities (specifically including any coun- 17
try the government of which has been determined by the 18
Secretary of State under section 620A(a) of the Foreign 19
Assistance Act of 1961 (22 U.S.C. 2371(a)), section 20
6(j)(1) of the Export Administration Act of 1979 (50 21
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Ex- 22
port Control Act (22 U.S.C. 2780(d)) to have repeatedly 23
provided support for acts of international terrorism). 24
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‘‘(2) This subsection shall not apply to exports, reex- 1
ports, transfers, or retransfers of radiation monitoring 2
technologies, surveillance equipment, seals, cameras, tam- 3
per-indication devices, nuclear detectors, monitoring sys- 4
tems, or equipment necessary to safely store, transport, 5
or remove hazardous materials, whether such items, serv- 6
ices, or information are regulated by the Department of 7
Energy, the Department of Commerce, or the Nuclear 8
Regulatory Commission, except to the extent that such 9
technologies, equipment, seals, cameras, devices, detectors, 10
or systems are available for use in the design or construc- 11
tion of nuclear reactors or nuclear weapons. 12
‘‘(3) The President may waive the application of 13
paragraph (1) to a country if the President determines 14
and certifies to Congress that the waiver will not result 15
in any increased risk that the country receiving the waiver 16
will acquire nuclear weapons, nuclear reactors, or any ma- 17
terials or components of nuclear weapons and— 18
‘‘(A) the government of such country has not 19
within the preceding 12-month period willfully aided 20
or abetted the international proliferation of nuclear 21
explosive devices to individuals or groups or willfully 22
aided and abetted an individual or groups in acquir- 23
ing unsafeguarded nuclear materials; 24
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33
‘‘(B) in the judgment of the President, the gov- 1
ernment of such country has provided adequate, ver- 2
ifiable assurances that it will cease its support for 3
acts of international terrorism; 4
‘‘(C) the waiver of that paragraph is in the vital 5
national security interest of the United States; or 6
‘‘(D) such a waiver is essential to prevent or re- 7
spond to a serious radiological hazard in the country 8
receiving the waiver that may or does threaten pub- 9
lic health and safety.’’. 10
(b) APPLICABILITY TO EXPORTS APPROVED FOR 11
TRANSFER BUT NOT TRANSFERRED.—Subsection b. of 12
section 129 of Atomic Energy Act of 1954, as added by 13
subsection (a) of this section, shall apply with respect to 14
exports that have been approved for transfer as of the date 15
of the enactment of this Act but have not yet been trans- 16
ferred as of that date. 17
SEC. 637. URANIUM ENRICHMENT FACILITIES. 18
(a) NUCLEAR REGULATORY COMMISSION REVIEW OF 19
APPLICATIONS.— 20
(1) IN GENERAL.—In order to facilitate a time- 21
ly review and approval of an application in a pro- 22
ceeding for a license for the construction and oper- 23
ation of a uranium enrichment facility under sec- 24
tions 53 and 63 of the Atomic Energy Act of 1954 25
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34
(42 U.S.C. 2073, 2093) (referred to in this sub- 1
section as a ‘‘covered proceeding’’), the Nuclear Reg- 2
ulatory Commission shall, not later than 30 days 3
after the receipt of the application, establish, by 4
order, the schedule for the conduct of any hearing 5
that may be requested by any person whose interest 6
may be affected by the covered proceeding. 7
(2) FINAL AGENCY DECISION.—The schedule 8
shall provide that a final decision by the Commission 9
on the application shall be made not later than the 10
date that is 2 years after the date of submission of 11
the application by the applicant. 12
(3) COMPLIANCE WITH SCHEDULE.— 13
(A) IN GENERAL.—The Commission shall 14
establish a process to assess compliance with 15
the schedule established under paragraph (1) 16
on an ongoing basis during the course of the re- 17
view of the application, including ensuring com- 18
pliance with schedules and milestones that are 19
established for the conduct of any covered pro- 20
ceeding by the Atomic Safety and Licensing 21
Board. 22
(B) REPORT.—The Commission shall sub- 23
mit to Congress on a bimonthly basis a report 24
describing the status of compliance with the 25
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schedule established under paragraph (1), in- 1
cluding a description of the status of actions re- 2
quired to be completed pursuant to the schedule 3
by officers and employees of— 4
(i) the Commission in undertaking the 5
safety and environmental review of applica- 6
tions; and 7
(ii) the Atomic Safety and Licensing 8
Board in the conduct of any covered pro- 9
ceeding. 10
(4) ENVIRONMENTAL REVIEW.— 11
(A) IN GENERAL.—In evaluating an appli- 12
cation under the National Environmental Policy 13
Act of 1969 (42 U.S.C. 4321 et seq.) for licens- 14
ing of a facility in a covered proceeding, the 15
Commission shall limit the consideration of 16
need to whether the licensing of the facility 17
would advance the national interest of encour- 18
aging in the United States— 19
(i) additional secure, reliable uranium 20
enrichment capacity; 21
(ii) diverse supplies and suppliers of 22
uranium enrichment capacity; and 23
(iii) the deployment of advanced cen- 24
trifuge enrichment technology. 25
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36
(B) COMMENT.—In carrying out subpara- 1
graph (A), the Commission shall consider and 2
solicit the views of other affected Federal agen- 3
cies. 4
(C) ATOMIC SAFETY AND LICENSING 5
BOARD.— 6
(i) IN GENERAL.—Except as provided 7
in clause (ii), in any covered proceeding, 8
the Commission shall allow the litigation 9
and resolution by the Atomic Safety and 10
Licensing Board of issues arising under 11
the National Environmental Policy Act of 12
1969 (42 U.S.C. 4321 et seq.), on the 13
basis of information submitted by the ap- 14
plicant in its environmental report, prior to 15
publication of any required environmental 16
impact statement. 17
(ii) EXCEPTIONS.—On the publication 18
of any required environmental impact 19
statement, issues may be proffered for res- 20
olution by the Atomic Safety and Licensing 21
Board only if information or conclusions in 22
the environmental impact statement differ 23
significantly from the information or con- 24
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37
clusions in the environmental report sub- 1
mitted by the applicant. 2
(D) ENVIRONMENTAL JUSTICE.—In a cov- 3
ered proceeding, the Commission shall apply the 4
criteria in Appendix C of the final report enti- 5
tled ‘‘Environmental Review Guidance for Li- 6
censing Actions Associated with NMSS Pro- 7
grams’’ (NUREG-1748), published in August 8
2003, in any required review of environmental 9
justice. 10
(5) LOW-LEVEL WASTE.—In any covered pro- 11
ceeding, the Commission shall— 12
(A) deem the obligation of the Secretary of 13
Energy pursuant to section 3113 of the USEC 14
Privitization Act (42 U.S.C. 2297 h-11) to con- 15
stitute a plausible strategy with regard to the 16
disposition of depleted uranium generated by 17
such facility; and 18
(B) treat any residual material that re- 19
mains following the extraction of any usable re- 20
source value from depleted uranium as low-level 21
radioactive waste under part 61 of title 10, 22
Code of Federal Regulations. 23
(6) ADJUDICATORY HEARING ON LICENSING OF 24
URANIUM ENRICHMENT FACILITIES.—Section 193(b) 25
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of the Atomic Energy Act of 1954 (42 U.S.C. 1
2243(b)) is amended by striking paragraph (2) and 2
inserting the following: 3
‘‘(2) TIMING.—On the issuance of a final deci- 4
sion on the application by the Atomic Safety and Li- 5
censing Board, the Commission shall issue and make 6
immediately effective any license for the construction 7
and operation of a uranium enrichment facility 8
under sections 53 and 63, on a determination by the 9
Commission that the issuance of the license would 10
not cause irreparable injury to the public health and 11
safety or the common defense and security, notwith- 12
standing the pendency before the Commission of any 13
appeal or petition for review of any decision of the 14
Atomic Safety and Licensing Board.’’. 15
(b) DEPARTMENT OF ENERGY RESPONSIBILITIES.— 16
(1) IN GENERAL.—Not later than 180 days 17
after a request is made to the Secretary of Energy 18
by an applicant for or recipient of a license for a 19
uranium enrichment facility under section 53, 63, or 20
193 of the Atomic Energy Act of 1954 ((42 U.S.C. 21
2073, 2093, 2243), the Secretary shall enter into a 22
memorandum of agreement with the applicant or li- 23
censee that provides a schedule for the transfer to 24
the Secretary, not later than 5 years after the gen- 25
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39
eration of any depleted uranium hexafluoride, of title 1
and possession of the depleted uranium hexafluoride 2
to be generated by the applicant or licensee. 3
(2) COST.— 4
(A) IN GENERAL.—Subject to subpara- 5
graphs (B) and (C), the memorandum of agree- 6
ment shall specify the cost to be assessed by the 7
Secretary for the transfer to the Secretary of 8
the depleted uranium hexafluoride. 9
(B) NONDISCRIMINATORY BASIS.—The 10
cost shall be determined by the Secretary on a 11
nondiscriminatory basis. 12
(C) COST.—Taking into account the phys- 13
ical and chemical characteristics of such de- 14
pleted uranium hexafluoride, the cost shall not 15
exceed the cost assessed by the Secretary for 16
the acceptance of depleted uranium hexafluoride 17
under— 18
(i) the memorandum of agreement be- 19
tween the United States Department of 20
Energy and the United States Enrichment 21
Corporation Relating to Depleted Ura- 22
nium, dated June 30, 1998; and 23
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40
(ii) the Agreement Between the U.S. 1
Department of Energy and USEC Inc., 2
dated June 17, 2002. 3
SEC. 638. NATIONAL URANIUM STOCKPILE. 4
(a) STOCKPILE CREATION.—The Secretary of En- 5
ergy may create a national low-enriched uranium stockpile 6
with the goals to— 7
(1) enhance national energy security; and 8
(2) reduce global proliferation threats. 9
(b) SOURCE OF MATERIAL.—The Secretary shall ob- 10
tain material for the stockpile from— 11
(1) material derived from blend-down of Rus- 12
sian highly enriched uranium derived from weapons 13
materials; and 14
(2) domestically mined and enriched uranium. 15
(c) LIMITATION ON SALES OR TRANSFERS.—Sales or 16
transfer of materials in the stockpile shall occur pursuant 17
to section 3112 of the USEC Privitization Act (42 U.S.C. 18
2297h–10), as amended by section 630 of this Act. 19
Subtitle C—Advanced Reactor 20
Hydrogen Cogeneration Project 21
SEC. 651. PROJECT ESTABLISHMENT. 22
The Secretary of Energy (in this subtitle referred to 23
as the ‘‘Secretary’’) is directed to establish an Advanced 24
Reactor Hydrogen Cogeneration Project. 25
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SEC. 652. PROJECT DEFINITION. 1
The project shall consist of the research, develop- 2
ment, design, construction, and operation of a hydrogen 3
production cogeneration research facility that, relative to 4
the current commercial reactors, enhances safety features, 5
reduces waste production, enhances thermal efficiencies, 6
increases proliferation resistance, and has the potential for 7
improved economics and physical security in reactor siting. 8
This facility shall be constructed so as to enable research 9
and development on advanced reactors of the type selected 10
and on alternative approaches for reactor-based produc- 11
tion of hydrogen. 12
SEC. 653. PROJECT MANAGEMENT. 13
(a) MANAGEMENT.—The project shall be managed 14
within the Department by the Office of Nuclear Energy, 15
Science, and Technology. 16
(b) LEAD LABORATORY.—The lead laboratory for the 17
project, providing the site for the reactor construction, 18
shall be the Idaho National Engineering and Environ- 19
mental Laboratory (in this subtitle referred to as 20
‘‘INEEL’’). 21
(c) STEERING COMMITTEE.—The Secretary shall es- 22
tablish a national steering committee with membership 23
from the national laboratories, universities, and industry 24
to provide advice to the Secretary and the Director of the 25
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42
Office of Nuclear Energy, Science, and Technology on 1
technical and program management aspects of the project. 2
(d) COLLABORATION.—Project activities shall be con- 3
ducted at INEEL, other national laboratories, univer- 4
sities, domestic industry, and international partners. 5
SEC. 654. PROJECT REQUIREMENTS. 6
(a) RESEARCH AND DEVELOPMENT.— 7
(1) IN GENERAL.—The project shall include 8
planning, research and development, design, and 9
construction of an advanced, next-generation, nu- 10
clear energy system suitable for enabling further re- 11
search and development on advanced reactor tech- 12
nologies and alternative approaches for reactor-based 13
generation of hydrogen. 14
(2) REACTOR TEST CAPABILITIES AT INEEL.— 15
The project shall utilize, where appropriate, exten- 16
sive reactor test capabilities resident at INEEL. 17
(3) ALTERNATIVES.—The project shall be de- 18
signed to explore technical, environmental, and eco- 19
nomic feasibility of alternative approaches for reac- 20
tor-based hydrogen production. 21
(4) INDUSTRIAL LEAD.—The industrial lead for 22
the project shall be a company incorporated in the 23
United States. 24
(b) INTERNATIONAL COLLABORATION.— 25
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(1) IN GENERAL.—The Secretary shall seek 1
international cooperation, participation, and finan- 2
cial contribution in this project. 3
(2) ASSISTANCE FROM INTERNATIONAL PART- 4
NERS.—The Secretary may contract for assistance 5
from specialists or facilities from member countries 6
of the Generation IV International Forum, the Rus- 7
sian Federation, or other international partners 8
where such specialists or facilities provide access to 9
cost-effective and relevant skills or test capabilities. 10
(3) GENERATION IV INTERNATIONAL FORUM.— 11
International activities shall be coordinated with the 12
Generation IV International Forum. 13
(4) GENERATION IV NUCLEAR ENERGY SYS- 14
TEMS PROGRAM.—The Secretary may combine this 15
project with the Generation IV Nuclear Energy Sys- 16
tems Program. 17
(c) DEMONSTRATION.—The overall project, which 18
may involve demonstration of selected project objectives 19
in a partner nation, must demonstrate both electricity and 20
hydrogen production and may provide flexibility, where 21
technically and economically feasible in the design and 22
construction, to enable tests of alternative reactor core 23
and cooling configurations. 24
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(d) PARTNERSHIPS.—The Secretary shall establish 1
cost-shared partnerships with domestic industry or inter- 2
national participants for the research, development, de- 3
sign, construction, and operation of the research facility, 4
and preference in determining the final project structure 5
shall be given to an overall project which retains United 6
States leadership while maximizing cost sharing opportu- 7
nities and minimizing Federal funding responsibilities. 8
(e) TARGET DATE.—The Secretary shall select tech- 9
nologies and develop the project to provide initial testing 10
of either hydrogen production or electricity generation by 11
2010, or provide a report to Congress explaining why this 12
date is not feasible. 13
(f) WAIVER OF CONSTRUCTION TIMELINES.—The 14
Secretary is authorized to conduct the Advanced Reactor 15
Hydrogen Cogeneration Project without the constraints of 16
DOE Order 413.3, relating to program and project man- 17
agement for the acquisition of capital assets, as necessary 18
to meet the specified operational date. 19
(g) COMPETITION.—The Secretary may fund up to 20
2 teams for up to 1 year to develop detailed proposals for 21
competitive evaluation and selection of a single proposal 22
and concept for further progress. The Secretary shall de- 23
fine the format of the competitive evaluation of proposals. 24
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45
(h) USE OF FACILITIES.—Research facilities in in- 1
dustry, national laboratories, or universities either within 2
the United States or with cooperating international part- 3
ners may be used to develop the enabling technologies for 4
the research facility. Utilization of domestic university- 5
based facilities shall be encouraged to provide educational 6
opportunities for student development. 7
(i) ROLE OF NUCLEAR REGULATORY COMMISSION.— 8
(1) IN GENERAL.—The Nuclear Regulatory 9
Commission shall have licensing and regulatory au- 10
thority for any reactor authorized under this sub- 11
title, pursuant to section 202 of the Energy Reorga- 12
nization Act of 1974 (42 U.S.C. 5842). 13
(2) RISK-BASED CRITERIA.—The Secretary 14
shall seek active participation of the Nuclear Regu- 15
latory Commission throughout the project to develop 16
risk-based criteria for any future commercial devel- 17
opment of a similar reactor architecture. 18
(j) REPORT—The Secretary shall develop and trans- 19
mit to Congress a comprehensive project plan not later 20
than April 30, 2004. The project plan shall be updated 21
annually with each annual budget submission. 22
SEC. 655. AUTHORIZATION OF APPROPRIATIONS. 23
(a) RESEARCH, DEVELOPMENT, AND DESIGN PRO- 24
GRAMS.—The following sums are authorized to be appro- 25
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46
priated to the Secretary for all activities under this sub- 1
title except for construction activities described in sub- 2
section (b): 3
(1) For fiscal year 2004, $35,000,000. 4
(2) For each of fiscal years 2005 through 2008, 5
$150,000,000. 6
(3) For fiscal years beyond 2008, such sums as 7
are necessary. 8
(b) CONSTRUCTION.—There are authorized to be ap- 9
propriated to the Secretary for all project-related con- 10
struction activities, to be available until expended, 11
$500,000,000. 12
Subtitle D—Nuclear Security 13
SEC. 661. NUCLEAR FACILITY THREATS. 14
(a) STUDY.—The President, in consultation with the 15
Nuclear Regulatory Commission (referred to in this sub- 16
title as the ‘‘Commission’’) and other appropriate Federal, 17
State, and local agencies and private entities, shall con- 18
duct a study to identify the types of threats that pose an 19
appreciable risk to the security of the various classes of 20
facilities licensed by the Commission under the Atomic 21
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study 22
shall take into account, but not be limited to— 23
(1) the events of September 11, 2001; 24
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47
(2) an assessment of physical, cyber, bio- 1
chemical, and other terrorist threats; 2
(3) the potential for attack on facilities by mul- 3
tiple coordinated teams of a large number of individ- 4
uals; 5
(4) the potential for assistance in an attack 6
from several persons employed at the facility; 7
(5) the potential for suicide attacks; 8
(6) the potential for water-based and air-based 9
threats; 10
(7) the potential use of explosive devices of con- 11
siderable size and other modern weaponry; 12
(8) the potential for attacks by persons with a 13
sophisticated knowledge of facility operations; 14
(9) the potential for fires, especially fires of 15
long duration; 16
(10) the potential for attacks on spent fuel 17
shipments by multiple coordinated teams of a large 18
number of individuals; 19
(11) the adequacy of planning to protect the 20
public health and safety at and around nuclear fa- 21
cilities, as appropriate, in the event of a terrorist at- 22
tack against a nuclear facility; and 23
(12) the potential for theft and diversion of nu- 24
clear materials from such facilities. 25
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(b) SUMMARY AND CLASSIFICATION REPORT.—Not 1
later than 180 days after the date of the enactment of 2
this Act, the President shall transmit to Congress and the 3
Commission a report— 4
(1) summarizing the types of threats identified 5
under subsection (a); and 6
(2) classifying each type of threat identified 7
under subsection (a), in accordance with existing 8
laws and regulations, as either— 9
(A) involving attacks and destructive acts, 10
including sabotage, directed against the facility 11
by an enemy of the United States, whether a 12
foreign government or other person, or other- 13
wise falling under the responsibilities of the 14
Federal Government; or 15
(B) involving the type of risks that Com- 16
mission licensees should be responsible for 17
guarding against. 18
(c) FEDERAL ACTION REPORT.—Not later than 90 19
days after the date on which a report is transmitted under 20
subsection (b), the President shall transmit to Congress 21
a report on actions taken, or to be taken, to address the 22
types of threats identified under subsection (b)(2)(A), in- 23
cluding identification of the Federal, State, and local 24
agencies responsible for carrying out the obligations and 25
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49
authorities of the United States. Such report may include 1
a classified annex, as appropriate. 2
(d) REGULATIONS.—Not later than 180 days after 3
the date on which a report is transmitted under subsection 4
(b), the Commission may revise, by rule, the design basis 5
threats issued before the date of enactment of this section 6
as the Commission considers appropriate based on the 7
summary and classification report. 8
(e) PHYSICAL SECURITY PROGRAM.—The Commis- 9
sion shall establish an operational safeguards response 10
evaluation program that ensures that the physical protec- 11
tion capability and operational safeguards response for 12
sensitive nuclear facilities, as determined by the Commis- 13
sion consistent with the protection of public health and 14
the common defense and security, shall be tested periodi- 15
cally through Commission approved or designed, observed, 16
and evaluated force-on-force exercises to determine wheth- 17
er the ability to defeat the design basis threat is being 18
maintained. For purposes of this subsection, the term 19
‘‘sensitive nuclear facilities’’ includes at a minimum com- 20
mercial nuclear power plants and category I fuel cycle fa- 21
cilities. 22
(f) CONTROL OF INFORMATION.—Notwithstanding 23
any other provision of law, the Commission may undertake 24
any rulemaking under this subtitle in a manner that will 25
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fully protect safeguards and classified national security in- 1
formation. 2
(g) FEDERAL SECURITY COORDINATORS.— 3
(1) REGIONAL OFFICES.—Not later than 18 4
months after the date of enactment of this Act, the 5
Commission shall assign a Federal security coordi- 6
nator, under the employment of the Commission, to 7
each region of the Commission. 8
(2) RESPONSIBILITIES.—The Federal security 9
coordinator shall be responsible for— 10
(A) communicating with the Commission 11
and other Federal, State, and local authorities 12
concerning threats, including threats against 13
such classes of facilities as the Commission de- 14
termines to be appropriate; 15
(B) ensuring that such classes of facilities 16
as the Commission determines to be appropriate 17
maintain security consistent with the security 18
plan in accordance with the appropriate threat 19
level; and 20
(C) assisting in the coordination of secu- 21
rity measures among the private security forces 22
at such classes of facilities as the Commission 23
determines to be appropriate and Federal, 24
State, and local authorities, as appropriate. 25
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(h) TRAINING PROGRAM.—The President shall estab- 1
lish a program to provide technical assistance and training 2
to Federal agencies, the National Guard, and State and 3
local law enforcement and emergency response agencies in 4
responding to threats against a designated nuclear facility. 5
SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY 6
RECORD CHECKS. 7
(a) IN GENERAL.—Subsection a. of section 149 of 8
the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is 9
amended— 10
(1) by striking ‘‘a. The Nuclear’’ and all that 11
follows through ‘‘section 147.’’ and inserting the fol- 12
lowing: 13
‘‘a. IN GENERAL.— 14
‘‘(1) REQUIREMENTS.— 15
‘‘(A) IN GENERAL.— The Commission 16
shall require each individual or entity— 17
‘‘(i) that is licensed or certified to en- 18
gage in an activity subject to regulation by 19
the Commission; 20
‘‘(ii) that has filed an application for 21
a license or certificate to engage in an ac- 22
tivity subject to regulation by the Commis- 23
sion; or 24
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‘‘(iii) that has notified the Commis- 1
sion, in writing, of an intent to file an ap- 2
plication for licensing, certification, permit- 3
ting, or approval of a product or activity 4
subject to regulation by the Commission, 5
to fingerprint each individual described in sub- 6
paragraph (B) before the individual is per- 7
mitted unescorted access or access, whichever is 8
applicable, as described in subparagraph (B). 9
‘‘(B) INDIVIDUALS REQUIRED TO BE 10
FINGERPRINTED.—The Commission shall re- 11
quire to be fingerprinted each individual who— 12
‘‘(i) is permitted unescorted access 13
to— 14
‘‘(I) a utilization facility; or 15
‘‘(II) radioactive material or 16
other property subject to regulation 17
by the Commission that the Commis- 18
sion determines to be of such signifi- 19
cance to the public health and safety 20
or the common defense and security 21
as to warrant fingerprinting and back- 22
ground checks; or 23
‘‘(ii) is permitted access to safeguards 24
information under section 147.’’; 25
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53
(2) by striking ‘‘All fingerprints obtained by a 1
licensee or applicant as required in the preceding 2
sentence’’ and inserting the following: 3
‘‘(2) SUBMISSION TO THE ATTORNEY GEN- 4
ERAL.—All fingerprints obtained by an individual or 5
entity as required in paragraph (1)’’; 6
(3) by striking ‘‘The costs of any identification 7
and records check conducted pursuant to the pre- 8
ceding sentence shall be paid by the licensee or ap- 9
plicant.’’ and inserting the following: 10
‘‘(3) COSTS.—The costs of any identification 11
and records check conducted pursuant to paragraph 12
(1) shall be paid by the individual or entity required 13
to conduct the fingerprinting under paragraph 14
(1)(A).’’; and 15
(4) by striking ‘‘Notwithstanding any other pro- 16
vision of law, the Attorney General may provide all 17
the results of the search to the Commission, and, in 18
accordance with regulations prescribed under this 19
section, the Commission may provide such results to 20
licensee or applicant submitting such fingerprints.’’ 21
and inserting the following: 22
‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE- 23
QUIRED TO CONDUCT FINGERPRINTING.—Notwith- 24
standing any other provision of law, the Attorney 25
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54
General may provide all the results of the search to 1
the Commission, and, in accordance with regulations 2
prescribed under this section, the Commission may 3
provide such results to the individual or entity re- 4
quired to conduct the fingerprinting under para- 5
graph (1)(A).’’. 6
(b) ADMINISTRATION—Subsection c. of section 149 7
of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) 8
is amended— 9
(1) by striking ‘‘, subject to public notice and 10
comment, regulations—’’ and inserting ‘‘require- 11
ments—’’; and 12
(2) by striking, in paragraph (2)(B), 13
‘‘unescorted access to the facility of a licensee or ap- 14
plicant’’ and inserting ‘‘unescorted access to a utili- 15
zation facility, radioactive material, or other prop- 16
erty described in subsection a.(1)(B)’’. 17
(c) BIOMETRIC METHODS.—Subsection d. of section 18
149 of the Atomic Energy Act of 1954 (42 U.S.C. 19
2169(d)) is redesignated as subsection e., and the fol- 20
lowing is inserted after subsection c.: 21
‘‘d. USE OF OTHER BIOMETRIC METHODS.—The 22
Commission may satisfy any requirement for a person to 23
conduct fingerprinting under this section using any other 24
biometric method for identification approved for use by 25
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the Attorney General, after the Commission has approved 1
the alternative method by rule.’’. 2
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF 3
LICENSEES AND CERTIFICATE HOLDERS OF 4
THE COMMISSION. 5
Section 161 of the Atomic Energy Act of 1954 (42 6
U.S.C. 2201) is amended by adding at the end the fol- 7
lowing subsection: 8
‘‘(z)(1) notwithstanding section 922(o), (v), and 9
(w) of title 18, United States Code, or any similar 10
provision of any State law or any similar rule or reg- 11
ulation of a State or any political subdivision of a 12
State prohibiting the transfer or possession of a 13
handgun, a rifle or shotgun, a short-barreled shot- 14
gun, a short-barreled rifle, a machinegun, a semi- 15
automatic assault weapon, ammunition for the fore- 16
going, or a large capacity ammunition feeding de- 17
vice, authorize security personnel of licensees and 18
certificate holders of the Commission (including em- 19
ployees of contractors of licensees and certificate 20
holders) to receive, possess, transport, import, and 21
use 1 or more of those weapons, ammunition, or de- 22
vices, if the Commission determines that— 23
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‘‘(A) such authorization is necessary to the 1
discharge of the security personnel’s official du- 2
ties; and 3
‘‘(B) the security personnel— 4
‘‘(i) are not otherwise prohibited from 5
possessing or receiving a firearm under 6
Federal or State laws pertaining to posses- 7
sion of firearms by certain categories of 8
persons; 9
‘‘(ii) have successfully completed re- 10
quirements established through guidelines 11
implementing this subsection for training 12
in use of firearms and tactical maneuvers; 13
‘‘(iii) are engaged in the protection 14
of— 15
‘‘(I) facilities owned or operated 16
by a Commission licensee or certifi- 17
cate holder that are designated by the 18
Commission; or 19
‘‘(II) radioactive material or 20
other property owned or possessed by 21
a person that is a licensee or certifi- 22
cate holder of the Commission, or that 23
is being transported to or from a fa- 24
cility owned or operated by such a li- 25
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censee or certificate holder, and that 1
has been determined by the Commis- 2
sion to be of significance to the com- 3
mon defense and security or public 4
health and safety; and 5
‘‘(iv) are discharging their official du- 6
ties. 7
‘‘(2) Such receipt, possession, transportation, 8
importation, or use shall be subject to— 9
‘‘(A) chapter 44 of title 18, United States 10
Code, except for section 922(a)(4), (o), (v), and 11
(w); 12
‘‘(B) chapter 53 of title 26, United States 13
Code, except for section 5844; and 14
‘‘(C) a background check by the Attorney 15
General, based on fingerprints and including a 16
check of the system established under section 17
103(b) of the Brady Handgun Violence Preven- 18
tion Act (18 U.S.C. 922 note) to determine 19
whether the person applying for the authority is 20
prohibited from possessing or receiving a fire- 21
arm under Federal or State law. 22
‘‘(3) This subsection shall become effective 23
upon the issuance of guidelines by the Commission, 24
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with the approval of the Attorney General, to govern 1
the implementation of this subsection. 2
‘‘(4) In this subsection, the terms ‘‘handgun’’, 3
‘‘rifle’’, ‘‘shotgun’’, ‘‘firearm’’, ‘‘ammunition’’, ‘‘ma- 4
chinegun’’, ‘‘semiautomatic assault weapon’’, ‘‘large 5
capacity ammunition feeding device’’, ‘‘short-bar- 6
reled shotgun’’, and ‘‘short-barreled rifle’’ shall have 7
the meanings given those terms in section 921(a) of 8
title 18, United States Code.’’. 9
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS 10
WEAPONS. 11
Section 229 a. of the Atomic Energy Act of 1954 (42 12
U.S.C. 2278a(a)) is amended in the first sentence by in- 13
serting ‘‘or subject to the licensing authority of the Com- 14
mission or to certification by the Commission under this 15
Act or any other Act’’ before the period at the end. 16
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 17
(a) IN GENERAL.—Section 236 a. of the Atomic En- 18
ergy Act of 1954 (42 U.S.C. 2284(a)) is amended— 19
(1) in paragraph (2), by striking ‘‘storage facil- 20
ity’’ and inserting ‘‘storage, treatment, or disposal 21
facility’’; 22
(2) in paragraph (3)— 23
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(A) by striking ‘‘such a utilization facility’’ 1
and inserting ‘‘a utilization facility licensed 2
under this Act’’; and 3
(B) by striking ‘‘or’’ at the end; 4
(3) in paragraph (4)— 5
(A) by striking ‘‘facility licensed’’ and in- 6
serting ‘‘, uranium conversion, or nuclear fuel 7
fabrication facility licensed or certified’’; and 8
(B) by striking the comma at the end and 9
inserting a semicolon; and 10
(4) by inserting after paragraph (4) the fol- 11
lowing: 12
‘‘(5) any production, utilization, waste storage, 13
waste treatment, waste disposal, uranium enrich- 14
ment, uranium conversion, or nuclear fuel fabrica- 15
tion facility subject to licensing or certification 16
under this Act during construction of the facility, if 17
the destruction or damage caused or attempted to be 18
caused could adversely affect public health and safe- 19
ty during the operation of the facility; 20
‘‘(6) any primary facility or backup facility 21
from which a radiological emergency preparedness 22
alert and warning system is activated; or 23
‘‘(7) any radioactive material or other property 24
subject to regulation by the Nuclear Regulatory 25
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60
Commission that, before the date of the offense, the 1
Nuclear Regulatory Commission determines, by 2
order or regulation published in the Federal Reg- 3
ister, is of significance to the public health and safe- 4
ty or to common defense and security,’’. 5
(b) PENALTIES.—Section 236 of the Atomic Energy 6
Act of 1954 (42 U.S.C. 2284) is amended by striking 7
‘‘$10,000 or imprisoned for not more than 20 years, or 8
both, and, if death results to any person, shall be impris- 9
oned for any term of years or for life’’ both places it ap- 10
pears and inserting ‘‘$1,000,000 or imprisoned for up to 11
life without parole’’. 12
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS. 13
(a) AMENDMENT.—Chapter 14 of the Atomic Energy 14
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add- 15
ing at the end the following new section: 16
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS. 17
‘‘a. The Nuclear Regulatory Commission shall estab- 18
lish a system to ensure that materials described in sub- 19
section b., when transferred or received in the United 20
States by any party pursuant to an import or export li- 21
cense issued pursuant to this Act, are accompanied by a 22
manifest describing the type and amount of materials 23
being transferred or received. Each individual receiving or 24
accompanying the transfer of such materials shall be sub- 25
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ject to a security background check conducted by appro- 1
priate Federal entities. 2
‘‘b. Except as otherwise provided by the Commission 3
by regulation, the materials referred to in subsection a. 4
are byproduct materials, source materials, special nuclear 5
materials, high-level radioactive waste, spent nuclear fuel, 6
transuranic waste, and low-level radioactive waste (as de- 7
fined in section 2(16) of the Nuclear Waste Policy Act 8
of 1982 (42 U.S.C. 10101(16))).’’. 9
(b) REGULATIONS.—Not later than 1 year after the 10
date of the enactment of this Act, and from time to time 11
thereafter as it considers necessary, the Nuclear Regu- 12
latory Commission shall issue regulations identifying ra- 13
dioactive materials or classes of individuals that, con- 14
sistent with the protection of public health and safety and 15
the common defense and security, are appropriate excep- 16
tions to the requirements of section 170C of the Atomic 17
Energy Act of 1954, as added by subsection (a) of this 18
section. 19
(c) EFFECTIVE DATE.—The amendment made by 20
subsection (a) shall take effect upon the issuance of regu- 21
lations under subsection (b), except that the background 22
check requirement shall become effective on a date estab- 23
lished by the Commission. 24
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(d) EFFECT ON OTHER LAW.—Nothing in this sec- 1
tion or the amendment made by this section shall waive, 2
modify, or affect the application of chapter 51 of title 49, 3
United States Code, part A of subtitle V of title 49, 4
United States Code, part B of subtitle VI of title 49, 5
United States Code, and title 23, United States Code. 6
(e) TABLE OF SECTIONS AMENDMENT.—The table of 7
sections for chapter 14 of the Atomic Energy Act of 1954 8
is amended by adding at the end the following new item: 9
‘‘Sec. 170C. Secure transfer of nuclear materials.’’.
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON- 10
SULTATION. 11
Before issuing a license for a utilization facility, the 12
Nuclear Regulatory Commission shall consult with the De- 13
partment of Homeland Security concerning the potential 14
vulnerabilities of the location of the proposed facility to 15
terrorist attack. 16
SEC. 668. AUTHORIZATION OF APPROPRIATIONS. 17
(a) IN GENERAL.—There are authorized to be appro- 18
priated such sums as are necessary to carry out this sub- 19
title and the amendments made by this subtitle. 20
(b) AGGREGATE AMOUNT OF CHARGES.—Section 21
6101(c)(2)(A) of the Omnibus Budget Reconciliation Act 22
of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended— 23
(1) in clause (i), by striking ‘‘and’’ at the end; 24
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(2) in clause (ii), by striking the period at the 1
end and inserting ‘‘; and’’ and 2
(3) by adding at the end the following: 3
‘‘(iii) amounts appropriated to the 4
Commission for homeland security activi- 5
ties of the Commission for the fiscal year, 6
except for the costs of fingerprinting and 7
background checks required by section 149 8
of the Atomic Energy Act of 1954 (42 9
U.S.C. 2169) and the costs of conducting 10
security inspections.’’. 11
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Title VII - Vehicles and Fuels

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE VII—VEHICLES AND 1
FUELS 2
Subtitle A—Existing Programs 3
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED 4
VEHICLES. 5
Section 400AA(a)(3)(E) of the Energy Policy and 6
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 7
to read as follows: 8
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 9
section shall be operated on alternative fuels unless the 10
Secretary determines that an agency qualifies for a waiver 11
of such requirement for vehicles operated by the agency 12
in a particular geographic area in which— 13
‘‘(I) the alternative fuel otherwise required to 14
be used in the vehicle is not reasonably available to 15
retail purchasers of the fuel, as certified to the Sec- 16
retary by the head of the agency; or 17
‘‘(II) the cost of the alternative fuel otherwise 18
required to be used in the vehicle is unreasonably 19
more expensive compared to gasoline, as certified to 20
the Secretary by the head of the agency. 21
‘‘(ii) The Secretary shall monitor compliance with 22
this subparagraph by all such fleets and shall report annu- 23
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2
ally to Congress on the extent to which the requirements 1
of this subparagraph are being achieved. The report shall 2
include information on annual reductions achieved from 3
the use of petroleum-based fuels and the problems, if any, 4
encountered in acquiring alternative fuels.’’. 5
SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES. 6
(a) AMENDMENTS.—Section 301 of the Energy Pol- 7
icy Act of 1992 (42 U.S.C. 13211) is amended— 8
(1) in paragraph (3), by striking ‘‘or a dual 9
fueled vehicle’’ and inserting ‘‘, a dual fueled vehicle, 10
or a neighborhood electric vehicle’’; 11
(2) in paragraph (13), by striking ‘‘and’’ at the 12
end; 13
(3) in paragraph (14), by striking the period at 14
the end and inserting ‘‘; and’’; and 15
(4) by adding at the end the following: 16
‘‘(15) the term ‘neighborhood electric vehicle’ 17
means a motor vehicle that— 18
‘‘(A) meets the definition of a low-speed 19
vehicle (as defined in part 571 of title 49, Code 20
of Federal Regulations); 21
‘‘(B) meets the definition of a zero-emis- 22
sion vehicle (as defined in section 86.1702–99 23
of title 40, Code of Federal Regulations); 24
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3
‘‘(C) meets the requirements of Federal 1
Motor Vehicle Safety Standard No. 500; and 2
‘‘(D) has a maximum speed of not greater 3
than 25 miles per hour.’’. 4
(b) CREDITS.—Notwithstanding section 508 of the 5
Energy Policy Act of 1992 (42 U.S.C. 13258) or any other 6
provision of law, a neighborhood electric vehicle shall not 7
be allocated credit as more than 1 vehicle for purposes 8
of determining compliance with any requirement under 9
title III or title V of such Act. 10
SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDI- 11
CATED VEHICLES. 12
Section 508 of the Energy Policy Act of 1992 (42 13
U.S.C. 13258) is amended by adding at the end the fol- 14
lowing: 15
‘‘(e) CREDIT FOR PURCHASE OF MEDIUM AND 16
HEAVY DUTY DEDICATED VEHICLES.— 17
‘‘(1) DEFINITIONS.—In this subsection: 18
‘‘(A) HEAVY DUTY DEDICATED VEHI- 19
CLE.—The term ‘heavy duty dedicated vehicle’ 20
means a dedicated vehicle that has a gross vehi- 21
cle weight rating of more than 14,000 pounds. 22
‘‘(B) MEDIUM DUTY DEDICATED VEHI- 23
CLE.—The term ‘medium duty dedicated vehi- 24
cle’ means a dedicated vehicle that has a gross 25
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4
vehicle weight rating of more than 8,500 1
pounds but not more than 14,000 pounds. 2
‘‘(2) CREDITS FOR MEDIUM DUTY VEHICLES.— 3
The Secretary shall issue 2 full credits to a fleet or 4
covered person under this title, if the fleet or covered 5
person acquires a medium duty dedicated vehicle. 6
‘‘(3) CREDITS FOR HEAVY DUTY VEHICLES.— 7
The Secretary shall issue 3 full credits to a fleet or 8
covered person under this title, if the fleet or covered 9
person acquires a heavy duty dedicated vehicle. 10
‘‘(4) USE OF CREDITS.—At the request of a 11
fleet or covered person allocated a credit under this 12
subsection, the Secretary shall, for the year in which 13
the acquisition of the dedicated vehicle is made, 14
treat that credit as the acquisition of 1 alternative 15
fueled vehicle that the fleet or covered person is re- 16
quired to acquire under this title.’’. 17
SEC. 704. INCREMENTAL COST ALLOCATION. 18
Section 303(c) of the Energy Policy Act of 1992 (42 19
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in- 20
serting ‘‘shall’’. 21
SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY. 22
(a) ALTERNATIVE COMPLIANCE.— 23
(1) IN GENERAL.—Title V of the Energy Policy 24
Act of 1992 (42 U.S.C. 13251 et seq.) is amended— 25
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5
(A) by redesignating section 514 as section 1
515; and 2
(B) by inserting after section 513 the fol- 3
lowing: 4
‘‘SEC. 514. ALTERNATIVE COMPLIANCE. 5
‘‘(a) APPLICATION FOR WAIVER.—Any covered per- 6
son subject to section 501 and any State subject to section 7
507(o) may petition the Secretary for a waiver of the ap- 8
plicable requirements of section 501 or 507(o). 9
‘‘(b) GRANT OF WAIVER.—The Secretary may grant 10
a waiver of the requirements of section 501 or 507(o) 11
upon a showing that the fleet owned, operated, leased, or 12
otherwise controlled by the State or covered person— 13
‘‘(1) will achieve a reduction in its annual con- 14
sumption of petroleum fuels equal to the reduction 15
in consumption of petroleum that would result from 16
100 percent compliance with fuel use requirements 17
in section 501, or, for entities covered under section 18
507(o), a reduction equal to the covered State enti- 19
ty’s consumption of alternative fuels if all its alter- 20
native fuel vehicles given credit under section 508 21
were to use alternative fuel 100 percent of the time; 22
and 23
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6
‘‘(2) is in compliance with all applicable vehicle 1
emission standards established by the Administrator 2
under the Clean Air Act (42 U.S.C. 7401 et seq.). 3
‘‘(c) REVOCATION OF WAIVER.—The Secretary shall 4
revoke any waiver granted under this section if the State 5
or covered person fails to comply with subsection (b).’’. 6
(2) TABLE OF CONTENTS AMENDMENT.—The 7
table of contents of the Energy Policy Act of 1992 8
(42 U.S.C. prec. 13201) is amended by striking the 9
item relating to section 514 and inserting the fol- 10
lowing: 11
‘‘Sec. 514. Alternative compliance.
‘‘Sec. 515. Authorization of appropriations.’’.
(b) CREDITS.—Section 508 of the Energy Policy Act 12
of 1992 (42 U.S.C. 13258) (as amended by section 703) 13
is amended— 14
(1) by redesignating subsections (b) through (e) 15
as subsections (c) through (f), respectively; 16
(2) by striking subsection (a) and inserting the 17
following: 18
‘‘(a) IN GENERAL.—The Secretary shall allocate a 19
credit to a fleet or covered person that is required to ac- 20
quire an alternative fueled vehicle under this title, if that 21
fleet or person acquires an alternative fueled vehicle— 22
‘‘(1) in excess of the number that fleet or per- 23
son is required to acquire under this title; 24
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7
‘‘(2) before the date on which that fleet or per- 1
son is required to acquire an alternative fueled vehi- 2
cle under this title; or 3
‘‘(3) that is eligible to receive credit under sub- 4
section (b). 5
‘‘(b) MAXIMUM AVAILABLE POWER.—The Secretary 6
shall allocate credit to a fleet under subsection (a)(3) for 7
the acquisition by the fleet of a hybrid vehicle as follows: 8
‘‘(1) For a hybrid vehicle with at least 4 per- 9
cent but less than 10 percent maximum available 10
power, the Secretary shall allocate 25 percent of 1 11
credit. 12
‘‘(2) For a hybrid vehicle with at least 10 per- 13
cent but less than 20 percent maximum available 14
power, the Secretary shall allocate 50 percent of 1 15
credit. 16
‘‘(3) For a hybrid vehicle with at least 20 per- 17
cent but less than 30 percent maximum available 18
power, the Secretary shall allocate 75 percent of 1 19
credit. 20
‘‘(4) For a hybrid vehicle with 30 percent or 21
more maximum available power, the Secretary shall 22
allocate 1 credit.’’; and 23
(3) by adding at the end the following: 24
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‘‘(g) CREDIT FOR INVESTMENT IN ALTERNATIVE 1
FUEL INFRASTRUCTURE.— 2
‘‘(1) DEFINITION OF QUALIFYING INFRASTRUC- 3
TURE.—In this subsection, the term ‘qualifying in- 4
frastructure’ means— 5
‘‘(A) equipment required to refuel or re- 6
charge alternative fueled vehicles; 7
‘‘(B) facilities or equipment required to 8
maintain, repair, or operate alternative fueled 9
vehicles; and 10
‘‘(C) such other activities as the Secretary 11
considers to constitute an appropriate expendi- 12
ture in support of the operation, maintenance, 13
or further widespread adoption of or utilization 14
of alternative fueled vehicles. 15
‘‘(2) ISSUANCE OF CREDITS.—The Secretary 16
shall issue a credit to a fleet or covered person under 17
this title for investment in qualifying infrastructure 18
if the qualifying infrastructure is open to the general 19
public during regular business hours. 20
‘‘(3) AMOUNT.—For the purpose of credits 21
under this subsection— 22
‘‘(A) 1 credit shall be equal to a minimum 23
investment of $25,000 in cash or equivalent ex- 24
penditure, as determined by the Secretary; and 25
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9
‘‘(B) except in the case of a Federal or 1
State fleet, no part of the investment may be 2
provided by Federal or State funds. 3
‘‘(4) USE OF CREDITS.—At the request of a 4
fleet or covered person allocated a credit under this 5
subsection, the Secretary shall, for the year in which 6
the investment is made, treat that credit as the ac- 7
quisition of 1 alternative fueled vehicle that the fleet 8
or covered person is required to acquire under this 9
title. 10
‘‘(h) DEFINITION OF MAXIMUM AVAILABLE 11
POWER.—In this section, the term ‘maximum available 12
power’ means the quotient obtained by dividing— 13
‘‘(1) the maximum power available from the en- 14
ergy storage device of a hybrid vehicle, during a 15
standard 10-second pulse power or equivalent test; 16
by 17
‘‘(2) the sum of— 18
‘‘(A) the maximum power described in sub- 19
paragraph (A); and 20
‘‘(B) the net power of the internal combus- 21
tion or heat engine, as determined in accord- 22
ance with standards established by the Society 23
of Automobile Engineers.’’. 24
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(c) LEASE CONDENSATE FUELS.—Section 301 of the 1
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend- 2
ed by section 702) is amended— 3
(1) in paragraph (2), by inserting ‘‘mixtures 4
containing 50 percent or more by volume of lease 5
condensate or fuels extracted from lease conden- 6
sate;’’ after ‘‘liquefied petroleum gas;’’; 7
(2) in paragraph (14)— 8
(A) by inserting ‘‘mixtures containing 50 9
percent or more by volume of lease condensate 10
or fuels extracted from lease condensate,’’ after 11
‘‘liquefied petroleum gas,’’; and 12
(B) by striking ‘‘and’’ at the end; 13
(3) in paragraph (15), by striking the period at 14
the end and inserting ‘‘; and’’; and 15
(4) by adding at the end the following: 16
‘‘(16) the term ‘lease condensate’ means a mix- 17
ture, primarily of pentanes and heavier hydro- 18
carbons, that is recovered as a liquid from natural 19
gas in lease separation facilities.’’. 20
(d) LEASE CONDENSATE USE CREDITS.— 21
(1) IN GENERAL.—Title III of the Energy Pol- 22
icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend- 23
ed by adding at the end the following: 24
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11
‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. 1
‘‘(a) IN GENERAL.—Subject to subsection (d), the 2
Secretary shall allocate 1 credit under this section to a 3
fleet or covered person for each qualifying volume of the 4
lease condensate component of fuel containing at least 50 5
percent lease condensate, or fuels extracted from lease 6
condensate, after the date of enactment of this section for 7
use by the fleet or covered person in vehicles owned or 8
operated by the fleet or covered person that weigh more 9
than 8,500 pounds gross vehicle weight rating. 10
‘‘(b) REQUIREMENTS.—A credit allocated under this 11
section— 12
‘‘(1) shall be subject to the same exceptions, 13
authority, documentation, and use of credits that are 14
specified for qualifying volumes of biodiesel in sec- 15
tion 312; and 16
‘‘(2) shall not be considered a credit under sec- 17
tion 508. 18
‘‘(c) REGULATION.— 19
‘‘(1) IN GENERAL.—Subject to subsection (d), 20
not later than January 1, 2004, after the collection 21
of appropriate information and data that consider 22
usage options, uses in other industries, products, or 23
processes, potential volume capacities, costs, air 24
emissions, and fuel efficiencies, the Secretary shall 25
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12
issue a regulation establishing requirements and pro- 1
cedures for the implementation of this section. 2
‘‘(2) QUALIFYING VOLUME.—The regulation 3
shall include a determination of an appropriate 4
qualifying volume for lease condensate, except that 5
in no case shall the Secretary determine that the 6
qualifying volume for lease condensate is less than 7
1,125 gallons. 8
‘‘(d) APPLICABILITY.—This section applies unless the 9
Secretary finds that the use of lease condensate as an al- 10
ternative fuel would adversely affect public health or safe- 11
ty or ambient air quality or the environment.’’. 12
(2) TABLE OF CONTENTS AMENDMENT.—The 13
table of contents of the Energy Policy Act of 1992 14
(42 U.S.C. prec. 13201) is amended by adding at 15
the end of the items relating to title III the fol- 16
lowing: 17
‘‘Sec. 313. Lease condensate use credits.’’.
(e) EMERGENCY EXEMPTION.—Section 301 of the 18
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend- 19
ed by section 702 and this section) is amended in para- 20
graph (9)(E) by inserting before the semicolon at the end 21
‘‘, including vehicles directly used in the emergency repair 22
of transmission lines and in the restoration of electricity 23
service following power outages, as determined by the Sec- 24
retary’’. 25
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SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO- 1
GRAMS. 2
(a) IN GENERAL.—Not later than 180 days after the 3
date of enactment of this section, the Secretary of Energy 4
shall complete a study to determine the effect that titles 5
III, IV, and V of the Energy Policy Act of 1992 (42 6
U.S.C. 13211 et seq.) have had on— 7
(1) the development of alternative fueled vehicle 8
technology; 9
(2) the availability of that technology in the 10
market; and 11
(3) the cost of alternative fueled vehicles. 12
(b) TOPICS.—As part of the study under subsection 13
(a), the Secretary shall specifically identify— 14
(1) the number of alternative fueled vehicles ac- 15
quired by fleets or covered persons required to ac- 16
quire alternative fueled vehicles; 17
(2) the quantity, by type, of alternative fuel ac- 18
tually used in alternative fueled vehicles acquired by 19
fleets or covered persons; 20
(3) the quantity of petroleum displaced by the 21
use of alternative fuels in alternative fueled vehicles 22
acquired by fleets or covered persons; 23
(4) the direct and indirect costs of compliance 24
with requirements under titles III, IV, and V of the 25
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Energy Policy Act of 1992 (42 U.S.C. 13211 et 1
seq.), including— 2
(A) vehicle acquisition requirements im- 3
posed on fleets or covered persons; 4
(B) administrative and recordkeeping ex- 5
penses; 6
(C) fuel and fuel infrastructure costs; 7
(D) associated training and employee ex- 8
penses; and 9
(E) any other factors or expenses the Sec- 10
retary determines to be necessary to compile re- 11
liable estimates of the overall costs and benefits 12
of complying with programs under those titles 13
for fleets, covered persons, and the national 14
economy; 15
(5) the existence of obstacles preventing compli- 16
ance with vehicle acquisition requirements and in- 17
creased use of alternative fuel in alternative fueled 18
vehicles acquired by fleets or covered persons; and 19
(6) the projected impact of amendments to the 20
Energy Policy Act of 1992 made by this title. 21
(c) REPORT.—Upon completion of the study under 22
this section, the Secretary shall submit to Congress a re- 23
port that describes the results of the study and includes 24
any recommendations of the Secretary for legislative or 25
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administrative changes concerning the alternative fueled 1
vehicle requirements under titles III, IV and V of the En- 2
ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.). 3
SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL- 4
TERNATIVE FUELED VEHICLE PURCHASING 5
REQUIREMENTS. 6
Section 310(b)(1) of the Energy Policy Act of 1992 7
(42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year 8
after the date of enactment of this subsection’’ and insert- 9
ing ‘‘February 15, 2004’’. 10
Subtitle B—Hybrid Vehicles, Ad- 11
vanced Vehicles, and Fuel Cell 12
Buses 13
PART 1—HYBRID VEHICLES 14
SEC. 711. HYBRID VEHICLES. 15
The Secretary of Energy shall accelerate efforts di- 16
rected toward the improvement of batteries and other re- 17
chargeable energy storage systems, power electronics, hy- 18
brid systems integration, and other technologies for use 19
in hybrid vehicles. 20
PART 2—ADVANCED VEHICLES 21
SEC. 721. DEFINITIONS. 22
In this part: 23
(1) ALTERNATIVE FUELED VEHICLE.— 24
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(A) IN GENERAL.—The term ‘‘alternative 1
fueled vehicle’’ means a vehicle propelled solely 2
on an alternative fuel (as defined in section 301 3
of the Energy Policy Act of 1992 (42 U.S.C. 4
13211)). 5
(B) EXCLUSION.—The term ‘‘alternative 6
fueled vehicle’’ does not include a vehicle that 7
the Secretary determines, by regulation, does 8
not yield substantial environmental benefits 9
over a vehicle operating solely on gasoline or 10
diesel derived from fossil fuels. 11
(2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 12
vehicle’’ means a vehicle propelled by an electric 13
motor powered by a fuel cell system that converts 14
chemical energy into electricity by combining oxygen 15
(from air) with hydrogen fuel that is stored on the 16
vehicle or is produced onboard by reformation of a 17
hydrocarbon fuel. Such fuel cell system may or may 18
not include the use of auxiliary energy storage sys- 19
tems to enhance vehicle performance. 20
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi- 21
cle’’ means a medium or heavy duty vehicle propelled 22
by an internal combustion engine or heat engine 23
using any combustible fuel and an onboard recharge- 24
able energy storage device. 25
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(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 1
term ‘‘neighborhood electric vehicle’’ means a motor 2
vehicle that— 3
(A) meets the definition of a low-speed ve- 4
hicle (as defined in part 571 of title 49, Code 5
of Federal Regulations); 6
(B) meets the definition of a zero-emission 7
vehicle (as defined in section 86.1702–99 of 8
title 40, Code of Federal Regulations); 9
(C) meets the requirements of Federal 10
Motor Vehicle Safety Standard No. 500; and 11
(D) has a maximum speed of not greater 12
than 25 miles per hour. 13
(5) PILOT PROGRAM.—The term ‘‘pilot pro- 14
gram’’ means the competitive grant program estab- 15
lished under section 722. 16
(6) SECRETARY.—The term ‘‘Secretary’’ means 17
the Secretary of Energy. 18
(7) ULTRA-LOW SULFUR DIESEL VEHICLE.— 19
The term ‘‘ultra-low sulfur diesel vehicle’’ means a 20
vehicle manufactured in any of model years 2003 21
through 2006 powered by a heavy-duty diesel engine 22
that— 23
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(A) is fueled by diesel fuel that contains 1
sulfur at not more than 15 parts per million; 2
and 3
(B) emits not more than the lesser of— 4
(i) for vehicles manufactured in— 5
(I) model year 2003, 3.0 grams 6
per brake horsepower-hour of oxides 7
of nitrogen and .01 grams per brake 8
horsepower-hour of particulate matter; 9
and 10
(II) model years 2004 through 11
2006, 2.5 grams per brake horse- 12
power-hour of nonmethane hydro- 13
carbons and oxides of nitrogen and 14
.01 grams per brake horsepower-hour 15
of particulate matter; or 16
(ii) the quantity of emissions of non- 17
methane hydrocarbons, oxides of nitrogen, 18
and particulate matter of the best-per- 19
forming technology of ultra-low sulfur die- 20
sel vehicles of the same class and applica- 21
tion that are commercially available. 22
SEC. 722. PILOT PROGRAM. 23
(a) ESTABLISHMENT.—The Secretary, in consulta- 24
tion with the Secretary of Transportation, shall establish 25
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a competitive grant pilot program, to be administered 1
through the Clean Cities Program of the Department of 2
Energy, to provide not more than 15 geographically dis- 3
persed project grants to State governments, local govern- 4
ments, or metropolitan transportation authorities to carry 5
out a project or projects for the purposes described in sub- 6
section (b). 7
(b) GRANT PURPOSES.—A grant under this section 8
may be used for the following purposes: 9
(1) The acquisition of alternative fueled vehicles 10
or fuel cell vehicles, including— 11
(A) passenger vehicles (including neighbor- 12
hood electric vehicles); and 13
(B) motorized 2-wheel bicycles, scooters, or 14
other vehicles for use by law enforcement per- 15
sonnel or other State or local government or 16
metropolitan transportation authority employ- 17
ees. 18
(2) The acquisition of alternative fueled vehi- 19
cles, hybrid vehicles, or fuel cell vehicles, including— 20
(A) buses used for public transportation or 21
transportation to and from schools; 22
(B) delivery vehicles for goods or services; 23
and 24
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(C) ground support vehicles at public air- 1
ports (including vehicles to carry baggage or 2
push or pull airplanes toward or away from ter- 3
minal gates). 4
(3) The acquisition of ultra-low sulfur diesel ve- 5
hicles. 6
(4) Installation or acquisition of infrastructure 7
necessary to directly support an alternative fueled 8
vehicle, fuel cell vehicle, or hybrid vehicle project 9
funded by the grant, including fueling and other 10
support equipment. 11
(5) Operation and maintenance of vehicles, in- 12
frastructure, and equipment acquired as part of a 13
project funded by the grant. 14
(c) APPLICATIONS.— 15
(1) REQUIREMENTS.— 16
(A) IN GENERAL.—The Secretary shall 17
issue requirements for applying for grants 18
under the pilot program. 19
(B) MINIMUM REQUIREMENTS.—At a min- 20
imum, the Secretary shall require that an appli- 21
cation for a grant— 22
(i) be submitted by the head of a 23
State or local government or a metropoli- 24
tan transportation authority, or any com- 25
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21
bination thereof, and a registered partici- 1
pant in the Clean Cities Program of the 2
Department of Energy; and 3
(ii) include— 4
(I) a description of the project 5
proposed in the application, including 6
how the project meets the require- 7
ments of this part; 8
(II) an estimate of the ridership 9
or degree of use of the project; 10
(III) an estimate of the air pollu- 11
tion emissions reduced and fossil fuel 12
displaced as a result of the project, 13
and a plan to collect and disseminate 14
environmental data, related to the 15
project to be funded under the grant, 16
over the life of the project; 17
(IV) a description of how the 18
project will be sustainable without 19
Federal assistance after the comple- 20
tion of the term of the grant; 21
(V) a complete description of the 22
costs of the project, including acquisi- 23
tion, construction, operation, and 24
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maintenance costs over the expected 1
life of the project; 2
(VI) a description of which costs 3
of the project will be supported by 4
Federal assistance under this part; 5
and 6
(VII) documentation to the satis- 7
faction of the Secretary that diesel 8
fuel containing sulfur at not more 9
than 15 parts per million is available 10
for carrying out the project, and a 11
commitment by the applicant to use 12
such fuel in carrying out the project. 13
(2) PARTNERS.—An applicant under paragraph 14
(1) may carry out a project under the pilot program 15
in partnership with public and private entities. 16
(d) SELECTION CRITERIA.—In evaluating applica- 17
tions under the pilot program, the Secretary shall— 18
(1) consider each applicant’s previous experi- 19
ence with similar projects; and 20
(2) give priority consideration to applications 21
that— 22
(A) are most likely to maximize protection 23
of the environment; 24
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(B) demonstrate the greatest commitment 1
on the part of the applicant to ensure funding 2
for the proposed project and the greatest likeli- 3
hood that the project will be maintained or ex- 4
panded after Federal assistance under this part 5
is completed; and 6
(C) exceed the minimum requirements of 7
subsection (c)(1)(B)(ii). 8
(e) PILOT PROJECT REQUIREMENTS.— 9
(1) MAXIMUM AMOUNT.—The Secretary shall 10
not provide more than $20,000,000 in Federal as- 11
sistance under the pilot program to any applicant. 12
(2) COST SHARING.—The Secretary shall not 13
provide more than 50 percent of the cost, incurred 14
during the period of the grant, of any project under 15
the pilot program. 16
(3) MAXIMUM PERIOD OF GRANTS.—The Sec- 17
retary shall not fund any applicant under the pilot 18
program for more than 5 years. 19
(4) DEPLOYMENT AND DISTRIBUTION.—The 20
Secretary shall seek to the maximum extent prac- 21
ticable to ensure a broad geographic distribution of 22
project sites. 23
(5) TRANSFER OF INFORMATION AND KNOWL- 24
EDGE.—The Secretary shall establish mechanisms to 25
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ensure that the information and knowledge gained 1
by participants in the pilot program are transferred 2
among the pilot program participants and to other 3
interested parties, including other applicants that 4
submitted applications. 5
(f) SCHEDULE.— 6
(1) PUBLICATION.—Not later than 90 days 7
after the date of enactment of this Act, the Sec- 8
retary shall publish in the Federal Register, Com- 9
merce Business Daily, and elsewhere as appropriate, 10
a request for applications to undertake projects 11
under the pilot program. Applications shall be due 12
not later than 180 days after the date of publication 13
of the notice. 14
(2) SELECTION.—Not later than 180 days after 15
the date by which applications for grants are due, 16
the Secretary shall select by competitive, peer re- 17
viewed proposal, all applications for projects to be 18
awarded a grant under the pilot program. 19
(g) LIMIT ON FUNDING.—The Secretary shall pro- 20
vide not less than 20 nor more than 25 percent of the 21
grant funding made available under this section for the 22
acquisition of ultra-low sulfur diesel vehicles. 23
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SEC. 723. REPORTS TO CONGRESS. 1
(a) INITIAL REPORT.—Not later than 60 days after 2
the date on which grants are awarded under this part, 3
the Secretary shall submit to Congress a report 4
containing— 5
(1) an identification of the grant recipients and 6
a description of the projects to be funded; 7
(2) an identification of other applicants that 8
submitted applications for the pilot program; and 9
(3) a description of the mechanisms used by the 10
Secretary to ensure that the information and knowl- 11
edge gained by participants in the pilot program are 12
transferred among the pilot program participants 13
and to other interested parties, including other ap- 14
plicants that submitted applications. 15
(b) EVALUATION.—Not later than 3 years after the 16
date of enactment of this Act, and annually thereafter 17
until the pilot program ends, the Secretary shall submit 18
to Congress a report containing an evaluation of the effec- 19
tiveness of the pilot program, including— 20
(1) an assessment of the benefits to the envi- 21
ronment derived from the projects included in the 22
pilot program; and 23
(2) an estimate of the potential benefits to the 24
environment to be derived from widespread applica- 25
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tion of alternative fueled vehicles and ultra-low sul- 1
fur diesel vehicles. 2
SEC. 724. AUTHORIZATION OF APPROPRIATIONS. 3
There are authorized to be appropriated to the Sec- 4
retary to carry out this part $200,000,000, to remain 5
available until expended. 6
PART 3—FUEL CELL BUSES 7
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION. 8
(a) IN GENERAL.—The Secretary of Energy, in con- 9
sultation with the Secretary of Transportation, shall es- 10
tablish a transit bus demonstration program to make com- 11
petitive, merit-based awards for 5-year projects to dem- 12
onstrate not more than 25 fuel cell transit buses (and nec- 13
essary infrastructure) in 5 geographically dispersed local- 14
ities. 15
(b) PREFERENCE.—In selecting projects under this 16
section, the Secretary of Energy shall give preference to 17
projects that are most likely to mitigate congestion and 18
improve air quality. 19
(c) AUTHORIZATION OF APPROPRIATIONS.—There 20
are authorized to be appropriated to the Secretary of En- 21
ergy to carry out this section $10,000,000 for each of fis- 22
cal years 2004 through 2008. 23
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Subtitle C—Clean School Buses 1
SEC. 741. DEFINITIONS. 2
In this subtitle: 3
(1) ADMINISTRATOR.—The term ‘‘Adminis- 4
trator’’ means the Administrator of the Environ- 5
mental Protection Agency. 6
(2) ALTERNATIVE FUEL.—The term ‘‘alter- 7
native fuel’’ means liquefied natural gas, compressed 8
natural gas, liquefied petroleum gas, hydrogen, pro- 9
pane, or methanol or ethanol at no less than 85 per- 10
cent by volume. 11
(3) ALTERNATIVE FUEL SCHOOL BUS.—The 12
term ‘‘alternative fuel school bus’’ means a school 13
bus that meets all of the requirements of this sub- 14
title and is operated solely on an alternative fuel. 15
(4) EMISSIONS CONTROL RETROFIT TECH- 16
NOLOGY.—The term ‘‘emissions control retrofit tech- 17
nology’’ means a particulate filter or other emissions 18
control equipment that is verified or certified by the 19
Administrator or the California Air Resources Board 20
as an effective emission reduction technology when 21
installed on an existing school bus. 22
(5) IDLING.—The term ‘‘idling’’ means oper- 23
ating an engine while remaining stationary for more 24
than approximately 15 minutes, except that the term 25
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does not apply to routine stoppages associated with 1
traffic movement or congestion. 2
(6) SECRETARY.—The term ‘‘Secretary’’ means 3
the Secretary of Energy. 4
(7) ULTRA-LOW SULFUR DIESEL FUEL.—The 5
term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel 6
that contains sulfur at not more than 15 parts per 7
million. 8
(8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL 9
BUS.—The term ‘‘ultra-low sulfur diesel fuel school 10
bus’’ means a school bus that meets all of the re- 11
quirements of this subtitle and is operated solely on 12
ultra-low sulfur diesel fuel. 13
SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN 14
SCHOOL BUSES WITH CLEAN SCHOOL BUSES. 15
(a) ESTABLISHMENT.—The Administrator, in con- 16
sultation with the Secretary and other appropriate Federal 17
departments and agencies, shall establish a program for 18
awarding grants on a competitive basis to eligible entities 19
for the replacement of existing school buses manufactured 20
before model year 1991 with alternative fuel school buses 21
and ultra-low sulfur diesel fuel school buses. 22
(b) REQUIREMENTS.— 23
(1) IN GENERAL.—Not later than 90 days after 24
the date of enactment of this Act, the Administrator 25
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shall establish and publish in the Federal Register 1
grant requirements on eligibility for assistance, and 2
on implementation of the program established under 3
subsection (a), including instructions for the submis- 4
sion of grant applications and certification require- 5
ments to ensure compliance with this subtitle. 6
(2) APPLICATION DEADLINES.—The require- 7
ments established under paragraph (1) shall require 8
submission of grant applications not later than— 9
(A) in the case of the first year of program 10
implementation, the date that is 180 days after 11
the publication of the requirements in the Fed- 12
eral Register; and 13
(B) in the case of each subsequent year, 14
June 1 of the year. 15
(c) ELIGIBLE RECIPIENTS.—A grant shall be award- 16
ed under this section only— 17
(1) to 1 or more local or State governmental 18
entities responsible for providing school bus service 19
to 1 or more public school systems or responsible for 20
the purchase of school buses; 21
(2) to 1 or more contracting entities that pro- 22
vide school bus service to 1 or more public school 23
systems, if the grant application is submitted jointly 24
with the 1 or more school systems to be served by 25
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the buses, except that the application may provide 1
that buses purchased using funds awarded shall be 2
owned, operated, and maintained exclusively by the 3
1 or more contracting entities; or 4
(3) to a nonprofit school transportation associa- 5
tion representing private contracting entities, if the 6
association has notified and received approval from 7
the 1 or more school systems to be served by the 8
buses. 9
(d) AWARD DEADLINES.— 10
(1) IN GENERAL.—Subject to paragraph (2), 11
the Administrator shall award a grant made to a 12
qualified applicant for a fiscal year— 13
(A) in the case of the first fiscal year of 14
program implementation, not later than the 15
date that is 90 days after the application dead- 16
line established under subsection (b)(2); and 17
(B) in the case of each subsequent fiscal 18
year, not later than August 1 of the fiscal year. 19
(2) INSUFFICIENT NUMBER OF QUALIFIED 20
GRANT APPLICATIONS.—If the Administrator does 21
not receive a sufficient number of qualified grant ap- 22
plications to meet the requirements of subsection 23
(i)(1) for a fiscal year, the Administrator shall 24
award a grant made to a qualified applicant under 25
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subsection (i)(2) not later than September 30 of the 1
fiscal year. 2
(e) TYPES OF GRANTS.— 3
(1) IN GENERAL.—A grant under this section 4
shall be used for the replacement of school buses 5
manufactured before model year 1991 with alter- 6
native fuel school buses and ultra-low sulfur diesel 7
fuel school buses. 8
(2) NO ECONOMIC BENEFIT.—Other than the 9
receipt of the grant, a recipient of a grant under this 10
section may not receive any economic benefit in con- 11
nection with the receipt of the grant. 12
(3) PRIORITY OF GRANT APPLICATIONS.—The 13
Administrator shall give priority to applicants that 14
propose to replace school buses manufactured before 15
model year 1977. 16
(f) CONDITIONS OF GRANT.—A grant provided under 17
this section shall include the following conditions: 18
(1) SCHOOL BUS FLEET.—All buses acquired 19
with funds provided under the grant shall be oper- 20
ated as part of the school bus fleet for which the 21
grant was made for a minimum of 5 years. 22
(2) USE OF FUNDS.—Funds provided under the 23
grant may only be used— 24
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(A) to pay the cost, except as provided in 1
paragraph (3), of new alternative fuel school 2
buses or ultra-low sulfur diesel fuel school 3
buses, including State taxes and contract fees 4
associated with the acquisition of such buses; 5
and 6
(B) to provide— 7
(i) up to 20 percent of the price of the 8
alternative fuel school buses acquired, for 9
necessary alternative fuel infrastructure if 10
the infrastructure will only be available to 11
the grant recipient; and 12
(ii) up to 25 percent of the price of 13
the alternative fuel school buses acquired, 14
for necessary alternative fuel infrastructure 15
if the infrastructure will be available to the 16
grant recipient and to other bus fleets. 17
(3) GRANT RECIPIENT FUNDS.—The grant re- 18
cipient shall be required to provide at least— 19
(A) in the case of a grant recipient de- 20
scribed in paragraph (1) or (3) of subsection 21
(c), the lesser of— 22
(i) an amount equal to 15 percent of 23
the total cost of each bus received; or 24
(ii) $15,000 per bus; and 25
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(B) in the case of a grant recipient de- 1
scribed in subsection (c)(2), the lesser of— 2
(i) an amount equal to 20 percent of 3
the total cost of each bus received; or 4
(ii) $20,000 per bus. 5
(4) ULTRA-LOW SULFUR DIESEL FUEL.—In the 6
case of a grant recipient receiving a grant for ultra- 7
low sulfur diesel fuel school buses, the grant recipi- 8
ent shall be required to provide documentation to 9
the satisfaction of the Administrator that diesel fuel 10
containing sulfur at not more than 15 parts per mil- 11
lion is available for carrying out the purposes of the 12
grant, and a commitment by the applicant to use 13
such fuel in carrying out the purposes of the grant. 14
(5) TIMING.—All alternative fuel school buses, 15
ultra-low sulfur diesel fuel school buses, or alter- 16
native fuel infrastructure acquired under a grant 17
awarded under this section shall be purchased and 18
placed in service as soon as practicable. 19
(g) BUSES.— 20
(1) IN GENERAL.—Except as provided in para- 21
graph (2), funding under a grant made under this 22
section for the acquisition of new alternative fuel 23
school buses or ultra-low sulfur diesel fuel school 24
buses shall only be used to acquire school buses— 25
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(A) with a gross vehicle weight of greater 1
than 14,000 pounds; 2
(B) that are powered by a heavy duty en- 3
gine; 4
(C) in the case of alternative fuel school 5
buses manufactured in model years 2004 6
through 2006, that emit not more than 1.8 7
grams per brake horsepower-hour of non- 8
methane hydrocarbons and oxides of nitrogen 9
and .01 grams per brake horsepower-hour of 10
particulate matter; and 11
(D) in the case of ultra-low sulfur diesel 12
fuel school buses manufactured in model years 13
2004 through 2006, that emit not more than 14
2.5 grams per brake horsepower-hour of non- 15
methane hydrocarbons and oxides of nitrogen 16
and .01 grams per brake horsepower-hour of 17
particulate matter. 18
(2) LIMITATIONS.—A bus shall not be acquired 19
under this section that emits nonmethane hydro- 20
carbons, oxides of nitrogen, or particulate matter at 21
a rate greater than the best performing technology 22
of the same class of ultra-low sulfur diesel fuel 23
school buses commercially available at the time the 24
grant is made. 25
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(h) DEPLOYMENT AND DISTRIBUTION.—The Admin- 1
istrator shall— 2
(1) seek, to the maximum extent practicable, to 3
achieve nationwide deployment of alternative fuel 4
school buses and ultra-low sulfur diesel fuel school 5
buses through the program under this section; and 6
(2) ensure a broad geographic distribution of 7
grant awards, with a goal of no State receiving more 8
than 10 percent of the grant funding made available 9
under this section for a fiscal year. 10
(i) ALLOCATION OF FUNDS.— 11
(1) IN GENERAL.—Subject to paragraph (2), of 12
the amount of grant funding made available to carry 13
out this section for any fiscal year, the Adminis- 14
trator shall use— 15
(A) 70 percent for the acquisition of alter- 16
native fuel school buses or supporting infra- 17
structure; and 18
(B) 30 percent for the acquisition of ultra- 19
low sulfur diesel fuel school buses. 20
(2) INSUFFICIENT NUMBER OF QUALIFIED 21
GRANT APPLICATIONS.—After the first fiscal year in 22
which this program is in effect, if the Administrator 23
does not receive a sufficient number of qualified 24
grant applications to meet the requirements of sub- 25
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paragraph (A) or (B) of paragraph (1) for a fiscal 1
year, effective beginning on August 1 of the fiscal 2
year, the Administrator shall make the remaining 3
funds available to other qualified grant applicants 4
under this section. 5
(j) REDUCTION OF SCHOOL BUS IDLING.—Each 6
local educational agency (as defined in section 9101 of the 7
Elementary and Secondary Education Act of 1965 (20 8
U.S.C. 7801)) that receives Federal funds under the Ele- 9
mentary and Secondary Education Act of 1965 (20 U.S.C. 10
6301 et seq.) is encouraged to develop a policy, consistent 11
with the health, safety, and welfare of students and the 12
proper operation and maintenance of school buses, to re- 13
duce the incidence of unnecessary school bus idling at 14
schools when picking up and unloading students. 15
(k) ANNUAL REPORT.— 16
(1) IN GENERAL.—Not later than January 31 17
of each year, the Administrator shall transmit to 18
Congress a report evaluating implementation of the 19
programs under this section and section 743. 20
(2) COMPONENTS.—The reports shall include a 21
description of— 22
(A) the total number of grant applications 23
received; 24
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37
(B) the number and types of alternative 1
fuel school buses, ultra-low sulfur diesel fuel 2
school buses, and retrofitted buses requested in 3
grant applications; 4
(C) grants awarded and the criteria used 5
to select the grant recipients; 6
(D) certified engine emission levels of all 7
buses purchased or retrofitted under the pro- 8
grams under this section and section 743; 9
(E) an evaluation of the in-use emission 10
level of buses purchased or retrofitted under the 11
programs under this section and section 743; 12
and 13
(F) any other information the Adminis- 14
trator considers appropriate. 15
(l) AUTHORIZATION OF APPROPRIATIONS.—There 16
are authorized to be appropriated to the Administrator to 17
carry out this section, to remain available until 18
expended— 19
(1) $45,000,000 for fiscal year 2005; 20
(2) $65,000,000 for fiscal year 2006; 21
(3) $90,000,000 for fiscal year 2007; and 22
(4) such sums as are necessary for each of fis- 23
cal years 2008 and 2009. 24
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SEC. 743. DIESEL RETROFIT PROGRAM. 1
(a) ESTABLISHMENT.—The Administrator, in con- 2
sultation with the Secretary, shall establish a program for 3
awarding grants on a competitive basis to entities for the 4
installation of retrofit technologies for diesel school buses. 5
(b) ELIGIBLE RECIPIENTS.—A grant shall be award- 6
ed under this section only— 7
(1) to a local or State governmental entity re- 8
sponsible for providing school bus service to 1 or 9
more public school systems; 10
(2) to 1 or more contracting entities that pro- 11
vide school bus service to 1 or more public school 12
systems, if the grant application is submitted jointly 13
with the 1 or more school systems that the buses 14
will serve, except that the application may provide 15
that buses purchased using funds awarded shall be 16
owned, operated, and maintained exclusively by the 17
1 or more contracting entities; or 18
(3) to a nonprofit school transportation associa- 19
tion representing private contracting entities, if the 20
association has notified and received approval from 21
the 1 or more school systems to be served by the 22
buses. 23
(c) AWARDS.— 24
(1) IN GENERAL.—The Administrator shall 25
seek, to the maximum extent practicable, to ensure 26
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a broad geographic distribution of grants under this 1
section. 2
(2) PREFERENCES.—In making awards of 3
grants under this section, the Administrator shall 4
give preference to proposals that— 5
(A) will achieve the greatest reductions in 6
emissions of nonmethane hydrocarbons, oxides 7
of nitrogen, or particulate matter per proposal 8
or per bus; or 9
(B) involve the use of emissions control 10
retrofit technology on diesel school buses that 11
operate solely on ultra-low sulfur diesel fuel. 12
(d) CONDITIONS OF GRANT.—A grant shall be pro- 13
vided under this section on the conditions that— 14
(1) buses on which retrofit emissions-control 15
technology are to be demonstrated— 16
(A) will operate on ultra-low sulfur diesel 17
fuel where such fuel is reasonably available or 18
required for sale by State or local law or regula- 19
tion; 20
(B) were manufactured in model year 1991 21
or later; and 22
(C) will be used for the transportation of 23
school children to and from school for a min- 24
imum of 5 years; 25
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(2) grant funds will be used for the purchase of 1
emission control retrofit technology, including State 2
taxes and contract fees; and 3
(3) grant recipients will provide at least 15 per- 4
cent of the total cost of the retrofit, including the 5
purchase of emission control retrofit technology and 6
all necessary labor for installation of the retrofit. 7
(e) VERIFICATION.—Not later than 90 days after the 8
date of enactment of this Act, the Administrator shall 9
publish in the Federal Register procedures to verify— 10
(1) the retrofit emissions-control technology to 11
be demonstrated; 12
(2) that buses powered by ultra-low sulfur die- 13
sel fuel on which retrofit emissions-control tech- 14
nology are to be demonstrated will operate on diesel 15
fuel containing not more than 15 parts per million 16
of sulfur; and 17
(3) that grants are administered in accordance 18
with this section. 19
(f) AUTHORIZATION OF APPROPRIATIONS.—There 20
are authorized to be appropriated to the Administrator to 21
carry out this section, to remain available until 22
expended— 23
(1) $20,000,000 for fiscal year 2005; 24
(2) $35,000,000 for fiscal year 2006; 25
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(3) $45,000,000 for fiscal year 2007; and 1
(4) such sums as are necessary for each of fis- 2
cal years 2008 and 2009. 3
SEC. 744. FUEL CELL SCHOOL BUSES. 4
(a) ESTABLISHMENT.—The Secretary shall establish 5
a program for entering into cooperative agreements— 6
(1) with private sector fuel cell bus developers 7
for the development of fuel cell-powered school 8
buses; and 9
(2) subsequently, with not less than 2 units of 10
local government using natural gas-powered school 11
buses and such private sector fuel cell bus developers 12
to demonstrate the use of fuel cell-powered school 13
buses. 14
(b) COST SHARING.—The non-Federal contribution 15
for activities funded under this section shall be not less 16
than— 17
(1) 20 percent for fuel infrastructure develop- 18
ment activities; and 19
(2) 50 percent for demonstration activities and 20
for development activities not described in paragraph 21
(1). 22
(c) REPORTS TO CONGRESS.—Not later than 3 years 23
after the date of enactment of this Act, the Secretary shall 24
transmit to Congress a report that— 25
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(1) evaluates the process of converting natural 1
gas infrastructure to accommodate fuel cell-powered 2
school buses; and 3
(2) assesses the results of the development and 4
demonstration program under this section. 5
(d) AUTHORIZATION OF APPROPRIATIONS.—There 6
are authorized to be appropriated to the Secretary to carry 7
out this section $25,000,000 for the period of fiscal years 8
2004 through 2006. 9
Subtitle D—Miscellaneous 10
SEC. 751. RAILROAD EFFICIENCY. 11
(a) ESTABLISHMENT.—The Secretary of Energy 12
shall, in cooperation with the Secretary of Transportation 13
and the Administrator of the Environmental Protection 14
Agency, establish a cost-shared, public-private research 15
partnership involving the Federal Government, railroad 16
carriers, locomotive manufacturers and equipment sup- 17
pliers, and the Association of American Railroads, to de- 18
velop and demonstrate railroad locomotive technologies 19
that increase fuel economy, reduce emissions, and lower 20
costs of operation. 21
(b) AUTHORIZATION OF APPROPRIATIONS.—There 22
are authorized to be appropriated to the Secretary of En- 23
ergy to carry out this section— 24
(1) $25,000,000 for fiscal year 2005; 25
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43
(2) $35,000,000 for fiscal year 2006; and 1
(3) $50,000,000 for fiscal year 2007. 2
SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND 3
CREDITING. 4
(a) IN GENERAL.—Not later than 180 days after the 5
date of enactment of this Act, the Administrator of the 6
Environmental Protection Agency shall submit to Con- 7
gress a report on the experience of the Administrator with 8
the trading of mobile source emission reduction credits for 9
use by owners and operators of stationary source emission 10
sources to meet emission offset requirements within a non- 11
attainment area. 12
(b) CONTENTS.—The report shall describe— 13
(1) projects approved by the Administrator that 14
include the trading of mobile source emission reduc- 15
tion credits for use by stationary sources in com- 16
plying with offset requirements, including a descrip- 17
tion of— 18
(A) project and stationary sources location; 19
(B) volumes of emissions offset and trad- 20
ed; 21
(C) the sources of mobile emission reduc- 22
tion credits; and 23
(D) if available, the cost of the credits; 24
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(2) the significant issues identified by the Ad- 1
ministrator in consideration and approval of trading 2
in the projects; 3
(3) the requirements for monitoring and assess- 4
ing the air quality benefits of any approved project; 5
(4) the statutory authority on which the Admin- 6
istrator has based approval of the projects; 7
(5) an evaluation of how the resolution of issues 8
in approved projects could be used in other projects; 9
and 10
(6) any other issues that the Administrator con- 11
siders relevant to the trading and generation of mo- 12
bile source emission reduction credits for use by sta- 13
tionary sources or for other purposes. 14
SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS. 15
(a) IN GENERAL.—Not later than 60 days after the 16
date of enactment of this Act, the Administrator of the 17
Federal Aviation Administration and the Administrator of 18
the Environmental Protection Agency shall jointly initiate 19
a study to identify— 20
(1) the impact of aircraft emissions on air qual- 21
ity in nonattainment areas; and 22
(2) ways to promote fuel conservation measures 23
for aviation to— 24
(A) enhance fuel efficiency; and 25
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(B) reduce emissions. 1
(b) FOCUS.—The study under subsection (a) shall 2
focus on how air traffic management inefficiencies, such 3
as aircraft idling at airports, result in unnecessary fuel 4
burn and air emissions. 5
(c) REPORT.—Not later than 1 year after the date 6
of the initiation of the study under subsection (a), the Ad- 7
ministrator of the Federal Aviation Administration and 8
the Administrator of the Environmental Protection Agen- 9
cy shall jointly submit to the Committee on Energy and 10
Commerce and the Committee on Transportation and In- 11
frastructure of the House of Representatives and the Com- 12
mittee on Environment and Public Works and the Com- 13
mittee on Commerce, Science, and Transportation of the 14
Senate a report that— 15
(1) describes the results of the study; and 16
(2) includes any recommendations on ways in 17
which unnecessary fuel use and emissions affecting 18
air quality may be reduced— 19
(A) without adversely affecting safety and 20
security and increasing individual aircraft noise; 21
and 22
(B) while taking into account all aircraft 23
emissions and the impact of the emissions on 24
human health. 25
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SEC. 754. DIESEL FUELED VEHICLES. 1
(a) DEFINITION OF TIER 2 EMISSION STANDARDS.— 2
In this section, the term ‘‘tier 2 emission standards’’ 3
means the motor vehicle emission standards that apply to 4
passenger cars, light trucks, and larger passenger vehicles 5
manufactured after the 2003 model year, as issued on 6
February 10, 2000, by the Administrator of the Environ- 7
mental Protection Agency under sections 202 and 211 of 8
the Clean Air Act (42 U.S.C. 7521, 7545). 9
(b) DIESEL COMBUSTION AND AFTER-TREATMENT 10
TECHNOLOGIES.—The Secretary of Energy shall accel- 11
erate efforts to improve diesel combustion and after-treat- 12
ment technologies for use in diesel fueled motor vehicles. 13
(c) GOALS.—The Secretary shall carry out subsection 14
(b) with a view toward achieving the following goals: 15
(1) Developing and demonstrating diesel tech- 16
nologies that, not later than 2010, meet the fol- 17
lowing standards: 18
(A) Tier 2 emission standards. 19
(B) The heavy-duty emissions standards of 20
2007 that are applicable to heavy-duty vehicles 21
under regulations issued by the Administrator 22
of the Environmental Protection Agency as of 23
the date of enactment of this Act. 24
(2) Developing the next generation of low-emis- 25
sion, high efficiency diesel engine technologies, in- 26
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cluding homogeneous charge compression ignition 1
technology. 2
SEC. 755. CONSERVE BY BICYCLING PROGRAM. 3
(a) DEFINITIONS.—In this section: 4
(1) PROGRAM.—The term ‘‘program’’ means 5
the Conserve by Bicycling Program established by 6
subsection (b). 7
(2) SECRETARY.—The term ‘‘Secretary’’ means 8
the Secretary of Transportation. 9
(b) ESTABLISHMENT.—There is established within 10
the Department of Transportation a program to be known 11
as the ‘‘Conserve by Bicycling Program’’. 12
(c) PROJECTS.— 13
(1) IN GENERAL.—In carrying out the program, 14
the Secretary shall establish not more than 10 pilot 15
projects that are— 16
(A) dispersed geographically throughout 17
the United States; and 18
(B) designed to conserve energy resources 19
by encouraging the use of bicycles in place of 20
motor vehicles. 21
(2) REQUIREMENTS.—A pilot project described 22
in paragraph (1) shall— 23
(A) use education and marketing to con- 24
vert motor vehicle trips to bicycle trips; 25
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(B) document project results and energy 1
savings (in estimated units of energy con- 2
served); 3
(C) facilitate partnerships among inter- 4
ested parties in at least 2 of the fields of— 5
(i) transportation; 6
(ii) law enforcement; 7
(iii) education; 8
(iv) public health; 9
(v) environment; and 10
(vi) energy; 11
(D) maximize bicycle facility investments; 12
(E) demonstrate methods that may be 13
used in other regions of the United States; and 14
(F) facilitate the continuation of ongoing 15
programs that are sustained by local resources. 16
(3) COST SHARING.—At least 20 percent of the 17
cost of each pilot project described in paragraph (1) 18
shall be provided from State or local sources. 19
(d) ENERGY AND BICYCLING RESEARCH STUDY.— 20
(1) IN GENERAL.—Not later than 2 years after 21
the date of enactment of this Act, the Secretary 22
shall enter into a contract with the National Acad- 23
emy of Sciences for, and the National Academy of 24
Sciences shall conduct and submit to Congress a re- 25
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port on, a study on the feasibility of converting 1
motor vehicle trips to bicycle trips. 2
(2) COMPONENTS.—The study shall— 3
(A) document the results or progress of 4
the pilot projects under subsection (c); 5
(B) determine the type and duration of 6
motor vehicle trips that people in the United 7
States may feasibly make by bicycle, taking into 8
consideration factors such as— 9
(i) weather; 10
(ii) land use and traffic patterns; 11
(iii) the carrying capacity of bicycles; 12
and 13
(iv) bicycle infrastructure; 14
(C) determine any energy savings that 15
would result from the conversion of motor vehi- 16
cle trips to bicycle trips; 17
(D) include a cost-benefit analysis of bicy- 18
cle infrastructure investments; and 19
(E) include a description of any factors 20
that would encourage more motor vehicle trips 21
to be replaced with bicycle trips. 22
(e) AUTHORIZATION OF APPROPRIATIONS.—There 23
are authorized to be appropriated to the Secretary to carry 24
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out this section $6,200,000, to remain available until ex- 1
pended, of which— 2
(1) $5,150,000 shall be used to carry out pilot 3
projects described in subsection (c); 4
(2) $300,000 shall be used by the Secretary to 5
coordinate, publicize, and disseminate the results of 6
the program; and 7
(3) $750,000 shall be used to carry out sub- 8
section (d). 9
SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY 10
VEHICLES. 11
(a) DEFINITIONS.—In this section: 12
(1) ADMINISTRATOR.—The term ‘‘Adminis- 13
trator’’ means the Administrator of the Environ- 14
mental Protection Agency. 15
(2) ADVANCED TRUCK STOP ELECTRIFICATION 16
SYSTEM.—The term ‘‘advanced truck stop elec- 17
trification system’’ means a stationary system that 18
delivers heat, air conditioning, electricity, and com- 19
munications, and is capable of providing verifiable 20
and auditable evidence of use of those services, to a 21
heavy-duty vehicle and any occupants of the heavy- 22
duty vehicle without relying on components mounted 23
onboard the heavy-duty vehicle for delivery of those 24
services. 25
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(3) AUXILIARY POWER UNIT.—The term ‘‘auxil- 1
iary power unit’’ means an integrated system that— 2
(A) provides heat, air conditioning, engine 3
warming, and electricity to the factory-installed 4
components on a heavy-duty vehicle as if the 5
main drive engine of the heavy-duty vehicle 6
were running; and 7
(B) is certified by the Administrator under 8
part 89 of title 40, Code of Federal Regulations 9
(or any successor regulation), as meeting appli- 10
cable emission standards. 11
(4) HEAVY-DUTY VEHICLE.—The term ‘‘heavy- 12
duty vehicle’’ means a vehicle that— 13
(A) has a gross vehicle weight rating great- 14
er than 12,500 pounds; and 15
(B) is powered by a diesel engine. 16
(5) IDLE REDUCTION TECHNOLOGY.—The term 17
‘‘idle reduction technology’’ means an advanced 18
truck stop electrification system, auxiliary power 19
unit, or other device or system of devices that— 20
(A) is used to reduce long-duration idling 21
of a heavy-duty vehicle; and 22
(B) allows for the main drive engine or 23
auxiliary refrigeration engine of a heavy-duty 24
vehicle to be shut down. 25
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(6) LONG-DURATION IDLING.— 1
(A) IN GENERAL.—The term ‘‘long-dura- 2
tion idling’’ means the operation of a main 3
drive engine or auxiliary refrigeration engine of 4
a heavy-duty vehicle, for a period greater than 5
15 consecutive minutes, at a time at which the 6
main drive engine is not engaged in gear. 7
(B) EXCLUSIONS.—The term ‘‘long-dura- 8
tion idling’’ does not include the operation of a 9
main drive engine or auxiliary refrigeration en- 10
gine of a heavy-duty vehicle during a routine 11
stoppage associated with traffic movement or 12
congestion. 13
(b) IDLE REDUCTION TECHNOLOGY BENEFITS, PRO- 14
GRAMS, AND STUDIES.— 15
(1) IN GENERAL.—Not later than 90 days after 16
the date of enactment of this Act, the Administrator 17
shall— 18
(A)(i) commence a review of the mobile 19
source air emission models of the Environ- 20
mental Protection Agency used under the Clean 21
Air Act (42 U.S.C. 7401 et seq.) to determine 22
whether the models accurately reflect the emis- 23
sions resulting from long-duration idling of 24
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heavy-duty vehicles and other vehicles and en- 1
gines; and 2
(ii) update those models as the Adminis- 3
trator determines to be appropriate; and 4
(B)(i) commence a review of the emission 5
reductions achieved by the use of idle reduction 6
technology; and 7
(ii) complete such revisions of the regula- 8
tions and guidance of the Environmental Pro- 9
tection Agency as the Administrator determines 10
to be appropriate. 11
(2) DEADLINE FOR COMPLETION.—Not later 12
than 180 days after the date of enactment of this 13
Act, the Administrator shall— 14
(A) complete the reviews under subpara- 15
graphs (A)(i) and (B)(i) of paragraph (1); and 16
(B) prepare and make publicly available 1 17
or more reports on the results of the reviews. 18
(3) DISCRETIONARY INCLUSIONS.—The reviews 19
under subparagraphs (A)(i) and (B)(i) of paragraph 20
(1) and the reports under paragraph (2)(B) may ad- 21
dress the potential fuel savings resulting from use of 22
idle reduction technology. 23
(4) IDLE REDUCTION DEPLOYMENT PRO- 24
GRAM.— 25
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(A) ESTABLISHMENT.— 1
(i) IN GENERAL.—Not later than 90 2
days after the date of enactment of this 3
Act, the Administrator, in consultation 4
with the Secretary of Transportation, shall 5
establish a program to support deployment 6
of idle reduction technology. 7
(ii) PRIORITY.—The Administrator 8
shall give priority to the deployment of idle 9
reduction technology based on beneficial ef- 10
fects on air quality and ability to lessen 11
the emission of criteria air pollutants. 12
(B) FUNDING.— 13
(i) AUTHORIZATION OF APPROPRIA- 14
TIONS.—There are authorized to be appro- 15
priated to the Administrator to carry out 16
subparagraph (A) $19,500,000 for fiscal 17
year 2004, $30,000,000 for fiscal year 18
2005, and $45,000,000 for fiscal year 19
2006. 20
(ii) COST SHARING.—Subject to clause 21
(iii), the Administrator shall require at 22
least 50 percent of the costs directly and 23
specifically related to any project under 24
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this section to be provided from non-Fed- 1
eral sources. 2
(iii) NECESSARY AND APPROPRIATE 3
REDUCTIONS.—The Administrator may re- 4
duce the non-Federal requirement under 5
clause (ii) if the Administrator determines 6
that the reduction is necessary and appro- 7
priate to meet the objectives of this sec- 8
tion. 9
(5) IDLING LOCATION STUDY.— 10
(A) IN GENERAL.—Not later than 90 days 11
after the date of enactment of this Act, the Ad- 12
ministrator, in consultation with the Secretary 13
of Transportation, shall commence a study to 14
analyze all locations at which heavy-duty vehi- 15
cles stop for long-duration idling, including— 16
(i) truck stops; 17
(ii) rest areas; 18
(iii) border crossings; 19
(iv) ports; 20
(v) transfer facilities; and 21
(vi) private terminals. 22
(B) DEADLINE FOR COMPLETION.—Not 23
later than 180 days after the date of enactment 24
of this Act, the Administrator shall— 25
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(i) complete the study under subpara- 1
graph (A); and 2
(ii) prepare and make publicly avail- 3
able 1 or more reports of the results of the 4
study. 5
(c) VEHICLE WEIGHT EXEMPTION.—Section 127(a) 6
of title 23, United States Code, is amended— 7
(1) by designating the first through eleventh 8
sentences as paragraphs (1) through (11), respec- 9
tively; and 10
(2) by adding at the end the following: 11
‘‘(12) HEAVY DUTY VEHICLES.— 12
‘‘(A) IN GENERAL.—Subject to subpara- 13
graphs (B) and (C), in order to promote reduc- 14
tion of fuel use and emissions because of engine 15
idling, the maximum gross vehicle weight limit 16
and the axle weight limit for any heavy-duty ve- 17
hicle equipped with an idle reduction technology 18
shall be increased by a quantity necessary to 19
compensate for the additional weight of the idle 20
reduction system. 21
‘‘(B) MAXIMUM WEIGHT INCREASE.—The 22
weight increase under subparagraph (A) shall 23
be not greater than 250 pounds. 24
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‘‘(C) PROOF.—On request by a regulatory 1
agency or law enforcement agency, the vehicle 2
operator shall provide proof (through dem- 3
onstration or certification) that— 4
‘‘(i) the idle reduction technology is 5
fully functional at all times; and 6
‘‘(ii) the 250-pound gross weight in- 7
crease is not used for any purpose other 8
than the use of idle reduction technology 9
described in subparagraph (A).’’. 10
SEC. 757. BIODIESEL ENGINE TESTING PROGRAM. 11
(a) IN GENERAL.—Not later that 180 days after the 12
date of enactment of this Act, the Secretary shall initiate 13
a partnership with diesel engine, diesel fuel injection sys- 14
tem, and diesel vehicle manufacturers and diesel and bio- 15
diesel fuel providers, to include biodiesel testing in ad- 16
vanced diesel engine and fuel system technology. 17
(b) SCOPE.—The program shall provide for testing 18
to determine the impact of biodiesel from different sources 19
on current and future emission control technologies, with 20
emphasis on— 21
(1) the impact of biodiesel on emissions war- 22
ranty, in-use liability, and antitampering provisions; 23
(2) the impact of long-term use of biodiesel on 24
engine operations; 25
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(3) the options for optimizing these technologies 1
for both emissions and performance when switching 2
between biodiesel and diesel fuel; and 3
(4) the impact of using biodiesel in these fuel- 4
ing systems and engines when used as a blend with 5
2006 Environmental Protection Agency-mandated 6
diesel fuel containing a maximum of 15-parts-per- 7
million sulfur content. 8
(c) REPORT.—Not later than 2 years after the date 9
of enactment of this Act, the Secretary shall provide an 10
interim report to Congress on the findings of the program, 11
including a comprehensive analysis of impacts from bio- 12
diesel on engine operation for both existing and expected 13
future diesel technologies, and recommendations for en- 14
suring optimal emissions reductions and engine perform- 15
ance with biodiesel. 16
(d) AUTHORIZATION OF APPROPRIATIONS.—There 17
are authorized to be appropriated $5,000,000 for each of 18
fiscal years 2004 through 2008 to carry out this section. 19
(e) DEFINITION.—For purposes of this section, the 20
term ‘‘biodiesel’’ means a diesel fuel substitute produced 21
from nonpetroleum renewable resources that meets the 22
registration requirements for fuels and fuel additives es- 23
tablished by the Environmental Protection Agency under 24
section 211 of the Clean Air Act (42 U.S.C. 7545) and 25
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that meets the American Society for Testing and Materials 1
D6751-02a Standard Specification for Biodiesel Fuel 2
(B100) Blend Stock for Distillate Fuels. 3
SEC. 758. HIGH OCCUPANCY VEHICLE EXCEPTION. 4
Notwithstanding section 102(a) of title 23, United 5
States Code, a State may permit a vehicle with fewer than 6
2 occupants to operate in high occupancy vehicle lanes if 7
the vehicle— 8
(1) is a dedicated vehicle (as defined in section 9
301 of the Energy Policy Act of 1992 (42 U.S. 10
13211)); or 11
(2) is a hybrid vehicle (as defined by the State 12
for the purpose of this section). 13
Subtitle E—Automobile Efficiency 14
SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IM- 15
PLEMENTATION AND ENFORCEMENT OF 16
FUEL ECONOMY STANDARDS. 17
In addition to any other funds authorized by law, 18
there are authorized to be appropriated to the National 19
Highway Traffic Safety Administration to carry out its ob- 20
ligations with respect to average fuel economy standards 21
$2,000,000 for each of fiscal years 2004 through 2008. 22
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SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON 1
MAXIMUM FEASIBLE AVERAGE FUEL ECON- 2
OMY. 3
Section 32902(f) of title 49, United States Code, is 4
amended to read as follows: 5
‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM 6
FEASIBLE AVERAGE FUEL ECONOMY.—When deciding 7
maximum feasible average fuel economy under this sec- 8
tion, the Secretary of Transportation shall consider the 9
following matters: 10
‘‘(1) Technological feasibility. 11
‘‘(2) Economic practicability. 12
‘‘(3) The effect of other motor vehicle standards 13
of the Government on fuel economy. 14
‘‘(4) The need of the United States to conserve 15
energy. 16
‘‘(5) The effects of fuel economy standards on 17
passenger automobiles, nonpassenger automobiles, 18
and occupant safety. 19
‘‘(6) The effects of compliance with average fuel 20
economy standards on levels of automobile industry 21
employment in the United States.’’. 22
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SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY IN- 1
CREASE FOR ALTERNATIVE FUELED VEHI- 2
CLES. 3
(a) MANUFACTURING INCENTIVES.—Section 32905 4
of title 49, United States Code, is amended— 5
(1) in each of subsections (b) and (d), by strik- 6
ing ‘‘1993–2004’’ and inserting ‘‘1993–2008’’; 7
(2) in subsection (f), by striking ‘‘2001’’ and 8
inserting ‘‘2005’’; and 9
(3) in subsection (f)(1), by striking ‘‘2004’’ and 10
inserting ‘‘2008’’. 11
(b) MAXIMUM FUEL ECONOMY INCREASE.—Sub- 12
section (a)(1) of section 32906 of title 49, United States 13
Code, is amended— 14
(1) in subparagraph (A), by striking ‘‘the model 15
years 1993–2004’’ and inserting ‘‘model years 16
1993–2008’’; and 17
(2) in subparagraph (B), by striking ‘‘the model 18
years 2005–2008’’ and inserting ‘‘model years 19
2009–2012’’. 20
SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUC- 21
ING USE OF FUEL FOR AUTOMOBILES. 22
(a) IN GENERAL.—Not later than 30 days after the 23
date of the enactment of this Act, the Administrator of 24
the National Highway Traffic Safety Administration shall 25
initiate a study of the feasibility and effects of reducing 26
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by model year 2012, by a significant percentage, the 1
amount of fuel consumed by automobiles. 2
(b) SUBJECTS OF STUDY.—The study under this sec- 3
tion shall include— 4
(1) examination of, and recommendation of al- 5
ternatives to, the policy under current Federal law 6
of establishing average fuel economy standards for 7
automobiles and requiring each automobile manufac- 8
turer to comply with average fuel economy standards 9
that apply to the automobiles it manufactures; 10
(2) examination of how automobile manufactur- 11
ers could contribute toward achieving the reduction 12
referred to in subsection (a); 13
(3) examination of the potential of fuel cell 14
technology in motor vehicles in order to determine 15
the extent to which such technology may contribute 16
to achieving the reduction referred to in subsection 17
(a); and 18
(4) examination of the effects of the reduction 19
referred to in subsection (a) on— 20
(A) gasoline supplies; 21
(B) the automobile industry, including 22
sales of automobiles manufactured in the 23
United States; 24
(C) motor vehicle safety; and 25
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(D) air quality. 1
(c) REPORT.—The Administrator shall submit to 2
Congress a report on the findings, conclusion, and rec- 3
ommendations of the study under this section by not later 4
than 1 year after the date of the enactment of this Act. 5
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November 14, 2003 (11:00 AM)

Title VIII - Hydrogen

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE VIII—HYDROGEN 1
SEC. 801. DEFINITIONS. 2
In this title: 3
(1) ADVISORY COMMITTEE.—The term ‘‘Advi- 4
sory Committee’’ means the Hydrogen Technical and 5
Fuel Cell Advisory Committee established under sec- 6
tion 805. 7
(2) DEPARTMENT.—The term ‘‘Department’’ 8
means the Department of Energy. 9
(3) FUEL CELL.—The term ‘‘fuel cell’’ means a 10
device that directly converts the chemical energy of 11
a fuel and an oxidant into electricity by an electro- 12
chemical process taking place at separate electrodes 13
in the device. 14
(4) INFRASTRUCTURE.—The term ‘‘infrastruc- 15
ture’’ means the equipment, systems, or facilities 16
used to produce, distribute, deliver, or store hydro- 17
gen. 18
(5) LIGHT DUTY VEHICLE.—The term ‘‘light 19
duty vehicle’’ means a car or truck classified by the 20
Department of Transportation as a Class I or IIA 21
vehicle. 22
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(6) SECRETARY.—The term ‘‘Secretary’’ means 1
the Secretary of Energy. 2
SEC. 802. PLAN. 3
Not later than 6 months after the date of enactment 4
of this Act, the Secretary shall transmit to Congress a 5
coordinated plan for the programs described in this title 6
and any other programs of the Department that are di- 7
rectly related to fuel cells or hydrogen. The plan shall de- 8
scribe, at a minimum— 9
(1) the agenda for the next 5 years for the pro- 10
grams authorized under this title, including the 11
agenda for each activity enumerated in section 12
803(a); 13
(2) the types of entities that will carry out the 14
activities under this title and what role each entity 15
is expected to play; 16
(3) the milestones that will be used to evaluate 17
the programs for the next 5 years; 18
(4) the most significant technical and nontech- 19
nical hurdles that stand in the way of achieving the 20
goals described in section 803(b), and how the pro- 21
grams will address those hurdles; and 22
(5) the policy assumptions that are implicit in 23
the plan, including any assumptions that would af- 24
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3
fect the sources of hydrogen or the marketability of 1
hydrogen-related products. 2
SEC. 803. PROGRAMS. 3
(a) ACTIVITIES.—The Secretary, in partnership with 4
the private sector, shall conduct programs to address— 5
(1) production of hydrogen from diverse energy 6
sources, including— 7
(A) fossil fuels, which may include carbon 8
capture and sequestration; 9
(B) hydrogen-carrier fuels (including eth- 10
anol and methanol); 11
(C) renewable energy resources, including 12
biomass; and 13
(D) nuclear energy; 14
(2) use of hydrogen for commercial, industrial, 15
and residential electric power generation; 16
(3) safe delivery of hydrogen or hydrogen-car- 17
rier fuels, including— 18
(A) transmission by pipeline and other dis- 19
tribution methods; and 20
(B) convenient and economic refueling of 21
vehicles either at central refueling stations or 22
through distributed on-site generation; 23
(4) advanced vehicle technologies, including— 24
(A) engine and emission control systems; 25
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4
(B) energy storage, electric propulsion, and 1
hybrid systems; 2
(C) automotive materials; and 3
(D) other advanced vehicle technologies; 4
(5) storage of hydrogen or hydrogen-carrier 5
fuels, including development of materials for safe 6
and economic storage in gaseous, liquid, or solid 7
form at refueling facilities and onboard vehicles; 8
(6) development of safe, durable, affordable, 9
and efficient fuel cells, including fuel-flexible fuel cell 10
power systems, improved manufacturing processes, 11
high-temperature membranes, cost-effective fuel 12
processing for natural gas, fuel cell stack and system 13
reliability, low temperature operation, and cold start 14
capability; 15
(7) development, after consultation with the pri- 16
vate sector, of necessary codes and standards (in- 17
cluding international codes and standards and vol- 18
untary consensus standards adopted in accordance 19
with OMB Circular A–119) and safety practices for 20
the production, distribution, storage, and use of hy- 21
drogen, hydrogen-carrier fuels, and related products; 22
and 23
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(8) a public education program to develop im- 1
proved knowledge and acceptability of hydrogen- 2
based systems. 3
(b) PROGRAM GOALS.— 4
(1) VEHICLES.—For vehicles, the goals of the 5
program are— 6
(A) to enable a commitment by auto- 7
makers no later than year 2015 to offer safe, 8
affordable, and technically viable hydrogen fuel 9
cell vehicles in the mass consumer market; and 10
(B) to enable production, delivery, and ac- 11
ceptance by consumers of model year 2020 hy- 12
drogen fuel cell and other hydrogen-powered ve- 13
hicles that will have— 14
(i) a range of at least 300 miles; 15
(ii) improved performance and ease of 16
driving; 17
(iii) safety and performance com- 18
parable to vehicle technologies in the mar- 19
ket; and 20
(iv) when compared to light duty vehi- 21
cles in model year 2003— 22
(I) fuel economy that is substan- 23
tially higher; 24
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(II) substantially lower emissions 1
of air pollutants; and 2
(III) equivalent or improved vehi- 3
cle fuel system crash integrity and oc- 4
cupant protection. 5
(2) HYDROGEN ENERGY AND ENERGY INFRA- 6
STRUCTURE.—For hydrogen energy and energy in- 7
frastructure, the goals of the program are to enable 8
a commitment not later than 2015 that will lead to 9
infrastructure by 2020 that will provide— 10
(A) safe and convenient refueling; 11
(B) improved overall efficiency; 12
(C) widespread availability of hydrogen 13
from domestic energy sources through— 14
(i) production, with consideration of 15
emissions levels; 16
(ii) delivery, including transmission by 17
pipeline and other distribution methods for 18
hydrogen; and 19
(iii) storage, including storage in sur- 20
face transportation vehicles; 21
(D) hydrogen for fuel cells, internal com- 22
bustion engines, and other energy conversion 23
devices for portable, stationary, and transpor- 24
tation applications; and 25
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(E) other technologies consistent with the 1
Department’s plan. 2
(3) FUEL CELLS.—The goals for fuel cells and 3
their portable, stationary, and transportation appli- 4
cations are to enable— 5
(A) safe, economical, and environmentally 6
sound hydrogen fuel cells; 7
(B) fuel cells for light duty and other vehi- 8
cles; and 9
(C) other technologies consistent with the 10
Department’s plan. 11
(c) DEMONSTRATION.—In carrying out the programs 12
under this section, the Secretary shall fund a limited num- 13
ber of demonstration projects, consistent with a deter- 14
mination of the maturity, cost-effectiveness, and environ- 15
mental impacts of technologies supporting each project. In 16
selecting projects under this subsection, the Secretary 17
shall, to the extent practicable and in the public interest, 18
select projects that— 19
(1) involve using hydrogen and related products 20
at existing facilities or installations, such as existing 21
office buildings, military bases, vehicle fleet centers, 22
transit bus authorities, or units of the National Park 23
System; 24
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(2) depend on reliable power from hydrogen to 1
carry out essential activities; 2
(3) lead to the replication of hydrogen tech- 3
nologies and draw such technologies into the market- 4
place; 5
(4) include vehicle, portable, and stationary 6
demonstrations of fuel cell and hydrogen-based en- 7
ergy technologies; 8
(5) address the interdependency of demand for 9
hydrogen fuel cell applications and hydrogen fuel in- 10
frastructure; 11
(6) raise awareness of hydrogen technology 12
among the public; 13
(7) facilitate identification of an optimum tech- 14
nology among competing alternatives; 15
(8) address distributed generation using renew- 16
able sources; and 17
(9) address applications specific to rural or re- 18
mote locations, including isolated villages and is- 19
lands, the National Park System, and tribal entities. 20
The Secretary shall give preference to projects which ad- 21
dress multiple elements contained in paragraphs (1) 22
through (9). 23
(d) DEPLOYMENT.—In carrying out the programs 24
under this section, the Secretary shall, in partnership with 25
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the private sector, conduct activities to facilitate the de- 1
ployment of hydrogen energy and energy infrastructure, 2
fuel cells, and advanced vehicle technologies. 3
(e) FUNDING.— 4
(1) IN GENERAL.—The Secretary shall carry 5
out the programs under this section using a competi- 6
tive, merit-based review process and consistent with 7
the generally applicable Federal laws and regulations 8
governing awards of financial assistance, contracts, 9
or other agreements. 10
(2) RESEARCH CENTERS.—Activities under this 11
section may be carried out by funding nationally rec- 12
ognized university-based or Federal laboratory re- 13
search centers. 14
(f) COST SHARING.— 15
(1) RESEARCH AND DEVELOPMENT.—Except as 16
otherwise provided in this title, for research and de- 17
velopment programs carried out under this title the 18
Secretary shall require a commitment from non-Fed- 19
eral sources of at least 20 percent of the cost of the 20
project. The Secretary may reduce or eliminate the 21
non-Federal requirement under this paragraph if the 22
Secretary determines that the research and develop- 23
ment is of a basic or fundamental nature or involves 24
technical analyses or educational activities. 25
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10
(2) DEMONSTRATION AND COMMERCIAL APPLI- 1
CATION.—Except as otherwise provided in this title, 2
the Secretary shall require at least 50 percent of the 3
costs directly and specifically related to any dem- 4
onstration or commercial application project under 5
this title to be provided from non-Federal sources. 6
The Secretary may reduce the non-Federal require- 7
ment under this paragraph if the Secretary deter- 8
mines that the reduction is necessary and appro- 9
priate considering the technological risks involved in 10
the project and is necessary to meet the objectives 11
of this title. 12
(3) CALCULATION OF AMOUNT.—In calculating 13
the amount of the non-Federal commitment under 14
paragraph (1) or (2), the Secretary may include per- 15
sonnel, services, equipment, and other resources. 16
(4) SIZE OF NON-FEDERAL SHARE.—The Sec- 17
retary may consider the size of the non-Federal 18
share in selecting projects. 19
(g) DISCLOSURE.—Section 623 of the Energy Policy 20
Act of 1992 (42 U.S.C. 13293) relating to the protection 21
of information shall apply to projects carried out through 22
grants, cooperative agreements, or contracts under this 23
title. 24
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SEC. 804. INTERAGENCY TASK FORCE. 1
(a) ESTABLISHMENT.—Not later than 120 days after 2
the date of enactment of this Act, the President shall es- 3
tablish an interagency task force chaired by the Secretary 4
with representatives from each of the following: 5
(1) The Office of Science and Technology Pol- 6
icy within the Executive Office of the President. 7
(2) The Department of Transportation. 8
(3) The Department of Defense. 9
(4) The Department of Commerce (including 10
the National Institute of Standards and Tech- 11
nology). 12
(5) The Department of State. 13
(6) The Environmental Protection Agency. 14
(7) The National Aeronautics and Space Ad- 15
ministration. 16
(8) Other Federal agencies as the Secretary de- 17
termines appropriate. 18
(b) DUTIES.— 19
(1) PLANNING.—The interagency task force 20
shall work toward— 21
(A) a safe, economical, and environ- 22
mentally sound fuel infrastructure for hydrogen 23
and hydrogen-carrier fuels, including an infra- 24
structure that supports buses and other fleet 25
transportation; 26
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(B) fuel cells in government and other ap- 1
plications, including portable, stationary, and 2
transportation applications; 3
(C) distributed power generation, including 4
the generation of combined heat, power, and 5
clean fuels including hydrogen; 6
(D) uniform hydrogen codes, standards, 7
and safety protocols; and 8
(E) vehicle hydrogen fuel system integrity 9
safety performance. 10
(2) ACTIVITIES.—The interagency task force 11
may organize workshops and conferences, may issue 12
publications, and may create databases to carry out 13
its duties. The interagency task force shall— 14
(A) foster the exchange of generic, non- 15
proprietary information and technology among 16
industry, academia, and government; 17
(B) develop and maintain an inventory and 18
assessment of hydrogen, fuel cells, and other 19
advanced technologies, including the commercial 20
capability of each technology for the economic 21
and environmentally safe production, distribu- 22
tion, delivery, storage, and use of hydrogen; 23
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(C) integrate technical and other informa- 1
tion made available as a result of the programs 2
and activities under this title; 3
(D) promote the marketplace introduction 4
of infrastructure for hydrogen fuel vehicles; and 5
(E) conduct an education program to pro- 6
vide hydrogen and fuel cell information to po- 7
tential end-users. 8
(c) AGENCY COOPERATION.—The heads of all agen- 9
cies, including those whose agencies are not represented 10
on the interagency task force, shall cooperate with and 11
furnish information to the interagency task force, the Ad- 12
visory Committee, and the Department. 13
SEC. 805. ADVISORY COMMITTEE. 14
(a) ESTABLISHMENT.—The Hydrogen Technical and 15
Fuel Cell Advisory Committee is established to advise the 16
Secretary on the programs and activities under this title. 17
(b) MEMBERSHIP.— 18
(1) MEMBERS.—The Advisory Committee shall 19
be comprised of not fewer than 12 nor more than 25 20
members. The members shall be appointed by the 21
Secretary to represent domestic industry, academia, 22
professional societies, government agencies, Federal 23
laboratories, previous advisory panels, and financial, 24
environmental, and other appropriate organizations 25
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based on the Department’s assessment of the tech- 1
nical and other qualifications of committee members 2
and the needs of the Advisory Committee. 3
(2) TERMS.—The term of a member of the Ad- 4
visory Committee shall not be more than 3 years. 5
The Secretary may appoint members of the Advisory 6
Committee in a manner that allows the terms of the 7
members serving at any time to expire at spaced in- 8
tervals so as to ensure continuity in the functioning 9
of the Advisory Committee. A member of the Advi- 10
sory Committee whose term is expiring may be re- 11
appointed. 12
(3) CHAIRPERSON.—The Advisory Committee 13
shall have a chairperson, who is elected by the mem- 14
bers from among their number. 15
(c) REVIEW.—The Advisory Committee shall review 16
and make recommendations to the Secretary on— 17
(1) the implementation of programs and activi- 18
ties under this title; 19
(2) the safety, economical, and environmental 20
consequences of technologies for the production, dis- 21
tribution, delivery, storage, or use of hydrogen en- 22
ergy and fuel cells; and 23
(3) the plan under section 802. 24
(d) RESPONSE.— 25
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(1) CONSIDERATION OF RECOMMENDATIONS.— 1
The Secretary shall consider, but need not adopt, 2
any recommendations of the Advisory Committee 3
under subsection (c). 4
(2) BIENNIAL REPORT.—The Secretary shall trans- 5
mit a biennial report to Congress describing any rec- 6
ommendations made by the Advisory Committee since the 7
previous report. The report shall include a description of 8
how the Secretary has implemented or plans to implement 9
the recommendations, or an explanation of the reasons 10
that a recommendation will not be implemented. The re- 11
port shall be transmitted along with the President’s budg- 12
et proposal. 13
(e) SUPPORT.—The Secretary shall provide resources 14
necessary in the judgment of the Secretary for the Advi- 15
sory Committee to carry out its responsibilities under this 16
title. 17
SEC. 806. EXTERNAL REVIEW. 18
(a) PLAN.—The Secretary shall enter into an ar- 19
rangement with the National Academy of Sciences to re- 20
view the plan prepared under section 802, which shall be 21
completed not later than 6 months after the Academy re- 22
ceives the plan. Not later than 45 days after receiving the 23
review, the Secretary shall transmit the review to Congress 24
along with a plan to implement the review’s recommenda- 25
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16
tions or an explanation of the reasons that a recommenda- 1
tion will not be implemented. 2
(b) ADDITIONAL REVIEW.—The Secretary shall enter 3
into an arrangement with the National Academy of 4
Sciences under which the Academy will review the pro- 5
grams under section 803 during the fourth year following 6
the date of enactment of this Act. The Academy’s review 7
shall include the research priorities and technical mile- 8
stones, and evaluate the progress toward achieving them. 9
The review shall be completed not later than 5 years after 10
the date of enactment of this Act. Not later than 45 days 11
after receiving the review, the Secretary shall transmit the 12
review to Congress along with a plan to implement the 13
review’s recommendations or an explanation for the rea- 14
sons that a recommendation will not be implemented. 15
SEC. 807. MISCELLANEOUS PROVISIONS. 16
(a) REPRESENTATION.—The Secretary may rep- 17
resent the United States interests with respect to activities 18
and programs under this title, in coordination with the 19
Department of Transportation, the National Institute of 20
Standards and Technology, and other relevant Federal 21
agencies, before governments and nongovernmental orga- 22
nizations including— 23
(1) other Federal, State, regional, and local 24
governments and their representatives; 25
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(2) industry and its representatives, including 1
members of the energy and transportation indus- 2
tries; and 3
(3) in consultation with the Department of 4
State, foreign governments and their representatives 5
including international organizations. 6
(b) REGULATORY AUTHORITY.—Nothing in this title 7
shall be construed to alter the regulatory authority of the 8
Department. 9
SEC. 808. SAVINGS CLAUSE. 10
Nothing in this title shall be construed to affect the 11
authority of the Secretary of Transportation that may 12
exist prior to the date of enactment of this Act with re- 13
spect to— 14
(1) research into, and regulation of, hydrogen- 15
powered vehicles fuel systems integrity, standards, 16
and safety under subtitle VI of title 49, United 17
States Code; 18
(2) regulation of hazardous materials transpor- 19
tation under chapter 51 of title 49, United States 20
Code; 21
(3) regulation of pipeline safety under chapter 22
601 of title 49, United States Code; 23
(4) encouragement and promotion of research, 24
development, and deployment activities relating to 25
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advanced vehicle technologies under section 5506 of 1
title 49, United States Code; 2
(5) regulation of motor vehicle safety under 3
chapter 301 of title 49, United States Code; 4
(6) automobile fuel economy under chapter 329 5
of title 49, United States Code; or 6
(7) representation of the interests of the United 7
States with respect to the activities and programs 8
under the authority of title 49, United States Code. 9
SEC. 809. AUTHORIZATION OF APPROPRIATIONS. 10
There are authorized to be appropriated to the Sec- 11
retary to carry out this title, in addition to any amounts 12
made available for these purposes under other Acts— 13
(1) $273,500,000 for fiscal year 2004; 14
(2) $375,000,000 for fiscal year 2005; 15
(3) $450,000,000 for fiscal year 2006; 16
(4) $500,000,000 for fiscal year 2007; and 17
(5) $550,000,000 for fiscal year 2008. 18
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November 14, 2003 (11:07 AM)

Title IX - Research and Development

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE IX—RESEARCH AND 1
DEVELOPMENT 2
SEC. 901. GOALS. 3
(a) IN GENERAL.—The Secretary shall conduct a bal- 4
anced set of programs of energy research, development, 5
demonstration, and commercial application to support 6
Federal energy policy and programs by the Department. 7
Such programs shall be focused on— 8
(1) increasing the efficiency of all energy inten- 9
sive sectors through conservation and improved tech- 10
nologies; 11
(2) promoting diversity of energy supply; 12
(3) decreasing the Nation’s dependence on for- 13
eign energy supplies; 14
(4) improving United States energy security; 15
and 16
(5) decreasing the environmental impact of en- 17
ergy-related activities. 18
(b) GOALS.—The Secretary shall publish measurable 19
5-year cost and performance-based goals with each annual 20
budget submission in at least the following areas: 21
(1) Energy efficiency for buildings, energy-con- 22
suming industries, and vehicles. 23
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(2) Electric energy generation (including dis- 1
tributed generation), transmission, and storage. 2
(3) Renewable energy technologies including 3
wind power, photovoltaics, solar thermal systems, 4
geothermal energy, hydrogen-fueled systems, bio- 5
mass-based systems, biofuels, and hydropower. 6
(4) Fossil energy including power generation, 7
onshore and offshore oil and gas resource recovery, 8
and transportation. 9
(5) Nuclear energy including programs for ex- 10
isting and advanced reactors and education of future 11
specialists. 12
(c) PUBLIC COMMENT.—The Secretary shall provide 13
mechanisms for input on the annually published goals 14
from industry, university, and other public sources. 15
(d) EFFECT OF GOALS.— 16
(1) NO NEW AUTHORITY OR REQUIREMENT.— 17
Nothing in subsection (a) or the annually published 18
goals shall— 19
(A) create any new— 20
(i) authority for any Federal agency; 21
or 22
(ii) requirement for any other person; 23
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3
(B) be used by a Federal agency to sup- 1
port the establishment of regulatory standards 2
or regulatory requirements; or 3
(C) alter the authority of the Secretary to 4
make grants or other awards. 5
(2) NO LIMITATION.—Nothing in this sub- 6
section shall be construed to limit the authority of 7
the Secretary to impose conditions on grants or 8
other awards based on the goals in subsection (a) or 9
any subsequent modification thereto. 10
SEC. 902. DEFINITIONS. 11
For purposes of this title: 12
(1) DEPARTMENT.—The term ‘‘Department’’ 13
means the Department of Energy. 14
(2) DEPARTMENTAL MISSION.—The term ‘‘de- 15
partmental mission’’ means any of the functions 16
vested in the Secretary of Energy by the Depart- 17
ment of Energy Organization Act (42 U.S.C. 7101 18
et seq.) or other law. 19
(3) INSTITUTION OF HIGHER EDUCATION.—The 20
term ‘‘institution of higher education’’ has the 21
meaning given that term in section 101(a) of the 22
Higher Education Act of 1965 (20 U.S.C. 1001(a)). 23
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(4) NATIONAL LABORATORY.—The term ‘‘Na- 1
tional Laboratory’’ means any of the following lab- 2
oratories owned by the Department: 3
(A) Ames Laboratory. 4
(B) Argonne National Laboratory. 5
(C) Brookhaven National Laboratory. 6
(D) Fermi National Accelerator Labora- 7
tory. 8
(E) Idaho National Engineering and Envi- 9
ronmental Laboratory. 10
(F) Lawrence Berkeley National Labora- 11
tory. 12
(G) Lawrence Livermore National Labora- 13
tory. 14
(H) Los Alamos National Laboratory. 15
(I) National Energy Technology Labora- 16
tory. 17
(J) National Renewable Energy Labora- 18
tory. 19
(K) Oak Ridge National Laboratory. 20
(L) Pacific Northwest National Labora- 21
tory. 22
(M) Princeton Plasma Physics Laboratory. 23
(N) Sandia National Laboratories. 24
(O) Stanford Linear Accelerator Center. 25
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(P) Thomas Jefferson National Accelerator 1
Facility. 2
(5) NONMILITARY ENERGY LABORATORY.—The 3
term ‘‘nonmilitary energy laboratory’’ means the lab- 4
oratories listed in paragraph (4), except for those 5
listed in subparagraphs (G), (H), and (N). 6
(6) SECRETARY.—The term ‘‘Secretary’’ means 7
the Secretary of Energy. 8
(7) SINGLE-PURPOSE RESEARCH FACILITY.— 9
The term ‘‘single-purpose research facility’’ means 10
any of the primarily single-purpose entities owned by 11
the Department or any other organization of the De- 12
partment designated by the Secretary. 13
Subtitle A—Energy Efficiency 14
SEC. 904. ENERGY EFFICIENCY. 15
(a) IN GENERAL.—The following sums are author- 16
ized to be appropriated to the Secretary for energy effi- 17
ciency and conservation research, development, dem- 18
onstration, and commercial application activities, includ- 19
ing activities authorized under this subtitle: 20
(1) For fiscal year 2004, $616,000,000. 21
(2) For fiscal year 2005, $695,000,000. 22
(3) For fiscal year 2006, $772,000,000. 23
(4) For fiscal year 2007, $865,000,000. 24
(5) For fiscal year 2008, $920,000,000. 25
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6
(b) ALLOCATIONS.—From amounts authorized under 1
subsection (a), the following sums are authorized: 2
(1) For activities under section 905— 3
(A) for fiscal year 2004, $20,000,000; 4
(B) for fiscal year 2005, $30,000,000; 5
(C) for fiscal year 2006, $50,000,000; 6
(D) for fiscal year 2007, $50,000,000; and 7
(E) for fiscal year 2008, $50,000,000. 8
(2) For activities under section 907— 9
(A) for fiscal year 2004, $4,000,000; and 10
(B) for each of fiscal years 2005 through 11
2008, $7,000,000. 12
(3) For activities under section 908— 13
(A) for fiscal year 2004, $20,000,000; 14
(B) for fiscal year 2005, $25,000,000; 15
(C) for fiscal year 2006, $30,000,000; 16
(D) for fiscal year 2007, $35,000,000; and 17
(E) for fiscal year 2008, $40,000,000. 18
(4) For activities under section 909, 19
$2,000,000 for each of fiscal years 2005 through 20
2008. 21
(c) EXTENDED AUTHORIZATION.—There are author- 22
ized to be appropriated to the Secretary for activities 23
under section 905, $50,000,000 for each of fiscal years 24
2009 through 2013. 25
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(d) LIMITATION ON USE OF FUNDS.—None of the 1
funds authorized to be appropriated under this section 2
may be used for— 3
(1) the issuance and implementation of energy 4
efficiency regulations; 5
(2) the Weatherization Assistance Program 6
under part A of title IV of the Energy Conservation 7
and Production Act (42 U.S.C. 6861 et seq.); 8
(3) the State Energy Program under part D of 9
title III of the Energy Policy and Conservation Act 10
(42 U.S.C. 6321 et seq.); or 11
(4) the Federal Energy Management Program 12
under part 3 of title V of the National Energy Con- 13
servation Policy Act (42 U.S.C. 8251 et seq.). 14
SEC. 905. NEXT GENERATION LIGHTING INITIATIVE. 15
(a) IN GENERAL.—The Secretary shall carry out a 16
Next Generation Lighting Initiative in accordance with 17
this section to support research, development, demonstra- 18
tion, and commercial application activities related to ad- 19
vanced solid-state lighting technologies based on white 20
light emitting diodes. 21
(b) OBJECTIVES.—The objectives of the initiative 22
shall be to develop advanced solid-state organic and inor- 23
ganic lighting technologies based on white light emitting 24
diodes that, compared to incandescent and fluorescent 25
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lighting technologies, are longer lasting; more energy-effi- 1
cient; and cost-competitive, and have less environmental 2
impact. 3
(c) INDUSTRY ALLIANCE.—The Secretary shall, not 4
later than 3 months after the date of enactment of this 5
section, competitively select an Industry Alliance to rep- 6
resent participants that are private, for-profit firms which, 7
as a group, are broadly representative of United States 8
solid state lighting research, development, infrastructure, 9
and manufacturing expertise as a whole. 10
(d) RESEARCH.— 11
(1) IN GENERAL.—The Secretary shall carry 12
out the research activities of the Next Generation 13
Lighting Initiative through competitively awarded 14
grants to researchers, including Industry Alliance 15
participants, National Laboratories, and institutions 16
of higher education. 17
(2) ASSISTANCE FROM THE INDUSTRY ALLI- 18
ANCE.—The Secretary shall annually solicit from the 19
Industry Alliance— 20
(A) comments to identify solid-state light- 21
ing technology needs; 22
(B) assessment of the progress of the Ini- 23
tiative’s research activities; and 24
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(C) assistance in annually updating solid- 1
state lighting technology roadmaps. 2
(3) AVAILABILITY OF INFORMATION AND ROAD- 3
MAPS.—The information and roadmaps under para- 4
graph (2) shall be available to the public and public 5
response shall be solicited by the Secretary. 6
(e) DEVELOPMENT, DEMONSTRATION, AND COMMER- 7
CIAL APPLICATION.—The Secretary shall carry out a de- 8
velopment, demonstration, and commercial application 9
program for the Next Generation Lighting Initiative 10
through competitively selected awards. The Secretary may 11
give preference to participants of the Industry Alliance se- 12
lected pursuant to subsection (c). 13
(f) INTELLECTUAL PROPERTY.—The Secretary may 14
require, in accordance with the authorities provided in sec- 15
tion 202(a)(ii) of title 35, United States Code, section 152 16
of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 17
section 9 of the Federal Nonnuclear Energy Research and 18
Development Act of 1974 (42 U.S.C. 5908), that— 19
(1) for any new invention resulting from activi- 20
ties under subsection (d)— 21
(A) the Industry Alliance members that 22
are active participants in research, development, 23
and demonstration activities related to the ad- 24
vanced solid-state lighting technologies that are 25
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the subject of this section shall be granted first 1
option to negotiate with the invention owner 2
nonexclusive licenses and royalties for uses of 3
the invention related to solid-state lighting on 4
terms that are reasonable under the cir- 5
cumstances; and 6
(B)(i) for 1 year after a United States pat- 7
ent is issued for the invention, the patent hold- 8
er shall not negotiate any license or royalty 9
with any entity that is not a participant in the 10
Industry Alliance described in subparagraph 11
(A); and 12
(ii) during the year described in clause (i), 13
the invention owner shall negotiate nonexclusive 14
licenses and royalties in good faith with any in- 15
terested participant in the Industry Alliance de- 16
scribed in subparagraph (A); and 17
(2) such other terms as the Secretary deter- 18
mines are required to promote accelerated commer- 19
cialization of inventions made under the Initiative. 20
(g) NATIONAL ACADEMY REVIEW.—The Secretary 21
shall enter into an arrangement with the National Acad- 22
emy of Sciences to conduct periodic reviews of the Next 23
Generation Lighting Initiative. The Academy shall review 24
the research priorities, technical milestones, and plans for 25
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11
technology transfer and progress towards achieving them. 1
The Secretary shall consider the results of such reviews 2
in evaluating the information obtained under subsection 3
(d)(2). 4
(h) DEFINITIONS.—As used in this section: 5
(1) ADVANCED SOLID-STATE LIGHTING.—The 6
term ‘‘advanced solid-state lighting’’ means a 7
semiconducting device package and delivery system 8
that produces white light using externally applied 9
voltage. 10
(2) RESEARCH.—The term ‘‘research’’ includes 11
research on the technologies, materials, and manu- 12
facturing processes required for white light emitting 13
diodes. 14
(3) INDUSTRY ALLIANCE.—The term ‘‘Industry 15
Alliance’’ means an entity selected by the Secretary 16
under subsection (c). 17
(4) WHITE LIGHT EMITTING DIODE.—The term 18
‘‘white light emitting diode’’ means a 19
semiconducting package, utilizing either organic or 20
inorganic materials, that produces white light using 21
externally applied voltage. 22
SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE. 23
(a) INTERAGENCY GROUP.—Not later than 90 days 24
after the date of enactment of this Act, the Director of 25
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the Office of Science and Technology Policy shall establish 1
an interagency group to develop, in coordination with the 2
advisory committee established under subsection (e), a 3
National Building Performance Initiative (in this section 4
referred to as the ‘‘Initiative’’). The interagency group 5
shall be co-chaired by appropriate officials of the Depart- 6
ment and the Department of Commerce, who shall jointly 7
arrange for the provision of necessary administrative sup- 8
port to the group. 9
(b) INTEGRATION OF EFFORTS.—The Initiative, 10
working with the National Institute of Building Sciences, 11
shall integrate Federal, State, and voluntary private sector 12
efforts to reduce the costs of construction, operation, 13
maintenance, and renovation of commercial, industrial, in- 14
stitutional, and residential buildings. 15
(c) PLAN.—Not later than 1 year after the date of 16
enactment of this Act, the interagency group shall submit 17
to Congress a plan for carrying out the appropriate Fed- 18
eral role in the Initiative. The plan shall include— 19
(1) research, development, demonstration, and 20
commercial application of systems and materials for 21
new construction and retrofit relating to the building 22
envelope and building system components; and 23
(2) the collection, analysis, and dissemination of 24
research results and other pertinent information on 25
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enhancing building performance to industry, govern- 1
ment entities, and the public. 2
(d) DEPARTMENT OF ENERGY ROLE.—Within the 3
Federal portion of the Initiative, the Department shall be 4
the lead agency for all aspects of building performance re- 5
lated to use and conservation of energy. 6
(e) ADVISORY COMMITTEE.— 7
(1) ESTABLISHMENT.—The Secretary, in con- 8
sultation with the Secretary of Commerce and the 9
Director of the Office of Science and Technology 10
Policy, shall establish an advisory committee to— 11
(A) analyze and provide recommendations 12
on potential private sector roles and participa- 13
tion in the Initiative; and 14
(B) review and provide recommendations 15
on the plan described in subsection (c). 16
(2) MEMBERSHIP.—Membership of the advisory 17
committee shall include representatives with a broad 18
range of appropriate expertise, including expertise 19
in— 20
(A) building research and technology; 21
(B) architecture, engineering, and building 22
materials and systems; and 23
(C) the residential, commercial, and indus- 24
trial sectors of the construction industry. 25
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(f) CONSTRUCTION.—Nothing in this section provides 1
any Federal agency with new authority to regulate build- 2
ing performance. 3
SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE 4
PROGRAM. 5
(a) DEFINITIONS.—For purposes of this section: 6
(1) ASSOCIATED EQUIPMENT.—The term ‘‘asso- 7
ciated equipment’’ means equipment located where 8
the batteries will be used that is necessary to enable 9
the use of the energy stored in the batteries. 10
(2) BATTERY.—The term ‘battery’’ means an 11
energy storage device that previously has been used 12
to provide motive power in a vehicle powered in 13
whole or in part by electricity. 14
(b) PROGRAM.—The Secretary shall establish and 15
conduct a research, development, demonstration, and com- 16
mercial application program for the secondary use of bat- 17
teries if the Secretary finds that there are sufficient num- 18
bers of such batteries to support the program. The pro- 19
gram shall be— 20
(1) designed to demonstrate the use of batteries 21
in secondary applications, including utility and com- 22
mercial power storage and power quality; 23
(2) structured to evaluate the performance, in- 24
cluding useful service life and costs, of such bat- 25
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15
teries in field operations, and the necessary sup- 1
porting infrastructure, including reuse and disposal 2
of batteries; and 3
(3) coordinated with ongoing secondary battery 4
use programs at the National Laboratories and in 5
industry. 6
(c) SOLICITATION.—Not later than 180 days after 7
the date of enactment of this Act, if the Secretary finds 8
under subsection (b) that there are sufficient numbers of 9
batteries to support the program, the Secretary shall so- 10
licit proposals to demonstrate the secondary use of bat- 11
teries and associated equipment and supporting infra- 12
structure in geographic locations throughout the United 13
States. The Secretary may make additional solicitations 14
for proposals if the Secretary determines that such solici- 15
tations are necessary to carry out this section. 16
(d) SELECTION OF PROPOSALS.— 17
(1) IN GENERAL.—The Secretary shall, not 18
later than 90 days after the closing date established 19
by the Secretary for receipt of proposals under sub- 20
section (c), select up to 5 proposals which may re- 21
ceive financial assistance under this section, subject 22
to the availability of appropriations. 23
(2) DIVERSITY; ENVIRONMENTAL EFFECT.—In 24
selecting proposals, the Secretary shall consider di- 25
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versity of battery type, geographic and climatic di- 1
versity, and life-cycle environmental effects of the 2
approaches. 3
(3) LIMITATION.—No 1 project selected under 4
this section shall receive more than 25 percent of the 5
funds authorized for the program under this section. 6
(4) OPTIMIZATION OF FEDERAL RESOURCES.— 7
The Secretary shall consider the extent of involve- 8
ment of State or local government and other persons 9
in each demonstration project to optimize use of 10
Federal resources. 11
(5) OTHER CRITERIA.—The Secretary may con- 12
sider such other criteria as the Secretary considers 13
appropriate. 14
(e) CONDITIONS.—The Secretary shall require that— 15
(1) relevant information be provided to the De- 16
partment, the users of the batteries, the proposers, 17
and the battery manufacturers; 18
(2) the proposer provide at least 50 percent of 19
the costs associated with the proposal; and 20
(3) the proposer provide to the Secretary such 21
information regarding the disposal of the batteries 22
as the Secretary may require to ensure that the pro- 23
poser disposes of the batteries in accordance with 24
applicable law. 25
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SEC. 908. ENERGY EFFICIENCY SCIENCE INITIATIVE. 1
(a) ESTABLISHMENT.—The Secretary shall establish 2
an Energy Efficiency Science Initiative to be managed by 3
the Assistant Secretary in the Department with responsi- 4
bility for energy conservation under section 203(a)(9) of 5
the Department of Energy Organization Act (42 U.S.C. 6
7133(a)(9)), in consultation with the Director of the Of- 7
fice of Science, for grants to be competitively awarded and 8
subject to peer review for research relating to energy effi- 9
ciency. 10
(b) REPORT.—The Secretary shall submit to Con- 11
gress, along with the President’s annual budget request 12
under section 1105(a) of title 31, United States Code, a 13
report on the activities of the Energy Efficiency Science 14
Initiative, including a description of the process used to 15
award the funds and an explanation of how the research 16
relates to energy efficiency. 17
SEC. 909. ELECTRIC MOTOR CONTROL TECHNOLOGY. 18
The Secretary shall conduct a research, development, 19
demonstration, and commercial application program on 20
advanced control devices to improve the energy efficiency 21
of electric motors used in heating, ventilation, air condi- 22
tioning, and comparable systems. 23
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SEC. 910. ADVANCED ENERGY TECHNOLOGY TRANSFER 1
CENTERS. 2
(a) GRANTS.—Not later than 18 months after the 3
date of enactment of this Act, the Secretary shall make 4
grants to nonprofit institutions, State and local govern- 5
ments, or universities (or consortia thereof), to establish 6
a geographically dispersed network of Advanced Energy 7
Technology Transfer Centers, to be located in areas the 8
Secretary determines have the greatest need of the serv- 9
ices of such Centers. 10
(b) ACTIVITIES.— 11
(1) IN GENERAL.—Each Center shall operate a 12
program to encourage demonstration and commer- 13
cial application of advanced energy methods and 14
technologies through education and outreach to 15
building and industrial professionals, and to other 16
individuals and organizations with an interest in ef- 17
ficient energy use. 18
(2) ADVISORY PANEL.—Each Center shall es- 19
tablish an advisory panel to advise the Center on 20
how best to accomplish the activities under para- 21
graph (1). 22
(c) APPLICATION.—A person seeking a grant under 23
this section shall submit to the Secretary an application 24
in such form and containing such information as the Sec- 25
retary may require. The Secretary may award a grant 26
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19
under this section to an entity already in existence if the 1
entity is otherwise eligible under this section. 2
(d) SELECTION CRITERIA.—The Secretary shall 3
award grants under this section on the basis of the fol- 4
lowing criteria, at a minimum: 5
(1) The ability of the applicant to carry out the 6
activities in subsection (b). 7
(2) The extent to which the applicant will co- 8
ordinate the activities of the Center with other enti- 9
ties, such as State and local governments, utilities, 10
and educational and research institutions. 11
(e) MATCHING FUNDS.—The Secretary shall require 12
a non-Federal matching requirement of at least 50 percent 13
of the costs of establishing and operating each Center. 14
(f) ADVISORY COMMITTEE.—The Secretary shall es- 15
tablish an advisory committee to advise the Secretary on 16
the establishment of Centers under this section. The advi- 17
sory committee shall be composed of individuals with ex- 18
pertise in the area of advanced energy methods and tech- 19
nologies, including at least 1 representative from— 20
(1) State or local energy offices; 21
(2) energy professionals; 22
(3) trade or professional associations; 23
(4) architects, engineers, or construction profes- 24
sionals; 25
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(5) manufacturers; 1
(6) the research community; and 2
(7) nonprofit energy or environmental organiza- 3
tions. 4
(g) DEFINITIONS.—For purposes of this section: 5
(1) ADVANCED ENERGY METHODS AND TECH- 6
NOLOGIES.—The term ‘‘advanced energy methods 7
and technologies’’ means all methods and tech- 8
nologies that promote energy efficiency and con- 9
servation, including distributed generation tech- 10
nologies, and life-cycle analysis of energy use. 11
(2) CENTER.—The term ‘‘Center’’ means an 12
Advanced Energy Technology Transfer Center estab- 13
lished pursuant to this section. 14
(3) DISTRIBUTED GENERATION.—The term 15
‘‘distributed generation’’ means an electric power 16
generation facility that is designed to serve retail 17
electric consumers at or near the facility site. 18
Subtitle B—Distributed Energy and 19
Electric Energy Systems 20
SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 21
SYSTEMS. 22
(a) IN GENERAL.—The following sums are author- 23
ized to be appropriated to the Secretary for distributed 24
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21
energy and electric energy systems activities, including ac- 1
tivities authorized under this subtitle: 2
(1) For fiscal year 2004, $190,000,000. 3
(2) For fiscal year 2005, $200,000,000. 4
(3) For fiscal year 2006, $220,000,000. 5
(4) For fiscal year 2007, $240,000,000. 6
(5) For fiscal year 2008, $260,000,000. 7
(b) MICRO-COGENERATION ENERGY TECH- 8
NOLOGY.—From amounts authorized under subsection 9
(a), $20,000,000 for each of fiscal years 2004 and 2005 10
is authorized for activities under section 914. 11
SEC. 912. HYBRID DISTRIBUTED POWER SYSTEMS. 12
(a) REQUIREMENT.—Not later than 1 year after the 13
date of enactment of this Act, the Secretary shall develop 14
and transmit to Congress a strategy for a comprehensive 15
research, development, demonstration, and commercial ap- 16
plication program to develop hybrid distributed power sys- 17
tems that combine— 18
(1) 1 or more renewable electric power genera- 19
tion technologies of 10 megawatts or less located 20
near the site of electric energy use; and 21
(2) nonintermittent electric power generation 22
technologies suitable for use in a distributed power 23
system. 24
(b) CONTENTS.—The strategy shall— 25
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(1) identify the needs best met with such hybrid 1
distributed power systems and the technological bar- 2
riers to the use of such systems; 3
(2) provide for the development of methods to 4
design, test, integrate into systems, and operate 5
such hybrid distributed power systems; 6
(3) include, as appropriate, research, develop- 7
ment, demonstration, and commercial application on 8
related technologies needed for the adoption of such 9
hybrid distributed power systems, including energy 10
storage devices and environmental control tech- 11
nologies; 12
(4) include research, development, demonstra- 13
tion, and commercial application of interconnection 14
technologies for communications and controls of dis- 15
tributed generation architectures, particularly tech- 16
nologies promoting real-time response to power mar- 17
ket information and physical conditions on the elec- 18
trical grid; and 19
(5) describe how activities under the strategy 20
will be integrated with other research, development, 21
demonstration, and commercial application activities 22
supported by the Department related to electric 23
power technologies. 24
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SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM. 1
The Secretary shall establish a comprehensive re- 2
search, development, demonstration, and commercial ap- 3
plication program to improve energy efficiency of high 4
power density facilities, including data centers, server 5
farms, and telecommunications facilities. Such program 6
shall consider technologies that provide significant im- 7
provement in thermal controls, metering, load manage- 8
ment, peak load reduction, or the efficient cooling of elec- 9
tronics. 10
SEC. 914. MICRO-COGENERATION ENERGY TECHNOLOGY. 11
The Secretary shall make competitive, merit-based 12
grants to consortia for the development of micro-cogenera- 13
tion energy technology. The consortia shall explore— 14
(1) the use of small-scale combined heat and 15
power in residential heating appliances; and 16
(2) the use of excess power to operate other ap- 17
pliances within the residence and supply excess gen- 18
erated power to the power grid. 19
SEC. 915. DISTRIBUTED ENERGY TECHNOLOGY DEM- 20
ONSTRATION PROGRAM. 21
The Secretary, within the sums authorized under sec- 22
tion 911(a), may provide financial assistance to coordi- 23
nating consortia of interdisciplinary participants for dem- 24
onstrations designed to accelerate the utilization of dis- 25
tributed energy technologies, such as fuel cells, microtur- 26
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24
bines, reciprocating engines, thermally activated tech- 1
nologies, and combined heat and power systems, in highly 2
energy intensive commercial applications. 3
SEC. 916. RECIPROCATING POWER. 4
The Secretary shall conduct a research, development, 5
and demonstration program regarding fuel system optimi- 6
zation and emissions reduction after-treatment tech- 7
nologies for industrial reciprocating engines. Such after- 8
treatment technologies shall use processes that reduce 9
emissions by recirculating exhaust gases and shall be de- 10
signed to be retrofitted to any new or existing diesel or 11
natural gas engine used for power generation, peaking 12
power generation, combined heat and power, or compres- 13
sion. 14
Subtitle C—Renewable Energy 15
SEC. 918. RENEWABLE ENERGY. 16
(a) IN GENERAL.—The following sums are author- 17
ized to be appropriated to the Secretary for renewable en- 18
ergy research, development, demonstration, and commer- 19
cial application activities, including activities authorized 20
under this subtitle: 21
(1) For fiscal year 2004, $480,000,000. 22
(2) For fiscal year 2005, $550,000,000. 23
(3) For fiscal year 2006, $610,000,000. 24
(4) For fiscal year 2007, $659,000,000. 25
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(5) For fiscal year 2008, $710,000,000. 1
(b) BIOENERGY.—From the amounts authorized 2
under subsection (a), the following sums are authorized 3
to be appropriated to carry out section 919: 4
(1) For fiscal year 2004, $135,425,000. 5
(2) For fiscal year 2005, $155,600,000. 6
(3) For fiscal year 2006, $167,650,000. 7
(4) For fiscal year 2007, $180,000,000. 8
(5) For fiscal year 2008, $192,000,000. 9
(c) CONCENTRATING SOLAR POWER.—From 10
amounts authorized under subsection (a), the following 11
sums are authorized to be appropriated to carry out sec- 12
tion 920: 13
(1) For fiscal year 2004, $20,000,000. 14
(2) For fiscal year 2005, $40,000,000. 15
(3) For each of fiscal years 2006, 2007 and 16
2008, $50,000,000. 17
(d) PUBLIC BUILDINGS.—From the amounts author- 18
ized under subsection (a), $30,000,000 for each of the fis- 19
cal years 2004 through 2008 are authorized to be appro- 20
priated to carry out section 922. 21
(e) LIMITS ON USE OF FUNDS.— 22
(1) NO FUNDS FOR RENEWABLE SUPPORT AND 23
IMPLEMENTATION.—None of the funds authorized to 24
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26
be appropriated under this section may be used for 1
Renewable Support and Implementation. 2
(2) GRANTS.—Of the funds authorized under 3
subsection (b), not less than $5,000,000 for each fis- 4
cal year shall be made available for grants to His- 5
torically Black Colleges and Universities, Tribal Col- 6
leges, and Hispanic-Serving Institutions. 7
(3) REGIONAL FIELD VERIFICATION PRO- 8
GRAM.—Of the funds authorized under subsection 9
(a), not less than $4,000,000 for each fiscal year 10
shall be made available for the Regional Field Ver- 11
ification Program of the Department. 12
(4) OFF-STREAM PUMPED STORAGE HYDRO- 13
POWER.—Of the funds authorized under subsection 14
(a), such sums as may be necessary shall be made 15
available for demonstration projects of off-stream 16
pumped storage hydropower. 17
(f) CONSULTATION.—In carrying out this subtitle, 18
the Secretary, in consultation with the Secretary of Agri- 19
culture, shall demonstrate the use of advanced wind power 20
technology, including combined use with coal gasification; 21
biomass; geothermal energy systems; and other renewable 22
energy technologies to assist in delivering electricity to 23
rural and remote locations. 24
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SEC. 919. BIOENERGY PROGRAMS. 1
(a) DEFINITIONS.—For the purposes of this section: 2
(1) The term ‘‘agricultural byproducts’’ in- 3
cludes waste products, including poultry fat and 4
poultry waste. 5
(2) The term ‘‘cellulosic biomass’’ means any 6
portion of a crop containing lignocellulose or hemi- 7
cellulose, including barley grain, grapeseed, forest 8
thinnings, rice bran, rice hulls, rice straw, soybean 9
matter, and sugarcane bagasse, or any crop grown 10
specifically for the purpose of producing cellulosic 11
feedstocks. 12
(b) PROGRAM.—The Secretary shall conduct a pro- 13
gram of research, development, demonstration, and com- 14
mercial application for bioenergy, including— 15
(1) biopower energy systems; 16
(2) biofuels; 17
(3) bio-based products; 18
(4) integrated biorefineries that may produce 19
biopower, biofuels, and bio-based products; 20
(5) cross-cutting research and development in 21
feedstocks and enzymes; and 22
(6) economic analysis. 23
(c) BIOFUELS AND BIO-BASED PRODUCTS.—The 24
goals of the biofuels and bio-based products programs 25
shall be to develop, in partnership with industry— 26
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(1) advanced biochemical and thermochemical 1
conversion technologies capable of making biofuels 2
that are price-competitive with gasoline or diesel in 3
either internal combustion engines or fuel cell-pow- 4
ered vehicles, and bio-based products from a variety 5
of feedstocks, including grains, cellulosic biomass, 6
and other agricultural byproducts; and 7
(2) advanced biotechnology processes capable of 8
making biofuels and bio-based products with empha- 9
sis on development of biorefinery technologies using 10
enzyme-based processing systems. 11
SEC. 920. CONCENTRATING SOLAR POWER RESEARCH AND 12
DEVELOPMENT PROGRAM. 13
(a) IN GENERAL.—The Secretary shall conduct a 14
program of research and development to evaluate the po- 15
tential of concentrating solar power for hydrogen produc- 16
tion, including cogeneration approaches for both hydrogen 17
and electricity. Such program shall take advantage of ex- 18
isting facilities to the extent possible and shall include— 19
(1) development of optimized technologies that 20
are common to both electricity and hydrogen produc- 21
tion; 22
(2) evaluation of thermochemical cycles for hy- 23
drogen production at the temperatures attainable 24
with concentrating solar power; 25
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(3) evaluation of materials issues for the 1
thermochemical cycles described in paragraph (2); 2
(4) system architectures and economics studies; 3
and 4
(5) coordination with activities in the Advanced 5
Reactor Hydrogen Cogeneration Project on high 6
temperature materials, thermochemical cycles, and 7
economic issues. 8
(b) ASSESSMENT.—In carrying out the program 9
under this section, the Secretary shall— 10
(1) assess conflicting guidance on the economic 11
potential of concentrating solar power for electricity 12
production received from the National Research 13
Council report entitled ‘‘Renewable Power Pathways: 14
A Review of the U.S. Department of Energy’s Re- 15
newable Energy Programs’’ in 2000 and subsequent 16
Department-funded reviews of that report; and 17
(2) provide an assessment of the potential im- 18
pact of the technology before, or concurrent with, 19
submission of the fiscal year 2006 budget. 20
(c) REPORT.—Not later than 5 years after the date 21
of enactment of this Act, the Secretary shall provide a re- 22
port to Congress on the economic and technical potential 23
for electricity or hydrogen production, with or without co- 24
generation, with concentrating solar power, including the 25
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economic and technical feasibility of potential construction 1
of a pilot demonstration facility suitable for commercial 2
production of electricity or hydrogen from concentrating 3
solar power. 4
SEC. 921. MISCELLANEOUS PROJECTS. 5
The Secretary may conduct research, development, 6
demonstration, and commercial application programs 7
for— 8
(1) ocean energy, including wave energy; and 9
(2) the combined use of renewable energy tech- 10
nologies with one another and with other energy 11
technologies, including the combined use of wind 12
power and coal gasification technologies. 13
SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS. 14
(a) DEMONSTRATION AND TECHNOLOGY TRANSFER 15
PROGRAM.—The Secretary shall establish a program for 16
the demonstration of innovative technologies for solar and 17
other renewable energy sources in buildings owned or op- 18
erated by a State or local government, and for the dissemi- 19
nation of information resulting from such demonstration 20
to interested parties. 21
(b) LIMIT ON FEDERAL FUNDING.—The Secretary 22
shall provide under this section no more than 40 percent 23
of the incremental costs of the solar or other renewable 24
energy source project funded. 25
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(c) REQUIREMENT.—As part of the application for 1
awards under this section, the Secretary shall require all 2
applicants— 3
(1) to demonstrate a continuing commitment to 4
the use of solar and other renewable energy sources 5
in buildings they own or operate; and 6
(2) to state how they expect any award to fur- 7
ther their transition to the significant use of renew- 8
able energy. 9
SEC. 923. STUDY OF MARINE RENEWABLE ENERGY OP- 10
TIONS. 11
(a) IN GENERAL.—The Secretary shall enter into an 12
arrangement with the National Academy of Sciences to 13
conduct a study on— 14
(1) the feasibility of various methods of renew- 15
able generation of energy from the ocean, including 16
energy from waves, tides, currents, and thermal gra- 17
dients; and 18
(2) the research, development, demonstration, 19
and commercial application activities required to 20
make marine renewable energy generation competi- 21
tive with other forms of electricity generation. 22
(b) TRANSMITTAL.—Not later than 1 year after the 23
date of enactment of this Act, the Secretary shall transmit 24
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the study to Congress along with the Secretary’s rec- 1
ommendations for implementing the results of the study. 2
Subtitle D—Nuclear Energy 3
SEC. 924. NUCLEAR ENERGY. 4
(a) CORE PROGRAMS.—The following sums are au- 5
thorized to be appropriated to the Secretary for nuclear 6
energy research, development, demonstration, and com- 7
mercial application activities, including activities author- 8
ized under this subtitle, other than those described in sub- 9
section (b): 10
(1) For fiscal year 2004, $273,000,000. 11
(2) For fiscal year 2005, $355,000,000. 12
(3) For fiscal year 2006, $430,000,000. 13
(4) For fiscal year 2007, $455,000,000. 14
(5) For fiscal year 2008, $545,000,000. 15
(b) NUCLEAR INFRASTRUCTURE SUPPORT.—The fol- 16
lowing sums are authorized to be appropriated to the Sec- 17
retary for activities under section 925(e): 18
(1) For fiscal year 2004, $125,000,000. 19
(2) For fiscal year 2005, $130,000,000. 20
(3) For fiscal year 2006, $135,000,000. 21
(4) For fiscal year 2007, $140,000,000. 22
(5) For fiscal year 2008, $145,000,000. 23
(c) ALLOCATIONS.—From amounts authorized under 24
subsection (a), the following sums are authorized: 25
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(1) For activities under section 926— 1
(A) for fiscal year 2004, $140,000,000; 2
(B) for fiscal year 2005, $145,000,000; 3
(C) for fiscal year 2006, $150,000,000; 4
(D) for fiscal year 2007, $155,000,000; 5
and 6
(E) for fiscal year 2008, $275,000,000. 7
(2) For activities under section 927— 8
(A) for fiscal year 2004, $35,200,000; 9
(B) for fiscal year 2005, $44,350,000; 10
(C) for fiscal year 2006, $49,200,000; 11
(D) for fiscal year 2007, $54,950,000; and 12
(E) for fiscal year 2008, $60,000,000. 13
(3) For activities under section 929, for each of 14
fiscal years 2004 through 2008, $6,000,000. 15
(d) LIMITATION ON USE OF FUNDS.—None of the 16
funds authorized under this section may be used for de- 17
commissioning the Fast Flux Test Facility. 18
SEC. 925. NUCLEAR ENERGY RESEARCH AND DEVELOP- 19
MENT PROGRAMS. 20
(a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The 21
Secretary shall carry out a Nuclear Energy Research Ini- 22
tiative for research and development related to nuclear en- 23
ergy. 24
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(b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO- 1
GRAM.—The Secretary shall carry out a Nuclear Energy 2
Plant Optimization Program to support research and de- 3
velopment activities addressing reliability, availability, pro- 4
ductivity, component aging, safety, and security of existing 5
nuclear power plants. 6
(c) NUCLEAR POWER 2010 PROGRAM.—The Sec- 7
retary shall carry out a Nuclear Power 2010 Program, 8
consistent with recommendations in the October 2001 re- 9
port entitled ‘‘A Roadmap to Deploy New Nuclear Power 10
Plants in the United States by 2010’’ issued by the Nu- 11
clear Energy Research Advisory Committee of the Depart- 12
ment. Whatever type of reactor is chosen for the hydrogen 13
cogeneration project under subtitle C of title VI, that type 14
shall not be addressed in the Program under this section. 15
The Program shall include— 16
(1) support for first-of-a-kind engineering de- 17
sign and certification expenses of advanced nuclear 18
power plant designs, which offer improved safety 19
and economics over current conventional plants and 20
the promise of near-term to medium-term commer- 21
cial deployment; 22
(2) action by the Secretary to encourage domes- 23
tic power companies to install new nuclear plant ca- 24
pacity as soon as possible; 25
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(3) utilization of the expertise and capabilities 1
of industry, universities, and National Laboratories 2
in evaluation of advanced nuclear fuel cycles and 3
fuels testing; 4
(4) consideration of proliferation-resistant pas- 5
sively-safe, small reactors suitable for long-term elec- 6
tricity production without refueling and suitable for 7
use in remote installations; 8
(5) participation of international collaborators 9
in research, development, design, and deployment ef- 10
forts as appropriate and consistent with United 11
States interests in nonproliferation of nuclear weap- 12
ons; 13
(6) encouragement for university and industry 14
participation; and 15
(7) selection of projects such as to strengthen 16
the competitive position of the domestic nuclear 17
power industrial infrastructure. 18
(d) GENERATION IV NUCLEAR ENERGY SYSTEMS 19
INITIATIVE.—The Secretary shall carry out a Generation 20
IV Nuclear Energy Systems Initiative to develop an over- 21
all technology plan and to support research and develop- 22
ment necessary to make an informed technical decision 23
about the most promising candidates for eventual commer- 24
cial application. The Initiative shall examine advanced 25
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proliferation-resistant and passively safe reactor designs, 1
including designs that— 2
(1) are economically competitive with other elec- 3
tric power generation plants; 4
(2) have higher efficiency, lower cost, and im- 5
proved safety compared to reactors in operation on 6
the date of enactment of this Act; 7
(3) use fuels that are proliferation-resistant and 8
have substantially reduced production of high-level 9
waste per unit of output; and 10
(4) use improved instrumentation. 11
(e) NUCLEAR INFRASTRUCTURE SUPPORT.—The 12
Secretary shall develop and implement a strategy for the 13
facilities of the Office of Nuclear Energy, Science, and 14
Technology and shall transmit a report containing the 15
strategy along with the President’s budget request to Con- 16
gress for fiscal year 2006. 17
SEC. 926. ADVANCED FUEL CYCLE INITIATIVE. 18
(a) IN GENERAL.—The Secretary, through the Direc- 19
tor of the Office of Nuclear Energy, Science, and Tech- 20
nology, shall conduct an advanced fuel recycling tech- 21
nology research and development program to evaluate pro- 22
liferation-resistant fuel recycling and transmutation tech- 23
nologies that minimize environmental or public health and 24
safety impacts as an alternative to aqueous reprocessing 25
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technologies deployed as of the date of enactment of this 1
Act in support of evaluation of alternative national strate- 2
gies for spent nuclear fuel and the Generation IV ad- 3
vanced reactor concepts, subject to annual review by the 4
Secretary’s Nuclear Energy Research Advisory Committee 5
or other independent entity, as appropriate. Opportunities 6
to enhance progress of the program through international 7
cooperation should be sought. 8
(b) REPORTS.—The Secretary shall report on the ac- 9
tivities of the advanced fuel recycling technology research 10
and development program as part of the Department’s an- 11
nual budget submission. 12
SEC. 927. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER- 13
ING SUPPORT. 14
(a) ESTABLISHMENT.—The Secretary shall support 15
a program to invest in human resources and infrastructure 16
in the nuclear sciences and engineering and related fields 17
(including health physics and nuclear and radiochemistry), 18
consistent with departmental missions related to civilian 19
nuclear research and development. 20
(b) DUTIES.—In carrying out the program under this 21
section, the Secretary shall establish fellowship and faculty 22
assistance programs, as well as provide support for funda- 23
mental research and encourage collaborative research 24
among industry, National Laboratories, and universities 25
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through the Nuclear Energy Research Initiative. The Sec- 1
retary is encouraged to support activities addressing the 2
entire fuel cycle through involvement of both the Office 3
of Nuclear Energy, Science, and Technology and the Of- 4
fice of Civilian Radioactive Waste Management. The Sec- 5
retary shall support communication and outreach related 6
to nuclear science, engineering, and nuclear waste man- 7
agement, consistent with interests of the United States in 8
nonproliferation of nuclear weapons capabilities. 9
(c) STRENGTHENING UNIVERSITY RESEARCH AND 10
TRAINING REACTORS AND ASSOCIATED INFRASTRUC- 11
TURE.—Activities under this section may include— 12
(1) converting research and training reactors 13
currently using high-enrichment fuels to low-enrich- 14
ment fuels, upgrading operational instrumentation, 15
and sharing of reactors among institutions of higher 16
education; 17
(2) providing technical assistance, in collabora- 18
tion with the United States nuclear industry, in reli- 19
censing and upgrading research and training reac- 20
tors as part of a student training program; and 21
(3) providing funding, through the Innovations 22
in Nuclear Infrastructure and Education Program, 23
for reactor improvements as part of a focused effort 24
that emphasizes research, training, and education. 25
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(d) UNIVERSITY NATIONAL LABORATORY INTER- 1
ACTIONS.—The Secretary shall develop sabbatical fellow- 2
ship and visiting scientist programs to encourage sharing 3
of personnel between National Laboratories and univer- 4
sities. 5
(e) OPERATING AND MAINTENANCE COSTS.—Fund- 6
ing for a research project provided under this section may 7
be used to offset a portion of the operating and mainte- 8
nance costs of a research and training reactor at an insti- 9
tution of higher education used in the research project. 10
SEC. 928. SECURITY OF REACTOR DESIGNS. 11
The Secretary, through the Director of the Office of 12
Nuclear Energy, Science, and Technology, shall conduct 13
a research and development program on cost-effective 14
technologies for increasing the safety of reactor designs 15
from natural phenomena and the security of reactor de- 16
signs from deliberate attacks. 17
SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE 18
SOURCES. 19
(a) STUDY.—The Secretary shall conduct a study and 20
provide a report to Congress not later than August 1, 21
2004. The study shall— 22
(1) survey industrial applications of large radio- 23
active sources, including well-logging sources; 24
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40
(2) review current domestic and international 1
Department, Department of Defense, Department of 2
State, and commercial programs to manage and dis- 3
pose of radioactive sources; 4
(3) discuss disposal options and practices for 5
currently deployed or future sources and, if defi- 6
ciencies are noted in existing disposal options or 7
practices for either deployed or future sources, rec- 8
ommend options to remedy deficiencies; and 9
(4) develop a program plan for research and de- 10
velopment to develop alternatives to large industrial 11
sources that reduce safety, environmental, or pro- 12
liferation risks to either workers using the sources or 13
the public. 14
(b) PROGRAM.—The Secretary shall establish a re- 15
search and development program to implement the pro- 16
gram plan developed under subsection (a)(4). The pro- 17
gram shall include miniaturized particle accelerators for 18
well-logging or other industrial applications and portable 19
accelerators for production of short-lived radioactive mate- 20
rials at an industrial site. 21
SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL. 22
The Secretary shall conduct a study to determine the 23
feasibility of deep borehole disposal of spent nuclear fuel 24
and high-level radioactive waste. The study shall empha- 25
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size geological, chemical, and hydrological characterization 1
of, and design of engineered structures for, deep borehole 2
environments. Not later than 1 year after the date of en- 3
actment of this Act, the Secretary shall transmit the study 4
to Congress. 5
Subtitle E—Fossil Energy 6
PART I—RESEARCH PROGRAMS 7
SEC. 931. FOSSIL ENERGY. 8
(a) IN GENERAL.—The following sums are author- 9
ized to be appropriated to the Secretary for fossil energy 10
research, development, demonstration, and commercial ap- 11
plication activities, including activities authorized under 12
this part: 13
(1) For fiscal year 2004, $530,000,000. 14
(2) For fiscal year 2005, $556,000,000. 15
(3) For fiscal year 2006, $583,000,000. 16
(4) For fiscal year 2007, $611,000,000. 17
(5) For fiscal year 2008, $626,000,000. 18
(b) ALLOCATIONS.—From amounts authorized under 19
subsection (a), the following sums are authorized: 20
(1) For activities under section 932(b)(2), 21
$28,000,000 for each of the fiscal years 2004 22
through 2008. 23
(2) For activities under section 934— 24
(A) for fiscal year 2004, $12,000,000; 25
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42
(B) for fiscal year 2005, $15,000,000; and 1
(C) for each of fiscal years 2006 through 2
2008, $20,000,000. 3
(3) For activities under section 935— 4
(A) for fiscal year 2004, $259,000,000; 5
(B) for fiscal year 2005, $272,000,000; 6
(C) for fiscal year 2006, $285,000,000; 7
(D) for fiscal year 2007, $298,000,000; 8
and 9
(E) for fiscal year 2008, $308,000,000. 10
(4) For the Office of Arctic Energy under sec- 11
tion 3197 of the Floyd D. Spence National Defense 12
Authorization Act for Fiscal Year 2001 (42 U.S.C. 13
7144d), $25,000,000 for each of fiscal years 2004 14
through 2008. 15
(5) For activities under section 933, 16
$4,000,000 for fiscal year 2004 and $2,000,000 for 17
each of fiscal years 2005 through 2008. 18
(c) EXTENDED AUTHORIZATION.—There are author- 19
ized to be appropriated to the Secretary for the Office of 20
Arctic Energy under section 3197 of the Floyd D. Spence 21
National Defense Authorization Act for Fiscal Year 2001 22
(42 U.S.C. 7144d), $25,000,000 for each of fiscal years 23
2009 through 2012. 24
(d) LIMITS ON USE OF FUNDS.— 25
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(1) NO FUNDS FOR CERTAIN PROGRAMS.—None 1
of the funds authorized under this section may be 2
used for Fossil Energy Environmental Restoration 3
or Import/Export Authorization. 4
(2) INSTITUTIONS OF HIGHER EDUCATION.—Of 5
the funds authorized under subsection (b)(2), not 6
less than 20 percent of the funds appropriated for 7
each fiscal year shall be dedicated to research and 8
development carried out at institutions of higher 9
education. 10
SEC. 932. OIL AND GAS RESEARCH PROGRAMS. 11
(a) OIL AND GAS RESEARCH.—The Secretary shall 12
conduct a program of research, development, demonstra- 13
tion, and commercial application on oil and gas, 14
including— 15
(1) exploration and production; 16
(2) gas hydrates; 17
(3) reservoir life and extension; 18
(4) transportation and distribution infrastruc- 19
ture; 20
(5) ultraclean fuels; 21
(6) heavy oil and oil shale; 22
(7) related environmental research; and 23
(8) compressed natural gas marine transport. 24
(b) FUEL CELLS.— 25
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(1) IN GENERAL.—The Secretary shall conduct 1
a program of research, development, demonstration, 2
and commercial application on fuel cells for low-cost, 3
high-efficiency, fuel-flexible, modular power systems. 4
(2) IMPROVED MANUFACTURING PRODUCTION 5
AND PROCESSES.—The demonstrations under para- 6
graph (1) shall include fuel cell technology for com- 7
mercial, residential, and transportation applications, 8
and distributed generation systems, utilizing im- 9
proved manufacturing production and processes. 10
(c) NATURAL GAS AND OIL DEPOSITS REPORT.— 11
Not later than 2 years after the date of enactment of this 12
Act, and every 2 years thereafter, the Secretary of the In- 13
terior, in consultation with other appropriate Federal 14
agencies, shall transmit a report to Congress of the latest 15
estimates of natural gas and oil reserves, reserves growth, 16
and undiscovered resources in Federal and State waters 17
off the coast of Louisiana and Texas. 18
(d) INTEGRATED CLEAN POWER AND ENERGY RE- 19
SEARCH.— 20
(1) NATIONAL CENTER OR CONSORTIUM OF EX- 21
CELLENCE.—The Secretary shall establish a na- 22
tional center or consortium of excellence in clean en- 23
ergy and power generation, utilizing the resources of 24
the existing Clean Power and Energy Research Con- 25
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sortium, to address the Nation’s critical dependence 1
on energy and the need to reduce emissions. 2
(2) PROGRAM.—The center or consortium shall 3
conduct a program of research, development, dem- 4
onstration, and commercial application on inte- 5
grating the following focus areas: 6
(A) Efficiency and reliability of gas tur- 7
bines for power generation. 8
(B) Reduction in emissions from power 9
generation. 10
(C) Promotion of energy conservation 11
issues. 12
(D) Effectively utilizing alternative fuels 13
and renewable energy. 14
(E) Development of advanced materials 15
technology for oil and gas exploration and utili- 16
zation in harsh environments. 17
(F) Education on energy and power gen- 18
eration issues. 19
SEC. 933. TECHNOLOGY TRANSFER. 20
The Secretary shall establish a competitive program 21
to award a contract to a nonprofit entity for the purpose 22
of transferring technologies developed with public funds. 23
The entity selected under this section shall have experi- 24
ence in offshore oil and gas technology research manage- 25
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ment, in the transfer of technologies developed with public 1
funds to the offshore and maritime industry, and in man- 2
agement of an offshore and maritime industry consortium. 3
The program consortium selected under section 942 shall 4
not be eligible for selection under this section. When ap- 5
propriate, the Secretary shall consider utilizing the entity 6
selected under this section when implementing the activi- 7
ties authorized by section 975. 8
SEC. 934. RESEARCH AND DEVELOPMENT FOR COAL MIN- 9
ING TECHNOLOGIES. 10
(a) ESTABLISHMENT.—The Secretary shall carry out 11
a program of research and development on coal mining 12
technologies. The Secretary shall cooperate with appro- 13
priate Federal agencies, coal producers, trade associations, 14
equipment manufacturers, institutions of higher education 15
with mining engineering departments, and other relevant 16
entities. 17
(b) PROGRAM.—The research and development activi- 18
ties carried out under this section shall— 19
(1) be guided by the mining research and devel- 20
opment priorities identified by the Mining Industry 21
of the Future Program and in the recommendations 22
from relevant reports of the National Academy of 23
Sciences on mining technologies; 24
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(2) include activities exploring minimization of 1
contaminants in mined coal that contribute to envi- 2
ronmental concerns including development and dem- 3
onstration of electromagnetic wave imaging ahead of 4
mining operations; 5
(3) develop and demonstrate electromagnetic 6
wave imaging and radar techniques for horizontal 7
drilling in coal beds in order to increase methane re- 8
covery efficiency, prevent spoilage of domestic coal 9
reserves, and minimize water disposal associated 10
with methane extraction; and 11
(4) expand mining research capabilities at insti- 12
tutions of higher education. 13
SEC. 935. COAL AND RELATED TECHNOLOGIES PROGRAM. 14
(a) IN GENERAL.—In addition to the programs au- 15
thorized under title IV, the Secretary shall conduct a pro- 16
gram of technology research, development, demonstration, 17
and commercial application for coal and power systems, 18
including programs to facilitate production and generation 19
of coal-based power through— 20
(1) innovations for existing plants; 21
(2) integrated gasification combined cycle; 22
(3) advanced combustion systems; 23
(4) turbines for synthesis gas derived from coal; 24
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(5) carbon capture and sequestration research 1
and development; 2
(6) coal-derived transportation fuels and chemi- 3
cals; 4
(7) solid fuels and feedstocks; 5
(8) advanced coal-related research; 6
(9) advanced separation technologies; and 7
(10) a joint project for permeability enhance- 8
ment in coals for natural gas production and carbon 9
dioxide sequestration. 10
(b) COST AND PERFORMANCE GOALS.—In carrying 11
out programs authorized by this section, the Secretary 12
shall identify cost and performance goals for coal-based 13
technologies that would permit the continued cost-com- 14
petitive use of coal for electricity generation, as chemical 15
feedstocks, and as transportation fuel in 2007, 2015, and 16
the years after 2020. In establishing such cost and per- 17
formance goals, the Secretary shall— 18
(1) consider activities and studies undertaken 19
to date by industry in cooperation with the Depart- 20
ment in support of such assessment; 21
(2) consult with interested entities, including 22
coal producers, industries using coal, organizations 23
to promote coal and advanced coal technologies, en- 24
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vironmental organizations, and organizations rep- 1
resenting workers; 2
(3) not later than 120 days after the date of 3
enactment of this Act, publish in the Federal Reg- 4
ister proposed draft cost and performance goals for 5
public comments; and 6
(4) not later than 180 days after the date of 7
enactment of this Act and every 4 years thereafter, 8
submit to Congress a report describing final cost 9
and performance goals for such technologies that in- 10
cludes a list of technical milestones as well as an ex- 11
planation of how programs authorized in this section 12
will not duplicate the activities authorized under the 13
Clean Coal Power Initiative authorized under sub- 14
title A of title IV. 15
SEC. 936. COMPLEX WELL TECHNOLOGY TESTING FACIL- 16
ITY. 17
The Secretary, in coordination with industry leaders 18
in extended research drilling technology, shall establish a 19
Complex Well Technology Testing Facility at the Rocky 20
Mountain Oilfield Testing Center to increase the range of 21
extended drilling technologies. 22
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SEC. 937. FISCHER-TROPSCH DIESEL FUEL LOAN GUAR- 1
ANTEE PROGRAM. 2
(a) DEFINITION OF FISCHER-TROPSCH DIESEL 3
FUEL.—In this section, the term ‘‘Fischer-Tropsch diesel 4
fuel’’ means diesel fuel that— 5
(1) contains less than 10 parts per million sul- 6
fur; and 7
(2) is produced through the Fischer-Tropsch 8
liquification process from coal or waste from coal 9
that was mined in the United States. 10
(b) LOAN GUARANTEES.— 11
(1) ESTABLISHMENT OF PROGRAM.—The Sec- 12
retary of Energy shall establish a program to pro- 13
vide guarantees of loans by private lending institu- 14
tions for the construction of facilities for the produc- 15
tion of Fischer-Tropsch diesel fuel and commercial 16
byproducts of that production. 17
(2) REQUIREMENTS.—The Secretary may pro- 18
vide a loan guarantee under paragraph (1) if— 19
(A) without a loan guarantee, credit is not 20
available to the applicant under reasonable 21
terms or conditions sufficient to finance the 22
construction of a facility described in paragraph 23
(1); 24
(B) the prospective earning power of the 25
applicant and the character and value of the se- 26
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curity pledged provide a reasonable assurance 1
of repayment of the loan to be guaranteed in 2
accordance with the terms of the loan; and 3
(C) the loan bears interest at a rate deter- 4
mined by the Secretary to be reasonable, taking 5
into account the current average yield on out- 6
standing obligations of the United States with 7
remaining periods of maturity comparable to 8
the maturity of the loan. 9
(3) CRITERIA.—In selecting recipients of loan 10
guarantees from among applicants, the Secretary 11
shall give preference to proposals that— 12
(A) meet all Federal and State permitting 13
requirements; 14
(B) are most likely to be successful; and 15
(C) are located in local markets that have 16
the greatest need for the facility because of— 17
(i) the availability of domestic coal or 18
coal waste for conversion; or 19
(ii) a projected high level of demand 20
for Fischer-Tropsch diesel fuel or other 21
commercial byproducts of the facility. 22
(4) MATURITY.—A loan guaranteed under 23
paragraph (1) shall have a maturity of not more 24
than 25 years. 25
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(5) TERMS AND CONDITIONS.—The loan agree- 1
ment for a loan guaranteed under paragraph (1) 2
shall provide that no provision of the loan may be 3
amended or waived without the consent of the Sec- 4
retary. 5
(6) GUARANTEE FEE.—A recipient of a loan 6
guarantee under paragraph (1) shall pay the Sec- 7
retary an amount to be determined by the Secretary 8
to be sufficient to cover the administrative costs of 9
the Secretary relating to the loan guarantee. 10
(7) FULL FAITH AND CREDIT.— 11
(A) IN GENERAL.—The full faith and cred- 12
it of the United States is pledged to payment 13
of loan guarantees made under this section. 14
(B) CONCLUSIVE EVIDENCE.—Any loan 15
guarantee made by the Secretary under this 16
section shall be conclusive evidence of the eligi- 17
bility of the loan for the guarantee with respect 18
to principal and interest. 19
(C) VALIDITY.—The validity of a loan 20
guarantee shall be incontestable in the hands of 21
a holder of the guaranteed loan. 22
(8) REPORTS.—Until each guaranteed loan 23
under this section is repaid in full, the Secretary 24
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shall annually submit to Congress a report on the 1
activities of the Secretary under this section. 2
(9) AUTHORIZATION OF APPROPRIATIONS.— 3
There are authorized to be appropriated such sums 4
as are necessary to carry out this section. 5
(10) TERMINATION OF AUTHORITY.—The au- 6
thority of the Secretary to issue a new loan guar- 7
antee under paragraph (1) terminates on the date 8
that is 5 years after the date of enactment of this 9
Act. 10
PART II—ULTRA-DEEPWATER AND UNCONVEN- 11
TIONAL NATURAL GAS AND OTHER PETRO- 12
LEUM RESOURCES 13
SEC. 941. PROGRAM AUTHORITY. 14
(a) IN GENERAL.—The Secretary shall carry out a 15
program under this part of research, development, dem- 16
onstration, and commercial application of technologies for 17
ultra-deepwater and unconventional natural gas and other 18
petroleum resource exploration and production, including 19
addressing the technology challenges for small producers, 20
safe operations, and environmental mitigation (including 21
reduction of greenhouse gas emissions and sequestration 22
of carbon). 23
(b) PROGRAM ELEMENTS.—The program under this 24
part shall address the following areas, including improving 25
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safety and minimizing environmental impacts of activities 1
within each area: 2
(1) Ultra-deepwater technology, including drill- 3
ing to formations in the Outer Continental Shelf to 4
depths greater than 15,000 feet. 5
(2) Ultra-deepwater architecture. 6
(3) Unconventional natural gas and other petro- 7
leum resource exploration and production tech- 8
nology, including the technology challenges of small 9
producers. 10
(c) LIMITATION ON LOCATION OF FIELD ACTIVI- 11
TIES.—Field activities under the program under this part 12
shall be carried out only— 13
(1) in— 14
(A) areas in the territorial waters of the 15
United States not under any Outer Continental 16
Shelf moratorium as of September 30, 2002; 17
(B) areas onshore in the United States on 18
public land administered by the Secretary of the 19
Interior available for oil and gas leasing, where 20
consistent with applicable law and land use 21
plans; and 22
(C) areas onshore in the United States on 23
State or private land, subject to applicable law; 24
and 25
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(2) with the approval of the appropriate Fed- 1
eral or State land management agency or private 2
land owner. 3
(d) RESEARCH AT NATIONAL ENERGY TECHNOLOGY 4
LABORATORY.—The Secretary, through the National En- 5
ergy Technology Laboratory, shall carry out research com- 6
plementary to research under subsection (b). 7
(e) CONSULTATION WITH SECRETARY OF THE INTE- 8
RIOR.—In carrying out this part, the Secretary shall con- 9
sult regularly with the Secretary of the Interior. 10
SEC. 942. ULTRA-DEEPWATER PROGRAM. 11
(a) IN GENERAL.—The Secretary shall carry out the 12
activities under section 941(a), to maximize the use of the 13
ultra-deepwater natural gas and other petroleum resources 14
of the United States by increasing the supply of such re- 15
sources, through reducing the cost and increasing the effi- 16
ciency of exploration for and production of such resources, 17
while improving safety and minimizing environmental im- 18
pacts. 19
(b) ROLE OF THE SECRETARY.—The Secretary shall 20
have ultimate responsibility for, and oversight of, all as- 21
pects of the program under this section. 22
(c) ROLE OF THE PROGRAM CONSORTIUM.— 23
(1) IN GENERAL.—The Secretary may contract 24
with a consortium to— 25
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(A) manage awards pursuant to subsection 1
(f)(4); 2
(B) make recommendations to the Sec- 3
retary for project solicitations; 4
(C) disburse funds awarded under sub- 5
section (f) as directed by the Secretary in ac- 6
cordance with the annual plan under subsection 7
(e); and 8
(D) carry out other activities assigned to 9
the program consortium by this section. 10
(2) LIMITATION.—The Secretary may not as- 11
sign any activities to the program consortium except 12
as specifically authorized under this section. 13
(3) CONFLICT OF INTEREST.— 14
(A) PROCEDURES.—The Secretary shall 15
establish procedures— 16
(i) to ensure that each board member, 17
officer, or employee of the program consor- 18
tium who is in a decision-making capacity 19
under subsection (f)(3) or (4) shall disclose 20
to the Secretary any financial interests in, 21
or financial relationships with, applicants 22
for or recipients of awards under this sec- 23
tion, including those of his or her spouse 24
or minor child, unless such relationships or 25
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interests would be considered to be remote 1
or inconsequential; and 2
(ii) to require any board member, offi- 3
cer, or employee with a financial relation- 4
ship or interest disclosed under clause (i) 5
to recuse himself or herself from any re- 6
view under subsection (f)(3) or oversight 7
under subsection (f)(4) with respect to 8
such applicant or recipient. 9
(B) FAILURE TO COMPLY.—The Secretary 10
may disqualify an application or revoke an 11
award under this section if a board member, of- 12
ficer, or employee has failed to comply with pro- 13
cedures required under subparagraph (A)(ii). 14
(d) SELECTION OF THE PROGRAM CONSORTIUM.— 15
(1) IN GENERAL.—The Secretary shall select 16
the program consortium through an open, competi- 17
tive process. 18
(2) MEMBERS.—The program consortium may 19
include corporations, trade associations, institutions 20
of higher education, National Laboratories, or other 21
research institutions. After submitting a proposal 22
under paragraph (4), the program consortium may 23
not add members without the consent of the Sec- 24
retary. 25
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(3) TAX STATUS.—The program consortium 1
shall be an entity that is exempt from tax under sec- 2
tion 501(c)(3) of the Internal Revenue Code of 3
1986. 4
(4) SCHEDULE.—Not later than 180 days after 5
the date of enactment of this Act, the Secretary 6
shall solicit proposals from eligible consortia to per- 7
form the duties in subsection (c)(1), which shall be 8
submitted not later than 360 days after the date of 9
enactment of this Act. The Secretary shall select the 10
program consortium not later than 18 months after 11
such date of enactment. 12
(5) APPLICATION.—Applicants shall submit a 13
proposal including such information as the Secretary 14
may require. At a minimum, each proposal shall— 15
(A) list all members of the consortium; 16
(B) fully describe the structure of the con- 17
sortium, including any provisions relating to in- 18
tellectual property; and 19
(C) describe how the applicant would carry 20
out the activities of the program consortium 21
under this section. 22
(6) ELIGIBILITY.—To be eligible to be selected 23
as the program consortium, an applicant must be an 24
entity whose members collectively have demonstrated 25
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capabilities in planning and managing research, de- 1
velopment, demonstration, and commercial applica- 2
tion programs in natural gas or other petroleum ex- 3
ploration or production. 4
(7) CRITERION.—The Secretary shall consider 5
the amount of the fee an applicant proposes to re- 6
ceive under subsection (g) in selecting a consortium 7
under this section. 8
(e) ANNUAL PLAN.— 9
(1) IN GENERAL.—The program under this sec- 10
tion shall be carried out pursuant to an annual plan 11
prepared by the Secretary in accordance with para- 12
graph (2). 13
(2) DEVELOPMENT.— 14
(A) SOLICITATION OF RECOMMENDA- 15
TIONS.—Before drafting an annual plan under 16
this subsection, the Secretary shall solicit spe- 17
cific written recommendations from the pro- 18
gram consortium for each element to be ad- 19
dressed in the plan, including those described in 20
paragraph (4). The Secretary may request that 21
the program consortium submit its rec- 22
ommendations in the form of a draft annual 23
plan. 24
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(B) SUBMISSION OF RECOMMENDATIONS; 1
OTHER COMMENT.—The Secretary shall submit 2
the recommendations of the program consor- 3
tium under subparagraph (A) to the Ultra- 4
Deepwater Advisory Committee established 5
under section 945(a) for review, and such Advi- 6
sory Committee shall provide to the Secretary 7
written comments by a date determined by the 8
Secretary. The Secretary may also solicit com- 9
ments from any other experts. 10
(C) CONSULTATION.—The Secretary shall 11
consult regularly with the program consortium 12
throughout the preparation of the annual plan. 13
(3) PUBLICATION.—The Secretary shall trans- 14
mit to Congress and publish in the Federal Register 15
the annual plan, along with any written comments 16
received under paragraph (2)(A) and (B). 17
(4) CONTENTS.—The annual plan shall describe 18
the ongoing and prospective activities of the pro- 19
gram under this section and shall include— 20
(A) a list of any solicitations for awards 21
that the Secretary plans to issue to carry out 22
research, development, demonstration, or com- 23
mercial application activities, including the top- 24
ics for such work, who would be eligible to 25
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apply, selection criteria, and the duration of 1
awards; and 2
(B) a description of the activities expected 3
of the program consortium to carry out sub- 4
section (f)(4). 5
(5) ESTIMATES OF INCREASED ROYALTY RE- 6
CEIPTS.—The Secretary, in consultation with the 7
Secretary of the Interior, shall provide an annual re- 8
port to Congress with the President’s budget on the 9
estimated cumulative increase in Federal royalty re- 10
ceipts (if any) resulting from the implementation of 11
this part. The initial report under this paragraph 12
shall be submitted in the first President’s budget fol- 13
lowing the completion of the first annual plan re- 14
quired under this subsection. 15
(f) AWARDS.— 16
(1) IN GENERAL.—The Secretary shall make 17
awards to carry out research, development, dem- 18
onstration, and commercial application activities 19
under the program under this section. The program 20
consortium shall not be eligible to receive such 21
awards, but members of the program consortium 22
may receive such awards. 23
(2) PROPOSALS.—The Secretary shall solicit 24
proposals for awards under this subsection in such 25
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manner and at such time as the Secretary may pre- 1
scribe, in consultation with the program consortium. 2
(3) REVIEW.—The Secretary shall make awards 3
under this subsection through a competitive process, 4
which shall include a review by individuals selected 5
by the Secretary. Such individuals shall include, for 6
each application, Federal officials, the program con- 7
sortium, and non-Federal experts who are not board 8
members, officers, or employees of the program con- 9
sortium or of a member of the program consortium. 10
(4) OVERSIGHT.— 11
(A) IN GENERAL.—The program consor- 12
tium shall oversee the implementation of 13
awards under this subsection, consistent with 14
the annual plan under subsection (e), including 15
disbursing funds and monitoring activities car- 16
ried out under such awards for compliance with 17
the terms and conditions of the awards. 18
(B) EFFECT.—Nothing in subparagraph 19
(A) shall limit the authority or responsibility of 20
the Secretary to oversee awards, or limit the 21
authority of the Secretary to review or revoke 22
awards. 23
(C) PROVISION OF INFORMATION.—The 24
Secretary shall provide to the program consor- 25
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tium the information necessary for the program 1
consortium to carry out its responsibilities 2
under this paragraph. 3
(g) ADMINISTRATIVE COSTS.— 4
(1) IN GENERAL.—To compensate the program 5
consortium for carrying out its activities under this 6
section, the Secretary shall provide to the program 7
consortium funds sufficient to administer the pro- 8
gram. This compensation may include a manage- 9
ment fee consistent with Department of Energy con- 10
tracting practices and procedures. 11
(2) ADVANCE.—The Secretary shall advance 12
funds to the program consortium upon selection of 13
the consortium, which shall be deducted from 14
amounts to be provided under paragraph (1). 15
(h) AUDIT.—The Secretary shall retain an inde- 16
pendent, commercial auditor to determine the extent to 17
which funds provided to the program consortium, and 18
funds provided under awards made under subsection (f), 19
have been expended in a manner consistent with the pur- 20
poses and requirements of this part. The auditor shall 21
transmit a report annually to the Secretary, who shall 22
transmit the report to Congress, along with a plan to rem- 23
edy any deficiencies cited in the report. 24
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SEC. 943. UNCONVENTIONAL NATURAL GAS AND OTHER PE- 1
TROLEUM RESOURCES PROGRAM. 2
(a) IN GENERAL.—The Secretary shall carry out ac- 3
tivities under subsection 941(b)(3), to maximize the use 4
of the onshore unconventional natural gas and other petro- 5
leum resources of the United States, by increasing the 6
supply of such resources, through reducing the cost and 7
increasing the efficiency of exploration for and production 8
of such resources, while improving safety and minimizing 9
environmental impacts. 10
(b) AWARDS.— 11
(1) IN GENERAL.—The Secretary shall carry 12
out this section through awards to research con- 13
sortia made through an open, competitive process. 14
As a condition of award of funds, qualified research 15
consortia shall— 16
(A) demonstrate capability and experience 17
in unconventional onshore natural gas or other 18
petroleum research and development; 19
(B) provide a research plan that dem- 20
onstrates how additional natural gas or oil pro- 21
duction will be achieved; and 22
(C) at the request of the Secretary, provide 23
technical advice to the Secretary for the pur- 24
poses of developing the annual plan required 25
under subsection (e). 26
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(2) PRODUCTION POTENTIAL.—The Secretary 1
shall seek to ensure that the number and types of 2
awards made under this subsection have reasonable 3
potential to lead to additional oil and natural gas 4
production on Federal lands. 5
(3) SCHEDULE.—To carry out this subsection, 6
not later than 180 days after the date of enactment 7
of this Act, the Secretary shall solicit proposals from 8
research consortia, which shall be submitted not 9
later than 360 days after the date of enactment of 10
this Act. The Secretary shall select the first group 11
of research consortia to receive awards under this 12
subsection not later than 18 months after such date 13
of enactment. 14
(c) AUDIT.—The Secretary shall retain an inde- 15
pendent, commercial auditor to determine the extent to 16
which funds provided under awards made under this sec- 17
tion have been expended in a manner consistent with the 18
purposes and requirements of this part. The auditor shall 19
transmit a report annually to the Secretary, who shall 20
transmit the report to Congress, along with a plan to rem- 21
edy any deficiencies cited in the report. 22
(d) FOCUS AREAS FOR AWARDS.— 23
(1) UNCONVENTIONAL RESOURCES.—Awards 24
from allocations under section 949(d)(2) shall focus 25
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on areas including advanced coalbed methane, deep 1
drilling, natural gas production from tight sands, 2
natural gas production from gas shales, stranded 3
gas, innovative exploration and production tech- 4
niques, enhanced recovery techniques, and environ- 5
mental mitigation of unconventional natural gas and 6
other petroleum resources exploration and produc- 7
tion. 8
(2) SMALL PRODUCERS.—Awards from alloca- 9
tions under section 949(d)(3) shall be made to con- 10
sortia consisting of small producers or organized pri- 11
marily for the benefit of small producers, and shall 12
focus on areas including complex geology involving 13
rapid changes in the type and quality of the oil and 14
gas reservoirs across the reservoir; low reservoir 15
pressure; unconventional natural gas reservoirs in 16
coalbeds, deep reservoirs, tight sands, or shales; and 17
unconventional oil reservoirs in tar sands and oil 18
shales. 19
(e) ANNUAL PLAN.— 20
(1) IN GENERAL.—The program under this sec- 21
tion shall be carried out pursuant to an annual plan 22
prepared by the Secretary in accordance with para- 23
graph (2). 24
(2) DEVELOPMENT.— 25
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(A) WRITTEN RECOMMENDATIONS.—Be- 1
fore drafting an annual plan under this sub- 2
section, the Secretary shall solicit specific writ- 3
ten recommendations from the research con- 4
sortia receiving awards under subsection (b) 5
and the Unconventional Resources Technology 6
Advisory Committee for each element to be ad- 7
dressed in the plan, including those described in 8
subparagraph (D). 9
(B) CONSULTATION.—The Secretary shall 10
consult regularly with the research consortia 11
throughout the preparation of the annual plan. 12
(C) PUBLICATION.—The Secretary shall 13
transmit to Congress and publish in the Fed- 14
eral Register the annual plan, along with any 15
written comments received under subparagraph 16
(A). 17
(D) CONTENTS.—The annual plan shall 18
describe the ongoing and prospective activities 19
under this section and shall include a list of any 20
solicitations for awards that the Secretary plans 21
to issue to carry out research, development, 22
demonstration, or commercial application activi- 23
ties, including the topics for such work, who 24
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would be eligible to apply, selection criteria, and 1
the duration of awards. 2
(3) ESTIMATES OF INCREASED ROYALTY RE- 3
CEIPTS.—The Secretary, in consultation with the 4
Secretary of the Interior, shall provide an annual re- 5
port to Congress with the President’s budget on the 6
estimated cumulative increase in Federal royalty re- 7
ceipts (if any) resulting from the implementation of 8
this part. The initial report under this paragraph 9
shall be submitted in the first President’s budget fol- 10
lowing the completion of the first annual plan re- 11
quired under this subsection. 12
(f) ACTIVITIES BY THE UNITED STATES GEOLOGI- 13
CAL SURVEY.—The Secretary of the Interior, through the 14
United States Geological Survey, shall, where appropriate, 15
carry out programs of long-term research to complement 16
the programs under this section. 17
SEC. 944. ADDITIONAL REQUIREMENTS FOR AWARDS. 18
(a) DEMONSTRATION PROJECTS.—An application for 19
an award under this part for a demonstration project shall 20
describe with specificity the intended commercial use of 21
the technology to be demonstrated. 22
(b) FLEXIBILITY IN LOCATING DEMONSTRATION 23
PROJECTS.—Subject to the limitation in section 941(c), 24
a demonstration project under this part relating to an 25
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ultra-deepwater technology or an ultra-deepwater architec- 1
ture may be conducted in deepwater depths. 2
(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 3
award under this part is made to a consortium (other than 4
the program consortium), the consortium shall provide to 5
the Secretary a signed contract agreed to by all members 6
of the consortium describing the rights of each member 7
to intellectual property used or developed under the award. 8
(d) TECHNOLOGY TRANSFER.—2.5 percent of the 9
amount of each award made under this part shall be des- 10
ignated for technology transfer and outreach activities 11
under this title. 12
(e) COST SHARING REDUCTION FOR INDEPENDENT 13
PRODUCERS.—In applying the cost sharing requirements 14
under section 972 to an award under this part the Sec- 15
retary may reduce or eliminate the non-Federal require- 16
ment if the Secretary determines that the reduction is nec- 17
essary and appropriate considering the technological risks 18
involved in the project. 19
SEC. 945. ADVISORY COMMITTEES. 20
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 21
(1) ESTABLISHMENT.—Not later than 270 days 22
after the date of enactment of this Act, the Sec- 23
retary shall establish an advisory committee to be 24
known as the Ultra-Deepwater Advisory Committee. 25
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(2) MEMBERSHIP.—The advisory committee 1
under this subsection shall be composed of members 2
appointed by the Secretary including— 3
(A) individuals with extensive research ex- 4
perience or operational knowledge of offshore 5
natural gas and other petroleum exploration 6
and production; 7
(B) individuals broadly representative of 8
the affected interests in ultra-deepwater natural 9
gas and other petroleum production, including 10
interests in environmental protection and safe 11
operations; 12
(C) no individuals who are Federal employ- 13
ees; and 14
(D) no individuals who are board members, 15
officers, or employees of the program consor- 16
tium. 17
(3) DUTIES.—The advisory committee under 18
this subsection shall— 19
(A) advise the Secretary on the develop- 20
ment and implementation of programs under 21
this part related to ultra-deepwater natural gas 22
and other petroleum resources; and 23
(B) carry out section 942(e)(2)(B). 24
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(4) COMPENSATION.—A member of the advi- 1
sory committee under this subsection shall serve 2
without compensation but shall receive travel ex- 3
penses in accordance with applicable provisions 4
under subchapter I of chapter 57 of title 5, United 5
States Code. 6
(b) UNCONVENTIONAL RESOURCES TECHNOLOGY 7
ADVISORY COMMITTEE.— 8
(1) ESTABLISHMENT.—Not later than 270 days 9
after the date of enactment of this Act, the Sec- 10
retary shall establish an advisory committee to be 11
known as the Unconventional Resources Technology 12
Advisory Committee. 13
(2) MEMBERSHIP.—The advisory committee 14
under this subsection shall be composed of members 15
appointed by the Secretary including— 16
(A) a majority of members who are em- 17
ployees or representatives of independent pro- 18
ducers of natural gas and other petroleum, in- 19
cluding small producers; 20
(B) individuals with extensive research ex- 21
perience or operational knowledge of unconven- 22
tional natural gas and other petroleum resource 23
exploration and production; 24
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(C) individuals broadly representative of 1
the affected interests in unconventional natural 2
gas and other petroleum resource exploration 3
and production, including interests in environ- 4
mental protection and safe operations; and 5
(D) no individuals who are Federal em- 6
ployees. 7
(3) DUTIES.—The advisory committee under 8
this subsection shall advise the Secretary on the de- 9
velopment and implementation of activities under 10
this part related to unconventional natural gas and 11
other petroleum resources. 12
(4) COMPENSATION.—A member of the advi- 13
sory committee under this subsection shall serve 14
without compensation but shall receive travel ex- 15
penses in accordance with applicable provisions 16
under subchapter I of chapter 57 of title 5, United 17
States Code. 18
(c) PROHIBITION.—No advisory committee estab- 19
lished under this section shall make recommendations on 20
funding awards to particular consortia or other entities, 21
or for specific projects. 22
SEC. 946. LIMITS ON PARTICIPATION. 23
An entity shall be eligible to receive an award under 24
this part only if the Secretary finds— 25
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(1) that the entity’s participation in the pro- 1
gram under this part would be in the economic in- 2
terest of the United States; and 3
(2) that either— 4
(A) the entity is a United States-owned en- 5
tity organized under the laws of the United 6
States; or 7
(B) the entity is organized under the laws 8
of the United States and has a parent entity or- 9
ganized under the laws of a country that 10
affords— 11
(i) to United States-owned entities op- 12
portunities, comparable to those afforded 13
to any other entity, to participate in any 14
cooperative research venture similar to 15
those authorized under this part; 16
(ii) to United States-owned entities 17
local investment opportunities comparable 18
to those afforded to any other entity; and 19
(iii) adequate and effective protection 20
for the intellectual property rights of 21
United States-owned entities. 22
SEC. 947. SUNSET. 23
The authority provided by this part shall terminate 24
on September 30, 2011. 25
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SEC. 948. DEFINITIONS. 1
In this part: 2
(1) DEEPWATER.—The term ‘‘deepwater’’ 3
means a water depth that is greater than 200 but 4
less than 1,500 meters. 5
(2) INDEPENDENT PRODUCER OF OIL OR 6
GAS.— 7
(A) IN GENERAL.—The term ‘‘independent 8
producer of oil or gas’’ means any person that 9
produces oil or gas other than a person to 10
whom subsection (c) of section 613A of the In- 11
ternal Revenue Code of 1986 does not apply by 12
reason of paragraph (2) (relating to certain re- 13
tailers) or paragraph (4) (relating to certain re- 14
finers) of section 613A(d) of such Code. 15
(B) RULES FOR APPLYING PARAGRAPHS (2) 16
AND (4) OF SECTION 613A(d).—For purposes of 17
subparagraph (A), paragraphs (2) and (4) of 18
section 613A(d) of the Internal Revenue Code 19
of 1986 shall be applied by substituting ‘‘cal- 20
endar year’’ for ‘‘taxable year’’ each place it ap- 21
pears in such paragraphs. 22
(3) PROGRAM CONSORTIUM.—The term ‘‘pro- 23
gram consortium’’ means the consortium selected 24
under section 942(d). 25
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(4) REMOTE OR INCONSEQUENTIAL.—The term 1
‘‘remote or inconsequential’’ has the meaning given 2
that term in regulations issued by the Office of Gov- 3
ernment Ethics under section 208(b)(2) of title 18, 4
United States Code. 5
(5) SMALL PRODUCER.—The term ‘‘small pro- 6
ducer’’ means an entity organized under the laws of 7
the United States with production levels of less than 8
1,000 barrels per day of oil equivalent. 9
(6) ULTRA-DEEPWATER.—The term ‘‘ultra- 10
deepwater’’ means a water depth that is equal to or 11
greater than 1,500 meters. 12
(7) ULTRA-DEEPWATER ARCHITECTURE.—The 13
term ‘‘ultra-deepwater architecture’’ means the inte- 14
gration of technologies for the exploration for, or 15
production of, natural gas or other petroleum re- 16
sources located at ultra-deepwater depths. 17
(8) ULTRA-DEEPWATER TECHNOLOGY.—The 18
term ‘‘ultra-deepwater technology’’ means a discrete 19
technology that is specially suited to address 1 or 20
more challenges associated with the exploration for, 21
or production of, natural gas or other petroleum re- 22
sources located at ultra-deepwater depths. 23
(9) UNCONVENTIONAL NATURAL GAS AND 24
OTHER PETROLEUM RESOURCE.—The term ‘‘uncon- 25
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ventional natural gas and other petroleum resource’’ 1
means natural gas and other petroleum resource lo- 2
cated onshore in an economically inaccessible geo- 3
logical formation, including resources of small pro- 4
ducers. 5
SEC. 949. FUNDING. 6
(a) IN GENERAL.— 7
(1) OIL AND GAS LEASE INCOME.—For each of 8
fiscal years 2004 through 2013, from any Federal 9
royalties, rents, and bonuses derived from Federal 10
onshore and offshore oil and gas leases issued under 11
the Outer Continental Shelf Lands Act and the Min- 12
eral Leasing Act which are deposited in the Treas- 13
ury, and after distribution of any such funds as de- 14
scribed in subsection (c), $150,000,000 shall be de- 15
posited into the Ultra-Deepwater and Unconven- 16
tional Natural Gas and Other Petroleum Research 17
Fund (in this section referred to as the Fund). For 18
purposes of this section, the term ‘‘royalties’’ ex- 19
cludes proceeds from the sale of royalty production 20
taken in kind and royalty production that is trans- 21
ferred under section 27(a)(3) of the Outer Conti- 22
nental Shelf Lands Act (43 U.S.C. 1353(a)(3)). 23
(2) AUTHORIZATION OF APPROPRIATIONS.—In 24
addition to amounts described in paragraph (1), 25
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there are authorized to be appropriated to the Sec- 1
retary, to be deposited in the Fund, $50,000,000 for 2
each of the fiscal years 2004 through 2013, to re- 3
main available until expended. 4
(b) OBLIGATIONAL AUTHORITY.—Monies in the 5
Fund shall be available to the Secretary for obligation 6
under this part without fiscal year limitation, to remain 7
available until expended. 8
(c) PRIOR DISTRIBUTIONS.—The distributions de- 9
scribed in subsection (a) are those required by law— 10
(A) to States and to the Reclamation Fund 11
under the Mineral Leasing Act (30 U.S.C. 12
191(a)); and 13
(B) to other funds receiving monies from 14
Federal oil and gas leasing programs, 15
including— 16
(i) any recipients pursuant to section 17
8(g) of the Outer Continental Shelf Lands 18
Act (43 U.S.C. 1337(g)); 19
(ii) the Land and Water Conservation 20
Fund, pursuant to section 2(c) of the Land 21
and Water Conservation Fund Act of 1965 22
(16 U.S.C. 4601–5(c)); 23
(iii) the Historic Preservation Fund, 24
pursuant to section 108 of the National 25
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Historic Preservation Act (16 U.S.C. 1
470h); and 2
(iv) the Secure Energy Reinvestment 3
Fund. 4
(d) ALLOCATION.—Amounts obligated from the Fund 5
under this section in each fiscal year shall be allocated 6
as follows: 7
(1) 50 percent shall be for activities under sec- 8
tion 942. 9
(2) 35 percent shall be for activities under sec- 10
tion 943(d)(1). 11
(3) 10 percent shall be for activities under sec- 12
tion 943(d)(2). 13
(4) 5 percent shall be for research under section 14
941(d). 15
(e) FUND.—There is hereby established in the Treas- 16
ury of the United States a separate fund to be known as 17
the ‘‘Ultra-Deepwater and Unconventional Natural Gas 18
and Other Petroleum Research Fund’’. 19
Subtitle F—Science 20
SEC. 951. SCIENCE. 21
(a) IN GENERAL.—The following sums are author- 22
ized to be appropriated to the Secretary for research, de- 23
velopment, demonstration, and commercial application ac- 24
tivities of the Office of Science, including activities author- 25
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ized under this subtitle, including the amounts authorized 1
under the amendment made by section 958(c)(2)(C), and 2
including basic energy sciences, advanced scientific com- 3
puting research, biological and environmental research, fu- 4
sion energy sciences, high energy physics, nuclear physics, 5
and research analysis and infrastructure support: 6
(1) For fiscal year 2004, $3,785,000,000. 7
(2) For fiscal year 2005, $4,153,000,000. 8
(3) For fiscal year 2006, $4,618,000,000. 9
(4) For fiscal year 2007, $5,310,000,000. 10
(5) For fiscal year 2008, $5,800,000,000. 11
(b) ALLOCATIONS.—From amounts authorized under 12
subsection (a), the following sums are authorized: 13
(1) For activities of the Fusion Energy Sciences 14
Program, including activities under sections 952 and 15
953— 16
(A) for fiscal year 2004, $335,000,000; 17
(B) for fiscal year 2005, $349,000,000; 18
(C) for fiscal year 2006, $362,000,000; 19
(D) for fiscal year 2007, $377,000,000; 20
and 21
(E) for fiscal year 2008, $393,000,000. 22
(2) For the Spallation Neutron Source— 23
(A) for construction in fiscal year 2004, 24
$124,600,000; 25
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(B) for construction in fiscal year 2005, 1
$79,800,000; 2
(C) for completion of construction in fiscal 3
year 2006, $41,100,000; and 4
(D) for other project costs (including re- 5
search and development necessary to complete 6
the project, preoperations costs, and capital 7
equipment related to construction), 8
$103,279,000 for the period encompassing fis- 9
cal years 2003 through 2006, to remain avail- 10
able until expended through September 30, 11
2006. 12
(3) For Catalysis Research activities under sec- 13
tion 956— 14
(A) for fiscal year 2004, $33,000,000; 15
(B) for fiscal year 2005, $35,000,000; 16
(C) for fiscal year 2006, $36,500,000; 17
(D) for fiscal year 2007, $38,200,000; and 18
(E) for fiscal year 2008, $40,100,000. 19
(4) For Nanoscale Science and Engineering Re- 20
search activities under section 957— 21
(A) for fiscal year 2004, $270,000,000; 22
(B) for fiscal year 2005, $292,000,000; 23
(C) for fiscal year 2006, $322,000,000; 24
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(D) for fiscal year 2007, $355,000,000; 1
and 2
(E) for fiscal year 2008, $390,000,000. 3
(5) For activities under section 957(c), from 4
the amounts authorized under paragraph (4) of this 5
subsection— 6
(A) for fiscal year 2004, $135,000,000; 7
(B) for fiscal year 2005, $150,000,000; 8
(C) for fiscal year 2006, $120,000,000; 9
(D) for fiscal year 2007, $100,000,000; 10
and 11
(E) for fiscal year 2008, $125,000,000. 12
(6) For activities in the Genomes to Life Pro- 13
gram under section 959— 14
(A) for fiscal year 2004, $100,000,000; 15
and 16
(B) for fiscal years 2005 through 2008, 17
such sums as may be necessary. 18
(7) For activities in the Energy-Water Supply 19
Program under section 961, $30,000,000 for each of 20
fiscal years 2004 through 2008. 21
(c) ITER CONSTRUCTION.—In addition to the funds 22
authorized under subsection (b)(1), such sums as may be 23
necessary for costs associated with ITER construction, 24
consistent with limitations under section 952. 25
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SEC. 952. UNITED STATES PARTICIPATION IN ITER. 1
(a) IN GENERAL.—The United States may partici- 2
pate in ITER in accordance with the provisions of this 3
section. 4
(b) AGREEMENT.— 5
(1) IN GENERAL.—The Secretary is authorized 6
to negotiate an agreement for United States partici- 7
pation in ITER. 8
(2) CONTENTS.—Any agreement for United 9
States participation in ITER shall, at a minimum— 10
(A) clearly define the United States finan- 11
cial contribution to construction and operating 12
costs; 13
(B) ensure that the share of ITER’s high- 14
technology components manufactured in the 15
United States is at least proportionate to the 16
United States financial contribution to ITER; 17
(C) ensure that the United States will not 18
be financially responsible for cost overruns in 19
components manufactured in other ITER par- 20
ticipating countries; 21
(D) guarantee the United States full ac- 22
cess to all data generated by ITER; 23
(E) enable United States researchers to 24
propose and carry out an equitable share of the 25
experiments at ITER; 26
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(F) provide the United States with a role 1
in all collective decisionmaking related to ITER; 2
and 3
(G) describe the process for discontinuing 4
or decommissioning ITER and any United 5
States role in those processes. 6
(c) PLAN.—The Secretary, in consultation with the 7
Fusion Energy Sciences Advisory Committee, shall de- 8
velop a plan for the participation of United States sci- 9
entists in ITER that shall include the United States re- 10
search agenda for ITER, methods to evaluate whether 11
ITER is promoting progress toward making fusion a reli- 12
able and affordable source of power, and a description of 13
how work at ITER will relate to other elements of the 14
United States fusion program. The Secretary shall request 15
a review of the plan by the National Academy of Sciences. 16
(d) LIMITATION.—No funds shall be expended for the 17
construction of ITER until the Secretary has transmitted 18
to Congress— 19
(1) the agreement negotiated pursuant to sub- 20
section (b) and 120 days have elapsed since that 21
transmission; 22
(2) a report describing the management struc- 23
ture of ITER and providing a fixed dollar estimate 24
of the cost of United States participation in the con- 25
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struction of ITER, and 120 days have elapsed since 1
that transmission; 2
(3) a report describing how United States par- 3
ticipation in ITER will be funded without reducing 4
funding for other programs in the Office of Science, 5
including other fusion programs, and 60 days have 6
elapsed since that transmission; and 7
(4) the plan required by subsection (c) (but not 8
the National Academy of Sciences review of that 9
plan), and 60 days have elapsed since that trans- 10
mission. 11
(e) ALTERNATIVE TO ITER.—If at any time during 12
the negotiations on ITER, the Secretary determines that 13
construction and operation of ITER is unlikely or infeasi- 14
ble, the Secretary shall send to Congress, as part of the 15
budget request for the following year, a plan for imple- 16
menting the domestic burning plasma experiment known 17
as FIRE, including costs and schedules for such a plan. 18
The Secretary shall refine such plan in full consultation 19
with the Fusion Energy Sciences Advisory Committee and 20
shall also transmit such plan to the National Academy of 21
Sciences for review. 22
(f) DEFINITIONS.—In this section and sections 23
951(b)(1) and (c): 24
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(1) CONSTRUCTION.—The term ‘‘construction’’ 1
means the physical construction of the ITER facil- 2
ity, and the physical construction, purchase, or man- 3
ufacture of equipment or components that are spe- 4
cifically designed for the ITER facility, but does not 5
mean the design of the facility, equipment, or com- 6
ponents. 7
(2) FIRE.—The term ‘‘FIRE’’ means the Fu- 8
sion Ignition Research Experiment, the fusion re- 9
search experiment for which design work has been 10
supported by the Department as a possible alter- 11
native burning plasma experiment in the event that 12
ITER fails to move forward. 13
(3) ITER.—The term ‘‘ITER’’ means the 14
international burning plasma fusion research project 15
in which the President announced United States 16
participation on January 30, 2003. 17
SEC. 953. PLAN FOR FUSION ENERGY SCIENCES PROGRAM. 18
(a) DECLARATION OF POLICY.—It shall be the policy 19
of the United States to conduct research, development, 20
demonstration, and commercial application to provide for 21
the scientific, engineering, and commercial infrastructure 22
necessary to ensure that the United States is competitive 23
with other nations in providing fusion energy for its own 24
needs and the needs of other nations, including by dem- 25
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onstrating electric power or hydrogen production for the 1
United States energy grid utilizing fusion energy at the 2
earliest date possible. 3
(b) PLANNING.— 4
(1) IN GENERAL.—Not later than 180 days 5
after the date of enactment of this Act, the Sec- 6
retary shall present to Congress a plan, with pro- 7
posed cost estimates, budgets, and potential inter- 8
national partners, for the implementation of the pol- 9
icy described in subsection (a). The plan shall ensure 10
that— 11
(A) existing fusion research facilities are 12
more fully utilized; 13
(B) fusion science, technology, theory, ad- 14
vanced computation, modeling, and simulation 15
are strengthened; 16
(C) new magnetic and inertial fusion re- 17
search facilities are selected based on scientific 18
innovation, cost effectiveness, and their poten- 19
tial to advance the goal of practical fusion en- 20
ergy at the earliest date possible, and those that 21
are selected are funded at a cost-effective rate; 22
(D) communication of scientific results and 23
methods between the fusion energy science com- 24
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munity and the broader scientific and tech- 1
nology communities is improved; 2
(E) inertial confinement fusion facilities 3
are utilized to the extent practicable for the 4
purpose of inertial fusion energy research and 5
development; and 6
(F) attractive alternative inertial and mag- 7
netic fusion energy approaches are more fully 8
explored. 9
(2) COSTS AND SCHEDULES.—Such plan shall 10
also address the status of and, to the degree pos- 11
sible, costs and schedules for— 12
(A) in coordination with the program 13
under section 960, the design and implementa- 14
tion of international or national facilities for the 15
testing of fusion materials; and 16
(B) the design and implementation of 17
international or national facilities for the test- 18
ing and development of key fusion technologies. 19
SEC. 954. SPALLATION NEUTRON SOURCE. 20
(a) DEFINITION.—For the purposes of this section, 21
the term ‘‘Spallation Neutron Source’’ means Department 22
Project 99–E–334, Oak Ridge National Laboratory, Oak 23
Ridge, Tennessee. 24
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(b) REPORT.—The Secretary shall report on the 1
Spallation Neutron Source as part of the Department’s 2
annual budget submission, including a description of the 3
achievement of milestones, a comparison of actual costs 4
to estimated costs, and any changes in estimated project 5
costs or schedule. 6
(c) LIMITATIONS.—The total amount obligated by the 7
Department, including prior year appropriations, for the 8
Spallation Neutron Source shall not exceed— 9
(1) $1,192,700,000 for costs of construction; 10
(2) $219,000,000 for other project costs; and 11
(3) $1,411,700,000 for total project cost. 12
SEC. 955. SUPPORT FOR SCIENCE AND ENERGY FACILITIES 13
AND INFRASTRUCTURE. 14
(a) FACILITY AND INFRASTRUCTURE POLICY.—The 15
Secretary shall develop and implement a strategy for fa- 16
cilities and infrastructure supported primarily from the 17
Office of Science, the Office of Energy Efficiency and Re- 18
newable Energy, the Office of Fossil Energy, or the Office 19
of Nuclear Energy, Science, and Technology Programs at 20
all National Laboratories and single-purpose research fa- 21
cilities. Such strategy shall provide cost-effective means 22
for— 23
(1) maintaining existing facilities and infra- 24
structure, as needed; 25
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(2) closing unneeded facilities; 1
(3) making facility modifications; and 2
(4) building new facilities. 3
(b) REPORT.— 4
(1) IN GENERAL.—The Secretary shall prepare 5
and transmit, along with the President’s budget re- 6
quest to Congress for fiscal year 2006, a report con- 7
taining the strategy developed under subsection (a). 8
(2) CONTENTS.—For each National Laboratory 9
and single-purpose research facility, for the facilities 10
primarily used for science and energy research, such 11
report shall contain— 12
(A) the current priority list of proposed fa- 13
cilities and infrastructure projects, including 14
cost and schedule requirements; 15
(B) a current 10-year plan that dem- 16
onstrates the reconfiguration of its facilities and 17
infrastructure to meet its missions and to ad- 18
dress its long-term operational costs and return 19
on investment; 20
(C) the total current budget for all facili- 21
ties and infrastructure funding; and 22
(D) the current status of each facility and 23
infrastructure project compared to the original 24
baseline cost, schedule, and scope. 25
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SEC. 956. CATALYSIS RESEARCH AND DEVELOPMENT PRO- 1
GRAM. 2
(a) ESTABLISHMENT.—The Secretary, through the 3
Office of Science, shall support a program of research and 4
development in catalysis science consistent with the De- 5
partment’s statutory authorities related to research and 6
development. The program shall include efforts to— 7
(1) enable catalyst design using combinations of 8
experimental and mechanistic methodologies coupled 9
with computational modeling of catalytic reactions at 10
the molecular level; 11
(2) develop techniques for high throughput syn- 12
thesis, assay, and characterization at nanometer and 13
subnanometer scales in situ under actual operating 14
conditions; 15
(3) synthesize catalysts with specific site archi- 16
tectures; 17
(4) conduct research on the use of precious 18
metals for catalysis; and 19
(5) translate molecular understanding to the 20
design of catalytic compounds. 21
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car- 22
rying out the program under this section, the Director of 23
the Office of Science shall— 24
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(1) support both individual investigators and 1
multidisciplinary teams of investigators to pioneer 2
new approaches in catalytic design; 3
(2) develop, plan, construct, acquire, share, or 4
operate special equipment or facilities for the use of 5
investigators in collaboration with national user fa- 6
cilities such as nanoscience and engineering centers; 7
(3) support technology transfer activities to 8
benefit industry and other users of catalysis science 9
and engineering; and 10
(4) coordinate research and development activi- 11
ties with industry and other Federal agencies. 12
(c) TRIENNIAL ASSESSMENT.—The National Acad- 13
emy of Sciences shall review the catalysis program every 14
3 years to report on gains made in the fundamental 15
science of catalysis and its progress towards developing 16
new fuels for energy production and material fabrication 17
processes. 18
SEC. 957. NANOSCALE SCIENCE AND ENGINEERING RE- 19
SEARCH, DEVELOPMENT, DEMONSTRATION, 20
AND COMMERCIAL APPLICATION. 21
(a) ESTABLISHMENT.—The Secretary, acting 22
through the Office of Science, shall support a program of 23
research, development, demonstration, and commercial ap- 24
plication in nanoscience and nanoengineering. The pro- 25
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gram shall include efforts to further the understanding of 1
the chemistry, physics, materials science, and engineering 2
of phenomena on the scale of nanometers and to apply 3
that knowledge to the Department’s mission areas. 4
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car- 5
rying out the program under this section, the Office of 6
Science shall— 7
(1) support both individual investigators and 8
teams of investigators, including multidisciplinary 9
teams; 10
(2) carry out activities under subsection (c); 11
(3) support technology transfer activities to 12
benefit industry and other users of nanoscience and 13
nanoengineering; 14
(4) coordinate research and development activi- 15
ties with other Department programs, industry, and 16
other Federal agencies; 17
(5) ensure that societal and ethical concerns 18
will be addressed as the technology is developed by— 19
(A) establishing a research program to 20
identify societal and ethical concerns related to 21
nanotechnology, and ensuring that the results 22
of such research are widely disseminated; and 23
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(B) integrating, insofar as possible, re- 1
search on societal and ethical concerns with 2
nanotechnology research and development; and 3
(6) ensure that the potential of nanotechnology 4
to produce or facilitate the production of clean, inex- 5
pensive energy is realized by supporting 6
nanotechnology energy applications research and de- 7
velopment. 8
(c) NANOSCIENCE AND NANOENGINEERING RE- 9
SEARCH CENTERS AND MAJOR INSTRUMENTATION.— 10
(1) IN GENERAL.—The Secretary shall carry 11
out projects to develop, plan, construct, acquire, op- 12
erate, or support special equipment, instrumenta- 13
tion, or facilities for investigators conducting re- 14
search and development in nanoscience and 15
nanoengineering. 16
(2) ACTIVITIES.—Projects under paragraph (1) 17
may include the measurement of properties at the 18
scale of nanometers, manipulation at such scales, 19
and the integration of technologies based on 20
nanoscience or nanoengineering into bulk materials 21
or other technologies. 22
(3) FACILITIES.—Facilities under paragraph 23
(1) may include electron microcharacterization facili- 24
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ties, microlithography facilities, scanning probe fa- 1
cilities, and related instrumentation. 2
(4) COLLABORATIONS.—The Secretary shall en- 3
courage collaborations among Department programs, 4
institutions of higher education, laboratories, and in- 5
dustry at facilities under this subsection. 6
SEC. 958. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY 7
MISSIONS. 8
(a) IN GENERAL.—The Secretary, acting through the 9
Office of Science, shall support a program to advance the 10
Nation’s computing capability across a diverse set of 11
grand challenge, computationally based, science problems 12
related to departmental missions. 13
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car- 14
rying out the program under this section, the Office of 15
Science shall— 16
(1) advance basic science through computation 17
by developing software to solve grand challenge 18
science problems on new generations of computing 19
platforms in collaboration with other Department 20
program offices; 21
(2) enhance the foundations for scientific com- 22
puting by developing the basic mathematical and 23
computing systems software needed to take full ad- 24
vantage of the computing capabilities of computers 25
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with peak speeds of 100 teraflops or more, some of 1
which may be unique to the scientific problem of in- 2
terest; 3
(3) enhance national collaboratory and net- 4
working capabilities by developing software to inte- 5
grate geographically separated researchers into ef- 6
fective research teams and to facilitate access to and 7
movement and analysis of large (petabyte) data sets; 8
(4) develop and maintain a robust scientific 9
computing hardware infrastructure to ensure that 10
the computing resources needed to address depart- 11
mental missions are available; and 12
(5) explore new computing approaches and 13
technologies that promise to advance scientific com- 14
puting, including developments in quantum com- 15
puting. 16
(c) HIGH-PERFORMANCE COMPUTING ACT OF 1991 17
AMENDMENTS.—The High-Performance Computing Act 18
of 1991 is amended— 19
(1) in section 4 (15 U.S.C. 5503)— 20
(A) in paragraph (3) by striking ‘‘means’’ 21
and inserting ‘‘and networking and information 22
technology mean’’, and by striking ‘‘(including 23
vector supercomputers and large scale parallel 24
systems)’’; and 25
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(B) in paragraph (4), by striking ‘‘packet 1
switched’’; and 2
(2) in section 203 (15 U.S.C. 5523)— 3
(A) in subsection (a), by striking all after 4
‘‘As part of the’’ and inserting ‘‘Networking 5
and Information Technology Research and De- 6
velopment Program, the Secretary of Energy 7
shall conduct basic and applied research in net- 8
working and information technology, with em- 9
phasis on supporting fundamental research in 10
the physical sciences and engineering, and en- 11
ergy applications; providing supercomputer ac- 12
cess and advanced communication capabilities 13
and facilities to scientific researchers; and de- 14
veloping tools for distributed scientific collabo- 15
ration.’’; 16
(B) in subsection (b), by striking ‘‘Pro- 17
gram’’ and inserting ‘‘Networking and Informa- 18
tion Technology Research and Development 19
Program’’; and 20
(C) by amending subsection (e) to read as 21
follows: 22
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 23
are authorized to be appropriated to the Secretary of En- 24
ergy to carry out the Networking and Information Tech- 25
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nology Research and Development Program such sums as 1
may be necessary for fiscal years 2004 through 2008.’’. 2
(d) COORDINATION.—The Secretary shall ensure that 3
the program under this section is integrated and con- 4
sistent with— 5
(1) the Advanced Simulation and Computing 6
Program, formerly known as the Accelerated Stra- 7
tegic Computing Initiative, of the National Nuclear 8
Security Administration; and 9
(2) other national efforts related to advanced 10
scientific computing for science and engineering. 11
(e) REPORT.— 12
(1) IN GENERAL.—Before undertaking any new 13
initiative to develop any new advanced architecture 14
for high-speed computing, the Secretary, through the 15
Director of the Office of Science, shall transmit a re- 16
port to Congress describing— 17
(A) the expected duration and cost of the 18
initiative; 19
(B) the technical milestones the initiative 20
is designed to achieve; 21
(C) how institutions of higher education 22
and private firms will participate in the initia- 23
tive; and 24
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(D) why the goals of the initiative could 1
not be achieved through existing programs. 2
(2) LIMITATION.—No funds may be expended 3
on any initiative described in paragraph (1) until 30 4
days after the report required by that paragraph is 5
transmitted to Congress. 6
SEC. 959. GENOMES TO LIFE PROGRAM. 7
(a) PROGRAM.— 8
(1) ESTABLISHMENT.—The Secretary shall es- 9
tablish a research, development, and demonstration 10
program in genetics, protein science, and computa- 11
tional biology to support the energy, national secu- 12
rity, and environmental mission of the Department. 13
(2) GRANTS.—The program shall support indi- 14
vidual investigators and multidisciplinary teams of 15
investigators through competitive, merit-reviewed 16
grants. 17
(3) CONSULTATION.—In carrying out the pro- 18
gram, the Secretary shall consult with other Federal 19
agencies that conduct genetic and protein research. 20
(b) GOALS.—The program shall have the goal of de- 21
veloping technologies and methods based on the biological 22
functions of genomes, microbes, and plants that— 23
(1) can facilitate the production of fuels, includ- 24
ing hydrogen; 25
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(2) convert carbon dioxide to organic carbon; 1
(3) improve national security and combat ter- 2
rorism; 3
(4) detoxify soils and water at Department fa- 4
cilities contaminated with heavy metals and radio- 5
logical materials; and 6
(5) address other Department missions as iden- 7
tified by the Secretary. 8
(c) PLAN.— 9
(1) DEVELOPMENT OF PLAN.—Not later than 1 10
year after the date of enactment of this Act, the 11
Secretary shall prepare and transmit to Congress a 12
research plan describing how the program author- 13
ized pursuant to this section will be undertaken to 14
accomplish the program goals established in sub- 15
section (b). 16
(2) REVIEW OF PLAN.—The Secretary shall 17
contract with the National Academy of Sciences to 18
review the research plan developed under this sub- 19
section. The Secretary shall transmit the review to 20
Congress not later than 18 months after transmittal 21
of the research plan under paragraph (1), along with 22
the Secretary’s response to the recommendations 23
contained in the review. 24
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(d) GENOMES TO LIFE USER FACILITIES AND AN- 1
CILLARY EQUIPMENT.— 2
(1) IN GENERAL.—Within the funds authorized 3
to be appropriated pursuant to this Act, the 4
amounts specified under section 951(b)(6) shall, 5
subject to appropriations, be available for projects to 6
develop, plan, construct, acquire, or operate special 7
equipment, instrumentation, or facilities for inves- 8
tigators conducting research, development, dem- 9
onstration, and commercial application in systems 10
biology and proteomics and associated biological dis- 11
ciplines. 12
(2) FACILITIES.—Facilities under paragraph 13
(1) may include facilities, equipment, or instrumen- 14
tation for— 15
(A) the production and characterization of 16
proteins; 17
(B) whole proteome analysis; 18
(C) characterization and imaging of molec- 19
ular machines; and 20
(D) analysis and modeling of cellular sys- 21
tems. 22
(3) COLLABORATIONS.—The Secretary shall en- 23
courage collaborations among universities, labora- 24
tories, and industry at facilities under this sub- 25
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section. All facilities under this subsection shall have 1
a specific mission of technology transfer to other in- 2
stitutions. 3
(e) PROHIBITION ON BIOMEDICAL AND HUMAN CELL 4
AND HUMAN SUBJECT RESEARCH.— 5
(1) NO BIOMEDICAL RESEARCH.—In carrying 6
out the program under this section, the Secretary 7
shall not conduct biomedical research. 8
(2) LIMITATIONS.—Nothing in this section shall 9
authorize the Secretary to conduct any research or 10
demonstrations— 11
(A) on human cells or human subjects; or 12
(B) designed to have direct application 13
with respect to human cells or human subjects. 14
SEC. 960. FISSION AND FUSION ENERGY MATERIALS RE- 15
SEARCH PROGRAM. 16
In the President’s fiscal year 2006 budget request, 17
the Secretary shall establish a research and development 18
program on material science issues presented by advanced 19
fission reactors and the Department’s fusion energy pro- 20
gram. The program shall develop a catalog of material 21
properties required for these applications, develop theo- 22
retical models for materials possessing the required prop- 23
erties, benchmark models against existing data, and de- 24
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velop a roadmap to guide further research and develop- 1
ment in this area. 2
SEC. 961. ENERGY-WATER SUPPLY PROGRAM. 3
(a) ESTABLISHMENT.—There is established within 4
the Department the Energy-Water Supply Program, to 5
study energy-related and certain other issues associated 6
with the supply of drinking water and operation of com- 7
munity water systems and to study water supply issues 8
related to energy. 9
(b) DEFINITIONS.—For the purposes of this section: 10
(1) ADMINISTRATOR.—The term ‘‘Adminis- 11
trator’’ means the Administrator of the Environ- 12
mental Protection Agency. 13
(2) AGENCY.—The term ‘‘Agency’’ means the 14
Environmental Protection Agency. 15
(3) FOUNDATION.—The term ‘‘Foundation’’ 16
means the American Water Works Association Re- 17
search Foundation. 18
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 19
has the meaning given the term in section 4 of the 20
Indian Self-Determination and Education Assistance 21
Act (25 U.S.C. 450b). 22
(5) PROGRAM.—The term ‘‘Program’’ means 23
the Energy-Water Supply Program established by 24
this section. 25
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(c) PROGRAM AREAS.—The Program shall develop 1
methods, means, procedures, equipment, and improved 2
technologies relating to— 3
(1) the arsenic removal program under sub- 4
section (d); 5
(2) the desalination program under subsection 6
(e); and 7
(3) the water and energy sustainability program 8
under subsection (f). 9
(d) ARSENIC REMOVAL PROGRAM.— 10
(1) IN GENERAL.—As soon as practicable after 11
the date of enactment of this Act, the Secretary, in 12
coordination with the Administrator and in partner- 13
ship with the Foundation, shall utilize the facilities, 14
institutions, and relationships established in the 15
Consolidated Appropriations Resolution, 2003 as de- 16
scribed in Senate Report 107–220 to carry out a re- 17
search program to provide innovative methods and 18
means for removal of arsenic. 19
(2) REQUIRED EVALUATIONS.—The program 20
shall, to the maximum extent practicable, evaluate 21
the means of— 22
(A) reducing energy costs incurred in 23
using arsenic removal technologies; 24
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(B) minimizing materials, operating, and 1
maintenance costs; and 2
(C) minimizing any quantities of waste (es- 3
pecially hazardous waste) that result from use 4
of arsenic removal technologies. 5
(3) PEER REVIEW.—Where applicable and rea- 6
sonably available, projects undertaken under this 7
subsection shall be peer-reviewed. 8
(4) COMMUNITY WATER SYSTEMS.—In carrying 9
out the program under this subsection, the Sec- 10
retary, in coordination with the Administrator, 11
shall— 12
(A) select projects involving a geographi- 13
cally and hydrologically diverse group of com- 14
munity water systems (as defined in section 15
1003 of the Public Health Service Act (42 16
U.S.C. 300)) and water chemistries, that have 17
experienced technical or economic difficulties in 18
providing drinking water with levels of arsenic 19
at 10 parts-per-billion or lower, which projects 20
shall be designed to develop innovative methods 21
and means to deliver drinking water that con- 22
tains less than 10 parts per billion of arsenic; 23
and 24
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(B) provide not less than 40 percent of all 1
funds spent pursuant to this subsection to ad- 2
dress the needs of, and in collaboration with, 3
rural communities or Indian tribes. 4
(5) COST EFFECTIVENESS.—The Foundation 5
shall create methods for determining cost effective- 6
ness of arsenic removal technologies used in the pro- 7
gram. 8
(6) EDUCATION, TRAINING, AND TECH- 9
NOLOGY.—The Foundation shall include education, 10
training, and technology transfer as part of the pro- 11
gram. 12
(7) COORDINATION.—The Secretary shall con- 13
sult with the Administrator to ensure that all activi- 14
ties conducted under the program are coordinated 15
with the Agency and do not duplicate other pro- 16
grams in the Agency and other Federal agencies, 17
State programs, and academia. 18
(8) REPORTS.—Not later than 1 year after the 19
date of commencement of the program under this 20
subsection, and once every year thereafter, the Sec- 21
retary shall submit to the Committee on Energy and 22
Commerce of the House of Representatives and the 23
Committee on Environment and Public Works and 24
the Committee on Energy and Natural Resources of 25
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the Senate a report on the results of the program 1
under this subsection. 2
(e) DESALINATION PROGRAM.— 3
(1) IN GENERAL.—The Secretary, in coopera- 4
tion with the Commissioner of Reclamation of the 5
Department of the Interior, shall carry out a pro- 6
gram to conduct research and develop methods and 7
means for desalination in accordance with the desali- 8
nation technology progress plan developed under 9
title II of the Energy and Water Development Ap- 10
propriations Act, 2002 (115 Stat. 498), and de- 11
scribed in Senate Report 107–39 under the heading 12
‘‘WATER AND RELATED RESOURCES’’ in the ‘‘BU- 13
REAU OF RECLAMATION’’ section. 14
(2) REQUIREMENTS.—The desalination pro- 15
gram shall— 16
(A) use the resources of the Department 17
and the Department of the Interior that were 18
involved in the development of the 2003 Na- 19
tional Desalination and Water Purification 20
Technology Roadmap for next-generation de- 21
salination technology; 22
(B) focus on technologies that are appro- 23
priate for use in desalinating brackish ground- 24
water, drinking water, wastewater and other sa- 25
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line water supplies, or disposal of residual brine 1
or salt; and 2
(C) consider the use of renewable energy 3
sources. 4
(3) CONSTRUCTION PROJECTS.—Funds made 5
available to carry out this subsection may be used 6
for construction projects, including completion of the 7
National Desalination Research Center for brackish 8
groundwater and ongoing operational costs of this 9
facility. 10
(4) STEERING COMMITTEE.—The Secretary and 11
the Commissioner of Reclamation of the Department 12
of the Interior shall jointly establish a steering com- 13
mittee for activities conducted under this subsection. 14
The steering committee shall be jointly chaired by 1 15
representative from the program and 1 representa- 16
tive from the Bureau of Reclamation. 17
(f) WATER AND ENERGY SUSTAINABILITY PRO- 18
GRAM.— 19
(1) IN GENERAL.—The Secretary shall develop 20
a program to identify methods, means, procedures, 21
equipment, and improved technologies necessary to 22
ensure that sufficient quantities of water are avail- 23
able to meet energy needs and sufficient energy is 24
available to meet water needs. 25
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(2) ASSESSMENTS.—In order to acquire infor- 1
mation and avoid duplication, the Secretary shall 2
work in collaboration with the Secretary of the Inte- 3
rior, the Army Corps of Engineers, the Adminis- 4
trator, the Secretary of Commerce, the Secretary of 5
Defense, relevant State agencies, nongovernmental 6
organizations, and academia, to assess— 7
(A) future water resources needed to sup- 8
port energy development and production within 9
the United States including water used for hy- 10
dropower, and production of, or electricity gen- 11
eration by, hydrogen, biomass, fossil fuels, and 12
nuclear fuel; 13
(B) future energy resources needed to sup- 14
port water purification and wastewater treat- 15
ment, including desalination and water convey- 16
ance; 17
(C) use of impaired and nontraditional 18
water supplies for energy production other than 19
oil and gas extraction; 20
(D) technology and programs for improv- 21
ing water use efficiency; and 22
(E) technologies to reduce water use in en- 23
ergy development and production. 24
(3) ROADMAP; TOOLS.—The Secretary shall— 25
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(A) develop a program plan and technology 1
development roadmap for the Water and En- 2
ergy Sustainability Program to identify sci- 3
entific and technical requirements and activities 4
that are required to support planning for en- 5
ergy sustainability under current and potential 6
future conditions of water availability, use of 7
impaired water for energy production and other 8
uses, and reduction of water use in energy de- 9
velopment and production; 10
(B) develop tools for national and local en- 11
ergy and water sustainability planning, includ- 12
ing numerical models, decision analysis tools, 13
economic analysis tools, databases, and plan- 14
ning methodologies and strategies; 15
(C) implement at least 3 planning projects 16
involving energy development or production that 17
use the tools described in subparagraph (B) 18
and assess the viability of those tools at the 19
scale of river basins with at least 1 demonstra- 20
tion involving an international border; and 21
(D) transfer those tools to other Federal 22
agencies, State agencies, nonprofit organiza- 23
tions, industry, and academia. 24
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(4) REPORT.—Not later than 1 year after the 1
date of enactment of this Act, the Secretary shall 2
submit to Congress a report on the Water and En- 3
ergy Sustainability Program that— 4
(A) includes the results of the assessment 5
under paragraph (2) and the program plan and 6
technology development roadmap; and 7
(B) identifies policy, legal, and institu- 8
tional issues related to water and energy sus- 9
tainability. 10
SEC. 962. NITROGEN FIXATION. 11
The Secretary, acting through the Office of Science, 12
shall support a program of research, development, dem- 13
onstration, and commercial application on biological nitro- 14
gen fixation, including plant genomics research relevant 15
to the development of commercial crop varieties with en- 16
hanced nitrogen fixation efficiency and ability. 17
Subtitle G—Energy and 18
Environment 19
SEC. 964. UNITED STATES-MEXICO ENERGY TECHNOLOGY 20
COOPERATION. 21
(a) PROGRAM.—The Secretary shall establish a re- 22
search, development, demonstration, and commercial ap- 23
plication program to be carried out in collaboration with 24
entities in Mexico and the United States to promote en- 25
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ergy efficient, environmentally sound economic develop- 1
ment along the United States-Mexico border that mini- 2
mizes public health risks from industrial activities in the 3
border region. 4
(b) PROGRAM MANAGEMENT.—The program under 5
subsection (a) shall be managed by the Department of En- 6
ergy Carlsbad Environmental Management Field Office. 7
(c) TECHNOLOGY TRANSFER.—In carrying out 8
projects and activities under this section, the Secretary 9
shall assess the applicability of technology developed under 10
the Environmental Management Science Program of the 11
Department. 12
(d) INTELLECTUAL PROPERTY.—In carrying out this 13
section, the Secretary shall comply with the requirements 14
of any agreement entered into between the United States 15
and Mexico regarding intellectual property protection. 16
(e) AUTHORIZATION OF APPROPRIATIONS.—The fol- 17
lowing sums are authorized to be appropriated to the Sec- 18
retary to carry out activities under this section: 19
(1) For each of fiscal years 2004 and 2005, 20
$5,000,000. 21
(2) For each of fiscal years 2006, 2007, and 22
2008, $6,000,000. 23
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SEC. 965. WESTERN HEMISPHERE ENERGY COOPERATION. 1
(a) PROGRAM.—The Secretary shall carry out a pro- 2
gram to promote cooperation on energy issues with West- 3
ern Hemisphere countries. 4
(b) ACTIVITIES.—Under the program, the Secretary 5
shall fund activities to work with Western Hemisphere 6
countries to— 7
(1) assist the countries in formulating and 8
adopting changes in economic policies and other poli- 9
cies to— 10
(A) increase the production of energy sup- 11
plies; and 12
(B) improve energy efficiency; and 13
(2) assist in the development and transfer of 14
energy supply and efficiency technologies that would 15
have a beneficial impact on world energy markets. 16
(c) UNIVERSITY PARTICIPATION.—To the extent 17
practicable, the Secretary shall carry out the program 18
under this section with the participation of universities so 19
as to take advantage of the acceptance of universities by 20
Western Hemisphere countries as sources of unbiased 21
technical and policy expertise when assisting the Secretary 22
in— 23
(1) evaluating new technologies; 24
(2) resolving technical issues; 25
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(3) working with those countries in the develop- 1
ment of new policies; and 2
(4) training policymakers, particularly in the 3
case of universities that involve the participation of 4
minority students, such as Hispanic-serving institu- 5
tions and Historically Black Colleges and Univer- 6
sities. 7
(d) AUTHORIZATION OF APPROPRIATIONS.—There 8
are authorized to be appropriated to carry out this 9
section— 10
(1) $8,000,000 for fiscal year 2004; 11
(2) $10,000,000 for fiscal year 2005; 12
(3) $13,000,000 for fiscal year 2006; 13
(4) $16,000,000 for fiscal year 2007; and 14
(5) $19,000,000 for fiscal year 2008. 15
SEC. 966. WASTE REDUCTION AND USE OF ALTERNATIVES. 16
(a) GRANT AUTHORITY.—The Secretary may make 17
a single grant to a qualified institution to examine and 18
develop the feasibility of burning post-consumer carpet in 19
cement kilns as an alternative energy source. The pur- 20
poses of the grant shall include determining— 21
(1) how post-consumer carpet can be burned 22
without disrupting kiln operations; 23
(2) the extent to which overall kiln emissions 24
may be reduced; 25
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(3) the emissions of air pollutants and other 1
relevant environmental impacts; and 2
(4) how this process provides benefits to both 3
cement kiln operations and carpet suppliers. 4
(b) QUALIFIED INSTITUTION.—For the purposes of 5
subsection (a), a qualified institution is a research-inten- 6
sive institution of higher education with demonstrated ex- 7
pertise in the fields of fiber recycling and logistical mod- 8
eling of carpet waste collection and preparation. 9
(c) AUTHORIZATION OF APPROPRIATIONS.—There 10
are authorized to be appropriated to the Secretary for car- 11
rying out this section $500,000. 12
SEC. 967. REPORT ON FUEL CELL TEST CENTER. 13
(a) REPORT.—Not later than 1 year after the date 14
of enactment of this Act, the Secretary shall transmit to 15
Congress a report on the results of a study of the estab- 16
lishment of a test center for next-generation fuel cells at 17
an institution of higher education that has available a con- 18
tinuous source of hydrogen and access to the electric 19
transmission grid. Such report shall include a conceptual 20
design for such test center and a projection of the costs 21
of establishing the test center. 22
(b) AUTHORIZATION OF APPROPRIATIONS.—There 23
are authorized to be appropriated to the Secretary for car- 24
rying out this section $500,000. 25
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SEC. 968. ARCTIC ENGINEERING RESEARCH CENTER. 1
(a) IN GENERAL.—The Secretary of Energy (referred 2
to in this section as the ‘‘Secretary’’) in consultation with 3
the Secretary of Transportation and the United States 4
Arctic Research Commission shall provide annual grants 5
to a university located adjacent to the Arctic Energy Of- 6
fice of the Department of Energy, to establish and operate 7
a university research center to be headquartered in Fair- 8
banks and to be known as the ‘‘Arctic Engineering Re- 9
search Center’’ (referred to in this section as the ‘‘Cen- 10
ter’’). 11
(b) PURPOSE.—The purpose of the Center shall be 12
to conduct research on, and develop improved methods of, 13
construction and use of materials to improve the overall 14
performance of roads, bridges, residential, commercial, 15
and industrial structures, and other infrastructure in the 16
Arctic region, with an emphasis on developing— 17
(1) new construction techniques for roads, 18
bridges, rail, and related transportation infrastruc- 19
ture and residential, commercial, and industrial in- 20
frastructure that are capable of withstanding the 21
Arctic environment and using limited energy re- 22
sources as efficiently as possible; 23
(2) technologies and procedures for increasing 24
road, bridge, rail, and related transportation infra- 25
structure and residential, commercial, and industrial 26
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infrastructure safety, reliability, and integrity in the 1
Arctic region; 2
(3) new materials and improving the perform- 3
ance and energy efficiency of existing materials for 4
the construction of roads, bridges, rail, and related 5
transportation infrastructure and residential, com- 6
mercial, and industrial infrastructure in the Arctic 7
region; and 8
(4) recommendations for new local, regional, 9
and State permitting and building codes to ensure 10
transportation and building safety and efficient en- 11
ergy use when constructing, using, and occupying 12
such infrastructure in the Arctic region. 13
(c) OBJECTIVES.—The Center shall carry out— 14
(1) basic and applied research in the subjects 15
described in subsection (b), the products of which 16
shall be judged by peers or other experts in the field 17
to advance the body of knowledge in road, bridge, 18
rail, and infrastructure engineering in the Arctic re- 19
gion; and 20
(2) an ongoing program of technology transfer 21
that makes research results available to potential 22
users in a form that can be implemented. 23
(d) AMOUNT OF GRANT.—For each of fiscal years 24
2004 through 2009, the Secretary shall provide a grant 25
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in the amount of $3,000,000 to the institution specified 1
in subsection (a) to carry out this section. 2
(e) AUTHORIZATION OF APPROPRIATIONS.—There 3
are authorized to be appropriated to carry out this section 4
$3,000,000 for each of fiscal years 2004 through 2009. 5
SEC. 969. BARROW GEOPHYSICAL RESEARCH FACILITY. 6
(a) ESTABLISHMENT.—The Secretary of Commerce, 7
in consultation with the Secretaries of Energy and the In- 8
terior, the Director of the National Science Foundation, 9
and the Administrator of the Environmental Protection 10
Agency, shall establish a joint research facility in Barrow, 11
Alaska, to be known as the ‘‘Barrow Geophysical Research 12
Facility’’, to support scientific research activities in the 13
Arctic. 14
(b) AUTHORIZATION OF APPROPRIATIONS.—There 15
are authorized to be appropriated to the Secretaries of 16
Commerce, Energy, and the Interior, the Director of the 17
National Science Foundation, and the Administrator of 18
the Environmental Protection Agency for the planning, 19
design, construction, and support of the Barrow Geo- 20
physical Research Facility $61,000,000. 21
SEC. 970. WESTERN MICHIGAN DEMONSTRATION PROJECT. 22
The Administrator of the Environmental Protection 23
Agency, in consultation with the State of Michigan and 24
affected local officials, shall conduct a demonstration 25
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project to address the effect of transported ozone and 1
ozone precursors in Southwestern Michigan. The dem- 2
onstration program shall address a projected nonattain- 3
ment area in Southwestern Michigan that includes coun- 4
ties with design values for ozone of less than .095 based 5
on years 2000 to 2002 or the most current 3-year period 6
of air quality data. The Administrator shall assess any dif- 7
ficulties such area may experience in meeting the 8 hour 8
national ambient air quality standard for ozone due to the 9
effect of transported ozone or ozone precursors into the 10
area. The Administrator shall work with State and local 11
officials to determine the extent of ozone and ozone pre- 12
cursor transport, to assess alternatives to achieve compli- 13
ance with the 8 hour standard apart from local controls, 14
and to determine the timeframe in which such compliance 15
could take place. The Administrator shall complete this 16
demonstration project no later than 2 years after the date 17
of enactment of this section and shall not impose any re- 18
quirement or sanction that might otherwise apply during 19
the pendency of the demonstration project. 20
Subtitle H—Management 21
SEC. 971. AVAILABILITY OF FUNDS. 22
Funds authorized to be appropriated to the Depart- 23
ment under this title shall remain available until expended. 24
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SEC. 972. COST SHARING. 1
(a) RESEARCH AND DEVELOPMENT.—Except as oth- 2
erwise provided in this title, for research and development 3
programs carried out under this title the Secretary shall 4
require a commitment from non-Federal sources of at 5
least 20 percent of the cost of the project. The Secretary 6
may reduce or eliminate the non-Federal requirement 7
under this subsection if the Secretary determines that the 8
research and development is of a basic or fundamental na- 9
ture or involves technical analyses or educational activi- 10
ties. 11
(b) DEMONSTRATION AND COMMERCIAL APPLICA- 12
TION.—Except as otherwise provided in this title, the Sec- 13
retary shall require at least 50 percent of the costs directly 14
and specifically related to any demonstration or commer- 15
cial application project under this title to be provided from 16
non-Federal sources. The Secretary may reduce the non- 17
Federal requirement under this subsection if the Secretary 18
determines that the reduction is necessary and appropriate 19
considering the technological risks involved in the project 20
and is necessary to meet the objectives of this title. 21
(c) CALCULATION OF AMOUNT.—In calculating the 22
amount of the non-Federal commitment under subsection 23
(a) or (b), the Secretary may include personnel, services, 24
equipment, and other resources. 25
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(d) SIZE OF NON-FEDERAL SHARE.—The Secretary 1
may consider the size of the non-Federal share in selecting 2
projects. 3
SEC. 973. MERIT REVIEW OF PROPOSALS. 4
Awards of funds authorized under this title shall be 5
made only after an impartial review of the scientific and 6
technical merit of the proposals for such awards has been 7
carried out by or for the Department. 8
SEC. 974. EXTERNAL TECHNICAL REVIEW OF DEPART- 9
MENTAL PROGRAMS. 10
(a) NATIONAL ENERGY RESEARCH AND DEVELOP- 11
MENT ADVISORY BOARDS.— 12
(1) IN GENERAL.—The Secretary shall establish 13
1 or more advisory boards to review Department re- 14
search, development, demonstration, and commercial 15
application programs in energy efficiency, renewable 16
energy, nuclear energy, and fossil energy. 17
(2) EXISTING ADVISORY BOARDS.—The Sec- 18
retary may designate an existing advisory board 19
within the Department to fulfill the responsibilities 20
of an advisory board under this subsection, and may 21
enter into appropriate arrangements with the Na- 22
tional Academy of Sciences to establish such an ad- 23
visory board. 24
(b) OFFICE OF SCIENCE ADVISORY COMMITTEES.— 25
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(1) UTILIZATION OF EXISTING COMMITTEES.— 1
The Secretary shall continue to use the scientific 2
program advisory committees chartered under the 3
Federal Advisory Committee Act (5 U.S.C. App.) by 4
the Office of Science to oversee research and devel- 5
opment programs under that Office. 6
(2) SCIENCE ADVISORY COMMITTEE.— 7
(A) ESTABLISHMENT.—There shall be in 8
the Office of Science a Science Advisory Com- 9
mittee that includes the chairs of each of the 10
advisory committees described in paragraph (1). 11
(B) RESPONSIBILITIES.—The Science Ad- 12
visory Committee shall— 13
(i) serve as the science advisor to the 14
Director of the Office of Science; 15
(ii) advise the Director with respect to 16
the well-being and management of the Na- 17
tional Laboratories and single-purpose re- 18
search facilities; 19
(iii) advise the Director with respect 20
to education and workforce training activi- 21
ties required for effective short-term and 22
long-term basic and applied research ac- 23
tivities of the Office of Science; and 24
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(iv) advise the Director with respect 1
to the well being of the university research 2
programs supported by the Office of 3
Science. 4
(c) MEMBERSHIP.—Each advisory board under this 5
section shall consist of persons with appropriate expertise 6
representing a diverse range of interests. 7
(d) MEETINGS AND PURPOSES.—Each advisory 8
board under this section shall meet at least semiannually 9
to review and advise on the progress made by the respec- 10
tive research, development, demonstration, and commer- 11
cial application program or programs. The advisory board 12
shall also review the measurable cost and performance- 13
based goals for such programs as established under sec- 14
tion 901(b), and the progress on meeting such goals. 15
(e) PERIODIC REVIEWS AND ASSESSMENTS.—The 16
Secretary shall enter into appropriate arrangements with 17
the National Academy of Sciences to conduct periodic re- 18
views and assessments of the programs authorized by this 19
title, the measurable cost and performance-based goals for 20
such programs as established under section 901(b), if any, 21
and the progress on meeting such goals. Such reviews and 22
assessments shall be conducted every 5 years, or more 23
often as the Secretary considers necessary, and the Sec- 24
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retary shall transmit to Congress reports containing the 1
results of all such reviews and assessments. 2
SEC. 975. IMPROVED COORDINATION OF TECHNOLOGY 3
TRANSFER ACTIVITIES. 4
(a) TECHNOLOGY TRANSFER COORDINATOR.—The 5
Secretary shall designate a Technology Transfer Coordi- 6
nator to perform oversight of and policy development for 7
technology transfer activities at the Department. The 8
Technology Transfer Coordinator shall— 9
(1) coordinate the activities of the Technology 10
Transfer Working Group; 11
(2) oversee the expenditure of funds allocated 12
to the Technology Transfer Working Group; and 13
(3) coordinate with each technology partnership 14
ombudsman appointed under section 11 of the Tech- 15
nology Transfer Commercialization Act of 2000 (42 16
U.S.C. 7261c). 17
(b) TECHNOLOGY TRANSFER WORKING GROUP.— 18
The Secretary shall establish a Technology Transfer 19
Working Group, which shall consist of representatives of 20
the National Laboratories and single-purpose research fa- 21
cilities, to— 22
(1) coordinate technology transfer activities oc- 23
curring at National Laboratories and single-purpose 24
research facilities; 25
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(2) exchange information about technology 1
transfer practices, including alternative approaches 2
to resolution of disputes involving intellectual prop- 3
erty rights and other technology transfer matters; 4
and 5
(3) develop and disseminate to the public and 6
prospective technology partners information about 7
opportunities and procedures for technology transfer 8
with the Department, including those related to al- 9
ternative approaches to resolution of disputes involv- 10
ing intellectual property rights and other technology 11
transfer matters. 12
(c) TECHNOLOGY TRANSFER RESPONSIBILITY.— 13
Nothing in this section shall affect the technology transfer 14
responsibilities of Federal employees under the Stevenson- 15
Wydler Technology Innovation Act of 1980 (15 U.S.C. 16
3701 et seq.). 17
SEC. 976. FEDERAL LABORATORY EDUCATIONAL PART- 18
NERS. 19
(a) DISTRIBUTION OF ROYALTIES RECEIVED BY 20
FEDERAL AGENCIES.—Section 14(a)(1)(B)(v) of the Ste- 21
venson-Wydler Technology Innovation Act of 1980 (15 22
U.S.C. 3710c(a)(1)(B)(v)), is amended to read as follows: 23
‘‘(v) for scientific research and develop- 24
ment and for educational assistance and other 25
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purposes consistent with the missions and ob- 1
jectives of the agency and the laboratory.’’. 2
(b) COOPERATIVE RESEARCH AND DEVELOPMENT 3
AGREEMENTS.—Section 12(b)(5)(C) of the Stevenson- 4
Wydler Technology Innovation Act of 1980 (15 U.S.C. 5
3710a(b)(5)(C)) is amended to read as follows: 6
‘‘(C) for scientific research and development 7
and for educational assistance consistent with the 8
missions and objectives of the agency and the lab- 9
oratory.’’. 10
SEC. 977. INTERAGENCY COOPERATION. 11
The Secretary shall enter into discussions with the 12
Administrator of the National Aeronautics and Space Ad- 13
ministration with the goal of reaching an interagency 14
working agreement between the 2 agencies that would 15
make the National Aeronautics and Space Administra- 16
tion’s expertise in energy, gained from its existing and 17
planned programs, more readily available to the relevant 18
research, development, demonstration, and commercial ap- 19
plications programs of the Department. Technologies to 20
be discussed should include the National Aeronautics and 21
Space Administration’s modeling, research, development, 22
testing, and evaluation of new energy technologies, includ- 23
ing solar, wind, fuel cells, and hydrogen storage and dis- 24
tribution. 25
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SEC. 978. TECHNOLOGY INFRASTRUCTURE PROGRAM. 1
(a) ESTABLISHMENT.—The Secretary shall establish 2
a Technology Infrastructure Program in accordance with 3
this section. 4
(b) PURPOSE.—The purpose of the Technology Infra- 5
structure Program shall be to improve the ability of Na- 6
tional Laboratories and single-purpose research facilities 7
to support departmental missions by— 8
(1) stimulating the development of technology 9
clusters that can support departmental missions at 10
the National Laboratories or single-purpose research 11
facilities; 12
(2) improving the ability of National Labora- 13
tories and single-purpose research facilities to lever- 14
age and benefit from commercial research, tech- 15
nology, products, processes, and services; and 16
(3) encouraging the exchange of scientific and 17
technological expertise between National Labora- 18
tories or single-purpose research facilities and enti- 19
ties that can support departmental missions at the 20
National Laboratories or single-purpose research fa- 21
cilities, such as institutions of higher education; 22
technology-related business concerns; nonprofit insti- 23
tutions; and agencies of State, tribal, or local gov- 24
ernments. 25
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(c) PROJECTS.—The Secretary shall authorize the 1
Director of each National Laboratory or single-purpose re- 2
search facility to implement the Technology Infrastructure 3
Program at such National Laboratory or facility through 4
projects that meet the requirements of subsections (d) and 5
(e). 6
(d) PROGRAM REQUIREMENTS.—Each project funded 7
under this section shall meet the following requirements: 8
(1) Each project shall include at least 1 of each 9
of the following entities: a business; an institution of 10
higher education; a nonprofit institution; and an 11
agency of a State, local, or tribal government. 12
(2) Not less than 50 percent of the costs of 13
each project funded under this section shall be pro- 14
vided from non-Federal sources. The calculation of 15
costs paid by the non-Federal sources to a project 16
shall include cash, personnel, services, equipment, 17
and other resources expended on the project after 18
start of the project. Independent research and devel- 19
opment expenses of Government contractors that 20
qualify for reimbursement under section 31.205– 21
18(e) of the Federal Acquisition Regulation issued 22
pursuant to section 25(c)(1) of the Office of Federal 23
Procurement Policy Act (41 U.S.C. 421(c)(1)) may 24
be credited toward costs paid by non-Federal sources 25
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to a project, if the expenses meet the other require- 1
ments of this section. 2
(3) All projects under this section shall be com- 3
petitively selected using procedures determined by 4
the Secretary. 5
(4) Any participant that receives funds under 6
this section may use generally accepted accounting 7
principles for maintaining accounts, books, and 8
records relating to the project. 9
(5) No Federal funds shall be made available 10
under this section for construction or any project for 11
more than 5 years. 12
(e) SELECTION CRITERIA.— 13
(1) IN GENERAL.—The Secretary shall allocate 14
funds under this section only if the Director of the 15
National Laboratory or single-purpose research facil- 16
ity managing the project determines that the project 17
is likely to improve the ability of the National Lab- 18
oratory or single-purpose research facility to achieve 19
technical success in meeting departmental missions. 20
(2) CRITERIA.—The Secretary shall consider 21
the following criteria in selecting a project to receive 22
Federal funds: 23
(A) The potential of the project to promote 24
the development of a commercially sustainable 25
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technology cluster following the period of De- 1
partment investment, which will derive most of 2
the demand for its products or services from 3
the private sector, and which will support de- 4
partmental missions at the participating Na- 5
tional Laboratory or single-purpose research fa- 6
cility. 7
(B) The potential of the project to promote 8
the use of commercial research, technology, 9
products, processes, and services by the partici- 10
pating National Laboratory or single-purpose 11
research facility to achieve its mission or the 12
commercial development of technological inno- 13
vations made at the participating National Lab- 14
oratory or single-purpose research facility. 15
(C) The extent to which the project in- 16
volves a wide variety and number of institutions 17
of higher education, nonprofit institutions, and 18
technology-related business concerns that can 19
support the missions of the participating Na- 20
tional Laboratory or single-purpose research fa- 21
cility and that will make substantive contribu- 22
tions to achieving the goals of the project. 23
(D) The extent to which the project fo- 24
cuses on promoting the development of tech- 25
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nology-related business concerns that are small 1
businesses or involves such small businesses 2
substantively in the project. 3
(E) Such other criteria as the Secretary 4
determines to be appropriate. 5
(f) ALLOCATION.—In allocating funds for projects 6
approved under this section, the Secretary shall provide— 7
(1) the Federal share of the project costs; and 8
(2) additional funds to the National Laboratory 9
or single-purpose research facility managing the 10
project to permit the National Laboratory or single- 11
purpose research facility to carry out activities relat- 12
ing to the project, and to coordinate such activities 13
with the project. 14
(g) REPORT TO CONGRESS.—Not later than July 1, 15
2006, the Secretary shall report to Congress on whether 16
the Technology Infrastructure Program should be contin- 17
ued and, if so, how the program should be managed. 18
(h) DEFINITIONS.—In this section: 19
(1) TECHNOLOGY CLUSTER.—The term ‘‘tech- 20
nology cluster’’ means a concentration of technology- 21
related business concerns, institutions of higher edu- 22
cation, or nonprofit institutions that reinforce each 23
other’s performance in the areas of technology devel- 24
opment through formal or informal relationships. 25
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(2) TECHNOLOGY-RELATED BUSINESS CON- 1
CERN.—The term ‘‘technology-related business con- 2
cern’’ means a for-profit corporation, company, asso- 3
ciation, firm, partnership, or small business concern 4
that conducts scientific or engineering research; de- 5
velops new technologies; manufactures products 6
based on new technologies; or performs technological 7
services. 8
(i) AUTHORIZATION OF APPROPRIATIONS.—There 9
are authorized to be appropriated to the Secretary for ac- 10
tivities under this section $10,000,000 for each of fiscal 11
years 2004, 2005, and 2006. 12
SEC. 979. REPROGRAMMING. 13
(a) DISTRIBUTION REPORT.—Not later than 60 days 14
after the date of the enactment of an Act appropriating 15
amounts authorized under this title, the Secretary shall 16
transmit to the appropriate authorizing committees of 17
Congress a report explaining how such amounts will be 18
distributed among the authorizations contained in this 19
title. 20
(b) PROHIBITION.— 21
(1) IN GENERAL.—No amount identified under 22
subsection (a) shall be reprogrammed if such re- 23
programming would result in an obligation which 24
changes an individual distribution required to be re- 25
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ported under subsection (a) by more than 5 percent 1
unless the Secretary has transmitted to the appro- 2
priate authorizing committees of Congress a report 3
described in subsection (c) and a period of 30 days 4
has elapsed after such committees receive the report. 5
(2) COMPUTATION.—In the computation of the 6
30-day period described in paragraph (1), there shall 7
be excluded any day on which either House of Con- 8
gress is not in session because of an adjournment of 9
more than 3 days to a day certain. 10
(c) REPROGRAMMING REPORT.—A report referred to 11
in subsection (b)(1) shall contain a full and complete 12
statement of the action proposed to be taken and the facts 13
and circumstances relied on in support of the proposed 14
action. 15
SEC. 980. CONSTRUCTION WITH OTHER LAWS. 16
Except as otherwise provided in this title, the Sec- 17
retary shall carry out the research, development, dem- 18
onstration, and commercial application programs, 19
projects, and activities authorized by this title in accord- 20
ance with the applicable provisions of the Atomic Energy 21
Act of 1954 (42 U.S.C. 2011 et seq.), the Federal Non- 22
nuclear Research and Development Act of 1974 (42 23
U.S.C. 5901 et seq.), the Energy Policy Act of 1992 (42 24
U.S.C. 13201 et seq.), the Stevenson-Wydler Technology 25
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Innovation Act of 1980 (15 U.S.C. 3701 et seq.), chapter 1
18 of title 35, United States Code (commonly referred to 2
as the Bayh-Dole Act), and any other Act under which 3
the Secretary is authorized to carry out such activities. 4
SEC. 981. REPORT ON RESEARCH AND DEVELOPMENT PRO- 5
GRAM EVALUATION METHODOLOGIES. 6
Not later than 180 days after the date of enactment 7
of this Act, the Secretary shall enter into appropriate ar- 8
rangements with the National Academy of Sciences to in- 9
vestigate and report on the scientific and technical merits 10
of any evaluation methodology currently in use or pro- 11
posed for use in relation to the scientific and technical pro- 12
grams of the Department by the Secretary or other Fed- 13
eral official. Not later than 6 months after receiving the 14
report of the National Academy, the Secretary shall sub- 15
mit such report to Congress, along with any other views 16
or plans of the Secretary with respect to the future use 17
of such evaluation methodology. 18
SEC. 982. DEPARTMENT OF ENERGY SCIENCE AND TECH- 19
NOLOGY SCHOLARSHIP PROGRAM. 20
(a) ESTABLISHMENT OF PROGRAM.— 21
(1) IN GENERAL.—The Secretary is authorized 22
to establish a Department of Energy Science and 23
Technology Scholarship Program to award scholar- 24
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ships to individuals that is designed to recruit and 1
prepare students for careers in the Department. 2
(2) COMPETITIVE PROCESS.—Individuals shall 3
be selected to receive scholarships under this section 4
through a competitive process primarily on the basis 5
of academic merit, with consideration given to finan- 6
cial need and the goal of promoting the participation 7
of individuals identified in section 33 or 34 of the 8
Science and Engineering Equal Opportunities Act 9
(42 U.S.C. 1885a or 1885b). 10
(3) SERVICE AGREEMENTS.—To carry out the 11
Program the Secretary shall enter into contractual 12
agreements with individuals selected under para- 13
graph (2) under which the individuals agree to serve 14
as full-time employees of the Department, for the 15
period described in subsection (f)(1), in positions 16
needed by the Department and for which the individ- 17
uals are qualified, in exchange for receiving a schol- 18
arship. 19
(b) SCHOLARSHIP ELIGIBILITY.—In order to be eligi- 20
ble to participate in the Program, an individual must— 21
(1) be enrolled or accepted for enrollment as a 22
full-time student at an institution of higher edu- 23
cation in an academic program or field of study de- 24
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scribed in the list made available under subsection 1
(d); 2
(2) be a United States citizen; and 3
(3) at the time of the initial scholarship award, 4
not be a Federal employee as defined in section 5
2105 of title 5 of the United States Code. 6
(c) APPLICATION REQUIRED.—An individual seeking 7
a scholarship under this section shall submit an applica- 8
tion to the Secretary at such time, in such manner, and 9
containing such information, agreements, or assurances as 10
the Secretary may require. 11
(d) ELIGIBLE ACADEMIC PROGRAMS.—The Secretary 12
shall make publicly available a list of academic programs 13
and fields of study for which scholarships under the Pro- 14
gram may be utilized, and shall update the list as nec- 15
essary. 16
(e) SCHOLARSHIP REQUIREMENT.— 17
(1) IN GENERAL.—The Secretary may provide a 18
scholarship under the Program for an academic year 19
if the individual applying for the scholarship has 20
submitted to the Secretary, as part of the applica- 21
tion required under subsection (c), a proposed aca- 22
demic program leading to a degree in a program or 23
field of study on the list made available under sub- 24
section (d). 25
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(2) DURATION OF ELIGIBILITY.—An individual 1
may not receive a scholarship under this section for 2
more than 4 academic years, unless the Secretary 3
grants a waiver. 4
(3) SCHOLARSHIP AMOUNT.—The dollar 5
amount of a scholarship under this section for an 6
academic year shall be determined under regulations 7
issued by the Secretary, but shall in no case exceed 8
the cost of attendance. 9
(4) AUTHORIZED USES.—A scholarship pro- 10
vided under this section may be expended for tuition, 11
fees, and other authorized expenses as established by 12
the Secretary by regulation. 13
(5) CONTRACTS REGARDING DIRECT PAYMENTS 14
TO INSTITUTIONS.—The Secretary may enter into a 15
contractual agreement with an institution of higher 16
education under which the amounts provided for a 17
scholarship under this section for tuition, fees, and 18
other authorized expenses are paid directly to the in- 19
stitution with respect to which the scholarship is 20
provided. 21
(f) PERIOD OF OBLIGATED SERVICE.— 22
(1) DURATION OF SERVICE.—The period of 23
service for which an individual shall be obligated to 24
serve as an employee of the Department is, except 25
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as provided in subsection (h)(2), 24 months for each 1
academic year for which a scholarship under this 2
section is provided. 3
(2) SCHEDULE FOR SERVICE.— 4
(A) IN GENERAL.—Except as provided in 5
subparagraph (B), obligated service under para- 6
graph (1) shall begin not later than 60 days 7
after the individual obtains the educational de- 8
gree for which the scholarship was provided. 9
(B) DEFERRAL.—The Secretary may defer 10
the obligation of an individual to provide a pe- 11
riod of service under paragraph (1) if the Sec- 12
retary determines that such a deferral is appro- 13
priate. The Secretary shall prescribe the terms 14
and conditions under which a service obligation 15
may be deferred through regulation. 16
(g) PENALTIES FOR BREACH OF SCHOLARSHIP 17
AGREEMENT.— 18
(1) FAILURE TO COMPLETE ACADEMIC TRAIN- 19
ING.—Scholarship recipients who fail to maintain a 20
high level of academic standing, as defined by the 21
Secretary by regulation, who are dismissed from 22
their educational institutions for disciplinary rea- 23
sons, or who voluntarily terminate academic training 24
before graduation from the educational program for 25
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which the scholarship was awarded, shall be in 1
breach of their contractual agreement and, in lieu of 2
any service obligation arising under such agreement, 3
shall be liable to the United States for repayment 4
not later than 1 year after the date of default of all 5
scholarship funds paid to them and to the institution 6
of higher education on their behalf under the agree- 7
ment, except as provided in subsection (h)(2). The 8
repayment period may be extended by the Secretary 9
when determined to be necessary, as established by 10
regulation. 11
(2) FAILURE TO BEGIN OR COMPLETE THE 12
SERVICE OBLIGATION OR MEET THE TERMS AND 13
CONDITIONS OF DEFERMENT.—A scholarship recipi- 14
ent who, for any reason, fails to begin or complete 15
a service obligation under this section after comple- 16
tion of academic training, or fails to comply with the 17
terms and conditions of deferment established by the 18
Secretary pursuant to subsection (f)(2)(B), shall be 19
in breach of the contractual agreement. When a re- 20
cipient breaches an agreement for the reasons stated 21
in the preceding sentence, the recipient shall be lia- 22
ble to the United States for an amount equal to— 23
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(A) the total amount of scholarships re- 1
ceived by such individual under this section; 2
plus 3
(B) the interest on the amounts of such 4
awards which would be payable if at the time 5
the awards were received they were loans bear- 6
ing interest at the maximum legal prevailing 7
rate, as determined by the Treasurer of the 8
United States, 9
multiplied by 3. 10
(h) WAIVER OR SUSPENSION OF OBLIGATION.— 11
(1) DEATH OF INDIVIDUAL.—Any obligation of 12
an individual incurred under the Program (or a con- 13
tractual agreement thereunder) for service or pay- 14
ment shall be canceled upon the death of the indi- 15
vidual. 16
(2) IMPOSSIBILITY OR EXTREME HARDSHIP.— 17
The Secretary shall by regulation provide for the 18
partial or total waiver or suspension of any obliga- 19
tion of service or payment incurred by an individual 20
under the Program (or a contractual agreement 21
thereunder) whenever compliance by the individual is 22
impossible or would involve extreme hardship to the 23
individual, or if enforcement of such obligation with 24
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respect to the individual would be contrary to the 1
best interests of the Government. 2
(i) DEFINITIONS.—In this section the following defi- 3
nitions apply: 4
(1) COST OF ATTENDANCE.—The term ‘‘cost of 5
attendance’’ has the meaning given that term in sec- 6
tion 472 of the Higher Education Act of 1965 (20 7
U.S.C. 1087ll). 8
(2) PROGRAM.—The term ‘‘Program’’ means 9
the Department of Energy Science and Technology 10
Scholarship Program established under this section. 11
(j) AUTHORIZATION OF APPROPRIATIONS.—There 12
are authorized to be appropriated to the Secretary for ac- 13
tivities under this section— 14
(1) for fiscal year 2004, $800,000; 15
(2) for fiscal year 2005, $1,600,000; 16
(3) for fiscal year 2006, $2,000,000; 17
(4) for fiscal year 2007, $2,000,000; and 18
(5) for fiscal year 2008, $2,000,000. 19
SEC. 983. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY 20
PRACTICES. 21
Not later than 12 months after the date of enactment 22
of this Act, and biennially thereafter, the Secretary shall 23
transmit to Congress a report on the equal employment 24
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141
opportunity practices at National Laboratories. Such re- 1
port shall include— 2
(1) a thorough review of each laboratory con- 3
tractor’s equal employment opportunity policies, in- 4
cluding promotion to management and professional 5
positions and pay raises; 6
(2) a statistical report on complaints and their 7
disposition in the laboratories; 8
(3) a description of how equal employment op- 9
portunity practices at the laboratories are treated in 10
the contract and in calculating award fees for each 11
contractor; 12
(4) a summary of disciplinary actions and their 13
disposition by either the Department or the relevant 14
contractors for each laboratory; 15
(5) a summary of outreach efforts to attract 16
women and minorities to the laboratories; 17
(6) a summary of efforts to retain women and 18
minorities in the laboratories; and 19
(7) a summary of collaboration efforts with the 20
Office of Federal Contract Compliance Programs to 21
improve equal employment opportunity practices at 22
the laboratories. 23
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SEC. 984. SMALL BUSINESS ADVOCACY AND ASSISTANCE. 1
(a) SMALL BUSINESS ADVOCATE.—The Secretary 2
shall require the Director of each National Laboratory, 3
and may require the Director of a single-purpose research 4
facility, to designate a small business advocate to— 5
(1) increase the participation of small business 6
concerns, including socially and economically dis- 7
advantaged small business concerns, in procurement, 8
collaborative research, technology licensing, and 9
technology transfer activities conducted by the Na- 10
tional Laboratory or single-purpose research facility; 11
(2) report to the Director of the National Lab- 12
oratory or single-purpose research facility on the ac- 13
tual participation of small business concerns, includ- 14
ing socially and economically disadvantaged small 15
business concerns, in procurement, collaborative re- 16
search, technology licensing, and technology transfer 17
activities along with recommendations, if appro- 18
priate, on how to improve participation; 19
(3) make available to small businesses training, 20
mentoring, and information on how to participate in 21
procurement and collaborative research activities; 22
(4) increase the awareness inside the National 23
Laboratory or single-purpose research facility of the 24
capabilities and opportunities presented by small 25
business concerns; and 26
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(5) establish guidelines for the program under 1
subsection (b) and report on the effectiveness of 2
such program to the Director of the National Lab- 3
oratory or single-purpose research facility. 4
(b) ESTABLISHMENT OF SMALL BUSINESS ASSIST- 5
ANCE PROGRAM.—The Secretary shall require the Direc- 6
tor of each National Laboratory, and may require the Di- 7
rector of a single-purpose research facility, to establish a 8
program to provide small business concerns— 9
(1) assistance directed at making them more ef- 10
fective and efficient subcontractors or suppliers to 11
the National Laboratory or single-purpose research 12
facility; or 13
(2) general technical assistance, the cost of 14
which shall not exceed $10,000 per instance of as- 15
sistance, to improve the small business concerns’ 16
products or services. 17
(c) USE OF FUNDS.—None of the funds expended 18
under subsection (b) may be used for direct grants to the 19
small business concerns. 20
(d) DEFINITIONS.—In this section: 21
(1) SMALL BUSINESS CONCERN.—The term 22
‘‘small business concern’’ has the meaning given 23
such term in section 3 of the Small Business Act 24
(15 U.S.C. 632). 25
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(2) SOCIALLY AND ECONOMICALLY DISADVAN- 1
TAGED SMALL BUSINESS CONCERNS.—The term ‘‘so- 2
cially and economically disadvantaged small business 3
concerns’’ has the meaning given such term in sec- 4
tion 8(a)(4) of the Small Business Act (15 U.S.C. 5
637(a)(4)). 6
(e) AUTHORIZATION OF APPROPRIATIONS.—There 7
are authorized to be appropriated to the Secretary for ac- 8
tivities under this section $5,000,000 for each of fiscal 9
years 2004 through 2008. 10
SEC. 985. REPORT ON MOBILITY OF SCIENTIFIC AND TECH- 11
NICAL PERSONNEL. 12
Not later than 2 years after the date of enactment 13
of this Act, the Secretary shall transmit a report to Con- 14
gress identifying any policies or procedures of a contractor 15
operating a National Laboratory or single-purpose re- 16
search facility that create disincentives to the temporary 17
transfer of scientific and technical personnel among the 18
contractor-operated National Laboratories or contractor- 19
operated single-purpose research facilities and provide 20
suggestions for improving interlaboratory exchange of sci- 21
entific and technical personnel. 22
SEC. 986. NATIONAL ACADEMY OF SCIENCES REPORT. 23
Not later than 90 days after the date of enactment 24
of this Act, the Secretary shall enter into an arrangement 25
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145
with the National Academy of Sciences for the Academy 1
to— 2
(1) conduct a study on— 3
(A) the obstacles to accelerating the com- 4
mercial application of energy technology; and 5
(B) the adequacy of Department policies 6
and procedures for, and oversight of, technology 7
transfer-related disputes between contractors of 8
the Department and the private sector; and 9
(2) transmit a report to Congress on rec- 10
ommendations developed as a result of the study. 11
SEC. 987. OUTREACH. 12
The Secretary shall ensure that each program au- 13
thorized by this title includes an outreach component to 14
provide information, as appropriate, to manufacturers, 15
consumers, engineers, architects, builders, energy service 16
companies, institutions of higher education, small busi- 17
nesses, facility planners and managers, State and local 18
governments, and other entities. 19
SEC. 988. COMPETITIVE AWARD OF MANAGEMENT CON- 20
TRACTS. 21
None of the funds authorized to be appropriated to 22
the Secretary by this title may be used to award a manage- 23
ment and operating contract for a nonmilitary energy lab- 24
oratory of the Department unless such contract is com- 25
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146
petitively awarded or the Secretary grants, on a case-by- 1
case basis, a waiver to allow for such a deviation. The Sec- 2
retary may not delegate the authority to grant such a 3
waiver and shall submit to Congress a report notifying 4
Congress of the waiver and setting forth the reasons for 5
the waiver at least 60 days prior to the date of the award 6
of such a contract. 7
SEC. 989. EDUCATIONAL PROGRAMS IN SCIENCE AND 8
MATHEMATICS. 9
(a) ACTIVITIES.—Section 3165(a) of the Department 10
of Energy Science Education Enhancement Act (42 11
U.S.C. 7381b(a)) is amended by adding at the end the 12
following: 13
‘‘(14) Support competitive events for students, 14
under supervision of teachers, designed to encourage 15
student interest and knowledge in science and math- 16
ematics.’’. 17
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 18
3169 of the Department of Energy Science Education En- 19
hancement Act (42 U.S.C. 7381e), as so redesignated by 20
section 1102(b), is amended by inserting before the period 21
‘‘; and $40,000,000 for each of fiscal years 2004 through 22
2008’’. 23
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November 14, 2003 (3:26 PM)

Title X - Department of Energy Management

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE X—DEPARTMENT OF 1
ENERGY MANAGEMENT 2
SEC. 1001. ADDITIONAL ASSISTANT SECRETARY POSITION. 3
(a) ADDITIONAL ASSISTANT SECRETARY POSITION 4
TO ENABLE IMPROVED MANAGEMENT OF NUCLEAR EN- 5
ERGY ISSUES.— 6
(1) IN GENERAL.—Section 203(a) of the De- 7
partment of Energy Organization Act (42 U.S.C. 8
7133(a)) is amended by striking ‘‘six Assistant Sec- 9
retaries’’ and inserting ‘‘7 Assistant Secretaries’’. 10
(2) SENSE OF CONGRESS.—It is the sense of 11
Congress that the leadership for departmental mis- 12
sions in nuclear energy should be at the Assistant 13
Secretary level. 14
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 15
(1) TITLE 5.—Section 5315 of title 5, United 16
States Code, is amended by striking ‘‘Assistant Sec- 17
retaries of Energy (6)’’ and inserting ‘‘Assistant 18
Secretaries of Energy (7)’’. 19
(2) DEPARTMENT OF ENERGY ORGANIZATION 20
ACT.—The table of contents for the Department of 21
Energy Organization Act (42 U.S.C. 7101 note) is 22
amended— 23
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2
(A) by striking ‘‘Section 209’’ and insert- 1
ing ‘‘Sec. 209’’; 2
(B) by striking ‘‘213.’’ and inserting ‘‘Sec. 3
213.’’; 4
(C) by striking ‘‘214.’’ and inserting ‘‘Sec. 5
214.’’; 6
(D) by striking ‘‘215.’’ and inserting ‘‘Sec. 7
215.’’; and 8
(E) by striking ‘‘216.’’ and inserting ‘‘Sec. 9
216.’’. 10
SEC. 1002. OTHER TRANSACTIONS AUTHORITY. 11
Section 646 of the Department of Energy Organiza- 12
tion Act (42 U.S.C. 7256) is amended by adding at the 13
end the following: 14
‘‘(g)(1) In addition to other authorities granted to the 15
Secretary under law, the Secretary may enter into other 16
transactions on such terms as the Secretary may deem 17
appropriate in furtherance of research, development, or 18
demonstration functions vested in the Secretary. Such 19
other transactions shall not be subject to the provisions 20
of section 9 of the Federal Nonnuclear Energy Research 21
and Development Act of 1974 (42 U.S.C. 5908) or section 22
152 of the Atomic Energy Act of 1954 (42 U.S.C. 2182). 23
‘‘(2)(A) The Secretary shall ensure that— 24
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3
‘‘(i) to the maximum extent the Secretary de- 1
termines practicable, no transaction entered into 2
under paragraph (1) provides for research, develop- 3
ment, or demonstration that duplicates research, de- 4
velopment, or demonstration being conducted under 5
existing projects carried out by the Department; 6
‘‘(ii) to the extent the Secretary determines 7
practicable, the funds provided by the Government 8
under a transaction authorized by paragraph (1) do 9
not exceed the total amount provided by other par- 10
ties to the transaction; and 11
‘‘(iii) to the extent the Secretary determines 12
practicable, competitive, merit-based selection proce- 13
dures shall be used when entering into transactions 14
under paragraph (1). 15
‘‘(B) A transaction authorized by paragraph (1) may 16
be used for a research, development, or demonstration 17
project only if the Secretary makes a written determina- 18
tion that the use of a standard contract, grant, or coopera- 19
tive agreement for the project is not feasible or appro- 20
priate. 21
‘‘(3)(A) The Secretary shall protect from disclosure, 22
including disclosure under section 552 of title 5, United 23
States Code, for up to 5 years after the date the informa- 24
tion is received by the Secretary— 25
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‘‘(i) a proposal, proposal abstract, and sup- 1
porting documents submitted to the Department in 2
a competitive or noncompetitive process having the 3
potential for resulting in an award under paragraph 4
(1) to the party submitting the information; and 5
‘‘(ii) a business plan and technical information 6
relating to a transaction authorized by paragraph 7
(1) submitted to the Department as confidential 8
business information. 9
‘‘(B) The Secretary may protect from disclosure, for 10
up to 5 years after the information was developed, any 11
information developed pursuant to a transaction under 12
paragraph (1) which developed information is of a char- 13
acter that it would be protected from disclosure under sec- 14
tion 552(b)(4) of title 5, United States Code, if obtained 15
from a person other than a Federal agency. 16
‘‘(4) Not later than 90 days after the date of enact- 17
ment of this subsection, the Secretary shall prescribe 18
guidelines for using other transactions authorized by para- 19
graph (1). Such guidelines shall be published in the Fed- 20
eral Register for public comment under rulemaking proce- 21
dures of the Department. 22
‘‘(5) The authority of the Secretary under this sub- 23
section may be delegated only to an officer of the Depart- 24
ment who is appointed by the President by and with the 25
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5
advice and consent of the Senate and may not be delegated 1
to any other person. 2
‘‘(6)(A) Not later than September 31, 2005, the 3
Comptroller General of the United States shall report to 4
Congress on the Department’s use of the authorities 5
granted under this section, including the ability to attract 6
nontraditional government contractors and whether addi- 7
tional safeguards are needed with respect to the use of 8
such authorities. 9
‘‘(B) In this section, the term ‘nontraditional Govern- 10
ment contractor’ has the same meaning as the term ‘non- 11
traditional defense contractor’ as defined in section 845(e) 12
of the National Defense Authorization Act for Fiscal Year 13
1994 (Public Law 103-160; 10 U.S.C. 2371 note).’’. 14
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November 14, 2003 (11:10 AM)

Title XI - Personnel

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE XI—PERSONNEL AND 1
TRAINING 2
SEC. 1101. TRAINING GUIDELINES FOR ELECTRIC ENERGY 3
INDUSTRY PERSONNEL. 4
The Secretary of Energy, in consultation with the 5
Secretary of Labor and jointly with the electric industry 6
and recognized employee representatives, shall develop 7
model personnel training guidelines to support electric sys- 8
tem reliability and safety. The training guidelines shall, 9
at a minimum— 10
(1) include training requirements for workers 11
engaged in the construction, operation, inspection, 12
and maintenance of electric generation, trans- 13
mission, and distribution, including competency and 14
certification requirements, and assessment require- 15
ments that include initial and ongoing evaluation of 16
workers, recertification assessment procedures, and 17
methods for examining or testing the qualification of 18
individuals performing covered tasks; and 19
(2) consolidate existing training guidelines on 20
the construction, operation, maintenance, and in- 21
spection of electric generation, transmission, and 22
distribution facilities, such as those established by 23
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2
the National Electric Safety Code and other indus- 1
try consensus standards. 2
SEC. 1102. IMPROVED ACCESS TO ENERGY-RELATED SCI- 3
ENTIFIC AND TECHNICAL CAREERS. 4
(a) DEPARTMENT OF ENERGY SCIENCE EDUCATION 5
PROGRAMS.—Section 3164 of the Department of Energy 6
Science Education Enhancement Act (42 U.S.C. 7381a) 7
is amended by adding at the end the following: 8
‘‘(c) PROGRAMS FOR STUDENTS FROM UNDERREP- 9
RESENTED GROUPS.—In carrying out a program under 10
subsection (a), the Secretary shall give priority to activi- 11
ties that are designed to encourage students from under- 12
represented groups to pursue scientific and technical ca- 13
reers.’’. 14
(b) PARTNERSHIPS WITH HISTORICALLY BLACK 15
COLLEGES AND UNIVERSITIES, HISPANIC-SERVICING IN- 16
STITUTIONS, AND TRIBAL COLLEGES.—The Department 17
of Energy Science Education Enhancement Act (42 18
U.S.C. 7381 et seq.) is amended— 19
(1) by redesignating sections 3167 and 3168 as 20
sections 3168 and 3169, respectively; and 21
(2) by inserting after section 3166 the fol- 22
lowing: 23
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‘‘SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK 1
COLLEGES AND UNIVERSITIES, HISPANIC- 2
SERVING INSTITUTIONS, AND TRIBAL COL- 3
LEGES. 4
‘‘(a) DEFINITIONS.—In this section: 5
‘‘(1) HISPANIC-SERVING INSTITUTION.—The 6
term ‘Hispanic-serving institution’ has the meaning 7
given that term in section 502(a) of the Higher 8
Education Act of 1965 (20 U.S.C. 1101a(a)). 9
‘‘(2) HISTORICALLY BLACK COLLEGE OR UNI- 10
VERSITY.—The term ‘historically Black college or 11
university’ has the meaning given the term ‘part B 12
institution’ in section 322 of the Higher Education 13
Act of 1965 (20 U.S.C. 1061). 14
‘‘(3) NATIONAL LABORATORY.—The term ‘Na- 15
tional Laboratory’ has the meaning given that term 16
in section 902 of the Energy Policy Act of 2003. 17
‘‘(4) SCIENCE FACILITY.—The term ‘science fa- 18
cility’ has the meaning given the term ‘single-pur- 19
pose research facility’ in section 902 of the Energy 20
Policy Act of 2003. 21
‘‘(5) TRIBAL COLLEGE.—The term ‘tribal col- 22
lege’ has the meaning given the term ‘Tribal College 23
or University’ in section 316(b)(3) of the Higher 24
Education Act of 1965 (20 U.S.C. 1059c(b)(3)). 25
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‘‘(b) EDUCATION PARTNERSHIP.—The Secretary 1
shall direct the Director of each National Laboratory and, 2
to the extent practicable, the head of any science facility 3
to increase the participation of historically Black colleges 4
or universities, Hispanic-serving institutions, or tribal col- 5
leges in activities that increase the capacity of the histori- 6
cally Black colleges or universities, Hispanic-serving insti- 7
tutions, or tribal colleges to train personnel in science or 8
engineering. 9
‘‘(c) ACTIVITIES.—An activity under subsection (b) 10
may include— 11
‘‘(1) collaborative research; 12
‘‘(2) equipment transfer; 13
‘‘(3) training activities conducted at a National 14
Laboratory or science facility; and 15
‘‘(4) mentoring activities conducted at a Na- 16
tional Laboratory or science facility. 17
‘‘(d) REPORT.—Not later than 2 years after the date 18
of enactment of the Energy Policy Act of 2003, the Sec- 19
retary shall submit to Congress a report on the activities 20
carried out under this section.’’. 21
SEC. 1103. NATIONAL POWER PLANT OPERATIONS TECH- 22
NOLOGY AND EDUCATION CENTER. 23
(a) ESTABLISHMENT.—The Secretary shall support 24
the establishment of a National Power Plant Operations 25
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5
Technology and Education Center (in this section referred 1
to as the ‘‘Center’’), to address the need for training and 2
educating certified operators for nonnuclear electric power 3
generation plants. 4
(b) ROLE.—The Center shall provide both training 5
and continuing education relating to nonnuclear electric 6
power generation plant technologies and operations. The 7
Center shall conduct training and education activities on 8
site and through Internet-based information technologies 9
that allow for learning at remote sites. 10
(c) CRITERIA FOR COMPETITIVE SELECTION.—The 11
Secretary shall support the establishment of the Center 12
at an institution of higher education with expertise in 13
power plant technology and operation and with the ability 14
to provide onsite as well as Internet-based training. 15
SEC. 1104. INTERNATIONAL ENERGY TRAINING. 16
(a) IN GENERAL.—The Secretary of Energy, in con- 17
sultation with the Secretaries of Commerce, Interior, and 18
State and the Federal Energy Regulatory Commission, 19
shall coordinate training and outreach efforts for inter- 20
national commercial energy markets in countries with de- 21
veloping and restructuring economies. 22
(b) COMPONENTS.—The efforts may address— 23
(1) production-related fiscal regimes; 24
(2) grid and network issues; 25
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6
(3) energy user and demand side response; 1
(4) international trade of energy; and 2
(5) international transportation of energy. 3
(c) AUTHORIZATION OF APPROPRIATIONS.—There 4
are authorized to be appropriated to carry out this section 5
$1,500,000 for each of fiscal years 2004 through 2007. 6
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November 14, 2003 (11:11 AM)

Title XII - Electricity

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE XII—ELECTRICITY 1
SEC. 1201. SHORT TITLE. 2
This title may be cited as the ‘‘Electric Reliability 3
Act of 2003’’. 4
Subtitle A—Reliability Standards 5
SEC. 1211. ELECTRIC RELIABILITY STANDARDS. 6
(a) IN GENERAL.—Part II of the Federal Power Act 7
(16 U.S.C 824 et seq.) is amended by adding at the end 8
the following: 9
‘‘SEC. 215. ELECTRIC RELIABILITY. 10
‘‘(a) DEFINITIONS.—For purposes of this section: 11
‘‘(1) The term ‘bulk-power system’ means— 12
‘‘(A) facilities and control systems nec- 13
essary for operating an interconnected electric 14
energy transmission network (or any portion 15
thereof); and 16
‘‘(B) electric energy from generation facili- 17
ties needed to maintain transmission system re- 18
liability. 19
The term does not include facilities used in the local 20
distribution of electric energy. 21
‘‘(2) The terms ‘Electric Reliability Organiza- 22
tion’ and ‘ERO’ mean the organization certified by 23
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2
the Commission under subsection (c) the purpose of 1
which is to establish and enforce reliability stand- 2
ards for the bulk-power system, subject to Commis- 3
sion review. 4
‘‘(3) The term ‘reliability standard’ means a re- 5
quirement, approved by the Commission under this 6
section, to provide for reliable operation of the bulk- 7
power system. The term includes requirements for 8
the operation of existing bulk-power system facilities 9
and the design of planned additions or modifications 10
to such facilities to the extent necessary to provide 11
for reliable operation of the bulk-power system, but 12
the term does not include any requirement to en- 13
large such facilities or to construct new transmission 14
capacity or generation capacity. 15
‘‘(4) The term ‘reliable operation’ means oper- 16
ating the elements of the bulk-power system within 17
equipment and electric system thermal, voltage, and 18
stability limits so that instability, uncontrolled sepa- 19
ration, or cascading failures of such system will not 20
occur as a result of a sudden disturbance or unan- 21
ticipated failure of system elements. 22
‘‘(5) The term ‘Interconnection’ means a geo- 23
graphic area in which the operation of bulk-power 24
system components is synchronized such that the 25
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3
failure of 1 or more of such components may ad- 1
versely affect the ability of the operators of other 2
components within the system to maintain reliable 3
operation of the facilities within their control. 4
‘‘(6) The term ‘transmission organization’ 5
means a Regional Transmission Organization, Inde- 6
pendent System Operator, independent transmission 7
provider, or other transmission organization finally 8
approved by the Commission for the operation of 9
transmission facilities. 10
‘‘(7) The term ‘regional entity’ means an entity 11
having enforcement authority pursuant to subsection 12
(e)(4). 13
‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The 14
Commission shall have jurisdiction, within the United 15
States, over the ERO certified by the Commission under 16
subsection (c), any regional entities, and all users, owners 17
and operators of the bulk-power system, including but not 18
limited to the entities described in section 201(f), for pur- 19
poses of approving reliability standards established under 20
this section and enforcing compliance with this section. All 21
users, owners and operators of the bulk-power system 22
shall comply with reliability standards that take effect 23
under this section. 24
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‘‘(2) The Commission shall issue a final rule to imple- 1
ment the requirements of this section not later than 180 2
days after the date of enactment of this section. 3
‘‘(c) CERTIFICATION.—Following the issuance of a 4
Commission rule under subsection (b)(2), any person may 5
submit an application to the Commission for certification 6
as the Electric Reliability Organization. The Commission 7
may certify 1 such ERO if the Commission determines 8
that such ERO— 9
‘‘(1) has the ability to develop and enforce, sub- 10
ject to subsection (e)(2), reliability standards that 11
provide for an adequate level of reliability of the 12
bulk-power system; and 13
‘‘(2) has established rules that— 14
‘‘(A) assure its independence of the users 15
and owners and operators of the bulk-power 16
system, while assuring fair stakeholder rep- 17
resentation in the selection of its directors and 18
balanced decisionmaking in any ERO com- 19
mittee or subordinate organizational structure; 20
‘‘(B) allocate equitably reasonable dues, 21
fees, and other charges among end users for all 22
activities under this section; 23
‘‘(C) provide fair and impartial procedures 24
for enforcement of reliability standards through 25
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5
the imposition of penalties in accordance with 1
subsection (e) (including limitations on activi- 2
ties, functions, or operations, or other appro- 3
priate sanctions); 4
‘‘(D) provide for reasonable notice and op- 5
portunity for public comment, due process, 6
openness, and balance of interests in developing 7
reliability standards and otherwise exercising its 8
duties; and 9
‘‘(E) provide for taking, after certification, 10
appropriate steps to gain recognition in Canada 11
and Mexico. 12
‘‘(d) RELIABILITY STANDARDS.—(1) The Electric 13
Reliability Organization shall file each reliability standard 14
or modification to a reliability standard that it proposes 15
to be made effective under this section with the Commis- 16
sion. 17
‘‘(2) The Commission may approve, by rule or order, 18
a proposed reliability standard or modification to a reli- 19
ability standard if it determines that the standard is just, 20
reasonable, not unduly discriminatory or preferential, and 21
in the public interest. The Commission shall give due 22
weight to the technical expertise of the Electric Reliability 23
Organization with respect to the content of a proposed 24
standard or modification to a reliability standard and to 25
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6
the technical expertise of a regional entity organized on 1
an Interconnection-wide basis with respect to a reliability 2
standard to be applicable within that Interconnection, but 3
shall not defer with respect to the effect of a standard 4
on competition. A proposed standard or modification shall 5
take effect upon approval by the Commission. 6
‘‘(3) The Electric Reliability Organization shall 7
rebuttably presume that a proposal from a regional entity 8
organized on an Interconnection-wide basis for a reliability 9
standard or modification to a reliability standard to be ap- 10
plicable on an Interconnection-wide basis is just, reason- 11
able, and not unduly discriminatory or preferential, and 12
in the public interest. 13
‘‘(4) The Commission shall remand to the Electric 14
Reliability Organization for further consideration a pro- 15
posed reliability standard or a modification to a reliability 16
standard that the Commission disapproves in whole or in 17
part. 18
‘‘(5) The Commission, upon its own motion or upon 19
complaint, may order the Electric Reliability Organization 20
to submit to the Commission a proposed reliability stand- 21
ard or a modification to a reliability standard that ad- 22
dresses a specific matter if the Commission considers such 23
a new or modified reliability standard appropriate to carry 24
out this section. 25
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7
‘‘(6) The final rule adopted under subsection (b)(2) 1
shall include fair processes for the identification and time- 2
ly resolution of any conflict between a reliability standard 3
and any function, rule, order, tariff, rate schedule, or 4
agreement accepted, approved, or ordered by the Commis- 5
sion applicable to a transmission organization. Such trans- 6
mission organization shall continue to comply with such 7
function, rule, order, tariff, rate schedule or agreement ac- 8
cepted approved, or ordered by the Commission until— 9
‘‘(A) the Commission finds a conflict exists be- 10
tween a reliability standard and any such provision; 11
‘‘(B) the Commission orders a change to such 12
provision pursuant to section 206 of this part; and 13
‘‘(C) the ordered change becomes effective 14
under this part. 15
If the Commission determines that a reliability standard 16
needs to be changed as a result of such a conflict, it shall 17
order the ERO to develop and file with the Commission 18
a modified reliability standard under paragraph (4) or (5) 19
of this subsection. 20
‘‘(e) ENFORCEMENT.—(1) The ERO may impose, 21
subject to paragraph (2), a penalty on a user or owner 22
or operator of the bulk-power system for a violation of a 23
reliability standard approved by the Commission under 24
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8
subsection (d) if the ERO, after notice and an opportunity 1
for a hearing— 2
‘‘(A) finds that the user or owner or operator 3
has violated a reliability standard approved by the 4
Commission under subsection (d); and 5
‘‘(B) files notice and the record of the pro- 6
ceeding with the Commission. 7
‘‘(2) A penalty imposed under paragraph (1) may 8
take effect not earlier than the 31st day after the ERO 9
files with the Commission notice of the penalty and the 10
record of proceedings. Such penalty shall be subject to re- 11
view by the Commission, on its own motion or upon appli- 12
cation by the user, owner or operator that is the subject 13
of the penalty filed within 30 days after the date such 14
notice is filed with the Commission. Application to the 15
Commission for review, or the initiation of review by the 16
Commission on its own motion, shall not operate as a stay 17
of such penalty unless the Commission otherwise orders 18
upon its own motion or upon application by the user, 19
owner or operator that is the subject of such penalty. In 20
any proceeding to review a penalty imposed under para- 21
graph (1), the Commission, after notice and opportunity 22
for hearing (which hearing may consist solely of the record 23
before the ERO and opportunity for the presentation of 24
supporting reasons to affirm, modify, or set aside the pen- 25
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9
alty), shall by order affirm, set aside, reinstate, or modify 1
the penalty, and, if appropriate, remand to the ERO for 2
further proceedings. The Commission shall implement ex- 3
pedited procedures for such hearings. 4
‘‘(3) On its own motion or upon complaint, the Com- 5
mission may order compliance with a reliability standard 6
and may impose a penalty against a user or owner or oper- 7
ator of the bulk-power system if the Commission finds, 8
after notice and opportunity for a hearing, that the user 9
or owner or operator of the bulk-power system has en- 10
gaged or is about to engage in any acts or practices that 11
constitute or will constitute a violation of a reliability 12
standard. 13
‘‘(4) The Commission shall issue regulations author- 14
izing the ERO to enter into an agreement to delegate au- 15
thority to a regional entity for the purpose of proposing 16
reliability standards to the ERO and enforcing reliability 17
standards under paragraph (1) if— 18
‘‘(A) the regional entity is governed by— 19
‘‘(i) an independent board; 20
‘‘(ii) a balanced stakeholder board; or 21
‘‘(iii) a combination independent and bal- 22
anced stakeholder board. 23
‘‘(B) the regional entity otherwise satisfies the 24
provisions of subsection (c)(1) and (2); and 25
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10
‘‘(C) the agreement promotes effective and effi- 1
cient administration of bulk-power system reliability. 2
The Commission may modify such delegation. The ERO 3
and the Commission shall rebuttably presume that a pro- 4
posal for delegation to a regional entity organized on an 5
Interconnection-wide basis promotes effective and efficient 6
administration of bulk-power system reliability and should 7
be approved. Such regulation may provide that the Com- 8
mission may assign the ERO’s authority to enforce reli- 9
ability standards under paragraph (1) directly to a re- 10
gional entity consistent with the requirements of this para- 11
graph. 12
‘‘(5) The Commission may take such action as is nec- 13
essary or appropriate against the ERO or a regional entity 14
to ensure compliance with a reliability standard or any 15
Commission order affecting the ERO or a regional entity. 16
‘‘(6) Any penalty imposed under this section shall 17
bear a reasonable relation to the seriousness of the viola- 18
tion and shall take into consideration the efforts of such 19
user, owner, or operator to remedy the violation in a time- 20
ly manner. 21
‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZA- 22
TION RULES.—The Electric Reliability Organization shall 23
file with the Commission for approval any proposed rule 24
or proposed rule change, accompanied by an explanation 25
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11
of its basis and purpose. The Commission, upon its own 1
motion or complaint, may propose a change to the rules 2
of the ERO. A proposed rule or proposed rule change shall 3
take effect upon a finding by the Commission, after notice 4
and opportunity for comment, that the change is just, rea- 5
sonable, not unduly discriminatory or preferential, is in 6
the public interest, and satisfies the requirements of sub- 7
section (c). 8
‘‘(g) RELIABILITY REPORTS.—The ERO shall con- 9
duct periodic assessments of the reliability and adequacy 10
of the bulk-power system in North America. 11
‘‘(h) COORDINATION WITH CANADA AND MEXICO.— 12
The President is urged to negotiate international agree- 13
ments with the governments of Canada and Mexico to pro- 14
vide for effective compliance with reliability standards and 15
the effectiveness of the ERO in the United States and 16
Canada or Mexico. 17
‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have 18
authority to develop and enforce compliance with reli- 19
ability standards for only the bulk-power system. 20
‘‘(2) This section does not authorize the ERO or the 21
Commission to order the construction of additional gen- 22
eration or transmission capacity or to set and enforce com- 23
pliance with standards for adequacy or safety of electric 24
facilities or services. 25
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12
‘‘(3) Nothing in this section shall be construed to pre- 1
empt any authority of any State to take action to ensure 2
the safety, adequacy, and reliability of electric service 3
within that State, as long as such action is not incon- 4
sistent with any reliability standard. 5
‘‘(4) Within 90 days of the application of the Electric 6
Reliability Organization or other affected party, and after 7
notice and opportunity for comment, the Commission shall 8
issue a final order determining whether a State action is 9
inconsistent with a reliability standard, taking into consid- 10
eration any recommendation of the ERO. 11
‘‘(5) The Commission, after consultation with the 12
ERO and the State taking action, may stay the effective- 13
ness of any State action, pending the Commission’s 14
issuance of a final order. 15
‘‘(j) REGIONAL ADVISORY BODIES.—The Commis- 16
sion shall establish a regional advisory body on the petition 17
of at least 2/3 of the States within a region that have more 18
than 1/2 of their electric load served within the region. A 19
regional advisory body shall be composed of 1 member 20
from each participating State in the region, appointed by 21
the Governor of each State, and may include representa- 22
tives of agencies, States, and provinces outside the United 23
States. A regional advisory body may provide advice to the 24
Electric Reliability Organization, a regional entity, or the 25
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Commission regarding the governance of an existing or 1
proposed regional entity within the same region, whether 2
a standard proposed to apply within the region is just, 3
reasonable, not unduly discriminatory or preferential, and 4
in the public interest, whether fees proposed to be assessed 5
within the region are just, reasonable, not unduly discrimi- 6
natory or preferential, and in the public interest and any 7
other responsibilities requested by the Commission. The 8
Commission may give deference to the advice of any such 9
regional advisory body if that body is organized on an 10
Interconnection-wide basis. 11
‘‘(k) ALASKA AND HAWAII.—The provisions of this 12
section do not apply to Alaska or Hawaii.’’. 13
(b) STATUS OF ERO.—The Electric Reliability Orga- 14
nization certified by the Federal Energy Regulatory Com- 15
mission under section 215(c) of the Federal Power Act 16
and any regional entity delegated enforcement authority 17
pursuant to section 215(e)(4) of that Act are not depart- 18
ments, agencies, or instrumentalities of the United States 19
Government. 20
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14
Subtitle B—Transmission 1
Infrastructure Modernization 2
SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANS- 3
MISSION FACILITIES. 4
(a) AMENDMENT OF FEDERAL POWER ACT.—Part 5
II of the Federal Power Act is amended by adding at the 6
end the following: 7
‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC TRANS- 8
MISSION FACILITIES. 9
‘‘(a) DESIGNATION OF NATIONAL INTEREST ELEC- 10
TRIC TRANSMISSION CORRIDORS.— 11
‘‘(1) TRANSMISSION CONGESTION STUDY.— 12
Within 1 year after the enactment of this section, 13
and every 3 years thereafter, the Secretary of En- 14
ergy, in consultation with affected States, shall con- 15
duct a study of electric transmission congestion. 16
After considering alternatives and recommendations 17
from interested parties, including an opportunity for 18
comment from affected States, the Secretary shall 19
issue a report, based on such study, which may des- 20
ignate any geographic area experiencing electric en- 21
ergy transmission capacity constraints or congestion 22
that adversely affects consumers as a national inter- 23
est electric transmission corridor. The Secretary 24
shall conduct the study and issue the report in con- 25
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15
sultation with any appropriate regional entity ref- 1
erenced in section 215 of this Act. 2
‘‘(2) CONSIDERATIONS.—In determining wheth- 3
er to designate a national interest electric trans- 4
mission corridor referred to in paragraph (1) under 5
this section, the Secretary may consider whether— 6
‘‘(A) the economic vitality and development 7
of the corridor, or the end markets served by 8
the corridor, may be constrained by lack of ade- 9
quate or reasonably priced electricity; 10
‘‘(B)(i) economic growth in the corridor, or 11
the end markets served by the corridor, may be 12
jeopardized by reliance on limited sources of en- 13
ergy; and 14
‘‘(ii) a diversification of supply is war- 15
ranted; 16
‘‘(C) the energy independence of the 17
United States would be served by the designa- 18
tion; 19
‘‘(D) the designation would be in the inter- 20
est of national energy policy; and 21
‘‘(E) the designation would enhance na- 22
tional defense and homeland security. 23
‘‘(b) CONSTRUCTION PERMIT.—Except as provided 24
in subsection (i), the Commission is authorized, after no- 25
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16
tice and an opportunity for hearing, to issue a permit or 1
permits for the construction or modification of electric 2
transmission facilities in a national interest electric trans- 3
mission corridor designated by the Secretary under sub- 4
section (a) if the Commission finds that— 5
‘‘(1)(A) a State in which the transmission fa- 6
cilities are to be constructed or modified is without 7
authority to— 8
‘‘(i) approve the siting of the facilities; or 9
‘‘(ii) consider the interstate benefits ex- 10
pected to be achieved by the proposed construc- 11
tion or modification of transmission facilities in 12
the State; 13
‘‘(B) the applicant for a permit is a transmit- 14
ting utility under this Act but does not qualify to 15
apply for a permit or siting approval for the pro- 16
posed project in a State because the applicant does 17
not serve end-use customers in the State; or 18
‘‘(C) a State commission or other entity that 19
has authority to approve the siting of the facilities 20
has— 21
‘‘(i) withheld approval for more than 1 22
year after the filing of an application pursuant 23
to applicable law seeking approval or 1 year 24
after the designation of the relevant national in- 25
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November 14, 2003 (9:44 PM)
17
terest electric transmission corridor, whichever 1
is later; or 2
‘‘(ii) conditioned its approval in such a 3
manner that the proposed construction or modi- 4
fication will not significantly reduce trans- 5
mission congestion in interstate commerce or is 6
not economically feasible; 7
‘‘(2) the facilities to be authorized by the per- 8
mit will be used for the transmission of electric en- 9
ergy in interstate commerce; 10
‘‘(3) the proposed construction or modification 11
is consistent with the public interest; 12
‘‘(4) the proposed construction or modification 13
will significantly reduce transmission congestion in 14
interstate commerce and protects or benefits con- 15
sumers; and 16
‘‘(5) the proposed construction or modification 17
is consistent with sound national energy policy and 18
will enhance energy independence. 19
‘‘(c) PERMIT APPLICATIONS.—Permit applications 20
under subsection (b) shall be made in writing to the Com- 21
mission. The Commission shall issue rules setting forth 22
the form of the application, the information to be con- 23
tained in the application, and the manner of service of no- 24
tice of the permit application upon interested persons. 25
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18
‘‘(d) COMMENTS.—In any proceeding before the 1
Commission under subsection (b), the Commission shall 2
afford each State in which a transmission facility covered 3
by the permit is or will be located, each affected Federal 4
agency and Indian tribe, private property owners, and 5
other interested persons, a reasonable opportunity to 6
present their views and recommendations with respect to 7
the need for and impact of a facility covered by the permit. 8
‘‘(e) RIGHTS-OF-WAY.—In the case of a permit under 9
subsection (b) for electric transmission facilities to be lo- 10
cated on property other than property owned by the 11
United States or a State, if the permit holder cannot ac- 12
quire by contract, or is unable to agree with the owner 13
of the property to the compensation to be paid for, the 14
necessary right-of-way to construct or modify such trans- 15
mission facilities, the permit holder may acquire the right- 16
of-way by the exercise of the right of eminent domain in 17
the district court of the United States for the district in 18
which the property concerned is located, or in the appro- 19
priate court of the State in which the property is located. 20
The practice and procedure in any action or proceeding 21
for that purpose in the district court of the United States 22
shall conform as nearly as may be with the practice and 23
procedure in similar action or proceeding in the courts of 24
the State where the property is situated. 25
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19
‘‘(f) STATE LAW.—Nothing in this section shall pre- 1
clude any person from constructing or modifying any 2
transmission facility pursuant to State law. 3
‘‘(g) COMPENSATION.—Any exercise of eminent do- 4
main authority pursuant to this section shall be considered 5
a taking of private property for which just compensation 6
is due. Just compensation shall be an amount equal to 7
the full fair market value of the property taken on the 8
date of the exercise of eminent domain authority, except 9
that the compensation shall exceed fair market value if 10
necessary to make the landowner whole for decreases in 11
the value of any portion of the land not subject to eminent 12
domain. Any parcel of land acquired by eminent domain 13
under this subsection shall be transferred back to the 14
owner from whom it was acquired (or his heirs or assigns) 15
if the land is not used for the construction or modification 16
of electric transmission facilities within a reasonable pe- 17
riod of time after the acquisition. Other than construction, 18
modification, operation, or maintenance of electric trans- 19
mission facilities and related facilities, property acquired 20
under subsection (e) may not be used for any purpose (in- 21
cluding use for any heritage area, recreational trail, or 22
park) without the consent of the owner of the parcel from 23
whom the property was acquired (or the owner’s heirs or 24
assigns). 25
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20
‘‘(h) COORDINATION OF FEDERAL AUTHORIZATIONS 1
FOR TRANSMISSION AND DISTRIBUTION FACILITIES.— 2
‘‘(1) LEAD AGENCY.—If an applicant, or pro- 3
spective applicant, for a Federal authorization re- 4
lated to an electric transmission or distribution facil- 5
ity so requests, the Department of Energy (DOE) 6
shall act as the lead agency for purposes of coordi- 7
nating all applicable Federal authorizations and re- 8
lated environmental reviews of the facility. For pur- 9
poses of this subsection, the term ‘Federal author- 10
ization’ means any authorization required under 11
Federal law in order to site a transmission or dis- 12
tribution facility, including but not limited to such 13
permits, special use authorizations, certifications, 14
opinions, or other approvals as may be required, 15
whether issued by a Federal or a State agency. To 16
the maximum extent practicable under applicable 17
Federal law, the Secretary of Energy shall coordi- 18
nate this Federal authorization and review process 19
with any Indian tribes, multi-State entities, and 20
State agencies that are responsible for conducting 21
any separate permitting and environmental reviews 22
of the facility, to ensure timely and efficient review 23
and permit decisions. 24
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21
‘‘(2) AUTHORITY TO SET DEADLINES.—As lead 1
agency, the Department of Energy, in consultation 2
with agencies responsible for Federal authorizations 3
and, as appropriate, with Indian tribes, multi-State 4
entities, and State agencies that are willing to co- 5
ordinate their own separate permitting and environ- 6
mental reviews with the Federal authorization and 7
environmental reviews, shall establish prompt and 8
binding intermediate milestones and ultimate dead- 9
lines for the review of, and Federal authorization de- 10
cisions relating to, the proposed facility. The Sec- 11
retary of Energy shall ensure that once an applica- 12
tion has been submitted with such data as the Sec- 13
retary considers necessary, all permit decisions and 14
related environmental reviews under all applicable 15
Federal laws shall be completed within 1 year or, if 16
a requirement of another provision of Federal law 17
makes this impossible, as soon thereafter as is prac- 18
ticable. The Secretary of Energy also shall provide 19
an expeditious pre-application mechanism for pro- 20
spective applicants to confer with the agencies in- 21
volved to have each such agency determine and com- 22
municate to the prospective applicant within 60 days 23
of when the prospective applicant submits a request 24
for such information concerning— 25
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22
‘‘(A) the likelihood of approval for a poten- 1
tial facility; and 2
‘‘(B) key issues of concern to the agencies 3
and public. 4
‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW 5
AND RECORD OF DECISION.—As lead agency head, 6
the Secretary of Energy, in consultation with the af- 7
fected agencies, shall prepare a single environmental 8
review document, which shall be used as the basis 9
for all decisions on the proposed project under Fed- 10
eral law. The document may be an environmental as- 11
sessment or environmental impact statement under 12
the National Environmental Policy Act of 1969 if 13
warranted, or such other form of analysis as may be 14
warranted. The Secretary of Energy and the heads 15
of other agencies shall streamline the review and 16
permitting of transmission and distribution facilities 17
within corridors designated under section 503 of the 18
Federal Land Policy and Management Act (43 19
U.S.C. 1763) by fully taking into account prior anal- 20
yses and decisions relating to the corridors. Such 21
document shall include consideration by the relevant 22
agencies of any applicable criteria or other matters 23
as required under applicable laws. 24
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23
‘‘(4) APPEALS.—In the event that any agency 1
has denied a Federal authorization required for a 2
transmission or distribution facility, or has failed to 3
act by the deadline established by the Secretary pur- 4
suant to this section for deciding whether to issue 5
the authorization, the applicant or any State in 6
which the facility would be located may file an ap- 7
peal with the Secretary, who shall, in consultation 8
with the affected agency, review the denial or take 9
action on the pending application. Based on the 10
overall record and in consultation with the affected 11
agency, the Secretary may then either issue the nec- 12
essary authorization with any appropriate condi- 13
tions, or deny the application. The Secretary shall 14
issue a decision within 90 days of the filing of the 15
appeal. In making a decision under this paragraph, 16
the Secretary shall comply with applicable require- 17
ments of Federal law, including any requirements of 18
the Endangered Species Act, the Clean Water Act, 19
the National Forest Management Act, the National 20
Environmental Policy Act of 1969, and the Federal 21
Land Policy and Management Act. 22
‘‘(5) CONFORMING REGULATIONS AND MEMO- 23
RANDA OF UNDERSTANDING.—Not later than 18 24
months after the date of enactment of this section, 25
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November 14, 2003 (9:44 PM)
24
the Secretary of Energy shall issue any regulations 1
necessary to implement this subsection. Not later 2
than 1 year after the date of enactment of this sec- 3
tion, the Secretary and the heads of all Federal 4
agencies with authority to issue Federal authoriza- 5
tions shall enter into Memoranda of Understanding 6
to ensure the timely and coordinated review and per- 7
mitting of electricity transmission and distribution 8
facilities. The head of each Federal agency with au- 9
thority to issue a Federal authorization shall des- 10
ignate a senior official responsible for, and dedicate 11
sufficient other staff and resources to ensure, full 12
implementation of the DOE regulations and any 13
Memoranda. Interested Indian tribes, multi-State 14
entities, and State agencies may enter such Memo- 15
randa of Understanding. 16
‘‘(6) DURATION AND RENEWAL.—Each Federal 17
land use authorization for an electricity transmission 18
or distribution facility shall be issued— 19
‘‘(A) for a duration, as determined by the 20
Secretary of Energy, commensurate with the 21
anticipated use of the facility, and 22
‘‘(B) with appropriate authority to manage 23
the right-of-way for reliability and environ- 24
mental protection. 25
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25
Upon the expiration of any such authorization (in- 1
cluding an authorization issued prior to enactment 2
of this section), the authorization shall be reviewed 3
for renewal taking fully into account reliance on 4
such electricity infrastructure, recognizing its impor- 5
tance for public health, safety and economic welfare 6
and as a legitimate use of Federal lands. 7
‘‘(7) MAINTAINING AND ENHANCING THE 8
TRANSMISSION INFRASTRUCTURE.—In exercising the 9
responsibilities under this section, the Secretary of 10
Energy shall consult regularly with the Federal En- 11
ergy Regulatory Commission (FERC), FERC-ap- 12
proved electric reliability organizations (including re- 13
lated regional entities), and FERC-approved Re- 14
gional Transmission Organizations and Independent 15
System Operators. 16
‘‘(i) INTERSTATE COMPACTS.—The consent of Con- 17
gress is hereby given for States to enter into interstate 18
compacts establishing regional transmission siting agen- 19
cies to facilitate siting of future electric energy trans- 20
mission facilities within such States and to carry out the 21
electric energy transmission siting responsibilities of such 22
States. The Secretary of Energy may provide technical as- 23
sistance to regional transmission siting agencies estab- 24
lished under this subsection. Such regional transmission 25
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26
siting agencies shall have the authority to review, certify, 1
and permit siting of transmission facilities, including fa- 2
cilities in national interest electric transmission corridors 3
(other than facilities on property owned by the United 4
States). The Commission shall have no authority to issue 5
a permit for the construction or modification of electric 6
transmission facilities within a State that is a party to 7
a compact, unless the Secretary makes, after notice and 8
an opportunity for a hearing, the finding described in sec- 9
tion (b)(1)(C). 10
‘‘(j) SAVINGS CLAUSE.—Nothing in this section shall 11
be construed to affect any requirement of the environ- 12
mental laws of the United States, including, but not lim- 13
ited to, the National Environmental Policy Act of 1969. 14
Subsection (h)(4) of this section shall not apply to any 15
Congressionally-designated components of the National 16
Wilderness Preservation System, the National Wild and 17
Scenic Rivers System, or the National Park system (in- 18
cluding National Monuments therein). 19
‘‘(k) ERCOT.—This section shall not apply within 20
the area referred to in section 212(k)(2)(A).’’. 21
(b) REPORTS TO CONGRESS ON CORRIDORS AND 22
RIGHTS OF WAY ON FEDERAL LANDS.—The Secretary of 23
the Interior, the Secretary of Energy, the Secretary of Ag- 24
riculture, and the Chairman of the Council on Environ- 25
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mental Quality shall, within 90 days of the date of enact- 1
ment of this subsection, submit a joint report to Congress 2
identifying each of the following: 3
(1) All existing designated transmission and 4
distribution corridors on Federal land and the status 5
of work related to proposed transmission and dis- 6
tribution corridor designations under Title V of the 7
Federal Land Policy and Management Act (43 8
U.S.C. 1761 et. Seq.), the schedule for completing 9
such work, any impediments to completing the work, 10
and steps that Congress could take to expedite the 11
process. 12
(2) The number of pending applications to lo- 13
cate transmission and distribution facilities on Fed- 14
eral lands, key information relating to each such fa- 15
cility, how long each application has been pending, 16
the schedule for issuing a timely decision as to each 17
facility, and progress in incorporating existing and 18
new such rights-of-way into relevant land use and 19
resource management plans or their equivalent. 20
(3) The number of existing transmission and 21
distribution rights-of-way on Federal lands that will 22
come up for renewal within the following 5, 10, and 23
15 year periods, and a description of how the Secre- 24
taries plan to manage such renewals. 25
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SEC. 1222. THIRD-PARTY FINANCE. 1
(a) EXISTING FACILITIES.—The Secretary of Energy 2
(hereinafter in this section referred to as the ‘‘Secretary’’), 3
acting through the Administrator of the Western Area 4
Power Administration (hereinafter in this section referred 5
to as ‘‘WAPA’’), or through the Administrator of the 6
Southwestern Power Administration (hereinafter in this 7
section referred to as ‘‘SWPA’’), or both, may design, de- 8
velop, construct, operate, maintain, or own, or participate 9
with other entities in designing, developing, constructing, 10
operating, maintaining, or owning, an electric power 11
transmission facility and related facilities (‘‘Project’’) 12
needed to upgrade existing transmission facilities owned 13
by SWPA or WAPA if the Secretary of Energy, in con- 14
sultation with the applicable Administrator, determines 15
that the proposed Project— 16
(1)(A) is located in a national interest electric 17
transmission corridor designated under section 18
216(a) of the Federal Power Act and will reduce 19
congestion of electric transmission in interstate com- 20
merce; or 21
(B) is necessary to accommodate an actual or 22
projected increase in demand for electric trans- 23
mission capacity; 24
(2) is consistent with— 25
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(A) transmission needs identified, in a 1
transmission expansion plan or otherwise, by 2
the appropriate Regional Transmission Organi- 3
zation or Independent System Operator (as de- 4
fined in the Federal Power Act), if any, or ap- 5
proved regional reliability organization; and 6
(B) efficient and reliable operation of the 7
transmission grid; and 8
(3) would be operated in conformance with pru- 9
dent utility practice. 10
(b) NEW FACILITIES.—The Secretary, acting 11
through WAPA or SWPA, or both, may design, develop, 12
construct, operate, maintain, or own, or participate with 13
other entities in designing, developing, constructing, oper- 14
ating, maintaining, or owning, a new electric power trans- 15
mission facility and related facilities (‘‘Project’’) located 16
within any State in which WAPA or SWPA operates if 17
the Secretary, in consultation with the applicable Adminis- 18
trator, determines that the proposed Project— 19
(1)(A) is located in an area designated under 20
section 216(a) of the Federal Power Act and will re- 21
duce congestion of electric transmission in interstate 22
commerce; or 23
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(B) is necessary to accommodate an actual or 1
projected increase in demand for electric trans- 2
mission capacity; 3
(2) is consistent with— 4
(A) transmission needs identified, in a 5
transmission expansion plan or otherwise, by 6
the appropriate Regional Transmission Organi- 7
zation or Independent System Operator, if any, 8
or approved regional reliability organization; 9
and 10
(B) efficient and reliable operation of the 11
transmission grid; 12
(3) will be operated in conformance with pru- 13
dent utility practice; 14
(4) will be operated by, or in conformance with 15
the rules of, the appropriate (A) Regional Trans- 16
mission Organization or Independent System Oper- 17
ator, if any, or (B) if such an organization does not 18
exist, regional reliability organization; and 19
(5) will not duplicate the functions of existing 20
transmission facilities or proposed facilities which 21
are the subject of ongoing or approved siting and re- 22
lated permitting proceedings. 23
(c) OTHER FUNDS.— 24
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(1) IN GENERAL.—In carrying out a Project 1
under subsection (a) or (b), the Secretary may ac- 2
cept and use funds contributed by another entity for 3
the purpose of carrying out the Project. 4
(2) AVAILABILITY.—The contributed funds 5
shall be available for expenditure for the purpose of 6
carrying out the Project— 7
(A) without fiscal year limitation; and 8
(B) as if the funds had been appropriated 9
specifically for that Project. 10
(3) ALLOCATION OF COSTS.—In carrying out a 11
Project under subsection (a) or (b), any costs of the 12
Project not paid for by contributions from another 13
entity shall be collected through rates charged to 14
customers using the new transmission capability pro- 15
vided by the Project and allocated equitably among 16
these project beneficiaries using the new trans- 17
mission capability. 18
(d) RELATIONSHIP TO OTHER LAWS.—Nothing in 19
this section affects any requirement of— 20
(1) any Federal environmental law, including 21
the National Environmental Policy Act of 1969 (42 22
U.S.C. 4321 et seq.); 23
(2) any Federal or State law relating to the 24
siting of energy facilities; or 25
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(3) any existing authorizing statutes. 1
(e) SAVINGS CLAUSE.—Nothing in this section shall 2
constrain or restrict an Administrator in the utilization 3
of other authority delegated to the Administrator of 4
WAPA or SWPA. 5
(f) SECRETARIAL DETERMINATIONS.—Any deter- 6
mination made pursuant to subsections (a) or (b) shall 7
be based on findings by the Secretary using the best avail- 8
able data. 9
(g) MAXIMUM FUNDING AMOUNT.—The Secretary 10
shall not accept and use more than $100,000,000 under 11
subsection (c)(1) for the period encompassing fiscal years 12
2004 through 2013. 13
SEC. 1223. TRANSMISSION SYSTEM MONITORING. 14
Within 6 months after the date of enactment of this 15
Act, the Secretary of Energy and the Federal Energy Reg- 16
ulatory Commission shall study and report to Congress on 17
the steps which must be taken to establish a system to 18
make available to all transmission system owners and Re- 19
gional Transmission Organizations (as defined in the Fed- 20
eral Power Act) within the Eastern and Western Inter- 21
connections real-time information on the functional status 22
of all transmission lines within such Interconnections. In 23
such study, the Commission shall assess technical means 24
for implementing such transmission information system 25
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33
and identify the steps the Commission or Congress must 1
take to require the implementation of such system. 2
SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES. 3
(a) AUTHORITY.—The Federal Energy Regulatory 4
Commission, in the exercise of its authorities under the 5
Federal Power Act and the Public Utility Regulatory Poli- 6
cies Act of 1978, shall encourage the deployment of ad- 7
vanced transmission technologies. 8
(b) DEFINITION.—For the purposes of this section, 9
the term ‘‘advanced transmission technologies’’ means 10
technologies that increase the capacity, efficiency, or reli- 11
ability of existing or new transmission facilities, including, 12
but not limited to— 13
(1) high-temperature lines (including super- 14
conducting cables); 15
(2) underground cables; 16
(3) advanced conductor technology (including 17
advanced composite conductors, high-temperature 18
low-sag conductors, and fiber optic temperature 19
sensing conductors); 20
(4) high-capacity ceramic electric wire, connec- 21
tors, and insulators; 22
(5) optimized transmission line configurations 23
(including multiple phased transmission lines); 24
(6) modular equipment; 25
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(7) wireless power transmission; 1
(8) ultra-high voltage lines; 2
(9) high-voltage DC technology; 3
(10) flexible AC transmission systems; 4
(11) energy storage devices (including pumped 5
hydro, compressed air, superconducting magnetic en- 6
ergy storage, flywheels, and batteries); 7
(12) controllable load; 8
(13) distributed generation (including PV, fuel 9
cells, microturbines); 10
(14) enhanced power device monitoring; 11
(15) direct system state sensors; 12
(16) fiber optic technologies; 13
(17) power electronics and related software (in- 14
cluding real time monitoring and analytical soft- 15
ware); and 16
(18) any other technologies the Commission 17
considers appropriate. 18
(c) OBSOLETE OR IMPRACTICABLE TECH- 19
NOLOGIES.—The Commission is authorized to cease en- 20
couraging the deployment of any technology described in 21
this section on a finding that such technology has been 22
rendered obsolete or otherwise impracticable to deploy. 23
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SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION 1
PROGRAMS. 2
(a) ELECTRIC TRANSMISSION AND DISTRIBUTION 3
PROGRAM.—The Secretary of Energy (hereinafter in this 4
section referred to as the ‘‘Secretary’’) acting through the 5
Director of the Office of Electric Transmission and Dis- 6
tribution shall establish a comprehensive research, devel- 7
opment, demonstration and commercial application pro- 8
gram to promote improved reliability and efficiency of 9
electrical transmission and distribution systems. This pro- 10
gram shall include— 11
(1) advanced energy delivery and storage tech- 12
nologies, materials, and systems, including new 13
transmission technologies, such as flexible alter- 14
nating current transmission systems, composite con- 15
ductor materials and other technologies that enhance 16
reliability, operational flexibility, or power-carrying 17
capability; 18
(2) advanced grid reliability and efficiency tech- 19
nology development; 20
(3) technologies contributing to significant load 21
reductions; 22
(4) advanced metering, load management, and 23
control technologies; 24
(5) technologies to enhance existing grid compo- 25
nents; 26
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(6) the development and use of high-tempera- 1
ture superconductors to— 2
(A) enhance the reliability, operational 3
flexibility, or power-carrying capability of elec- 4
tric transmission or distribution systems; or 5
(B) increase the efficiency of electric en- 6
ergy generation, transmission, distribution, or 7
storage systems; 8
(7) integration of power systems, including sys- 9
tems to deliver high-quality electric power, electric 10
power reliability, and combined heat and power; 11
(8) supply of electricity to the power grid by 12
small scale, distributed and residential-based power 13
generators; 14
(9) the development and use of advanced grid 15
design, operation and planning tools; 16
(10) any other infrastructure technologies, as 17
appropriate; and 18
(11) technology transfer and education. 19
(b) PROGRAM PLAN.—Not later than 1 year after the 20
date of the enactment of this legislation, the Secretary, 21
in consultation with other appropriate Federal agencies, 22
shall prepare and transmit to Congress a 5-year program 23
plan to guide activities under this section. In preparing 24
the program plan, the Secretary may consult with utilities, 25
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energy services providers, manufacturers, institutions of 1
higher education, other appropriate State and local agen- 2
cies, environmental organizations, professional and tech- 3
nical societies, and any other persons the Secretary con- 4
siders appropriate. 5
(c) IMPLEMENTATION.—The Secretary shall consider 6
implementing this program using a consortium of indus- 7
try, university and national laboratory participants. 8
(d) REPORT.—Not later than 2 years after the trans- 9
mittal of the plan under subsection (b), the Secretary shall 10
transmit a report to Congress describing the progress 11
made under this section and identifying any additional re- 12
sources needed to continue the development and commer- 13
cial application of transmission and distribution infra- 14
structure technologies. 15
(e) POWER DELIVERY RESEARCH INITIATIVE.— 16
(1) IN GENERAL.—The Secretary shall establish 17
a research, development, demonstration, and com- 18
mercial application initiative specifically focused on 19
power delivery utilizing components incorporating 20
high temperature superconductivity. 21
(2) GOALS.—The goals of this initiative shall be 22
to— 23
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(A) establish facilities to develop high tem- 1
perature superconductivity power applications 2
in partnership with manufacturers and utilities; 3
(B) provide technical leadership for estab- 4
lishing reliability for high temperature super- 5
conductivity power applications including suit- 6
able modeling and analysis; 7
(C) facilitate commercial transition toward 8
direct current power transmission, storage, and 9
use for high power systems utilizing high tem- 10
perature superconductivity; and 11
(D) facilitate the integration of very low 12
impedance high temperature superconducting 13
wires and cables in existing electric networks to 14
improve system performance, power flow control 15
and reliability. 16
(3) REQUIREMENTS.—The initiative shall 17
include— 18
(A) feasibility analysis, planning, research, 19
and design to construct demonstrations of 20
superconducting links in high power, direct cur- 21
rent and controllable alternating current trans- 22
mission systems; 23
(B) public-private partnerships to dem- 24
onstrate deployment of high temperature super- 25
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conducting cable into testbeds simulating a re- 1
alistic transmission grid and under varying 2
transmission conditions, including actual grid 3
insertions; and 4
(C) testbeds developed in cooperation with 5
national laboratories, industries, and univer- 6
sities to demonstrate these technologies, pre- 7
pare the technologies for commercial introduc- 8
tion, and address cost or performance road- 9
blocks to successful commercial use. 10
(4) AUTHORIZATION OF APPROPRIATIONS.—For 11
purposes of carrying out this subsection, there are 12
authorized to be appropriated— 13
(A) for fiscal year 2004, $15,000,000; 14
(B) for fiscal year 2005, $20,000,000; 15
(C) for fiscal year 2006, $30,000,000; 16
(D) for fiscal year 2007, $35,000,000; and 17
(E) for fiscal year 2008, $40,000,000. 18
SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY IN- 19
CENTIVE PROGRAM. 20
(a) PROGRAM.—The Secretary of Energy is author- 21
ized to establish an Advanced Power System Technology 22
Incentive Program to support the deployment of certain 23
advanced power system technologies and to improve and 24
protect certain critical governmental, industrial, and com- 25
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mercial processes. Funds provided under this section shall 1
be used by the Secretary to make incentive payments to 2
eligible owners or operators of advanced power system 3
technologies to increase power generation through en- 4
hanced operational, economic, and environmental perform- 5
ance. Payments under this section may only be made upon 6
receipt by the Secretary of an incentive payment applica- 7
tion establishing an applicant as either— 8
(1) a qualifying advanced power system tech- 9
nology facility; or 10
(2) a qualifying security and assured power fa- 11
cility. 12
(b) INCENTIVES.—Subject to availability of funds, a 13
payment of 1.8 cents per kilowatt-hour shall be paid to 14
the owner or operator of a qualifying advanced power sys- 15
tem technology facility under this section for electricity 16
generated at such facility. An additional 0.7 cents per kilo- 17
watt-hour shall be paid to the owner or operator of a quali- 18
fying security and assured power facility for electricity 19
generated at such facility. Any facility qualifying under 20
this section shall be eligible for an incentive payment for 21
up to, but not more than, the first 10,000,000 kilowatt- 22
hours produced in any fiscal year. 23
(c) ELIGIBILITY.—For purposes of this section: 24
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(1) QUALIFYING ADVANCED POWER SYSTEM 1
TECHNOLOGY FACILITY.—The term ‘‘qualifying ad- 2
vanced power system technology facility’’ means a 3
facility using an advanced fuel cell, turbine, or hy- 4
brid power system or power storage system to gen- 5
erate or store electric energy. 6
(2) QUALIFYING SECURITY AND ASSURED 7
POWER FACILITY.—The term ‘‘qualifying security 8
and assured power facility’’ means a qualifying ad- 9
vanced power system technology facility determined 10
by the Secretary of Energy, in consultation with the 11
Secretary of Homeland Security, to be in critical 12
need of secure, reliable, rapidly available, high-qual- 13
ity power for critical governmental, industrial, or 14
commercial applications. 15
(d) AUTHORIZATION.—There are authorized to be ap- 16
propriated to the Secretary of Energy for the purposes 17
of this section, $10,000,000 for each of the fiscal years 18
2004 through 2010. 19
SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DIS- 20
TRIBUTION. 21
(a) CREATION OF AN OFFICE OF ELECTRIC TRANS- 22
MISSION AND DISTRIBUTION.—Title II of the Department 23
of Energy Organization Act (42 U.S.C. 7131 et seq.) (as 24
amended by section 502(a) of this Act) is amended by in- 25
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serting the following after section 217, as added by title 1
V of this Act: 2
‘‘SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DIS- 3
TRIBUTION. 4
‘‘(a) ESTABLISHMENT.—There is established within 5
the Department an Office of Electric Transmission and 6
Distribution. This Office shall be headed by a Director, 7
subject to the authority of the Secretary. The Director 8
shall be appointed by the Secretary. The Director shall 9
be compensated at the annual rate prescribed for level IV 10
of the Executive Schedule under section 5315 of title 5, 11
United States Code. 12
‘‘(b) DIRECTOR.—The Director shall— 13
‘‘(1) coordinate and develop a comprehensive, 14
multi-year strategy to improve the Nation’s elec- 15
tricity transmission and distribution; 16
‘‘(2) implement or, where appropriate, coordi- 17
nate the implementation of, the recommendations 18
made in the Secretary’s May 2002 National Trans- 19
mission Grid Study; 20
‘‘(3) oversee research, development, and dem- 21
onstration to support Federal energy policy related 22
to electricity transmission and distribution; 23
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‘‘(4) grant authorizations for electricity import 1
and export pursuant to section 202(c), (d), (e), and 2
(f) of the Federal Power Act (16 U.S.C. 824a); 3
‘‘(5) perform other functions, assigned by the 4
Secretary, related to electricity transmission and dis- 5
tribution; and 6
‘‘(6) develop programs for workforce training in 7
power and transmission engineering.’’. 8
(b) CONFORMING AMENDMENTS.—(1) The table of 9
contents of the Department of Energy Organization Act 10
(42 U.S.C. 7101 note) is amended by inserting after the 11
item relating to section 217 the following new item: 12
‘‘Sec. 218. Office of Electric Transmission and Distribution.’’.
(2) Section 5315 of title 5, United States Code, is 13
amended by inserting after the item relating to ‘‘Inspector 14
General, Department of Energy.’’ the following: 15
‘‘Director, Office of Electric Transmission and 16
Distribution, Department of Energy.’’. 17
Subtitle C—Transmission 18
Operation Improvements 19
SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. 20
Part II of the Federal Power Act (16 U.S.C. 824 et 21
seq.) is amended by inserting after section 211 the fol- 22
lowing new section: 23
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44
‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT- 1
TING UTILITIES. 2
‘‘(a) TRANSMISSION SERVICES.—Subject to section 3
212(h), the Commission may, by rule or order, require an 4
unregulated transmitting utility to provide transmission 5
services— 6
‘‘(1) at rates that are comparable to those that 7
the unregulated transmitting utility charges itself; 8
and 9
‘‘(2) on terms and conditions (not relating to 10
rates) that are comparable to those under which 11
such unregulated transmitting utility provides trans- 12
mission services to itself and that are not unduly 13
discriminatory or preferential. 14
‘‘(b) EXEMPTION.—The Commission shall exempt 15
from any rule or order under this section any unregulated 16
transmitting utility that— 17
‘‘(1) sells no more than 4,000,000 megawatt 18
hours of electricity per year; or 19
‘‘(2) does not own or operate any transmission 20
facilities that are necessary for operating an inter- 21
connected transmission system (or any portion 22
thereof); or 23
‘‘(3) meets other criteria the Commission deter- 24
mines to be in the public interest. 25
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‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The re- 1
quirements of subsection (a) shall not apply to facilities 2
used in local distribution. 3
‘‘(d) EXEMPTION TERMINATION.—Whenever the 4
Commission, after an evidentiary hearing held upon a 5
complaint and after giving consideration to reliability 6
standards established under section 215, finds on the 7
basis of a preponderance of the evidence that any exemp- 8
tion granted pursuant to subsection (b) unreasonably im- 9
pairs the continued reliability of an interconnected trans- 10
mission system, it shall revoke the exemption granted to 11
that transmitting utility. 12
‘‘(e) APPLICATION TO UNREGULATED TRANSMIT- 13
TING UTILITIES.—The rate changing procedures applica- 14
ble to public utilities under subsections (c) and (d) of sec- 15
tion 205 are applicable to unregulated transmitting utili- 16
ties for purposes of this section. 17
‘‘(f) REMAND.—In exercising its authority under 18
paragraph (1) of subsection (a), the Commission may re- 19
mand transmission rates to an unregulated transmitting 20
utility for review and revision where necessary to meet the 21
requirements of subsection (a). 22
‘‘(g) OTHER REQUESTS.—The provision of trans- 23
mission services under subsection (a) does not preclude a 24
request for transmission services under section 211. 25
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‘‘(h) LIMITATION.—The Commission may not require 1
a State or municipality to take action under this section 2
that would violate a private activity bond rule for purposes 3
of section 141 of the Internal Revenue Code of 1986 (26 4
U.S.C. 141). 5
‘‘(i) TRANSFER OF CONTROL OF TRANSMITTING FA- 6
CILITIES.—Nothing in this section authorizes the Commis- 7
sion to require an unregulated transmitting utility to 8
transfer control or operational control of its transmitting 9
facilities to an RTO or any other Commission-approved 10
independent transmission organization designated to pro- 11
vide nondiscriminatory transmission access. 12
‘‘(j) DEFINITION.—For purposes of this section, the 13
term ‘unregulated transmitting utility’ means an entity 14
that— 15
‘‘(1) owns or operates facilities used for the 16
transmission of electric energy in interstate com- 17
merce; and 18
‘‘(2) is an entity described in section 201(f).’’. 19
SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANS- 20
MISSION ORGANIZATIONS. 21
It is the sense of Congress that, in order to promote 22
fair, open access to electric transmission service, benefit 23
retail consumers, facilitate wholesale competition, improve 24
efficiencies in transmission grid management, promote 25
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grid reliability, remove opportunities for unduly discrimi- 1
natory or preferential transmission practices, and provide 2
for the efficient development of transmission infrastruc- 3
ture needed to meet the growing demands of competitive 4
wholesale power markets, all transmitting utilities in inter- 5
state commerce should voluntarily become members of Re- 6
gional Transmission Organizations as defined in section 7
3 of the Federal Power Act. 8
SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION AP- 9
PLICATIONS PROGRESS REPORT. 10
Not later than 120 days after the date of enactment 11
of this section, the Federal Energy Regulatory Commis- 12
sion shall submit to Congress a report containing each of 13
the following: 14
(1) A list of all regional transmission organiza- 15
tion applications filed at the Commission pursuant 16
to subpart F of part 35 of title 18, Code of Federal 17
Regulations (in this section referred to as ‘‘Order 18
No. 2000’’), including an identification of each pub- 19
lic utility and other entity included within the pro- 20
posed membership of the regional transmission orga- 21
nization. 22
(2) A brief description of the status of each 23
pending regional transmission organization applica- 24
tion, including a precise explanation of how each 25
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48
fails to comply with the minimal requirements of 1
Order No. 2000 and what steps need to be taken to 2
bring each application into such compliance. 3
(3) For any application that has not been fi- 4
nally approved by the Commission, a detailed de- 5
scription of every aspect of the application that the 6
Commission has determined does not conform to the 7
requirements of Order No. 2000. 8
(4) For any application that has not been fi- 9
nally approved by the Commission, an explanation 10
by the Commission of why the items described pur- 11
suant to paragraph (3) constitute material non- 12
compliance with the requirements of the Commis- 13
sion’s Order No. 2000 sufficient to justify denial of 14
approval by the Commission. 15
(5) For all regional transmission organization 16
applications filed pursuant to the Commission’s 17
Order No. 2000, whether finally approved or not— 18
(A) a discussion of that regional trans- 19
mission organization’s efforts to minimize rate 20
seams between itself and— 21
(i) other regional transmission organi- 22
zations; and 23
(ii) entities not participating in a re- 24
gional transmission organization; 25
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(B) a discussion of the impact of such 1
seams on consumers and wholesale competition; 2
and 3
(C) a discussion of minimizing cost-shifting 4
on consumers. 5
SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL 6
TRANSMISSION ORGANIZATIONS. 7
(a) DEFINITIONS.—For purposes of this section— 8
(1) APPROPRIATE FEDERAL REGULATORY AU- 9
THORITY.—The term ‘‘appropriate Federal regu- 10
latory authority’’ means— 11
(A) with respect to a Federal power mar- 12
keting agency (as defined in the Federal Power 13
Act), the Secretary of Energy, except that the 14
Secretary may designate the Administrator of a 15
Federal power marketing agency to act as the 16
appropriate Federal regulatory authority with 17
respect to the transmission system of that Fed- 18
eral power marketing agency; and 19
(B) with respect to the Tennessee Valley 20
Authority, the Board of Directors of the Ten- 21
nessee Valley Authority. 22
(2) FEDERAL UTILITY.—The term ‘‘Federal 23
utility’’ means a Federal power marketing agency or 24
the Tennessee Valley Authority. 25
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(3) TRANSMISSION SYSTEM.—The term ‘‘trans- 1
mission system’’ means electric transmission facili- 2
ties owned, leased, or contracted for by the United 3
States and operated by a Federal utility. 4
(b) TRANSFER.—The appropriate Federal regulatory 5
authority is authorized to enter into a contract, agreement 6
or other arrangement transferring control and use of all 7
or part of the Federal utility’s transmission system to an 8
RTO or ISO (as defined in the Federal Power Act), ap- 9
proved by the Federal Energy Regulatory Commission. 10
Such contract, agreement or arrangement shall include— 11
(1) performance standards for operation and 12
use of the transmission system that the head of the 13
Federal utility determines necessary or appropriate, 14
including standards that assure recovery of all the 15
Federal utility’s costs and expenses related to the 16
transmission facilities that are the subject of the 17
contract, agreement or other arrangement; consist- 18
ency with existing contracts and third-party financ- 19
ing arrangements; and consistency with said Federal 20
utility’s statutory authorities, obligations, and limi- 21
tations; 22
(2) provisions for monitoring and oversight by 23
the Federal utility of the RTO’s or ISO’s fulfillment 24
of the terms and conditions of the contract, agree- 25
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ment or other arrangement, including a provision for 1
the resolution of disputes through arbitration or 2
other means with the regional transmission organi- 3
zation or with other participants, notwithstanding 4
the obligations and limitations of any other law re- 5
garding arbitration; and 6
(3) a provision that allows the Federal utility to 7
withdraw from the RTO or ISO and terminate the 8
contract, agreement or other arrangement in accord- 9
ance with its terms. 10
Neither this section, actions taken pursuant to it, nor any 11
other transaction of a Federal utility using a regional 12
transmission organization shall confer upon the Federal 13
Energy Regulatory Commission jurisdiction or authority 14
over the Federal utility’s electric generation assets, electric 15
capacity or energy that the Federal utility is authorized 16
by law to market, or the Federal utility’s power sales ac- 17
tivities. 18
(c) EXISTING STATUTORY AND OTHER OBLIGA- 19
TIONS.— 20
(1) SYSTEM OPERATION REQUIREMENTS.—No 21
statutory provision requiring or authorizing a Fed- 22
eral utility to transmit electric power or to construct, 23
operate or maintain its transmission system shall be 24
construed to prohibit a transfer of control and use 25
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52
of its transmission system pursuant to, and subject 1
to all requirements of subsection (b). 2
(2) OTHER OBLIGATIONS.—This subsection 3
shall not be construed to— 4
(A) suspend, or exempt any Federal utility 5
from, any provision of existing Federal law, in- 6
cluding but not limited to any requirement or 7
direction relating to the use of the Federal util- 8
ity’s transmission system, environmental protec- 9
tion, fish and wildlife protection, flood control, 10
navigation, water delivery, or recreation; or 11
(B) authorize abrogation of any contract 12
or treaty obligation. 13
(3) REPEAL.—Section 311 of title III of Appen- 14
dix B of the Act of October 27, 2000 (P.L. 106– 15
377, section 1(a)(2); 114 Stat. 1441, 1441A–80; 16 16
U.S.C. 824n) is repealed. 17
SEC. 1235. STANDARD MARKET DESIGN. 18
(a) REMAND.—The Commission’s proposed rule- 19
making entitled ‘‘Remedying Undue Discrimination 20
through Open Access Transmission Service and Standard 21
Electricity Market Design’’ (Docket No. RM01–12–000) 22
(‘‘SMD NOPR’’) is remanded to the Commission for re- 23
consideration. No final rule mandating a standard elec- 24
tricity market design pursuant to the proposed rule- 25
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53
making, including any rule or order of general applica- 1
bility within the scope of the proposed rulemaking, may 2
be issued before October 31, 2006, or take effect before 3
December 31, 2006. Any final rule issued by the Commis- 4
sion pursuant to the proposed rulemaking shall be pre- 5
ceded by a second notice of proposed rulemaking issued 6
after the date of enactment of this Act and an opportunity 7
for public comment. 8
(b) SAVINGS CLAUSE.—This section shall not be con- 9
strued to modify or diminish any authority or obligation 10
the Commission has under this Act, the Federal Power 11
Act, or other applicable law, including, but not limited to, 12
any authority to— 13
(1) issue any rule or order (of general or par- 14
ticular applicability) pursuant to any such authority 15
or obligation; or 16
(2) act on a filing or filings by 1 or more trans- 17
mitting utilities for the voluntary formation of a Re- 18
gional Transmission Organization or Independent 19
System Operator (as defined in the Federal Power 20
Act) (and related market structures or rules) or vol- 21
untary modification of an existing Regional Trans- 22
mission Organization or Independent System Oper- 23
ator (and related market structures or rules). 24
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SEC. 1236. NATIVE LOAD SERVICE OBLIGATION. 1
Part II of the Federal Power Act (16 U.S.C. 824 et 2
seq.) is amended by adding at the end the following: 3
‘‘SEC. 217. NATIVE LOAD SERVICE OBLIGATION. 4
‘‘(a) MEETING SERVICE OBLIGATIONS.—(1) Any 5
load-serving entity that, as of the date of enactment of 6
this section— 7
‘‘(A) owns generation facilities, markets the 8
output of Federal generation facilities, or holds 9
rights under 1 or more wholesale contracts to pur- 10
chase electric energy, for the purpose of meeting a 11
service obligation, and 12
‘‘(B) by reason of ownership of transmission fa- 13
cilities, or 1 or more contracts or service agreements 14
for firm transmission service, holds firm trans- 15
mission rights for delivery of the output of such gen- 16
eration facilities or such purchased energy to meet 17
such service obligation, 18
is entitled to use such firm transmission rights, or, equiva- 19
lent tradable or financial transmission rights, in order to 20
deliver such output or purchased energy, or the output of 21
other generating facilities or purchased energy to the ex- 22
tent deliverable using such rights, to the extent required 23
to meet its service obligation. 24
‘‘(2) To the extent that all or a portion of the service 25
obligation covered by such firm transmission rights or 26
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equivalent tradable or financial transmission rights is 1
transferred to another load-serving entity, the successor 2
load-serving entity shall be entitled to use the firm trans- 3
mission rights or equivalent tradable or financial trans- 4
mission rights associated with the transferred service obli- 5
gation. Subsequent transfers to another load-serving enti- 6
ty, or back to the original load-serving entity, shall be enti- 7
tled to the same rights. 8
‘‘(3) The Commission shall exercise its authority 9
under this Act in a manner that facilitates the planning 10
and expansion of transmission facilities to meet the rea- 11
sonable needs of load-serving entities to satisfy their serv- 12
ice obligations. 13
‘‘(b) ALLOCATION OF TRANSMISSION RIGHTS.— 14
Nothing in this section shall affect any methodology ap- 15
proved by the Commission prior to September 15, 2003, 16
for the allocation of transmission rights by an RTO or 17
ISO that has been authorized by the Commission to allo- 18
cate transmission rights. 19
‘‘(c) CERTAIN TRANSMISSION RIGHTS.—The Com- 20
mission may exercise authority under this Act to make 21
transmission rights not used to meet an obligation covered 22
by subsection (a) available to other entities in a manner 23
determined by the Commission to be just, reasonable, and 24
not unduly discriminatory or preferential. 25
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‘‘(d) OBLIGATION TO BUILD.—Nothing in this Act 1
shall relieve a load-serving entity from any obligation 2
under State or local law to build transmission or distribu- 3
tion facilities adequate to meet its service obligations. 4
‘‘(e) CONTRACTS.—Nothing in this section shall pro- 5
vide a basis for abrogating any contract or service agree- 6
ment for firm transmission service or rights in effect as 7
of the date of the enactment of this subsection. 8
‘‘(f) WATER PUMPING FACILITIES.—The Commis- 9
sion shall ensure that any entity described in section 10
201(f) that owns transmission facilities used predomi- 11
nately to support its own water pumping facilities shall 12
have, with respect to such facilities, protections for trans- 13
mission service comparable to those provided to load-serv- 14
ing entities pursuant to this section. 15
‘‘(g) ERCOT.—This section shall not apply within 16
the area referred to in section 212(k)(2)(A). 17
‘‘(h) JURISDICTION.—This section does not authorize 18
the Commission to take any action not otherwise within 19
its jurisdiction. 20
‘‘(i) EFFECT OF EXERCISING RIGHTS.—An entity 21
that lawfully exercises rights granted under subsection (a) 22
shall not be considered by such action as engaging in 23
undue discrimination or preference under this Act. 24
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‘‘(j) TVA AREA.—For purposes of subsection 1
(a)(1)(B), a load-serving entity that is located within the 2
service area of the Tennessee Valley Authority and that 3
has a firm wholesale power supply contract with the Ten- 4
nessee Valley Authority shall be deemed to hold firm 5
transmission rights for the transmission of such power. 6
‘‘(k) DEFINITIONS.—For purposes of this section: 7
‘‘(1) The term ‘distribution utility’ means an 8
electric utility that has a service obligation to end- 9
users or to a State utility or electric cooperative 10
that, directly or indirectly, through 1 or more addi- 11
tional State utilities or electric cooperatives, provides 12
electric service to end-users. 13
‘‘(2) The term ‘load-serving entity’ means a dis- 14
tribution utility or an electric utility that has a serv- 15
ice obligation. 16
‘‘(3) The term ‘service obligation’ means a re- 17
quirement applicable to, or the exercise of authority 18
granted to, an electric utility under Federal, State 19
or local law or under long-term contracts to provide 20
electric service to end-users or to a distribution util- 21
ity. 22
‘‘(4) The term ‘State utility’ means a State or 23
any political subdivision of a State, or any agency, 24
authority, or instrumentality of any 1 or more of the 25
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foregoing, or a corporation which is wholly owned, 1
directly or indirectly, by any 1 or more of the fore- 2
going, competent to carry on the business of devel- 3
oping, transmitting, utilizing or distributing power.’’. 4
SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DIS- 5
PATCH. 6
(a) STUDY.—The Secretary of Energy, in coordina- 7
tion and consultation with the States, shall conduct a 8
study on— 9
(1) the procedures currently used by electric 10
utilities to perform economic dispatch; 11
(2) identifying possible revisions to those proce- 12
dures to improve the ability of nonutility generation 13
resources to offer their output for sale for the pur- 14
pose of inclusion in economic dispatch; and 15
(3) the potential benefits to residential, com- 16
mercial, and industrial electricity consumers nation- 17
ally and in each state if economic dispatch proce- 18
dures were revised to improve the ability of non- 19
utility generation resources to offer their output for 20
inclusion in economic dispatch. 21
(b) DEFINITION.—The term ‘‘economic dispatch’’ 22
when used in this section means the operation of genera- 23
tion facilities to produce energy at the lowest cost to reli- 24
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ably serve consumers, recognizing any operational limits 1
of generation and transmission facilities. 2
(c) REPORT TO CONGRESS AND THE STATES.—Not 3
later than 90 days after the date of enactment of this Act, 4
and on a yearly basis following, the Secretary of Energy 5
shall submit a report to Congress and the States on the 6
results of the study conducted under subsection (a), in- 7
cluding recommendations to Congress and the States for 8
any suggested legislative or regulatory changes. 9
Subtitle D—Transmission Rate 10
Reform 11
SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT. 12
Part II of the Federal Power Act (16 U.S.C. 824 et 13
seq.) is amended by adding at the end the following: 14
‘‘SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT. 15
‘‘(a) RULEMAKING REQUIREMENT.—Within 1 year 16
after the enactment of this section, the Commission shall 17
establish, by rule, incentive-based (including, but not lim- 18
ited to performance-based) rate treatments for the trans- 19
mission of electric energy in interstate commerce by public 20
utilities for the purpose of benefiting consumers by ensur- 21
ing reliability and reducing the cost of delivered power by 22
reducing transmission congestion. Such rule shall— 23
‘‘(1) promote reliable and economically efficient 24
transmission and generation of electricity by pro- 25
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moting capital investment in the enlargement, im- 1
provement, maintenance and operation of facilities 2
for the transmission of electric energy in interstate 3
commerce; 4
‘‘(2) provide a return on equity that attracts 5
new investment in transmission facilities (including 6
related transmission technologies); 7
‘‘(3) encourage deployment of transmission 8
technologies and other measures to increase the ca- 9
pacity and efficiency of existing transmission facili- 10
ties and improve the operation of such facilities; and 11
‘‘(4) allow recovery of all prudently incurred 12
costs necessary to comply with mandatory reliability 13
standards issued pursuant to section 215 of this 14
Act. 15
The Commission may, from time to time, revise such rule. 16
‘‘(b) ADDITIONAL INCENTIVES FOR RTO PARTICIPA- 17
TION.—In the rule issued under this section, the Commis- 18
sion shall, to the extent within its jurisdiction, provide for 19
incentives to each transmitting utility or electric utility 20
that joins a Regional Transmission Organization or Inde- 21
pendent System Operator. Incentives provided by the 22
Commission pursuant to such rule shall include— 23
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‘‘(1) recovery of all prudently incurred costs to 1
develop and participate in any proposed or approved 2
RTO, ISO, or independent transmission company; 3
‘‘(2) recovery of all costs previously approved by 4
a State commission which exercised jurisdiction over 5
the transmission facilities prior to the utility’s par- 6
ticipation in the RTO or ISO, including costs nec- 7
essary to honor preexisting transmission service con- 8
tracts, in a manner which does not reduce the reve- 9
nues the utility receives for transmission services for 10
a reasonable transition period after the utility joins 11
the RTO or ISO; 12
‘‘(3) recovery as an expense in rates of the 13
costs prudently incurred to conduct transmission 14
planning and reliability activities, including the costs 15
of participating in RTO, ISO and other regional 16
planning activities and design, study and other 17
precertification costs involved in seeking permits and 18
approvals for proposed transmission facilities; 19
‘‘(4) a current return in rates for construction 20
work in progress for transmission facilities and full 21
recovery of prudently incurred costs for constructing 22
transmission facilities; 23
‘‘(5) formula transmission rates; and 24
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‘‘(6) a maximum 15 year accelerated deprecia- 1
tion on new transmission facilities for rate treatment 2
purposes. 3
The Commission shall ensure that any costs recoverable 4
pursuant to this subsection may be recovered by such util- 5
ity through the transmission rates charged by such utility 6
or through the transmission rates charged by the RTO 7
or ISO that provides transmission service to such utility. 8
‘‘(c) JUST AND REASONABLE RATES.—All rates ap- 9
proved under the rules adopted pursuant to this section, 10
including any revisions to such rules, are subject to the 11
requirement of sections 205 and 206 that all rates, 12
charges, terms, and conditions be just and reasonable and 13
not unduly discriminatory or preferential.’’. 14
SEC. 1242. VOLUNTARY TRANSMISSION PRICING PLANS 15
Part II of the Federal Power Act (16 U.S.C. 824 et 16
seq.) is amended by adding at the end the following: 17
‘‘SEC. 219. VOLUNTARY TRANSMISSION PRICING PLANS. 18
‘‘(a) IN GENERAL.—Any transmission provider, in- 19
cluding an RTO or ISO, may submit to the Commission 20
a plan or plans under section 205 containing the criteria 21
for determining the person or persons that will be required 22
to pay for any construction of new transmission facilities 23
or expansion, modification or upgrade of transmission fa- 24
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cilities (in this section referred to as ‘transmission service 1
related expansion’) or new generator interconnection. 2
‘‘(b) VOLUNTARY TRANSMISSION PRICING PLANS.— 3
(1) Any plan or plans submitted under subsection (a) shall 4
specify the method or methods by which costs may be allo- 5
cated or assigned. Such methods may include, but are not 6
limited to: 7
‘‘(A) directly assigned; 8
‘‘(B) participant funded; or 9
‘‘(C) rolled into regional or sub-regional rates. 10
‘‘(2) FERC shall approve a plan or plans submitted 11
under subparagraph (B) of paragraph (1) if such plan or 12
plans— 13
‘‘(A) result in rates that are just and reason- 14
able and not unduly discriminatory or preferential 15
consistent with section 205; and 16
‘‘(B) ensure that the costs of any transmission 17
service related expansion or new generator inter- 18
connection not required to meet applicable reliability 19
standards established under section 215 are assigned 20
in a fair manner, meaning that those who benefit 21
from the transmission service related expansion or 22
new generator interconnection pay an appropriate 23
share of the associated costs, provided that— 24
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‘‘(i) costs may not be assigned or allocated 1
to an electric utility if the native load customers 2
of that utility would not have required such 3
transmission service related expansion or new 4
generator interconnection absent the request for 5
transmission service related expansion or new 6
generator interconnection that necessitated the 7
investment; 8
‘‘(ii) the party requesting such trans- 9
mission service related expansion or new gener- 10
ator interconnection shall not be required to 11
pay for both— 12
‘‘(I) the assigned cost of the upgrade; 13
and 14
‘‘(II) the difference between— 15
‘‘(aa) the embedded cost paid for 16
transmission services (including the 17
cost of the requested upgrade); and 18
‘‘(bb) the embedded cost that 19
would have been paid absent the up- 20
grade; and 21
‘‘(iii) the party or parties who pay for fa- 22
cilities necessary for the transmission service 23
related expansion or new generator interconnec- 24
tion receives full compensation for its costs for 25
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the participant funded facilities in the form 1
of— 2
‘‘(I) monetary credit equal to the cost 3
of the participant funded facilities (ac- 4
counting for the time value of money at 5
the Gross Domestic Product deflator), 6
which credit shall be pro-rated in equal in- 7
stallments over a period of not more than 8
30 years and shall not exceed in total the 9
amount of the initial investment, against 10
the transmission charges that the funding 11
entity or its assignee is otherwise assessed 12
by the transmission provider; 13
‘‘(II) appropriate financial or physical 14
rights; or 15
‘‘(III) any other method of cost recov- 16
ery or compensation approved by the Com- 17
mission. 18
‘‘(3) A plan submitted under this section shall apply 19
only to— 20
‘‘(A) a contract or interconnection agreement 21
executed or filed with the Commission after the date 22
of enactment of this section; or 23
‘‘(B) an interconnection agreement pending re- 24
hearing as of November 1, 2003. 25
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‘‘(4) Nothing in this section diminishes or alters the 1
rights of individual members of an RTO or ISO under 2
this Act. 3
‘‘(5) Nothing in this section shall affect the allocation 4
of costs or the cost methodology employed by an RTO or 5
ISO authorized by the Commission to allocate costs (in- 6
cluding costs for transmission service related expansion or 7
new generator interconnection) prior to the date of enact- 8
ment of this section. 9
‘‘(6) This section shall not apply within the area re- 10
ferred to in section 212(k)(2)(A). 11
‘‘(7) The term ‘transmission provider’ means a public 12
utility that owns or operates facilities that provide inter- 13
connection or transmission service in interstate com- 14
merce.’’. 15
Subtitle E—Amendments to PURPA 16
SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. 17
(a) ADOPTION OF STANDARDS.—Section 111(d) of 18
the Public Utility Regulatory Policies Act of 1978 (16 19
U.S.C. 2621(d)) is amended by adding at the end the fol- 20
lowing: 21
‘‘(11) NET METERING.—Each electric utility 22
shall make available upon request net metering serv- 23
ice to any electric consumer that the electric utility 24
serves. For purposes of this paragraph, the term 25
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‘net metering service’ means service to an electric 1
consumer under which electric energy generated by 2
that electric consumer from an eligible on-site gener- 3
ating facility and delivered to the local distribution 4
facilities may be used to offset electric energy pro- 5
vided by the electric utility to the electric consumer 6
during the applicable billing period. 7
‘‘(12) FUEL SOURCES.—Each electric utility 8
shall develop a plan to minimize dependence on 1 9
fuel source and to ensure that the electric energy it 10
sells to consumers is generated using a diverse range 11
of fuels and technologies, including renewable tech- 12
nologies. 13
‘‘(13) FOSSIL FUEL GENERATION EFFI- 14
CIENCY.—Each electric utility shall develop and im- 15
plement a 10-year plan to increase the efficiency of 16
its fossil fuel generation.’’. 17
(b) COMPLIANCE.— 18
(1) TIME LIMITATIONS.—Section 112(b) of the 19
Public Utility Regulatory Policies Act of 1978 (16 20
U.S.C. 2622(b)) is amended by adding at the end 21
the following: 22
‘‘(3)(A) Not later than 2 years after the enactment 23
of this paragraph, each State regulatory authority (with 24
respect to each electric utility for which it has ratemaking 25
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authority) and each nonregulated electric utility shall com- 1
mence the consideration referred to in section 111, or set 2
a hearing date for such consideration, with respect to each 3
standard established by paragraphs (11) through (13) of 4
section 111(d). 5
‘‘(B) Not later than 3 years after the date of the en- 6
actment of this paragraph, each State regulatory authority 7
(with respect to each electric utility for which it has rate- 8
making authority), and each nonregulated electric utility, 9
shall complete the consideration, and shall make the deter- 10
mination, referred to in section 111 with respect to each 11
standard established by paragraphs (11) through (13) of 12
section 111(d).’’. 13
(2) FAILURE TO COMPLY.—Section 112(c) of 14
the Public Utility Regulatory Policies Act of 1978 15
(16 U.S.C. 2622(c)) is amended by adding at the 16
end the following: 17
‘‘In the case of each standard established by paragraphs 18
(11) through (13) of section 111(d), the reference con- 19
tained in this subsection to the date of enactment of this 20
Act shall be deemed to be a reference to the date of enact- 21
ment of such paragraphs (11) through (13).’’. 22
(3) PRIOR STATE ACTIONS.— 23
(A) IN GENERAL.—Section 112 of the 24
Public Utility Regulatory Policies Act of 1978 25
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(16 U.S.C. 2622) is amended by adding at the 1
end the following: 2
‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and 3
(c) of this section shall not apply to the standards estab- 4
lished by paragraphs (11) through (13) of section 111(d) 5
in the case of any electric utility in a State if, before the 6
enactment of this subsection— 7
‘‘(1) the State has implemented for such utility 8
the standard concerned (or a comparable standard); 9
‘‘(2) the State regulatory authority for such 10
State has conducted a proceeding to consider imple- 11
mentation of the standard concerned (or a com- 12
parable standard) for such utility; or 13
‘‘(3) the State legislature has voted on the im- 14
plementation of such standard (or a comparable 15
standard) for such utility.’’. 16
(B) CROSS REFERENCE.—Section 124 of 17
such Act (16 U.S.C. 2634) is amended by add- 18
ing the following at the end thereof: ‘‘In the 19
case of each standard established by paragraphs 20
(11) through (13) of section 111(d), the ref- 21
erence contained in this subsection to the date 22
of enactment of this Act shall be deemed to be 23
a reference to the date of enactment of such 24
paragraphs (11) through (13).’’. 25
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SEC. 1252. SMART METERING. 1
(a) IN GENERAL.—Section 111(d) of the Public Utili- 2
ties Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 3
is amended by adding at the end the following: 4
‘‘(14) TIME-BASED METERING AND COMMU- 5
NICATIONS.— 6
‘‘(A) Not later than 18 months after the 7
date of enactment of this paragraph, each elec- 8
tric utility shall offer each of its customer class- 9
es, and provide individual customers upon cus- 10
tomer request, a time-based rate schedule under 11
which the rate charged by the electric utility 12
varies during different time periods and reflects 13
the variance, if any, in the utility’s costs of gen- 14
erating and purchasing electricity at the whole- 15
sale level. The time-based rate schedule shall 16
enable the electric consumer to manage energy 17
use and cost through advanced metering and 18
communications technology. 19
‘‘(B) The types of time-based rate sched- 20
ules that may be offered under the schedule re- 21
ferred to in subparagraph (A) include, among 22
others— 23
‘‘(i) time-of-use pricing whereby elec- 24
tricity prices are set for a specific time pe- 25
riod on an advance or forward basis, typi- 26
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71
cally not changing more often than twice a 1
year, based on the utility’s cost of gener- 2
ating and/or purchasing such electricity at 3
the wholesale level for the benefit of the 4
consumer. Prices paid for energy consumed 5
during these periods shall be pre-estab- 6
lished and known to consumers in advance 7
of such consumption, allowing them to 8
vary their demand and usage in response 9
to such prices and manage their energy 10
costs by shifting usage to a lower cost pe- 11
riod or reducing their consumption overall; 12
‘‘(ii) critical peak pricing whereby 13
time-of-use prices are in effect except for 14
certain peak days, when prices may reflect 15
the costs of generating and/or purchasing 16
electricity at the wholesale level and when 17
consumers may receive additional discounts 18
for reducing peak period energy consump- 19
tion; and 20
‘‘(iii) real-time pricing whereby elec- 21
tricity prices are set for a specific time pe- 22
riod on an advanced or forward basis, re- 23
flecting the utility’s cost of generating and/ 24
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72
or purchasing electricity at the wholesale 1
level, and may change as often as hourly. 2
‘‘(C) Each electric utility subject to sub- 3
paragraph (A) shall provide each customer re- 4
questing a time-based rate with a time-based 5
meter capable of enabling the utility and cus- 6
tomer to offer and receive such rate, respec- 7
tively. 8
‘‘(D) For purposes of implementing this 9
paragraph, any reference contained in this sec- 10
tion to the date of enactment of the Public Util- 11
ity Regulatory Policies Act of 1978 shall be 12
deemed to be a reference to the date of enact- 13
ment of this paragraph. 14
‘‘(E) In a State that permits third-party 15
marketers to sell electric energy to retail elec- 16
tric consumers, such consumers shall be entitled 17
to receive the same time-based metering and 18
communications device and service as a retail 19
electric consumer of the electric utility. 20
‘‘(F) Notwithstanding subsections (b) and 21
(c) of section 112, each State regulatory au- 22
thority shall, not later than 18 months after the 23
date of enactment of this paragraph conduct an 24
investigation in accordance with section 115(i) 25
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73
and issue a decision whether it is appropriate to 1
implement the standards set out in subpara- 2
graphs (A) and (C).’’. 3
(b) STATE INVESTIGATION OF DEMAND RESPONSE 4
AND TIME-BASED METERING.—Section 115 of the Public 5
Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2625) 6
is amended as follows: 7
(1) By inserting in subsection (b) after the 8
phrase ‘‘the standard for time-of-day rates estab- 9
lished by section 111(d)(3)’’ the following: ‘‘and the 10
standard for time-based metering and communica- 11
tions established by section 111(d)(14)’’. 12
(2) By inserting in subsection (b) after the 13
phrase ‘‘are likely to exceed the metering’’ the fol- 14
lowing: ‘‘and communications’’. 15
(3) By adding the at the end the following: 16
‘‘(i) TIME-BASED METERING AND COMMUNICA- 17
TIONS.—In making a determination with respect to the 18
standard established by section 111(d)(14), the investiga- 19
tion requirement of section 111(d)(14)(F) shall be as fol- 20
lows: Each State regulatory authority shall conduct an in- 21
vestigation and issue a decision whether or not it is appro- 22
priate for electric utilities to provide and install time-based 23
meters and communications devices for each of their cus- 24
tomers which enable such customers to participate in time- 25
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based pricing rate schedules and other demand response 1
programs.’’. 2
(c) FEDERAL ASSISTANCE ON DEMAND RE- 3
SPONSE.—Section 132(a) of the Public Utility Regulatory 4
Policies Act of 1978 (16 U.S.C. 2642(a)) is amended by 5
striking ‘‘and’’ at the end of paragraph (3), striking the 6
period at the end of paragraph (4) and inserting ‘‘; and’’, 7
and by adding the following at the end thereof: 8
‘‘(5) technologies, techniques, and rate-making 9
methods related to advanced metering and commu- 10
nications and the use of these technologies, tech- 11
niques and methods in demand response programs.’’. 12
(d) FEDERAL GUIDANCE.—Section 132 of the Public 13
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) 14
is amended by adding the following at the end thereof: 15
‘‘(d) DEMAND RESPONSE.—The Secretary shall be 16
responsible for— 17
‘‘(1) educating consumers on the availability, 18
advantages, and benefits of advanced metering and 19
communications technologies, including the funding 20
of demonstration or pilot projects; 21
‘‘(2) working with States, utilities, other energy 22
providers and advanced metering and communica- 23
tions experts to identify and address barriers to the 24
adoption of demand response programs; and 25
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‘‘(3) not later than 180 days after the date of 1
enactment of the Energy Policy Act of 2003, pro- 2
viding Congress with a report that identifies and 3
quantifies the national benefits of demand response 4
and makes a recommendation on achieving specific 5
levels of such benefits by January 1, 2005.’’. 6
(e) DEMAND RESPONSE AND REGIONAL COORDINA- 7
TION.— 8
(1) IN GENERAL.—It is the policy of the United 9
States to encourage States to coordinate, on a re- 10
gional basis, State energy policies to provide reliable 11
and affordable demand response services to the pub- 12
lic. 13
(2) TECHNICAL ASSISTANCE.—The Secretary of 14
Energy shall provide technical assistance to States 15
and regional organizations formed by 2 or more 16
States to assist them in— 17
(A) identifying the areas with the greatest 18
demand response potential; 19
(B) identifying and resolving problems in 20
transmission and distribution networks, includ- 21
ing through the use of demand response; 22
(C) developing plans and programs to use 23
demand response to respond to peak demand or 24
emergency needs; and 25
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(D) identifying specific measures con- 1
sumers can take to participate in these demand 2
response programs. 3
(3) REPORT.—Not later than 1 year after the 4
date of enactment of the Energy Policy Act of 2003, 5
the Commission shall prepare and publish an annual 6
report, by appropriate region, that assesses demand 7
response resources, including those available from all 8
consumer classes, and which identifies and reviews— 9
(A) saturation and penetration rate of ad- 10
vanced meters and communications tech- 11
nologies, devices and systems; 12
(B) existing demand response programs 13
and time-based rate programs; 14
(C) the annual resource contribution of de- 15
mand resources; 16
(D) the potential for demand response as 17
a quantifiable, reliable resource for regional 18
planning purposes; and 19
(E) steps taken to ensure that, in regional 20
transmission planning and operations, demand 21
resources are provided equitable treatment as a 22
quantifiable, reliable resource relative to the re- 23
source obligations of any load-serving entity, 24
transmission provider, or transmitting party. 25
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(f) FEDERAL ENCOURAGEMENT OF DEMAND RE- 1
SPONSE DEVICES.—It is the policy of the United States 2
that time-based pricing and other forms of demand re- 3
sponse, whereby electricity customers are provided with 4
electricity price signals and the ability to benefit by re- 5
sponding to them, shall be encouraged, and the deploy- 6
ment of such technology and devices that enable electricity 7
customers to participate in such pricing and demand re- 8
sponse systems shall be facilitated. It is further the policy 9
of the United States that the benefits of such demand re- 10
sponse that accrue to those not deploying such technology 11
and devices, but who are part of the same regional elec- 12
tricity entity, shall be recognized. 13
(g) TIME LIMITATIONS.—Section 112(b) of the Pub- 14
lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 15
2622(b)) is amended by adding at the end the following: 16
‘‘(4)(A) Not later than 1 year after the enact- 17
ment of this paragraph, each State regulatory au- 18
thority (with respect to each electric utility for which 19
it has ratemaking authority) and each nonregulated 20
electric utility shall commence the consideration re- 21
ferred to in section 111, or set a hearing date for 22
such consideration, with respect to the standard es- 23
tablished by paragraph (14) of section 111(d). 24
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‘‘(B) Not later than 2 years after the date of 1
the enactment of this paragraph, each State regu- 2
latory authority (with respect to each electric utility 3
for which it has ratemaking authority), and each 4
nonregulated electric utility, shall complete the con- 5
sideration, and shall make the determination, re- 6
ferred to in section 111 with respect to the standard 7
established by paragraph (14) of section 111(d).’’. 8
(h) FAILURE TO COMPLY.—Section 112(c) of the 9
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 10
2622(c)) is amended by adding at the end the following: 11
‘‘In the case of the standard established by paragraph (14) 12
of section 111(d), the reference contained in this sub- 13
section to the date of enactment of this Act shall be 14
deemed to be a reference to the date of enactment of such 15
paragraph (14).’’. 16
(i) PRIOR STATE ACTIONS REGARDING SMART ME- 17
TERING STANDARDS.— 18
(1) IN GENERAL.—Section 112 of the Public 19
Utility Regulatory Policies Act of 1978 (16 U.S.C. 20
2622) is amended by adding at the end the fol- 21
lowing: 22
‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and 23
(c) of this section shall not apply to the standard estab- 24
lished by paragraph (14) of section 111(d) in the case of 25
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any electric utility in a State if, before the enactment of 1
this subsection— 2
‘‘(1) the State has implemented for such utility 3
the standard concerned (or a comparable standard); 4
‘‘(2) the State regulatory authority for such 5
State has conducted a proceeding to consider imple- 6
mentation of the standard concerned (or a com- 7
parable standard) for such utility within the pre- 8
vious 3 years; or 9
‘‘(3) the State legislature has voted on the im- 10
plementation of such standard (or a comparable 11
standard) for such utility within the previous 3 12
years.’’. 13
(2) CROSS REFERENCE.—Section 124 of such 14
Act (16 U.S.C. 2634) is amended by adding the fol- 15
lowing at the end thereof: ‘‘In the case of the stand- 16
ard established by paragraph (14) of section 111(d), 17
the reference contained in this subsection to the date 18
of enactment of this Act shall be deemed to be a ref- 19
erence to the date of enactment of such paragraph 20
(14).’’. 21
SEC. 1253. COGENERATION AND SMALL POWER PRODUC- 22
TION PURCHASE AND SALE REQUIREMENTS. 23
(a) TERMINATION OF MANDATORY PURCHASE AND 24
SALE REQUIREMENTS.—Section 210 of the Public Utility 25
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Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 1
amended by adding at the end the following: 2
‘‘(m) TERMINATION OF MANDATORY PURCHASE AND 3
SALE REQUIREMENTS.— 4
‘‘(1) OBLIGATION TO PURCHASE.—After the 5
date of enactment of this subsection, no electric util- 6
ity shall be required to enter into a new contract or 7
obligation to purchase electric energy from a quali- 8
fying cogeneration facility or a qualifying small 9
power production facility under this section if the 10
Commission finds that the qualifying cogeneration 11
facility or qualifying small power production facility 12
has nondiscriminatory access to— 13
‘‘(A)(i) independently administered, auc- 14
tion-based day ahead and real time wholesale 15
markets for the sale of electric energy; and (ii) 16
wholesale markets for long-term sales of capac- 17
ity and electric energy; or 18
‘‘(B)(i) transmission and interconnection 19
services that are provided by a Commission-ap- 20
proved regional transmission entity and admin- 21
istered pursuant to an open access transmission 22
tariff that affords nondiscriminatory treatment 23
to all customers; and (ii) competitive wholesale 24
markets that provide a meaningful opportunity 25
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to sell capacity, including long-term and short- 1
term sales, and electric energy, including long- 2
term, short-term and real-time sales, to buyers 3
other than the utility to which the qualifying fa- 4
cility is interconnected. In determining whether 5
a meaningful opportunity to sell exists, the 6
Commission shall consider, among other fac- 7
tors, evidence of transactions within the rel- 8
evant market; or 9
‘‘(C) wholesale markets for the sale of ca- 10
pacity and electric energy that are, at a min- 11
imum, of comparable competitive quality as 12
markets described in subparagraphs (A) and 13
(B). 14
‘‘(2) REVISED PURCHASE AND SALE OBLIGA- 15
TION FOR NEW FACILITIES.—(A) After the date of 16
enactment of this subsection, no electric utility shall 17
be required pursuant to this section to enter into a 18
new contract or obligation to purchase from or sell 19
electric energy to a facility that is not an existing 20
qualifying cogeneration facility unless the facility 21
meets the criteria for qualifying cogeneration facili- 22
ties established by the Commission pursuant to the 23
rulemaking required by subsection (n). 24
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‘‘(B) For the purposes of this paragraph, the 1
term ‘existing qualifying cogeneration facility’ means 2
a facility that— 3
‘‘(i) was a qualifying cogeneration facility 4
on the date of enactment of subsection (m); or 5
‘‘(ii) had filed with the Commission a no- 6
tice of self-certification, self recertification or 7
an application for Commission certification 8
under 18 C.F.R. 292.207 prior to the date on 9
which the Commission issues the final rule re- 10
quired by subsection (n). 11
‘‘(3) COMMISSION REVIEW.—Any electric utility 12
may file an application with the Commission for re- 13
lief from the mandatory purchase obligation pursu- 14
ant to this subsection on a service territory-wide 15
basis. Such application shall set forth the factual 16
basis upon which relief is requested and describe 17
why the conditions set forth in subparagraphs (A), 18
(B) or (C) of paragraph (1) of this subsection have 19
been met. After notice, including sufficient notice to 20
potentially affected qualifying cogeneration facilities 21
and qualifying small power production facilities, and 22
an opportunity for comment, the Commission shall 23
make a final determination within 90 days of such 24
application regarding whether the conditions set 25
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forth in subparagraphs (A), (B) or (C) of paragraph 1
(1) have been met. 2
‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR- 3
CHASE.—At any time after the Commission makes a 4
finding under paragraph (3) relieving an electric 5
utility of its obligation to purchase electric energy, 6
a qualifying cogeneration facility, a qualifying small 7
power production facility, a State agency, or any 8
other affected person may apply to the Commission 9
for an order reinstating the electric utility’s obliga- 10
tion to purchase electric energy under this section. 11
Such application shall set forth the factual basis 12
upon which the application is based and describe 13
why the conditions set forth in subparagraphs (A), 14
(B) or (C) of paragraph (1) of this subsection are 15
no longer met. After notice, including sufficient no- 16
tice to potentially affected utilities, and opportunity 17
for comment, the Commission shall issue an order 18
within 90 days of such application reinstating the 19
electric utility’s obligation to purchase electric en- 20
ergy under this section if the Commission finds that 21
the conditions set forth in subparagraphs (A), (B) or 22
(C) of paragraph (1) which relieved the obligation to 23
purchase, are no longer met. 24
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‘‘(5) OBLIGATION TO SELL.—After the date of 1
enactment of this subsection, no electric utility shall 2
be required to enter into a new contract or obliga- 3
tion to sell electric energy to a qualifying cogenera- 4
tion facility or a qualifying small power production 5
facility under this section if the Commission finds 6
that— 7
‘‘(A) competing retail electric suppliers are 8
willing and able to sell and deliver electric en- 9
ergy to the qualifying cogeneration facility or 10
qualifying small power production facility; and 11
‘‘(B) the electric utility is not required by 12
State law to sell electric energy in its service 13
territory. 14
‘‘(6) NO EFFECT ON EXISTING RIGHTS AND 15
REMEDIES.—Nothing in this subsection affects the 16
rights or remedies of any party under any contract 17
or obligation, in effect or pending approval before 18
the appropriate State regulatory authority or non- 19
regulated electric utility on the date of enactment of 20
this subsection, to purchase electric energy or capac- 21
ity from or to sell electric energy or capacity to a 22
qualifying cogeneration facility or qualifying small 23
power production facility under this Act (including 24
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85
the right to recover costs of purchasing electric en- 1
ergy or capacity). 2
‘‘(7) RECOVERY OF COSTS.—(A) The Commis- 3
sion shall issue and enforce such regulations as are 4
necessary to ensure that an electric utility that pur- 5
chases electric energy or capacity from a qualifying 6
cogeneration facility or qualifying small power pro- 7
duction facility in accordance with any legally en- 8
forceable obligation entered into or imposed under 9
this section recovers all prudently incurred costs as- 10
sociated with the purchase. 11
‘‘(B) A regulation under subparagraph (A) shall 12
be enforceable in accordance with the provisions of 13
law applicable to enforcement of regulations under 14
the Federal Power Act (16 U.S.C. 791a et seq.). 15
‘‘(n) RULEMAKING FOR NEW QUALIFYING FACILI- 16
TIES.—(1)(A) Not later than 180 days after the date of 17
enactment of this section, the Commission shall issue a 18
rule revising the criteria in 18 C.F.R. 292.205 for new 19
qualifying cogeneration facilities seeking to sell electric en- 20
ergy pursuant to section 210 of this Act to ensure— 21
‘‘(i) that the thermal energy output of a new 22
qualifying cogeneration facility is used in a produc- 23
tive and beneficial manner; 24
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‘‘(ii) the electrical, thermal, and chemical out- 1
put of the cogeneration facility is used fundamen- 2
tally for industrial, commercial, or institutional pur- 3
poses and is not intended fundamentally for sale to 4
an electric utility, taking into account technological, 5
efficiency, economic, and variable thermal energy re- 6
quirements, as well as State laws applicable to sales 7
of electric energy from a qualifying facility to its 8
host facility; and 9
‘‘(iii) continuing progress in the development of 10
efficient electric energy generating technology. 11
‘‘(B) The rule issued pursuant to section (n)(1)(A) 12
shall be applicable only to facilities that seek to sell electric 13
energy pursuant to section 210 of this Act. For all other 14
purposes, except as specifically provided in section 15
(m)(2)(A), qualifying facility status shall be determined 16
in accordance with the rules and regulations of this Act. 17
‘‘(2) Notwithstanding rule revisions under paragraph 18
(1), the Commission’s criteria for qualifying cogeneration 19
facilities in effect prior to the date on which the Commis- 20
sion issues the final rule required by paragraph (1) shall 21
continue to apply to any cogeneration facility that— 22
‘‘(A) was a qualifying cogeneration facility on 23
the date of enactment of subsection (m), or 24
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‘‘(B) had filed with the Commission a notice of 1
self-certification, self-recertification or an application 2
for Commission certification under 18 C.F.R. 3
292.207 prior to the date on which the Commission 4
issues the final rule required by paragraph (1).’’. 5
(b) ELIMINATION OF OWNERSHIP LIMITATIONS.— 6
(1) QUALIFYING SMALL POWER PRODUCTION 7
FACILITY.—Section 3(17)(C) of the Federal Power 8
Act (16 U.S.C. 796(17)(C)) is amended to read as 9
follows: 10
‘‘(C) ‘qualifying small power production fa- 11
cility’ means a small power production facility 12
that the Commission determines, by rule, meets 13
such requirements (including requirements re- 14
specting fuel use, fuel efficiency, and reliability) 15
as the Commission may, by rule, prescribe;’’. 16
(2) QUALIFYING COGENERATION FACILITY.— 17
Section 3(18)(B) of the Federal Power Act (16 18
U.S.C. 796(18)(B)) is amended to read as follows: 19
‘‘(B) ‘qualifying cogeneration facility’ 20
means a cogeneration facility that the Commis- 21
sion determines, by rule, meets such require- 22
ments (including requirements respecting min- 23
imum size, fuel use, and fuel efficiency) as the 24
Commission may, by rule, prescribe;’’. 25
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Subtitle F—Repeal of PUHCA 1
SEC. 1261. SHORT TITLE. 2
This subtitle may be cited as the ‘‘Public Utility 3
Holding Company Act of 2003’’. 4
SEC. 1262. DEFINITIONS. 5
For purposes of this subtitle: 6
(1) AFFILIATE.—The term ‘‘affiliate’’ of a com- 7
pany means any company, 5 percent or more of the 8
outstanding voting securities of which are owned, 9
controlled, or held with power to vote, directly or in- 10
directly, by such company. 11
(2) ASSOCIATE COMPANY.—The term ‘‘associate 12
company’’ of a company means any company in the 13
same holding company system with such company. 14
(3) COMMISSION.—The term ‘‘Commission’’ 15
means the Federal Energy Regulatory Commission. 16
(4) COMPANY.—The term ‘‘company’’ means a 17
corporation, partnership, association, joint stock 18
company, business trust, or any organized group of 19
persons, whether incorporated or not, or a receiver, 20
trustee, or other liquidating agent of any of the fore- 21
going. 22
(5) ELECTRIC UTILITY COMPANY.—The term 23
‘‘electric utility company’’ means any company that 24
owns or operates facilities used for the generation, 25
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transmission, or distribution of electric energy for 1
sale. 2
(6) EXEMPT WHOLESALE GENERATOR AND 3
FOREIGN UTILITY COMPANY.—The terms ‘‘exempt 4
wholesale generator’’ and ‘‘foreign utility company’’ 5
have the same meanings as in sections 32 and 33, 6
respectively, of the Public Utility Holding Company 7
Act of 1935 (15 U.S.C. 79z–5a, 79z–5b), as those 8
sections existed on the day before the effective date 9
of this subtitle. 10
(7) GAS UTILITY COMPANY.—The term ‘‘gas 11
utility company’’ means any company that owns or 12
operates facilities used for distribution at retail 13
(other than the distribution only in enclosed portable 14
containers or distribution to tenants or employees of 15
the company operating such facilities for their own 16
use and not for resale) of natural or manufactured 17
gas for heat, light, or power. 18
(8) HOLDING COMPANY.—The term ‘‘holding 19
company’’ means— 20
(A) any company that directly or indirectly 21
owns, controls, or holds, with power to vote, 10 22
percent or more of the outstanding voting secu- 23
rities of a public-utility company or of a holding 24
company of any public-utility company; and 25
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(B) any person, determined by the Com- 1
mission, after notice and opportunity for hear- 2
ing, to exercise directly or indirectly (either 3
alone or pursuant to an arrangement or under- 4
standing with 1 or more persons) such a con- 5
trolling influence over the management or poli- 6
cies of any public-utility company or holding 7
company as to make it necessary or appropriate 8
for the rate protection of utility customers with 9
respect to rates that such person be subject to 10
the obligations, duties, and liabilities imposed 11
by this subtitle upon holding companies. 12
(9) HOLDING COMPANY SYSTEM.—The term 13
‘‘holding company system’’ means a holding com- 14
pany, together with its subsidiary companies. 15
(10) JURISDICTIONAL RATES.—The term ‘‘ju- 16
risdictional rates’’ means rates accepted or estab- 17
lished by the Commission for the transmission of 18
electric energy in interstate commerce, the sale of 19
electric energy at wholesale in interstate commerce, 20
the transportation of natural gas in interstate com- 21
merce, and the sale in interstate commerce of nat- 22
ural gas for resale for ultimate public consumption 23
for domestic, commercial, industrial, or any other 24
use. 25
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(11) NATURAL GAS COMPANY.—The term ‘‘nat- 1
ural gas company’’ means a person engaged in the 2
transportation of natural gas in interstate commerce 3
or the sale of such gas in interstate commerce for 4
resale. 5
(12) PERSON.—The term ‘‘person’’ means an 6
individual or company. 7
(13) PUBLIC UTILITY.—The term ‘‘public util- 8
ity’’ means any person who owns or operates facili- 9
ties used for transmission of electric energy in inter- 10
state commerce or sales of electric energy at whole- 11
sale in interstate commerce. 12
(14) PUBLIC-UTILITY COMPANY.—The term 13
‘‘public-utility company’’ means an electric utility 14
company or a gas utility company. 15
(15) STATE COMMISSION.—The term ‘‘State 16
commission’’ means any commission, board, agency, 17
or officer, by whatever name designated, of a State, 18
municipality, or other political subdivision of a State 19
that, under the laws of such State, has jurisdiction 20
to regulate public utility companies. 21
(16) SUBSIDIARY COMPANY.—The term ‘‘sub- 22
sidiary company’’ of a holding company means— 23
(A) any company, 10 percent or more of 24
the outstanding voting securities of which are 25
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directly or indirectly owned, controlled, or held 1
with power to vote, by such holding company; 2
and 3
(B) any person, the management or poli- 4
cies of which the Commission, after notice and 5
opportunity for hearing, determines to be sub- 6
ject to a controlling influence, directly or indi- 7
rectly, by such holding company (either alone or 8
pursuant to an arrangement or understanding 9
with 1 or more other persons) so as to make it 10
necessary for the rate protection of utility cus- 11
tomers with respect to rates that such person 12
be subject to the obligations, duties, and liabil- 13
ities imposed by this subtitle upon subsidiary 14
companies of holding companies. 15
(17) VOTING SECURITY.—The term ‘‘voting se- 16
curity’’ means any security presently entitling the 17
owner or holder thereof to vote in the direction or 18
management of the affairs of a company. 19
SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COM- 20
PANY ACT OF 1935. 21
The Public Utility Holding Company Act of 1935 (15 22
U.S.C. 79 et seq.) is repealed. 23
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SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS. 1
(a) IN GENERAL.—Each holding company and each 2
associate company thereof shall maintain, and shall make 3
available to the Commission, such books, accounts, memo- 4
randa, and other records as the Commission determines 5
are relevant to costs incurred by a public utility or natural 6
gas company that is an associate company of such holding 7
company and necessary or appropriate for the protection 8
of utility customers with respect to jurisdictional rates. 9
(b) AFFILIATE COMPANIES.—Each affiliate of a hold- 10
ing company or of any subsidiary company of a holding 11
company shall maintain, and shall make available to the 12
Commission, such books, accounts, memoranda, and other 13
records with respect to any transaction with another affil- 14
iate, as the Commission determines are relevant to costs 15
incurred by a public utility or natural gas company that 16
is an associate company of such holding company and nec- 17
essary or appropriate for the protection of utility cus- 18
tomers with respect to jurisdictional rates. 19
(c) HOLDING COMPANY SYSTEMS.—The Commission 20
may examine the books, accounts, memoranda, and other 21
records of any company in a holding company system, or 22
any affiliate thereof, as the Commission determines are 23
relevant to costs incurred by a public utility or natural 24
gas company within such holding company system and 25
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necessary or appropriate for the protection of utility cus- 1
tomers with respect to jurisdictional rates. 2
(d) CONFIDENTIALITY.—No member, officer, or em- 3
ployee of the Commission shall divulge any fact or infor- 4
mation that may come to his or her knowledge during the 5
course of examination of books, accounts, memoranda, or 6
other records as provided in this section, except as may 7
be directed by the Commission or by a court of competent 8
jurisdiction. 9
SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS. 10
(a) IN GENERAL.—Upon the written request of a 11
State commission having jurisdiction to regulate a public- 12
utility company in a holding company system, the holding 13
company or any associate company or affiliate thereof, 14
other than such public-utility company, wherever located, 15
shall produce for inspection books, accounts, memoranda, 16
and other records that— 17
(1) have been identified in reasonable detail in 18
a proceeding before the State commission; 19
(2) the State commission determines are rel- 20
evant to costs incurred by such public-utility com- 21
pany; and 22
(3) are necessary for the effective discharge of 23
the responsibilities of the State commission with re- 24
spect to such proceeding. 25
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(b) LIMITATION.—Subsection (a) does not apply to 1
any person that is a holding company solely by reason of 2
ownership of 1 or more qualifying facilities under the Pub- 3
lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 4
2601 et seq.). 5
(c) CONFIDENTIALITY OF INFORMATION.—The pro- 6
duction of books, accounts, memoranda, and other records 7
under subsection (a) shall be subject to such terms and 8
conditions as may be necessary and appropriate to safe- 9
guard against unwarranted disclosure to the public of any 10
trade secrets or sensitive commercial information. 11
(d) EFFECT ON STATE LAW.—Nothing in this sec- 12
tion shall preempt applicable State law concerning the pro- 13
vision of books, accounts, memoranda, and other records, 14
or in any way limit the rights of any State to obtain books, 15
accounts, memoranda, and other records under any other 16
Federal law, contract, or otherwise. 17
(e) COURT JURISDICTION.—Any United States dis- 18
trict court located in the State in which the State commis- 19
sion referred to in subsection (a) is located shall have ju- 20
risdiction to enforce compliance with this section. 21
SEC. 1266. EXEMPTION AUTHORITY. 22
(a) RULEMAKING.—Not later than 90 days after the 23
effective date of this subtitle, the Commission shall issue 24
a final rule to exempt from the requirements of section 25
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1264 (relating to Federal access to books and records) any 1
person that is a holding company, solely with respect to 2
1 or more— 3
(1) qualifying facilities under the Public Utility 4
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 5
seq.); 6
(2) exempt wholesale generators; or 7
(3) foreign utility companies. 8
(b) OTHER AUTHORITY.—The Commission shall ex- 9
empt a person or transaction from the requirements of 10
section 1264 (relating to Federal access to books and 11
records) if, upon application or upon the motion of the 12
Commission— 13
(1) the Commission finds that the books, ac- 14
counts, memoranda, and other records of any person 15
are not relevant to the jurisdictional rates of a pub- 16
lic utility or natural gas company; or 17
(2) the Commission finds that any class of 18
transactions is not relevant to the jurisdictional 19
rates of a public utility or natural gas company. 20
SEC. 1267. AFFILIATE TRANSACTIONS. 21
(a) COMMISSION AUTHORITY UNAFFECTED.—Noth- 22
ing in this subtitle shall limit the authority of the Commis- 23
sion under the Federal Power Act (16 U.S.C. 791a et seq.) 24
to require that jurisdictional rates are just and reasonable, 25
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including the ability to deny or approve the pass through 1
of costs, the prevention of cross-subsidization, and the 2
issuance of such rules and regulations as are necessary 3
or appropriate for the protection of utility consumers. 4
(b) RECOVERY OF COSTS.—Nothing in this subtitle 5
shall preclude the Commission or a State commission from 6
exercising its jurisdiction under otherwise applicable law 7
to determine whether a public-utility company, public util- 8
ity, or natural gas company may recover in rates any costs 9
of an activity performed by an associate company, or any 10
costs of goods or services acquired by such public-utility 11
company from an associate company. 12
SEC. 1268. APPLICABILITY. 13
Except as otherwise specifically provided in this sub- 14
title, no provision of this subtitle shall apply to, or be 15
deemed to include— 16
(1) the United States; 17
(2) a State or any political subdivision of a 18
State; 19
(3) any foreign governmental authority not op- 20
erating in the United States; 21
(4) any agency, authority, or instrumentality of 22
any entity referred to in paragraph (1), (2), or (3); 23
or 24
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(5) any officer, agent, or employee of any entity 1
referred to in paragraph (1), (2), (3), or (4) acting 2
as such in the course of his or her official duty. 3
SEC. 1269. EFFECT ON OTHER REGULATIONS. 4
Nothing in this subtitle precludes the Commission or 5
a State commission from exercising its jurisdiction under 6
otherwise applicable law to protect utility customers. 7
SEC. 1270. ENFORCEMENT. 8
The Commission shall have the same powers as set 9
forth in sections 306 through 317 of the Federal Power 10
Act (16 U.S.C. 825e–825p) to enforce the provisions of 11
this subtitle. 12
SEC. 1271. SAVINGS PROVISIONS. 13
(a) IN GENERAL.—Nothing in this subtitle, or other- 14
wise in the Public Utility Holding Company Act of 1935, 15
or rules, regulations, or orders thereunder, prohibits a per- 16
son from engaging in or continuing to engage in activities 17
or transactions in which it is legally engaged or authorized 18
to engage on the date of enactment of this Act, if that 19
person continues to comply with the terms (other than an 20
expiration date or termination date) of any such author- 21
ization, whether by rule or by order. 22
(b) EFFECT ON OTHER COMMISSION AUTHORITY.— 23
Nothing in this subtitle limits the authority of the Com- 24
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mission under the Federal Power Act (16 U.S.C. 791a et 1
seq.) or the Natural Gas Act (15 U.S.C. 717 et seq.). 2
SEC. 1272. IMPLEMENTATION. 3
Not later than 12 months after the date of enactment 4
of this subtitle, the Commission shall— 5
(1) issue such regulations as may be necessary 6
or appropriate to implement this subtitle (other than 7
section 1265, relating to State access to books and 8
records); and 9
(2) submit to Congress detailed recommenda- 10
tions on technical and conforming amendments to 11
Federal law necessary to carry out this subtitle and 12
the amendments made by this subtitle. 13
SEC. 1273. TRANSFER OF RESOURCES. 14
All books and records that relate primarily to the 15
functions transferred to the Commission under this sub- 16
title shall be transferred from the Securities and Exchange 17
Commission to the Commission. 18
SEC. 1274. EFFECTIVE DATE. 19
(a) IN GENERAL.—Except for section 1272 (relating 20
to implementation), this subtitle shall take effect 12 21
months after the date of enactment of this subtitle. 22
(b) COMPLIANCE WITH CERTAIN RULES.—If the 23
Commission approves and makes effective any final rule- 24
making modifying the standards of conduct governing en- 25
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tities that own, operate, or control facilities for trans- 1
mission of electricity in interstate commerce or transpor- 2
tation of natural gas in interstate commerce prior to the 3
effective date of this subtitle, any action taken by a public- 4
utility company or utility holding company to comply with 5
the requirements of such rulemaking shall not subject 6
such public-utility company or utility holding company to 7
any regulatory requirement applicable to a holding com- 8
pany under the Public Utility Holding Company Act of 9
1935 (15 U.S.C. 79 et seq.). 10
SEC. 1275. SERVICE ALLOCATION. 11
(a) FERC REVIEW.—In the case of non-power goods 12
or administrative or management services provided by an 13
associate company organized specifically for the purpose 14
of providing such goods or services to any public utility 15
in the same holding company system, at the election of 16
the system or a State commission having jurisdiction over 17
the public utility, the Commission, after the effective date 18
of this subtitle, shall review and authorize the allocation 19
of the costs for such goods or services to the extent rel- 20
evant to that associate company in order to assure that 21
each allocation is appropriate for the protection of inves- 22
tors and consumers of such public utility. 23
(b) COST ALLOCATION.—Nothing in this section shall 24
preclude the Commission or a State commission from exer- 25
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cising its jurisdiction under other applicable law with re- 1
spect to the review or authorization of any costs allocated 2
to a public utility in a holding company system located 3
in the affected State as a result of the acquisition of non- 4
power goods or administrative and management services 5
by such public utility from an associate company orga- 6
nized specifically for that purpose. 7
(c) RULES.—Not later than 6 months after the date 8
of enactment of this Act, the Commission shall issue rules 9
(which rules shall be effective no earlier than the effective 10
date of this subtitle) to exempt from the requirements of 11
this section any company in a holding company system 12
whose public utility operations are confined substantially 13
to a single State and any other class of transactions that 14
the Commission finds is not relevant to the jurisdictional 15
rates of a public utility. 16
(d) PUBLIC UTILITY.—As used in this section, the 17
term ‘‘public utility’’ has the meaning given that term in 18
section 201(e) of the Federal Power Act. 19
SEC. 1276. AUTHORIZATION OF APPROPRIATIONS. 20
There are authorized to be appropriated such funds 21
as may be necessary to carry out this subtitle. 22
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SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL 1
POWER ACT. 2
(a) CONFLICT OF JURISDICTION.—Section 318 of the 3
Federal Power Act (16 U.S.C. 825q) is repealed. 4
(b) DEFINITIONS.—(1) Section 201(g)(5) of the Fed- 5
eral Power Act (16 U.S.C. 824(g)(5)) is amended by strik- 6
ing ‘‘1935’’ and inserting ‘‘2003’’. 7
(2) Section 214 of the Federal Power Act (16 U.S.C. 8
824m) is amended by striking ‘‘1935’’ and inserting 9
‘‘2003’’. 10
Subtitle G—Market Transparency, 11
Enforcement, and Consumer 12
Protection 13
SEC. 1281. MARKET TRANSPARENCY RULES. 14
Part II of the Federal Power Act (16 U.S.C. 824 et 15
seq.) is amended by adding at the end the following: 16
‘‘SEC. 220. MARKET TRANSPARENCY RULES. 17
‘‘(a) IN GENERAL.—Not later than 180 days after 18
the date of enactment of this section, the Commission 19
shall issue rules establishing an electronic information sys- 20
tem to provide the Commission and the public with access 21
to such information as is necessary or appropriate to fa- 22
cilitate price transparency and participation in markets 23
subject to the Commission’s jurisdiction under this Act. 24
Such systems shall provide information about the avail- 25
ability and market price of wholesale electric energy and 26
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transmission services to the Commission, State commis- 1
sions, buyers and sellers of wholesale electric energy, users 2
of transmission services, and the public on a timely basis. 3
The Commission shall have authority to obtain such infor- 4
mation from any electric utility or transmitting utility, in- 5
cluding any entity described in section 201(f). 6
‘‘(b) EXEMPTIONS.—The Commission shall exempt 7
from disclosure information it determines would, if dis- 8
closed, be detrimental to the operation of an effective mar- 9
ket or jeopardize system security. This section shall not 10
apply to transactions for the purchase or sale of wholesale 11
electric energy or transmission services within the area de- 12
scribed in section 212(k)(2)(A). In determining the infor- 13
mation to be made available under this section and time 14
to make such information available, the Commission shall 15
seek to ensure that consumers and competitive markets 16
are protected from the adverse effects of potential collu- 17
sion or other anti-competitive behaviors that can be facili- 18
tated by untimely public disclosure of transaction-specific 19
information. 20
‘‘(c) COMMODITY FUTURES TRADING COMMIS- 21
SION.—This section shall not affect the exclusive jurisdic- 22
tion of the Commodity Futures Trading Commission with 23
respect to accounts, agreements, contracts, or transactions 24
in commodities under the Commodity Exchange Act (7 25
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U.S.C. 1 et seq.). Any request for information to a des- 1
ignated contract market, registered derivatives transaction 2
execution facility, board of trade, exchange, or market in- 3
volving accounts, agreements, contracts, or transactions in 4
commodities (including natural gas, electricity and other 5
energy commodities) within the exclusive jurisdiction of 6
the Commodity Futures Trading Commission shall be di- 7
rected to the Commodity Futures Trading Commission. 8
‘‘(d) SAVINGS PROVISION.—In exercising its author- 9
ity under this section, the Commission shall not— 10
‘‘(1) compete with, or displace from the market 11
place, any price publisher; or 12
‘‘(2) regulate price publishers or impose any re- 13
quirements on the publication of information.’’. 14
SEC. 1282. MARKET MANIPULATION. 15
Part II of the Federal Power Act (16 U.S.C. 824 et 16
seq.) is amended by adding at the end the following: 17
‘‘SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 18
‘‘No person or other entity (including an entity de- 19
scribed in section 201(f)) shall willfully and knowingly re- 20
port any information relating to the price of electricity 21
sold at wholesale or availability of transmission capacity, 22
which information the person or any other entity knew to 23
be false at the time of the reporting, to a Federal agency 24
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with intent to fraudulently affect the data being compiled 1
by such Federal agency. 2
‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRADING. 3
‘‘(a) PROHIBITION.—No person or other entity (in- 4
cluding an entity described in section 201(f)) shall willfully 5
and knowingly enter into any contract or other arrange- 6
ment to execute a ‘round trip trade’ for the purchase or 7
sale of electric energy at wholesale. 8
‘‘(b) DEFINITION.—For the purposes of this section, 9
the term ‘round trip trade’ means a transaction, or com- 10
bination of transactions, in which a person or any other 11
entity— 12
‘‘(1) enters into a contract or other arrange- 13
ment to purchase from, or sell to, any other person 14
or other entity electric energy at wholesale; 15
‘‘(2) simultaneously with entering into the con- 16
tract or arrangement described in paragraph (1), ar- 17
ranges a financially offsetting trade with such other 18
person or entity for the same such electric energy, 19
at the same location, price, quantity and terms so 20
that, collectively, the purchase and sale transactions 21
in themselves result in no financial gain or loss; and 22
‘‘(3) enters into the contract or arrangement 23
with a specific intent to fraudulently affect reported 24
revenues, trading volumes, or prices.’’. 25
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SEC. 1283. ENFORCEMENT. 1
(a) COMPLAINTS.—Section 306 of the Federal Power 2
Act (16 U.S.C. 825e) is amended as follows: 3
(1) By inserting ‘‘electric utility,’’ after ‘‘Any 4
person,’’. 5
(2) By inserting ‘‘, transmitting utility,’’ after 6
‘‘licensee’’ each place it appears. 7
(b) REVIEW OF COMMISSION ORDERS.—Section 8
313(a) of the Federal Power Act (16 U.S.C. 8251) is 9
amended by inserting ‘electric utility,’ after ‘person,’ in 10
the first 2 places it appears and by striking ‘any person 11
unless such person’ and inserting ‘any entity unless such 12
entity’. 13
(c) INVESTIGATIONS.—Section 307(a) of the Federal 14
Power Act (16 U.S.C. 825f(a)) is amended as follows: 15
(1) By inserting ‘, electric utility, transmitting 16
utility, or other entity’ after ‘person’ each time it ap- 17
pears. 18
(2) By striking the period at the end of the 19
first sentence and inserting the following: ‘‘or in ob- 20
taining information about the sale of electric energy 21
at wholesale in interstate commerce and the trans- 22
mission of electric energy in interstate commerce.’’. 23
(d) CRIMINAL PENALTIES.—Section 316 of the Fed- 24
eral Power Act (16 U.S.C. 825o) is amended— 25
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(1) in subsection (a), by striking ‘‘$5,000’’ and 1
inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 2
and inserting ‘‘5 years’’; 3
(2) in subsection (b), by striking ‘‘$500’’ and 4
inserting ‘‘$25,000’’; and 5
(3) by striking subsection (c). 6
(e) CIVIL PENALTIES.—Section 316A of the Federal 7
Power Act (16 U.S.C. 825o–1) is amended as follows: 8
(1) In subsections (a) and (b), by striking ‘‘sec- 9
tion 211, 212, 213, or 214’’ each place it appears 10
and inserting ‘‘Part II’’. 11
(2) In subsection (b), by striking ‘‘$10,000’’ 12
and inserting ‘‘$1,000,000’’. 13
SEC. 1284. REFUND EFFECTIVE DATE. 14
Section 206(b) of the Federal Power Act (16 U.S.C. 15
824e(b)) is amended as follows: 16
(1) By striking ‘‘the date 60 days after the fil- 17
ing of such complaint nor later than 5 months after 18
the expiration of such 60-day period’’ in the second 19
sentence and inserting ‘‘the date of the filing of such 20
complaint nor later than 5 months after the filing of 21
such complaint’’. 22
(2) By striking ‘‘60 days after’’ in the third 23
sentence and inserting ‘‘of’’. 24
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(3) By striking ‘‘expiration of such 60-day pe- 1
riod’’ in the third sentence and inserting ‘‘publica- 2
tion date’’. 3
(4) By striking the fifth sentence and inserting 4
the following: ‘‘If no final decision is rendered by the 5
conclusion of the 180-day period commencing upon 6
initiation of a proceeding pursuant to this section, 7
the Commission shall state the reasons why it has 8
failed to do so and shall state its best estimate as 9
to when it reasonably expects to make such deci- 10
sion.’’. 11
SEC. 1285. REFUND AUTHORITY. 12
Section 206 of the Federal Power Act (16 U.S.C. 13
824e) is amended by adding the following new subsection 14
at the end thereof: 15
‘‘(e)(1) Except as provided in paragraph (2), if an 16
entity described in section 201(f) voluntarily makes a 17
short-term sale of electric energy and the sale violates 18
Commission rules in effect at the time of the sale, such 19
entity shall be subject to the Commission’s refund author- 20
ity under this section with respect to such violation. 21
‘‘(2) This section shall not apply to— 22
‘‘(A) any entity that sells less than 8,000,000 23
megawatt hours of electricity per year; or 24
‘‘(B) any electric cooperative. 25
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‘‘(3) For purposes of this subsection, the term ‘short- 1
term sale’ means an agreement for the sale of electric en- 2
ergy at wholesale in interstate commerce that is for a pe- 3
riod of 31 days or less. 4
‘‘(4) The Commission shall have refund authority 5
under subsection (e)(1) with respect to a voluntary short- 6
term sale of electric energy by the Bonneville Power Ad- 7
ministration (in this section ‘Bonneville’) only if the sale 8
is at an unjust and unreasonable rate and, in that event, 9
may order a refund only for short-term sales made by 10
Bonneville at rates that are higher than the highest just 11
and reasonable rate charged by any other entity for a 12
short-term sale of electric energy in the same geographic 13
market for the same, or most nearly comparable, period 14
as the sale by Bonneville. 15
‘‘(5) With respect to any Federal power marketing 16
agency or the Tennessee Valley Authority, the Commission 17
shall not assert or exercise any regulatory authority or 18
powers under subsection (e)(1) other than the ordering of 19
refunds to achieve a just and reasonable rate.’’. 20
SEC. 1286. SANCTITY OF CONTRACT. 21
(a) IN GENERAL.—The Federal Energy Regulatory 22
Commission (in this section, ‘‘the Commission’’) shall have 23
no authority to abrogate or modify any provision of an 24
executed contract or executed contract amendment de- 25
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scribed in subsection (b) that has been entered into or 1
taken effect, except upon a finding that failure to take 2
such action would be contrary to the public interest. 3
(b) LIMITATION.—Except as provided in subsection 4
(c), this section shall apply only to a contract or contract 5
amendment— 6
(1) executed on or after the date of enactment 7
of this Act; and 8
(2) entered into— 9
(A) for the purchase or sale of electric en- 10
ergy under section 205 of the Federal Power 11
Act (16 U.S.C. 824d) where the seller has been 12
authorized by the Commission to charge mar- 13
ket-based rates; or 14
(B) under section 4 of the Natural Gas 15
Act (15 U.S.C. 717c) where the natural gas 16
company has been authorized by the Commis- 17
sion to charge market-based rates for the serv- 18
ice described in the contract. 19
(c) EXCLUSION.—This section shall not apply to an 20
executed contract or executed contract amendment that 21
expressly provides for a standard of review other than the 22
public interest standard. 23
(d) SAVINGS PROVISION.—With respect to contracts 24
to which this section does not apply, nothing in this sec- 25
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tion alters existing law regarding the applicable standard 1
of review for a contract subject to the jurisdiction of the 2
Commission. 3
SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRAC- 4
TICES. 5
(a) PRIVACY.—The Federal Trade Commission may 6
issue rules protecting the privacy of electric consumers 7
from the disclosure of consumer information obtained in 8
connection with the sale or delivery of electric energy to 9
electric consumers. 10
(b) SLAMMING.—The Federal Trade Commission 11
may issue rules prohibiting the change of selection of an 12
electric utility except with the informed consent of the 13
electric consumer or if approved by the appropriate State 14
regulatory authority. 15
(c) CRAMMING.—The Federal Trade Commission 16
may issue rules prohibiting the sale of goods and services 17
to an electric consumer unless expressly authorized by law 18
or the electric consumer. 19
(d) RULEMAKING.—The Federal Trade Commission 20
shall proceed in accordance with section 553 of title 5, 21
United States Code, when prescribing a rule under this 22
section. 23
(e) STATE AUTHORITY.—If the Federal Trade Com- 24
mission determines that a State’s regulations provide 25
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equivalent or greater protection than the provisions of this 1
section, such State regulations shall apply in that State 2
in lieu of the regulations issued by the Commission under 3
this section. 4
(f) DEFINITIONS.—For purposes of this section: 5
(1) STATE REGULATORY AUTHORITY.—The 6
term ‘‘State regulatory authority’’ has the meaning 7
given that term in section 3(21) of the Federal 8
Power Act (16 U.S.C. 796(21)). 9
(2) ELECTRIC CONSUMER AND ELECTRIC UTIL- 10
ITY.—The terms ‘‘electric consumer’’ and ‘‘electric 11
utility’’ have the meanings given those terms in sec- 12
tion 3 of the Public Utility Regulatory Policies Act 13
of 1978 (16 U.S.C. 2602). 14
Subtitle H—Merger Reform 15
SEC. 1291. MERGER REVIEW REFORM AND ACCOUNT- 16
ABILITY. 17
(a) MERGER REVIEW REFORM.—Within 180 days 18
after the date of enactment of this Act, the Secretary of 19
Energy, in consultation with the Federal Energy Regu- 20
latory Commission and the Attorney General of the United 21
States, shall prepare, and transmit to Congress each of 22
the following: 23
(1) A study of the extent to which the authori- 24
ties vested in the Federal Energy Regulatory Com- 25
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113
mission under section 203 of the Federal Power Act 1
are duplicative of authorities vested in— 2
(A) other agencies of Federal and State 3
Government; and 4
(B) the Federal Energy Regulatory Com- 5
mission, including under sections 205 and 206 6
of the Federal Power Act. 7
(2) Recommendations on reforms to the Fed- 8
eral Power Act that would eliminate any unneces- 9
sary duplication in the exercise of regulatory author- 10
ity or unnecessary delays in the approval (or dis- 11
approval) of applications for the sale, lease, or other 12
disposition of public utility facilities. 13
(b) MERGER REVIEW ACCOUNTABILITY.—Not later 14
than 1 year after the date of enactment of this Act and 15
annually thereafter, with respect to all orders issued with- 16
in the preceding year that impose a condition on a sale, 17
lease, or other disposition of public utility facilities under 18
section 203(b) of the Federal Power Act, the Federal En- 19
ergy Regulatory Commission shall transmit a report to 20
Congress explaining each of the following: 21
(1) The condition imposed. 22
(2) Whether the Commission could have im- 23
posed such condition by exercising its authority 24
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114
under any provision of the Federal Power Act other 1
than under section 203(b). 2
(3) If the Commission could not have imposed 3
such condition other than under section 203(b), why 4
the Commission determined that such condition was 5
consistent with the public interest. 6
SEC. 1292. ELECTRIC UTILITY MERGERS. 7
(a) AMENDMENT.—Section 203(a) of the Federal 8
Power Act (16 U.S.C. 824b(a)) is amended to read as fol- 9
lows: 10
‘‘(a)(1) No public utility shall, without first having 11
secured an order of the Commission authorizing it to do 12
so— 13
‘‘(A) sell, lease, or otherwise dispose of the 14
whole of its facilities subject to the jurisdiction of 15
the Commission, or any part thereof of a value in 16
excess of $10,000,000; 17
‘‘(B) merge or consolidate, directly or indi- 18
rectly, such facilities or any part thereof with those 19
of any other person, by any means whatsoever; or 20
‘‘(C) purchase, acquire, or take any security 21
with a value in excess of $10,000,000 of any other 22
public utility. 23
‘‘(2) No holding company in a holding company sys- 24
tem that includes a public utility shall purchase, acquire, 25
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115
or take any security with a value in excess of $10,000,000 1
of, or, by any means whatsoever, directly or indirectly, 2
merge or consolidate with, a public utility or a holding 3
company in a holding company system that includes a 4
public utility with a value in excess of $10,000,000 with- 5
out first having secured an order of the Commission au- 6
thorizing it to do so. 7
‘‘(3) Upon receipt of an application for such approval 8
the Commission shall give reasonable notice in writing to 9
the Governor and State commission of each of the States 10
in which the physical property affected, or any part there- 11
of, is situated, and to such other persons as it may deem 12
advisable. 13
‘‘(4) After notice and opportunity for hearing, the 14
Commission shall approve the proposed disposition, con- 15
solidation, acquisition, or change in control, if it finds that 16
the proposed transaction will be consistent with the public 17
interest. In evaluating whether a transaction will be con- 18
sistent with the public interest, the Commission shall con- 19
sider whether the proposed transaction— 20
‘‘(A) will adequately protect consumer interests; 21
‘‘(B) will be consistent with competitive whole- 22
sale markets; 23
‘‘(C) will impair the financial integrity of any 24
public utility that is a party to the transaction or an 25
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116
associate company of any party to the transaction; 1
and 2
‘‘(D) satisfies such other criteria as the Com- 3
mission considers consistent with the public interest. 4
‘‘(5) The Commission shall, by rule, adopt procedures 5
for the expeditious consideration of applications for the 6
approval of dispositions, consolidations, or acquisitions 7
under this section. Such rules shall identify classes of 8
transactions, or specify criteria for transactions, that nor- 9
mally meet the standards established in paragraph (4). 10
The Commission shall provide expedited review for such 11
transactions. The Commission shall grant or deny any 12
other application for approval of a transaction not later 13
than 180 days after the application is filed. If the Com- 14
mission does not act within 180 days, such application 15
shall be deemed granted unless the Commission finds, 16
based on good cause, that further consideration is required 17
to determine whether the proposed transaction meets the 18
standards of paragraph (4) and issues an order tolling the 19
time for acting on the application for not more than 180 20
days, at the end of which additional period the Commis- 21
sion shall grant or deny the application. 22
‘‘(6) For purposes of this subsection, the terms ‘asso- 23
ciate company’, ‘holding company’, and ‘holding company 24
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117
system’ have the meaning given those terms in the Public 1
Utility Holding Company Act of 2003.’’. 2
(b) EFFECTIVE DATE.—The amendments made by 3
this section shall take effect 12 months after the date of 4
enactment of this section. 5
Subtitle I—Definitions 6
SEC. 1295. DEFINITIONS. 7
(a) ELECTRIC UTILITY.—Section 3(22) of the Fed- 8
eral Power Act (16 U.S.C. 796(22)) is amended to read 9
as follows: 10
‘‘(22) ELECTRIC UTILITY.—The term ‘electric 11
utility’ means any person or Federal or State agency 12
(including any entity described in section 201(f)) 13
that sells electric energy; such term includes the 14
Tennessee Valley Authority and each Federal power 15
marketing administration.’’. 16
(b) TRANSMITTING UTILITY.—Section 3(23) of the 17
Federal Power Act (16 U.S.C. 796(23)) is amended to 18
read as follows: 19
‘‘(23) TRANSMITTING UTILITY.—The term 20
‘transmitting utility’ means an entity, including any 21
entity described in section 201(f), that owns, oper- 22
ates, or controls facilities used for the transmission 23
of electric energy— 24
‘‘(A) in interstate commerce; or 25
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118
‘‘(B) for the sale of electric energy at 1
wholesale.’’. 2
(c) ADDITIONAL DEFINITIONS.—Section 3 of the 3
Federal Power Act (16 U.S.C. 796) is amended by adding 4
at the end the following: 5
‘‘(26) ELECTRIC COOPERATIVE.—The term 6
‘electric cooperative’ means a cooperatively owned 7
electric utility. 8
‘‘(27) RTO.—The term ‘Regional Transmission 9
Organization’ or ‘RTO’ means an entity of sufficient 10
regional scope approved by the Commission to exer- 11
cise operational or functional control of facilities 12
used for the transmission of electric energy in inter- 13
state commerce and to ensure nondiscriminatory ac- 14
cess to such facilities. 15
‘‘(28) ISO.—The term ‘Independent System 16
Operator’ or ‘ISO’ means an entity approved by the 17
Commission to exercise operational or functional 18
control of facilities used for the transmission of elec- 19
tric energy in interstate commerce and to ensure 20
nondiscriminatory access to such facilities.’’. 21
(d) COMMISSION.—For the purposes of this title, the 22
term ‘‘Commission’’ means the Federal Energy Regu- 23
latory Commission. 24
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119
(e) APPLICABILITY.—Section 201(f) of the Federal 1
Power Act (16 U.S.C. 824(f)) is amended by adding after 2
‘‘political subdivision of a state,’’ the following: ‘‘an elec- 3
tric cooperative that has financing under the Rural Elec- 4
trification Act of 1936 (7 U.S.C. 901 et seq.) or that sells 5
less than 4,000,000 megawatt hours of electricity per 6
year,’’. 7
Subtitle J—Technical and 8
Conforming Amendments 9
SEC. 1297. CONFORMING AMENDMENTS. 10
The Federal Power Act is amended as follows: 11
(1) Section 201(b)(2) of such Act (16 U.S.C. 12
824(b)(2)) is amended as follows: 13
(A) In the first sentence by striking ‘‘210, 14
211, and 212’’ and inserting ‘‘203(a)(2), 15
206(e), 210, 211, 211A, 212, 215, 216, 217, 16
218, 219, 220, 221, and 222’’. 17
(B) In the second sentence by striking 18
‘‘210 or 211’’ and inserting ‘‘203(a)(2), 206(e), 19
210, 211, 211A, 212, 215, 216, 217, 218, 219, 20
220, 221, and 222’’. 21
(C) Section 201(b)(2) of such Act is 22
amended by striking ‘‘The’’ in the first place it 23
appears and inserting ‘‘Notwithstanding section 24
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120
201(f), the’’ and in the second sentence after 1
‘‘any order’’ by inserting ‘‘or rule’’. 2
(2) Section 201(e) of such Act is amended by 3
striking ‘‘210, 211, or 212’’ and inserting ‘‘206(e), 4
206(f), 210, 211, 211A, 212, 215, 216, 217, 218, 5
219, 220, 221, and 222’’. 6
(3) Section 206 of such Act (16 U.S.C. 824e) 7
is amended as follows: 8
(A) In subsection (b), in the seventh sen- 9
tence, by striking ‘‘the public utility to make’’. 10
(B) In the first sentence of subsection (a), 11
by striking ‘hearing had’ and inserting ‘‘hearing 12
held’’. 13
(4) Section 211(c) of such Act (16 U.S.C. 14
824j(c)) is amended by— 15
(A) striking ‘‘(2)’’; 16
(B) striking ‘‘(A)’’ and inserting ‘‘(1)’’ 17
(C) striking ‘‘(B)’’ and inserting ‘‘(2)’’; 18
and 19
(D) striking ‘‘termination of modification’’ 20
and inserting ‘‘termination or modification’’. 21
(5) Section 211(d)(1) of such Act (16 U.S.C. 22
824j(d)(1)) is amended by striking ‘‘electric utility’’ 23
the second time it appears and inserting ‘‘transmit- 24
ting utility’’. 25
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121
(6) Section 315 (c) of such Act (16 U.S.C. 1
825n(c)) is amended by striking ‘‘subsection’’ and 2
inserting ‘‘section’’. 3
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Title XIII - Tax

No provisions published.

Title XIV - Miscellaneous

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE XIV—MISCELLANEOUS 1
Subtitle A—Rural and Remote 2
Electricity Construction 3
SEC. 1401. DENALI COMMISSION PROGRAMS. 4
There are authorized to be appropriated to the Denali 5
Commission established by the Denali Commission Act of 6
1998 (42 U.S.C. 3121 note) not more than $5,000,000 7
for each of fiscal years 2005 through 2011 for the pur- 8
poses of funding the power cost equalization program es- 9
tablished under section 42.45.100 of the Alaska Statutes. 10
SEC. 1402. RURAL AND REMOTE COMMUNITY ASSISTANCE. 11
(a) PROGRAM.—Section 19 of the Rural Electrifica- 12
tion Act of 1936 (7 U.S.C 918a) is amended by striking 13
all that precedes subsection (b) and inserting the fol- 14
lowing: 15
‘‘SEC. 19. ELECTRIC GENERATION, TRANSMISSION, AND 16
DISTRIBUTION FACILITIES EFFICIENCY 17
GRANTS AND LOANS TO RURAL AND REMOTE 18
COMMUNITIES WITH EXTREMELY HIGH ELEC- 19
TRICITY COSTS. 20
‘‘(a) IN GENERAL.—The Secretary, acting through 21
the Rural Utilities Service, may— 22
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2
‘‘(1) in coordination with State rural develop- 1
ment initiatives, make grants and loans to persons, 2
States, political subdivisions of States, and other en- 3
tities organized under the laws of States, to acquire, 4
construct, extend, upgrade, and otherwise improve 5
electric generation, transmission, and distribution fa- 6
cilities serving communities in which the average 7
revenue per kilowatt hour of electricity for all con- 8
sumers is greater than 150 percent of the average 9
revenue per kilowatt hour of electricity for all con- 10
sumers in the United States (as determined by the 11
Energy Information Administration using the most 12
recent data available); 13
‘‘(2) make grants and loans to the Denali Com- 14
mission established by the Denali Commission Act of 15
1998 (42 U.S.C. 3121 note; Public 105–277) to be 16
used for the purpose of providing funds to acquire, 17
construct, extend, upgrade, finance, and otherwise 18
improve electric generation, transmission, and dis- 19
tribution facilities serving communities described in 20
paragraph (1); and 21
‘‘(3) make grants to State entities to establish 22
and support a revolving fund to provide a more cost- 23
effective means of purchasing fuel in areas where 24
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3
the fuel cannot be shipped by means of surface 1
transportation.’’. 2
(b) DEFINITION OF PERSON.—Section 13 of the 3
Rural Electrification Act of 1936 (7 U.S.C. 913) is 4
amended by striking ‘‘or association’’ and inserting ‘‘asso- 5
ciation, or Indian tribe (as defined in section 4 of the In- 6
dian Self-Determination and Education Assistance Act)’’. 7
Subtitle B—Coastal Programs 8
SEC. 1411. ROYALTY PAYMENTS UNDER LEASES UNDER 9
THE OUTER CONTINENTAL SHELF LANDS 10
ACT. 11
(a) ROYALTY RELIEF.— 12
(1) IN GENERAL.—For purposes of providing 13
compensation for lessees and a State for which 14
amounts are authorized by section 6004(c) of the Oil 15
Pollution Act of 1990 (Public Law 101–380), a les- 16
see may withhold from payment any royalty due and 17
owing to the United States under any leases under 18
the Outer Continental Shelf Lands Act (43 U.S.C. 19
1301 et seq.) for offshore oil or gas production from 20
a covered lease tract if, on or before the date that 21
the payment is due and payable to the United 22
States, the lessee makes a payment to the Secretary 23
of the Interior of 44 cents for every $1 of royalty 24
withheld. 25
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4
(2) USE OF AMOUNTS PAID TO SECRETARY.— 1
Within 30 days after the Secretary of the Interior 2
receives payments under paragraph (1), the Sec- 3
retary of the Interior shall— 4
(A) make 47.5 percent of such payments 5
available to the State referred to in section 6
6004(c) of the Oil Pollution Act of 1990; and 7
(B) make 52.5 percent of such payments 8
available equally, only for the programs and 9
purposes identified as number 282 at page 10
1389 of House Report number 108–10 and for 11
a program described at page 1159 of that Re- 12
port in the State referred to in such section 13
6004(c). 14
(3) TREATMENT OF AMOUNTS.—Any royalty 15
withheld by a lessee in accordance with this section 16
(including any portion thereof that is paid to the 17
Secretary of the Interior under paragraph (1)) shall 18
be treated as paid for purposes of satisfaction of the 19
royalty obligations of the lessee to the United States. 20
(4) CERTIFICATION OF WITHHELD AMOUNTS.— 21
The Secretary of the Treasury shall— 22
(A) determine the amount of royalty with- 23
held by a lessee under this section; and 24
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5
(B) promptly publish a certification when 1
the total amount of royalty withheld by the les- 2
see under this section is equal to— 3
(i) the dollar amount stated at page 4
47 of Senate Report number 101–534, 5
which is designated therein as the total 6
drainage claim for the West Delta field; 7
plus 8
(ii) interest as described at page 47 of 9
that Report. 10
(b) PERIOD OF ROYALTY RELIEF.—Subsection (a) 11
shall apply to royalty amounts that are due and payable 12
in the period beginning on January 1, 2004, and ending 13
on the date on which the Secretary of the Treasury pub- 14
lishes a certification under subsection (a)(4)(B). 15
(c) DEFINITIONS.—As used in this section: 16
(1) COVERED LEASE TRACT.—The term ‘‘cov- 17
ered lease tract’’ means a leased tract (or portion of 18
a leased tract)— 19
(A) lying seaward of the zone defined and 20
governed by section 8(g) of the Outer Conti- 21
nental Shelf Lands Act (43 U.S.C. 1337(g)); or 22
(B) lying within such zone but to which 23
such section does not apply. 24
(2) LESSEE.—The term ‘‘lessee’’— 25
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6
(A) means a person or entity that, on the 1
date of the enactment of the Oil Pollution Act 2
of 1990, was a lessee referred to in section 3
6004(c) of that Act (as in effect on that date 4
of the enactment), but did not hold lease rights 5
in Federal offshore lease OCS–G–5669; and 6
(B) includes successors and affiliates of a 7
person or entity described in subparagraph (A). 8
SEC. 1412. DOMESTIC OFFSHORE ENERGY REINVESTMENT. 9
(a) DOMESTIC OFFSHORE ENERGY REINVESTMENT 10
PROGRAM.—The Outer Continental Shelf Lands Act (43 11
U.S.C. 1331 et seq.) is amended by adding at the end 12
the following: 13
‘‘SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT 14
PROGRAM. 15
‘‘(a) DEFINITIONS.—In this section: 16
‘‘(1) APPROVED PLAN.—The term ‘approved 17
plan’ means a Secure Energy Reinvestment Plan ap- 18
proved by the Secretary under this section. 19
‘‘(2) COASTAL ENERGY STATE.—The term 20
‘Coastal Energy State’ means a Coastal State off 21
the coastline of which, as determined by the map 22
referenced in subsection (c)(2)(A), outer Continental 23
Shelf bonus bids or royalties are generated, other 24
than bonus bids or royalties from a leased tract 25
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7
within any area of the outer Continental Shelf for 1
which a moratorium on new leasing was in effect as 2
of January 1, 2002, unless the lease was issued be- 3
fore the establishment of the moratorium and was in 4
production on such date. 5
‘‘(3) COASTAL POLITICAL SUBDIVISION.—The 6
term ‘coastal political subdivision’ means a county, 7
parish, or other equivalent subdivision of a Coastal 8
Energy State, all or part of which lies within the 9
boundaries of the coastal zone of the State, as iden- 10
tified in the State’s approved coastal zone manage- 11
ment program under the Coastal Zone Management 12
Act of 1972 (16 U.S.C. 1451 et seq.) on the date 13
of the enactment of this section. 14
‘‘(4) COASTAL POPULATION.—The term ‘coastal 15
population’ means the population of a coastal polit- 16
ical subdivision, as determined by the most recent 17
official data of the Census Bureau. 18
‘‘(5) COASTLINE.—The term ‘coastline’ has the 19
same meaning as the term ‘coast line’ in subsection 20
2(c) of the Submerged Lands Act (43 U.S.C. 21
1301(c)). 22
‘‘(6) FUND.—The term ‘Fund’ means the Se- 23
cure Energy Reinvestment Fund established by this 24
section. 25
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8
‘‘(7) LEASED TRACT.—The term ‘leased tract’ 1
means a tract maintained under section 6 or leased 2
under section 8 for the purpose of drilling for, devel- 3
oping, and producing oil and natural gas resources. 4
‘‘(8) QUALIFIED OUTER CONTINENTAL SHELF 5
REVENUES.—(A) Except as provided in subpara- 6
graph (B), the term ‘qualified outer Continental 7
Shelf revenues’ means all amounts received by the 8
United States on or after October 1, 2003, from 9
each leased tract or portion of a leased tract lying 10
seaward of the zone defined and governed by section 11
8(g), or lying within such zone but to which section 12
8(g) does not apply, including bonus bids, rents, roy- 13
alties (including payments for royalties taken in kind 14
and sold), net profit share payments, and related in- 15
terest. 16
‘‘(B) Such term does not include any revenues 17
from a leased tract or portion of a leased tract that 18
is included within any area of the outer Continental 19
Shelf for which a moratorium on new leasing was in 20
effect as of January 1, 2002, unless the lease was 21
issued before the establishment of the moratorium 22
and was in production on such date. 23
‘‘(9) SECRETARY.—The term ‘Secretary’ means 24
the Secretary of the Interior. 25
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9
‘‘(b) SECURE ENERGY REINVESTMENT FUND.— 1
‘‘(1) ESTABLISHMENT.—There is established in 2
the Treasury of the United States a separate ac- 3
count which shall be known as the ‘Secure Energy 4
Reinvestment Fund’. The Fund shall consist of 5
amounts deposited under paragraph (2), and such 6
other amounts as may be appropriated to the Fund. 7
‘‘(2) DEPOSITS.—For each fiscal year after fis- 8
cal year 2003, the Secretary of the Treasury shall 9
deposit into the Fund the following: 10
‘‘(A) Notwithstanding section 9, all quali- 11
fied outer Continental Shelf revenues attrib- 12
utable to royalties received by the United States 13
in the fiscal year that are in excess of the fol- 14
lowing amount: 15
‘‘(i) $3,455,000,000 in the case of 16
royalties received in fiscal year 2004. 17
‘‘(ii) $3,726,000,000 in the case of 18
royalties received in fiscal year 2005. 19
‘‘(iii) $4,613,000,000 in the case of 20
royalties received in fiscal year 2006. 21
‘‘(iv) $5,226,000,000 in the case of 22
royalties received in fiscal year 2007. 23
‘‘(v) $5,841,000,000 in the case of 24
royalties received in fiscal year 2008. 25
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10
‘‘(vi) $5,763,000,000 in the case of 1
royalties received in fiscal year 2009. 2
‘‘(vii) $6,276,000,000 in the case of 3
royalties received in fiscal year 2010. 4
‘‘(viii) $6,351,000,000 in the case of 5
royalties received in fiscal year 2011. 6
‘‘(ix) $6,551,000,000 in the case of 7
royalties received in fiscal year 2012. 8
‘‘(x) $5,120,000,000 in the case of 9
royalties received in fiscal year 2013. 10
‘‘(B) Notwithstanding section 9, all quali- 11
fied outer Continental shelf revenues attrib- 12
utable to bonus bids received by the United 13
States in each of the fiscal years 2004 through 14
2013 that are in excess of $1,000,000,000. 15
‘‘(C) Notwithstanding section 9, in addi- 16
tion to amounts deposited under subparagraphs 17
(A) and (B), $25,000,000 of amounts received 18
by the United States each fiscal year as royal- 19
ties for oil or gas production on the outer Con- 20
tinental Shelf, except that no amounts shall be 21
deposited under this subparagraph before fiscal 22
year 2004 or after fiscal year 2013. 23
‘‘(D) All interest earned under paragraph 24
(4). 25
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11
‘‘(E) All repayments under subsection (f). 1
‘‘(3) REDUCTION IN DEPOSIT.—(A) For each 2
fiscal year after fiscal year 2013 in which amounts 3
received by the United States as royalties for oil or 4
gas production on the outer Continental Shelf are 5
less than the sum of the amounts described in sub- 6
paragraph (B) (before the application of this sub- 7
paragraph), the Secretary of the Treasury shall re- 8
duce each of the amounts described in subparagraph 9
(B) proportionately. 10
‘‘(B) The amounts referred to in subparagraph 11
(A) are the following: 12
‘‘(i) The amount required to be covered 13
into the Historic Preservation Fund under sec- 14
tion 108 of the National Historic Preservation 15
Act (16 U.S.C. 470h) on the date of the enact- 16
ment of this paragraph. 17
‘‘(ii) The amount required to be credited to 18
the Land and Water Conservation Fund under 19
section 2(c)(2) of the Land and Water Con- 20
servation Fund Act of 1965 (16 U.S.C. 4601– 21
5(c)(2)) on the date of the enactment of this 22
paragraph. 23
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12
‘‘(iii) The amount required to be deposited 1
under subparagraph (C) of paragraph (2) of 2
this subsection. 3
‘‘(4) INVESTMENT.—The Secretary of the 4
Treasury shall invest moneys in the Fund (including 5
interest) in public debt securities with maturities 6
suitable to the needs of the Fund, as determined by 7
the Secretary of the Treasury, and bearing interest 8
at rates determined by the Secretary of the Treas- 9
ury, taking into consideration current market yields 10
on outstanding marketable obligations of the United 11
States of comparable maturity. Such invested mon- 12
eys shall remain invested until needed to meet re- 13
quirements for disbursement under this section. 14
‘‘(5) REVIEW AND REVISION OF BASELINE 15
AMOUNTS.—Not later than December 31, 2008, the 16
Secretary of the Interior, in consultation with the 17
Secretary of the Treasury, shall— 18
‘‘(A) determine the amount and composi- 19
tion of outer Continental Shelf revenues that 20
were received by the United States in each of 21
the fiscal years 2004 through 2008; 22
‘‘(B) project the amount and composition 23
of outer Continental Shelf revenues that will be 24
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13
received in the United States in each of the fis- 1
cal years 2009 through 2013; and 2
‘‘(C) submit to the Congress a report re- 3
garding whether any of the dollar amounts set 4
forth in clauses (v) though (x) of paragraph 5
(2)(A) or paragraph (2)(B) should be modified 6
to reflect those projections. 7
‘‘(6) AUTHORIZATION OF APPROPRIATION OF 8
ADDITIONAL AMOUNTS.—In addition to the amounts 9
deposited into the Fund under paragraph (2) there 10
are authorized to be appropriated to the Fund— 11
‘‘(A) for each of fiscal years 2004 through 12
2013 up to $500,000,000; and 13
‘‘(B) for each fiscal year after fiscal year 14
2013 up to 25 percent of qualified outer Conti- 15
nental Shelf revenues received by the United 16
States in the preceding fiscal year. 17
‘‘(c) USE OF SECURE ENERGY REINVESTMENT 18
FUND.— 19
‘‘(1) IN GENERAL.—(A) The Secretary shall use 20
amounts in the Fund remaining after the application 21
of subsections (h) and (i) to pay to each Coastal En- 22
ergy State that has a Secure Energy Reinvestment 23
Plan approved by the Secretary under this section, 24
and to coastal political subdivisions of such State, 25
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14
the amount allocated to the State or coastal political 1
subdivision, respectively, under this subsection. 2
‘‘(B) The Secretary shall make payments under 3
this paragraph in December of 2004, and of each 4
year thereafter, from revenues received by the 5
United States in the immediately preceding fiscal 6
year. 7
‘‘(2) ALLOCATION.—The Secretary shall allo- 8
cate amounts deposited into the Fund in a fiscal 9
year, and other amounts determined by the Sec- 10
retary to be available, among Coastal Energy States 11
that have an approved plan, and to coastal political 12
subdivisions of such States, as follows: 13
‘‘(A)(i) Of the amounts made available for 14
each of the first 10 fiscal years for which 15
amounts are available for allocation under this 16
paragraph, the allocation for each Coastal En- 17
ergy State shall be calculated based on the ratio 18
of qualified outer Continental Shelf revenues 19
generated off the coastline of the Coastal En- 20
ergy State to the qualified outer Continental 21
Shelf revenues generated off the coastlines of 22
all Coastal Energy States for the period begin- 23
ning January 1, 1992, and ending December 24
31, 2001. 25
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15
‘‘(ii) Of the amounts available for a fiscal 1
year in a subsequent 10-fiscal-year period, the 2
allocation for each Coastal Energy State shall 3
be calculated based on such ratio determined by 4
the Secretary with respect to qualified outer 5
Continental Shelf revenues generated in each 6
subsequent corresponding 10-year period. 7
‘‘(iii) For purposes of this subparagraph, 8
qualified outer Continental Shelf revenues shall 9
be considered to be generated off the coastline 10
of a Coastal Energy State if the geographic 11
center of the lease tract from which the reve- 12
nues are generated is located within the area 13
formed by the extension of the State’s seaward 14
lateral boundaries, calculated using the strict 15
and scientifically derived conventions estab- 16
lished to delimit international lateral boundaries 17
under the Law of the Sea, as indicated on the 18
map entitled ‘Calculated Seaward Lateral 19
Boundaries’ and dated October 2003, on file in 20
the Office of the Director, Minerals Manage- 21
ment Service. 22
‘‘(B) 35 percent of each Coastal Energy 23
State’s allocable share as determined under 24
subparagraph (A) shall be allocated among and 25
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16
paid directly to the coastal political subdivisions 1
of the State by the Secretary based on the fol- 2
lowing formula: 3
‘‘(i) 25 percent shall be allocated 4
based on the ratio of each coastal political 5
subdivision’s coastal population to the 6
coastal population of all coastal political 7
subdivisions of the Coastal Energy State. 8
‘‘(ii) 25 percent shall be allocated 9
based on the ratio of each coastal political 10
subdivision’s coastline miles to the coast- 11
line miles of all coastal political subdivi- 12
sions of the State. In the case of a coastal 13
political subdivision without a coastline, 14
the coastline of the political subdivision for 15
purposes of this clause shall be one-third 16
the average length of the coastline of the 17
other coastal political subdivisions of the 18
State. 19
‘‘(iii) 50 percent shall be allocated 20
based on a formula that allocates 75 per- 21
cent of the funds based on such coastal po- 22
litical subdivision’s relative distance from 23
any leased tract used to calculate that 24
State’s allocation and 25 percent of the 25
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17
funds based on the relative level of outer 1
Continental Shelf oil and gas activities in 2
a coastal political subdivision to the level of 3
outer Continental Shelf oil and gas activi- 4
ties in all coastal political subdivisions in 5
such State, as determined by the Sec- 6
retary, except that in the case of a coastal 7
political subdivision in the State of Cali- 8
fornia that has a coastal shoreline, that is 9
not within 200 miles of the geographic cen- 10
ter of a leased tract or portion of a leased 11
tract, and in which there is located one or 12
more oil refineries the allocation under this 13
clause shall be determined as if that coast- 14
al political subdivision were located within 15
a distance of 50 miles from the geographic 16
center of the closest leased tract with 17
qualified outer Continental Shelf revenues. 18
‘‘(3) REALLOCATION.—Any amount allocated to 19
a Coastal Energy State or coastal political subdivi- 20
sion of such a State but not disbursed because of a 21
failure of a Coastal Energy State to have an ap- 22
proved plan shall be reallocated by the Secretary 23
among all other Coastal Energy States in a manner 24
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18
consistent with this subsection, except that the 1
Secretary— 2
‘‘(A) shall hold the amount in escrow with- 3
in the Fund until the earlier of the end of the 4
next fiscal year in which the allocation is made 5
or the final resolution of any appeal regarding 6
the disapproval of a plan submitted by the 7
State under this section; and 8
‘‘(B) shall continue to hold such amount in 9
escrow until the end of the subsequent fiscal 10
year thereafter, if the Secretary determines that 11
such State is making a good faith effort to de- 12
velop and submit, or update, a Secure Energy 13
Reinvestment Plan under subsection (d). 14
‘‘(4) MINIMUM SHARE.—Notwithstanding any 15
other provision of this subsection, the amount allo- 16
cated under this subsection to each Coastal Energy 17
State each fiscal year shall be not less than 5 per- 18
cent of the total amount available for that fiscal year 19
for allocation under this subsection to Coastal En- 20
ergy States, except that for any Coastal Energy 21
State determined by the Secretary to have an area 22
formed by the extension of the State’s seaward lat- 23
eral boundary, as designated by the map referenced 24
in paragraph (2)(A)(iii), of less than 490 square 25
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19
statute miles, the amount allocated to such State 1
shall not be less than 10 percent of the total amount 2
available for that fiscal year for allocation under this 3
subsection. 4
‘‘(5) RECOMPUTATION.—If the allocation to one 5
or more Coastal Energy States under paragraph (4) 6
with respect to a fiscal year is greater than the 7
amount that would be allocated to such States under 8
this subsection if paragraph (4) did not apply, then 9
the allocations under this subsection to all other 10
Coastal Energy States shall be paid from the 11
amount remaining after deduction of the amounts 12
allocated under paragraph (4), but shall be reduced 13
on a pro rata basis by the sum of the allocations 14
under paragraph (4) so that not more than 100 per- 15
cent of the funds available in the Fund for allocation 16
with respect to that fiscal year is allocated. 17
‘‘(d) SECURE ENERGY REINVESTMENT PLAN.— 18
‘‘(1) DEVELOPMENT AND SUBMISSION OF 19
STATE PLANS.—The Governor of each State seeking 20
to receive funds under this section shall prepare, and 21
submit to the Secretary, a Secure Energy Reinvest- 22
ment Plan describing planned expenditures of funds 23
received under this section. The Governor shall in- 24
clude in the State plan submitted to the Secretary 25
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20
plans prepared by the coastal political subdivisions 1
of the State. The Governor and the coastal political 2
subdivision shall solicit local input and provide for 3
public participation in the development of the State 4
plan. In describing the planned expenditures, the 5
State and coastal political subdivisions shall include 6
only items that are uses authorized under subsection 7
(e). 8
‘‘(2) APPROVAL OR DISAPPROVAL.— 9
‘‘(A) IN GENERAL.—The Secretary may 10
not disburse funds to a State or coastal political 11
subdivision of a State under this section before 12
the date the State has an approved plan. The 13
Secretary shall approve a Secure Energy Rein- 14
vestment Plan submitted by a State under 15
paragraph (1) if the Secretary determines that 16
the expenditures provided for in the plan are 17
uses authorized under subsection (e), and that 18
the plan contains each of the following: 19
‘‘(i) The name of the State agency 20
that will have the authority to represent 21
and act for the State in dealing with the 22
Secretary for purposes of this section. 23
‘‘(ii) A program for the implementa- 24
tion of the plan, that (I) has as a goal im- 25
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21
proving the environment, (II) has as a goal 1
addressing the impacts of oil and gas pro- 2
duction from the outer Continental Shelf, 3
and (III) includes a description of how the 4
State and coastal political subdivisions of 5
the State will evaluate the effectiveness of 6
the plan. 7
‘‘(iii) Certification by the Governor 8
that ample opportunity has been accorded 9
for public participation in the development 10
and revision of the plan. 11
‘‘(iv) Measures for taking into account 12
other relevant Federal resources and pro- 13
grams. The plan shall be correlated so far 14
as practicable with other State, regional, 15
and local plans. 16
‘‘(v) For any State for which the ratio 17
determined under subsection (c)(2)(A)(i) 18
or (c)(2)(A)(ii), as appropriate, expressed 19
as a percentage, exceeds 25 percent, a plan 20
to spend not less than 30 percent of the 21
total funds provided under this section 22
each fiscal year to that State and appro- 23
priate coastal political subdivisions, to ad- 24
dress the socioeconomic or environmental 25
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22
impacts identified in the plan that remain 1
significant or progressive after implemen- 2
tation of mitigation measures identified in 3
the most current environmental impact 4
statement (as of the date of the enactment 5
of this clause) required under the National 6
Environmental Protection Act of 1969 for 7
lease sales under this Act. 8
‘‘(vi) A plan to utilize at least one-half 9
of the funds provided pursuant to sub- 10
section (c)(2)(B), and a portion of other 11
funds provided to such State under this 12
section, on programs or projects that are 13
coordinated and conducted in partnership 14
between the State and coastal political sub- 15
division. 16
‘‘(B) PROCEDURE AND TIMING.—The Sec- 17
retary shall approve or disapprove each plan 18
submitted in accordance with this subsection 19
within 90 days after its submission. 20
‘‘(3) AMENDMENT OR REVISION.—Any amend- 21
ment to or revision of an approved plan shall be pre- 22
pared and submitted in accordance with the require- 23
ments under this paragraph for the submittal of 24
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23
plans, and shall be approved or disapproved by the 1
Secretary in accordance with paragraph (2)(B). 2
‘‘(e) AUTHORIZED USES.—A Coastal Energy State, 3
and a coastal political subdivision of such a State, shall 4
use amounts paid under this section (including any such 5
amounts deposited into a trust fund administered by the 6
State or coastal political subdivision dedicated to uses con- 7
sistent with this subsection), in compliance with Federal 8
and State law and the approved plan of the State, only 9
for one or more of the following purposes: 10
‘‘(1) Projects and activities, including edu- 11
cational activities, for the conservation, protection, 12
or restoration of coastal areas including wetlands. 13
‘‘(2) Mitigating damage to, or the protection of, 14
fish, wildlife, or natural resources. 15
‘‘(3) To the extent of such sums as are consid- 16
ered reasonable by the Secretary, planning assist- 17
ance and administrative costs of complying with this 18
section. 19
‘‘(4) Implementation of federally approved 20
plans or programs for marine, coastal, subsidence, 21
or conservation management or for protection of re- 22
sources from natural disasters. 23
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24
‘‘(5) Mitigating impacts of outer Continental 1
Shelf activities through funding onshore infrastruc- 2
ture and public service needs. 3
‘‘(f) COMPLIANCE WITH AUTHORIZED USES.—If the 4
Secretary determines that an expenditure of an amount 5
made by a Coastal Energy State or coastal political sub- 6
division is not in accordance with the approved plan of 7
the State (including the plans of coastal political subdivi- 8
sions included in such plan), the Secretary shall not dis- 9
burse any further amounts under this section to that 10
Coastal Energy State or coastal political subdivision 11
until— 12
‘‘(1) the amount is repaid to the Secretary; or 13
‘‘(2) the Secretary approves an amendment to 14
the plan that authorizes the expenditure. 15
‘‘(g) ARBITRATION OF STATE AND LOCAL DIS- 16
PUTES.—The Secretary may require, as a condition of any 17
payment under this section, that a State or coastal polit- 18
ical subdivision in a State must submit to arbitration— 19
‘‘(1) any dispute between the State or coastal 20
political subdivision (or both) and the Secretary re- 21
garding implementation of this section; and 22
‘‘(2) any dispute between the State and political 23
subdivision regarding implementation of this section, 24
including any failure to include, in the plan sub- 25
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November 15, 2003 (11:57 AM)
25
mitted by the State for purposes of subsection (d), 1
any spending plan of the coastal political subdivi- 2
sion. 3
‘‘(h) ADMINISTRATIVE EXPENSES.—Of amounts in 4
the Fund each fiscal year, the Secretary may use up to 5
one-half of one percent for the administrative costs of im- 6
plementing this section. 7
‘‘(i) FUNDING FOR CONSORTIUM.— 8
‘‘(1) IN GENERAL.—Of amounts deposited into 9
the Fund in each fiscal year 2004 through 2013, 2 10
percent shall be available to the Secretary of the In- 11
terior to provide funding for the Coastal Restoration 12
and Enhancement through Science and Technology 13
program. 14
‘‘(2) TREATMENT.—Any amount available 15
under this subsection for a fiscal year shall, for pur- 16
poses of determining the amount appropriated under 17
any other provision of law that authorizes appropria- 18
tions to carry out the program referred to in para- 19
graph (1), be treated as appropriated under that 20
other provision. 21
‘‘(j) DISPOSITION OF FUNDS.—A Coastal Energy 22
State or coastal political subdivision may use funds pro- 23
vided to such entity under this section, subject to sub- 24
section (e), for any payment that is eligible to be made 25
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26
with funds provided to States under section 35 of the Min- 1
eral Leasing Act (30 U.S.C. 191). 2
‘‘(k) REPORTS.—Each fiscal year following a fiscal 3
year in which a Coastal Energy State or coastal political 4
subdivision of a Coastal Energy State receives funds under 5
this section, the Governor of the Coastal Energy State, 6
in coordination with such State’s coastal political subdivi- 7
sions, shall account for all funds so received for the pre- 8
vious fiscal year in a written report to the Secretary. The 9
report shall include, in accordance with regulations pre- 10
scribed by the Secretary, a description of all projects and 11
activities that received such funds. In order to avoid dupli- 12
cation, such report may incorporate, by reference, any 13
other reports required to be submitted under other provi- 14
sions of law. 15
‘‘(l) SIGNS.—The Secretary shall require, as a condi- 16
tion of any allocation of funds provided with amounts 17
made available by this section, that each State and coastal 18
political subdivision shall include on any sign otherwise in- 19
stalled at any site at or near an entrance or public use 20
focal point area for which such funds are used, a state- 21
ment that the existence or development of the site (or 22
both), as appropriate, is a product of such funds.’’. 23
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(b) ADDITIONAL AMENDMENTS.—Section 31 of the 1
Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is 2
amended— 3
(1) by striking subsection (a); 4
(2) in subsection (c) by striking ‘‘For fiscal 5
year 2001, $150,000,000 is’’ and inserting ‘‘Such 6
sums as may be necessary to carry out this section 7
are’’; 8
(3) in subsection (d)(1)(B) by striking ‘‘, ex- 9
cept’’ and all that follows through the end of the 10
sentence and inserting a period; 11
(4) by redesignating subsections (b) though (g) 12
in order as subsection (a) through (f); and 13
(5) by striking ‘‘subsection (f)’’ each place it 14
appears and inserting ‘‘subsection (e)’’. 15
(c) UTILIZATION OF COASTAL RESTORATION AND 16
ENHANCEMENT THROUGH SCIENCE AND TECHNOLOGY 17
PROGRAM.— 18
(1) AUTHORIZATION.—The Secretary of the In- 19
terior and the Secretary of Commerce may each use 20
the Coastal Restoration and Enhancement through 21
Science and Technology program for the purposes 22
of— 23
(A) assessing the effects of coastal habitat 24
restoration techniques; 25
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28
(B) developing improved ecosystem mod- 1
eling capabilities for improved predictions of 2
coastal conditions and habitat change and for 3
developing new technologies for restoration ac- 4
tivities; and 5
(C) identifying economic options to address 6
socioeconomic consequences of coastal degrada- 7
tion. 8
(2) CONDITION.—The Secretary of the Interior, 9
in consultation with the Secretary of Commerce, 10
shall ensure that the program— 11
(A) establishes procedures designed to 12
avoid duplicative activities among Federal agen- 13
cies and entities receiving Federal funds; 14
(B) coordinates with persons involved in 15
similar activities; and 16
(C) establishes a mechanism to collect, or- 17
ganize, and make available information and 18
findings on coastal restoration. 19
(3) REPORT.—Not later than September 30, 20
2008, the Secretary of the Interior, in consultation 21
with the Secretary of Commerce, shall transmit a re- 22
port to the Congress on the effectiveness of any Fed- 23
eral and State restoration efforts conducted pursu- 24
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November 15, 2003 (11:57 AM)
29
ant to this subsection and make recommendations to 1
improve coordinated coastal restoration efforts. 2
(4) FUNDING.—For each of fiscal years 2004 3
through 2013, there is authorized to be appropriated 4
to the Secretary $10,000,000 to carry out activities 5
under this subsection. 6
Subtitle C—Reforms to the Board 7
of Directors of the Tennessee 8
Valley Authority 9
SEC. 1431. CHANGE IN COMPOSITION, OPERATION, AND DU- 10
TIES OF THE BOARD OF DIRECTORS OF THE 11
TENNESSEE VALLEY AUTHORITY. 12
The Tennessee Valley Authority Act of 1933 (16 13
U.S.C. 831 et seq.) is amended by striking section 2 and 14
inserting the following: 15
‘‘SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE 16
BOARD OF DIRECTORS. 17
‘‘(a) MEMBERSHIP.— 18
‘‘(1) APPOINTMENT.—The Board of Directors 19
of the Corporation (referred to in this Act as the 20
‘Board’) shall be composed of 9 members appointed 21
by the President by and with the advice and consent 22
of the Senate, at least 5 of whom shall be a legal 23
resident of a State any part of which is in the serv- 24
ice area of the Corporation. 25
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30
‘‘(2) CHAIRMAN.—The members of the Board 1
shall select 1 of the members to act as chairman of 2
the Board. 3
‘‘(b) QUALIFICATIONS.—To be eligible to be ap- 4
pointed as a member of the Board, an individual— 5
‘‘(1) shall be a citizen of the United States; 6
‘‘(2) shall have management expertise relative 7
to a large for-profit or nonprofit corporate, govern- 8
ment, or academic structure; 9
‘‘(3) shall not be an employee of the Corpora- 10
tion; and 11
‘‘(4) shall make full disclosure to Congress of 12
any investment or other financial interest that the 13
individual holds in the energy industry. 14
‘‘(c) RECOMMENDATIONS.—In appointing members 15
of the Board, the President shall— 16
‘‘(1) consider recommendations from such pub- 17
lic officials as— 18
‘‘(A) the Governors of States in the service 19
area; 20
‘‘(B) individual citizens; 21
‘‘(C) business, industrial, labor, electric 22
power distribution, environmental, civic, and 23
service organizations; and 24
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31
‘‘(D) the congressional delegations of the 1
States in the service area; and 2
‘‘(2) seek qualified members from among per- 3
sons who reflect the diversity, including the geo- 4
graphical diversity, and needs of the service area of 5
the Corporation. 6
‘‘(d) TERMS.— 7
‘‘(1) IN GENERAL.—A member of the Board 8
shall serve a term of 5 years. A member of the 9
Board whose term has expired may continue to serve 10
after the member’s term has expired until the date 11
on which a successor takes office, except that the 12
member shall not serve beyond the end of the ses- 13
sion of Congress in which the term of the member 14
expires. 15
‘‘(2) VACANCIES.—A member appointed to fill a 16
vacancy on the Board occurring before the expira- 17
tion of the term for which the predecessor of the 18
member was appointed shall be appointed for the re- 19
mainder of that term. 20
‘‘(e) QUORUM.— 21
‘‘(1) IN GENERAL.—Five of the members of the 22
Board shall constitute a quorum for the transaction 23
of business. 24
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32
‘‘(2) VACANCIES.—A vacancy on the Board 1
shall not impair the power of the Board to act. 2
‘‘(f) COMPENSATION.— 3
‘‘(1) IN GENERAL.—A member of the Board 4
shall be entitled to receive— 5
‘‘(A) a stipend of— 6
‘‘(i) $45,000 per year; or 7
‘‘(ii)(I) in the case of the chairman of 8
any committee of the Board created by the 9
Board, $46,000 per year; or 10
‘‘(II) in the case of the chairman of 11
the Board, $50,000 per year; and 12
‘‘(B) travel expenses, including per diem in 13
lieu of subsistence, in the same manner as per- 14
sons employed intermittently in Government 15
service under section 5703 of title 5, United 16
States Code. 17
‘‘(2) ADJUSTMENTS IN STIPENDS.—The 18
amount of the stipend under paragraph (1)(A)(i) 19
shall be adjusted by the same percentage, at the 20
same time and manner, and subject to the same lim- 21
itations as are applicable to adjustments under sec- 22
tion 5318 of title 5, United States Code. 23
‘‘(g) DUTIES.— 24
‘‘(1) IN GENERAL.—The Board shall— 25
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33
‘‘(A) establish the broad goals, objectives, 1
and policies of the Corporation that are appro- 2
priate to carry out this Act; 3
‘‘(B) develop long-range plans to guide the 4
Corporation in achieving the goals, objectives, 5
and policies of the Corporation and provide as- 6
sistance to the chief executive officer to achieve 7
those goals, objectives, and policies; 8
‘‘(C) ensure that those goals, objectives, 9
and policies are achieved; 10
‘‘(D) approve an annual budget for the 11
Corporation; 12
‘‘(E) adopt and submit to Congress a con- 13
flict-of-interest policy applicable to members of 14
the Board and employees of the Corporation; 15
‘‘(F) establish a compensation plan for em- 16
ployees of the Corporation in accordance with 17
subsection (i); 18
‘‘(G) approve all compensation (including 19
salary or any other pay, bonuses, benefits, in- 20
centives, and any other form of remuneration) 21
of all managers and technical personnel that re- 22
port directly to the chief executive officer (in- 23
cluding any adjustment to compensation); 24
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34
‘‘(H) ensure that all activities of the Cor- 1
poration are carried out in compliance with ap- 2
plicable law; 3
‘‘(I) create an audit committee, composed 4
solely of Board members independent of the 5
management of the Corporation, which shall— 6
‘‘(i) in consultation with the inspector 7
general of the Corporation, recommend to 8
the Board an external auditor; 9
‘‘(ii) receive and review reports from 10
the external auditor of the Corporation and 11
inspector general of the Corporation; and 12
‘‘(iii) make such recommendations to 13
the Board as the audit committee con- 14
siders necessary; 15
‘‘(J) create such other committees of 16
Board members as the Board considers to be 17
appropriate; 18
‘‘(K) conduct such public hearings as it 19
deems appropriate on issues that could have a 20
substantial effect on— 21
‘‘(i) the electric ratepayers in the serv- 22
ice area; or 23
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35
‘‘(ii) the economic, environmental, so- 1
cial, or physical well-being of the people of 2
the service area; 3
‘‘(L) establish the electricity rate charged 4
by the Corporation; and 5
‘‘(M) engage the services of an external 6
auditor for the Corporation. 7
‘‘(2) MEETINGS.—The Board shall meet at 8
least 4 times each year. 9
‘‘(h) CHIEF EXECUTIVE OFFICER.— 10
‘‘(1) APPOINTMENT.—The Board shall appoint 11
a person to serve as chief executive officer of the 12
Corporation. 13
‘‘(2) QUALIFICATIONS.— 14
‘‘(A) IN GENERAL.—To serve as chief exec- 15
utive officer of the Corporation, a person— 16
‘‘(i) shall have senior executive-level 17
management experience in large, complex 18
organizations; 19
‘‘(ii) shall not be a current member of 20
the Board or have served as a member of 21
the Board within 2 years before being ap- 22
pointed chief executive officer; and 23
‘‘(iii) shall comply with the conflict-of- 24
interest policy adopted by the Board. 25
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36
‘‘(B) EXPERTISE.—In appointing a chief 1
executive officer, the Board shall give particular 2
consideration to appointing an individual with 3
expertise in the electric industry and with 4
strong financial skills. 5
‘‘(3) TENURE.—The chief executive officer shall 6
serve at the pleasure of the Board. 7
‘‘(i) COMPENSATION PLAN.— 8
‘‘(1) IN GENERAL.—The Board shall approve a 9
compensation plan that specifies all compensation 10
(including salary or any other pay, bonuses, benefits, 11
incentives, and any other form of remuneration) for 12
the chief executive officer and employees of the Cor- 13
poration. 14
‘‘(2) ANNUAL SURVEY.—The compensation plan 15
shall be based on an annual survey of the prevailing 16
compensation for similar positions in private indus- 17
try, including engineering and electric utility compa- 18
nies, publicly owned electric utilities, and Federal, 19
State, and local governments. 20
‘‘(3) CONSIDERATIONS.—The compensation 21
plan shall provide that education, experience, level of 22
responsibility, geographic differences, and retention 23
and recruitment needs will be taken into account in 24
determining compensation of employees. 25
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37
‘‘(4) POSITIONS AT OR BELOW LEVEL IV.—The 1
chief executive officer shall determine the salary and 2
benefits of employees whose annual salary is not 3
greater than the annual rate payable for positions at 4
level IV of the Executive Schedule under section 5
5315 of title 5, United States Code. 6
‘‘(5) POSITIONS ABOVE LEVEL IV.—On the rec- 7
ommendation of the chief executive officer, the 8
Board shall approve the salaries of employees whose 9
annual salaries would be in excess of the annual rate 10
payable for positions at level IV of the Executive 11
Schedule under section 5315 of title 5, United 12
States Code.’’. 13
SEC. 1432. CHANGE IN MANNER OF APPOINTMENT OF 14
STAFF. 15
Section 3 of the Tennessee Valley Authority Act of 16
1933 (16 U.S.C. 831b) is amended— 17
(1) by striking the first undesignated paragraph 18
and inserting the following: 19
‘‘(a) APPOINTMENT BY THE CHIEF EXECUTIVE OF- 20
FICER.—The chief executive officer shall appoint, with the 21
advice and consent of the Board, and without regard to 22
the provisions of the civil service laws applicable to officers 23
and employees of the United States, such managers, as- 24
sistant managers, officers, employees, attorneys, and 25
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38
agents as are necessary for the transaction of the business 1
of the Corporation.’’; and 2
(2) by striking ‘‘All contracts’’ and inserting 3
the following: 4
‘‘(b) WAGE RATES.—All contracts’’. 5
SEC. 1433. CONFORMING AMENDMENTS. 6
(a) The Tennessee Valley Authority Act of 1933 (16 7
U.S.C. 831 et seq.) is amended— 8
(1) by striking ‘‘board of directors’’ each place 9
it appears and inserting ‘‘Board of Directors’’; and 10
(2) by striking ‘‘board’’ each place it appears 11
and inserting ‘‘Board’’. 12
(b) Section 9 of the Tennessee Valley Authority Act 13
of 1933 (16 U.S.C. 831h) is amended— 14
(1) by striking ‘‘The Comptroller General of the 15
United States shall audit’’ and inserting the fol- 16
lowing: 17
‘‘(c) AUDITS.—The Comptroller General of the 18
United States shall audit’’; and 19
(2) by striking ‘‘The Corporation shall deter- 20
mine’’ and inserting the following: 21
‘‘(d) ADMINISTRATIVE ACCOUNTS AND BUSINESS 22
DOCUMENTS.—The Corporation shall determine’’. 23
(c) Title 5, United States Code, is amended— 24
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39
(1) in section 5314, by striking ‘‘Chairman, 1
Board of Directors of the Tennessee Valley Author- 2
ity.’’; and 3
(2) in section 5315, by striking ‘‘Members, 4
Board of Directors of the Tennessee Valley Author- 5
ity.’’. 6
SEC. 1434. APPOINTMENTS; EFFECTIVE DATE; TRANSITION. 7
(a) APPOINTMENTS.— 8
(1) IN GENERAL.—As soon as practicable after 9
the date of enactment of this Act, the President 10
shall submit to the Senate nominations of 6 persons 11
to serve as members of the Board of Directors of the 12
Tennessee Valley Authority in addition to the mem- 13
bers serving on the date of enactment of this Act. 14
(2) INITIAL TERMS.—Notwithstanding section 15
2(d) of the Tennessee Valley Authority Act of 1933 16
(as amended by this subtitle), in making the ap- 17
pointments under paragraph (1), the President shall 18
appoint— 19
(A) 2 members for a term to expire on 20
May 18, 2006; 21
(B) 2 members for a term to expire on 22
May 18, 2008; and 23
(C) 2 members for a term to expire on 24
May 18, 2010. 25
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(b) EFFECTIVE DATE.—The amendments made by 1
this section and sections 1431, 1432, and 1433 take effect 2
on the later of the date on which at least 3 persons nomi- 3
nated under subsection (a) take office or May 18, 2005. 4
(c) SELECTION OF CHAIRMAN.—The Board of Direc- 5
tors of the Tennessee Valley Authority shall select 1 of 6
the members to act as chairman of the Board not later 7
than 30 days after the effective date of this section. 8
(d) CONFLICT-OF-INTEREST POLICY.—The Board of 9
Directors of the Tennessee Valley Authority shall adopt 10
and submit to Congress a conflict-of-interest policy, as re- 11
quired by section 2(g)(1)(E) of the Tennessee Valley Au- 12
thority Act of 1933 (as amended by this subtitle), as soon 13
as practicable after the effective date of this section. 14
(e) TRANSITION.—A person who is serving as a mem- 15
ber of the board of directors of the Tennessee Valley Au- 16
thority on the date of enactment of this Act— 17
(1) shall continue to serve until the end of the 18
current term of the member; but 19
(2) after the effective date specified in sub- 20
section (b), shall serve under the terms of the Ten- 21
nessee Valley Authority Act of 1933 (as amended by 22
this subtitle); and 23
(3) may not be reappointed. 24
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Subtitle D—Other Provisions 1
SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY 2
ORDER. 3
Department of Energy Order No. 202-03-2, issued 4
by the Secretary of Energy on August 28, 2003, shall re- 5
main in effect unless rescinded by Federal statute. 6
SEC. 1442. REVIEW OF AGENCY DETERMINATIONS. 7
Section 7 of the Natural Gas Act (15 U.S.C. 717f) 8
is amended by adding at the end the following: 9
‘‘(i)(1) The United States Court of Appeals for the 10
District of Columbia Circuit shall have original and exclu- 11
sive jurisdiction over any civil action— 12
‘‘(A) for review of any order or action of any 13
Federal or State administrative agency or officer to 14
issue, condition, or deny any permit, license, concur- 15
rence, or approval issued under authority of any 16
Federal law, other than the Coastal Zone Manage- 17
ment Act of 1972 (16 U.S.C. 1451 et seq.), required 18
for the construction of a natural gas pipeline for 19
which a certificate of public convenience and neces- 20
sity is issued by the Commission under this section; 21
‘‘(B) alleging unreasonable delay by any Fed- 22
eral or State administrative agency or officer in en- 23
tering an order or taking other action described in 24
subparagraph (A); or 25
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42
‘‘(C) challenging any decision made or action 1
taken under this subsection. 2
‘‘(2)(A) If the Court finds that the order, action, or 3
failure to act is not consistent with the public convenience 4
and necessity (as determined by the Commission under 5
this section), or would prevent the construction and oper- 6
ation of natural gas facilities authorized by the certificate 7
of public convenience and necessity, the permit, license, 8
concurrence, or approval that is the subject of the order, 9
action, or failure to act shall be deemed to have been 10
issued subject to any conditions set forth in the reviewed 11
order or action that the Court finds to be consistent with 12
the public convenience and necessity. 13
‘‘(B) For purposes of paragraph (1)(B), the failure 14
of an agency or officer to issue any such permit, license, 15
concurrence, or approval within the later of 1 year after 16
the date of filing of an application for the permit, license, 17
concurrence, or approval or 60 days after the date of 18
issuance of the certificate of public convenience and neces- 19
sity under this section, shall be considered to be unreason- 20
able delay unless the Court, for good cause shown, deter- 21
mines otherwise. 22
‘‘(C) The Court shall set any action brought under 23
paragraph (1) for expedited consideration.’’. 24
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SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE 1
NONATTAINMENT AREAS. 2
Section 181 of the Clean Air Act (42 U.S.C.7511) 3
is amended by adding the following new subsection at the 4
end thereof: 5
‘‘(d) EXTENDED ATTAINMENT DATE FOR CERTAIN 6
DOWNWIND AREAS.— 7
‘‘(1) DEFINITIONS.—(A) The term ‘upwind 8
area’ means an area that— 9
‘‘(i) significantly contributes to nonattain- 10
ment in another area, hereinafter referred to as 11
a ‘downwind area’; and 12
‘‘(ii) is either— 13
‘‘(I) a nonattainment area with a later 14
attainment date than the downwind area, 15
or 16
‘‘(II) an area in another State that 17
the Administrator has found to be signifi- 18
cantly contributing to nonattainment in 19
the downwind area in violation of section 20
110(a)(2)(D) and for which the Adminis- 21
trator has established requirements 22
through notice and comment rulemaking to 23
eliminate the emissions causing such sig- 24
nificant contribution. 25
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‘‘(B) The term ‘current classification’ means 1
the classification of a downwind area under this sec- 2
tion at the time of the determination under para- 3
graph (2). 4
‘‘(2) EXTENSION.—If the Administrator— 5
‘‘(A) determines that any area is a down- 6
wind area with respect to a particular national 7
ambient air quality standard for ozone; and 8
‘‘(B) approves a plan revision for such 9
area as provided in paragraph (3) prior to a re- 10
classification under subsection (b)(2)(A), 11
the Administrator, in lieu of such reclassification, 12
shall extend the attainment date for such downwind 13
area for such standard in accordance with paragraph 14
(5). 15
‘‘(3) REQUIRED APPROVAL.—In order to extend 16
the attainment date for a downwind area under this 17
subsection, the Administrator must approve a revi- 18
sion of the applicable implementation plan for the 19
downwind area for such standard that— 20
‘‘(A) complies with all requirements of this 21
Act applicable under the current classification 22
of the downwind area, including any require- 23
ments applicable to the area under section 24
172(c) for such standard; and 25
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45
‘‘(B) includes any additional measures 1
needed to demonstrate attainment by the ex- 2
tended attainment date provided under this 3
subsection. 4
‘‘(4) PRIOR RECLASSIFICATION DETERMINA- 5
TION.—If, no more than 18 months prior to the date 6
of enactment of this subsection, the Administrator 7
made a reclassification determination under sub- 8
section (b)(2)(A) for any downwind area, and the 9
Administrator approves the plan revision referred to 10
in paragraph (3) for such area within 12 months 11
after the date of enactment of this subsection, the 12
reclassification shall be withdrawn and the attain- 13
ment date extended in accordance with paragraph 14
(5) upon such approval. The Administrator shall 15
also withdraw a reclassification determination under 16
subsection (b)(2)(A) made after the date of enact- 17
ment of this subsection and extend the attainment 18
date in accordance with paragraph (5) if the Admin- 19
istrator approves the plan revision referred to in 20
paragraph (3) within 12 months of the date the re- 21
classification determination under subsection 22
(b)(2)(A) is issued. In such instances the ‘current 23
classification’ used for evaluating the revision of the 24
applicable implementation plan under paragraph (3) 25
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46
shall be the classification of the downwind area 1
under this section immediately prior to such reclassi- 2
fication. 3
‘‘(5) EXTENDED DATE.—The attainment date 4
extended under this subsection shall provide for at- 5
tainment of such national ambient air quality stand- 6
ard for ozone in the downwind area as expeditiously 7
as practicable but no later than the date on which 8
the last reductions in pollution transport necessary 9
for attainment in the downwind area are required to 10
be achieved by the upwind area or areas.’’. 11
SEC. 1444. ENERGY PRODUCTION INCENTIVES 12
(a) IN GENERAL.—A State may provide to any 13
entity— 14
(1) a credit against any tax or fee owed to the 15
State under a State law, or 16
(2) any other tax incentive, 17
determined by the State to be appropriate, in the amount 18
calculated under and in accordance with a formula deter- 19
mined by the State, for production described in subsection 20
(b) in the State by the entity that receives such credit or 21
such incentive. 22
(b) ELIGIBLE ENTITIES.—Subsection (a) shall apply 23
with respect to the production in the State of— 24
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(1) electricity from coal mined in the State and 1
used in a facility, if such production meets all appli- 2
cable Federal and State laws and if such facility 3
uses scrubbers or other forms of clean coal tech- 4
nology, 5
(2) electricity from a renewable source such as 6
wind, solar, or biomass, or 7
(3) ethanol. 8
(c) EFFECT ON INTERSTATE COMMERCE—Any ac- 9
tion taken by a State in accordance with this section with 10
respect to a tax or fee payable, or incentive applicable, 11
for any period beginning after the date of the enactment 12
of this Act shall— 13
(1) be considered to be a reasonable regulation 14
of commerce; and 15
(2) not be considered to impose an undue bur- 16
den on interstate commerce or to otherwise impair, 17
restrain, or discriminate, against interstate com- 18
merce. 19
SEC. 1445. USE OF GRANULAR MINE TAILINGS. 20
(a) AMENDMENT.—Subtitle F of the Solid Waste 21
Disposal Act (42 U.S.C. 6961 et seq.) is amended by add- 22
ing at the end the following: 23
‘‘SEC. 6006. USE OF GRANULAR MINE TAILINGS. 24
‘‘(a) MINE TAILINGS.— 25
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48
‘‘(1) IN GENERAL.—Not later than 180 days 1
after the date of enactment of this section, the Ad- 2
ministrator, in consultation with the Secretary of 3
Transportation and heads of other Federal agencies, 4
shall establish criteria (including an evaluation of 5
whether to establish a numerical standard for con- 6
centration of lead and other hazardous substances) 7
for the safe and environmentally protective use of 8
granular mine tailings from the Tar Creek, Okla- 9
homa Mining District, known as ‘chat’, for— 10
‘‘(A) cement or concrete projects; and 11
‘‘(B) transportation construction projects 12
(including transportation construction projects 13
involving the use of asphalt) that are carried 14
out, in whole or in part, using Federal funds. 15
‘‘(2) REQUIREMENTS.—In establishing criteria 16
under paragraph (1), the Administrator shall 17
consider— 18
‘‘(A) the current and previous uses of 19
granular mine tailings as an aggregate for as- 20
phalt; and 21
‘‘(B) any environmental and public health 22
risks and benefits derived from the removal, 23
transportation, and use in transportation 24
projects of granular mine tailings. 25
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‘‘(3) PUBLIC PARTICIPATION.—In establishing 1
the criteria under paragraph (1), the Administrator 2
shall solicit and consider comments from the public. 3
‘‘(4) APPLICABILITY OF CRITERIA.—On the es- 4
tablishment of the criteria under paragraph (1), any 5
use of the granular mine tailings described in para- 6
graph (1) in a transportation project that is carried 7
out, in whole or in part, using Federal funds, shall 8
meet the criteria established under paragraph (1). 9
‘‘(b) EFFECT OF SECTIONS.—Nothing in this section 10
or section 6005 affects any requirement of any law (in- 11
cluding a regulation) in effect on the date of enactment 12
of this section.’’. 13
(b) CONFORMING AMENDMENT.—The table of con- 14
tents of the Solid Waste Disposal Act (42 U.S.C. prec. 15
6901) is amended by adding at the end of the items relat- 16
ing to subtitle F the following: 17
‘‘Sec. 6006. Use of granular mine tailings.’’.
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Title XV - Ethanol

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE XV—ETHANOL AND 1
MOTOR FUELS 2
Subtitle A—General Provisions 3
SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE 4
FUEL. 5
(a) IN GENERAL.—Section 211 of the Clean Air Act 6
(42 U.S.C. 7545) is amended— 7
(1) by redesignating subsection (o) as sub- 8
section (q); and 9
(2) by inserting after subsection (n) the fol- 10
lowing: 11
‘‘(o) RENEWABLE FUEL PROGRAM.— 12
‘‘(1) DEFINITIONS.—In this section: 13
‘‘(A) ETHANOL.—(i) The term ‘cellulosic 14
biomass ethanol’ means ethanol derived from 15
any lignocellulosic or hemicellulosic matter that 16
is available on a renewable or recurring basis, 17
including— 18
‘‘(I) dedicated energy crops and trees; 19
‘‘(II) wood and wood residues; 20
‘‘(III) plants; 21
‘‘(IV) grasses; 22
‘‘(V) agricultural residues; and 23
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2
‘‘(VI) fibers. 1
‘‘(ii) The term ‘waste derived ethanol’ 2
means ethanol derived from— 3
‘‘(I) animal wastes, including poultry 4
fats and poultry wastes, and other waste 5
materials; or 6
‘‘(II) municipal solid waste. 7
‘‘(B) RENEWABLE FUEL.— 8
‘‘(i) IN GENERAL.—The term ‘renew- 9
able fuel’ means motor vehicle fuel that— 10
‘‘(I)(aa) is produced from grain, 11
starch, oilseeds, or other biomass; or 12
‘‘(bb) is natural gas produced 13
from a biogas source, including a 14
landfill, sewage waste treatment plant, 15
feedlot, or other place where decaying 16
organic material is found; and 17
‘‘(II) is used to replace or reduce 18
the quantity of fossil fuel present in a 19
fuel mixture used to operate a motor 20
vehicle. 21
‘‘(ii) INCLUSION.—The term ‘renew- 22
able fuel’ includes cellulosic biomass eth- 23
anol, waste derived ethanol, and biodiesel 24
(as defined in section 312(f) of the Energy 25
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3
Policy Act of 1992 (42 U.S.C. 13220(f)) 1
and any blending components derived from 2
renewable fuel (provided that only the re- 3
newable fuel portion of any such blending 4
component shall be considered part of the 5
applicable volume under the renewable fuel 6
program established by this subsection). 7
‘‘(C) SMALL REFINERY.—The term ‘small 8
refinery’ means a refinery for which average ag- 9
gregate daily crude oil throughput for the cal- 10
endar year (as determined by dividing the ag- 11
gregate throughput for the calendar year by the 12
number of days in the calendar year) does not 13
exceed 75,000 barrels. 14
‘‘(2) RENEWABLE FUEL PROGRAM.— 15
‘‘(A) IN GENERAL.—Not later than 1 year 16
after the enactment of this subsection, the Ad- 17
ministrator shall promulgate regulations ensur- 18
ing that motor vehicle fuel sold or dispensed to 19
consumers in the contiguous United States, on 20
an annual average basis, contains the applicable 21
volume of renewable fuel as specified in sub- 22
paragraph (B). Regardless of the date of pro- 23
mulgation, such regulations shall contain com- 24
pliance provisions for refiners, blenders, and 25
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4
importers, as appropriate, to ensure that the re- 1
quirements of this section are met, but shall not 2
restrict where renewable fuel can be used, or 3
impose any per-gallon obligation for the use of 4
renewable fuel. If the Administrator does not 5
promulgate such regulations, the applicable per- 6
centage referred to in paragraph (4), on a vol- 7
ume percentage of gasoline basis, shall be 2.2 8
in 2005. 9
‘‘(B) APPLICABLE VOLUME.— 10
‘‘(i) CALENDAR YEARS 2005 THROUGH 11
2012.—For the purpose of subparagraph 12
(A), the applicable volume for any of cal- 13
endar years 2005 through 2012 shall be 14
determined in accordance with the fol- 15
lowing table: 16
‘‘Applicable volume of renewable fuel
Calendar year: (In billions of gallons)
2005 ..................................................................................... 3.1
2006 ..................................................................................... 3.3
2007 ..................................................................................... 3.5
2008 ..................................................................................... 3.8
2009 ..................................................................................... 4.1
2010 ..................................................................................... 4.4
2011 ..................................................................................... 4.7
2012 ..................................................................................... 5.0
‘‘(ii) CALENDAR YEAR 2013 AND 17
THEREAFTER.—For the purpose of sub- 18
paragraph (A), the applicable volume for 19
calendar year 2013 and each calendar year 20
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5
thereafter shall be equal to the product ob- 1
tained by multiplying— 2
‘‘(I) the number of gallons of 3
gasoline that the Administrator esti- 4
mates will be sold or introduced into 5
commerce in the calendar year; and 6
‘‘(II) the ratio that— 7
‘‘(aa) 5.0 billion gallons of 8
renewable fuels; bears to 9
‘‘(bb) the number of gallons 10
of gasoline sold or introduced 11
into commerce in calendar year 12
2012. 13
‘‘(3) NON-CONTIGUOUS STATE OPT-IN.—Upon 14
the petition of a non-contiguous State, the Adminis- 15
trator may allow the renewable fuel program estab- 16
lished by subtitle A of title XV of the Energy Policy 17
Act of 2003 to apply in such non-contiguous State 18
at the same time or any time after the Adminis- 19
trator promulgates regulations under paragraph (2). 20
The Administrator may promulgate or revise regula- 21
tions under paragraph (2), establish applicable per- 22
centages under paragraph (4), provide for the gen- 23
eration of credits under paragraph (6), and take 24
such other actions as may be necessary to allow for 25
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the application of the renewable fuels program in a 1
non-contiguous State. 2
‘‘(4) APPLICABLE PERCENTAGES.— 3
‘‘(A) PROVISION OF ESTIMATE OF VOL- 4
UMES OF GASOLINE SALES.—Not later than Oc- 5
tober 31 of each of calendar years 2004 6
through 2011, the Administrator of the Energy 7
Information Administration shall provide to the 8
Administrator of the Environmental Protection 9
Agency an estimate of the volumes of gasoline 10
that will be sold or introduced into commerce in 11
the United States during the following calendar 12
year. 13
‘‘(B) DETERMINATION OF APPLICABLE 14
PERCENTAGES.— 15
‘‘(i) IN GENERAL.—Not later than 16
November 30 of each of the calendar years 17
2004 through 2011, based on the estimate 18
provided under subparagraph (A), the Ad- 19
ministrator shall determine and publish in 20
the Federal Register, with respect to the 21
following calendar year, the renewable fuel 22
obligation that ensures that the require- 23
ments of paragraph (2) are met. 24
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7
‘‘(ii) REQUIRED ELEMENTS.—The re- 1
newable fuel obligation determined for a 2
calendar year under clause (i) shall— 3
‘‘(I) be applicable to refiners, 4
blenders, and importers, as appro- 5
priate; 6
‘‘(II) be expressed in terms of a 7
volume percentage of gasoline sold or 8
introduced into commerce; and 9
‘‘(III) subject to subparagraph 10
(C)(i), consist of a single applicable 11
percentage that applies to all cat- 12
egories of persons specified in sub- 13
clause (I). 14
‘‘(C) ADJUSTMENTS.—In determining the 15
applicable percentage for a calendar year, the 16
Administrator shall make adjustments— 17
‘‘(i) to prevent the imposition of re- 18
dundant obligations to any person specified 19
in subparagraph (B)(ii)(I); and 20
‘‘(ii) to account for the use of renew- 21
able fuel during the previous calendar year 22
by small refineries that are exempt under 23
paragraph (11). 24
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‘‘(5) EQUIVALENCY.—For the purpose of para- 1
graph (2), 1 gallon of either cellulosic biomass eth- 2
anol or waste derived ethanol— 3
‘‘(A) shall be considered to be the equiva- 4
lent of 1.5 gallon of renewable fuel; or 5
‘‘(B) if the cellulostic biomass ethanol or 6
waste derived ethanol is derived from agricul- 7
tural residue or is an agricultural byproduct (as 8
that term is used in section 919 of the Energy 9
Policy Act of 2003), shall be considered to be 10
the equivalent of 2.5 gallons of renewable fuel. 11
‘‘(6) CREDIT PROGRAM.— 12
‘‘(A) IN GENERAL.—The regulations pro- 13
mulgated to carry out this subsection shall pro- 14
vide for the generation of an appropriate 15
amount of credits by any person that refines, 16
blends, or imports gasoline that contains a 17
quantity of renewable fuel that is greater than 18
the quantity required under paragraph (2). 19
Such regulations shall provide for the genera- 20
tion of an appropriate amount of credits for 21
biodiesel fuel. If a small refinery notifies the 22
Administrator that it waives the exemption pro- 23
vided paragraph (11), the regulations shall pro- 24
vide for the generation of credits by the small 25
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9
refinery beginning in the year following such 1
notification. 2
‘‘(B) USE OF CREDITS.—A person that 3
generates credits under subparagraph (A) may 4
use the credits, or transfer all or a portion of 5
the credits to another person, for the purpose 6
of complying with paragraph (2). 7
‘‘(C) LIFE OF CREDITS.—A credit gen- 8
erated under this paragraph shall be valid to 9
show compliance— 10
‘‘(i) in the calendar year in which the 11
credit was generated or the next calendar 12
year; or 13
‘‘(ii) in the calendar year in which the 14
credit was generated or next two consecu- 15
tive calendar years if the Administrator 16
promulgates regulations under paragraph 17
(7). 18
‘‘(D) INABILITY TO PURCHASE SUFFICIENT 19
CREDITS.—The regulations promulgated to 20
carry out this subsection shall include provi- 21
sions allowing any person that is unable to gen- 22
erate or purchase sufficient credits to meet the 23
requirements under paragraph (2) to carry for- 24
ward a renewable fuel deficit provided that, in 25
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10
the calendar year following the year in which 1
the renewable fuel deficit is created, such per- 2
son shall achieve compliance with the renewable 3
fuel requirement under paragraph (2), and shall 4
generate or purchase additional renewable fuel 5
credits to offset the renewable fuel deficit of the 6
previous year. 7
‘‘(7) SEASONAL VARIATIONS IN RENEWABLE 8
FUEL USE.— 9
‘‘(A) STUDY.—For each of the calendar 10
years 2005 through 2012, the Administrator of 11
the Energy Information Administration shall 12
conduct a study of renewable fuels blending to 13
determine whether there are excessive seasonal 14
variations in the use of renewable fuels. 15
‘‘(B) REGULATION OF EXCESSIVE SEA- 16
SONAL VARIATIONS.—If, for any calendar year, 17
the Administrator of the Energy Information 18
Administration, based on the study under sub- 19
paragraph (A), makes the determinations speci- 20
fied in subparagraph (C), the Administrator 21
shall promulgate regulations to ensure that 35 22
percent or more of the quantity of renewable 23
fuels necessary to meet the requirement of 24
paragraph (2) is used during each of the peri- 25
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11
ods specified in subparagraph (D) of each sub- 1
sequent calendar year. 2
‘‘(C) DETERMINATIONS.—The determina- 3
tions referred to in subparagraph (B) are 4
that— 5
‘‘(i) less than 35 percent of the quan- 6
tity of renewable fuels necessary to meet 7
the requirement of paragraph (2) has been 8
used during one of the periods specified in 9
subparagraph (D) of the calendar year; 10
‘‘(ii) a pattern of excessive seasonal 11
variation described in clause (i) will con- 12
tinue in subsequent calendar years; and 13
‘‘(iii) promulgating regulations or 14
other requirements to impose a 35 percent 15
or more seasonal use of renewable fuels 16
will not prevent or interfere with the at- 17
tainment of national ambient air quality 18
standards or significantly increase the 19
price of motor fuels to the consumer. 20
‘‘(D) PERIODS.—The two periods referred 21
to in this paragraph are— 22
‘‘(i) April through September; and 23
‘‘(ii) January through March and Oc- 24
tober through December. 25
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12
‘‘(E) EXCLUSIONS.—Renewable fuels 1
blended or consumed in 2005 in a State which 2
has received a waiver under section 209(b) shall 3
not be included in the study in subparagraph 4
(A). 5
‘‘(8) WAIVERS.— 6
‘‘(A) IN GENERAL.—The Administrator, in 7
consultation with the Secretary of Agriculture 8
and the Secretary of Energy, may waive the re- 9
quirement of paragraph (2) in whole or in part 10
on petition by one or more States by reducing 11
the national quantity of renewable fuel required 12
under this subsection— 13
‘‘(i) based on a determination by the 14
Administrator, after public notice and op- 15
portunity for comment, that implementa- 16
tion of the requirement would severely 17
harm the economy or environment of a 18
State, a region, or the United States; or 19
‘‘(ii) based on a determination by the 20
Administrator, after public notice and op- 21
portunity for comment, that there is an in- 22
adequate domestic supply or distribution 23
capacity to meet the requirement. 24
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13
‘‘(B) PETITIONS FOR WAIVERS.—The Ad- 1
ministrator, in consultation with the Secretary 2
of Agriculture and the Secretary of Energy, 3
shall approve or disapprove a State petition for 4
a waiver of the requirement of paragraph (2) 5
within 90 days after the date on which the peti- 6
tion is received by the Administrator. 7
‘‘(C) TERMINATION OF WAIVERS.—A waiv- 8
er granted under subparagraph (A) shall termi- 9
nate after 1 year, but may be renewed by the 10
Administrator after consultation with the Sec- 11
retary of Agriculture and the Secretary of En- 12
ergy. 13
‘‘(9) STUDY AND WAIVER FOR INITIAL YEAR OF 14
PROGRAM.—Not later than 180 days after the enact- 15
ment of this subsection, the Secretary of Energy 16
shall complete for the Administrator a study assess- 17
ing whether the renewable fuels requirement under 18
paragraph (2) will likely result in significant adverse 19
consumer impacts in 2005, on a national, regional, 20
or State basis. Such study shall evaluate renewable 21
fuel supplies and prices, blendstock supplies, and 22
supply and distribution system capabilities. Based 23
on such study, the Secretary shall make specific rec- 24
ommendations to the Administrator regarding waiv- 25
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14
er of the requirements of paragraph (2), in whole or 1
in part, to avoid any such adverse impacts. Within 2
270 days after the enactment of this subsection, the 3
Administrator shall, consistent with the rec- 4
ommendations of the Secretary, waive, in whole or in 5
part, the renewable fuels requirement under para- 6
graph (2) by reducing the national quantity of re- 7
newable fuel required under this subsection in 2005. 8
This paragraph shall not be interpreted as limiting 9
the Administrator’s authority to waive the require- 10
ments of paragraph (2) in whole, or in part, under 11
paragraph (8) or paragraph (10), pertaining to 12
waivers. 13
‘‘(10) ASSESSMENT AND WAIVER.—The Admin- 14
istrator, in consultation with the Secretary of En- 15
ergy and the Secretary of Agriculture, shall evaluate 16
the requirement of paragraph (2) and determine, 17
prior to January 1, 2007, and prior to January 1 18
of any subsequent year in which the applicable vol- 19
ume of renewable fuel is increased under paragraph 20
(2)(B), whether the requirement of paragraph (2), 21
including the applicable volume of renewable fuel 22
contained in paragraph (2)(B) should remain in ef- 23
fect, in whole or in part, during 2007 or any year 24
or years subsequent to 2007. In evaluating the re- 25
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15
quirement of paragraph (2) and in making any de- 1
termination under this section, the Administrator 2
shall consider the best available information and 3
data collected by accepted methods or best available 4
means regarding— 5
‘‘(A) the capacity of renewable fuel pro- 6
ducers to supply an adequate amount of renew- 7
able fuel at competitive prices to fulfill the re- 8
quirement of paragraph (2); 9
‘‘(B) the potential of the requirement of 10
paragraph (2) to significantly raise the price of 11
gasoline, food (excluding the net price impact 12
on the requirement in paragraph (2) on com- 13
modities used in the production of ethanol), or 14
heating oil for consumers in any significant 15
area or region of the country above the price 16
that would otherwise apply to such commodities 17
in the absence of such requirement; 18
‘‘(C) the potential of the requirement of 19
paragraph (2) to interfere with the supply of 20
fuel in any significant gasoline market or region 21
of the country, including interference with the 22
efficient operation of refiners, blenders, import- 23
ers, wholesale suppliers, and retail vendors of 24
gasoline, and other motor fuels; and 25
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16
‘‘(D) the potential of the requirement of 1
paragraph (2) to cause or promote exceedances 2
of Federal, State, or local air quality standards. 3
If the Administrator determines, by clear and con- 4
vincing information, after public notice and the op- 5
portunity for comment, that the requirement of 6
paragraph (2) would have significant and meaning- 7
ful adverse impact on the supply of fuel and related 8
infrastructure or on the economy, public health, or 9
environment of any significant area or region of the 10
country, the Administrator may waive, in whole or 11
in part, the requirement of paragraph (2) in any one 12
year for which the determination is made for that 13
area or region of the country, except that any such 14
waiver shall not have the effect of reducing the ap- 15
plicable volume of renewable fuel specified in para- 16
graph (2)(B) with respect to any year for which the 17
determination is made. In determining economic im- 18
pact under this paragraph, the Administrator shall 19
not consider the reduced revenues available from the 20
Highway Trust Fund (section 9503 of the Internal 21
Revenue Code of 1986) as a result of the use of eth- 22
anol. 23
‘‘(11) SMALL REFINERIES.— 24
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17
‘‘(A) IN GENERAL.—The requirement of 1
paragraph (2) shall not apply to small refineries 2
until the first calendar year beginning more 3
than 5 years after the first year set forth in the 4
table in paragraph (2)(B)(i). Not later than De- 5
cember 31, 2007, the Secretary of Energy shall 6
complete for the Administrator a study to de- 7
termine whether the requirement of paragraph 8
(2) would impose a disproportionate economic 9
hardship on small refineries. For any small re- 10
finery that the Secretary of Energy determines 11
would experience a disproportionate economic 12
hardship, the Administrator shall extend the 13
small refinery exemption for such small refinery 14
for no less than two additional years. 15
‘‘(B) ECONOMIC HARDSHIP.— 16
‘‘(i) EXTENSION OF EXEMPTION.—A 17
small refinery may at any time petition the 18
Administrator for an extension of the ex- 19
emption from the requirement of para- 20
graph (2) for the reason of dispropor- 21
tionate economic hardship. In evaluating a 22
hardship petition, the Administrator, in 23
consultation with the Secretary of Energy, 24
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November 14, 2003 (3:10 PM)
18
shall consider the findings of the study in 1
addition to other economic factors. 2
‘‘(ii) DEADLINE FOR ACTION ON PETI- 3
TIONS.—The Administrator shall act on 4
any petition submitted by a small refinery 5
for a hardship exemption not later than 90 6
days after the receipt of the petition. 7
‘‘(C) CREDIT PROGRAM.—If a small refin- 8
ery notifies the Administrator that it waives the 9
exemption provided by this Act, the regulations 10
shall provide for the generation of credits by 11
the small refinery beginning in the year fol- 12
lowing such notification. 13
‘‘(D) OPT-IN FOR SMALL REFINERS.—A 14
small refinery shall be subject to the require- 15
ments of this section if it notifies the Adminis- 16
trator that it waives the exemption under sub- 17
paragraph (A). 18
‘‘(12) ETHANOL MARKET CONCENTRATION 19
ANALYSIS.— 20
‘‘(A) ANALYSIS.— 21
‘‘(i) IN GENERAL.—Not later than 22
180 days after the date of enactment of 23
this subsection, and annually thereafter, 24
the Federal Trade Commission shall per- 25
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November 14, 2003 (3:10 PM)
19
form a market concentration analysis of 1
the ethanol production industry using the 2
Herfindahl-Hirschman Index to determine 3
whether there is sufficient competition 4
among industry participants to avoid price 5
setting and other anticompetitive behavior. 6
‘‘(ii) SCORING.—For the purpose of 7
scoring under clause (i) using the 8
Herfindahl-Hirschman Index, all mar- 9
keting arrangements among industry par- 10
ticipants shall be considered. 11
‘‘(B) REPORT.—Not later than December 12
1, 2004, and annually thereafter, the Federal 13
Trade Commission shall submit to Congress 14
and the Administrator a report on the results 15
of the market concentration analysis performed 16
under subparagraph (A)(i).’’. 17
(b) PENALTIES AND ENFORCEMENT.—Section 18
211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 19
amended as follows: 20
(1) In paragraph (1)— 21
(A) in the first sentence, by striking ‘‘or 22
(n)’’ each place it appears and inserting ‘‘(n), 23
or (o)’’; and 24
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November 14, 2003 (3:10 PM)
20
(B) in the second sentence, by striking ‘‘or 1
(m)’’ and inserting ‘‘(m), or (o)’’. 2
(2) In the first sentence of paragraph (2), by 3
striking ‘‘and (n)’’ each place it appears and insert- 4
ing ‘‘(n), and (o)’’. 5
(c) SURVEY OF RENEWABLE FUEL MARKET.— 6
(1) SURVEY AND REPORT.—Not later than De- 7
cember 1, 2006, and annually thereafter, the Admin- 8
istrator of the Environmental Protection Agency (in 9
consultation with the Secretary of Energy acting 10
through the Administrator of the Energy Informa- 11
tion Administration) shall— 12
(A) conduct, with respect to each conven- 13
tional gasoline use area and each reformulated 14
gasoline use area in each State, a survey to de- 15
termine the market shares of— 16
(i) conventional gasoline containing 17
ethanol; 18
(ii) reformulated gasoline containing 19
ethanol; 20
(iii) conventional gasoline containing 21
renewable fuel; and 22
(iv) reformulated gasoline containing 23
renewable fuel; and 24
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21
(B) submit to Congress, and make publicly 1
available, a report on the results of the survey 2
under subparagraph (A). 3
(2) RECORDKEEPING AND REPORTING RE- 4
QUIREMENTS.—The Administrator of the Environ- 5
mental Protection Agency (hereinafter in this sub- 6
section referred to as the ‘‘Administrator’’) may re- 7
quire any refiner, blender, or importer to keep such 8
records and make such reports as are necessary to 9
ensure that the survey conducted under paragraph 10
(1) is accurate. The Administrator, to avoid duplica- 11
tive requirements, shall rely, to the extent prac- 12
ticable, on existing reporting and recordkeeping re- 13
quirements and other information available to the 14
Administrator including gasoline distribution pat- 15
terns that include multistate use areas. 16
(3) APPLICABLE LAW.—Activities carried out 17
under this subsection shall be conducted in a man- 18
ner designed to protect confidentiality of individual 19
responses. 20
SEC. 1502. FUELS SAFE HARBOR. 21
(a) IN GENERAL.—Notwithstanding any other provi- 22
sion of Federal or State law, no renewable fuel, as defined 23
by section 211(o)(1) of the Clean Air Act, or methyl ter- 24
tiary butyl ether (hereinafterin this section referred to as 25
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November 14, 2003 (3:10 PM)
22
‘‘MTBE’’), used or intended to be used as a motor vehicle 1
fuel, nor any motor vehicle fuel containing such renewable 2
fuel or MTBE, shall be deemed a defective product by vir- 3
tue of the fact that it is, or contains, such a renewable 4
fuel or MTBE, if it does not violate a control or prohibi- 5
tion imposed by the Administrator of the Environmental 6
Protection Agency (hereinafter in this section referred to 7
as the ‘‘Administrator’’) under section 211 of such Act, 8
and the manufacturer is in compliance with all requests 9
for information under subsection (b) of such section 211 10
of such Act. If the safe harbor provided by this section 11
does not apply, the existence of a claim of defective prod- 12
uct shall be determined under otherwise applicable law. 13
Nothing in this subsection shall be construed to affect the 14
liability of any person for environmental remediation costs, 15
drinking water contamination, negligence for spills or 16
other reasonably foreseeable events, public or private nui- 17
sance, trespass, breach of warranty, breach of contract, 18
or any other liability other than liability based upon a 19
claim of defective product. 20
(b) EFFECTIVE DATE.—This section shall be effec- 21
tive as of September 5, 2003, and shall apply with respect 22
to all claims filed on or after that date. 23
SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE. 24
(a) FINDINGS.—Congress finds that— 25
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23
(1) since 1979, methyl tertiary butyl ether 1
(hereinafter in this section referred to as ‘‘MTBE’’) 2
has been used nationwide at low levels in gasoline to 3
replace lead as an octane booster or anti-knocking 4
agent; 5
(2) Public Law 101–549 (commonly known as 6
the ‘‘Clean Air Act Amendments of 1990’’) (42 7
U.S.C. 7401 et seq.) established a fuel oxygenate 8
standard under which reformulated gasoline must 9
contain at least 2 percent oxygen by weight; 10
(3) at the time of the adoption of the fuel oxy- 11
gen standard, Congress was aware that significant 12
use of MTBE would result from the adoption of that 13
standard, and that the use of MTBE would likely be 14
important to the cost-effective implementation of 15
that program; 16
(4) Congress was aware that gasoline and its 17
component additives can and do leak from storage 18
tanks; 19
(5) the fuel industry responded to the fuel oxy- 20
genate standard established by Public Law 101–549 21
by making substantial investments in— 22
(A) MTBE production capacity; and 23
(B) systems to deliver MTBE-containing 24
gasoline to the marketplace; 25
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24
(6) having previously required oxygenates like 1
MTBE for air quality purposes, Congress has— 2
(A) reconsidered the relative value of 3
MTBE in gasoline; 4
(B) decided to establish a date certain for 5
action by the Environmental Protection Agency 6
to prohibit the use of MTBE in gasoline; and 7
(C) decided to provide for the elimination 8
of the oxygenate requirement for reformulated 9
gasoline and to provide for a renewable fuels 10
content requirement for motor fuel; and 11
(7) it is appropriate for Congress to provide 12
some limited transition assistance— 13
(A) to merchant producers of MTBE who 14
produced MTBE in response to a market cre- 15
ated by the oxygenate requirement contained in 16
the Clean Air Act; and 17
(B) for the purpose of mitigating any fuel 18
supply problems that may result from the elimi- 19
nation of the oxygenate requirement for refor- 20
mulated gasoline and from the decision to es- 21
tablish a date certain for action by the Environ- 22
mental Protection Agency to prohibit the use of 23
MTBE in gasoline. 24
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25
(b) PURPOSES.—The purpose of this section is to 1
provide assistance to merchant producers of MTBE in 2
making the transition from producing MTBE to producing 3
other fuel additives. 4
(c) MTBE MERCHANT PRODUCER CONVERSION AS- 5
SISTANCE.—Section 211(c) of the Clean Air Act (42 6
U.S.C. 7545(c)) is amended by adding at the end the fol- 7
lowing: 8
‘‘(5) MTBE MERCHANT PRODUCER CONVER- 9
SION ASSISTANCE.— 10
‘‘(A) IN GENERAL.— 11
‘‘(i) GRANTS.—The Secretary of En- 12
ergy, in consultation with the Adminis- 13
trator, may make grants to merchant pro- 14
ducers of methyl tertiary butyl ether (here- 15
inafter in this subsection referred to as 16
‘MTBE’) in the United States to assist the 17
producers in the conversion of eligible pro- 18
duction facilities described in subpara- 19
graph (C) to the production of iso-octane, 20
iso-octene, alkylates, or renewable fuels. 21
‘‘(ii) DETERMINATION.—The Admin- 22
istrator, in consultation with the Secretary 23
of Energy, may determine that transition 24
assistance for the production of iso-octane, 25
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26
iso-octene, alkylates, or renewable fuels is 1
inconsistent with the provisions of sub- 2
paragraph (B) and, on that basis, may 3
deny applications for grants authorized by 4
this paragraph. 5
‘‘(B) FURTHER GRANTS.—The Secretary 6
of Energy, in consultation with the Adminis- 7
trator, may also further make grants to mer- 8
chant producers of MTBE in the United States 9
to assist the producers in the conversion of eli- 10
gible production facilities described in subpara- 11
graph (C) to the production of such other fuel 12
additives (unless the Administrator determines 13
that such fuel additives may reasonably be an- 14
ticipated to endanger public health or the envi- 15
ronment) that, consistent with this subsection— 16
‘‘(i) have been registered and have 17
been tested or are being tested in accord- 18
ance with the requirements of this section; 19
and 20
‘‘(ii) will contribute to replacing gaso- 21
line volumes lost as a result of amend- 22
ments made to subsection (k) of this sec- 23
tion by section 1504(a) and 1506 of the 24
Energy Policy Act of 2003. 25
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27
‘‘(C) ELIGIBLE PRODUCTION FACILI- 1
TIES.—A production facility shall be eligible to 2
receive a grant under this paragraph if the pro- 3
duction facility— 4
‘‘(i) is located in the United States; 5
and 6
‘‘(ii) produced MTBE for consump- 7
tion before April 1, 2003 and ceased pro- 8
duction at any time after the date of en- 9
actment of this paragraph. 10
‘‘(D) AUTHORIZATION OF APPROPRIA- 11
TIONS.—There are authorized to be appro- 12
priated to carry out this paragraph 13
$250,000,000 for each of fiscal years 2005 14
through 2012, to remain available until ex- 15
pended.’’. 16
(d) EFFECT ON STATE LAW.—The amendments 17
made to the Clean Air Act by this title have no effect re- 18
garding any available authority of States to limit the use 19
of methyl tertiary butyl ether in motor vehicle fuel. 20
SEC. 1504. USE OF MTBE. 21
(a) IN GENERAL.—Subject to subsections (e) and (f), 22
not later than December 31, 2014, the use of methyl ter- 23
tiary butyl ether (hereinafter in this section referred to 24
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November 14, 2003 (3:10 PM)
28
as ‘‘MTBE’’) in motor vehicle fuel in any State other than 1
a State described in subsection (c) is prohibited. 2
(b) REGULATIONS.—The Administrator of the Envi- 3
ronmental Protection Agency (hereafter referred to in this 4
section as the ‘‘Administrator’’) shall promulgate regula- 5
tions to effect the prohibition in subsection (a). 6
(c) STATES THAT AUTHORIZE USE.—A State de- 7
scribed in this subsection is a State in which the Governor 8
of the State submits a notification to the Administrator 9
authorizing the use of MTBE in motor vehicle fuel sold 10
or used in the State. 11
(d) PUBLICATION OF NOTICE.—The Administrator 12
shall publish in the Federal Register each notice submitted 13
by a State under subsection (c). 14
(e) TRACE QUANTITIES.—In carrying out subsection 15
(a), the Administrator may allow trace quantities of 16
MTBE, not to exceed 0.5 percent by volume, to be present 17
in motor vehicle fuel in cases that the Administrator deter- 18
mines to be appropriate. 19
(f) LIMITATION.—The Administrator, under author- 20
ity of subsection (a), shall not prohibit or control the pro- 21
duction of MTBE for export from the United States or 22
for any other use other than for use in motor vehicle fuel. 23
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SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND 1
PRESIDENTIAL DETERMINATION. 2
(a) NAS REVIEW.—Not later than May 31, 2013, the 3
Secretary shall enter into an arrangement with the Na- 4
tional Academy of Sciences to review the use of methyl 5
tertiary butyl ether (hereafter referred to in this section 6
as ‘‘MTBE’’) in fuel and fuel additives. The review shall 7
only use the best available scientific information and data 8
collected by accepted methods or the best available means. 9
The review shall examine the use of MTBE in fuel and 10
fuel additives, significant beneficial and detrimental ef- 11
fects of this use on environmental quality or public health 12
or welfare including the costs and benefits of such effects, 13
likely effects of controls or prohibitions on MTBE regard- 14
ing fuel availability and price, and other appropriate and 15
reasonable actions that are available to protect the envi- 16
ronment or public health or welfare from any detrimental 17
effects of the use of MTBE in fuel or fuel additives. The 18
review shall be peer-reviewed prior to publication and all 19
supporting data and analytical models shall be available 20
to the public. The review shall be completed no later than 21
May 31, 2014. 22
(b) PRESIDENTIAL DETERMINATION.—No later than 23
June 30, 2014, the President may make a determination 24
that restrictions on the use of MTBE to be implemented 25
pursuant to section 1504 shall not take place and that 26
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30
the legal authority contained in section 1504 to prohibit 1
the use of MTBE in motor vehicle fuel shall become null 2
and void. 3
SEC. 1506. ELIMINATION OF OXYGEN CONTENT REQUIRE- 4
MENT FOR REFORMULATED GASOLINE. 5
(a) ELIMINATION.— 6
(1) IN GENERAL.—Section 211(k) of the Clean 7
Air Act (42 U.S.C. 7545(k)) is amended as follows: 8
(A) In paragraph (2)— 9
(i) in the second sentence of subpara- 10
graph (A), by striking ‘‘(including the oxy- 11
gen content requirement contained in sub- 12
paragraph (B))’’; 13
(ii) by striking subparagraph (B); and 14
(iii) by redesignating subparagraphs 15
(C) and (D) as subparagraphs (B) and 16
(C), respectively. 17
(B) In paragraph (3)(A), by striking 18
clause (v). 19
(C) In paragraph (7)— 20
(i) in subparagraph (A)— 21
(I) by striking clause (i); and 22
(II) by redesignating clauses (ii) 23
and (iii) as clauses (i) and (ii), respec- 24
tively; and 25
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31
(ii) in subparagraph (C)— 1
(I) by striking clause (ii). 2
(II) by redesignating clause (iii) 3
as clause (ii). 4
(2) EFFECTIVE DATE.—The amendments made 5
by paragraph (1) take effect 270 days after the date 6
of enactment of this Act, except that such amend- 7
ments shall take effect upon such date of enactment 8
in any State that has received a waiver under sec- 9
tion 209(b) of the Clean Air Act. 10
(b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS- 11
SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 12
Act (42 U.S.C. 7545(k)(1)) is amended as follows: 13
(1) By striking ‘‘Within 1 year after the enact- 14
ment of the Clean Air Act Amendments of 1990,’’ 15
and inserting the following: 16
‘‘(A) IN GENERAL.—Not later than No- 17
vember 15, 1991,’’. 18
(2) By adding at the end the following: 19
‘‘(B) MAINTENANCE OF TOXIC AIR POL- 20
LUTANT EMISSIONS REDUCTIONS FROM REFOR- 21
MULATED GASOLINE.— 22
‘‘(i) DEFINITIONS.—In this subpara- 23
graph the term ‘PADD’ means a Petro- 24
leum Administration for Defense District. 25
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32
‘‘(ii) REGULATIONS REGARDING EMIS- 1
SIONS OF TOXIC AIR POLLUTANTS.—Not 2
later than 270 days after the date of en- 3
actment of this subparagraph the Adminis- 4
trator shall establish, for each refinery or 5
importer, standards for toxic air pollutants 6
from use of the reformulated gasoline pro- 7
duced or distributed by the refinery or im- 8
porter that maintain the reduction of the 9
average annual aggregate emissions of 10
toxic air pollutants for reformulated gaso- 11
line produced or distributed by the refinery 12
or importer during calendar years 1999 13
and 2000, determined on the basis of data 14
collected by the Administrator with respect 15
to the refinery or importer. 16
‘‘(iii) STANDARDS APPLICABLE TO 17
SPECIFIC REFINERIES OR IMPORTERS.— 18
‘‘(I) APPLICABILITY OF STAND- 19
ARDS.—For any calendar year, the 20
standards applicable to a refinery or 21
importer under clause (ii) shall apply 22
to the quantity of gasoline produced 23
or distributed by the refinery or im- 24
porter in the calendar year only to the 25
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extent that the quantity is less than 1
or equal to the average annual quan- 2
tity of reformulated gasoline produced 3
or distributed by the refinery or im- 4
porter during calendar years 1999 5
and 2000. 6
‘‘(II) APPLICABILITY OF OTHER 7
STANDARDS.—For any calendar year, 8
the quantity of gasoline produced or 9
distributed by a refinery or importer 10
that is in excess of the quantity sub- 11
ject to subclause (I) shall be subject 12
to standards for toxic air pollutants 13
promulgated under subparagraph (A) 14
and paragraph (3)(B). 15
‘‘(iv) CREDIT PROGRAM.—The Admin- 16
istrator shall provide for the granting and 17
use of credits for emissions of toxic air pol- 18
lutants in the same manner as provided in 19
paragraph (7). 20
‘‘(v) REGIONAL PROTECTION OF 21
TOXICS REDUCTION BASELINES.— 22
‘‘(I) IN GENERAL.—Not later 23
than 60 days after the date of enact- 24
ment of this subparagraph, and not 25
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later than April 1 of each calendar 1
year that begins after that date of en- 2
actment, the Administrator shall pub- 3
lish in the Federal Register a report 4
that specifies, with respect to the pre- 5
vious calendar year— 6
‘‘(aa) the quantity of refor- 7
mulated gasoline produced that is 8
in excess of the average annual 9
quantity of reformulated gasoline 10
produced in 1999 and 2000; and 11
‘‘(bb) the reduction of the 12
average annual aggregate emis- 13
sions of toxic air pollutants in 14
each PADD, based on retail sur- 15
vey data or data from other ap- 16
propriate sources. 17
‘‘(II) EFFECT OF FAILURE TO 18
MAINTAIN AGGREGATE TOXICS RE- 19
DUCTIONS.—If, in any calendar year, 20
the reduction of the average annual 21
aggregate emissions of toxic air pol- 22
lutants in a PADD fails to meet or 23
exceed the reduction of the average 24
annual aggregate emissions of toxic 25
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air pollutants in the PADD in cal- 1
endar years 1999 and 2000, the Ad- 2
ministrator, not later than 90 days 3
after the date of publication of the re- 4
port for the calendar year under sub- 5
clause (I), shall— 6
‘‘(aa) identify, to the max- 7
imum extent practicable, the rea- 8
sons for the failure, including the 9
sources, volumes, and character- 10
istics of reformulated gasoline 11
that contributed to the failure; 12
and 13
‘‘(bb) promulgate revisions 14
to the regulations promulgated 15
under clause (ii), to take effect 16
not earlier than 180 days but not 17
later than 270 days after the 18
date of promulgation, to provide 19
that, notwithstanding clause 20
(iii)(II), all reformulated gasoline 21
produced or distributed at each 22
refinery or importer shall meet 23
the standards applicable under 24
clause (ii) not later than April 1 25
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of the year following the report 1
in subclause (II) and for subse- 2
quent years. 3
‘‘(vi) REGULATIONS TO CONTROL 4
HAZARDOUS AIR POLLUTANTS FROM 5
MOTOR VEHICLES AND MOTOR VEHICLE 6
FUELS.—Not later than July 1, 2004, the 7
Administrator shall promulgate final regu- 8
lations to control hazardous air pollutants 9
from motor vehicles and motor vehicle 10
fuels, as provided for in section 80.1045 of 11
title 40, Code of Federal Regulations (as 12
in effect on the date of enactment of this 13
subparagraph).’’. 14
(c) CONSOLIDATION IN REFORMULATED GASOLINE 15
REGULATIONS.—Not later than 180 days after the date 16
of enactment of this Act, the Administrator of the Envi- 17
ronmental Protection Agency shall revise the reformulated 18
gasoline regulations under subpart D of part 80 of title 19
40, Code of Federal Regulations, to consolidate the regula- 20
tions applicable to VOC-Control Regions 1 and 2 under 21
section 80.41 of that title by eliminating the less stringent 22
requirements applicable to gasoline designated for VOC- 23
Control Region 2 and instead applying the more stringent 24
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37
requirements applicable to gasoline designated for VOC- 1
Control Region 1. 2
(d) SAVINGS CLAUSE.—Nothing in this section is in- 3
tended to affect or prejudice either any legal claims or ac- 4
tions with respect to regulations promulgated by the Ad- 5
ministrator of the Environmental Protection Agency 6
(hereinafter in this subsection referred to as the ‘‘Admin- 7
istrator’’) prior to the date of enactment of this Act re- 8
garding emissions of toxic air pollutants from motor vehi- 9
cles or the adjustment of standards applicable to a specific 10
refinery or importer made under such prior regulations 11
and the Administrator may apply such adjustments to the 12
standards applicable to such refinery or importer under 13
clause (iii)(I) of section 211(k)(1)(B) of the Clean Air Act, 14
except that— 15
(1) the Administrator shall revise such adjust- 16
ments to be based only on calendar years 1999– 17
2000; and 18
(2) for adjustments based on toxic air pollutant 19
emissions from reformulated gasoline significantly 20
below the national annual average emissions of toxic 21
air pollutants from all reformulated gasoline, the 22
Administrator may revise such adjustments to take 23
account of the scope of Federal or State prohibitions 24
on the use of methyl tertiary butyl ether imposed 25
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after the date of the enactment of this paragraph, 1
except that any such adjustment shall require such 2
refiner or importer, to the greatest extent prac- 3
ticable, to maintain the reduction achieved during 4
calendar years 1999–2000 in the average annual ag- 5
gregate emissions of toxic air pollutants from refor- 6
mulated gasoline produced or distributed by the re- 7
finery or importer; Provided that, any such adjust- 8
ment shall not be made at a level below the average 9
percentage of reductions of emissions of toxic air 10
pollutants for reformulated gasoline supplied to 11
PADD I during calendar years 1999–2000. 12
SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 13
Section 211 of the Clean Air Act (42 U.S.C. 7545) 14
is amended by inserting after subsection (o) the following: 15
‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES 16
AND EMISSIONS MODEL.— 17
‘‘(1) ANTI-BACKSLIDING ANALYSIS.— 18
‘‘(A) DRAFT ANALYSIS.—Not later than 4 19
years after the date of enactment of this sub- 20
section, the Administrator shall publish for pub- 21
lic comment a draft analysis of the changes in 22
emissions of air pollutants and air quality due 23
to the use of motor vehicle fuel and fuel addi- 24
tives resulting from implementation of the 25
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amendments made by subtitle A of title XV of 1
the Energy Policy Act of 2003. 2
‘‘(B) FINAL ANALYSIS.—After providing a 3
reasonable opportunity for comment but not 4
later than 5 years after the date of enactment 5
of this paragraph, the Administrator shall pub- 6
lish the analysis in final form. 7
‘‘(2) EMISSIONS MODEL.—For the purposes of 8
this subsection, as soon as the necessary data are 9
available, the Administrator shall develop and final- 10
ize an emissions model that reasonably reflects the 11
effects of gasoline characteristics or components on 12
emissions from vehicles in the motor vehicle fleet 13
during calendar year 2005.’’. 14
SEC. 1508. DATA COLLECTION. 15
Section 205 of the Department of Energy Organiza- 16
tion Act (42 U.S.C. 7135) is amended by adding at the 17
end the following: 18
‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to 19
improve the ability to evaluate the effectiveness of the Na- 20
tion’s renewable fuels mandate, the Administrator shall 21
conduct and publish the results of a survey of renewable 22
fuels demand in the motor vehicle fuels market in the 23
United States monthly, and in a manner designed to pro- 24
tect the confidentiality of individual responses. In con- 25
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40
ducting the survey, the Administrator shall collect infor- 1
mation both on a national and regional basis, including 2
each of the following: 3
‘‘(A) The quantity of renewable fuels produced. 4
‘‘(B) The quantity of renewable fuels blended. 5
‘‘(C) The quantity of renewable fuels imported. 6
‘‘(D) The quantity of renewable fuels de- 7
manded. 8
‘‘(E) Market price data. 9
‘‘(F) Such other analyses or evaluations as the 10
Administrator finds is necessary to achieve the pur- 11
poses of this section. 12
‘‘(2) The Administrator shall also collect or estimate 13
information both on a national and regional basis, pursu- 14
ant to subparagraphs (A) through (F) of paragraph (1), 15
for the 5 years prior to implementation of this subsection. 16
‘‘(3) This subsection does not affect the authority of 17
the Administrator to collect data under section 52 of the 18
Federal Energy Administration Act of 1974 (15 U.S.C. 19
790a).’’. 20
SEC. 1509. REDUCING THE PROLIFERATION OF STATE FUEL 21
CONTROLS. 22
(a) EPA APPROVAL OF STATE PLANS WITH FUEL 23
CONTROLS.—Section 211(c)(4)(C) of the Clean Air Act 24
(42 U.S.C. 7545(c)(4)(C)) is amended by adding at the 25
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41
end the following: ‘‘The Administrator shall not approve 1
a control or prohibition respecting the use of a fuel or fuel 2
additive under this subparagraph unless the Adminis- 3
trator, after consultation with the Secretary of Energy, 4
publishes in the Federal Register a finding that, in the 5
Administrator’s judgment, such control or prohibition will 6
not cause fuel supply or distribution interruptions or have 7
a significant adverse impact on fuel producibility in the 8
affected area or contiguous areas.’’. 9
(b) STUDY.—The Administrator of the Environ- 10
mental Protection Agency (hereinafter in this subsection 11
referred to as the ‘‘Administrator’’), in cooperation with 12
the Secretary of Energy, shall undertake a study of the 13
projected effects on air quality, the proliferation of fuel 14
blends, fuel availability, and fuel costs of providing a pref- 15
erence for each of the following: 16
(A) Reformulated gasoline referred to in sub- 17
section (k) of section 211 of the Clean Air Act. 18
(B) A low RVP gasoline blend that has been 19
certified by the Administrator as having a Reid 20
Vapor Pressure of 7.0 pounds per square inch (psi). 21
(C) A low RVP gasoline blend that has been 22
certified by the Administrator as having a Reid 23
Vapor Pressure of 7.8 pounds per square inch (psi). 24
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42
In carrying out such study, the Administrator shall obtain 1
comments from affected parties. The Administrator shall 2
submit the results of such study to the Congress not later 3
than 18 months after the date of enactment of this Act, 4
together with any recommended legislative changes. 5
SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION 6
STUDY. 7
(a) STUDY.— 8
(1) IN GENERAL.—The Administrator of the 9
Environmental Protection Agency (hereinafter in 10
this section referred to as the ‘‘Administrator’’) and 11
the Secretary of Energy shall jointly conduct a study 12
of Federal, State, and local requirements concerning 13
motor vehicle fuels, including— 14
(A) requirements relating to reformulated 15
gasoline, volatility (measured in Reid vapor 16
pressure), oxygenated fuel, and diesel fuel; and 17
(B) other requirements that vary from 18
State to State, region to region, or locality to 19
locality. 20
(2) REQUIRED ELEMENTS.—The study shall 21
assess— 22
(A) the effect of the variety of require- 23
ments described in paragraph (1) on the supply, 24
quality, and price of motor vehicle fuels avail- 25
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43
able to consumers in various States and local- 1
ities; 2
(B) the effect of the requirements de- 3
scribed in paragraph (1) on achievement of— 4
(i) national, regional, and local air 5
quality standards and goals; and 6
(ii) related environmental and public 7
health protection standards and goals; 8
(C) the effect of Federal, State, and local 9
motor vehicle fuel regulations, including mul- 10
tiple motor vehicle fuel requirements, on— 11
(i) domestic refineries; 12
(ii) the fuel distribution system; and 13
(iii) industry investment in new capac- 14
ity; 15
(D) the effect of the requirements de- 16
scribed in paragraph (1) on emissions from ve- 17
hicles, refineries, and fuel handling facilities; 18
(E) the feasibility of developing national or 19
regional motor vehicle fuel slates for the 48 20
contiguous States that, while improving air 21
quality at the national, regional and local levels 22
consistent with the attainment of national am- 23
bient air quality standards, could— 24
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44
(i) enhance flexibility in the fuel dis- 1
tribution infrastructure and improve fuel 2
fungibility; 3
(ii) reduce price volatility and costs to 4
consumers and producers; 5
(iii) provide increased liquidity to the 6
gasoline market; and 7
(iv) enhance fuel quality, consistency, 8
and supply; 9
(F) the feasibility of providing incentives 10
to promote cleaner burning motor vehicle fuel; 11
and 12
(G) the extent to which improvements in 13
air quality and any increases or decreases in 14
the price of motor fuel can be projected to re- 15
sult from the Environmental Protection Agen- 16
cy’s Tier II requirements for conventional gaso- 17
line and vehicle emission systems, the reformu- 18
lated gasoline program, the renewable content 19
requirements established by this subtitle, State 20
programs regarding gasoline volatility, and any 21
other requirements imposed by States or local- 22
ities affecting the composition of motor fuel. 23
(b) REPORT.— 24
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(1) IN GENERAL.—Not later than December 31, 1
2007, the Administrator and the Secretary of En- 2
ergy shall submit to Congress a report on the results 3
of the study conducted under subsection (a). 4
(2) RECOMMENDATIONS.— 5
(A) IN GENERAL.—The report under this 6
subsection shall contain recommendations for 7
legislative and administrative actions that may 8
be taken— 9
(i) to improve air quality; 10
(ii) to reduce costs to consumers and 11
producers; and 12
(iii) to increase supply liquidity. 13
(B) REQUIRED CONSIDERATIONS.—The 14
recommendations under subparagraph (A) shall 15
take into account the need to provide advance 16
notice of required modifications to refinery and 17
fuel distribution systems in order to ensure an 18
adequate supply of motor vehicle fuel in all 19
States. 20
(3) CONSULTATION.—In developing the report 21
under this subsection, the Administrator and the 22
Secretary of Energy shall consult with— 23
(A) the Governors of the States; 24
(B) automobile manufacturers; 25
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46
(C) motor vehicle fuel producers and dis- 1
tributors; and 2
(D) the public. 3
SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 4
SOLID WASTE AND CELLULOSIC BIOMASS 5
LOAN GUARANTEE PROGRAM. 6
(a) DEFINITION OF MUNICIPAL SOLID WASTE.—In 7
this section, the term ‘‘municipal solid waste’’ has the 8
meaning given the term ‘‘solid waste’’ in section 1004 of 9
the Solid Waste Disposal Act (42 U.S.C. 6903). 10
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 11
of Energy (hereinafter in this section referred to as the 12
‘‘Secretary’’) shall establish a program to provide guaran- 13
tees of loans by private institutions for the construction 14
of facilities for the processing and conversion of municipal 15
solid waste and cellulosic biomass into fuel ethanol and 16
other commercial byproducts. 17
(c) REQUIREMENTS.—The Secretary may provide a 18
loan guarantee under subsection (b) to an applicant if— 19
(1) without a loan guarantee, credit is not 20
available to the applicant under reasonable terms or 21
conditions sufficient to finance the construction of a 22
facility described in subsection (b); 23
(2) the prospective earning power of the appli- 24
cant and the character and value of the security 25
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pledged provide a reasonable assurance of repayment 1
of the loan to be guaranteed in accordance with the 2
terms of the loan; and 3
(3) the loan bears interest at a rate determined 4
by the Secretary to be reasonable, taking into ac- 5
count the current average yield on outstanding obli- 6
gations of the United States with remaining periods 7
of maturity comparable to the maturity of the loan. 8
(d) CRITERIA.—In selecting recipients of loan guar- 9
antees from among applicants, the Secretary shall give 10
preference to proposals that— 11
(1) meet all applicable Federal and State per- 12
mitting requirements; 13
(2) are most likely to be successful; and 14
(3) are located in local markets that have the 15
greatest need for the facility because of— 16
(A) the limited availability of land for 17
waste disposal; 18
(B) the availability of sufficient quantities 19
of cellulosic biomass; or 20
(C) a high level of demand for fuel ethanol 21
or other commercial byproducts of the facility. 22
(e) MATURITY.—A loan guaranteed under subsection 23
(b) shall have a maturity of not more than 20 years. 24
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(f) TERMS AND CONDITIONS.—The loan agreement 1
for a loan guaranteed under subsection (b) shall provide 2
that no provision of the loan agreement may be amended 3
or waived without the consent of the Secretary. 4
(g) ASSURANCE OF REPAYMENT.—The Secretary 5
shall require that an applicant for a loan guarantee under 6
subsection (b) provide an assurance of repayment in the 7
form of a performance bond, insurance, collateral, or other 8
means acceptable to the Secretary in an amount equal to 9
not less than 20 percent of the amount of the loan. 10
(h) GUARANTEE FEE.—The recipient of a loan guar- 11
antee under subsection (b) shall pay the Secretary an 12
amount determined by the Secretary to be sufficient to 13
cover the administrative costs of the Secretary relating to 14
the loan guarantee. 15
(i) FULL FAITH AND CREDIT.—The full faith and 16
credit of the United States is pledged to the payment of 17
all guarantees made under this section. Any such guar- 18
antee made by the Secretary shall be conclusive evidence 19
of the eligibility of the loan for the guarantee with respect 20
to principal and interest. The validity of the guarantee 21
shall be incontestable in the hands of a holder of the guar- 22
anteed loan. 23
(j) REPORTS.—Until each guaranteed loan under this 24
section has been repaid in full, the Secretary shall annu- 25
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ally submit to Congress a report on the activities of the 1
Secretary under this section. 2
(k) AUTHORIZATION OF APPROPRIATIONS.—There 3
are authorized to be appropriated such sums as are nec- 4
essary to carry out this section. 5
(l) TERMINATION OF AUTHORITY.—The authority of 6
the Secretary to issue a loan guarantee under subsection 7
(b) terminates on the date that is 10 years after the date 8
of enactment of this Act. 9
SEC. 1512. RESOURCE CENTER. 10
(a) DEFINITION.—In this section, the term ‘‘RFG 11
State’’ means a State in which is located one or more cov- 12
ered areas (as defined in section 211(k)(10)(D) of the 13
Clean Air Act (42 U.S.C. 7545(k)(10)(D)). 14
(b) AUTHORIZATION OF APPROPRIATIONS FOR RE- 15
SOURCE CENTER.—There are authorized to be appro- 16
priated, for a resource center to further develop bioconver- 17
sion technology using low-cost biomass for the production 18
of ethanol at the Center for Biomass-Based Energy at the 19
University of Mississippi and the University of Oklahoma, 20
$4,000,000 for each of fiscal years 2004 through 2006. 21
(c) RENEWABLE FUEL PRODUCTION RESEARCH AND 22
DEVELOPMENT GRANTS.— 23
(1) IN GENERAL.—The Administrator of the 24
Environmental Protection Agency shall provide 25
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grants for the research into, and development and 1
implementation of, renewable fuel production tech- 2
nologies in RFG States with low rates of ethanol 3
production, including low rates of production of cel- 4
lulosic biomass ethanol. 5
(2) ELIGIBILITY.— 6
(A) IN GENERAL.—The entities eligible to 7
receive a grant under this subsection are aca- 8
demic institutions in RFG States, and consortia 9
made up of combinations of academic institu- 10
tions, industry, State government agencies, or 11
local government agencies in RFG States, that 12
have proven experience and capabilities with 13
relevant technologies. 14
(B) APPLICATION.—To be eligible to re- 15
ceive a grant under this subsection, an eligible 16
entity shall submit to the Administrator an ap- 17
plication in such manner and form, and accom- 18
panied by such information, as the Adminis- 19
trator may specify. 20
(3) AUTHORIZATION OF APPROPRIATIONS.— 21
There are authorized to be appropriated to carry out 22
this subsection $25,000,000 for each of fiscal years 23
2004 through 2008. 24
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SEC. 1513. CELLULOSIC BIOMASS AND WASTE-DERIVED 1
ETHANOL CONVERSION ASSISTANCE. 2
Section 211 of the Clean Air Act (42 U.S.C. 7545) 3
is amended by adding at the end the following: 4
‘‘(r) CELLULOSIC BIOMASS AND WASTE-DERIVED 5
ETHANOL CONVERSION ASSISTANCE.— 6
‘‘(1) IN GENERAL.—The Secretary of Energy 7
may provide grants to merchant producers of cel- 8
lulosic biomass ethanol and waste-derived ethanol in 9
the United States to assist the producers in building 10
eligible production facilities described in paragraph 11
(2) for the production of ethanol. 12
‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A 13
production facility shall be eligible to receive a grant 14
under this subsection if the production facility— 15
‘‘(A) is located in the United States; and 16
‘‘(B) uses cellulosic biomass or waste-de- 17
rived feedstocks derived from agricultural resi- 18
dues, municipal solid waste, or agricultural by- 19
products as that term is used in section 919 of 20
the Energy Policy Act of 2003. 21
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 22
There are authorized to be appropriated the fol- 23
lowing amounts to carry out this subsection: 24
‘‘(A) $100,000,000 for fiscal year 2004. 25
‘‘(B) $250,000,000 for fiscal year 2005. 26
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‘‘(C) $400,000,000 for fiscal year 2006.’’. 1
SEC. 1514. BLENDING OF COMPLIANT REFORMULATED GAS- 2
OLINES. 3
Section 211 of the Clean Air Act (42 U.S.C. 7545) 4
is amended by adding at the end the following: 5
‘‘(s) BLENDING OF COMPLIANT REFORMULATED 6
GASOLINES.— 7
‘‘(1) IN GENERAL.—Notwithstanding sub- 8
sections (h) and (k) and subject to the limitations in 9
paragraph (2) of this subsection, it shall not be a 10
violation of this subtitle for a gasoline retailer, dur- 11
ing any month of the year, to blend at a retail loca- 12
tion batches of ethanol-blended and non-ethanol- 13
blended reformulated gasoline, provided that— 14
‘‘(A) each batch of gasoline to be blended 15
has been individually certified as in compliance 16
with subsections (h) and (k) prior to being 17
blended; 18
‘‘(B) the retailer notifies the Administrator 19
prior to such blending, and identifies the exact 20
location of the retail station and the specific 21
tank in which such blending will take place; 22
‘‘(C) the retailer retains and, as requested 23
by the Administrator or the Administrator’s 24
designee, makes available for inspection such 25
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53
certifications accounting for all gasoline at the 1
retail outlet; and 2
‘‘(D) the retailer does not, between June 1 3
and September 15 of each year, blend a batch 4
of VOC-controlled, or ‘summer’, gasoline with a 5
batch of non-VOC-controlled, or ‘winter’, gaso- 6
line (as these terms are defined under sub- 7
sections (h) and (k)). 8
‘‘(2) LIMITATIONS.— 9
‘‘(A) FREQUENCY LIMITATION.—A retailer 10
shall only be permitted to blend batches of com- 11
pliant reformulated gasoline under this sub- 12
section a maximum of two blending periods be- 13
tween May 1 and September 15 of each cal- 14
endar year. 15
‘‘(B) DURATION OF BLENDING PERIOD.— 16
Each blending period authorized under sub- 17
paragraph (A) shall extend for a period of no 18
more than 10 consecutive calendar days. 19
‘‘(3) SURVEYS.—A sample of gasoline taken 20
from a retail location that has blended gasoline with- 21
in the past 30 days and is in compliance with sub- 22
paragraphs (A), (B), (C), and (D) of paragraph (1) 23
shall not be used in a VOC survey mandated by 40 24
C.F.R. Part 80. 25
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‘‘(4) STATE IMPLEMENTATION PLANS.—A State 1
shall be held harmless and shall not be required to 2
revise its State implementation plan under section 3
110 to account for the emissions from blended gaso- 4
line authorized under paragraph (1). 5
‘‘(5) PRESERVATION OF STATE LAW.—Nothing 6
in this subsection shall— 7
‘‘(A) preempt existing State laws or regu- 8
lations regulating the blending of compliant 9
gasolines; or 10
‘‘(B) prohibit a State from adopting such 11
restrictions in the future. 12
‘‘(6) REGULATIONS.—The Administrator shall 13
promulgate, after notice and comment, regulations 14
implementing this subsection within one year after 15
the date of enactment of this subsection. 16
‘‘(7) EFFECTIVE DATE.—This subsection shall 17
become effective 15 months after the date of its en- 18
actment and shall apply to blended batches of refor- 19
mulated gasoline on or after that date, regardless of 20
whether the implementing regulations required by 21
paragraph (6) have been promulgated by the Admin- 22
istrator by that date. 23
‘‘(8) LIABILITY.—No person other than the 24
person responsible for blending under this subsection 25
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shall be subject to an enforcement action or pen- 1
alties under subsection (d) solely arising from the 2
blending of compliant reformulated gasolines by the 3
retailers. 4
‘‘(9) FORMULATION OF GASOLINE.—This sub- 5
section does not grant authority to the Adminis- 6
trator or any State (or any subdivision thereof) to 7
require reformulation of gasoline at the refinery to 8
adjust for potential or actual emissions increases due 9
to the blending authorized by this subsection.’’. 10
Subtitle B—Underground Storage 11
Tank Compliance 12
SEC. 1521. SHORT TITLE. 13
This subtitle may be cited as the ‘‘Underground Stor- 14
age Tank Compliance Act of 2003’’. 15
SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS. 16
(a) IN GENERAL.—Section 9004 of the Solid Waste 17
Disposal Act (42 U.S.C. 6991c) is amended by adding at 18
the end the following: 19
‘‘(f) TRUST FUND DISTRIBUTION.— 20
‘‘(1) IN GENERAL.— 21
‘‘(A) AMOUNT AND PERMITTED USES OF 22
DISTRIBUTION.—The Administrator shall dis- 23
tribute to States not less than 80 percent of the 24
funds from the Trust Fund that are made 25
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available to the Administrator under section 1
9014(2)(A) for each fiscal year for use in pay- 2
ing the reasonable costs, incurred under a coop- 3
erative agreement with any State for— 4
‘‘(i) actions taken by the State under 5
section 9003(h)(7)(A); 6
‘‘(ii) necessary administrative ex- 7
penses, as determined by the Adminis- 8
trator, that are directly related to State 9
fund or State assurance programs under 10
subsection (c)(1); 11
‘‘(iii) any State fund or State assur- 12
ance program carried out under subsection 13
(c)(1) for a release from an underground 14
storage tank regulated under this subtitle 15
to the extent that, as determined by the 16
State in accordance with guidelines devel- 17
oped jointly by the Administrator and the 18
States, the financial resources of the owner 19
and operator of the underground storage 20
tank (including resources provided by a 21
program in accordance with subsection 22
(c)(1)) are not adequate to pay the cost of 23
a corrective action without significantly im- 24
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pairing the ability of the owner or operator 1
to continue in business; or 2
‘‘(iv) enforcement, by a State or a 3
local government, of State or local regula- 4
tions pertaining to underground storage 5
tanks regulated under this subtitle. 6
‘‘(B) USE OF FUNDS FOR ENFORCE- 7
MENT.—In addition to the uses of funds au- 8
thorized under subparagraph (A), the Adminis- 9
trator may use funds from the Trust Fund that 10
are not distributed to States under subpara- 11
graph (A) for enforcement of any regulation 12
promulgated by the Administrator under this 13
subtitle. 14
‘‘(C) PROHIBITED USES.—Funds provided 15
to a State by the Administrator under subpara- 16
graph (A) shall not be used by the State to pro- 17
vide financial assistance to an owner or oper- 18
ator to meet any requirement relating to under- 19
ground storage tanks under subparts B, C, D, 20
H, and G of part 280 of title 40, Code of Fed- 21
eral Regulations (as in effect on the date of en- 22
actment of this subsection). 23
‘‘(2) ALLOCATION.— 24
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‘‘(A) PROCESS.—Subject to subparagraphs 1
(B) and (C), in the case of a State with which 2
the Administrator has entered into a coopera- 3
tive agreement under section 9003(h)(7)(A), 4
the Administrator shall distribute funds from 5
the Trust Fund to the State using an allocation 6
process developed by the Administrator. 7
‘‘(B) DIVERSION OF STATE FUNDS.—The 8
Administrator shall not distribute funds under 9
subparagraph (A)(iii) of subsection (f)(1) to 10
any State that has diverted funds from a State 11
fund or State assurance program for purposes 12
other than those related to the regulation of un- 13
derground storage tanks covered by this sub- 14
title, with the exception of those transfers that 15
had been completed earlier than the date of en- 16
actment of this subsection. 17
‘‘(C) REVISIONS TO PROCESS.—The Ad- 18
ministrator may revise the allocation process re- 19
ferred to in subparagraph (A) after— 20
‘‘(i) consulting with State agencies re- 21
sponsible for overseeing corrective action 22
for releases from underground storage 23
tanks; and 24
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‘‘(ii) taking into consideration, at a 1
minimum, each of the following: 2
‘‘(I) The number of confirmed re- 3
leases from federally regulated leaking 4
underground storage tanks in the 5
States. 6
‘‘(II) The number of federally 7
regulated underground storage tanks 8
in the States. 9
‘‘(III) The performance of the 10
States in implementing and enforcing 11
the program. 12
‘‘(IV) The financial needs of the 13
States. 14
‘‘(V) The ability of the States to 15
use the funds referred to in subpara- 16
graph (A) in any year. 17
‘‘(3) DISTRIBUTIONS TO STATE AGENCIES.— 18
Distributions from the Trust Fund under this sub- 19
section shall be made directly to a State agency 20
that— 21
‘‘(A) enters into a cooperative agreement 22
referred to in paragraph (2)(A); or 23
‘‘(B) is enforcing a State program ap- 24
proved under this section. 25
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‘‘(4) COST RECOVERY PROHIBITION.—Funds 1
from the Trust Fund provided by States to owners 2
or operators under paragraph (1)(A)(iii) shall not be 3
subject to cost recovery by the Administrator under 4
section 9003(h)(6).’’. 5
(b) WITHDRAWAL OF APPROVAL OF STATE 6
FUNDS.—Section 9004(c) of the Solid Waste Disposal Act 7
(42 U.S.C. 6991c(c)) is amended by inserting the fol- 8
lowing new paragraph at the end thereof: 9
‘‘(6) WITHDRAWAL OF APPROVAL.—After an 10
opportunity for good faith, collaborative efforts to 11
correct financial deficiencies with a State fund, the 12
Administrator may withdraw approval of any State 13
fund or State assurance program to be used as a fi- 14
nancial responsibility mechanism without with- 15
drawing approval of a State underground storage 16
tank program under section 9004(a).’’. 17
SEC. 1523. INSPECTION OF UNDERGROUND STORAGE 18
TANKS. 19
(a) INSPECTION REQUIREMENTS.—Section 9005 of 20
the Solid Waste Disposal Act (42 U.S.C. 6991d) is amend- 21
ed by inserting the following new subsection at the end 22
thereof: 23
‘‘(c) INSPECTION REQUIREMENTS.— 24
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‘‘(1) UNINSPECTED TANKS.—In the case of un- 1
derground storage tanks regulated under this sub- 2
title that have not undergone an inspection since De- 3
cember 22, 1998, not later than 2 years after the 4
date of enactment of this subsection, the Adminis- 5
trator or a State that receives funding under this 6
subtitle, as appropriate, shall conduct on-site inspec- 7
tions of all such tanks to determine compliance with 8
this subtitle and the regulations under this subtitle 9
(40 C.F.R. 280) or a requirement or standard of a 10
State program developed under section 9004. 11
‘‘(2) PERIODIC INSPECTIONS.—After completion 12
of all inspections required under paragraph (1), the 13
Administrator or a State that receives funding under 14
this subtitle, as appropriate, shall conduct on-site in- 15
spections of each underground storage tank regu- 16
lated under this subtitle at least once every 3 years 17
to determine compliance with this subtitle and the 18
regulations under this subtitle (40 C.F.R. 280) or a 19
requirement or standard of a State program devel- 20
oped under section 9004. The Administrator may ex- 21
tend for up to one additional year the first 3-year 22
inspection interval under this paragraph if the State 23
demonstrates that it has insufficient resources to 24
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complete all such inspections within the first 3-year 1
period. 2
‘‘(3) INSPECTION AUTHORITY.—Nothing in this 3
section shall be construed to diminish the Adminis- 4
trator’s or a State’s authorities under section 5
9005(a).’’. 6
(b) STUDY OF ALTERNATIVE INSPECTION PRO- 7
GRAMS.—The Administrator of the Environmental Protec- 8
tion Agency, in coordination with a State, shall gather in- 9
formation on compliance assurance programs that could 10
serve as an alternative to the inspection programs under 11
section 9005(c) of the Solid Waste Disposal Act (42 12
U.S.C. 6991d(c)) and shall, within 4 years after the date 13
of enactment of this Act, submit a report to the Congress 14
containing the results of such study. 15
SEC. 1524. OPERATOR TRAINING. 16
(a) IN GENERAL.—Section 9010 of the Solid Waste 17
Disposal Act (42 U.S.C. 6991i) is amended to read as fol- 18
lows: 19
‘‘SEC. 9010. OPERATOR TRAINING. 20
‘‘(a) GUIDELINES.— 21
‘‘(1) IN GENERAL.—Not later than 2 years 22
after the date of enactment of the Underground 23
Storage Tank Compliance Act of 2003, in consulta- 24
tion and cooperation with States and after public no- 25
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tice and opportunity for comment, the Administrator 1
shall publish guidelines that specify training require- 2
ments for persons having primary daily on-site man- 3
agement responsibility for the operation and mainte- 4
nance of underground storage tanks. 5
‘‘(2) CONSIDERATIONS.—The guidelines de- 6
scribed in paragraph (1) shall take into account— 7
‘‘(A) State training programs in existence 8
as of the date of publication of the guidelines; 9
‘‘(B) training programs that are being em- 10
ployed by tank owners and tank operators as of 11
the date of enactment of the Underground Stor- 12
age Tank Compliance Act of 2003; 13
‘‘(C) the high turnover rate of tank opera- 14
tors and other personnel; 15
‘‘(D) the frequency of improvement in un- 16
derground storage tank equipment technology; 17
‘‘(E) the nature of the businesses in which 18
the tank operators are engaged; and 19
‘‘(F) such other factors as the Adminis- 20
trator determines to be necessary to carry out 21
this section. 22
‘‘(b) STATE PROGRAMS.— 23
‘‘(1) IN GENERAL.—Not later than 2 years 24
after the date on which the Administrator publishes 25
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the guidelines under subsection (a)(1), each State 1
that receives funding under this subtitle shall de- 2
velop State-specific training requirements that are 3
consistent with the guidelines developed under sub- 4
section (a)(1). 5
‘‘(2) REQUIREMENTS.—State requirements de- 6
scribed in paragraph (1) shall— 7
‘‘(A) be consistent with subsection (a); 8
‘‘(B) be developed in cooperation with tank 9
owners and tank operators; 10
‘‘(C) take into consideration training pro- 11
grams implemented by tank owners and tank 12
operators as of the date of enactment of this 13
section; and 14
‘‘(D) be appropriately communicated to 15
tank owners and operators. 16
‘‘(3) FINANCIAL INCENTIVE.—The Adminis- 17
trator may award to a State that develops and im- 18
plements requirements described in paragraph (1), 19
in addition to any funds that the State is entitled to 20
receive under this subtitle, not more than $200,000, 21
to be used to carry out the requirements. 22
‘‘(c) OPERATORS.—All persons having primary daily 23
on-site management responsibility for the operation and 24
maintenance of any underground storage tank shall— 25
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‘‘(1) meet the training requirements developed 1
under subsection (b); and 2
‘‘(2) repeat the applicable requirements devel- 3
oped under subsection (b), if the tank for which they 4
have primary daily on-site management responsibil- 5
ities is determined to be out of compliance with— 6
‘‘(A) a requirement or standard promul- 7
gated by the Administrator under section 9003; 8
or 9
‘‘(B) a requirement or standard of a State 10
program approved under section 9004.’’. 11
(b) STATE PROGRAM REQUIREMENT.—Section 12
9004(a) of the Solid Waste Disposal Act (42 U.S.C. 13
6991c(a)) is amended by striking ‘‘and’’ at the end of 14
paragraph (7), by striking the period at the end of para- 15
graph (8) and inserting ‘‘; and’’, and by adding the fol- 16
lowing new paragraph at the end thereof: 17
‘‘(9) State-specific training requirements as re- 18
quired by section 9010.’’. 19
(c) ENFORCEMENT.—Section 9006(d)(2) of such Act 20
(42 U.S.C. 6991e) is amended as follows: 21
(1) By striking ‘‘or’’ at the end of subpara- 22
graph (B). 23
(2) By adding the following new subparagraph 24
after subparagraph (C): 25
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‘‘(D) the training requirements established by 1
States pursuant to section 9010 (relating to oper- 2
ator training); or’’. 3
(d) TABLE OF CONTENTS.—The item relating to sec- 4
tion 9010 in table of contents for the Solid Waste Disposal 5
Act is amended to read as follows: 6
‘‘Sec. 9010. Operator training.’’.
SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDI- 7
TIVES. 8
Section 9003(h) of the Solid Waste Disposal Act (42 9
U.S.C. 6991b(h)) is amended as follows: 10
(1) In paragraph (7)(A)— 11
(A) by striking ‘‘paragraphs (1) and (2) of 12
this subsection’’ and inserting ‘‘paragraphs (1), 13
(2), and (12)’’ ; and 14
(B) by striking ‘‘and including the authori- 15
ties of paragraphs (4), (6), and (8) of this sub- 16
section’’ and inserting ‘‘and the authority under 17
sections 9011 and 9012 and paragraphs (4), 18
(6), and (8),’’. 19
(2) By adding at the end the following: 20
‘‘(12) REMEDIATION OF OXYGENATED FUEL 21
CONTAMINATION.— 22
‘‘(A) IN GENERAL.—The Administrator 23
and the States may use funds made available 24
under section 9014(2)(B) to carry out correc- 25
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tive actions with respect to a release of a fuel 1
containing an oxygenated fuel additive that pre- 2
sents a threat to human health or welfare or 3
the environment. 4
‘‘(B) APPLICABLE AUTHORITY.—The Ad- 5
ministrator or a State shall carry out subpara- 6
graph (A) in accordance with paragraph (2), 7
and in the case of a State, in accordance with 8
a cooperative agreement entered into by the Ad- 9
ministrator and the State under paragraph 10
(7).’’. 11
SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND EN- 12
FORCEMENT. 13
(a) RELEASE PREVENTION AND COMPLIANCE.—Sub- 14
title I of the Solid Waste Disposal Act (42 U.S.C. 6991 15
et seq.) is amended by adding at the end the following: 16
‘‘SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND 17
COMPLIANCE. 18
‘‘Funds made available under section 9014(2)(D) 19
from the Trust Fund may be used to conduct inspections, 20
issue orders, or bring actions under this subtitle— 21
‘‘(1) by a State, in accordance with a grant or 22
cooperative agreement with the Administrator, of 23
State regulations pertaining to underground storage 24
tanks regulated under this subtitle; and 25
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‘‘(2) by the Administrator, for tanks regulated 1
under this subtitle (including under a State program 2
approved under section 9004).’’. 3
(b) GOVERNMENT-OWNED TANKS.—Section 9003 of 4
the Solid Waste Disposal Act (42 U.S.C. 6991b) is amend- 5
ed by adding at the end the following: 6
‘‘(i) GOVERNMENT-OWNED TANKS.— 7
‘‘(1) STATE COMPLIANCE REPORT.—(A) Not 8
later than 2 years after the date of enactment of 9
this subsection, each State that receives funding 10
under this subtitle shall submit to the Administrator 11
a State compliance report that— 12
‘‘(i) lists the location and owner of each 13
underground storage tank described in subpara- 14
graph (B) in the State that, as of the date of 15
submission of the report, is not in compliance 16
with section 9003; and 17
‘‘(ii) specifies the date of the last inspec- 18
tion and describes the actions that have been 19
and will be taken to ensure compliance of the 20
underground storage tank listed under clause 21
(i) with this subtitle. 22
‘‘(B) An underground storage tank described in 23
this subparagraph is an underground storage tank 24
that is— 25
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‘‘(i) regulated under this subtitle; and 1
‘‘(ii) owned or operated by the Fed- 2
eral, State, or local government. 3
‘‘(C) The Administrator shall make each report, 4
received under subparagraph (A), available to the 5
public through an appropriate media. 6
‘‘(2) FINANCIAL INCENTIVE.—The Adminis- 7
trator may award to a State that develops a report 8
described in paragraph (1), in addition to any other 9
funds that the State is entitled to receive under this 10
subtitle, not more than $50,000, to be used to carry 11
out the report. 12
‘‘(3) NOT A SAFE HARBOR.—This subsection 13
does not relieve any person from any obligation or 14
requirement under this subtitle.’’. 15
(c) PUBLIC RECORD.—Section 9002 of the Solid 16
Waste Disposal Act (42 U.S.C. 6991a) is amended by add- 17
ing at the end the following: 18
‘‘(d) PUBLIC RECORD.— 19
‘‘(1) IN GENERAL.—The Administrator shall re- 20
quire each State that receives Federal funds to carry 21
out this subtitle to maintain, update at least annu- 22
ally, and make available to the public, in such man- 23
ner and form as the Administrator shall prescribe 24
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(after consultation with States), a record of under- 1
ground storage tanks regulated under this subtitle. 2
‘‘(2) CONSIDERATIONS.—To the maximum ex- 3
tent practicable, the public record of a State, respec- 4
tively, shall include, for each year— 5
‘‘(A) the number, sources, and causes of 6
underground storage tank releases in the State; 7
‘‘(B) the record of compliance by under- 8
ground storage tanks in the State with— 9
‘‘(i) this subtitle; or 10
‘‘(ii) an applicable State program ap- 11
proved under section 9004; and 12
‘‘(C) data on the number of underground 13
storage tank equipment failures in the State.’’. 14
(d) INCENTIVE FOR PERFORMANCE.—Section 9006 15
of the Solid Waste Disposal Act (42 U.S.C. 6991e) is 16
amended by adding at the end the following: 17
‘‘(e) INCENTIVE FOR PERFORMANCE.—Both of the 18
following may be taken into account in determining the 19
terms of a civil penalty under subsection (d): 20
‘‘(1) The compliance history of an owner or op- 21
erator in accordance with this subtitle or a program 22
approved under section 9004. 23
‘‘(2) Any other factor the Administrator con- 24
siders appropriate.’’. 25
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(e) TABLE OF CONTENTS.—The table of contents for 1
such subtitle I is amended by adding the following new 2
item at the end thereof: 3
‘‘Sec. 9011. Use of funds for release prevention and compliance.’’.
SEC. 1527. DELIVERY PROHIBITION. 4
(a) IN GENERAL.—Subtitle I of the Solid Waste Dis- 5
posal Act (42 U.S.C. 6991 et seq.) is amended by adding 6
at the end the following: 7
‘‘SEC. 9012. DELIVERY PROHIBITION. 8
‘‘(a) REQUIREMENTS.— 9
‘‘(1) PROHIBITION OF DELIVERY OR DE- 10
POSIT.—Beginning 2 years after the date of enact- 11
ment of this section, it shall be unlawful to deliver 12
to, deposit into, or accept a regulated substance into 13
an underground storage tank at a facility which has 14
been identified by the Administrator or a State im- 15
plementing agency to be ineligible for fuel delivery or 16
deposit. 17
‘‘(2) GUIDANCE.—Within 1 year after the date 18
of enactment of this section, the Administrator and 19
States that receive funding under this subtitle shall, 20
in consultation with the underground storage tank 21
owner and product delivery industries, for territory 22
for which they are the primary implementing agen- 23
cies, publish guidelines detailing the specific proc- 24
esses and procedures they will use to implement the 25
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provisions of this section. The processes and proce- 1
dures include, at a minimum— 2
‘‘(A) the criteria for determining which un- 3
derground storage tank facilities are ineligible 4
for delivery or deposit; 5
‘‘(B) the mechanisms for identifying which 6
facilities are ineligible for delivery or deposit to 7
the underground storage tank owning and fuel 8
delivery industries; 9
‘‘(C) the process for reclassifying ineligible 10
facilities as eligible for delivery or deposit; and 11
‘‘(D) a delineation of, or a process for de- 12
termining, the specified geographic areas sub- 13
ject to paragraph (4). 14
‘‘(3) DELIVERY PROHIBITION NOTICE.— 15
‘‘(A) ROSTER.—The Administrator and 16
each State implementing agency that receives 17
funding under this subtitle shall establish with- 18
in 24 months after the date of enactment of 19
this section a Delivery Prohibition Roster list- 20
ing underground storage tanks under the Ad- 21
ministrator’s or the State’s jurisdiction that are 22
determined to be ineligible for delivery or de- 23
posit pursuant to paragraph (2). 24
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‘‘(B) NOTIFICATION.—The Administrator 1
and each State, as appropriate, shall make 2
readily known, to underground storage tank 3
owners and operators and to product delivery 4
industries, the underground storage tanks listed 5
on a Delivery Prohibition Roster by: 6
‘‘(i) posting such Rosters, including 7
the physical location and street address of 8
each listed underground storage tank, on 9
official web sites and, if the Administrator 10
or the State so chooses, other electronic 11
means; 12
‘‘(ii) updating these Rosters periodi- 13
cally; and 14
‘‘(iii) installing a tamper-proof tag, 15
seal, or other device blocking the fill pipes 16
of such underground storage tanks to pre- 17
vent the delivery of product into such un- 18
derground storage tanks. 19
‘‘(C) ROSTER UPDATES.—The Adminis- 20
trator and the State shall update the Delivery 21
Prohibition Rosters as appropriate, but not less 22
than once a month on the first day of the 23
month. 24
‘‘(D) TAMPERING WITH DEVICE.— 25
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‘‘(i) PROHIBITION.—It shall be unlaw- 1
ful for any person, other than an author- 2
ized representative of the Administrator or 3
a State, as appropriate, to remove, tamper 4
with, destroy, or damage a device installed 5
by the Administrator or a State, as appro- 6
priate, under subparagraph (B)(iii) of this 7
subsection. 8
‘‘(ii) CIVIL PENALTIES.—Any person 9
violating clause (i) of this subparagraph 10
shall be subject to a civil penalty not to ex- 11
ceed $10,000 for each violation. 12
‘‘(4) LIMITATION.— 13
‘‘(A) RURAL AND REMOTE AREAS.—Sub- 14
ject to subparagraph (B), the Administrator or 15
a State shall not include an underground stor- 16
age tank on a Delivery Prohibition Roster 17
under paragraph (3) if an urgent threat to pub- 18
lic health, as determined by the Administrator, 19
does not exist and if such a delivery prohibition 20
would jeopardize the availability of, or access 21
to, fuel in any rural and remote areas. 22
‘‘(B) APPLICABILITY OF LIMITATION.— 23
The limitation under subparagraph (A) shall 24
apply only during the 180-day period following 25
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the date of a determination by the Adminis- 1
trator or the appropriate State that exercising 2
the authority of paragraph (3) is limited by 3
subparagraph (A). 4
‘‘(b) EFFECT ON STATE AUTHORITY.—Nothing in 5
this section shall affect the authority of a State to prohibit 6
the delivery of a regulated substance to an underground 7
storage tank. 8
‘‘(c) DEFENSE TO VIOLATION.—A person shall not be 9
in violation of subsection (a)(1) if the underground storage 10
tank into which a regulated substance is delivered is not 11
listed on the Administrator’s or the appropriate State’s 12
Prohibited Delivery Roster 7 calendar days prior to the 13
delivery being made.’’. 14
(b) ENFORCEMENT.—Section 9006(d)(2) of such Act 15
(42 U.S.C. 6991e(d)(2)) is amended as follows: 16
(1) By adding the following new subparagraph 17
after subparagraph (D): 18
‘‘(E) the delivery prohibition requirement estab- 19
lished by section 9012,’’. 20
(2) By adding the following new sentence at the 21
end thereof: ‘‘Any person making or accepting a de- 22
livery or deposit of a regulated substance to an un- 23
derground storage tank at an ineligible facility in 24
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76
violation of section 9012 shall also be subject to the 1
same civil penalty for each day of such violation.’’. 2
(c) TABLE OF CONTENTS.—The table of contents for 3
such subtitle I is amended by adding the following new 4
item at the end thereof: 5
‘‘Sec. 9012. Delivery prohibition.’’.
SEC. 1528. FEDERAL FACILITIES. 6
Section 9007 of the Solid Waste Disposal Act (42 7
U.S.C. 6991f) is amended to read as follows: 8
‘‘SEC. 9007. FEDERAL FACILITIES. 9
‘‘(a) IN GENERAL.—Each department, agency, and 10
instrumentality of the executive, legislative, and judicial 11
branches of the Federal Government (1) having jurisdic- 12
tion over any underground storage tank or underground 13
storage tank system, or (2) engaged in any activity result- 14
ing, or which may result, in the installation, operation, 15
management, or closure of any underground storage tank, 16
release response activities related thereto, or in the deliv- 17
ery, acceptance, or deposit of any regulated substance to 18
an underground storage tank or underground storage tank 19
system shall be subject to, and comply with, all Federal, 20
State, interstate, and local requirements, both substantive 21
and procedural (including any requirement for permits or 22
reporting or any provisions for injunctive relief and such 23
sanctions as may be imposed by a court to enforce such 24
relief), respecting underground storage tanks in the same 25
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77
manner, and to the same extent, as any person is subject 1
to such requirements, including the payment of reasonable 2
service charges. The Federal, State, interstate, and local 3
substantive and procedural requirements referred to in 4
this subsection include, but are not limited to, all adminis- 5
trative orders and all civil and administrative penalties 6
and fines, regardless of whether such penalties or fines 7
are punitive or coercive in nature or are imposed for iso- 8
lated, intermittent, or continuing violations. The United 9
States hereby expressly waives any immunity otherwise 10
applicable to the United States with respect to any such 11
substantive or procedural requirement (including, but not 12
limited to, any injunctive relief, administrative order or 13
civil or administrative penalty or fine referred to in the 14
preceding sentence, or reasonable service charge). The rea- 15
sonable service charges referred to in this subsection in- 16
clude, but are not limited to, fees or charges assessed in 17
connection with the processing and issuance of permits, 18
renewal of permits, amendments to permits, review of 19
plans, studies, and other documents, and inspection and 20
monitoring of facilities, as well as any other nondiscrim- 21
inatory charges that are assessed in connection with a 22
Federal, State, interstate, or local underground storage 23
tank regulatory program. Neither the United States, nor 24
any agent, employee, or officer thereof, shall be immune 25
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78
or exempt from any process or sanction of any State or 1
Federal Court with respect to the enforcement of any such 2
injunctive relief. No agent, employee, or officer of the 3
United States shall be personally liable for any civil pen- 4
alty under any Federal, State, interstate, or local law con- 5
cerning underground storage tanks with respect to any act 6
or omission within the scope of the official duties of the 7
agent, employee, or officer. An agent, employee, or officer 8
of the United States shall be subject to any criminal sanc- 9
tion (including, but not limited to, any fine or imprison- 10
ment) under any Federal or State law concerning under- 11
ground storage tanks, but no department, agency, or in- 12
strumentality of the executive, legislative, or judicial 13
branch of the Federal Government shall be subject to any 14
such sanction. The President may exempt any under- 15
ground storage tank of any department, agency, or instru- 16
mentality in the executive branch from compliance with 17
such a requirement if he determines it to be in the para- 18
mount interest of the United States to do so. No such 19
exemption shall be granted due to lack of appropriation 20
unless the President shall have specifically requested such 21
appropriation as a part of the budgetary process and the 22
Congress shall have failed to make available such re- 23
quested appropriation. Any exemption shall be for a period 24
not in excess of one year, but additional exemptions may 25
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79
be granted for periods not to exceed one year upon the 1
President’s making a new determination. The President 2
shall report each January to the Congress all exemptions 3
from the requirements of this section granted during the 4
preceding calendar year, together with his reason for 5
granting each such exemption. 6
‘‘(b) REVIEW OF AND REPORT ON FEDERAL UNDER- 7
GROUND STORAGE TANKS.— 8
‘‘(1) REVIEW.—Not later than 12 months after 9
the date of enactment of the Underground Storage 10
Tank Compliance Act of 2003, each Federal agency 11
that owns or operates 1 or more underground stor- 12
age tanks, or that manages land on which 1 or more 13
underground storage tanks are located, shall submit 14
to the Administrator, the Committee on Energy and 15
Commerce of the United States House of Represent- 16
atives, and the Committee on the Environment and 17
Public Works of the United States Senate a compli- 18
ance strategy report that— 19
‘‘(A) lists the location and owner of each 20
underground storage tank described in this 21
paragraph; 22
‘‘(B) lists all tanks that are not in compli- 23
ance with this subtitle that are owned or oper- 24
ated by the Federal agency; 25
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80
‘‘(C) specifies the date of the last inspec- 1
tion by a State or Federal inspector of each un- 2
derground storage tank owned or operated by 3
the agency; 4
‘‘(D) lists each violation of this subtitle re- 5
specting any underground storage tank owned 6
or operated by the agency; 7
‘‘(E) describes the operator training that 8
has been provided to the operator and other 9
persons having primary daily on-site manage- 10
ment responsibility for the operation and main- 11
tenance of underground storage tanks owned or 12
operated by the agency; and 13
‘‘(F) describes the actions that have been 14
and will be taken to ensure compliance for each 15
underground storage tank identified under sub- 16
paragraph (B). 17
‘‘(2) NOT A SAFE HARBOR.—This subsection 18
does not relieve any person from any obligation or 19
requirement under this subtitle.’’. 20
SEC. 1529. TANKS ON TRIBAL LANDS. 21
(a) IN GENERAL.—Subtitle I of the Solid Waste Dis- 22
posal Act (42 U.S.C. 6991 et seq.) is amended by adding 23
the following at the end thereof: 24
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‘‘SEC. 9013. TANKS ON TRIBAL LANDS. 1
‘‘(a) STRATEGY.—The Administrator, in coordination 2
with Indian tribes, shall, not later than 1 year after the 3
date of enactment of this section, develop and implement 4
a strategy— 5
‘‘(1) giving priority to releases that present the 6
greatest threat to human health or the environment, 7
to take necessary corrective action in response to re- 8
leases from leaking underground storage tanks lo- 9
cated wholly within the boundaries of— 10
‘‘(A) an Indian reservation; or 11
‘‘(B) any other area under the jurisdiction 12
of an Indian tribe; and 13
‘‘(2) to implement and enforce requirements 14
concerning underground storage tanks located wholly 15
within the boundaries of— 16
‘‘(A) an Indian reservation; or 17
‘‘(B) any other area under the jurisdiction 18
of an Indian tribe. 19
‘‘(b) REPORT.—Not later than 2 years after the date 20
of enactment of this section, the Administrator shall sub- 21
mit to Congress a report that summarizes the status of 22
implementation and enforcement of this subtitle in areas 23
located wholly within— 24
‘‘(1) the boundaries of Indian reservations; and 25
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82
‘‘(2) any other areas under the jurisdiction of 1
an Indian tribe. 2
The Administrator shall make the report under this sub- 3
section available to the public. 4
‘‘(c) NOT A SAFE HARBOR.—This section does not 5
relieve any person from any obligation or requirement 6
under this subtitle. 7
‘‘(d) STATE AUTHORITY.—Nothing in this section 8
applies to any underground storage tank that is located 9
in an area under the jurisdiction of a State, or that is 10
subject to regulation by a State, as of the date of enact- 11
ment of this section.’’. 12
(b) TABLE OF CONTENTS.—The table of contents for 13
such subtitle I is amended by adding the following new 14
item at the end thereof: 15
‘‘Sec. 9013. Tanks on Tribal lands.’’.
SEC. 1530. FUTURE RELEASE CONTAINMENT TECHNOLOGY. 16
Not later than 2 years after the date of enactment 17
of this Act, the Administrator of the Environmental Pro- 18
tection Agency, after consultation with States, shall make 19
available to the public and to the Committee on Energy 20
and Commerce of the House of Representatives and the 21
Committee on Environment and Public Works of the Sen- 22
ate information on the effectiveness of alternative possible 23
methods and means for containing releases from under- 24
ground storage tanks systems. 25
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83
SEC. 1531. AUTHORIZATION OF APPROPRIATIONS. 1
(a) IN GENERAL.—Subtitle I of the Solid Waste Dis- 2
posal Act (42 U.S.C. 6991 et seq.) is amended by adding 3
at the end the following: 4
‘‘SEC. 9014. AUTHORIZATION OF APPROPRIATIONS. 5
‘‘There are authorized to be appropriated to the Ad- 6
ministrator the following amounts: 7
‘‘(1) To carry out subtitle I (except sections 8
9003(h), 9005(c), 9011 and 9012) $50,000,000 for 9
each of fiscal years 2004 through 2008. 10
‘‘(2) From the Trust Fund, notwithstanding 11
section 9508(c)(1) of the Internal Revenue Code of 12
1986: 13
‘‘(A) to carry out section 9003(h) (except 14
section 9003(h)(12)) $200,000,000 for each of 15
fiscal years 2004 through 2008; 16
‘‘(B) to carry out section 9003(h)(12), 17
$200,000,000 for each of fiscal years 2004 18
through 2008; 19
‘‘(C) to carry out sections 9004(f) and 20
9005(c) $100,000,000 for each of fiscal years 21
2004 through 2008; and 22
‘‘(D) to carry out sections 9011 and 9012 23
$55,000,000 for each of fiscal years 2004 24
through 2008.’’. 25
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84
(b) TABLE OF CONTENTS.—The table of contents for 1
such subtitle I is amended by adding the following new 2
item at the end thereof: 3
‘‘Sec. 9014. Authorization of appropriations.’’.
SEC. 1532. CONFORMING AMENDMENTS. 4
(a) IN GENERAL.—Section 9001 of the Solid Waste 5
Disposal Act (42 U.S.C. 6991) is amended as follows: 6
(1) By striking ‘‘For the purposes of this sub- 7
title—’’ and inserting ‘‘In this subtitle:’’. 8
(2) By redesignating paragraphs (1), (2), (3), 9
(4), (5), (6), (7), and (8) as paragraphs (10), (7), 10
(4), (3), (8), (5), (2), and (6), respectively. 11
(3) By inserting before paragraph (2) (as redes- 12
ignated by paragraph (2) of this subsection) the fol- 13
lowing: 14
‘‘(1) INDIAN TRIBE.— 15
‘‘(A) IN GENERAL.— The term ‘Indian 16
tribe’ means any Indian tribe, band, nation, or 17
other organized group or community that is rec- 18
ognized as being eligible for special programs 19
and services provided by the United States to 20
Indians because of their status as Indians. 21
‘‘(B) INCLUSIONS.—The term ‘Indian 22
tribe’ includes an Alaska Native village, as de- 23
fined in or established under the Alaska Native 24
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85
Claims Settlement Act (43 U.S.C. 1601 et 1
seq.); and’’. 2
(4) By inserting after paragraph (8) (as redes- 3
ignated by paragraph (2) of this subsection) the fol- 4
lowing: 5
‘‘(9) TRUST FUND.— The term ‘Trust Fund’ 6
means the Leaking Underground Storage Tank 7
Trust Fund established by section 9508 of the Inter- 8
nal Revenue Code of 1986.’’. 9
(b) CONFORMING AMENDMENTS.—The Solid Waste 10
Disposal Act (42 U.S.C. 6901 and following) is amended 11
as follows: 12
(1) Section 9003(f) (42 U.S.C. 6991b(f)) is 13
amended— 14
(A) in paragraph (1), by striking 15
‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and 16
(B) in paragraphs (2) and (3), by striking 17
‘‘9001(2)(A)’’ each place it appears and insert- 18
ing ‘‘9001(7)(A)’’. 19
(2) Section 9003(h) (42 U.S.C. 6991b(h)) is 20
amended in paragraphs (1), (2)(C), (7)(A), and (11) 21
by striking ‘‘Leaking Underground Storage Tank 22
Trust Fund’’ each place it appears and inserting 23
‘‘Trust Fund’’. 24
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86
(3) Section 9009 (42 U.S.C. 6991h) is 1
amended— 2
(A) in subsection (a), by striking 3
‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and 4
(B) in subsection (d), by striking ‘‘section 5
9001(1) (A) and (B)’’ and inserting ‘‘subpara- 6
graphs (A) and (B) of section 9001(10)’’. 7
SEC. 1533. TECHNICAL AMENDMENTS. 8
The Solid Waste Disposal Act is amended as follows: 9
(1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) 10
is amended by striking ‘‘sustances’’ and inserting 11
‘‘substances’’. 12
(2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) 13
is amended by striking ‘‘subsection (c) and (d) of 14
this section’’ and inserting ‘‘subsections (c) and 15
(d)’’. 16
(3) Section 9004(a) (42 U.S.C. 6991c(a)) is 17
amended by striking ‘‘in 9001(2) (A) or (B) or 18
both’’ and inserting ‘‘in subparagraph (A) or (B) of 19
section 9001(7)’’. 20
(4) Section 9005 (42 U.S.C. 6991d) is 21
amended— 22
(A) in subsection (a), by striking ‘‘study 23
taking’’ and inserting ‘‘study, taking’’; 24
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87
(B) in subsection (b)(1), by striking 1
‘‘relevent’’ and inserting ‘‘relevant’’; and 2
(C) in subsection (b)(4), by striking 3
‘‘Evironmental’’ and inserting ‘‘Environ- 4
mental’’. 5
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November 14, 2003 (3:10 PM)

Title XVI - Studies

[CHAIRMEN’S PROPOSED CONFERENCE REPORT]
NOVEMBER 17, 2003
TITLE XVI—STUDIES 1
SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND 2
NATURAL GAS STORAGE. 3
(a) DEFINITION.—For purposes of this section ‘‘pe- 4
troleum’’ means crude oil, motor gasoline, jet fuel, dis- 5
tillates, and propane. 6
(b) STUDY.—The Secretary of Energy shall conduct 7
a study on petroleum and natural gas storage capacity and 8
operational inventory levels, nationwide and by major geo- 9
graphical regions. 10
(c) CONTENTS.—The study shall address— 11
(1) historical normal ranges for petroleum and 12
natural gas inventory levels; 13
(2) historical and projected storage capacity 14
trends; 15
(3) estimated operation inventory levels below 16
which outages, delivery slowdown, rationing, inter- 17
ruptions in service, or other indicators of shortage 18
begin to appear; 19
(4) explanations for inventory levels dropping 20
below normal ranges; and 21
(5) the ability of industry to meet United 22
States demand for petroleum and natural gas with- 23
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2
out shortages or price spikes, when inventory levels 1
are below normal ranges. 2
(d) REPORT TO CONGRESS.—Not later than 1 year 3
after the date of enactment of this Act, the Secretary of 4
Energy shall submit a report to Congress on the results 5
of the study, including findings and any recommendations 6
for preventing future supply shortages. 7
SEC. 1602. NATURAL GAS SUPPLY SHORTAGE REPORT. 8
(a) REPORT.—Not later than 6 months after the date 9
of enactment of this Act, the Secretary of Energy shall 10
submit to Congress a report on natural gas supplies and 11
demand. In preparing the report, the Secretary shall con- 12
sult with experts in natural gas supply and demand as 13
well as representatives of State and local units of govern- 14
ment, tribal organizations, and consumer and other orga- 15
nizations. As the Secretary deems advisable, the Secretary 16
may hold public hearings and provide other opportunities 17
for public comment. The report shall contain recommenda- 18
tions for Federal actions that, if implemented, will result 19
in a balance between natural gas supply and demand at 20
a level that will ensure, to the maximum extent prac- 21
ticable, achievement of the objectives established in sub- 22
section (b). 23
(b) OBJECTIVES OF REPORT.—In preparing the re- 24
port, the Secretary shall seek to develop a series of rec- 25
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3
ommendations that will result in a balance between nat- 1
ural gas supply and demand adequate to— 2
(1) provide residential consumers with natural 3
gas at reasonable and stable prices; 4
(2) accommodate long-term maintenance and 5
growth of domestic natural gas-dependent industrial, 6
manufacturing, and commercial enterprises; 7
(3) facilitate the attainment of national ambient 8
air quality standards under the Clean Air Act; 9
(4) permit continued progress in reducing emis- 10
sions associated with electric power generation; and 11
(5) support development of the preliminary 12
phases of hydrogen-based energy technologies. 13
(c) CONTENTS OF REPORT.—The report shall provide 14
a comprehensive analysis of natural gas supply and de- 15
mand in the United States for the period from 2004 to 16
2015. The analysis shall include, at a minimum— 17
(1) estimates of annual domestic demand for 18
natural gas that take into account the effect of Fed- 19
eral policies and actions that are likely to increase 20
and decrease demand for natural gas; 21
(2) projections of annual natural gas supplies, 22
from domestic and foreign sources, under existing 23
Federal policies; 24
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4
(3) an identification of estimated natural gas 1
supplies that are not available under existing Fed- 2
eral policies; 3
(4) scenarios for decreasing natural gas demand 4
and increasing natural gas supplies comparing rel- 5
ative economic and environmental impacts of Fed- 6
eral policies that— 7
(A) encourage or require the use of natural 8
gas to meet air quality, carbon dioxide emission 9
reduction, or energy security goals; 10
(B) encourage or require the use of energy 11
sources other than natural gas, including coal, 12
nuclear, and renewable sources; 13
(C) support technologies to develop alter- 14
native sources of natural gas and synthetic gas, 15
including coal gasification technologies; 16
(D) encourage or require the use of energy 17
conservation and demand side management 18
practices; and 19
(E) affect access to domestic natural gas 20
supplies; and 21
(5) recommendations for Federal actions to 22
achieve the objectives of the report, including rec- 23
ommendations that— 24
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5
(A) encourage or require the use of energy 1
sources other than natural gas, including coal, 2
nuclear, and renewable sources; 3
(B) encourage or require the use of energy 4
conservation or demand side management prac- 5
tices; 6
(C) support technologies for the develop- 7
ment of alternative sources of natural gas and 8
synthetic gas, including coal gasification tech- 9
nologies; and 10
(D) will improve access to domestic natural 11
gas supplies. 12
SEC. 1603. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING 13
AND DEVELOPMENT PRACTICES. 14
(a) REVIEW.—In consultation with affected private 15
surface owners, oil and gas industry, and other interested 16
parties, the Secretary of the Interior shall undertake a re- 17
view of the current policies and practices with respect to 18
management of Federal subsurface oil and gas develop- 19
ment activities and their effects on the privately owned 20
surface. This review shall include— 21
(1) a comparison of the rights and responsibil- 22
ities under existing mineral and land law for the 23
owner of a Federal mineral lease, the private surface 24
owners and the Department; 25
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6
(2) a comparison of the surface owner consent 1
provisions in section 714 of the Surface Mining Con- 2
trol and Reclamation Act of 1977 (30 U.S.C. 1304) 3
concerning surface mining of Federal coal deposits 4
and the surface owner consent provisions for oil and 5
gas development, including coalbed methane produc- 6
tion; and 7
(3) recommendations for administrative or leg- 8
islative action necessary to facilitate reasonable ac- 9
cess for Federal oil and gas activities while address- 10
ing surface owner concerns and minimizing impacts 11
to private surface. 12
(b) REPORT.—The Secretary of the Interior shall re- 13
port the results of such review to Congress not later than 14
180 days after the date of enactment of this Act. 15
SEC. 1604. RESOLUTION OF FEDERAL RESOURCE DEVELOP- 16
MENT CONFLICTS IN THE POWDER RIVER 17
BASIN. 18
The Secretary of the Interior shall— 19
(1) undertake a review of existing authorities to 20
resolve conflicts between the development of Federal 21
coal and the development of Federal and non-Fed- 22
eral coalbed methane in the Powder River Basin in 23
Wyoming and Montana; and 24
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7
(2) not later than 6 months after the date of 1
enactment of this Act, report to Congress on alter- 2
natives to resolve these conflicts and identification of 3
a preferred alternative with specific legislative lan- 4
guage, if any, required to implement the preferred 5
alternative. 6
SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS. 7
The Secretary of Energy shall contract with the Na- 8
tional Academy of Sciences for a study, to be completed 9
within 1 year after the date of enactment of this Act, to 10
examine whether the goals of energy efficiency standards 11
are best served by measurement of energy consumed, and 12
efficiency improvements, at the actual site of energy con- 13
sumption, or through the full fuel cycle, beginning at the 14
source of energy production. The Secretary shall submit 15
the report to Congress. 16
SEC. 1606. TELECOMMUTING STUDY. 17
(a) STUDY REQUIRED.—The Secretary, in consulta- 18
tion with the Commission, the Director of the Office of 19
Personnel Management, the Administrator of General 20
Services, and the Administrator of NTIA, shall conduct 21
a study of the energy conservation implications of the 22
widespread adoption of telecommuting by Federal employ- 23
ees in the United States. 24
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November 14, 2003 (11:16 AM)
8
(b) REQUIRED SUBJECTS OF STUDY.—The study re- 1
quired by subsection (a) shall analyze the following sub- 2
jects in relation to the energy saving potential of telecom- 3
muting by Federal employees: 4
(1) Reductions of energy use and energy costs 5
in commuting and regular office heating, cooling, 6
and other operations. 7
(2) Other energy reductions accomplished by 8
telecommuting. 9
(3) Existing regulatory barriers that hamper 10
telecommuting, including barriers to broadband tele- 11
communications services deployment. 12
(4) Collateral benefits to the environment, fam- 13
ily life, and other values. 14
(c) REPORT REQUIRED.—The Secretary shall submit 15
to the President and Congress a report on the study re- 16
quired by this section not later than 6 months after the 17
date of enactment of this Act. Such report shall include 18
a description of the results of the analysis of each of the 19
subject described in subsection (b). 20
(d) DEFINITIONS.—As used in this section: 21
(1) SECRETARY.—The term ‘‘Secretary’’ means 22
the Secretary of Energy. 23
(2) COMMISSION.—The term ‘‘Commission’’ 24
means the Federal Communications Commission. 25
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November 14, 2003 (11:16 AM)
9
(3) NTIA.—The term ‘‘NTIA’’ means the Na- 1
tional Telecommunications and Information Admin- 2
istration of the Department of Commerce. 3
(4) TELECOMMUTING.—The term ‘‘telecom- 4
muting’’ means the performance of work functions 5
using communications technologies, thereby elimi- 6
nating or substantially reducing the need to com- 7
mute to and from traditional worksites. 8
(5) FEDERAL EMPLOYEE.—The term ‘‘Federal 9
employee’’ has the meaning provided the term ‘‘em- 10
ployee’’ by section 2105 of title 5, United States 11
Code. 12
SEC. 1607. LIHEAP REPORT. 13
Not later than 1 year after the date of enactment 14
of this Act, the Secretary of Health and Human Services 15
shall transmit to Congress a report on how the Low-In- 16
come Home Energy Assistance Program could be used 17
more effectively to prevent loss of life from extreme tem- 18
peratures. In preparing such report, the Secretary shall 19
consult with appropriate officials in all 50 States and the 20
District of Columbia. 21
SEC. 1608. OIL BYPASS FILTRATION TECHNOLOGY. 22
The Secretary of Energy and the Administrator of 23
the Environmental Protection Agency shall— 24
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10
(1) conduct a joint study of the benefits of oil 1
bypass filtration technology in reducing demand for 2
oil and protecting the environment; 3
(2) examine the feasibility of using oil bypass 4
filtration technology in Federal motor vehicle fleets; 5
and 6
(3) include in such study, prior to any deter- 7
mination of the feasibility of using oil bypass filtra- 8
tion technology, the evaluation of products and var- 9
ious manufacturers. 10
SEC. 1609. TOTAL INTEGRATED THERMAL SYSTEMS. 11
The Secretary of Energy shall— 12
(1) conduct a study of the benefits of total inte- 13
grated thermal systems in reducing demand for oil 14
and protecting the environment; and 15
(2) examine the feasibility of using total inte- 16
grated thermal systems in Department of Defense 17
and other Federal motor vehicle fleets. 18
SEC. 1610. UNIVERSITY COLLABORATION. 19
Not later than 2 years after the date of enactment 20
of this Act, the Secretary of Energy shall transmit to Con- 21
gress a report that examines the feasibility of promoting 22
collaborations between large institutions of higher edu- 23
cation and small institutions of higher education through 24
grants, contracts, and cooperative agreements made by the 25
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11
Secretary for energy projects. The Secretary shall also 1
consider providing incentives for the inclusion of small in- 2
stitutions of higher education, including minority-serving 3
institutions, in energy research grants, contracts, and co- 4
operative agreements. 5
SEC. 1611. RELIABILITY AND CONSUMER PROTECTION AS- 6
SESSMENT. 7
Not later than 5 years after the date of enactment 8
of this Act, and each 5 years thereafter, the Federal En- 9
ergy Regulatory Commission shall assess the effects of the 10
exemption of electric cooperatives and government-owned 11
utilities from Commission regulation under section 201(f) 12
of the Federal Power Act. The assessment shall include 13
any effects on— 14
(1) reliability of interstate electric transmission 15
networks; 16
(2) benefit to consumers, and efficiency, of 17
competitive wholesale electricity markets; 18
(3) just and reasonable rates for electricity con- 19
sumers; and 20
(4) the ability of the Commission to protect 21
electricity consumers. 22
If the Commission finds that the 201(f) exemption results 23
in adverse effects on consumers or electric reliability, the 24
Commission shall make appropriate recommendations to 25
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12
Congress pursuant to section 311 of the Federal Power 1
Act. 2
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