Text: H.R.6 — 109th Congress (2005-2006)All Information (Except Text)

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Engrossed Amendment Senate (07/02/2005)

 
[Congressional Bills 109th Congress]
[From the U.S. Government Printing Office]
[H.R. 6 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                         June 28, 2005.
    Resolved, That the bill from the House of Representatives (H.R. 6) 
entitled ``An Act to ensure jobs for our future with secure, 
affordable, and reliable energy.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Policy Act 
of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                       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. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Federal building performance standards.
Sec. 108. 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. Weatherization assistance.
Sec. 122. State energy programs.
Sec. 123. Energy efficient appliance rebate programs.
Sec. 124. Energy efficient public buildings.
Sec. 125. Low income community energy efficiency pilot program.
Sec. 126. State technologies advancement collaborative.
Sec. 127. State building energy efficiency codes incentives.

                 Subtitle C--Energy Efficient Products

Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Expedited rulemaking.
Sec. 138. Energy labeling.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Energy efficiency resource programs.
Sec. 142. Fuel efficient engine technology for aircraft.
Sec. 143. Motor vehicle tires supporting maximum fuel efficiency.

               Subtitle D--Measures to Conserve Petroleum

Sec. 151. Reduction of dependence on imported petroleum.

                Subtitle E--Energy Efficiency in Housing

Sec. 161. Public Housing Capital Fund.
Sec. 162. Energy efficient appliances.
Sec. 163. Energy efficiency standards.
Sec. 164. Energy strategy for the Department of Housing and Urban 
                            Development.

                       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.

                       Subtitle B--Reliable Fuels

Sec. 211. Renewable content of gasoline.
Sec. 212. Renewable fuel.
Sec. 213. Survey of renewable fuels consumption.

                 Subtitle C--Federal Reformulated Fuels

Sec. 221. Short title.
Sec. 222. Leaking underground storage tanks.
Sec. 223. Restrictions on the use of MTBE.
Sec. 224. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 225. Public health and environmental impacts of fuels and fuel 
                            additives.
Sec. 226. Analyses of motor vehicle fuel changes.
Sec. 227. Additional opt-in areas under reformulated gasoline program.
Sec. 228. Federal enforcement of State fuels requirements.
Sec. 229. Fuel system requirements harmonization study.
Sec. 230. Advanced biofuel technologies program.
Sec. 231. Sugar cane ethanol program.
Sec. 232. National Priority Project Designation.
Sec. 233. Rural and remote community electrification grants.
Sec. 234. Waste-derived ethanol and biodiesel.

                       Subtitle D--Insular Energy

Sec. 241. Definitions.
Sec. 242. Assessment.
Sec. 243. Project feasibility studies.
Sec. 244. Implementation.
Sec. 245. Authorization of appropriations.

                       Subtitle E--Biomass Energy

Sec. 251. Definitions.
Sec. 252. Biomass commercial utilization grant program.
Sec. 253. Improved biomass utilization program.
Sec. 254. Report.

                     Subtitle F--Geothermal Energy

Sec. 261. Competitive lease sale requirements.
Sec. 262. Direct use.
Sec. 263. Royalties.
Sec. 264. Geothermal leasing and permitting on Federal land.
Sec. 265. Assessment of geothermal energy potential.
Sec. 266. Cooperative or unit plans.
Sec. 267. Royalty on byproducts.
Sec. 268. Lease duration and work commitment requirements.
Sec. 269. Annual rental.
Sec. 270. Advanced royalties required for cessation of production.
Sec. 271. Leasing and permitting on Federal land withdrawn for military 
                            purposes.
Sec. 272. Technical amendments.

                       Subtitle G--Hydroelectric

Sec. 281. Alternative conditions and fishways.
Sec. 282. Alaska State jurisdiction over small hydroelectric projects.
Sec. 283. Flint Creek hydroelectric project.

                Subtitle H--Renewable Portfolio Standard

Sec. 291. Renewable portfolio standard.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum 
                            Reserve and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Small Business and Agricultural Producer Energy Emergency 
                            Disaster Loan Program.

                   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.
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. North slope science initiative.
Sec. 319. Orphaned, abandoned, or idled wells on Federal land.
Sec. 320. Combined hydrocarbon leasing.
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. Denali Commission.
Sec. 326. Comprehensive inventory of OCS oil and natural gas resources.
Sec. 327. Review and demonstration program for oil and natural gas 
                            production.
Sec. 328. No Oil Producing and Exporting Cartels.

                   Subtitle C--Access to Federal Land

Sec. 341. Federal onshore oil and gas leasing practices.
Sec. 342. Management of Federal oil and gas leasing programs.
Sec. 343. Consultation regarding oil and gas leasing on public land.
Sec. 344. Pilot project to improve Federal permit coordination.
Sec. 345. Energy facility rights-of-ways and corridors on Federal land.
Sec. 346. Oil shale and tar sands.
Sec. 347. Finger Lakes withdrawal.
Sec. 348. Reinstatement of leases.

                      Subtitle D--Coastal Programs

Sec. 371. Coastal impact assistance program.

                        Subtitle E--Natural Gas

Sec. 381. Exportation or importation of natural gas.
Sec. 382. New natural gas storage facilities. 
Sec. 383. Process coordination; hearings; rules of procedures.
Sec. 384. Penalties.
Sec. 385. Market manipulation.
Sec. 386. Natural gas market transparency rules.
Sec. 387. Deadline for decision on appeals of consistency determination 
                            under the Coastal Zone Management Act of 
                            1972.
Sec. 388. Federal-State liquefied natural gas forums.
Sec. 389. Prohibition of trading and serving by certain persons.

             Subtitle F--Federal Coalbed Methane Regulation

Sec. 391. Federal coalbed methane regulation.

                             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.
Sec. 405. Integrated coal/renewable energy system.
Sec. 406. Loan to place Alaska clean coal technology facility in 
                            service.
Sec. 407. Western integrated coal gasification demonstration project.

                    Subtitle B--Federal Coal Leases

Sec. 411. Repeal of the 160-acre limitation for coal leases.
Sec. 412. Mining plans.
Sec. 413. Payment of advance royalties under coal leases.
Sec. 414. Elimination of deadline for submission of coal lease 
                            operation and reclamation plan.
Sec. 415. Department of Energy transportation fuels from Illinois basin 
                            coal.
Sec. 416. Application of amendments.

                         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 and electrification.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Civil penalties.

                  Subtitle B--General Nuclear Matters

Sec. 621. Medical isotope production: nonproliferation, antiterrorism, 
                            and resource review.
Sec. 622. Safe disposal of greater-than-class C radioactive waste.
Sec. 623. Prohibition on nuclear exports to countries that sponsor 
                            terrorism.
Sec. 624. Decommissioning pilot program.
Sec. 625. Whistleblower protection for employees of the Department of 
                            Energy.

           Subtitle C--Next Generation Nuclear Plant Project

Sec. 631. Project establishment.
Sec. 632. Project management.
Sec. 633. Project organization.
Sec. 634. Nuclear regulatory commission.
Sec. 635. Project timelines and authorization of appropriations.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Fuel use credits.
Sec. 703. Incremental cost allocation.
Sec. 704. Alternative compliance and flexibility.
Sec. 705. Report concerning compliance with alternative fueled vehicle 
                            purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization 
                            initiative.

                   Subtitle B--Automobile Efficiency

                Chapter 1--Maximum Average Fuel Economy

Sec. 711. Revised considerations for decisions on maximum feasible 
                            average fuel economy.
Sec. 712. Increased fuel economy standards.
Sec. 713. Expedited procedures for Congressional increase in fuel 
                            economy standards.
Sec. 714. Extension of maximum fuel economy increase for alternative 
                            fueled vehicles.

                   Chapter 2--Advanced Clean Vehicles

Sec. 721. Hybrid vehicles research and development.
Sec. 722. Diesel fueled vehicles research and development.
Sec. 723. Procurement of alternative fueled passenger automobiles.
Sec. 724. Procurement of hybrid light duty trucks.
Sec. 725. Definitions.

                       Subtitle C--Miscellaneous

Sec. 731. Railroad efficiency.
Sec. 732. Conserve by bicycling program.
Sec. 733. Reduction of engine idling of heavy-duty vehicles.
Sec. 734. Biodiesel engine testing project.
Sec. 735. Investigation of gasoline prices.

               Subtitle D--Federal and State Procurement

Sec. 741. Definitions.
Sec. 742. Federal and State procurement of fuel cell vehicles and 
                            hydrogen energy systems.
Sec. 743. Federal procurement of stationary, portable, and micro fuel 
                            cells.

                 Subtitle E--Diesel Emissions Reduction

Sec. 751. Definitions.
Sec. 752. National grant and loan programs.
Sec. 753. State grant and loan programs.
Sec. 754. Evaluation and report.
Sec. 755. Outreach and incentives.
Sec. 756. Effect of subtitle.
Sec. 757. Authorization of appropriations.

                          TITLE VIII--HYDROGEN

Sec. 801. Hydrogen research, development, and demonstration.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.

                     Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Secondary electric vehicle battery use program.
Sec. 915. Energy Efficiency Science Initiative.
Sec. 916. Building Standards.

       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 921. Distributed energy and electric energy systems.
Sec. 922. High power density industry program.
Sec. 923. Micro-cogeneration energy technology.
Sec. 924. Distributed energy technology demonstration program.
Sec. 925. Electric transmission and distribution programs.

                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Hydrogen intermediate fuels research program.
Sec. 934. Concentrating solar power research program.
Sec. 935. Hybrid solar lighting research and development program.
Sec. 936. Miscellaneous projects.
Sec. 937. Biomass research and development.
Sec. 938. Production incentives for cellulosic biofuels.
Sec. 939. Procurement of biobased products.
Sec. 940. Small business bioproduct marketing and certification grants.
Sec. 941. Regional bioeconomy development grants.
Sec. 942. Preprocessing and harvesting demonstration grants.
Sec. 943. Education and outreach.
Sec. 944. Reports.

                       Subtitle D--Nuclear Energy

Sec. 945. Nuclear energy.
Sec. 946. Nuclear energy research programs.
Sec. 947. Advanced fuel cycle initiative.
Sec. 948. Nuclear science and engineering support for institutions of 
                            higher education.
Sec. 949. Security of nuclear facilities.
Sec. 950. Alternatives to industrial radioactive sources.

                       Subtitle E--Fossil Energy

Sec. 951. Fossil energy.
Sec. 952. Oil and gas research programs.
Sec. 953. Methane hydrate research.
Sec. 954. Low-volume gas reservoir research program.
Sec. 955. Research and development for coal mining technologies.
Sec. 956. Coal and related technologies program.
Sec. 957. Carbon capture research and development program.
Sec. 958. Complex well technology testing facility.

                          Subtitle F--Science

Sec. 961. Science.
Sec. 962. Fusion energy sciences program.
Sec. 963. Support for science and energy facilities and infrastructure.
Sec. 964. Catalysis research program.
Sec. 965. Hydrogen.
Sec. 966. Solid state lighting.
Sec. 967. Advanced scientific computing for energy missions.
Sec. 968. Genomes to Life Program.
Sec. 969. Fission and fusion energy materials research program.
Sec. 970. Energy-Water Supply Technologies Program.
Sec. 971. Spallation neutron source.

                 Subtitle G--International Cooperation

Sec. 981. Western Hemisphere energy cooperation.
Sec. 982. Cooperation between United States and Israel.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Availability of funds.
Sec. 1002. Cost sharing.
Sec. 1003. Merit review of proposals.
Sec. 1004. External technical review of Departmental programs.
Sec. 1005. Improved technology transfer of energy technologies.
Sec. 1006. Technology Infrastructure Program.
Sec. 1007. Small business advocacy and assistance.
Sec. 1008. Outreach.
Sec. 1009. Relationship to other laws.
Sec. 1010. Improved coordination and management of civilian science and 
                            technology programs.
Sec. 1011. Other transactions authority.
Sec. 1012. Prizes for achievement in grand challenges of science and 
                            technology.
Sec. 1013. Technical corrections.

                    TITLE XI--PERSONNEL AND TRAINING

Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Energy research fellowships.
Sec. 1103. Educational programs in science and mathematics.
Sec. 1104. Training guidelines for electric energy industry personnel.
Sec. 1105. National Center for Energy Management and Building 
                            Technologies.
Sec. 1106. Improved access to energy-related scientific and technical 
                            careers.
Sec. 1107. National Power Plant Operations Technology and Educational 
                            Center.

                         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. Advanced transmission technologies.
Sec. 1224. Advanced power system technology incentive program.

            Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Regional Transmission Organizations.
Sec. 1233. Federal utility participation in Transmission Organizations.
Sec. 1234. Standard market design.
Sec. 1235. Native load service obligation.
Sec. 1236. Protection of transmission contracts in the Pacific 
                            Northwest.

                  Subtitle D--Transmission Rate Reform

Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Funding new interconnection and transmission upgrades.

                    Subtitle E--Amendments to PURPA

Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale 
                            requirements.
Sec. 1254. Interconnection.

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

Sec. 1261. Market transparency rules.
Sec. 1262. False statements.
Sec. 1263. Market manipulation.
Sec. 1264. Enforcement.
Sec. 1265. Refund effective date.
Sec. 1266. Refund authority.
Sec. 1267. Consumer privacy and unfair trade practices.
Sec. 1268. Office of Consumer Advocacy.
Sec. 1269. Authority of court to prohibit persons from serving as 
                            officers, directors, and energy traders.
Sec. 1270. Relief for extraordinary violations.

             Subtitle G--Repeal of PUHCA and Merger Reform

Sec. 1271. Short title.
Sec. 1272. Definitions.
Sec. 1273. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1274. Federal access to books and records.
Sec. 1275. State access to books and records.
Sec. 1276. Exemption authority.
Sec. 1277. Affiliate transactions.
Sec. 1278. Applicability.
Sec. 1279. Effect on other regulations.
Sec. 1280. Enforcement.
Sec. 1281. Savings provisions.
Sec. 1282. Implementation.
Sec. 1283. Transfer of resources.
Sec. 1284. Effective date.
Sec. 1285. Service allocation.
Sec. 1286. Authorization of appropriations.
Sec. 1287. Conforming amendments to the Federal Power Act.
Sec. 1288. Merger review reform.

                        Subtitle H--Definitions

Sec. 1291. Definitions.
Sec. 1292. Energy policy and conservation technical correction.

            Subtitle I--Technical and Conforming Amendments

Sec. 1295. Conforming amendments.

                          TITLE XIII--STUDIES

Sec. 1301. Energy and water saving measures in congressional buildings.
Sec. 1302. Increased hydroelectric generation at existing Federal 
                            facilities.
Sec. 1303. Alaska Natural Gas Pipeline.
Sec. 1304. Renewable energy on Federal land.
Sec. 1305. Coalbed methane study.
Sec. 1306. Backup fuel capability study.
Sec. 1307. Indian land rights-of-way.
Sec. 1308. Review of Energy Policy Act of 1992 programs.
Sec. 1309. Study of feasibility and effects of reducing use of fuel for 
                            automobiles.
Sec. 1310. Hybrid distributed power systems.
Sec. 1311. Mobility of scientific and technical personnel.
Sec. 1312. National Academy of Sciences report.
Sec. 1313. Report on research and development program evaluation 
                            methodologies.
Sec. 1314. Transmission system monitoring study.
Sec. 1315. Interagency review of competition in the wholesale and 
                            retail markets for electric energy.
Sec. 1316. Study on the benefits of economic dispatch.
Sec. 1317. Study of rapid electrical grid restoration.
Sec. 1318. Study of distributed generation.
Sec. 1319. Study on inventory of petroleum and natural gas storage.
Sec. 1320. Natural gas supply shortage report.
Sec. 1321. Split-estate Federal oil and gas leasing and development 
                            practices.
Sec. 1322. Resolution of Federal resource development conflicts in the 
                            Powder River Basin.
Sec. 1323. Study of energy efficiency standards.
Sec. 1324. Telecommuting study.
Sec. 1325. Oil bypass filtration technology.
Sec. 1326. Total integrated thermal systems.
Sec. 1327. University collaboration.
Sec. 1328. Hydrogen participation study.
Sec. 1329. Overall employment in a hydrogen economy.
Sec. 1330. Study of best management practices for energy research and 
                            development programs.
Sec. 1331. Effect of electrical contaminants on reliability of energy 
                            production systems.
Sec. 1332. Alternative fuels reports.
Sec. 1333. Final action on refunds for excessive charges.
Sec. 1334. Fuel cell and hydrogen technology study.
Sec. 1335. Passive solar technologies.
Sec. 1336. Study of link between energy security and increases in 
                            vehicle miles traveled.
Sec. 1337. Study of availability of skilled workers.
Sec. 1338. Science Study on Cumulative Impacts of Multiple Offshore 
                            Liquefied Natural Gas Facilities.

           TITLE XIV--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 1401. Definitions.
Sec. 1402. Terms and conditions.
Sec. 1403. Eligible projects.
Sec. 1404. Authorization of appropriations.

                 TITLE XV--ENERGY POLICY TAX INCENTIVES

Sec. 1500. Short title; amendment of 1986 Code.

                 Subtitle A--Electricity Infrastructure

Sec. 1501. Extension and modification of renewable electricity 
                            production credit.
Sec. 1502. Application of section 45 credit to agricultural 
                            cooperatives.
Sec. 1503 Expansion of resources to wave, current, tidal, and ocean 
                            thermal energy.
Sec. 1504. Clean renewable energy bonds.
Sec. 1505. Treatment of income of certain electric cooperatives.
Sec. 1506. Dispositions of transmission property to implement FERC 
                            restructuring policy.
Sec. 1507. Credit for production from advanced nuclear power 
                            facilities.
Sec. 1508. Credit for investment in clean coal facilities.
Sec. 1509. Clean energy coal bonds.

               Subtitle B--Domestic Fossil Fuel Security

Sec. 1511. Credit for investment in clean coke/cogeneration 
                            manufacturing facilities.
Sec. 1512. Temporary expensing for equipment used in refining of liquid 
                            fuels.
Sec. 1513. Pass through to patrons of deduction for capital costs 
                            incurred by small refiner cooperatives in 
                            complying with Environmental Protection 
                            Agency sulfur regulations.
Sec. 1514. Modifications to enhanced oil recovery credit.
Sec. 1515. Natural gas distribution lines treated as 15-year property.

       Subtitle C--Conservation and Energy Efficiency Provisions

Sec. 1521. Energy efficient commercial buildings deduction.
Sec. 1522. Credit for construction of new energy efficient homes.
Sec. 1523. Deduction for business energy property.
Sec. 1524. Credit for certain nonbusiness energy property.
Sec. 1525. Energy credit for combined heat and power system property.
Sec. 1526. Credit for energy efficient appliances.
Sec. 1527. Credit for residential energy efficient property.
Sec. 1528. Credit for business installation of qualified fuel cells and 
                            stationary microturbine power plants.
Sec. 1529. Business solar investment tax credit.

      Subtitle D--Alternative Motor Vehicles and Fuels Incentives

Sec. 1531. Alternative motor vehicle credit.
Sec. 1532. Modification of credit for qualified electric vehicles.
Sec. 1533. Credit for installation of alternative fueling stations.
Sec. 1534. Volumetric excise tax credit for alternative fuels.
Sec. 1535. Extension of excise tax provisions and income tax credit for 
                            biodiesel.

              Subtitle E--Additional Energy Tax Incentives

Sec. 1541. 10-year recovery period for underground natural gas storage 
                            facility property.
Sec. 1542. Expansion of research credit.
Sec. 1543. Small agri-biodiesel producer credit.
Sec. 1544. Improvements to small ethanol producer credit.
Sec. 1545. Credit for equipment for processing or sorting materials 
                            gathered through recycling.
Sec. 1546. 5-year net operating loss carryover if any resulting refund 
                            is used for electric transmission 
                            equipment.
Sec. 1547. Credit for qualifying pollution control equipment.
Sec. 1548. Credit for production of coal owned by Indian tribes.
Sec. 1549. Credit for replacement stoves meeting environmental 
                            standards in non-attainment areas.
Sec. 1550. Exemption for equipment for transporting bulk beds of farm 
                            crops from excise tax on retail sale of 
                            heavy trucks and trailers.
Sec. 1551. National Academy of Sciences study and report.
Sec. 1552. Income tax exclusion for certain fuel costs of rural 
                            carpools.
Sec. 1553. 3-year applicable recovery period for depreciation of 
                            qualified energy management devices.
Sec. 1554. Exception from volume cap for certain cooling facilities.

                 Subtitle F--Revenue Raising Provisions

Sec. 1561. Treatment of kerosene for use in aviation.
Sec. 1562. Repeal of ultimate vendor refund claims with respect to 
                            farming.
Sec. 1563. Refunds of excise taxes on exempt sales of fuel by credit 
                            card.
Sec. 1564. Additional requirement for exempt purchases.
Sec. 1565. Reregistration in event of change in ownership.
Sec. 1566. Treatment of deep-draft vessels.
Sec. 1567. Reconciliation of on-loaded cargo to entered cargo.
Sec. 1568. Taxation of gasoline blendstocks and kerosene.
Sec. 1569. Nonapplication of export exemption to delivery of fuel to 
                            motor vehicles removed from United States.
Sec. 1570. Penalty with respect to certain adulterated fuels.
Sec. 1571. Oil Spill Liability Trust Fund financing rate.
Sec. 1572. Extension of Leaking Underground Storage Tank Trust Fund 
                            financing rate.
Sec. 1573. Tire excise tax modification.

                       TITLE XVI--CLIMATE CHANGE

       Subtitle A--National Climate Change Technology Deployment

Sec. 1601. Greenhouse gas intensity reducing technology strategies.
Sec. 1602. Climate infrastructure credit.

    Subtitle B--Climate Change Technology Deployment in Developing 
                               Countries

Sec. 1611. Climate change technology deployment in developing 
                            countries.
Sec. 1612. Sense of the Senate on climate change.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Institution of higher education.--
                    (A) In general.--The term ``institution of higher 
                education'' has the meaning given the term in section 
                101(a) of the Higher Education Act of 1065 (20 U.S.C. 
                1001(a)).
                    (B) Inclusion.--The term ``institution of higher 
                education'' includes an organization that--
                            (i) is organized, and at all times 
                        thereafter operated, exclusively for the 
                        benefit of, to perform the functions of, or to 
                        carry out the functions of 1 or more 
                        organizations referred to in subparagraph (A); 
                        and
                            (ii) is operated, supervised, or controlled 
                        by or in connection with 1 or more of those 
                        organizations.
            (3) National laboratory.--The term ``National Laboratory'' 
        means any of the following laboratories owned by the 
        Department:
                    (A) Ames Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Accelerator Laboratory.
                    (E) Idaho National Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Savannah River National Laboratory.
                    (P) Stanford Linear Accelerator Center.
                    (Q) Thomas Jefferson National Accelerator Facility.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (5) Small business concern.--The term ``small business 
        concern'' has the meaning given the term in section 3 of the 
        Small Business Act (15 U.S.C. 632).

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended--
            (1) by redesignating section 551 (42 U.S.C. 8259) as 
        section 553; and
            (2) by inserting after section 550 (42 U.S.C. 8258b) the 
        following:

``SEC. 551. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
              BUILDINGS.

    ``(a) Definitions.--In this section:
            ``(1) Congressional building.--The term `congressional 
        building' means a facility administered by Congress.
            ``(2) Plan.--The term `plan' means an energy conservation 
        and management plan developed under subsection (b)(1).
    ``(b) Plan.--
            ``(1) In general.--The Architect of the Capitol shall 
        develop, update, and implement a cost-effective energy 
        conservation and management plan for congressional buildings to 
        meet the energy performance requirements for Federal buildings 
        established under section 543(a)(1).
            ``(2) Requirements.--The plan shall include--
                    ``(A) a description of the life-cycle cost analysis 
                used to determine the cost-effectiveness of proposed 
                energy efficiency projects;
                    ``(B) a schedule that ensures that complete energy 
                surveys of all congressional buildings are conducted 
                every 5 years to determine the cost and payback period 
                of energy and water conservation measures;
                    ``(C) a strategy for installation of life-cycle 
                cost-effective energy and water conservation measures;
                    ``(D) the results of a study of the costs and 
                benefits of installation of submetering in 
                congressional buildings; and
                    ``(E) information packages and `how-to' guides for 
                each Member and employing authority of Congress that 
                describe simple and cost-effective methods to save 
                energy and taxpayer dollars in congressional buildings.
            ``(3) Submission to congress.--Not later than 180 days 
        after the date of enactment of the Energy Policy Act of 2005, 
        the Architect of the Capitol shall submit to Congress the plan 
        developed under paragraph (1).
    ``(c) Annual Report.--
            ``(1) In general.--The Architect of the Capitol shall 
        annually submit to Congress a report on congressional energy 
        management and conservation programs carried out for 
        congressional buildings under this section.
            ``(2) Requirements.--A report submitted under paragraph (1) 
        shall describe in detail--
                    ``(A) energy expenditures and savings estimates for 
                each congressional building;
                    ``(B) any energy management and conservation 
                projects for congressional buildings; and
                    ``(C) future priorities to ensure compliance with 
                this section.''.
    (b) Conforming Amendment.--The table of contents of the National 
Energy Conservation Policy Act is amended--
            (1) by redesignating the item relating to section 551 as 
        section 553; and
            (2) by inserting after the item relating to section 550 the 
        following:

``Sec. 551. Energy and water savings measures in congressional 
                            buildings.''.
    (c) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (2 U.S.C. 1815), is repealed.

SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is amended--
            (1) in paragraph (1), by striking ``Subject to'' and all 
        that follows and inserting ``(A) Subject to paragraph (2), each 
        agency shall apply energy conservation measures to, and shall 
        improve the design for the construction of, the Federal 
        buildings of the agency (including each industrial or 
        laboratory facility) so that the energy consumption for each 
        gross square foot of the Federal buildings of the agency for 
        fiscal years 2006 through 2015 is reduced, as compared with the 
        energy consumption for each gross square foot of the Federal 
        buildings of the agency for fiscal year 2004, by the percentage 
        specified in the following table:

  ``Fiscal Year                                    Percentage reduction
                2006.......................................          2 
                2007.......................................          4 
                2008.......................................          6 
                2009.......................................          8 
                2010.......................................         10 
                2011.......................................         12 
                2012.......................................         14 
                2013.......................................         16 
                2014.......................................         18 
                2015.......................................         20.

    ``(B) The energy reduction goals and baseline established in 
subparagraph (A) supersede--
            ``(i) all goals and baselines under this paragraph in 
        effect on the day before the date of enactment of this 
        subparagraph; and
            ``(ii) any related reporting requirements.''; and
            (2) by adding at the end the following:
    ``(3) Not later than December 31, 2013, the Secretary shall--
            ``(A) review the results of the implementation of the 
        energy performance requirement established under paragraph (1); 
        and
            ``(B) submit to Congress recommendations concerning energy 
        performance requirements for each of fiscal years 2015 through 
        2024.''.
    (b) Exclusions; Review by Secretary; Criteria.--Section 543(c) of 
the National Energy Conservation Policy Act (42 U.S.C. 8253(c)) is 
amended--
            (1) in paragraph (1), by striking ``An agency may exclude'' 
        and all that follows and inserting ``(A) An agency may exclude, 
        from the energy performance requirement for a fiscal year 
        established under subsection (a) and the energy management 
        requirement established under subsection (b), any Federal 
        building or collection of Federal buildings, if the head of the 
        agency finds that--
            ``(i) compliance with those requirements would be 
        impracticable;
            ``(ii) the agency has completed and submitted all federally 
        required energy management reports;
            ``(iii) the agency has achieved compliance with the energy 
        efficiency requirements of this Act, the Energy Policy Act of 
        1992 (42 U.S.C. 13201 et seq.), Executive orders, and other 
        Federal law; and
            ``(iv) the agency has implemented all practicable, life-
        cycle cost-effective projects with respect to the Federal 
        building or collection of Federal buildings to be excluded.
    ``(B) A finding of impracticability under subparagraph (A)(i) shall 
be based on--
            ``(i) the energy intensiveness of activities carried out in 
        the Federal building or collection of Federal buildings; or
            ``(ii) the fact that the Federal building or collection of 
        Federal buildings is used in the performance of a national 
        security function.'';
            (2) in paragraph (2)--
                    (A) in the second sentence--
                            (i) by striking ``impracticability 
                        standards'' and inserting ``standards for 
                        exclusion''; and
                            (ii) by striking ``a finding of 
                        impracticability'' and inserting ``the 
                        exclusion''; and
                    (B) in the third sentence, by striking ``energy 
                consumption requirements'' and inserting ``requirements 
                of subsections (a) and (b)(1)''; and
            (3) by adding at the end the following:
    ``(3) Not later than 180 days after the date of enactment of this 
paragraph, the Secretary shall issue guidelines that establish criteria 
for exclusions under paragraph (1).''.
    (c) Retention of Energy and Water Savings.--Section 546 of the 
National Energy Conservation Policy Act (42 U.S.C. 8256) is amended--
            (1) in subsection (d)(2)(G), by inserting ``of the Energy 
        Policy Act of 1992 (42 U.S.C. 8262e)'' after ``159''; and
            (2) by adding at the end the following:
    ``(e) Retention of Energy and Water Savings.--(1) An agency may 
retain any funds appropriated to the agency for energy expenditures, 
water expenditures, or wastewater treatment expenditures, at buildings 
subject to the requirements of subsections (a) and (b) of section 543, 
that are not expended because of energy savings or water savings.
    ``(2) Except as otherwise provided by law, funds described in 
paragraph (1) may be used by an agency only for energy efficiency, 
water conservation, or unconventional and renewable energy resources 
projects.''.
    (d) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``the President 
        and'' before ``Congress''; and
            (2) by inserting ``President and'' before ``Congress''.
    (e) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended by adding at the end the following:
    ``(e) Metering of Energy Use.--(1)(A) Not later than October 1, 
2012, in accordance with guidelines established by the Secretary under 
paragraph (2), each Federal building shall, for the purposes of 
efficient use of energy and reduction in the cost of electricity used 
in the building, be metered or submetered.
    ``(B) Each agency shall use, to the maximum extent practicable, 
advanced meters or advanced metering devices that provide data at least 
daily on, and that measure at least hourly, consumption of electricity 
in the Federal buildings of the agency.
    ``(C) The data shall be--
            ``(i) incorporated into Federal energy tracking systems; 
        and
            ``(ii) made available to Federal facility energy managers.
    ``(2)(A) Not later than 180 days after the date of enactment of 
this subsection, the Secretary (in consultation with the Secretary of 
Defense, the Administrator of General Services, representatives from 
the metering industry, utility industry, energy services industry, 
energy efficiency industry, energy efficiency advocacy organizations, 
national laboratories, and universities, and Federal facility energy 
managers) shall establish guidelines for agencies to carry out 
paragraph (1).
    ``(B) The guidelines shall--
            ``(i) take into consideration--
                    ``(I) the cost of metering and submetering and the 
                reduced cost of operation and maintenance expected to 
                result from metering and submetering;
                    ``(II) the extent to which metering and submetering 
                are expected to result in increased potential for 
                energy management, increased potential for energy 
                savings and energy efficiency improvement, and cost and 
                energy savings because of utility contract aggregation; 
                and
                    ``(III) the measurement and verification protocols 
                of the Department of Energy;
            ``(ii) include recommendations concerning the amount of 
        funds and the number of trained personnel necessary to gather 
        and use the metering information to track and reduce energy 
        use;
            ``(iii) establish priorities for types and locations of 
        buildings to be metered and submetered based on cost-
        effectiveness and a schedule of 1 or more dates, not later than 
        1 year after the date of issuance of the guidelines, on which 
        paragraph (1) takes effect; and
            ``(iv) establish exclusions from the requirements of 
        paragraph (1) based on the de minimis quantity of energy use of 
        a Federal building, industrial process, or structure.
    ``(3) Not later than 180 days after the date on which guidelines 
are established under paragraph (2), in a report submitted by an agency 
under section 548(a), the agency shall submit to the Secretary a plan 
describing the manner in which the agency will implement paragraph (1), 
including--
            ``(A) the manner in which the agency will designate 
        personnel primarily responsible for carrying out that 
        implementation; and
            ``(B) demonstration by the agency, complete with 
        documentation, of any finding that the use of advanced meters 
        or advanced metering devices described in paragraph (1) is not 
        practicable.''.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Requirements.--Part 3 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8251 et seq.) (as amended by section 
101(a)) is amended by inserting after section 551 the following:

``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) The term `Energy Star product' means a product that 
        is rated for energy efficiency under an Energy Star program.
            ``(2) The term `Energy Star program' means the program 
        established by section 324A of the Energy Policy and 
        Conservation Act.
            ``(3) The term `executive agency' has the meaning given the 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(4) The term `FEMP designated product' means a product 
        that is designated under the Federal Energy Management Program 
        of the Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
    ``(b) Procurement of Energy Efficient Products.--(1) Except as 
provided in paragraph (2), to meet the requirements of an executive 
agency for an energy consuming product, the head of the executive 
agency shall procure--
            ``(A) an Energy Star product; or
            ``(B) a FEMP designated product.
    ``(2) The head of an executive agency shall not be required to 
comply with paragraph (1) if the head of the executive agency specifies 
in writing that--
            ``(A) taking into account energy cost savings, an Energy 
        Star product or FEMP designated product is not cost-effective 
        over the life of the product; or
            ``(B) no Energy Star product or FEMP designated product is 
        reasonably available that meets the functional requirements of 
        the executive agency.
    ``(3) The head of an executive agency shall incorporate criteria 
for energy efficiency that are consistent with the criteria used for 
rating Energy Star products and FEMP designated products into--
            ``(A) the specifications for any procurements involving 
        energy consuming products and systems, including--
                    ``(i) guide specifications;
                    ``(ii) project specifications; and
                    ``(iii) construction, renovation, and services 
                contracts that include the provision of energy 
                consuming products and systems; and
            ``(B) the factors for the evaluation of offers received for 
        the procurement.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
(1) Any inventory or listing of products by the General Services 
Administration or the Defense Logistics Agency shall clearly identify 
and prominently display Energy Star products and FEMP designated 
products.
    ``(2)(A) Except as provided in subparagraph (B), the General 
Services Administration or the Defense Logistics Agency shall supply 
only Energy Star products or FEMP designated products for all product 
categories covered by the Energy Star program or the Federal Energy 
Management Program.
    ``(B) Subparagraph (A) shall not apply if an agency ordering a 
product specifies in writing that--
            ``(i) taking into account energy cost savings, no Energy 
        Star product or FEMP designated product is cost-effective for 
        the intended application over the life of the product; or
            ``(ii) no Energy Star product or FEMP designated product is 
        available to meet the functional requirements of the ordering 
        agency.
    ``(d) Specific Products.--(1) In the case of an electric motor of 1 
to 500 horsepower, an executive agency shall select only a premium 
efficient motor that meets the standard established by the Secretary 
under paragraph (2).
    ``(2) Not later than 120 days after the date of enactment of this 
subsection and after considering the recommendations of associated 
electric motor manufacturers and energy efficiency groups, the 
Secretary shall establish a standard for premium efficient motors.
    ``(3)(A) Each Federal agency is encouraged to take actions (such as 
appropriate cleaning and maintenance) to maximize the efficiency of air 
conditioning and refrigeration equipment, including the use of a system 
treatment or additive that--
            ``(i) would reduce the electricity consumed by air 
        conditioning and refrigeration equipment; and
            ``(ii) meets the criteria specified in subparagraph (B).
    ``(B) A system treatment or additive referred to in subparagraph 
(A) shall be--
            ``(i) determined by the Secretary to be effective in 
        increasing the efficiency of air conditioning and refrigeration 
        equipment without having an adverse impact on--
                    ``(I) air conditioning and refrigeration 
                performance (including cooling capacity); or
                    ``(II) the useful life of the equipment;
            ``(ii) determined by the Administrator of the Environmental 
        Protection Agency to be environmentally safe; and
            ``(iii) shown, in tests conducted by the National Institute 
        of Standards and Technology, in accordance with Department of 
        Energy test procedures, to increase the seasonal energy 
        efficiency ratio (SEER) or energy efficiency ratio (EER) 
        without having any adverse impact on the system, system 
        components, the refrigerant or lubricant, or other materials in 
        the system.
    ``(4) The results of the tests described in paragraph (3)(B)(iii) 
shall be published in the Federal Register for public review and 
comment.
    ``(5) For purposes of this subsection, a hardware device or primary 
refrigerant shall not be considered an additive.
    ``(e) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall issue guidelines to 
carry out this section.''.
    (b) Conforming Amendment.--The table of contents of the National 
Energy Conservation Policy Act (as amended by section 101(b)) is 
amended by inserting after the item relating to section 551 the 
following:

``Sec. 552. Federal procurement of energy efficient products.''.

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Permanent Extension.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is amended by striking 
``2006'' and inserting ``2016''.
    (b) Extension of Authority.--Any energy savings performance 
contract entered into under section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) after October 1, 2003, and 
before the date of enactment of this Act, shall be considered to have 
been entered into under that section.

SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) Definition of Energy Intensity.--In this section, the term 
``energy intensity'' means the primary energy consumed for each unit of 
physical output in an industrial process.
    (b) Voluntary Agreements.--The Secretary may enter into voluntary 
agreements with 1 or more persons in industrial sectors that consume 
significant quantities of primary energy for each unit of physical 
output to reduce the energy intensity of the production activities of 
the persons.
    (c) Goal.--Voluntary agreements under this section shall have as a 
goal the reduction of energy intensity by not less than 2.5 percent 
each year during the period of calendar years 2007 through 2016.
    (d) Recognition.--The Secretary, in cooperation with other 
appropriate Federal agencies, shall develop mechanisms to recognize and 
publicize the achievements of participants in voluntary agreements 
under this section.
    (e) Technical Assistance.--A person that enters into an agreement 
under this section and continues to make a good faith effort to achieve 
the energy efficiency goals specified in the agreement shall be 
eligible to receive from the Secretary a grant or technical assistance, 
as appropriate, to assist in the achievement of those goals.
    (f) Report.--Not later than each of June 30, 2012, and June 30, 
2017, the Secretary shall submit to Congress a report that--
            (1) evaluates the success of the voluntary agreements under 
        this section; and
            (2) provides independent verification of a sample of the 
        energy savings estimates provided by participating firms.

SEC. 107. FEDERAL BUILDING PERFORMANCE STANDARDS.

    Section 305(a) of the Energy Conservation and Production Act (42 
U.S.C. 6834(a)) is amended--
            (1) in paragraph (2)(A), by striking ``CABO Model Energy 
        Code, 1992 (in the case of residential buildings) or ASHRAE 
        Standard 90.1-1989'' and inserting ``the 2004 International 
        Energy Conservation Code (in the case of residential buildings) 
        or ASHRAE Standard 90.1-2004''; and
            (2) by adding at the end the following:
    ``(3)(A) Not later than 1 year after the date of enactment of this 
paragraph, the Secretary shall establish, by rule, revised Federal 
building energy efficiency performance standards that require that--
            ``(i) if life-cycle cost-effective for new Federal 
        buildings--
                    ``(I) the buildings be designed to achieve energy 
                consumption levels that are at least 30 percent below 
                the levels established in the version of the ASHRAE 
                Standard or the International Energy Conservation Code, 
                as appropriate, that is in effect as of the date of 
                enactment of this paragraph; and
                    ``(II) sustainable design principles are applied to 
                the siting, design, and construction of all new and 
                replacement buildings; and
            ``(ii) if water is used to achieve energy efficiency, water 
        conservation technologies shall be applied to the extent that 
        the technologies are life-cycle cost-effective.
    ``(B) Not later than 1 year after the date of approval of each 
subsequent revision of the ASHRAE Standard or the International Energy 
Conservation Code, as appropriate, the Secretary shall determine, based 
on the cost-effectiveness of the requirements under the amendment, 
whether the revised standards established under this paragraph should 
be updated to reflect the amendment.
    ``(C) In the budget request of the Federal agency for each fiscal 
year and each report submitted by the Federal agency under section 
548(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8258(a)), the head of each Federal agency shall include--
            ``(i) a list of all new Federal buildings owned, operated, 
        or controlled by the Federal agency; and
            ``(ii) a statement specifying whether the Federal buildings 
        meet or exceed the revised standards established under this 
        paragraph.''.

SEC. 108. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
              FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
              CONCRETE.

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

  ``increased use of recovered mineral component in federally funded 
          projects involving procurement of cement or concrete

    ``Sec. 6005. (a) Definitions.--In this section:
            ``(1) Agency head.--The term `agency head' means--
                    ``(A) the Secretary of Transportation; and
                    ``(B) the head of any other Federal agency that, on 
                a regular basis, procures, or provides Federal funds to 
                pay or assist in paying the cost of procuring, material 
                for cement or concrete projects.
            ``(2) Cement or concrete project.--The term `cement or 
        concrete project' means a project for the construction or 
        maintenance of a highway or other transportation facility or a 
        Federal, State, or local government building or other public 
        facility that--
                    ``(A) involves the procurement of cement or 
                concrete; and
                    ``(B) is carried out, in whole or in part, using 
                Federal funds.
            ``(3) Recovered mineral component.--The term `recovered 
        mineral component' means--
                    ``(A) ground granulated blast furnace slag;
                    ``(B) coal combustion fly ash; and
                    ``(C) any other waste material or byproduct 
                recovered or diverted from solid waste that the 
                Administrator, in consultation with an agency head, 
                determines should be treated as recovered mineral 
                component under this section for use in cement or 
                concrete projects paid for, in whole or in part, by the 
                agency head.
    ``(b) Implementation of Requirements.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator and each agency 
        head shall take such actions as are necessary to implement 
        fully all procurement requirements and incentives in effect as 
        of the date of enactment of this section (including guidelines 
        under section 6002) that provide for the use of cement and 
        concrete incorporating recovered mineral component in cement or 
        concrete projects.
            ``(2) Priority.--In carrying out paragraph (1), an agency 
        head shall give priority to achieving greater use of recovered 
        mineral component in cement or concrete projects for which 
        recovered mineral components historically have not been used or 
        have been used only minimally.
            ``(3) Federal procurement requirements.--The Administrator 
        and each agency head shall carry out this subsection in 
        accordance with section 6002.
    ``(c) Full Implementation Study.--
            ``(1) In general.--The Administrator, in cooperation with 
        the Secretary of Transportation and the Secretary of Energy, 
        shall conduct a study to determine the extent to which 
        procurement requirements, when fully implemented in accordance 
        with subsection (b), may realize energy savings and 
        environmental benefits attainable with substitution of 
        recovered mineral component in cement used in cement or 
        concrete projects.
            ``(2) Matters to be addressed.--The study shall--
                    ``(A) quantify--
                            ``(i) the extent to which recovered mineral 
                        components are being substituted for Portland 
                        cement, particularly as a result of procurement 
                        requirements; and
                            ``(ii) the energy savings and environmental 
                        benefits associated with the substitution;
                    ``(B) identify all barriers in procurement 
                requirements to greater realization of energy savings 
                and environmental benefits, including barriers 
                resulting from exceptions from the law; and
                    ``(C)(i) identify potential mechanisms to achieve 
                greater substitution of recovered mineral component in 
                types of cement or concrete projects for which 
                recovered mineral components historically have not been 
                used or have been used only minimally;
                    ``(ii) evaluate the feasibility of establishing 
                guidelines or standards for optimized substitution 
                rates of recovered mineral component in those cement or 
                concrete projects; and
                    ``(iii) identify any potential environmental or 
                economic effects that may result from greater 
                substitution of recovered mineral component in those 
                cement or concrete projects.
            ``(3) Report.--Not later than 30 months after the date of 
        enactment of this section, the Administrator shall submit to 
        Congress a report on the study.
    ``(d) Additional Procurement Requirements.--Unless the study 
conducted under subsection (c) identifies any effects or other problems 
described in subsection (c)(2)(C)(iii) that warrant further review or 
delay, the Administrator and each agency head shall, not later than 1 
year after the date on which the report under subsection (c)(3) is 
submitted, take additional actions under this Act to establish 
procurement requirements and incentives that provide for the use of 
cement and concrete with increased substitution of recovered mineral 
component in the construction and maintenance of cement or concrete 
projects--
            ``(1) to realize more fully the energy savings and 
        environmental benefits associated with increased substitution; 
        and
            ``(2) to eliminate barriers identified under subsection 
        (c)(2)(B).
    ``(e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).''.
    (b) Conforming Amendment.--The table of contents of the Solid Waste 
Disposal Act is amended by adding after the item relating to section 
6004 the following:

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

            Subtitle B--Energy Assistance and State Programs

SEC. 121. WEATHERIZATION ASSISTANCE.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended by striking ``for fiscal years 1999 through 
2003 such sums as may be necessary'' and inserting ``$325,000,000 for 
fiscal year 2006, $400,000,000 for fiscal year 2007, and $500,000,000 
for fiscal year 2008''.

SEC. 122. STATE ENERGY PROGRAMS.

    (a) State Energy Conservation Plans.--Section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322) is amended by adding at 
the end the following:
    ``(g)(1) The Secretary shall, at least once every 3 years, invite 
the Governor of each State to review and, if necessary, revise the 
energy conservation plan of the State submitted under subsection (b) or 
(e).
    ``(2) A review conducted under paragraph (1) should--
            ``(A) consider the energy conservation plans of other 
        States within the region; and
            ``(B) identify opportunities and actions carried out in 
        pursuit of common energy conservation goals.''.
    (b) State Energy Efficiency Goals.--Section 364 of the Energy 
Policy and Conservation Act (42 U.S.C. 6324) is amended to read as 
follows:

                    ``state energy efficiency goals

    ``Sec. 364. Each State energy conservation plan with respect to 
which assistance is made available under this part on or after the date 
of enactment of the Energy Policy Act of 2005--
            ``(1) shall contain a goal, consisting of an improvement of 
        25 percent or more in the efficiency of use of energy in the 
        State concerned in calendar year 2012 as compared to calendar 
        year 1992; and
            ``(2) may contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the Energy 
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary'' 
and inserting ``$100,000,000 for each of fiscal years 2006 and 2007 and 
$125,000,000 for fiscal year 2008''.

SEC. 123. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) Definitions.--In this section:
            (1) Eligible state.--The term ``eligible State'' means a 
        State that meets the requirements of subsection (b).
            (2) Energy star program.--The term ``Energy Star program'' 
        means the program established by section 324A of the Energy 
        Policy and Conservation Act (as added by section 131(a)).
            (3) Residential energy star product.--The term 
        ``residential Energy Star product'' means a product for a 
        residence that is rated for energy efficiency under the Energy 
        Star program.
            (4) State energy office.--The term ``State energy office'' 
        means the State agency responsible for developing State energy 
        conservation plans under section 362 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6322).
            (5) State program.--The term ``State program'' means a 
        State energy efficient appliance rebate program described in 
        subsection (b)(1).
    (b) Eligible States.--A State shall be eligible to receive an 
allocation under subsection (c) if the State--
            (1) establishes (or has established) a State energy 
        efficient appliance rebate program to provide rebates to 
        residential consumers for the purchase of residential Energy 
        Star products to replace used appliances of the same type;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the Secretary 
        may require; and
            (3) provides assurances satisfactory to the Secretary that 
        the State will use the allocation to supplement, but not 
        supplant, funds made available to carry out the State program.
    (c) Amount of Allocations.--
            (1) In general.--Subject to paragraph (2), for each fiscal 
        year, the Secretary shall allocate to the State energy office 
        of each eligible State to carry out subsection (d) an amount 
        equal to the product obtained by multiplying--
                    (A) the amount made available under subsection (f) 
                for the fiscal year; and
                    (B) by the ratio that--
                            (i) the population of the State in the most 
                        recent calendar year for which data are 
                        available; bears to
                            (ii) the total population of all eligible 
                        States in that calendar year.
            (2) Minimum allocations.--For each fiscal year, the amounts 
        allocated under this subsection shall be adjusted 
        proportionately so that no eligible State is allocated a sum 
        that is less than such minimum amount as shall be determined by 
        the Secretary.
    (d) Use of Allocated Funds.--The allocation to a State energy 
office under subsection (c) may be used to pay not more than 50 percent 
of the cost of establishing and carrying out a State program.
    (e) Issuance of Rebates.--
            (1) In general.--A rebate may be provided to a residential 
        consumer that meets the requirements of the State program.
            (2) Amount.--The amount of a rebate shall be determined by 
        the State energy office, taking into consideration--
                    (A) the amount of the allocation to the State 
                energy office under subsection (c);
                    (B) the amount of any Federal or State tax 
                incentive available for the purchase of the residential 
                Energy Star product; and
                    (C) the difference between--
                            (i) the cost of the residential Energy Star 
                        product; and
                            (ii) the cost of an appliance that is not a 
                        residential Energy Star product, but is of the 
                        same type as, and is the nearest capacity, 
                        performance, and other relevant characteristics 
                        (as determined by the State energy office) to, 
                        the residential Energy Star product.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 124. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary may make grants to the State agency 
responsible for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), 
or a State agency designated by the Governor of the State, to assist 
units of local government in the State in improving the energy 
efficiency of public buildings and facilities through--
            (1) construction of new energy efficient public buildings 
        that use at least 30 percent less energy than a comparable 
        public building constructed in compliance with standards 
        prescribed in--
                    (A) the most recent version of the International 
                Energy Conservation Code; or
                    (B) a similar State code intended to achieve 
                substantially equivalent efficiency levels; or
            (2) renovation of existing public buildings to achieve 
        reductions in energy use of at least 30 percent as compared to 
        the baseline energy use in the buildings before renovation, 
        assuming a 3-year, weather-normalized average for calculating 
        the baseline.
    (b) Administration.--State energy offices receiving grants under 
this section shall--
            (1) maintain any records and evidence of compliance that 
        the Secretary may require; and
            (2) to encourage planning, financing, and design of energy 
        efficient public buildings by units of local government--
                    (A) develop and distribute information and 
                materials; and
                    (B) conduct programs to provide technical services 
                and assistance.
    (c) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary to carry out this section $30,000,000 for each of 
        fiscal years 2006 through 2010.
            (2) Administrative expenses.--Not more than 10 percent of 
        amounts made available under paragraph (1) shall be used for 
        administrative expenses.

SEC. 125. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Definition of Indian Tribe.--In this section, the term ``Indian 
tribe'' has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
    (b) Grants.--
            (1) In general.--The Secretary may provide grants, on a 
        competitive basis, to units of local government, private or 
        nonprofit community development organizations, and economic 
        development entities of Indian tribes--
                    (A) to improve energy efficiency;
                    (B) to identify and develop alternative, renewable, 
                and distributed energy supplies; and
                    (C) to increase energy conservation in low-income 
                rural and urban communities.
            (2) Eligible activities.--The following activities are 
        eligible for grants under paragraph (1):
                    (A) Investments that develop alternative, 
                renewable, and distributed energy supplies.
                    (B) Energy efficiency projects and energy 
                conservation programs.
                    (C) Studies and other activities that improve 
                energy efficiency in low-income rural and urban 
                communities.
                    (D) Planning and development assistance for 
                increasing the energy efficiency of buildings and 
                facilities.
                    (E) Technical and financial assistance to units of 
                local government and private entities to develop new 
                renewable and distributed sources of power or combined 
                heat and power generation.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $20,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 126. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.

    (a) In General.--The Secretary, in cooperation with the States, 
shall establish a cooperative program for research, development, 
demonstration, and deployment of technologies in which there is a 
common Federal and State energy efficiency, renewable energy, and 
fossil energy interest, to be known as the ``State Technologies 
Advancement Collaborative'' (referred to in this section as the 
``Collaborative'').
    (b) Duties.--The Collaborative shall--
            (1) leverage Federal and State funding through cost-shared 
        activity;
            (2) reduce redundancies in Federal and State funding; and
            (3) create multistate projects to be awarded through a 
        competitive process.
    (c) Administration.--The Collaborative shall be administered 
through an agreement between the Department and appropriate State-based 
organizations.
    (d) Funding Sources.--Funding for the Collaborative may be provided 
from--
            (1) amounts specifically appropriated for the 
        Collaborative; or
            (2) amounts that may be allocated from other appropriations 
        without changing the purpose for which the amounts are 
        appropriated.
    (e) Authorization of Appropriations.--There are authorized to carry 
out this section such sums as are necessary for each of fiscal years 
2006 through 2010.

SEC. 127. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.

    Section 304(e) of the Energy Conservation and Production Act (42 
U.S.C. 6833(e)) is amended--
            (1) in paragraph (1), by inserting before the period at the 
        end of the first sentence the following: ``, including 
        increasing and verifying compliance with such codes''; and
            (2) by striking paragraph (2) and inserting the following:
    ``(2) Additional funding shall be provided under this subsection 
for implementation of a plan to achieve and document at least a 90 
percent rate of compliance with residential and commercial building 
energy efficiency codes, based on energy performance--
            ``(A) to a State that has adopted and is implementing, on a 
        statewide basis--
                    ``(i) a residential building energy efficiency code 
                that meets or exceeds the requirements of the 2004 
                International Energy Conservation Code, or any 
                succeeding version of that code that has received an 
                affirmative determination from the Secretary under 
                subsection (a)(5)(A); and
                    ``(ii) a commercial building energy efficiency code 
                that meets or exceeds the requirements of the ASHRAE 
                Standard 90.1-2004, or any succeeding version of that 
                standard that has received an affirmative determination 
                from the Secretary under subsection (b)(2)(A); or
            ``(B) in a State in which there is no statewide energy code 
        either for residential buildings or for commercial buildings, 
        to a local government that has adopted and is implementing 
        residential and commercial building energy efficiency codes, as 
        described in subparagraph (A).
    ``(3) Of the amounts made available under this subsection, the 
Secretary may use $500,000 for each fiscal year to train State and 
local officials to implement codes described in paragraph (2).
    ``(4)(A) There are authorized to be appropriated to carry out this 
subsection--
            ``(i) $25,000,000 for each of fiscal years 2006 through 
        2010; and
            ``(ii) such sums as are necessary for fiscal year 2011 and 
        each fiscal year thereafter.
    ``(B) Funding provided to States under paragraph (2) for each 
fiscal year shall not exceed \1/2\ of the excess of funding under this 
subsection over $5,000,000 for the fiscal year.''.

                 Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

    (a) In General.--The Energy Policy and Conservation Act is amended 
by inserting after section 324 (42 U.S.C. 6294) the following:

                         ``energy star program

    ``Sec. 324A. (a) In General.--There is established within the 
Department of Energy and the Environmental Protection Agency a 
voluntary program to identify and promote energy-efficient products and 
buildings in order to reduce energy consumption, improve energy 
security, and reduce pollution through voluntary labeling of, or other 
forms of communication about, products and buildings that meet the 
highest energy conservation standards.
    ``(b) Division of Responsibilities.--Responsibilities under the 
program shall be divided between the Department of Energy and the 
Environmental Protection Agency in accordance with the terms of 
applicable agreements between those agencies.
    ``(c) Duties.--The Administrator and the Secretary shall--
            ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for--
                    ``(A) achieving energy efficiency; and
                    ``(B) reducing pollution;
            ``(2) work to enhance public awareness of the Energy Star 
        label, including by providing special outreach to small 
        businesses;
            ``(3) preserve the integrity of the Energy Star label;
            ``(4) regularly update Energy Star product criteria for 
        product categories;
            ``(5) solicit comments from interested parties prior to 
        establishing or revising an Energy Star product category, 
        specification, or criterion (or prior to effective dates for 
        any such product category, specification, or criterion);
            ``(6) on adoption of a new or revised product category, 
        specification, or criterion, provide reasonable notice to 
        interested parties of any changes (including effective dates) 
        in product categories, specifications, or criteria, along 
        with--
                    ``(A) an explanation of the changes; and
                    ``(B) as appropriate, responses to comments 
                submitted by interested parties; and
            ``(7) provide appropriate lead time (which shall be 270 
        days, unless the Agency or Department specifies otherwise) 
        prior to the applicable effective date for a new or a 
        significant revision to a product category, specification, or 
        criterion, taking into account the timing requirements of the 
        manufacturing, product marketing, and distribution process for 
        the specific product addressed.
    ``(d) Deadlines.--The Secretary shall establish new qualifying 
levels--
            ``(1) not later than January 1, 2006, for clothes washers 
        and dishwashers, effective beginning January 1, 2007; and
            ``(2) not later than January 1, 2008, for clothes washers, 
        effective beginning January 1, 2010.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by 
inserting after the item relating to section 324 the following:

``Sec. 324A. Energy Star program.''.

SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

    Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 
6307) is amended by adding at the end the following:
    ``(c) HVAC Maintenance.--(1) To ensure that installed air 
conditioning and heating systems operate at maximum rated efficiency 
levels, the Secretary shall, not later than 180 days after the date of 
enactment of this subsection, carry out a program to educate homeowners 
and small business owners concerning the energy savings from properly 
conducted maintenance of air conditioning, heating, and ventilating 
systems.
    ``(2) The Secretary shall carry out the program under paragraph 
(1), on a cost-shared basis, in cooperation with the Administrator of 
the Environmental Protection Agency and any other entities that the 
Secretary determines to be appropriate, including industry trade 
associations, industry members, and energy efficiency organizations.
    ``(d) Small Business Education and Assistance.--(1) The 
Administrator of the Small Business Administration, in consultation 
with the Secretary and the Administrator of the Environmental 
Protection Agency, shall develop and coordinate a Government-wide 
program, building on the Energy Star for Small Business Program, to 
assist small businesses in--
            ``(A) becoming more energy efficient;
            ``(B) understanding the cost savings from improved energy 
        efficiency;
            ``(C) understanding and accessing Federal procurement 
        opportunities with regard to Energy Star technologies and 
        products; and
            ``(D) identifying financing options for energy efficiency 
        upgrades.
    ``(2) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration shall make program information available to small 
business concerns directly through the district offices and resource 
partners of the Small Business Administration, including small business 
development centers, women's business centers, and the Service Corps of 
Retired Executives (SCORE), and through other Federal agencies, 
including the Federal Emergency Management Agency and the Department of 
Agriculture.
    ``(3) The Secretary, on a cost shared basis in cooperation with the 
Administrator of the Environmental Protection Agency, shall provide to 
the Small Business Administration all advertising, marketing, and other 
written materials necessary for the dissemination of information under 
paragraph (2).
    ``(4) There are authorized to be appropriated such sums as may be 
necessary to carry out this subsection, which shall remain available 
until expended.''.

SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall convene an organizational 
conference for the purpose of establishing an ongoing, self-sustaining 
national public energy education program.
    (b) Participants.--The Secretary shall invite to participate in the 
conference individuals and entities representing all aspects of energy 
production and distribution, including--
            (1) industrial firms;
            (2) professional societies;
            (3) educational organizations;
            (4) trade associations; and
            (5) governmental agencies.
    (c) Purpose, Scope, and Structure.--
            (1) Purpose.--The purpose of the conference shall be to 
        establish an ongoing, self-sustaining national public energy 
        education program to examine and recognize interrelationships 
        between energy sources in all forms, including--
                    (A) conservation and energy efficiency;
                    (B) the role of energy use in the economy; and
                    (C) the impact of energy use on the environment.
            (2) Scope and structure.--Taking into consideration the 
        purpose described in paragraph (1), the participants in the 
        conference invited under subsection (b) shall design the scope 
        and structure of the program described in subsection (a).
    (d) Technical Assistance.--The Secretary shall provide technical 
assistance and other guidance necessary to carry out the program 
described in subsection (a).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.

    (a) In General.--The Secretary shall carry out a comprehensive 
national program, including advertising and media awareness, to inform 
consumers about--
            (1) the need to reduce energy consumption during the 4-year 
        period beginning on the date of enactment of this Act;
            (2) the benefits to consumers of reducing consumption of 
        electricity, natural gas, and petroleum, particularly during 
        peak use periods;
            (3) the importance of low energy costs to economic growth 
        and preserving manufacturing jobs in the United States; and
            (4) practical, cost-effective measures that consumers can 
        take to reduce consumption of electricity, natural gas, and 
        gasoline, including--
                    (A) maintaining and repairing heating and cooling 
                ducts and equipment;
                    (B) weatherizing homes and buildings;
                    (C) purchasing energy efficient products; and
                    (D) proper tire maintenance.
    (b) Cooperation.--The program carried out under subsection (a) 
shall--
            (1) include collaborative efforts with State and local 
        government officials and the private sector; and
            (2) incorporate, to the maximum extent practicable, 
        successful State and local public education programs.
    (c) Report.--Not later than July 1, 2009, the Secretary shall 
submit to Congress a report describing the effectiveness of the program 
under this section.
    (d) Termination of Authority.--The program carried out under this 
section shall terminate on December 31, 2010.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $90,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended--
            (1) in paragraph (29)--
                    (A) in subparagraph (D)--
                            (i) in clause (i), by striking ``C78.1-
                        1978(R1984)'' and inserting ``C78.81-2003 (Data 
                        Sheet 7881-ANSI-1010-1)'';
                            (ii) in clause (ii), by striking ``C78.1-
                        1978(R1984)'' and inserting ``C78.81-2003 (Data 
                        Sheet 7881-ANSI-3007-1)''; and
                            (iii) in clause (iii), by striking ``C78.1-
                        1978(R1984)'' and inserting ``C78.81-2003 (Data 
                        Sheet 7881-ANSI-1019-1)''; and
                    (B) by adding at the end the following:
            ``(M) The term `F34T12 lamp' (also known as a `F40T12/ES 
        lamp') means a nominal 34 watt tubular fluorescent lamp that is 
        48 inches in length and 1\1/2\ inches in diameter, and conforms 
        to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1006-1).
            ``(N) The term `F96T12/ES lamp' means a nominal 60 watt 
        tubular fluorescent lamp that is 96 inches in length and 1\1/2\ 
        inches in diameter, and conforms to ANSI standard C78.81-2003 
        (Data Sheet 7881-ANSI-3006-1).
            ``(O) The term `F96T12HO/ES lamp' means a nominal 95 watt 
        tubular fluorescent lamp that is 96 inches in length and 1\1/2\ 
        inches in diameter, and conforms to ANSI standard C78.81-2003 
        (Data Sheet 7881-ANSI-1017-1).
            ``(P) The term `replacement ballast' means a ballast that--
                    ``(i) is designed for use to replace an existing 
                ballast in a previously installed luminaire;
                    ``(ii) is marked `FOR REPLACEMENT USE ONLY';
                    ``(iii) is shipped by the manufacturer in packages 
                containing not more than 10 ballasts; and
                    ``(iv) has output leads that when fully extended 
                are a total length that is less than the length of the 
                lamp with which the ballast is intended to be 
                operated.'';
            (2) in paragraph (30)(S)--
                    (A) by inserting ``(i)'' before ``The term''; and
                    (B) by adding at the end the following:
                    ``(ii) The term ``medium base compact fluorescent 
                lamp'' does not include--
                            ``(I) any lamp that is--
                                    ``(aa) specifically designed to be 
                                used for special purpose applications; 
                                and
                                    ``(bb) unlikely to be used in 
                                general purpose applications, such as 
                                the applications described in 
                                subparagraph (D); or
                            ``(II) any lamp not described in 
                        subparagraph (D) that is excluded by the 
                        Secretary, by rule, because the lamp is--
                                    ``(aa) designed for special 
                                applications; and
                                    ``(bb) unlikely to be used in 
                                general purpose applications.''; and
            (3) by adding at the end the following:
            ``(32) The term `battery charger' means a device that 
        charges batteries for consumer products, including battery 
        chargers embedded in other consumer products.
            ``(33)(A) The term `commercial prerinse spray valve' means 
        a handheld device designed and marketed for use with commercial 
        dishwashing and ware washing equipment that sprays water on 
        dishes, flatware, and other food service items for the purpose 
        of removing food residue before cleaning the items.
            ``(B) The Secretary may modify the definition of 
        `commercial prerinse spray valve' by rule--
                    ``(i) to include products--
                            ``(I) that are extensively used in 
                        conjunction with commercial dishwashing and 
                        ware washing equipment;
                            ``(II) the application of standards to 
                        which would result in significant energy 
                        savings; and
                            ``(III) the application of standards to 
                        which would meet the criteria specified in 
                        section 325(o)(4); and
                    ``(ii) to exclude products--
                            ``(I) that are used for special food 
                        service applications;
                            ``(II) that are unlikely to be widely used 
                        in conjunction with commercial dishwashing and 
                        ware washing equipment; and
                            ``(III) the application of standards to 
                        which would not result in significant energy 
                        savings.
            ``(34) The term `dehumidifier' means a self-contained, 
        electrically operated, and mechanically encased assembly 
        consisting of--
                    ``(A) a refrigerated surface (evaporator) that 
                condenses moisture from the atmosphere;
                    ``(B) a refrigerating system, including an electric 
                motor;
                    ``(C) an air-circulating fan; and
                    ``(D) means for collecting or disposing of the 
                condensate.
            ``(35)(A) The term `distribution transformer' means a 
        transformer that--
                    ``(i) has an input voltage of 34.5 kilovolts or 
                less;
                    ``(ii) has an output voltage of 600 volts or less; 
                and
                    ``(iii) is rated for operation at a frequency of 60 
                Hertz.
            ``(B) The term `distribution transformer' does not 
        include--
                    ``(i) a transformer with multiple voltage taps, the 
                highest of which equals at least 20 percent more than 
                the lowest;
                    ``(ii) a transformer that is designed to be used in 
                a special purpose application and is unlikely to be 
                used in general purpose applications, such as a drive 
                transformer, rectifier transformer, auto-transformer, 
                Uninterruptible Power System transformer, impedance 
                transformer, regulating transformer, sealed and 
                nonventilating transformer, machine tool transformer, 
                welding transformer, grounding transformer, or testing 
                transformer; or
                    ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because--
                            ``(I) the transformer is designed for a 
                        special application;
                            ``(II) the transformer is unlikely to be 
                        used in general purpose applications; and
                            ``(III) the application of standards to the 
                        transformer would not result in significant 
                        energy savings.
            ``(36) The term `external power supply' means an external 
        power supply circuit that is used to convert household electric 
        current into DC current or lower-voltage AC current to operate 
        a consumer product.
            ``(37) The term `illuminated exit sign' means a sign that--
                    ``(A) is designed to be permanently fixed in place 
                to identify an exit; and
                    ``(B) consists of an electrically powered integral 
                light source that--
                            ``(i) illuminates the legend `EXIT' and any 
                        directional indicators; and
                            ``(ii) provides contrast between the 
                        legend, any directional indicators, and the 
                        background.
            ``(38) The term `low-voltage dry-type distribution 
        transformer' means a distribution transformer that--
                    ``(A) has an input voltage of 600 volts or less;
                    ``(B) is air-cooled; and
                    ``(C) does not use oil as a coolant.
            ``(39) The term `pedestrian module' means a light signal 
        used to convey movement information to pedestrians.
            ``(40) The term `refrigerated bottled or canned beverage 
        vending machine' means a commercial refrigerator that cools 
        bottled or canned beverages and dispenses the bottled or canned 
        beverages on payment.
            ``(41) The term `standby mode' means the lowest power 
        consumption mode, as established on an individual product basis 
        by the Secretary, that--
                    ``(A) cannot be switched off or influenced by the 
                user; and
                    ``(B) may persist for an indefinite time when an 
                appliance is--
                            ``(i) connected to the main electricity 
                        supply; and
                            ``(ii) used in accordance with the 
                        instructions of the manufacturer.
            ``(42) The term `torchiere' means a portable electric lamp 
        with a reflector bowl that directs light upward to give 
        indirect illumination.
            ``(43) The term `traffic signal module' means a standard 8-
        inch (200mm) or 12-inch (300mm) traffic signal indication 
        that--
                    ``(A) consists of a light source, a lens, and all 
                other parts necessary for operation; and
                    ``(B) communicates movement messages to drivers 
                through red, amber, and green colors.
            ``(44) The term `transformer' means a device consisting of 
        2 or more coils of insulated wire that transfers alternating 
        current by electromagnetic induction from 1 coil to another to 
        change the original voltage or current value.
            ``(45)(A) The term `unit heater' means a self-contained 
        fan-type heater designed to be installed within the heated 
        space.
            ``(B) The term `unit heater' does not include a warm air 
        furnace.
            ``(46)(A) The term `high intensity discharge lamp' means an 
        electric-discharge lamp in which--
                    ``(i) the light-producing arc is stabilized by bulb 
                wall temperature; and
                    ``(ii) the arc tube has a bulb wall loading in 
                excess of 3 Watts/cm<SUP>2</SUP>.
            ``(B) The term `high intensity discharge lamp' includes 
        mercury vapor, metal halide, and high-pressure sodium lamps 
        described in subparagraph (A).
            ``(47)(A) The term `mercury vapor lamp' means a high 
        intensity discharge lamp in which the major portion of the 
        light is produced by radiation from mercury operating at a 
        partial pressure in excess of 100,000 Pa (approximately 1 atm).
            ``(B) The term `mercury vapor lamp' includes clear, 
        phosphor-coated, and self-ballasted lamps described in 
        subparagraph (A).
            ``(48) The term `mercury vapor lamp ballast' means a device 
        that is designed and marketed to start and operate mercury 
        vapor lamps by providing the necessary voltage and current.''.
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
            (1) in subsection (b), by adding at the end the following:
    ``(9) Test procedures for illuminated exit signs shall be based on 
the test method used under version 2.0 of the Energy Star program of 
the Environmental Protection Agency for illuminated exit signs.
    ``(10)(A) Test procedures for distribution transformers and low 
voltage dry-type distribution transformers shall be based on the 
`Standard Test Method for Measuring the Energy Consumption of 
Distribution Transformers' prescribed by the National Electrical 
Manufacturers Association (NEMA TP 2-1998).
    ``(B) The Secretary may review and revise the test procedures 
established under subparagraph (A).
    ``(C) For purposes of section 346(a), the test procedures 
established under subparagraph (A) shall be considered to be the 
testing requirements prescribed by the Secretary under section 
346(a)(1) for distribution transformers for which the Secretary makes a 
determination that energy conservation standards would--
            ``(i) be technologically feasible and economically 
        justified; and
            ``(ii) result in significant energy savings.
    ``(11) Test procedures for traffic signal modules and pedestrian 
modules shall be based on the test method used under the Energy Star 
program of the Environmental Protection Agency for traffic signal 
modules, as in effect on the date of enactment of this paragraph.
    ``(12)(A) Test procedures for medium base compact fluorescent lamps 
shall be based on the test methods for compact fluorescent lamps used 
under the August 9, 2001, version of the Energy Star program of the 
Environmental Protection Agency and the Department of Energy.
    ``(B) Except as provided in subparagraph (C), medium base compact 
fluorescent lamps shall meet all test requirements for regulated 
parameters of section 325(cc).
    ``(C) Notwithstanding subparagraph (B), if manufacturers document 
engineering predictions and analysis that support expected attainment 
of lumen maintenance at 40 percent rated life and lamp lifetime, medium 
base compact fluorescent lamps may be marketed before completion of the 
testing of lamp life and lumen maintenance at 40 percent of rated life.
    ``(13) Test procedures for dehumidifiers shall be based on the test 
criteria used under the Energy Star Program Requirements for 
Dehumidifiers developed by the Environmental Protection Agency, as in 
effect on the date of enactment of this paragraph unless revised by the 
Secretary pursuant to this section.
    ``(14) The test procedure for measuring flow rate for commercial 
prerinse spray valves shall be based on American Society for Testing 
and Materials Standard F2324, entitled `Standard Test Method for Pre-
Rinse Spray Valves.'
    ``(15) The test procedure for refrigerated bottled or canned 
beverage vending machines shall be based on American National Standards 
Institute/American Society of Heating, Refrigerating and Air-
Conditioning Engineers Standard 32.1-2004, entitled `Methods of Testing 
for Rating Vending Machines for Bottled, Canned or Other Sealed 
Beverages'.''; and
            (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--(1) Not later 
than 2 years after the date of enactment of this subsection, the 
Secretary shall prescribe testing requirements for--
            ``(A) suspended ceiling fans; and
            ``(B) refrigerated bottled or canned beverage vending 
        machines.
    ``(2) To the maximum extent practicable, the testing requirements 
prescribed under paragraph (1) shall be based on existing test 
procedures used in industry.''.
    (c) Standard Setting Authority.--Section 325 of the Energy Policy 
and Conservation Act (42 U.S.C. 6295) is amended--
            (1) in subsection (f)(3), by adding at the end the 
        following:
    ``(D) Notwithstanding any other provision of this Act, if the 
requirements of subsection (o) are met, the Secretary may consider and 
prescribe energy conservation standards or energy use standards for 
electricity used for purposes of circulating air through duct work.'';
            (2) in subsection (g)--
                    (A) in paragraph (6)(B), by inserting ``and 
                labeled'' after ``designed''; and
                    (B) by adding at the end the following:
    ``(8)(A) Each fluorescent lamp ballast (other than replacement 
ballasts or ballasts described in subparagraph (C))--
            ``(i)(I) manufactured on or after July 1, 2009;
            ``(II) sold by the manufacturer on or after October 1, 
        2009; or
            ``(III) incorporated into a luminaire by a luminaire 
        manufacturer on or after July 1, 2010; and
            ``(ii) designed--
                    ``(I) to operate at nominal input voltages of 120 
                or 277 volts;
                    ``(II) to operate with an input current frequency 
                of 60 Hertz; and
                    ``(III) for use in connection with F34T12 lamps, 
                F96T12/ES lamps, or F96T12HO/ES lamps;
shall have a power factor of 0.90 or greater and shall have a ballast 
efficacy factor of not less than the following:

      

           ...................  Total
           Ballast              nominal            Ballast
           input                lamp               efficacy
Applicati  voltage              watts              factor
 on for
 operatio
 n of
 
One        120/277              34                 2.61
 F34T12
 lamp
Two        120/277              68                 1.35
 F34T12
 lamps
Two F96    120/277              120                0.77
 T12/ES
 lamps
Two F96    120/277              190                0.42
 T12HO/ES
 lamps
 

    ``(B) The standards described in subparagraph (A) shall apply to 
all ballasts covered by subparagraph (A)(ii) that are manufactured on 
or after July 1, 2010, or sold by the manufacturer on or after October 
1, 2010.
    ``(C) The standards described in subparagraphs (A) and (B) do not 
apply to--
            ``(i) a ballast that is designed for dimming to 50 percent 
        or less of the maximum output of the ballast;
            ``(ii) a ballast that is designed for use with 2 F96T12HO 
        lamps at ambient temperatures of 20 deg.F or less and for use 
        in an outdoor sign; or
            ``(iii) a ballast that has a power factor of less than 0.90 
        and is designed and labeled for use only in residential 
        applications.'';
            (3) in subsection (o), by adding at the end the following:
    ``(5) The Secretary may set more than 1 energy conservation 
standard for products that serve more than 1 major function by setting 
1 energy conservation standard for each major function.'';
            (4) in the first sentence of subsection (p), by striking 
        ``Any'' and inserting the following: ``Except as provided in 
        subsection (u), any''; and
            (5) by adding at the end the following:
    ``(u) Special Rulemaking Procedures.--(1) Notwithstanding any other 
provision of law, the Secretary may publish a notice of direct final 
rulemaking based on an energy conservation standard recommended by an 
interested person, if--
            ``(A) in response to an advance notice of proposed 
        rulemaking under paragraph (p), the interested person 
        (including a representative of a manufacturer of a covered 
        product, a conservation advocate, or consumer) submits a joint 
        comment recommending an energy conservation standard; and
            ``(B) the Secretary determines that the energy conservation 
        standard complies with the substantive provisions of this Act 
        that apply to the type (or class) of covered products to which 
        the rule may apply.
    ``(2) The Secretary shall publish a notice of direct final 
rulemaking under paragraph (1) with a notice of proposed rulemaking 
incorporating by reference the regulatory language of the direct final 
rule that provides for an effective date not earlier than 90 days after 
the date of publication.
    ``(3) The Secretary may withdraw a direct final rule published 
under paragraph (2) before the effective date of the rule if an 
interested person files a significant adverse comment in response to 
the related notice of proposed rulemaking.
    ``(v) Battery Charger and External Power Supply Electric Energy 
Consumption.--(1)(A) Not later than 18 months after the date of 
enactment of this subsection, the Secretary shall, after providing 
notice and an opportunity for comment, prescribe, by rule, definitions 
and test procedures for the power use of battery chargers and external 
power supplies.
    ``(B) In establishing the test procedures under subparagraph (A), 
the Secretary shall--
            ``(i) consider existing definitions and test procedures 
        used for measuring energy consumption in standby mode and other 
        modes; and
            ``(ii) assess the current and projected future market for 
        battery chargers and external power supplies.
    ``(C) The assessment under subparagraph (B)(ii) shall include--
            ``(i) estimates of the significance of potential energy 
        savings from technical improvements to battery chargers and 
        external power supplies; and
            ``(ii) suggested product classes for energy conservation 
        standards.
    ``(D) Not later than 18 months after the date of enactment of this 
subsection, the Secretary shall hold a scoping workshop to discuss and 
receive comments on plans for developing energy conservation standards 
for energy use for battery chargers and external power supplies.
    ``(E)(i) Not later than 3 years after the date of enactment of this 
subsection, the Secretary shall issue a final rule that determines 
whether energy conservation standards shall be issued for battery 
chargers and external power supplies or classes of battery chargers and 
external power supplies.
    ``(ii) For each product class, any energy conservation standards 
issued under clause (i) shall be set at the lowest level of energy use 
that--
            ``(I) meets the criteria and procedures of subsections (o), 
        (p), (q), (r), (s), and (t); and
            ``(II) would result in significant overall annual energy 
        savings, considering standby mode and other operating modes.
    ``(2) In determining under section 323 whether test procedures and 
energy conservation standards under this section should be revised with 
respect to covered products that are major sources of standby mode 
energy consumption, the Secretary shall consider whether to incorporate 
standby mode into the test procedures and energy conservation 
standards, taking into account standby mode power consumption compared 
to overall product energy consumption.
    ``(3) The Secretary shall not propose an energy conservation 
standard under this section, unless the Secretary has issued applicable 
test procedures for each product under section 323.
    ``(4) Any energy conservation standard issued under this subsection 
shall be applicable to products manufactured or imported beginning on 
the date that is 3 years after the date of issuance.
    ``(5) The Secretary and the Administrator shall collaborate and 
develop programs (including programs under section 324A and other 
voluntary industry agreements or codes of conduct) that are designed to 
reduce standby mode energy use.
    ``(w) Suspended Ceiling Fans and Refrigerated Beverage Vending 
Machines.--(1) Not later than 4 years after the date of enactment of 
this subsection, the Secretary shall prescribe, by rule, energy 
conservation standards for--
            ``(A) suspended ceiling fans; and
            ``(B) refrigerated bottled or canned beverage vending 
        machines.
    ``(2) In establishing energy conservation standards under this 
subsection, the Secretary shall use the criteria and procedures 
prescribed under subsections (o) and (p).
    ``(3) Any energy conservation standard prescribed under this 
subsection shall apply to products manufactured 3 years after the date 
of publication of a final rule establishing the energy conservation 
standard.
    ``(x) Illuminated Exit Signs.--An illuminated exit sign 
manufactured on or after January 1, 2006, shall meet the version 2.0 
Energy Star Program performance requirements for illuminated exit signs 
prescribed by the Environmental Protection Agency.
    ``(y) Torchieres.--A torchiere manufactured on or after January 1, 
2006--
            ``(1) shall consume not more than 190 watts of power; and
            ``(2) shall not be capable of operating with lamps that 
        total more than 190 watts.
    ``(z) Low Voltage Dry-Type Distribution Transformers.--The 
efficiency of a low voltage dry-type distribution transformer 
manufactured on or after January 1, 2007, shall be the Class I 
Efficiency Levels for distribution transformers specified in table 4-2 
of the `Guide for Determining Energy Efficiency for Distribution 
Transformers' published by the National Electrical Manufacturers 
Association (NEMA TP-1-2002).
    ``(aa) Traffic Signal Modules and Pedestrian Modules.--Any traffic 
signal module or pedestrian module manufactured on or after January 1, 
2006, shall--
            ``(1) meet the performance requirements used under the 
        Energy Star program of the Environmental Protection Agency for 
        traffic signals, as in effect on the date of enactment of this 
        subsection; and
            ``(2) be installed with compatible, electrically connected 
        signal control interface devices and conflict monitoring 
        systems.
    ``(bb) Unit Heaters.--A unit heater manufactured on or after the 
date that is 3 years after the date of enactment of this subsection 
shall--
            ``(1) be equipped with an intermittent ignition device; and
            ``(2) have power venting or an automatic flue damper.
    ``(cc) Medium Base Compact Fluorescent Lamps.--(1) A bare lamp and 
covered lamp (no reflector) medium base compact fluorescent lamp 
manufactured on or after January 1, 2006, shall meet the following 
requirements prescribed by the August 9, 2001, version of the Energy 
Star Program Requirements for Compact Fluorescent Lamps, Energy Star 
Eligibility Criteria, Energy-Efficiency Specification issued by the 
Environmental Protection Agency and Department of Energy:
            ``(A) Minimum initial efficacy.
            ``(B) Lumen maintenance at 1000 hours.
            ``(C) Lumen maintenance at 40 percent of rated life.
            ``(D) Rapid cycle stress test.
            ``(E) Lamp life.
    ``(2) The Secretary may, by rule, establish requirements for color 
quality (CRI), power factor, operating frequency, and maximum allowable 
start time based on the requirements prescribed by the August 9, 2001, 
version of the Energy Star Program Requirements for Compact Fluorescent 
Lamps.
    ``(3) The Secretary may, by rule--
            ``(A) revise the requirements established under paragraph 
        (2); or
            ``(B) establish other requirements, after considering 
        energy savings, cost effectiveness, and consumer satisfaction.
    ``(dd) Dehumidifiers.--(1) Dehumidifiers manufactured on or after 
October 1, 2007, shall have an Energy Factor that meets or exceeds the 
following values:

``Product Capacity (pints/day):      Minimum Energy Factor (Liters/kWh)
    25.00 or less.................................                1.00 
    25.01 - 35.00.................................                1.20 
    35.01 - 54.00.................................                1.30 
    54.01 - 74.99.................................                1.50 
    75.00 or more.................................                2.25.
    ``(2)(A) Not later than October 1, 2009, the Secretary shall 
publish a final rule in accordance with subsections (o) and (p), to 
determine whether the energy conservation standards established under 
paragraph (1) should be amended.
    ``(B) The final rule published under subparagraph (A) shall--
            ``(i) contain any amendment by the Secretary; and
            ``(ii) provide that the amendment applies to products 
        manufactured on or after October 1, 2012.
    ``(C) If the Secretary does not publish an amendment that takes 
effect by October 1, 2012, dehumidifiers manufactured on or after 
October 1, 2012, shall have an Energy Factor that meets or exceeds the 
following values:

``Product Capacity (pints/day):      Minimum Energy Factor (Liters/kWh)
    25.00 or less.................................                1.20 
    25.01 - 35.00.................................                1.30 
    35.01 - 45.00.................................                1.40 
    45.01 - 54.00.................................                1.50 
    54.01 - 74.99.................................                1.60 
    75.00 or more.................................                 2.5.
    ``(ee) Commercial Prerinse Spray Valves.--Commercial prerinse spray 
valves manufactured on or after January 1, 2006, shall have a flow rate 
of not more than 1.6 gallons per minute.
    ``(ff) Mercury vapor lamp ballasts.--Mercury vapor lamp ballasts 
shall not be manufactured or imported after January 1, 2008.
    ``(gg) Application Date.--Section 327 applies--
            ``(1) to products for which energy conservation standards 
        are to be established under subsection (l), (u), (v), or (w) 
        beginning on the date on which a final rule is issued by the 
        Secretary, except that any State or local standard prescribed 
        or enacted for the product before the date on which the final 
        rule is issued shall not be preempted until the energy 
        conservation standard established under subsection (l),(u), 
        (v), or (w) for the product takes effect; and
            ``(2) to products for which energy conservation standards 
        are established under subsections (x) through (ff) on the date 
        of enactment of those subsections, except that any State or 
        local standard prescribed or enacted before the date of 
        enactment of those subsections shall not be preempted until the 
        energy conservation standards established under subsections (x) 
        through (ff) take effect.''.
    (d) General Rule of Preemption.--Section 327(c) of the Energy 
Policy and Conservation Act (42 U.S.C. 6297(c)) is amended--
            (1) in paragraph (5), by striking ``or'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(7)(A) is a regulation concerning standards for 
        commercial prerinse spray valves adopted by the California 
        Energy Commission before January 1, 2005; or
            ``(B) is an amendment to a regulation described in 
        subparagraph (A) that was developed to align California 
        regulations with changes in American Society for Testing and 
        Materials Standard F2324;
            ``(8)(A) is a regulation concerning standards for 
        pedestrian modules adopted by the California Energy Commission 
        before January 1, 2005; or
            ``(B) is an amendment to a regulation described in 
        subparagraph (A) that was developed to align California 
        regulations to changes in the Institute for Transportation 
        Engineers standards, entitled `Performance Specification: 
        Pedestrian Traffic Control Signal Indications'.''.

SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.

    (a) Definitions.--Section 340 of the Energy Policy and Conservation 
Act (42 U.S.C. 6311) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (D) through (G) 
                as subparagraphs (H) through (K), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) Very large commercial package air 
                conditioning and heating equipment.
                    ``(E) Commercial refrigerators, freezers, and 
                refrigerator-freezers.
                    ``(F) Automatic commercial ice makers.
                    ``(G) Commercial clothes washers.'';
            (2) in paragraph (2)(B), by striking ``small and large 
        commercial package air conditioning and heating equipment'' and 
        inserting ``commercial package air conditioning and heating 
        equipment, commercial refrigerators, freezers, and 
        refrigerator-freezers, automatic commercial ice makers, 
        commercial clothes washers'';
            (3) by striking paragraphs (8) and (9) and inserting the 
        following:
            ``(8)(A) The term `commercial package air conditioning and 
        heating equipment' means air-cooled, water-cooled, 
        evaporatively-cooled, or water source (not including ground 
        water source) electrically operated, unitary central air 
        conditioners and central air conditioning heat pumps for 
        commercial application.
            ``(B) The term `small commercial package air conditioning 
        and heating equipment' means commercial package air 
        conditioning and heating equipment that is rated below 135,000 
        Btu per hour (cooling capacity).
            ``(C) The term `large commercial package air conditioning 
        and heating equipment' means commercial package air 
        conditioning and heating equipment that is rated--
                    ``(i) at or above 135,000 Btu per hour; and
                    ``(ii) below 240,000 Btu per hour (cooling 
                capacity).
            ``(D) The term `very large commercial package air 
        conditioning and heating equipment' means commercial package 
        air conditioning and heating equipment that is rated--
                    ``(i) at or above 240,000 Btu per hour; and
                    ``(ii) below 760,000 Btu per hour (cooling 
                capacity).
            ``(9)(A) The term `commercial refrigerator, freezer, and 
        refrigerator-freezer' means refrigeration equipment that--
                    ``(i) is not a consumer product (as defined in 
                section 321);
                    ``(ii) is not designed and marketed exclusively for 
                medical, scientific, or research purposes;
                    ``(iii) operates at a chilled, frozen, combination 
                chilled and frozen, or variable temperature;
                    ``(iv) displays or stores merchandise and other 
                perishable materials horizontally, semivertically, or 
                vertically;
                    ``(v) has transparent or solid doors, sliding or 
                hinged doors, a combination of hinged, sliding, 
                transparent, or solid doors, or no doors;
                    ``(vi) is designed for pull-down temperature 
                applications or holding temperature applications; and
                    ``(vii) is connected to a self-contained condensing 
                unit or to a remote condensing unit.
            ``(B) The term `holding temperature application' means a 
        use of commercial refrigeration equipment other than a pull-
        down temperature application, except a blast chiller or 
        freezer.
            ``(C) The term `integrated average temperature' means the 
        average temperature of all test package measurements taken 
        during the test.
            ``(D) The term `pull-down temperature application' means a 
        commercial refrigerator with doors that, when fully loaded with 
        12 ounce beverage cans at 90 degrees F, can cool those 
        beverages to an average stable temperature of 38 degrees F in 
        12 hours or less.
            ``(E) The term `remote condensing unit' means a factory-
        made assembly of refrigerating components designed to compress 
        and liquefy a specific refrigerant that is remotely located 
        from the refrigerated equipment and consists of 1 or more 
        refrigerant compressors, refrigerant condensers, condenser fans 
        and motors, and factory supplied accessories.
            ``(F) The term `self-contained condensing unit' means a 
        factory-made assembly of refrigerating components designed to 
        compress and liquefy a specific refrigerant that is an integral 
        part of the refrigerated equipment and consists of 1 or more 
        refrigerant compressors, refrigerant condensers, condenser fans 
        and motors, and factory supplied accessories.''; and
            (4) by adding at the end the following:
            ``(19) The term `automatic commercial ice maker' means a 
        factory-made assembly (not necessarily shipped in 1 package) 
        that--
                    ``(A) consists of a condensing unit and ice-making 
                section operating as an integrated unit, with means for 
                making and harvesting ice; and
                    ``(B) may include means for storing ice, dispensing 
                ice, or storing and dispensing ice.
            ``(20) The term `commercial clothes washer' means a soft-
        mount front-loading or soft-mount top-loading clothes washer 
        that--
                    ``(A) has a clothes container compartment that--
                            ``(i) for horizontal-axis clothes washers, 
                        is not more than 3.5 cubic feet ; and
                            ``(ii) for vertical-axis clothes washers, 
                        is not more than 4.0 cubic feet; and
                    ``(B) is designed for use in--
                            ``(i) applications in which the occupants 
                        of more than 1 household will be using the 
                        clothes washer, such as multi-family housing 
                        common areas and coin laundries; or
                            ``(ii) other commercial applications.
            ``(21) The term `harvest rate' means the amount of ice (at 
        32 degrees F) in pounds produced per 24 hours.''.
    (b) Standards for Commercial Package Air Conditioning and Heating 
Equipment.--Section 342(a) of the Energy Policy and Conservation Act 
(42 U.S.C. 6313(a)) is amended--
            (1) in the subsection heading, by striking ``Small and 
        Large'' and inserting ``Small, Large, and Very Large'';
            (2) in paragraph (1), by inserting ``but before January 1, 
        2010,'' after ``January 1, 1994,'';
            (3) in paragraph (2), by inserting ``but before January 1, 
        2010,'' after ``January 1, 1995,''; and
            (4) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``(i)'' after ``(A)'';
                            (ii) by striking ``the date of enactment of 
                        the Energy Policy Act of 1992'' and inserting 
                        ``January 1, 2010'';
                            (iii) by inserting after ``large commercial 
                        package air conditioning and heating 
                        equipment,'' the following: ``and very large 
                        commercial package air conditioning and heating 
                        equipment, or if ASHRAE/IES Standard 90.1, as 
                        in effect on October 24, 1992, is amended with 
                        respect to any''; and
                            (iv) by adding at the end the following:
    ``(ii) If ASHRAE/IES Standard 90.1 is not amended with respect to 
small commercial package air conditioning and heating equipment, large 
commercial package air conditioning and heating equipment, and very 
large commercial package air conditioning and heating equipment during 
the 5-year period beginning on the effective date of a standard, the 
Secretary may initiate a rulemaking to determine whether a more 
stringent standard--
            ``(I) would result in significant additional conservation 
        of energy; and
            ``(II) is technologically feasible and economically 
        justified.''; and
                    (B) in subparagraph (C)(ii), by inserting ``and 
                very large commercial package air conditioning and 
                heating equipment'' after ``large commercial package 
                air conditioning and heating equipment''; and
            (5) by adding at the end the following:
    ``(7) Small commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet the 
following standards:
            ``(A) The minimum energy efficiency ratio of air-cooled 
        central air conditioners at or above 65,000 Btu per hour 
        (cooling capacity) and less than 135,000 Btu per hour (cooling 
        capacity) shall be--
                    ``(i) 11.2 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 11.0 for equipment with all other heating 
                system types that are integrated into the equipment (at 
                a standard rating of 95 degrees F db).
            ``(B) The minimum energy efficiency ratio of air-cooled 
        central air conditioner heat pumps at or above 65,000 Btu per 
        hour (cooling capacity) and less than 135,000 Btu per hour 
        (cooling capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.8 for equipment with all other heating 
                system types that are integrated into the equipment (at 
                a standard rating of 95 degrees F db).
            ``(C) The minimum coefficient of performance in the heating 
        mode of air-cooled central air conditioning heat pumps at or 
        above 65,000 Btu per hour (cooling capacity) and less than 
        135,000 Btu per hour (cooling capacity) shall be 3.3 (at a high 
        temperature rating of 47 degrees F db).
    ``(8) Large commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet the 
following standards:
            ``(A) The minimum energy efficiency ratio of air-cooled 
        central air conditioners at or above 135,000 Btu per hour 
        (cooling capacity) and less than 240,000 Btu per hour (cooling 
        capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.8 for equipment with all other heating 
                system types that are integrated into the equipment (at 
                a standard rating of 95 degrees F db).
            ``(B) The minimum energy efficiency ratio of air-cooled 
        central air conditioner heat pumps at or above 135,000 Btu per 
        hour (cooling capacity) and less than 240,000 Btu per hour 
        (cooling capacity) shall be--
                    ``(i) 10.6 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.4 for equipment with all other heating 
                system types that are integrated into the equipment (at 
                a standard rating of 95 degrees F db).
            ``(C) The minimum coefficient of performance in the heating 
        mode of air-cooled central air conditioning heat pumps at or 
        above 135,000 Btu per hour (cooling capacity) and less than 
        240,000 Btu per hour (cooling capacity) shall be 3.2 (at a high 
        temperature rating of 47 degrees F db).
    ``(9) Very large commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet the 
following standards:
            ``(A) The minimum energy efficiency ratio of air-cooled 
        central air conditioners at or above 240,000 Btu per hour 
        (cooling capacity) and less than 760,000 Btu per hour (cooling 
        capacity) shall be--
                    ``(i) 10.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 9.8 for equipment with all other heating 
                system types that are integrated into the equipment (at 
                a standard rating of 95 degrees F db).
            ``(B) The minimum energy efficiency ratio of air-cooled 
        central air conditioner heat pumps at or above 240,000 Btu per 
        hour (cooling capacity) and less than 760,000 Btu per hour 
        (cooling capacity) shall be--
                    ``(i) 9.5 for equipment with no heating or electric 
                resistance heating; and
                    ``(ii) 9.3 for equipment with all other heating 
                system types that are integrated into the equipment (at 
                a standard rating of 95 degrees F db).
            ``(C) The minimum coefficient of performance in the heating 
        mode of air-cooled central air conditioning heat pumps at or 
        above 240,000 Btu per hour (cooling capacity) and less than 
        760,000 Btu per hour (cooling capacity) shall be 3.2 (at a high 
        temperature rating of 47 degrees F db).''.
    (c) Standards for Commercial Refrigerators, Freezers, and 
Refrigerator-Freezers.--Section 342 of the Energy Policy and 
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the 
following:
    ``(c) Commercial Refrigerators, Freezers, and Refrigerator-
freezers.--(1) In this subsection:
            ``(A) The term `AV' means the adjusted volume 
        (ft<SUP>3</SUP>) (defined as 1.63 x frozen temperature 
        compartment volume (ft<SUP>3</SUP>) + chilled temperature 
        compartment volume (ft<SUP>3</SUP>)) with compartment volumes 
        measured in accordance with the Association of Home Appliance 
        Manufacturers Standard HRF1-1979.
            ``(B) The term `V' means the chilled or frozen compartment 
        volume (ft<SUP>3</SUP>) (as defined in the Association of Home 
        Appliance Manufacturers Standard HRF1-1979).
            ``(C) Other terms have such meanings as may be established 
        by the Secretary, based on industry-accepted definitions and 
        practice.
    ``(2) Each commercial refrigerator, freezer, and refrigerator-
freezer with a self-contained condensing unit designed for holding 
temperature applications manufactured on or after January 1, 2010, 
shall have a daily energy consumption (in kilowatt hours per day) that 
does not exceed the following:

 
 
 
  ``Refrigerators with solid doors  0.10 V + 2.04
  Refrigerators with transparent    0.12 V + 3.34
   doors.
  Freezers with solid doors.......  0.40 V + 1.38
  Freezers with transparent doors.  0.75 V + 4.10
  Refrigerators/freezers with       0.27 AV - 0.71 or 0.70.
   solid doors the greater of.

    ``(3) Each commercial refrigerator with a self-contained condensing 
unit designed for pull-down temperature applications and transparent 
doors manufactured on or after January 1, 2010, shall have a daily 
energy consumption (in kilowatt hours per day) of not more than 0.126 V 
+ 3.51.
    ``(4)(A) Not later than January 1, 2009, the Secretary shall issue, 
by rule, standard levels for ice-cream freezers, self-contained 
commercial refrigerators, freezers, and refrigerator-freezers without 
doors, and remote condensing commercial refrigerators, freezers, and 
refrigerator-freezers, with the standard levels effective for equipment 
manufactured on or after January 1, 2012.
    ``(B) The Secretary may issue, by rule, standard levels for other 
types of commercial refrigerators, freezers, and refrigerator-freezers 
not covered by paragraph (2)(A) with the standard levels effective for 
equipment manufactured 3 or more years after the date on which the 
final rule is published.
    ``(5)(A) Not later than January 1, 2013, the Secretary shall issue 
a final rule to determine whether the standards established under this 
subsection should be amended.
    ``(B) Not later than 3 years after the effective date of any 
amended standards under subparagraph (A) or the publication of a final 
rule determining that the standards should not be amended, the 
Secretary shall issue a final rule to determine whether the standards 
established under this subsection or the amended standards, as 
applicable, should be amended.
    ``(C) If the Secretary issues a final rule under subparagraph (A) 
or (B) establishing amended standards, the final rule shall provide 
that the amended standards apply to products manufactured on or after 
the date that is--
            ``(i) 3 years after the date on which the final amended 
        standard is published; or
            ``(ii) if the Secretary determines, by rule, that 3 years 
        is inadequate, not later than 5 years after the date on which 
        the final rule is published.''.
    (d) Standards for Automatic Commercial Ice Makers.--Section 342 of 
the Energy Policy and Conservation Act (42 U.S.C. 6313) (as amended by 
subsection (c)) is amended by adding at the end the following:
    ``(d) Automatic Commercial Ice Makers.--(1) Each automatic 
commercial ice maker that produces cube type ice with capacities 
between 50 and 2500 pounds per 24-hour period when tested according to 
the test standard established in section 343(a)(7) and is manufactured 
on or after January 1, 2010, shall meet the following standard levels:
      

------------------------------------------------------------------------
                                           Harvest   Maximum    Maximum
                                            Rate     Energy    Condenser
        Equipment Type           Type of  (lbs ice/ Use (kWh/  Water Use
                                 Cooling     24      100 lbs   (gal/100
                                           hours)     Ice)     lbs Ice)
------------------------------------------------------------------------
Ice Making Head                 Water     <500      7.80-0.0  200-0.022H
                                                     055H
                                         -------------------------------
                                          500 and   5.58-0.0  200-0.022H
                                           <1436     011H
                                         -------------------------------
                                          1436      4.0       200-0.022H
------------------------------------------------------------------------
Ice Making Head                 Air       <450      10.26-0.  Not
                                                     0086H     Applicabl
                                                               e
                                         -------------------------------
                                          450       6.89-0.0  Not
                                                     011H      Applicabl
                                                               e
------------------------------------------------------------------------
Remote Condensing               Air       <1000     8.85-0.0  Not
(but not remote                                      038H      Applicabl
compressor)                                                    e
                                         -------------------------------
                                          1000      5.10      Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
Remote Condensing               Air       <934      8.85-0.0  Not
and Remote                                           038H      Applicabl
Compressor                                                     e
                                         -------------------------------
                                          934       5.3       Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
Self Contained                  Water     <200      11.40-0.  191-0.0315
                                                     019H      H
                                         -------------------------------
                                          200       7.60      191-0.0315
                                                               H
------------------------------------------------------------------------
Self Contained                  Air       <175      18.0-0.0  Not
                                                     469H      Applicabl
                                                               e
                                         -------------------------------
                                          175       9.80      Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water
  used to make ice.

    ``(2)(A) The Secretary may issue, by rule, standard levels for 
types of automatic commercial ice makers that are not covered by 
paragraph (1).
    ``(B) The standards established under subparagraph (A) shall apply 
to products manufactured on or after the date that is--
            ``(i) 3 years after the date on which the rule is published 
        under subparagraph (A); or
            ``(ii) if the Secretary determines, by rule, that 3 years 
        is inadequate, not later than 5 years after the date on which 
        the final rule is published.
    ``(3)(A) Not later than January 1, 2015, with respect to the 
standards established under paragraph (1), and, with respect to the 
standards established under paragraph (2), not later than 5 years after 
the date on which the standards take effect, the Secretary shall issue 
a final rule to determine whether amending the applicable standards is 
technologically feasible and economically justified.
    ``(B) Not later than 5 years after the effective date of any 
amended standards under subparagraph (A) or the publication of a final 
rule determining that amending the standards is not technologically 
feasible or economically justified, the Secretary shall issue a final 
rule to determine whether amending the standards established under 
paragraph (1) or the amended standards, as applicable, is 
technologically feasible or economically justified.
    ``(C) If the Secretary issues a final rule under subparagraph (A) 
or (B) establishing amended standards, the final rule shall provide 
that the amended standards apply to products manufactured on or after 
the date that is--
            ``(i) 3 years after the date on which the final amended 
        standard is published; or
            ``(ii) if the Secretary determines, by rule, that 3 years 
        is inadequate, not later than 5 years after the date on which 
        the final amended standard is published.
    ``(4) A final rule issued under paragraph (2) or (3) shall 
establish standards at the maximum level that is technically feasible 
and economically justified, as provided in subsections (o) and (p) of 
section 325.''.
    (e) Standards for Commercial Clothes Washers.--Section 342 of the 
Energy Policy and Conservation Act (42 U.S.C. 6313) (as amended by 
subsection (d)) is amended by adding at the end the following:
    ``(e) Commercial Clothes Washers.--(1) Each commercial clothes 
washer manufactured on or after January 1, 2007, shall have--
            ``(A) a Modified Energy Factor of at least 1.26; and
            ``(B) a Water Factor of not more than 9.5.
    ``(2)(A)(i) Not later than January 1, 2010, the Secretary shall 
publish a final rule to determine whether the standards established 
under paragraph (1) should be amended.
    ``(ii) The rule published under clause (i) shall provide that any 
amended standard shall apply to products manufactured 3 years after the 
date on which the final amended standard is published.
    ``(B)(i) Not later than January 1, 2015, the Secretary shall 
publish a final rule to determine whether the standards established 
under paragraph (1) should be amended.
    ``(ii) The rule published under clause (i) shall provide that any 
amended standard shall apply to products manufactured 3 years after the 
date on which the final amended standard is published.''.
    (f) Test Procedures.--Section 343 of the Energy Policy and 
Conservation Act (42 U.S.C. 6314) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)--
                            (i) in subparagraph (A), by inserting 
                        ``very large commercial package air 
                        conditioning and heating equipment,'' after 
                        ``large commercial package air conditioning and 
                        heating equipment,''; and
                            (ii) in subparagraph (B), by inserting 
                        ``very large commercial package air 
                        conditioning and heating equipment,'' after 
                        ``large commercial package air conditioning and 
                        heating equipment,''; and
                    (B) by adding at the end the following:
    ``(6)(A)(i) In the case of commercial refrigerators, freezers, and 
refrigerator-freezers, the test procedures shall be--
            ``(I) the test procedures determined by the Secretary to be 
        generally accepted industry testing procedures; or
            ``(II) rating procedures developed or recognized by the 
        ASHRAE or by the American National Standards Institute.
    ``(ii) In the case of self-contained refrigerators, freezers, and 
refrigerator-freezers to which standards are applicable under 
paragraphs (2) and (3) of section 342(c), the initial test procedures 
shall be the ASHRAE 117 test procedure that is in effect on January 1, 
2005.
    ``(B)(i) In the case of commercial refrigerators, freezers, and 
refrigerators-freezers with doors covered by the standards adopted in 
February 2002, by the California Energy Commission, the rating 
temperatures shall be the integrated average temperature of 38 degrees 
F (  2 degrees F) for refrigerator compartments and 0 degrees F (  2 
degrees F) for freezer compartments.
    ``(C) The Secretary shall issue a rule in accordance with 
paragraphs (2) and (3) to establish the appropriate rating temperatures 
for the other products for which standards will be established under 
subsection 342(c)(4).
    ``(D) In establishing the appropriate test temperatures under this 
subparagraph, the Secretary shall follow the procedures and meet the 
requirements under section 323(e).
    ``(E)(i) Not later than 180 days after the publication of the new 
ASHRAE 117 test procedure, if the ASHRAE 117 test procedure for 
commercial refrigerators, freezers, and refrigerator-freezers is 
amended, the Secretary shall, by rule, amend the test procedure for the 
product as necessary to ensure that the test procedure is consistent 
with the amended ASHRAE 117 test procedure, unless the Secretary makes 
a determination, by rule, and supported by clear and convincing 
evidence, that to do so would not meet the requirements for test 
procedures under paragraphs (2) and (3).
    ``(ii) If the Secretary determines that 180 days is an insufficient 
period during which to review and adopt the amended test procedure or 
rating procedure under clause (i), the Secretary shall publish a notice 
in the Federal Register stating the intent of the Secretary to wait not 
longer than 1 additional year before putting into effect an amended 
test procedure or rating procedure.
    ``(F)(i) If a test procedure other than the ASHRAE 117 test 
procedure is approved by the American National Standards Institute, the 
Secretary shall, by rule--
            ``(I) review the relative strengths and weaknesses of the 
        new test procedure relative to the ASHRAE 117 test procedure; 
        and
            ``(II) based on that review, adopt 1 new test procedure for 
        use in the standards program.
    ``(ii) If a new test procedure is adopted under clause (i)--
            ``(I) section 323(e) shall apply; and
            ``(II) subparagraph (B) shall apply to the adopted test 
        procedure.
    ``(7)(A) In the case of automatic commercial ice makers, the test 
procedures shall be the test procedures specified in Air-Conditioning 
and Refrigeration Institute Standard 810-2003, as in effect on January 
1, 2005.
    ``(B)(i) If Air-Conditioning and Refrigeration Institute Standard 
810-2003 is amended, the Secretary shall amend the test procedures 
established in subparagraph (A) as necessary to be consistent with the 
amended Air-Conditioning and Refrigeration Institute Standard, unless 
the Secretary determines, by rule, published in the Federal Register 
and supported by clear and convincing evidence, that to do so would not 
meet the requirements for test procedures under paragraphs (2) and (3).
    ``(ii) If the Secretary issues a rule under clause (i) containing a 
determination described in clause (ii), the rule may establish an 
amended test procedure for the product that meets the requirements of 
paragraphs (2) and (3).
    ``(C) The Secretary shall comply with section 323(e) in 
establishing any amended test procedure under this paragraph.
    ``(8) With respect to commercial clothes washers, the test 
procedures shall be the same as the test procedures established by the 
Secretary for residential clothes washers under section 325(g).''; and
            (2) in subsection (d)(1), by inserting ``very large 
        commercial package air conditioning and heating equipment, 
        commercial refrigerators, freezers, and refrigerator-freezers, 
        automatic commercial ice makers, commercial clothes washers,'' 
        after ``large commercial package air conditioning and heating 
        equipment,''.
    (g) Labeling.--Section 344(e) of the Energy Policy and Conservation 
Act (42 U.S.C. 6315(e)) is amended by inserting ``very large commercial 
package air conditioning and heating equipment, commercial 
refrigerators, freezers, and refrigerator-freezers, automatic 
commercial ice makers, commercial clothes washers,'' after ``large 
commercial package air conditioning and heating equipment,'' each place 
it appears.
    (h) Administration, Penalties, Enforcement, and Preemption.--
Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (7), by striking ``and'' at the 
                end;
                    (B) in paragraph (8), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) in the case of commercial clothes washers, section 
        327(b)(1) shall be applied as if the National Appliance Energy 
        Conservation Act of 1987 was the Energy Policy Act of 2005.'';
            (2) in the first sentence of subsection (b)(1), by striking 
        ``part B'' and inserting ``part A''; and
            (3) by adding at the end the following:
    ``(d)(1) Except as provided in paragraphs (2) and (3), section 327 
shall apply with respect to very large commercial package air 
conditioning and heating equipment to the same extent and in the same 
manner as section 327 applies under part A on the date of enactment of 
this subsection.
    ``(2) Any State or local standard issued before the date of 
enactment of this subsection shall not be preempted until the standards 
established under section 342(a)(9) take effect on January 1, 2010.
    ``(e)(1)(A) Subsections (a), (b), and (d) of section 326, 
subsections (m) through (s) of section 325, and sections 328 through 
336 shall apply with respect to commercial refrigerators, freezers, and 
refrigerator-freezers to the same extent and in the same manner as 
those provisions apply under part A.
    ``(B) In applying those provisions to commercial refrigerators, 
freezers, and refrigerator-freezers, paragraphs (1), (2), (3), and (4) 
of subsection (a) shall apply.
    ``(2)(A) Section 327 shall apply to commercial refrigerators, 
freezers, and refrigerator-freezers for which standards are established 
under paragraphs (2) and (3) of section 342(c) to the same extent and 
in the same manner as those provisions apply under part A on the date 
of enactment of this subsection, except that any State or local 
standard issued before the date of enactment of this subsection shall 
not be preempted until the standards established under paragraphs (2) 
and (3) of section 342(c) take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A), 
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(3)(A) Section 327 shall apply to commercial refrigerators, 
freezers, and refrigerator-freezers for which standards are established 
under section 342(c)(4) to the same extent and in the same manner as 
the provisions apply under part A on the date of publication of the 
final rule by the Secretary, except that any State or local standard 
issued before the date of publication of the final rule by the 
Secretary shall not be preempted until the standards take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A), 
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(4)(A) If the Secretary does not issue a final rule for a 
specific type of commercial refrigerator, freezer, or refrigerator-
freezer within the time frame specified in section 342(c)(5), 
subsections (b) and (c) of section 327 shall not apply to that specific 
type of refrigerator, freezer, or refrigerator-freezer for the period 
beginning on the date that is 2 years after the scheduled date for a 
final rule and ending on the date on which the Secretary publishes a 
final rule covering the specific type of refrigerator, freezer, or 
refrigerator-freezer.
    ``(B) Any State or local standard issued before the date of 
publication of the final rule shall not be preempted until the final 
rule takes effect.
    ``(5)(A) In the case of any commercial refrigerator, freezer, or 
refrigerator-freezer to which standards are applicable under paragraphs 
(2) and (3) of section 342(c), the Secretary shall require 
manufacturers to certify, through an independent, nationally recognized 
testing or certification program, that the commercial refrigerator, 
freezer, or refrigerator-freezer meets the applicable standard.
    ``(B) The Secretary shall, to the maximum extent practicable, 
encourage the establishment of at least 2 independent testing and 
certification programs.
    ``(C) As part of certification, information on equipment energy use 
and interior volume shall be made available to the Secretary.
    ``(f)(1)(A)(i) Except as provided in clause (ii), section 327 shall 
apply to automatic commercial ice makers for which standards have been 
established under section 342(d)(1) to the same extent and in the same 
manner as the section applies under part A on the date of enactment of 
this subsection.
    ``(ii) Any State standard issued before the date of enactment of 
this subsection shall not be preempted until the standards established 
under section 342(d)(1) take effect.
    ``(B) In applying section 327 to the equipment under subparagraph 
(A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(2)(A)(i) Except as provided in clause (ii), section 327 shall 
apply to automatic commercial ice makers for which standards have been 
established under section 342(d)(2) to the same extent and in the same 
manner as the section applies under part A on the date of publication 
of the final rule by the Secretary.
    ``(ii) Any State standard issued before the date of publication of 
the final rule by the Secretary shall not be preempted until the 
standards established under section 342(d)(2) take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A), 
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(3)(A) If the Secretary does not issue a final rule for a 
specific type of automatic commercial ice maker within the time frame 
specified in subsection 342(d), subsections (b) and (c) of section 327 
shall no longer apply to the specific type of automatic commercial ice 
maker for the period beginning on the day after the scheduled date for 
a final rule and ending on the date on which the Secretary publishes a 
final rule covering the specific type of automatic commercial ice 
maker.
    ``(B) Any State standard issued before the publication of the final 
rule shall not be preempted until the standards established in the 
final rule take effect.
    ``(4)(A) The Secretary shall monitor whether manufacturers are 
reducing harvest rates below tested values for the purpose of bringing 
non-complying equipment into compliance.
    ``(B) If the Secretary finds that there has been a substantial 
amount of manipulation with respect to harvest rates under subparagraph 
(A), the Secretary shall take steps to minimize the manipulation, such 
as requiring harvest rates to be within 5 percent of tested values.
    ``(g)(1)(A) If the Secretary does not issue a final rule for 
commercial clothes washers within the timeframe specified in section 
342(e)(2), subsections (b) and (c) of section 327 shall not apply to 
commercial clothes washers for the period beginning on the day after 
the scheduled date for a final rule and ending on the date on which the 
Secretary publishes a final rule covering commercial clothes washers.
    ``(B) Any State or local standard issued before the date on which 
the Secretary publishes a final rule shall not be preempted until the 
standards established under section 342(e)(2) take effect.
    ``(2) The Secretary shall undertake an educational program to 
inform owners of laundromats, multifamily housing, and other sites 
where commercial clothes washers are located about the new standard, 
including impacts on washer purchase costs and options for recovering 
those costs through coin collection.''.

SEC. 137. EXPEDITED RULEMAKING.

    (a) Administrative Procedure.--The first sentence of section 325(p) 
of the Energy Policy and Conservation Act (42 U.S.C. 6295(p)) is 
amended by striking ``Any'' and inserting ``Except as provided in 
subsection (u), any''.
    (b) Administrative Procedure and Judicial Review.--The first 
sentence of section 336(b)(2) of the Energy Policy and Conservation Act 
(42 U.S.C. 6306(b)(2)) is amended by striking ``such chapter.'' and 
inserting ``that chapter, except, notwithstanding section 706(2)(D) of 
title 5, United States Code, no direct final rule prescribed or 
withdrawn under section 325(u) may be held unlawful or set aside 
because of the failure of the Secretary to observe a procedure required 
by law other than the procedures required under section 325(u).''.
    (c) Conforming Amendment.--Section 345(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6316(b)(1)) is amended by inserting 
``section 325(u),'' before ``section 326(a)''.

SEC. 138. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 
6294(a)(2)) is amended by adding at the end the following:
    ``(F)(i) Not later than 90 days after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to consider--
            ``(I) the effectiveness of the consumer products labeling 
        program in assisting consumers in making purchasing decisions 
        and improving energy efficiency; and
            ``(II) changes to the labeling rules (including categorical 
        labeling) that would improve the effectiveness of consumer 
        product labels.
    ``(ii) Not later than 2 years after the date of enactment of this 
subparagraph, the Commission shall complete the rulemaking initiated 
under clause (i).''.
    (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
amended by adding at the end the following:
    ``(5)(A) For covered products described in subsections (u) through 
(ee) of section 325, after a test procedure has been prescribed under 
section 323, the Secretary or the Commission, as appropriate, may 
prescribe, by rule, under this section labeling requirements for the 
products.
    ``(B) In the case of products to which TP-1 standards under section 
325(y) apply, labeling requirements shall be based on the `Standard for 
the Labeling of Distribution Transformer Efficiency' prescribed by the 
National Electrical Manufacturers Association (NEMA TP-3) as in effect 
on the date of enactment of this paragraph.
    ``(C) In the case of dehumidifiers covered under section 325(dd), 
the Commission shall not require an `Energy Guide' label.''.

SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES STUDY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in consultation with the National 
Association of Regulatory Utility Commissioners and the National 
Association of State Energy Officials, shall conduct a study of State 
and regional policies that promote cost-effective programs to reduce 
energy consumption (including energy efficiency programs) that are 
carried out by--
            (1) utilities that are subject to State regulation; and
            (2) nonregulated utilities.
    (b) Consideration.--In conducting the study under subsection (a), 
the Secretary shall take into consideration--
            (1) performance standards for achieving energy use and 
        demand reduction targets;
            (2) funding sources, including rate surcharges;
            (3) infrastructure planning approaches (including energy 
        efficiency programs) and infrastructure improvements;
            (4) the costs and benefits of consumer education programs 
        conducted by State and local governments and local utilities to 
        increase consumer awareness of energy efficiency technologies 
        and measures; and
            (5) methods of--
                    (A) removing disincentives for utilities to 
                implement energy efficiency programs;
                    (B) encouraging utilities to undertake voluntary 
                energy efficiency programs; and
                    (C) ensuring appropriate returns on energy 
                efficiency programs.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
includes--
            (1) the findings of the study; and
            (2) any recommendations of the Secretary, including 
        recommendations on model policies to promote energy efficiency 
        programs.

SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.

    (a) In General.--The Secretary shall establish a pilot program 
under which the Secretary provides financial assistance to at least 3, 
but not more than 7, States to carry out pilot projects in the States 
for--
            (1) planning and adopting statewide programs that 
        encourage, for each year in which the pilot project is carried 
        out--
                    (A) energy efficiency; and
                    (B) reduction of consumption of electricity or 
                natural gas in the State by at least 0.75 percent, as 
                compared to a baseline determined by the Secretary for 
                the period preceding the implementation of the program; 
                or
            (2) for any State that has adopted a statewide program as 
        of the date of enactment of this Act, activities that reduce 
        energy consumption in the State by expanding and improving the 
        program.
    (b) Verification.--A State that receives financial assistance under 
subsection (a)(1) shall submit to the Secretary independent 
verification of any energy savings achieved through the statewide 
program.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010, to remain available until expended.

SEC. 141. ENERGY EFFICIENCY RESOURCE PROGRAMS.

    (a) Electric Utility Programs.--Section 111 of the Public Utilities 
Regulatory Policy Act of 1978 (16 U.S.C. 2621) is amended by adding at 
the end the following:
    ``(e) Energy Efficiency Resource Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Demand baseline.--The term `demand baseline' 
                means the baseline determined by the Secretary for an 
                appropriate period preceding the implementation of an 
                energy efficiency resource program.
                    ``(B) Energy efficiency resource programs.--The 
                term `energy efficiency resource program' means an 
                energy efficiency or other demand reduction program 
                that is designed to reduce annual electricity 
                consumption or peak demand of consumers served by an 
                electric utility by a percentage of the demand baseline 
                of the utility that is equal to not less than 0.75 
                percent of the number of years during which the program 
                is in effect.
            ``(2) Public hearings; determinations.--
                    ``(A) As soon as practicable after the date of 
                enactment of this subsection, but not later than 3 
                years after that date, each State regulatory authority 
                (with respect to each electric utility over which the 
                State has ratemaking authority) and each nonregulated 
                electric utility shall, after notice, conduct a public 
                hearing on the benefits and feasibility of implementing 
                an energy efficiency resource program.
                    ``(B) A State regulatory authority or nonregulated 
                utility shall implement an energy efficiency resource 
                program if, on the basis of a hearing under 
                subparagraph (A), the State regulatory authority or 
                nonregulated utility determines that the program 
                would--
                            ``(i) benefit end-use customers;
                            ``(ii) be cost-effective based on total 
                        resource cost;
                            ``(iii) serve the public welfare; and
                            ``(iv) be feasible to implement.
            ``(3) Implementation.--
                    ``(A) State regulatory authorities.--If a State 
                regulatory authority makes a determination under 
                paragraph (2)(B), the State regulatory authority 
                shall--
                            ``(i) require each electric utility over 
                        which the State has ratemaking authority to 
                        implement an energy efficiency resource 
                        program; and
                            ``(ii) allow such a utility to recover any 
                        expenditures incurred by the utility in 
                        implementing the energy efficiency resource 
                        program.
                    ``(B) Nonregulated electric utilities.--If a 
                nonregulated electric utility makes a determination 
                under paragraph (2)(B), the utility shall implement an 
                energy efficiency resource program.
            ``(4) Updating regulations.--A State regulatory authority 
        or nonregulated utility may update periodically a determination 
        under paragraph (2)(B) to determine whether an energy 
        efficiency resource program should be--
                    ``(A) continued;,
                    ``(B) modified; or
                    ``(C) terminated.
            ``(5) Exception.--Paragraph (2) shall not apply to a State 
        regulatory authority (or any nonregulated electric utility 
        operating in the State) that demonstrates to the Secretary that 
        an energy efficiency resource program is in effect in the 
        State.''.
    (b) Gas Utilities.--Section 303 of the Public Utilities Regulatory 
Policy Act of 1978 (15 U.S.C. 3203) is amended by adding at the end the 
following:
    ``(e) Energy efficiency resource programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Demand baseline.--The term `demand baseline' 
                means the baseline determined by the Secretary for an 
                appropriate period preceding the implementation of an 
                energy efficiency resource program.
                    ``(B) Energy efficiency resource programs.--The 
                term `energy efficiency resource program' means an 
                energy efficiency or other demand reduction program 
                that is designed to reduce annual gas consumption or 
                peak demand of consumers served by a gas utility by a 
                percentage of the demand baseline of the utility that 
                is equal to not less than 0.75 percent of the number of 
                years during which the program is in effect.
            ``(2) Public hearings; determinations.--
                    ``(A) As soon as practicable after the date of 
                enactment of this subsection, but not later than 3 
                years after that date, each State regulatory authority 
                (with respect to each gas utility over which the State 
                has ratemaking authority) and each nonregulated gas 
                utility shall, after notice, conduct a public hearing 
                on the benefits and feasibility of implementing an 
                energy efficiency resource program.
                    ``(B) A State regulatory authority or nonregulated 
                utility shall implement an energy efficiency resource 
                program if, on the basis of a hearing under 
                subparagraph (A), the State regulatory authority or 
                nonregulated utility determines that the program 
                would--
                            ``(i) benefit end-use customers;
                            ``(ii) be cost-effective based on total 
                        resource cost;
                            ``(iii) serve the public welfare; and
                            ``(iv) be feasible to implement.
            ``(3) Implementation.--
                    ``(A) State regulatory authorities.--If a State 
                regulatory authority makes a determination under 
                paragraph (2)(B), the State regulatory authority 
                shall--
                            ``(i) require each gas utility over which 
                        the State has ratemaking authority to implement 
                        an energy efficiency resource program; and
                            ``(ii) allow such a utility to recover any 
                        expenditures incurred by the utility in 
                        implementing the energy efficiency resource 
                        program.
                    ``(B) Nonregulated gas utilities.--If a 
                nonregulated gas utility makes a determination under 
                paragraph (2)(B), the utility shall implement an energy 
                efficiency resource program.
            ``(4) Updating regulations.--A State regulatory authority 
        or nonregulated utility may update periodically a determination 
        under paragraph (2)(B) to determine whether an energy 
        efficiency resource program should be--
                    ``(A) continued;,
                    ``(B) modified; or
                    ``(C) terminated.
            ``(5) Exception.--Paragraph (2) shall not apply to a State 
        regulatory authority (or any nonregulated gas utility operating 
        in the State) that demonstrates to the Secretary that an energy 
        efficiency resource program is in effect in the State.''.

SEC. 142. FUEL EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

    (a) In General.--The Secretary and the Administrator of the 
National Aeronautics and Space Administration shall enter into a 
cooperative agreement to carry out a multi-year engine development 
program to advance technologies to enable more fuel efficient, turbine-
based propulsion and power systems for aeronautical and industrial 
applications.
    (b) Performance Objective.--The fuel efficiency performance 
objective for the program shall be to achieve a fuel efficiency 
improvement of more than 10 percent by exploring--
            (1) advanced concepts, alternate propulsion, and power 
        configurations, including hybrid fuel cell powered systems; and
            (2) the use of alternate fuel in conventional or 
        nonconventional turbine-based systems.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $60,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 143. MOTOR VEHICLE TIRES SUPPORTING MAXIMUM FUEL EFFICIENCY.

    (a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
            (1) in subsection (b), by inserting after the first 
        sentence the following: ``The grading system shall include 
        standards for rating the fuel efficiency of tires designed for 
        use on passenger cars and light trucks.''; and
            (2) by adding at the end the following:
    ``(d) National Tire Fuel Efficiency Program.--(1) The Secretary 
shall develop and carry out a national tire fuel efficiency program for 
tires designed for use on passenger cars and light trucks.
    ``(2) The program shall include the following:
            ``(A) Policies and procedures for testing and labeling 
        tires for fuel economy to enable tire buyers to make informed 
        purchasing decisions about the fuel economy of tires.
            ``(B) Policies and procedures to promote the purchase of 
        energy-efficient replacement tires, including purchase 
        incentives, website listings on the Internet, printed fuel 
        economy guide booklets, and mandatory requirements for tire 
        retailers to provide tire buyers with fuel-efficiency 
        information on tires.
            ``(C) Minimum fuel economy standards for tires, promulgated 
        by the Secretary.
    ``(3) The minimum fuel economy standards for tires shall--
            ``(A) ensure that the average fuel economy of replacement 
        tires is equal to or better than the average fuel economy of 
        tires sold as original equipment;
            ``(B) secure the maximum technically feasible and cost-
        effective fuel savings;
            ``(C) not adversely affect tire safety;
            ``(D) not adversely affect the average tire life of 
        replacement tires;
            ``(E) incorporate the results from--
                    ``(i) laboratory testing; and
                    ``(ii) to the extent appropriate and available, on-
                road fleet testing programs conducted by the 
                manufacturers; and
            ``(F) not adversely affect efforts to manage scrap tires.
    ``(4) The policies, procedures, and standards developed under 
paragraph (2) shall apply to all types and models of tires that are 
covered by the uniform tire quality grading standards under section 
575.104 of title 49, Code of Federal Regulations (or any successor 
regulation).
    ``(5) Not less often than every three years, the Secretary shall 
review the minimum fuel economy standards in effect for tires under 
this subsection and revise the standards as necessary to ensure 
compliance with requirements under paragraph (3). The Secretary may 
not, however, reduce the average fuel economy standards applicable to 
replacement tires.
    ``(6) Nothing in this chapter shall be construed to preempt any 
provision of State law relating to higher fuel economy standards 
applicable to replacement tires designed for use on passenger cars and 
light trucks.
    ``(7) Nothing in this chapter shall apply to--
            ``(A) a tire or group of tires with the same SKU, plant, 
        and year, for which the volume of tires produced or imported is 
        less than 15,000 annually;
            ``(B) a deep tread, winter-type snow tire, space-saver 
        tire, or temporary use spare tire;
            ``(C) a tire with a normal rim diameter of 12 inches or 
        less;
            ``(D) a motorcycle tire; or
            ``(E) a tire manufactured specifically for use in an off-
        road motorized recreational vehicle.
    ``(8) In this subsection, the term `fuel economy', with respect to 
tires, means the extent to which the tires contribute to the fuel 
economy of the motor vehicles on which the tires are mounted.
    (b) Conforming Amendment.--Section 30103(b) of title 49, United 
States Code, is amended in paragraph (1) by striking ``When'' and 
inserting ``Except as provided in section 30123(d) of this title, 
when''.
    (c) Time for Implementation.--The Secretary of Transportation shall 
ensure that the national tire fuel efficiency program required under 
subsection (d) of section 30123 of title 49, United States Code (as 
added by subsection (a)(2)), is administered so as to apply the 
policies, procedures, and standards developed under paragraph (2) of 
such subsection (d) beginning not later than March 31, 2008.

               Subtitle D--Measures to Conserve Petroleum

SEC. 151. REDUCTION OF DEPENDENCE ON IMPORTED PETROLEUM.

    (a) Report.--
            (1) In general.--Not later than February 1, 2006, and 
        annually thereafter, the President shall submit to Congress a 
        report, based on the most recent edition of the Annual Energy 
        Outlook published by the Energy Information Administration, 
        assessing the progress made by the United States toward the 
        goal of reducing dependence on imported petroleum sources by 
        2015.
            (2) Contents.--The report under paragraph (1) shall--
                    (A) include a description of the implementation, 
                during the previous fiscal year, of provisions under 
                this Act relating to domestic crude petroleum 
                production;
                    (B) assess the effectiveness of those provisions in 
                meeting the goal described in paragraph (1); and
                    (C) describe the progress in developing and 
                implementing measures under subsection (b).
    (b) Measures To Reduce Import Dependence Through Increased Domestic 
Petroleum Conservation.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the President shall develop and 
        implement measures to conserve petroleum in end-uses throughout 
        the economy of the United States sufficient to reduce total 
        demand for petroleum in the United States by 1,000,000 barrels 
        per day from the amount projected for calendar year 2015 in the 
        reference case contained in the report of the Energy 
        Information Administration entitled ``Annual Energy Outlook 
        2005''.
            (2) Contents.--The measures under paragraph (1) shall be 
        designed to ensure continued reliable and affordable energy for 
        consumers.
            (3) Implementation.--The measures under paragraph (1) shall 
        be implemented under existing authorities of appropriate 
        Federal executive agencies identified by the President.

                Subtitle E--Energy Efficiency in Housing

SEC. 161. PUBLIC HOUSING CAPITAL FUND.

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g) is amended--
            (1) in subsection (d)(1)--
                    (A) in subparagraph (I), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(K) improvement of energy and water-use 
                efficiency by installing fixtures and fittings that 
                conform to the American Society of Mechanical 
                Engineers/American National Standards Institute 
                standards A112.19.2-1998 and A112.18.1-2000, or any 
                revision thereto, applicable at the time of 
                installation, and by increasing energy efficiency and 
                water conservation by such other means as the Secretary 
                determines are appropriate; and
                    ``(L) integrated utility management and capital 
                planning to maximize energy conservation and efficiency 
                measures.''; and
            (2) in subsection (e)(2)(C)--
                    (A) by striking ``The treatment'' and inserting the 
                following:
                            ``(i) In general.--The treatment''; and
                    (B) by adding at the end the following:
                            ``(ii) Third party contracts.--Contracts 
                        described in clause (i) may include contracts 
                        for--
                                    ``(I) equipment conversions to less 
                                costly utility sources;
                                    ``(II) projects with resident-paid 
                                utilities; and
                                    ``(III) adjustments to frozen base 
                                year consumption, including systems 
                                repaired to meet applicable building 
                                and safety codes and adjustments for 
                                occupancy rates increased by 
                                rehabilitation.
                            ``(iii) Term of contract.--The total term 
                        of a contract described in clause (i) shall not 
                        exceed 20 years to allow longer payback periods 
                        for retrofits, including--
                                    ``(I) windows;
                                    ``(II) heating system replacements;
                                    ``(III) wall insulation;
                                    ``(IV) site-based generation; and
                                    ``(V) advanced energy savings 
                                technologies, including renewable 
                                energy generation and other such 
                                retrofits.''.

SEC. 162. ENERGY EFFICIENT APPLIANCES.

    In purchasing appliances, a public housing agency shall purchase 
energy-efficient appliances that are Energy Star products or FEMP 
designated products, as such terms are defined in section 552 of the 
National Energy Conservation Policy Act (42 U.S.C. 8251 et seq.) (as 
amended by section 104) unless the purchase of energy-efficient 
appliances is not cost-effective to the agency.

SEC. 163. ENERGY EFFICIENCY STANDARDS.

    Section 109 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12709) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking `` 1 year after the date of 
                        enactment of the Energy Policy Act of 1992'' 
                        and inserting ``September 30, 2006'';
                            (ii) in subparagraph (A), by striking ``; 
                        and'' and inserting a semicolon;
                            (iii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(C) rehabilitation and new construction of public 
                and assisted housing funded by HOPE VI revitalization 
                grants, established under section 24 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437v), where 
                such standards are determined to be cost effective by 
                the Secretary of Housing and Urban Development.''; and
                    (B) in paragraph (2), in the first sentence, by 
                inserting ``, and, with respect to rehabilitation and 
                new construction of public and assisted housing funded 
                by HOPE VI revitalization grants, established under 
                section 24 of the United States Housing Act of 1937 (42 
                U.S.C. 1437v), the 2003 International Energy 
                Conservation Code'' after ``Standard 90.1-1989')'';
            (2) in subsection (b)--
                    (A) by striking ``within 1 year after the date of 
                enactment of the Energy Policy Act of 1992'' and 
                inserting ``by September 30, 2006''; and
                    (B) by inserting ``, and, with respect to 
                rehabilitation and new construction of public and 
                assisted housing funded by HOPE VI revitalization 
                grants, established under section 24 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
                International Energy Conservation Code'' after 
                ``Standard 90.1-1989''; and
            (3) in subsection (c)--
                    (A) in the heading, by inserting ``and the 
                International Energy Conservation Code'' after ``Model 
                Energy Code''; and
                    (B) by inserting ``, or, with respect to 
                rehabilitation and new construction of public and 
                assisted housing funded by HOPE VI revitalization 
                grants, established under section 24 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
                International Energy Conservation Code'' after 
                ``Standard 90.1-1989''.

SEC. 164. ENERGY STRATEGY FOR THE DEPARTMENT OF HOUSING AND URBAN 
              DEVELOPMENT.

    (a) Development of Strategy.--The Secretary of Housing and Urban 
Development shall develop and implement an integrated energy strategy 
to reduce utility expenses through cost-effective energy conservation 
and efficiency measures and energy efficient design and construction of 
public and assisted housing.
    (b) Contents of Strategy.--The energy strategy required under 
subsection (a) shall include the development of energy reduction goals 
and incentives for public housing agencies.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, and every 2 years thereafter, the Secretary of Housing and 
Urban Development shall submit to Congress a report describing--
            (1) the energy strategy required under subsection (a);
            (2) the actions taken by the Department of Housing and 
        Urban Development to monitor the energy usage of public housing 
        agencies; and
            (3) the progress, if any, in implementing the energy 
        strategy required under subsection (a).

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessments.--Not later than 180 days after the date 
of enactment of this Act and each year thereafter, the Secretary 
shall--
            (1) review the available assessments of renewable energy 
        resources within the United States, including solar, wind, 
        biomass, ocean (tidal, wave, current, and thermal), geothermal, 
        and hydroelectric energy resources; and
            (2) undertake new assessments as necessary, taking into 
        account changes in market conditions, available technologies, 
        and other relevant factors.
    (b) Reports.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act and each year thereafter, the Secretary 
        shall publish a report based on the most recent assessment 
        under subsection (a).
            (2) Contents.--The report shall contain--
                    (A) a detailed inventory describing the available 
                quantity and characteristics of the renewable energy 
                resources; and
                    (B) such other information as the Secretary 
                determines would be useful in developing the renewable 
                energy resources, including--
                            (i) descriptions of surrounding terrain, 
                        population and load centers, nearby energy 
                        infrastructure, and the location of energy and 
                        water resources;
                            (ii) available estimates of the costs 
                        needed to develop each resource;
                            (iii) an identification of any barriers to 
                        providing adequate transmission for remote 
                        sources of renewable energy resources to 
                        current and emerging markets;
                            (iv) recommendations for removing or 
                        addressing those barriers; and
                            (v) recommendations for providing access to 
                        the electrical grid that do not unfairly 
                        disadvantage renewable or other energy 
                        producers.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
each of fiscal years 2006 through 2010.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(a)) is amended--
            (1) by striking the last sentence;
            (2) by designating the first, second, and third sentences 
        as paragraphs (1), (2), and (3), respectively;
            (3) in paragraph (3) (as so designated), by striking ``and 
        which satisfies'' and all that follows through ``deems 
        necessary''; and
            (4) by adding at the end the following:
    ``(4)(A) Subject to subparagraph (B), if there are insufficient 
appropriations to make full payments for electric production from all 
qualified renewable energy facilities for a fiscal year, the Secretary 
shall assign--
            ``(i) 60 percent of appropriated funds for the fiscal year 
        to facilities that use solar, wind, ocean (tidal, wave, 
        current, and thermal), geothermal, or closed-loop (dedicated 
        energy crops) biomass technologies to generate electricity; and
            ``(ii) 40 percent of appropriated funds for the fiscal year 
        to other projects.
    ``(B) After submitting to Congress an explanation of the reasons 
for the alteration, the Secretary may alter the percentage requirements 
of subparagraph (A).''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that 
        follows through ``nonprofit electrical cooperative'' and 
        inserting ``a not-for-profit electric cooperative, a public 
        utility described in section 115 of the Internal Revenue Code 
        of 1986, a State, Commonwealth, territory, or possession of the 
        United States, or the District of Columbia, or a political 
        subdivision thereof, an Indian tribal government or subdivision 
        thereof, or a Native Corporation (as defined in section 3 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1602)),''; 
        and
            (2) by inserting ``landfill gas,'' after ``wind, 
        biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-
fiscal year period beginning with the first full fiscal year occurring 
after the enactment of this section'' and inserting ``before October 1, 
2016''.
    (d) Payment Period.--Section 1212(d) of the Energy Policy Act of 
1992 (42 U.S.C. 13317(d)) is amended in the second sentence by 
inserting ``, or in which the Secretary determines that all necessary 
Federal and State authorizations have been obtained to begin 
construction of the facility'' after ``eligible for such payments''.
    (e) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended in the first sentence by 
inserting ``landfill gas,'' after ``wind, biomass,''.
    (f) Termination of Authority.--Section 1212(f) of the Energy Policy 
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking ``the 
expiration of'' and all that follows through ``of this section'' and 
inserting ``September 30, 2026''.
    (g) Authorization of Appropriations.--Section 1212 of the Energy 
Policy Act of 1992 (42 U.S.C. 13317) is amended by striking subsection 
(g) and inserting the following:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2006 through 2026, to remain available until 
expended.''.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means any solid, 
        nonhazardous, cellulosic material that is derived from--
                    (A) any of the following forest-related resources: 
                mill residue, precommercial thinning, slash, brush, or 
                nonmerchantable material;
                    (B) a solid wood waste material--
                            (i) including a waste pallet, crate, 
                        dunnage, manufacturing and construction wood 
                        waste (other than pressure-treated, chemically-
                        treated, or painted wood waste), and landscape 
                        or right-of-way tree trimming; but
                            (ii) not including municipal solid waste 
                        (garbage), gas derived from the biodegradation 
                        of solid waste, or paper that is commonly 
                        recycled;
                    (C) agriculture waste, including an orchard tree 
                crop, vineyard, grain, legume, sugar, and other crop 
                byproduct or residue, and a livestock waste nutrient; 
                or
                    (D) a plant that is grown exclusively as a fuel for 
                the production of electricity.
            (2) Renewable energy.--The term ``renewable energy'' means 
        electric energy generated from solar, wind, biomass, ocean 
        (tidal, wave, current, and thermal), landfill gas, geothermal, 
        municipal solid waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new capacity 
        at an existing hydroelectric project.
    (b) Requirement.--The President, acting through the Secretary, 
shall seek to ensure that, to the extent economically feasible and 
technically practicable, of the total quantity of electric energy the 
Federal Government consumes during any fiscal year, the following 
amounts shall be renewable energy:
            (1) Not less than 3 percent in each of fiscal years 2007 
        through 2009.
            (2) Not less than 5 percent in each of fiscal years 2010 
        through 2012.
            (3) Not less than 7.5 percent in fiscal year 2013 and each 
        fiscal year thereafter.
    (c) Calculation.--For purposes of determining compliance with the 
requirement of this section, the quantity of renewable energy shall be 
doubled if--
            (1) the renewable energy is produced and used onsite at a 
        Federal facility;
            (2) the renewable energy is produced on Federal land and 
        used at a Federal facility; or
            (3) the renewable energy is produced on Indian land (as 
        defined in section 2601 of the Energy Policy Act of 1992) and 
        used at a Federal facility.
    (d) Report.--Not later than April 15, 2007, and every 2 years 
thereafter, the Secretary shall provide to Congress a report on the 
progress of the Federal Government in meeting the goals established by 
this section.

                       Subtitle B--Reliable Fuels

SEC. 211. RENEWABLE CONTENT OF GASOLINE.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (r); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol derived from 
                any lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, sugarcane, sugar 
                                beets, sugar components, tobacco, 
                                potatoes, or other biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                or other place where decaying organic 
                                material is found; and
                                    ``(II) is used to replace or reduce 
                                the quantity of fossil fuel present in 
                                a fuel mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes--
                                    ``(I) cellulosic biomass ethanol; 
                                and
                                    ``(II) biodiesel (as defined in 
                                section 312(f) of the Energy Policy Act 
                                of 1992 (42 U.S.C. 13220(f))).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which the average aggregate daily 
                crude oil throughput for a calendar year (as determined 
                by dividing the aggregate throughput for the calendar 
                year by the number of days in the calendar year) does 
                not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) Regulations.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this paragraph, 
                        the Administrator shall promulgate regulations 
                        to ensure that gasoline sold or introduced into 
                        commerce in the United States (except in 
                        noncontiguous States or territories), on an 
                        annual average basis, contains the applicable 
                        volume of renewable fuel determined in 
                        accordance with subparagraph (B).
                            ``(ii) Noncontiguous state opt-in.--
                                    ``(I) In general.--On the petition 
                                of a noncontiguous State or territory, 
                                the Administrator may allow the 
                                renewable fuel program established 
                                under this subsection to apply in the 
                                noncontiguous State or territory at the 
                                same time or any time after the 
                                Administrator promulgates regulations 
                                under this subparagraph.
                                    ``(II) Other actions.--In carrying 
                                out this clause, the Administrator 
                                may--
                                            ``(aa) issue or revise 
                                        regulations under this 
                                        paragraph;
                                            ``(bb) establish applicable 
                                        percentages under paragraph 
                                        (3);
                                            ``(cc) provide for the 
                                        generation of credits under 
                                        paragraph (5); and
                                            ``(dd) take such other 
                                        actions as are necessary to 
                                        allow for the application of 
                                        the renewable fuels program in 
                                        a noncontiguous State or 
                                        territory.
                            ``(iii) Provisions of regulations.--
                        Regardless of the date of promulgation, the 
                        regulations promulgated under clause (i)--
                                    ``(I) shall contain compliance 
                                provisions applicable to refineries, 
                                blenders, distributors, and importers, 
                                as appropriate, to ensure that the 
                                requirements of this paragraph are met; 
                                but
                                    ``(II) shall not--
                                            ``(aa) restrict geographic 
                                        areas in which renewable fuel 
                                        may be used; or
                                            ``(bb) impose any per-
                                        gallon obligation for the use 
                                        of renewable fuel.
                            ``(iv) Requirement in case of failure to 
                        promulgate regulations.--If the Administrator 
                        does not promulgate regulations under clause 
                        (i), the percentage of renewable fuel in 
                        gasoline sold or dispensed to consumers in the 
                        United States, on a volume basis, shall be 3.2 
                        percent for calendar year 2006.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2006 through 2012.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for any of calendar years 
                        2006 through 2012 shall be determined in 
                        accordance with the following table:

                                    Applicable volume of renewable fuel
``Calendar year:                              (in billions of gallons):
    2006..........................................                  4.0
    2007..........................................                  4.7
    2008..........................................                  5.4
    2009..........................................                  6.1
    2010..........................................                  6.8
    2011..........................................                  7.4
    2012..........................................                 8.0.
                            ``(ii) Calendar year 2013 and thereafter.--
                        Subject to clauses (iii) and (iv), for the 
                        purposes of subparagraph (A), the applicable 
                        volume for calendar year 2013 and each calendar 
                        year thereafter shall be determined by the 
                        Administrator, in coordination with the 
                        Secretary of Agriculture and the Secretary of 
                        Energy, based on a review of the implementation 
                        of the program during calendar years 2006 
                        through 2012, including a review of--
                                    ``(I) the impact of the use of 
                                renewable fuels on the environment, air 
                                quality, energy security, job creation, 
                                and rural economic development; and
                                    ``(II) the expected annual rate of 
                                future production of renewable fuels, 
                                including cellulosic ethanol.
                            ``(iii) Minimum quantity derived from 
                        cellulosic biomass.--For calendar year 2013 and 
                        each calendar year thereafter--
                                    ``(I) the applicable volume 
                                referred to in clause (ii) shall 
                                contain a minimum of 250,000,000 
                                gallons that are derived from 
                                cellulosic biomass; and
                                    ``(II) the 2.5-to-1 ratio referred 
                                to in paragraph (4) shall not apply.
                            ``(iv) Minimum applicable volume.--For the 
                        purpose of subparagraph (A), the applicable 
                        volume for calendar year 2013 and each calendar 
                        year thereafter shall be not less than the 
                        product obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 8,000,000,000 
                                        gallons of renewable fuel; 
                                        bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2012.
            ``(3) Applicable percentages.--
                    ``(A) Provision of estimate of volumes of Gasoline 
                sales.--Not later than October 31 of each of calendar 
                years 2005 through 2011, the Administrator of the 
                Energy Information Administration shall provide to the 
                Administrator of the Environmental Protection Agency an 
                estimate, with respect to the following calendar year, 
                of the volumes of gasoline projected to be sold or 
                introduced into commerce in the United States.
                    ``(B) Determination of applicable percentages.--
                            ``(i) In general.--Not later than November 
                        30 of each of calendar years 2005 through 2012, 
                        based on the estimate provided under 
                        subparagraph (A), the Administrator of the 
                        Environmental Protection Agency shall determine 
                        and publish in the Federal Register, with 
                        respect to the following calendar year, the 
                        renewable fuel obligation that ensures that the 
                        requirements of paragraph (2) are met.
                            ``(ii) Required elements.--The renewable 
                        fuel obligation determined for a calendar year 
                        under clause (i) shall--
                                    ``(I) be applicable to refineries, 
                                blenders, and importers, as 
                                appropriate;
                                    ``(II) be expressed in terms of a 
                                volume percentage of gasoline sold or 
                                introduced into commerce in the United 
                                States; and
                                    ``(III) subject to subparagraph 
                                (C)(i), consist of a single applicable 
                                percentage that applies to all 
                                categories of persons specified in 
                                subclause (I).
                    ``(C) Adjustments.--In determining the applicable 
                percentage for a calendar year, the Administrator shall 
                make adjustments--
                            ``(i) to prevent the imposition of 
                        redundant obligations on any person specified 
                        in subparagraph (B)(ii)(I); and
                            ``(ii) to account for the use of renewable 
                        fuel during the previous calendar year by small 
                        refineries that are exempt under paragraph (9).
            ``(4) Cellulosic biomass ethanol.--For the purpose of 
        paragraph (2), 1 gallon of cellulosic biomass ethanol shall be 
        considered to be the equivalent of 2.5 gallons of renewable 
        fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (2)(A) shall provide--
                            ``(i) for the generation of an appropriate 
                        amount of credits by any person that refines, 
                        blends, or imports gasoline that contains a 
                        quantity of renewable fuel that is greater than 
                        the quantity required under paragraph (2);
                            ``(ii) for the generation of an appropriate 
                        amount of credits for biodiesel; and
                            ``(iii) for the generation of credits by 
                        small refineries in accordance with paragraph 
                        (9)(C).
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Duration of credits.--A credit generated 
                under this paragraph shall be valid to show compliance 
                for the calendar year in which the credit was 
                generated.
                    ``(D) Inability to generate or purchase sufficient 
                credits.--The regulations promulgated under paragraph 
                (2)(A) shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements of paragraph (2) to 
                carry forward a renewable fuel deficit on condition 
                that the person, in the calendar year following the 
                year in which the renewable fuel deficit is created--
                            ``(i) achieves compliance with the 
                        renewable fuel requirement under paragraph (2); 
                        and
                            ``(ii) generates or purchases additional 
                        renewable fuel credits to offset the renewable 
                        fuel deficit of the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2006 
                through 2012, the Administrator of the Energy 
                Information Administration shall conduct a study of 
                renewable fuel blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuel.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator of the Environmental Protection Agency 
                shall promulgate regulations to ensure that 35 percent 
                or more of the quantity of renewable fuel necessary to 
                meet the requirements of paragraph (2) is used during 
                each of the 2 periods specified in subparagraph (D) of 
                each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuel necessary to meet the 
                        requirements of paragraph (2) has been used 
                        during 1 of the 2 periods specified in 
                        subparagraph (D) of the calendar year; and
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years.
                    ``(D) Periods.--The 2 periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusion.--Renewable fuel blended or 
                consumed in calendar year 2006 in a State that has 
                received a waiver under section 209(b) shall not be 
                included in the study under subparagraph (A).
                    ``(F) State exemption from seasonality 
                requirements.--Notwithstanding any other provision of 
                law, the seasonality requirement relating to renewable 
                fuel use established by this paragraph shall not apply 
                to any State that has received a waiver under section 
                209(b).
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirements of 
                paragraph (2) in whole or in part on petition by 1 or 
                more States by reducing the national quantity of 
                renewable fuel required under paragraph (2)--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirement would severely harm the economy 
                        or environment of a State, a region, or the 
                        United States; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply.
                    ``(B) Petitions for waivers.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, shall approve or disapprove a 
                State petition for a waiver of the requirements of 
                paragraph (2) within 90 days after the date on which 
                the petition is received by the Administrator.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.
            ``(8) Study and waiver for initial year of program.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this paragraph, the Secretary 
                of Energy shall conduct for the Administrator a study 
                assessing whether the renewable fuel requirement under 
                paragraph (2) will likely result in significant adverse 
                impacts on consumers in 2006, on a national, regional, 
                or State basis.
                    ``(B) Required evaluations.--The study shall 
                evaluate renewable fuel--
                            ``(i) supplies and prices;
                            ``(ii) blendstock supplies; and
                            ``(iii) supply and distribution system 
                        capabilities.
                    ``(C) Recommendations by the Secretary.--Based on 
                the results of the study, the Secretary of Energy shall 
                make specific recommendations to the Administrator 
                concerning waiver of the requirements of paragraph (2), 
                in whole or in part, to prevent any adverse impacts 
                described in subparagraph (A).
                    ``(D) Waiver.--
                            ``(i) In general.--Not later than 270 days 
                        after the date of enactment of this paragraph, 
                        the Administrator shall, if and to the extent 
                        recommended by the Secretary of Energy under 
                        subparagraph (C), waive, in whole or in part, 
                        the renewable fuel requirement under paragraph 
                        (2) by reducing the national quantity of 
                        renewable fuel required under paragraph (2) in 
                        calendar year 2006.
                            ``(ii) No effect on waiver authority.--
                        Clause (i) does not limit the authority of the 
                        Administrator to waive the requirements of 
                        paragraph (2) in whole, or in part, under 
                        paragraph (7).
            ``(9) Small refineries.--
                    ``(A) Temporary exemption.--
                            ``(i) In general.--The requirements of 
                        paragraph (2) shall not apply to small 
                        refineries until calendar year 2011.
                            ``(ii) Extension of exemption.--
                                    ``(I) Study by Secretary of 
                                Energy.--Not later than December 31, 
                                2008, the Secretary of Energy shall 
                                conduct for the Administrator a study 
                                to determine whether compliance with 
                                the requirements of paragraph (2) would 
                                impose a disproportionate economic 
                                hardship on small refineries.
                                    ``(II) Extension of exemption.--In 
                                the case of a small refinery that the 
                                Secretary of Energy determines under 
                                subclause (I) would be subject to a 
                                disproportionate economic hardship if 
                                required to comply with paragraph (2), 
                                the Administrator shall extend the 
                                exemption under clause (i) for the 
                                small refinery for a period of not less 
                                than 2 additional years.
                    ``(B) Petitions based on disproportionate economic 
                hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        under subparagraph (A) for the reason of 
                        disproportionate economic hardship.
                            ``(ii) Evaluation of petitions.--In 
                        evaluating a petition under clause (i), the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study under subparagraph 
                        (A)(ii) and other economic factors.
                            ``(iii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted by a small refinery for a hardship 
                        exemption not later than 90 days after the date 
                        of receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that the small refinery waives the 
                exemption under subparagraph (A), the regulations 
                promulgated under paragraph (2)(A) shall provide for 
                the generation of credits by the small refinery under 
                paragraph (5) beginning in the calendar year following 
                the date of notification.
                    ``(D) Opt-in for small refineries.--A small 
                refinery shall be subject to the requirements of 
                paragraph (2) if the small refinery notifies the 
                Administrator that the small refinery waives the 
                exemption under subparagraph (A).
            ``(10) Ethanol market concentration analysis.--
                    ``(A) Analysis.--
                            ``(i) In general.--Not later than 180 days 
                        after the date of enactment of this paragraph, 
                        and annually thereafter, the Federal Trade 
                        Commission shall perform a market concentration 
                        analysis of the ethanol production industry 
                        using the Herfindahl-Hirschman Index to 
                        determine whether there is sufficient 
                        competition among industry participants to 
                        avoid price-setting and other anticompetitive 
                        behavior.
                            ``(ii) Scoring.--For the purpose of scoring 
                        under clause (i) using the Herfindahl-Hirschman 
                        Index, all marketing arrangements among 
                        industry participants shall be considered.
                    ``(B) Report.--Not later than December 1, 2005, and 
                annually thereafter, the Federal Trade Commission shall 
                submit to Congress and the Administrator a report on 
                the results of the market concentration analysis 
                performed under subparagraph (A)(i).
    ``(p) Renewable Fuel Safe Harbor.--
            ``(1) In general.--
                    ``(A) Safe harbor.--Notwithstanding any other 
                provision of Federal or State law, no renewable fuel 
                (as defined in subsection (o)(1)) used or intended to 
                be used as a motor vehicle fuel, nor any motor vehicle 
                fuel containing renewable fuel, shall be deemed to be 
                defective in design or manufacture by reason of the 
                fact that the fuel is, or contains, renewable fuel, 
                if--
                            ``(i) the fuel does not violate a control 
                        or prohibition imposed by the Administrator 
                        under this section; and
                            ``(ii) the manufacturer of the fuel is in 
                        compliance with all requests for information 
                        under subsection (b).
                    ``(B) Safe harbor not applicable.--In any case in 
                which subparagraph (A) does not apply to a quantity of 
                fuel, the existence of a design defect or manufacturing 
                defect with respect to the fuel shall be determined 
                under otherwise applicable law.
            ``(2) Exception.--This subsection does not apply to ethers.
            ``(3) Applicability.--This subsection applies with respect 
        to all claims filed on or after the date of enactment of this 
        subsection.''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or (n)'' 
                each place it appears and inserting ``(n), or (o)''; 
                and
                    (B) in the second sentence, by striking ``or (m)'' 
                and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) Exclusion From Ethanol Waiver.--Section 211(h) of the Clean Air 
Act (42 U.S.C. 7545(h)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Exclusion from ethanol waiver.--
                    ``(A) Promulgation of regulations.--Upon 
                notification, accompanied by supporting documentation, 
                from the Governor of a State that the Reid vapor 
                pressure limitation established by paragraph (4) will 
                increase emissions that contribute to air pollution in 
                any area in the State, the Administrator shall, by 
                regulation, apply, in lieu of the Reid vapor pressure 
                limitation established by paragraph (4), the Reid vapor 
                pressure limitation established by paragraph (1) to all 
                fuel blends containing gasoline and 10 percent 
                denatured anhydrous ethanol that are sold, offered for 
                sale, dispensed, supplied, offered for supply, 
                transported, or introduced into commerce in the area 
                during the high ozone season.
                    ``(B) Deadline for promulgation.--The Administrator 
                shall promulgate regulations under subparagraph (A) not 
                later than 90 days after the date of receipt of a 
                notification from a Governor under that subparagraph.
                    ``(C) Effective date.--
                            ``(i) In general.--With respect to an area 
                        in a State for which the Governor submits a 
                        notification under subparagraph (A), the 
                        regulations under that subparagraph shall take 
                        effect on the later of--
                                    ``(I) the first day of the first 
                                high ozone season for the area that 
                                begins after the date of receipt of the 
                                notification; or
                                    ``(II) 1 year after the date of 
                                receipt of the notification.
                            ``(ii) Extension of effective date Based on 
                        determination of insufficient supply.--
                                    ``(I) In general.--If, after 
                                receipt of a notification with respect 
                                to an area from a Governor of a State 
                                under subparagraph (A), the 
                                Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person and after 
                                consultation with the Secretary of 
                                Energy, that the promulgation of 
                                regulations described in subparagraph 
                                (A) would result in an insufficient 
                                supply of gasoline in the State, the 
                                Administrator, by regulation--
                                            ``(aa) shall extend the 
                                        effective date of the 
                                        regulations under clause (i) 
                                        with respect to the area for 
                                        not more than 1 year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 2 
                                        additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.

SEC. 212. RENEWABLE FUEL.

    (a) In General.--The Clean Air Act is amended by inserting after 
section 211 (42 U.S.C. 7411) the following:

``SEC. 212. RENEWABLE FUEL.

    ``(a) Definitions.--In this section:
            ``(1) Municipal solid waste.--The term `municipal solid 
        waste' has the meaning given the term `solid waste' in section 
        1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).
            ``(2) RFG State.--The term `RFG State' means a State in 
        which is located 1 or more covered areas (as defined in section 
        211(k)(10)(D)).
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
    ``(b) Survey of Renewable Fuel Market.--
            ``(1) Survey and report.--Not later than December 1, 2006, 
        and annually thereafter, the Administrator shall--
                    ``(A) conduct, with respect to each conventional 
                gasoline use area and each reformulated gasoline use 
                area in each State, a survey to determine the market 
                shares of--
                            ``(i) conventional gasoline containing 
                        ethanol;
                            ``(ii) reformulated gasoline containing 
                        ethanol;
                            ``(iii) conventional gasoline containing 
                        renewable fuel; and
                            ``(iv) reformulated gasoline containing 
                        renewable fuel; and
                    ``(B) submit to Congress, and make publicly 
                available, a report on the results of the survey under 
                subparagraph (A).
            ``(2) Recordkeeping and reporting requirements.--
                    ``(A) In general.--The Administrator may require 
                any refiner, blender, or importer to keep such records 
                and make such reports as are necessary to ensure that 
                the survey conducted under paragraph (1) is accurate.
                    ``(B) Reliance on existing requirements.--To avoid 
                duplicative requirements, in carrying out subparagraph 
                (A), the Administrator shall rely, to the maximum 
                extent practicable, on reporting and recordkeeping 
                requirements in effect on the date of enactment of this 
                section.
            ``(3) Confidentiality.--Activities carried out under this 
        subsection shall be conducted in a manner designed to protect 
        confidentiality of individual responses.
    ``(c)  Cellulosic Biomass Ethanol And Municipal Solid Waste Loan 
Guarantee Program.--
            ``(1) In general.--Funds may be provided for the cost (as 
        defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 661 
        et seq.)) of loan guarantees issued under title XIV of the 
        Energy Policy Act of 2005 to carry out commercial demonstration 
        projects for celluosic biomass and sucrose-derived ethanol.
            ``(2) Demonstration projects.--
                    ``(A) In general.--The Secretary shall issue loan 
                guarantees under this section to carry out not more 
                than 4 projects to commercially demonstrate the 
                feasibility and viability of producing cellulosic 
                biomass ethanol or sucrose-derived ethanol, including 
                at least 1 project that uses cereal straw as a 
                feedstock and 1 project that uses municipal solid waste 
                as a feedstock.
                    ``(B) Design capacity.--Each project shall have a 
                design capacity to produce at least 30,000,000 gallons 
                of cellulosic biomass ethanol each year.
            ``(3) Applicant assurances.--An applicant for a loan 
        guarantee under this section shall provide assurances, 
        satisfactory to the Secretary, that--
                    ``(A) the project design has been validated through 
                the operation of a continuous process facility with a 
                cumulative output of at least 50,000 gallons of 
                ethanol;
                    ``(B) the project has been subject to a full 
                technical review;
                    ``(C) the project is covered by adequate project 
                performance guarantees;
                    ``(D) the project, with the loan guarantee, is 
                economically viable; and
                    ``(E) there is a reasonable assurance of repayment 
                of the guaranteed loan.
            ``(4) Limitations.--
                    ``(A) Maximum guarantee.--Except as provided in 
                subparagraph (B), a loan guarantee under this section 
                may be issued for up to 80 percent of the estimated 
                cost of a project, but may not exceed $250,000,000 for 
                a project.
                    ``(B) Additional guarantees.--
                            ``(i) In general.--The Secretary may issue 
                        additional loan guarantees for a project to 
                        cover up to 80 percent of the excess of actual 
                        project cost over estimated project cost but 
                        not to exceed 15 percent of the amount of the 
                        original guarantee.
                            ``(ii) Principal and interest.--Subject to 
                        subparagraph (A), the Secretary shall guarantee 
                        100 percent of the principal and interest of a 
                        loan made under subparagraph (A).
            ``(5) Equity contributions.--To be eligible for a loan 
        guarantee under this section, an applicant for the loan 
        guarantee shall have binding commitments from equity investors 
        to provide an initial equity contribution of at least 20 
        percent of the total project cost.
            ``(6) Insufficient amounts.--If the amount made available 
        to carry out this section is insufficient to allow the 
        Secretary to make loan guarantees for 3 projects described in 
        subsection (b), the Secretary shall issue loan guarantees for 1 
        or more qualifying projects under this section in the order in 
        which the applications for the projects are received by the 
        Secretary.
            ``(7) Approval.--An application for a loan guarantee under 
        this section shall be approved or disapproved by the Secretary 
        not later than 90 days after the application is received by the 
        Secretary.
    ``(d) Authorization of Appropriations for Resource Center.--There 
is authorized to be appropriated, for a resource center to further 
develop bioconversion technology using low-cost biomass for the 
production of ethanol at the Center for Biomass-Based Energy at the 
Mississippi State University and the Oklahoma State University, 
$4,000,000 for each of fiscal years 2005 through 2007.
    ``(e) Renewable Fuel Production Research and Development Grants.--
            ``(1) In general.--The Administrator shall provide grants 
        for the research into, and development and implementation of, 
        renewable fuel production technologies in RFG States with low 
        rates of ethanol production, including low rates of production 
        of cellulosic biomass ethanol.
            ``(2) Eligibility.--
                    ``(A) In general.--The entities eligible to receive 
                a grant under this subsection are academic institutions 
                in RFG States, and consortia made up of combinations of 
                academic institutions, industry, State government 
                agencies, or local government agencies in RFG States, 
                that have proven experience and capabilities with 
                relevant technologies.
                    ``(B) Application.--To be eligible to receive a 
                grant under this subsection, an eligible entity shall 
                submit to the Administrator an application in such 
                manner and form, and accompanied by such information, 
                as the Administrator may specify.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $25,000,000 for 
        each of fiscal years 2006 through 2010.
    ``(f) Cellulosic Biomass Ethanol Conversion Assistance.--
            ``(1) In general.--The Secretary may provide grants to 
        merchant producers of cellulosic biomass ethanol in the United 
        States to assist the producers in building eligible production 
        facilities described in paragraph (2) for the production of 
        cellulosic biomass ethanol.
            ``(2) Eligible production facilities.--A production 
        facility shall be eligible to receive a grant under this 
        subsection if the production facility--
                    ``(A) is located in the United States; and
                    ``(B) uses cellulosic biomass feedstocks derived 
                from agricultural residues or municipal solid waste.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection--
                    ``(A) $250,000,000 for fiscal year 2005; and
                    ``(B) $400,000,000 for fiscal year 2006.''.
    (b) Conforming Amendment.--The table of contents for the Clean Air 
Act (42 U.S.C. 7401 prec.) is amended by inserting after the item 
relating to section 211 the following:

``Sec. 212. Renewable fuels''.

SEC. 213. SURVEY OF RENEWABLE FUELS CONSUMPTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(m) Survey of Renewable Fuels Consumption.--
            ``(1) In general.--In order to improve the ability to 
        evaluate the effectiveness of the Nation's renewable fuels 
        mandate, the Administrator shall conduct and publish the 
        results of a survey of renewable fuels consumption in the motor 
        vehicle fuels market in the United States monthly, and in a 
        manner designed to protect the confidentiality of individual 
        responses.
            ``(2) Elements of survey.--In conducting the survey, the 
        Administrator shall collect information retrospectively to 
        1998, on a national basis and a regional basis, including--
                    ``(A) the quantity of renewable fuels produced;
                    ``(B) the cost of production;
                    ``(C) the cost of blending and marketing;
                    ``(D) the quantity of renewable fuels blended;
                    ``(E) the quantity of renewable fuels imported; and
                    ``(F) market price data.''.

                 Subtitle C--Federal Reformulated Fuels

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Federal Reformulated Fuels Act 
of 2005''.

SEC. 222. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Use of LUST Funds for Remediation of Contamination From Ether 
Fuel Additives.--Section 9003(h) of the Solid Waste Disposal Act (42 
U.S.C. 6991b(h)) is amended--
            (1) in paragraph (7)(A)--
                    (A) by striking ``paragraphs (1) and (2) of this 
                subsection'' and inserting ``paragraphs (1), (2), and 
                (12)''; and
                    (B) by inserting ``and section 9010'' before 
                ``if''; and
            (2) by adding at the end the following:
            ``(12) Remediation of contamination from ether fuel 
        additives.--
                    ``(A) In general.--The Administrator and the States 
                may use funds made available under section 9013(1) to 
                carry out corrective actions with respect to a release 
                of methyl tertiary butyl ether or other ether fuel 
                additive that presents a threat to human health, 
                welfare, or the environment.
                    ``(B) Applicable authority.--Subparagraph (A) shall 
                be carried out--
                            ``(i) in accordance with paragraph (2), 
                        except that a release with respect to which a 
                        corrective action is carried out under 
                        subparagraph (A) shall not be required to be 
                        from an underground storage tank; and
                            ``(ii) in the case of a State, in 
                        accordance with a cooperative agreement entered 
                        into by the Administrator and the State under 
                        paragraph (7).''.
    (b) Release Prevention and Compliance.--Subtitle I of the Solid 
Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking 
section 9010 and inserting the following:

``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

    ``Funds made available under section 9013(2) from the Leaking 
Underground Storage Tank Trust Fund may be used for conducting 
inspections, or for issuing orders or bringing actions under this 
subtitle--
            ``(1) by a State (pursuant to section 9003(h)(7)) acting 
        under--
                    ``(A) a program approved under section 9004; or
                    ``(B) State requirements regulating underground 
                storage tanks that are similar or identical to this 
                subtitle, as determined by the Administrator; and
            ``(2) by the Administrator, acting under this subtitle or a 
        State program approved under section 9004.

``SEC. 9011. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to amounts made available under section 2007(f), 
there are authorized to be appropriated from the Leaking Underground 
Storage Tank Trust Fund, notwithstanding section 9508(c)(1) of the 
Internal Revenue Code of 1986--
            ``(1) to carry out section 9003(h)(12), $200,000,000 for 
        fiscal year 2005, to remain available until expended; and
            ``(2) to carry out section 9010--
                    ``(A) $50,000,000 for fiscal year 2005; and
                    ``(B) $30,000,000 for fiscal years 2006 through 
                2010.''.
    (c) Technical Amendments.--
            (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
        prec. 6901) is amended by striking the item relating to section 
        9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Authorization of appropriations.''.
            (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
        U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
        inserting ``substances''.
            (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
        U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and 
        (d) of this section'' and inserting ``subsections (c) and 
        (d)''.
            (4) Section 9004(a) of the Solid Waste Disposal Act (42 
        U.S.C. 6991c(a)) is amended in the second sentence by striking 
        ``referred to'' and all that follows and inserting ``referred 
        to in subparagraph (A) or (B), or both, of section 9001(2).''.
            (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
        6991d) is amended--
                    (A) in subsection (a), by striking ``study taking'' 
                and inserting ``study, taking'';
                    (B) in subsection (b)(1), by striking ``relevent'' 
                and inserting ``relevant''; and
                    (C) in subsection (b)(4), by striking 
                ``Evironmental'' and inserting ``Environmental''.

SEC. 223. RESTRICTIONS ON THE USE OF MTBE.

    (a) Findings.--Congress finds that--
            (1) since 1979, methyl tertiary butyl ether (referred to in 
        this section as ``MTBE'') has been used nationwide at low 
        levels in gasoline to replace lead as an octane booster or 
        anti-knocking agent;
            (2) Public Law 101-549 (commonly known as the ``Clean Air 
        Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) established 
        a fuel oxygenate standard under which reformulated gasoline 
        must contain at least 2 percent oxygen by weight;
            (3) at the time of the adoption of the fuel oxygenate 
        standard, Congress was aware that--
                    (A) increased use of MTBE could result from the 
                adoption of that standard; and
                    (B) the use of MTBE would likely be needed to 
                implement that standard;
            (4) Congress is aware that gasoline and its component 
        additives have leaked from storage tanks, with consequences for 
        water quality;
            (5) the fuel industry responded to the fuel oxygenate 
        standard established by Public Law 101-549 by making 
        substantial investments in--
                    (A) MTBE production capacity; and
                    (B) systems to deliver MTBE-containing gasoline to 
                the marketplace;
            (6) when leaked or spilled into the environment, MTBE may 
        cause serious problems of drinking water quality;
            (7) in recent years, MTBE has been detected in water 
        sources throughout the United States;
            (8) MTBE can be detected by smell and taste at low 
        concentrations;
            (9) while small quantities of MTBE can render water 
        supplies unpalatable, the precise human health effects of MTBE 
        consumption at low levels are yet unknown as of the date of 
        enactment of this Act;
            (10) in the report entitled ``Achieving Clean Air and Clean 
        Water: The Report of the Blue Ribbon Panel on Oxygenates in 
        Gasoline'' and dated September 1999, Congress was urged--
                    (A) to eliminate the fuel oxygenate standard;
                    (B) to greatly reduce use of MTBE; and
                    (C) to maintain the environmental performance of 
                reformulated gasoline;
            (11) Congress has--
                    (A) reconsidered the relative value of MTBE in 
                gasoline; and
                    (B) decided to eliminate use of MTBE as a fuel 
                additive;
            (12) the timeline for elimination of use of MTBE as a fuel 
        additive must be established in a manner that achieves an 
        appropriate balance among the goals of--
                    (A) environmental protection;
                    (B) adequate energy supply; and
                    (C) reasonable fuel prices; and
            (13) it is appropriate for Congress to provide some limited 
        transition assistance--
                    (A) to merchant producers of MTBE who produced MTBE 
                in response to a market created by the oxygenate 
                requirement contained in the Clean Air Act (42 U.S.C. 
                7401 et seq.); and
                    (B) for the purpose of mitigating any fuel supply 
                problems that may result from elimination of a widely-
                used fuel additive.
    (b) Purposes.--The purposes of this section are--
            (1) to eliminate use of MTBE as a fuel oxygenate; and
            (2) to provide assistance to merchant producers of MTBE in 
        making the transition from producing MTBE to producing other 
        fuel additives.
    (c) Authority for Water Quality Protection From Fuels.--Section 
211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``fuel or fuel additive or'' after 
                ``Administrator any''; and
                    (B) by striking ``air pollution which'' and 
                inserting ``air pollution, or water pollution, that'';
            (2) in paragraph (4)(B), by inserting ``or water quality 
        protection,'' after ``emission control,''; and
            (3) by adding at the end the following:
            ``(5) Restrictions on use of MTBE.--
                    ``(A) In general.--Subject to subparagraph (E), not 
                later than 4 years after the date of enactment of this 
                paragraph, the use of methyl tertiary butyl ether in 
                motor vehicle fuel in any State other than a State 
                described in subparagraph (C) is prohibited.
                    ``(B) Regulations.--The Administrator shall 
                promulgate regulations to effect the prohibition in 
                subparagraph (A).
                    ``(C) States that authorize use.--A State described 
                in this subparagraph is a State that submits to the 
                Administrator a notice that the State authorizes use of 
                methyl tertiary butyl ether in motor vehicle fuel sold 
                or used in the State.
                    ``(D) Publication of notice.--The Administrator 
                shall publish in the Federal Register each notice 
                submitted by a State under subparagraph (C).
                    ``(E) Trace quantities.--In carrying out 
                subparagraph (A), the Administrator may allow trace 
                quantities of methyl tertiary butyl ether, not to 
                exceed 0.5 percent by volume, to be present in motor 
                vehicle fuel in cases that the Administrator determines 
                to be appropriate.
            ``(6) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--
                            ``(i) Grants.--The Secretary of Energy, in 
                        consultation with the Administrator, may make 
                        grants to merchant producers of methyl tertiary 
                        butyl ether in the United States to assist the 
                        producers in the conversion of eligible 
                        production facilities described in subparagraph 
                        (C) to the production of--
                                    ``(I) iso-octane or alkylates, 
                                unless the Administrator, in 
                                consultation with the Secretary of 
                                Energy, determines that transition 
                                assistance for the production of iso-
                                octane or alkylates is inconsistent 
                                with the criteria specified in 
                                subparagraph (B); and
                                    ``(II) any other fuel additive that 
                                meets the criteria specified in 
                                subparagraph (B).
                    ``(B) Criteria.--The criteria referred to in 
                subparagraph (A) are that--
                            ``(i) use of the fuel additive is 
                        consistent with this subsection;
                            ``(ii) the Administrator has not determined 
                        that the fuel additive may reasonably be 
                        anticipated to endanger public health or the 
                        environment;
                            ``(iii) the fuel additive has been 
                        registered and tested, or is being tested, in 
                        accordance with the requirements of this 
                        section; and
                            ``(iv) the fuel additive will contribute to 
                        replacing quantities of motor vehicle fuel 
                        rendered unavailable as a result of paragraph 
                        (5).
                    ``(C) Eligible production facilities.--A production 
                facility shall be eligible to receive a grant under 
                this paragraph if the production facility--
                            ``(i) is located in the United States; and
                            ``(ii) produced methyl tertiary butyl ether 
                        for consumption in nonattainment areas during 
                        the period--
                                    ``(I) beginning on the date of 
                                enactment of this paragraph; and
                                    ``(II) ending on the effective date 
                                of the prohibition on the use of methyl 
                                tertiary butyl ether under paragraph 
                                (5).
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2005 
                through 2008.''.
    (d) No Effect on Law Concerning State Authority.--The amendments 
made by subsection (c) have no effect on any law enacted or in effect 
before the date of enactment of this Act concerning the authority of 
States to limit the use of methyl tertiary butyl ether in motor vehicle 
fuel.

SEC. 224. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Elimination.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended--
                    (A) in paragraph (2)--
                            (i) in the second sentence of subparagraph 
                        (A), by striking ``(including the oxygen 
                        content requirement contained in subparagraph 
                        (B))'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively;
                    (B) in paragraph (3)(A), by striking clause (v); 
                and
                    (C) in paragraph (7)--
                            (i) in subparagraph (A)--
                                    (I) by striking clause (i); and
                                    (II) by redesignating clauses (ii) 
                                and (iii) as clauses (i) and (ii), 
                                respectively; and
                            (ii) in subparagraph (C)--
                                    (I) by striking clause (ii); and
                                    (II) by redesignating clause (iii) 
                                as clause (ii).
            (2) Applicability.--The amendments made by paragraph (1) 
        apply--
                    (A) in the case of a State that has received a 
                waiver under section 209(b) of the Clean Air Act (42 
                U.S.C. 7543(b)), beginning on the date of enactment of 
                this Act; and
                    (B) in the case of any other State, beginning 270 
                days after the date of enactment of this Act.
    (b) Maintenance of Toxic Air Pollutant Emission Reductions.--
Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (1) by striking ``Within 1 year after the enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''; and
            (2) by adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant emissions 
                reductions from reformulated Gasoline.--
                            ``(i) Definition of PADD.--In this 
                        subparagraph the term `PADD' means a Petroleum 
                        Administration for Defense District.
                            ``(ii) Regulations concerning emissions of 
                        toxic air pollutants.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph, the Administrator shall establish 
                        by regulation, for each refinery or importer 
                        (other than a refiner or importer in a State 
                        that has received a waiver under section 209(b) 
                        with respect to gasoline produced for use in 
                        that State), standards for toxic air pollutants 
                        from use of the reformulated gasoline produced 
                        or distributed by the refiner or importer that 
                        maintain the reduction of the average annual 
                        aggregate emissions of toxic air pollutants for 
                        reformulated gasoline produced or distributed 
                        by the refiner or importer during calendar 
                        years 2001 and 2002 (as determined on the basis 
                        of data collected by the Administrator with 
                        respect to the refiner or importer).
                            ``(iii) Standards applicable to specific 
                        refineries or importers.--
                                    ``(I) Applicability of standards.--
                                For any calendar year, the standards 
                                applicable to a refiner or importer 
                                under clause (ii) shall apply to the 
                                quantity of gasoline produced or 
                                distributed by the refiner or importer 
                                in the calendar year only to the extent 
                                that the quantity is less than or equal 
                                to the average annual quantity of 
                                reformulated gasoline produced or 
                                distributed by the refiner or importer 
                                during calendar years 2001 and 2002.
                                    ``(II) Applicability of other 
                                standards.--For any calendar year, the 
                                quantity of gasoline produced or 
                                distributed by a refiner or importer 
                                that is in excess of the quantity 
                                subject to subclause (I) shall be 
                                subject to standards for emissions of 
                                toxic air pollutants promulgated under 
                                subparagraph (A) and paragraph (3)(B).
                            ``(iv) Credit program.--The Administrator 
                        shall provide for the granting and use of 
                        credits for emissions of toxic air pollutants 
                        in the same manner as provided in paragraph 
                        (7).
                            ``(v) Regional protection of toxics 
                        reduction baselines.--
                                    ``(I) In general.--Not later than 
                                60 days after the date of enactment of 
                                this subparagraph, and not later than 
                                April 1 of each calendar year that 
                                begins after that date of enactment, 
                                the Administrator shall publish in the 
                                Federal Register a report that 
                                specifies, with respect to the previous 
                                calendar year--
                                            ``(aa) the quantity of 
                                        reformulated gasoline produced 
                                        that is in excess of the 
                                        average annual quantity of 
                                        reformulated gasoline produced 
                                        in 2001 and 2002; and
                                            ``(bb) the reduction of the 
                                        average annual aggregate 
                                        emissions of toxic air 
                                        pollutants in each PADD, based 
                                        on retail survey data or data 
                                        from other appropriate sources.
                                    ``(II) Effect of failure to 
                                maintain aggregate toxics reductions.--
                                If, in any calendar year, the reduction 
                                of the average annual aggregate 
                                emissions of toxic air pollutants in a 
                                PADD fails to meet or exceed the 
                                reduction of the average annual 
                                aggregate emissions of toxic air 
                                pollutants in the PADD in calendar 
                                years 2001 and 2002, the Administrator, 
                                not later than 90 days after the date 
                                of publication of the report for the 
                                calendar year under subclause (I), 
                                shall--
                                            ``(aa) identify, to the 
                                        maximum extent practicable, the 
                                        reasons for the failure, 
                                        including the sources, volumes, 
                                        and characteristics of 
                                        reformulated gasoline that 
                                        contributed to the failure; and
                                            ``(bb) promulgate revisions 
                                        to the regulations promulgated 
                                        under clause (ii), to take 
                                        effect not earlier than 180 
                                        days but not later than 270 
                                        days after the date of 
                                        promulgation, to provide that, 
                                        notwithstanding clause 
                                        (iii)(II), all reformulated 
                                        gasoline produced or 
                                        distributed at each refiner or 
                                        importer shall meet the 
                                        standards applicable under 
                                        clause (iii)(I) beginning not 
                                        later than April 1 of the 
                                        calendar year following 
                                        publication of the report under 
                                        subclause (I) and in each 
                                        calendar year thereafter.
                            ``(vi) Not later than July 1, 2007, the 
                        Administrator shall promulgate final 
                        regulations to control hazardous air pollutants 
                        from motor vehicles and motor vehicle fuels, as 
                        provided for in section 80.1045 of title 40, 
                        Code of Federal Regulations (as in effect on 
                        the date of enactment of this subparagraph), 
                        and as authorized under section 202(1) of the 
                        Clean Air Act. If the Administrator promulgates 
                        by such date, final regulations to control 
                        hazardous air pollutants from motor vehicles 
                        and motor vehicle fuels that achieve and 
                        maintain greater overall reductions in 
                        emissions of air toxics from reformulated 
                        gasoline than the reductions that would be 
                        achieved under section 211(k)(1)(B) of the 
                        Clean Air Act as amended by this clause, then 
                        sections 21l(k)(1)(i) through 211(k)(1)(v) 
                        shall be null and void and regulations 
                        promulgated thereunder shall be rescinded and 
                        have no further effect.
    (c) Commingling.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended by adding at the end the following:
            ``(11) Commingling.--The regulations under paragraph (1) 
        shall permit the commingling at a retail station of 
        reformulated gasoline containing ethanol and reformulated 
        gasoline that does not contain ethanol if, each time such 
        commingling occurs--
                    ``(A) the retailer notifies the Administrator 
                before the commingling, identifying the exact location 
                of the retail station and the specific tank in which 
                the commingling will take place; and
                    ``(B) the retailer certifies that the reformulated 
                gasoline resulting from the commingling will meet all 
                applicable requirements for reformulated gasoline, 
                including content and emission performance 
                standards.''.
    (d) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency shall revise the 
reformulated gasoline regulations under subpart D of part 80 of title 
40, Code of Federal Regulations, to consolidate the regulations 
applicable to VOC-Control Regions 1 and 2 under section 80.41 of that 
title by eliminating the less stringent requirements applicable to 
gasoline designated for VOC-Control Region 2 and instead applying the 
more stringent requirements applicable to gasoline designated for VOC-
Control Region 1.
    (e) Savings Clause.--
            (1) In general.--Nothing in this section or any amendment 
        made by this section affects or prejudices any legal claim or 
        action with respect to regulations promulgated by the 
        Administrator before the date of enactment of this Act 
        regarding--
                    (A) emissions of toxic air pollutants from motor 
                vehicles; or
                    (B) the adjustment of standards applicable to a 
                specific refinery or importer made under those 
                regulations.
            (2) Adjustment of standards.--
                    (A) Applicability.--The Administrator may apply any 
                adjustments to the standards applicable to a refinery 
                or importer under subparagraph (B)(iii)(I) of section 
                211(k)(1) of the Clean Air Act (as added by subsection 
                (b)(2)), except that--
                            (i) the Administrator shall revise the 
                        adjustments to be based only on calendar years 
                        2001 and 2002;
                            (ii) any such adjustment shall not be made 
                        at a level below the average percentage of 
                        reductions of emissions of toxic air pollutants 
                        for reformulated gasoline supplied to PADD I 
                        during calendar years 2001 and 2002; and
                            (iii) in the case of an adjustment based on 
                        toxic air pollutant emissions from reformulated 
                        gasoline significantly below the national 
                        annual average emissions of toxic air 
                        pollutants from all reformulated gasoline--
                                    (I) the Administrator may revise 
                                the adjustment to take account of the 
                                scope of the prohibition on methyl 
                                tertiary butyl ether imposed by 
                                paragraph (5) of section 211(c) of the 
                                Clean Air Act (as added by section 
                                211(c)); and
                                    (II) any such adjustment shall 
                                require the refiner or importer, to the 
                                maximum extent practicable, to maintain 
                                the reduction achieved during calendar 
                                years 2001 and 2002 in the average 
                                annual aggregate emissions of toxic air 
                                pollutants from reformulated gasoline 
                                produced or distributed by the refiner 
                                or importer.

SEC. 225. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
              ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``may also'' and inserting ``shall, 
                on a regular basis,''; and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) to conduct tests to determine potential 
                public health and environmental effects of the fuel or 
                additive (including carcinogenic, teratogenic, or 
                mutagenic effects); and''; and
            (2) by adding at the end the following:
            ``(4) Study on certain fuel additives and blendstocks.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this paragraph, the Administrator 
                shall--
                            ``(i) conduct a study on the effects on 
                        public health (including the effects on 
                        children, pregnant women, minority or low-
                        income communities, and other sensitive 
                        populations), air quality, and water resources 
                        of increased use of, and the feasibility of 
                        using as substitutes for methyl tertiary butyl 
                        ether in gasoline--
                                    ``(I) ethyl tertiary butyl ether;
                                    ``(II) tertiary amyl methyl ether;
                                    ``(III) di-isopropyl ether;
                                    ``(IV) tertiary butyl alcohol;
                                    ``(V) other ethers and heavy 
                                alcohols, as determined by then 
                                Administrator;
                                    ``(VI) ethanol;
                                    ``(VII) iso-octane; and
                                    ``(VIII) alkylates; and
                            ``(ii) conduct a study on the effects on 
                        public health (including the effects on 
                        children, pregnant women, minority or low-
                        income communities, and other sensitive 
                        populations), air quality, and water resources 
                        of the adjustment for ethanol-blended 
                        reformulated gasoline to the volatile organic 
                        compounds performance requirements that are 
                        applicable under paragraphs (1) and (3) of 
                        section 211(k); and
                            ``(iii) submit to the Committee on 
                        Environment and Public Works of the Senate and 
                        the Committee on Energy and Commerce of the 
                        House of Representatives a report describing 
                        the results of the studies under clauses (i) 
                        and (ii).
                    ``(B) Contracts for study.--In carrying out this 
                paragraph, the Administrator may enter into 1 or more 
                contracts with nongovernmental entities such as--
                            ``(i) the national energy laboratories; and
                            ``(ii) institutions of higher education (as 
                        defined in section 101 of the Higher Education 
                        Act of 1965 (20 U.S.C. 1001)).''.

SEC. 226. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by 
section 205(a)) is amended by inserting after subsection (p) the 
following:
    ``(q) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
            ``(1) Anti-backsliding analysis.--
                    ``(A) Draft analysis.--Not later than 4 years after 
                the date of enactment of this paragraph, the 
                Administrator shall publish for public comment a draft 
                analysis of the changes in emissions of air pollutants 
                and air quality due to the use of motor vehicle fuel 
                and fuel additives resulting from implementation of the 
                amendments made by the Federal Reformulated Fuels Act 
                of 2005.
                    ``(B) Final analysis.--After providing a reasonable 
                opportunity for comment but not later than 5 years 
                after the date of enactment of this paragraph, the 
                Administrator shall publish the analysis in final form.
            ``(2) Emissions model.--For the purposes of this section, 
        not later than 4 years after the date of enactment of this 
        paragraph, the Administrator shall develop and finalize an 
        emissions model that reflects, to the maximum extent 
        practicable, the effects of gasoline characteristics or 
        components on emissions from vehicles in the motor vehicle 
        fleet during calendar year 2007.
            ``(3) Permeation effects study.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Administrator 
                shall conduct a study, and report to Congress the 
                results of the study, on the effects of ethanol content 
                in gasoline on permeation, the process by which fuel 
                molecules migrate through the elastomeric materials 
                (rubber and plastic parts) that make up the fuel and 
                fuel vapor systems of a motor vehicle.
                    ``(B) Evaporative emissions.--The study shall 
                include estimates of the increase in total evaporative 
                emissions likely to result from the use of gasoline 
                with ethanol content in a motor vehicle, and the fleet 
                of motor vehicles, due to permeation.''.

SEC. 227. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is 
amended--
            (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
        inserting the following:
            ``(6) Opt-in areas.--
                    ``(A) Classified areas.--
                            ``(i) In general.--Upon'';
            (2) in subparagraph (B), by striking ``(B) If'' and 
        inserting the following:
                            ``(ii) Effect of insufficient domestic 
                        capacity to produce reformulated Gasoline.--
                        If'';
            (3) in subparagraph (A)(ii) (as redesignated by paragraph 
        (2))--
                    (A) in the first sentence, by striking 
                ``subparagraph (A)'' and inserting ``clause (i)''; and
                    (B) in the second sentence, by striking ``this 
                paragraph'' and inserting ``this subparagraph''; and
            (4) by adding at the end the following:
                    ``(B) Ozone transport Region.--
                            ``(i) Application of prohibition.--
                                    ``(I) In general.--On application 
                                of the Governor of a State in the ozone 
                                transport region established by section 
                                184(a), the Administrator, not later 
                                than 180 days after the date of receipt 
                                of the application, shall apply the 
                                prohibition specified in paragraph (5) 
                                to any area in the State (other than an 
                                area classified as a marginal, 
                                moderate, serious, or severe ozone 
                                nonattainment area under subpart 2 of 
                                part D of title I) unless the 
                                Administrator determines under clause 
                                (iii) that there is insufficient 
                                capacity to supply reformulated 
                                gasoline.
                                    ``(II) Publication of 
                                application.--As soon as practicable 
                                after the date of receipt of an 
                                application under subclause (I), the 
                                Administrator shall publish the 
                                application in the Federal Register.
                            ``(ii) Period of applicability.--Under 
                        clause (i), the prohibition specified in 
                        paragraph (5) shall apply in a State--
                                    ``(I) commencing as soon as 
                                practicable but not later than 2 years 
                                after the date of approval by the 
                                Administrator of the application of the 
                                Governor of the State; and
                                    ``(II) ending not earlier than 4 
                                years after the commencement date 
                                determined under subclause (I).
                            ``(iii) Extension of commencement date 
                        Based on insufficient capacity.--
                                    ``(I) In general.--If, after 
                                receipt of an application from a 
                                Governor of a State under clause (i), 
                                the Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person, after 
                                consultation with the Secretary of 
                                Energy, that there is insufficient 
                                capacity to supply reformulated 
                                gasoline, the Administrator, by 
                                regulation--
                                            ``(aa) shall extend the 
                                        commencement date with respect 
                                        to the State under clause 
                                        (ii)(I) for not more than 1 
                                        year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 2 
                                        additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.

SEC. 228. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
is amended--
            (1) by striking ``(C) A State'' and inserting the 
        following:
                    ``(C) Authority of State to control fuels and fuel 
                additives for reasons of necessity.--
                            ``(i) In general.--A State''; and
            (2) by adding at the end the following:
                            ``(ii) Enforcement by the Administrator.--
                        In any case in which a State prescribes and 
                        enforces a control or prohibition under clause 
                        (i), the Administrator, at the request of the 
                        State, shall enforce the control or prohibition 
                        as if the control or prohibition had been 
                        adopted under the other provisions of this 
                        section.''.

SEC. 229. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall jointly 
        conduct a study of Federal, State, and local requirements 
        concerning motor vehicle fuels, including--
                    (A) requirements relating to reformulated gasoline, 
                volatility (measured in Reid vapor pressure), 
                oxygenated fuel, and diesel fuel; and
                    (B) other requirements that vary from State to 
                State, region to region, or locality to locality.
            (2) Required elements.--The study shall assess--
                    (A) the effect of the variety of requirements 
                described in paragraph (1) on the supply, quality, and 
                price of motor vehicle fuels available to the consumer;
                    (B) the effect of the requirements described in 
                paragraph (1) on achievement of--
                            (i) national, regional, and local air 
                        quality standards and goals; and
                            (ii) related environmental and public 
                        health protection standards and goals 
                        (including the protection of children, pregnant 
                        women, minority or low-income communities, and 
                        other sensitive populations);
                    (C) the effect of Federal, State, and local motor 
                vehicle fuel regulations, including multiple motor 
                vehicle fuel requirements, on--
                            (i) domestic refiners;
                            (ii) the fuel distribution system; and
                            (iii) industry investment in new capacity;
                    (D) the effect of the requirements described in 
                paragraph (1) on emissions from vehicles, refiners, and 
                fuel handling facilities;
                    (E) the feasibility of developing national or 
                regional motor vehicle fuel slates for the 48 
                contiguous States that, while protecting and improving 
                air quality at the national, regional, and local 
                levels, could--
                            (i) enhance flexibility in the fuel 
                        distribution infrastructure and improve fuel 
                        fungibility;
                            (ii) reduce price volatility and costs to 
                        consumers and producers;
                            (iii) provide increased liquidity to the 
                        gasoline market; and
                            (iv) enhance fuel quality, consistency, and 
                        supply; and
                    (F) the feasibility of providing incentives, and 
                the need for the development of national standards 
                necessary, to promote cleaner burning motor vehicle 
                fuel.
    (b) Report.--
            (1) In general.--Not later than June 1, 2008, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall submit to Congress a report on the 
        results of the study conducted under subsection (a).
            (2) Recommendations.--
                    (A) In general.--The report shall contain 
                recommendations for legislative and administrative 
                actions that may be taken--
                            (i) to improve air quality;
                            (ii) to reduce costs to consumers and 
                        producers; and
                            (iii) to increase supply liquidity.
                    (B) Required considerations.--The recommendations 
                under subparagraph (A) shall take into account the need 
                to provide advance notice of required modifications to 
                refinery and fuel distribution systems in order to 
                ensure an adequate supply of motor vehicle fuel in all 
                States.
            (3) Consultation.--In developing the report, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) State and local air pollution control 
                regulators;
                    (D) public health experts;
                    (E) motor vehicle fuel producers and distributors; 
                and
                    (F) the public.

SEC. 230. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

    (a) In General.--Subject to the availability of appropriations 
under subsection (d), the Administrator of the Environmental Protection 
Agency shall, in consultation with the Secretary of Agriculture and the 
Biomass Research and Development Technical Advisory Committee 
established under section 306 of the Biomass Research and Development 
Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note), establish a 
program, to be known as the ``Advanced Biofuel Technologies Program'', 
to demonstrate advanced technologies for the production of alternative 
transportation fuels.
    (b) Priority.--In carrying out the program under subsection (a), 
the Administrator shall give priority to projects that enhance the 
geographical diversity of alternative fuels production and utilize 
feedstocks that represent 10 percent or less of ethanol or biodiesel 
fuel production in the United States during the previous fiscal year.
    (c) Demonstration Projects.--
            (1) In general.--As part of the program under subsection 
        (a), the Administrator shall fund demonstration projects--
                    (A) to develop not less than 4 different conversion 
                technologies for producing cellulosic biomass ethanol; 
                and
                    (B) to develop not less than 5 technologies for 
                coproducing value-added bioproducts (such as 
                fertilizers, herbicides, and pesticides) resulting from 
                the production of biodiesel fuel.
            (2) Administration.--Demonstration projects under this 
        subsection shall be--
                    (A) conducted based on a merit-reviewed, 
                competitive process; and
                    (B) subject to the cost-sharing requirements of 
                section 1002.
    (d) Authorization of appropriations.--There are authorized to be 
appropriated to carry out this section $110,000,000 for each of fiscal 
years 2005 through 2009.

SEC. 231. SUGAR CANE ETHANOL PROGRAM.

    (a) Definition of Program.--In this section, the term ``program'' 
means the Sugar Cane Ethanol Program established by subsection (b).
    (b) Establishment.--There is established within the Environmental 
Protection Agency a program to be known as the ``Sugar Cane Ethanol 
Program''.
    (c) Project.--
            (1) In general.--Subject to the availability of 
        appropriations under subsection (d), in carrying out the 
        program, the Administrator of the Environmental Protection 
        Agency shall establish a project that is--
                    (A) carried out in multiple States--
                            (i) in each of which is produced cane sugar 
                        that is eligible for loans under section 156 of 
                        the Federal Agriculture Improvement and Reform 
                        Act of 1996 (7 U.S.C. 7272), or a similar 
                        subsequent authority; and
                            (ii) at the option of each such State, that 
                        have an incentive program that requires the use 
                        of ethanol in the State; and
                    (B) designed to study the production of ethanol 
                from cane sugar, sugarcane, and sugarcane byproducts.
            (2) Requirements.--A project described in paragraph (1) 
        shall--
                    (A) be limited to the production of ethanol in the 
                States of Florida, Louisiana, Texas, and Hawaii in a 
                way similar to the existing program for the processing 
                of corn for ethanol to demonstrate that the process may 
                be applicable to cane sugar, sugarcane, and sugarcane 
                byproducts;
                    (B) include information on the ways in which the 
                scale of production may be replicated once the sugar 
                cane industry has located sites for, and constructed, 
                ethanol production facilities; and
                    (C) not last more than 3 years.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $36,000,000, to remain available 
until expended.

SEC. 232. NATIONAL PRIORITY PROJECT DESIGNATION.

    (a) Designation of National Priority Projects.--
            (1) In general.--There is established the National Priority 
        Project Designation (referred to in this section as the 
        ``Designation''), which shall be evidenced by a medal bearing 
        the inscription ``National Priority Project''.
            (2) Design and materials.--The medal shall be of such 
        design and materials and bear such additional inscriptions as 
        the President may prescribe.
    (b) Making and Presentation of Designation.--
            (1) In general.--The President, on the basis of 
        recommendations made by the Secretary, shall annually designate 
        organizations that have--
                    (A) advanced the field of renewable energy 
                technology and contributed to North American energy 
                independence; and
                    (B) been certified by the Secretary under 
                subsection (e).
            (2) Presentation.--The President shall designate projects 
        with such ceremonies as the President may prescribe.
            (3) Use of designation.--An organization that receives a 
        Designation under this section may publicize the Designation of 
        the organization as a National Priority Project in advertising.
            (4) Categories in which the designation may be given.--
        Separate Designations shall be made to qualifying projects in 
        each of the following categories:
                    (A) Wind and biomass energy generation projects.
                    (B) Photovoltaic and fuel cell energy generation 
                projects.
                    (C) Energy efficient building and renewable energy 
                projects.
                    (D) First-in-Class projects.
    (c) Selection Criteria.--
            (1) In general.--Certification and selection of the 
        projects to receive the Designation shall be based on criteria 
        established under this subsection.
            (2) Wind, biomass, and building projects.--In the case of a 
        wind, biomass, or building project, the project shall 
        demonstrate that the project will install not less than 30 
        megawatts of renewable energy generation capacity.
            (3) Solar photovoltaic and fuel cell projects.--In the case 
        of a solar photovoltaic or fuel cell project, the project shall 
        demonstrate that the project will install not less than 3 
        megawatts of renewable energy generation capacity.
            (4) Energy efficient building and renewable energy 
        projects.--In the case of an energy efficient building or 
        renewable energy project, in addition to meeting the criteria 
        established under paragraph (2), each building project shall 
        demonstrate that the project will--
                    (A) comply with third-party certification standards 
                for high-performance, sustainable buildings;
                    (B) use whole-building integration of energy 
                efficiency and environmental performance design and 
                technology, including advanced building controls;
                    (C) use renewable energy for at least 50 percent of 
                the energy consumption of the project;
                    (D) comply with applicable Energy Star standards; 
                and
                    (E) include at least 5,000,000 square feet of 
                enclosed space.
            (5) First-in-class use.--Notwithstanding paragraphs (2) 
        through (4), a new building project may qualify under this 
        section if the Secretary determines that the project--
                    (A) represents a First-In-Class use of renewable 
                energy; or
                    (B) otherwise establishes a new paradigm of 
                building integrated renewable energy use or energy 
                efficiency.
    (d) Application.--
            (1) Initial applications.--No later than 120 days after the 
        date of enactment of this Act, and annually thereafter, the 
        Secretary shall publish in the Federal Register an invitation 
        and guidelines for submitting applications, consistent with 
        this section.
            (2) Contents.--The application shall describe the project, 
        or planned project, and the plans to meet the criteria 
        established under subsection (c).
    (e) Certification.--
            (1) In general.--Not later than 60 days after the 
        application period described in subsection (d), and annually 
        thereafter, the Secretary shall certify projects that are 
        reasonably expected to meet the criteria established under 
        subsection (c).
            (2) Certified projects.--The Secretary shall designate 
        personnel of the Department to work with persons carrying out 
        each certified project and ensure that the personnel--
                    (A) provide each certified project with guidance in 
                meeting the criteria established under subsection (c);
                    (B) identify programs of the Department, including 
                National Laboratories and Technology Centers, that will 
                assist each project in meeting the criteria established 
                under subsection (c); and
                    (C) ensure that knowledge and transfer of the most 
                current technology between the applicable resources of 
                the Federal Government (including the National 
                Laboratories and Technology Centers, the Department, 
                and the Environmental Protection Agency) and the 
                certified projects is being facilitated to accelerate 
                commercialization of work developed through those 
                resources.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2006 through 2010.

SEC. 233. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

    The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 
et seq.) is amended in title VI by adding at the end the following:

``SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) The term `eligible grantee' means a local government 
        or municipality, peoples' utility district, irrigation 
        district, and cooperative, nonprofit, or limited-dividend 
        association in a rural area.
            ``(2) The term `incremental hydropower' means additional 
        generation achieved from increased efficiency after January 1, 
        2005, at a hydroelectric dam that was placed in service before 
        January 1, 2005.
            ``(3) The term `renewable energy' means electricity 
        generated from--
                    ``(A) a renewable energy source; or
                    ``(B) hydrogen, other than hydrogen produced from a 
                fossil fuel, that is produced from a renewable energy 
                source.
            ``(4) The term `renewable energy source' means--
                    ``(A) wind;
                    ``(B) ocean waves;
                    ``(C) biomass;
                    ``(D) solar
                    ``(E) landfill gas;
                    ``(F) incremental hydropower;
                    ``(G) livestock methane; or
                    ``(H) geothermal energy.
            ``(5) The term `rural area' means a city, town, or 
        unincorporated area that has a population of not more than 
        10,000 inhabitants.
    ``(b) Grants.--The Secretary, in consultation with the Secretary of 
Agriculture and the Secretary of the Interior, may provide grants under 
this section to eligible grantees for the purpose of--
            ``(1) increasing energy efficiency, siting or upgrading 
        transmission and distribution lines serving rural areas,; or
            ``(2) providing or modernizing electric generation 
        facilities that serve rural areas.
    ``(c) Grant Administration.--(1) The Secretary shall make grants 
under this section based on a determination of cost-effectiveness and 
the most effective use of the funds to achieve the purposes described 
in subsection (b).
    ``(2) For each fiscal year, the Secretary shall allocate grant 
funds under this section equally between the purposes described in 
paragraphs (1) and (2) of subsection (b).
    ``(3) In making grants for the purposes described in subsection 
(b)(2), the Secretary shall give preference to renewable energy 
facilities.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $20,000,000 for 
each of fiscal years 2006 through 2012.''.

SEC. 234. WASTE-DERIVED ETHANOL AND BIODIESEL.

    Section 312(f)(1) of the Energy Policy Act of 1992 (42 U.S.C. 
13220(f)(1)) is amended--
            (1) by striking ```biodiesel' means'' and inserting the 
        following: ```biodiesel'--
                    ``(A) means''; and
            (2) in subparagraph (A) (as designated by paragraph (1)) by 
        striking ``and'' at the end and inserting the following:
                    ``(B) includes biodiesel derived from--
                            ``(i) animal wastes, including poultry fats 
                        and poultry wastes, and other waste materials; 
                        or
                            ``(ii) municipal solid waste and sludges 
                        and oils derived from wastewater and the 
                        treatment of wastewater; and''.''

                       Subtitle D--Insular Energy

SEC. 241. DEFINITIONS.

    In this subtitle:
            (1) Distributed generation.--The term ``distributed 
        generation'' means energy supplied in a rural or off-grid area.
            (2) Insular area.--The term ``insular area'' means--
                    (A) Guam;
                    (B) American Samoa;
                    (C) the Commonwealth of the Northern Mariana 
                Islands;
                    (D) the Federated States of Micronesia;
                    (E) the Republic of the Marshall Islands;
                    (F) the Republic of Palau;
                    (G) the United States Virgin Islands; and
                    (H) the Commonwealth of Puerto Rico.

SEC. 242. ASSESSMENT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary (in consultation with the Secretary of 
Interior) shall--
            (1) conduct an assessment of the energy needs of insular 
        areas; and
            (2) submit a report describing the results of the 
        assessment to--
                    (A) the Committee on Energy and Natural Resources 
                of the Senate;
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives; and
                    (C) the Committee on Resources of the House of 
                Representatives.
    (b) Strategies and Projects.--In conducting the assessment, for 
each of the insular areas, the Secretary shall identify and evaluate 
the strategies or projects with the greatest potential for reducing the 
dependence of the insular area on imported fossil fuels as used for the 
generation of electricity, including strategies and projects for--
            (1) improved supply-side efficiency of centralized 
        electrical generation, transmission, and distribution systems;
            (2) improved demand-side management through--
                    (A) the application of established standards for 
                energy efficiency for appliances;
                    (B) the conduct of energy audits for business and 
                industrial customers; and
                    (C) the use of energy savings performance 
                contracts;
            (3) increased use of renewable energy, including--
                    (A) solar thermal energy for electric generation;
                    (B) solar thermal energy for water heating in large 
                buildings, such as hotels, hospitals, government 
                buildings, and residences;
                    (C) photovoltaic energy;
                    (D) wind energy;
                    (E) hydroelectric energy;
                    (F) wave energy;
                    (G) energy from ocean thermal resources, including 
                ocean thermal-cooling for community air conditioning;
                    (H) water vapor condensation for the production of 
                potable water;
                    (I) fossil fuel and renewable hybrid electrical 
                generation systems; and
                    (J) other strategies or projects that the Secretary 
                may identify as having significant potential; and
            (4) fuel substitution and minimization with indigenous 
        biofuels, such as coconut oil.
    (c) Distributed Generation.--In conducting the assessment, for each 
insular area with a significant need for distributed generation, the 
Secretary shall identify and evaluate the most promising strategies and 
projects described in paragraphs (3) and (4) of subsection (b) for 
meeting that need.
    (d) Factors.--In assessing the potential of any strategy or project 
under this section, the Secretary shall consider--
            (1) the estimated cost of the power or energy to be 
        produced, including--
                    (A) any additional costs associated with the 
                distribution of the generation; and
                    (B) the long-term availability of the generation 
                source;
            (2) the capacity of the local electrical utility to manage, 
        operate, and maintain any project that may be undertaken; and
            (3) other factors the Secretary considers to be 
        appropriate.

SEC. 243. PROJECT FEASIBILITY STUDIES.

    (a) In General.--On a request described in subsection (b), the 
Secretary shall conduct a feasibility study of a project to implement a 
strategy or project identified under section 222 as having the 
potential to--
            (1) significantly reduce the dependence of an insular area 
        on imported oil; or
            (2) provide needed distributed generation to an insular 
        area.
    (b) Request.--The Secretary shall conduct a feasibility study under 
subsection (a) on--
            (1) the request of an electric utility located in an 
        insular area that commits to fund at least 10 percent of the 
        cost of the study; and
            (2) if the electric utility is located in the Federated 
        States of Micronesia, the Republic of the Marshall Islands, or 
        the Republic of Palau, written support for that request by the 
        President or the Ambassador of the affected freely associated 
        state.
    (c) Consultation.--The Secretary shall consult with regional 
utility organizations in--
            (1) conducting feasibility studies under subsection (a); 
        and
            (2) determining the feasibility of potential projects.
    (d) Feasibility.--For the purpose of a feasibility study under 
subsection (a), a project shall be determined to be feasible if the 
project would significantly reduce the dependence of an insular area on 
imported fossil fuels, or provide needed distributed generation to an 
insular area, at a reasonable cost.

SEC. 244. IMPLEMENTATION.

    (a) In General.--On a determination by the Secretary (in 
consultation with the Secretary of the Interior) that a project is 
feasible under section 223 and a commitment by an electric utility to 
operate and maintain the project, the Secretary may provide such 
technical and financial assistance as the Secretary determines is 
appropriate for the implementation of the project.
    (b) Regional Utility Organizations.--In providing assistance under 
subsection (a), the Secretary shall consider providing the assistance 
through regional utility organizations.

SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary--
            (1) $500,000 for the completion of the assessment under 
        section 222;
            (2) $500,000 for each fiscal year for project feasibility 
        studies under section 223; and
            (3) $5,000,000 for each fiscal year for project 
        implementation under section 224.
    (b) Limitation of Funds Received by Insular Areas.--No insular area 
may receive, during any 3-year period, more than 20 percent of the 
total funds made available during that 3-year period under paragraphs 
(2) and (3) of subsection (a) unless the Secretary determines that 
providing funding in excess of that percentage best advances existing 
opportunities to meet the objectives of this subtitle.

                       Subtitle E--Biomass Energy

SEC. 251. DEFINITIONS.

    In this subtitle:
            (1) Biomass.--The term ``biomass'' means nonmerchantable 
        material from, or precommercial thinnings of, trees and woody 
        plants produced from treatments--
                    (A) to reduce hazardous fuels;
                    (B) to reduce or contain disease or insect 
                infestations; or
                    (C) to restore forest health.
            (2) Eligible community.--The term ``eligible community'' 
        means an Indian Reservation, or a county, town, township, 
        municipality, or other similar unit of local government with a 
        population of not more than 50,000 individuals that the 
        Secretary determines is located in an area near Federal or 
        Indian land, that is--
                    (A) at significant risk of catastrophic wildfire, 
                disease, or insect infestation; or
                    (B) diseased or infested by insects.
            (3) Eligible operation.--The term ``eligible operation'' 
        means a facility that--
                    (A) is located within the boundaries of an eligible 
                community; and
                    (B) uses biomass from Federal or Indian land as a 
                raw material to produce electric energy, sensible heat, 
                or transportation fuels.
            (4) Green ton.--The term ``green ton'' means 2,000 pounds 
        of biomass that has not been mechanically or artificially 
        dried.
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (6) Person.--The term ``person'' includes--
                    (A) an individual;
                    (B) an eligible community;
                    (C) an Indian tribe;
                    (D) a small business or a corporation that is 
                incorporated in the United States; and
                    (E) a nonprofit organization.
            (7) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Agriculture, with respect to 
                land within the National Forest System; or
                    (B) the Secretary of the Interior, with respect to 
                Federal land under the jurisdiction of the Secretary of 
                the Interior and Indian land.

SEC. 252. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.

    (a) In General.--The Secretary may make grants to any person that 
owns or operates an eligible operation to offset the costs incurred to 
purchase biomass for use by the eligible operation.
    (b) Priority.--In making grants under subsection (a), the Secretary 
shall give priority to eligible operations that use biomass from the 
highest risk areas, as determined by the Secretary.
    (c) Grant Amount.--A grant provided under this section may not 
exceed $20 per green ton of biomass delivered.
    (d) Monitoring of Grant Recipient Activities.--
            (1) In general.--As a condition of a grant under this 
        section, the grant recipient shall keep such records as the 
        Secretary may require to fully and correctly disclose the use 
        of the grant funds and all transactions involved in the 
        purchase of biomass.
            (2) Access.--On notice by the Secretary, the grant 
        recipient shall provide the Secretary reasonable access to 
        examine the inventory and records of the eligible operation.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section for each of fiscal years 2006 through 
        2010--
                    (A) $12,500,000 to the Secretary of Agriculture; 
                and
                    (B) $12,500,000 to the Secretary of the Interior.
            (2) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.

SEC. 253. IMPROVED BIOMASS UTILIZATION PROGRAM.

    (a) In General.--The Secretary may provide grants to persons in 
eligible communities to offset the costs of developing or researching 
proposals to improve the use of biomass or add value to biomass 
utilization.
    (b) Selection.--Grant recipients shall be selected based on the 
potential of a proposal to--
            (1) develop affordable thermal or electric energy resources 
        for the benefit of an eligible community;
            (2) provide opportunities for the creation or expansion of 
        small business concerns within an eligible community;
            (3) create new job opportunities within an eligible 
        community;
            (4) improve efficiency or develop cleaner technologies for 
        biomass utilization; and
            (5) reduce the hazardous fuel from the highest risk areas.
    (c) Limitation.--No grant provided under this section shall exceed 
$500,000.
    (d) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section for each of fiscal years 2006 through 
        2010--
                    (A) $12,500,000 to the Secretary of Agriculture; 
                and
                    (B) $12,500,000 to the Secretary of the Interior.
            (2) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.

SEC. 254. REPORT.

    Not later than 3 years after the date of enactment of this Act, the 
Secretary of Agriculture and the Secretary of the Interior shall 
jointly submit to Congress a report that describes the interim results 
of the programs carried out under sections 232 and 233.

                     Subtitle F--Geothermal Energy

SEC. 261. COMPETITIVE LEASE SALE REQUIREMENTS.

    Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is 
amended to read as follows:

``SEC. 4. LEASING PROCEDURES.

    ``(a) Nominations.--The Secretary shall accept nominations of land 
to be leased at any time from qualified companies and individuals under 
this Act.
    ``(b) Competitive Lease Sale Required.--
            ``(1) In general.--Except as otherwise specifically 
        provided by this Act, all land to be leased that is not subject 
        to leasing under subsection (c) shall be leased as provided in 
        this subsection to the highest responsible qualified bidder, as 
        determined by the Secretary.
            ``(2) Competitive lease sales.--The Secretary shall hold a 
        competitive lease sale at least once every 2 years for land in 
        a State that has nominations pending under subsection (a) if 
        the land is otherwise available for leasing.
    ``(c) Noncompetitive Leasing.--The Secretary shall make available 
for a period of 2 years for noncompetitive leasing any tract for which 
a competitive lease sale is held, but for which the Secretary does not 
receive any bids in a competitive lease sale.
    ``(d) Pending Lease Applications.--
            ``(1) In general.--It shall be a priority for the 
        Secretary, and for the Secretary of Agriculture with respect to 
        National Forest Systems land, to ensure timely completion of 
        administrative actions necessary to process applications for 
        geothermal leasing pending on May 19, 2005.
            ``(2) Administration.--An application described in 
        paragraph (1) and any lease issued pursuant to the 
        application--
                    ``(A) except as provided in subparagraph (B), shall 
                be subject to this section as in effect on the day 
                before the date of enactment of this paragraph; or
                    ``(B) at the election of the applicant, shall be 
                subject to this section as in effect on the effective 
                date of this paragraph.''.

SEC. 262. DIRECT USE.

    (a) Fees for Direct Use.--Section 5 of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004) is amended--
            (1) in subsection (c), by redesignating paragraphs (1) and 
        (2) as subparagraphs (A) and (B), respectively;
            (2) by redesignating subsections (a) through (d) as 
        paragraphs (1) through (4), respectively;
            (3) by inserting ``(a) In General.--'' after ``Sec. 5.''; 
        and
            (4) by adding at the end the following:
    ``(d) Direct Use.--
            ``(1) In general.--Notwithstanding subsection (a)(1), the 
        Secretary shall establish a schedule of fees, in lieu of 
        royalties for geothermal resources, that a lessee or its 
        affiliate--
                    ``(A) uses for a purpose other than the commercial 
                generation of electricity; and
                    ``(B) does not sell.
            ``(2) Schedule of fees.--The schedule of fees--
                    ``(A) may be based on the quantity or thermal 
                content, or both, of geothermal resources used or any 
                other basis that the Secretary finds appropriate under 
                the circumstances; and
                    ``(B) shall ensure a fair return to the United 
                States for use of the resource.
            ``(3) State or local governments.--If a State or local 
        government is the lessee and uses geothermal resources without 
        sale and for purposes other than commercial generation of 
        electricity, the Secretary shall charge only a nominal fee for 
        use of the resource.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal Steam Act 
of 1970 (30 U.S.C. 1003) (as amended by section 241) is amended adding 
at the end the following:
    ``(e) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify areas in 
which the land to be leased under this Act exclusively for direct use 
of geothermal resources without sale for purposes other than commercial 
generation of electricity may be leased to any qualified applicant that 
first applies for such a lease under regulations issued by the 
Secretary, if the Secretary--
            ``(1) publishes a notice of the land proposed for leasing 
        not later than 120 days before the date of the issuance of the 
        lease;
            ``(2) does not receive during the 120-day period beginning 
        on the date of the publication any nomination to include the 
        land concerned in the next competitive lease sale; and
            ``(3) determines there is no competitive interest in the 
        land to be leased.
    ``(f) Area Subject to Lease for Direct Use.--
            ``(1) In general.--Subject to paragraph (2), a geothermal 
        lease for the direct use of geothermal resources shall cover 
        not more than the quantity of acreage determined by the 
        Secretary to be reasonably necessary for the proposed use.
            ``(2) Limitations.--The quantity of acreage covered by the 
        lease shall not exceed the limitations established under 
        section 7.''.

SEC. 263. ROYALTIES.

    (a) Calculation of Royalties.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        issue a final regulation that provides a simplified methodology 
        for calculating the royalty under subsection (a)(1) of section 
        5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
        amended by section 242(a)).
            (2) Considerations.--In issuing the final regulation under 
        paragraph (1), the Secretary shall--
                    (A) consider the use of a method based on gross 
                proceeds from the sale of electricity; and
                    (B) ensure that the final regulation issued under 
                paragraph (1) results in the same level of royalty 
                revenues over a 10-year period as the regulation in 
                effect on the day before the date of enactment of this 
                Act.
    (b) Royalty Under Existing Leases.--
            (1) In general.--Any lessee under a lease issued under the 
        Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before 
        the date of enactment of this Act may, within the time period 
        specified in paragraph (2), submit to the Secretary of the 
        Interior a request to modify the terms of the lease relating to 
        payment of royalties to comply with--
                    (A) in the case of a lease that meets the 
                requirements of subsection (b) of section 5 of the 
                Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
                amended by section 242(a)), the schedule of fees 
                established under that section; and
                    (B) in the case of any other lease, the methodology 
                established under subsection (a).
            (2) Timing.--A request for a modification under paragraph 
        (1) shall be submitted to the Secretary by the date that is not 
        later than--
                    (A) in the case of a lease for direct use, 18 
                months after the effective date of the schedule of fees 
                established by the Secretary under section 5 of the 
                Geothermal Steam Act of 1970 (30 U.S.C. 1004); or
                    (B) in the case of any other lease, 18 months after 
                the effective date of the final regulation issued under 
                subsection (a).
            (3) Application of modification.--If the lessee requests 
        modification of a lease under paragraph (1)--
                    (A) the Secretary shall modify the lease to comply 
                with--
                            (i) in the case of a lease for direct use, 
                        the schedule of fees established by the 
                        Secretary under section 5 of the Geothermal 
                        Steam Act of 1970 (30 U.S.C. 1004); or
                            (ii) in the case of any other lease, the 
                        methodology established under subsection (a); 
                        and
                    (B) the modification shall apply to any use of 
                geothermal steam and any associated geothermal 
                resources to which subsection (a) applies that occurs 
                after the date of the modification.
            (4) Consultation.--The Secretary shall consult with the 
        State and local governments affected by any proposed changes in 
        lease royalty terms under this subsection.

SEC. 264. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LAND.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary of the Interior and the 
Secretary of Agriculture shall enter into, and submit to Congress, a 
memorandum of understanding in accordance with this section regarding 
leasing and permitting for geothermal development of public land and 
National Forest System land under the respective jurisdictions of the 
Secretaries.
    (b) Lease and Permit Applications.--The memorandum of understanding 
shall--
            (1) identify areas with geothermal potential on land 
        included in the National Forest System and, if necessary, 
        require review of management plans to consider leasing under 
        the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) as a 
        land use; and
            (2) establish an administrative procedure for processing 
        geothermal lease applications, including lines of authority, 
        steps in application processing, and time limits for 
        application processing.
    (c) Data Retrieval System.--The memorandum of understanding shall 
establish a joint data retrieval system that--
            (1) is capable of tracking lease and permit applications; 
        and
            (2) provides to the applicant information as to the status 
        of an application within the Departments of the Interior and 
        Agriculture, including an estimate of the time required for 
        administrative action.

SEC. 265. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

    Not later than 3 years after the date of enactment of this Act and 
thereafter as the availability of data and developments in technology 
warrants, the Secretary of the Interior, acting through the Director of 
the United States Geological Survey and in cooperation with the States, 
shall--
            (1) update the Assessment of Geothermal Resources made 
        during 1978; and
            (2) submit to Congress the updated assessment.

SEC. 266. COOPERATIVE OR UNIT PLANS.

    Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C. 1017) is 
amended to read as follows:

``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

    ``(a) Adoption of Units by Lessees.--
            ``(1) In general.--For the purpose of more properly 
        conserving the natural resources of any geothermal reservoir, 
        field, or like area, or any part thereof (whether or not any 
        part of the geothermal reservoir, field, or like area, is 
        subject to any cooperative plan of development or operation 
        (referred to in this section as a `unit agreement')), lessees 
        thereof and their representatives may unite with each other, or 
        jointly or separately with others, in collectively adopting and 
        operating under a unit agreement for the reservoir, field, or 
        like area, or any part thereof, including direct use resources, 
        if determined and certified by the Secretary to be necessary or 
        advisable in the public interest.
            ``(2) Majority interest of single leases.--A majority 
        interest of owners of any single lease shall have the authority 
        to commit the lease to a unit agreement.
            ``(3) Initiative of secretary.--The Secretary may also 
        initiate the formation of a unit agreement, or require an 
        existing Federal lease to commit to a unit agreement, if in the 
        public interest.
            ``(4) Modification of lease requirements by secretary.--
                    ``(A) In general.--The Secretary may, in the 
                discretion of the Secretary and with the consent of the 
                holders of leases involved, establish, alter, change, 
                or revoke rates of operations (including drilling, 
                operations, production, and other requirements) of the 
                leases and make conditions with respect to the leases, 
                with the consent of the lessees, in connection with the 
                creation and operation of any such unit agreement as 
                the Secretary may consider necessary or advisable to 
                secure the protection of the public interest.
                    ``(B) Unlike terms or rates.--Leases with unlike 
                lease terms or royalty rates shall not be required to 
                be modified to be in the same unit.
    ``(b) Requirement of Plans Under New Leases.--The Secretary may--
            ``(1) provide that geothermal leases issued under this Act 
        shall contain a provision requiring the lessee to operate under 
        a unit agreement; and
            ``(2) prescribe the unit agreement under which the lessee 
        shall operate, which shall adequately protect the rights of all 
        parties in interest, including the United States.
    ``(c) Modification of Rate of Prospecting, Development, and 
Production.--The Secretary may require that any unit agreement 
authorized by this section that applies to land owned by the United 
States contain a provision under which authority is vested in the 
Secretary, or any person, committee, or State or Federal officer or 
agency as may be designated in the unit agreement to alter or modify, 
from time to time, the rate of prospecting and development and the 
quantity and rate of production under the unit agreement.
    ``(d) Exclusion From Determination of Holding or Control.--Any land 
that is subject to a unit agreement approved or prescribed by the 
Secretary under this section shall not be considered in determining 
holdings or control under section 7.
    ``(e) Pooling of Certain Land.--If separate tracts of land cannot 
be independently developed and operated to use geothermal steam and 
associated geothermal resources pursuant to any section of this Act--
            ``(1) the land, or a portion of the land, may be pooled 
        with other land, whether or not owned by the United States, for 
        purposes of development and operation under a communitization 
        agreement providing for an apportionment of production or 
        royalties among the separate tracts of land comprising the 
        production unit, if the pooling is determined by the Secretary 
        to be in the public interest; and
            ``(2) operation or production pursuant to the 
        communitization agreement shall be treated as operation or 
        production with respect to each tract of land that is subject 
        to the communitization agreement.
    ``(f) Unit Agreement Review.--
            ``(1) In general.--Not later than 5 years after the date of 
        approval of any unit agreement and at least every 5 years 
        thereafter, the Secretary shall--
                    ``(A) review each unit agreement; and
                    ``(B) after notice and opportunity for comment, 
                eliminate from inclusion in the unit agreement any land 
                that the Secretary determines is not reasonably 
                necessary for unit operations under the unit agreement.
            ``(2) Basis for elimination.--The elimination shall--
                    ``(A) be based on scientific evidence; and
                    ``(B) occur only if the elimination is determined 
                by the Secretary to be for the purpose of conserving 
                and properly managing the geothermal resource.
            ``(3) Extension.--Any land eliminated under this subsection 
        shall be eligible for an extension under section 6(g) if the 
        land meets the requirements for the extension.
    ``(g) Drilling or Development Contracts.--
            ``(1) In general.--The Secretary may, on such conditions as 
        the Secretary may prescribe, approve drilling or development 
        contracts made by 1 or more lessees of geothermal leases, with 
        1 or more persons, associations, or corporations if, in the 
        discretion of the Secretary, the conservation of natural 
        resources or the public convenience or necessity may require or 
        the interests of the United States may be best served by the 
        approval.
            ``(2) Holdings or control.--Each lease operated under an 
        approved drilling or development contract, and interest under 
        the contract, shall be excepted in determining holdings or 
        control under section 7.
    ``(h) Coordination With State Governments.--The Secretary shall 
coordinate unitization and pooling activities with appropriate State 
agencies.''.

SEC. 267. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
amended by section 242(a)) is amended in subsection (a) by striking 
paragraph (2) and inserting the following:
            ``(2) a royalty on any byproduct that is a mineral 
        specified in the first section of the Mineral Leasing Act (30 
        U.S.C. 181), and that is derived from production under the 
        lease, at the rate of the royalty that applies under that Act 
        to production of the mineral under a lease under that Act;''.

SEC. 268. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

    Section 6(i) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1005(i)) is amended by striking paragraph (2) and inserting the 
following:
    ``(2) The Secretary shall, by regulation, establish payments under 
this subsection at levels that ensure the diligent development of the 
lease.''.

SEC. 269. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004) (as amended by section 242(a)) is amended in 
subsection (a) by striking paragraph (3) and inserting the following:
            ``(3) payment in advance of an annual rental of not less 
        than--
                    ``(A) for each of the first through tenth years of 
                the lease--
                            ``(i) in the case of a lease awarded in a 
                        noncompetitive lease sale, $1 per acre or 
                        fraction thereof; or
                            ``(ii) in the case of a lease awarded in a 
                        competitive lease sale, $2 per acre or fraction 
                        thereof for the first year and $3 per acre or 
                        fraction thereof for each of the second through 
                        10th years; and
                    ``(B) for each year after the 10th year of the 
                lease, $5 per acre or fraction thereof;''.
    (b) Termination of Lease for Failure to Pay Rental.--Section 5 of 
the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by 
section 242(a)) is amended by adding at the end the following:
    ``(c) Termination of Lease for Failure to Pay Rental.--
            ``(1) In general.--The Secretary shall terminate any lease 
        with respect to which rental is not paid in accordance with 
        this Act and the terms of the lease under which the rental is 
        required, on the expiration of the 45-day period beginning on 
        the date of the failure to pay the rental.
            ``(2) Notification.--The Secretary shall promptly notify a 
        lessee that has not paid rental required under the lease that 
        the lease will be terminated at the end of the period referred 
        to in paragraph (1).
            ``(3) Reinstatement.--A lease that would otherwise 
        terminate under paragraph (1) shall not terminate under that 
        paragraph if the lessee pays to the Secretary, before the end 
        of the period referred to in paragraph (1), the amount of 
        rental due plus a late fee equal to 10 percent of the 
        amount.''.

SEC. 270. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.

      Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
(as amended by section 249(b)) is amended by adding at the end the 
following:
    ``(d) Advanced Royalties Required for Cessation of Production.--
            ``(1) In general.--Subject to paragraphs (2) and (3), if, 
        at any time after commercial production under a lease is 
        achieved, production ceases for any reason, the lease shall 
        remain in full force and effect for a period of not more than 
        an aggregate number of 10 years beginning on the date 
        production ceases, if, during the period in which production is 
        ceased, the lessee pays royalties in advance at the monthly 
        average rate at which the royalty was paid during the period of 
        production.
            ``(2) Reduction.--The amount of any production royalty paid 
        for any year shall be reduced (but not below 0) by the amount 
        of any advanced royalties paid under the lease to the extent 
        that the advance royalties have not been used to reduce 
        production royalties for a prior year.
            ``(3) Exceptions.--Paragraph (1) shall not apply if the 
        cessation in production is required or otherwise caused by--
                    ``(A) the Secretary;
                    ``(B) the Secretary of the Air Force;
                    ``(C) the Secretary of the Army;
                    ``(D) the Secretary of the Navy;
                    ``(E) a State or a political subdivision of a 
                State; or
                    ``(F) a force majeure.''.

SEC. 271. LEASING AND PERMITTING ON FEDERAL LAND WITHDRAWN FOR MILITARY 
              PURPOSES.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Secretary of the Interior and the Secretary of 
Defense, in consultation with the Secretary of the Air Force, the 
Secretary of the Army, the Secretary of the Navy, interested States, 
political subdivisions of States, and representatives of the geothermal 
industry, and other interested persons, shall submit to the appropriate 
committees of Congress a joint report on leasing and permitting 
activities for geothermal energy on Federal land withdrawn for military 
purposes.
    (b) Requirements.--The report required under subsection (a) shall 
include--
            (1) a description of the military geothermal program, 
        including a description of--
                    (A) any differences between the military geothermal 
                program and the nonmilitary geothermal program, 
                including required security procedures and operational 
                considerations; and
                    (B) the reasons the differences described in 
                subparagraph (A) are significant;
            (2) with respect to the military geothermal program, a 
        description of--
                    (A) revenues or energy provided to the Department 
                of Defense and facilities of the Department Defense; 
                and
                    (B) royalty structures, as applicable;
            (3) any revenue sharing with States and political 
        subdivisions of States and other benefits from--
                    (A) the implementation of the Geothermal Steam Act 
                of 1970 (30 U.S.C 1001 et seq.) and other applicable 
                Federal law by the Secretary of the Interior; and
                    (B) the administration of geothermal leasing under 
                section 2689 of title 10, United States Code, by the 
                Secretary of Defense;
            (4) if appropriate--
                    (A) a description of the current methods and 
                procedures used to ensure interagency coordination, as 
                needed, in developing renewable energy sources on 
                Federal land withdrawn for military purposes; and
                    (B) an identification of any new procedures that 
                would improve interagency coordination to ensure 
                efficient processing and administration of leases or 
                contracts for geothermal energy on Federal land 
                withdrawn for military purposes, consistent with the 
                defense purposes of the withdrawals; and
            (5) recommendations for any legislative or administrative 
        actions that would increase geothermal production, including--
                    (A) a common royalty structure;
                    (B) leasing procedures; and
                    (C) other changes that--
                            (i) increase production;
                            (ii) offset military operation costs; or
                            (iii) enhance the ability of Federal 
                        agencies to develop geothermal resources.
    (c) Effect.--Nothing in this section affects the legal status of 
geothermal leasing and development conducted by the Department of the 
Interior and the Department of Defense.

SEC. 272. TECHNICAL AMENDMENTS.

    (a) The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is 
amended by striking ``geothermal steam and associated geothermal 
resources'' each place it appears and inserting ``geothermal 
resources''.
    (b) The first section of the Geothermal Steam Act of 1970 (30 
U.S.C. 1001 note) is amended by striking ``That this'' and inserting 
the following:

``SECTION 1. SHORT TITLE.

    ``This''.
    (c) Section 2 of the Geothermal Steam Act of 1970 (30 U.S.C. 1001) 
is amended--
            (1) by striking ``Sec. 2. As'' and inserting the following:

``SEC. 2. DEFINITIONS.

    ``As''; and
            (2) by striking subsection (e) and inserting the following:
            ``(e) `direct use' means use of geothermal resources for 
        commercial, residential, agricultural, public facilities, or 
        other energy needs other than the commercial production of 
        electricity; and''.
    (d) Section 3 of the Geothermal Steam Act of 1970 (30 U.S.C. 1002) 
is amended by striking ``Sec. 3. Subject'' and inserting the following:

``SEC. 3 . LANDS SUBJECT TO GEOTHERMAL LEASING.

    ``Subject''.
    (e) Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
is amended by striking ``Sec. 5. Geothermal'' and inserting the 
following:

``SEC. 5. RENTS AND ROYALTIES.

    ``Geothermal''.
    (f) Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) 
is amended by striking ``Sec. 6. (a) The'' and inserting the following:

``SEC. 6. DURATION OF LEASES.

    ``(a) The''.
    (g) Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) 
is amended by striking ``Sec. 7. A geothermal'' and inserting the 
following:

``SEC. 7. ACREAGE OF GEOTHERMAL LEASE.

    ``A geothermal''.
    (h) Section 8 of the Geothermal Steam Act of 1970 (30 U.S.C. 1007) 
is amended by striking ``Sec. 8. (a) The'' and inserting the following:

``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.

    ``(a) The''.
    (i) Section 9 of the Geothermal Steam Act of 1970 (30 U.S.C. 1008) 
is amended by striking ``Sec. 9. If'' and inserting the following:

``SEC. 9. BYPRODUCTS.

    ``If''.
    (j) Section 10 of the Geothermal Steam Act of 1970 (30 U.S.C. 1009) 
is amended by striking ``Sec. 10. The'' and inserting the following:

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

    ``The''.
    (k) Section 11 of the Geothermal Steam Act of 1970 (30 U.S.C. 1010) 
is amended by striking ``Sec. 11. The'' and inserting the following:

``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

    ``The''.
    (l) Section 12 of the Geothermal Steam Act of 1970 (30 U.S.C. 1011) 
is amended by striking ``Sec. 12. Leases'' and inserting the following:

``SEC. 12. TERMINATION OF LEASES.

    ``Leases''.
    (m) Section 13 of the Geothermal Steam Act of 1970 (30 U.S.C. 1012) 
is amended by striking ``Sec. 13. The'' and inserting the following:

``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.

    ``The''.
    (n) Section 14 of the Geothermal Steam Act of 1970 (30 U.S.C. 1013) 
is amended by striking ``Sec. 14. Subject'' and inserting the 
following:

``SEC. 14. SURFACE LAND USE.

    ``Subject''.
    (o) Section 15 of the Geothermal Steam Act of 1970 (30 U.S.C. 1014) 
is amended by striking ``Sec. 15. (a) Geothermal'' and inserting the 
following:

``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.

    ``(a) Geothermal''.
    (p) Section 16 of the Geothermal Steam Act of 1970 (30 U.S.C. 1015) 
is amended by striking ``Sec. 16. Leases'' and inserting the following:

``SEC. 16. REQUIREMENT FOR LESSEES.

    ``Leases''.
    (q) Section 17 of the Geothermal Steam Act of 1970 (30 U.S.C. 1016) 
is amended by striking ``Sec. 17. Administration'' and inserting the 
following:

``SEC. 17. ADMINISTRATION.

    ``Administration''.
    (r) Section 19 of the Geothermal Steam Act of 1970 (30 U.S.C. 1018) 
is amended by striking ``Sec. 19. Upon'' and inserting the following:

``SEC. 19. DATA FROM FEDERAL AGENCIES.

    ``Upon''.
    (s) Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) 
is amended by striking ``Sec. 20. Subject'' and inserting the 
following:

``SEC. 20. DISPOSITION OF AMOUNTS RECEIVED FROM SALES, BONUSES, 
              ROYALTIES, AND RENTALS.

    ``Subject''.
    (t) Section 21 of the Geothermal Steam Act of 1970 (30 U.S.C. 1020) 
is amended by striking ``Sec. 21.'' and all that follows through ``(b) 
Geothermal'' and inserting the following:

``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL 
              RIGHTS.

    ``Geothermal''.
    (u) Section 22 of the Geothermal Steam Act of 1970 (30 U.S.C. 1021) 
is amended by striking ``Sec. 22. Nothing'' and inserting the 
following:

``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.

    ``Nothing''.
    (v) Section 23 of the Geothermal Steam Act of 1970 (30 U.S.C. 1022) 
is amended by striking ``Sec. 23. (a) All'' and inserting the 
following:

``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.

    ``(a) All''.
    (w) Section 24 of the Geothermal Steam Act of 1970 (30 U.S.C. 1023) 
is amended by striking ``Sec. 24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

    ``The''.
    (x) Section 25 of the Geothermal Steam Act of 1970 (30 U.S.C. 1024) 
is amended by striking ``Sec. 25. As'' and inserting the following:

``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.

    ``As''.
    (y) Section 26 of the Geothermal Steam Act of 1970 is amended by 
striking ``Sec. 26. The'' and inserting the following:

``SEC. 26. AMENDMENT.

    ``The''.
    (z) Section 27 of the Geothermal Steam Act of 1970 (30 U.S.C. 1025) 
is amended by striking ``Sec. 27. The'' and inserting the following:

``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.

    ``The''.
    (aa) Section 28 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1026) is amended by striking ``Sec. 28. (a)(1) The'' and inserting the 
following:

``SEC. 28. SIGNIFICANT THERMAL FEATURES.

    ``(a)(1) The''.
    (bb) Section 29 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1027) is amended by striking ``Sec. 29. The'' and inserting the 
following:

``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

    ``The''.

                       Subtitle G--Hydroelectric

SEC. 281. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) Federal Reservations.--Section 4(e) of the Federal Power Act 
(16 U.S.C. 797(e)) is amended by inserting after ``adequate protection 
and utilization of such reservation.'' at the end of the first proviso 
the following: ``The license applicant and any party to the proceeding 
shall be entitled to a determination on the record, after opportunity 
for an agency trial-type hearing of no more than 90 days, on any 
disputed issues of material fact with respect to such conditions. All 
disputed issues of material fact raised by any party shall be 
determined in a single trial-type hearing to be conducted within a time 
frame established by the Commission for each license proceeding. Within 
90 days of the date of enactment of this Act, the Secretaries of the 
Interior, Commerce, and Agriculture shall establish jointly, by rule, 
the procedures for such expedited trial-type hearing, including the 
opportunity to undertake discovery and cross-examine witnesses, in 
consultation with the Federal Energy Regulatory Commission.''.
    (b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 811) 
is amended by inserting after ``and such fishways as may be prescribed 
by the Secretary of Commerce.'' the following: ``The license applicant 
and any party to the proceeding shall be entitled to a determination on 
the record, after opportunity for an agency trial-type hearing of no 
more than 90 days, on any disputed issues of material fact with respect 
to such fishways. All disputed issues of material fact raised by any 
party shall be determined in a single trial-type hearing to be 
conducted within a time frame established by the Commission for each 
license proceeding. Within 90 days of the date of enactment of this 
Act, the Secretaries of the Interior, Commerce, and Agriculture shall 
establish jointly, by rule, the procedures for such expedited trial-
type hearing, including the opportunity to undertake discovery and 
cross-examine witnesses, in consultation with the Federal Energy 
Regulatory Commission.''.
    (c) Alternative Conditions and Prescriptions.--Part I of the 
Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the 
following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

    ``(a) Alternative Conditions.--(1) Whenever any person applies for 
a license for any project works within any reservation of the United 
States, and the Secretary of the department under whose supervision 
such reservation falls (referred to in this subsection as the 
`Secretary') deems a condition to such license to be necessary under 
the first proviso of section 4(e), the license applicant or any other 
party to the license proceeding may propose an alternative condition.
    ``(2) Notwithstanding the first proviso of section 4(e), the 
Secretary shall accept the proposed alternative condition referred to 
in paragraph (1), and the Commission shall include in the license such 
alternative condition, if the Secretary determines, based on 
substantial evidence provided by the license applicant, any other party 
to the proceeding, or otherwise available to the Secretary, that such 
alternative condition--
            ``(A) provides for the adequate protection and utilization 
        of the reservation; and
            ``(B) the Secretary concurs with the license applicant's 
        judgment that the alternative condition will either--
                    ``(i) cost significantly less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production, as compared to the 
                condition initially deemed necessary by the Secretary.
    ``(3) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any condition under section 4(e) or 
alternative condition it accepts under this section, a written 
statement explaining the basis for such condition, and reason for not 
accepting any alternative condition under this section. The written 
statement must demonstrate that the Secretary gave equal consideration 
to the effects of the condition adopted and alternatives not accepted 
on energy supply, distribution, cost, and use; flood control; 
navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant and others. 
The Secretary shall also submit, together with the aforementioned 
written statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary's decision.
    ``(4) If the Secretary does not accept an applicant's alternative 
condition under this section, and the Commission finds that the 
Secretary's condition would be inconsistent with the purposes of this 
part, or other applicable law, the Commission may refer the dispute to 
the Commission's Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commission and issue a 
non-binding advisory within 90 days. The Secretary may accept the 
Dispute Resolution Service advisory unless the Secretary finds that the 
recommendation will not adequately protect the reservation. The 
Secretary shall submit the advisory and the Secretary's final written 
determination into the record of the Commission's proceeding.
    ``(b) Alternative Prescriptions.--(1) Whenever the Secretary of the 
Interior or the Secretary of Commerce prescribes a fishway under 
section 18, the license applicant or any other party to the license 
proceeding may propose an alternative to such prescription to 
construct, maintain, or operate a fishway.
    ``(2) Notwithstanding section 18, the Secretary of the Interior or 
the Secretary of Commerce, as appropriate, shall accept and prescribe, 
and the Commission shall require, the proposed alternative referred to 
in paragraph (1), if the Secretary of the appropriate department 
determines, based on substantial evidence provided by the license 
applicant, any other party to the proceeding, or otherwise available to 
the Secretary, that such alternative--
            ``(A) will be no less protective than the fishway initially 
        prescribed by the Secretary; and
            ``(B) the Secretary concurs with the license applicant's 
        judgment that the alternative prescription will either--
                    ``(i) cost significantly less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production, as compared to the 
                fishway initially deemed necessary by the Secretary.
    ``(3) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any prescription under section 18 or 
alternative prescription it accepts under this section, a written 
statement explaining the basis for such prescription, and reason for 
not accepting any alternative prescription under this section. The 
written statement must demonstrate that the Secretary gave equal 
consideration to the effects of the prescription adopted and 
alternatives not accepted on energy supply, distribution, cost, and 
use; flood control; navigation; water supply; and air quality (in 
addition to the preservation of other aspects of environmental 
quality); based on such information as may be available to the 
Secretary, including information voluntarily provided in a timely 
manner by the applicant and others. The Secretary shall also submit, 
together with the aforementioned written statement, all studies, data, 
and other factual information available to the Secretary and relevant 
to the Secretary's decision.
    ``(4) If the Secretary concerned does not accept an applicant's 
alternative prescription under this section, and the Commission finds 
that the Secretary's prescription would be inconsistent with the 
purposes of this part, or other applicable law, the Commission may 
refer the dispute to the Commission's Dispute Resolution Service. The 
Dispute Resolution Service shall consult with the Secretary and the 
Commission and issue a non-binding advisory within 90 days. The 
Secretary may accept the Dispute Resolution Service advisory unless the 
Secretary finds that the recommendation will not adequately protect the 
fish resources. The Secretary shall submit the advisory and the 
Secretary's final written determination into the record of the 
Commission's proceeding.''.

SEC. 282. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

    Section 32 of the Federal Power Act (16 U.S.C. 823c) is amended--
            (1) in subsection (a)(3)(C), by inserting ``except as 
        provided in subsection (j),'' before ``conditions''; and
            (2) by adding at the end the following:
    ``(j) Fish and Wildlife.--If the State of Alaska determines that a 
recommendation under subsection (a)(3)(C) is inconsistent with 
paragraphs (1) and (2) of subsection (a), the State of Alaska may 
decline to adopt all or part of the recommendations in accordance with 
the procedures established under section 10(j)(2).''.

SEC. 283. FLINT CREEK HYDROELECTRIC PROJECT.

    (a) Extension of Time.--Notwithstanding the time period specified 
in section 5 of the Federal Power Act (16 U.S.C. 798) that would 
otherwise apply to the Federal Energy Regulatory Commission (referred 
to in this section as the ``Commission'') project numbered 12107, the 
Commission shall--
            (1) if the preliminary permit is in effect on the date of 
        enactment of this Act, extend the preliminary permit for a 
        period of 3 years beginning on the date on which the 
        preliminary permit expires; or
            (2) if the preliminary permit expired before the date of 
        enactment of this Act, on request of the permittee, reinstate 
        the preliminary permit for an additional 3-year period 
        beginning on the date of enactment of this Act.
    (b) Limitation on Certain Fees.--Notwithstanding section 10(e)(1) 
of the Federal Power Act (16 U.S.C. 803(e)(1)) or any other provision 
of Federal law providing for the payment to the United States of 
charges for the use of Federal land for the purposes of operating and 
maintaining a hydroelectric development licensed by the Commission, any 
political subdivision of the State of Montana that holds a Commission 
license for the Commission project numbered 12107 in Granite and Deer 
Lodge Counties, Montana, shall be required to pay to the United States 
for the use of that land for each year during which the political 
subdivision continues to hold the license for the project, the lesser 
of--
            (1) $25,000; or
            (2) such annual charge as the Commission or any other 
        department or agency of the Federal Government may assess.

                Subtitle H--Renewable Portfolio Standard

SEC. 291. RENEWABLE PORTFOLIO STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2601 et seq.) is amended by adding at the end the following:

``SEC. 609. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy Requirement.--
            ``(1) In general.--Each electric utility that sells 
        electricity to electric consumers shall obtain a percentage of 
        the base amount of electricity it sells to electric consumers 
        in any calendar year from new renewable energy or existing 
        renewable energy. The percentage obtained in a calendar year 
        shall not be less than the amount specified in the following 
        table:

``Calendar year:                             Minimum annual percentage:
    2008 through 2011.............................                 2.5 
    2012 through 2015.............................                 5.0 
    2016 through 2019.............................                 7.5 
    2020 through 2030.............................                10.0.
            ``(2) Means of compliance.--An electric utility shall meet 
        the requirements of paragraph (1) by--
                    ``(A) generating electric energy using new 
                renewable energy or existing renewable energy;
                    ``(B) purchasing electric energy generated by new 
                renewable energy or existing renewable energy;
                    ``(C) purchasing renewable energy credits issued 
                under subsection (b); or
                    ``(D) a combination of the foregoing.
    ``(b) Renewable Energy Credit Trading Program.--
            ``(1) Not later than January 1, 2007, the Secretary shall 
        establish a renewable energy credit trading program to permit 
        an electric utility that does not generate or purchase enough 
        electric energy from renewable energy to meet its obligations 
        under subsection (a)(1) to satisfy such requirements by 
        purchasing sufficient renewable energy credits.
            ``(2) As part of such program the Secretary shall--
                    ``(A) issue renewable energy credits to generators 
                of electric energy from new renewable energy;
                    ``(B) sell renewable energy credits to electric 
                utilities at the rate of 1.5 cents per kilowatt-hour 
                (as adjusted for inflation under subsection (g));
                    ``(C) ensure that a kilowatt hour, including the 
                associated renewable energy credit, shall be used only 
                once for purposes of compliance with this section; and
                    ``(D) allow double credits for generation from 
                facilities on Indian Lands, and triple credits for 
                generation from small renewable distributed generators 
                (meaning those those no larger than 1 megawatt).
            ``(3) Credits under paragraph (2)(A) may only be used for 
        compliance with this section for 3 years from the date issued.
    ``(c) Enforcement.--
            ``(1) Civil penalties.--Any electric utility that fails to 
        meet the renewable energy requirements of subsection (a) shall 
        be subject to a civil penalty.
            ``(2) Amount of penalty.--The amount of the civil penalty 
        shall be determined by multiplying the number of kilowatt-hours 
        of electric energy sold to electric consumers in violation of 
        subsection (a) by the greater of 1.5 cents (adjusted for 
        inflation under subsection (g)) or 200 percent of the average 
        market value of renewable energy credits during the year in 
        which the violation occurred.
            ``(3) Mitigation or waiver.--The Secretary may mitigate or 
        waive a civil penalty under this subsection if the electric 
        utility was unable to comply with subsection (a) for reasons 
        outside of the reasonable control of the utility. The Secretary 
        shall reduce the amount of any penalty determined under 
        paragraph (2) by an amount paid by the electric utility to a 
        State for failure to comply with the requirement of a State 
        renewable energy program if the State requirement is greater 
        than the applicable requirement of subsection (a).
            ``(4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act of 1954 (42 U.S.C. 6303).
    ``(d) State Renewable Energy Account Program.--
            ``(1) The Secretary shall establish, not later than 
        December 31, 2008, a State renewable energy account program.
            ``(2) All money collected by the Secretary from the sale of 
        renewable energy credits and the assessment of civil penalties 
        under this section shall be deposited into the renewable energy 
        account established pursuant to this subsection. The State 
        renewable energy account shall be held by the Secretary and 
        shall not be transferred to the Treasury Department.
            ``(3) Proceeds deposited in the State renewable energy 
        account shall be used by the Secretary, subject to 
        appropriations, for a program to provide grants to the State 
        agency responsible for developing State energy conservation 
        plans under section 362 of the Energy Policy and Conservation 
        Act (42 U.S.C. 6322) for the purposes of promoting renewable 
        energy production, including programs that promote technologies 
        that reduce the use of electricity at customer sites such as 
        solar water heating.
            ``(4) The Secretary may issue guidelines and criteria for 
        grants awarded under this subsection. State energy offices 
        receiving grants under this section shall maintain such records 
        and evidence of compliance as the Secretary may require.
            ``(5) In allocating funds under this program, the Secretary 
        shall give preference--
                    ``(A) to States in regions which have a 
                disproportionately small share of economically 
                sustainable renewable energy generation capacity; and
                    ``(B) to State programs to stimulate or enhance 
                innovative renewable energy technologies.
    ``(e) Rules.--The Secretary shall issue rules implementing this 
section not later than 1 year after the date of enactment of this 
section.
    ``(f) Exemptions.--This section shall not apply in any calendar 
year to an electric utility--
            ``(1) that sold less than 4,000,000 megawatt-hours of 
        electric energy to electric consumers during the preceding 
        calendar year; or
            ``(2) in Hawaii.
    ``(g) Inflation Adjustment.--Not later than December 31 of each 
year beginning in 2008, the Secretary shall adjust for inflation the 
price of a renewable energy credit under subsection (b)(2)(B) and the 
amount of the civil penalty per kilowatt-hour under subsection (c)(2).
    ``(h) State Programs.--Nothing in this section shall diminish any 
authority of a State or political subdivision thereof to adopt or 
enforce any law or regulation respecting renewable energy, but, except 
as provided in subsection (c)(3), no such law or regulation shall 
relieve any person of any requirement otherwise applicable under this 
section. The Secretary, in consultation with States having such 
renewable energy programs, shall, to the maximum extent practicable, 
facilitate coordination between the Federal program and State programs.
    ``(i) Definitions.--For purposes of this section:
            ``(1) Base amount of electricity.--The term `base amount of 
        electricity' means the total amount of electricity sold by an 
        electric utility to electric consumers in a calendar year, 
        excluding--
                    ``(A) electricity generated by a hydroelectric 
                facility (including a pumped storage facility but 
                excluding incremental hydropower); and
                    ``(B) electricity generated through the 
                incineration of municipal solid waste.
            ``(2) Distributed generation facility.--The term 
        `distributed generation facility' means a facility at a 
        customer site.
            ``(3) Existing renewable energy.--The term `existing 
        renewable energy' means, except as provided in paragraph 
        (7)(B), electric energy generated at a facility (including a 
        distributed generation facility) placed in service prior to the 
        date of enactment of this section from solar, wind, or 
        geothermal energy; ocean energy; biomass (as defined in section 
        203(a) of the Energy Policy Act of 2005); or landfill gas.
            ``(4) Geothermal energy.--The term `geothermal energy' 
        means energy derived from a geothermal deposit (within the 
        meaning of section 613(e)(2) of the Internal Revenue Code of 
        1986).
            ``(5) Incremental geothermal production.--
                    ``(A) In general.--The term `incremental geothermal 
                production' means for any year the excess of--
                            ``(i) the total kilowatt hours of 
                        electricity produced from a facility (including 
                        a distributed generation facility) using 
                        geothermal energy, over
                            ``(ii) the average annual kilowatt hours 
                        produced at such facility for 5 of the previous 
                        7 calendar years before the date of enactment 
                        of this section after eliminating the highest 
                        and the lowest kilowatt hour production years 
                        in such 7-year period.
                    ``(B) Special rule.--A facility described in 
                subparagraph (A) which was placed in service at least 7 
                years before the date of enactment of this section 
                shall commencing with the year in which such date of 
                enactment occurs, reduce the amount calculated under 
                subparagraph (A)(ii) each year, on a cumulative basis, 
                by the average percentage decrease in the annual 
                kilowatt hour production for the 7-year period 
                described in subparagraph (A)(ii) with such cumulative 
                sum not to exceed 30 percent.
            ``(6) Incremental hydropower.--The term `incremental 
        hydropower' means additional energy generated as a result of 
        efficiency improvements or capacity additions made on or after 
        the date of enactment of this section or the effective date of 
        an existing applicable State renewable portfolio standard 
        program at a hydroelectric facility that was placed in service 
        before that date. The term does not include additional energy 
        generated as a result of operational changes not directly 
        associated with efficiency improvements or capacity additions. 
        Efficiency improvements and capacity additions shall be 
        measured on the basis of the same water flow information used 
        to determine a historic average annual generation baseline for 
        the hydroelectric facility and certified by the Secretary or 
        the Federal Energy Regulatory Commission.
            ``(7) New renewable energy.--The term `new renewable 
        energy' means--
                    ``(A) electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service on or after January 1, 2003, from--
                            ``(i) solar, wind, or geothermal energy or 
                        ocean energy;
                            ``(ii) biomass (as defined in section 
                        203(a) of the Energy Policy Act of 2005);
                            ``(iii) landfill gas; or
                            ``(iv) incremental hydropower; and
                    ``(B) for electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service prior to the date of enactment of this 
                section--
                            ``(i) the additional energy above the 
                        average generation in the 3 years preceding the 
                        date of enactment of this section at the 
                        facility from--
                                    ``(I) solar or wind energy or ocean 
                                energy;
                                    ``(II) biomass (as defined in 
                                section 203(a) of the Energy Policy Act 
                                of 2005);
                                    ``(III) landfill gas; or
                                    ``(IV) incremental hydropower.
                            ``(ii) the incremental geothermal 
                        production.
            ``(8) Ocean energy.--The term `ocean energy' includes 
        current, wave, tidal, and thermal energy.
    ``(j) Sunset.--This section expires on December 31, 2030.''.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM 
              RESERVE AND OTHER ENERGY PROGRAMS.

    (a) Amendment to Title I of the Energy Policy and Conservation 
Act.--Title I of the Energy Policy and Conservation Act (42 U.S.C. 6212 
et seq.) is amended--
            (1) by striking section 166 (42 U.S.C. 6246) and inserting 
        the following:

                   ``authorization of appropriations

    ``Sec. 166. There are authorized to be appropriated to the 
Secretary such sums as are necessary to carry out this part and part D, 
to remain available until expended.'';
            (2) by striking section 186 (42 U.S.C. 6250e); and
            (3) by striking part E (42 U.S.C. 6251).
    (b) Amendment to Title II of the Energy Policy and Conservation 
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C. 
6271 et seq.) is amended--
            (1) by inserting before section 273 (42 U.S.C. 6283) the 
        following:

          ``Part C--Summer Fill and Fuel Budgeting Programs'';

            (2) by striking section 273(e) (42 U.S.C. 6283(e)); and
            (3) by striking part D (42 U.S.C. 6285).
    (c) Technical Amendments.--The table of contents for the Energy 
Policy and Conservation Act is amended--
            (1) by inserting after the items relating to part C of 
        title I the following:

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
            (2) by amending the items relating to part C of title II to 
        read as follows:

           ``Part C--Summer Fill and Fuel Budgeting Programs

``Sec. 273. Summer fill and fuel budgeting programs.'';
        and
            (3) by striking the items relating to part D of title II.
    (d) Amendment to the Energy Policy and Conservation Act.--Section 
183(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 
6250b(b)(1)) is amended by striking ``by more'' and all that follows 
through ``mid-October through March'' and inserting ``by more than 60 
percent over its 5-year rolling average for the months of mid-October 
through March (considered as a heating season average)''.
    (e) Fill Strategic Petroleum Reserve to Capacity.--(1) In 
general.--The Secretary shall, as expeditiously as practicable, without 
incurring excessive cost or appreciably affecting the price of gasoline 
or heating oil to consumers, acquire petroleum in quantities sufficient 
to fill the Strategic Petroleum Reserve to the 1,000,000,000-barrel 
capacity authorized under section 154(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6234(a)), in accordance with the sections 
159 and 160 of that Act (42 U.S.C. 6239, 6240).
            (2) Procedures.--
                    (A) In general.--The Secretary shall develop, with 
                an opportunity for public comment, procedures to obtain 
                oil for the Reserve with the intent of maximizing the 
                overall domestic supply of crude oil (including 
                quantities stored in private sector inventories) and 
                minimizing the costs to the Department of the Interior 
                and the Department of Energy of acquiring such oil 
                (including foregone revenues to the Treasury when oil 
                for the Reserve is obtained through the royalty-in-kind 
                program), consistent with national security.
                    (B) Considerations.--The procedures shall provide 
                that, for purposes of determining whether to acquire 
                oil for the Reserve or defer deliveries of oil, the 
                Secretary shall take into account--
                            (i) current and future prices, supplies, 
                        and inventories of oil;
                            (ii) national security; and
                            (iii) other factors that the Secretary 
                        determines to be appropriate.
                    (C) Review of requests for deferrals of scheduled 
                deliveries.--The procedures shall include procedures 
                and criteria for the review of requests for the 
                deferrals of scheduled deliveries.
                    (D) Deadlines.--The Secretary shall--
                            (i) propose the procedures required under 
                        this paragraph not later than 120 days after 
                        the date of enactment of this Act;
                            (ii) promulgate the procedures not later 
                        than 180 days after the date of enactment of 
                        this Act; and
                            (iii) comply with the procedures in 
                        acquiring oil for Reserve effective beginning 
                        on the date that is 180 days after the date of 
                        enactment of this Act.

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

    Section 713 of the Energy Act of 2000 (Public Law 106-469; 42 
U.S.C. 6201 note) is amended by striking ``4'' and inserting ``9''.

SEC. 303. SMALL BUSINESS AND AGRICULTURAL PRODUCER ENERGY EMERGENCY 
              DISASTER LOAN PROGRAM.

    (a) Small Business Producer Energy Emergency Disaster Loan 
Program.--
            (1) Disaster loan authority.--Section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)) is amended by inserting after 
        paragraph (3) the following:
            ``(4)(A) In this paragraph--
                    ``(i) the term `base price index' means the moving 
                average of the closing unit price on the New York 
                Mercantile Exchange for heating oil, natural gas, 
                gasoline, or propane for the 10 days, in each of the 
                most recent 2 preceding years, which correspond to the 
                trading days described in clause (ii);
                    ``(ii) the term `current price index' means the 
                moving average of the closing unit price on the New 
                York Mercantile Exchange, for the 10 most recent 
                trading days, for contracts to purchase heating oil, 
                natural gas, gasoline, or propane during the subsequent 
                calendar month, commonly known as the `front month'; 
                and
                    ``(iii) the term `significant increase' means--
                            ``(I) with respect to the price of heating 
                        oil, natural gas, gasoline, or propane, any 
                        time the current price index exceeds the base 
                        price index by not less than 40 percent; and
                            ``(II) with respect to the price of 
                        kerosene, any increase which the Administrator, 
                        in consultation with the Secretary of Energy, 
                        determines to be significant.
            ``(B) The Administration may make such loans, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, to assist a small business concern that has 
        suffered or that is likely to suffer substantial economic 
        injury on or after January 1, 2005, as the result of a 
        significant increase in the price of heating oil, natural gas, 
        gasoline, propane, or kerosene occurring on or after January 1, 
        2005.
            ``(C) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(D) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, if the total amount outstanding and 
        committed to the borrower under this subsection would exceed 
        $1,500,000, unless such borrower constitutes a major source of 
        employment in its surrounding area, as determined by the 
        Administration, in which case the Administration, in its 
        discretion, may waive the $1,500,000 limitation.
            ``(E) For purposes of assistance under this paragraph--
                    ``(i) a declaration of a disaster area based on 
                conditions specified in this paragraph shall be 
                required, and shall be made by the President or the 
                Administrator; or
                    ``(ii) if no declaration has been made pursuant to 
                clause (i), the Governor of a State in which a 
                significant increase in the price of heating oil, 
                natural gas, gasoline, propane, or kerosene has 
                occurred may certify to the Administration that small 
                business concerns have suffered economic injury as a 
                result of such increase and are in need of financial 
                assistance which is not otherwise available on 
                reasonable terms in that State, and upon receipt of 
                such certification, the Administration may make such 
                loans as would have been available under this paragraph 
                if a disaster declaration had been issued.
            ``(F) Notwithstanding any other provision of law, loans 
        made under this paragraph may be used by a small business 
        concern described in subparagraph (B) to convert from the use 
        of heating oil, natural gas, gasoline, propane, or kerosene to 
        a renewable or alternative energy source, including agriculture 
        and urban waste, geothermal energy, cogeneration, solar energy, 
        wind energy, or fuel cells.''.
            (2) Conforming amendments.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``, significant increase in the 
                price of heating oil, natural gas, gasoline, propane, 
                or kerosene'' after ``civil disorders''; and
                    (B) by inserting ``other'' before ``economic''.
    (b) Agricultural Producer Emergency Loans.--
            (1) In general.--Section 321(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1961(a)) is amended--
                    (A) in the first sentence--
                            (i) by striking ``operations have'' and 
                        inserting ``operations (i) have''; and
                            (ii) by inserting before ``: Provided,'' 
                        the following: ``, or (ii)(I) are owned or 
                        operated by such an applicant that is also a 
                        small business concern (as defined in section 3 
                        of the Small Business Act (15 U.S.C. 632)), and 
                        (II) have suffered or are likely to suffer 
                        substantial economic injury on or after January 
                        1, 2005, as the result of a significant 
                        increase in energy costs or input costs from 
                        energy sources occurring on or after January 1, 
                        2005, in connection with an energy emergency 
                        declared by the President or the Secretary'';
                    (B) in the third sentence, by inserting before the 
                period at the end the following: ``or by an energy 
                emergency declared by the President or the Secretary''; 
                and
                    (C) in the fourth sentence--
                            (i) by inserting ``or energy emergency'' 
                        after ``natural disaster'' each place that term 
                        appears; and
                            (ii) by inserting ``or declaration'' after 
                        ``emergency designation''.
            (2) Funding.--Funds available on the date of enactment of 
        this Act for emergency loans under subtitle C of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
        seq.) shall be available to carry out the amendments made by 
        subparagraph (A) to meet the needs resulting from natural 
        disasters.
    (c) Guidelines and Rulemaking.--
            (1) Guidelines.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration and the Secretary of Agriculture shall each 
        issue guidelines to carry out this section and the amendments 
        made by this section, which guidelines shall become effective 
        on the date of their issuance.
            (2) Rulemaking.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration, after consultation with the Secretary of 
        Energy, shall promulgate regulations specifying the method for 
        determining a significant increase in the price of kerosene 
        under section 7(b)(4)(A)(iii)(II) of the Small Business Act (15 
        U.S.C. 636(b)(4)(A)(iii)(II)), as added by this section.
    (d) Reports.--
            (1) Small business administration.--Not later than 12 
        months after the date on which the Administrator of the Small 
        Business Administration issues guidelines under subsection 
        (c)(1), and annually thereafter, the Administrator shall submit 
        to the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives, a report on the effectiveness of the 
        assistance made available under section 7(b)(4) of the Small 
        Business Act, as added by this section, including--
                    (A) the number of small business concerns that 
                applied for a loan under such section 7(b)(4) and the 
                number of those that received such loans;
                    (B) the dollar value of those loans;
                    (C) the States in which the small business concerns 
                that received such loans are located;
                    (D) the type of energy that caused the significant 
                increase in the cost for the participating small 
                business concerns; and
                    (E) recommendations for ways to improve the 
                assistance provided under such section 7(b)(4), if any.
            (2) Department of agriculture.--Not later than 12 months 
        after the date on which the Secretary of Agriculture issues 
        guidelines under subsection (c)(1), and annually thereafter, 
        the Secretary shall submit to the Committee on Small Business 
        and Entrepreneurship and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate and to the Committee on 
        Small Business and the Committee on Agriculture of the House of 
        Representatives, a report that--
                    (A) describes the effectiveness of the assistance 
                made available under section 321(a) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1961(a)), as 
                amended by this section; and
                    (B) contains recommendations for ways to improve 
                the assistance provided under such section 321(a).
    (e) Effective Date.--
            (1) Small business.--The amendments made by subsection (a) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the 
        Administrator of the Small Business Administration under 
        subsection (c)(1) or 30 days after the date of enactment of 
        this Act, with respect to assistance under section 7(b)(4) of 
        the Small Business Act, as added by this section.
            (2) Agriculture.--The amendments made by subsection (b) 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the Secretary 
        of Agriculture under subsection (c)(1) or 30 days after the 
        date of enactment of this Act, with respect to assistance under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)), as amended by this section.

                   Subtitle B--Production Incentives

SEC. 311. DEFINITION OF SECRETARY.

    In this subtitle, the term ``Secretary'' means the Secretary of the 
Interior.

SEC. 312. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

    (a) Applicability of Section.--Notwithstanding any other provision 
of law, this section applies to all royalty in-kind accepted by the 
Secretary on or after the date of enactment of this Act under any 
Federal oil or gas lease or permit under--
            (1) section 36 of the Mineral Leasing Act (30 U.S.C. 192);
            (2) section 27 of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1353); or
            (3) any other Federal law governing leasing of Federal land 
        for oil and gas development.
    (b) Terms and Conditions.--All royalty accruing to the United 
States shall, on the demand of the Secretary, be paid in oil or gas. If 
the Secretary makes such a demand, the following provisions apply to 
the payment:
            (1) Satisfaction of royalty obligation.--Delivery by, or on 
        behalf of, the lessee of the royalty amount and quality due 
        under the lease satisfies royalty obligation of the lessee for 
        the amount delivered, except that transportation and processing 
        reimbursements paid to, or deductions claimed by, the lessee 
        shall be subject to review and audit.
            (2) Marketable condition.--
                    (A) Definition of marketable condition.--In this 
                paragraph, the term ``in marketable condition'' means 
                sufficiently free from impurities and otherwise in a 
                condition that the royalty production will be accepted 
                by a purchaser under a sales contract typical of the 
                field or area in which the royalty production was 
                produced.
                    (B) Requirement.--Royalty production shall be 
                placed in marketable condition by the lessee at no cost 
                to the United States.
            (3) Disposition by the secretary.--The Secretary may--
                    (A) sell or otherwise dispose of any royalty 
                production taken in-kind (other than oil or gas 
                transferred under section 27(a)(3) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)) for 
                not less than the market price; and
                    (B) transport or process (or both) any royalty 
                production taken in-kind.
            (4) Retention by the secretary.--The Secretary may, 
        notwithstanding section 3302 of title 31, United States Code, 
        retain and use a portion of the revenues from the sale of oil 
        and gas taken in-kind that otherwise would be deposited to 
        miscellaneous receipts, without regard to fiscal year 
        limitation, or may use oil or gas received as royalty taken in-
        kind (referred to in this paragraph as ``royalty production'') 
        to pay the cost of--
                    (A) transporting the royalty production;
                    (B) processing the royalty production;
                    (C) disposing of the royalty production; or
                    (D) any combination of transporting, processing, 
                and disposing of the royalty production.
            (5) Limitation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary may not use revenues from the sale 
                of oil and gas taken in-kind to pay for personnel, 
                travel, or other administrative costs of the Federal 
                Government.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                the Secretary may use a portion of the revenues from 
                royalty in-kind sales, without fiscal year limitation, 
                to pay salaries and other administrative costs directly 
                related to the royalty in-kind program.
    (c) Reimbursement of Cost.--If a lessee, pursuant to an agreement 
with the United States or as provided in the lease, processes the 
royalty gas or delivers the royalty oil or gas at a point not on or 
adjacent to the lease area, the Secretary shall--
            (1) reimburse the lessee for the reasonable costs of 
        transportation (not including gathering) from the lease to the 
        point of delivery or for processing costs; or
            (2) allow the lessee to deduct the transportation or 
        processing costs in reporting and paying royalties in-value for 
        other Federal oil and gas leases.
    (d) Benefit to the United States Required.--The Secretary may 
receive oil or gas royalties in-kind only if the Secretary determines 
that receiving royalties in-kind provides benefits to the United States 
that are greater than or equal to the benefits that are likely to have 
been received had royalties been taken in-value.
    (e) Reports.--
            (1) In general.--Not later than September 30, 2006, the 
        Secretary shall submit to Congress a report that addresses--
                    (A) actions taken to develop businesses processes 
                and automated systems to fully support the royalty-in-
                kind capability to be used in tandem with the royalty-
                in-value approach in managing Federal oil and gas 
                revenue; and
                    (B) future royalty-in-kind businesses operation 
                plans and objectives.
            (2) Reports on oil or gas royalties taken in-kind.--For 
        each of fiscal years 2006 through 2015 in which the United 
        States takes oil or gas royalties in-kind from production in 
        any State or from the outer Continental Shelf, excluding 
        royalties taken in-kind and sold to refineries under subsection 
        (h), the Secretary shall submit to Congress a report that 
        describes--
                    (A) the 1 or more methodologies used by the 
                Secretary to determine compliance with subsection (d), 
                including the performance standard for comparing 
                amounts received by the United States derived from 
                royalties in-kind to amounts likely to have been 
                received had royalties been taken in-value;
                    (B) an explanation of the evaluation that led the 
                Secretary to take royalties in-kind from a lease or 
                group of leases, including the expected revenue effect 
                of taking royalties in-kind;
                    (C) actual amounts received by the United States 
                derived from taking royalties in-kind and costs and 
                savings incurred by the United States associated with 
                taking royalties in-kind, including administrative 
                savings and any new or increased administrative costs; 
                and
                    (D) an evaluation of other relevant public benefits 
                or detriments associated with taking royalties in-kind.
    (f) Deduction of Expenses.--
            (1) In general.--Before making payments under section 35 of 
        the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) of 
        revenues derived from the sale of royalty production taken in-
        kind from a lease, the Secretary shall deduct amounts paid or 
        deducted under subsections (b)(4) and (c) and deposit the 
        amount of the deductions in the miscellaneous receipts of the 
        Treasury.
            (2) Accounting for deductions.--If the Secretary allows the 
        lessee to deduct transportation or processing costs under 
        subsection (c), the Secretary may not reduce any payments to 
        recipients of revenues derived from any other Federal oil and 
        gas lease as a consequence of that deduction.
    (g) Consultation with States.--The Secretary--
            (1) shall consult with a State before conducting a royalty 
        in-kind program under this subtitle within the State;
            (2) may delegate management of any portion of the Federal 
        royalty in-kind program to the State except as otherwise 
        prohibited by Federal law; and
            (3) shall consult annually with any State from which 
        Federal oil or gas royalty is being taken in-kind to ensure, to 
        the maximum extent practicable, that the royalty in-kind 
        program provides revenues to the State greater than or equal to 
        the revenues likely to have been received had royalties been 
        taken in-value.
    (h) Small Refineries.--
            (1) Preference.--If the Secretary finds that sufficient 
        supplies of crude oil are not available in the open market to 
        refineries that do not have their own source of supply for 
        crude oil, the Secretary may grant preference to those 
        refineries in the sale of any royalty oil accruing or reserved 
        to the United States under Federal oil and gas leases issued 
        under any mineral leasing law, for processing or use in those 
        refineries at private sale at not less than the market price.
            (2) Proration among refineries in production area.--In 
        disposing of oil under this subsection, the Secretary may, at 
        the discretion of the Secretary, prorate the oil among 
        refineries described in paragraph (1) in the area in which the 
        oil is produced.
    (i) Disposition to Federal Agencies.--
            (1) Onshore royalty.--Any royalty oil or gas taken by the 
        Secretary in-kind from onshore oil and gas leases may be sold 
        at not less than the market price to any Federal agency.
            (2) Offshore royalty.--Any royalty oil or gas taken in-kind 
        from a Federal oil or gas lease on the outer Continental Shelf 
        may be disposed of only under section 27 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1353).
    (j) Federal Low-Income Energy Assistance Programs.--
            (1) Preference.--In disposing of royalty oil or gas taken 
        in-kind under this section, the Secretary may grant a 
        preference to any person, including any Federal or State 
        agency, for the purpose of providing additional resources to 
        any Federal low-income energy assistance program.
            (2) Report.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary shall submit a report to 
        Congress--
                    (A) assessing the effectiveness of granting 
                preferences specified in paragraph (1); and
                    (B) providing a specific recommendation on the 
                continuation of authority to grant preferences.

SEC. 313. MARGINAL PROPERTY PRODUCTION INCENTIVES.

    (a) Definition of Marginal Property.--Until such time as the 
Secretary issues regulations under subsection (e) that prescribe a 
different definition, in this section, the term ``marginal property'' 
means an onshore unit, communitization agreement, or lease not within a 
unit or communitization agreement, that produces on average the 
combined equivalent of less than 15 barrels of oil per well per day or 
90,000,000 British thermal units of gas per well per day calculated 
based on the average over the 3 most recent production months, 
including only wells that produce on more than half of the days during 
those 3 production months.
    (b) Conditions for Reduction of Royalty Rate.--Until such time as 
the Secretary issues regulations under subsection (e) that prescribe 
different standards or requirements, the Secretary shall reduce the 
royalty rate on--
            (1) oil production from marginal properties as prescribed 
        in subsection (c) if the spot price of West Texas Intermediate 
        crude oil at Cushing, Oklahoma, is, on average, less than $15 
        per barrel (adjusted in accordance with the Consumer Price 
        Index for all-urban consumers, United States city average, as 
        published by the Bureau of Labor Statistics) for 90 consecutive 
        trading days; and
            (2) gas production from marginal properties as prescribed 
        in subsection (c) if the spot price of natural gas delivered at 
        Henry Hub, Louisiana, is, on average, less than $2.00 per 
        million British thermal units (adjusted in accordance with the 
        Consumer Price Index for all-urban consumers, United States 
        city average, as published by the Bureau of Labor Statistics) 
        for 90 consecutive trading days.
    (c) Reduced Royalty Rate.--
            (1) In general.--When a marginal property meets the 
        conditions specified in subsection (b), the royalty rate shall 
        be the lesser of--
                    (A) 5 percent; or
                    (B) the applicable rate under any other statutory 
                or regulatory royalty relief provision that applies to 
                the affected production.
            (2) Period of effectiveness.--The reduced royalty rate 
        under this subsection shall be effective beginning on the first 
        day of the production month following the date on which the 
        applicable condition specified in subsection (b) is met.
    (d) Termination of Reduced Royalty Rate.--A royalty rate prescribed 
in subsection (c)(1)(A) shall terminate--
            (1) with respect to oil production from a marginal 
        property, on the first day of the production month following 
        the date on which--
                    (A) the spot price of West Texas Intermediate crude 
                oil at Cushing, Oklahoma, on average, exceeds $15 per 
                barrel (adjusted in accordance with the Consumer Price 
                Index for all-urban consumers, United States city 
                average, as published by the Bureau of Labor 
                Statistics) for 90 consecutive trading days; or
                    (B) the property no longer qualifies as a marginal 
                property; and
            (2) with respect to gas production from a marginal 
        property, on the first day of the production month following 
        the date on which--
                    (A) the spot price of natural gas delivered at 
                Henry Hub, Louisiana, on average, exceeds $2.00 per 
                million British thermal units (adjusted in accordance 
                with the Consumer Price Index for all-urban consumers, 
                United States city average, as published by the Bureau 
                of Labor Statistics) for 90 consecutive trading days; 
                or
                    (B) the property no longer qualifies as a marginal 
                property.
    (e) Regulations Prescribing Different Relief.--
            (1) Discretionary regulations.--The Secretary may by 
        regulation prescribe different parameters, standards, and 
        requirements for, and a different degree or extent of, royalty 
        relief for marginal properties in lieu of those prescribed in 
        subsections (a) through (d).
            (2) Royalty relief for offshore wells.--With respect to 
        royalty relief for oil or gas produced from wells located on 
        the outer Continental Shelf, the Secretary shall use authority 
        available to the Secretary as of the day before the date of 
        enactment of this Act--
                    (A) to accept and consider petitions from persons 
                seeking, and providing justification for, royalty 
                relief for 1 or more of those wells; and
                    (B) not later than 90 days after the date of 
                receipt of a petition, on a case-by-case basis--
                            (i) approve the petition and provide 
                        royalty relief or a royalty reduction for oil 
                        or gas produced from the wells covered by the 
                        petition; or
                            (ii) disapprove the petition.
            (3) Considerations.--In issuing regulations under this 
        subsection, the Secretary may consider--
                    (A) oil and gas prices and market trends;
                    (B) production costs;
                    (C) abandonment costs;
                    (D) Federal and State tax provisions and the 
                effects of those provisions on production economics;
                    (E) other royalty relief programs;
                    (F) regional differences in average wellhead 
                prices;
                    (G) national energy security issues; and
                    (H) other relevant matters, as determined by the 
                Secretary.
    (f) Savings Provision.--Nothing in this section prevents a lessee 
from receiving royalty relief or a royalty reduction pursuant to any 
other law (including a regulation) that provides more relief than the 
amounts provided by this section.

SEC. 314. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
              SHALLOW WATERS OF THE GULF OF MEXICO.

    (a) Definitions.--In this section:
            (1) Lease issued in shallow waters.--The term ``lease 
        issued in shallow waters'' means--
                    (A) a lease entirely in water less than 200 meters 
                deep; or
                    (B) a lease--
                            (i) partially in water less than 200 meters 
                        deep; and
                            (ii) to which no royalty relief provisions 
                        in law or lease terms apply.
            (2) Sidetrack.--
                    (A) In general.--The term ``sidetrack'' means a 
                well resulting from drilling an additional hole to a 
                new objective bottom-hole location by leaving a 
                previously drilled hole.
                    (B) Inclusion.--The term ``sidetrack'' includes--
                            (i) drilling a well from a platform slot 
                        reclaimed from a previously drilled well;
                            (ii) re-entering and deepening a previously 
                        drilled well; and
                            (iii) a bypass from a sidetrack, including 
                        drilling around material blocking a hole or 
                        drilling to straighten a crooked hole.
            (3) Ultra deep well.--The term ``ultra deep well'' means a 
        well drilled with a perforated interval, the top of which is at 
        least 20,000 feet true vertical depth below the datum at mean 
        sea level.
    (b) Regulations.--
            (1) In general.--Not later than 180 days after the 
        effective date of this section, in addition to any other 
        regulations that may provide royalty incentives for natural gas 
        produced from deep wells on oil and gas leases issued pursuant 
        to, or regulated under, the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1331 et seq.), the Secretary shall issue regulations 
        granting royalty relief suspension volumes of not less than 
        35,000,000,000 cubic feet with respect to the production of 
        natural gas from ultra deep wells on leases issued in shallow 
        waters located in the Gulf of Mexico wholly west of 87 deg., 
        30'' West longitude that are issued before the date that is 180 
        days after the date of enactment of this Act.
            (2) Suspension volumes.--The Secretary may grant suspension 
        volumes of less than 35,000,000,000 cubic feet in any case in 
        which--
                    (A) the ultra deep well is a sidetrack; or
                    (B) the lease has previously produced from wells 
                with a perforated interval the top of which is at least 
                15,000 feet true vertical depth below the datum at mean 
                sea level.
    (c) Limitation.--The Secretary shall not grant royalty incentives 
under this section if the average annual natural gas price on the New 
York Mercantile Exchange exceeds a threshold price specified, and 
adjusted for inflation, by the Secretary.
    (d) Applicability.--
            (1) In general.--Royalty incentives under this subsection 
        apply only to natural gas production from ultra deep wells that 
        are drilled after the date of enactment of this Act.
            (2) Review and suspension.--Not earlier than 10 years after 
        the date of enactment of this Act, the Secretary may--
                    (A) review the relief granted under this section; 
                and
                    (B) by regulation, modify or suspend the relief.
    (e) Effective Date.--This section takes effect on October 1, 2006.

SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--Subject to subsections (b) and (c), for each tract 
located in water depths of greater than 400 meters in the Western and 
Central Planning Area of the Gulf of Mexico (including the portion of 
the Eastern Planning Area of the Gulf of Mexico encompassing whole 
lease blocks lying west of 87 degrees, 30 minutes West longitude), any 
oil or gas lease sale under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) occurring during the 5-year period beginning on 
the date of enactment of this Act shall use the bidding system 
authorized under section 8(a)(1)(H) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(1)(H)).
    (b) Suspension of Royalties.--The suspension of royalties under 
subsection (a) shall be established at a volume of not less than--
            (1) 5,000,000 barrels of oil equivalent for each lease in 
        water depths of 400 meters or more but less than 800 meters;
            (2) 9,000,000 barrels of oil equivalent for each lease in 
        water depths of 800 meters or more but not greater than 1,600 
        meters; and
            (3) 12,000,000 barrels of oil equivalent for each lease in 
        water depths greater than 1,600 meters.
    (c) Limitation.--The Secretary may place limitations on royalty 
relief granted under this section based on market price.

SEC. 316. ALASKA OFFSHORE ROYALTY SUSPENSION.

    Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in the Planning 
Areas offshore Alaska,'' after ``West longitude,''.

SEC. 317. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM RESERVE IN 
              ALASKA.

    (a) Transfer of Authority.--
            (1) Redesignation.--The Naval Petroleum Reserves Production 
        Act of 1976 (42 U.S.C. 6501 et seq.) is amended by 
        redesignating section 107 (42 U.S.C. 6507) as section 108.
            (2) Transfer.--The matter under the heading ``exploration 
        of national petroleum reserve in alaska'' under the heading 
        ``Energy and Minerals'' of title I of Public Law 96-514 (42 
        U.S.C. 6508) is--
                    (A) transferred to the Naval Petroleum Reserves 
                Production Act of 1976 (42 U.S.C. 6501 et seq.);
                    (B) redesignated as section 107 of that Act; and
                    (C) moved so as to appear after section 106 of that 
                Act (42 U.S.C. 6506).
    (b) Competitive Leasing.--Section 107 of the Naval Petroleum 
Reserves Production Act of 1976 (as amended by subsection (a)(2)) is 
amended--
            (1) by striking the heading and all that follows through 
        ``Provided, That (1) activities'' and inserting the following:

``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.

    ``(a) In General.--The Secretary shall conduct an expeditious 
program of competitive leasing of oil and gas in the Reserve in 
accordance with this Act.
    ``(b) Mitigation of Adverse Effects.--
            ``(1) In general.--Activities'';
            (2) in subsection (b)(1) (as designated by paragraph (1)), 
        by striking ``to mitigate'' and inserting ``to prevent to the 
        extent practicable, and to mitigate,'';
            (3) by striking ``Alaska (the Reserve); (2) the'' and 
        inserting ``Alaska.
            ``(2) Certain resources and facilities.--In carrying out 
        the leasing program under this section, the Secretary shall 
        minimize, to the extent practicable, the impact to surface 
        resources and consolidate facilities.
    ``(c) Land Use Planning; BLM Wilderness Study.--The'';
            (4) by striking ``Reserve; (3) the'' and inserting 
        ``Reserve.
    ``(d) First Lease Sale.--The;'';
            (5) by striking ``4332); (4) the'' and inserting ``4321 et 
        seq.).
    ``(e) Withdrawals.--The'';
            (6) by striking ``herein; (5) bidding'' and inserting 
        ``under this section.
    ``(f) Bidding Systems.--Bidding'';
            (7) by striking ``629); (6) lease'' and inserting ``629).
    ``(g) Geological Structures.--Lease'';
            (8) by striking ``structures; (7) the'' and inserting 
        ``structures.
    ``(h) Size of Lease Tracts.--The'';
            (9) by striking ``Secretary; (8)'' and all that follows 
        through ``Drilling, production,'' and inserting ``Secretary.
    ``(i) Terms.--
            ``(1) In general.--Each lease shall be issued for an 
        initial period of not more than 10 years, and shall be extended 
        for so long thereafter as oil or gas is produced from the lease 
        in paying quantities or drilling or reworking operations, as 
        approved by the Secretary, are conducted on the leased land.
            ``(2) Termination.--No lease issued under this section 
        covering lands capable of producing oil or gas in paying 
        quantities shall expire because the lessee fails to produce the 
        same unless the lessee is allowed a reasonable time, which 
        shall be not less than 60 days after notice by registered or 
        certified mail, within which to place the lands in producing 
        status or unless, after such status is established, production 
        is discontinued on the leased premises without permission 
        granted by the Secretary under the provisions of this Act.
            ``(3) Renewal of leases without discoveries.--At the end of 
        the primary term of a lease, the Secretary shall renew for one 
        additional 10-year term a lease that does not meet the 
        requirements of paragraph (1) if the lessee submits to the 
        Secretary an application for renewal not later than 60 days 
        before the expiration of the primary lease, pays the Secretary 
        a renewal fee of $100 per acre of leased land, and--
                    ``(A) the lessee provides evidence, and the 
                Secretary agrees that, the lessee has diligently 
                pursued exploration that warrants continuation with the 
                intent of continued exploration or future potential 
                development of the leased land; or
                    ``(B) all or part of the lease
                            ``(i) is part of a unit agreement covering 
                        a lease described in subparagraph (A); and
                            ``(ii) has not been previously contracted 
                        out of the unit.
            ``(4) Applicability.--This subsection applies to a lease 
        that is in effect on or after the date of enactment of the 
        Energy Policy Act of 2005.
    ``(j) Unit Agreements.--
            ``(1) In general.--For the purpose of conservation of the 
        natural resources of all or part of any oil or gas pool, field, 
        reservoir, or like area, lessees (including representatives) of 
        the pool, field, reservoir, or like area may unite with each 
        other, or jointly or separately with others, in collectively 
        adopting and operating under a unit agreement for all or part 
        of the pool, field, reservoir, or like area (whether or not any 
        other part of the oil or gas pool, field, reservoir, or like 
        area is already subject to any cooperative or unit plan of 
        development or operation), if the Secretary determines the 
        action to be necessary or advisable in the public interest. In 
        determining the public interest, the Secretary shall, among 
        other things, examine the extent to which the unit agreement 
        will minimize the impact to surface resources of the leases and 
        will facilitate consolidation of facilities.
            ``(2) Consultation.--In making a determination under 
        paragraph (1), the Secretary shall consult with the State of 
        Alaska or a Regional Corporation (as defined in section 3 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1602)) with 
        respect to the creation or expansion of units that include 
        acreage in which the State of Alaska or the Regional 
        Corporation has an interest in the mineral estate.
            ``(3) Production allocation methodology.--(A) The Secretary 
        may use a production allocation methodology for each 
        participating area within a unit that includes solely Federal 
        land in the Reserve.
            ``(B) The Secretary shall use a production allocation 
        methodology for each participating area within a unit that 
        includes Federal land in the Reserve and non-Federal land based 
        on the characteristics of each specific oil or gas pool, field, 
        reservoir, or like area to take into account reservoir 
        heterogeneity and area variation in reservoir producibility 
        across diverse leasehold interests. The implementation of the 
        foregoing production allocation methodology shall be controlled 
        by agreement among the affected lessors and lessees.
            ``(4) Benefit of Operations.--Drilling, production,'';
            (10) by striking ``When separate'' and inserting the 
        following:
            ``(5) Pooling.--If separate'';
            (11) by inserting ``(in consultation with the owners of the 
        other land)'' after ``determined by the Secretary of the 
        Interior'';
            (12) by striking ``thereto; (10) to'' and all that follows 
        through ``the terms provided therein'' and inserting ``to the 
        agreement.
    ``(k) Exploration Incentives.--
            ``(1) In general.--
                    ``(A) Waiver, suspension, or reduction.--To 
                encourage the greatest ultimate recovery of oil or gas 
                or in the interest of conservation, the Secretary may 
                waive, suspend, or reduce the rental fees or minimum 
                royalty, or reduce the royalty on an entire leasehold 
                (including on any lease operated pursuant to a unit 
                agreement), whenever (after consultation with the State 
                of Alaska and the North Slope Borough of Alaska and the 
                concurrence of any Regional Corporation for leases that 
                include land that was made available for acquisition by 
                the Regional Corporation under the provisions of 
                section 1431(o) of the Alaska National Interest Lands 
                Conservation Act (16 U.S.C. 3101 et seq.)) in the 
                judgment of the Secretary it is necessary to do so to 
                promote development, or whenever in the judgment of the 
                Secretary the leases cannot be successfully operated 
                under the terms provided therein.
                    ``(B) Applicability.--This paragraph applies to a 
                lease that is in effect on or after the date of 
                enactment of the Energy Policy Act of 2005.'';
            (13) by striking ``The Secretary is authorized to'' and 
        inserting the following:
            ``(2) Suspension of operations and production.--The 
        Secretary may'';
            (14) by striking ``In the event'' and inserting the 
        following:
            ``(3) Suspension of payments.--If'';
            (15) by striking ``thereto; and (11) all'' and inserting 
        ``to the lease.
    ``(l) Receipts.--All'';
            (16) by redesignating subparagraphs (A), (B), and (C) as 
        paragraphs (1), (2), and (3), respectively;
            (17) by striking ``Any agency'' and inserting the 
        following:
    ``(m) Explorations.--Any agency'';
            (18) by striking ``Any action'' and inserting the 
        following:
    ``(n) Environmental Impact Statements.--
            ``(1) Judicial review.--Any action'';
            (19) by striking ``The detailed'' and inserting the 
        following:
            ``(2) Initial lease sales.--The detailed'';
            (20) by striking ``section 104(b) of the Naval Petroleum 
        Reserves Production Act of 1976 (90 Stat. 304; 42 U.S.C. 
        6504)'' and inserting ``section 104(a)''; and
            (21) by adding at the end the following:
    ``(o) Regulations.--As soon as practicable after the date of 
enactment of the Energy Policy Act of 2005, the Secretary shall issue 
regulations to implement this section.
    ``(p) Waiver of Administration for Conveyed Lands.--
            ``(1) In general.--Notwithstanding section 14(g) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1613(g)), the 
        Secretary of the Interior shall waive administration of any oil 
        and gas lease to the extent that the lease covers any land in 
        the Reserve in which all of the subsurface estate is conveyed 
        to the Arctic Slope Regional Corporation (referred to in this 
        subsection as the `Corporation').
            ``(2) Partial conveyance.--
                    ``(A) In general.--In a case in which a conveyance 
                of a subsurface estate described in paragraph (1) does 
                not include all of the land covered by the oil and gas 
                lease, the person that owns the subsurface estate in 
                any particular portion of the land covered by the lease 
                shall be entitled to all of the revenues reserved under 
                the lease as to that portion, including, without 
                limitation, all the royalty payable with respect to oil 
                or gas produced from or allocated to that portion.
                    ``(B) Segregation of lease.--In a case described in 
                subparagraph (A), the Secretary of the Interior shall--
                            ``(i) segregate the lease into 2 leases, 1 
                        of which shall cover only the subsurface estate 
                        conveyed to the Corporation; and
                            ``(ii) waive administration of the lease 
                        that covers the subsurface estate conveyed to 
                        the Corporation.
                    ``(C) No change in lease obligations.--The 
                segregation of the lease described in subparagraph 
                (B)(i) has no effect on the obligations of the lessee 
                under either of the resulting leases, including 
                obligations relating to operations, production, or 
                other circumstances (other than payment of rentals or 
                royalties).
            ``(3) Authority to manage federally owned surface estate.--
        Nothing in this subsection limits the authority of the 
        Secretary of the Interior to manage the federally-owned surface 
        estate within the Reserve.''.
    (c) Conforming Amendments.--Section 104 of the Naval Petroleum 
Reserves Production Act of 1976 (42 U.S.C. 6504) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (d) as 
        subsections (a) through (c), respectively.

SEC. 318. NORTH SLOPE SCIENCE INITIATIVE.

    (a) Establishment.--
            (1) In general.--The Secretary of the Interior shall 
        establish a long-term initiative to be known as the ``North 
        Slope Science Initiative'' (referred to in this section as the 
        ``Initiative'').
            (2) Purpose.--The purpose of the Initiative shall be to 
        implement efforts to coordinate collection of scientific data 
        that will provide a better understanding of the terrestrial, 
        aquatic, and marine ecosystems of the North Slope of Alaska.
    (b) Objectives.--To ensure that the Initiative is conducted through 
a comprehensive science strategy and implementation plan, the 
Initiative shall, at a minimum--
            (1) identify and prioritize information needs for 
        inventory, monitoring, and research activities to address the 
        individual and cumulative effects of past, ongoing, and 
        anticipated development activities and environmental change on 
        the North Slope;
            (2) develop an understanding of information needs for 
        regulatory and land management agencies, local governments, and 
        the public;
            (3) focus on prioritization of pressing natural resource 
        management and ecosystem information needs, coordination, and 
        cooperation among agencies and organizations;
            (4) coordinate ongoing and future inventory, monitoring, 
        and research activities to minimize duplication of effort, 
        share financial resources and expertise, and assure the 
        collection of quality information;
            (5) identify priority needs not addressed by agency science 
        programs in effect on the date of enactment of this Act and 
        develop a funding strategy to meet those needs;
            (6) provide a consistent approach to high caliber science, 
        including inventory, monitoring, and research;
            (7) maintain and improve public and agency access to--
                    (A) accumulated and ongoing research; and
                    (B) contemporary and traditional local knowledge; 
                and
            (8) ensure through appropriate peer review that the science 
        conducted by participating agencies and organizations is of the 
        highest technical quality.
    (c) Membership.--
            (1) In general.--To ensure comprehensive collection of 
        scientific data, in carrying out the Initiative, the Secretary 
        shall consult and coordinate with Federal, State, and local 
        agencies that have responsibilities for land and resource 
        management across the North Slope.
            (2) Cooperative agreements.--The Secretary shall enter into 
        cooperative agreements with the State of Alaska, the North 
        Slope Borough, the Arctic Slope Regional Corporation, and other 
        Federal agencies as appropriate to coordinate efforts, share 
        resources, and fund projects under this section.
    (d) Science Technical Advisory Panel.--
            (1) In general.--The Initiative shall include a panel to 
        provide advice on proposed inventory, monitoring, and research 
        functions.
            (2) Membership.--The panel described in paragraph (1) shall 
        consist of a representative group of not more than 15 
        scientists and technical experts from diverse professions and 
        interests, including the oil and gas industry, subsistence 
        users, Native Alaskan entities, conservation organizations, 
        wildlife management organizations, and academia, as determined 
        by the Secretary.
    (e) Reports.--Not later than 3 years after the date of enactment of 
this section and each year thereafter, the Secretary shall publish a 
report that describes the studies and findings of the Initiative.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 319. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.

    (a) In General.--The Secretary, in cooperation with the Secretary 
of Agriculture, shall establish a program not later than 1 year after 
the date of enactment of this Act to remediate, reclaim, and close 
orphaned, abandoned, or idled oil and gas wells located on land 
administered by the land management agencies within the Department of 
the Interior and the Department of Agriculture.
    (b) Activities.--The program under subsection (a) shall--
            (1) include a means of ranking orphaned, abandoned, or 
        idled wells sites for priority in remediation, reclamation, and 
        closure, based on public health and safety, potential 
        environmental harm, and other land use priorities;
            (2) provide for identification and recovery of the costs of 
        remediation, reclamation, and closure from persons or other 
        entities currently providing a bond or other financial 
        assurance required under State or Federal law for an oil or gas 
        well that is orphaned, abandoned, or idled; and
            (3) provide for recovery from the persons or entities 
        identified under paragraph (2), or their sureties or 
        guarantors, of the costs of remediation, reclamation, and 
        closure of such wells.
    (c) Cooperation and Consultations.--In carrying out the program 
under subsection (a), the Secretary shall--
            (1) work cooperatively with the Secretary of Agriculture 
        and the States within which Federal land is located; and
            (2) consult with the Secretary of Energy and the Interstate 
        Oil and Gas Compact Commission.
    (d) Plan.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, in cooperation with the Secretary of 
Agriculture, shall submit to Congress a plan for carrying out the 
program under subsection (a).
    (e) Idled Well.--For the purposes of this section, a well is idled 
if--
            (1) the well has been nonoperational for at least 7 years; 
        and
            (2) there is no anticipated beneficial use for the well.
    (f) Technical Assistance Program for Non-Federal Land.--
            (1) In general.--The Secretary of Energy shall establish a 
        program to provide technical and financial assistance to oil 
        and gas producing States to facilitate State efforts over a 10-
        year period to ensure a practical and economical remedy for 
        environmental problems caused by orphaned or abandoned oil and 
        gas exploration or production well sites on State or private 
        land.
            (2) Assistance.--The Secretary of Energy shall work with 
        the States, through the Interstate Oil and Gas Compact 
        Commission, to assist the States in quantifying and mitigating 
        environmental risks of onshore orphaned or abandoned oil or gas 
        wells on State and private land.
            (3) Activities.--The program under paragraph (1) shall 
        include--
                    (A) mechanisms to facilitate identification, if 
                feasible, of the persons currently providing a bond or 
                other form of financial assurance required under State 
                or Federal law for an oil or gas well that is orphaned 
                or abandoned;
                    (B) criteria for ranking orphaned or abandoned well 
                sites based on factors such as public health and 
                safety, potential environmental harm, and other land 
                use priorities;
                    (C) information and training programs on best 
                practices for remediation of different types of sites; 
                and
                    (D) funding of State mitigation efforts on a cost-
                shared basis.
    (g) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $25,000,000 for each of fiscal years 
        2006 through 2010.
            (2) Use.--Of the amounts authorized under paragraph (1), 
        $5,000,000 are authorized for each fiscal year for activities 
        under subsection (f).

SEC. 320. COMBINED HYDROCARBON LEASING.

    (a) Special Provisions Regarding Leasing.--Section 17(b)(2) of the 
Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) in the first sentence of subparagraph (A) (as 
        designated by paragraph (1)), by striking ``they shall be'' and 
        inserting ``the lands may be''; and
            (3) by adding at the end the following:
    ``(B) For any area that contains any combination of tar sand and 
oil or gas (or both), the Secretary may issue under this Act, 
separately--
            ``(i) a lease for exploration for and extraction of tar 
        sand; and
            ``(ii) a lease for exploration for and development of oil 
        and gas.
    ``(C) A lease described in subparagraph (B) shall have provisions 
addressing the appropriate accommodation of resources.
    ``(D) A lease issued for tar sand development shall be issued using 
the same bidding process, annual rental, and posting period as a lease 
issued for oil and gas, except that the minimum acceptable bid required 
for a lease issued for tar sand shall be $2 per acre.''.
    (b) Conforming Amendment.--Section 17(b)(1)(B) of the Mineral 
Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the second sentence 
by inserting ``subject to paragraph (2)(B),'' after ``Thereafter,''.
    (c) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary of the Interior shall issue final 
regulations to implement the amendments made by this section.

SEC. 321. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
adding at the end the following:
    ``(p) Leases, Easements, or Rights-Of-Way for Energy and Related 
Purposes.--
            ``(1) In General.--The Secretary, in consultation with the 
        Secretary of the Department in which the Coast Guard is 
        operating and other relevant departments and agencies of the 
        Federal Government, may grant a lease, easement, or right-of-
        way on the outer Continental Shelf for activities not otherwise 
        authorized in this Act, the Deepwater Port Act of 1974 (33 
        U.S.C. 1501 et seq.), the Ocean Thermal Energy Conversion Act 
        of 1980 (42 U.S.C. 9101 et seq.), or other applicable law, if 
        those activities--
                    ``(A) support exploration, development, or 
                production of oil or natural gas, except that a lease, 
                easement, or right-of-way shall not be granted in an 
                area in which oil and gas preleasing, leasing, and 
                related activities are prohibited by a moratorium;
                    ``(B) support transportation of oil or natural gas, 
                excluding shipping activities;
                    ``(C) produce or support production, 
                transportation, or transmission of energy from sources 
                other than oil and gas; or
                    ``(D) use, for energy-related purposes or for other 
                authorized marine-related purposes, facilities 
                currently or previously used for activities authorized 
                under this Act, except that any oil and gas energy-
                related uses shall not be authorized in areas in which 
                oil and gas preleasing, leasing, and related activities 
                are prohibited by a moratorium.
            ``(2) Payments.--The Secretary shall establish royalties, 
        fees, rentals, bonus, or other payments to ensure a fair return 
        to the United States for any lease, easement, or right-of-way 
        granted under this subsection.
            ``(3) Competitive or noncompetitive basis.--Except with 
        respect to projects that meet the criteria established under 
        section 321(d) of the Energy Policy Act of 2005, the Secretary 
        shall issue a lease, easement, or right-of-way under paragraph 
        (1) on a competitive basis unless the Secretary determines 
        after public notice of a proposed lease, easement, or right-of-
        way that there is no competitive interest.
            ``(4) Requirements.--The Secretary shall ensure that any 
        activity under this subsection is carried out in a manner that 
        provides for--
                    ``(A) safety;
                    ``(B) protection of the environment;
                    ``(C) prevention of waste;
                    ``(D) conservation of the natural resources of the 
                outer Continental Shelf;
                    ``(E) coordination with relevant Federal agencies;
                    ``(F) protection of national security interests of 
                the United States;
                    ``(G) protection of correlative rights in the outer 
                Continental Shelf;
                    ``(H) a fair return to the United States for any 
                lease, easement, or right-of-way under this subsection;
                    ``(I) prevention of interference with reasonable 
                uses (as determined by the Secretary) of the exclusive 
                economic zone, the high seas, and the territorial seas;
                    ``(J) consideration of--
                            ``(i) the location of, and any schedule 
                        relating to, a lease, easement, or right-of-way 
                        for an area of the outer Continental Shelf; and
                            ``(ii) any other use of the sea or seabed, 
                        including use for a fishery, a sealane, a 
                        potential site of a deepwater port, or 
                        navigation;
                    ``(K) public notice and comment on any proposal 
                submitted for a lease, easement, or right-of-way under 
                this subsection; and
                    ``(L) oversight, inspection, research, monitoring, 
                and enforcement relating to a lease, easement, or 
                right-of-way under this subsection.
            ``(5) Lease duration, suspension, and cancellation.--The 
        Secretary shall provide for the duration, issuance, transfer, 
        renewal, suspension, and cancellation of a lease, easement, or 
        right-of-way under this subsection.
            ``(6) Security.--The Secretary shall require the holder of 
        a lease, easement, or right-of-way granted under this 
        subsection to--
                    ``(A) furnish a surety bond or other form of 
                security, as prescribed by the Secretary;
                    ``(B) comply with such other requirements as the 
                Secretary considers necessary to protect the interests 
                of the public and the United States; and
                    ``(C) provide for the restoration of the lease, 
                easement, or right-of-way.
            ``(7) Coordination and consultation with affected state and 
        local governments.--The Secretary shall provide for 
        coordination and consultation with the Governor of any State or 
        the executive of any local government that may be affected by a 
        lease, easement, or right-of-way under this subsection.
            ``(8) Regulations.--Not later than 270 days after the date 
        of enactment of the Energy Policy Act of 2005, the Secretary, 
        in consultation with the Secretary of Defense, the Secretary of 
        the Department in which the Coast Guard is operating, the 
        Secretary of Commerce, heads of other relevant departments and 
        agencies of the Federal Government, and the Governor of any 
        affected State, shall issue any necessary regulations to carry 
        out this subsection.
            ``(9) Effect of subsection.--Nothing in this subsection 
        displaces, supersedes, limits, or modifies the jurisdiction, 
        responsibility, or authority of any Federal or State agency 
        under any other Federal law.
            ``(10) Applicability.--This subsection does not apply to 
        any area on the outer Continental Shelf within the exterior 
        boundaries of any unit of the National Park System, National 
        Wildlife Refuge System, or National Marine Sanctuary System, or 
        any National Monument.''.
    (b) Coordinated OCS Mapping Initiative.--
            (1) In general.--The Secretary, in cooperation with the 
        Secretary of Commerce, the Commandant of the Coast Guard, and 
        the Secretary of Defense, shall establish an interagency 
        comprehensive digital mapping initiative for the outer 
        Continental Shelf to assist in decisionmaking relating to the 
        siting of activities under subsection (p) of section 8 of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1337) (as added by 
        subsection (a)).
            (2) Use of data.--The mapping initiative shall use, and 
        develop procedures for accessing, data collected before the 
        date on which the mapping initiative is established, to the 
        maximum extent practicable.
            (3) Inclusions.--Mapping carried out under the mapping 
        initiative shall include an indication of the locations on the 
        outer Continental Shelf of--
                    (A) Federally-permitted activities;
                    (B) obstructions to navigation;
                    (C) submerged cultural resources;
                    (D) undersea cables;
                    (E) offshore aquaculture projects; and
                    (F) any area designated for the purpose of safety, 
                national security, environmental protection, or 
                conservation and management of living marine resources.
    (c) Conforming Amendment.--Section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) is amended by striking the section heading 
and inserting the following: ``Leases, Easements, and Rights-of-Way on 
the Outer Continental Shelf.--''.
    (d) Savings Provision.--Nothing in the amendment made by subsection 
(a) requires the resubmittal of any document that was previously 
submitted or the reauthorization of any action that was previously 
authorized with respect to a project for which, before the date of 
enactment of this Act--
            (1) an offshore test facility has been constructed; or
            (2) a request for a proposal has been issued by a public 
        authority.

SEC. 322. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

    (a) Short Title.--This section may be cited as the ``National 
Geological and Geophysical Data Preservation Program Act of 2005''.
    (b) Program.--The Secretary shall carry out a National Geological 
and Geophysical Data Preservation Program in accordance with this 
section--
            (1) to archive geologic, geophysical, and engineering data, 
        maps, well logs, and samples;
            (2) to provide a national catalog of such archival 
        material; and
            (3) to provide technical and financial assistance related 
        to the archival material.
    (c) Plan.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a plan for the 
implementation of the Program.
    (d) Data Archive System.--
            (1) Establishment.--The Secretary shall establish, as a 
        component of the Program, a data archive system to provide for 
        the storage, preservation, and archiving of subsurface, 
        surface, geological, geophysical, and engineering data and 
        samples. The Secretary, in consultation with the Advisory 
        Committee, shall develop guidelines relating to the data 
        archive system, including the types of data and samples to be 
        preserved.
            (2) System components.--The system shall be comprised of 
        State agencies that elect to be part of the system and agencies 
        within the Department of the Interior that maintain geological 
        and geophysical data and samples that are designated by the 
        Secretary in accordance with this subsection. The Program shall 
        provide for the storage of data and samples through data 
        repositories operated by such agencies.
            (3) Limitation of designation.--The Secretary may not 
        designate a State agency as a component of the data archive 
        system unless that agency is the agency that acts as the 
        geological survey in the State.
            (4) Data from federal land.--The data archive system shall 
        provide for the archiving of relevant subsurface data and 
        samples obtained from Federal land--
                    (A) in the most appropriate repository designated 
                under paragraph (2), with preference being given to 
                archiving data in the State in which the data were 
                collected; and
                    (B) consistent with all applicable law and 
                requirements relating to confidentiality and 
                proprietary data.
    (e) National Catalog.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary shall develop and 
        maintain, as a component of the Program, a national catalog 
        that identifies--
                    (A) data and samples available in the data archive 
                system established under subsection (d);
                    (B) the repository for particular material in the 
                system; and
                    (C) the means of accessing the material.
            (2) Availability.--The Secretary shall make the national 
        catalog accessible to the public on the site of the Survey on 
        the Internet, consistent with all applicable requirements 
        related to confidentiality and proprietary data.
    (f) Advisory Committee.--
            (1) In general.--The Advisory Committee shall advise the 
        Secretary on planning and implementation of the Program.
            (2) New duties.--In addition to its duties under the 
        National Geologic Mapping Act of 1992 (43 U.S.C. 31a et seq.), 
        the Advisory Committee shall perform the following duties:
                    (A) Advise the Secretary on developing guidelines 
                and procedures for providing assistance for facilities 
                under subsection (g)(1).
                    (B) Review and critique the draft implementation 
                plan prepared by the Secretary under subsection (c).
                    (C) Identify useful studies of data archived under 
                the Program that will advance understanding of the 
                Nation's energy and mineral resources, geologic 
                hazards, and engineering geology.
                    (D) Review the progress of the Program in archiving 
                significant data and preventing the loss of such data, 
                and the scientific progress of the studies funded under 
                the Program.
                    (E) Include in the annual report to the Secretary 
                required under section 5(b)(3) of the National Geologic 
                Mapping Act of 1992 (43 U.S.C. 31d(b)(3)) an evaluation 
                of the progress of the Program toward fulfilling the 
                purposes of the Program under subsection (b).
    (g) Financial Assistance.--
            (1) Archive facilities.--Subject to the availability of 
        appropriations, the Secretary shall provide financial 
        assistance to a State agency that is designated under 
        subsection (d)(2) for providing facilities to archive energy 
        material.
            (2) Studies.--Subject to the availability of 
        appropriations, the Secretary shall provide financial 
        assistance to any State agency designated under subsection 
        (d)(2) for studies and technical assistance activities that 
        enhance understanding, interpretation, and use of materials 
        archived in the data archive system established under 
        subsection (d).
            (3) Federal share.--The Federal share of the cost of an 
        activity carried out with assistance under this subsection 
        shall be not more than 50 percent of the total cost of the 
        activity.
            (4) Private contributions.--The Secretary shall apply to 
        the non-Federal share of the cost of an activity carried out 
        with assistance under this subsection the value of private 
        contributions of property and services used for that activity.
    (h) Report.--The Secretary shall include in each report under 
section 8 of the National Geologic Mapping Act of 1992 (43 U.S.C. 
31g)--
            (1) a description of the status of the Program;
            (2) an evaluation of the progress achieved in developing 
        the Program during the period covered by the report; and
            (3) any recommendations for legislative or other action the 
        Secretary considers necessary and appropriate to fulfill the 
        purposes of the Program under subsection (b).
    (i) Maintenance of State Effort.--It is the intent of Congress that 
the States not use this section as an opportunity to reduce State 
resources applied to the activities that are the subject of the 
Program.
    (j) Definitions.--In this section:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the advisory committee established under section 5 of the 
        National Geologic Mapping Act of 1992 (43 U.S.C. 31d).
            (2) Program.--The term ``Program'' means the National 
        Geological and Geophysical Data Preservation Program carried 
        out under this section.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (4) Survey.--The term ``Survey'' means the United States 
        Geological Survey.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $30,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 323. OIL AND GAS LEASE ACREAGE LIMITATIONS.

    Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) 
is amended by inserting after ``acreage held in special tar sand 
areas'' the following: ``, and acreage under any lease any portion of 
which has been committed to a federally approved unit or cooperative 
plan or communitization agreement or for which royalty (including 
compensatory royalty or royalty in-kind) was paid in the preceding 
calendar year,''.

SEC. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

    (a) Assessment.--The Secretary shall assess the economic 
implications of the dependence of the State of Hawaii on oil as the 
principal source of energy for the State, including--
            (1) the short- and long-term prospects for crude oil supply 
        disruption and price volatility and potential impacts on the 
        economy of Hawaii;
            (2) the economic relationship between oil-fired generation 
        of electricity from residual fuel and refined petroleum 
        products consumed for ground, marine, and air transportation;
            (3) the technical and economic feasibility of increasing 
        the contribution of renewable energy resources for generation 
        of electricity, on an island-by-island basis, including--
                    (A) siting and facility configuration;
                    (B) environmental, operational, and safety 
                considerations;
                    (C) the availability of technology;
                    (D) the effects on the utility system, including 
                reliability;
                    (E) infrastructure and transport requirements;
                    (F) community support; and
                    (G) other factors affecting the economic impact of 
                such an increase and any effect on the economic 
                relationship described in paragraph (2);
            (4) the technical and economic feasibility of using 
        liquefied natural gas to displace residual fuel oil for 
        electric generation, including neighbor island opportunities, 
        and the effect of the displacement on the economic relationship 
        described in paragraph (2), including--
                    (A) the availability of supply;
                    (B) siting and facility configuration for onshore 
                and offshore liquefied natural gas receiving terminals;
                    (C) the factors described in subparagraphs (B) 
                through (F) of paragraph (3); and
                    (D) other economic factors;
            (5) the technical and economic feasibility of using 
        renewable energy sources (including hydrogen) for ground, 
        marine, and air transportation energy applications to displace 
        the use of refined petroleum products, on an island-by-island 
        basis, and the economic impact of the displacement on the 
        relationship described in (2); and
            (6) an island-by-island approach to--
                    (A) the development of hydrogen from renewable 
                resources; and
                    (B) the application of hydrogen to the energy needs 
                of Hawaii
    (b) Contracting Authority.--The Secretary may carry out the 
assessment under subsection (a) directly or, in whole or in part, 
through 1 or more contracts with qualified public or private entities.
    (c) Report.--Not later than 300 days after the date of enactment of 
this Act, the Secretary shall prepare (in consultation with agencies of 
the State of Hawaii and other stakeholders, as appropriate), and submit 
to Congress, a report describing the findings, conclusions, and 
recommendations resulting from the assessment.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 325. DENALI COMMISSION.

    (a) Definition of Commission.--In this section, the term 
``Commission'' means the Denali Commission established by the Denali 
Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105-277).
    (b) Energy Programs.--The Commission shall use amounts made 
available under subsection (d) to carry out energy programs, 
including--
            (1) energy generation and development, including--
                    (A) fuel cells, hydroelectric, solar, wind, wave, 
                and tidal energy; and
                    (B) alternative energy sources;
            (2) the construction of energy transmission, including 
        interties;
            (3) the replacement and cleanup of fuel tanks;
            (4) the construction of fuel transportation networks and 
        related facilities;
            (5) power cost equalization programs; and
            (6) projects using coal as a fuel, including coal 
        gasification projects.
    (c) Open Meetings.--
            (1) In general.--Except as provided in paragraph (2), a 
        meeting of the Commission shall be open to the public if--
                    (A) the Commission members take action on behalf of 
                the Commission; or
                    (B) the deliberations of the Commission determine, 
                or result in the joint conduct or disposition of, 
                official Commission business.
            (2) Exceptions.--Paragraph (1) shall not apply to any 
        portion of a Commission meeting for which the Commission, in 
        public session, votes to close the meeting for the reasons 
        described in paragraph (2), (4), (5), or (6) of subsection (c) 
        of section 552b of title 5, United States Code.
            (3) Public notice.--
                    (A) In general.--At least 1 week before a meeting 
                of the Commission, the Commission shall make a public 
                announcement of the meeting that describes--
                            (i) the time, place, and subject matter of 
                        the meeting;
                            (ii) whether the meeting is to be open or 
                        closed to the public; and
                            (iii) the name and telephone number of an 
                        appropriate person to respond to requests for 
                        information about the meeting.
                    (B) Additional notice.--The Commission shall make a 
                public announcement of any change to the information 
                made available under subparagraph (A) at the earliest 
                practicable time.
            (4) Minutes.--The Commission shall keep, and make available 
        to the public, a transcript, electronic recording, or minutes 
        from each Commission meeting, except for portions of the 
        meeting closed under paragraph (2).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Commission not more than $55,000,000 for each of 
fiscal years 2006 through 2015 to carry out subsection (b).

SEC. 326. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

    (a) In General.--The Secretary of the Interior shall conduct an 
inventory and analysis of oil and natural gas resources beneath all of 
the waters of the United States Outer Continental Shelf (``OCS''). The 
inventory and analysis shall--
            (1) use available data on oil and gas resources in areas 
        offshore of Mexico and Canada that will provide information on 
        trends of oil and gas accumulation in areas of the OCS;
            (2) use any available technology, except drilling, but 
        including 3-D seismic technology to obtain accurate resource 
        estimates;
            (3) analyze how resource estimates in OCS areas have 
        changed over time in regards to gathering geological and 
        geophysical data, initial exploration, or full field 
        development, including areas such as the deepwater and subsalt 
        areas in the Gulf of Mexico;
            (4) estimate the effect that understated oil and gas 
        resource inventories have on domestic energy investments; and
            (5) identify and explain how legislative, regulatory, and 
        administrative programs or processes restrict or impede the 
        development of identified resources and the extent that they 
        affect domestic supply, such as moratoria, lease terms and 
        conditions, operational stipulations and requirements, approval 
        delays by the Federal government and coastal States, and local 
        zoning restrictions for onshore processing facilities and 
        pipeline landings.
    (b) Reports.--The Secretary of Interior shall submit a report to 
Congress on the inventory of estimates and the analysis of restrictions 
or impediments, together with any recommendations, within 6 months of 
the date of enactment of the section. The report shall be publicly 
available and updated at least every 5 years.

SEC. 327. REVIEW AND DEMONSTRATION PROGRAM FOR OIL AND NATURAL GAS 
              PRODUCTION.

    (a) Review.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary of the Interior, in 
        consultation with the Secretary of Energy (referred to in this 
        section as the ``Secretary''), shall carry out a review of, and 
        submit to Congress a report on opportunities to enhance 
        production of oil and natural gas from public land and the 
        outer Continental Shelf, and increase sequestration of carbon 
        dioxide through the provision of royalty or other production 
        incentives to lessees that inject carbon dioxide as a means of 
        enhanced recovery.
            (2) Components.--The Secretary of the Interior shall 
        describe in the review and report under paragraph (1)--
                    (A) eligibility requirements for incentives;
                    (B) the appropriate level of royalty relief, if 
                any;
                    (C) other appropriate production incentives, if 
                any;
                    (D) an estimate of the increased quantity of oil 
                and gas production that could be achieved through 
                implementation of those incentives;
                    (E) an estimate of the quantity of carbon 
                sequestration that could be achieved through 
                implementation of those incentives;
                    (F) practices (and the extent of the use of the 
                practices) as of the date of enactment of this Act that 
                rely on carbon dioxide injection for enhanced oil and 
                gas recovery; and
                    (G) any recommendations for implementation of 
                royalty relief or other production incentives, 
                including--
                            (i) the period of time during which those 
                        incentives should be available; and
                            (ii) any geographic or other limitations 
                        that should apply to the incentives.
    (b) Demonstration Program.--
            (1) Establishment.--
                    (A) In general.--The Secretary shall establish a 
                competitive grant program to provide grants to 
                producers of oil and gas to carry out projects to 
                inject carbon dioxide for the purpose of enhancing 
                recovery of oil or natural gas while increasing the 
                sequestration of carbon dioxide.
                    (B) Projects.--The demonstration program shall 
                provide for--
                            (i) not more than 10 projects in the 
                        Willistin Basin in North Dakota and Montana; 
                        and
                            (ii) 1 project in the Cook Inlet Basin in 
                        Alaska.
            (2) Requirements.--
                    (A) In general.--The Secretary shall issue 
                requirements relating to applications for grants under 
                paragraph (1).
                    (B) Rulemaking.--The issuance of requirements under 
                subparagraph (A) shall not require a rulemaking.
                    (C) Minimum requirements.--At a minimum, the 
                Secretary shall require under subparagraph (A) that an 
                application for a grant include--
                            (i) a description of the project proposed 
                        in the application;
                            (ii) an estimate of the production increase 
                        and the duration of the production increase 
                        from the project, as compared to conventional 
                        recovery techniques, including water flooding;
                            (iii) an estimate of the carbon dioxide 
                        sequestered by project, over the life of the 
                        project;
                            (iv) a plan to collect and disseminate data 
                        relating to each project to be funded by the 
                        grant;
                            (v) a description of the means by which the 
                        project will be sustainable without Federal 
                        assistance after the completion of the term of 
                        the grant;
                            (vi) a complete description of the costs of 
                        the project, including acquisition, 
                        construction, operation, and maintenance costs 
                        over the expected life of the project;
                            (vii) a description of which costs of the 
                        project will be supported by Federal assistance 
                        under this section; and
                            (viii) a description of any secondary or 
                        tertiary recovery efforts in the field and the 
                        efficacy of water flood recovery techniques 
                        used.
            (3) Partners.--An applicant for a grant under paragraph (1) 
        may carry out a project under a pilot program in partnership 
        with 1 or more other public or private entities.
            (4) Selection criteria.--In evaluating applications under 
        this subsection, the Secretary shall--
                    (A) consider the previous experience with similar 
                projects of each applicant;
                    (B) give priority consideration to applications 
                that--
                            (i) are most likely to maximize production 
                        of oil and gas in a cost-effective manner;
                            (ii) sequester significant quantities of 
                        carbon dioxide from anthropogenic sources;
                            (iii) demonstrate the greatest commitment 
                        on the part of the applicant to ensure funding 
                        for the proposed project and the greatest 
                        likelihood that the project will be maintained 
                        or expanded after Federal assistance under this 
                        section is completed; and
                            (iv) minimize any adverse environmental 
                        effects from the project.
            (5) Demonstration program requirements.--
                    (A) Maximum amount.--The Secretary shall not 
                provide more than $3,000,000 in Federal assistance 
                under this subsection to any applicant.
                    (B) Cost sharing.--The Secretary shall require 
                cost-sharing in accordance with section 1002.
                    (C) Period of grants.--
                            (i) In general.--A project funded by a 
                        grant under this subsection shall begin 
                        construction not later than 2 years after the 
                        date of provision of the grant, but in any case 
                        not later than December 31, 2010.
                            (ii) Term.--The Secretary shall not provide 
                        grant funds to any applicant under this 
                        subsection for a period of more than 5 years.
            (6) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the program under this 
        subsection are transferred among other participants and 
        interested parties, including other applicants that submitted 
        applications for a grant under this subsection.
            (7) Schedule.--
                    (A) Publication.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary shall 
                publish in the Federal Register, and elsewhere, as 
                appropriate, a request for applications to carry out 
                projects under this subsection.
                    (B) Date for applications.--An application for a 
                grant under this subsection shall be submitted not 
                later than 180 days after the date of publication of 
                the request under subparagraph (A).
                    (C) Selection.--After the date by which 
                applications for grants are required to be submitted 
                under subparagraph (B), the Secretary, in a timely 
                manner, shall select, after peer review and based on 
                the criteria under paragraph (4), those projects to be 
                awarded a grant under this subsection.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 328. NO OIL PRODUCING AND EXPORTING CARTELS.

    (a) Short Title.--This section may be cited as the ``No Oil 
Producing and Exporting Cartels Act of 2005'' or ``NOPEC''.
    (b) Sherman Act.--The Sherman Act (15 U.S.C. 1 et seq.) is amended 
by adding after section 7 the following:

``SEC. 7A. OIL PRODUCING CARTELS.

    ``(a) In General.--It shall be illegal and a violation of this Act 
for any foreign state, or any instrumentality or agent of any foreign 
state, to act collectively or in combination with any other foreign 
state, any instrumentality or agent of any other foreign state, or any 
other person, whether by cartel or any other association or form of 
cooperation or joint action--
            ``(1) to limit the production or distribution of oil, 
        natural gas, or any other petroleum product;
            ``(2) to set or maintain the price of oil, natural gas, or 
        any petroleum product; or
            ``(3) to otherwise take any action in restraint of trade 
        for oil, natural gas, or any petroleum product;
when such action, combination, or collective action has a direct, 
substantial, and reasonably foreseeable effect on the market, supply, 
price, or distribution of oil, natural gas, or other petroleum product 
in the United States.
    ``(b) Sovereign Immunity.--A foreign state engaged in conduct in 
violation of subsection (a) shall not be immune under the doctrine of 
sovereign immunity from the jurisdiction or judgments of the courts of 
the United States in any action brought to enforce this section.
    ``(c) Inapplicability of Act of State Doctrine.--No court of the 
United States shall decline, based on the act of state doctrine, to 
make a determination on the merits in an action brought under this 
section.
    ``(d) Enforcement.--The Attorney General of the United States and 
the Federal Trade Commission may bring an action to enforce this 
section in any district court of the United States as provided under 
the antitrust laws.''.
    (c) Sovereign Immunity.--Section 1605(a) of title 28, United States 
Code, is amended--
            (1) in paragraph (6), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (7), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(8) in which the action is brought under section 7A of 
        the Sherman Act.''.

                   Subtitle C--Access to Federal Land

SEC. 341. FEDERAL ONSHORE OIL AND GAS LEASING PRACTICES.

    (a) Review of Onshore Oil and Gas Leasing Practices.--The Secretary 
of the Interior shall make the necessary arrangements with the National 
Academy of Public Administration to commission the Academy to perform a 
review of Federal onshore oil and gas leasing practices. The Secretary 
of the Interior shall conduct an internal review concurrent with the 
work of the National Academy of Public Administration. The reviews 
shall include the following:
            (1) The process by which Federal land managers accept or 
        reject an offer to lease, including the timeframes in which 
        such offers are acted upon, and any recommendations for 
        improving and expediting the process.
            (2) The process for considering applications for permits to 
        drill, including the timeframes in which such applications are 
        considered, and any recommendations for improving and 
        expediting the process.
            (3) The process for considering surface use plans of 
        operation, including the timeframes in which such plans are 
        considered, and any recommendations for improving and 
        expediting the process.
            (4) The process for administrative appeal of decisions or 
        orders of officers or employees of the Bureau of Land 
        Management with respect to a Federal oil or gas lease, 
        including the timeframes in which such appeals are heard and 
        decided, and any recommendations for improving and expediting 
        the process.
            (5) The process by which Federal land managers identify 
        stipulations to address site-specific concerns and conditions, 
        including those relating to the environment and resource use 
        conflicts, whether stipulations are effective in addressing 
        resource values, and any recommendations for expediting and 
        improving the identification and effectiveness of stipulations.
            (6) The process by which the Federal land management 
        agencies coordinate planning and analysis with planning of 
        Federal, State, and local agencies having jurisdiction over 
        adjacent areas and other land uses, and any recommendations for 
        improving and expediting the process.
            (7) The documentation provided to lease applicants and 
        lessees with respect to determinations to reject lease 
        applications or to require modification of proposed surface use 
        plans of operation and recommendations regarding improvement of 
        such documentation to more clearly set forth the basis for the 
        decision.
            (8) The adequacy of resources available to the Secretary of 
        the Interior for administering the Federal onshore oil and gas 
        leasing program.
            (9) Actions taken by the Secretary under section 3 of 
        Executive Order No. 13212 (42 U.S.C. 13201 note).
            (10) Actions taken by, or plans of, the Secretary to 
        improve the Federal onshore oil and gas leasing program.
    (b) Report.--The Secretary of the Interior and the National Academy 
of Public Administration shall report to the Committee on Resources of 
the House of Representatives and to the Committee on Energy and Natural 
Resources of the Senate not later than 18 months after the date of the 
enactment of this Act, summarizing the findings of their respective 
reviews undertaken pursuant to this section and making recommendations 
with respect to improvements in the Federal onshore oil and gas leasing 
program.

SEC. 342. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--
            (1) Secretary of the Interior.--To ensure timely action on 
        oil and gas leases and applications for permits to drill on 
        land otherwise available for leasing, the Secretary of the 
        Interior (referred to in this section as the ``Secretary'') 
        shall--
                    (A) ensure expeditious compliance with section 
                102(2)(C) of the National Environmental Policy Act of 
                1969 (42 U.S.C. 4332(2)(C)) and any other applicable 
                environmental and cultural resources laws;
                    (B) improve consultation and coordination with the 
                States and the public; and
                    (C) improve the collection, storage, and retrieval 
                of information relating to the oil and gas leasing 
                activities.
            (2) Secretary of Agriculture.--To ensure timely action on 
        oil and gas lease applications for permits to drill on land 
        otherwise available for leasing, the Secretary of Agriculture 
        shall--
                    (A) ensure expeditious compliance with all 
                applicable environmental and cultural resources laws; 
                and
                    (B) improve the collection, storage, and retrieval 
                of information relating to the oil and gas leasing 
                activities.
    (b) Best Management Practices.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall develop and 
        implement best management practices to--
                    (A) improve the administration of the onshore oil 
                and gas leasing program under the Mineral Leasing Act 
                (30 U.S.C. 181 et seq.); and
                    (B) ensure timely action on oil and gas leases and 
                applications for permits to drill on land otherwise 
                available for leasing.
            (2) Regulations.--Not later than 180 days after the 
        development of the best management practices under paragraph 
        (1), the Secretary shall publish, for public comment, proposed 
        regulations that set forth specific timeframes for processing 
        leases and applications in accordance with the best management 
        practices, including deadlines for--
                    (A) approving or disapproving--
                            (i) resource management plans and related 
                        documents;
                            (ii) lease applications;
                            (iii) applications for permits to drill; 
                        and
                            (iv) surface use plans; and
                    (B) related administrative appeals.
    (c) Improved Enforcement.--The Secretary and the Secretary 
Agriculture shall improve inspection and enforcement of oil and gas 
activities, including enforcement of terms and conditions in permits to 
drill on land under the jurisdiction of the Secretary and the Secretary 
of Agriculture, respectively.
    (d) Authorization of Appropriations.--In addition to amounts made 
available to carry out activities relating to oil and gas leasing on 
public land administered by the Secretary and National Forest System 
land administered by the Secretary of Agriculture, there are authorized 
to be appropriated for each of fiscal years 2006 through 2010--
            (1) to the Secretary, acting through the Director of the 
        Bureau of Land Management--
                    (A) $40,000,000 to carry out subsections (a)(1) and 
                (b); and
                    (B) $20,000,000 to carry out subsection (c);
            (2) to the Secretary, acting through the Director of the 
        United States Fish and Wildlife Service, $5,000,000 to carry 
        out subsection (a)(1); and
            (3) to the Secretary of Agriculture, acting through the 
        Chief of the Forest Service, $5,000,000 to carry out 
        subsections (a)(2) and (c).

SEC. 343. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior and the Secretary 
of Agriculture shall enter into a memorandum of understanding regarding 
oil and gas leasing on--
            (1) public land under the jurisdiction of the Secretary of 
        the Interior; and
            (2) National Forest System land under the jurisdiction of 
        the Secretary of Agriculture.
    (b) Contents.--The memorandum of understanding shall include 
provisions that--
            (1) establish administrative procedures and lines of 
        authority that ensure timely processing of--
                    (A) oil and gas lease applications;
                    (B) surface use plans of operation, including steps 
                for processing surface use plans; and
                    (C) applications for permits to drill, including 
                applications for permits to drill consistent with 
                applicable timelines;
            (2) eliminate duplication of effort by providing for 
        coordination of planning and environmental compliance efforts;
            (3) ensure that lease stipulations are--
                    (A) applied consistently;
                    (B) coordinated between agencies; and
                    (C) only as restrictive as necessary to protect the 
                resource for which the stipulations are applied;
            (4) establish a joint data retrieval system that is capable 
        of--
                    (A) tracking applications and formal requests made 
                in accordance with procedures of the Federal onshore 
                oil and gas leasing program; and
                    (B) providing information regarding the status of 
                the applications and requests within the Department of 
                the Interior and the Department of Agriculture; and
            (5) establish a joint geographic information system mapping 
        system for use in--
                    (A) tracking surface resource values to aid in 
                resource management; and
                    (B) processing surface use plans of operation and 
                applications for permits to drill.

SEC. 344. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (referred to in 
this section as the ``Secretary'') shall establish a Federal Permit 
Streamlining Pilot Project (referred to in this section as the ``Pilot 
Project'').
    (b) Memorandum of Understanding.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall enter into a 
        memorandum of understanding for purposes of this section with--
                    (A) the Secretary of Agriculture;
                    (B) the Administrator of the Environmental 
                Protection Agency; and
                    (C) the Chief of Engineers.
            (2) State participation.--The Secretary may request that 
        the Governors of Wyoming, Montana, Colorado, Utah, and New 
        Mexico be signatories to the memorandum of understanding.
    (c) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the date of 
        the signing of the memorandum of understanding under subsection 
        (b), all Federal signatory parties shall, if appropriate, 
        assign to each of the field offices identified in subsection 
        (d) an employee who has expertise in the regulatory issues 
        relating to the office in which the employee is employed, 
        including, as applicable, particular expertise in--
                    (A) the consultations and the preparation of 
                biological opinions under section 7 of the Endangered 
                Species Act of 1973 (16 U.S.C. 1536);
                    (B) permits under section 404 of Federal Water 
                Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air Act (42 
                U.S.C. 7401 et seq.);
                    (D) planning under the National Forest Management 
                Act of 1976 (16 U.S.C. 472a et seq.); and
                    (E) the preparation of analyses under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
            (2) Duties.--Each employee assigned under paragraph (1) 
        shall--
                    (A) not later than 90 days after the date of 
                assignment, report to the Bureau of Land Management 
                Field Managers in the office to which the employee is 
                assigned;
                    (B) be responsible for all issues relating to the 
                jurisdiction of the home office or agency of the 
                employee; and
                    (C) participate as part of the team of personnel 
                working on proposed energy projects, planning, and 
                environmental analyses.
    (d) Field Offices.--The following Bureau of Land Management Field 
Offices shall serve as the Pilot Project offices:
            (1) Rawlins, Wyoming.
            (2) Buffalo, Wyoming.
            (3) Miles City, Montana
            (4) Farmington, New Mexico.
            (5) Carlsbad, New Mexico.
            (6) Grand Junction/Glenwood Springs, Colorado.
            (7) Vernal, Utah.
    (e) Reports.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that--
            (1) outlines the results of the Pilot Project to date; and
            (2) makes a recommendation to the President regarding 
        whether the Pilot Project should be implemented throughout the 
        United States.
    (f) Additional Personnel.--The Secretary shall assign to each field 
office identified in subsection (d) any additional personnel that are 
necessary to ensure the effective implementation of--
            (1) the Pilot Project; and
            (2) other programs administered by the field offices, 
        including inspection and enforcement relating to energy 
        development on Federal land, in accordance with the multiple 
        use mandate of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1701 et seq).
    (g) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary such sums as are necessary to carry out this 
        section for each of fiscal years 2006 through 2010.
            (2) Transfer of funds.--For the purposes of coordination 
        and processing of oil and gas use authorizations on Federal 
        land under the administration of the Pilot Project offices 
        identified in subsection (d), the Secretary may authorize the 
        expenditure or transfer of such funds as are necessary to--
                    (A) the United States Fish and Wildlife Service;
                    (B) the Bureau of Indian Affairs;
                    (C) the Forest Service;
                    (D) the Environmental Protection Agency;
                    (E) the Corps of Engineers; and
                    (F) the States of Wyoming, Montana, Colorado, Utah, 
                and New Mexico.
    (h) Savings Provision.--Nothing in this section affects--
            (1) the operation of any Federal or State law; or
            (2) any delegation of authority made by the head of a 
        Federal agency whose employees are participating in the Pilot 
        Project.

SEC. 345. ENERGY FACILITY RIGHTS-OF-WAYS AND CORRIDORS ON FEDERAL LAND.

    (a) Definitions.--In this section:
            (1) Corridor.--In this section and section 503 of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 
        1763), the term ``corridor'' means--
                    (A) a linear strip of land--
                            (i) with a width determined with 
                        consideration given to technological, 
                        environmental, and topographical factors; and
                            (ii) that contains, or may in the future 
                        contain, 1 or more utility facilities;
                    (B) a land use designation that is established--
                            (i) by law;
                            (ii) by order of the head of a Federal 
                        agency;
                            (iii) through the land use planning 
                        process; or
                            (iv) by other management decision; and
                    (C) a designation made for the purpose of 
                establishing the preferred location of a compatible 
                utility facility.
            (2) Federal authorization.--
                    (A) In general.--The term ``Federal authorization'' 
                means any authorization required under Federal law in 
                order to site a utility facility.
                    (B) Inclusions.--The term ``Federal authorization'' 
                includes such permits, special use authorizations, 
                certifications, opinions, or other approvals as may be 
                required, that are issued by a Federal agency.
            (3) Federal land.--
                    (A) In general.--The term ``Federal land'' means 
                all land owned by the United States.
                    (B) Exclusions.--The term ``Federal land'' does not 
                include land--
                            (i) within the National Park System;
                            (ii) within the National Wilderness 
                        Preservation System;
                            (iii) designated as a National Monument;
                            (iv) held in trust for an Indian or Indian 
                        tribe; or
                            (v) on the outer Continental Shelf.
            (4) Utility corridor.--The term ``utility corridor'' means 
        any linear strip of land across Federal land referred to in 
        subsection (b) of approved width, but limited for use by a 
        utility facility by technological, environmental, or 
        topographical factors.
            (5) Utility facility.--The term ``utility facility'' means 
        any privately-, publicly-, or cooperatively-owned line, 
        facility, or system--
                    (A) for the transportation of--
                            (i) oil or natural gas, synthetic liquid or 
                        gaseous fuel, or any refined product produced 
                        from any of those materials; or
                            (ii) products in support of production, or 
                        for storage or terminal facilities in 
                        connection with production; or
                    (B) for the generation, transmission, or 
                distribution of electric energy.
    (b) Utility Corridors.--
            (1) In general.--Not later than 2 years after the document 
        described in subsection (c)(3) is completed, the Secretary of 
        the Interior, with respect to public lands (as defined in 
        section 103(e) of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1702(e)), and the Secretary of Agriculture, 
        with respect to National Forest System land, shall designate 
        utility corridors pursuant to--
                    (A) section 503 of the Federal Land Policy and 
                Management Act (43 U.S.C. 1763) in the 11 contiguous 
                Western States (as identified in section 103(o) of that 
                Act (43 U.S.C. 1702(o))); and
                    (B) relevant departmental and agency land use and 
                resource management plans or equivalent plans.
            (2) Coordination.--The Secretary shall coordinate with 
        affected Federal agencies to jointly--
                    (A) identify potential utility corridors on Federal 
                land in States not described in paragraph (1)(A); and
                    (B) develop a schedule for the designation, 
                environmental review, and incorporation of the utility 
                corridors into relevant departmental and agency land 
                use and resource management plans or equivalent plans.
            (3) Specifications of corridor.--A corridor designated 
        under this section shall specify the centerline, width, and 
        compatible uses of the corridor.
    (c) Federal Permit Coordination.--
            (1) In general.--The Secretary shall enter into a 
        memorandum of understanding with the Secretary of the Interior, 
        the Secretary of Agriculture, and the Secretary of Defense for 
        the purpose of coordinating all applicable Federal 
        authorizations and environmental reviews relating to a proposed 
        or existing utility facility.
            (2) Additional entities.--To the maximum extent practicable 
        under applicable law, the Secretary shall coordinate the 
        process developed through the memorandum of understanding under 
        paragraph (1) with any Indian tribes, multistate entities, and 
        State agencies that are responsible for conducting any separate 
        permitting and environmental reviews of the affected utility 
        facility to ensure timely review and permit decisions.
            (3) Contents of mou.--The memorandum of understanding under 
        paragraph (1) shall provide for--
                    (A) coordination, among affected Federal agencies, 
                to ensure that the necessary Federal authorizations--
                            (i) are conducted concurrently with 
                        applicable State siting processes; and
                            (ii) are considered within a specific time 
                        frame identified within the memorandum of 
                        understanding;
                    (B) an agreement among the affected Federal 
                agencies to prepare a programmatic environmental review 
                document to be used as the underlying basis for all 
                Federal authorization decisions; and
                    (C) a process to expedite applications to construct 
                or modify utility facilities within utility corridors.

SEC. 346. OIL SHALE AND TAR SANDS.

    (a) Declaration of Policy.--Congress declares that it is the policy 
of the United States that--
            (1) United States oil shale and tar sands are strategically 
        important domestic resources that should be developed through 
        methods that help reduce the growing dependence of the United 
        States on politically and economically unstable sources of 
        foreign oil imports;
            (2) the development of oil shale and tar sands, for 
        research and commercial development, should be conducted in an 
        economically feasible and environmentally sound manner, using 
        practices that minimize impacts;
            (3) development should occur at a deliberate pace, with an 
        emphasis on sustainability, to benefit the United States while 
        taking into account affected States and communities; and
            (4) the Secretary of the Interior should work toward 
        developing a commercial leasing program for oil shale and tar 
        sands so that such a program can be implemented when production 
        technologies are commercially viable.
    (b) Leasing Program.--
            (1) Research and development.--
                    (A) In general.--In accordance with section 21 of 
                the Mineral Leasing Act (30 U.S.C. 241) and any other 
                applicable law, except as provided in this section, not 
                later than 1 year after the date of enactment of this 
                Act, from land otherwise available for leasing, the 
                Secretary of the Interior (referred to in this section 
                as the ``Secretary'') shall, for a period determined by 
                the Secretary, make available for leasing such land as 
                the Secretary considers to be necessary to conduct 
                research and development activities with respect to 
                innovative technologies for the recovery of shale oil 
                from oil shale resources on public land.
                    (B) Application.--The Secretary may offer to lease 
                the land to persons that submit an application for the 
                lease, if the Secretary determines that there is no 
                competitive interest in the land.
                    (C) Administration.--In carrying out this 
                paragraph, the Secretary shall--
                            (i) provide for environmentally sound 
                        research and development of oil shale;
                            (ii) provide for an appropriate return to 
                        the public, as determined by the Secretary;
                            (iii) before carrying out any activity that 
                        will disturb the surface of land, provide for 
                        an adequate bond, surety, or other financial 
                        arrangement to ensure reclamation;
                            (iv) provide for a primary lease term of 10 
                        years, after which the lease term may be 
                        extended if the Secretary determines that 
                        diligent research and development activities 
                        are occurring on the land leased;
                            (v) require the owner or operator of a 
                        project under this subsection, within such 
                        period as the Secretary may determine--
                                    (I) to submit a plan of operations;
                                    (II) to develop an environmental 
                                protection plan; and
                                    (III) to undertake diligent 
                                research and development activities;
                            (vi) ensure that leases under this section 
                        are not larger than necessary to conduct 
                        research and development activities under an 
                        application under subparagraph (B);
                            (vii) provide for consultation with 
                        affected State and local governments; and
                            (viii) provide for such requirements as the 
                        Secretary determines to be in the public 
                        interest.
            (2) Commercial leasing.--Prior to conducting commercial 
        leasing, the Secretary shall carry out--
                    (A) the programmatic environmental impact statement 
                required under subsection (c); and
                    (B) the analysis required under subsection (d).
            (3) Moneys received.--Any moneys received from a leasing 
        activity under this subsection shall be paid in accordance with 
        section 35 of the Mineral Leasing Act (30 U.S.C. 191).
    (c) Programmatic Environmental Impact Statement.--Not later than 18 
months after the date of enactment of this Act, in accordance with 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)), the Secretary shall complete a programmatic 
environmental impact statement that analyzes potential leasing for 
commercial development of oil shale resources on public land.
    (d) Analysis of Potential Leasing Program.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report (including recommendations) analyzing a potential 
        leasing program for the commercial development of oil shale on 
        public land.
            (2) Inclusions.--The report under paragraph (1) shall 
        include--
                    (A) an analysis of technologies and research and 
                development programs for the production of oil and 
                other materials from oil shale and tar sands in 
                existence on the date on which the report is prepared;
                    (B) an analysis of--
                            (i) whether leases under the program should 
                        be issued on a competitive basis;
                            (ii) the term of the leases;
                            (iii) the maximum size of the leases;
                            (iv) the use and distribution of bonus bid 
                        lease payments;
                            (v) the royalty rate to be applied, 
                        including whether a sliding scale royalty rate 
                        should be used;
                            (vi) whether an opportunity should be 
                        provided to convert research and development 
                        leases into leases for commercial development, 
                        including the terms and conditions that should 
                        apply to the conversion;
                            (vii) the maximum number of leases and 
                        maximum acreage to be leased under the leasing 
                        program to an individual; and
                            (viii) any infrastructure required to 
                        support oil shale development in industry and 
                        communities;
                    (C) an identification of events that should serve 
                as a precursor to commercial leasing, including 
                development of environmentally and commercially viable 
                technologies, and the completion of land use planning 
                and environmental reviews; and
                    (D) an analysis, developed in conjunction with the 
                appropriate State water resource agencies, of the 
                demand for, and availability of, water with respect to 
                the development of oil shale and tar sands.
            (3) Public participation.--In preparing the report under 
        this subsection, the Secretary shall provide notice to, and 
        solicit comment from--
                    (A) the public;
                    (B) representatives of local governments;
                    (C) representatives of industry; and
                    (D) other interested parties.
            (4) Participation by certain states.--In preparing the 
        report under this subsection, the Secretary shall--
                    (A) provide notice to, and solicit comment from, 
                the Governors of the States of Colorado, Utah, and 
                Wyoming; and
                    (B) incorporate into the report submitted to 
                Congress under paragraph (1) any response of the 
                Secretary to those comments.
    (e) Oil Shale and Tar Sands Task Force.--
            (1) Establishment.--The Secretary of Energy, in cooperation 
        with the Secretary of the Interior, shall establish an Oil 
        Shale and Tar Sands Task Force to develop a program to 
        coordinate and accelerate the commercial development of oil 
        shale and tar sands in an integrated manner.
            (2) Composition.--The Task Force shall be composed of--
                    (A) the Secretary of Energy (or the designee of the 
                Secretary of Energy);
                    (B) the Secretary of Defense (or the designee of 
                the Secretary of Defense);
                    (C) the Secretary of the Interior (or the designee 
                of the Secretary of the Interior);
                    (D) the Governors of the affected States; and
                    (E) representatives of local governments in 
                affected areas.
            (3) Development of a 5-year plan.--
                    (A) In general.--The Task Force shall formulate a 
                5-year plan to promote the development of oil shale and 
                tar sands.
                    (B) Components.--In formulating the plan, the Task 
                Force shall--
                            (i) identify public actions that are 
                        required to stimulate prudent development of 
                        oil shale and tar sands;
                            (ii) analyze the costs and benefits of 
                        those actions;
                            (iii) make recommendations concerning 
                        specific actions that should be taken to 
                        stimulate prudent development of oil shale and 
                        tar sands, including economic, investment, tax, 
                        technology, research and development, 
                        infrastructure, environmental, education, and 
                        socio-economic actions;
                            (iv) consult with representatives of 
                        industry and other stakeholders;
                            (v) provide notice and opportunity for 
                        public comment on the plan;
                            (vi) identify oil shale and tar sands 
                        technologies that--
                                    (I) are ready for pilot plant and 
                                semiworks development; and
                                    (II) have a high probability of 
                                leading to advanced technology for 
                                first- or second-generation commercial 
                                production; and
                            (vii) assess the availability of water from 
                        the Green River Formation to meet the potential 
                        needs of oil shale and tar sands development.
            (4) National program office.--The Task Force shall analyze 
        and make recommendations regarding the need for a national 
        program office to administer the plan.
            (5) Partnership.--The Task Force shall recommend whether to 
        initiate a partnership with Alberta, Canada, for purposes of 
        sharing information relating to the development and production 
        of oil from tar sands.
            (6) Reports.--
                    (A) Initial report.--Not later than 180 days after 
                the date of enactment of this Act, the Task Force shall 
                submit to the President and Congress a report that 
                describes the analysis and recommendations of the Task 
                Force and contains the 5-year plan.
                    (B) Subsequent reports.--The Secretary of Energy 
                shall provide an annual report describing the progress 
                in carrying out the plan for each of the 5 years 
                following submission of the report provided for in 
                subparagraph (A).
    (f) Mineral Leasing Act Amendments.--Section 21(a) of the Mineral 
Leasing Act (30 U.S.C. 241(a)) is amended--
            (1) by designating the first, second, and third sentences 
        as paragraphs (1), (2), and (3), respectively; and
            (2) in paragraph (3) (as designated by paragraph (1))--
                    (A) by striking ``rate of 50 cents per acre'' and 
                inserting ``rate of $2.00 per acre''; and
                    (B) in the last proviso--
                            (i) by striking ``That not more than one 
                        lease shall be granted under this section to 
                        any'' and inserting ``That no''; and
                            (ii) by striking ``except that with respect 
                        to leases for'' and inserting ``shall acquire 
                        or hold more than 25,000 acres of oil shale 
                        leases in the United States. For''.
    (g) Cost-Shared Demonstration Technologies.--
            (1) Identification.--The Secretary of Energy shall identify 
        technologies for the development of oil shale and tar sands 
        that--
                    (A) are ready for demonstration at a commercially-
                representative scale; and
                    (B) have a high probability of leading to 
                commercial production.
            (2) Assistance.--For each technology identified under 
        paragraph (1), the Secretary of Energy may provide--
                    (A) technical assistance;
                    (B) assistance in meeting environmental and 
                regulatory requirements; and
                    (C) cost-sharing assistance in accordance with 
                section 1002.
    (h) Technical Assistance.--
            (1) In general.--The Secretary of Energy may provide 
        technical assistance for the purpose of overcoming technical 
        challenges to the development of oil shale and tar sands 
        technologies for application in the United States.
            (2) Administration.--The Secretary of Energy may provide 
        technical assistance under this section on a cost-shared basis 
        in accordance with section 1002.
    (i) National Oil Shale Assessment.--
            (1) Assessment.--
                    (A) In general.--The Secretary shall carry out a 
                national assessment of oil shale resources for the 
                purposes of evaluating and mapping oil shale deposits, 
                in the geographic areas described in subparagraph (B).
                    (B) Geographic areas.--The geographic areas 
                referred to in subparagraph (A), listed in the order in 
                which the Secretary shall assign priority, are--
                            (i) the Green River Region of the States of 
                        Colorado, Utah, and Wyoming;
                            (ii) the Devonian oil shales of the eastern 
                        United States; and
                            (iii) any remaining area in the central and 
                        western United States (including the State of 
                        Alaska) that contains oil shale, as determined 
                        by the Secretary.
            (2) Use of state surveys and universities.--In carrying out 
        the assessment under paragraph (1), the Secretary may request 
        assistance from any State-administered geological survey or 
        university.
    (j) State Water Rights.--Nothing in this section preempts or 
affects any State water law or interstate compact relating to water.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 347. FINGER LAKES WITHDRAWAL.

    All Federal land within the boundary of Finger Lakes National 
Forest in the State of New York is withdrawn from--
            (1) all forms of entry, appropriation, or disposal under 
        the public land laws; and
            (2) disposition under all laws relating to oil and gas 
        leasing.

SEC. 348. REINSTATEMENT OF LEASES.

    Notwithstanding section 31(d)(2)(B) of the Mineral Leasing Act (30 
U.S.C. 188(d)(2)(B)), the Secretary may reinstate any oil and gas lease 
issued under that Act that was terminated for failure of a lessee to 
pay the full amount of rental on or before the anniversary date of the 
lease, during the period beginning on September 1, 2001, and ending on 
June 30, 2004, if--
            (1) not later than 120 days after the date of enactment of 
        this Act, the lessee--
                    (A) files a petition for reinstatement of the 
                lease;
                    (B) complies with the conditions of section 31(e) 
                of the Mineral Leasing Act (30 U.S.C. 188(e)); and
                    (C) certifies that the lessee did not receive a 
                notice of termination by the date that was 13 months 
                before the date of termination; and
            (2) the land is available for leasing.

                      Subtitle D--Coastal Programs

SEC. 371. COASTAL IMPACT ASSISTANCE PROGRAM.

    Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a) is amended to read as follows:

``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Coastal political subdivision.--The term `coastal 
        political subdivision' means a political subdivision of a 
        coastal State any part of which political subdivision is--
                    ``(A) within the coastal zone (as defined in 
                section 304 of the Coastal Zone Management Act of 1972 
                (16 U.S.C. 1453)) of the coastal State as of the date 
                of enactment of the Energy Policy Act of 2005; and
                    ``(B) not more than 200 nautical miles from the 
                geographic center of any leased tract.
            ``(2) Coastal population.--The term `coastal population' 
        means the population, as determined by the most recent official 
        data of the Census Bureau, of each political subdivision any 
        part of which lies within the designated coastal boundary of a 
        State (as defined in a State's coastal zone management program 
        under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
        et seq.)).
            ``(3) Coastal state.--The term `coastal State' has the 
        meaning given the term in section 304 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1453).
            ``(4) Coastline.--The term `coastline' has the meaning 
        given the term `coast line' in section 2 of the Submerged Lands 
        Act (43 U.S.C. 1301).
            ``(5) Distance.--The term `distance' means the minimum 
        great circle distance, measured in statute miles.
            ``(6) Leased tract.--The term `leased tract' means a tract 
        that is subject to a lease under section 6 or 8 for the purpose 
        of drilling for, developing, and producing oil or natural gas 
        resources.
            ``(7) Leasing moratoria.--The term `leasing moratoria' 
        means the prohibitions on preleasing, leasing, and related 
        activities on any geographic area of the outer Continental 
        Shelf as contained in sections 107 through 109 of division E of 
        the Consolidated Appropriations Act, 2005 (Public Law 108-447; 
        118 Stat. 3063).
            ``(8) Political subdivision.--The term `political 
        subdivision' means the local political jurisdiction immediately 
        below the level of State government, including counties, 
        parishes, and boroughs.
            ``(9) Producing state.--
                    ``(A) In general.--The term `producing State' means 
                a coastal State that has a coastal seaward boundary 
                within 200 nautical miles of the geographic center of a 
                leased tract within any area of the outer Continental 
                Shelf.
                    ``(B) Exclusion.--The term `producing State' does 
                not include a producing State, a majority of the 
                coastline of which is subject to leasing moratoria, 
                unless production was occurring on January 1, 2005, 
                from a lease within 10 nautical miles of the coastline 
                of that State.
            ``(10) Qualified outer continental shelf revenues.--
                    ``(A) In general.--The term `qualified Outer 
                Continental Shelf revenues' means all amounts received 
                by the United States from each leased tract or portion 
                of a leased tract--
                            ``(i) lying--
                                    ``(I) seaward of the zone covered 
                                by section 8(g); or
                                    ``(II) within that zone, but to 
                                which section 8(g) does not apply; and
                            ``(ii) the geographic center of which lies 
                        within a distance of 200 nautical miles from 
                        any part of the coastline of any coastal State.
                    ``(B) Inclusions.--The term `qualified Outer 
                Continental Shelf revenues' includes bonus bids, rents, 
                royalties (including payments for royalty taken in kind 
                and sold), net profit share payments, and related late-
                payment interest from natural gas and oil leases issued 
                under this Act.
                    ``(C) Exclusion.--The term `qualified Outer 
                Continental Shelf revenues' does not include any 
                revenues from a leased tract or portion of a leased 
                tract that is located in a geographic area subject to a 
                leasing moratorium on January 1, 2005, unless the lease 
                was in production on January 1, 2005.
    ``(b) Payments to Producing States and Coastal Political 
Subdivisions.--
            ``(1) In general.--The Secretary shall, without further 
        appropriation, disburse to producing States and coastal 
        political subdivisions in accordance with this section 
        $250,000,000 for each of fiscal years 2007 through 2010.
            ``(2) Disbursement.--In each fiscal year, the Secretary 
        shall disburse to each producing State for which the Secretary 
        has approved a plan under subsection (c), and to coastal 
        political subdivisions under paragraph (4), such funds as are 
        allocated to the producing State or coastal political 
        subdivision, respectively, under this section for the fiscal 
        year.
            ``(3) Allocation among producing states.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C) and subject to subparagraph (D), the 
                amounts available under paragraph (1) shall be 
                allocated to each producing State based on the ratio 
                that--
                            ``(i) the amount of qualified outer 
                        Continental Shelf revenues generated off the 
                        coastline of the producing State; bears to
                            ``(ii) the amount of qualified outer 
                        Continental Shelf revenues generated off the 
                        coastline of all producing States.
                    ``(B) Amount of outer continental shelf revenues.--
                For purposes of subparagraph (A)--
                            ``(i) the amount of qualified outer 
                        Continental Shelf revenues for each of fiscal 
                        years 2007 and 2008 shall be determined using 
                        qualified outer Continental Shelf revenues 
                        received for fiscal year 2006; and
                            ``(ii) the amount of qualified outer 
                        Continental Shelf revenues for each of fiscal 
                        years 2009 and 2010 shall be determined using 
                        qualified outer Continental Shelf revenues 
                        received for fiscal year 2008.
                    ``(C) Multiple producing states.--In a case in 
                which more than 1 producing State is located within 200 
                nautical miles of any portion of a leased tract, the 
                amount allocated to each producing State for the leased 
                tract shall be inversely proportional to the distance 
                between--
                            ``(i) the nearest point on the coastline of 
                        the producing State; and
                            ``(ii) the geographic center of the leased 
                        tract.
                    ``(D) Minimum allocation.--The amount allocated to 
                a producing State under subparagraph (A) shall be at 
                least 1 percent of the amounts available under 
                paragraph (1).
            ``(4) Payments to coastal political subdivisions.--
                    ``(A) In general.--The Secretary shall pay 35 
                percent of the allocable share of each producing State, 
                as determined under paragraph (3) to the coastal 
                political subdivisions in the producing State.
                    ``(B) Formula.--Of the amount paid by the Secretary 
                to coastal political subdivisions under subparagraph 
                (A)--
                            ``(i) 25 percent shall be allocated to each 
                        coastal political subdivision in the proportion 
                        that--
                                    ``(I) the coastal population of the 
                                coastal political subdivision; bears to
                                    ``(II) the coastal population of 
                                all coastal political subdivisions in 
                                the producing State;
                            ``(ii) 25 percent shall be allocated to 
                        each coastal political subdivision in the 
                        proportion that--
                                    ``(I) the number of miles of 
                                coastline of the coastal political 
                                subdivision; bears to
                                    ``(II) the number of miles of 
                                coastline of all coastal political 
                                subdivisions in the producing State; 
                                and
                            ``(iii) 50 percent shall be allocated in 
                        amounts that are inversely proportional to the 
                        respective distances between the points in each 
                        coastal political subdivision that are closest 
                        to the geographic center of each leased tract, 
                        as determined by the Secretary.
                    ``(C) Exception for the state of louisiana.--For 
                the purposes of subparagraph (B)(ii), the coastline for 
                coastal political subdivisions in the State of 
                Louisiana without a coastline shall be considered to be 
                \1/3\ the average length of the coastline of all 
                coastal political subdivisions with a coastline in the 
                State of Louisiana.
                    ``(D) Exception for the state of alaska.--For the 
                purposes of carrying out subparagraph (B)(iii) in the 
                State of Alaska, the amounts allocated shall be divided 
                equally among the 2 coastal political subdivisions that 
                are closest to the geographic center of a leased tract.
                    ``(E) Exclusion of certain leased tracts.--For 
                purposes of subparagraph (B)(iii), a leased tract or 
                portion of a leased tract shall be excluded if the 
                tract or portion of a leased tract is located in a 
                geographic area subject to a leasing moratorium on 
                January 1, 2005, unless the lease was in production on 
                that date.
            ``(6) No approved plan.--
                    ``(A) In general.--Subject to subparagraph (B) and 
                except as provided in subparagraph (C), in a case in 
                which any amount allocated to a producing State or 
                coastal political subdivision under paragraph (4) or 
                (5) is not disbursed because the producing State does 
                not have in effect a plan that has been approved by the 
                Secretary under subsection (c), the Secretary shall 
                allocate the undisbursed amount equally among all other 
                producing States.
                    ``(B) Retention of allocation.--The Secretary shall 
                hold in escrow an undisbursed amount described in 
                subparagraph (A) until such date as the final appeal 
                regarding the disapproval of a plan submitted under 
                subsection (c) is decided.
                    ``(C) Waiver.--The Secretary may waive subparagraph 
                (A) with respect to an allocated share of a producing 
                State and hold the allocable share in escrow if the 
                Secretary determines that the producing State is making 
                a good faith effort to develop and submit, or update, a 
                plan in accordance with subsection (c).
    ``(c) Coastal Impact Assistance Plan.--
            ``(1) Submission of state plans.--
                    ``(A) In general.--Not later than July 1, 2008, the 
                Governor of a producing State shall submit to the 
                Secretary a coastal impact assistance plan.
                    ``(B) Public participation.--In carrying out 
                subparagraph (A), the Governor shall solicit local 
                input and provide for public participation in the 
                development of the plan.
            ``(2) Approval.--
                    ``(A) In general.--The Secretary shall approve a 
                plan of a producing State submitted under paragraph (1) 
                before disbursing any amount to the producing State, or 
                to a coastal political subdivision located in the 
                producing State, under this section.
                    ``(B) Components.--The Secretary shall approve a 
                plan submitted under paragraph (1) if--
                            ``(i) the Secretary determines that the 
                        plan is consistent with the uses described in 
                        subsection (d); and
                            ``(ii) the plan contains--
                                    ``(I) the name of the State agency 
                                that will have the authority to 
                                represent and act on behalf of the 
                                producing State in dealing with the 
                                Secretary for purposes of this section;
                                    ``(II) a program for the 
                                implementation of the plan that 
                                describes how the amounts provided 
                                under this section to the producing 
                                State will be used;
                                    ``(III) for each coastal political 
                                subdivision that receives an amount 
                                under this section--
                                            ``(aa) the name of a 
                                        contact person; and
                                            ``(bb) a description of how 
                                        the coastal political 
                                        subdivision will use amounts 
                                        provided under this section;
                                    ``(IV) a certification by the 
                                Governor that ample opportunity has 
                                been provided for public participation 
                                in the development and revision of the 
                                plan; and
                                    ``(V) a description of measures 
                                that will be taken to determine the 
                                availability of assistance from other 
                                relevant Federal resources and 
                                programs.
            ``(3) Amendment.--Any amendment to a plan submitted under 
        paragraph (1) shall be--
                    ``(A) developed in accordance with this subsection; 
                and
                    ``(B) submitted to the Secretary for approval or 
                disapproval under paragraph (4).
            ``(4) Procedure.--Not later than 90 days after the date on 
        which a plan or amendment to a plan is submitted under 
        paragraph (1) or (3), the Secretary shall approve or disapprove 
        the plan or amendment.
    ``(d) Authorized Uses.--
            ``(1) In general.--A producing State or coastal political 
        subdivision shall use all amounts received under this section, 
        including any amount deposited in a trust fund that is 
        administered by the State or coastal political subdivision and 
        dedicated to uses consistent with this section, in accordance 
        with all applicable Federal and State law, only for 1 or more 
        of the following purposes:
                    ``(A) Projects and activities for the conservation, 
                protection, or restoration of coastal areas, including 
                wetland.
                    ``(B) Mitigation of damage to fish, wildlife, or 
                natural resources.
                    ``(C) Planning assistance and the administrative 
                costs of complying with this section.
                    ``(D) Implementation of a federally-approved 
                marine, coastal, or comprehensive conservation 
                management plan.
                    ``(E) Mitigation of the impact of outer Continental 
                Shelf activities through funding of onshore 
                infrastructure projects and public service needs.
            ``(2) Compliance with authorized uses.--If the Secretary 
        determines that any expenditure made by a producing State or 
        coastal political subdivision is not consistent with this 
        subsection, the Secretary shall not disburse any additional 
        amount under this section to the producing State or the coastal 
        political subdivision until such time as all amounts obligated 
        for unauthorized uses have been repaid or reobligated for 
        authorized uses.
            ``(3) Limitation.--Not more than 23 percent of amounts 
        received by a producing State or coastal political subdivision 
        for any 1 fiscal year shall be used for the purposes described 
        subparagraphs (C) and (E) of paragraph (1).''.

                        Subtitle E--Natural Gas

SEC. 381. EXPORTATION OR IMPORTATION OF NATURAL GAS.

    Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
adding at the end the following:
    ``(d) Except as specifically provided in this part, nothing in this 
Act affects the rights of States under--
            ``(1) the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1451 et seq.)
            ``(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
            ``(3) the Federal Water Pollution Control Act (33 U.S.C. 
        1251 et seq.).
    ``(e)(1) No facilities located onshore or in State waters for the 
import of natural gas from a foreign country, or the export of natural 
gas to a foreign country, shall be sited, constructed, expanded, or 
operated, unless the Commission has authorized such acts or operations.
    ``(2) The Commission shall have the exclusive authority to approve 
or deny an application for the siting, construction, expansion, or 
operation of facilities located onshore or in State waters for the 
import of natural gas from a foreign county or the export of natural 
gas to a foreign country.
    ``(3)(A) Except as provided in subparagraph (B), the Commission may 
approve an application described in paragraph (2), in whole or part, 
with such modifications and upon such terms and conditions as the 
Commission finds appropriate.
    ``(B) The Commission shall not--
            ``(i) deny an application solely on the basis that the 
        applicant proposes to use the liquefied natural gas import 
        facility exclusively or partially for gas that the applicant or 
        an affiliate of the applicant will supply to the facility; or
            ``(ii) condition an order on--
                    ``(I) a requirement that the liquefied natural gas 
                import facility offer service to customers other than 
                the applicant, or any affiliate of the applicant, 
                securing the order;
                    ``(II) any regulation of the rates, charges, terms, 
                or conditions of service of the liquefied natural gas 
                import facility; or
                    ``(III) a requirement to file with the Commission 
                schedules or contracts related to the rates, charges, 
                terms, or conditions of service of the liquefied 
                natural gas import facility.
    ``(4) An order issued for a liquefied natural gas import facility 
that also offers service to customers on an open access basis shall not 
result in subsidization of expansion capacity by existing customers, 
degradation of service to existing customers, or undue discrimination 
against existing customers as to their terms or conditions of service 
at the facility, as all of those terms are defined by the 
Commission.''.

SEC. 382. NEW NATURAL GAS STORAGE FACILITIES.

    Section 4 of the Natural Gas Act (15 U.S.C. 717c) is amended by 
adding at the end the following:
    ``(f)(1) In exercising its authority under this Act or the Natural 
Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may 
authorize a natural gas company (or any person that will be a natural 
gas company on completion of any proposed construction) to provide 
storage and storage-related services at market-based rates for new 
storage capacity placed in service after the date of enactment of the 
Energy Policy Act of 2005, notwithstanding the fact that the company is 
unable to demonstrate that the company lacks market power, if the 
Commission determines that--
            ``(A) market-based rates are in the public interest and 
        necessary to encourage the construction of storage capacity in 
        areas needing storage services; and
            ``(B) customers are adequately protected.
    ``(2) The Commission shall ensure that reasonable terms and 
conditions are in place to protect consumers.
    ``(3) If the Commission authorizes a natural gas company to charge 
market-based rates under this subsection, the Commission shall review 
periodically (but not more frequently than triennially) whether the 
market-based rate is just, reasonable, and not unduly discriminatory or 
preferential.''.

SEC. 383. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURES.

    Section 15 of the Natural Gas Act (15 U.S.C. 717n) is amended--
            (1) by striking the section heading and inserting the 
        following:

        ``process coordination; hearings; rules of procedure'';

            (2) by redesignating subsections (a) and (b) as subsections 
        (e) and (f), respectively;
            (3) by striking ``Sec. 15.'' and inserting the following:
    ``Sec. 15. (a) In this section, the term `Federal authorization'--
            ``(1) means any authorization required under Federal law 
        with respect to an application for authorization under section 
        3 or a certificate of public convenience and necessity under 
        section 7; and
            ``(2) includes any permits, special use authorizations, 
        certifications, opinions, or other approvals as may be required 
        under Federal law with respect to an application for 
        authorization under section 3 or a certificate of public 
        convenience and necessity under section 7.
    ``(b)(1) With respect to an application for Federal authorization, 
the Commission shall, unless the Commission orders otherwise, be the 
lead agency for purposes of complying with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(2) As lead agency, the Commission, in consultation with affected 
agencies, shall prepare a single environmental review document, which 
shall be used as a basis for all decisions under Federal law on--
            ``(A) an application for authorization under section 3; or
            ``(B) a certificate of public convenience and necessity 
        under section 7.
    ``(c)(1) The Commission shall, in consultation with agencies 
responsible for Federal authorizations, and with due consideration of 
recommendations by the agencies, establish a schedule for all Federal 
authorizations required to be completed before an application under 
section 3 or 7 may be approved.
    ``(2) In establishing a schedule, the Commission shall comply with 
applicable schedules established by Federal law.
    ``(3) All Federal and State agencies with jurisdiction over natural 
gas infrastructure shall seek to coordinate their proceedings within 
the timeframes established by the Commission with respect to an 
application for authorization under section 3 or a certificate of 
public convenience and necessity under section 7.
    ``(d)(1) In a case in which an administrative agency or officer has 
failed to act by the deadline established by the Commission under this 
section for deciding whether to issue the authorization, the applicant 
or any State in which the facility would be located may file an appeal 
with the President, who shall, in consultation with the affected 
agency, take action on the pending application.
    ``(2) Based on the overall record and in consultation with the 
affected agency, the President may--
            ``(A) issue the necessary authorization with any 
        appropriate conditions; or
            ``(B) deny the application.
    ``(3) Not later than 90 days after the filing of an appeal, the 
President shall issue a decision as to that appeal.
    ``(4) In making a decision under this subsection, the President 
shall comply with applicable requirements of Federal law, including--
            ``(A) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.)
            ``(B) the Federal Water Pollution Control Act (33 U.S.C. 
        1251 et seq.);
            ``(C) the National Forest Management Act of 1976 (16 U.S.C. 
        472a et seq.);
            ``(D) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.);
            ``(E) the Federal Land Policy and Management Act of 1976 
        (43 U.S.C. 1701 et seq.);
            ``(F) the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1451 et seq.); and
            ``(G) the Clean Air Act (42 U.S.C. 7401 et seq.).''.

SEC. 384. PENALTIES.

    (a) Criminal Penalties.--
            (1) Natural gas act.--Section 21 of the Natural Gas Act (15 
        U.S.C. 717t) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$1,000,000''; and
                            (ii) by striking ``two years'' and 
                        inserting ``5 years''; and
                    (B) in subsection (b), by striking ``$500'' and 
                inserting ``$50,000''.
            (2) Natural gas policy act of 1978.--Section 504(c) of the 
        Natural Gas Policy Act of 1978 (15 U.S.C. 3414(c)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``$5,000'' and inserting ``$1,000,000'';
                            (ii) in subparagraph (B), by striking ``two 
                        years'' and inserting ``5 years''; and
                    (B) in paragraph (2), by striking ``$500 for each 
                violation'' and inserting ``$50,000 for each day on 
                which the offense occurs''.
    (b) Civil Penalties.--
            (1) Natural gas act.--The Natural Gas Act (15 U.S.C. 717 et 
        seq.) is amended--
                    (A) by redesignating sections 22 through 24 as 
                sections 24 through 26, respectively; and
                    (B) by inserting after section 21 (15 U.S.C. 717t) 
                the following:

                       ``civil penalty authority

    ``Sec. 22. (a) Any person that violates this Act, or any rule, 
regulation, restriction, condition, or order made or imposed by the 
Commission under authority of this Act, shall be subject to a civil 
penalty of not more than $1,000,000 per day per violation for as long 
as the violation continues.
    ``(b) The penalty shall be assessed by the Commission after notice 
and opportunity for public hearing.
    ``(c) In determining the amount of a proposed penalty, the 
Commission shall take into consideration the nature and seriousness of 
the violation and the efforts to remedy the violation.''.
            (2) Natural gas policy act of 1978.--Section 504(b)(6)(A) 
        of the Natural Gas Policy Act of 1978 (15 U.S.C. 3414(b)(6)(A)) 
        is amended--
                    (A) in clause (i), by striking ``$5,000'' and 
                inserting ``$1,000,000''; and
                    (B) in clause (ii), by striking ``$25,000'' and 
                inserting ``$1,000,000''.

SEC. 385. MARKET MANIPULATION.

    The Natural Gas Act is amended by inserting after section 4 (15 
U.S.C. 717c) the following:

                  ``prohibition on market manipulation

    ``Sec. 4A. It shall be unlawful for any entity, directly or 
indirectly, to use or employ, in connection with the purchase or sale 
of natural gas or the purchase or sale of transportation services 
subject to the jurisdiction of the Commission, any manipulative or 
deceptive device or contrivance (as those terms are used in section 
10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) in 
contravention of such rules and regulations as the Commission may 
prescribe as necessary in the public interest or for the protection of 
natural gas ratepayers.''

SEC. 386. NATURAL GAS MARKET TRANSPARENCY RULES.

    The Natural Gas Act (15 U.S.C. 717 et seq.) (as amended by section 
385(b)(1)) is amended by inserting after section 22 the following:

                ``natural gas market transparency rules

    ``Sec. 23. (a)(1) The Commission may issue such rules as the 
Commission considers to be appropriate to establish an electronic 
information system to provide the Commission and the public with access 
to such information as is necessary to facilitate price transparency 
and participation in markets for the sale or transportation of natural 
gas in interstate commerce.
    ``(2) The system under paragraph (1) shall provide, on a timely 
basis, information about the availability and prices of natural gas 
sold at wholesale and in interstate commerce to the Commission, State 
commissions, buyers and sellers of wholesale natural gas, and the 
public.
    ``(3) The Commission may--
            ``(A) obtain information described in paragraph (2) from 
        any market participant; and
            ``(B) rely on an entity other than the Commission to 
        receive and make public the information.
    ``(b)(1) Rules described in subsection (a)(1), if adopted, shall 
exempt from disclosure information the Commission determines would, if 
disclosed, be detrimental to the operation of an effective market or 
jeopardize system security.
    ``(2) In determining the information to be made available under 
this section and time to make the information available, the Commission 
shall seek to ensure that consumers and competitive markets are 
protected from the adverse effects of potential collusion or other 
anticompetitive behaviors that can be facilitated by untimely public 
disclosure of transaction-specific information.
    ``(c)(1) This section shall not affect the exclusive jurisdiction 
of the Commodity Futures Trading Commission with respect to accounts, 
agreements, contracts, or transactions in commodities under the 
Commodity Exchange Act (7 U.S.C. 1 et seq.).
    ``(2) Any request by the Commission for information to a designated 
contract market, registered derivatives transaction execution facility, 
board of trade, exchange, or market involving accounts, agreements, 
contracts, or transactions in commodities (including natural gas, 
electricity and other energy commodities) within the exclusive 
jurisdiction of the Commodity Futures Trading Commission shall be 
directed to the Commodity Futures Trading Commission, which shall 
cooperate in responding to any information request by the Commission.
    ``(d) In carrying out this section, the Commission shall not--
            ``(1) compete with, or displace from the market place, any 
        price publisher (including any electronic price publisher);
            ``(2) regulate price publishers (including any electronic 
        price publisher); or
            ``(3) impose any requirements on the publication of 
        information by price publishers (including any electronic price 
        publisher).
    ``(e)(1) The Commission shall not condition access to interstate 
pipeline transportation on the reporting requirements of this section.
    ``(2) The Commission shall not require natural gas producers, 
processors, or users who have a de minimis market presence to comply 
with the reporting requirements of this section.
    ``(f)(1) Except as provided in paragraph (2), no person shall be 
subject to any civil penalty under this section with respect to any 
violation occurring more than 3 years before the date on which the 
person is provided notice of the proposed penalty under section 22(b).
    ``(2) Paragraph (1) shall not apply in any case in which the 
Commission finds that a seller that has entered into a contract for the 
transportation or sale of natural gas subject to the jurisdiction of 
the Commission has engaged in fraudulent market manipulation activities 
materially affecting the contract in violation of section 4A.''.

SEC. 387. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION 
              UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.

    (a) In General.--Section 319 of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1465) is amended to read as follows:

                       ``appeals to the secretary

    ``Sec. 319. (a) Notice.--Not later than 30 days after the date of 
the filing of an appeal to the Secretary of a consistency determination 
under section 307, the Secretary shall publish an initial notice in the 
Federal Register.
    ``(b) Closure of Record.--
            ``(1) In general.--Not later than the end of the 270-day 
        period beginning on the date of publication of an initial 
        notice under subsection (a), except as provided in paragraph 
        (3), the Secretary shall immediately close the decision record 
        and receive no more filings on the appeal.
            ``(2) Notice.--After closing the administrative record, the 
        Secretary shall immediately publish a notice in the Federal 
        Register that the administrative record has been closed.
            ``(3) Exception.--
                    ``(A) In general.--Subject to subparagraph (B), 
                during the 270-day period described in paragraph (1), 
                the Secretary may stay the closing of the decision 
                record--
                            ``(i) for a specific period mutually agreed 
                        to in writing by the appellant and the State 
                        agency; or
                            ``(ii) as the Secretary determines 
                        necessary to receive, on an expedited basis--
                                    ``(I) any supplemental information 
                                specifically requested by the Secretary 
                                to complete a consistency review under 
                                this Act; or
                                    ``(II) any clarifying information 
                                submitted by a party to the proceeding 
                                related to information already existing 
                                in the sole record.
                    ``(B) Applicability.--The Secretary may only stay 
                the 270-day period described in paragraph (1) for a 
                period not to exceed 60 days.
    ``(c) Deadline for Decision.--
            ``(1) In general.--Not later than 90 days after the date of 
        publication of a Federal Register notice stating when the 
        decision record for an appeal has been closed, the Secretary 
        shall issue a decision or publish a notice in the Federal 
        Register explaining why a decision cannot be issued at that 
        time.
            ``(2) Subsequent decision.--Not later than 45 days after 
        the date of publication of a Federal Register notice explaining 
        why a decision cannot be issued within the 90-day period, the 
        Secretary shall issue a decision.''.

SEC. 388. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in cooperation and consultation with the 
Secretary of Transportation, the Secretary of Homeland Security, the 
Federal Energy Regulatory Commission, and the Governors of the Coastal 
States, shall convene not less than 3 forums on liquefied natural gas.
    (b) Requirements.--The forums shall--
            (1) be located in areas where liquefied natural gas 
        facilities are under consideration;
            (2) be designed to foster dialogue among Federal officials, 
        State and local officials, the general public, independent 
        experts, and industry representatives; and
            (3) at a minimum, provide an opportunity for public 
        education and dialogue on--
                    (A) the role of liquefied natural gas in meeting 
                current and future United States energy supply 
                requirements and demand, in the context of the full 
                range of energy supply options;
                    (B) the Federal and State siting and permitting 
                processes;
                    (C) the potential risks and rewards associated with 
                importing liquefied natural gas;
                    (D) the Federal safety and environmental 
                requirements (including regulations) applicable to 
                liquefied natural gas;
                    (E) prevention, mitigation, and response strategies 
                for liquefied natural gas hazards; and
                    (F) additional issues as appropriate.
    (c) Purpose.--The purpose of the forums shall be to identify and 
develop best practices for addressing the issues and challenges 
associated with liquefied natural gas imports, building on existing 
cooperative efforts.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 389. PROHIBITION OF TRADING AND SERVING BY CERTAIN PERSONS.

    Section 20 of the Natural Gas Act (15 U.S.C. 717s) is amended by 
adding at the end the following:
    ``(d) In any proceedings under subsection (a), the court may 
prohibit, conditionally or unconditionally, and permanently or for such 
period of time as the court determines, any person who is engaged or 
has engaged in practices constituting a violation of section 4A 
(including related rules and regulations) from--
            ``(1) acting as an officer or director of a natural gas 
        company; or
            ``(2) engaging in the business of--
                    ``(A) the purchasing or selling of natural gas; or
                    ``(B) the purchasing or selling of transmission 
                services subject to the jurisdiction of the 
                Commission.''.

             Subtitle F--Federal Coalbed Methane Regulation

SEC. 391. FEDERAL COALBED METHANE REGULATION.

    Any State that, as of the date of enactment of this Act, is 
included on the list of affected States established under section 
1339(b) of the Energy Policy Act of 1992 (42 U.S.C. 13368(b)) shall be 
removed from the list if, not later than 3 years after the date of 
enactment of this Act, the State takes, or prior to that date of 
enactment, has taken, any of the actions required for removal from the 
list under that section.

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--There is authorized to be 
appropriated to the Secretary to carry out the activities authorized by 
this subtitle $200,000,000 for each of fiscal years 2006 through 2012, 
to remain available until expended.
    (b) Report.--Not later than March 31, 2006, the Secretary shall 
submit to Congress a report that includes a 10-year plan containing--
            (1) a detailed assessment of whether the aggregate 
        assistance levels provided under subsection (a) are the 
        appropriate assistance levels for the clean coal power 
        initiative;
            (2) a detailed description of how proposals for assistance 
        under the clean coal power initiative will be solicited and 
        evaluated, including a list of all activities expected to be 
        undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued under the clean 
        coal power initiative; and
            (4) a detailed description of how the clean coal power 
        initiative will avoid problems enumerated in Government 
        Accountability Office reports on the Clean Coal Technology 
        Program of the Department, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.

SEC. 402. PROJECT CRITERIA.

    (a) In General.--To be eligible to receive assistance under this 
subtitle, a project shall advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that are in commercial service or have been demonstrated 
on a scale that the Secretary determines is sufficient to demonstrate 
that commercial service is viable as of the date of enactment of this 
Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification projects.--
                    (A) In General.--In allocating the funds made 
                available under section 401(a), the Secretary shall 
                ensure that at least 80 percent of the funds are used 
                only to fund projects on coal-based gasification 
                technologies, including--
                            (i) gasification combined cycle;
                            (ii) gasification fuel cells and turbine 
                        combined cycle;
                            (iii) gasification coproduction; and
                            (iv) hybrid gasification and combustion.
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The Secretary 
                                shall periodically set technical 
                                milestones specifying the emission and 
                                thermal efficiency levels that coal 
                                gasification projects under this 
                                subtitle shall be designed, and 
                                reasonably expected, to achieve.
                                    (II) Prescriptive milestones.--The 
                                technical milestones shall become more 
                                prescriptive during the period of the 
                                clean coal power initiative.
                            (ii) 2020 goals.--The Secretary shall 
                        establish the periodic milestones so as to 
                        achieve by the year 2020 coal gasification 
                        projects able--
                                    (I) to remove at least 99 percent 
                                of sulfur dioxide;
                                    (II) to emit not more than .05 lbs 
                                of NO<INF>x</INF> per million Btu;
                                    (III) to achieve at least 95 
                                percent reductions in mercury 
                                emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 50 percent for coal of 
                                        more than 9,000 Btu;
                                            (bb) 48 percent for coal of 
                                        7,000 to 9,000 Btu; and
                                            (cc) 46 percent for coal of 
                                        less than 7,000 Btu.
            (2) Other projects.--
                    (A) Allocation of funds.--The Secretary shall 
                ensure that up to 20 percent of the funds made 
                available under section 401(a) are used to fund 
                projects other than those described in paragraph (1).
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The Secretary 
                                shall periodically establish technical 
                                milestones specifying the emission and 
                                thermal efficiency levels that projects 
                                funded under this paragraph shall be 
                                designed, and reasonably expected, to 
                                achieve.
                                    (II) Prescriptive milestones.--The 
                                technical milestones shall become more 
                                prescriptive during the period of the 
                                clean coal power initiative.
                            (ii) 2020 goals.--The Secretary shall set 
                        the periodic milestones so as to achieve by the 
                        year 2020 projects able--
                                    (I) to remove at least 97 percent 
                                of sulfur dioxide;
                                    (II) to emit no more than .08 lbs 
                                of NO<INF>x</INF> per million Btu;
                                    (III) to achieve at least 90 
                                percent reductions in mercury 
                                emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 43 percent for coal of 
                                        more than 9,000 Btu;
                                            (bb) 41 percent for coal of 
                                        7,000 to 9,000 Btu; and
                                            (cc) 39 percent for coal of 
                                        less than 7,000 Btu.
            (3) Consultation.--Before setting the technical milestones 
        under paragraphs (1)(B) and (2)(B), the Secretary shall consult 
        with--
                    (A) the Administrator of the Environmental 
                Protection Agency; and
                    (B) interested entities, including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote coal or 
                        advanced coal technologies;
                            (iv) environmental organizations;
                            (v) organizations representing workers; and
                            (vi) organizations representing consumers.
            (4) Existing units.--In the case of projects at units in 
        existence on the date of enactment of this Act, in lieu of the 
        thermal efficiency requirements described in paragraphs 
        (1)(B)(ii)(IV) and (2)(B)(ii)(IV), the milestones shall be 
        designed to achieve an overall thermal design efficiency 
        improvement, compared to the efficiency of the unit as 
        operated, of not less than--
                    (A) 7 percent for coal of more than 9,000 Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                    (C) 4 percent for coal of less than 7,000 Btu.
            (5) Administration.--
                    (A) Elevation of site.--In evaluating project 
                proposals to achieve thermal efficiency levels 
                established under paragraphs (1)(B)(i) and (2)(B)(i) 
                and in determining progress towards thermal efficiency 
                milestones under paragraphs (1)(B)(ii)(IV), 
                (2)(B)(ii)(IV), and (4), the Secretary shall take into 
                account and make adjustments for the elevation of the 
                site at which a project is proposed to be constructed.
                    (B) Applicability of milestones.--The thermal 
                efficiency milestones under paragraphs (1)(B)(ii)(IV), 
                (2)(B)(ii)(IV), and (4) shall not apply to projects 
                that separate and capture at least 50 percent of the 
                potential emissions of carbon dioxide by a facility.
                    (C) Permitted uses.--In carrying out this section, 
                the Secretary shall give high priority to projects that 
                include, as part of the project--
                            (i) the separation or capture of carbon 
                        dioxide; or
                            (ii) the reduction of the demand for 
                        natural gas if deployed.
    (c) Financial Criteria.--The Secretary shall not provide financial 
assistance under this subtitle for a project unless the recipient 
documents to the satisfaction of the Secretary that--
            (1) the recipient is financially responsible;
            (2) the recipient will provide sufficient information to 
        the Secretary to enable the Secretary to ensure that the funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that, as determined by the Secretary--
            (1) meet the requirements of subsections (a), (b), and (c); 
        and
            (2) are likely--
                    (A) to achieve overall cost reductions in the use 
                of coal to generate useful forms of energy or chemical 
                feedstocks;
                    (B) to improve the competitiveness of coal among 
                various forms of energy in order to maintain a 
                diversity of fuel choices in the United States to meet 
                electricity generation requirements; and
                    (C) to demonstrate methods and equipment that are 
                applicable to 25 percent of the electricity generating 
                facilities, using various types of coal, that use coal 
                as the primary feedstock as of the date of enactment of 
                this Act.
    (e) Cost-Sharing.--In carrying out this subtitle, the Secretary 
shall require cost sharing in accordance with section 1002.
    (f) Scheduled Completion of Selected Projects.--
            (1) In general.--In selecting a project for financial 
        assistance under this section, the Secretary shall establish a 
        reasonable period of time during which the owner or operator of 
        the project shall complete the construction or demonstration 
        phase of the project, as the Secretary determines to be 
        appropriate.
            (2) Condition of financial assistance.--The Secretary shall 
        require as a condition of receipt of any financial assistance 
        under this subtitle that the recipient of the assistance enter 
        into an agreement with the Secretary not to request an 
        extension of the time period established for the project by the 
        Secretary under paragraph (1).
            (3) Extension of time period.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary may extend the time period established under 
                paragraph (1) if the Secretary determines, in the sole 
                discretion of the Secretary, that the owner or operator 
                of the project cannot complete the construction or 
                demonstration phase of the project within the time 
                period due to circumstances beyond the control of the 
                owner or operator.
                    (B) Limitation.--The Secretary shall not extend a 
                time period under subparagraph (A) by more than 4 
                years.
    (g) Fee Title.--The Secretary may vest fee title or other property 
interests acquired under cost-share clean coal power initiative 
agreements under this subtitle in any entity, including the United 
States.
    (h) Data Protection.--For a period not exceeding 5 years after 
completion of the operations phase of a cooperative agreement, the 
Secretary may provide appropriate protections (including exemptions 
from subchapter II of chapter 5 of title 5, United States Code) against 
the dissemination of information that--
            (1) results from demonstration activities carried out under 
        the clean coal power initiative program; and
            (2) would be a trade secret or commercial or financial 
        information that is privileged or confidential if the 
        information had been obtained from and first produced by a non-
        Federal party participating in a clean coal power initiative 
        project.
    (i) Applicability.--No technology, or level of emission reduction, 
solely by reason of the use of the technology, or the achievement of 
the emission reduction, by 1 or more facilities receiving assistance 
under this Act, shall be considered to be--
            (1) adequately demonstrated for purposes of section 111 of 
        the Clean Air Act (42 U.S.C. 7411);
            (2) achievable for purposes of section 169 of that Act (42 
        U.S.C. 7479); or
            (3) achievable in practice for purposes of section 171 of 
        that Act (42 U.S.C. 7501).

SEC. 403. REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
once every 2 years thereafter through 2012, the Secretary, in 
consultation with other appropriate Federal agencies, shall submit to 
Congress a report describing--
            (1)(A) the technical milestones described in section 402; 
        and
            (B) how those milestones ensure progress toward meeting the 
        requirements of subsections (b)(1)(B) and (b)(2)(B) of section 
        402; and
            (2) the status of projects that receive assistance under 
        this subtitle.

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

    (a) In General.--As part of the clean coal power initiative, the 
Secretary shall award competitive, merit-based grants to institutions 
of higher education for the establishment of centers of excellence for 
energy systems of the future.
    (b) Basis for Grants.-- The Secretary shall award grants under this 
section to institutions of higher education that show the greatest 
potential for advancing new clean coal technologies.

SEC. 405. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary may provide loan guarantees for a project to produce energy 
from coal of less than 7,000 Btu/lb using appropriate advanced 
integrated gasification combined cycle technology, including repowering 
of existing facilities, that--
            (1) is combined with wind and other renewable sources;
            (2) minimizes and offers the potential to sequester carbon 
        dioxide emissions; and
            (3) provides a ready source of hydrogen for near-site fuel 
        cell demonstrations.
    (b) Requirements.--The facility--
            (1) may be built in stages;
            (2) shall have a combined output of at least 200 megawatts 
        at successively more competitive rates; and
            (3) shall be located in the Upper Great Plains.
    (c) Technical Criteria.--Technical criteria described in section 
402(b) shall apply to the facility.
    (d) Federal Cost Share.--The Federal cost share for the facility 
shall not exceed 50 percent.
    (e) Investment Tax Credits.--
            (1) In general.--The loan guarantees provided under this 
        section do not preclude the facility from receiving an 
        allocation for investment tax credits under section 48A of the 
        Internal Revenue Code of 1986.
            (2) Other funding.--Use of the investment tax credit 
        described in paragraph (1) does not prohibit the use of other 
        clean coal program funding.

SEC. 406. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY IN 
              SERVICE.

    (a) Definitions.--In this section:
            (1) Borrower.--The term ``borrower'' means the owner of the 
        clean coal technology plant.
            (2) Clean coal technology plant.--The term ``clean coal 
        technology plant'' means the plant located near Healy, Alaska, 
        constructed under Department cooperative agreement number DE-
        FC-22-91PC90544.
            (3) Cost of a direct loan.--The term ``cost of a direct 
        loan'' has the meaning given the term in section 502(5)(B) of 
        the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)).
    (b) Authorization.--Subject to subsection (c), the Secretary shall 
use amounts made available under subsection (e) to provide the cost of 
a direct loan to the borrower for purposes of placing the clean coal 
technology plant into reliable operation for the generation of 
electricity.
    (c) Requirements.--
            (1) Maximum loan amount.--The amount of the direct loan 
        provided under subsection (b) shall not exceed $80,000,000.
            (2) Determinations by secretary.--Before providing the 
        direct loan to the borrower under subsection (b), the Secretary 
        shall determine that--
                    (A) the plan of the borrower for placing the clean 
                coal technology plant in reliable operation has a 
                reasonable prospect of success;
                    (B) the amount of the loan (when combined with 
                amounts available to the borrower from other sources) 
                will be sufficient to carry out the project; and
                    (C) there is a reasonable prospect that the 
                borrower will repay the principal and interest on the 
                loan.
            (3) Interest; term.--The direct loan provided under 
        subsection (b) shall bear interest at a rate and for a term 
        that the Secretary determines appropriate, after consultation 
        with the Secretary of the Treasury, taking into account the 
        needs and capacities of the borrower and the prevailing rate of 
        interest for similar loans made by public and private lenders.
            (4) Additional terms and conditions.--The Secretary may 
        require any other terms and conditions that the Secretary 
        determines to be appropriate.
    (d) Use of Payments.--The Secretary shall retain any payments of 
principal and interest on the direct loan provided under subsection (b) 
to support energy research and development activities, to remain 
available until expended, subject to any other conditions in an 
applicable appropriations Act.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to provide the cost of a direct 
loan under subsection (b).

SEC. 407. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary shall carry out a project to demonstrate production of energy 
from coal mined in the western United States using integrated 
gasification combined cycle technology (referred to in this section as 
the ``demonstration project'').
    (b) Components.--The demonstration project--
            (i) may include repowering of existing facilities;
            (ii) shall be designed to demonstrate the ability to use 
        coal with an energy content of not more than 9,000 Btu/lb.; and
            (iii) shall be capable of removing and sequestering carbon 
        dioxide emissions.
    (c) All Types of Western Coals.--Notwithstanding the foregoing, and 
to the extent economically feasible, the demonstration project shall 
also be designed to demonstrate the ability to use a variety of types 
of coal (including subbituminous and bituminous coal with an energy 
content of up to 13,000 Btu/lb.) mined in the western United States.
    (d) Location.--The demonstration project shall be located in a 
western State at an altitude of greater than 4,000 feet above sea 
level.
    (e) Cost Sharing.--The Federal share of the cost of the 
demonstration project shall be determined in accordance with section 
1002.
    (f) Loan Guarantees.--Notwithstanding title XIV, the demonstration 
project shall not be eligible for Federal loan guarantees.

                    Subtitle B--Federal Coal Leases

SEC. 411. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended--
            (1) in the first sentence, by striking ``Any person'' and 
        inserting the following: ``(a)(1) Except as provided in 
        paragraph (3), on a finding by the Secretary under paragraph 
        (2), any person'';
            (2) in the second sentence, by striking ``The Secretary'' 
        and inserting the following:
    ``(b) The Secretary'';
            (3) in the third sentence, by striking ``The minimum'' and 
        inserting the following:
    ``(c) The minimum'';
            (4) in subsection (a) (as designated by paragraph (1))--
                    (A) by striking ``upon'' and all that follows and 
                inserting the following: ``secure modifications of the 
                original coal lease by including additional coal lands 
                or coal deposits contiguous or cornering to those 
                embraced in the lease.''; and
                    (B) by adding at the end the following:
    ``(2) A finding referred to in paragraph (1) is a finding by the 
Secretary that the modifications--
            ``(A) would be in the interest of the United States;
            ``(B) would not displace a competitive interest in the 
        lands; and
            ``(C) would not include lands or deposits that can be 
        developed as part of another potential or existing operation.
    ``(3) In no case shall the total area added by modifications to an 
existing coal lease under paragraph (1)--
            ``(A) exceed 320 acres; or
            ``(B) add acreage larger than that in the original 
        lease.''.

SEC. 412. MINING PLANS.

    Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is 
amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
            ``(B) The Secretary may establish a period of more than 40 
        years if the Secretary determines that--
                    ``(i) the longer period will ensure the maximum 
                economic recovery of a coal deposit; or
                    ``(ii) the longer period is in the interest of the 
                orderly, efficient, or economic development of a coal 
                resource.''.

SEC. 413. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) is 
amended--
            (1) in the first sentence, by striking ``Each lease'' and 
        inserting the following: ``(1) Each lease'';
            (2) in the second sentence, by striking ``The Secretary'' 
        and inserting the following:
    ``(2) The Secretary'';
            (3) in the third sentence, by striking ``Such advance 
        royalties'' and inserting the following:
    ``(3) Advance royalties described in paragraph (2)'';
            (4) in the seventh sentence, by striking ``The Secretary'' 
        and inserting the following:
    ``(6) The Secretary'';
            (5) in the last sentence, by striking ``Nothing'' and 
        inserting the following:
    ``(7) Nothing'';
            (6) by striking the fourth, fifth, and sixth sentences; and
            (7) by inserting after paragraph (3) (as designated by 
        paragraph (3)) the following:
    ``(4) The aggregate number of years during the period of any lease 
for which advance royalties may be accepted in lieu of the condition of 
continued operation shall not exceed 20 years.
    ``(5) The amount of any production royalty paid for any year shall 
be reduced (but not below 0) by the amount of any advance royalties 
paid under a lease described in paragraph (4) to the extent that the 
advance royalties have not been used to reduce production royalties for 
a prior year.''.

SEC. 414. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE 
              OPERATION AND RECLAMATION PLAN.

    Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is 
amended by striking ``and not later than three years after a lease is 
issued,''.

SEC. 415. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM ILLINOIS BASIN 
              COAL.

    (a) In General.--The Secretary shall carry out a program to 
evaluate the commercial and technical viability of advanced 
technologies for the production of Fischer-Tropsch transportation 
fuels, and other transportation fuels, manufactured from Illinois basin 
coal, including the capital modification of existing facilities and the 
construction of testing facilities under subsection (b).
    (b) Facilities.--For the purpose of evaluating the commercial and 
technical viability of different processes for producing Fischer-
Tropsch transportation fuels, and other transportation fuels, from 
Illinois basin coal, the Secretary shall support the use and capital 
modification of existing facilities and the construction of new 
facilities at--
            (1) Southern Illinois University Coal Research Center;
            (2) University of Kentucky Center for Applied Energy 
        Research; and
            (3) Energy Center at Purdue University.
    (c) Gasification Products Test Center.--In conjunction with the 
activities described in subsections (a) and (b), the Secretary shall 
construct a test center to evaluate and confirm liquid and gas products 
from syngas catalysis in order that the system has an output of at 
least 500 gallons of Fischer-Tropsch transportation fuel per day in a 
24-hour operation.
    (d) Milestones.--
            (1) Selection of processes.--Not later than 180 days after 
        the date of enactment of this Act, the Secretary shall select 
        processes for evaluating the commercial and technical viability 
        of different processes of producing Fischer-Tropsch 
        transportation fuels, and other transportation fuels, from 
        Illinois basin coal.
            (2) Agreements.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall offer to enter into 
        agreements--
                    (A) to carry out the activities described in this 
                section, at the facilities described in subsection (b); 
                and
                    (B) for the capital modifications or construction 
                of the facilities at the locations described in 
                subsection (b).
            (3) Evaluations.--Not later than 3 years after the date of 
        enactment of the Act, the Secretary shall begin, at the 
        facilities described in subsection (b), evaluation of the 
        technical and commercial viability of different processes of 
        producing Fischer-Tropsch transportation fuels, and other 
        transportation fuels, from Illinois basin coal.
            (4) Construction of facilities.--
                    (A) In general.--The Secretary shall construct the 
                facilities described in subsection (b) at the lowest 
                cost practicable.
                    (B) Grants or agreements.--The Secretary may make 
                grants or enter into agreements or contracts with the 
                institutions of higher education described in 
                subsection (b).
    (e) Cost Sharing.--The cost of making grants under this section 
shall be shared in accordance with section 1002.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $85,000,000 for the period of 
fiscal years 2006 through 2010.

SEC. 416. APPLICATION OF AMENDMENTS.

    (a) In General.--The amendments made by this subtitle apply to any 
coal lease issued on or after the date of enactment of this Act.
    (b) Coal Leases Issued Before Date of Enactment.--With respect to 
any coal lease issued before the date of enactment of this Act, the 
amendments made by this subtitle apply--
            (1) on the date of readjustment of the lease as provided 
        under section 7(a) of the Mineral Leasing Act (30 U.S.C. 207); 
        or
            (2) on request by the lessee, prior to that date.

                         TITLE V--INDIAN ENERGY

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Indian Tribal Energy Development 
and Self-Determination Act of 2005''.

SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    (a) In General.--Title II of the Department of Energy Organization 
Act (42 U.S.C. 7131 et seq.) is amended by adding at the end the 
following:

             ``office of indian energy policy and programs

    ``Sec. 217. (a) Establishment.--
            ``(1) There is established within the Department an Office 
        of Indian Energy Policy and Programs (referred to in this 
        section as the `Office').
            ``(2) The Office shall be headed by a Director, to be 
        appointed by the Secretary and compensated at a rate equal to 
        that of level IV of the Executive Schedule under section 5315 
        of title 5, United States Code.
    ``(b) Duties of Director.--The Director, in accordance with Federal 
policies promoting Indian self-determination and the purposes of this 
Act, shall provide, direct, foster, coordinate, and implement energy 
planning, education, management, conservation, and delivery programs of 
the Department that--
            ``(1) promote Indian tribal energy development, efficiency, 
        and use;
            ``(2) reduce or stabilize energy costs;
            ``(3) enhance and strengthen Indian tribal energy and 
        economic infrastructure relating to natural resource 
        development and electrification; and
            ``(4) bring electrical power and service to Indian land and 
        the homes of tribal members that are--
                    ``(A) located on Indian land; or
                    ``(B) acquired, constructed, or improved (in whole 
                or in part) with Federal funds.''.
    (b) Conforming Amendments.--
            (1) The table of contents of the Department of Energy 
        Organization Act (42 U.S.C. prec. 7101) is amended--
                    (A) in the item relating to section 209, by 
                striking ``Section'' and inserting ``Sec.''; and
                    (B) by striking the items relating to sections 213 
                through 216 and inserting the following:

                              ``Sec. 213. Establishment of policy for 
                                        National Nuclear Security 
                                        Administration.
                              ``Sec. 214. Establishment of security, 
                                        counterintelligence, and 
                                        intelligence policies.
                              ``Sec. 215. Office of 
                                        Counterintelligence.
                              ``Sec. 216. Office of Intelligence.
                              ``Sec. 217. Office of Indian Energy 
                                        Policy and Programs.''.
            (2) Section 5315 of title 5, United States Code, is amended 
        by inserting ``Director, Office of Indian Energy Policy and 
        Programs, Department of Energy.'' after ``Inspector General, 
        Department of Energy.''.

SEC. 503. INDIAN ENERGY.

    (a) In General.--Title XXVI of the Energy Policy Act of 1992 (25 
U.S.C. 3501 et seq.) is amended to read as follows:

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

    ``In this title:
            ``(1) The term `Director' means the Director of the Office 
        of Indian Energy Policy and Programs, Department of Energy.
            ``(2) The term `Indian land' means--
                    ``(A) any land located within the boundaries of an 
                Indian reservation, pueblo, or rancheria;
                    ``(B) any land not located within the boundaries of 
                an Indian reservation, pueblo, or rancheria, the title 
                to which is held--
                            ``(i) in trust by the United States for the 
                        benefit of an Indian tribe or an individual 
                        Indian;
                            ``(ii) by an Indian tribe or an individual 
                        Indian, subject to restriction against 
                        alienation under laws of the United States; or
                            ``(iii) by a dependent Indian community; 
                        and
                    ``(C) land that is owned by an Indian tribe and was 
                conveyed by the United States to a Native Corporation 
                pursuant to the Alaska Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.), or that was conveyed by the 
                United States to a Native Corporation in exchange for 
                such land.
            ``(3) The term `Indian reservation' includes--
                    ``(A) an Indian reservation in existence in any 
                State as of the date of enactment of this paragraph;
                    ``(B) a public domain Indian allotment; and
                    ``(C) a dependent Indian community located within 
                the borders of the United States, regardless of whether 
                the community is located--
                            ``(i) on original or acquired territory of 
                        the community; or
                            ``(ii) within or outside the boundaries of 
                        any particular State.
            ``(4)(A) The term `Indian tribe' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            ``(B) For the purpose of paragraph (12) and sections 
        2603(b)(1)(C) and 2604, the term `Indian tribe' does not 
        include any Native Corporation.
            ``(5) The term `integration of energy resources' means any 
        project or activity that promotes the location and operation of 
        a facility (including any pipeline, gathering system, 
        transportation system or facility, or electric transmission or 
        distribution facility) on or near Indian land to process, 
        refine, generate electricity from, or otherwise develop energy 
        resources on, Indian land.
            ``(6) The term `Native Corporation' has the meaning given 
        the term in section 3 of the Alaska Native Claims Settlement 
        Act (43 U.S.C. 1602).
            ``(7) The term `organization' means a partnership, joint 
        venture, limited liability company, or other unincorporated 
        association or entity that is established to develop Indian 
        energy resources.
            ``(8) The term `Program' means the Indian energy resource 
        development program established under section 2602(a).
            ``(9) The term `Secretary' means the Secretary of the 
        Interior.
            ``(10) The term `sequestration' means the long-term 
        separation, isolation, or removal of greenhouse gases from the 
        atmosphere, including through a biological or geologic method 
        such as reforestation or an underground reservoir.
            ``(11) The term `tribal energy resource development 
        organization' means an organization of 2 or more entities, at 
        least 1 of which is an Indian tribe, that has the written 
        consent of the governing bodies of all Indian tribes 
        participating in the organization to apply for a grant, loan, 
        or other assistance under section 2602.
            ``(12) The term `tribal land' means any land or interests 
        in land owned by any Indian tribe, title to which is held in 
        trust by the United States, or is subject to a restriction 
        against alienation under laws of the United States.

``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.

    ``(a) Department of the Interior Program.--
            ``(1) To assist Indian tribes in the development of energy 
        resources and further the goal of Indian self-determination, 
        the Secretary shall establish and implement an Indian energy 
        resource development program to assist consenting Indian tribes 
        and tribal energy resource development organizations in 
        achieving the purposes of this title.
            ``(2) In carrying out the Program, the Secretary shall--
                    ``(A) provide development grants to Indian tribes 
                and tribal energy resource development organizations 
                for use in developing or obtaining the managerial and 
                technical capacity needed to develop energy resources 
                on Indian land, and to properly account for resulting 
                energy production and revenues;
                    ``(B) provide grants to Indian tribes and tribal 
                energy resource development organizations for use in 
                carrying out projects to promote the integration of 
                energy resources, and to process, use, or develop those 
                energy resources, on Indian land;
                    ``(C) provide low-interest loans to Indian tribes 
                and tribal energy resource development organizations 
                for use in the promotion of energy resource development 
                on Indian land and integration of energy resources; and
                    ``(D) provide grants and technical assistance to an 
                appropriate tribal environmental organization, as 
                determined by the Secretary, that represents multiple 
                Indian tribes to establish a national resource center 
                to develop tribal capacity to establish and carry out 
                tribal environmental programs in support of energy-
                related programs and activities under this title, 
                including--
                            ``(i) training programs for tribal 
                        environmental officials, program managers, and 
                        other governmental representatives;
                            ``(ii) the development of model 
                        environmental policies and tribal laws, 
                        including tribal environmental review codes, 
                        and the creation and maintenance of a 
                        clearinghouse of best environmental management 
                        practices; and
                            ``(iii) recommended standards for reviewing 
                        the implementation of tribal environmental laws 
                        and policies within tribal judicial or other 
                        tribal appeals systems.
            ``(3) There are authorized to be appropriated to carry out 
        this subsection such sums as are necessary for each of fiscal 
        years 2006 through 2016.
    ``(b) Department of Energy Indian Energy Education Planning and 
Management Assistance Program.--
            ``(1) The Director shall establish programs to assist 
        consenting Indian tribes in meeting energy education, research 
        and development, planning, and management needs.
            ``(2) In carrying out this subsection, the Director may 
        provide grants, on a competitive basis, to an Indian tribe or 
        tribal energy resource development organization for use in 
        carrying out--
                    ``(A) energy, energy efficiency, and energy 
                conservation programs;
                    ``(B) studies and other activities supporting 
                tribal acquisitions of energy supplies, services, and 
                facilities, including the creation of tribal utilities 
                to assist in securing electricity to promote 
                electrification of homes and businesses on Indian land;
                    ``(C) planning, construction, development, 
                operation, maintenance, and improvement of tribal 
                electrical generation, transmission, and distribution 
                facilities located on Indian land; and
                    ``(D) development, construction, and 
                interconnection of electric power transmission 
                facilities located on Indian land with other electric 
                transmission facilities.
            ``(3)(A) The Director shall develop a program to support 
        and implement research projects that provide Indian tribes with 
        opportunities to participate in carbon sequestration practices 
        on Indian land, including--
                    ``(i) geologic sequestration;
                    ``(ii) forest sequestration;
                    ``(iii) agricultural sequestration; and
                    ``(iv) any other sequestration opportunities the 
                Director considers to be appropriate.
            ``(B) The activities carried out under subparagraph (A) 
        shall be--
                    ``(i) coordinated with other carbon sequestration 
                research and development programs conducted by the 
                Secretary of Energy;
                    ``(ii) conducted to determine methods consistent 
                with existing standardized measurement protocols to 
                account and report the quantity of carbon dioxide or 
                other greenhouse gases sequestered in projects that may 
                be implemented on tribal land; and
                    ``(iii) reviewed periodically to collect and 
                distribute to Indian tribes information on carbon 
                sequestration practices that will increase the 
                sequestration of carbon without threatening the social 
                and economic well-being of Indian tribes.
            ``(4)(A) The Director, in consultation with Indian tribes, 
        may develop a formula for providing grants under this 
        subsection.
            ``(B) In providing a grant under this subsection, the 
        Director shall give priority to any application received from 
        an Indian tribe with inadequate electric service (as determined 
        by the Director).
            ``(C) In providing a grant under this subsection for an 
        activity to provide, or expand the provision of, electricity on 
        Indian land, the Director shall encourage cooperative 
        arrangements between Indian tribes and utilities that provide 
        service to Indian tribes, as the Director determines to be 
        appropriate.
            ``(5) The Secretary of Energy may issue such regulations as 
        the Secretary determines to be necessary to carry out this 
        subsection.
            ``(6) There is authorized to be appropriated to carry out 
        this subsection $20,000,000 for each of fiscal years 2006 
        through 2016.
    ``(c) Department of Energy Loan Guarantee Program.--
            ``(1) Subject to paragraphs (2) and (4), the Secretary of 
        Energy may provide loan guarantees (as defined in section 502 
        of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for 
        an amount equal to not more than 90 percent of the unpaid 
        principal and interest due on any loan made to an Indian tribe 
        for energy development.
            ``(2)(A) In evaluating energy development proposals for 
        which the Secretary of Energy may provide a loan guarantee 
        under paragraph (1), the Secretary of Energy shall give 
        priority to any project that uses a new technology, such as 
        coal gasification, carbon capture and sequestration, or 
        renewable energy-based electricity generation, if competing 
        proposals are similar with respect to the level at which the 
        proposals meet or exceed the criteria established by the 
        Secretary of Energy for the loan guarantee program.
            ``(B) In providing a loan guarantee under this subsection 
        for an activity to provide, or expand the provision of, 
        electricity on Indian land, the Secretary of Energy shall 
        encourage cooperative arrangements between Indian tribes and 
        utilities that provide service to Indian tribes, as the 
        Secretary determines to be appropriate.
            ``(3) A loan guarantee under this subsection shall be made 
        by--
                    ``(A) a financial institution subject to 
                examination by the Secretary of Energy; or
                    ``(B) an Indian tribe, from funds of the Indian 
                tribe.
            ``(4) The aggregate outstanding amount guaranteed by the 
        Secretary of Energy at any time under this subsection shall not 
        exceed $2,000,000,000.
            ``(5) The Secretary of Energy may issue such regulations as 
        the Secretary of Energy determines are necessary to carry out 
        this subsection.
            ``(6) There are authorized to be appropriated such sums as 
        are necessary to carry out this subsection, to remain available 
        until expended.
            ``(7) Not later than 1 year after the date of enactment of 
        this section, the Secretary of Energy shall submit to Congress 
        a report on the financing requirements of Indian tribes for 
        energy development on Indian land.
    ``(d) Preference.--
            ``(1) In purchasing electricity or any other energy product 
        or byproduct, a Federal agency or department may give 
        preference to an energy and resource production enterprise, 
        partnership, consortium, corporation, or other type of business 
        organization the majority of the interest in which is owned and 
        controlled by 1 or more Indian tribes.
            ``(2) In carrying out this subsection, a Federal agency or 
        department shall not--
                    ``(A) pay more than the prevailing market price for 
                an energy product or byproduct; or
                    ``(B) obtain less than prevailing market terms and 
                conditions.

``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.

    ``(a) Grants.--The Secretary may provide to Indian tribes, on an 
annual basis, grants for use in accordance with subsection (b).
    ``(b) Use of Funds.--Funds from a grant provided under this section 
may be used--
            ``(1)(A) by an Indian tribe for the development of a tribal 
        energy resource inventory or tribal energy resource on Indian 
        land;
            ``(B) by an Indian tribe for the development of a 
        feasibility study or other report necessary to the development 
        of energy resources on Indian land;
            ``(C) by an Indian tribe (other than an Indian Tribe in the 
        State of Alaska, except the Metlakatla Indian Community) for--
                    ``(i) the development and enforcement of tribal 
                laws (including regulations) relating to tribal energy 
                resource development; and
                    ``(ii) the development of technical infrastructure 
                to protect the environment under applicable law; or
            ``(D) by a Native Corporation for the development and 
        implementation of corporate policies and the development of 
        technical infrastructure to protect the environment under 
        applicable law; and
            ``(2) by an Indian tribe for the training of employees 
        that--
                    ``(A) are engaged in the development of energy 
                resources on Indian land; or
                    ``(B) are responsible for protecting the 
                environment.
    ``(c) Other Assistance.--
            ``(1) In carrying out the obligations of the United States 
        under this title, the Secretary shall ensure, to the maximum 
        extent practicable and to the extent of available resources, 
        that on the request of an Indian tribe, the Indian tribe shall 
        have available scientific and technical information and 
        expertise, for use in the regulation, development, and 
        management of energy resources of the Indian tribe on Indian 
        land.
            ``(2) The Secretary may carry out paragraph (1)--
                    ``(A) directly, through the use of Federal 
                officials; or
                    ``(B) indirectly, by providing financial assistance 
                to an Indian tribe to secure independent assistance.

``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING 
              ENERGY DEVELOPMENT OR TRANSMISSION.

    ``(a) Leases and Business Agreements.--In accordance with this 
section--
            ``(1) an Indian tribe may, at the discretion of the Indian 
        tribe, enter into a lease or business agreement for the purpose 
        of energy resource development on tribal land, including a 
        lease or business agreement for--
                    ``(A) exploration for, extraction of, processing 
                of, or other development of the energy mineral 
                resources of the Indian tribe located on tribal land; 
                or
                    ``(B) construction or operation of--
                            ``(i) an electric generation, transmission, 
                        or distribution facility located on tribal 
                        land; or
                            ``(ii) a facility to process or refine 
                        energy resources developed on tribal land; and
            ``(2) a lease or business agreement described in paragraph 
        (1) shall not require the approval of the Secretary under 
        section 2103 of the Revised Statutes (25 U.S.C. 81), or any 
        other provision of law, if--
                    ``(A) the lease or business agreement is executed 
                pursuant to a tribal energy resource agreement approved 
                by the Secretary under subsection (e);
                    ``(B) the term of the lease or business agreement 
                does not exceed--
                            ``(i) 30 years; or
                            ``(ii) in the case of a lease for the 
                        production of oil resources, gas resources, or 
                        both, 10 years and as long thereafter as oil or 
                        gas is produced in paying quantities; and
                    ``(C) the Indian tribe has entered into a tribal 
                energy resource agreement with the Secretary, as 
                described in subsection (e), relating to the 
                development of energy resources on tribal land 
                (including the periodic review and evaluation of the 
                activities of the Indian tribe under the agreement, to 
                be conducted pursuant to subsection (e)(2)(D)(i)).
    ``(b) Rights-of-Way for Pipelines or Electric Transmission or 
Distribution Lines.--An Indian tribe may grant a right-of-way over 
tribal land for a pipeline or an electric transmission or distribution 
line without approval by the Secretary if--
            ``(1) the right-of-way is executed in accordance with a 
        tribal energy resource agreement approved by the Secretary 
        under subsection (e);
            ``(2) the term of the right-of-way does not exceed 30 
        years;
            ``(3) the pipeline or electric transmission or distribution 
        line serves--
                    ``(A) an electric generation, transmission, or 
                distribution facility located on tribal land; or
                    ``(B) a facility located on tribal land that 
                processes or refines energy resources developed on 
                tribal land; and
            ``(4) the Indian tribe has entered into a tribal energy 
        resource agreement with the Secretary, as described in 
        subsection (e), relating to the development of energy resources 
        on tribal land (including the periodic review and evaluation of 
        the activities of the Indian tribe under an agreement described 
        in subparagraphs (D) and (E) of subsection (e)(2)).
    ``(c) Renewals.--A lease or business agreement entered into, or a 
right-of-way granted, by an Indian tribe under this section may be 
renewed at the discretion of the Indian tribe in accordance with this 
section.
    ``(d) Validity.--No lease, business agreement, or right-of-way 
relating to the development of tribal energy resources under this 
section shall be valid unless the lease, business agreement, or right-
of-way is authorized by a tribal energy resource agreement approved by 
the Secretary under subsection (e)(2).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On the date on which regulations are promulgated 
        under paragraph (8), an Indian tribe may submit to the 
        Secretary for approval a tribal energy resource agreement 
        governing leases, business agreements, and rights-of-way under 
        this section.
            ``(2)(A) Not later than 1 year after the date on which the 
        Secretary receives a tribal energy resource agreement from an 
        Indian tribe under paragraph (1), or not later than 60 days 
        after the Secretary receives a revised tribal energy resource 
        agreement from an Indian tribe under paragraph (4)(C) (or a 
        later date, as agreed to by the Secretary and the Indian 
        tribe), the Secretary shall approve or disapprove the tribal 
        energy resource agreement.
            ``(B) The Secretary shall approve a tribal energy resource 
        agreement submitted under paragraph (1) if--
                    ``(i) the Secretary determines that the Indian 
                tribe has demonstrated that the Indian tribe has 
                sufficient capacity to regulate the development of 
                energy resources of the Indian tribe;
                    ``(ii) the tribal energy resource agreement 
                includes provisions required under subparagraph (D); 
                and
                    ``(iii) the tribal energy resource agreement 
                includes provisions that, with respect to a lease, 
                business agreement, or right-of-way under this 
                section--
                            ``(I) ensure the acquisition of necessary 
                        information from the applicant for the lease, 
                        business agreement, or right-of-way;
                            ``(II) address the term of the lease or 
                        business agreement or the term of conveyance of 
                        the right-of-way;
                            ``(III) address amendments and renewals;
                            ``(IV) address the economic return to the 
                        Indian tribe under leases, business agreements, 
                        and rights-of-way;
                            ``(V) address technical or other relevant 
                        requirements;
                            ``(VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                            ``(VII) ensure compliance with all 
                        applicable environmental laws, including a 
                        requirement that each lease, business 
                        agreement, and right-of-way state that the 
                        lessee, operator, or right-of-way grantee shall 
                        comply with all such laws;
                            ``(VIII) identify final approval authority;
                            ``(IX) provide for public notification of 
                        final approvals;
                            ``(X) establish a process for consultation 
                        with any affected States regarding off-
                        reservation impacts, if any, identified under 
                        subparagraph (C)(i);
                            ``(XI) describe the remedies for breach of 
                        the lease, business agreement, or right-of-way;
                            ``(XII) require each lease, business 
                        agreement, and right-of-way to include a 
                        statement that, if any of its provisions 
                        violates an express term or requirement of the 
                        tribal energy resource agreement pursuant to 
                        which the lease, business agreement, or right-
                        of-way was executed--
                                    ``(aa) the provision shall be null 
                                and void; and
                                    ``(bb) if the Secretary determines 
                                the provision to be material, the 
                                Secretary may suspend or rescind the 
                                lease, business agreement, or right-of-
                                way or take other appropriate action 
                                that the Secretary determines to be in 
                                the best interest of the Indian tribe;
                            ``(XIII) require each lease, business 
                        agreement, and right-of-way to provide that it 
                        will become effective on the date on which a 
                        copy of the executed lease, business agreement, 
                        or right-of-way is delivered to the Secretary 
                        in accordance with regulations promulgated 
                        under paragraph (8);
                            ``(XIV) include citations to tribal laws, 
                        regulations, or procedures, if any, that set 
                        out tribal remedies that must be exhausted 
                        before a petition may be submitted to the 
                        Secretary under paragraph (7)(B);
                            ``(XV) specify the financial assistance, if 
                        any, to be provided by the Secretary to the 
                        Indian tribe to assist in implementation of the 
                        tribal energy resource agreement, including 
                        environmental review of individual projects; 
                        and
                            ``(XVI) in accordance with the regulations 
                        promulgated by the Secretary under paragraph 
                        (8), require that the Indian tribe, as soon as 
                        practicable after receipt of a notice by the 
                        Indian tribe, give written notice to the 
                        Secretary of--
                                    ``(aa) any breach or other 
                                violation by another party of any 
                                provision in a lease, business 
                                agreement, or right-of-way entered into 
                                under the tribal energy resource 
                                agreement; and
                                    ``(bb) any activity or occurrence 
                                under a lease, business agreement, or 
                                right-of-way that constitutes a 
                                violation of Federal or tribal 
                                environmental laws.
                    ``(C) Tribal energy resource agreements submitted 
                under paragraph (1) shall establish, and include 
                provisions to ensure compliance with, an environmental 
                review process that, with respect to a lease, business 
                agreement, or right-of-way under this section, provides 
                for, at a minimum--
                            ``(i) the identification and evaluation of 
                        all significant environmental effects (as 
                        compared to a no-action alternative), including 
                        effects on cultural resources;
                            ``(ii) the identification of proposed 
                        mitigation measures, if any, and incorporation 
                        of the mitigation measures into the lease, 
                        business agreement, or right-of-way;
                            ``(iii) a process for ensuring that--
                                    ``(I) the public is informed of, 
                                and has an opportunity to comment on, 
                                the environmental impacts of the 
                                proposed action; and
                                    ``(II) responses to relevant and 
                                substantive comments are provided, 
                                before tribal approval of the lease, 
                                business agreement, or right-of-way;
                            ``(iv) sufficient administrative support 
                        and technical capability to carry out the 
                        environmental review process; and
                            ``(v) oversight by the Indian tribe of 
                        energy development activities by any other 
                        party under any lease, business agreement, or 
                        right-of-way entered into pursuant to the 
                        tribal energy resource agreement, to determine 
                        whether the activities are in compliance with 
                        the tribal energy resource agreement and 
                        applicable Federal environmental laws.
                    ``(D) A tribal energy resource agreement between 
                the Secretary and an Indian tribe under this subsection 
                shall include--
                            ``(i) provisions requiring the Secretary to 
                        conduct a periodic review and evaluation to 
                        monitor the performance of the activities of 
                        the Indian tribe associated with the 
                        development of energy resources under the 
                        tribal energy resource agreement; and
                            ``(ii) if a periodic review and evaluation, 
                        or an investigation, by the Secretary of any 
                        breach or violation described in a notice 
                        provided by the Indian tribe to the Secretary 
                        in accordance with subparagraph (B)(iii)(XVI), 
                        results in a finding by the Secretary of 
                        imminent jeopardy to a physical trust asset 
                        arising from a violation of the tribal energy 
                        resource agreement or applicable Federal laws, 
                        provisions authorizing the Secretary to take 
                        actions determined by the Secretary to be 
                        necessary to protect the asset, including 
                        reassumption of responsibility for activities 
                        associated with the development of energy 
                        resources on tribal land until the violation 
                        and any condition that caused the jeopardy are 
                        corrected.
                    ``(E) Periodic review and evaluation under 
                subparagraph (D) shall be conducted on an annual basis, 
                except that, after the third annual review and 
                evaluation, the Secretary and the Indian tribe may 
                mutually agree to amend the tribal energy resource 
                agreement to authorize the review and evaluation under 
                subparagraph (D) to be conducted once every 2 years.
            ``(3) The Secretary shall provide notice and opportunity 
        for public comment on tribal energy resource agreements 
        submitted for approval under paragraph (1).
            ``(4) If the Secretary disapproves a tribal energy resource 
        agreement submitted by an Indian tribe under paragraph (1), the 
        Secretary shall, not later than 10 days after the date of 
        disapproval--
                    ``(A) notify the Indian tribe in writing of the 
                basis for the disapproval;
                    ``(B) identify what changes or other actions are 
                required to address the concerns of the Secretary; and
                    ``(C) provide the Indian tribe with an opportunity 
                to revise and resubmit the tribal energy resource 
                agreement.
            ``(5) If an Indian tribe executes a lease or business 
        agreement, or grants a right-of-way, in accordance with a 
        tribal energy resource agreement approved under this 
        subsection, the Indian tribe shall, in accordance with the 
        process and requirements under regulations promulgated under 
        paragraph (8), provide to the Secretary--
                    ``(A) a copy of the lease, business agreement, or 
                right-of-way document (including all amendments to and 
                renewals of the document); and
                    ``(B) in the case of a tribal energy resource 
                agreement or a lease, business agreement, or right-of-
                way that permits payments to be made directly to the 
                Indian tribe, information and documentation of those 
                payments sufficient to enable the Secretary to 
                discharge the trust responsibility of the United States 
                to enforce the terms of, and protect the rights of the 
                Indian tribe under, the lease, business agreement, or 
                right-of-way.
            ``(6)(A) In carrying out this section, the Secretary 
        shall--
                    ``(i) act in accordance with the trust 
                responsibility of the United States relating to mineral 
                and other trust resources; and
                    ``(ii) act in good faith and in the best interests 
                of the Indian tribes.
            ``(B) Subject to the provisions of subsections (a)(2), (b), 
        and (c) waiving the requirement of Secretarial approval of 
        leases, business agreements, and rights-of-way executed 
        pursuant to tribal energy resource agreements approved under 
        this section, and the provisions of subparagraph (D), nothing 
        in this section shall absolve the United States from any 
        responsibility to Indians or Indian tribes, including, but not 
        limited to, those which derive from the trust relationship or 
        from any treaties, statutes, and other laws of the United 
        States, Executive Orders, or agreements between the United 
        States and any Indian tribe.
            ``(C) The Secretary shall continue to fulfill the trust 
        obligation of the United States to ensure that the rights and 
        interests of an Indian tribe are protected if--
                    ``(i) any other party to a lease, business 
                agreement, or right-of-way violates any applicable 
                Federal law or the terms of any lease, business 
                agreement, or right-of-way under this section; or
                    ``(ii) any provision in a lease, business 
                agreement, or right-of-way violates the tribal energy 
                resource agreement pursuant to which the lease, 
                business agreement, or right-of-way was executed.
            ``(D)(i) In this subparagraph, the term `negotiated term' 
        means any term or provision that is negotiated by an Indian 
        tribe and any other party to a lease, business agreement, or 
        right-of-way entered into pursuant to an approved tribal energy 
        resource agreement.
            ``(ii) Notwithstanding subparagraph (B), the United States 
        shall not be liable to any party (including any Indian tribe) 
        for any negotiated term of, or any loss resulting from the 
        negotiated terms of, a lease, business agreement, or right-of-
        way executed pursuant to and in accordance with a tribal energy 
        resource agreement approved by the Secretary under paragraph 
        (2).
            ``(7)(A) In this paragraph, the term `interested party' 
        means any person (including an entity) that has demonstrated 
        that an interest of the person has sustained, or will sustain, 
        an adverse environmental impact as a result of the failure of 
        an Indian tribe to comply with a tribal energy resource 
        agreement of the Indian tribe approved by the Secretary under 
        paragraph (2).
            ``(B) After exhaustion of any tribal remedy, and in 
        accordance with regulations promulgated by the Secretary under 
        paragraph (8), an interested party may submit to the Secretary 
        a petition to review the compliance by an Indian tribe with a 
        tribal energy resource agreement of the Indian tribe approved 
        by the Secretary under paragraph (2).
            ``(C)(i) Not later than 20 days after the date on which the 
        Secretary receives a petition under subparagraph (B), the 
        Secretary shall--
                    ``(I) provide to the Indian tribe a copy of the 
                petition; and
                    ``(II) consult with the Indian tribe regarding any 
                noncompliance alleged in the petition.
            ``(ii) Not later than 45 days after the date on which a 
        consultation under clause (i)(II) takes place, the Indian tribe 
        shall respond to any claim made in a petition under 
        subparagraph (B).
            ``(iii) The Secretary shall act in accordance with 
        subparagraphs (D) and (E) only if the Indian tribe--
                    ``(I) denies, or fails to respond to, each claim 
                made in the petition within the period described in 
                clause (ii); or
                    ``(II) fails, refuses, or is unable to cure or 
                otherwise resolve each claim made in the petition 
                within a reasonable period, as determined by the 
                Secretary, after the expiration of the period described 
                in clause (ii).
            ``(D)(i) Not later than 120 days after the date on which 
        the Secretary receives a petition under subparagraph (B), the 
        Secretary shall determine whether the Indian tribe is not in 
        compliance with the tribal energy resource agreement.
            ``(ii) The Secretary may adopt procedures under paragraph 
        (8) authorizing an extension of time, not to exceed 120 days, 
        for making the determination under clause (i) in any case in 
        which the Secretary determines that additional time is 
        necessary to evaluate the allegations of the petition.
            ``(iii) Subject to subparagraph (E), if the Secretary 
        determines that the Indian tribe is not in compliance with the 
        tribal energy resource agreement, the Secretary shall take such 
        action as the Secretary determines to be necessary to ensure 
        compliance with the tribal energy resource agreement, 
        including--
                    ``(I) temporarily suspending any activity under a 
                lease, business agreement, or right-of-way under this 
                section until the Indian tribe is in compliance with 
                the approved tribal energy resource agreement; or
                    ``(II) rescinding approval of all or part of the 
                tribal energy resource agreement, and if all of the 
                agreement is rescinded, reassuming the responsibility 
                for approval of any future leases, business agreements, 
                or rights-of-way described in subsection (a) or (b).
            ``(E) Before taking an action described in subparagraph 
        (D)(iii), the Secretary shall--
                    ``(i) make a written determination that describes 
                the manner in which the tribal energy resource 
                agreement has been violated;
                    ``(ii) provide the Indian tribe with a written 
                notice of the violations together with the written 
                determination; and
                    ``(iii) before taking any action described in 
                subparagraph (D)(iii) or seeking any other remedy, 
                provide the Indian tribe with a hearing and a 
                reasonable opportunity to attain compliance with the 
                tribal energy resource agreement.
            ``(F) An Indian tribe described in subparagraph (E) shall 
        retain all rights to appeal under any regulation promulgated by 
        the Secretary.
            ``(8) Not later than 1 year after the date of enactment of 
        the Energy Policy Act of 2005, the Secretary shall promulgate 
        regulations that implement this subsection, including--
                    ``(A) criteria to be used in determining the 
                capacity of an Indian tribe under paragraph (2)(B)(i), 
                including the experience of the Indian tribe in 
                managing natural resources and financial and 
                administrative resources available for use by the 
                Indian tribe in implementing the approved tribal energy 
                resource agreement of the Indian tribe;
                    ``(B) a process and requirements in accordance with 
                which an Indian tribe may--
                            ``(i) voluntarily rescind a tribal energy 
                        resource agreement approved by the Secretary 
                        under this subsection; and
                            ``(ii) return to the Secretary the 
                        responsibility to approve any future lease, 
                        business agreement, or right-of-way under this 
                        subsection;
                    ``(C) provisions establishing the scope of, and 
                procedures for, the periodic review and evaluation 
                described in subparagraphs (D) and (E) of paragraph 
                (2), including provisions for review of transactions, 
                reports, site inspections, and any other review 
                activities the Secretary determines to be appropriate; 
                and
                    ``(D) provisions describing final agency actions 
                after exhaustion of administrative appeals from 
                determinations of the Secretary under paragraph (7).
    ``(f) No Effect on Other Law.--Nothing in this section affects the 
application of--
            ``(1) any Federal environmental law;
            ``(2) the Surface Mining Control and Reclamation Act of 
        1977 (30 U.S.C. 1201 et seq.); or
            ``(3) except as otherwise provided in this title, the 
        Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et 
        seq.).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary for each of 
fiscal years 2006 through 2016 to carry out this section and to make 
grants or provide other appropriate assistance to Indian tribes to 
assist the Indian tribes in developing and implementing tribal energy 
resource agreements in accordance with this section.

``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

    ``(a) Definitions.--In this section:
            ``(1) The term ``Administrator'' means the Administrator of 
        the Bonneville Power Administration and the Administrator of 
        the Western Area Power Administration.
            ``(2) The term ``power marketing administration'' means--
                    ``(A) the Bonneville Power Administration;
                    ``(B) the Western Area Power Administration; and
                    ``(C) any other power administration the power 
                allocation of which is used by or for the benefit of an 
                Indian tribe located in the service area of the 
                administration.
    ``(b) Encouragement of Indian Tribal Energy Development.--Each 
Administrator shall encourage Indian tribal energy development by 
taking such actions as the Administrators determine to be appropriate, 
including administration of programs of the power marketing 
administration, in accordance with this section.
    ``(c) Action by Administrators.--In carrying out this section, in 
accordance with laws in existence on the date of enactment of the 
Energy Policy Act of 2005--
            ``(1) each Administrator shall consider the unique 
        relationship that exists between the United States and Indian 
        tribes;
            ``(2) power allocations from the Western Area Power 
        Administration to Indian tribes may be used to meet firming and 
        reserve needs of Indian-owned energy projects on Indian land;
            ``(3) the Administrator of the Western Area Power 
        Administration may purchase non-federally generated power from 
        Indian tribes to meet the firming and reserve requirements of 
        the Western Area Power Administration; and
            ``(4) each Administrator shall not--
                    ``(A) pay more than the prevailing market price for 
                an energy product; or
                    ``(B) obtain less than prevailing market terms and 
                conditions.
    ``(d) Assistance for Transmission System Use.--
            ``(1) An Administrator may provide technical assistance to 
        Indian tribes seeking to use the high-voltage transmission 
        system for delivery of electric power.
            ``(2) The costs of technical assistance provided under 
        paragraph (1) shall be funded--
                    ``(A) by the Secretary of Energy using 
                nonreimbursable funds appropriated for that purpose; or
                    ``(B) by any appropriate Indian tribe.
    ``(e) Power Allocation Study.--Not later than 2 years after the 
date of enactment of the Energy Policy Act of 2005, the Secretary of 
Energy shall submit to Congress a report that--
            ``(1) describes the use by Indian tribes of Federal power 
        allocations of the power marketing administration (or power 
        sold by the Southwestern Power Administration) to or for the 
        benefit of Indian tribes in a service area of the power 
        marketing administration; and
            ``(2) identifies--
                    ``(A) the quantity of power allocated to, or used 
                for the benefit of, Indian tribes by the Western Area 
                Power Administration;
                    ``(B) the quantity of power sold to Indian tribes 
                by any other power marketing administration; and
                    ``(C) barriers that impede tribal access to and use 
                of Federal power, including an assessment of 
                opportunities to remove those barriers and improve the 
                ability of power marketing administrations to deliver 
                Federal power.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $750,000, non-reimbursable, to 
remain available until expended.

``SEC. 2606. WIND AND HYDROPOWER FEASIBILITY STUDY.

    ``(a) Study.--The Secretary of Energy, in coordination with the 
Secretary of the Army and the Secretary, shall conduct a study of the 
cost and feasibility of developing a demonstration project that uses 
wind energy generated by Indian tribes and hydropower generated by the 
Army Corps of Engineers on the Missouri River to supply firming power 
to the Western Area Power Administration.
    ``(b) Scope of Study.--The study shall--
            ``(1) determine the feasibility of blending wind energy and 
        hydropower generated from the Missouri River dams operated by 
        the Army Corps of Engineers;
            ``(2) review historical and projected requirements for, and 
        patterns of availability and use of, firming power;
            ``(3) assess the wind energy resource potential on tribal 
        land and projected cost savings through a blend of wind and 
        hydropower over a 30-year period;
            ``(4) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation; and
            ``(5) include an independent tribal engineer as a study 
        team member.
    ``(c) Report.--Not later than 1 year after the date of enactment of 
the Energy Policy Act of 2005, the Secretary and the Secretary of the 
Army shall submit to Congress a report that describes the results of 
the study, including--
            ``(1) an analysis of the potential energy cost or benefits 
        to the customers of the Western Area Power Administration 
        through the use of combined wind and hydropower;
            ``(2) an evaluation of whether a combined wind and 
        hydropower system can reduce reservoir fluctuation, enhance 
        efficient and reliable energy production, and provide Missouri 
        River management flexibility;
            ``(3) recommendations for a demonstration project to be 
        carried out by the Western Area Power Administration, in 
        partnership with an Indian tribal government or tribal energy 
        resource development organization, to demonstrate the 
        feasibility and potential of using wind energy produced on 
        Indian land to supply firming energy to the Western Area Power 
        Administration or any other Federal power marketing agency; and
            ``(4) an identification of--
                    ``(A) the economic and environmental costs of, or 
                benefits to be realized through, a Federal-tribal 
                partnership; and
                    ``(B) the manner in which a Federal-tribal 
                partnership could contribute to the energy security of 
                the United States.
    ``(d) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $1,000,000, to 
        remain available until expended.
            ``(2) Nonreimbursability.--Costs incurred by the Secretary 
        in carrying out this section shall be nonreimbursable.''.
    (b) Conforming Amendments.--The table of contents for the Energy 
Policy Act of 1992 is amended by striking the items relating to title 
XXVI and inserting the following:

                              ``Sec. 2601. Definitions.
                              ``Sec. 2602. Indian tribal energy 
                                        resource development.
                              ``Sec. 2603. Indian tribal energy 
                                        resource regulation.
                              ``Sec. 2604. Leases, business agreements, 
                                        and rights-of-way involving 
                                        energy development or 
                                        transmission.
                              ``Sec. 2605. Federal Power Marketing 
                                        Administrations.
                              ``Sec. 2606. Wind and hydropower 
                                        feasibility study.''.

SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT AND ELECTRIFICATION.

    (a) Transmission Line Project.--The Dine Power Authority, an 
enterprise of the Navajo Nation, shall be eligible to receive grants 
and other assistance under section 217 of the Department of Energy 
Organization Act, as added by section 502, and section 2602 of the 
Energy Policy Act of 1992, as amended by this Act, for activities 
associated with the development of a transmission line from the Four 
Corners Area to southern Nevada, including related power generation 
opportunities.
    (b) Navajo Electrification.--Section 602 of Public Law 106-511 (114 
Stat. 2376) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``5-year'' 
                and inserting ``10-year''; and
                    (B) in the third sentence, by striking ``2006'' and 
                inserting ``2011''; and
            (2) in the first sentence of subsection (e) by striking 
        ``2006'' and inserting ``2011''.

SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

    (a) In General.--The Secretary of Housing and Urban Development 
shall promote energy conservation in housing that is located on Indian 
land and assisted with Federal resources through--
            (1) the use of energy-efficient technologies and 
        innovations (including the procurement of energy-efficient 
        refrigerators and other appliances);
            (2) the promotion of shared savings contracts; and
            (3) the use and implementation of such other similar 
        technologies and innovations as the Secretary of Housing and 
        Urban Development considers to be appropriate.
    (b) Amendment.--Section 202(2) of the Native American Housing and 
Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by 
inserting ``improvement to achieve greater energy efficiency,'' after 
``planning,''.

SEC. 506. CONSULTATION WITH INDIAN TRIBES.

    In carrying out this Act and the amendments made by this Act, the 
Secretary of Energy and the Secretary shall, as appropriate and to the 
maximum extent practicable, involve and consult with Indian tribes in a 
manner that is consistent with the Federal trust and the government-to-
government relationships between Indian tribes and the United States.

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

SEC. 601. SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson Amendments Act 
of 2005''.

SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is 
amended--
            (1) in the subsection heading, by striking ``Licenses'' and 
        inserting ``Licensees''; and
            (2) by striking ``December 31, 2003'' each place it appears 
        and inserting ``December 31, 2025''.
    (b) Indemnification of Department of Energy Contractors.--Section 
170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) 
is amended by striking ``December 31, 2006'' and inserting ``December 
31, 2025''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section 
170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended 
by striking ``August 1, 2002'' each place it appears and inserting 
``December 31, 2025''.

SEC. 603. MAXIMUM ASSESSMENT.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended--
            (1) in the second proviso of the third sentence of 
        subsection b.(1)--
                    (A) by striking ``$63,000,000'' and inserting 
                ``$95,800,000''; and
                    (B) by striking ``$10,000,000 in any 1 year'' and 
                inserting ``$15,000,000 in any 1 year (subject to 
                adjustment for inflation under subsection t.)''; and
            (2) in subsection t.(1)--
                    (A) by inserting ``total and annual'' after 
                ``amount of the maximum'';
                    (B) by striking ``the date of the enactment of the 
                Price-Anderson Amendments Act of 1988'' and inserting 
                ``August 20, 2003''; and
                    (C) in subparagraph (A), by striking ``such date of 
                enactment'' and inserting ``August 20, 2003''.

SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy Contractors.--Section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) (as amended 
by section 602(b)) is amended by striking paragraph (2) and inserting 
the following:
    ``(2) In an agreement of indemnification entered into under 
paragraph (1), the Secretary--
            ``(A) may require the contractor to provide and maintain 
        financial protection of such a type and in such amounts as the 
        Secretary determines to be appropriate to cover public 
        liability arising out of or in connection with the contractual 
        activity; and
            ``(B) shall indemnify the persons indemnified against the 
        liability above the amount of the financial protection 
        required, in the amount of $10,000,000,000 (subject to 
        adjustment for inflation under subsection t.) in the aggregate, 
        for all persons indemnified in connection with the contract and 
        for each nuclear incident, including such legal expenses 
        incurred by the contractor as are approved by the Secretary.''.
    (b) Contract Amendments.--Section 170 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(d)) (as amended by section 602(b)) is amended 
by striking paragraph (3) and inserting the following:
    ``(3) All agreements of indemnification under which the Department 
of Energy (or predecessor agencies) may be required to indemnify any 
person under this section shall be considered to be amended, on the 
date of enactment of the Price-Anderson Amendments Act of 2005, to 
reflect the amount of indemnity for public liability and any applicable 
financial protection required of the contractor under this 
subsection.''.
    (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
            (1) by striking ``the maximum amount of financial 
        protection required under subsection b. or''; and
            (2) by striking ``paragraph (3) of subsection d., whichever 
        amount is more'' and inserting ``paragraph (2) of subsection 
        d.''.

SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.

    (a) Amount of Indemnification.--Section 170 d.(5) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking 
``$100,000,000'' and inserting ``$500,000,000''.
    (b) Liability Limit.--Section 170 e.(4) of the Atomic Energy Act of 
1954 (42 U.S.C. 2210(e)(4)) is amended by striking ``$100,000,000'' and 
inserting ``$500,000,000''.

SEC. 606. REPORTS.

    Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) 
is amended by striking ``August 1, 1998'' and inserting ``December 31, 
2021''.

SEC. 607. INFLATION ADJUSTMENT.

    Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) 
(as amended by section 603(2)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
    ``(2) The Secretary shall adjust the amount of indemnification 
provided under an agreement of indemnification under subsection d. not 
less than once during each 5-year period following July 1, 2003, in 
accordance with the aggregate percentage change in the Consumer Price 
Index since--
            ``(A) that date, in the case of the first adjustment under 
        this paragraph; or
            ``(B) the previous adjustment under this paragraph.''.

SEC. 608. TREATMENT OF MODULAR REACTORS.

    Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) 
(as amended by section 603) is amended by adding at the end the 
following:
    ``(5)(A) For purposes of this section only, the Commission shall 
consider a combination of facilities described in subparagraph (B) to 
be a single facility having a rated capacity of 100,000 electrical 
kilowatts or more.
    ``(B) A combination of facilities referred to in subparagraph (A) 
is 2 or more facilities located at a single site, each of which has a 
rated capacity of not less than 100,000 electrical kilowatts and not 
more than 300,000 electrical kilowatts, with a combined rated capacity 
of not more than 1,300,000 electrical kilowatts.''.

SEC. 609. APPLICABILITY.

    The amendments made by sections 603, 604, and 605 do not apply to a 
nuclear incident that occurs before the date of enactment of this Act.

SEC. 610. CIVIL PENALTIES.

    (a) Repeal of Automatic Remission.--Section 234A b.(2) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by 
striking the last sentence.
    (b) Limitation for Not-for-Profit Institutions.--Section 234A of 
the Atomic Energy Act of 1954 (42 U.S.C. 2282a) is amended by striking 
subsection d. and inserting the following:
    ``d.(1) Notwithstanding subsection a., in the case of any not-for-
profit contractor, subcontractor, or supplier, the total amount of 
civil penalties paid under subsection a. may not exceed the total 
amount of fees paid within any 1-year period (as determined by the 
Secretary) under the contract under which the violation occurs.
    ``(2) In this section, the term `not-for-profit' means that no part 
of the net earnings of the contractor, subcontractor, or supplier 
inures to the benefit of any natural person or for-profit artificial 
person.''.
    (c) Effective Date.--The amendments made by this section shall not 
apply to any violation of the Atomic Energy Act of 1954 (42 U.S.C. 2011 
et seq.) occurring under a contract entered into before the date of 
enactment of this Act.

                  Subtitle B--General Nuclear Matters

SEC. 621. MEDICAL ISOTOPE PRODUCTION: NONPROLIFERATION, ANTITERRORISM, 
              AND RESOURCE REVIEW.

    (a) Definitions.--In this section:
            (1) Highly enriched uranium for medical isotope 
        production.--The term ``highly enriched uranium for medical 
        isotope production'' means highly enriched uranium contained 
        in, or for use in, targets to be irradiated for the sole 
        purpose of producing medical isotopes.
            (2) Medical isotopes.--The term ``medical isotopes'' means 
        radioactive isotopes, including molybdenum-99, that are used to 
        produce radiopharmaceuticals for diagnostic or therapeutic 
        procedures on patients.
    (b) Study.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall enter into an 
        arrangement with the National Academy of Sciences for the 
        conduct of a study of issues associated with section 134 of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2160d), including issues 
        associated with the implementation of that section.
            (2) Contents.--The study shall include an analysis of--
                    (A) the effectiveness to date of section 134 of the 
                Atomic Energy Act of 1954 (42 U.S.C. 2160d) in 
                facilitating the conversion of foreign reactor fuel and 
                targets to low-enriched uranium, which reduces the risk 
                that highly enriched uranium will be diverted and 
                stolen;
                    (B) the degree to which isotope producers that rely 
                on United States highly enriched uranium are complying 
                with the intent of section 134 of the Atomic Energy Act 
                of 1954 (42 U.S.C. 2160d) to expeditiously convert 
                targets to low-enriched uranium;
                    (C) the adequacy of physical protection and 
                material control and accounting measures at foreign 
                facilities that receive United States highly enriched 
                uranium for medical isotope production, in comparison 
                to Nuclear Regulatory Commission regulations and 
                Department administrative requirements;
                    (D) the likely consequences of an exemption of 
                highly enriched uranium exports for medical isotope 
                production from section 134(a) of the Atomic Energy Act 
                of 1954 (42 U.S.C. 2160d(a)) for--
                            (i) United States efforts to eliminate 
                        highly enriched uranium commerce worldwide 
                        through the support of the Reduced Enrichment 
                        in Research and Test Reactors program; and
                            (ii) other United States nonproliferation 
                        and antiterrorism initiatives;
                    (E) incentives that could supplement the incentives 
                of section 134 of the Atomic Energy Act of 1954 (42 
                U.S.C. 2160d) to further encourage foreign medical 
                isotope producers to convert from highly enriched 
                uranium to low-enriched uranium;
                    (F) whether implementation of section 134 of the 
                Atomic Energy Act of 1954 (42 U.S.C. 2160d) has ever 
                caused, or is likely to cause, an interruption in the 
                production and supply of medical isotopes in needed 
                quantities;
                    (G) whether the United States supply of isotopes is 
                sufficiently diversified to withstand an interruption 
                of production from any 1 supplier, and, if not, what 
                steps should be taken to diversify United States 
                supply; and
                    (H) any other aspects of implementation of section 
                134 of the Atomic Energy Act of 1954 (42 U.S.C. 2160d) 
                that have a bearing on Federal nonproliferation and 
                antiterrorism laws (including regulations) and 
                policies.
            (3) Timing; consultation.--The National Academy of Sciences 
        study shall be--
                    (A) conducted in full consultation with the 
                Secretary of State, the staff of the Reduced Enrichment 
                in Research and Test Reactors program at Argonne 
                National Laboratory, and other interested organizations 
                and individuals with expertise in nuclear 
                nonproliferation; and
                    (B) submitted to Congress not later than 18 months 
                after the date of enactment of this Act.

SEC. 622. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.

    (a) Responsibility for Activities To Provide Storage Facility.--The 
Secretary shall provide to Congress official notification of the final 
designation of an entity within the Department to have the 
responsibility of completing activities needed to provide a facility 
for safely disposing of all greater-than-Class C low-level radioactive 
waste.
    (b) Reports and Plans.--
            (1) Report on permanent disposal facility.--
                    (A) Plan regarding cost and schedule for completion 
                of eis and rod.--Not later than 1 year after the date 
                of enactment of this Act, the Secretary, in 
                consultation with Congress, shall submit to Congress a 
                report containing an estimate of the cost and a 
                proposed schedule to complete an environmental impact 
                statement and record of decision for a permanent 
                disposal facility for greater-than-Class C radioactive 
                waste.
                    (B) Analysis of alternatives.--Before the Secretary 
                makes a final decision on the disposal alternative or 
                alternatives to be implemented, the Secretary shall--
                            (i) submit to Congress a report that 
                        describes all alternatives under consideration, 
                        including all information required in the 
                        comprehensive report making recommendations for 
                        ensuring the safe disposal of all greater-than-
                        Class C low-level radioactive waste that was 
                        submitted by the Secretary to Congress in 
                        February 1987; and
                            (ii) await action by Congress.
            (2) Short-term plan for recovery and storage.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary shall 
                submit to Congress a plan to ensure the continued 
                recovery and storage of greater-than-Class C low-level 
                radioactive sealed sources that pose a security threat 
                until a permanent disposal facility is available.
                    (B) Contents.--The plan shall address estimated 
                cost, resource, and facility needs.

SEC. 623. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR 
              TERRORISM.

    (a) In General.--Section 129 of the Atomic Energy Act of 1954 (42 
U.S.C. 2158) is amended--
            (1) by inserting ``a.'' before ``No nuclear materials and 
        equipment''; and
            (2) by adding at the end the following:
    ``b.(1)(A) Notwithstanding any other provision of law, including 
section 121, and except as provided in paragraphs (2) and (3), no 
nuclear materials and equipment or sensitive nuclear technology, 
including items and assistance authorized by section 57 b. and 
regulated under part 810 of title 10, Code of Federal Regulations (or a 
successor regulation), and nuclear-related items on the Commerce 
Control List maintained under part 774 of title 15 of the Code of 
Federal Regulations (or a successor regulation), shall be exported or 
reexported, or transferred or retransferred, whether directly or 
indirectly, and no Federal agency shall issue any license, approval, or 
authorization for the export or reexport, or transfer, or retransfer, 
whether directly or indirectly, of the items or assistance described in 
this paragraph to any country the government of which has been 
identified by the Secretary of State as engaged in state sponsorship of 
terrorist activities.
    ``(B) Countries described in subparagraph (A) specifically include 
any country the government of which has been determined by the 
Secretary of State to have repeatedly provided support for acts of 
international terrorism under--
            ``(i) section 620A(a) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2371(a));
            ``(ii) section 6(j)(1) of the Export Administration Act of 
        1979 (50 U.S.C. App. 2405(j)(1)); or
            ``(iii) section 40(d) of the Arms Export Control Act (22 
        U.S.C. 2780(d)).
    ``(2) This subsection does not apply to exports, reexports, 
transfers, or retransfers of radiation monitoring technologies, 
surveillance equipment, seals, cameras, tamper-indication devices, 
nuclear detectors, monitoring systems, or equipment necessary to safely 
store, transport, or remove hazardous materials, whether such items, 
services, or information are regulated by the Department of Energy, the 
Department of Commerce, or the Commission, except to the extent that 
the technologies, equipment, seals, cameras, devices, detectors, or 
systems are available for use in the design or construction of nuclear 
reactors or nuclear weapons.
    ``(3) The President may waive the application of paragraph (1) to a 
country if the President determines and certifies to Congress that--
            ``(A) the waiver will not result in any increased risk that 
        the country receiving the waiver will acquire nuclear weapons, 
        nuclear reactors, or any materials or components of nuclear 
        weapons; and
            ``(B)(i) the government of the country has not within the 
        preceding 12-month period willfully aided or abetted the 
        international proliferation of nuclear explosive devices to 
        individuals or groups or willfully aided and abetted an 
        individual or groups in acquiring unsafeguarded nuclear 
        materials;
            ``(ii) in the judgment of the President, the government of 
        the country has provided adequate, verifiable assurances that 
        the country will cease its support for acts of international 
        terrorism;
            ``(iii) the waiver of paragraph (1) is in the vital 
        national security interest of the United States; or
            ``(iv) the waiver of paragraph (1) is essential to prevent 
        or respond to a serious radiological hazard in the country 
        receiving the waiver that may or does threaten public health 
        and safety.''.
    (b) Applicability to Exports Approved for Transfer but not 
Transferred.--Subsection b. of section 129 of Atomic Energy Act of 1954 
(as added by subsection (a)), shall apply with respect to exports that 
have been approved for transfer as of the date of enactment of this Act 
but have not yet been transferred as of that date.

SEC. 624. DECOMMISSIONING PILOT PROGRAM.

    (a) Pilot Program.--The Secretary shall establish a decommissioning 
pilot program under which the Secretary shall decommission and 
decontaminate the sodium-cooled fast breeder experimental test-site 
reactor located in northwest Arkansas, in accordance with the 
decommissioning activities contained in the report of the Department 
relating to the reactor, dated August 31, 1998.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $16,000,000.

SEC. 625. WHISTLEBLOWER PROTECTION FOR EMPLOYEES OF THE DEPARTMENT OF 
              ENERGY.

    (a) Definition of Employer.--Section 211(a)(2) of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking ``that is 
        indemnified'' and all that follows through ``12344.''; and
            (3) by adding at the end the following:
                    ``(E) the Department of Energy.''.
    (b) De Novo Judicial Determination.--Section 211(b) of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5851(b)) is amended by adding at 
the end the following:
            ``(4) De novo judicial determination.--If the Secretary 
        does not issue a final decision within 180 days after the 
        filing of a complaint under paragraph (1) and the Secretary 
        does not show that the delay is caused by the bad faith of the 
        claimant, the claimant may bring a civil action in United 
        States district court for a determination of the claim by the 
        court de novo.''.

           Subtitle C--Next Generation Nuclear Plant Project

SEC. 631. PROJECT ESTABLISHMENT.

    (a) Establishment.--The Secretary shall establish a project to be 
known as the ``Next Generation Nuclear Plant Project'' (referred to in 
this subtitle as the ``Project'').
    (b) Content.--The Project shall consist of the research, 
development, design, construction, and operation of a prototype plant, 
including a nuclear reactor that--
            (1) is based on research and development activities 
        supported by the Generation IV Nuclear Energy Systems 
        Initiative under section 942(d); and
            (2) shall be used--
                    (A) to generate electricity;
                    (B) to produce hydrogen; or
                    (C) both to generate electricity and to produce 
                hydrogen.

SEC. 632. PROJECT MANAGEMENT.

    (a) Departmental Management.--
            (1) In general.--The Project shall be managed in the 
        Department by the Office of Nuclear Energy, Science, and 
        Technology.
            (2) Generation iv nuclear energy systems program.--The 
        Secretary may combine the Project with the Generation IV 
        Nuclear Energy Systems Initiative.
            (3) Existing doe project management expertise.--The 
        Secretary may utilize capabilities for review of construction 
        projects for advanced scientific facilities within the Office 
        of Science to track the progress of the Project.
    (b) Laboratory Management.--
            (1) Lead laboratory.--The Idaho National Laboratory shall 
        be the lead National Laboratory for the Project and shall 
        collaborate with other National Laboratories, institutions of 
        higher education, other research institutes, industrial 
        researchers, and international researchers to carry out the 
        Project.
            (2) Industrial partnerships.--
                    (A) In general.--The Idaho National Laboratory 
                shall organize a consortium of appropriate industrial 
                partners that will carry out cost-shared research, 
                development, design, and construction activities, and 
                operate research facilities, on behalf of the Project.
                    (B) Cost-sharing.--Activities of industrial 
                partners funded by the Project shall be cost-shared in 
                accordance with section 1002.
                    (C) Preference.--Preference in determining the 
                final structure of the consortium or any partnerships 
                under this subtitle shall be given to a structure 
                (including designating as a lead industrial partner an 
                entity incorporated in the United States) that retains 
                United States technological leadership in the Project 
                while maximizing cost sharing opportunities and 
                minimizing Federal funding responsibilities.
            (3) Prototype plant siting.--The prototype nuclear reactor 
        and associated plant shall be sited at the Idaho National 
        Laboratory in Idaho.
            (4) Reactor test capabilities.--The Project shall use, if 
        appropriate, reactor test capabilities at the Idaho National 
        Laboratory.
            (5) Other laboratory capabilities.--The Project may use, if 
        appropriate, facilities at other National Laboratories.

SEC. 633. PROJECT ORGANIZATION.

    (a) Major Project Elements.--The Project shall consist of the 
following major program elements:
            (1) High-temperature hydrogen production technology 
        development and validation.
            (2) Energy conversion technology development and 
        validation.
            (3) Nuclear fuel development, characterization, and 
        qualification.
            (4) Materials selection, development, testing, and 
        qualification.
            (5) Reactor and balance-of-plant design, engineering, 
        safety analysis, and qualification.
    (b) Project Phases.--The Project shall be conducted in the 
following phases:
            (1) First project phase.--A first project phase shall be 
        conducted to--
                    (A) select and validate the appropriate technology 
                under subsection (a)(1);
                    (B) carry out enabling research, development, and 
                demonstration activities on technologies and components 
                under paragraphs (2) through (4) of subsection (a);
                    (C) determine whether it is appropriate to combine 
                electricity generation and hydrogen production in a 
                single prototype nuclear reactor and plant; and
                    (D) carry out initial design activities for a 
                prototype nuclear reactor and plant, including 
                development of design methods and safety analytical 
                methods and studies under subsection (a)(5).
            (2) Second project phase.--A second project phase shall be 
        conducted to--
                    (A) continue appropriate activities under 
                paragraphs (1) though (5) of subsection (a);
                    (B) develop, through a competitive process, a final 
                design for the prototype nuclear reactor and plant;
                    (C) apply for licenses to construct and operate the 
                prototype nuclear reactor from the Nuclear Regulatory 
                Commission; and
                    (D) construct and start up operations of the 
                prototype nuclear reactor and its associated hydrogen 
                or electricity production facilities.
    (c) Project Requirements.--
            (1) In general.--The Secretary shall ensure that the 
        Project is structured so as to maximize the technical 
        interchange and transfer of technologies and ideas into the 
        Project from other sources of relevant expertise, including--
                    (A) the nuclear power industry, including nuclear 
                powerplant construction firms, particularly with 
                respect to issues associated with plant design, 
                construction, and operational and safety issues;
                    (B) the chemical processing industry, particularly 
                with respect to issues relating to--
                            (i) the use of process energy for 
                        production of hydrogen; and
                            (ii) the integration of technologies 
                        developed by the Project into chemical 
                        processing environments; and
                    (C) international efforts in areas related to the 
                Project, particularly with respect to hydrogen 
                production technologies.
            (2) International collaboration.--
                    (A) In general.--The Secretary shall seek 
                international cooperation, participation, and financial 
                contributions for the Project.
                    (B) Assistance from international partners.--The 
                Secretary, through the Idaho National Laboratory, may 
                contract for assistance from specialists or facilities 
                from member countries of the Generation IV 
                International Forum, the Russian Federation, or other 
                international partners if the specialists or facilities 
                provide access to cost-effective and relevant skills or 
                test capabilities.
                    (C) Partner nations.--The Project may involve 
                demonstration of selected project objectives in a 
                partner country.
                    (D) Generation iv international forum.--The 
                Secretary shall ensure that international activities of 
                the Project are coordinated with the Generation IV 
                International Forum.
            (3) Review by nuclear energy research advisory committee.--
                    (A) In general.--The Nuclear Energy Research 
                Advisory Committee of the Department (referred to in 
                this paragraph as the ``NERAC'') shall--
                            (i) review all program plans for the 
                        Project and all progress under the Project on 
                        an ongoing basis; and
                            (ii) ensure that important scientific, 
                        technical, safety, and program management 
                        issues receive attention in the Project and by 
                        the Secretary.
                    (B) Additional expertise.--The NERAC shall 
                supplement the expertise of NERAC or appoint subpanels 
                to incorporate into the review by NERAC the relevant 
                sources of expertise described under paragraph (1).
                    (C) Initial review.--Not later than 180 days after 
                the date of enactment of this Act, the NERAC shall--
                            (i) review existing program plans for the 
                        Project in light of the recommendations of the 
                        document entitled ``Design Features and 
                        Technology Uncertainties for the Next 
                        Generation Nuclear Plant,'' dated June 30, 
                        2004; and
                            (ii) address any recommendations of the 
                        document not incorporated in program plans for 
                        the Project.
                    (D) First project phase review.--On a determination 
                by the Secretary that the appropriate activities under 
                the first project phase under subsection (b)(1) are 
                nearly complete, the Secretary shall request the NERAC 
                to conduct a comprehensive review of the Project and to 
                report to the Secretary the recommendation of NERAC 
                concerning whether the Project is ready to proceed to 
                the second project phase under subsection (b)(2).
                    (E) Transmittal of reports to congress.--Not later 
                than 60 days after receiving any report from the NERAC 
                related to the Project, the Secretary shall submit to 
                the appropriate committees of the Senate and the House 
                of Representatives a copy of the report, along with any 
                additional views of the Secretary that the Secretary 
                may consider appropriate.

SEC. 634. NUCLEAR REGULATORY COMMISSION.

    (a) In General.--In accordance with section 202 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5842), the Nuclear Regulatory 
Commission shall have licensing and regulatory authority for any 
reactor authorized under this subtitle.
    (b) Licensing Strategy.--Not later than 3 years after the date of 
enactment of this Act, the Secretary and the Chairman of the Nuclear 
Regulatory Commission shall jointly submit to the appropriate 
committees of the Senate and the House of Representatives a licensing 
strategy for the prototype nuclear reactor, including--
            (1) a description of ways in which current licensing 
        requirements relating to light-water reactors need to be 
        adapted for the types of prototype nuclear reactor being 
        considered by the Project;
            (2) a description of analytical tools that the Nuclear 
        Regulatory Commission will have to develop to independently 
        verify designs and performance characteristics of components, 
        equipment, systems, or structures associated with the prototype 
        nuclear reactor;
            (3) other research or development activities that may be 
        required on the part of the Nuclear Regulatory Commission in 
        order to review a license application for the prototype nuclear 
        reactor; and
            (4) an estimate of the budgetary requirements associated 
        with the licensing strategy.
    (c) Ongoing Interaction.--The Secretary shall seek the active 
participation of the Nuclear Regulatory Commission throughout the 
duration of the Project to--
            (1) avoid design decisions that will compromise adequate 
        safety margins in the design of the reactor or impair the 
        accessibility of nuclear safety-related components of the 
        prototype reactor for inspection and maintenance;
            (2) develop tools to facilitate inspection and maintenance 
        needed for safety purposes; and
            (3) develop risk-based criteria for any future commercial 
        development of a similar reactor architectures.

SEC. 635. PROJECT TIMELINES AND AUTHORIZATION OF APPROPRIATIONS.

    (a) Target Date to Complete the First Project Phase.--Not later 
than September 30, 2011--
            (1) the Secretary shall select the technology to be used by 
        the Project for high-temperature hydrogen production and the 
        initial design parameters for the prototype nuclear plant; or
            (2) submit to Congress a report establishing an alternative 
        date for making the selection.
    (b) Design Competition for Second Project Phase.--
            (1) In general.--The Secretary, acting through the Idaho 
        National Laboratory, shall fund not more than 4 teams for not 
        more than 2 years to develop detailed proposals for competitive 
        evaluation and selection of a single proposal for a final 
        design of the prototype nuclear reactor.
            (2) Systems integration.--The Secretary may structure 
        Project activities in the second project phase to use the lead 
        industrial partner of the competitively selected design under 
        paragraph (1) in a systems integration role for final design 
        and construction of the Project.
    (c) Target Date To Complete Project Construction.--Not later than 
September 30, 2021--
            (1) the Secretary shall complete construction and begin 
        operations of the prototype nuclear reactor and associated 
        energy or hydrogen facilities; or
            (2) submit to Congress a report establishing an alternative 
        date for completion.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for research and construction activities 
under this subtitle (including for transfer to the Nuclear Regulatory 
Commission for activities under section 634 as appropriate)--
            (1) $1,250,000,000 for the period of fiscal years 2006 
        through 2015; and
            (2) such sums as are necessary for each of fiscal years 
        2016 through 2021.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.

    Section 400AA(a)(3) of the Energy Policy and Conservation Act (42 
U.S.C. 6374(a)(3)) is amended by striking subparagraph (E) and 
inserting the following:
    ``(E)(i) Dual fueled vehicles acquired pursuant to this section 
shall be operated on alternative fuels unless the Secretary determines 
that an agency qualifies for a waiver of the requirements of this 
section for vehicles operated by the agency in a particular geographic 
area in which--
            ``(I) the alternative fuel otherwise required to be used in 
        the vehicle is not reasonably available to retail purchasers of 
        the fuel, as certified to the Secretary by the head of the 
        agency; or
            ``(II) the cost of the alternative fuel otherwise required 
        to be used in the vehicle is unreasonably more expensive 
        compared to gasoline, as certified to the Secretary by the head 
        of the agency.
    ``(ii) The Secretary shall monitor compliance with this 
subparagraph by all fleets receiving a waiver.
    ``(iii) The Secretary shall report annually to Congress on the 
extent to which the requirements of this subparagraph are being 
achieved, including information on annual reductions achieved from the 
use of petroleum-based fuels and the problems, if any, encountered in 
acquiring alternative fuels.''.

SEC. 702. FUEL USE CREDITS.

    (a) In General.--Section 312 of the Energy Policy Act of 1992 (42 
U.S.C. 13220) is amended to read as follows:

``SEC. 312. FUEL USE CREDITS.

    ``(a) Definitions.--In this section:
            ``(1) Biodiesel.--The term `biodiesel' means a diesel fuel 
        substitute produced from nonpetroleum renewable resources that 
        meets the registration requirements for fuels and fuel 
        additives established by the Environmental Protection Agency 
        under section 211 of the Clean Air Act (42 U.S.C. 7545).
            ``(2) Qualifying volume.--The term `qualifying volume' 
        means--
                    ``(A) in the case of biodiesel, when used as a 
                component of fuel containing at least 20 percent 
                biodiesel by volume--
                            ``(i) 450 gallons; or
                            ``(ii) if the Secretary determines by rule 
                        that the average annual alternative fuel use in 
                        light duty vehicles by fleets and covered 
                        persons exceeds 450 gallons or gallon 
                        equivalents, the amount of the average annual 
                        alternative fuel use; and
                    ``(B) in the case of an alternative fuel, the 
                amount of the fuel determined by the Secretary to have 
                an equivalent energy content to the amount of biodiesel 
                defined as a qualifying volume under subparagraph (A).
    ``(b) Allocation.--
            ``(1) In general.--The Secretary shall allocate 1 credit 
        under this section to a fleet or covered person for each 
        qualifying volume of alternative fuel or biodiesel purchased 
        for use in a vehicle operated by the fleet.
            ``(2) Limitation.--The Secretary may not allocate a credit 
        under this section for the purchase of an alternative fuel or 
        biodiesel that is required by Federal or State law.
            ``(3) Documentation.--A fleet or covered person seeking a 
        credit under paragraph (1) shall provide written documentation 
        to the Secretary supporting the allocation of the credit to the 
        fleet or covered person.
    ``(c) Use.--At the request of a fleet or covered person allocated a 
credit under subsection (b), the Secretary shall, for the year in which 
the purchase of a qualifying volume is made, consider the purchase to 
be the acquisition of 1 alternative fueled vehicle that the fleet or 
covered person is required to acquire under this title, title IV, or 
title V.
    ``(d) Treatment.--A credit provided to a fleet or covered person 
under this section shall be considered to be a credit under section 
508.
    ``(e) Issuance of Rule.--Not later than 180 days after the date of 
enactment of the Energy Policy Act of 2005, the Secretary shall issue a 
rule establishing procedures for the implementation of this section.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 is amended by striking the item relating to 
section 312 and inserting the following:

                              ``Sec. 312. Fuel use credits.''.

SEC. 703. INCREMENTAL COST ALLOCATION.

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

SEC. 704. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

    (a) Alternative Compliance.--Title V of the Energy Policy Act of 
1992 (42 U.S.C. 13251 et seq.) is amended--
            (1) by redesignating section 514 (42 U.S.C. 13264) as 
        section 515; and
            (2) by inserting after section 513 (42 U.S.C. 13263) the 
        following:

``SEC. 514. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any covered person subject to 
section 501 and any State subject to section 507(o) may petition the 
Secretary for a waiver of the applicable requirements of section 501 or 
507(o).
    ``(b) Grant of Waiver.--The Secretary shall grant a waiver of the 
requirements of section 501 or 507(o) on a showing that the fleet 
owned, operated, leased, or otherwise controlled by the State or 
covered person--
            ``(1) will achieve a reduction in the annual consumption of 
        petroleum fuels by the fleet equal to--
                    ``(A) the reduction in consumption of petroleum 
                that would result from 100 percent cumulative 
                compliance with the fuel use requirements of section 
                501; or
                    ``(B) in the case of an entity covered under 
                section 507(o), a reduction equal to the annual 
                consumption by the State entity of alternative fuels if 
                all of the cumulative alternative fuel vehicles of the 
                State entity given credit under section 508 were to use 
                alternative fuel 100 percent of the time; and
            ``(2) is in compliance with all applicable vehicle emission 
        standards established by the Administrator of the Environmental 
        Protection Agency under the Clean Air Act (42 U.S.C. 7401 et 
        seq.).
    ``(c) Revocation of Waiver.--The Secretary shall revoke any waiver 
granted under this section if the State or covered person fails to 
comply with subsection (b).''.
    (b) Credits.--Section 508(a) of the Energy Policy Act of 1992 (42 
U.S.C. 13258(a)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) The Secretary''; and
            (2) by adding at the end the following:
            ``(2) Not later than January 31, 2007, the Secretary 
        shall--
                    ``(A) allocate credit in an amount to be determined 
                by the Secretary for--
                            ``(i) acquisition of--
                                    ``(I) a light-duty hybrid electric 
                                vehicle;
                                    ``(II) a plug-in hybrid electric 
                                vehicle;
                                    ``(III) a fuel cell electric 
                                vehicle;
                                    ``(IV) a medium- or heavy-duty 
                                hybrid electric vehicle;
                                    ``(V) a neighborhood electric 
                                vehicle; or
                                    ``(VI) a medium- or heavy-duty 
                                dedicated vehicle; and
                            ``(ii) investment in qualified alternative 
                        fuel infrastructure or nonroad equipment, as 
                        determined by the Secretary; and
                    ``(B) allocate more than 1, but not to exceed 5, 
                credits for investment in an emerging technology 
                relating to any vehicle described in subparagraph (A) 
                to encourage--
                            ``(i) a reduction in petroleum demand;
                            ``(ii) technological advancement; and
                            ``(iii) environmental safety.''.
    (c) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by 
striking the item relating to section 514 and inserting the following:

        ``Sec. 514. Alternative compliance.
        ``Sec. 515. Authorization of appropriations.
        ``Sec. 516. Termination of authority.''.

SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUELED VEHICLE 
              PURCHASING REQUIREMENTS.

    Section 310(b)(1) of the Energy Policy Act of 1992 (42 U.S.C. 
13218(b)(1)) is amended by striking ``1 year after the date of 
enactment of this subsection'' and inserting ``February 15, 2006''.

SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZATION 
              INITIATIVE.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term eligible entity means--
                    (A) a for-profit corporation;
                    (B) a nonprofit corporation; or
                    (C) an institution of higher education.
            (2) Program.--The term ``program'' means the applied 
        research program established under subsection (b).
    (b) Establishment.--The Secretary shall establish an applied 
research program to improve technologies for the commercialization of--
            (1) a combination hybrid/flexible fuel vehicle; or
            (2) a plug-in hybrid/flexible fuel vehicle.
    (c) Grants.--In carrying out the program, the Secretary shall 
provide grants that give preference to proposals that--
            (1) achieve the greatest reduction in miles per gallon of 
        petroleum fuel consumption;
            (2) achieve not less than 250 miles per gallon of petroleum 
        fuel consumption; and
            (3) have the greatest potential of commercialization to the 
        general public within 5 years.
    (d) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall publish in the Federal 
Register procedures to verify--
            (1) the hybrid/flexible fuel vehicle technologies to be 
        demonstrated; and
            (2) that grants are administered in accordance with this 
        section.
    (e) Report.--Not later than 260 days after the date of enactment of 
this Act, and annually thereafter, the Secretary shall submit to 
Congress a report that--
            (1) identifies the grant recipients;
            (2) describes the technologies to be funded under the 
        program;
            (3) assesses the feasibility of the technologies described 
        in paragraph (2) in meeting the goals described in subsection 
        (c);
            (4) identifies applications submitted for the program that 
        were not funded; and
            (5) makes recommendations for Federal legislation to 
        achieve commercialization of the technology demonstrated.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, to remain available until 
expended--
            (1) $3,000,000 for fiscal year 2005;
            (2) $7,000,000 for fiscal year 2006;
            (3) $10,000,000 for fiscal year 2007; and
            (4) $20,000,000 for fiscal year 2008.

                   Subtitle B--Automobile Efficiency

                CHAPTER 1--MAXIMUM AVERAGE FUEL ECONOMY

SEC. 711. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE 
              AVERAGE FUEL ECONOMY.

    Section 32902(f) of title 49, United States Code, is amended to 
read as follows:
    ``(f) Considerations for Decisions on Maximum Feasible Average Fuel 
Economy.--When deciding maximum feasible average fuel economy under 
this section, the Secretary of Transportation shall consider the 
following matters:
            ``(1) Technological feasibility.
            ``(2) Economic practicability.
            ``(3) The effect of other motor vehicle standards of the 
        Government on fuel economy.
            ``(4) The need of the United States to conserve energy.
            ``(5) The desirability of reducing United States dependence 
        on imported oil.
            ``(6) The effects of the average fuel economy standards on 
        motor vehicle and passenger safety.
            ``(7) The effects of increased fuel economy on air quality.
            ``(8) The adverse effects of average fuel economy standards 
        on the relative competitiveness of manufacturers.
            ``(9) The effects of compliance with average fuel economy 
        standards on levels of employment in the United States.
            ``(10) The cost and lead time necessary for the 
        introduction of the necessary new technologies.
            ``(11) The potential for advanced technology vehicles, such 
        as hybrid and fuel cell vehicles, to contribute to the 
        achievement of significant reductions in fuel consumption.
            ``(12) The extent to which the necessity for vehicle 
        manufacturers to incur near-term costs to comply with the 
        average fuel economy standards adversely affects the 
        availability of resources for the development of advanced 
        technology for the propulsion of motor vehicles.
            ``(13) The report of the National Research Council that is 
        entitled `Effectiveness and Impact of Corporate Average Fuel 
        Economy Standards', issued in January 2002.''.

SEC. 712. INCREASED FUEL ECONOMY STANDARDS.

    (a) New Regulations Required.--
            (1) Non-passenger automobiles.--
                    (A) Requirement for new regulations.--The Secretary 
                of Transportation shall issue, under section 32902 of 
                title 49, United States Code, new regulations setting 
                forth increased average fuel economy standards for non-
                passenger automobiles. The regulations shall be 
                determined on the basis of the maximum feasible average 
                fuel economy levels for the non-passenger automobiles, 
                taking into consideration the matters set forth in 
                subsection (f) of such section. The new regulations 
                under this paragraph shall apply for model years after 
                the 2007 model year, subject to subsection (b).
                    (B) Time for issuing regulations.--The Secretary of 
                Transportation shall issue the final regulations under 
                subparagraph (A) not later than April 1, 2006.
            (2) Passenger automobiles.--
                    (A) Requirement for new regulations.--The Secretary 
                of Transportation shall issue, under section 32902 of 
                title 49, United States Code, new regulations setting 
                forth increased average fuel economy standards for 
                passenger automobiles. The regulations shall be 
                determined on the basis of the maximum feasible average 
                fuel economy levels for the passenger automobiles, 
                taking into consideration the matters set forth in 
                subsection (f) of such section.
                    (B) Time for issuing regulations.--The Secretary of 
                Transportation shall issue the final regulations under 
                subparagraph (A) not later than 2\1/2\ years after the 
                date of the enactment of this Act.
    (b) Phased Increases.--The regulations issued pursuant to 
subsection (a) shall specify standards that take effect successively 
over several vehicle model years not exceeding 15 vehicle model years.
    (c) Clarification of Authority To Amend Passenger Automobile 
Standard.--Section 32902(b) of title 49, United States Code, is amended 
by inserting before the period at the end the following: ``or such 
other number as the Secretary prescribes under subsection (c)''.
    (d) Environmental Assessment.--When issuing final regulations 
setting forth increased average fuel economy standards under section 
32902(a) or section 32902(c) of title 49, United States Code, the 
Secretary of Transportation shall also issue an environmental 
assessment of the effects of the increased standards on the environment 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $5,000,000 for each of 
fiscal years 2006 through 2010 for carrying out this section and for 
administering the regulations issued pursuant to this section.

SEC. 713. EXPEDITED PROCEDURES FOR CONGRESSIONAL INCREASE IN FUEL 
              ECONOMY STANDARDS.

    (a) Condition for Applicability.--If the Secretary of 
Transportation fails to issue final regulations with respect to non-
passenger automobiles under section 712, or fails to issue final 
regulations with respect to passenger automobiles under such section, 
on or before the date by which such final regulations are required by 
such section to be issued, respectively, then this section shall apply 
with respect to a bill described in subsection (b).
    (b) Bill.--A bill referred to in this subsection is a bill that 
satisfies the following requirements:
            (1) Introduction.--The bill is introduced by one or more 
        Members of Congress not later than 60 days after the date 
        referred to in subsection (a).
            (2) Title.--The title of the bill is as follows: ``A bill 
        to establish new average fuel economy standards for certain 
        motor vehicles.''.
            (3) Text.--The bill provides after the enacting clause only 
        the text specified in subparagraph (A) or (B) or any provision 
        described in subparagraph (C), as follows:
                    (A) Non-passenger automobiles.--In the case of a 
                bill relating to a failure timely to issue final 
                regulations relating to non-passenger automobiles, the 
                following text:
``That, section 32902 of title 49, United States Code, is amended by 
adding at the end the following new subsection:
    ```(_) Non-passenger automobiles.--The average fuel economy 
standard for non-passenger automobiles manufactured by a manufacturer 
in a model year after model year __ shall be __ miles per gallon.''', 
the first blank space being filled in with a subsection designation, 
the second blank space being filled in with the number of a year, and 
the third blank space being filled in with a number.
                    (B) Passenger automobiles.--In the case of a bill 
                relating to a failure timely to issue final regulations 
                relating to passenger automobiles, the following text:
``That, section 32902(b) of title 49, United States Code, is amended to 
read as follows:
    ```(b) Passenger Automobiles.--Except as provided in this section, 
the average fuel economy standard for passenger automobiles 
manufactured by a manufacturer in a model year after model year __ 
shall be __ miles per gallon.''', the first blank space being filled in 
with the number of a year and the second blank space being filled in 
with a number.
                    (C) Substitute text.--Any text substituted by an 
                amendment that is in order under subsection (c)(3).
    (c) Expedited Procedures.--A bill described in subsection (b) shall 
be considered in a House of Congress in accordance with the procedures 
provided for the consideration of joint resolutions in paragraphs (3) 
through (8) of section 8066(c) of the Department of Defense 
Appropriations Act, 1985 (as contained in section 101(h) of Public Law 
98-473; 98 Stat. 1936), with the following exceptions:
            (1) References to resolution.--The references in such 
        paragraphs to a resolution shall be deemed to refer to the bill 
        described in subsection (b).
            (2) Committees of jurisdiction.--The committees to which 
        the bill is referred under this subsection shall--
                    (A) in the Senate, be the Committee on Commerce, 
                Science, and Transportation; and
                    (B) in the House of Representatives, be the 
                Committee on Energy and Commerce.
            (3) Amendments.--
                    (A) Amendments in order.--Only four amendments to 
                the bill are in order in each House, as follows:
                            (i) Two amendments proposed by the majority 
                        leader of that House.
                            (ii) Two amendments proposed by the 
                        minority leader of that House.
                    (B) Form and content.--To be in order under 
                subparagraph (A), an amendment shall propose to strike 
                all after the enacting clause and substitute text that 
                only includes the same text as is proposed to be 
                stricken except for one or more different numbers in 
                the text.
                    (C) Debate, et cetera.--Subparagraph (B) of section 
                8066(c)(5) of the Department of Defense Appropriations 
                Act, 1985 (98 Stat. 1936) shall apply to the 
                consideration of each amendment proposed under this 
                paragraph in the same manner as such subparagraph (B) 
                applies to debatable motions.

SEC. 714. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE 
              FUELED VEHICLES.

    (a) Manufacturing Incentives.--Section 32905 of title 49, United 
States Code, is amended--
            (1) in subsections (b) and (d), by striking ``1993-2004'' 
        and inserting ``1993-2008'';
            (2) in subsection (f), by striking ``2001'' and inserting 
        ``2007''; and
            (3) in subsection (f)(1), by striking ``2004'' and 
        inserting ``2008''.
    (b) Extension of Maximum Fuel Economy Increase.--Section 
32906(a)(1) of title 49, United States Code, is amended--
            (1) in subparagraph (A), by striking ``1993-2004'' and 
        inserting ``1993 through 2008''; and
            (2) in subparagraph (B), by striking ``2005-2008'' and 
        inserting ``2009 through 2012''.

                   CHAPTER 2--ADVANCED CLEAN VEHICLES

SEC. 721. HYBRID VEHICLES RESEARCH AND DEVELOPMENT.

    (a) Rechargeable Energy Storage Systems and Other Technologies.--
The Secretary of Energy shall accelerate research and development 
directed toward the improvement of batteries and other rechargeable 
energy storage systems, power electronics, hybrid systems integration, 
and other technologies for use in hybrid vehicles.
    (b) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for each of fiscal years 2006, 2007, and 2008 in the 
amount $50,000,000 for research and development activities under this 
section.

SEC. 722. DIESEL FUELED VEHICLES RESEARCH AND DEVELOPMENT.

    (a) Diesel Combustion and After Treatment Technologies.--The 
Secretary of Energy shall accelerate research and development directed 
toward the improvement of diesel combustion and after treatment 
technologies for use in diesel fueled motor vehicles.
    (b) Goals.--The Secretary shall carry out subsection (a) with a 
view to achieving the following goals:
            (1) Compliance with certain emission standards by 2010.--
        Developing and demonstrating diesel technologies that, not 
        later than 2010, meet the following standards:
                    (A) Tier-2 emission standards.--The tier 2 emission 
                standards.
                    (B) Heavy-duty emission standards of 2007.--The 
                heavy-duty emission standards of 2007.
            (2) Post-2010 highly efficient technologies.--Developing 
        the next generation of low emissions, high efficiency diesel 
        engine technologies, including homogeneous charge compression 
        ignition technology.
    (c) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for each of fiscal years 2006, 2007, and 2008 in the 
amount of $75,000,000 for research and development of advanced 
combustion engines and advanced fuels.

SEC. 723. PROCUREMENT OF ALTERNATIVE FUELED PASSENGER AUTOMOBILES.

    (a) Vehicle Fleets Not Covered by Requirement in Energy Policy Act 
of 1992.--The head of each agency of the executive branch shall 
coordinate with the Administrator of General Services to ensure that 
only alternative fueled vehicles are procured by or for each agency 
fleet of passenger automobiles that is not in a fleet of vehicles to 
which section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) 
applies.
    (b) Waiver Authority.--The head of an agency, in consultation with 
the Administrator, may waive the applicability of the policy regarding 
the procurement of alternative fueled vehicles in subsection (a) to--
            (1) the procurement for such agency of any vehicles 
        described in subparagraphs (A) through (F) of section 303(b)(3) 
        of the Energy Policy Act of 1992 (42 U.S.C. 13212(b)(3)); or
            (2) a procurement of vehicles for such agency if the 
        procurement of alternative fueled vehicles cannot meet the 
        requirements of the agency for vehicles due to insufficient 
        availability of the alternative fuel used to power such 
        vehicles.
    (c) Applicability to Procurements After Fiscal Year 2005.--This 
subsection applies with respect to procurements of alternative fueled 
vehicles in fiscal year 2006 and subsequent fiscal years.

SEC. 724. PROCUREMENT OF HYBRID LIGHT DUTY TRUCKS.

    (a) Vehicle Fleets Not Covered by Requirement in Energy Policy Act 
of 1992.--
            (1) Hybrid vehicles.--The head of each agency of the 
        executive branch shall coordinate with the Administrator of 
        General Services to ensure that only hybrid vehicles are 
        procured by or for each agency fleet of light duty trucks that 
        is not in a fleet of vehicles to which section 303 of the 
        Energy Policy Act of 1992 (42 U.S.C. 13212) applies.
            (2) Waiver authority.--The head of an agency, in 
        consultation with the Administrator, may waive the 
        applicability of the policy regarding the procurement of hybrid 
        vehicles in paragraph (1) to that agency to the extent that the 
        head of that agency determines necessary--
                    (A) to meet specific requirements of the agency for 
                capabilities of light duty trucks;
                    (B) to procure vehicles consistent with the 
                standards applicable to the procurement of fleet 
                vehicles for the Federal Government;
                    (C) to adjust to limitations on the commercial 
                availability of light duty trucks that are hybrid 
                vehicles; or
                    (D) to avoid the necessity of procuring a hybrid 
                vehicle for the agency when each of the hybrid vehicles 
                available for meeting the requirements of the agency 
                has a cost to the United States that exceeds the costs 
                of comparable nonhybrid vehicles by a factor that is 
                significantly higher than the difference between--
                            (i) the real cost of the hybrid vehicle to 
                        retail purchasers, taking into account the 
                        benefit of any tax incentives available to 
                        retail purchasers for the purchase of the 
                        hybrid vehicle; and
                            (ii) the costs of the comparable nonhybrid 
                        vehicles to retail purchasers.
            (3) Applicability to procurements after fiscal year 2005.--
        This subsection applies with respect to procurements of light 
        duty trucks in fiscal year 2006 and subsequent fiscal years.
    (b) Inapplicability to Department of Defense.--This section does 
not apply to the Department of Defense, which is subject to comparable 
requirements under section 318 of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1055; 10 U.S.C. 
2302 note).

SEC. 725. DEFINITIONS.

    In this chapter:
            (1) Alternative fueled vehicle.--The term ``alternative 
        fueled vehicle'' means--
                    (A) an alternative fueled vehicle, as defined in 
                section 301(3) of the Energy Policy Act of 1992 (42 
                U.S.C. 13211(3));
                    (B) a motor vehicle that operates on a blend of 
                fuel that is at least 20 percent (by volume) biodiesel, 
                as defined in section 312(f) of the Energy Policy Act 
                of 1992 (42 U.S.C. 13220(f)); and
                    (C) a motor vehicle that operates on a blend of 
                fuel that is at least 20 percent (by volume) bioderived 
                hydrocarbons (including aliphatic compounds) produced 
                from agricultural and animal waste.
            (2) Heavy-duty emission standards of 2007.--The term 
        ``heavy-duty emission standards of 2007'' means the motor 
        vehicle emission standards promulgated by the Administrator of 
        the Environmental Protection Agency on January 18, 2001, under 
        section 202 of the Clean Air Act to apply to heavy-duty 
        vehicles of model years beginning with the 2007 vehicle model 
        year.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' means--
                    (A) a motor vehicle that draws propulsion energy 
                from on board sources of stored energy that are both--
                            (i) an internal combustion or heat engine 
                        using combustible fuel; and
                            (ii) a rechargeable energy storage system; 
                        and
                    (B) any other vehicle that is defined as a hybrid 
                vehicle in regulations prescribed by the Secretary of 
                Energy for the administration of title III of the 
                Energy Policy Act of 1992.
            (4) Motor vehicle.--The term ``motor vehicle'' means any 
        vehicle that is manufactured primarily for use on public 
        streets, roads, and highways (not including a vehicle operated 
        exclusively on a rail or rails) and that has at least four 
        wheels.
            (5) Tier 2 emission standards defined.--The term ``tier 2 
        emission standards'' means the motor vehicle emission standards 
        promulgated by the Administrator of the Environmental 
        Protection Agency on February 10, 2000, under section 202 of 
        the Clean Air Act (42 U.S.C. 7521) to apply to passenger 
        automobiles, light trucks, and larger passenger vehicles of 
        model years after the 2003 vehicle model year.
            (6) Terms defined in epa regulations.--The terms 
        ``passenger automobile'' and ``light truck'' have the meanings 
        given such terms in regulations prescribed by the Administrator 
        of the Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).

                       Subtitle C--Miscellaneous

SEC. 731. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary shall (in cooperation with the 
Secretary of Transportation and the Administrator of the Environmental 
Protection Agency) establish a cost-shared, public-private research 
partnership involving the Federal Government, railroad carriers, 
locomotive manufacturers and equipment suppliers, and the Association 
of American Railroads, to develop and demonstrate railroad locomotive 
technologies that increase fuel economy, reduce emissions, and lower 
costs of operation.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            (1) $25,000,000 for fiscal year 2006;
            (2) $35,000,000 for fiscal year 2007; and
            (3) $50,000,000 for fiscal year 2008.

SEC. 732. CONSERVE BY BICYCLING PROGRAM.

    (a) Definitions.--In this section:
            (1) Program.--The term ``program'' means the Conserve by 
        Bicycling Program established by subsection (b).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
    (b) Establishment.--There is established within the Department of 
Transportation a program to be known as the ``Conserve by Bicycling 
Program''.
    (c) Projects.--
            (1) In general.--In carrying out the program, the Secretary 
        shall establish not more than 10 pilot projects that are--
                    (A) dispersed geographically throughout the United 
                States; and
                    (B) designed to conserve energy resources by 
                encouraging the use of bicycles in place of motor 
                vehicles.
            (2) Requirements.--A pilot project described in paragraph 
        (1) shall--
                    (A) use education and marketing to convert motor 
                vehicle trips to bicycle trips;
                    (B) document project results and energy savings (in 
                estimated units of energy conserved);
                    (C) facilitate partnerships among interested 
                parties in at least 2 of the fields of--
                            (i) transportation;
                            (ii) law enforcement;
                            (iii) education;
                            (iv) public health;
                            (v) environment; and
                            (vi) energy;
                    (D) maximize bicycle facility investments;
                    (E) demonstrate methods that may be used in other 
                regions of the United States; and
                    (F) facilitate the continuation of ongoing programs 
                that are sustained by local resources.
            (3) Cost sharing.--At least 20 percent of the cost of each 
        pilot project described in paragraph (1) shall be provided from 
        non-Federal sources.
    (d) Energy and Bicycling Research Study.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall enter into a 
        contract with the National Academy of Sciences for, and the 
        National Academy of Sciences shall conduct and submit to 
        Congress a report on, a study on the feasibility of converting 
        motor vehicle trips to bicycle trips.
            (2) Components.--The study shall--
                    (A) document the results or progress of the pilot 
                projects under subsection (c);
                    (B) determine the type and duration of motor 
                vehicle trips that people in the United States may 
                feasibly make by bicycle, taking into consideration 
                factors such as--
                            (i) weather;
                            (ii) land use and traffic patterns;
                            (iii) the carrying capacity of bicycles; 
                        and
                            (iv) bicycle infrastructure;
                    (C) determine any energy savings that would result 
                from the conversion of motor vehicle trips to bicycle 
                trips;
                    (D) include a cost-benefit analysis of bicycle 
                infrastructure investments; and
                    (E) include a description of any factors that would 
                encourage more motor vehicle trips to be replaced with 
                bicycle trips.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $6,200,000, to 
remain available until expended, of which--
            (1) $5,150,000 shall be used to carry out pilot projects 
        described in subsection (c);
            (2) $300,000 shall be used by the Secretary to coordinate, 
        publicize, and disseminate the results of the program; and
            (3) $750,000 shall be used to carry out subsection (d).

SEC. 733. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Advanced truck stop electrification system.--The term 
        ``advanced truck stop electrification system'' means a 
        stationary system that delivers heat, air conditioning, 
        electricity, and communications, and is capable of providing 
        verifiable and auditable evidence of use of those services, to 
        a heavy-duty vehicle and any occupants of the heavy-duty 
        vehicle without relying on components mounted onboard the 
        heavy-duty vehicle for delivery of those services.
            (3) Auxiliary power unit.--The term ``auxiliary power 
        unit'' means an integrated system that--
                    (A) provides heat, air conditioning, engine 
                warming, and electricity to the factory-installed 
                components on a heavy-duty vehicle as if the main drive 
                engine of the heavy-duty vehicle were running; and
                    (B) is certified by the Administrator under part 89 
                of title 40, Code of Federal Regulations (or any 
                successor regulation), as meeting applicable emission 
                standards.
            (4) Heavy-duty vehicle.--The term ``heavy-duty vehicle'' 
        means a vehicle that--
                    (A) has a gross vehicle weight rating greater than 
                12,500 pounds; and
                    (B) is powered by a diesel engine.
            (5) Idle reduction technology.--The term ``idle reduction 
        technology'' means an advanced truck stop electrification 
        system, auxiliary power unit, or other device or system of 
        devices that--
                    (A) is used to reduce long-duration idling of a 
                heavy-duty vehicle; and
                    (B) allows for the main drive engine or auxiliary 
                refrigeration engine of a heavy-duty vehicle to be shut 
                down.
            (6) Long-duration idling.--
                    (A) In general.--The term ``long-duration idling'' 
                means the operation of a main drive engine or auxiliary 
                refrigeration engine of a heavy-duty vehicle, for a 
                period greater than 15 consecutive minutes, at a time 
                at which the main drive engine is not engaged in gear.
                    (B) Exclusions.--The term ``long-duration idling'' 
                does not include the operation of a main drive engine 
                or auxiliary refrigeration engine of a heavy-duty 
                vehicle during a routine stoppage associated with 
                traffic movement or congestion.
    (b) Idle Reduction Technology Benefits, Programs, and Studies.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall--
                    (A)(i) commence a review of the mobile source air 
                emission models of the Environmental Protection Agency 
                used under the Clean Air Act (42 U.S.C. 7401 et seq.) 
                to determine whether the models accurately reflect the 
                emissions resulting from long-duration idling of heavy-
                duty vehicles and other vehicles and engines; and
                    (ii) update those models as the Administrator 
                determines to be appropriate; and
                    (B)(i) commence a review of the emission reductions 
                achieved by the use of idle reduction technology; and
                    (ii) complete such revisions of the regulations and 
                guidance of the Environmental Protection Agency as the 
                Administrator determines to be appropriate.
            (2) Deadline for completion.--Not later than 180 days after 
        the date of enactment of this Act, the Administrator shall--
                    (A) complete the reviews under subparagraphs (A)(i) 
                and (B)(i) of paragraph (1); and
                    (B) prepare and make publicly available 1 or more 
                reports on the results of the reviews.
            (3) Discretionary inclusions.--The reviews under 
        subparagraphs (A)(i) and (B)(i) of paragraph (1) and the 
        reports under paragraph (2)(B) may address the potential fuel 
        savings resulting from use of idle reduction technology.
            (4) Idle reduction deployment program.--
                    (A) Establishment.--
                            (i) In general.--Not later than 90 days 
                        after the date of enactment of this Act, the 
                        Administrator, in consultation with the 
                        Secretary of Transportation, shall establish a 
                        program to support deployment of idle reduction 
                        technology.
                            (ii) Priority.--The Administrator shall 
                        give priority to the deployment of idle 
                        reduction technology based on beneficial 
                        effects on air quality and ability to lessen 
                        the emission of criteria air pollutants.
                    (B) Funding.--
                            (i) Authorization of appropriations.--There 
                        are authorized to be appropriated to the 
                        Administrator to carry out subparagraph (A)--
                                    (I) $19,500,000 for fiscal year 
                                2006;
                                    (II) $30,000,000 for fiscal year 
                                2007; and
                                    (III) $45,000,000 for fiscal year 
                                2008.
                            (ii) Cost sharing.--Subject to clause 
                        (iii), the Administrator shall require at least 
                        50 percent of the costs directly and 
                        specifically related to any project under this 
                        section to be provided from non-Federal 
                        sources.
                            (iii) Necessary and appropriate 
                        reductions.--The Administrator may reduce the 
                        non-Federal requirement under clause (ii) if 
                        the Administrator determines that the reduction 
                        is necessary and appropriate to meet the 
                        objectives of this section.
            (5) Idling location study.--
                    (A) In general.--Not later than 90 days after the 
                date of enactment of this Act, the Administrator, in 
                consultation with the Secretary of Transportation, 
                shall commence a study to analyze all locations at 
                which heavy-duty vehicles stop for long-duration 
                idling, including--
                            (i) truck stops;
                            (ii) rest areas;
                            (iii) border crossings;
                            (iv) ports;
                            (v) transfer facilities; and
                            (vi) private terminals.
                    (B) Deadline for completion.--Not later than 180 
                days after the date of enactment of this Act, the 
                Administrator shall--
                            (i) complete the study under subparagraph 
                        (A); and
                            (ii) prepare and make publicly available 1 
                        or more reports of the results of the study.
    (c) Vehicle Weight Exemption.--Section 127(a) of title 23, United 
States Code, is amended--
            (1) by designating the first through eleventh sentences as 
        paragraphs (1) through (11), respectively; and
            (2) by adding at the end the following:
            ``(12) Heavy duty vehicles.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), in order to promote reduction of fuel use and 
                emissions because of engine idling, the maximum gross 
                vehicle weight limit and the axle weight limit for any 
                heavy-duty vehicle equipped with an idle reduction 
                technology shall be increased by a quantity necessary 
                to compensate for the additional weight of the idle 
                reduction system.
                    ``(B) Maximum weight increase.--The weight increase 
                under subparagraph (A) shall be not greater than 250 
                pounds.
                    ``(C) Proof.--On request by a regulatory agency or 
                law enforcement agency, the vehicle operator shall 
                provide proof (through demonstration or certification) 
                that--
                            ``(i) the idle reduction technology is 
                        fully functional at all times; and
                            ``(ii) the 250-pound gross weight increase 
                        is not used for any purpose other than the use 
                        of idle reduction technology described in 
                        subparagraph (A).''.

SEC. 734. BIODIESEL ENGINE TESTING PROJECT.

    (a) Definition of Biodiesel.--In this section, the term 
``biodiesel'' means a diesel fuel substitute produced from nonpetroleum 
renewable resources that meets--
            (1) the registration requirements for fuels and fuel 
        additives established under section 211 of the Clean Air Act 
        (42 U.S.C. 7545); and
            (2) the American Society for Testing and Materials Standard 
        D6751-02a ``Standard Specification for Biodiesel Fuel (B100) 
        Blend Stock for Distillate Fuels''.
    (b) Program.--Not later than 180 days after the date of enactment 
of this Act, the Secretary shall initiate a project, in partnership 
with diesel engine, diesel fuel injection system, and diesel vehicle 
manufacturers and diesel and biodiesel fuel providers, to provide 
biodiesel testing in advanced diesel engine and fuel system technology.
    (c) Scope.--The project shall provide for testing to determine the 
impact of biodiesel on current and future emission control 
technologies, with emphasis on--
            (1) the impact of biodiesel on emissions warranty, in-use 
        liability, and anti-tampering provisions;
            (2) the impact of long-term use of biodiesel on engine 
        operations;
            (3) the options for optimizing those technologies for both 
        emissions and performance when switching between biodiesel and 
        diesel fuel; and
            (4) the impact of using biodiesel in those fueling systems 
        and engines when used as a blend with diesel fuel containing a 
        maximum of 15-parts-per-million sulfur content, as mandated by 
        the Administrator of the Environmental Protection Agency during 
        2006.
    (d) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the 
results of the project, including--
            (1) a comprehensive analysis of impacts from biodiesel on 
        engine operation for both existing and expected future diesel 
        technologies; and
            (2) recommendations for ensuring optimal emissions 
        reductions and engine performance with biodiesel.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2008.

SEC. 735. INVESTIGATION OF GASOLINE PRICES.

    (a) Investigation.--Not later than 90 days after the date of 
enactment of this Act, the Federal Trade Commission shall conduct an 
investigation to determine if the price of gasoline is being 
artificially manipulated by reducing refinery capacity or by any other 
form of market manipulation or price gouging practices.
    (b) Evaluation and Analysis.--The Secretary shall direct the 
National Petroleum Council to conduct an evaluation and analysis to 
determine whether, and to what extent, environmental and other 
regulations affect new domestic refinery construction and significant 
expansion of existing refinery capacity.
    (c) Reports to Congress.--
            (1) Investigation.--On completion of the investigation 
        under subsection (a), the Federal Trade Commission shall submit 
        to Congress a report that describes--
                    (A) the results of the investigation; and
                    (B) any recommendations of the Federal Trade 
                Commission.
            (2) Evaluation and analysis.--On completion of the 
        evaluation and analysis under subsection (b), the Secretary 
        shall submit to Congress a report that describes--
                    (A) the results of the evaluation and analysis; and
                    (B) any recommendations of the National Petroleum 
                Council.

               Subtitle D--Federal and State Procurement

SEC. 741. DEFINITIONS.

    In this subtitle:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Fuel cell.--The term ``fuel cell'' means a device that 
        directly converts the chemical energy of a fuel and an oxidant 
        into electricity by electrochemical processes occurring at 
        separate electrodes in the device.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (4) Stationary; portable.--The terms ``stationary'' and 
        ``portable'', when used in reference to a fuel cell, include--
                    (A) continuous electric power; and
                    (B) backup electric power.
            (5) Task force.--The term ``Task Force'' means the Hydrogen 
        and Fuel Cell Technical Task Force established under section 
        102(a) of the Spark M. Matsunaga Hydrogen Research, 
        Development, and Demonstration Act of 1990 (as amended by 
        section 801).
            (6) Technical advisory committee.--The term ``Technical 
        Advisory Committee'' means the independent Technical Advisory 
        Committee selected under section 102(d) of the Spark M. 
        Matsunaga Hydrogen Research, Development, and Demonstration Act 
        of 1990 (as added by section 801).

SEC. 742. FEDERAL AND STATE PROCUREMENT OF FUEL CELL VEHICLES AND 
              HYDROGEN ENERGY SYSTEMS.

    (a) Purposes.--The purposes of this section are--
            (1) to stimulate acceptance by the market of fuel cell 
        vehicles and hydrogen energy systems;
            (2) to support development of technologies relating to fuel 
        cell vehicles, public refueling stations, and hydrogen energy 
        systems; and
            (3) to require the Federal government, which is the largest 
        single user of energy in the United States, to adopt those 
        technologies as soon as practicable after the technologies are 
        developed, in conjunction with private industry partners.
    (b) Federal Leases and Purchases.--
            (1) Requirement.--
                    (A) In general.--Not later than January 1, 2010, 
                the head of any Federal agency that uses a light-duty 
                or heavy-duty vehicle fleet shall lease or purchase 
                fuel cell vehicles and hydrogen energy systems to meet 
                any applicable energy savings goal described in 
                subsection (c).
                    (B) Learning demonstration vehicles.--The Secretary 
                may lease or purchase appropriate vehicles developed 
                under section 201 of the Spark M. Matsunaga Hydrogen 
                Research, Development, and Demonstration Act of 1990 
                (as added by section 801) to meet the requirement in 
                subparagraph (A).
            (2) Costs of leases and purchases.--
                    (A) In general.--The Secretary, in cooperation with 
                the Task Force and the Technical Advisory Committee, 
                shall pay to Federal agencies (or share the cost under 
                interagency agreements) the difference in cost 
                between--
                            (i) the cost to the agencies of leasing or 
                        purchasing fuel cell vehicles and hydrogen 
                        energy systems under paragraph (1); and
                            (ii) the cost to the agencies of a feasible 
                        alternative to leasing or purchasing fuel cell 
                        vehicles and hydrogen energy systems, as 
                        determined by the Secretary.
                    (B) Competitive costs and management structures.--
                In carrying out subparagraph (A), the Secretary, in 
                consultation with the agency, may use the General 
                Services Administration or any commercial vendor to 
                ensure--
                            (i) a cost-effective purchase of a fuel 
                        cell vehicle or hydrogen energy system; or
                            (ii) a cost-effective management structure 
                        of the lease of a fuel cell vehicle or hydrogen 
                        energy system.
            (3) Exception.--
                    (A) In general.--If the Secretary determines that 
                the head of an agency described in paragraph (1) cannot 
                find an appropriately efficient and reliable fuel cell 
                vehicle or hydrogen energy system in accordance with 
                paragraph (1), that agency shall be excepted from 
                compliance with paragraph (1).
                    (B) Consideration.--In making a determination under 
                subparagraph (A), the Secretary shall consider--
                            (i) the needs of the agency; and
                            (ii) an evaluation performed by--
                                    (I) the Task Force; or
                                    (II) the Technical Advisory 
                                Committee.
    (c) Energy Savings Goals.--
            (1) In general.--
                    (A) Regulations.--Not later than December 31, 2006, 
                the Secretary shall--
                            (i) in cooperation with the Task Force, 
                        promulgate regulations for the period of 2008 
                        through 2010 that extend and augment energy 
                        savings goals for each Federal agency, in 
                        accordance with any Executive order issued 
                        after March 2000; and
                            (ii) promulgate regulations to expand the 
                        minimum Federal fleet requirement and credit 
                        allowances for fuel cell vehicle systems under 
                        section 303 of the Energy Policy Act of 1992 
                        (42 U.S.C. 13212).
                    (B) Review, evaluation, and new regulations.--Not 
                later than December 31, 2010, the Secretary shall--
                            (i) review the regulations promulgated 
                        under subparagraph (A);
                            (ii) evaluate any progress made toward 
                        achieving energy savings by Federal agencies; 
                        and
                            (iii) promulgate new regulations for the 
                        period of 2011 through 2015 to achieve 
                        additional energy savings by Federal agencies 
                        relating to technical and cost-performance 
                        standards.
            (2) Offsetting energy savings goals.--An agency that leases 
        or purchases a fuel cell vehicle or hydrogen energy system in 
        accordance with subsection (b)(1) may use that lease or 
        purchase to count toward an energy savings goal of the agency.
    (d) Cooperative Program With State Agencies.--
            (1) In general.--The Secretary may establish a cooperative 
        program with State agencies managing motor vehicle fleets to 
        encourage purchase of fuel cell vehicles by the agencies.
            (2) Incentives.--In carrying out the cooperative program, 
        the Secretary may offer incentive payments to a State agency to 
        assist with the cost of planning, differential purchases, and 
        administration.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $15,000,000 for fiscal year 2008;
            (2) $25,000,000 for fiscal year 2009;
            (3) $65,000,000 for fiscal year 2010; and
            (4) such sums as are necessary for each of fiscal years 
        2011 through 2015.

SEC. 743. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND MICRO FUEL 
              CELLS.

    (a) Purposes.--The purposes of this section are--
            (1) to stimulate acceptance by the market of stationary, 
        portable, and micro fuel cells; and
            (2) to support development of technologies relating to 
        stationary, portable, and micro fuel cells.
    (b) Federal Leases and Purchases.--
            (1) In general.--Not later than January 1, 2006, the head 
        of any Federal agency that uses electrical power from 
        stationary, portable, or microportable devices shall lease or 
        purchase a stationary, portable, or micro fuel cell to meet any 
        applicable energy savings goal described in subsection (c).
            (2) Costs of leases and purchases.--
                    (A) In general.--The Secretary, in cooperation with 
                the Task Force and the Technical Advisory Committee, 
                shall pay the cost to Federal agencies (or share the 
                cost under interagency agreements) of leasing or 
                purchasing stationary, portable, and micro fuel cells 
                under paragraph (1).
                    (B) Competitive costs and management structures.--
                In carrying out subparagraph (A), the Secretary, in 
                consultation with the agency, may use the General 
                Services Administration or any commercial vendor to 
                ensure--
                            (i) a cost-effective purchase of a 
                        stationary, portable, or micro fuel cell; or
                            (ii) a cost-effective management structure 
                        of the lease of a stationary, portable, or 
                        micro fuel cell.
            (3) Exception.--
                    (A) In general.--If the Secretary determines that 
                the head of an agency described in paragraph (1) cannot 
                find an appropriately efficient and reliable 
                stationary, portable, or micro fuel cell in accordance 
                with paragraph (1), that agency shall be excepted from 
                compliance with paragraph (1).
                    (B) Consideration.--In making a determination under 
                subparagraph (A), the Secretary shall consider--
                            (i) the needs of the agency; and
                            (ii) an evaluation performed by--
                                    (I) the Task Force; or
                                    (II) the Technical Advisory 
                                Committee of the Task Force.
    (c) Energy Savings Goals.--An agency that leases or purchases a 
stationary, portable, or micro fuel cell in accordance with subsection 
(b)(1) may use that lease or purchase to count toward an energy savings 
goal described in section 732(c)(1) that is applicable to the agency.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 2006;
            (2) $50,000,000 for fiscal year 2007;
            (3) $75,000,000 for fiscal year 2008;
            (4) $100,000,000 for fiscal year 2009;
            (5) $100,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal years 
        2011 through 2015.

                 Subtitle E--Diesel Emissions Reduction

SEC. 751. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Certified engine configuration.--The term ``certified 
        engine configuration'' means a new, rebuilt, or remanufactured 
        engine configuration--
                    (A) that has been certified or verified by--
                            (i) the Administrator; or
                            (ii) the California Air Resources Board;
                    (B) that meets or is rebuilt or remanufactured to a 
                more stringent set of engine emission standards, as 
                determined by the Administrator; and
                    (C) in the case of a certified engine configuration 
                involving the replacement of an existing engine or 
                vehicle, an engine configuration that replaced an 
                engine that was--
                            (i) removed from the vehicle; and
                            (ii) returned to the supplier for 
                        remanufacturing to a more stringent set of 
                        engine emissions standards or for scrappage.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a regional, State, local, or tribal agency with 
                jurisdiction over transportation or air quality; and
                    (B) a nonprofit organization or institution that--
                            (i) represents organizations that own or 
                        operate diesel fleets; or
                            (ii) has, as its principal purpose, the 
                        promotion of transportation or air quality.
            (4) Emerging technology.--The term ``emerging technology'' 
        means a technology that is not certified or verified by the 
        Administrator or the California Air Resources Board but for 
        which an approvable application and test plan has been 
        submitted for verification to the Administrator or the 
        California Air Resources Board.
            (5) Heavy-duty truck.--The term ``heavy-duty truck'' has 
        the meaning given the term ``heavy duty vehicle'' in section 
        202 of the Clean Air Act (42 U.S.C. 7521).
            (6) Medium-duty truck.--The term ``medium-duty truck'' has 
        such meaning as shall be determined by the Administrator, by 
        regulation.
            (7) Verified technology.--The term ``verified technology'' 
        means a pollution control technology, including a retrofit 
        technology, that has been verified by--
                    (A) the Administrator; or
                    (B) the California Air Resources Board.

SEC. 752. NATIONAL GRANT AND LOAN PROGRAMS.

    (a) In General.--The Administrator shall use 70 percent of the 
funds made available to carry out this subtitle for each fiscal year to 
provide grants and low-cost revolving loans, as determined by the 
Administrator, on a competitive basis, to eligible entities to achieve 
significant reductions in diesel emissions in terms of--
            (1) tons of pollution produced; and
            (2) diesel emissions exposure, particularly from fleets 
        operating in areas designated by the Administrator as poor air 
        quality areas.
    (b) Distribution.--
            (1) In general.--The Administrator shall distribute funds 
        made available for a fiscal year under this subtitle in 
        accordance with this section.
            (2) Fleets.--The Administrator shall provide not less than 
        50 percent of funds available for a fiscal year under this 
        section to eligible entities for the benefit of public fleets.
            (3) Engine configurations and technologies.--
                    (A) Certified engine configurations and verified 
                technologies.--The Administrator shall provide not less 
                than 90 percent of funds available for a fiscal year 
                under this section to eligible entities for projects 
                using--
                            (i) a certified engine configuration; or
                            (ii) a verified technology.
                    (B) Emerging technologies.--
                            (i) In general.--The Administrator shall 
                        provide not more than 10 percent of funds 
                        available for a fiscal year under this section 
                        to eligible entities for the development and 
                        commercialization of emerging technologies.
                            (ii) Application and test plan.--To receive 
                        funds under clause (i), a manufacturer, in 
                        consultation with an eligible entity, shall 
                        submit for verification to the Administrator or 
                        the California Air Resources Board a test plan 
                        for the emerging technology, together with the 
                        application under subsection (c).
    (c) Applications.--
            (1) In general.--To receive a grant or loan under this 
        section, an eligible entity shall submit to the Administrator 
        an application at a time, in a manner, and including such 
        information as the Administrator may require.
            (2) Inclusions.--An application under this subsection shall 
        include--
                    (A) a description of the air quality of the area 
                served by the eligible entity;
                    (B) the quantity of air pollution produced by the 
                diesel fleet in the area served by the eligible entity;
                    (C) a description of the project proposed by the 
                eligible entity, including--
                            (i) any certified engine configuration, 
                        verified technology, or emerging technology to 
                        be used by the eligible entity; and
                            (ii) the means by which the project will 
                        achieve a significant reduction in diesel 
                        emissions;
                    (D) an evaluation (using methodology approved by 
                the Administrator or the National Academy of Sciences) 
                of the quantifiable and unquantifiable benefits of the 
                emissions reductions of the proposed project;
                    (E) an estimate of the cost of the proposed 
                project;
                    (F) a description of the age and expected lifetime 
                control of the equipment used by the eligible entity;
                    (G) a description of the diesel fuel available to 
                the eligible entity, including the sulfur content of 
                the fuel; and
                    (H) provisions for the monitoring and verification 
                of the project.
            (3) Priority.--In providing a grant or loan under this 
        section, the Administrator shall give priority to proposed 
        projects that, as determined by the Administrator--
                    (A) maximize public health benefits;
                    (B) are the most cost-effective;
                    (C) serve areas--
                            (i) with the highest population density;
                            (ii) that are poor air quality areas, 
                        including areas identified by the Administrator 
                        as--
                                    (I) in nonattainment or maintenance 
                                of national ambient air quality 
                                standards for a criteria pollutant;
                                    (II) Federal Class I areas; or
                                    (III) areas with toxic air 
                                pollutant concerns;
                            (iii) that receive a disproportionate 
                        quantity of air pollution from a diesel fleet, 
                        including ports, rail yards, and distribution 
                        centers; or
                            (iv) that use a community-based 
                        multistakeholder collaborative process to 
                        reduce toxic emissions;
                    (D) include a certified engine configuration, 
                verified technology, or emerging technology that has a 
                long expected useful life;
                    (E) will maximize the useful life of any retrofit 
                technology used by the eligible entity; and
                    (F) use diesel fuel with a sulfur content of less 
                than or equal to 15 parts per million, as the 
                Administrator determines to be appropriate.
    (d) Use of Funds.--
            (1) In general.--An eligible entity may use a grant or loan 
        provided under this section to fund the costs of--
                    (A) a retrofit technology (including any 
                incremental costs of a repowered or new diesel engine) 
                that significantly reduces emissions through 
                development and implementation of a certified engine 
                configuration, verified technology, or emerging 
                technology for--
                            (i) a bus;
                            (ii) a medium-duty truck or a heavy-duty 
                        truck;
                            (iii) a marine engine;
                            (iv) a locomotive; or
                            (v) a nonroad engine or vehicle used in--
                                    (I) construction;
                                    (II) handling of cargo (including 
                                at a port or airport);
                                    (III) agriculture;
                                    (IV) mining; or
                                    (V) energy production; or
                    (B) an idle-reduction program involving a vehicle 
                or equipment described in subparagraph (A).
            (2) Regulatory programs.--
                    (A) In general.--Notwithstanding paragraph (1), no 
                grant or loan provided under this section shall be used 
                to fund the costs of emissions reductions that are 
                mandated under Federal, State or local law.
                    (B) Mandated.--For purposes of subparagraph (A), 
                voluntary or elective emission reduction measures shall 
                not be considered ``mandated'', regardless of whether 
                the reductions are included in the State implementation 
                plan of a State.

SEC. 753. STATE GRANT AND LOAN PROGRAMS.

    (a) In General.--Subject to the availability of adequate 
appropriations, the Administrator shall use 30 percent of the funds 
made available for a fiscal year under this subtitle to support grant 
and loan programs administered by States that are designed to achieve 
significant reductions in diesel emissions.
    (b) Applications.--The Administrator shall--
            (1) provide to States guidance for use in applying for 
        grant or loan funds under this section, including information 
        regarding--
                    (A) the process and forms for applications;
                    (B) permissible uses of funds received; and
                    (C) the cost-effectiveness of various emission 
                reduction technologies eligible to be carried out using 
                funds provided under this section; and
            (2) establish, for applications described in paragraph 
        (1)--
                    (A) an annual deadline for submission of the 
                applications;
                    (B) a process by which the Administrator shall 
                approve or disapprove each application; and
                    (C) a streamlined process by which a State may 
                renew an application described in paragraph (1) for 
                subsequent fiscal years.
    (c) Allocation of Funds.--
            (1) In general.--For each fiscal year, the Administrator 
        shall allocate among States for which applications are approved 
        by the Administrator under subsection (b)(2)(B) funds made 
        available to carry out this section for the fiscal year.
            (2) Allocation.--Using not more than 20 percent of the 
        funds made available to carry out this subtitle for a fiscal 
        year, the Administrator shall provide to each State described 
        in paragraph (1) for the fiscal year an allocation of funds 
        that is equal to--
                    (A) if each of the 50 States qualifies for an 
                allocation, an amount equal to 2 percent of the funds 
                made available to carry out this section; or
                    (B) if fewer than 50 States qualifies for an 
                allocation, an amount equal to the amount described in 
                subparagraph (A), plus an additional amount equal to 
                the product obtained by multiplying--
                            (i) the proportion that--
                                    (I) the population of the State; 
                                bears to
                                    (II) the population of all States 
                                described in paragraph (1); by
                            (ii) the amount of funds remaining after 
                        each State described in paragraph (1) receives 
                        the 2-percent allocation under this paragraph.
            (3) State matching incentive.--
                    (A) In general.--If a State agrees to match the 
                allocation provided to the State under paragraph (2) 
                for a fiscal year, the Administrator shall provide to 
                the State for the fiscal year an additional amount 
                equal to 50 percent of the allocation of the State 
                under paragraph (2).
                    (B) Requirements.--A State--
                            (i) may not use funds received under this 
                        subtitle to pay a matching share required under 
                        this subsection; and
                            (ii) shall not be required to provide a 
                        matching share for any additional amount 
                        received under subparagraph (A).
            (4) Unclaimed funds.--Any funds that are not claimed by a 
        State for a fiscal year under this subsection shall be used to 
        carry out section 742.
    (d) Administration.--
            (1) In general.--Subject to paragraphs (2) and (3) and, to 
        the extent practicable, the priority areas listed in section 
        742(c)(3), a State shall use any funds provided under this 
        section to develop and implement such grant and low-cost 
        revolving loan programs in the State as are appropriate to meet 
        State needs and goals relating to the reduction of diesel 
        emissions.
            (2) Apportionment of funds.--The Governor of a State that 
        receives funding under this section may determine the portion 
        of funds to be provided as grants or loans.
            (3) Use of funds.--A grant or loan provided under this 
        section may be used for a project relating to--
                    (A) a certified engine configuration; or
                    (B) a verified technology.

SEC. 754. EVALUATION AND REPORT.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, and biennially thereafter, the Administrator shall submit 
to Congress a report evaluating the implementation of the programs 
under this subtitle.
    (b) Inclusions.--The report shall include a description of--
            (1) the total number of grant applications received;
            (2) each grant or loan made under this subtitle, including 
        the amount of the grant or loan;
            (3) each project for which a grant or loan is provided 
        under this subtitle, including the criteria used to select the 
        grant or loan recipients;
            (4) the estimated air quality benefits, cost-effectiveness, 
        and cost-benefits of the grant and loan programs under this 
        subtitle;
            (5) the problems encountered by projects for which a grant 
        or loan is provided under this subtitle; and
            (6) any other information the Administrator considers to be 
        appropriate.

SEC. 755. OUTREACH AND INCENTIVES.

    (a) Definition of Eligible Technology.--In this section, the term 
``eligible technology'' means--
            (1) a verified technology; or
            (2) an emerging technology.
    (b) Technology Transfer Program.--
            (1) In general.--The Administrator shall establish a 
        program under which the Administrator--
                    (A) informs stakeholders of the benefits of 
                eligible technologies; and
                    (B) develops nonfinancial incentives to promote the 
                use of eligible technologies.
            (2) Eligible stakeholders.--Eligible stakeholders under 
        this section include--
                    (A) equipment owners and operators;
                    (B) emission control technology manufacturers;
                    (C) engine and equipment manufacturers;
                    (D) State and local officials responsible for air 
                quality management;
                    (E) community organizations; and
                    (F) public health and environmental organizations.
    (c) State Implementation Plans.--The Administrator shall develop 
appropriate guidance to provide credit to a State for emission 
reductions in the State created by the use of eligible technologies 
through a State implementation plan under section 110 of the Clean Air 
Act (42 U.S.C. 7410).
    (d) International Markets.--The Administrator, in coordination with 
the Department of Commerce and industry stakeholders, shall inform 
foreign countries with air quality problems of the potential of 
technology developed or used in the United States to provide emission 
reductions in those countries.

SEC. 756. EFFECT OF SUBTITLE.

    Nothing in this subtitle affects any authority under the Clean Air 
Act (42 U.S.C. 7401 et seq.) in existence on the day before the date of 
enactment of this Act.

SEC. 757. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$200,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.

                          TITLE VIII--HYDROGEN

SEC. 801. HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION.

    The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended to read 
as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 
1990'.
    ``(b) Table of Contents.--The table of contents of this Act is as 
follows:

        ``Sec. 1. Short title; table of contents.
        ``Sec. 2. Purposes.
        ``Sec. 3. Definitions.

                   ``TITLE I--HYDROGEN AND FUEL CELLS

        ``Sec. 101. Hydrogen and fuel cell technology research and 
                            development.
        ``Sec. 102. Task Force.
        ``Sec. 103. Technology transfer.
        ``Sec. 104. Authorization of appropriations.

            ``TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

        ``Sec. 201. Hydrogen Supply and Fuel Cell Demonstration 
                            Program.
        ``Sec. 202. Authorization of appropriations.

                   ``TITLE III--REGULATORY MANAGEMENT

        ``Sec. 301. Codes and standards.
        ``Sec. 302. Disclosure.
        ``Sec. 303. Authorization of appropriations.

                          ``TITLE IV--REPORTS

        ``Sec. 401. Deployment of hydrogen technology.
        ``Sec. 402. Authorization of appropriations.

                  ``TITLE V--TERMINATION OF AUTHORITY

        ``Sec. 501. Termination of authority.

``SEC. 2. PURPOSES.

    ``The purposes of this Act are--
            ``(1) to enable and promote comprehensive development, 
        demonstration, and commercialization of hydrogen and fuel cell 
        technology in partnership with industry;
            ``(2) to make critical public investments in building 
        strong links to private industry, institutions of higher 
        education, National Laboratories, and research institutions to 
        expand innovation and industrial growth;
            ``(3) to build a mature hydrogen economy that creates fuel 
        diversity in the massive transportation sector of the United 
        States;
            ``(4) to sharply decrease the dependency of the United 
        States on imported oil, eliminate most emissions from the 
        transportation sector, and greatly enhance our energy security; 
        and
            ``(5) to create, strengthen, and protect a sustainable 
        national energy economy.

``SEC. 3. DEFINITIONS.

    ``In this Act:
            ``(1) Department.--The term `Department' means the 
        Department of Energy.
            ``(2) Fuel cell.--The term `fuel cell' means a device that 
        directly converts the chemical energy of a fuel, which is 
        supplied from an external source, and an oxidant into 
        electricity by electrochemical processes occurring at separate 
        electrodes in the device.
            ``(3) Heavy-duty vehicle.--The term `heavy-duty vehicle' 
        means a motor vehicle that--
                    ``(A) is rated at more than 8,500 pounds gross 
                vehicle weight;
                    ``(B) has a curb weight of more than 6,000 pounds; 
                or
                    ``(C) has a basic vehicle frontal area in excess of 
                45 square feet.
            ``(4) Infrastructure.--The term `infrastructure' means the 
        equipment, systems, or facilities used to produce, distribute, 
        deliver, or store hydrogen (except for onboard storage).
            ``(5) Light-duty vehicle.--The term `light-duty vehicle' 
        means a motor vehicle that is rated at 8,500 or less pounds 
        gross vehicle weight.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
            ``(7) Stationary; portable.--The terms `stationary' and 
        `portable', when used in reference to a fuel cell, include--
                    ``(A) continuous electric power; and
                    ``(B) backup electric power.
            ``(8) Task force.--The term `Task Force' means the Hydrogen 
        and Fuel Cell Technical Task Force established under section 
        102(a).
            ``(9) Technical advisory committee.--The term `Technical 
        Advisory Committee' means the independent Technical Advisory 
        Committee of the Task Force selected under section 102(d).

                   ``TITLE I--HYDROGEN AND FUEL CELLS

``SEC. 101. HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT.

    ``(a) In General.--The Secretary, in consultation with other 
Federal agencies and the private sector, shall conduct a research and 
development program on technologies relating to the production, 
purification, distribution, storage, and use of hydrogen energy, fuel 
cells, and related infrastructure.
    ``(b) Goal.--The goal of the program shall be to demonstrate and 
commercialize the use of hydrogen for transportation (in light-duty 
vehicles and heavy-duty vehicles), utility, industrial, commercial and 
residential applications.
    ``(c) Focus.--In carrying out activities under this section, the 
Secretary shall focus on factors that are common to the development of 
hydrogen infrastructure and the supply of vehicle and electric power 
for critical consumer and commercial applications, and that achieve 
continuous technical evolution and cost reduction, particularly for 
hydrogen production, the supply of hydrogen, storage of hydrogen, and 
end uses of hydrogen that--
            ``(1) steadily increase production, distribution, and end 
        use efficiency and reduce life-cycle emissions;
            ``(2) resolve critical problems relating to catalysts, 
        membranes, storage, lightweight materials, electronic controls, 
        manufacturability, and other problems that emerge from research 
        and development;
            ``(3) enhance sources of renewable fuels and biofuels for 
        hydrogen production; and
            ``(4) enable widespread use of distributed electricity 
        generation and storage.
    ``(d) Public Education and Research.--In carrying out this section, 
the Secretary shall support enhanced public education and research 
conducted at institutions of higher education in fundamental sciences, 
application design, and systems concepts (including education and 
research relating to materials, subsystems, manufacturability, 
maintenance, and safety) relating to hydrogen and fuel cells.
    ``(e) Cost Sharing.--The costs of carrying out projects and 
activities under this section shall be shared in accordance with 
section 1002 of the Energy Policy Act of 2005.

``SEC. 102. TASK FORCE.

    ``(a) Establishment.--The Secretary, in consultation with the 
Director of the Office of Science and Technology Policy, shall 
establish an interagency Task Force, to be known as the `Hydrogen and 
Fuel Cell Technical Task Force' to advise the Secretary in carrying out 
programs under this Act.
    ``(b) Membership.--The Task Force shall be comprised of such 
representatives of the Office of Science and Technology Policy, the 
Environmental Protection Agency, the Department of Transportation, the 
Department of Defense, the National Aeronautics and Space 
Administration, and such other Federal employees, as the Secretary, in 
consultation with the Director of the Office of Science and Technology 
Policy, determines to be appropriate.
    ``(c) Duties.--The Task Force shall review and make any necessary 
recommendations to the Secretary on implementation and conduct of 
programs under this Act.
    ``(d) Technical Advisory Committee.--
            ``(1) In general.--The Secretary shall select such number 
        of members as the Secretary considers to be appropriate to form 
        an independent, nonpolitical Technical Advisory Committee.
            ``(2) Membership.--Each member of the Technical Advisory 
        Committee shall have scientific, technical, or industrial 
        expertise, as determined by the Secretary.
            ``(3) Duties.--The Technical Advisory Committee shall 
        provide technical advice and assistance to the Task Force and 
        the Secretary.

``SEC. 103. TECHNOLOGY TRANSFER.

    ``In carrying out this Act, the Secretary shall carry out programs 
that--
            ``(1) provide for the transfer of critical hydrogen and 
        fuel cell technologies to the private sector;
            ``(2) accelerate wider application of those technologies in 
        the global market;
            ``(3) foster the exchange of generic, nonproprietary 
        information; and
            ``(4) assess technical and commercial viability of 
        technologies relating to the production, distribution, storage, 
        and use of hydrogen energy and fuel cells.

``SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Hydrogen Supply.--There are authorized to be appropriated to 
carry out projects and activities relating to hydrogen production, 
storage, distribution and dispensing, transport, education and 
coordination, and technology transfer under this title--
            ``(1) $160,000,000 for fiscal year 2006;
            ``(2) $200,000,000 for fiscal year 2007;
            ``(3) $220,000,000 for fiscal year 2008;
            ``(4) $230,000,000 for fiscal year 2009;
            ``(5) $250,000,000 for fiscal year 2010; and
            ``(6) such sums as are necessary for each of fiscal years 
        2011 through 2015.
    ``(b) Fuel Cell Technologies.--There are authorized to be 
appropriated to carry out projects and activities relating to fuel cell 
technologies under this title--
            ``(1) $150,000,000 for fiscal year 2006;
            ``(2) $160,000,000 for fiscal year 2007;
            ``(3) $170,000,000 for fiscal year 2008;
            ``(4) $180,000,000 for fiscal year 2009;
            ``(5) $200,000,000 for fiscal year 2010; and
            ``(6) such sums as are necessary for each of fiscal years 
        2011 through 2015.

            ``TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

``SEC. 201. HYDROGEN SUPPLY AND FUEL CELL DEMONSTRATION PROGRAM.

    ``(a) In General.--The Secretary, in consultation with the Task 
Force and the Technical Advisory Committee, shall carry out a program 
to demonstrate developmental hydrogen and fuel cell systems for mobile, 
portable, and stationary uses, using improved versions of the learning 
demonstrations program concept of the Department including 
demonstrations involving--
            ``(1) light-duty vehicles;
            ``(2) heavy-duty vehicles;
            ``(3) fleet vehicles;
            ``(4) specialty industrial and farm vehicles; and
            ``(5) commercial and residential portable, continuous, and 
        backup electric power generation.
    ``(b) Other Demonstration Programs.--To develop widespread hydrogen 
supply and use options, and assist evolution of technology, the 
Secretary shall--
            ``(1) carry out demonstrations of evolving hydrogen and 
        fuel cell technologies in national parks, remote island areas, 
        and on Indian tribal land, as selected by the Secretary;
            ``(2) in accordance with any code or standards developed in 
        a region, fund prototype, pilot fleet, and infrastructure 
        regional hydrogen supply corridors along the interstate highway 
        system in varied climates across the United States; and
            ``(3) fund demonstration programs that explore the use of 
        hydrogen blends, hybrid hydrogen, and hydrogen reformed from 
        renewable agricultural fuels, including the use of hydrogen in 
        hybrid electric, heavier duty, and advanced internal 
        combustion-powered vehicles.
    ``(c) System Demonstrations.--
            ``(1) In general.--As a component of the demonstration 
        program under this section, the Secretary shall provide grants, 
        on a cost share basis as appropriate, to eligible entities (as 
        determined by the Secretary) for use in--
                    ``(A) devising system design concepts that provide 
                for the use of advanced composite vehicles in programs 
                under section 732 of the Energy Policy Act of 2005 
                that--
                            ``(i) have as a primary goal the reduction 
                        of drive energy requirements;
                            ``(ii) after 2010, add another research and 
                        development phase to the vehicle and 
                        infrastructure partnerships developed under the 
                        learning demonstrations program concept of the 
                        Department; and
                            ``(iii) are managed through an enhanced 
                        FreedomCAR program within the Department that 
                        encourages involvement in cost-shared projects 
                        by manufacturers and governments; and
                    ``(B) designing a local distributed energy system 
                that--
                            ``(i) incorporates renewable hydrogen 
                        production, off-grid electricity production, 
                        and fleet applications in industrial or 
                        commercial service;
                            ``(ii) integrates energy or applications 
                        described in clause (i), such as stationary, 
                        portable, micro, and mobile fuel cells, into a 
                        high-density commercial or residential building 
                        complex or agricultural community; and
                            ``(iii) is managed in cooperation with 
                        industry, State, tribal, and local governments, 
                        agricultural organizations, and nonprofit 
                        generators and distributors of electricity.
            ``(2) Cost sharing.--The costs of carrying out a project or 
        activity under this subsection shall be shared in accordance 
        with section 1002 of the Energy Policy Act of 2005.
    ``(d) Identification of New Research and Development 
Requirements.--In carrying out the demonstrations under subsection (a), 
the Secretary, in consultation with the Task Force and the Technical 
Advisory Committee, shall--
            ``(1) after 2008 for stationary and portable applications, 
        and after 2010 for vehicles, identify new research and 
        development requirements that refine technological concepts, 
        planning, and applications; and
            ``(2) during the second phase of the learning 
        demonstrations under subsection (c)(1)(A)(ii) redesign 
        subsequent research and development to incorporate those 
        requirements.

``SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title--
            ``(1) $185,000,000 for fiscal year 2006;
            ``(2) $200,000,000 for fiscal year 2007;
            ``(3) $250,000,000 for fiscal year 2008;
            ``(4) $300,000,000 for fiscal year 2009;
            ``(5) $375,000,000 for fiscal year 2010; and
            ``(6) such sums as are necessary for each of fiscal years 
        2011 through 2015.

                   ``TITLE III--REGULATORY MANAGEMENT

``SEC. 301. CODES AND STANDARDS.

    ``(a) In General.--The Secretary, in cooperation with the Task 
Force, shall provide grants to, or offer to enter into contracts with 
such professional organizations, public service organizations, and 
government agencies as the Secretary determines appropriate to support 
timely and extensive development of safety codes and standards relating 
to fuel cell vehicles, hydrogen energy systems, and stationary, 
portable, and micro fuel cells.
    ``(b) Educational Efforts.--The Secretary shall support educational 
efforts by organizations and agencies described in subsection (a) to 
share information, including information relating to best practices, 
among those organizations and agencies.

``SEC. 302. DISCLOSURE.

    ``Section 623 of the Energy Policy Act of 1992 (42 U.S.C. 13293) 
shall apply to any project carried out through a grant, cooperative 
agreement, or contract under this Act.

``SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title--
            ``(1) $4,000,000 for fiscal year 2006;
            ``(2) $7,000,000 for fiscal year 2007;
            ``(3) $8,000,000 for fiscal year 2008;
            ``(4) $10,000,000 for fiscal year 2009;
            ``(5) $9,000,000 for fiscal year 2010; and
            ``(6) such sums as are necessary for each of fiscal years 
        2011 and 2012.

                          ``TITLE IV--REPORTS

``SEC. 401. DEPLOYMENT OF HYDROGEN TECHNOLOGY.

    ``(a) Secretary.--Subject to subsection (c), not later than 2 years 
after the date of enactment of the Hydrogen and Fuel Cell Technology 
Act of 2005, and triennially thereafter, the Secretary shall submit to 
Congress a report describing--
            ``(1) any activity carried out by the Department of Energy 
        under this Act, including a research, development, 
        demonstration, and commercial application program for hydrogen 
        and fuel cell technology;
            ``(2) measures the Secretary has taken during the preceding 
        3 years to support the transition of primary industry (or a 
        related industry) to a fully commercialized hydrogen economy;
            ``(3) any change made to a research, development, or 
        deployment strategy of the Secretary relating to hydrogen and 
        fuel cell technology to reflect the results of a learning 
        demonstration under title II;
            ``(4) progress, including progress in infrastructure, made 
        toward achieving the goal of producing and deploying not less 
        than--
                    ``(A) 100,000 hydrogen-fueled vehicles in the 
                United States by 2010; and
                    ``(B) 2,500,000 hydrogen-fueled vehicles by 2020;
            ``(5) progress made toward achieving the goal of supplying 
        hydrogen at a sufficient number of fueling stations in the 
        United States by 2010 can be achieved by integrating--
                    ``(A) hydrogen activities; and
                    ``(B) associated targets and timetables for the 
                development of hydrogen technologies;
            ``(6) any problem relating to the design, execution, or 
        funding of a program under this Act;
            ``(7) progress made toward and goals achieved in carrying 
        out this Act and updates to the developmental roadmap, 
        including the results of the reviews conducted by the National 
        Academy of Sciences under subsection (b) for the fiscal years 
        covered by the report; and
            ``(8) any updates to strategic plans that are necessary to 
        meet the goals described in paragraph (4).
    ``(b) National Academy of Sciences.--
            ``(1) In general.--The Secretary shall enter into an 
        arrangement with the National Academy of Sciences to conduct 
        and submit to the Secretary, not later than September 30, 2007, 
        and triennially thereafter--
                    ``(A) the results of a review of the projects and 
                activities carried out under this Act;
                    ``(B) recommendations for any new authorities or 
                resources needed to achieve strategic goals; and
                    ``(C) recommendations for approaches by which the 
                Secretary could achieve a substantial decrease in the 
                dependence on and consumption of natural gas and 
                imported oil by the Federal Government, including by 
                increasing the use of fuel cell vehicles, stationary 
                and portable fuel cells, and hydrogen energy systems.
            ``(2) Reauthorization.--The Secretary shall use the results 
        of reviews conducted under paragraph (1) in proposing to 
        Congress any legislative changes relating to reauthorization of 
        this Act.

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
$1,500,000 for each of fiscal years 2006 through 2010.

                  ``TITLE V--TERMINATION OF AUTHORITY

``SEC. 501. TERMINATION OF AUTHORITY.

    ``This Act and the authority provided by this Act terminate on 
September 30, 2015.''.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2005''.

SEC. 902. GOALS.

    (a) In General.--In order to achieve the purposes of this title, 
the Secretary shall conduct a balanced set of programs of energy 
research, development, demonstration, and commercial application 
focused on--
            (1) increasing the efficiency of all energy intensive 
        sectors through conservation and improved technologies;
            (2) promoting diversity of energy supply;
            (3) decreasing the dependence of the United States on 
        foreign energy supplies;
            (4) improving the energy security of the United States; and
            (5) decreasing the environmental impact of energy-related 
        activities.
    (b) Goals.--The Secretary shall publish measurable cost and 
performance-based goals with each annual budget submission in at least 
the following areas:
            (1) Energy efficiency for buildings, energy-consuming 
        industries, and vehicles.
            (2) Electric energy generation (including distributed 
        generation), transmission, and storage.
            (3) Renewable energy technologies, including wind power, 
        photovoltaics, solar thermal systems, geothermal energy, 
        hydrogen-fueled systems, biomass-based systems, biofuels, and 
        hydropower.
            (4) Fossil energy, including power generation, onshore and 
        offshore oil and gas resource recovery, and transportation.
            (5) Nuclear energy, including programs for existing and 
        advanced reactors, and education of future specialists.
    (c) Public Comment.--The Secretary shall provide mechanisms for 
input on the annually published goals from industry, institutions of 
higher education, and other public sources.
    (d) Effect of Goals.--Nothing in subsection (a) or the annually 
published goals creates any new authority for any Federal agency, or 
may be used by any Federal agency, to support the establishment of 
regulatory standards or regulatory requirements.

SEC. 903. DEFINITIONS.

    In this title:
            (1) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the Secretary by 
        the Department of Energy Organization Act (42 U.S.C. 7101 et 
        seq.) or other law.
            (2) Hispanic-serving institution.--The term ``Hispanic-
        serving institution'' has the meaning given the term in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).
            (3) Nonmilitary energy laboratory.--The term ``nonmilitary 
        energy laboratory'' means a National Laboratory other than a 
        National Laboratory listed in subparagraph (G), (H), or (N) of 
        section 2(3).
            (4) Part b institution.--The term ``part B institution'' 
        has the meaning given the term in section 322 of the Higher 
        Education Act of 1965 (20 U.S.C. 1061).
            (5) Single-purpose research facility.--The term ``single-
        purpose research facility'' means--
                    (A) any of the primarily single-purpose entities 
                owned by the Department; or
                    (B) any other organization of the Department 
                designated by the Secretary.

                     Subtitle A--Energy Efficiency

SEC. 911. ENERGY EFFICIENCY.

    (a) In General.--There are authorized to be appropriated to the 
Secretary to carry out energy efficiency and conservation research, 
development, demonstration, and commercial application activities, 
including activities authorized under this subtitle--
            (1) $772,000,000 for fiscal year 2006;
            (2) $865,000,000 for fiscal year 2007; and
            (3) $920,000,000 for fiscal year 2008.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under section 912, $50,000,000 for each 
        of fiscal years 2006 through 2008.
            (2) For activities under section 914, $7,000,000 for each 
        of fiscal years 2006 through 2008.
            (3) For activities under section 915--
                    (A) $30,000,000 for fiscal year 2006;
                    (B) $35,000,000 for fiscal year 2007; and
                    (C) $40,000,000 for fiscal year 2008.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary to carry out section 912 $50,000,000 for 
each of fiscal years 2009 through 2013.
    (d) Limitations.--None of the funds authorized to be appropriated 
under this section may be used for--
            (1) the issuance or implementation of energy efficiency 
        regulations;
            (2) the weatherization program established under part A of 
        title IV of the Energy Conservation and Production Act (42 
        U.S.C. 6861 et seq.);
            (3) a State energy conservation plan established under part 
        D of title III of the Energy Policy and Conservation Act (42 
        U.S.C. 6321 et seq.); or
            (4) a Federal energy management measure carried out under 
        part 3 of title V of the National Energy Conservation Policy 
        Act (42 U.S.C. 8251 et seq.).

SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.

    (a) Definitions.--In this section:
            (1) Advanced solid-state lighting.--The term ``advanced 
        solid-state lighting'' means a semiconducting device package 
        and delivery system that produces white light using externally 
        applied voltage.
            (2) Industry alliance.--The term ``Industry Alliance'' 
        means an entity selected by the Secretary under subsection (d).
            (3) Initiative.--The term ``Initiative'' means the Next 
        Generation Lighting Initiative carried out under this section.
            (4) Research.--The term ``research'' includes research on 
        the technologies, materials, and manufacturing processes 
        required for white light emitting diodes.
            (5) White light emitting diode.--The term ``white light 
        emitting diode'' means a semiconducting package, using either 
        organic or inorganic materials, that produces white light using 
        externally applied voltage.
    (b) Initiative.--The Secretary shall carry out a Next Generation 
Lighting Initiative in accordance with this section to support 
research, development, demonstration, and commercial application 
activities related to advanced solid-state lighting technologies based 
on white light emitting diodes.
    (c) Objectives.--The objectives of the Initiative shall be to 
develop advanced solid-state organic and inorganic lighting 
technologies based on white light emitting diodes that, compared to 
incandescent and fluorescent lighting technologies, are longer lasting, 
are more energy-efficient and cost-competitive, and have less 
environmental impact.
    (d) Industry Alliance.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall competitively select an 
Industry Alliance to represent participants who are private, for-profit 
firms, including large and small businesses, that, as a group, are 
broadly representative of United States solid state lighting research, 
development, infrastructure, and manufacturing expertise as a whole.
    (e) Research.--
            (1) Grants.--The Secretary shall carry out the research 
        activities of the Initiative through competitively awarded 
        grants to--
                    (A) researchers, including Industry Alliance 
                participants;
                    (B) small businesses;
                    (C) National Laboratories; and
                    (D) institutions of higher education.
            (2) Industry alliance.--The Secretary shall annually 
        solicit from the Industry Alliance--
                    (A) comments to identify solid-state lighting 
                technology needs;
                    (B) an assessment of the progress of the research 
                activities of the Initiative; and
                    (C) assistance in annually updating solid-state 
                lighting technology roadmaps.
            (3) Availability to public.--The information and roadmaps 
        under paragraph (2) shall be available to the public.
    (f) Development, Demonstration, and Commercial Application.--
            (1) In general.--The Secretary shall carry out a 
        development, demonstration, and commercial application program 
        for the Initiative through competitively selected awards.
            (2) Preference.--In making the awards, the Secretary may 
        give preference to participants in the Industry Alliance.
    (g) Cost Sharing.--In carrying out this section, the Secretary 
shall require cost sharing in accordance with section 1002.
    (h) Intellectual Property.--The Secretary may require (in 
accordance with section 202(a)(ii) of title 35, United States Code, 
section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 
section 9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 U.S.C. 5908)) that for any new invention developed under 
subsection (e)--
            (1) that the Industry Alliance participants who are active 
        participants in research, development, and demonstration 
        activities related to the advanced solid-state lighting 
        technologies that are covered by this section shall be granted 
        the first option to negotiate with the invention owner, at 
        least in the field of solid-state lighting, nonexclusive 
        licenses and royalties on terms that are reasonable under the 
        circumstances;
            (2)(i) that, for 1 year after a United States patent is 
        issued for the invention, the patent holder shall not negotiate 
        any license or royalty with any entity that is not a 
        participant in the Industry Alliance described in paragraph 
        (1); and
            (ii) that, during the year described in clause (i), the 
        patent holder shall negotiate nonexclusive licenses and 
        royalties in good faith with any interested participant in the 
        Industry Alliance described in paragraph (1); and
            (3) such other terms as the Secretary determines are 
        required to promote accelerated commercialization of inventions 
        made under the Initiative.
    (i) National Academy Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct periodic 
reviews of the Initiative.

SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.

    (a) Interagency Group.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Director of the Office of Science 
        and Technology Policy shall establish an interagency group to 
        develop, in coordination with the advisory committee 
        established under subsection (e), a National Building 
        Performance Initiative (referred to in this section as the 
        ``Initiative'').
            (2) Cochairs.--The interagency group shall be co-chaired by 
        appropriate officials of the Department and the Department of 
        Commerce, who shall jointly arrange for the provision of 
        necessary administrative support to the group.
    (b) Integration of Efforts.--The Initiative shall integrate 
Federal, State, and voluntary private sector efforts to reduce the 
costs of construction, operation, maintenance, and renovation of 
commercial, industrial, institutional, and residential buildings.
    (c) Plan.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the interagency group shall submit to 
        Congress a plan for carrying out the appropriate Federal role 
        in the Initiative.
            (2) Inclusions.--The plan shall include--
                    (A) research, development, demonstration, and 
                commercial application of systems and materials for new 
                construction and retrofit relating to the building 
                envelope and building system components;
                    (B) research, development, demonstration, and 
                commercial application to develop technology and 
                infrastructure enabling the energy efficient, automated 
                operation of buildings and building equipment; and
                    (C) the collection, analysis, and dissemination of 
                research results and other pertinent information on 
                enhancing building performance to industry, government 
                entities, and the public.
    (d) Department of Energy Role.--Within the Federal portion of the 
Initiative, the Department shall be the lead agency for all aspects of 
building performance related to use and conservation of energy.
    (e) Advisory Committee.--The Director of the Office of Science and 
Technology Policy shall establish an advisory committee to--
            (1) analyze and provide recommendations on potential 
        private sector roles and participation in the Initiative; and
            (2) review and provide recommendations on the plan 
        described in subsection (c).
    (f) Administration.--Nothing in this section provides any Federal 
agency with new authority to regulate building performance.

SEC. 914. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--In this section:
            (1) Battery.--The term ``battery'' means an energy storage 
        device that previously has been used to provide motive power in 
        a vehicle powered in whole or in part by electricity.
            (2) Associated equipment.--The term ``associated 
        equipment'' means equipment located where the batteries will be 
        used that is necessary to enable the use of the energy stored 
        in the batteries.
    (b) Program.--
            (1) In general.--The Secretary shall establish and conduct 
        a research, development, demonstration, and commercial 
        application program for the secondary use of batteries.
            (2) Administration.--The program shall be--
                    (A) designed to demonstrate the use of batteries in 
                secondary applications, including utility and 
                commercial power storage and power quality;
                    (B) structured to evaluate the performance, 
                including useful service life and costs, of such 
                batteries in field operations, and the necessary 
                supporting infrastructure, including reuse and disposal 
                of batteries; and
                    (C) coordinated with ongoing secondary battery use 
                programs at the National Laboratories and in industry.
    (c) Solicitation.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals to 
        demonstrate the secondary use of batteries and associated 
        equipment and supporting infrastructure in geographic locations 
        throughout the United States.
            (2) Additional solicitations.--The Secretary may make 
        additional solicitations for proposals if the Secretary 
        determines that the solicitations are necessary to carry out 
        this section.
    (d) Selection of Proposals.--
            (1) In general.--Not later than 90 days after the closing 
        date established by the Secretary for receipt of proposals 
        under subsection (c), the Secretary shall select up to 5 
        proposals that may receive financial assistance under this 
        section once the Department receives appropriated funds to 
        carry out this section.
            (2) Factors.--In selecting proposals, the Secretary shall 
        consider--
                    (A) the diversity of battery type;
                    (B) geographic and climatic diversity; and
                    (C) life-cycle environmental effects of the 
                approaches.
            (3) Limitation.--No 1 project selected under this section 
        shall receive more than 25 percent of the funds made available 
        to carry out the program under this section.
            (4) Nonfederal involvement.--In selecting proposals, the 
        Secretary shall consider the extent of involvement of State or 
        local government and other persons in each demonstration 
        project to optimize use of Federal resources.
            (5) Other criteria.--In selecting proposals, the Secretary 
        may consider such other criteria as the Secretary considers 
        appropriate.
    (e) Conditions.--In carrying out this section, the Secretary shall 
require that--
            (1) relevant information be provided to--
                    (A) the Department;
                    (B) the users of the batteries;
                    (C) the proposers of a project under this section; 
                and
                    (D) the battery manufacturers; and
            (2) the costs of carrying out projects and activities under 
        this section are shared in accordance with section 1002.

SEC. 915. ENERGY EFFICIENCY SCIENCE INITIATIVE.

    (a) Establishment.--The Secretary shall establish an Energy 
Efficiency Science Initiative to be managed by the Assistant Secretary 
in the Department with responsibility for energy conservation under 
section 203(a)(9) of the Department of Energy Organization Act (42 
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of 
Science, for grants to be competitively awarded and subject to peer 
review for research relating to energy efficiency.
    (b) Report.--The Secretary shall submit to Congress, along with the 
annual budget request of the President submitted to Congress, a report 
on the activities of the Energy Efficiency Science Initiative, 
including a description of the process used to award the funds and an 
explanation of how the research relates to energy efficiency.

SEC. 916. BUILDING STANDARDS.

    (a) Definition of High Performance Building.--In this section, the 
term ``high performance building'' means a building that integrates and 
optimizes energy efficiency, durability, life-cycle performance, and 
occupant productivity.
    (b) Assessment.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall enter into an agreement with 
the National Institute of Building Sciences to--
            (1) conduct an assessment (in cooperation with industry, 
        standards development organizations, and other entities, as 
        appropriate) of whether the current voluntary consensus 
        standards and rating systems for high performance buildings are 
        consistent with the research, development and demonstration 
        activities of the Department;
            (2) determine if additional research is required, based on 
        the findings of the assessment; and,
            (3) recommend steps for the Secretary to accelerate the 
        development of voluntary consensus-based standards for high 
        performance buildings that are based on the findings of the 
        assessment.
    (c) Grant and Technical Assistance Program.--Consistent with 
subsection (b), the National Technology Transfer and Advancement Act of 
1995 (15 U.S.C. 3701 et seq.), and the amendments made by that Act, the 
Secretary shall establish a grant and technical assistance program to 
support the development of voluntary consensus-based standards for high 
performance buildings.

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    (a) In General.--
            (1) Distributed energy and electric energy systems 
        activities.--There are authorized to be appropriated to the 
        Secretary to carry out distributed energy and electric energy 
        systems activities, including activities authorized under this 
        subtitle--
                    (A) $220,000,000 for fiscal year 2006;
                    (B) $240,000,000 for fiscal year 2007; and
                    (C) $260,000,000 for fiscal year 2008.
            (2) Power delivery research initiative.--There are 
        authorized to be appropriated to the Secretary to carry out the 
        Policy Delivery Research Initiative under subsection 925(e)--
                    (A) $30,000,000 for fiscal year 2006;
                    (B) $35,000,000 for fiscal year 2007; and
                    (C) $40,000,000 for fiscal year 2008.
    (b) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (a), $20,000,000 for each of fiscal years 2006 and 
2007 shall be available to carry out activities under section 924.

SEC. 922. HIGH POWER DENSITY INDUSTRY PROGRAM.

    (a) In General.--The Secretary shall establish a comprehensive 
research, development, demonstration, and commercial application 
program to improve the energy efficiency of high power density 
facilities, including data centers, server farms, and 
telecommunications facilities.
    (b) Technologies.--The program shall consider technologies that 
provide significant improvement in thermal controls, metering, load 
management, peak load reduction, or the efficient cooling of 
electronics.

SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY.

    (a) In General.--The Secretary shall make competitive, merit-based 
grants to consortia for the development of micro-cogeneration energy 
technology.
    (b) Uses.--The consortia shall explore--
            (1) the use of small-scale combined heat and power in 
        residential heating appliances;
            (2) the use of excess power to operate other appliances 
        within the residence; and
            (3) the supply of excess generated power to the power grid.

SEC. 924. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAM.

    The Secretary may provide financial assistance to coordinating 
consortia of interdisciplinary participants for demonstrations designed 
to accelerate the use of distributed energy technologies (such as fuel 
cells, microturbines, reciprocating engines, thermally activated 
technologies, and combined heat and power systems) in highly energy 
intensive commercial applications.

SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

    (a) Demonstration Program.--The Secretary shall establish a 
comprehensive research, development, and demonstration program to 
ensure the reliability, efficiency, and environmental integrity of 
electrical transmission and distribution systems, which shall include--
            (1) advanced energy and energy storage technologies, 
        materials, and systems, giving priority to new transmission 
        technologies, including composite conductor materials and other 
        technologies that enhance reliability, operational flexibility, 
        or power-carrying capability;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) supply of electricity to the power grid by small scale, 
        distributed and residential-based power generators;
            (9) the development and use of advanced grid design, 
        operation, and planning tools;
            (10) any other infrastructure technologies, as appropriate; 
        and
            (11) technology transfer and education.
    (b) Program Plan.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in consultation with 
        other appropriate Federal agencies, shall prepare and submit to 
        Congress a 5-year program plan to guide activities under this 
        section.
            (2) Consultation.--In preparing the program plan, the 
        Secretary shall consult with--
                    (A) utilities;
                    (B) energy service providers;
                    (C) manufacturers;
                    (D) institutions of higher education;
                    (E) other appropriate State and local agencies;
                    (F) environmental organizations;
                    (G) professional and technical societies; and
                    (H) any other persons the Secretary considers 
                appropriate.
    (c) Implementation.--The Secretary shall consider implementing the 
program under this section using a consortium of participants from 
industry, institutions of higher education, and National Laboratories.
    (d) Report.--Not later than 2 years after the submission of the 
plan under subsection (b), the Secretary shall submit to Congress a 
report--
            (1) describing the progress made under this section; and
            (2) identifying any additional resources needed to continue 
        the development and commercial application of transmission and 
        distribution of infrastructure technologies.
    (e) Power Delivery Research Initiative.--
            (1) In general.--The Secretary shall establish a research, 
        development, and demonstration initiative specifically focused 
        on power delivery using components incorporating high 
        temperature superconductivity.
            (2) Goals.--The goals of the Initiative shall be--
                    (A) to establish world-class facilities to develop 
                high temperature superconductivity power applications 
                in partnership with manufacturers and utilities;
                    (B) to provide technical leadership for 
                establishing reliability for high temperature 
                superconductivity power applications, including 
                suitable modeling and analysis;
                    (C) to facilitate the commercial transition toward 
                direct current power transmission, storage, and use for 
                high power systems using high temperature 
                superconductivity; and
                    (D) to facilitate the integration of very low 
                impedance high temperature superconducting wires and 
                cables in existing electric networks to improve system 
                performance, power flow control, and reliability.
            (3) Inclusions.--The Initiative shall include--
                    (A) feasibility analysis, planning, research, and 
                design to construct demonstrations of superconducting 
                links in high power, direct current, and controllable 
                alternating current transmission systems;
                    (B) public-private partnerships to demonstrate 
                deployment of high temperature superconducting cable 
                into testbeds simulating a realistic transmission grid 
                and under varying transmission conditions, including 
                actual grid insertions; and
                    (C) testbeds developed in cooperation with National 
                Laboratories, industries, and institutions of higher 
                education to--
                            (i) demonstrate those technologies;
                            (ii) prepare the technologies for 
                        commercial introduction; and
                            (iii) address cost or performance 
                        roadblocks to successful commercial use.
    (f) Transmission and Distribution Grid Planning and Operations 
Initiative.--
            (1) In general.--The Secretary shall establish a research, 
        development, and demonstration initiative specifically focused 
        on tools needed to plan, operate, and expand the transmission 
        and distribution grids in the presence of competitive market 
        mechanisms for energy, load demand, customer response, and 
        ancillary services.
            (2) Goals.--The goals of the Initiative shall be--
                    (A)(i) to develop and use a geographically 
                distributed center, consisting of institutions of 
                higher education, and National Laboratories, with 
                expertise and facilities to develop the underlying 
                theory and software for power system application; and
                    (ii) to ensure commercial development in 
                partnership with software vendors and utilities;
                    (B) to provide technical leadership in engineering 
                and economic analysis for the reliability and 
                efficiency of power systems planning and operations in 
                the presence of competitive markets for electricity;
                    (C) to model, simulate, and experiment with new 
                market mechanisms and operating practices to understand 
                and optimize those new methods before actual use; and
                    (D) to provide technical support and technology 
                transfer to electric utilities and other participants 
                in the domestic electric industry and marketplace.

                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

    (a) In General.--There are authorized to be appropriated to the 
Secretary to carry out renewable energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle--
            (1) $610,000,000 for fiscal year 2006;
            (2) $659,000,000 for fiscal year 2007; and
            (3) $710,000,000 for fiscal year 2008.
    (b) Bioenergy.--From the amounts authorized under subsection (a), 
there are authorized to be appropriated to carry out section 932--
            (1) $167,650,000 for fiscal year 2006;
            (2) $180,000,000 for fiscal year 2007; and
            (3) $192,000,000 for fiscal year 2008.
    (c) Concentrating Solar Power.--From amounts authorized under 
subsection (a), there is authorized to be appropriated to carry out 
section 933 $50,000,000 for each of fiscal years 2006 through 2008.
    (d) Administration.--Of the funds authorized under subsection (b), 
not less than $5,000,000 for each fiscal year shall be made available 
for grants to--
            (1) part B institutions;
            (2) Tribal Colleges or Universities (as defined in section 
        316(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1059c(b))); and
            (3) Hispanic-serving institutions.
    (e) Consultation.--In carrying out this section, the Secretary, in 
consultation with the Secretary of Agriculture, shall demonstrate the 
use of--
            (1) advanced wind power technology, including combined use 
        with coal gasification;
            (2) biomass;
            (3) geothermal energy systems; and
            (4) other renewable energy technologies to assist in 
        delivering electricity to rural and remote locations.

SEC. 932. BIOENERGY PROGRAM.

    (a) Definition of Lignocellulosic Feedstock.--In this section, the 
term ``lignocellulosic feedstock'' means any portion of a plant or 
coproduct from conversion, including crops, trees, and agricultural and 
forest residues not specifically grown for food.
    (b) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for bioenergy, 
including--
            (1) biopower energy systems;
            (2) biofuels;
            (3) bioproducts;
            (4) integrated biorefineries that may produce biopower, 
        biofuels, and bioproducts;
            (5) cross-cutting research and development in feedstocks; 
        and
            (6) economic analysis.
    (c) Biofuels and Bioproducts.--The goals of the biofuels and 
bioproducts programs shall be to develop, in partnership with industry 
and institutions of higher education--
            (1) advanced biochemical and thermochemical conversion 
        technologies capable of making fuels from lignocellulosic 
        feedstocks that are price-competitive with gasoline or diesel 
        in either internal combustion engines or fuel cell-powered 
        vehicles;
            (2) advanced biotechnology processes capable of making 
        biofuels and bioproducts with emphasis on development of 
        biorefinery technologies using enzyme-based processing systems;
            (3) advanced biotechnology processes capable of increasing 
        energy production from lignocellulosic feedstocks, with 
        emphasis on reducing the dependence of industry on fossil fuels 
        in manufacturing facilities; and
            (4) other advanced processes that will enable the 
        development of cost-effective bioproducts, including biofuels.
    (d) Repeal of Sunset Provision.--Section 311 of the Biomass 
Research and Development Act of 2000 (7 U.S.C. 8101 note) is repealed.

SEC. 933. HYDROGEN INTERMEDIATE FUELS RESEARCH PROGRAM.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Agriculture, shall carry out a 3-year program of research, 
development, and demonstration on the use of ethanol and other low-cost 
transportable renewable feedstocks as intermediate fuels for the safe, 
energy efficient, and cost-effective transportation of hydrogen.
    (b) Goals.--The goals of the program shall include--
            (1) demonstrating the cost-effective conversion of ethanol 
        or other low-cost transportable renewable feedstocks to pure 
        hydrogen suitable for eventual use in fuel cells;
            (2) using existing commercial reforming technology or 
        modest modifications of existing technology to reform ethanol 
        or other low-cost transportable renewable feedstocks into 
        hydrogen;
            (3) converting at least 1 commercially available internal 
        combustion engine hybrid electric passenger vehicle to operate 
        on hydrogen;
            (4) not later than 1 year after the date on which the 
        program begins, installing and operating an ethanol reformer, 
        or reformer for another low-cost transportable renewable 
        feedstock (including onsite hydrogen compression, storage, and 
        dispensing), at the facilities of a fleet operator;
            (5) operating the 1 or more vehicles described in paragraph 
        (3) for a period of at least 2 years; and
            (6) collecting emissions and fuel economy data on the 1 or 
        more vehicles described in paragraph (3) in various operating 
        and environmental conditions.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000.

SEC. 934. CONCENTRATING SOLAR POWER RESEARCH PROGRAM.

    (a) In General.--The Secretary shall conduct a program of research 
and development to evaluate the potential for concentrating solar power 
for hydrogen production, including cogeneration approaches for both 
hydrogen and electricity.
    (b) Administration.--The program shall take advantage of existing 
facilities to the extent practicable and shall include--
            (1) development of optimized technologies that are common 
        to both electricity and hydrogen production;
            (2) evaluation of thermochemical cycles for hydrogen 
        production at the temperatures attainable with concentrating 
        solar power;
            (3) evaluation of materials issues for the thermochemical 
        cycles described in paragraph (2);
            (4) cogeneration of solar thermal electric power and photo-
        synthetic-based hydrogen production;
            (5) system architectures and economics studies; and
            (6) coordination with activities under the Advanced Reactor 
        Hydrogen Co-generation Project established under subtitle C of 
        title VI on high temperature materials, thermochemical cycles, 
        and economic issues.
    (c) Assessment.--In carrying out the program under this section, 
the Secretary shall--
            (1) assess conflicting guidance on the economic potential 
        of concentrating solar power for electricity production 
        received from the National Research Council in the report 
        entitled ``Renewable Power Pathways: A Review of the U.S. 
        Department of Energy's Renewable Energy Programs'' and dated 
        2000 and subsequent reviews of that report funded by the 
        Department; and
            (2) provide an assessment of the potential impact of 
        technology used to concentrate solar power for electricity 
        before, or concurrent with, submission of the budget for fiscal 
        year 2007.
    (d) Report.--Not later than 5 years after the date of enactment of 
this Act, the Secretary shall provide to Congress a report on the 
economic and technical potential for electricity or hydrogen 
production, with or without cogeneration, with concentrating solar 
power, including the economic and technical feasibility of potential 
construction of a pilot demonstration facility suitable for commercial 
production of electricity or hydrogen from concentrating solar power.

SEC. 935. HYBRID SOLAR LIGHTING RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Definition of Hybrid Solar Lighting.--In this section, the term 
``hybrid solar lighting'' means a novel lighting system that integrates 
sunlight and electrical lighting in complement to each other in common 
lighting fixtures for the purpose of improving energy efficiency.
    (b) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for hybrid solar 
lighting aimed at developing hybrid solar lighting systems that are--
            (1) designed to eliminate large roof penetrations and 
        associated architectural design and maintenance problems that 
        limit the conventional use of daylight in most buildings;
            (2) easily integrated with electric lights; and
            (3) compatible with a majority of electric lamps and light 
        fixtures.
    (c) Limitations.--Funding authorized under this section shall not 
be used for lighting systems based on conventional daylighting 
installations such as skylights, light wells, light shelves, or roof 
monitors.
    (d) National Academy of Sciences.--Not later than 2 years after the 
date of enactment of this Act, the Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct a biannual 
review of the activities under this section including program 
priorities, technical milestones, and opportunities for technology 
transfer and commercialization.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $4,000,000 for fiscal year 2006;
            (2) $6,000,000 for fiscal year 2007; and
            (3) $6,000,000 for fiscal year 2008.

SEC. 936. MISCELLANEOUS PROJECTS.

    The Secretary shall conduct research, development, demonstration, 
and commercial application programs for--
            (1) ocean energy, including wave energy;
            (2) the combined use of renewable energy technologies with 
        1 another and with other energy technologies, including the 
        combined use of wind power and coal gasification technologies; 
        and
            (3) renewable energy technologies for cogeneration of 
        hydrogen and electricity.

SEC. 937. BIOMASS RESEARCH AND DEVELOPMENT.

    (a) Definitions.--Section 303 of the Biomass Research and 
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is 
amended--
            (1) by striking paragraphs (2), (9), and (10);
            (2) by redesignating paragraphs (3), (4), (5), (6), (7), 
        and (8) as paragraphs (4), (5), (7), (8), (9), and (10), 
        respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Biobased fuel.--The term `biobased fuel' means any 
        transportation fuel produced from biomass.
            ``(3) Biobased product.--The term `biobased product' means 
        an industrial product (including chemicals, materials, and 
        polymers) produced from biomass, or a commercial or industrial 
        product (including animal feed and electric power) derived in 
        connection with the conversion of biomass to fuel.'';
            (4) by inserting after paragraph (5) (as redesignated by 
        paragraph (2)) the following:
            ``(6) Demonstration.--The term `demonstration' means 
        demonstration of technology in a pilot plant or semi-works 
        scale facility.''; and
            (5) by striking paragraph (9) (as redesignated by paragraph 
        (2)) and inserting the following:
            ``(9) National laboratory.--The term `National Laboratory' 
        means any of the following laboratories owned by the 
        Department:
                    ``(A) Ames Laboratory.
                    ``(B) Argonne National Laboratory.
                    ``(C) Brookhaven National Laboratory.
                    ``(D) Fermi National Accelerator Laboratory.
                    ``(E) Idaho National Laboratory.
                    ``(F) Lawrence Berkeley National Laboratory.
                    ``(G) Lawrence Livermore National Laboratory.
                    ``(H) Los Alamos National Laboratory.
                    ``(I) National Energy Technology Laboratory.
                    ``(J) National Renewable Energy Laboratory.
                    ``(K) Oak Ridge National Laboratory.
                    ``(L) Pacific Northwest National Laboratory.
                    ``(M) Princeton Plasma Physics Laboratory.
                    ``(N) Sandia National Laboratories.
                    ``(O) Stanford Linear Accelerator Center.
                    ``(P) Thomas Jefferson National Accelerator 
                Facility.''.
    (b) Cooperation and Coordination in Biomass Research and 
Development.--Section 304 of the Biomass Research and Development Act 
of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
            (1) in subsections (a) and (d), by striking ``industrial 
        products'' each place it appears and inserting ``fuels and 
        biobased products'';
            (2) by striking subsections (b) and (c); and
            (3) by redesignating subsection (d) as subsection (b).
    (c) Biomass Research and Development Board.--Section 305 of the 
Biomass Research and Development Act of 2000 (Public Law 106-224; 7 
U.S.C. 8101 note) is amended--
            (1) in subsections (a) and (c), by striking ``industrial 
        products'' each place it appears and inserting ``fuels and 
        biobased products'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``304(d)(1)(B)'' 
                and inserting ``304(b)(1)(B)''; and
                    (B) in paragraph (2), by striking ``304(d)(1)(A)'' 
                and inserting ``304(b)(1)(A)''; and
            (3) in subsection (c)--
                    (A) in paragraph (1)(B), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(3) ensure that--
                    ``(A) solicitations are open and competitive with 
                awards made annually; and
                    ``(B) objectives and evaluation criteria of the 
                solicitations are clearly stated and minimally 
                prescriptive, with no areas of special interest; and
            ``(4) ensure that the panel of scientific and technical 
        peers assembled under section 307(g)(1)(C) to review proposals 
        is composed predominantly of independent experts selected from 
        outside the Departments of Agriculture and Energy.''.
    (d) Biomass Research and Development Technical Advisory 
Committee.--Section 306 of the Biomass Research and Development Act of 
2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``biobased 
                industrial products'' and inserting ``biofuels'';
                    (B) by redesignating subparagraphs (B) through (J) 
                as subparagraphs (C) through (K), respectively;
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) an individual affiliated with the biobased 
                industrial and commercial products industry;'';
                    (D) in subparagraph (F) (as redesignated by 
                subparagraph (B)) by striking ``an individual has'' and 
                inserting ``2 individuals have'';
                    (E) in subparagraphs (C), (D), (G), and (I) (as 
                redesignated by subparagraph (B)) by striking 
                ``industrial products'' each place it appears and 
                inserting ``fuels and biobased products''; and
                    (F) in subparagraph (H) (as redesignated by 
                subparagraph (B)), by inserting ``and environmental'' 
                before ``analysis'';
            (2) in subsection (c)(2)--
                    (A) in subparagraph (A), by striking ``goals'' and 
                inserting ``objectives, purposes, and considerations'';
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively;
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) solicitations are open and competitive with 
                awards made annually and that objectives and evaluation 
                criteria of the solicitations are clearly stated and 
                minimally prescriptive, with no areas of special 
                interest;''; and
                    (D) in subparagraph (C) (as redesignated by 
                subparagraph (B)) by inserting ``predominantly from 
                outside the Departments of Agriculture and Energy'' 
                after ``technical peers''.
    (e) Biomass Research and Development Initiative.--Section 307 of 
the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 
U.S.C. 8101 note) is amended--
            (1) in subsection (a), by striking ``research on biobased 
        industrial products'' and inserting ``research on, and 
        development and demonstration of, biobased fuels and biobased 
        products, and the methods, practices and technologies, 
        biotechnology, for their production''; and
            (2) by striking subsections (b) through (e) and inserting 
        the following:
    ``(b) Objectives.--The objectives of the Initiative are to 
develop--
            ``(1) technologies and processes necessary for abundant 
        commercial production of biobased fuels at prices competitive 
        with fossil fuels;
            ``(2) high-value biobased products--
                    ``(A) to enhance the economic viability of biobased 
                fuels and power; and
                    ``(B) as substitutes for petroleum-based feedstocks 
                and products; and
            ``(3) a diversity of sustainable domestic sources of 
        biomass for conversion to biobased fuels and biobased products.
    ``(c) Purposes.--The purposes of the Initiative are--
            ``(1) to increase the energy security of the United States;
            ``(2) to create jobs and enhance the economic development 
        of the rural economy;
            ``(3) to enhance the environment and public health; and
            ``(4) to diversify markets for raw agricultural and 
        forestry products.
    ``(d) Technical Areas.--To advance the objectives and purposes of 
the Initiative, the Secretary of Agriculture and the Secretary of 
Energy, in consultation with the Administrator of the Environmental 
Protection Agency and heads of other appropriate departments and 
agencies (referred to in this section as the `Secretaries'), shall 
direct research and development toward--
            ``(1) feedstock production through the development of crops 
        and cropping systems relevant to production of raw materials 
        for conversion to biobased fuels and biobased products, 
        including--
                    ``(A) development of advanced and dedicated crops 
                with desired features, including enhanced productivity, 
                broader site range, low requirements for chemical 
                inputs, and enhanced processing;
                    ``(B) advanced crop production methods to achieve 
                the features described in subparagraph (A);
                    ``(C) feedstock harvest, handling, transport, and 
                storage; and
                    ``(D) strategies for integrating feedstock 
                production into existing managed land;
            ``(2) overcoming recalcitrance of cellulosic biomass 
        through developing technologies for converting cellulosic 
        biomass into intermediates that can subsequently be converted 
        into biobased fuels and biobased products, including--
                    ``(A) pretreatment in combination with enzymatic or 
                microbial hydrolysis; and
                    ``(B) thermochemical approaches, including 
                gasification and pyrolysis;
            ``(3) product diversification through technologies relevant 
        to production of a range of biobased products (including 
        chemicals, animal feeds, and cogenerated power) that eventually 
        can increase the feasibility of fuel production in a 
        biorefinery, including--
                    ``(A) catalytic processing, including 
                thermochemical fuel production;
                    ``(B) metabolic engineering, enzyme engineering, 
                and fermentation systems for biological production of 
                desired products or cogeneration of power;
                    ``(C) product recovery;
                    ``(D) power production technologies; and
                    ``(E) integration into existing biomass processing 
                facilities, including starch ethanol plants, paper 
                mills, and power plants; and
            ``(4) analysis that provides strategic guidance for the 
        application of biomass technologies in accordance with 
        realization of improved sustainability and environmental 
        quality, cost effectiveness, security, and rural economic 
        development, usually featuring system-wide approaches.
    ``(e) Additional Considerations.--Within the technical areas 
described in subsection (d), and in addition to advancing the purposes 
described in subsection (c) and the objectives described in subsection 
(b), the Secretaries shall support research and development--
            ``(1) to create continuously expanding opportunities for 
        participants in existing biofuels production by seeking 
        synergies and continuity with current technologies and 
        practices, such as the use of dried distillers grains as a 
        bridge feedstock;
            ``(2) to maximize the environmental, economic, and social 
        benefits of production of biobased fuels and biobased products 
        on a large scale through life-cycle economic and environmental 
        analysis and other means; and
            ``(3) to assess the potential of Federal land and land 
        management programs as feedstock resources for biobased fuels 
        and biobased products, consistent with the integrity of soil 
        and water resources and with other environmental 
        considerations.
    ``(f) Eligible Entities.--To be eligible for a grant, contract, or 
assistance under this section, an applicant shall be--
            ``(1) an institution of higher education;
            ``(2) a national laboratory;
            ``(3) a Federal research agency;
            ``(4) a State research agency;
            ``(5) a private sector entity;
            ``(6) a nonprofit organization; or
            ``(7) a consortium of 2 of more entities described in 
        paragraphs (1) through (6).
    ``(g) Administration.--
            ``(1) In general.--After consultation with the Board, the 
        points of contact shall--
                    ``(A) publish annually 1 or more joint requests for 
                proposals for grants, contracts, and assistance under 
                this section;
                    ``(B) require that grants, contracts, and 
                assistance under this section be awarded competitively, 
                on the basis of merit, after the establishment of 
                procedures that provide for scientific peer review by 
                an independent panel of scientific and technical peers; 
                and
                    ``(C) give some preference to applications that--
                            ``(i) involve a consortia of experts from 
                        multiple institutions;
                            ``(ii) encourage the integration of 
                        disciplines and application of the best 
                        technical resources; and
                            ``(iii) increase the geographic diversity 
                        of demonstration projects.
            ``(2) Distribution of funding by technical area.--Of the 
        funds authorized to be appropriated for activities described in 
        this section, funds shall be distributed for each of fiscal 
        years 2006 through 2010 so as to achieve an approximate 
        distribution of--
                    ``(A) 20 percent of the funds to carry out 
                activities for feedstock production under subsection 
                (d)(1);
                    ``(B) 45 percent of the funds to carry out 
                activities for overcoming recalcitrance of cellulosic 
                biomass under subsection (d)(2);
                    ``(C) 30 percent of the funds to carry out 
                activities for product diversification under subsection 
                (d)(3); and
                    ``(D) 5 percent of the funds to carry out 
                activities for strategic guidance under subsection 
                (d)(4).
            ``(3) Distribution of funding within each technical area.--
        Within each technical area described in paragraphs (1) through 
        (3) of subsection (d), funds shall be distributed for each of 
        fiscal years 2006 through 2010 so as to achieve an approximate 
        distribution of--
                    ``(A) 15 percent of the funds for applied 
                fundamentals;
                    ``(B) 35 percent of the funds for innovation; and
                    ``(C) 50 percent of the funds for demonstration.
            ``(4) Matching funds.--
                    ``(A) In general.--A minimum 20 percent funding 
                match shall be required for demonstration projects 
                under this title.
                    ``(B) Commercial applications.--A minimum of 50 
                percent funding match shall be required for commercial 
                application projects under this title.
            ``(5) Technology and information transfer to agricultural 
        users.--The Administrator of the Cooperative State Research, 
        Education, and Extension Service and the Chief of the Natural 
        Resources Conservation Service shall ensure that applicable 
        research results and technologies from the Initiative are 
        adapted, made available, and disseminated through those 
        services, as appropriate.''.
    (f) Annual Reports.--Section 309 of the Biomass Research and 
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``purposes described in section 307(b)'' and 
                        inserting ``objectives, purposes, and 
                        additional considerations described in 
                        subsections (b) through (e) of section 307'';
                            (ii) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (iii) by redesignating subparagraph (C) as 
                        subparagraph (D); and
                            (iv) by inserting after subparagraph (B) 
                        the following:
                    ``(C) achieves the distribution of funds described 
                in paragraphs (2) and (3) of section 307(g); and''; and
                    (B) in paragraph (2), by striking ``industrial 
                products'' and inserting ``fuels and biobased 
                products''; and
            (2) by adding at the end the following:
    ``(c) Updates.--The Secretary and the Secretary of Energy shall 
update the Vision and Roadmap documents prepared for Federal biomass 
research and development activities.''.
    (g) Authorization of Appropriations.--Section 310(b) of the Biomass 
Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
note) is amended by striking ``title $54,000,000 for each of fiscal 
years 2002 through 2007'' and inserting ``title $200,000,000 for fiscal 
year 2006 and each fiscal year thereafter''.
    (h) Hydrogen Intermediate Fuels Research Program.--
            (1) In general.--The Secretary shall conduct a research, 
        development, and demonstration program focused on the economic 
        production and use of hydrogen from biofuels, with emphasis on 
        the rural electrical generation sectors.
            (2) Electrical generation sector objectives.--The 
        objectives of the program conducted under paragraph (1) in the 
        rural electrical generation sector shall be to--
                    (A) design, develop, and test low-cost gasification 
                equipment to convert biomass to hydrogen at regional 
                rural cooperatives, or at businesses owned by farmers, 
                close to agricultural operations to minimize the cost 
                of biomass transportation to large central gasification 
                plants;
                    (B) demonstrate low-cost electrical generation at 
                such rural cooperatives or farmer-owned businesses, 
                using renewable hydrogen derived from biomass in either 
                fuel cell generators, or, as an interim cost reduction 
                option, in conventional internal combustion engine 
                gensets;
                    (C) determine the economic return to cooperatives 
                or other businesses owned by farmers of producing 
                hydrogen from biomass and selling electricity compared 
                to agricultural economic returns from producing and 
                selling conventional crops alone;
                    (D) evaluate the crop yield and long-term soil 
                sustainability of growing and harvesting of feedstocks 
                for biomass gasification, and
                    (E) demonstrate the use of a portion of the 
                biomass-derived hydrogen in various agricultural 
                vehicles to reduce--
                            (i) dependence on imported fossil fuel; and
                            (ii) environmental impacts.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $5,000,000.

SEC. 938. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

    (a) Purpose.--The purpose of this section is to--
            (1) accelerate deployment and commercialization of 
        biofuels;
            (2) deliver the first 1,000,000,000 gallons in annual 
        cellulosic biofuels production by 2015;
            (3) ensure biofuels produced after 2015 are cost 
        competitive with gasoline and diesel; and
            (4) ensure that small feedstock producers and rural small 
        businesses are full participants in the development of the 
        cellulosic biofuels industry.
    (b) Definitions.--In this section:
            (1) Cellulosic biofuels.--The term ``cellulosic biofuels'' 
        means any fuel that is produced from cellulosic feedstocks.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        producer of fuel from cellulosic biofuels the production 
        facility of which--
                    (A) is located in the United States;
                    (B) meets all applicable Federal and State 
                permitting requirements; and
                    (C) meets any financial criteria established by the 
                Secretary.
    (c) Program.--
            (1) Establishment.--The Secretary, in consultation with the 
        Secretary of Agriculture, the Secretary of Defense, and the 
        Administrator of the Environmental Protection Agency, shall 
        establish an incentive program for the production of cellulosic 
        biofuels.
            (2) Basis of incentives.--Under the program, the Secretary 
        shall award production incentives on a per gallon basis of 
        cellulosic biofuels from eligible entities, through--
                    (A) set payments per gallon of cellulosic biofuels 
                produced in an amount determined by the Secretary, 
                until initiation of the first reverse auction; and
                    (B) reverse auction thereafter.
            (3) First reverse auction.--The first reverse auction shall 
        be held on the earlier of--
                    (A) not later than 1 year after the first year of 
                annual production in the United States of 100,000,000 
                gallons of cellulosic biofuels, as determined by the 
                Secretary; or
                    (B) not later than 3 years after the date of 
                enactment of this Act.
            (4) Reverse auction procedure.--
                    (A) In general.--On initiation of the first reverse 
                auction, and each year thereafter until the earlier of 
                the first year of annual production in the United 
                States of 1,000,000,000 gallons of cellulosic biofuels, 
                as determined by the Secretary, or 10 years after the 
                date of enactment of this Act, the Secretary shall 
                conduct a reverse auction at which--
                            (i) the Secretary shall solicit bids from 
                        eligible entities;
                            (ii) eligible entities shall submit--
                                    (I) a desired level of production 
                                incentive on a per gallon basis; and
                                    (II) an estimated annual production 
                                amount in gallons; and
                            (iii) the Secretary shall issue awards for 
                        the production amount submitted, beginning with 
                        the eligible entity submitting the bid for the 
                        lowest level of production incentive on a per 
                        gallon basis and meeting such other criteria as 
                        are established by the Secretary, until the 
                        amount of funds available for the reverse 
                        auction is committed.
                    (B) Amount of incentive received.--An eligible 
                entity selected by the Secretary through a reverse 
                auction shall receive the amount of performance 
                incentive requested in the auction for each gallon 
                produced and sold by the entity during the first 6 
                years of operation.
                    (C) Commencement of production of cellulosic 
                biofuels.--As a condition of the receipt of an award 
                under this section, an eligible entity shall enter into 
                an agreement with the Secretary under which the 
                eligible entity agrees to begin production of 
                cellulosic biofuels not later than 3 years after the 
                date of the reverse auction in which the eligible 
                entity participates.
    (d) Limitations.--Awards under this section shall be limited to--
            (1) a per gallon amount determined by the Secretary during 
        the first 4 years of the program;
            (2) a declining per gallon cap over the remaining lifetime 
        of the program, to be established by the Secretary so that 
        cellulosic biofuels produced after the first year of annual 
        cellulosic biofuels production in the United States in excess 
        of 1,000,000,000 gallons are cost competitive with gasoline and 
        diesel;
            (3) not more than 25 percent of the funds committed within 
        each reverse auction to any 1 project;
            (4) not more than $100,000,000 in any 1 year; and
            (5) not more than $1,000,000,000 over the lifetime of the 
        program.
    (e) Priority.--In selecting a project under the program, the 
Secretary shall give priority to projects that--
            (1) demonstrate outstanding potential for local and 
        regional economic development;
            (2) include agricultural producers or cooperatives of 
        agricultural producers as equity partners in the ventures; and
            (3) have a strategic agreement in place to fairly reward 
        feedstock suppliers.
    (f) Authorizations of Appropriations.--There is authorized to be 
appropriated to carry out this section $250,000,000.

SEC. 939. PROCUREMENT OF BIOBASED PRODUCTS.

    (a) Federal Procurement.--
            (1) Definition of procuring agency.--Section 9001 of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101) 
        is amended--
                    (A) by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (5), (6), and (7), respectively; and
                    (B) by inserting after paragraph (3) the following:
            ``(4) Procuring agency.--The term `procuring agency' 
        means--
                    ``(A) any Federal agency that is using Federal 
                funds for procurement; or
                    ``(B) any person contracting with any Federal 
                agency with respect to work performed under the 
                contract.''.
            (2) Procurement.--Section 9002 of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 8102) is amended--
                    (A) by striking ``Federal agency'' each place it 
                appears (other than in subsections (f) and (g)) and 
                inserting ``procuring agency'';
                    (B) in subsection (c)(2)--
                            (i) by striking ``(2)'' and all that 
                        follows through ``Notwithstanding'' and 
                        inserting the following:
            ``(2) Flexibility.--Notwithstanding'';
                            (ii) by striking ``an agency'' and 
                        inserting ``a procuring agency''; and
                            (iii) by striking ``the agency'' and 
                        inserting ``the procuring agency'';
                    (C) in subsection (d), by striking ``procured by 
                Federal agencies'' and inserting ``procured by 
                procuring agencies''; and
                    (D) in subsection (f), by striking ``Federal 
                agencies'' and inserting ``procuring agencies'' .
    (b) Capitol Complex Procurement.--Section 9002 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 8102) (as amended by 
subsection (a)(2)) is amended--
            (1) by redesignating subsection (j) as subsection (k); and
            (2) by inserting after subsection (i) the following:
    ``(j) Inclusion.--Not later than 90 days after the date of 
enactment of the Energy Policy Act of 2005, the Architect of the 
Capitol, the Sergeant at Arms of the Senate, and the Chief 
Administrative Officer of the House of Representatives shall establish 
procedures that apply the requirements of this section to procurement 
for the Capitol Complex.''.
    (c) Education.--
            (1) In general.--The Architect of the Capitol shall 
        establish in the Capitol Complex a program of public education 
        regarding use by the Architect of the Capitol of biobased 
        products.
            (2) Purposes.--The purposes of the program shall be--
                    (A) to establish the Capitol Complex as a showcase 
                for the existence and benefits of biobased products; 
                and
                    (B) to provide access to further information on 
                biobased products to occupants and visitors.
    (d) Procedure.--Requirements issued under the amendments made by 
subsection (b) shall be made in accordance with directives issued by 
the Committee on Rules and Administration of the Senate and the 
Committee on House Administration of the House of Representatives.

SEC. 940. SMALL BUSINESS BIOPRODUCT MARKETING AND CERTIFICATION GRANTS.

    (a) In General.--Using amounts made available under subsection (g), 
the Secretary of Agriculture (referred to in this section as the 
``Secretary'') shall make available on a competitive basis grants to 
eligible entities described in subsection (b) for the biobased product 
marketing and certification purposes described in subsection (c).
    (b) Eligible Entities.--
            (1) In general.--An entity eligible for a grant under this 
        section is any manufacturer of biobased products that--
                    (A) proposes to use the grant for the biobased 
                product marketing and certification purposes described 
                in subsection (c); and
                    (B) has not previously received a grant under this 
                section.
            (2) Preference.--In making grants under this section, the 
        Secretary provide a preference to an eligible entity that has 
        fewer than 50 employees.
    (c) Biobased Product Marketing and Certification Grant Purposes.--A 
grant made under this section shall be used--
            (1) to provide working capital for marketing of biobased 
        products; and
            (2) to provide for the certification of biobased products 
        to--
                    (A) qualify for the label described in section 
                9002(h)(1) of the Farm Security and Rural Investment 
                Act of 2002 (7 U.S.C. 8102(h)(1)); or
                    (B) meet other biobased standards determined 
                appropriate by the Secretary.
    (d) Matching Funds.--
            (1) In general.--Grant recipients shall provide matching 
        non-Federal funds equal to the amount of the grant received.
            (2) Expenditure.--Matching funds shall be expended in 
        advance of grant funding, so that for every dollar of grant 
        that is advanced, an equal amount of matching funds shall have 
        been funded prior to submitting the request for reimbursement.
    (e) Amount.--A grant made under this section shall not exceed 
$100,000.
    (f) Administration.--The Secretary shall establish such 
administrative requirements for grants under this section, including 
requirements for applications for the grants, as the Secretary 
considers appropriate.
    (g) Authorizations of Appropriations.--There are authorized to be 
appropriated to make grants under this section--
            (1) $1,000,000 for fiscal year 2006; and
            (2) such sums as are necessary for fiscal year 2007 and 
        each subsequent fiscal year.

SEC. 941. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.

    (a) In General.--Using amounts made available under subsection (g), 
the Secretary of Agriculture (referred to in this section as the 
``Secretary'') shall make available on a competitive basis grants to 
eligible entities described in subsection (b) for the purposes 
described in subsection (c).
    (b) Eligible Entities.--An entity eligible for a grant under this 
section is any regional bioeconomy development association, 
agricultural or energy trade association, or Land Grant institution 
that--
            (1) proposes to use the grant for the purposes described in 
        subsection (c); and
            (2) has not previously received a grant under this section.
    (c) Regional Bioeconomy Development Association Grant Purposes.--A 
grant made under this section shall be used to support and promote the 
growth and development of the bioeconomy within the region served by 
the eligible entity, through coordination, education, outreach, and 
other endeavors by the eligible entity.
    (d) Matching Funds.--
            (1) In general.--Grant recipients shall provide matching 
        non-Federal funds equal to the amount of the grant received.
            (2) Expenditure.--Matching funds shall be expended in 
        advance of grant funding, so that for every dollar of grant 
        that is advanced, an equal amount of matching funds shall have 
        been funded prior to submitting the request for reimbursement.
    (e) Administration.--The Secretary shall establish such 
administrative requirements for grants under this section, including 
requirements for applications for the grants, as the Secretary 
considers appropriate.
    (f) Amount.--A grant made under this section shall not exceed 
$500,000.
    (g) Authorizations of Appropriations.--There are authorized to be 
appropriated to make grants under this section--
            (1) $1,000,000 for fiscal year 2006; and
            (2) such sums as are necessary for fiscal year 2007 and 
        each subsequent fiscal year.

SEC. 942. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.

    (a) In General.--The Secretary of Agriculture (referred to in this 
section as the ``Secretary'') shall make grants available on a 
competitive basis to enterprises owned by agricultural producers, for 
the purposes of demonstrating cost-effective, cellulosic biomass 
innovations in--
            (1) preprocessing of feedstocks, including cleaning, 
        separating and sorting, mixing or blending, and chemical or 
        biochemical treatments, to add value and lower the cost of 
        feedstock processing at a biorefinery; or
            (2) 1-pass or other efficient, multiple crop harvesting 
        techniques.
    (b) Limitations on Grants.--
            (1) Number of grants.--Not more than 5 demonstration 
        projects per fiscal year shall be funded under this section.
            (2) Non-federal cost share.--The non-Federal cost share of 
        a project under this section shall be not less than 20 percent, 
        as determined by the Secretary.
    (c) Condition of Grant.--To be eligible for a grant for a project 
under this section, a recipient of a grant or a participating entity 
shall agree to use the material harvested under the project--
            (1) to produce ethanol; or
            (2) for another energy purpose, such as the generation of 
        heat or electricity.
    (d) Authorization for Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 943. EDUCATION AND OUTREACH.

    (a) In General.--The Secretary of Agriculture shall establish, 
within the Department of Agriculture or through an independent 
contracting entity, a program of education and outreach on biobased 
fuels and biobased products consisting of--
            (1) training and technical assistance programs for 
        feedstock producers to promote producer ownership, investment, 
        and participation in the operation of processing facilities; 
        and
            (2) public education and outreach to familiarize consumers 
        with the biobased fuels and biobased products.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this title $1,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 944. REPORTS.

    (a) Biobased Product Potential.--Not later than 1 year after the 
date of enactment of this Act, the Secretary of Agriculture (referred 
to in this section as the ``Secretary'') shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that--
            (1) describes the economic potential for the United States 
        of the widespread production and use of commercial and 
        industrial biobased products through calendar year 2025; and
            (2) as the maximum extent practicable, identifies the 
        economic potential by product area.
    (b) Analysis of Economic Indicators.--Not later than 2 years after 
the date of enactment of this Act, the Secretary shall submit to 
Congress an analysis of economic indicators of the biobased economy.

                       Subtitle D--Nuclear Energy

SEC. 945. NUCLEAR ENERGY.

    (a) Core Programs.--There are authorized to be appropriated to the 
Secretary to carry out nuclear energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle, other than those described 
in subsection (b)--
            (1) $330,000,000 for fiscal year 2006;
            (2) $355,000,000 for fiscal year 2007; and
            (3) $495,000,000 for fiscal year 2008.
    (b) Nuclear Infrastructure Support.--There are authorized to be 
appropriated to the Secretary to carry out activities under section 
942(f):
            (1) $135,000,000 for fiscal year 2006;
            (2) $140,000,000 for fiscal year 2007; and
            (3) $145,000,000 for fiscal year 2008.
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under section 943--
                    (A) $150,000,000 for fiscal year 2006;
                    (B) $155,000,000 for fiscal year 2007; and
                    (C) $275,000,000 for fiscal year 2008.
            (2) For activities under section 944--
                    (A) $43,600,000 for fiscal year 2006;
                    (B) $50,100,000 for fiscal year 2007; and
                    (C) $56,000,000 for fiscal year 2008.
            (3) For activities under section 946, $6,000,000 for each 
        of fiscal years 2006 through 2008.
    (d) Limitation.--None of the funds authorized under this section 
may be used to decommission the Fast Flux Test Facility.

SEC. 946. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
    (b) Nuclear Energy Plant Optimization Program.--The Secretary shall 
carry out a Nuclear Energy Plant Optimization Program to support 
research and development activities addressing reliability, 
availability, productivity, component aging, safety, and security of 
existing nuclear power plants.
    (c) Nuclear Power 2010 Program.--
            (1) In general.--The Secretary shall carry out a Nuclear 
        Power 2010 Program, consistent with recommendations of the 
        Nuclear Energy Research Advisory Committee of the Department in 
        the report entitled ``A Roadmap to Deploy New Nuclear Power 
        Plants in the United States by 2010'' and dated October 2001.
            (2) Administration.--The Program shall include--
                    (A) use of the expertise and capabilities of 
                industry, institutions of higher education, and 
                National Laboratories in evaluation of advanced nuclear 
                fuel cycles and fuels testing;
                    (B) consideration of a variety of reactor designs 
                suitable for both developed and developing nations;
                    (C) participation of international collaborators in 
                research, development, and design efforts, as 
                appropriate; and
                    (D) encouragement for participation by institutions 
                of higher education and industry.
    (d) Generation IV Nuclear Energy Systems Initiative.--
            (1) In general.--The Secretary shall carry out a Generation 
        IV Nuclear Energy Systems Initiative to develop an overall 
        technology plan for and to support research and development 
        necessary to make an informed technical decision about the most 
        promising candidates for eventual commercial application.
            (2) Administration.--In conducting the Initiative, the 
        Secretary shall examine advanced proliferation-resistant and 
        passively safe reactor designs, including designs that--
                    (A) are economically competitive with other 
                electric power generation plants;
                    (B) have higher efficiency, lower cost, and 
                improved safety compared to reactors in operation on 
                the date of enactment of this Act;
                    (C) use fuels that are proliferation resistant and 
                have substantially reduced production of high-level 
                waste per unit of output; and
                    (D) use improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen.
    (f) Nuclear Infrastructure Support.--
            (1) In general.--The Secretary shall--
                    (A) develop and implement a strategy for the 
                facilities of the Office of Nuclear Energy, Science, 
                and Technology; and
                    (B) submit to Congress a report describing the 
                strategy, along with the budget request of the 
                President submitted to Congress for fiscal year 2006.
            (2) Administration.--The strategy shall provide a cost-
        effective means for--
                    (A) maintaining existing facilities and 
                infrastructure;
                    (B) closing unneeded facilities;
                    (C) making facility upgrades and modifications; and
                    (D) building new facilities.

SEC. 947. ADVANCED FUEL CYCLE INITIATIVE.

    (a) In General.--The Secretary, acting through the Director of the 
Office of Nuclear Energy, Science and Technology, shall conduct an 
advanced fuel recycling technology research and development program 
(referred to in this section as the ``program'') to evaluate 
proliferation-resistant fuel recycling and transmutation technologies 
that minimize environmental or public health and safety impacts as an 
alternative to aqueous reprocessing technologies deployed as of the 
date of enactment of this Act in support of evaluation of alternative 
national strategies for spent nuclear fuel and the Generation IV 
advanced reactor concepts.
    (b) Annual Review.--The program shall be subject to annual review 
by the Nuclear Energy Research Advisory Committee of the Department or 
other independent entity, as appropriate.
    (c) International Cooperation.--In carrying out the program, the 
Secretary is encouraged to seek opportunities to enhance the progress 
of the program through international cooperation.
    (d) Reports.--The Secretary shall submit, as part of the annual 
budget submission of the Department, a report on the activities of the 
program.

SEC. 948. NUCLEAR SCIENCE AND ENGINEERING SUPPORT FOR INSTITUTIONS OF 
              HIGHER EDUCATION.

    (a) Establishment.--The Secretary shall support a program to invest 
in human resources and infrastructure in the nuclear sciences and 
engineering and related fields (including health physics and nuclear 
and radiochemistry), consistent with departmental missions related to 
civilian nuclear research and development.
    (b) Duties.--
            (1) In general.--In carrying out the program under this 
        section, the Secretary shall--
                    (A) establish fellowship and faculty assistance 
                programs; and
                    (B) provide support for fundamental research and 
                encourage collaborative research among industry, 
                National Laboratories, and institutions of higher 
                education through the Nuclear Energy Research 
                Initiative established under section 942(a).
            (2) Entire fuel cycle.--The Secretary is encouraged to 
        support activities addressing the entire fuel cycle through 
        involvement of the Office of Nuclear Energy, Science and 
        Technology and the Office of Civilian Radioactive Waste 
        Management.
            (3) Outreach.--The Secretary shall support communication 
        and outreach related to nuclear science, engineering, and 
        nuclear waste management.
    (c) Maintaining Research and Training Reactors and Associated 
Infrastructure in Institutions of Higher Education.--Activities under 
this section may include--
            (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels;
            (2) upgrading operational instrumentation;
            (3) sharing of reactors among institutions of higher 
        education;
            (4) providing technical assistance, in collaboration with 
        the United States nuclear industry, in relicensing and 
        upgrading training reactors as part of a student training 
        program; and
            (5) providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
    (d) Interactions Between National Laboratories and Institutions of 
Higher Education.--The Secretary shall develop sabbatical fellowship 
and visiting scientist programs to encourage sharing of personnel 
between National Laboratories and institutions of higher education.
    (e) Operating and Maintenance Costs.--Funding for a research 
project provided under this section may be used to offset a portion of 
the operating and maintenance costs of a research reactor at an 
institution of higher education used in the research project.

SEC. 949. SECURITY OF NUCLEAR FACILITIES.

    The Secretary, acting through the Director of the Office of Nuclear 
Energy, Science and Technology, shall conduct a research and 
development program on cost-effective technologies for increasing--
            (1) the safety of nuclear facilities from natural 
        phenomena; and
            (2) the security of nuclear facilities from deliberate 
        attacks.

SEC. 950. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

    (a) Survey.--
            (1) In general.--Not later than August 1, 2006, the 
        Secretary shall submit to Congress the results of a survey of 
        industrial applications of large radioactive sources.
            (2) Administration.--The survey shall--
                    (A) consider well-logging sources as 1 class of 
                industrial sources;
                    (B) include information on current domestic and 
                international Department, Department of Defense, State 
                Department, and commercial programs to manage and 
                dispose of radioactive sources; and
                    (C) analyze available disposal options for 
                currently deployed or future sources and, if 
                deficiencies are noted for either deployed or future 
                sources, recommend legislative options that Congress 
                may consider to remedy identified deficiencies.
    (b) Plan.--
            (1) In general.--In conjunction with the survey conducted 
        under subsection (a), the Secretary shall establish a research 
        and development program to develop alternatives to sources 
        described in subsection (a) that reduce safety, environmental, 
        or proliferation risks to either workers using the sources or 
        the public.
            (2) Accelerators.--Miniaturized particle accelerators for 
        well-logging or other industrial applications and portable 
        accelerators for production of short-lived radioactive 
        materials at an industrial site shall be considered as part of 
        the research and development efforts.
            (3) Report.--Not later than August 1, 2006, the Secretary 
        shall submit to Congress a report describing the details of the 
        program plan.

                       Subtitle E--Fossil Energy

SEC. 951. FOSSIL ENERGY.

    (a) In General.--There are authorized to be appropriated to the 
Secretary to carry out fossil energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle--
            (1) $583,000,000 for fiscal year 2006;
            (2) $611,000,000 for fiscal year 2007; and
            (3) $626,000,000 for fiscal year 2008.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under section 954, $20,000,000 for each 
        of fiscal years 2006 through 2008.
            (2) For activities under section 955--
                    (A) $337,000,000 for fiscal year 2006;
                    (B) $364,000,000 for fiscal year 2007; and
                    (C) $394,000,000 for fiscal year 2008.
            (3) For activities under section 956--
                    (A) $20,000,000 for fiscal year 2006;
                    (B) $25,000,000 for fiscal year 2007; and
                    (C) $30,000,000 for fiscal year 2008.
            (4) For the Office of Arctic Energy under section 3197 of 
        the Floyd D. Spence National Defense Authorization Act for 
        Fiscal Year 2001 (42 U.S.C. 7144d) $25,000,000 for each of 
        fiscal years 2006 through 2008.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy 
established under section 3197 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (42 U.S.C. 7144d) $25,000,000 
for each of fiscal years 2009 through 2012.
    (d) Limitations.--
            (1) Uses.--None of the funds authorized under this section 
        may be used for Fossil Energy Environmental Restoration or 
        Import/Export Authorization.
            (2) Institutions of higher education.--Of the funds 
        authorized under subsection (b)(1), not less than 20 percent of 
        the funds appropriated for each fiscal year shall be dedicated 
        to research and development carried out at institutions of 
        higher education.

SEC. 952. OIL AND GAS RESEARCH PROGRAMS.

    (a) Oil and Gas Research.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial application of oil 
and gas, including--
            (1) exploration and production;
            (2) gas hydrates;
            (3) reservoir life and extension;
            (4) transportation and distribution infrastructure;
            (5) ultraclean fuels;
            (6) heavy oil and shale; and
            (7) related environmental research.
    (b) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of enactment of this Act and every 2 years thereafter, 
the Secretary of the Interior, in consultation with other appropriate 
Federal agencies, shall submit to Congress a report on the latest 
estimates of natural gas and oil reserves, reserves growth, and 
undiscovered resources in Federal and State waters off the coast of 
Louisiana, Texas, Alabama, and Mississippi.
    (c) Integrated Clean Power and Energy Research.--
            (1) Establishment of center.--The Secretary shall establish 
        a national center or consortium of excellence in clean energy 
        and power generation, using the resources of the Clean Power 
        and Energy Research Consortium in existence on the date of 
        enactment of this Act, to address the critical dependence of 
        the United States on energy and the need to reduce emissions.
            (2) Focus areas.--The center or consortium shall conduct a 
        program of research, development, demonstration, and commercial 
        application on integrating the following 6 focus areas:
                    (A) Efficiency and reliability of gas turbines for 
                power generation.
                    (B) Reduction in emissions from power generation.
                    (C) Promotion of energy conservation issues.
                    (D) Effectively using alternative fuels and 
                renewable energy.
                    (E) Development of advanced materials technology 
                for oil and gas exploration and use in harsh 
                environments.
                    (F) Education on energy and power generation 
                issues.

SEC. 953. METHANE HYDRATE RESEARCH.

    (a) In General.--The Methane Hydrate Research and Development Act 
of 2000 (30 U.S.C. 1902 note; Public Law 106-193) is amended to read as 
follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Methane Hydrate Research and 
Development Act of 2000'.

``SEC. 2. FINDINGS.

    ``Congress finds that--
            ``(1) in order to promote energy independence and meet the 
        increasing demand for energy, the United States will require a 
        diversified portfolio of substantially increased quantities of 
        electricity, natural gas, and transportation fuels;
            ``(2) according to the report submitted to Congress by the 
        National Research Council entitled `Charting the Future of 
        Methane Hydrate Research in the United States', the total 
        United States resources of gas hydrates have been estimated to 
        be on the order of 200,000 trillion cubic feet;
            ``(3) according to the report of the National Commission on 
        Energy Policy entitled `Ending the Energy Stalemate--A 
        Bipartisan Strategy to Meet America's Energy Challenge', and 
        dated December 2004, the United States may be endowed with over 
        1/4 of the methane hydrate deposits in the world;
            ``(4) according to the Energy Information Administration, a 
        shortfall in natural gas supply from conventional and 
        unconventional sources is expected to occur in or about 2020; 
        and
            ``(5) the National Academy of Science states that methane 
        hydrate may have the potential to alleviate the projected 
        shortfall in the natural gas supply.

``SEC. 3. DEFINITIONS.

    ``In this Act:
            ``(1) Contract.--The term `contract' means a procurement 
        contract within the meaning of section 6303 of title 31, United 
        States Code.
            ``(2) Cooperative agreement.--The term `cooperative 
        agreement' means a cooperative agreement within the meaning of 
        section 6305 of title 31, United States Code.
            ``(3) Director.--The term `Director' means the Director of 
        the National Science Foundation.
            ``(4) Grant.--The term `grant' means a grant awarded under 
        a grant agreement (within the meaning of section 6304 of title 
        31, United States Code).
            ``(5) Industrial enterprise.--The term `industrial 
        enterprise' means a private, nongovernmental enterprise that 
        has an expertise or capability that relates to methane hydrate 
        research and development.
            ``(6) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education (as defined in section 102 of the Higher 
        Education Act of 1965 (20 U.S.C. 1002)).
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Energy, acting through the Assistant Secretary for Fossil 
        Energy.
            ``(8) Secretary of commerce.--The term `Secretary of 
        Commerce' means the Secretary of Commerce, acting through the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
            ``(9) Secretary of defense.--The term `Secretary of 
        Defense' means the Secretary of Defense, acting through the 
        Secretary of the Navy.
            ``(10) Secretary of the interior.--The term `Secretary of 
        the Interior' means the Secretary of the Interior, acting 
        through the Director of the United States Geological Survey, 
        the Director of the Bureau of Land Management, and the Director 
        of the Minerals Management Service.

``SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

    ``(a) In General.--
            ``(1) Commencement of program.--Not later than 90 days 
        after the date of enactment of the Energy Research, 
        Development, Demonstration, and Commercial Application Act of 
        2005, the Secretary, in consultation with the Secretary of 
        Commerce, the Secretary of Defense, the Secretary of the 
        Interior, and the Director, shall commence a program of methane 
        hydrate research and development in accordance with this 
        section.
            ``(2) Designations.--The Secretary, the Secretary of 
        Commerce, the Secretary of Defense, the Secretary of the 
        Interior, and the Director shall designate individuals to carry 
        out this section.
            ``(3) Coordination.--The individual designated by the 
        Secretary shall coordinate all activities within the Department 
        of Energy relating to methane hydrate research and development.
            ``(4) Meetings.--The individuals designated under paragraph 
        (2) shall meet not later than 180 days after the date of 
        enactment of the Energy Research, Development, Demonstration, 
        and Commercial Application Act of 2005 and not less frequently 
        than every 180 days thereafter to--
                    ``(A) review the progress of the program under 
                paragraph (1); and
                    ``(B) coordinate interagency research and 
                partnership efforts in carrying out the program.
    ``(b) Grants, Contracts, Cooperative Agreements, Interagency Funds 
Transfer Agreements, and Field Work Proposals.--
            ``(1) Assistance and coordination.--In carrying out the 
        program of methane hydrate research and development authorized 
        by this section, the Secretary may award grants to, or enter 
        into contracts or cooperative agreements with, institutions of 
        higher education, oceanographic institutions, and industrial 
        enterprises to--
                    ``(A) conduct basic and applied research to 
                identify, explore, assess, and develop methane hydrate 
                as a commercially viable source of energy;
                    ``(B) identify methane hydrate resources through 
                remote sensing;
                    ``(C) acquire and reprocess seismic data suitable 
                for characterizing methane hydrate accumulations;
                    ``(D) assist in developing technologies required 
                for efficient and environmentally sound development of 
                methane hydrate resources;
                    ``(E) promote education and training in methane 
                hydrate resource research and resource development 
                through fellowships or other means for graduate 
                education and training;
                    ``(F) conduct basic and applied research to assess 
                and mitigate the environmental impact of hydrate 
                degassing (including both natural degassing and 
                degassing associated with commercial development);
                    ``(G) develop technologies to reduce the risks of 
                drilling through methane hydrates; and
                    ``(H) conduct exploratory drilling, well testing, 
                and production testing operations on permafrost and 
                non-permafrost gas hydrates in support of the 
                activities authorized by this paragraph, including 
                drilling of 1 or more full-scale production test wells.
            ``(2) Competitive peer review.--Funds made available under 
        paragraph (1) shall be made available based on a competitive 
        process using external scientific peer review of proposed 
        research.
    ``(c) Methane Hydrates Advisory Panel.--
            ``(1) In general.--The Secretary shall establish an 
        advisory panel (including the hiring of appropriate staff) 
        consisting of representatives of industrial enterprises, 
        institutions of higher education, oceanographic institutions, 
        State agencies, and environmental organizations with knowledge 
        and expertise in the natural gas hydrates field, to--
                    ``(A) assist in developing recommendations and 
                broad programmatic priorities for the methane hydrate 
                research and development program carried out under 
                subsection (a)(1);
                    ``(B) provide scientific oversight for the methane 
                hydrates program, including assessing progress toward 
                program goals, evaluating program balance, and 
                providing recommendations to enhance the quality of the 
                program over time; and
                    ``(C) not later than 2 years after the date of 
                enactment of the Energy Research, Development, 
                Demonstration, and Commercial Application Act of 2005, 
                and at such later dates as the panel considers 
                advisable, submit to Congress--
                            ``(i) an assessment of the methane hydrate 
                        research program; and
                            ``(ii) an assessment of the 5-year research 
                        plan of the Department of Energy.
            ``(2) Conflicts of interest.--In appointing each member of 
        the advisory panel established under paragraph (1), the 
        Secretary shall ensure, to the maximum extent practicable, that 
        the appointment of the member does not pose a conflict of 
        interest with respect to the duties of the member under this 
        Act.
            ``(3) Meetings.--The advisory panel shall--
                    ``(A) hold the initial meeting of the advisory 
                panel not later than 180 days after the date of 
                establishment of the advisory panel; and
                    ``(B) meet biennially thereafter.
            ``(4) Coordination.--The advisory panel shall coordinate 
        activities of the advisory panel with program managers of the 
        Department of Energy at appropriate national laboratories
    ``(d) Construction Costs.--None of the funds made available to 
carry out this section may be used for the construction of a new 
building or the acquisition, expansion, remodeling, or alteration of an 
existing building (including site grading and improvement and architect 
fees).
    ``(e) Responsibilities of the Secretary.--In carrying out 
subsection (b)(1), the Secretary shall--
            ``(1) facilitate and develop partnerships among government, 
        industrial enterprises, and institutions of higher education to 
        research, identify, assess, and explore methane hydrate 
        resources;
            ``(2) undertake programs to develop basic information 
        necessary for promoting long-term interest in methane hydrate 
        resources as an energy source;
            ``(3) ensure that the data and information developed 
        through the program are accessible and widely disseminated as 
        needed and appropriate;
            ``(4) promote cooperation among agencies that are 
        developing technologies that may hold promise for methane 
        hydrate resource development;
            ``(5) report annually to Congress on the results of actions 
        taken to carry out this Act; and
            ``(6) ensure, to the maximum extent practicable, greater 
        participation by the Department of Energy in international 
        cooperative efforts.

``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.

    ``(a) Agreement for Study.--The Secretary shall offer to enter into 
an agreement with the National Research Council under which the 
National Research Council shall--
            ``(1) conduct a study of the progress made under the 
        methane hydrate research and development program implemented 
        under this Act; and
            ``(2) make recommendations for future methane hydrate 
        research and development needs.
    ``(b) Report.--Not later than September 30, 2009, the Secretary 
shall submit to Congress a report containing the findings and 
recommendations of the National Research Council under this section.

``SEC. 6. REPORTS AND STUDIES FOR CONGRESS.

    ``The Secretary shall provide to the Committee on Science of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate copies of any report or study that the 
Department of Energy prepares at the direction of any committee of 
Congress relating to the methane hydrate research and development 
program implemented under this Act.

``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary to carry 
out this Act, to remain available until expended--
            ``(1) $15,000,000 for fiscal year 2006;
            ``(2) $20,000,000 for fiscal year 2007;
            ``(3) $30,000,000 for fiscal year 2008;
            ``(4) $50,000,000 for fiscal year 2009; and
            ``(5) $50,000,000 for fiscal year 2010.''.
    (b) Reclassification.--The Law Revision Counsel shall reclassify 
the Methane Hydrate Research and Development Act of 2000 (30 U.S.C. 
1902 note; Public Law 106-193) to a new chapter at the end of title 30, 
United States Code.

SEC. 954. LOW-VOLUME GAS RESERVOIR RESEARCH PROGRAM.

    (a) Definitions of GIS.--In this section, the term ``GIS'' means 
geographic information systems technology that facilitates the 
organization and management of data with a geographic component.
    (b) Program.--The Secretary shall establish a program of research, 
development, demonstration, and commercial application to maximize the 
productive capacity of marginal wells and reservoirs.
    (c) Data Collection.--Under the program, the Secretary shall 
collect data on--
            (1) the status and location of marginal wells and gas 
        reservoirs;
            (2) the production capacity of marginal wells and gas 
        reservoirs;
            (3) the location of low-pressure gathering facilities and 
        pipelines; and
            (4) the quantity of natural gas vented or flared in 
        association with crude oil production.
    (d) Analysis.--Under the program, the Secretary shall--
            (1) estimate the remaining producible reserves based on 
        variable pipeline pressures; and
            (2) recommend measures that will enable the continued 
        production of those resources.
    (e) Study.--
            (1) In general.--The Secretary may award a grant to an 
        organization of States that contain significant numbers of 
        marginal oil and natural gas wells to conduct an annual study 
        of low-volume natural gas reservoirs.
            (2) Organization with no gis capabilities.--If an 
        organization receiving a grant under paragraph (1) does not 
        have GIS capabilities, the organization shall contract with an 
        institution of higher education with GIS capabilities.
            (3) State geologists.--The organization receiving a grant 
        under paragraph (1) shall collaborate with the State geologist 
        of each State being studied.
    (f) Public Information.--The Secretary may use the data collected 
and analyzed under this section to produce maps and literature to 
disseminate to States to promote conservation of natural gas reserves.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            (1) $1,500,000 for fiscal year 2006; and
            (2) $450,000 for each of fiscal years 2007 and 2008.

SEC. 955. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

    (a) Establishment.--The Secretary shall carry out a program for 
research and development on coal mining technologies.
    (b) Cooperation.--In carrying out the program, the Secretary shall 
cooperate with appropriate Federal agencies, coal producers, trade 
associations, equipment manufacturers, institutions of higher education 
with mining engineering departments, and other relevant entities.
    (c) Program.--The research and development activities carried out 
under this section shall--
            (1) be guided by the mining research and development 
        priorities identified by the Mining Industry of the Future 
        Program and in the recommendations from relevant reports of the 
        National Academy of Sciences on mining technologies;
            (2) include activities exploring minimization of 
        contaminants in mined coal that contribute to environmental 
        concerns including development and demonstration of 
        electromagnetic wave imaging ahead of mining operations;
            (3) develop and demonstrate coal bed electromagnetic wave 
        imaging, spectroscopic reservoir analysis technology, and 
        techniques for horizontal drilling in order to--
                    (A) identify areas of high coal gas content;
                    (B) increase methane recovery efficiency;
                    (C) prevent spoilage of domestic coal reserves; and
                    (D) minimize water disposal associated with methane 
                extraction; and
            (4) expand mining research capabilities at institutions of 
        higher education.

SEC. 956. COAL AND RELATED TECHNOLOGIES PROGRAM.

    (a) In General.--In addition to the programs authorized under title 
IV, the Secretary shall conduct a program of technology research, 
development, and demonstration and commercial application for coal and 
power systems, including programs to facilitate production and 
generation of coal-based power through--
            (1) innovations for existing plants (including mercury 
        removal);
            (2) gasification systems;
            (3) advanced combustion systems;
            (4) turbines for synthesis gas derived from coal;
            (5) carbon capture and sequestration research and 
        development;
            (6) coal-derived chemicals and transportation fuels;
            (7) liquid fuels derived from low rank coal water;
            (8) solid fuels and feedstocks;
            (9) advanced coal-related research;
            (10) advanced separation technologies; and
            (11) fuel cells for the operation of synthesis gas derived 
        from coal.
    (b) Cost and Performance Goals.--
            (1) In general.--In carrying out programs authorized by 
        this section, the Secretary shall identify cost and performance 
        goals for coal-based technologies that would permit the 
        continued cost-competitive use of coal for the production of 
        electricity, chemical feedstocks, and transportation fuels in 
        2008, 2010, 2012, and 2016, and each calendar year beginning 
        after September 30, 2021.
            (2) Administration.--In establishing the cost and 
        performance goals, the Secretary shall--
                    (A) consider activities and studies undertaken as 
                of the date of enactment of this Act by industry in 
                cooperation with the Department in support of the 
                identification of the goals;
                    (B) consult with interested entities, including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote coal and 
                        advanced coal technologies;
                            (iv) environmental organizations;
                            (v) organizations representing workers; and
                            (vi) organizations representing consumers;
                    (C) not later than 120 days after the date of 
                enactment of this Act, publish in the Federal Register 
                proposed draft cost and performance goals for public 
                comments; and
                    (D) not later than 180 days after the date of 
                enactment of this Act and every 4 years thereafter, 
                submit to Congress a report describing the final cost 
                and performance goals for the technologies that 
                includes--
                            (i) a list of technical milestones; and
                            (ii) an explanation of how programs 
                        authorized in this section will not duplicate 
                        the activities authorized under the Clean Coal 
                        Power Initiative authorized under title IV.
    (c) Powder River Basin and Fort Union Lignite Coal Mercury 
Removal.--
            (1) In general.--In addition to the programs authorized by 
        subsection (a), the Secretary may establish a program to test 
        and develop technologies to control and remove mercury 
        emissions from subbituminous coal mined in the Powder River 
        Basin, and Fort Union lignite coals, that are used for the 
        generation of electricity.
            (2) Efficacy of mercury removal technology.--In carrying 
        out the program under paragraph (1), the Secretary shall 
        examine the efficacy of mercury removal technologies on coals 
        described in that paragraph that are blended with other types 
        of coal.
    (d) Fuel Cells.--
            (1) In general.--The Secretary shall conduct a program of 
        research, development, demonstration, and commercial 
        application on fuel cells for low-cost, high-efficiency, fuel-
        flexible, modular power systems.
            (2) Demonstrations.--The demonstrations referred to in 
        paragraph (1) shall include solid oxide fuel cell technology 
        for commercial, residential, and transportation applications, 
        and distributed generation systems, using improved 
        manufacturing production and processes.

SEC. 957. CARBON CAPTURE RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out a 10-year carbon 
capture research and development program to develop carbon dioxide 
capture technologies on combustion-based systems for use--
            (1) in new coal utilization facilities; and
            (2) on the fleet of coal-based units in existence on the 
        date of enactment of this Act.
    (b) Objectives.--The objectives of the program under subsection (a) 
shall be--
            (1) to develop carbon dioxide capture technologies, 
        including adsorption and absorption techniques and chemical 
        processes, to remove the carbon dioxide from gas streams 
        containing carbon dioxide potentially amenable to 
        sequestration;
            (2) to develop technologies that would directly produce 
        concentrated streams of carbon dioxide potentially amenable to 
        sequestration;
            (3) to increase the efficiency of the overall system to 
        reduce the quantity of carbon dioxide emissions released from 
        the system per megawatt generated; and
            (4) in accordance with the carbon dioxide capture program, 
        to promote a robust carbon sequestration program and continue 
        the work of the Department, in conjunction with the private 
        sector, through regional carbon sequestration partnerships.

SEC. 958. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

    The Secretary, in coordination with industry leaders in extended 
research drilling technology, shall establish a Complex Well Technology 
Testing Facility at the Rocky Mountain Oilfield Testing Center to 
increase the range of extended drilling technologies.

                          Subtitle F--Science

SEC. 961. SCIENCE.

    (a) In General.--There are authorized to be appropriated to the 
Secretary to carry out research, development, demonstration, and 
commercial application activities of the Office of Science, including 
activities authorized under this subtitle (including the amounts 
authorized under the amendment made by section 967(b) and including 
basic energy sciences, advanced scientific and computing research, 
biological and environmental research, fusion energy sciences, high 
energy physics, nuclear physics, research analysis, and infrastructure 
support)--
            (1) $4,153,000,000 for fiscal year 2006;
            (2) $4,586,000,000 for fiscal year 2007; and
            (3) $5,000,000,000 for fiscal year 2008.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under the Fusion Energy Sciences program 
        (including activities under section 962)--
                    (A) $349,000,000 for fiscal year 2006;
                    (B) $362,000,000 for fiscal year 2007; and
                    (C) $377,000,000 for fiscal year 2008.
            (2) For activities under the catalysis research program 
        established under section 964--
                    (A) $35,000,000 for fiscal year 2006;
                    (B) $36,500,000 for fiscal year 2007; and
                    (C) $38,200,000 for fiscal year 2008.
            (3) For activities under the Genomes to Life Program 
        established under section 968--
                    (A) $170,000,000 for fiscal year 2006;
                    (B) $325,000,000 for fiscal year 2007; and
                    (C) $415,000,000 for fiscal year 2008.
            (4) For construction and ancillary equipment for user 
        facilities under section 968(d) for the Genomes to Life 
        Program, of the amounts authorized under paragraph (3)--
                    (A) $70,000,000 for fiscal year 2006;
                    (B) $175,000,000 for fiscal year 2007; and
                    (C) $215,000,000 for fiscal year 2008.
            (5) For activities under the Energy-Water Supply 
        Technologies Program established under section 970, $30,000,000 
        for each of fiscal years 2006 through 2008.
    (c) Fusion Energy Sciences Program.--In addition to the funds 
authorized under subsection (b)(1), there are authorized to be 
appropriated for construction costs associated with the Fusion Energy 
Sciences Program under section 962--
            (1) $55,000,000 for fiscal year 2006;
            (2) $95,000,000 for fiscal year 2007; and
            (3) $115,000,000 for fiscal year 2008.

SEC. 962. FUSION ENERGY SCIENCES PROGRAM.

    (a) Declaration of Policy.--It shall be the policy of the United 
States to conduct research, development, demonstration, and commercial 
applications to provide for the scientific, engineering, and commercial 
infrastructure necessary to ensure that the United States is 
competitive with other countries in providing fusion energy for its own 
needs and the needs of other countries, including by demonstrating 
electric power or hydrogen production for the United States energy grid 
using fusion energy at the earliest date.
    (b) Planning.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        plan (with proposed cost estimates, budgets, and lists of 
        potential international partners) for the implementation of the 
        policy described in subsection (a) in a manner that ensures 
        that--
                    (A) existing fusion research facilities are more 
                fully used;
                    (B) fusion science, technology, theory, advanced 
                computation, modeling, and simulation are strengthened;
                    (C) new magnetic and inertial fusion research and 
                development facilities are selected based on scientific 
                innovation and cost effectiveness, and the potential of 
                the facilities to advance the goal of practical fusion 
                energy at the earliest date practicable;
                    (D) facilities that are selected are funded at a 
                cost-effective rate;
                    (E) communication of scientific results and methods 
                between the fusion energy science community and the 
                broader scientific and technology communities is 
                improved;
                    (F) inertial confinement fusion facilities are used 
                to the extent practicable for the purpose of inertial 
                fusion energy research and development;
                    (G) attractive alternative inertial and magnetic 
                fusion energy approaches are more fully explored; and
                    (H) to the extent practicable, the recommendations 
                of the Fusion Energy Sciences Advisory Committee in the 
                report on workforce planning, dated March 2004, are 
                carried out, including periodic reassessment of program 
                needs.
            (2) Costs and schedules.--The plan shall also address the 
        status of and, to the extent practicable, costs and schedules 
        for--
                    (A) the design and implementation of international 
                or national facilities for the testing of fusion 
                materials; and
                    (B) the design and implementation of international 
                or national facilities for the testing and development 
                of key fusion technologies.
    (c) United States Participation in ITER.--
            (1) Definitions.--In this subsection:
                    (A) Construction.--
                            (i) In general.--The term ``construction'' 
                        means--
                                    (I) the physical construction of 
                                the ITER facility; and
                                    (II) the physical construction, 
                                purchase, or manufacture of equipment 
                                or components that are specifically 
                                designed for the ITER facility.
                            (ii) Exclusions.--The term ``construction'' 
                        does not include the design of the facility, 
                        equipment, or components.
                    (B) ITER.--The term ``ITER'' means the 
                international burning plasma fusion research project in 
                which the President announced United States 
                participation on January 30, 2003, or any similar 
                international project.
            (2) Participation.--The United States may participate in 
        the ITER only in accordance with this subsection.
            (3) Agreement.--
                    (A) In general.--The Secretary may negotiate an 
                agreement for United States participation in the ITER.
                    (B) Contents.--Any agreement for United States 
                participation in the ITER shall, at a minimum--
                            (i) clearly define the United States 
                        financial contribution to construction and 
                        operating costs, as well as any other costs 
                        associated with a project;
                            (ii) ensure that the share of high-
                        technology components of the ITER manufactured 
                        in the United States is at least proportionate 
                        to the United States financial contribution to 
                        the ITER;
                            (iii) ensure that the United States will 
                        not be financially responsible for cost 
                        overruns in components manufactured in other 
                        ITER participating countries;
                            (iv) guarantee the United States full 
                        access to all data generated by the ITER;
                            (v) enable United States researchers to 
                        propose and carry out an equitable share of the 
                        experiments at the ITER;
                            (vi) provide the United States with a role 
                        in all collective decisionmaking related to the 
                        ITER; and
                            (vii) describe the process for 
                        discontinuing or decommissioning the ITER and 
                        any United States role in that process.
            (4) Plan.--
                    (A) Development.--The Secretary, in consultation 
                with the Fusion Energy Sciences Advisory Committee, 
                shall develop a plan for the participation of United 
                States scientists in the ITER that shall include--
                            (i) the United States research agenda for 
                        the ITER;
                            (ii) methods to evaluate whether the ITER 
                        is promoting progress toward making fusion a 
                        reliable and affordable source of power; and
                            (iii) a description of how work at the ITER 
                        will relate to other elements of the United 
                        States fusion program.
                    (B) Review.--The Secretary shall request a review 
                of the plan by the National Academy of Sciences.
            (5) Limitation.--No Federal funds shall be expended for the 
        construction of the ITER until the Secretary has submitted to 
        Congress--
                    (A) the agreement negotiated in accordance with 
                paragraph (3) and 120 days have elapsed since that 
                submission;
                    (B) a report describing the management structure of 
                the ITER and providing a fixed dollar estimate of the 
                cost of United States participation in the construction 
                of the ITER, and 120 days have elapsed since that 
                submission;
                    (C) a report describing how United States 
                participation in the ITER will be funded without 
                reducing funding for other programs in the Office of 
                Science (including other fusion programs), and 60 days 
                have elapsed since that submission; and
                    (D) the plan required by paragraph (4) (but not the 
                National Academy of Sciences review of that plan), and 
                60 days have elapsed since that submission.
            (6) Alternative to iter.--
                    (A) In general.--If at any time during the 
                negotiations on the ITER, the Secretary determines that 
                construction and operation of the ITER is unlikely or 
                infeasible, the Secretary shall submit to Congress, 
                along with the budget request of the President 
                submitted to Congress for the following fiscal year, a 
                plan for implementing a domestic burning plasma 
                experiment such as the Fusion Ignition Research 
                Experiment, including costs and schedules for the plan.
                    (B) Administration.--The Secretary shall--
                            (i) refine the plan in full consultation 
                        with the Fusion Energy Sciences Advisory 
                        Committee; and
                            (ii) transmit the plan to the National 
                        Academy of Sciences for review.

SEC. 963. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND INFRASTRUCTURE.

    (a) Facility and Infrastructure Policy.--
            (1) In general.--The Secretary shall develop and implement 
        a strategy for facilities and infrastructure supported 
        primarily from the Office of Science, the Office of Energy 
        Efficiency and Renewable Energy, the Office of Fossil Energy, 
        or the Office of Nuclear Energy, Science and Technology 
        Programs at all National Laboratories and single-purpose 
        research facilities.
            (2) Strategy.--The strategy shall provide cost-effective 
        means for--
                    (A) maintaining existing facilities and 
                infrastructure;
                    (B) closing unneeded facilities;
                    (C) making facility modifications; and
                    (D) building new facilities.
    (b) Report.--
            (1) In general.--The Secretary shall prepare and submit, 
        along with the budget request of the President submitted to 
        Congress for fiscal year 2007, a report describing the strategy 
        developed under subsection (a).
            (2) Contents.--For each National Laboratory and single-
        purpose research facility that is primarily used for science 
        and energy research, the report shall contain--
                    (A) the current priority list of proposed 
                facilities and infrastructure projects, including cost 
                and schedule requirements;
                    (B) a current 10-year plan that demonstrates the 
                reconfiguration of its facilities and infrastructure to 
                meet its missions and to address its long-term 
                operational costs and return on investment;
                    (C) the total current budget for all facilities and 
                infrastructure funding; and
                    (D) the current status of each facility and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 964. CATALYSIS RESEARCH PROGRAM.

    (a) Establishment.--The Secretary, acting through the Office of 
Science, shall support a program of research and development in 
catalysis science consistent with the statutory authorities of the 
Department related to research and development.
    (b) Components.--The program shall include efforts to--
            (1) enable catalyst design using combinations of 
        experimental and mechanistic methodologies coupled with 
        computational modeling of catalytic reactions at the molecular 
        level;
            (2) develop techniques for high throughput synthesis, 
        assay, and characterization at nanometer and subnanometer 
        scales in situ under actual operating conditions;
            (3) synthesize catalysts with specific site architectures;
            (4) conduct research on the use of precious metals for 
        catalysis; and
            (5) translate molecular understanding to the design of 
        catalytic compounds.
    (c) Duties of the Office of Science.--In carrying out the program, 
the Director of the Office of Science shall--
            (1) support both individual investigators and 
        multidisciplinary teams of investigators to pioneer new 
        approaches in catalytic design;
            (2) develop, plan, construct, acquire, share, or operate 
        special equipment or facilities for the use of investigators in 
        collaboration with national user facilities, such as 
        nanoscience and engineering centers;
            (3) support technology transfer activities to benefit 
        industry and other users of catalysis science and engineering; 
        and
            (4) coordinate research and development activities with 
        industry and other Federal agencies.
    (d) Triennial Assessment.--Not later than 3 years after the date of 
enactment of this Act and every 3 years thereafter, the National 
Academy of Sciences shall--
            (1) review the catalysis program to measure--
                    (A) gains made in the fundamental science of 
                catalysis; and
                    (B) progress towards developing new fuels for 
                energy production and material fabrication processes; 
                and
            (2) submit to Congress a report describing the results of 
        the review.

SEC. 965. HYDROGEN.

    (a) In General.--The Secretary shall conduct a program of 
fundamental research and development in support of programs authorized 
under title VIII.
    (b) Methods.--The program shall include support for methods of 
generating hydrogen without the use of natural gas.

SEC. 966. SOLID STATE LIGHTING.

    The Secretary shall conduct a program of fundamental research on 
advance solid state lighting in support of the Next Generation Lighting 
Initiative carried out under section 912.

SEC. 967. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

    (a) Program.--
            (1) In general.--The Secretary shall conduct an advanced 
        scientific computing research and development program that 
        includes activities related to applied mathematics and 
        activities authorized by the Department of Energy High-End 
        Computing Revitalization Act of 2004 (15 U.S.C. 5541 et seq.).
            (2) Goal.--The Secretary shall carry out the program with 
        the goal of supporting departmental missions, and providing the 
        high-performance computational, networking, advanced 
        visualization technologies, and workforce resources, that are 
        required for world leadership in science.
    (b) High-Performance Computing.--Section 203 of the High-
Performance Computing Act of 1991 (15 U.S.C. 5523) is amended to read 
as follows:

``SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

    ``(a) General Responsibilities.--As part of the Program described 
in title I, the Secretary of Energy shall--
            ``(1) conduct and support basic and applied research in 
        high-performance computing and networking to support 
        fundamental research in science and engineering disciplines 
        related to energy applications; and
            ``(2) provide computing and networking infrastructure 
        support, including--
                    ``(A) the provision of high-performance computing 
                systems that are among the most advanced in the world 
                in terms of performance in solving scientific and 
                engineering problems; and
                    ``(B) support for advanced software and 
                applications development for science and engineering 
                disciplines related to energy applications.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as are necessary to 
carry out this section.''.

SEC. 968. GENOMES TO LIFE PROGRAM.

    (a) Establishment.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial application, to be 
known as the ``Genomes to Life Program'', in microbial and plant 
systems biology, protein science, and computational biology consistent 
with the statutory authorities of the Department.
    (b) Planning.--
            (1) In general.--The Secretary shall prepare a program plan 
        that describes how knowledge and capabilities would be 
        developed by the program and applied to missions of the 
        Department relating to energy security, environmental cleanup, 
        and national security.
            (2) Consultation.--The Secretary shall prepare the program 
        plan in consultation with the heads of other Federal agencies 
        that carry out relevant technology programs.
            (3) Long-term goals.--In preparing the program plan, the 
        Secretary shall focus on applying science and technology to 
        achieve the long-term goals of the program, including--
                    (A) contributing to the independence of the United 
                States from foreign energy sources, including 
                production of hydrogen;
                    (B) converting carbon dioxide to organic carbon;
                    (C) advancing environmental cleanup;
                    (D) providing the science and technology for new 
                biotechnology industries; and
                    (E) improving national security and combating 
                bioterrorism.
            (4) Short-term goals.--In preparing the program plan, the 
        Secretary shall--
                    (A) establish specific short-term goals; and
                    (B) update the goals with the annual budget 
                submission of the Secretary.
    (c) Administration.--In carrying out the program, the Secretary 
shall--
            (1) support individual investigators and multidisciplinary 
        teams of investigators;
            (2) subject to subsection (d), develop, plan, construct, 
        acquire, or operate special equipment or facilities for the use 
        of investigators conducting research, development, 
        demonstration, or commercial application in systems biology and 
        proteomics;
            (3) support technology transfer activities to benefit 
        industry and other users of systems biology and proteomics; and
            (4) coordinate activities by the Department with industry 
        and other Federal agencies.
    (d) Genomes to Life User Facilities and Ancillary Equipment.--
            (1) In general.--Subject to the availability of funds to 
        carry out this subsection, the amounts made available under 
        section 961(b)(4) shall be available for--
                    (A) projects to develop, plan, construct, acquire, 
                or operate special equipment, or instrumentation; or
                    (B) facilities at National Laboratories for 
                investigators conducting research, development, 
                demonstration, and commercial application in systems 
                biology and proteomics and associated biological 
                disciplines.
            (2) Projects.--Projects under paragraph (1)(A) may 
        include--
                    (A) the identification and characterization of 
                multiprotein complexes;
                    (B) characterization of gene regulatory networks;
                    (C) characterization of the functional repertoire 
                of complex microbial communities in their natural 
                environments at the molecular level; and
                    (D) development of computational methods and 
                capabilities to advance understanding of complex 
                biological systems and predict their behavior.
            (3) Facilities.--Facilities under paragraph (1)(B) may 
        include facilities, equipment, or instrumentation for--
                    (A) the production and characterization of 
                proteins;
                    (B) whole proteome analysis;
                    (C) characterization and imaging of molecular 
                machines; and
                    (D) analysis and modeling of cellular systems.
            (4) Facilities location and mission.--The number, location, 
        and mission of facilities under paragraph (1)(B) shall be 
        determined in a plan provided by the Secretary to Congress 
        before the construction of any such facility.
            (5) Collaboration.--
                    (A) In general.--In carrying out this subsection, 
                the Secretary shall encourage collaborations among 
                institutions of higher education, National 
                Laboratories, and industry at facilities.
                    (B) Technology transfer.--All facilities under this 
                subsection shall promote technology transfer to other 
                institutions.

SEC. 969. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.

    (a) In General.--Along with the budget request of the President 
submitted to Congress for fiscal year 2007, the Secretary shall 
establish a research and development program on material science issues 
presented by advanced fission reactors and the fusion energy program of 
the Department.
    (b) Administration.--In carrying out the program, the Secretary 
shall develop--
            (1) a catalog of material properties required for 
        applications described in subsection (a);
            (2) theoretical models for materials possessing the 
        required properties;
            (3) benchmark models against existing data; and
            (4) a roadmap to guide further research and development in 
        the area covered by the program.

SEC. 970. ENERGY-WATER SUPPLY TECHNOLOGIES PROGRAM.

    (a) Definitions.--In this section:
            (1) Foundation.--The term ``Foundation'' means the American 
        Water Works Association Research Foundation.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Program.--The term ``Program'' means the Energy-Water 
        Supply Technologies Program established by subsection (b).
    (b) Establishment.--There is established, within the Office of 
Biological and Environmental Research of the Office of Science, a 
program, to be known as the ``Energy-Water Supply Technologies 
Program'', to study--
            (1) energy-related issues associated with water resources 
        and municipal waterworks; and
            (2) supply issues related to energy production.
    (c) Program Areas.--In carrying out the Program, the Secretary 
shall conduct research and development, including research and 
development relating to--
            (1) the arsenic removal program under subsection (d);
            (2) the desalination research program under subsection (e);
            (3) the water and energy sustainability program under 
        subsection (f); and
            (4) other energy-intensive water supply and treatment 
        technologies and other technologies selected by the Secretary.
    (d) Arsenic Removal Program.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary shall enter into a 
        contract with the Foundation to use the facilities, 
        institutions, and relationships described in the matter under 
        the heading ``biological and environmental research'' of title 
        III of Senate Report 107-220 to accompany the Consolidated 
        Appropriations Resolution, 2003 (Public Law 108-7) to carry out 
        a research program to develop and demonstrate innovative 
        arsenic removal technologies.
            (2) Research.--In carrying out the arsenic removal program, 
        the Foundation shall, to the maximum extent practicable, 
        conduct research on means of--
                    (A) reducing energy costs incurred in using arsenic 
                removal technologies;
                    (B) minimizing materials, operating, and 
                maintenance costs incurred in using arsenic removal 
                technologies; and
                    (C) minimizing any quantities of waste (especially 
                hazardous waste) that result from use of arsenic 
                removal technologies.
            (3) Demonstration projects.--The Foundation shall carry out 
        peer-reviewed research and demonstration projects to develop 
        and demonstrate water purification technologies.
            (4) Administration.--Under the arsenic removal program--
                    (A) demonstration projects shall be implemented 
                with municipal water system partners to demonstrate the 
                applicability of innovative arsenic removal 
                technologies in areas with different water chemistries 
                representative of areas across the United States with 
                arsenic levels near or exceeding the guidelines of the 
                Environmental Protection Agency; and
                    (B) not less than 40 percent of the funds of the 
                Department used for demonstration projects under the 
                arsenic removal program shall be expended on projects 
                focused on the needs of and in partnership with rural 
                communities or Indian tribes.
            (5) Evaluations; technology transfer.--The Foundation shall 
        develop evaluations of cost effectiveness of arsenic removal 
        technologies used in the program and an education, training, 
        and technology transfer component for the program.
            (6) Coordination.--The Secretary shall consult with the 
        Administrator of the Environmental Protection Agency to ensure 
        that activities under the arsenic removal program are 
        coordinated with appropriate programs of the Environmental 
        Protection Agency and other Federal agencies, State programs, 
        and academia.
            (7) Reports.--Not later than 1 year after the date of 
        commencement of the arsenic removal program and annually 
        thereafter, the Secretary shall submit to Congress a report on 
        the results of the arsenic removal program.
    (e) Desalination Program.--
            (1) In general.--The Secretary, in cooperation with the 
        Commissioner of Reclamation, shall carry out a desalination 
        research program in accordance with the desalination technology 
        progress plan developed under the matter under the heading 
        ``water and related resources'' under the heading ``Bureau of 
        Reclamation'' of title II of the Energy and Water Development 
        Appropriations Act, 2002 (115 Stat. 498) and described in 
        Senate Report 107-39 to accompany S. 1171 (107th Congress).
            (2) Administration.--The desalination program shall--
                    (A) draw on the national laboratory partnership 
                established with the Bureau of Reclamation to develop 
                the national Desalination and Water Purification 
                Technology Roadmap for next-generation desalination 
                technology released in January 2003;
                    (B) focus on research relating to, and development 
                and demonstration of, technologies that are appropriate 
                for use in desalinating brackish groundwater, 
                wastewater, and other saline water supplies and 
                disposal of residual brine or salt; and
                    (C) consider the use of renewable energy sources.
            (3) Construction projects.--Under the desalination program, 
        funds made available for the program may be used for 
        construction projects, including completion of the National 
        Desalination Research Center for brackish groundwater and 
        ongoing facility operational costs.
            (4) Steering committee.--
                    (A) Establishment.--The Secretary and the 
                Commissioner of Reclamation shall jointly establish a 
                steering committee for the desalination program.
                    (B) Chair.--The steering committee shall be jointly 
                chaired by--
                            (i) 1 representative from the Program; and
                            (ii) 1 representative from the Bureau of 
                        Reclamation.
    (f) Water and Energy Sustainability Program.--
            (1) In general.--The Secretary shall carry out a research 
        program to develop technologies to assist in ensuring that 
        sufficient quantities of water are available to meet present 
        and future requirements.
            (2) Assessments.--Under the program and in collaboration 
        with other programs within the Department (including programs 
        within the Offices of Fossil Energy and Energy Efficiency and 
        Renewable Energy), the Secretary of the Interior, the Corps of 
        Engineers, the Environmental Protection Agency, the Department 
        of Commerce, the Department of Defense, State agencies, 
        nongovernmental agencies, and academia, the Secretary shall 
        assess the current state of knowledge and program activities 
        concerning--
                    (A) future water resources needed to support energy 
                production within the United States, including the 
                water needs for hydropower and thermo-electric power 
                generation;
                    (B) future energy resources needed to support 
                development of water purification and treatment, 
                including desalination and long-distance water 
                conveyance;
                    (C) reuse and treatment of water produced as a 
                byproduct of oil and gas extraction;
                    (D) use of impaired and nontraditional water 
                supplies for energy production and other uses; and
                    (E) technologies to reduce water use in energy 
                production.
            (3) Tools.--In addition to the assessments conducted under 
        paragraph (2), the Secretary shall--
                    (A) develop a research plan that defines the 
                scientific and technology development needs and 
                activities required to support--
                            (i) long-term water needs and planning for 
                        energy sustainability;
                            (ii) use of impaired water for energy 
                        production and other uses; and
                            (iii) reduction of water use in energy 
                        production;
                    (B) carry out the research plan required under 
                subparagraph (A), including development of numerical 
                models, decision analysis tools, economic analysis 
                tools, databases, planning methodologies, and 
                strategies;
                    (C) implement at least 3 planning demonstration 
                projects using the models, tools, and planning 
                approaches developed under subparagraph (B) and assess 
                the viability of those tools on the scale of river 
                basins with at least 1 demonstration involving an 
                international border; and
                    (D) transfer those tools to other Federal agencies, 
                State agencies, nonprofit organizations, industry, and 
                academia for use in their energy and water 
                sustainability efforts.
            (4) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the water and energy sustainability program that--
                    (A) describes the research elements described under 
                paragraph (2); and
                    (B) makes recommendations for a management 
                structure that optimizes use of Federal resources and 
                programs.
    (g) Cost Sharing.--
            (1) Research projects.--A research project under this 
        section shall not require cost-sharing.
            (2) Demonstration projects.--Each demonstration project 
        carried out under the Program shall be carried out in 
        accordance with the cost-sharing requirements of section 1002.

SEC. 971. SPALLATION NEUTRON SOURCE.

    (a) Definitions.--In this section:
            (1) SING.--The term ``SING'' means the Spallation Neutron 
        Source Instruments Next Generation major item of equipment.
            (2) SNS power upgrade.--The term ``SNS power upgrade'' 
        means the Spallation Neutron Source power upgrade described in 
        the 20-year facilities plan of the Office of Science of the 
        Department.
            (3) SNS second target station.--The term ``SNS second 
        target station'' the Spallation Neutron Source second target 
        station described in the 20-year facilities plan of the Office 
        of Science of the Department.
            (4) Spallation neutron source facility.--The terms 
        ``Spallation Neutron Source Facility'' and ``Facility'' mean 
        the completed Spallation Neutron Source scientific user 
        facility located at Oak Ridge National Laboratory, Oak Ridge, 
        Tennessee.
            (5) Spallation neutron source project.--The terms 
        ``Spallation Neutron Source Project'' and ``Project'' means 
        Department Project 99-E-334, Oak Ridge National Laboratory, Oak 
        Ridge, Tennessee.
    (b) Spallation Neutron Source Project.--
            (1) In general.--The Secretary shall submit to Congress, as 
        part of the annual budget request of the President submitted to 
        Congress, a report on progress on the Spallation Neutron Source 
        Project.
            (2) Contents.--The report shall include for the Project--
                    (A) a description of the achievement of milestones;
                    (B) a comparison of actual costs to estimated 
                costs; and
                    (C) any changes in estimated Project costs or 
                schedule.
    (c) Spallation Neutron Source Facility Plan.--
            (1) In general.--The Secretary shall develop an operational 
        plan for the Spallation Neutron Source Facility that ensures 
        that the Facility is employed to the full capability of the 
        Facility in support of the study of advanced materials, 
        nanoscience, and other missions of the Office of Science of the 
        Department.
            (2) Plan.--The operational plan shall--
                    (A) include a plan for the operation of an 
                effective scientific user program that--
                            (i) is based on peer review of proposals 
                        submitted for use of the Facility;
                            (ii) includes scientific and technical 
                        support to ensure that external users, 
                        including researchers based at institutions of 
                        higher education, are able to make full use of 
                        a variety of high quality scientific 
                        instruments; and
                            (iii) phases in systems upgrades to ensure 
                        that the Facility remains at the forefront of 
                        international scientific endeavors in the field 
                        of the Facility throughout the operating life 
                        of the Facility;
                    (B) include an ongoing program to develop new 
                instruments that builds on the high performance neutron 
                source and that allows neutron scattering techniques to 
                be applied to a growing range of scientific problems 
                and disciplines; and
                    (C) address the status of and, to the maximum 
                extent practicable, costs and schedules for--
                            (i) full user mode operations of the 
                        Facility;
                            (ii) instrumentation built at the Facility 
                        during the operating phase through full use of 
                        the experimental hall, including the SING;
                            (iii) the SNS power upgrade; and
                            (iv) the SNS second target station.
    (d) Authorization of Appropriations.--
            (1) Spallation neutron source project.--There is authorized 
        to be appropriated to carry out the Spallation Neutron Source 
        Project for the lifetime of the Project $1,411,700,000 for 
        total project costs, of which--
                    (A) $1,192,700,000 shall be used for the costs of 
                construction; and
                    (B) $219,000,000 shall be used for other Project 
                costs.
            (2) Spallation neutron source facility.--
                    (A) In general.--Except as provided in subparagraph 
                (B), there is authorized to be appropriated for the 
                Spallation Neutron Source Facility for--
                            (i) the SING, $75,000,000 for fiscal year 
                        2006; and
                            (ii) the SNS power upgrade, $160,000,000 
                        for each of fiscal years 2007 and 2008.
                    (B) Insufficient stockpiles of heavy water.--If 
                stockpiles of heavy water of the Department are 
                insufficient to meet the needs of the Facility, there 
                is authorized to be appropriated for the Facility 
                $172,000,000 for fiscal year 2007.

                 Subtitle G--International Cooperation

SEC. 981. WESTERN HEMISPHERE ENERGY COOPERATION.

    (a) Program.--The Secretary shall carry out a program to promote 
cooperation on energy issues with countries of the Western Hemisphere.
    (b) Activities.--Under the program, the Secretary shall fund 
activities to work with countries of the Western Hemisphere to--
            (1) increase the production of energy supplies;
            (2) improve energy efficiency; and
            (3) assist in the development and transfer of energy supply 
        and efficiency technologies that would have a beneficial impact 
        on world energy markets.
    (c) Participation by Institutions of Higher Education.--To the 
extent practicable, the Secretary shall carry out the program under 
this section with the participation of institutions of higher education 
so as to take advantage of the acceptance of institutions of higher 
education by countries of the Western Hemisphere as sources of unbiased 
technical and policy expertise when assisting the Secretary in--
            (1) evaluating new technologies;
            (2) resolving technical issues;
            (3) working with those countries in the development of new 
        policies; and
            (4) training policymakers, particularly in the case of 
        institutions of higher education that involve the participation 
        of minority students, such as--
                    (A) Hispanic-serving institutions; and
                    (B) part B institutions.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $10,000,000 for fiscal year 2006;
            (2) $13,000,000 for fiscal year 2007; and
            (3) $16,000,000 for fiscal year 2008.

SEC. 982. COOPERATION BETWEEN UNITED STATES AND ISRAEL.

    (a) Findings.--Congress finds that--
            (1) on February 1, 1996, the United States and Israel 
        signed the agreement entitled ``Agreement between the 
        Department of Energy of the United States of America and the 
        Ministry of Energy and Infrastructure of Israel Concerning 
        Energy Cooperation'', (referred to in this section as the 
        ``Agreement'') to establish a framework for collaboration 
        between the United States and Israel in energy research and 
        development activities;
            (2) the Agreement entered into force in February 2000;
            (3) in February 2005, the Agreement was automatically 
        renewed for 1 additional 5-year period pursuant to Article X of 
        the Agreement; and
            (4) under the Agreement, the United States and Israel may 
        cooperate in energy research and development in a variety of 
        alternative and advanced energy sectors.
    (b) Report to Congress.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Energy and Natural Resources and the Committee on Foreign Relations of 
the Senate and the Committee on Energy and Commerce and the Committee 
on International Relations of the House of Representatives a report 
that describes--
            (1) the ways in which the United States and Israel have 
        cooperated on energy research and development activities under 
        the Agreement;
            (2) projects initiated pursuant to the Agreement; and
            (3) plans for future cooperation and joint projects under 
        the Agreement.
    (c) Sense of Congress.--It is the sense of Congress that energy 
cooperation between the Governments of the United States and Israel is 
mutually beneficial in the development of energy technology.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 1001. AVAILABILITY OF FUNDS.

    Funds authorized to be appropriated to the Department under this 
Act or an amendment made by this Act shall remain available until 
expended.

SEC. 1002. COST SHARING.

    (a) Applicability.--Notwithstanding any other provision of law, in 
carrying out a research, development, demonstration, or commercial 
application activity that is initiated after the date of enactment of 
this section, the Secretary shall require cost-sharing in accordance 
with this section.
    (b) Research and Development.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3) and subsection (f), the Secretary shall require not less 
        than 20 percent of the cost of a research or development 
        activity described in subsection (a) to be provided by a non-
        Federal source.
            (2) Exclusion.--Paragraph (1) shall not apply to a research 
        or development activity described in subsection (a) that is of 
        a basic or fundamental nature, as determined by the appropriate 
        officer of the Department.
            (3) Reduction.--The Secretary may reduce or eliminate the 
        requirement of paragraph (1) for a research and development 
        activity of an applied nature if the Secretary determines that 
        the reduction is necessary and appropriate.
    (c) Demonstration and Commercial Application.--
            (1) In general.--Except as provided in paragraph (2) and 
        subsection (f), the Secretary shall require that not less than 
        50 percent of the cost of a demonstration or commercial 
        application activity described in subsection (a) to be provided 
        by a non-Federal source.
            (2) Reduction of non-federal share.--The Secretary may 
        reduce the non-Federal share required under paragraph (1) if 
        the Secretary determines the reduction to be necessary and 
        appropriate, taking into consideration any technological risk 
        relating to the activity.
    (d) Calculation of Amount.--In calculating the amount of a non-
Federal contribution under this section, the Secretary--
            (1) may include allowable costs in accordance with the 
        applicable cost principles, including--
                    (A) cash;
                    (B) personnel costs;
                    (C) the value of a service, other resource, or 
                third party in-kind contribution determined in 
                accordance with the applicable circular of the Office 
                of Management and Budget;
                    (D) indirect costs or facilities and administrative 
                costs; or
                    (E) any funds received under the power program of 
                the Tennessee Valley Authority (except to the extent 
                that such funds are made available under an annual 
                appropriation Acts); and
            (2) shall not include--
                    (A) revenues or royalties from the prospective 
                operation of an activity beyond the time considered in 
                the award;
                    (B) proceeds from the prospective sale of an asset 
                of an activity; or
                    (C) other appropriated Federal funds.
    (e) Repayment of Federal Share.--The Secretary shall not require 
repayment of the Federal share of a cost-shared activity under this 
section as a condition of making an award.
    (f) Exclusions.--This section shall not apply to--
            (1) a cooperative research and development agreement under 
        the Stevenson-Wydler Technology Innovation Act of 1990 (15 
        U.S.C. 3701 et seq.);
            (2) a fee charged for the use of a Department facility; or
            (3) an award under--
                    (A) the small business innovation research program 
                under section 9 of the Small Business Act (15 U.S.C. 
                638); or
                    (B) the small business technology transfer program 
                under that section.

SEC. 1003. MERIT REVIEW OF PROPOSALS.

    Awards of funds authorized under this Act or an amendment made by 
this Act shall be made only after an impartial review of the scientific 
and technical merit of the proposals for the awards has been carried 
out by or for the Department.

SEC. 1004. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory Boards.--
            (1) Establishment.--The Secretary shall establish 1 or more 
        advisory boards to review research, development, demonstration, 
        and commercial application programs of the Department in energy 
        efficiency, renewable energy, nuclear energy, and fossil 
        energy.
            (2) Alternatives.--The Secretary may--
                    (A) designate an existing advisory board within the 
                Department to fulfill the responsibilities of an 
                advisory board under this section; and
                    (B) enter into appropriate arrangements with the 
                National Academy of Sciences to establish such an 
                advisory board.
    (b) Use of Existing Committees.--The Secretary shall continue to 
use the scientific program advisory committees chartered under the 
Federal Advisory Committee Act (5 U.S.C. App.) by the Office of Science 
to oversee research and development programs under that Office.
    (c) Membership.--Each advisory board under this section shall 
consist of persons with appropriate expertise representing a diverse 
range of interests.
    (d) Meetings and Goals.--
            (1) Meetings.--Each advisory board under this section shall 
        meet at least semiannually to review and advise on the progress 
        made by the respective 1 or more research, development, 
        demonstration, and commercial application programs.
            (2) Goals.--The advisory board shall review the measurable 
        cost and performance-based goals for the programs as 
        established under section 902, and the progress on meeting the 
        goals.
    (e) Periodic Reviews and Assessments.--
            (1) In general.--The Secretary shall enter into appropriate 
        arrangements with the National Academy of Sciences to conduct 
        periodic reviews and assessments of--
                    (A) the programs authorized by this Act and 
                amendments made by this Act;
                    (B) the measurable cost and performance-based goals 
                for the programs as established under section 902, if 
                any; and
                    (C) the progress on meeting the goals.
            (2) Timing.--The reviews and assessments shall be conducted 
        every 5 years or more often as the Secretary considers 
        necessary.
            (3) Reports.--The Secretary shall submit to Congress 
        reports describing the results of all the reviews and 
        assessments.

SEC. 1005. IMPROVED TECHNOLOGY TRANSFER OF ENERGY TECHNOLOGIES.

    (a) Technology Transfer Coordinator.--The Secretary shall appoint a 
Technology Transfer Coordinator to be the principal advisor to the 
Secretary on all matters relating to technology transfer and 
commercialization.
    (b) Qualifications.--The Coordinator shall be an individual who, by 
reason of professional background and experience, is specially 
qualified to advise the Secretary on matters pertaining to technology 
transfer at the Department.
    (c) Duties of the Coordinator.--The Coordinator shall oversee--
            (1) the activities of the Technology Transfer Working Group 
        established under subsection (d);
            (2) the expenditure of funds allocated for technology 
        transfer within the Department;
            (3) the activities of each technology partnership ombudsman 
        appointed under section 11 of the Technology Transfer 
        Commercialization Act of 2000 (42 U.S.C. 7261c); and
            (4) efforts to engage private sector entities, including 
        venture capital companies.
    (d) Technology Transfer Working Group.--The Secretary shall 
establish a Technology Transfer Working Group, which shall consist of 
representatives of the National Laboratories and single-purpose 
research facilities, to--
            (1) coordinate technology transfer activities occurring at 
        National Laboratories and single-purpose research facilities;
            (2) exchange information about technology transfer 
        practices, including alternative approaches to resolution of 
        disputes involving intellectual property rights and other 
        technology transfer matters; and
            (3) develop and disseminate to the public and prospective 
        technology partners information about opportunities and 
        procedures for technology transfer with the Department, 
        including opportunities and procedures related to alternative 
        approaches to resolution of disputes involving intellectual 
        property rights and other technology transfer matters.
    (e) Technology Commercialization Fund.--The Secretary shall 
establish an Energy Technology Commercialization Fund, using 0.5 
percent of the amount made available to the Department for each fiscal 
year, to be used to provide matching funds with private partners to 
promote promising technologies for commercial purposes.
    (f) Technology Transfer Responsibility.--Nothing in this section 
affects the technology transfer responsibilities of Federal employees 
under the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3701 et seq.).
    (g) Planning and Reporting.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        technology transfer execution plan.
            (2) Updates.--Each year after the submission of the plan 
        under paragraph (1), the Secretary shall submit to Congress an 
        updated execution plan and reports that describe progress 
        toward meeting goals set forth in the execution plan and the 
        funds expended under subsection (e).

SEC. 1006. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Definitions.--In this section:
            (1) Program.--The term ``Program'' means the Technology 
        Infrastructure Program established under subsection (b).
            (2) Technology cluster.--The term ``technology cluster'' 
        means a concentration of technology-related business concerns, 
        institutions of higher education, or nonprofit institutions, 
        that reinforce each other's performance in the areas of 
        technology development through formal or informal 
        relationships.
            (3) Technology-related business concern.--The term 
        ``technology-related business concern'' means a for-profit 
        corporation, company, association, firm, partnership, or small 
        business concern that--
                    (A) conducts scientific or engineering research;
                    (B) develops new technologies;
                    (C) manufactures products based on new 
                technologies; or
                    (D) performs technological services.
    (b) Establishment.--The Secretary shall establish a Technology 
Infrastructure Program in accordance with this section.
    (c) Purpose.--The purpose of the Program shall be to improve the 
ability of National Laboratories and single-purpose research facilities 
to support departmental missions by--
            (1) stimulating the development of technology clusters that 
        can support departmental missions at the National Laboratories 
        or single-purpose research facilities;
            (2) improving the ability of National Laboratories and 
        single-purpose research facilities to leverage and benefit from 
        commercial research, technology, products, processes, and 
        services; and
            (3) encouraging the exchange of scientific and 
        technological expertise between--
                    (A) National Laboratories or single-purpose 
                research facilities; and
                    (B) entities that can support departmental missions 
                at the National Laboratories or single-purpose research 
                facilities, such as--
                            (i) institutions of higher education;
                            (ii) technology-related business concerns;
                            (iii) nonprofit institutions; and
                            (iv) agencies of State, tribal, or local 
                        governments.
    (d) Projects.--The Secretary shall authorize the director of each 
National Laboratory or single-purpose research facility to implement 
the Program at the National Laboratory or facility through 1 or more 
projects that meet the requirements of subsections (e) and (f).
    (e) Program Requirements.--
            (1) In general.--Each project funded under this section 
        shall meet the requirements of this subsection.
            (2) Entities.--Each project shall include at least 1 of 
        each of the following entities:
                    (A) A business.
                    (B) An institution of higher education.
                    (C) A nonprofit institution.
                    (D) An agency of a State, local, or tribal 
                government.
            (3) Cost-sharing.--
                    (A) In general.--The costs of carrying out projects 
                under this section shall be shared in accordance with 
                section 1002.
                    (B) Sources.--The calculation of costs paid by the 
                non-Federal sources for a project shall include cash, 
                personnel, services, equipment, and other resources 
                expended on the project after the commencement of the 
                project.
                    (C) Research and development expenses.--Independent 
                research and development expenses of Government 
                contractors that qualify for reimbursement under 
                section 31.205-18(e) of title 48, Code of Federal 
                Regulations, issued pursuant to section 25(c)(1) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                421(c)(1)), may be credited towards costs paid by non-
                Federal sources to a project, if the expenses meet the 
                other requirements of this section.
            (4) Competitive selection.--A project under this section 
        shall be competitively selected using procedures determined by 
        the Secretary.
            (5) Accounting.--Any participant that receives funds under 
        this section may use generally accepted accounting principles 
        for maintaining accounts, books, and records relating to the 
        project.
            (6) Duration.--No Federal funds shall be made available 
        under this section for a construction project or for any 
        project with a duration of more than 5 years.
    (f) Selection Criteria.--
            (1) Departmental missions.--The Secretary shall allocate 
        funds under this section only if the Director of the National 
        Laboratory or single-purpose research facility managing the 
        project determines that the project is likely to improve the 
        ability of the National Laboratory or single-purpose research 
        facility to achieve technical success in meeting departmental 
        missions.
            (2) Other criteria.--In selecting a project to receive 
        Federal funds, the Secretary shall consider--
                    (A) the potential of the project to promote the 
                development of a commercially sustainable technology 
                cluster following the period of investment by the 
                Department, which will derive most of the demand for 
                its products or services from the private sector, and 
                which will support departmental missions at the 
                participating National Laboratory or single-purpose 
                research facility;
                    (B) the potential of the project to promote the use 
                of commercial research, technology, products, 
                processes, and services by the participating National 
                Laboratory or single-purpose research facility to 
                achieve its mission or the commercial development of 
                technological innovations made at the participating 
                National Laboratory or single-purpose research 
                facility;
                    (C) the extent to which the project involves a wide 
                variety and number of institutions of higher education, 
                nonprofit institutions, and technology-related business 
                concerns that can support the missions of the 
                participating National Laboratory or single-purpose 
                research facility and that will make substantive 
                contributions to achieving the goals of the project;
                    (D) the extent to which the project focuses on 
                promoting the development of technology-related 
                business concerns that are small businesses or involves 
                such small businesses substantively in the project; and
                    (E) such other criteria as the Secretary determines 
                to be appropriate.
    (g) Allocation.--In allocating funds for projects approved under 
this section, the Secretary shall provide--
            (1) the Federal share of the project costs; and
            (2) additional funds to the National Laboratory or single-
        purpose research facility managing the project to permit the 
        National Laboratory or single-purpose research facility to 
        carry out activities relating to the project, and to coordinate 
        the activities with the project.
    (h) Report to Congress.--Not later than July 1, 2008, the Secretary 
shall submit to Congress a report on whether the Program should be 
continued and, if so, how the program should be managed.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section 
$10,000,000 for each of fiscal years 2006 through 2008.

SEC. 1007. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

    (a) Small Business Advocate.--The Secretary shall require the 
Director of each National Laboratory, and may require the Director of a 
single-purpose research facility, to designate a small business 
advocate to--
            (1) increase the participation of small business concerns, 
        including socially and economically disadvantaged small 
        business concerns (as defined in section 8(a)(4) of the Small 
        Business Act (15 U.S.C. 637(a)(4))), in procurement, 
        collaborative research, technology licensing, and technology 
        transfer activities conducted by the National Laboratory or 
        single-purpose research facility;
            (2) report to the Director of the National Laboratory or 
        single-purpose research facility on the actual participation of 
        small business concerns in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
            (3) make available to small business concerns training, 
        mentoring, and information on how to participate in procurement 
        and collaborative research activities;
            (4) increase the awareness inside the National Laboratory 
        or single-purpose research facility of the capabilities and 
        opportunities presented by small business concerns; and
            (5) establish guidelines for the program under subsection 
        (b) and report on the effectiveness of the program to the 
        Director of the National Laboratory or single-purpose research 
        facility.
    (b) Establishment of Small Business Assistance Program.--The 
Secretary shall require the Director of each National Laboratory, and 
may require the Director of a single-purpose research facility, to 
establish a program to provide small business concerns with--
            (1) assistance directed at making the small business 
        concerns more effective and efficient subcontractors or 
        suppliers to the National Laboratory or single-purpose research 
        facilities; or
            (2) general technical assistance, the cost of which shall 
        not exceed $10,000 per instance of assistance, to improve the 
        products or services of the small business concern.
    (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to small business concerns.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for activities under this section 
$5,000,000 for each of fiscal years 2006 through 2008.

SEC. 1008. OUTREACH.

    The Secretary shall ensure that each program authorized by this Act 
or an amendment made by this Act includes an outreach component to 
provide information, as appropriate, to manufacturers, consumers, 
engineers, architects, builders, energy service companies, institutions 
of higher education, facility planners and managers, State and local 
governments, and other entities.

SEC. 1009. RELATIONSHIP TO OTHER LAWS.

    Except as otherwise provided in this Act or an amendment made by 
this Act, the Secretary shall carry out the research, development, 
demonstration, and commercial application programs, projects, and 
activities authorized by this Act or an amendment made by this Act in 
accordance with the applicable provisions of--
            (1) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.);
            (2) the Federal Nonnuclear Energy Research and Development 
        Act of 1974 (42 U.S.C. 5901 et seq.);
            (3) the Energy Policy Act of 1992 (42 U.S.C. 13201 et 
        seq.);
            (4) the Stevenson-Wydler Technology Innovation Act of 1980 
        (15 U.S.C. 3701 et seq.);
            (5) chapter 18 of title 35, United States Code (commonly 
        known as the ``Bayh-Dole Act''); and
            (6) any other Act under which the Secretary is authorized 
        to carry out the programs, projects, and activities.

SEC. 1010. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Effective Top-Level Coordination of Research and Development 
Programs.--Section 202 of the Department of Energy Organization Act (42 
U.S.C. 7132) is amended by striking subsection (b) and inserting the 
following:
    ``(b)(1) There shall be in the Department an Under Secretary for 
Energy and Science, who shall be appointed by the President, by and 
with the advice and consent of the Senate.
    ``(2) The Under Secretary shall be compensated at the rate provided 
for level III of the Executive Schedule under section 5314 of title 5, 
United States Code.
    ``(3) The Under Secretary for Energy and Science shall be appointed 
from among persons who--
            ``(A) have extensive background in scientific or 
        engineering fields; and
            ``(B) are well qualified to manage the civilian research 
        and development programs of the Department.
    ``(4) The Under Secretary for Energy and Science shall--
            ``(A) serve as the Science and Technology Advisor to the 
        Secretary;
            ``(B) monitor the research and development programs of the 
        Department in order to advise the Secretary with respect to any 
        undesirable duplication or gaps in the programs;
            ``(C) advise the Secretary with respect to the well-being 
        and management of the multipurpose laboratories under the 
        jurisdiction of the Department;
            ``(D) advise the Secretary with respect to education and 
        training activities required for effective short- and long-term 
        basic and applied research activities of the Department;
            ``(E) advise the Secretary with respect to grants and other 
        forms of financial assistance required for effective short- and 
        long-term basic and applied research activities of the 
        Department;
            ``(F) bear primary responsibility for energy conservation; 
        and
            ``(G) exercise authority and responsibility over Assistant 
        Secretaries carrying out energy research and development and 
        energy technology functions under sections 203 and 209, as well 
        as other elements of the Department assigned by the 
        Secretary.''.
    (b) Reconfiguration of Position of Director of the Office of 
Science.--
            (1) In general.--Section 209 of the Department of Energy 
        Organization Act (41 U.S.C. 7139) is amended to read as 
        follows:

                          ``office of science

    ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary for Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Assistant Secretary for Science shall be in addition to 
the Assistant Secretaries provided for under section 203.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary for Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of the research, as well as 
other functions vested in the Secretary that the Secretary may assign 
to the Assistant Secretary.''.
            (2) Director of the office of science.--
                    (A) In general.--Notwithstanding section 3345(b)(1) 
                of title 5, United States Code, the President may 
                designate the Director of the Office of Science who 
                served immediately before the date of enactment of this 
                Act to act in the office of the Assistant Secretary of 
                Energy for Science until the office is filled as 
                provided in section 209 of the Department of Energy 
                Organization Act (as amended by paragraph (1)).
                    (B) Compensation.--While so acting, the person 
                shall receive compensation at the rate provided by 
                section 209(a) of that Act (as amended by paragraph 
                (1)) for the office of Assistant Secretary for Science.
    (c) Additional Assistant Secretary Position To Enable Improved 
Management of Nuclear Energy Issues.--
            (1) In general.--Section 203(a) of the Department of Energy 
        Organization Act (42 U.S.C. 7133(a)) is amended in the first 
        sentence by striking ``There shall be in the Department six 
        Assistant Secretaries'' and inserting ``Except as provided in 
        section 209, there shall be in the Department 7 Assistant 
        Secretaries''.
            (2) Assistant secretary level.--It is the sense of Congress 
        that the leadership for departmental missions in nuclear energy 
        should be at the Assistant Secretary level.
    (d) Technical and Conforming Amendments.--
            (1) Section 202 of the Department of Energy Organization 
        Act (42 U.S.C. 7132) (as amended by subsection (b)(1)) is 
        amended by adding at the end the following:
    ``(d)(1) There shall be in the Department an Under Secretary, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe, consistent with this section.
    ``(2) The Under Secretary shall be compensated at the rate provided 
for level III of the Executive Schedule under section 5314 of title 5, 
United States Code.
    ``(e)(1) There shall be in the Department a General Counsel, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe.
    ``(2) The General Counsel shall be compensated at the rate provided 
for level IV of the Executive Schedule under section 5315 of title 5, 
United States Code.''.
            (2) Section 5314 of title 5, United States Code, is amended 
        by striking ``Under Secretaries of Energy (2)'' and inserting 
        ``Under Secretaries of Energy (3)''.
            (3) Section 5315 of title 5, United States Code, is 
        amended--
                    (A) by striking ``Assistant Secretaries of Energy 
                (6)'' and inserting ``Assistant Secretaries of Energy 
                (8)''; and
                    (B) by striking ``Director, Office of Science, 
                Department of Energy.''.

SEC. 1011. OTHER TRANSACTIONS AUTHORITY.

    Section 646 of the Department of Energy Organization Act (42 U.S.C. 
7256) is amended by adding at the end the following:
    ``(g)(1) In addition to other authorities granted to the Secretary 
under any other provision of law, the Secretary may enter into other 
transactions on such terms as the Secretary may consider appropriate in 
furtherance of research, development, or demonstration functions vested 
in the Secretary.
    ``(2) The other transactions shall not be subject to section 9 of 
the Federal Nonnuclear Energy Research and Development Act of 1974 (42 
U.S.C. 5908).
    ``(3)(A) The Secretary shall ensure that--
            ``(i) to the maximum extent the Secretary determines 
        practicable, no transaction entered into under paragraph (1) 
        provides for research, development, or demonstration that 
        duplicates research, development, or demonstration being 
        conducted under existing projects carried out by the 
        Department;
            ``(ii) to the extent the Secretary determines practicable, 
        the funds provided by the Federal Government under a 
        transaction authorized by paragraph (1) do not exceed the total 
        amount provided by other parties to the transaction; and
            ``(iii) to the extent the Secretary determines practicable, 
        competitive, merit-based selection procedures shall be used 
        when entering into transactions under paragraph (1).
    ``(B) A transaction authorized by paragraph (1) may be used for a 
research, development, or demonstration project only if the Secretary 
determines the use of a standard contract, grant, or cooperative 
agreement for the project is not feasible or appropriate.
    ``(4)(A) The Secretary shall protect from disclosure (including 
disclosure under section 552 of title 5, United States Code) for up to 
5 years after the date the information is received by the Secretary--
            ``(i) a proposal, proposal abstract, and supporting 
        documents submitted to the Department in a competitive or 
        noncompetitive process having the potential for resulting in an 
        award to the party submitting the information entering into a 
        transaction under paragraph (1); and
            ``(ii) a business plan and technical information relating 
        to a transaction authorized by paragraph (1) submitted to the 
        Department as confidential business information.
    ``(B) The Secretary may protect from disclosure, for up to 5 years 
after the information was developed, any information developed pursuant 
to a transaction under paragraph (1) which developed information is of 
a character that it would be protected from disclosure under section 
552(b)(4) of title 5, United States Code, if obtained from a person 
other than a Federal agency.
    ``(5)(A) Not later than 90 days after the date of enactment of this 
subsection, the Secretary shall prescribe guidelines for using other 
transactions authorized by paragraph (1).
    ``(B) The guidelines shall be published in the Federal Register for 
public comment under rulemaking procedures of the Department.
    ``(6) The authority of the Secretary under this subsection may be 
delegated only to an officer of the Department who is appointed by the 
President by and with the advice and consent of the Senate and may not 
be delegated to any other person.''.

SEC. 1012. PRIZES FOR ACHIEVEMENT IN GRAND CHALLENGES OF SCIENCE AND 
              TECHNOLOGY.

    (a) Authority.--The Secretary may carry out a program to award cash 
prizes in recognition of breakthrough achievements in research, 
development, demonstration, and commercial application that have the 
potential for application to the performance of the mission of the 
Department.
    (b) Competition Requirements.--The program under subsection (a) may 
include prizes for the achievement of goals articulated by the 
Secretary in a specific area through a widely advertised solicitation 
of submission of results for research, development, demonstration, or 
commercial application projects.
    (c) Relationship to Other Authority.--The program under subsection 
(a) may be carried out in conjunction with or in addition to the 
exercise of any other authority of the Secretary to acquire, support, 
or stimulate research, development, demonstration, or commercial 
application projects.

SEC. 1013. TECHNICAL CORRECTIONS.

    (a) Coal Research and Development.--
            (1) In general.--Public Law 86-599 (30 U.S.C. 661 et seq.) 
        is amended--
                    (A) by striking the first section (30 U.S.C. 661) 
                and inserting the following:
    ``Section 1. (a) This Act may be cited as the `Coal Research and 
Development Act of 1960'.
    ``(b) In this Act:
            ``(1) The term `research' means scientific, technical, and 
        economic research and the practical application of that 
        research.
            ``(2) The term `Secretary' means the Secretary of 
        Energy.'';
                    (B) in section 2 (30 U.S.C. 662), by striking 
                ``shall establish within'' and all that follows through 
                ``such Office'';
                    (C) by striking sections 3, 4, and 7 (30 U.S.C. 
                663, 664, 667); and
                    (D) by redesignating sections 5, 6, and 8 (30 
                U.S.C. 665, 666, 668) as sections 3, 4, and 5, 
                respectively.
            (2) Patents.--Section 210(a)(8) of title 35, United States 
        Code, is amended by striking ``Coal Research Development Act of 
        1960'' and inserting ``Coal Research and Development Act of 
        1960''.
    (b) Nonnuclear Energy Research and Development.--
            (1) Short title; definitions.--Section 1 of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 (42 
        U.S.C. 5902) is amended to read as follows:

                     ``short title and definitions

    ``Section 1. (a) This Act may be cited as the `Federal Nonnuclear 
Energy Research and Development Act of 1974''.
    ``(b) In this Act:
            ``(1) The term `Department' means the Department of Energy.
            ``(2) The term `Secretary' means the Secretary of 
        Energy.''.
            (2) Statement of policy.--Section 3(b) of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 (42 
        U.S.C. 5902(b)) is amended--
                    (A) in paragraph (1), by striking ``Energy Research 
                and Development Administration'' and inserting 
                ``Department'';
                    (B) in paragraph (2), by striking ``Administrator 
                of the Energy Research and Development Administration 
                (hereinafter in this Act referred to as the 
                `Administrator')'' and inserting ``Secretary''; and
                    (C) in paragraph (3)--
                            (i) by striking ``Administrator'' and 
                        inserting ``Secretary''; and
                            (ii) by inserting ``Demonstration'' after 
                        ``Cooling''.
            (3) Duties and authorities.--Section 4 of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 (42 
        U.S.C. 5903) is amended--
                    (A) by striking the section heading and inserting 
                the following:

              ``duties and authorities of the secretary'';

                and
                    (B) in the matter preceding subsection (a), by 
                striking ``Administrator'' and inserting ``Secretary''.
            (4) Comprehensive planning and programming.--Section 6 of 
        the Federal Nonnuclear Energy Research and Development Act of 
        1974 (42 U.S.C. 5905) is amended--
                    (A) by striking ``Administrator'' each place it 
                appears and inserting ``Secretary''; and
                    (B) in subsection (b)(3)--
                            (i) in subparagraph (I), by inserting 
                        ``Demonstration'' after ``Cooling''; and
                            (ii) in subparagraph (L), by inserting 
                        ``Energy'' after ``Solar''.
            (5) Forms of federal assistance.--Section 7 of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 (42 
        U.S.C. 5906) is amended--
                    (A) by striking ``Administrator'' each place it 
                appears and inserting ``Secretary''; and
                    (B) in subsection (a)(4), by striking ``of the 
                section''.
            (6) Demonstrations.--Section 8 of the Federal Nonnuclear 
        Energy Research and Development Act of 1974 (42 U.S.C. 5907) is 
        amended--
                    (A) in subsections (a) through (c), by striking 
                ``Administrator'' each place it appears and inserting 
                ``Secretary'';
                    (B) in subsection (d)--
                            (i) in the first sentence of paragraph (1), 
                        by inserting ``of the Energy Research and 
                        Development Administration'' after 
                        ``Administrator''; and
                            (ii) in paragraph (3), by striking 
                        ``Administrator'' and inserting ``Secretary''; 
                        and
                    (C) in subsection (f)--
                            (i) by striking ``Administrator'' each 
                        place it appears and inserting ``Secretary''; 
                        and
                            (ii) in the proviso of the first sentence, 
                        by striking ``Administrator's'' and inserting 
                        ``Secretary's''.
            (7) Patent policy.--Section 9 of the Federal Nonnuclear 
        Energy Research and Development Act of 1974 (42 U.S.C. 5908) is 
        amended--
                    (A) by striking ``Administration'' each place it 
                appears and inserting ``Department'';
                    (B) by striking ``Administrator'' each place it 
                appears and inserting ``Secretary''; and
                    (C) in subsection (c)(3), by striking 
                ``Administration's'' and inserting ``Department's''.
            (8) Acquisition of essential materials.--Section 12 of the 
        Federal Nonnuclear Energy Research and Development Act of 1974 
        (42 U.S.C. 5911) is amended by striking subsection (b) and 
        inserting the following:
    ``(b) A rule or order under subsection (a) shall be considered to 
be a major rule subject to chapter 8 of title 5, United States Code.''.
            (9) Water resource evaluation.--Section 13 of the Federal 
        Nonnuclear Energy Research and Development Act of 1974 (42 
        U.S.C. 5912) is amended by striking ``Administrator'' each 
        place it appears and inserting ``Secretary''.
            (10) Authorization of appropriations.--Section 16 of the 
        Federal Nonnuclear Energy Research and Development Act of 1974 
        (42 U.S.C. 5915) is amended--
                    (A) by striking the section heading and inserting 
                the following:

                  ``authorization of appropriations'';

                    (B) by striking ``(a) There may be appropriated to 
                the Administrator'' and inserting ``There may be 
                appropriated to the Secretary''; and
                    (C) by striking subsections (b) and (c).
            (11) Central source of nonnuclear energy information.--
        Section 17 of the Federal Nonnuclear Energy Research and 
        Development Act of 1974 (42 U.S.C. 5916) is amended--
                    (A) by striking ``Administrator'' each place it 
                appears and inserting ``Secretary'';
                    (B) in the first sentence, by striking 
                ``Administrator's'';
                    (C) in the second sentence, by striking ``he'' and 
                inserting ``the Secretary'';
                    (D) in the third sentence--
                            (i) in paragraph (2) of the first proviso, 
                        by striking ``section 1905 or title 18'' and 
                        inserting ``section 1905 of title 18''; and
                            (ii) in subparagraph (B) of the second 
                        proviso--
                                    (I) by striking ``the Federal 
                                Energy Administration,'';
                                    (II) by striking ``the Federal 
                                Power Commission,'' and inserting ``the 
                                Federal Energy Regulatory Commission''; 
                                and
                                    (III) by striking ``General 
                                Accounting Office'' and inserting 
                                ``Government Accountability Office''; 
                                and
                    (E) in the last sentence, by inserting ``or ranking 
                minority member'' after ``chairman''.
            (12) Energy information, loan guarantees, and financial 
        support.--Sections 18 through 20 of the Federal Nonnuclear 
        Energy Research and Development Act of 1974 (42 U.S.C. 5917 
        through 5920) are repealed.
    (c) Stevenson-Wydler Technology Innovation Act of 1980.--Section 20 
of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3712) is amended by striking ``and the National Science Foundation'' 
and inserting ``, the Secretary of Energy, and the Director of the 
National Science Foundation''.

                    TITLE XI--PERSONNEL AND TRAINING

SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Definitions.--In this section:
            (1) Energy technology industry.--The term ``energy 
        technology industry'' includes--
                    (A) a renewable energy industry;
                    (B) a company that develops or commercializes a 
                device to increase energy efficiency;
                    (C) the oil and gas industry;
                    (D) the nuclear power industry;
                    (E) the coal industry;
                    (F) the electric utility industry; and
                    (G) any other industrial sector, as the Secretary 
                determines to be appropriate.
            (2) Skilled technical personnel.--The term ``skilled 
        technical personnel'' means--
                    (A) journey- and apprentice-level workers who are 
                enrolled in, or have completed, a federally-recognized 
                or State-recognized apprenticeship program; and
                    (B) other skilled workers in energy technology 
                industries, as determined by the Secretary.
    (b) Workforce Trends.--
            (1) Monitoring.--The Secretary, in consultation with, and 
        using data collected by, the Secretary of Labor, shall monitor 
        trends in the workforce of--
                    (A) skilled technical personnel that support energy 
                technology industries; and
                    (B) electric power and transmission engineers.
            (2) Report on trends.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit to 
        Congress a report on current trends under paragraph (1), with 
        recommendations (as appropriate) to meet the future labor 
        requirements for the energy technology industries.
            (3) Report on shortage.--As soon as practicable after the 
        date on which the Secretary identifies or predicts a 
        significant national shortage of skilled technical personnel in 
        1 or more energy technology industries, the Secretary shall 
        submit to Congress a report describing the shortage.
    (c) Traineeship Grants for Skilled Technical Personnel.--The 
Secretary, in consultation with the Secretary of Labor, may establish 
programs in the appropriate offices of the Department under which the 
Secretary provides grants to enhance training (including distance 
learning) for any workforce category for which a shortage is identified 
or predicted under subsection (b)(2).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2006 through 2008.

SEC. 1102. ENERGY RESEARCH FELLOWSHIPS.

    (a) Postdoctoral Fellowship Program.--The Secretary shall establish 
a program under which the Secretary provides fellowships to encourage 
outstanding young scientists and engineers to pursue postdoctoral 
research appointments in energy research and development at 
institutions of higher education of their choice.
    (b) Senior Research Fellowships.--
            (1) In general.--The Secretary shall establish a program 
        under which the Secretary provides fellowships to allow 
        outstanding senior researchers and their research groups in 
        energy research and development to explore research and 
        development topics of their choosing for a period of not less 
        than 3 years to be determined by the Secretary.
            (2) Consideration.--In providing a fellowship under the 
        program described in paragraph (1), the Secretary shall 
        consider--
                    (A) the past scientific or technical accomplishment 
                of a senior researcher; and
                    (B) the potential for continued accomplishment by 
                the researcher during the period of the fellowship.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $40,000,000 for each of fiscal 
years 2006 through 2008.

SEC. 1103. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

    (a) Science Education Enhancement Fund.--Section 3164 of the 
Department of Energy Science Education Enhancement Act (42 U.S.C. 
7381a) is amended by adding at the end:
    ``(c) Science Education Enhancement Fund.--The Secretary shall use 
not less than 0.2 percent of the amount made available to the 
Department for fiscal year 2006 and each fiscal year thereafter to 
carry out activities authorized by this part.''.
    (b) Authorized Education Activities.--Section 3165 of the 
Department of Energy Science Education Enhancement Act (42 U.S.C. 
7381b) is amended by adding at the end the following:
            ``(14) Support competitive events for students under the 
        supervision of teachers, designed to encourage student interest 
        and knowledge in science and mathematics.
            ``(15) Support competitively-awarded, peer-reviewed 
        programs to promote professional development for mathematics 
        teachers and science teachers who teach in grades from 
        kindergarten through grade 12 at Department research and 
        development facilities.
            ``(16) Support summer internships at Department research 
        and development facilities, for mathematics teachers and 
        science teachers who teach in grades from kindergarten through 
        grade 12.
            ``(17) Sponsor and assist in educational and training 
        activities identified as critical skills needs for future 
        workforce development at Department research and development 
        facilities.''.
    (c) Educational Partnerships.--Section 3166(b) of the Department of 
Energy Science Education Enhancement Act (42 U.S.C. 7381c(b)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) loaning or transferring equipment to the 
        institution;'';
            (2) in paragraph (5), by striking ``and'' at the end;
            (3) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(7) providing funds to educational institutions to hire 
        personnel to facilitate interactions between local school 
        systems, Department research and development facilities, and 
        corporate and governmental entities.''.
    (d) Definition of Department Research and Development Facilities.--
Section 3167(3) of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381d(3)) is amended by striking ``from the 
Office of Science of the Department of Energy'' and inserting ``by the 
Department of Energy''.
    (e) Study.--
            (1) In general.--The Secretary shall enter into an 
        arrangement with the National Academy of Public Administration 
        to conduct a study of the priorities, quality, local and 
        regional flexibility, and plans for educational programs at 
        Department research and development facilities.
            (2) Inclusion.--The study shall recommend measures that the 
        Secretary may take to improve Department-wide coordination of 
        educational, workforce development, and critical skills 
        development activities.
            (3) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the results of the study conducted under this 
        subsection.

SEC. 1104. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.

    (a) In General.--The Secretary of Labor, in consultation with the 
Secretary and in conjunction with the electric industry and recognized 
employee representatives, shall develop model personnel training 
guidelines to support the reliability and safety of the electric 
system.
    (b) Requirements.--The training guidelines under subsection (a) 
shall, at a minimum--
            (1) include training requirements for workers engaged in 
        the construction, operation, inspection, or maintenance of 
        electric generation, transmission, or distribution systems, 
        including requirements relating to--
                    (A) competency;
                    (B) certification; and
                    (C) assessment, including--
                            (i) initial and continuous evaluation of 
                        workers;
                            (ii) recertification procedures; and
                            (iii) methods for examining or testing the 
                        qualification of an individual who performs a 
                        covered task; and
            (2) consolidate training guidelines in existence on the 
        date on which the guidelines under subsection (a) are developed 
        relating to the construction, operation, maintenance, and 
        inspection of electric generation, transmission, and 
        distribution facilities, such as guidelines established by the 
        National Electric Safety Code and other industry consensus 
        standards.

SEC. 1105. NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING 
              TECHNOLOGIES.

    The Secretary shall support the ongoing activities of the National 
Center for Energy Management and Building Technologies to carry out 
research, education, and training activities to facilitate the 
improvement of energy efficiency, indoor environmental quality, and 
security of industrial, commercial, residential, and public buildings.

SEC. 1106. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
              CAREERS.

    (a) Science Education Programs.--Section 3164 of the Department of 
Energy Science Education Enhancement Act (42 U.S.C. 7381a) (as amended 
by section 1103(a)) is amended by adding at the end the following:
    ``(d) Programs for Students from Under-Represented Groups.--In 
carrying out a program under subsection (a), the Secretary shall give 
priority to activities that are designed to encourage students from 
under-represented groups to pursue scientific and technical careers.''.
    (b) Partnerships With Historically Black Colleges and Universities, 
Hispanic-Servicing Institutions, and Tribal Colleges.--The Department 
of Energy Science Education Enhancement Act (42 U.S.C. 7381 et seq.) is 
amended--
            (1) by redesignating sections 3167 and 3168 as sections 
        3168 and 3169, respectively; and
            (2) by inserting after section 3166 the following:

``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND 
              UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND TRIBAL 
              COLLEGES.

    ``(a) Definitions.--In this section:
            ``(1) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given the term in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).
            ``(2) Historically black college or university.--The term 
        `historically Black college or university' has the meaning 
        given the term `part B institution' in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061).
            ``(3) National laboratory.--The term `National Laboratory' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005.
            ``(4) Science facility.--The term `science facility' has 
        the meaning given the term `single-purpose research facility' 
        in section 903 of the Energy Policy Act of 2005.
            ``(5) Tribal college.--The term `tribal college' has the 
        meaning given the term `tribally controlled college or 
        university' in section 2(a) of the Tribally Controlled College 
        Assistance Act of 1978 (25 U.S.C. 1801(a)).
    ``(b) Education Partnership.--The Secretary shall require the 
director of each National Laboratory, and may require the head of any 
science facility, to increase the participation of historically Black 
colleges or universities, Hispanic-serving institutions, or tribal 
colleges in any activity that increases the capacity of the 
historically Black colleges or universities, Hispanic-serving 
institutions, or tribal colleges to train personnel in science or 
engineering.
    ``(c) Activities.--An activity described in subsection (b) 
includes--
            ``(1) collaborative research;
            ``(2) equipment transfer;
            ``(3) training activities carried out at a National 
        Laboratory or science facility; and
            ``(4) mentoring activities carried out at a National 
        Laboratory or science facility.
    ``(d) Report.--Not later than 2 years after the date of enactment 
of this subsection, the Secretary shall submit to Congress a report 
describing the activities carried out under this section.''.

SEC. 1107. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATIONAL 
              CENTER.

    (a) Establishment.--The Secretary shall support the establishment 
of a National Power Plant Operations Technology and Education Center 
(referred to in this section as the ``Center''), to address the need 
for training and educating certified operators and technicians for the 
electric power industry.
    (b) Location of Center.--The Secretary shall support the 
establishment of the Center at an institution of higher education that 
has--
            (1) expertise in providing degree programs in electric 
        power generation, transmission, and distribution technologies;
            (2) expertise in providing onsite and Internet-based 
        training; and
            (3) demonstrated responsiveness to workforce and training 
        requirements in the electric power industry.
    (c) Training and Continuing Education.--
            (1) In general.--The Center shall provide training and 
        continuing education in electric power generation, 
        transmission, and distribution technologies and operations.
            (2) Location.--The Center shall carry out training and 
        education activities under paragraph (1)--
                    (A) at the Center; and
                    (B) through Internet-based information technologies 
                that allow for learning at remote sites.

                         TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Electricity Modernization Act of 
2005''.

                   Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

    (a) In General.--Part II of the Federal Power Act (16 U.S.C 824 et 
seq.) is amended by adding at the end the following:

``SEC. 215. ELECTRIC RELIABILITY.

    ``(a) Definitions.--In this section:
            ``(1)(A) The term `bulk-power system' means--
                    ``(i) facilities and control systems necessary for 
                operating an interconnected electric energy 
                transmission network (or any portion of such a 
                network); and
                    ``(ii) electric energy from generation facilities 
                needed to maintain transmission system reliability.
            ``(B) The term `bulk-power system' does not include 
        facilities used in the local distribution of electric energy.
            ``(2) The terms `Electric Reliability Organization' and 
        `ERO' mean the organization certified by the Commission under 
        subsection (c) the purpose of which is to establish and enforce 
        reliability standards for the bulk-power system, subject to 
        review by the Commission.
            ``(3)(A) The term `reliability standard' means a 
        requirement, approved by the Commission under this section, to 
        provide for reliable operation of the bulk-power system.
            ``(B) The term `reliability standard' includes requirements 
        for the operation of existing bulk-power system components and 
        the design of planned additions or modifications to those 
        components to the extent necessary to provide for reliable 
        operation of the bulk-power system, except that the term does 
        not include any requirement to enlarge those components or to 
        construct new transmission capacity or generation capacity.
            ``(4) The term `reliable operation' means operating the 
        components of the bulk-power system within equipment and 
        electric system thermal, voltage, and stability limits so that 
        instability, uncontrolled separation, or cascading failures of 
        the system will not occur as a result of a sudden disturbance 
        or unanticipated failure of system components.
            ``(5) The term `interconnection' means a geographic area in 
        which the operation of bulk-power system components is 
        synchronized such that the failure of 1 or more of the 
        components may adversely affect the ability of the operators of 
        other components within the system to maintain reliable 
        operation of the portion of the system within their control.
            ``(6) The term `regional entity' means an entity having 
        enforcement authority pursuant to subsection (e)(4).
    ``(b) Jurisdiction and Applicability.--(1) The Commission shall 
have jurisdiction, within the United States, over the ERO certified by 
the Commission under subsection (c), any regional entities, and all 
users, owners and operators of the bulk-power system (including the 
entities described in section 201(f)), for purposes of approving 
reliability standards established under this section and enforcing 
compliance with this section.
    ``(2) All users, owners, and operators of the bulk-power system 
shall comply with reliability standards that take effect under this 
section.
    ``(3) The Commission shall issue a final rule to implement the 
requirements of this section not later than 180 days after the date of 
enactment of this section.
    ``(c) Certification.--(1) Following the issuance of a Commission 
rule under subsection (b)(3), any person may submit an application to 
the Commission for certification as the Electric Reliability 
Organization.
    ``(2) The Commission may certify 1 such ERO if the Commission 
determines that the ERO--
            ``(A) has the ability to develop and enforce, subject to 
        subsection (e)(2), reliability standards that provide for an 
        adequate level of reliability of the bulk-power system; and
            ``(B) has established rules that--
                    ``(i) ensure the independence of the ERO from the 
                users and owners and operators of the bulk-power 
                system, while ensuring fair stakeholder representation 
                in the selection of the directors of the ERO and 
                balanced decisionmaking in any ERO committee or 
                subordinate organizational structure;
                    ``(ii) allocate equitably reasonable dues, fees, 
                and other charges among end users for all activities 
                under this section;
                    ``(iii) provide fair and impartial procedures for 
                enforcement of reliability standards through the 
                imposition of penalties in accordance with subsection 
                (e) (including limitations on activities, functions, or 
                operations, or other appropriate sanctions);
                    ``(iv) provide for reasonable notice and 
                opportunity for public comment, due process, openness, 
                and balance of interests in developing reliability 
                standards and otherwise exercising the duties of the 
                ERO; and
                    ``(v) provide for taking, after certification, 
                appropriate steps to gain recognition in Canada and 
                Mexico.
    ``(d) Reliability Standards.--(1) The ERO shall file each 
reliability standard or modification to a reliability standard that the 
ERO proposes to be made effective under this section with the 
Commission.
    ``(2)(A) The Commission may approve, by rule or order, a proposed 
reliability standard or modification to a reliability standard if the 
Commission determines that the standard is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest.
    ``(B) The Commission--
            ``(i) shall give due weight to the technical expertise of 
        the ERO with respect to the content of a proposed standard or 
        modification to a reliability standard and to the technical 
        expertise of a regional entity organized on an interconnection-
        wide basis with respect to a reliability standard to be 
        applicable within that interconnection; but
            ``(ii) shall not defer with respect to the effect of a 
        standard on competition.
    ``(C) A proposed standard or modification shall take effect on 
approval by the Commission.
    ``(3) The ERO shall rebuttably presume that a proposal from a 
regional entity organized on an interconnection-wide basis for a 
reliability standard or modification to a reliability standard to be 
applicable on an interconnection-wide basis is just, reasonable, not 
unduly discriminatory or preferential, and in the public interest.
    ``(4) The Commission shall remand to the ERO for further 
consideration a proposed reliability standard or a modification to a 
reliability standard that the Commission disapproves in whole or in 
part.
    ``(5) The Commission, on a motion of the Commission or on 
complaint, may order the ERO to submit to the Commission a proposed 
reliability standard or a modification to a reliability standard that 
addresses a specific matter if the Commission considers such a new or 
modified reliability standard appropriate to carry out this section.
    ``(6)(A) The final rule adopted under subsection (b)(2) shall 
include fair processes for the identification and timely resolution of 
any conflict between a reliability standard and any function, rule, 
order, tariff, rate schedule, or agreement accepted, approved, or 
ordered by the Commission applicable to a transmission organization.
    ``(B) The transmission organization shall continue to comply with 
such function, rule, order, tariff, rate schedule or agreement accepted 
approved, or ordered by the Commission until--
            ``(i) the Commission finds a conflict exists between a 
        reliability standard and any such provision;
            ``(ii) the Commission orders a change to the provision 
        pursuant to section 206; and
            ``(iii) the ordered change becomes effective under this 
        part.
    ``(C) If the Commission determines that a reliability standard 
needs to be changed as a result of such a conflict, the Commission 
shall order the ERO to develop and file with the Commission a modified 
reliability standard under paragraph (4) or (5).
    ``(e) Enforcement.--(1) Subject to paragraph (2), the ERO may 
impose a penalty on a user or owner or operator of the bulk-power 
system for a violation of a reliability standard approved by the 
Commission under subsection (d) if the ERO, after notice and an 
opportunity for a hearing--
            ``(A) finds that the user or owner or operator has violated 
        a reliability standard approved by the Commission under 
        subsection (d); and
            ``(B) files notice and the record of the proceeding with 
        the Commission.
    ``(2)(A) A penalty imposed under paragraph (1) may take effect not 
earlier than the day that is 31 days after the date on which the ERO 
files with the Commission notice of the penalty and the record of 
proceedings.
    ``(B) The penalty shall be subject to review by the Commission on--
            ``(i) a motion by the Commission; or
            ``(ii) application by the user, owner or operator that is 
        the subject of the penalty filed not later than 30 days after 
        the date on which the notice is filed with the Commission.
    ``(C) Application to the Commission for review, or the initiation 
of review by the Commission on a motion of the Commission, shall not 
operate as a stay of the penalty unless the Commission orders otherwise 
on a motion of the Commission or on application by the user, owner or 
operator that is the subject of the penalty.
    ``(D) In any proceeding to review a penalty imposed under paragraph 
(1), the Commission, after notice and opportunity for hearing (which 
hearing may consist solely of the record before the ERO and opportunity 
for the presentation of supporting reasons to affirm, modify, or set 
aside the penalty), shall by order--
            ``(i) affirm, set aside, reinstate, or modify the penalty; 
        and
            ``(ii) if appropriate, remand to the ERO for further 
        proceedings.
    ``(E) The Commission shall implement expedited procedures for the 
hearings described in subparagraph (D).
    ``(3) On a motion of the Commission or on complaint, the Commission 
may order compliance with a reliability standard and may impose a 
penalty against a user or owner or operator of the bulk-power system if 
the Commission finds, after notice and opportunity for a hearing, that 
the user or owner or operator of the bulk-power system has engaged or 
is about to engage in any act or practice that constitutes or will 
constitute a violation of a reliability standard.
    ``(4)(A) The Commission shall issue regulations authorizing the ERO 
to enter into an agreement to delegate authority to a regional entity 
for the purpose of proposing reliability standards to the ERO and 
enforcing reliability standards under paragraph (1) if--
            ``(i) the regional entity is governed by--
                    ``(I) an independent board;
                    ``(II) a balanced stakeholder board; or
                    ``(III) a combination independent and balanced 
                stakeholder board;
            ``(ii) the regional entity otherwise meets the requirements 
        of paragraphs (1) and (2) of subsection (c); and
            ``(iii) the agreement promotes effective and efficient 
        administration of bulk-power system reliability.
    ``(B) The Commission may modify a delegation under this paragraph.
    ``(C) The ERO and the Commission shall rebuttably presume that a 
proposal for delegation to a regional entity organized on an 
interconnection-wide basis promotes effective and efficient 
administration of bulk-power system reliability and should be approved.
    ``(D) The regulation issued under this paragraph may provide that 
the Commission may assign the authority of the ERO to enforce 
reliability standards under paragraph (1) directly to a regional entity 
in accordance with this paragraph.
    ``(5) The Commission may take such action as is necessary or 
appropriate against the ERO or a regional entity to ensure compliance 
with a reliability standard or any Commission order affecting the ERO 
or a regional entity.
    ``(6) Any penalty imposed under this section shall--
            ``(A) bear a reasonable relation to the seriousness of the 
        violation; and
            ``(B) take into consideration the efforts of the user, 
        owner, or operator to remedy the violation in a timely manner.
    ``(f) Changes in Electric Reliability Organization Rules.--(1) The 
Electric Reliability Organization shall file with the Commission for 
approval any proposed rule or proposed rule change, accompanied by an 
explanation of the basis and purpose of the rule and proposed rule 
change.
    ``(2) The Commission, upon a motion of the Commission or upon 
complaint, may propose a change to the rules of the ERO.
    ``(3) A proposed rule or proposed rule change shall take effect 
upon a finding by the Commission, after notice and opportunity for 
comment, that the change is just, reasonable, and not unduly 
discriminatory or preferential, is in the public interest, and meets 
the requirements of subsection (c).
    ``(g) Reliability Reports.--The ERO shall conduct periodic 
assessments of the reliability and adequacy of the bulk-power system in 
North America.
    ``(h) Coordination With Canada and Mexico.--The President is urged 
to negotiate international agreements with the governments of Canada 
and Mexico to provide for effective compliance with reliability 
standards and the effectiveness of the ERO in the United States and 
Canada or Mexico.
    ``(i) Savings Provisions.--(1) The ERO may develop and enforce 
compliance with reliability standards for only the bulk-power system.
    ``(2) Nothing in this section authorizes the ERO or the Commission 
to order the construction of additional generation or transmission 
capacity or to set and enforce compliance with standards for adequacy 
or safety of electric facilities or services.
    ``(3) Nothing in this section preempts any authority of any State 
to take action to ensure the safety, adequacy, and reliability of 
electric service within that State, as long as the action is not 
inconsistent with any reliability standard.
    ``(4) Not later than 90 days after the date of application of the 
Electric Reliability Organization or other affected party, and after 
notice and opportunity for comment, the Commission shall issue a final 
order determining whether a State action is inconsistent with a 
reliability standard, taking into consideration any recommendation of 
the ERO.
    ``(5) The Commission, after consultation with the ERO and the State 
taking action, may stay the effectiveness of any State action, pending 
the issuance by the Commission of a final order.
    ``(j) Regional Advisory Bodies.--(1) The Commission shall establish 
a regional advisory body on the petition of at least \2/3\ of the 
States within a region that have more than \1/2\ of the electric load 
of the States served within the region.
    ``(2) A regional advisory body--
            ``(A) shall be composed of 1 member from each participating 
        State in the region, appointed by the Governor of the State; 
        and
            ``(B) may include representatives of agencies, States, and 
        provinces outside the United States.
    ``(3) A regional advisory body may provide advice to the Electric 
Reliability Organization, a regional entity, or the Commission 
regarding--
            ``(A) the governance of an existing or proposed regional 
        entity within the same region;
            ``(B) whether a standard proposed to apply within the 
        region is just, reasonable, not unduly discriminatory or 
        preferential, and in the public interest;
            ``(C) whether fees proposed to be assessed within the 
        region are just, reasonable, not unduly discriminatory or 
        preferential, and in the public interest; and
            ``(D) any other responsibilities requested by the