H. Rept. 108-375 - 108th Congress (2003-2004)
November 18, 2003

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House Report 108-375 - ENERGY POLICY ACT OF 2003




[House Report 108-375]
[From the U.S. Government Printing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-375

======================================================================



 
                       ENERGY POLICY ACT OF 2003

                                _______
                                

   November 18 (legislative day, November 17), 2003.--Ordered to be 
                                printed

                                _______
                                

 Mr. Tauzin, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany H.R. 6]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
6), to enhance energy conservation and research and 
development, to provide for security and diversity in the 
energy supply for the American people, and for other purposes, 
having met, after full and free conference, have agreed to 
recommend and do recommend to their respective Houses as 
follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy 
Policy Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Energy savings performance contracts pilot program for 
          nonbuilding applications.
Sec. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 110. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.

            Subtitle B--Energy Assistance and State Programs

Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.

                  Subtitle C--Energy Efficient Products

Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Energy conservation standards for additional products.
Sec. 134. Energy labeling.

                       Subtitle D--Public Housing

Sec. 141. Capacity building for energy-efficient, affordable housing.
Sec. 142. Increase of CDBG public services cap for energy conservation 
          and efficiency activities.
Sec. 143. FHA mortgage insurance incentives for energy efficient 
          housing.
Sec. 144. Public Housing Capital Fund.
Sec. 145. Grants for energy-conserving improvements for assisted 
          housing.
Sec. 146. North American Development Bank.
Sec. 147. Energy-efficient appliances.
Sec. 148. Energy efficiency standards.
Sec. 149. Energy strategy for HUD.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Insular areas energy security.
Sec. 205. Use of photovoltaic energy in public buildings.
Sec. 206. Grants to improve the commercial value of forest biomass for 
          electric energy, useful heat, transportation fuels, petroleum-
          based product substitutes, and other commercial purposes.
Sec. 207. Biobased products.

                      Subtitle B--Geothermal Energy

Sec. 211. Short title.
Sec. 212. Competitive lease sale requirements.
Sec. 213. Direct use.
Sec. 214. Royalties and near-term production incentives.
Sec. 215. Geothermal leasing and permitting on Federal lands.
Sec. 216. Review and report to Congress.
Sec. 217. Reimbursement for costs of NEPA analyses, documentation, and 
          studies.
Sec. 218. Assessment of geothermal energy potential.
Sec. 219. Cooperative or unit plans.
Sec. 220. Royalty on byproducts.
Sec. 221. Repeal of authorities of Secretary to readjust terms, 
          conditions, rentals, and royalties.
Sec. 222. Crediting of rental toward royalty.
Sec. 223. Lease duration and work commitment requirements.
Sec. 224. Advanced royalties required for suspension of production.
Sec. 225. Annual rental.
Sec. 226. Leasing and permitting on Federal lands withdrawn for military 
          purposes.
Sec. 227. Technical amendments.

                        Subtitle C--Hydroelectric

                     Part I--Alternative Conditions

Sec. 231. Alternative conditions and fishways.

                     Part II--Additional Hydropower

Sec. 241. Hydroelectric production incentives.
Sec. 242. Hydroelectric efficiency improvement.
Sec. 243. Small hydroelectric power projects.
Sec. 244. Increased hydroelectric generation at existing Federal 
          facilities.
Sec. 245. Shift of project loads to off-peak periods.
Sec. 246. Corps of Engineers hydropower operation and maintenance 
          funding.
Sec. 247. Limitation on certain charges assessed to the Flint Creek 
          Project, Montana.
Sec. 248. Reinstatement and transfer.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve 
          and other energy programs.
Sec. 302. National Oilheat Research Alliance.

                    Subtitle B--Production Incentives

Sec. 311. Definition of Secretary.
Sec. 312. Program on oil and gas royalties in-kind.
Sec. 313. Marginal property production incentives.
Sec. 314. Incentives for natural gas production from deep wells in the 
          shallow waters of the Gulf of Mexico.
Sec. 315. Royalty relief for deep water production.
Sec. 316. Alaska offshore royalty suspension.
Sec. 317. Oil and gas leasing in the National Petroleum Reserve in 
          Alaska.
Sec. 318. Orphaned, abandoned, or idled wells on Federal land.
Sec. 319. Combined hydrocarbon leasing.
Sec. 320. Liquified natural gas.
Sec. 321. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 322. Preservation of geological and geophysical data.
Sec. 323. Oil and gas lease acreage limitations.
Sec. 324. Assessment of dependence of State of Hawaii on oil.
Sec. 325. Deadline for decision on appeals of consistency determination 
          under the Coastal Zone Management Act of 1972.
Sec. 326. Reimbursement for costs of NEPA analyses, documentation, and 
          studies.
Sec. 327. Hydraulic fracturing.
Sec. 328. Oil and gas exploration and production defined.
Sec. 329. Outer Continental Shelf provisions.
Sec. 330. Appeals relating to pipeline construction or offshore mineral 
          development projects.
Sec. 331. Bilateral international oil supply agreements.
Sec. 332. Natural gas market reform.
Sec. 333. Natural gas market transparency.

                   Subtitle C--Access to Federal Land

Sec. 341. Office of Federal Energy Project Coordination.
Sec. 342. Federal onshore oil and gas leasing and permitting practices.
Sec. 343. Management of Federal oil and gas leasing programs.
Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 345. Estimates of oil and gas resources underlying onshore Federal 
          land.
Sec. 346. Compliance with Executive Order 13211; actions concerning 
          regulations that significantly affect energy supply, 
          distribution, or use.
Sec. 347. Pilot project to improve Federal permit coordination.
Sec. 348. Deadline for consideration of applications for permits.
Sec. 349. Clarification of fair market rental value determinations for 
          public land and Forest Service rights-of-way.
Sec. 350. Energy facility rights-of-way and corridors on Federal land.
Sec. 351. Consultation regarding energy rights-of-way on public land.
Sec. 352. Renewable energy on Federal land.
Sec. 353. Electricity transmission line right-of-way, Cleveland National 
          Forest and adjacent public land, California.
Sec. 354. Sense of Congress regarding development of minerals under 
          Padre Island National Seashore.
Sec. 355. Encouraging prohibition of off-shore drilling in the Great 
          Lakes.
Sec. 356. Finger Lakes National Forest withdrawal.
Sec. 357. Study on lease exchanges in the Rocky Mountain Front.
Sec. 358. Federal coalbed methane regulation.
Sec. 359. Livingston Parish mineral rights transfer.

                 Subtitle D--Alaska Natural Gas Pipeline

Sec. 371. Short title.
Sec. 372. Definitions.
Sec. 373. Issuance of certificate of public convenience and necessity.
Sec. 374. Environmental reviews.
Sec. 375. Pipeline expansion.
Sec. 376. Federal Coordinator.
Sec. 377. Judicial review.
Sec. 378. State jurisdiction over in-State delivery of natural gas.
Sec. 379. Study of alternative means of construction.
Sec. 380. Clarification of ANGTA status and authorities.
Sec. 381. Sense of Congress concerning use of steel manufactured in 
          North America negotiation of a project labor agreement.
Sec. 382. Sense of Congress and study concerning participation by small 
          business concerns.
Sec. 383. Alaska pipeline construction training program.
Sec. 384. Sense of Congress concerning natural gas demand.
Sec. 385. Sense of Congress concerning Alaskan ownership.
Sec. 386. Loan guarantees.

                             TITLE IV--COAL

                 Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal Centers of Excellence.

                    Subtitle B--Clean Power Projects

Sec. 411. Coal technology loan.
Sec. 412. Coal gasification.
Sec. 413. Integrated gasification combined cycle technology.
Sec. 414. Petroleum coke gasification.
Sec. 415. Integrated coal/renewable energy system.
Sec. 416. Electron scrubbing demonstration.

                     Subtitle C--Federal Coal Leases

Sec. 421. Repeal of the 160-acre limitation for coal leases.
Sec. 422. Mining plans.
Sec. 423. Payment of advance royalties under coal leases.
Sec. 424. Elimination of deadline for submission of coal lease operation 
          and reclamation plan.
Sec. 425. Amendment relating to financial assurances with respect to 
          bonus bids.
Sec. 426. Inventory requirement.
Sec. 427. Application of amendments.

                  Subtitle D--Coal and Related Programs

Sec. 441. Clean air coal program.

                         TITLE V--INDIAN ENERGY

Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Four Corners transmission line project.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.

                        TITLE VI--NUCLEAR MATTERS

                Subtitle A--Price-Anderson Act Amendments

Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Prohibition on assumption by United States Government of 
          liability for certain foreign incidents.
Sec. 611. Civil penalties.

                   Subtitle B--General Nuclear Matters

Sec. 621. Licenses.
Sec. 622. NRC training program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Report on feasibility of developing commercial nuclear energy 
          generation facilities at existing Department of Energy sites.
Sec. 630. Uranium sales.
Sec. 631. Cooperative research and development and special demonstration 
          projects for the uranium mining industry.
Sec. 632. Whistleblower protection.
Sec. 633. Medical isotope production.
Sec. 634. Fernald byproduct material.
Sec. 635. Safe disposal of greater-than-class C radioactive waste.
Sec. 636. Prohibition on nuclear exports to countries that sponsor 
          terrorism.
Sec. 637. Uranium enrichment facilities.
Sec. 638. National uranium stockpile.

       Subtitle C--Advanced Reactor Hydrogen Cogeneration Project

Sec. 651. Project establishment.
Sec. 652. Project definition.
Sec. 653. Project management.
Sec. 654. Project requirements.
Sec. 655. Authorization of appropriations.

                      Subtitle D--Nuclear Security

Sec. 661. Nuclear facility threats.
Sec. 662. Fingerprinting for criminal history record checks.
Sec. 663. Use of firearms by security personnel of licensees and 
          certificate holders of the Commission.
Sec. 664. Unauthorized introduction of dangerous weapons.
Sec. 665. Sabotage of nuclear facilities or fuel.
Sec. 666. Secure transfer of nuclear materials.
Sec. 667. Department of Homeland Security consultation.
Sec. 668. Authorization of appropriations.

                      TITLE VII--VEHICLES AND FUELS

                      Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Neighborhood electric vehicles.
Sec. 703. Credits for medium and heavy duty dedicated vehicles.
Sec. 704. Incremental cost allocation.
Sec. 705. Alternative compliance and flexibility.
Sec. 706. Review of Energy Policy Act of 1992 programs.
Sec. 707. Report concerning compliance with alternative fueled vehicle 
          purchasing requirements.

   Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                         Part 1--Hybrid Vehicles

Sec. 711. Hybrid vehicles.

                        Part 2--Advanced Vehicles

Sec. 721. Definitions.
Sec. 722. Pilot program.
Sec. 723. Reports to Congress.
Sec. 724. Authorization of appropriations.

                         Part 3--Fuel Cell Buses

Sec. 731. Fuel cell transit bus demonstration.

                     Subtitle C--Clean School Buses

Sec. 741. Definitions.
Sec. 742. Program for replacement of certain school buses with clean 
          school buses.
Sec. 743. Diesel retrofit program.
Sec. 744. Fuel cell school buses.

                        Subtitle D--Miscellaneous

Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by bicycling program.
Sec. 756. Reduction of engine idling of heavy-duty vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 758. High occupancy vehicle exception.

                    Subtitle E--Automobile Efficiency

Sec. 771. Authorization of appropriations for implementation and 
          enforcement of fuel economy standards.
Sec. 772. Revised considerations for decisions on maximum feasible 
          average fuel economy.
Sec. 773. Extension of maximum fuel economy increase for alternative 
          fueled vehicles.
Sec. 774. Study of feasibility and effects of reducing use of fuel for 
          automobiles.

                          TITLE VIII--HYDROGEN

Sec. 801. Definitions.
Sec. 802. Plan.
Sec. 803. Programs.
Sec. 804. Interagency task force.
Sec. 805. Advisory Committee.
Sec. 806. External review.
Sec. 807. Miscellaneous provisions.
Sec. 808. Savings clause.
Sec. 809. Authorization of appropriations.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 901. Goals.
Sec. 902. Definitions.

                      Subtitle A--Energy Efficiency

Sec. 904. Energy efficiency.
Sec. 905. Next Generation Lighting Initiative.
Sec. 906. National Building Performance Initiative.
Sec. 907. Secondary electric vehicle battery use program.
Sec. 908. Energy Efficiency Science Initiative.
Sec. 909. Electric motor control technology.
Sec. 910. Advanced Energy Technology Transfer Centers.

       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 911. Distributed energy and electric energy systems.
Sec. 912. Hybrid distributed power systems.
Sec. 913. High power density industry program.
Sec. 914. Micro-cogeneration energy technology.
Sec. 915. Distributed energy technology demonstration program.
Sec. 916. Reciprocating power.

                      Subtitle C--Renewable Energy

Sec. 918. Renewable energy.
Sec. 919. Bioenergy programs.
Sec. 920. Concentrating solar power research and development program.
Sec. 921. Miscellaneous projects.
Sec. 922. Renewable energy in public buildings.
Sec. 923. Study of marine renewable energy options.

                       Subtitle D--Nuclear Energy

Sec. 924. Nuclear energy.
Sec. 925. Nuclear energy research and development programs.
Sec. 926. Advanced fuel cycle initiative.
Sec. 927. University nuclear science and engineering support.
Sec. 928. Security of reactor designs.
Sec. 929. Alternatives to industrial radioactive sources.
Sec. 930. Geological isolation of spent fuel.

                        Subtitle E--Fossil Energy

                        Part I--Research Programs

Sec. 931. Fossil energy.
Sec. 932. Oil and gas research programs.
Sec. 933. Technology transfer.
Sec. 934. Research and development for coal mining technologies.
Sec. 935. Coal and related technologies program.
Sec. 936. Complex well technology testing facility.
Sec. 937. Fischer-Tropsch diesel fuel loan guarantee program.

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

Sec. 941. Program authority.
Sec. 942. Ultra-deepwater program.
Sec. 943. Unconventional natural gas and other petroleum resources 
          program.
Sec. 944. Additional requirements for awards.
Sec. 945. Advisory Committees.
Sec. 946. Limits on participation.
Sec. 947. Sunset.
Sec. 948. Definitions.
Sec. 949. Funding.

                           Subtitle F--Science

Sec. 951. Science.
Sec. 952. United States participation in ITER.
Sec. 953. Plan for fusion energy sciences program.
Sec. 954. Spallation Neutron Source.
Sec. 955. Support for science and energy facilities and infrastructure.
Sec. 956. Catalysis research and development program.
Sec. 957. Nanoscale science and engineering research, development, 
          demonstration, and commercial application.
Sec. 958. Advanced scientific computing for energy missions.
Sec. 959. Genomes to Life program.
Sec. 960. Fission and fusion energy materials research program.
Sec. 961. Energy-Water Supply Program.
Sec. 962. Nitrogen fixation.

                   Subtitle G--Energy and Environment

Sec. 964. United States-Mexico energy technology cooperation.
Sec. 965. Western Hemisphere energy cooperation.
Sec. 966. Waste reduction and use of alternatives.
Sec. 967. Report on fuel cell test center.
Sec. 968. Arctic Engineering Research Center.
Sec. 969. Barrow Geophysical Research Facility.
Sec. 970. Western Michigan demonstration project.

                         Subtitle H--Management

Sec. 971. Availability of funds.
Sec. 972. Cost sharing.
Sec. 973. Merit review of proposals.
Sec. 974. External technical review of departmental programs.
Sec. 975. Improved coordination of technology transfer activities.
Sec. 976. Federal laboratory educational partners.
Sec. 977. Interagency cooperation.
Sec. 978. Technology infrastructure program.
Sec. 979. Reprogramming.
Sec. 980. Construction with other laws.
Sec. 981. Report on research and development program evaluation 
          methodologies.
Sec. 982. Department of Energy Science and Technology Scholarship 
          Program.
Sec. 983. Report on equal employment opportunity practices.
Sec. 984. Small business advocacy and assistance.
Sec. 985. Report on mobility of scientific and technical personnel.
Sec. 986. National Academy of Sciences report.
Sec. 987. Outreach.
Sec. 988. Competitive award of management contracts.
Sec. 989. Educational programs in science and mathematics.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Additional Assistant Secretary position.
Sec. 1002. Other transactions authority.

                    TITLE XI--PERSONNEL AND TRAINING

Sec. 1101. Training guidelines for electric energy industry personnel.
Sec. 1102. Improved access to energy-related scientific and technical 
          careers.
Sec. 1103. National Power Plant Operations Technology and Education 
          Center.
Sec. 1104. International energy training.

                         TITLE XII--ELECTRICITY

Sec. 1201. Short title.

                    Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.

          Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Transmission system monitoring.
Sec. 1224. Advanced transmission technologies.
Sec. 1225. Electric transmission and distribution programs.
Sec. 1226. Advanced Power System Technology Incentive Program.
Sec. 1227. Office of Electric Transmission and Distribution.

             Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Sense of the Congress on Regional Transmission Organizations.
Sec. 1233. Regional Transmission Organization applications progress 
          report.
Sec. 1234. Federal utility participation in Regional Transmission 
          Organizations.
Sec. 1235. Standard market design.
Sec. 1236. Native load service obligation.
Sec. 1237. Study on the benefits of economic dispatch.

                  Subtitle D--Transmission Rate Reform

Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Voluntary transmission pricing plans.

                     Subtitle E--Amendments to PURPA

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

                       Subtitle F--Repeal of PUHCA

Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.

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

Sec. 1281. Market transparency rules.
Sec. 1282. Market manipulation.
Sec. 1283. Enforcement.
Sec. 1284. Refund effective date.
Sec. 1285. Refund authority.
Sec. 1286. Sanctity of contract.
Sec. 1287. Consumer privacy and unfair trade practices.

                        Subtitle H--Merger Reform

Sec. 1291. Merger review reform and accountability.
Sec. 1292. Electric utility mergers.

                         Subtitle I--Definitions

Sec. 1295. Definitions.

             Subtitle J--Technical and Conforming Amendments

Sec. 1297. Conforming amendments.

                    TITLE XIII--ENERGY TAX INCENTIVES

Sec. 1300. Short title; amendment of 1986 code.

                        Subtitle A--Conservation

                Part I--Residential and Business Property

Sec. 1301. Credit for residential energy efficient property.
Sec. 1302. Extension and expansion of credit for electricity produced 
          from certain renewable resources.
Sec. 1303. Credit for business installation of qualified fuel cells.
Sec. 1304. Credit for energy efficiency improvements to existing homes.
Sec. 1305. Credit for construction of new energy efficient homes.
Sec. 1306. Energy credit for combined heat and power system property.
Sec. 1307. Credit for energy efficient appliances.
Sec. 1308. Energy efficient commercial buildings deduction.
Sec. 1309. Three-year applicable recovery period for depreciation of 
          qualified energy management devices.
Sec. 1310. Credit for production from advanced nuclear power facilities.

              Part II--Fuels and Alternative Motor Vehicles

Sec. 1311. Repeal of 4.3-cent motor fuel excise taxes on railroads and 
          inland waterway transportation which remain in general fund.
Sec. 1312. Reduced motor fuel excise tax on certain mixtures of diesel 
          fuel.
Sec. 1313. Small ethanol producer credit.
Sec. 1314. Incentives for biodiesel.
Sec. 1315. Alcohol fuel and biodiesel mixtures excise tax credit.
Sec. 1316. Nonapplication of export exemption to delivery of fuel to 
          motor vehicles removed from United States.
Sec. 1317. Repeal of phaseouts for qualified electric vehicle credit and 
          deduction for clean fuel-vehicles.
Sec. 1318. Alternative motor vehicle credit.
Sec. 1319. Modifications of deduction for certain refueling property.

                         Subtitle B--Reliability

Sec. 1321. Natural gas gathering lines treated as 7-year property.
Sec. 1322. Natural gas distribution lines treated as 15-year property.
Sec. 1323. Electric transmission property treated as 15-year property.
Sec. 1324. Expensing of capital costs incurred in complying with 
          Environmental Protection Agency sulfur regulations.
Sec. 1325. Credit for production of low sulfur diesel fuel.
Sec. 1326. Determination of small refiner exception to oil depletion 
          deduction.
Sec. 1327. Sales or dispositions to implement Federal Energy Regulatory 
          Commission or State electric restructuring policy.
Sec. 1328. Modifications to special rules for nuclear decommissioning 
          costs.
Sec. 1329. Treatment of certain income of cooperatives.
Sec. 1330. Arbitrage rules not to apply to prepayments for natural gas.

                         Subtitle C--Production

                     Part I--Oil and Gas Provisions

Sec. 1341. Oil and gas from marginal wells.
Sec. 1342. Temporary suspension of limitation based on 65 percent of 
          taxable income and extension of suspension of taxable income 
          limit with respect to marginal production.
Sec. 1343. Amortization of delay rental payments.
Sec. 1344. Amortization of geological and geophysical expenditures.
Sec. 1345. Extension and modification of credit for producing fuel from 
          a nonconventional source.

               Part II--Alternative Minimum Tax Provisions

Sec. 1346. New nonrefundable personal credits allowed against regular 
          and minimum taxes.
Sec. 1347. Business related energy credits allowed against regular and 
          minimum tax.
Sec. 1348. Temporary repeal of alternative minimum tax preference for 
          intangible drilling costs.

                     Part III--Clean Coal Incentives

Sec. 1351. Credit for clean coal technology units.
Sec. 1352. Expansion of amortization for certain pollution control 
          facilities.
Sec. 1353. 5-year recovery period for eligible integrated gasification 
          combined cycle technology unit eligible for credit.

               Part IV--High Volume Natural Gas Provisions

Sec. 1355. High volume natural gas pipe treated as 7-year property.
Sec. 1356. Extension of enhanced oil recovery credit to high volume 
          natural gas facilities.

                    Subtitle D--Additional Provisions

Sec. 1361. Extension of accelerated depreciation benefit for energy-
          related businesses on Indian reservations.
Sec. 1362. Payment of dividends on stock of cooperatives without 
          reducing patronage dividends.
Sec. 1363. Distributions from publicly traded partnerships treated as 
          qualifying income of regulated investment companies.
Sec. 1364. Ceiling fans.
Sec. 1365. Certain steam generators, and certain reactor vessel heads, 
          used in nuclear facilities.
Sec. 1366. Brownfields demonstration program for qualified green 
          building and sustainable design projects.

                        TITLE XIV--MISCELLANEOUS

          Subtitle A--Rural and Remote Electricity Construction

Sec. 1401. Denali Commission programs.
Sec. 1402. Rural and remote community assistance.

                      Subtitle B--Coastal Programs

Sec. 1411. Royalty payments under leases under the Outer Continental 
          Shelf Lands Act.
Sec. 1412. Domestic offshore energy reinvestment.

 Subtitle C--Reforms to the Board of Directors of the Tennessee Valley 
                                Authority

Sec. 1431. Change in composition, operation, and duties of the board of 
          directors of the Tennessee Valley Authority.
Sec. 1432. Change in manner of appointment of staff.
Sec. 1433. Conforming amendments.
Sec. 1434. Appointments; effective date; transition.

                      Subtitle D--Other Provisions

Sec. 1441. Continuation of transmission security order.
Sec. 1442. Review of agency determinations.
Sec. 1443. Attainment dates for downwind ozone nonattainment areas.
Sec. 1444. Energy production incentives.
Sec. 1445. Use of granular mine tailings.

                    TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

Sec. 1501. Renewable content of motor vehicle fuel.
Sec. 1502. Fuels safe harbor.
Sec. 1503. Findings and MTBE transition assistance.
Sec. 1504. Use of MTBE.
Sec. 1505. National Academy of Sciences review and presidential 
          determination.
Sec. 1506. Elimination of oxygen content requirement for reformulated 
          gasoline.
Sec. 1507. Analyses of motor vehicle fuel changes.
Sec. 1508. Data collection.
Sec. 1509. Reducing the proliferation of State fuel controls.
Sec. 1510. Fuel system requirements harmonization study.
Sec. 1511. Commercial byproducts from municipal solid waste and 
          cellulosic biomass loan guarantee program.
Sec. 1512. Resource center.
Sec. 1513. Cellulosic biomass and waste-derived ethanol conversion 
          assistance.
Sec. 1514. Blending of compliant reformulated gasolines.

             Subtitle B--Underground Storage Tank Compliance

Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Future release containment technology.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.

                           TITLE XVI--STUDIES

Sec. 1601. Study on inventory of petroleum and natural gas storage.
Sec. 1602. Natural gas supply shortage report.
Sec. 1603. Split-estate Federal oil and gas leasing and development 
          practices.
Sec. 1604. Resolution of Federal resource development conflicts in the 
          Powder River Basin.
Sec. 1605. Study of energy efficiency standards.
Sec. 1606. Telecommuting study.
Sec. 1607. LIHEAP report.
Sec. 1608. Oil bypass filtration technology.
Sec. 1609. Total integrated thermal systems.
Sec. 1610. University collaboration.
Sec. 1611. Reliability and consumer protection assessment.

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

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

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by 
adding at the end the following:

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

    ``(a) In General.--The Architect of the Capitol--
            ``(1) shall develop, update, and implement a cost-
        effective energy conservation and management plan 
        (referred to in this section as the `plan') for all 
        facilities administered by Congress (referred to in 
        this section as `congressional buildings') to meet the 
        energy performance requirements for Federal buildings 
        established under section 543(a)(1); and
            ``(2) shall submit the plan to Congress, not later 
        than 180 days after the date of enactment of this 
        section.
    ``(b) Plan Requirements.--The plan shall include--
            ``(1) a description of the life cycle cost analysis 
        used to determine the cost-effectiveness of proposed 
        energy efficiency projects;
            ``(2) a schedule of energy surveys to ensure 
        complete surveys of all congressional buildings every 5 
        years to determine the cost and payback period of 
        energy and water conservation measures;
            ``(3) a strategy for installation of life cycle 
        cost-effective energy and water conservation measures;
            ``(4) the results of a study of the costs and 
        benefits of installation of submetering in 
        congressional buildings; and
            ``(5) information packages and `how-to' guides for 
        each Member and employing authority of Congress that 
        detail simple, cost-effective methods to save energy 
        and taxpayer dollars in the workplace.
    ``(c) Annual Report.--The Architect of the Capitol shall 
submit to Congress annually a report on congressional energy 
management and conservation programs required under this 
section that describes in detail--
            ``(1) energy expenditures and savings estimates for 
        each facility;
            ``(2) energy management and conservation projects; 
        and
            ``(3) future priorities to ensure compliance with 
        this section.''.
    (b) Table of Contents Amendment.--The table of contents of 
the National Energy Conservation Policy Act is amended by 
adding at the end of the items relating to part 3 of title V 
the following new item:

``Sec. 552. Energy and water savings measures in congressional 
          buildings.''.

    (c) Repeal.--Section 310 of the Legislative Branch 
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.
    (d) Energy Infrastructure.--The Architect of the Capitol, 
building on the Master Plan Study completed in July 2000, shall 
commission a study to evaluate the energy infrastructure of the 
Capital Complex to determine how the infrastructure could be 
augmented to become more energy efficient, using unconventional 
and renewable energy resources, in a way that would enable the 
Complex to have reliable utility service in the event of power 
fluctuations, shortages, or outages.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Architect of the Capitol to carry out 
subsection (d), $2,000,000 for each of fiscal years 2004 
through 2008.

SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

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

  ``Fiscal Year                                     Percentage reduction
        2004..................................................        2 
        2005..................................................        4 
        2006..................................................        6 
        2007..................................................        8 
        2008..................................................       10 
        2009..................................................       12 
        2010..................................................       14 
        2011..................................................       16 
        2012..................................................       18 
        2013..................................................    20.''.

            (2) Reporting baseline.--The energy reduction goals 
        and baseline established in paragraph (1) of section 
        543(a) of the National Energy Conservation Policy Act 
        (42 U.S.C. 8253(a)(1)), as amended by this subsection, 
        supersede all previous goals and baselines under such 
        paragraph, and related reporting requirements.
    (b) Review and Revision of Energy Performance 
Requirement.--Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is further amended 
by adding at the end the following:
    ``(3) Not later than December 31, 2012, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2014 through 2023.''.
    (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by 
striking ``An agency may exclude'' and all that follows through 
the end and inserting ``(A) An agency may exclude, from the 
energy performance requirement for a fiscal year established 
under subsection (a) and the energy management requirement 
established under subsection (b), any Federal building or 
collection of Federal buildings, if the head of the agency 
finds that--
            ``(i) compliance with those requirements would be 
        impracticable;
            ``(ii) the agency has completed and submitted all 
        federally required energy management reports;
            ``(iii) the agency has achieved compliance with the 
        energy efficiency requirements of this Act, the Energy 
        Policy Act of 1992, Executive orders, and other Federal 
        law; and
            ``(iv) the agency has implemented all practicable, 
        life cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
    ``(B) A finding of impracticability under subparagraph 
(A)(i) shall be based on--
            ``(i) the energy intensiveness of activities 
        carried out in the Federal building or collection of 
        Federal buildings; or
            ``(ii) the fact that the Federal building or 
        collection of Federal buildings is used in the 
        performance of a national security function.''.
    (d) Review by Secretary.--Section 543(c)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is 
amended--
            (1) by striking ``impracticability standards'' and 
        inserting ``standards for exclusion'';
            (2) by striking ``a finding of impracticability'' 
        and inserting ``the exclusion''; and
            (3) by striking ``energy consumption requirements'' 
        and inserting ``requirements of subsections (a) and 
        (b)(1)''.
    (e) Criteria.--Section 543(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)) is further amended 
by adding at the end the following:
    ``(3) Not later than 180 days after the date of enactment 
of this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).''.
    (f) Retention of Energy and Water Savings.--Section 546 of 
the National Energy Conservation Policy Act (42 U.S.C. 8256) is 
amended by adding at the end the following new subsection:
    ``(e) Retention of Energy and Water Savings.--An agency may 
retain any funds appropriated to that agency for energy 
expenditures, water expenditures, or wastewater treatment 
expenditures, at buildings subject to the requirements of 
section 543(a) and (b), that are not made because of energy 
savings or water savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency, water 
conservation, or unconventional and renewable energy resources 
projects.''.
    (g) Reports.--Section 548(b) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``the 
        President and'' before ``Congress''; and
            (2) by inserting ``President and'' before 
        ``Congress''.
    (h) Conforming Amendment.--Section 550(d) of the National 
Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is amended 
in the second sentence by striking ``the 20 percent reduction 
goal established under section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)).'' and inserting 
``each of the energy reduction goals established under section 
543(a).''.

SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act 
(42 U.S.C. 8253  is further amended by adding at the end the 
following:
    ``(e) Metering of Energy Use.--
            ``(1) Deadline.--By October 1, 2010, in accordance 
        with guidelines established by the Secretary under 
        paragraph (2), all Federal buildings shall, for the 
        purposes of efficient use of energy and reduction in 
        the cost of electricity used in such buildings, be 
        metered or submetered. Each agency shall use, to the 
        maximum extent practicable, advanced meters or advanced 
        metering devices that provide data at least daily and 
        that measure at least hourly consumption of electricity 
        in the Federal buildings of the agency. Such data shall 
        be incorporated into existing Federal energy tracking 
        systems and made available to Federal facility energy 
        managers.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days 
                after the date of enactment of this subsection, 
                the Secretary, in consultation with the 
                Department of Defense, the General Services 
                Administration, representatives from the 
                metering industry, utility industry, energy 
                services industry, energy efficiency industry, 
                energy efficiency advocacy organizations, 
                national laboratories, universities, and 
                Federal facility energy managers, shall 
                establish guidelines for agencies to carry out 
                paragraph (1).
                    ``(B) Requirements for guidelines.--The 
                guidelines shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering 
                                and submetering and the reduced 
                                cost of operation and 
                                maintenance expected to result 
                                from metering and submetering;
                                    ``(II) the extent to which 
                                metering and submetering are 
                                expected to result in increased 
                                potential for energy 
                                management, increased potential 
                                for energy savings and energy 
                                efficiency improvement, and 
                                cost and energy savings due to 
                                utility contract aggregation; 
                                and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations 
                        concerning the amount of funds and the 
                        number of trained personnel necessary 
                        to gather and use the metering 
                        information to track and reduce energy 
                        use;
                            ``(iii) establish priorities for 
                        types and locations of buildings to be 
                        metered and submetered based on cost-
                        effectiveness and a schedule of 1 or 
                        more dates, not later than 1 year after 
                        the date of issuance of the guidelines, 
                        on which the requirements specified in 
                        paragraph (1) shall take effect; and
                            ``(iv) establish exclusions from 
                        the requirements specified in paragraph 
                        (1) based on the de minimis quantity of 
                        energy use of a Federal building, 
                        industrial process, or structure.
            ``(3) Plan.--Not later than 6 months after the date 
        guidelines are established under paragraph (2), in a 
        report submitted by the agency under section 548(a), 
        each agency shall submit to the Secretary a plan 
        describing how the agency will implement the 
        requirements of paragraph (1), including (A) how the 
        agency will designate personnel primarily responsible 
        for achieving the requirements and (B) demonstration by 
        the agency, complete with documentation, of any finding 
        that advanced meters or advanced metering devices, as 
        defined in paragraph (1), are not practicable.''.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Energy star product.--The term `Energy Star 
        product' means a product that is rated for energy 
        efficiency under an Energy Star program.
            ``(2) Energy star program.--The term `Energy Star 
        program' means the program established by section 324A 
        of the Energy Policy and Conservation Act.
            ``(3) Executive agency.--The term `executive 
        agency' has the meaning given the term in section 4 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 
        403).
            ``(4) FEMP designated product.--The term `FEMP 
        designated product' means a product that is designated 
        under the Federal Energy Management Program of the 
        Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        executive agency for an energy consuming product, the 
        head of the executive agency shall, except as provided 
        in paragraph (2), procure--
                    ``(A) an Energy Star product; or
                    ``(B) a FEMP designated product.
            ``(2) Exceptions.--The head of an executive agency 
        is not required to procure an Energy Star product or 
        FEMP designated product under paragraph (1) if the head 
        of the executive agency finds in writing that--
                    ``(A) an Energy Star product or FEMP 
                designated product is not cost-effective over 
                the life of the product taking energy cost 
                savings into account; or
                    ``(B) no Energy Star product or FEMP 
                designated product is reasonably available that 
                meets the functional requirements of the 
                executive agency.
            ``(3) Procurement planning.--The head of an 
        executive agency shall incorporate into the 
        specifications for all procurements involving energy 
        consuming products and systems, including guide 
        specifications, project specifications, and 
        construction, renovation, and services contracts that 
        include provision of energy consuming products and 
        systems, and into the factors for the evaluation of 
        offers received for the procurement, criteria for 
        energy efficiency that are consistent with the criteria 
        used for rating Energy Star products and for rating 
        FEMP designated products.
    ``(c) Listing of Energy Efficient Products in Federal 
Catalogs.--Energy Star products and FEMP designated products 
shall be clearly identified and prominently displayed in any 
inventory or listing of products by the General Services 
Administration or the Defense Logistics Agency. The General 
Services Administration or the Defense Logistics Agency shall 
supply only Energy Star products or FEMP designated products 
for all product categories covered by the Energy Star program 
or the Federal Energy Management Program, except in cases where 
the agency ordering a product specifies in writing that no 
Energy Star product or FEMP designated product is available to 
meet the buyer's functional requirements, or that no Energy 
Star product or FEMP designated product is cost-effective for 
the intended application over the life of the product, taking 
energy cost savings into account.
    ``(d) Specific Products.--(1) In the case of electric 
motors of 1 to 500 horsepower, agencies shall select only 
premium efficient motors that meet a standard designated by the 
Secretary. The Secretary shall designate such a standard not 
later than 120 days after the date of the enactment of this 
section, after considering the recommendations of associated 
electric motor manufacturers and energy efficiency groups.
    ``(2) All Federal agencies are encouraged to take actions 
to maximize the efficiency of air conditioning and 
refrigeration equipment, including appropriate cleaning and 
maintenance, including the use of any system treatment or 
additive that will reduce the electricity consumed by air 
conditioning and refrigeration equipment. Any such treatment or 
additive must be--
            ``(A) determined by the Secretary to be effective 
        in increasing the efficiency of air conditioning and 
        refrigeration equipment without having an adverse 
        impact on air conditioning performance (including 
        cooling capacity) or equipment useful life;
            ``(B) determined by the Administrator of the 
        Environmental Protection Agency to be environmentally 
        safe; and
            ``(C) shown to increase seasonal energy efficiency 
        ratio (SEER) or energy efficiency ratio (EER) when 
        tested by the National Institute of Standards and 
        Technology according to Department of Energy test 
        procedures without causing any adverse impact on the 
        system, system components, the refrigerant or 
        lubricant, or other materials in the system.

Results of testing described in subparagraph (C) shall be 
published in the Federal Register for public review and 
comment. For purposes of this section, a hardware device or 
primary refrigerant shall not be considered an additive.
    ``(e) Regulations.--Not later than 180 days after the date 
of the enactment of this section, the Secretary shall issue 
guidelines to carry out this section.''.
    (b) Conforming Amendment.--The table of contents of the 
National Energy Conservation Policy Act is further amended by 
inserting after the item relating to section 552 the following 
new item:

``Sec. 553. Federal procurement of energy efficient products.''.

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Permanent Extension.--Effective September 30, 2003, 
section 801(c) of the National Energy Conservation Policy Act 
(42 U.S.C. 8287(c)) is repealed.
    (b) Payment of Costs.--Section 802 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287a) is amended by 
inserting ``, water, or wastewater treatment'' after ``payment 
of energy''.
    (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read 
as follows:
            ``(2) The term `energy savings' means a reduction 
        in the cost of energy, water, or wastewater treatment, 
        from a base cost established through a methodology set 
        forth in the contract, used in an existing federally 
        owned building or buildings or other federally owned 
        facilities as a result of--
                    ``(A) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services;
                    ``(B) the increased efficient use of 
                existing energy sources by cogeneration or heat 
                recovery, excluding any cogeneration process 
                for other than a federally owned building or 
                buildings or other federally owned facilities; 
                or
                    ``(C) the increased efficient use of 
                existing water sources in either interior or 
                exterior applications.''.
    (d) Energy Savings Contract.--Section 804(3) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is 
amended to read as follows:
            ``(3) The terms `energy savings contract' and 
        `energy savings performance contract' mean a contract 
        that provides for the performance of services for the 
        design, acquisition, installation, testing, and, where 
        appropriate, operation, maintenance, and repair, of an 
        identified energy or water conservation measure or 
        series of measures at 1 or more locations. Such 
        contracts shall, with respect to an agency facility 
        that is a public building (as such term is defined in 
        section 3301 of title 40, United States Code), be in 
        compliance with the prospectus requirements and 
        procedures of section 3307 of title 40, United States 
        Code.''.
    (e) Energy or Water Conservation Measure.--Section 804(4) 
of the National Energy Conservation Policy Act (42 U.S.C. 
8287c(4)) is amended to read as follows:
            ``(4) The term `energy or water conservation 
        measure' means--
                    ``(A) an energy conservation measure, as 
                defined in section 551; or
                    ``(B) a water conservation measure that 
                improves the efficiency of water use, is life-
                cycle cost-effective,and involves water 
conservation, water recycling or reuse, more efficient treatment of 
wastewater or stormwater, improvements in operation or maintenance 
efficiencies, retrofit activities, or other related activities, not at 
a Federal hydroelectric facility.''.
    (f) Review.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Energy shall complete a 
review of the Energy Savings Performance Contract program to 
identify statutory, regulatory, and administrative obstacles 
that prevent Federal agencies from fully utilizing the program. 
In addition, this review shall identify all areas for 
increasing program flexibility and effectiveness, including 
audit and measurement verification requirements, accounting for 
energy use in determining savings, contracting requirements, 
including the identification of additional qualified 
contractors, and energy efficiency services covered. The 
Secretary shall report these findings to Congress and shall 
implement identified administrative and regulatory changes to 
increase program flexibility and effectiveness to the extent 
that such changes are consistent with statutory authority.
    (g) 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 deemed 
to have been entered into pursuant to such section 801 as 
amended by subsection (a) of this section.

SEC. 106. ENERGY SAVINGS PERFORMANCE CONTRACTS PILOT PROGRAM FOR 
                    NONBUILDING APPLICATIONS.

    (a) In General.--The Secretary of Defense and the heads of 
other interested Federal agencies are authorized to enter into 
up to 10 energy savings performance contracts using procedures, 
established under subsection (b), based on the procedures under 
title VIII of the National Energy Conservation Policy Act (42 
U.S.C. 8287 et seq.), for the purpose of achieving energy or 
water savings, secondary savings, and benefits incidental to 
those purposes, in nonbuilding applications. The payments to be 
made by the Federal Government under such contracts shall not 
exceed a total of $200,000,000 for all such contracts combined.
    (b) Procedures.--The Secretary of Energy, in consultation 
with the Administrator of General Services and the Secretary of 
Defense, shall establish procedures based on the procedures 
under title VIII of the National Energy Conservation Policy Act 
(42 U.S.C. 8287 et seq.), for implementing this section.
    (c) Definitions.--In this section:
            (1) Nonbuilding application.--The term 
        ``nonbuilding application'' means--
                    (A) any class of vehicles, devices, or 
                equipment that are transportable under their 
                own power by land, sea, or air that consume 
                energy from any fuel source for the purpose of 
                such transportability, or to maintain a 
                controlled environment within such vehicle, 
                device, or equipment; or
                    (B) any Federally owned equipment used to 
                generate electricity or transport water.
            (2) Secondary savings.--The term ``secondary 
        savings'' means additional energy or cost savings that 
        are a direct consequence of the energy or water savings 
        that result from the financing and implementation of 
        the energy savings performance contract, including, but 
        not limited to, energy or cost savings that result from 
        a reduction in the need for fuel delivery and 
        logistical support, or the increased efficiency in the 
        production of electricity.
    (d) Report.--Not later than 3 years after the date of 
enactment of this section, the Secretary of Energy shall report 
to Congress on the progress and results of the projects funded 
pursuant to this section. Such report shall include a 
description of projects undertaken; the energy, water, and cost 
savings, secondary savings, and other benefits that resulted 
from such projects; and recommendations on whether the pilot 
program should be extended, expanded, or authorized permanently 
as a part of the program authorized under title VIII of the 
National Energy Conservation Policy Act (42 U.S.C. 8287 et 
seq.).

SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) Voluntary Agreements.--The Secretary of Energy is 
authorized to enter into voluntary agreements with 1 or more 
persons in industrial sectors that consume significant amounts 
of primary energy per unit of physical output to reduce the 
energy intensity of their production activities by a 
significant amount relative to improvements in each sector in 
recent years.
    (b) Recognition.--The Secretary of Energy, in cooperation 
with the Administrator of the Environmental Protection Agency 
and other appropriate Federal agencies, shall recognize and 
publicize the achievements of participants in voluntary 
agreements under this section.
    (c) Definition.--In this section, the term ``energy 
intensity'' means the primary energy consumed per unit of 
physical output in an industrial process.

SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary of Energy, in 
consultation with the Administrator of General Services, shall 
establish an Advanced Building Efficiency Testbed program for 
the development, testing, and demonstration of advanced 
engineering systems, components, and materials to enable 
innovations in building technologies. The program shall 
evaluate efficiency concepts for government and industry 
buildings, and demonstrate the ability of next generation 
buildings to support individual and organizational productivity 
and health (including by improving indoor air quality) as well 
as flexibility and technological change to improve 
environmental sustainability. Such program shall complement and 
not duplicate existing national programs.
    (b) Participants.--The program established under subsection 
(a) shall be led by a university with the ability to combine 
the expertise from numerous academic fields including, at a 
minimum, intelligent workplaces and advanced building systems 
and engineering, electrical and computer engineering, computer 
science, architecture, urban design, and environmental and 
mechanical engineering. Such university shall partner with 
other universities and entities who have established programs 
and the capability of advancing innovative building efficiency 
technologies.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Energy to carry out this 
section $6,000,000 for each of the fiscal years 2004 through 
2006, to remain available until expended. For any fiscal year 
in which funds are expended under this section, the Secretary 
shall provide \1/3\ of the total amount to the lead university 
described in subsection (b), and provide the remaining \2/3\ to 
the other participants referred to in subsection (b) on an 
equal basis.

SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.

    Section 305(a) of the Energy Conservation and Production 
Act (42 U.S.C. 6834(a)) is amended--
            (1) in paragraph (2)(A), by striking ``CABO Model 
        Energy Code, 1992'' and inserting ``the 2003 
        International Energy Conservation Code''; and
            (2) by adding at the end the following:
    ``(3) Revised federal building energy efficiency 
performance standards.--
            ``(A) In general.--Not later than 1 year after the 
        date of enactment of this paragraph, the Secretary of 
        Energy shall establish, by rule, revised Federal 
        building energy efficiency performance standards that 
        require that--
                    ``(i) if life-cycle cost-effective, for new 
                Federal buildings--
                            ``(I) such buildings be designed so 
                        as to achieve energy consumption levels 
                        at least 30 percent below those of the 
                        version current as of the date of 
                        enactment of this paragraph of 
theASHRAE Standard or the International Energy Conservation Code, as 
appropriate; and
                            ``(II) sustainable design 
                        principles are applied to the siting, 
                        design, and construction of all new and 
                        replacement buildings; and
                    ``(ii) where water is used to achieve 
                energy efficiency, water conservation 
                technologies shall be applied to the extent 
                they are life-cycle cost effective.
            ``(B) Additional revisions.--Not later than 1 year 
        after the date of approval of each subsequent revision 
        of the ASHRAE Standard or the International Energy 
        Conservation Code, as appropriate, the Secretary of 
        Energy shall determine, based on the cost-effectiveness 
        of the requirements under the amendments, whether the 
        revised standards established under this paragraph 
        should be updated to reflect the amendments.
            ``(C) Statement on compliance of new buildings.--In 
        the budget request of the Federal agency for each 
        fiscal year and each report submitted by the Federal 
        agency under section 548(a) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8258(a)), the head 
        of each Federal agency shall include--
                    ``(i) a list of all new Federal buildings 
                owned, operated, or controlled by the Federal 
                agency; and
                    ``(ii) a statement concerning whether the 
                Federal buildings meet or exceed the revised 
                standards established under this paragraph.''.

SEC. 110. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
                    FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
                    CONCRETE.

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

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

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

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

            Subtitle B--Energy Assistance and State Programs

SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.

    Section 2602(b) of the Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8621(b)) is amended by striking ``and 
$2,000,000,000 for each of fiscal years 2002 through 2004'' and 
inserting ``$2,000,000,000 for fiscal years 2002 and 2003, and 
$3,400,000,000 for each of fiscal years 2004 through 2006''.

SEC. 122. 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 2004, $400,000,000 for fiscal 
year 2005, and $500,000,000 for fiscal year 2006''.

SEC. 123. STATE ENERGY PROGRAMS.

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

                    ``STATE ENERGY EFFICIENCY GOALS

    ``Sec. 364. Each State energy conservation plan with 
respect to which assistance is made available under this part 
on or after the date of enactment of the Energy Policy Act of 
2003 shall contain a goal, consisting of an improvement of 25 
percent or more in the efficiency of use of energy in the State 
concerned in calendar year 2010 as compared to calendar year 
1990, and may contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the 
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
amended by striking ``for fiscal years 1999 through 2003 such 
sums as may be necessary'' and inserting ``$100,000,000 for 
each of the fiscal years 2004 and 2005 and $125,000,000 for 
fiscal year 2006''.

SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) Definitions.--In this section:
            (1) Eligible state.--The term ``eligible State'' 
        means a State that meets the requirements of subsection 
        (b).
            (2) Energy star program.--The term ``Energy Star 
        program'' means the program established by section 324A 
        of the Energy Policy and Conservation Act.
            (3) Residential energy star product.--The term 
        ``residential Energy Star product'' means a product for 
        a residence that is rated for energy efficiency under 
        the Energy Star program.
            (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (5) State energy office.--The term ``State energy 
        office'' means the State agency responsible for 
        developing State energy conservation plans under 
        section 362 of the Energy Policy and Conservation Act 
        (42 U.S.C. 6322).
            (6) State program.--The term ``State program'' 
        means a State energy efficient appliance rebate program 
        described in subsection (b)(1).
    (b) Eligible States.--A State shall be eligible to receive 
an allocation under subsection (c) if the State--
            (1) establishes (or has established) a State energy 
        efficient appliance rebate program to provide rebates 
        to residential consumers for the purchase of 
        residential Energy Star products to replace used 
        appliances of the same type;
            (2) submits an application for the allocation at 
        such time, in such form, and containing such 
        information as the Secretary may require; and
            (3) provides assurances satisfactory to the 
        Secretary that the State will use the allocation to 
        supplement, but not supplant, funds made available to 
        carry out the State program.
    (c) Amount of Allocations.--
            (1) In general.--Subject to paragraph (2), for each 
        fiscal year, the Secretary shall allocate to the State 
        energy office of each eligible State to carry out 
        subsection (d) an amount equal to the product obtained 
        by multiplying the amount made available under 
        subsection (f) for the fiscal year by the ratio that 
        the population of the State in the most recent calendar 
        year for which data are available bears to the total 
        population of all eligible States in that calendar 
        year.
            (2) Minimum allocations.--For each fiscal year, the 
        amounts allocated under this subsection shall be 
        adjusted proportionately so that no eligible State is 
        allocated a sum that is less than an amount determined 
        by the Secretary.
    (d) Use of Allocated Funds.--The allocation to a State 
energy office under subsection (c) may be used to pay up to 50 
percent of the cost of establishing and carrying out a State 
program.
    (e) Issuance of Rebates.--Rebates may be provided to 
residential consumers that meet the requirements of the State 
program. The amount of a rebate shall be determined by the 
State energy office, taking into consideration--
            (1) the amount of the allocation to the State 
        energy office under subsection (c);
            (2) the amount of any Federal or State tax 
        incentive available for the purchase of the residential 
        Energy Star product; and
            (3) the difference between the cost of the 
        residential Energy Star product and the cost of an 
        appliance that is not a residential Energy Star 
        product, but is of the same type as, and is the nearest 
        capacity, performance, and other relevant 
        characteristics (as determined by the State energy 
        office) to, the residential Energy Star product.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$50,000,000 for each of the fiscal years 2004 through 2008.

SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary of Energy may make grants to the 
State agency responsible for developing State energy 
conservation plans under section 362 of the Energy Policy and 
Conservation Act (42 U.S.C. 6322), or, if no such agency 
exists, a State agency designated by the Governor of the State, 
to assist units of local government in the State in improving 
the energy efficiency of public buildings and facilities--
            (1) through construction of new energy efficient 
        public buildings that use at least 30 percent less 
        energy than a comparable public building constructed in 
        compliance with standards prescribed in the most recent 
        version of the International Energy Conservation Code, 
        or a similar State code intended to achieve 
        substantially equivalent efficiency levels; or
            (2) through renovation of existing public buildings 
        to achieve reductions in energy use of at least 30 
        percent as compared to the baseline energy use in such 
        buildings prior to renovation, assuming a 3-year, 
        weather-normalized average for calculating such 
        baseline.
    (b) Administration.--State energy offices receiving grants 
under this section shall--
            (1) maintain such records and evidence of 
        compliance as the Secretary may require; and
            (2) develop and distribute information and 
        materials and conduct programs to provide technical 
        services and assistance to encourage planning, 
        financing, and design of energy efficient public 
        buildings by units of local government.
    (c) Authorization of Appropriations.--For the purposes of 
this section, there are authorized to be appropriated to the 
Secretary of Energy $30,000,000 for each of fiscal years 2004 
through 2008. Not more than 10 percent of appropriated funds 
shall be used for administration.

SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Grants.--The Secretary of Energy is authorized to make 
grants to units of local government, private, non-profit 
community development organizations, and Indian tribe economic 
development entities to improve energy efficiency; identify and 
develop alternative, renewable, and distributed energy 
supplies; and increase energy conservation in low income rural 
and urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
            (1) investments that develop alternative, 
        renewable, and distributed energy supplies;
            (2) energy efficiency projects and energy 
        conservation programs;
            (3) studies and other activities that improve 
        energy efficiency in low income rural and urban 
        communities;
            (4) planning and development assistance for 
        increasing the energy efficiency of buildings and 
        facilities; and
            (5) technical and financial assistance to local 
        government and private entities on developing new 
        renewable and distributed sources of power or combined 
        heat and power generation.
    (c) Definition.--For purposes of this section, the term 
``Indian tribe'' means any Indian tribe, band, nation, or other 
organized group or community, including any Alaskan Native 
village or regional or village corporation as defined in or 
established pursuant to the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.), that is recognized as eligible for 
thespecial programs and services provided by the United States 
to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of 
this section there are authorized to be appropriated to the 
Secretary of Energy $20,000,000 for each of fiscal years 2004 
through 2006.

                 Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

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

``SEC. 324A. ENERGY STAR PROGRAM.

    ``There is established at the Department of Energy and the 
Environmental Protection Agency a voluntary program to identify 
and promote energy-efficient products and buildings in order to 
reduce energy consumption, improve energy security, and reduce 
pollution through voluntary labeling of or other forms of 
communication about products and buildings that meet the 
highest energy efficiency standards. Responsibilities under the 
program shall be divided between the Department of Energy and 
the Environmental Protection Agency consistent with the terms 
of agreements between the 2 agencies. The Administrator and the 
Secretary shall--
            ``(1) promote Energy Star compliant technologies as 
        the preferred technologies in the marketplace for 
        achieving energy efficiency and to reduce pollution;
            ``(2) work to enhance public awareness of the 
        Energy Star label, including special outreach to small 
        businesses;
            ``(3) preserve the integrity of the Energy Star 
        label;
            ``(4) solicit comments from interested parties 
        prior to establishing or revising an Energy Star 
        product category, specification, or criterion (or 
        effective dates for any of the foregoing);
            ``(5) upon adoption of a new or revised product 
        category, specification, or criterion, provide 
        reasonable notice to interested parties of any changes 
        (including effective dates) in product categories, 
        specifications, or criteria along with an explanation 
        of such changes and, where appropriate, responses to 
        comments submitted by interested parties; and
            ``(6) provide appropriate lead time (which shall be 
        9 months, unless the Agency or Department determines 
        otherwise) prior to the effective date for a new or a 
        significant revision to a product category, 
        specification, or criterion, taking into account the 
        timing requirements of the manufacturing, product 
        marketing, and distribution process for the specific 
        product addressed.''.
    (b) Table of Contents Amendment.--The table of contents of 
the Energy Policy and Conservation Act is amended by inserting 
after the item relating to section 324 the following new item:

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

SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

    Section 337 of the Energy Policy and Conservation Act (42 
U.S.C. 6307) is amended by adding at the end the following:
    ``(c) HVAC Maintenance.--For the purpose of ensuring that 
installed air conditioning and heating systems operate at their 
maximum rated efficiency levels, the Secretary shall, not later 
than 180 days after the date of enactment of this subsection, 
carry out a program to educate homeowners and small business 
owners concerning the energy savings resulting from properly 
conducted maintenance of air conditioning, heating, and 
ventilating systems. The Secretary shall carry out the program 
in a cost-shared manner in cooperation with the Administrator 
of the Environmental Protection Agency and such other entities 
as the Secretary considers appropriate, including industry 
trade associations, industry members, and energy efficiency 
organizations.
    ``(d) Small Business Education and Assistance.--The 
Administrator of the Small Business Administration, in 
consultation with the Secretary of Energy and the Administrator 
of the Environmental Protection Agency, shall develop and 
coordinate a Government-wide program, building on the existing 
Energy Star for Small Business Program, to assist small 
businesses to become more energy efficient, understand the cost 
savings obtainable through efficiencies, and identify financing 
options for energy efficiency upgrades. The Secretary and the 
Administrator of the Small Business Administration shall make 
the program information available directly to small businesses 
and through other Federal agencies, including the Federal 
Emergency Management Program and the Department of 
Agriculture.''.

SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

    (a) Definitions.--Section 321 of the Energy Policy and 
Conservation Act (42 U.S.C. 6291) is amended--
            (1) in paragraph (30)(S), by striking the period 
        and adding at the end the following: ``but does not 
        include any lamp specifically designed to be used for 
        special purpose applications and that is unlikely to be 
        used in general purpose applications such as those 
        described in subparagraph (D), and also does not 
        include any lamp not described in subparagraph (D) that 
        is excluded by the Secretary, by rule, because the lamp 
        is designed for special applications and is unlikely to 
        be used in general purpose applications.''; and
            (2) by adding at the end the following:
            ``(32) The term `battery charger' means a device 
        that charges batteries for consumer products and 
        includes battery chargers embedded in other consumer 
        products.
            ``(33) The term `commercial refrigerators, 
        freezers, and refrigerator-freezers' means 
        refrigerators, freezers, or refrigerator-freezers 
        that--
                    ``(A) are not consumer products regulated 
                under this Act; and
                    ``(B) incorporate most components involved 
                in the vapor-compression cycle and the 
                refrigerated compartment in a single package.
            ``(34) The term `external power supply' means an 
        external power supply circuit that is used to convert 
        household electric current into either DC current or 
        lower-voltage AC current to operate a consumer product.
            ``(35) The term `illuminated exit sign' means a 
        sign that--
                    ``(A) is designed to be permanently fixed 
                in place to identify an exit; and
                    ``(B) consists of an electrically powered 
                integral light source that illuminates the 
                legend `EXIT' and any directional indicators 
                and provides contrast between the legend, any 
                directional indicators, and the background.
            ``(36)(A) Except as provided in subparagraph (B), 
        the term `distribution transformer' means a transformer 
        that--
                    ``(i) has an input voltage of 34.5 
                kilovolts or less;
                    ``(ii) has an output voltage of 600 volts 
                or less; and
                    ``(iii) is rated for operation at a 
                frequency of 60 Hertz.
            ``(B) The term `distribution transformer' does not 
        include--
                    ``(i) transformers with multiple voltage 
                taps, with the highest voltage tap equaling at 
                least 20 percent more than the lowest voltage 
                tap;
                    ``(ii) transformers, such as those commonly 
                known as drive transformers, rectifier 
                transformers, auto-transformers, 
                Uninterruptible Power System transformers, 
                impedance transformers, harmonic transformers, 
                regulating transformers, sealed and 
                nonventilating transformers, machine tool 
                transformers, welding transformers, grounding 
                transformers, or testingtransformers, that are 
designed to be used in a special purpose application and are unlikely 
to be used in general purpose applications; or
                    ``(iii) any transformer not listed in 
                clause (ii) that is excluded by the Secretary 
                by rule because--
                            ``(I) the transformer is designed 
                        for a special application;
                            ``(II) the transformer is unlikely 
                        to be used in general purpose 
                        applications; and
                            ``(III) the application of 
                        standards to the transformer would not 
                        result in significant energy savings.
            ``(37) The term `low-voltage dry-type distribution 
        transformer' means a distribution transformer that--
                    ``(A) has an input voltage of 600 volts or 
                less;
                    ``(B) is air-cooled; and
                    ``(C) does not use oil as a coolant.
            ``(38) The term `standby mode' means the lowest 
        power consumption mode that--
                    ``(A) cannot be switched off or influenced 
                by the user; and
                    ``(B) may persist for an indefinite time 
                when an appliance is connected to the main 
                electricity supply and used in accordance with 
                the manufacturer's instructions,
        as defined on an individual product basis by the 
        Secretary.
            ``(39) The term `torchiere' means a portable 
        electric lamp with a reflector bowl that directs light 
        upward so as to give indirect illumination.
            ``(40) The term `traffic signal module' means a 
        standard 8-inch (200mm) or 12-inch (300mm) traffic 
        signal indication, consisting of a light source, a 
        lens, and all other parts necessary for operation, that 
        communicates movement messages to drivers through red, 
        amber, and green colors.
            ``(41) The term `transformer' means a device 
        consisting of 2 or more coils of insulated wire that 
        transfers alternating current by electromagnetic 
        induction from 1 coil to another to change the original 
        voltage or current value.
            ``(42) The term `unit heater' means a self-
        contained fan-type heater designed to be installed 
        within the heated space, except that such term does not 
        include a warm air furnace.''.
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
            (1) in subsection (b), by adding at the end the 
        following:
            ``(9) Test procedures for illuminated exit signs 
        shall be based on the test method used under Version 
        2.0 of the Energy Star program of the Environmental 
        Protection Agency for illuminated exit signs.
            ``(10) Test procedures for distribution 
        transformers and low voltage dry-type distribution 
        transformers shall be based on the `Standard Test 
        Method for Measuring the Energy Consumption of 
        Distribution Transformers' prescribed by the National 
        Electrical Manufacturers Association (NEMA TP 2-1998). 
        The Secretary may review and revise this test 
        procedure. For purposes of section 346(a), this test 
        procedure shall be deemed to be testing requirements 
        prescribed by the Secretary under section 346(a)(1) for 
        distribution transformers for which the Secretary makes 
        a determination that energy conservation standards 
        would be technologically feasible and economically 
        justified, and would result in significant energy 
        savings.
            ``(11) Test procedures for traffic signal modules 
        shall be based on the test method used under the Energy 
        Star program of the Environmental Protection Agency for 
        traffic signal modules, as in effect on the date of 
        enactment of this paragraph.
            ``(12) Test procedures for medium base compact 
        fluorescent lamps shall be based on the test methods 
        used under the August 9, 2001, version of the Energy 
        Star program of the Environmental Protection Agency and 
        Department of Energy for compact fluorescent lamps. 
        Covered products shall meet all test requirements for 
        regulated parameters in section 325(bb). However, 
        covered products may be marketed prior to completion of 
        lamp life and lumen maintenance at 40 percent of rated 
        life testing provided manufacturers document 
        engineering predictions and analysis that support 
        expected attainment of lumen maintenance at 40 percent 
        rated life and lamp life time.''; and
            (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--The 
Secretary shall, not later than 24 months after the date of 
enactment of this subsection, prescribe testing requirements 
for suspended ceiling fans, refrigerated bottled or canned 
beverage vending machines, and commercial refrigerators, 
freezers, and refrigerator-freezers. Such testing requirements 
shall be based on existing test procedures used in industry to 
the extent practical and reasonable. In the case of suspended 
ceiling fans, such test procedures shall include efficiency at 
both maximum output and at an output no more than 50 percent of 
the maximum output.''.
    (c) New Standards.--Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295) is amended by adding at the 
end the following:
    ``(u) Battery Charger and External Power Supply Electric 
Energy Consumption.--
            ``(1) Initial rulemaking.--(A) The Secretary shall, 
        within 18 months after the date of enactment of this 
        subsection, prescribe by notice and comment, 
        definitions and test procedures for the power use of 
        battery chargers and external power supplies. In 
        establishing these test procedures, the Secretary shall 
        consider, among other factors, existing definitions and 
        test procedures used for measuring energy consumption 
        in standby mode and other modes and assess the current 
        and projected future market for battery chargers and 
        external power supplies. This assessment shall include 
        estimates of the significance of potential energy 
        savings from technical improvements to these products 
        and suggested product classes for standards. Prior to 
        the end of this time period, the Secretary shall hold a 
        scoping workshop to discuss and receive comments on 
        plans for developing energy conservation standards for 
        energy use for these products.
            ``(B) The Secretary shall, within 3 years after the 
        date of enactment of this subsection, issue a final 
        rule that determines whether energy conservation 
        standards shall be issued for battery chargers and 
        external power supplies or classes thereof. For each 
        product class, any such standards shall be set at the 
        lowest level of energy use that--
                    ``(i) meets the criteria and procedures of 
                subsections (o), (p), (q), (r), (s), and (t); 
                and
                    ``(ii) will result in significant overall 
                annual energy savings, considering both standby 
                mode and other operating modes.
            ``(2) Review of standby energy use in covered 
        products.--In determining pursuant to section 323 
        whether test procedures and energy conservation 
        standards pursuant to this section should be revised, 
        the Secretary shall consider, for covered products that 
        are major sources of standby mode energy consumption, 
        whether to incorporate standby mode into such test 
        procedures and energy conservation standards, taking 
        into account, among other relevant factors, standby 
        mode power consumption compared to overall product 
        energy consumption.
            ``(3) Rulemaking.--The Secretary shall not propose 
        a standard under this section unless the Secretary has 
        issued applicable test procedures for each product 
        pursuant to section 323.
            ``(4) Effective date.--Any standard issued under 
        this subsection shall be applicable to products 
        manufactured or imported 3 years after the date of 
        issuance.
            ``(5) Voluntary programs.--The Secretary and the 
        Administrator shall collaborate and develop programs, 
        including programs pursuant to section 324A (relating 
        to Energy Star Programs) and other voluntary industry 
        agreements or codes of conduct, that are designed to 
        reduce standby mode energy use.
    ``(v) Suspended Ceiling Fans, Vending Machines, and 
Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--The Secretary shall not later than 36 months after 
the date on which testing requirements are prescribed by the 
Secretary pursuant to section 323(f), prescribe, by rule, 
energy conservation standards for suspended ceiling fans, 
refrigerated bottled or canned beverage vending machines, and 
commercial refrigerators, freezers, and refrigerator-freezers. 
In establishing standards under this subsection, the Secretary 
shall use the criteria and procedures contained in subsections 
(o) and (p). Any standard prescribed under this subsection 
shall apply to products manufactured 3 years after the date of 
publication of a final rule establishing such standard.
    ``(w) Illuminated Exit Signs.--Illuminated exit signs 
manufactured on or after January 1, 2005, shall meet the 
Version 2.0 Energy Star Program performance requirements for 
illuminated exit signs prescribed by the Environmental 
Protection Agency.
    ``(x) Torchieres.--Torchieres manufactured on or after 
January 1, 2005--
            ``(1) shall consume not more than 190 watts of 
        power; and
            ``(2) shall not be capable of operating with lamps 
        that total more than 190 watts.
    ``(y) Low Voltage Dry-Type Distribution Transformers.--The 
efficiency of low voltage dry-type distribution transformers 
manufactured on or after January 1, 2005, shall be the Class I 
Efficiency Levels for distribution transformers specified in 
Table 4-2 of the `Guide for Determining Energy Efficiency for 
Distribution Transformers' published by the National Electrical 
Manufacturers Association (NEMA TP-1-2002).
    ``(z) Traffic Signal Modules.--Traffic signal modules 
manufactured on or after January 1, 2006, shall meet the 
performance requirements used under the Energy Star program of 
the Environmental Protection Agency for traffic signals, as in 
effect on the date of enactment of this subsection, and shall 
be installed with compatible, electrically connected signal 
control interface devices and conflict monitoring systems.
    ``(aa) Unit Heaters.--Unit heaters manufactured on or after 
the date that is 3 years after the date of enactment of this 
subsection shall be equipped with an intermittent ignition 
device and shall have either power venting or an automatic flue 
damper.
    ``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp 
and covered lamp (no reflector) medium base compact fluorescent 
lamps manufactured on or after January 1, 2005, shall meet the 
following requirements prescribed by the August 9, 2001, 
version of the Energy Star Program Requirements for Compact 
Fluorescent Lamps, Energy Star Eligibility Criteria, Energy-
Efficiency Specification issued by the Environmental Protection 
Agency and Department of Energy: minimum initial efficacy; 
lumen maintenance at 1000 hours; lumen maintenance at 40 
percent of rated life; rapid cycle stress test; and lamp life. 
The Secretary may, by rule, establish requirements for color 
quality (CRI); power factor; operating frequency; and maximum 
allowable start time based on the requirements prescribed by 
the August 9, 2001, version of the Energy Star Program 
Requirements for Compact Fluorescent Lamps. The Secretary may, 
by rule, revise these requirements or establish other 
requirements considering energy savings, cost effectiveness, 
and consumer satisfaction.
    ``(cc) Effective Date.--Section 327 shall apply--
            ``(1) to products for which standards are to be 
        established under subsections (u) and (v) on the date 
        on which a final rule is issued by the Department of 
        Energy, except that any State or local standards 
        prescribed or enacted for any such product prior to the 
        date on which such final rule is issued shall not be 
        preempted until the standard established under 
        subsection (u) or (v) for that product takes effect; 
        and
            ``(2) to products for which standards are 
        established under subsections (w) through (bb) on the 
        date of enactment of those subsections, except that any 
        State or local standards prescribed or enacted prior to 
        the date of enactment of those subsections shall not be 
        preempted until the standards established under 
        subsections (w) through (bb) take effect.''.
    (d) Residential Furnace Fans.--Section 325(f)(3) of the 
Energy Policy and Conservation Act (42 U.S.C. 6295(f)(3)) is 
amended by adding the following new subparagraph at the end:
    ``(D) Notwithstanding any provision of this Act, the 
Secretary may consider, and prescribe, if the requirements of 
subsection (o) of this section are met, energy efficiency or 
energy use standards for electricity used for purposes of 
circulating air through duct work.''.

SEC. 134. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product 
Labeling.--Section 324(a)(2) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding at 
the end the following:
    ``(F) Not later than 3 months after the date of enactment 
of this subparagraph, the Commission shall initiate a 
rulemaking to consider the effectiveness of the current 
consumer products labeling program in assisting consumers in 
making purchasing decisions and improving energy efficiency and 
to consider changes to the labeling rules that would improve 
the effectiveness of consumer product labels. Such rulemaking 
shall be completed not later than 2 years after the date of 
enactment of this subparagraph.''.
    (b) Rulemaking on Labeling for Additional Products.--
Section 324(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)) is further amended by adding at the end the 
following:
    ``(5) The Secretary or the Commission, as appropriate, may, 
for covered products referred to in subsections (u) through 
(aa) of section 325, prescribe, by rule, pursuant to this 
section, labeling requirements for such products after a test 
procedure has been set pursuant to section 323. In the case of 
products to which TP-1 standards under section 325(y) apply, 
labeling requirements shall be based on the `Standard for the 
Labeling of Distribution Transformer Efficiency' prescribed by 
the National Electrical Manufacturers Association (NEMA TP-3) 
as in effect upon the date of enactment of this paragraph.''.

                       Subtitle D--Public Housing

SEC. 141. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE HOUSING.

    Section 4(b) of the HUD Demonstration Act of 1993 (42 
U.S.C. 9816 note) is amended--
            (1) in paragraph (1), by inserting before the 
        semicolon at the end the following: ``, including 
        capabilities regarding the provision of energy 
        efficient, affordable housing and residential energy 
        conservation measures''; and
            (2) in paragraph (2), by inserting before the 
        semicolon the following: ``, including such activities 
        relating to the provision of energy efficient, 
        affordable housing and residential energy conservation 
        measures that benefit low-income families''.

SEC. 142. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION 
                    AND EFFICIENCY ACTIVITIES.

    Section 105(a)(8) of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5305(a)(8)) is amended--
            (1) by inserting ``or efficiency'' after ``energy 
        conservation'';
            (2) by striking ``, and except that'' and inserting 
        ``; except that''; and
            (3) by inserting before the semicolon at the end 
        the following: ``; and except that each percentage 
        limitation under this paragraph on the amount of 
        assistance provided under this title that may be used 
        for the provision of public services is hereby 
        increased by 10 percent, but such percentage increase 
        may be used only for the provision of public services 
        concerning energy conservation or efficiency''.

SEC. 143. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT 
                    HOUSING.

    (a) Single Family Housing Mortgage Insurance.--Section 
203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is 
amended, in the first undesignated paragraph beginning after 
subparagraph (B)(ii)(IV) (relating to solar energy systems), by 
striking ``20 percent'' and inserting ``30 percent''.
    (b) Multifamily Housing Mortgage Insurance.--Section 207(c) 
of the National Housing Act (12 U.S.C. 1713(c)) is amended, in 
the last undesignated paragraph beginning after paragraph (3) 
(relating to solar energy systems and residential energy 
conservation measures), by striking ``20 percent'' and 
inserting ``30 percent''.
    (c) Cooperative Housing Mortgage Insurance.--Section 213(p) 
of the National Housing Act (12 U.S.C. 1715e(p)) is amended by 
striking ``20 per centum'' and inserting ``30 percent''.
    (d) Rehabilitation and Neighborhood Conservation Housing 
Mortgage Insurance.--Section 220(d)(3)(B)(iii)(IV) of the 
National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)(IV)) is 
amended--
            (1) by striking ``with respect to rehabilitation 
        projects involving not more than five family units,''; 
        and
            (2) by striking ``20 per centum'' and inserting 
        ``30 percent''.
    (e) Low-Income Multifamily Housing Mortgage Insurance.--
Section 221(k) of the National Housing Act (12 U.S.C. 1715l(k)) 
is amended by striking ``20 per centum'' and inserting ``30 
percent''.
    (f) Elderly Housing Mortgage Insurance.--Section 
231(c)(2)(C) of the National Housing Act (12 U.S.C. 
1715v(c)(2)(C)) is amended by striking ``20 per centum'' and 
inserting ``30 percent''.
    (g) Condominium Housing Mortgage Insurance.--Section 234(j) 
of the National Housing Act (12 U.S.C. 1715y(j)) is amended by 
striking ``20 per centum'' and inserting ``30 percent''.

SEC. 144. 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'' at the end;
                    (B) in subparagraph (J), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(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'' and inserting the 
                following:
                            ``(i) In general.--The''; and
                    (B) by adding at the end the following:
                            ``(ii) Third party contracts.--
                        Contracts described in clause (i) may 
                        include contracts for equipment 
                        conversions to less costly utility 
                        sources, projects with resident-paid 
                        utilities, and 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 windows, heating 
                        system replacements, wall insulation, 
                        site-based generation, advanced energy 
                        savings technologies, including 
                        renewable energy generation, and other 
                        such retrofits.''.

SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED 
                    HOUSING.

    Section 251(b)(1) of the National Energy Conservation 
Policy Act (42 U.S.C. 8231(1)) is amended--
            (1) by striking ``financed with loans'' and 
        inserting ``assisted'';
            (2) by inserting after ``1959,'' the following: 
        ``which are eligible multifamily housing projects (as 
        such term is defined in section 512 of the Multifamily 
        Assisted Housing Reform and Affordability Act of 1997 
        (42 U.S.C. 1437f note)) and are subject to mortgage 
        restructuring and rental assistance sufficiency plans 
        under such Act,''; and
            (3) by inserting after the period at the end of the 
        first sentence the following new sentence: ``Such 
        improvements may also include the installation of 
        energy and water conserving fixtures and fittings that 
        conform to the American Society of Mechanical 
        Engineers/American National Standards Institute 
        standards A112.19.2-1998 and A112.18.1-2000, or any 
        revision thereto, applicable at the time of 
        installation.''.

SEC. 146. NORTH AMERICAN DEVELOPMENT BANK.

    Part 2 of subtitle D of title V of the North American Free 
Trade Agreement Implementation Act (22 U.S.C. 290m-290m-3) is 
amended by adding at the end the following:

``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.

    ``Consistent with the focus of the Bank's Charter on 
environmental infrastructure projects, the Board members 
representing the United States should use their voice and vote 
to encourage the Bank to finance projects related to clean and 
efficient energy, including energy conservation, that prevent, 
control, or reduce environmental pollutants or contaminants.''.

SEC. 147. ENERGY-EFFICIENT APPLIANCES.

    In purchasing appliances, a public housing agency shall 
purchase energy-efficient appliances that are Energy Star 
products or FEMP-designated products, as such terms are defined 
in section 553 of the National Energy Conservation Policy Act 
(as amended by this title), unless the purchase of energy-
efficient appliances is not cost-effective to the agency.

SEC. 148. 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 the enactment of the Energy 
                        Policy Act of 1992'' and inserting 
                        ``September 30, 2004'';
                            (ii) in subparagraph (A), by 
                        striking ``and'' at the end;
                            (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 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), by striking ``Council 
                of American'' and all that follows through 
                ``90.1-1989')'' and inserting ``2003 
                International Energy Conservation Code'';
            (2) in subsection (b)--
                    (A) by striking ``within 1 year after the 
                date of the enactment of the Energy Policy Act 
                of 1992'' and inserting ``by September 30, 
                2004''; and
                    (B) by striking ``CABO'' and all that 
                follows through ``1989'' and inserting ``the 
                2003 International Energy Conservation Code''; 
                and
            (3) in subsection (c)--
                    (A) in the heading, by striking ``Model 
                Energy Code'' and inserting ``The International 
                Energy Conservation Code''; and
                    (B) by striking ``CABO'' and all that 
                follows through ``1989'' and inserting ``the 
                2003 International Energy Conservation Code''.

SEC. 149. ENERGY STRATEGY FOR HUD.

    The Secretary of Housing and Urban Development shall 
develop and implement an integrated strategy to reduce utility 
expenses through cost-effective energy conservation and 
efficiency measures and energy efficient design and 
construction of public and assisted housing. The energy 
strategy shall include the development of energy reduction 
goals and incentives for public housing agencies. The Secretary 
shall submit a report to Congress, not later than 1 year after 
the date of the enactment of this Act, on the energy strategy 
and the actions taken by the Department of Housing and Urban 
Development to monitor the energy usage of public housing 
agencies and shall submit an update every 2 years thereafter on 
progress in implementing the strategy.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 6 months after the 
date of enactment of this Act, and each year thereafter, the 
Secretary of Energy shall review the available assessments of 
renewable energy resources within the United States, including 
solar, wind, biomass, ocean (tidal, wave, current, and 
thermal), geothermal, and hydroelectric energy resources, and 
undertake new assessments as necessary, taking into account 
changes in market conditions, available technologies, and other 
relevant factors.
    (b) Contents of Reports.--Not later than 1 year after the 
date of enactment of this Act, and each year thereafter, the 
Secretary shall publish a report based on the assessment under 
subsection (a). The report shall contain--
            (1) a detailed inventory describing the available 
        amount and characteristics of the renewable energy 
        resources; and
            (2) such other information as the Secretary 
        believes would be useful in developing such renewable 
        energy resources, including descriptions of surrounding 
        terrain, population and load centers, nearby energy 
        infrastructure, location of energy and water resources, 
        and available estimates of the costs needed to develop 
        each resource, together with an identification of any 
        barriers to providing adequate transmission for remote 
        sources of renewable energy resources to current and 
        emerging markets, recommendations for removing or 
        addressing such barriers, and ways to provide access to 
        the grid that do not unfairly disadvantage renewable or 
        other energy producers.
    (c) Authorization of Appropriations.--For the purposes of 
this section, there are authorized to be appropriated to the 
Secretary of Energy $10,000,000 for each of fiscal years 2004 
through 2008.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(a)) is amended by striking 
``and which satisfies'' and all that follows through 
``Secretary shall establish.'' and inserting ``. If there are 
insufficient appropriations to make full payments for electric 
production from all qualified renewable energy facilities in 
any given year, the Secretary shall assign 60 percent of 
appropriated funds for that year to facilities that use solar, 
wind, geothermal, or closed-loop (dedicated energy crops) 
biomass technologies to generate electricity, and assign the 
remaining 40 percent to other projects. The Secretary may, 
after transmitting to Congress an explanation of the reasons 
therefor, alter the percentage requirements of the preceding 
sentence.''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) 
of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is 
amended--
            (1) by striking ``a State or any political'' and 
        all that follows through ``nonprofit electrical 
        cooperative'' and inserting ``a not-for-profit electric 
        cooperative, a public utility described in section 115 
        of the Internal Revenue Code of 1986, a State, 
        Commonwealth, territory, or possession of the United 
        States or the District of Columbia, or a political 
        subdivision thereof, or an Indian tribal government or 
        subdivision thereof,''; and
            (2) by inserting ``landfill gas,'' after ``wind, 
        biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by striking 
``during the 10-fiscal year period beginning with the first 
full fiscal year occurring after the enactment of this 
section'' and inserting ``after October 1, 2003, and before 
October 1, 2013''.
    (d) Amount of Payment.--Section 1212(e)(1) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended by 
inserting ``landfill gas,'' after ``wind, biomass,''.
    (e) Sunset.--Section 1212(f) of the Energy Policy Act of 
1992 (42 U.S.C. 13317(f)) is amended by striking ``the 
expiration of'' and all that follows through ``of this 
section'' and inserting ``September 30, 2023''.
    (f) Authorization of Appropriations.--Section 1212(g) of 
the Energy Policy Act of 1992 (42 U.S.C. 13317(g)) is amended 
to read as follows:
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there 
        are authorized to be appropriated such sums as may be 
        necessary to carry out this section for fiscal years 
        2003 through 2023.
            ``(2) Availability of funds.--Funds made available 
        under paragraph (1) shall remain available until 
        expended.''.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the 
Secretary of Energy, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
            (1) Not less than 3 percent in fiscal years 2005 
        through 2007.
            (2) Not less than 5 percent in fiscal years 2008 
        through 2010.
            (3) Not less than 7.5 percent in fiscal year 2011 
        and each fiscal year thereafter.
    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means any solid, 
        nonhazardous, cellulosic material that is derived 
        from--
                    (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                    (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                    (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                    (D) a plant that is grown exclusively as a 
                fuel for the production of electricity.
            (2) Renewable energy.--The term ``renewable 
        energy'' means electric energy generated from solar, 
        wind, biomass, landfill gas, geothermal, municipal 
        solid waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new 
        capacity at an existing hydroelectric project.
    (c) Calculation.--For purposes of determining compliance 
with the requirement of this section, the amount of renewable 
energy shall be doubled if--
            (1) the renewable energy is produced and used on-
        site at a Federal facility;
            (2) the renewable energy is produced on Federal 
        lands and used at a Federal facility; or
            (3) the renewable energy is produced on Indian land 
        as defined in title XXVI of the Energy Policy Act of 
        1992 (25 U.S.C. 3501 et. seq.) and used at a Federal 
        facility.
    (d) Report.--Not later than April 15, 2005, and every 2 
years thereafter, the Secretary of Energy shall provide a 
report to Congress on the progress of the Federal Government in 
meeting the goals established by this section.

SEC. 204. INSULAR AREAS ENERGY SECURITY.

    Section 604 of the Act entitled ``An Act to authorize 
appropriations for certain insular areas of the United States, 
andfor other purposes'', approved December 24, 1980 (48 U.S.C. 
1492), is amended--
            (1) in subsection (a)(4) by striking the period and 
        inserting a semicolon;
            (2) by adding at the end of subsection (a) the 
        following new paragraphs:
            ``(5) electric power transmission and distribution 
        lines in insular areas are inadequate to withstand 
        damage caused by the hurricanes and typhoons which 
        frequently occur in insular areas and such damage often 
        costs millions of dollars to repair; and
            ``(6) the refinement of renewable energy 
        technologies since the publication of the 1982 
        Territorial Energy Assessment prepared pursuant to 
        subsection (c) reveals the need to reassess the state 
        of energy production, consumption, infrastructure, 
        reliance on imported energy, opportunities for energy 
        conservation and increased energy efficiency, and 
        indigenous sources in regard to the insular areas.'';
            (3) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary of the Interior, in consultation 
with the Secretary of Energy and the head of government of each 
insular area, shall update the plans required under subsection 
(c) by--
            ``(A) updating the contents required by subsection 
        (c);
            ``(B) drafting long-term energy plans for such 
        insular areas with the objective of reducing, to the 
        extent feasible, their reliance on energy imports by 
        the year 2010, increasing energy conservation and 
        energy efficiency, and maximizing, to the extent 
        feasible, use of indigenous energy sources; and
            ``(C) drafting long-term energy transmission line 
        plans for such insular areas with the objective that 
        the maximum percentage feasible of electric power 
        transmission and distribution lines in each insular 
        area be protected from damage caused by hurricanes and 
        typhoons.
    ``(2) Not later than December 31, 2005, the Secretary of 
the Interior shall submit to Congress the updated plans for 
each insular area required by this subsection.''; and
            (4) by amending subsection (g)(4) to read as 
        follows:
            ``(4) Power line grants for insular areas.--
                    ``(A) In general.--The Secretary of the 
                Interior is authorized to make grants to 
                governments of insular areas of the United 
                States to carry out eligible projects to 
                protect electric power transmission and 
                distribution lines in such insular areas from 
                damage caused by hurricanes and typhoons.
                    ``(B) Eligible projects.--The Secretary may 
                award grants under subparagraph (A) only to 
                governments of insular areas of the United 
                States that submit written project plans to the 
                Secretary for projects that meet the following 
                criteria:
                            ``(i) The project is designed to 
                        protect electric power transmission and 
                        distribution lines located in 1 or more 
                        of the insular areas of the United 
                        States from damage caused by hurricanes 
                        and typhoons.
                            ``(ii) The project is likely to 
                        substantially reduce the risk of future 
                        damage, hardship, loss, or suffering.
                            ``(iii) The project addresses 1 or 
                        more problems that have been repetitive 
                        or that pose a significant risk to 
                        public health and safety.
                            ``(iv) The project is not likely to 
                        cost more than the value of the 
                        reduction in direct damage and other 
                        negative impacts that the project is 
                        designed to prevent or mitigate. The 
                        cost benefit analysis required by this 
                        criterion shall be computed on a net 
                        present value basis.
                            ``(v) The project design has taken 
                        into consideration long-term changes to 
                        the areas and persons it is designed to 
                        protect and has manageable future 
                        maintenance and modification 
                        requirements.
                            ``(vi) The project plan includes an 
                        analysis of a range of options to 
                        address the problem it is designed to 
                        prevent or mitigate and a justification 
                        for the selection of the project in 
                        light of that analysis.
                            ``(vii) The applicant has 
                        demonstrated to the Secretary that the 
                        matching funds required by subparagraph 
                        (D) are available.
                    ``(C) Priority.--When making grants under 
                this paragraph, the Secretary shall give 
                priority to grants for projects which are 
                likely to--
                            ``(i) have the greatest impact on 
                        reducing future disaster losses; and
                            ``(ii) best conform with plans that 
                        have been approved by the Federal 
                        Government or the government of the 
                        insular area where the project is to be 
                        carried out for development or hazard 
                        mitigation for that insular area.
                    ``(D) Matching requirement.--The Federal 
                share of the cost for a project for which a 
                grant is provided under this paragraph shall 
                not exceed 75 percent of the total cost of that 
                project. The non-Federal share of the cost may 
                be provided in the form of cash or services.
                    ``(E) Treatment of funds for certain 
                purposes.--Grants provided under this paragraph 
                shall not be considered as income, a resource, 
                or a duplicative program when determining 
                eligibility or benefit levels for Federal major 
                disaster and emergency assistance.
                    ``(F) Authorization of appropriations.--
                There are authorized to be appropriated to 
                carry out this paragraph $5,000,000 for each 
                fiscal year beginning after the date of the 
                enactment of this paragraph.''.

SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    (a) In General.--Subchapter VI of chapter 31 of title 40, 
United States Code, is amended by adding at the end the 
following:

``Sec. 3177. Use of photovoltaic energy in public buildings

    ``(a) Photovoltaic Energy Commercialization Program.--
            ``(1) In general.--The Administrator of General 
        Services may establish a photovoltaic energy 
        commercialization program for the procurement and 
        installation of photovoltaic solar electric systems for 
        electric production in new and existing public 
        buildings.
            ``(2) Purposes.--The purposes of the program shall 
        be to accomplish the following:
                    ``(A) To accelerate the growth of a 
                commercially viable photovoltaic industry to 
                make this energy system available to the 
                general public as an option which can reduce 
                the national consumption of fossil fuel.
                    ``(B) To reduce the fossil fuel consumption 
                and costs of the Federal Government.
                    ``(C) To attain the goal of installing 
                solar energy systems in 20,000 Federal 
                buildings by 2010, as contained in the Federal 
                Government's Million Solar Roof Initiative of 
                1997.
                    ``(D) To stimulate the general use within 
                the Federal Government of life-cycle costing 
                and innovative procurement methods.
                    ``(E) To develop program performance data 
                to support policy decisions on future incentive 
                programs with respect to energy.
            ``(3) Acquisition of photovoltaic solar electric 
        systems.--
                    ``(A) In general.--The program shall 
                provide for the acquisition of photovoltaic 
                solar electric systems and associated storage 
                capability for use in public buildings.
                    ``(B) Acquisition levels.--The acquisition 
                of photovoltaic electric systems shall be at a 
                level substantial enough to allow use of low-
                cost production techniques with at least 150 
                megawatts (peak) cumulative acquired during the 
                5 years of the program.
            ``(4) Administration.--The Administrator shall 
        administer the program and shall--
                    ``(A) issue such rules and regulations as 
                may be appropriate to monitor and assess the 
                performance and operation of photovoltaic solar 
                electric systems installed pursuant to this 
                subsection;
                    ``(B) develop innovative procurement 
                strategies for the acquisition of such systems; 
                and
                    ``(C) transmit to Congress an annual report 
                on the results of the program.
    ``(b) Photovoltaic Systems Evaluation Program.--
            ``(1) In general.--Not later than 60 days after the 
        date of enactment of this section, the Administrator, 
        in consultation with the Secretary of Energy, shall 
        establish a photovoltaic solar energy systems 
        evaluation program to evaluate such photovoltaic solar 
        energy systems as are required in public buildings.
            ``(2) Program Requirement.--In evaluating 
        photovoltaic solar energy systems under the program, 
        the Administrator shall ensure that such systems 
        reflect the most advanced technology.
    ``(c) Authorization of Appropriations.--
            ``(1) Photovoltaic energy commercialization 
        program.--There are authorized to be appropriated to 
        carry out subsection (a) $50,000,000 for each of fiscal 
        years 2004 through 2008. Such sums shall remain 
        available until expended.
            ``(2) Photovoltaic systems evaluation program.--
        There are authorized to be appropriated to carry out 
        subsection (b) $10,000,000 for each of fiscal years 
        2004 through 2008. Such sums shall remain available 
        until expended.''.
    (b) Conforming Amendment.--The section analysis for such 
chapter is amended by inserting after the item relating to 
section 3176 the following:

``3177. Use of photovoltaic energy in public buildings.''.

SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
                    ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, 
                    PETROLEUM-BASED PRODUCT SUBSTITUTES, AND OTHER 
                    COMMERCIAL PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Thousands of communities in the United States, 
        many located near Federal lands, are at risk to 
        wildfire. Approximately 190,000,000 acres of land 
        managed by the Secretary of Agriculture and the 
        Secretary of the Interior are at risk of catastrophic 
        fire in the near future. The accumulation of heavy 
        forest fuel loads continues to increase as a result of 
        disease, insect infestations, and drought, further 
        raising the risk of fire each year.
            (2) In addition, more than 70,000,000 acres across 
        all land ownerships are at risk to higher than normal 
        mortality over the next 15 years from insect 
        infestation and disease. High levels of tree mortality 
        from insects and disease result in increased fire risk, 
        loss of old growth, degraded watershed conditions, and 
        changes in species diversity and productivity, as well 
        as diminished fish and wildlife habitat and decreased 
        timber values.
            (3) Preventive treatments such as removing fuel 
        loading, ladder fuels, and hazard trees, planting 
        proper species mix and restoring and protecting early 
        successional habitat, and other specific restoration 
        treatments designed to reduce the susceptibility of 
        forest land, woodland, and rangeland to insect 
        outbreaks, disease, and catastrophic fire present the 
        greatest opportunity for long-term forest health by 
        creating a mosaic of species-mix and age distribution. 
        Such prevention treatments are widely acknowledged to 
        be more successful and cost effective than suppression 
        treatments in the case of insects, disease, and fire.
            (4) The byproducts of preventive treatment (wood, 
        brush, thinnings, chips, slash, and other hazardous 
        fuels) removed from forest lands, woodlands and 
        rangelands represent an abundant supply of biomass for 
        biomass-to-energy facilities and raw material for 
        business. There are currently few markets for the 
        extraordinary volumes of byproducts being generated as 
        a result of the necessary large-scale preventive 
        treatment activities.
            (5) The United States should--
                    (A) promote economic and entrepreneurial 
                opportunities in using byproducts removed 
                through preventive treatment activities related 
                to hazardous fuels reduction, disease, and 
                insect infestation; and
                    (B) develop and expand markets for 
                traditionally underused wood and biomass as an 
                outlet for byproducts of preventive treatment 
                activities.
    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means trees and 
        woody plants, including limbs, tops, needles, and other 
        woody parts, and byproducts of preventive treatment, 
        such as wood, brush, thinnings, chips, and slash, that 
        are removed--
                    (A) to reduce hazardous fuels; or
                    (B) to reduce the risk of or to contain 
                disease or insect infestation.
            (2) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 4(e) of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450b(e)).
            (3) Person.--The term ``person'' includes--
                    (A) an individual;
                    (B) a community (as determined by the 
                Secretary concerned);
                    (C) an Indian tribe;
                    (D) a small business, micro-business, or a 
                corporation that is incorporated in the United 
                States; and
                    (E) a nonprofit organization.
            (4) Preferred community.--The term ``preferred 
        community'' means--
                    (A) any town, township, municipality, or 
                other similar unit of local government (as 
                determined by the Secretary concerned) that--
                            (i) has a population of not more 
                        than 50,000 individuals; and
                            (ii) the Secretary concerned, in 
                        the sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near land, the condition of 
                        which is at significant risk of 
                        catastrophic wildfire, disease, or 
                        insect infestation or which suffers 
                        from disease or insect infestation; or
                    (B) any county that--
                            (i) is not contained within a 
                        metropolitan statistical area; and
                            (ii) the Secretary concerned, in 
                        the sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near land, the condition of 
                        which is at significant risk of 
                        catastrophic wildfire, disease, or 
                        insect infestation or which suffers 
                        from disease or insect infestation.
            (5) Secretary concerned.--The term ``Secretary 
        concerned'' means--
                    (A) the Secretary of Agriculture with 
                respect to National Forest System lands; and
                    (B) the Secretary of the Interior with 
                respect to Federal lands under the jurisdiction 
                of the Secretary of the Interior and Indian 
                lands.
    (c) Biomass Commercial Use Grant Program.--
            (1) In general.--The Secretary concerned may make 
        grants to any person that owns or operates a facility 
        that uses biomass as a raw material to produce electric 
        energy, sensible heat, transportation fuels, or 
        substitutes for petroleum-based products to offset the 
        costs incurred to purchase biomass for use by such 
        facility.
            (2) Grant amounts.--A grant under this subsection 
        may not exceed $20 per green ton of biomass delivered.
            (3) Monitoring of grant recipient activities.--As a 
        condition of a grant under this subsection, the grant 
        recipient shall keep such records as the Secretary 
        concerned may require to fully and correctly disclose 
        the use of the grant funds and all transactions 
        involved in the purchase of biomass. Upon notice by a 
        representative of the Secretary concerned, the grant 
        recipient shall afford the representative reasonable 
        access to the facility that purchases or uses biomass 
        and an opportunity to examine the inventory and records 
        of the facility.
    (d) Improved Biomass Use Grant Program.--
            (1) In general.--The Secretary concerned may make 
        grants to persons to offset the cost of projects to 
        develop or research opportunities to improve the use 
        of, or add value to, biomass. In making such grants, 
        the Secretary concerned shall give preference to 
        persons in preferred communities.
            (2) Selection.--The Secretary concerned shall 
        select a grant recipient under paragraph (1) after 
        giving consideration to the anticipated public benefits 
        of the project, including the potential to develop 
        thermal or electric energy resources or affordable 
        energy, opportunities for the creation or expansion of 
        small businesses and micro-businesses, and the 
        potential for new job creation.
            (3) Grant amount.--A grant under this subsection 
        may not exceed $500,000.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated $50,000,000 for each of the fiscal years 
2004 through 2014 to carry out this section.
    (f) Report.--Not later than October 1, 2010, the Secretary 
of Agriculture, in consultation with the Secretary of the 
Interior, shall submit to the Committee on Energy and Natural 
Resources and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Resources, the 
Committee on Energy and Commerce, and the Committee on 
Agriculture of the House of Representatives a report describing 
the results of the grant programs authorized by this section. 
The report shall include the following:
            (1) An identification of the size, type, and the 
        use of biomass by persons that receive grants under 
        this section.
            (2) The distance between the land from which the 
        biomass was removed and the facility that used the 
        biomass.
            (3) The economic impacts, particularly new job 
        creation, resulting from the grants to and operation of 
        the eligible operations.

SEC. 207. BIOBASED PRODUCTS.

    Section 9002(c)(1) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by 
inserting ``or such items that comply with the regulations 
issued under section 103 of Public Law 100-556 (42 U.S.C. 
6914b-1)'' after ``practicable''.

                     Subtitle B--Geothermal Energy

SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``John Rishel Geothermal 
Steam Act Amendments of 2003''.

SEC. 212. 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 lands to be leased at any time from qualified companies and 
individuals under this Act.
    ``(b) Competitive Lease Sale Required.--The Secretary shall 
hold a competitive lease sale at least once every 2 years for 
lands in a State which has nominations pending under subsection 
(a) if such lands are 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) Leases Sold As a Block.--If information is available 
to the Secretary indicating a geothermal resource that could be 
produced as 1 unit can reasonably be expected to underlie more 
than 1 parcel to be offered in a competitive lease sale, the 
parcels for such a resource may be offered for bidding as a 
block in the competitive lease sale.
    ``(e) Pending Lease Applications on April 1, 2003.--It 
shall be a priority for the Secretary of the Interior, and for 
the Secretary of Agriculture with respect to National Forest 
Systems lands, to ensure timely completion of administrative 
actions necessary to process applications for geothermal 
leasing pending on April 1, 2003. Such an application, and any 
lease issued pursuant to such an application--
            ``(1) except as provided in paragraph (2), shall be 
        subject to this section as in effect on April 1, 2003; 
        or
            ``(2) at the election of the applicant, shall be 
        subject to this section as in effect on the effective 
        date of this paragraph.''.

SEC. 213. 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 paragraph (c) by redesignating subparagraphs 
        (1) and (2) as subparagraphs (A) and (B);
            (2) by redesignating paragraphs (a) through (d) in 
        order as paragraphs (1) through (4);
            (3) by inserting ``(a) In General.--'' after ``Sec. 
        5.''; and
            (4) by adding at the end the following:
    ``(b) Direct Use.--Notwithstanding subsection (a)(1), with 
respect to the direct use of geothermal resources for purposes 
other than the commercial generation of electricity, the 
Secretary of the Interior shall establish a schedule of fees 
and collect fees pursuant to such a schedule in lieu of 
royalties based upon the total amount of the geothermal 
resources used. The schedule of fees shall ensure that there is 
a fair return to the public for the use of a geothermal 
resource based upon comparable fees charged for direct use of 
geothermal resources by States or private persons. For direct 
use by a State or local government for public purposes there 
shall be no royalty and the fee charged shall be nominal. 
Leases in existence on the date of enactment of the Energy 
Policy Act of 2003 shall be modified in order to reflect the 
provisions of this subsection.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal 
Steam Act of 1970 (30 U.S.C. 1003) is further amended by adding 
at the end the following:
    ``(f) Leasing for Direct Use of Geothermal Resources.--
Lands leased under this Act exclusively for direct use of 
geothermal resources shall be leased to any qualified applicant 
who first applies for such a lease under regulations issued by 
the Secretary, if--
            ``(1) the Secretary publishes a notice of the lands 
        proposed for leasing 60 days before the date of the 
        issuance of the lease; and
            ``(2) the Secretary does not receive in the 60-day 
        period beginning on the date of such publication any 
        nomination to include the lands concerned in the next 
        competitive lease sale.
    ``(g) Area Subject to Lease for Direct Use.--A geothermal 
lease for the direct use of geothermal resources shall embrace 
not more than the amount of acreage determined by the Secretary 
to be reasonably necessary for such proposed utilization.''.
    (c) Existing Leases With a Direct Use Facility.--
            (1) Application to convert.--Any lessee under a 
        lease under the Geothermal Steam Act of 1970 that was 
        issued before the date of the enactment of this Act may 
        apply to the Secretary of the Interior, by not later 
        than 18 months after the date of the enactment of this 
        Act, to convert such lease to a lease for direct 
        utilization of geothermal resources in accordance with 
        the amendments made by this section.
            (2) Conversion.--The Secretary shall approve such 
        an application and convert such a lease to a lease in 
        accordance with the amendments by not later than 180 
        days after receipt of such application, unless the 
        Secretary determines that the applicant is not a 
        qualified applicant with respect to the lease.
            (3) Application of new lease terms.--The amendment 
        made by subsection (a)(4) shall apply with respect to 
        payments under a lease converted under this subsection 
        that are due and owing to the United States on or after 
        July 16, 2003.

SEC. 214. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

    (a) Royalty.--Section 5 of the Geothermal Steam Act of 1970 
(30 U.S.C. 1004) is further amended--
            (1) in subsection (a) by striking paragraph (1) and 
        inserting the following:
            ``(1) a royalty on electricity produced using 
        geothermal steam and associated geothermal resources, 
        other than direct use of geothermal resources, that 
        shall be--
                    ``(A) not less than 1 percent and not more 
                than 2.5 percent of the gross proceeds from the 
                sale of electricity produced from such 
                resources during the first 10 years of 
                production under the lease; and
                    ``(B) not less than 2 and not more than 5 
                percent of the gross proceeds from the sale of 
                electricity produced from such resources during 
                each year after such 10-year period;''; and
            (2) by adding at the end the following:
    ``(c) Final Regulation Establishing Royalty Rates.--In 
issuing any final regulation establishing royalty rates under 
this section, the Secretary shall seek--
            ``(1) to provide lessees a simplified 
        administrative system;
            ``(2) to encourage new development; and
            ``(3) to achieve the same long-term level of 
        royalty revenues to States and counties as the 
        regulation in effect on the date of enactment of this 
        subsection.
    ``(d) Credits for In-Kind Payments of Electricity.--The 
Secretary may provide to a lessee a credit against royalties 
owed under this Act, in an amount equal to the value of 
electricity provided under contract to a State or county 
government that is entitled to a portion of such royalties 
under section 20 of this Act, section 35 of the Mineral Leasing 
Act (30 U.S.C. 191), or section 6 of the Mineral Leasing Act 
for Acquired Lands (30 U.S.C. 355), if--
            ``(1) the Secretary has approved in advance the 
        contract between the lessee and the State or county 
        government for such in-kind payments;
            ``(2) the contract establishes a specific 
        methodology to determine the value of such credits; and
            ``(3) the maximum credit will be equal to the 
        royalty value owed to the State or county that is a 
        party to the contract and the electricity received will 
        serve as the royalty payment from the Federal 
        Government to that entity.''.
    (b) Disposal of Moneys From Sales, Bonuses, Royalties, and 
Rentals.--Section 20 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1019) is amended to read as follows:

``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND 
                    ROYALTIES.

    ``(a) In General.--Except with respect to lands in the 
State of Alaska, all monies received by the United States from 
sales, bonuses, rentals, and royalties under this Act shall be 
paid into the Treasury of the United States. Of amounts 
deposited under this subsection, subject to the provisions of 
section 35 of the Mineral Leasing Act (30 U.S.C. 191(b)) and 
section 5(a)(2) of this Act--
            ``(1) 50 percent shall be paid to the State within 
        the boundaries of which the leased lands or geothermal 
        resources are or were located; and
            ``(2) 25 percent shall be paid to the County within 
        the boundaries of which the leased lands or geothermal 
        resources are or were located.
    ``(b) Use of Payments.--Amounts paid to a State or county 
under subsection (a) shall be used consistent with the terms of 
section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.
    (c) Near-Term Production Incentive for Existing Leases.--
            (1) In general.--Notwithstanding section 5(a) of 
        the Geothermal Steam Act of 1970, the royalty required 
        to be paid shall be 50 percent of the amount of the 
        royalty otherwise required, on any lease issued before 
        the date of enactment of this Act that does not convert 
        to new royalty terms under subsection (e)--
                    (A) with respect to commercial production 
                of energy from a facility that begins such 
                production in the 6-year period beginning on 
                the date of the enactment of this Act; or
                    (B) on qualified expansion geothermal 
                energy.
            (2) 4-year application.--Paragraph (1) applies only 
        to new commercial production of energy from a facility 
        in the first 4 years of such production.
    (d) Definition of Qualified Expansion Geothermal Energy.--
In this section, the term ``qualified expansion geothermal 
energy'' means geothermal energy produced from a generation 
facility for which--
            (1) the production is increased by more than 10 
        percent as a result of expansion of the facility 
        carried out in the 6-year period beginning on the date 
        of the enactment of this Act; and
            (2) such production increase is greater than 10 
        percent of the average production by the facility 
        during the 5-year period preceding the expansion of the 
        facility.
    (e) Royalty Under Existing Leases.--
            (1) In general.--Any lessee under a lease issued 
        under the Geothermal Steam Act of 1970 before the date 
        of the enactment of this Act may modify the terms of 
        the lease relating to payment of royalties to comply 
        with the amendment made by subsection (a), by applying 
        to the Secretary of the Interior by not later than 18 
        months after the date of the enactment of this Act.
            (2) Application of modification.--Such modification 
        shall apply to any use of geothermal steam and any 
        associated geothermal resources to which the amendment 
        applies that occurs after the date of that application.
            (3) Consultation.--The Secretary--
                    (A) shall consult with the State and local 
                governments affected by any proposed changes in 
                lease royalty terms under this subsection; and
                    (B) may establish a gross proceeds 
                percentage within the range specified in the 
                amendment made by subsection (a)(1) and with 
                the concurrence of the lessee and the State.

SEC. 215. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LANDS.

    (a) In General.--Not later than 180 days after the date of 
the 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 lands and National Forest System lands 
under their respective jurisdictions.
    (b) Lease and Permit Applications.--The memorandum of 
understanding shall--
            (1) identify areas with geothermal potential on 
        lands included in the National Forest System and, when 
        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 procession.
    (c) Data Retrieval System.--The memorandum of understanding 
shall establish a joint data retrieval system that is capable 
of tracking lease and permit applications and providing to the 
applicant information as to their status within the Departments 
of the Interior and Agriculture, including an estimate of the 
time required for administrative action.

SEC. 216. REVIEW AND REPORT TO CONGRESS.

    The Secretary of the Interior shall promptly review and 
report to Congress not later than 3 years after the date of the 
enactment of this Act regarding the status of all withdrawals 
from leasing under the Geothermal Steam Act of 1970 (30 U.S.C. 
1001 et seq.) of Federal lands, specifying for each such area 
whether the basis for such withdrawal still applies.

SEC. 217. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
                    STUDIES.

    (a) In General.--The Geothermal Steam Act of 1970 (30 
U.S.C. 1001 et seq.) is amended by adding at the end the 
following:

``SEC. 30. REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES, DOCUMENTATION, 
                    AND STUDIES.

    ``(a) In General.--The Secretary of the Interior may 
reimburse a person that is a lessee, operator, operating rights 
owner, or applicant for any lease under this Act for reasonable 
amounts paid by the person for preparation for the Secretary by 
a contractor or other person selected by the Secretary of any 
project-level analysis, documentation, or related study 
required pursuant to the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) with respect to the lease.
    ``(b) Conditions.--The Secretary may provide reimbursement 
under subsection (a) only if--
            ``(1) adequate funding to enable the Secretary to 
        timely prepare the analysis, documentation, or related 
        study is not appropriated;
            ``(2) the person paid the costs voluntarily;
            ``(3) the person maintains records of its costs in 
        accordance with regulations issued by the Secretary;
            ``(4) the reimbursement is in the form of a 
        reduction in the Federal share of the royalty required 
        to be paid for the lease for which the analysis, 
        documentation, or related study is conducted, and is 
        agreed to by the Secretary and the person reimbursed 
        prior to commencing the analysis, documentation, or 
        related study; and
            ``(5) the agreement required under paragraph (4) 
        contains provisions--
                    ``(A) reducing royalties owed on lease 
                production based on market prices;
                    ``(B) stipulating an automatic termination 
                of the royalty reduction upon recovery of 
                documented costs; and
                    ``(C) providing a process by which the 
                lessee may seek reimbursement for circumstances 
                in which production from the specified lease is 
                not possible.''.
    (b) Application.--The amendment made by this section shall 
apply with respect to an analysis, documentation, or a related 
study conducted on or after the date of enactment of this Act 
for any lease entered into before, on, or after the date of 
enactment of this Act.
    (c) Deadline for Regulations.--The Secretary shall issue 
regulations implementing the amendment made by this section by 
not later than 1 year after the date of enactment of this Act.

SEC. 218. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

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

SEC. 219. 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 field, or 
        like area, is then subject to any Unit Agreement 
        (cooperative plan of development or operation)), 
        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 such 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. A majority interest 
        of owners of any single lease shall have the authority 
        to commit that lease to a Unit Agreement. The Secretary 
        of the Interior mayalso initiate the formation of a 
Unit Agreement if in the public interest.
            ``(2) Modification of lease requirements by 
        secretary.--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 such leases and 
        make conditions with reference to such leases, with the 
        consent of the lessees, in connection with the creation 
        and operation of any such Unit Agreement as the 
        Secretary may deem necessary or proper to secure the 
        proper protection of the public interest. Leases with 
        unlike lease terms or royalty rates do not need to be 
        modified to be in the same unit.
    ``(b) Requirement of Plans Under New Leases.--The 
Secretary--
            ``(1) may provide that geothermal leases issued 
        under this Act shall contain a provision requiring the 
        lessee to operate under such a reasonable Unit 
        Agreement; and
            ``(2) may prescribe such an Agreement under which 
        such 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 Agreement 
authorized by this section that applies to lands 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 Agreement 
to alter or modify from time to time the rate of prospecting 
and development and the quantity and rate of production under 
such an Agreement.
    ``(d) Exclusion From Determination of Holding or Control.--
Any lands that are subject to any Agreement approved or 
prescribed by the Secretary under this section shall not be 
considered in determining holdings or control under any 
provision of this Act.
    ``(e) Pooling of Certain Lands.--If separate tracts of 
lands cannot be independently developed and operated to use 
geothermal steam and associated geothermal resources pursuant 
to any section of this Act--
            ``(1) such lands, or a portion thereof, may be 
        pooled with other lands, 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 such pooling is determined by the Secretary to 
        be in the public interest; and
            ``(2) operation or production pursuant to such an 
        Agreement shall be treated as operation or production 
        with respect to each tract of land that is subject to 
        the agreement.
    ``(f) Unit Agreement Review.--No more than 5 years after 
approval of any cooperative or Unit Agreement and at least 
every 5 years thereafter, the Secretary shall review each such 
Agreement and, after notice and opportunity for comment, 
eliminate from inclusion in such Agreement any lands that the 
Secretary determines are not reasonably necessary for Unit 
operations under the Agreement. Such elimination shall be based 
on scientific evidence, and shall occur only if it is 
determined by the Secretary to be for the purpose of conserving 
and properly managing the geothermal resource. Any land so 
eliminated shall be eligible for an extension under subsection 
(g) of section 6 if it meets the requirements for such an 
extension.
    ``(g) Drilling or Development Contracts.-- 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 thereby. All leases operated under such approved 
drilling or development contracts, and interests thereunder, 
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 the 
appropriate State agencies and shall ensure that State leases 
included in any unitization or pooling arrangement are treated 
equally with Federal leases.''.

SEC. 220. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) is further amended in subsection (a) by striking 
paragraph (2) and inserting the following:
            ``(2) a royalty on any byproduct that is a mineral 
        named 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 such mineral 
        under a lease under that Act;''.

SEC. 221. REPEAL OF AUTHORITIES OF SECRETARY TO READJUST TERMS, 
                    CONDITIONS, RENTALS, AND ROYALTIES.

    Section 8 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1007) is amended by repealing subsection (b), and by 
redesignating subsection (c) as subsection (b).

SEC. 222. CREDITING OF RENTAL TOWARD ROYALTY.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) is further amended--
            (1) in subsection (a)(2) by inserting ``and'' after 
        the semicolon at the end;
            (2) in subsection (a)(3) by striking ``; and'' and 
        inserting a period;
            (3) by striking paragraph (4) of subsection (a); 
        and
            (4) by adding at the end the following:
    ``(e) Crediting of Rental Toward Royalty.--Any annual 
rental under this section that is paid with respect to a lease 
before the first day of the year for which the annual rental is 
owed shall be credited to the amount of royalty that is 
required to be paid under the lease for that year.''.

SEC. 223. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

    Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1005) is amended--
            (1) by striking so much as precedes subsection (c), 
        and striking subsections (e), (g), (h), (i), and (j);
            (2) by redesignating subsections (c), (d), and (f) 
        in order as subsections (g), (h), and (i); and
            (3) by inserting before subsection (g), as so 
        redesignated, the following:

``SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.

    ``(a) In General.--
            ``(1) Primary term.--A geothermal lease shall be 
        for a primary term of 10 years.
            ``(2) Initial extension.--The Secretary shall 
        extend the primary term of a geothermal lease for 5 
        years if, for each year after the fifth year of the 
        lease--
                    ``(A) the Secretary determined under 
                subsection (c) that the lessee satisfied the 
                work commitment requirements that applied to 
                the lease for that year; or
                    ``(B) the lessee paid in accordance with 
                subsection (d) the value of any work that was 
                not completed in accordance with those 
                requirements.
            ``(3) Additional extension.--The Secretary shall 
        extend the primary term of a geothermal lease (after an 
        initial extension under paragraph (2)) for an 
        additional 5 years if, for each year of the initial 
        extension under paragraph (2), the Secretary determined 
        under subsection (c) that the lessee satisfied the work 
        commitment requirements that applied to the lease for 
        that year.
    ``(b) Requirement to Satisfy Annual Work Commitment 
Requirement.--
            ``(1) In general.--The lessee for a geothermal 
        lease shall, for each year after the fifth year of the 
        lease, satisfy work commitment requirements prescribed 
        by the Secretary that apply to the lease for that year.
            ``(2) Prescription of work commitment 
        requirements.--The Secretary shall issue regulations 
        prescribing minimum equivalent dollar value work 
        commitment requirements for geothermal leases, that--
                    ``(A) require that a lessee, in each year 
                after the fifth year of the primary term of a 
                geothermal lease, diligently work to achieve 
                commercial production or utilization of steam 
                under the lease;
                    ``(B) require that in each year to which 
                work commitment requirements under the 
                regulations apply, the lessee shall 
                significantly reduce the amount of work that 
                remains to be done to achieve such production 
                or utilization;
                    ``(C) describe specific work that must be 
                completed by a lessee by the end of each year 
                to which the work commitment requirements apply 
                and factors, such as force majeure events, that 
                suspend or modify the work commitment 
                obligation;
                    ``(D) carry forward and apply to work 
                commitment requirements for a year, work 
                completed in any year in the preceding 3-year 
                period that was in excess of the work required 
                to be performed in that preceding year;
                    ``(E) establish transition rules for leases 
                issued before the date of the enactment of this 
                subsection, including terms under which a lease 
                that is near the end of its term on the date of 
                enactment of this subsection may be extended 
                for up to 2 years--
                            ``(i) to allow achievement of 
                        production under the lease; or
                            ``(ii) to allow the lease to be 
                        included in a producing unit; and
                    ``(F) establish an annual payment that, at 
                the option of the lessee, may be exercised in 
                lieu of meeting any work requirement for a 
                limited number of years that the Secretary 
                determines will not impair achieving diligent 
                development of the geothermal resource.
            ``(3) Termination of application of requirements.--
        Work commitment requirements prescribed under this 
        subsection shall not apply to a geothermal lease after 
        the date on which geothermal steam is produced or 
        utilized under the lease in commercial quantities.
    ``(c) Determination of Whether Requirements Satisfied.--The 
Secretary shall, by not later than 90 days after the end of 
each year for which work commitment requirements under 
subsection (b) apply to a geothermal lease--
            ``(1) determine whether the lessee has satisfied 
        the requirements that apply for that year;
            ``(2) notify the lessee of that determination; and
            ``(3) in the case of a notification that the lessee 
        did not satisfy work commitment requirements for the 
        year, include in the notification--
                    ``(A) a description of the specific work 
                that was not completed by the lessee in 
                accordance with the requirements; and
                    ``(B) the amount of the dollar value of 
                such work that was not completed, reduced by 
                the amount of expenditures made for work 
                completed in a prior year that is carried 
                forward pursuant to subsection (b)(2)(D).
    ``(d) Payment of Value of Uncompleted Work.--
            ``(1) In general.--If the Secretary notifies a 
        lessee that the lessee failed to satisfy work 
        commitment requirements under subsection (b), the 
        lessee shall pay to the Secretary, by not later than 
        the end of the 60-day period beginning on the date of 
        the notification, the dollar value of work that was not 
        completed by the lessee, in the amount stated in the 
        notification (as reduced under subsection (c)(3)(B)).
            ``(2) Failure to pay value of uncompleted work.--If 
        a lessee fails to pay such amount to the Secretary 
        before the end of that period, the lease shall 
        terminate upon the expiration of the period.
    ``(e) Continuation After Commercial Production or 
Utilization.--If geothermal steam is produced or utilized in 
commercial quantities within the primary term of the lease 
under subsection (a) (including any extension of the lease 
under subsection (a)), such lease shall continue until the date 
on which geothermal steam is no longer produced or utilized in 
commercial quantities.
    ``(f) Conversion of Geothermal Lease to Mineral Lease.--The 
lessee under a lease that has produced geothermal steam for 
electrical generation, has been determined by the Secretary to 
be incapable of any further commercial production or 
utilization of geothermal steam, and that is producing any 
valuable byproduct in payable quantities may, within 6 months 
after such determination--
            ``(1) convert the lease to a mineral lease under 
        the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 
        under the Mineral Leasing Act for Acquired Lands (30 
        U.S.C. 351 et seq.), if the lands that are subject to 
        the lease can be leased under that Act for the 
        production of such byproduct; or
            ``(2) convert the lease to a mining claim under the 
        general mining laws, if the byproduct is a locatable 
        mineral.''.

SEC. 224. ADVANCED ROYALTIES REQUIRED FOR SUSPENSION OF PRODUCTION.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) is further amended by adding at the end the following:
    ``(f) Advanced Royalties Required for Suspension of 
Production.--
            ``(1) Continuation of lease following cessation of 
        production.--If, at any time after commercial 
        production under a lease is achieved, production ceases 
        for any cause the lease shall remain in full force and 
        effect--
                    ``(A) during the 1-year period beginning on 
                the date production ceases; and
                    ``(B) after such period if, and so long as, 
                the lessee commences and continues diligently 
                and in good faith until such production is 
                resumed the steps, operations, or procedures 
                necessary to cause a resumption of such 
                production.
            ``(2) If production of heat or energy under a 
        geothermal lease is suspended after the date of any 
        such production for which royalty is required under 
        subsection (a) and the terms of paragraph (1) are not 
        met, the Secretary shall require the lessee, until the 
        end of such suspension, to pay royalty in advance at 
        the monthly pro-rata rate of the average annual rate at 
        which such royalty was paid each year in the 5-year-
        period preceding the date of suspension.
            ``(3) Paragraph (2) shall not apply if the 
        suspension is required or otherwise caused by the 
        Secretary, the Secretary of a military department, a 
        State or local government, or a force majeure.''.

SEC. 225. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam 
Act of 1970 (30 U.S.C. 1004) is further amended in subsection 
(a) in paragraph (3) by striking ``$1 per acre or fraction 
thereof for each year of the lease'' and all that follows 
through the end of the paragraph and inserting ``$1 per acre or 
fraction thereof for each year of the lease through the tenth 
year in the case of a lease awarded in a noncompetitive lease 
sale; or $2 per acre or fraction thereof for the first year, $3 
per acre or fraction thereof for each of the second through 
tenth years, in the case of a lease awarded in a 
competitivelease sale; and $5 per acre or fraction thereof for each 
year after the 10th year thereof for all leases.''.
    (b) Termination of Lease for Failure to Pay Rental.--
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
is further amended by adding at the end the following:
    ``(g) 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, upon the expiration 
        of the 45-day period beginning on the date of the 
        failure to pay such 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 such amount.''.

SEC. 226. LEASING AND PERMITTING ON FEDERAL LANDS WITHDRAWN FOR 
                    MILITARY PURPOSES.

    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 each military service and with 
interested States, counties, representatives of the geothermal 
industry, and other persons, shall submit to Congress a joint 
report concerning leasing and permitting activities for 
geothermal energy on Federal lands withdrawn for military 
purposes. Such report shall include the following:
            (1) A description of the Military Geothermal 
        Program, including any differences between it and the 
        non-Military Geothermal Program, including required 
        security procedures, and operational considerations, 
        and discussions as to the differences, and why they are 
        important. Further, the report shall describe revenues 
        or energy provided to the Department of Defense and its 
        facilities, royalty structures, where applicable, and 
        any revenue sharing with States and counties or other 
        benefits between--
                    (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.
            (2) If appropriate, a description of the current 
        methods and procedures used to ensure interagency 
        coordination, where needed, in developing renewable 
        energy sources on Federal lands withdrawn for military 
        purposes, and an identification of any new procedures 
        that might be required in the future for the 
        improvement of interagency coordination to ensure 
        efficient processing and administration of leases or 
        contracts for geothermal energy on Federal lands 
        withdrawn for military purposes, consistent with the 
        defense purposes of such withdrawals.
            (3) Recommendations for any legislative or 
        administrative actions that might better achieve 
        increased geothermal production, including a common 
        royalty structure, leasing procedures, or other changes 
        that increase production, offset military operation 
        costs, or enhance the Federal agencies' ability to 
        develop geothermal resources.
Except as provided in this section, nothing in this subtitle 
shall affect the legal status of the Department of the Interior 
and the Department of the Defense with respect to each other 
regarding geothermal leasing and development until such status 
is changed by law.

SEC. 227. TECHNICAL AMENDMENTS.

    The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) 
is further amended as follows:
            (1) By striking ``geothermal steam and associated 
        geothermal resources'' each place it appears and 
        inserting ``geothermal resources''.
            (2) Section 2(e) (30 U.S.C. 1001(e)) is amended to 
        read as follows:
            ``(e) `direct use' means utilization of geothermal 
        resources for commercial, residential, agricultural, 
        public facilities, or other energy needs other than the 
        commercial production of electricity; and''.
            (3) Section 21 (30 U.S.C. 1020) is amended by 
        striking ``(a) Within one hundred'' and all that 
        follows through ``(b) Geothermal'' and inserting 
        ``Geothermal''.
            (4) The first section (30 U.S.C. 1001 note) is 
        amended by striking ``That this'' and inserting the 
        following:

``SECTION 1. SHORT TITLE.

    ``This''.
            (5) Section 2 (30 U.S.C. 1001) is amended by 
        striking ``Sec. 2. As'' and inserting the following:

``SEC. 2. DEFINITIONS.

    ``As''.
            (6) Section 3 (30 U.S.C. 1002) is amended by 
        striking ``Sec. 3. Subject'' and inserting the 
        following:

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

    ``Subject''.
            (7) Section 5 (30 U.S.C. 1004) is further amended 
        by striking ``Sec. 5.'', and by inserting immediately 
        before and above subsection (a) the following:

``SEC. 5. RENTS AND ROYALTIES.''.

            (8) Section 7 (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''.
            (9) Section 8 (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''.
            (10) Section 9 (30 U.S.C. 1008) is amended by 
        striking ``Sec. 9. If'' and inserting the following:

``SEC. 9. BYPRODUCTS.

    ``If''.
            (11) Section 10 (30 U.S.C. 1009) is amended by 
        striking ``Sec. 10. The'' and inserting the following:

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

    ``The''.
            (12) Section 11 (30 U.S.C. 1010) is amended by 
        striking ``Sec. 11. The'' and inserting the following:

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

    ``The''.
            (13) Section 12 (30 U.S.C. 1011) is amended by 
        striking ``Sec. 12. Leases'' and inserting the 
        following:

``SEC. 12. TERMINATION OF LEASES.

    ``Leases''.
            (14) Section 13 (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''.
            (15) Section 14 (30 U.S.C. 1013) is amended by 
        striking ``Sec. 14. Subject'' and inserting the 
        following:

``SEC. 14. SURFACE LAND USE.

    ``Subject''.
            (16) Section 15 (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''.
            (17) Section 16 (30 U.S.C. 1015) is amended by 
        striking ``Sec. 16. Leases'' and inserting the 
        following:

``SEC. 16. REQUIREMENT FOR LESSEES.

    ``Leases''.
            (18) Section 17 (30 U.S.C. 1016) is amended by 
        striking ``Sec. 17. Administration'' and inserting the 
        following:

``SEC. 17. ADMINISTRATION.

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

``SEC. 19. DATA FROM FEDERAL AGENCIES.

    ``Upon''.
            (20) Section 21 (30 U.S.C. 1020) is further amended 
        by striking ``Sec. 21.'', and by inserting immediately 
        before and above the remainder of that section the 
        following:

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

            (21) Section 22 (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''.
            (22) Section 23 (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''.
            (23) Section 24 (30 U.S.C. 1023) is amended by 
        striking ``Sec. 24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

    ``The''.
            (24) Section 25 (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''.
            (25) Section 26 is amended by striking ``Sec. 26. 
        The'' and inserting the following:

``SEC. 26. AMENDMENT.

    ``The''.
            (26) Section 27 (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''.
            (27) Section 28 (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''.
            (28) Section 29 (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 C--Hydroelectric

                     PART I--ALTERNATIVE CONDITIONS

SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) Federal Reservations.--Section 4(e) of the Federal 
Power Act (16 U.S.C. 797(e)) is amended by inserting after 
``adequate protection and utilization of such reservation.'' at 
the end of the first proviso the following: ``The license 
applicant shall be entitled to a determination on the record, 
after opportunity for an expedited agency trial-type hearing of 
any disputed issues of material fact, with respect to such 
conditions. Such hearing may be conducted in accordance with 
procedures established by agency regulation in consultation 
with the Federal Energy Regulatory Commission.''.
    (b) Fishways.--Section 18 of the Federal Power Act (16 
U.S.C. 811) is amended by inserting after ``and such fishways 
as may be prescribed by the Secretary of Commerce.'' the 
following: ``The license applicant shall be entitled to a 
determination on the record, after opportunity for an expedited 
agency trial-type hearing of any disputed issues of material 
fact, with respect to such fishways. Such hearing may be 
conducted in accordance with procedures established by agency 
regulation in consultation with the Federal Energy Regulatory 
Commission.''.
    (c) Alternative Conditions and Prescriptions.--Part I of 
the Federal Power Act (16 U.S.C. 791a et seq.) is amended by 
adding the following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

    ``(a) Alternative Conditions.--(1) Whenever any person 
applies for a license for any project works within any 
reservation of the United States, and the Secretary of the 
department under whose supervision such reservation falls 
(referred to in this subsection as `the Secretary') deems a 
condition to such license to be necessary under the first 
proviso of section 4(e), the license applicant may propose an 
alternative condition.
    ``(2) Notwithstanding the first proviso of section 4(e), 
the Secretary shall accept the proposed alternative condition 
referred to in paragraph (1), and the Commission shall include 
in the license such alternative condition, if the Secretary 
determines, based on substantial evidence provided by the 
license applicant or otherwise available to the Secretary, that 
such alternative condition--
            ``(A) provides for the adequate protection and 
        utilization of the reservation; and
            ``(B) will either--
                    ``(i) cost less to implement; or
                    ``(ii) result in improved operation of the 
                project works for electricity production,

        as compared to the condition initially deemed necessary 
        by the Secretary.
    ``(3) The Secretary shall submit into the public record of 
the Commission proceeding with any condition under section 4(e) 
or alternative condition it accepts under this section, a 
written statement explaining the basis for such condition, and 
reason for not accepting any alternative condition under this 
section. The written statement must demonstrate that the 
Secretary gave equal consideration to the effects of the 
condition adopted and alternatives not accepted on energy 
supply, distribution, cost, and use; flood control; navigation; 
water supply; and air quality (in addition to the preservation 
of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including 
information voluntarily provided in a timely manner by the 
applicant and others. The Secretary shall also submit, together 
with the aforementioned written statement, all studies, data, 
and other factual information available to the Secretary and 
relevant to the Secretary's decision.
    ``(4) Nothing in this section shall prohibit other 
interested parties from proposing alternative conditions.
    ``(5) If the Secretary does not accept an applicant's 
alternative condition under this section, and the Commission 
finds that the Secretary's condition would be inconsistent with 
the purposes of this part, or other applicable law, the 
Commission may refer the dispute to the Commission's Dispute 
Resolution Service. The Dispute Resolution Service shall 
consult with the Secretary and the Commission and issue a non-
binding advisory within 90 days. The Secretary may accept the 
Dispute Resolution Service advisory unless the Secretary finds 
that the recommendation will not provide for the adequate 
protection and utilization of the reservation. The Secretary 
shall submit the advisory and the Secretary's final written 
determination into the record of the Commission's proceeding.
    ``(b) Alternative Prescriptions.--(1) Whenever the 
Secretary of the Interior or the Secretary of Commerce 
prescribes a fishway under section 18, the license applicant or 
licensee may propose an alternative to such prescription to 
construct, maintain, or operate a fishway.
    ``(2) Notwithstanding section 18, the Secretary of the 
Interior or the Secretary of Commerce, as appropriate, shall 
accept and prescribe, and the Commission shall require, the 
proposed alternative referred to in paragraph (1), if the 
Secretary of the appropriate department determines, based on 
substantial evidence provided by the licensee or otherwise 
available to the Secretary, that such alternative--
            ``(A) will be no less protective than the fishway 
        initially prescribed by the Secretary; and
            ``(B) will either--
                    ``(i) cost less to implement; or
                    ``(ii) result in improved operation of the 
                project works for electricity production,
        as compared to the fishway initially deemed necessary 
        by the Secretary.
    ``(3) The Secretary concerned shall submit into the public 
record of the Commission proceeding with any prescription under 
section 18 or alternative prescription it accepts under this 
section, a written statement explaining the basis for such 
prescription, and reason for not accepting any alternative 
prescription under this section. The written statement must 
demonstrate that the Secretary gave equal consideration to the 
effects of the condition adopted and alternatives not accepted 
on energy supply, distribution, cost, and use; flood control; 
navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based 
on such information as may be available to the Secretary, 
including information voluntarily provided in a timely manner 
by the applicant and others. The Secretary shall also submit, 
together with the aforementioned written statement, all 
studies, data, and other factual information available to the 
Secretary and relevant to the Secretary's decision.
    ``(4) Nothing in this section shall prohibit other 
interested parties from proposing alternative prescriptions.
    ``(5) If the Secretary concerned does not accept an 
applicant's alternative prescription under this section, and 
the Commission finds that the Secretary's prescription would be 
inconsistent with the purposes of this part, or other 
applicable law, the Commission may refer the dispute to the 
Commission's Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commission and 
issue a non-binding advisory within 90 days. The Secretary may 
accept the Dispute Resolution Service advisory unless the 
Secretary finds that the recommendation will be less protective 
than the fishway initially prescribed by the Secretary. The 
Secretary shall submit the advisory and the Secretary's final 
written determination into the record of the Commission's 
proceeding.''.

                     PART II--ADDITIONAL HYDROPOWER

SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) Incentive Payments.--For electric energy generated and 
sold by a qualified hydroelectric facility during the incentive 
period, the Secretary of Energy (referred to in this section as 
the ``Secretary'') shall make, subject to the availability of 
appropriations, incentive payments to the owner or operator of 
such facility. The amount of such payment made to any such 
owner or operator shall be as determined under subsection (e) 
of this section. Payments under this section may only be made 
upon receipt by the Secretary of an incentive payment 
application which establishes that the applicant is eligible to 
receive such payment and which satisfies such other 
requirements as the Secretary deems necessary. Such application 
shall be in such form, and shall be submitted at such time, as 
the Secretary shall establish.
    (b) Definitions.--For purposes of this section:
            (1) Qualified hydroelectric facility.--The term 
        ``qualified hydroelectric facility'' means a turbine or 
        other generating device owned or solely operated by a 
        non-Federal entity which generates hydroelectric energy 
        for sale and which is added to an existing dam or 
        conduit.
            (2) Existing dam or conduit.--The term ``existing 
        dam or conduit'' means any dam or conduit the 
        construction of which was completed before the date of 
        the enactment of this section and which does not 
        require any construction or enlargement of impoundment 
        or diversion structures (other than repair or 
        reconstruction) in connection with the installation of 
        a turbine or other generating device.
            (3) Conduit.--The term ``conduit'' has the same 
        meaning as when used in section 30(a)(2) of the Federal 
        Power Act (16 U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without regard 
to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a dam 
owned by a governmental or nongovernmental entity, and without 
regard to whether the facility begins operation on or after the 
date of the enactment of this section.
    (c) Eligibility Window.--Payments may be made under this 
section only for electric energy generated from a qualified 
hydroelectric facility which begins operation during the period 
of 10 fiscal years beginning with the first full fiscal year 
occurring after the date of enactment of this subtitle.
    (d) Incentive Period.--A qualified hydroelectric facility 
may receive payments under this section for a period of 10 
fiscal years (referred to in this section as the ``incentive 
period''). Such period shall begin with the fiscal year in 
which electric energy generated from the facility is first 
eligible for such payments.
    (e) Amount of Payment.--
            (1) In general.--Payments made by the Secretary 
        under this section to the owner or operator of a 
        qualified hydroelectric facility shall be based on the 
        number of kilowatt hours of hydroelectric energy 
        generated by the facility during the incentive period. 
        For any such facility, the amount of such payment shall 
        be 1.8 cents per kilowatt hour (adjusted as provided in 
        paragraph (2)), subject to the availability of 
        appropriations under subsection (g), except that no 
        facility may receive more than $750,000 in 1 calendar 
        year.
            (2) Adjustments.--The amount of the payment made to 
        any person under this section as provided in paragraph 
        (1) shall be adjusted for inflation for each fiscal 
        year beginning after calendar year 2003 in the same 
        manner as provided in the provisions of section 
        29(d)(2)(B) of the Internal Revenue Code of 1986, 
        except that in applying such provisions the calendar 
        year 2003 shall be substituted for calendar year 1979.
    (f) Sunset.--No payment may be made under this section to 
any qualified hydroelectric facility after the expiration of 
the period of 20 fiscal years beginning with the first full 
fiscal year occurring after the date of enactment of this 
subtitle, and no payment may be made under this section to any 
such facility after a payment has been made with respect to 
such facility for a period of 10 fiscal years.
    (g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out the purposes 
of this section $10,000,000 for each of the fiscal years 2004 
through 2013.

SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) Incentive Payments.--The Secretary of Energy shall make 
incentive payments to the owners or operators of hydroelectric 
facilities at existing dams to be used to make capital 
improvements in the facilities that are directly related to 
improving the efficiency of such facilities by at least 3 
percent.
    (b) Limitations.--Incentive payments under this section 
shall not exceed 10 percent of the costs of the capital 
improvement concerned and not more than 1 payment may be made 
with respect to improvements at a single facility. No payment 
in excess of $750,000 may be made with respect to improvements 
at a single facility.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section not more than 
$10,000,000 for each of the fiscal years 2004 through 2013.

SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS.

    Section 408(a)(6) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking 
``April 20, 1977'' and inserting ``March 4, 2003''.

SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
                    FACILITIES.

    (a) In General.--The Secretary of the Interior and the 
Secretary of Energy, in consultation with the Secretary of the 
Army, shall jointly conduct a study of the potential for 
increasing electric power production capability at federally 
owned or operated water regulation, storage, and conveyance 
facilities.
    (b) Content.--The study under this section shall include 
identification and description in detail of each facility that 
is capable, with or without modification, of producing 
additional hydroelectric power, including estimation of the 
existing potential for the facility to generate hydroelectric 
power.
    (c) Report.--The Secretaries shall submit to the Committees 
on Energy and Commerce, Resources, and Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate a 
report on the findings, conclusions, and recommendations of the 
study under this section by not later than 18 months after the 
date of the enactment of this Act. The report shall include 
each of the following:
            (1) The identifications, descriptions, and 
        estimations referred to in subsection (b).
            (2) A description of activities currently conducted 
        or considered, or that could be considered, to produce 
        additional hydroelectric power from each identified 
        facility.
            (3) A summary of prior actions taken by the 
        Secretaries to produce additional hydroelectric power 
        from each identified facility.
            (4) The costs to install, upgrade, or modify 
        equipment or take other actions to produce additional 
        hydroelectric power from each identified facility and 
        the level of Federal power customer involvement in the 
        determination of such costs.
            (5) The benefits that would be achieved by such 
        installation, upgrade, modification, or other action, 
        including quantified estimates of any additional energy 
        or capacity from each facility identified under 
        subsection (b).
            (6) A description of actions that are planned, 
        underway, or might reasonably be considered to increase 
        hydroelectric power production by replacing turbine 
        runners, by performing generator upgrades or rewinds, 
        or construction of pumped storage facilities.
            (7) The impact of increased hydroelectric power 
        production on irrigation, fish, wildlife, Indian 
        tribes, river health, water quality, navigation, 
        recreation, fishing, and flood control.
            (8) Any additional recommendations to increase 
        hydroelectric power production from, and reduce costs 
        and improve efficiency at, federally owned or operated 
        water regulation, storage, and conveyance facilities.

SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

    (a) In General.--The Secretary of the Interior shall--
            (1) review electric power consumption by Bureau of 
        Reclamation facilities for water pumping purposes; and
            (2) make such adjustments in such pumping as 
        possible to minimize the amount of electric power 
        consumed for such pumping during periods of peak 
        electric power consumption, including by performing as 
        much of such pumping as possible during off-peak hours 
        at night.
    (b) Consent of Affected Irrigation Customers Required.--The 
Secretary may not under this section make any adjustment in 
pumping at a facility without the consent of each person that 
has contracted with the United States for delivery of water 
from the facility for use for irrigation and that would be 
affected by such adjustment.
    (c) Existing Obligations Not Affected.--This section shall 
not be construed to affect any existing obligation of the 
Secretary to provide electric power, water, or other benefits 
from Bureau of Reclamation facilities, including recreational 
releases.

SEC. 246. CORPS OF ENGINEERS HYDROPOWER OPERATION AND MAINTENANCE 
                    FUNDING.

    (a) In General.--Notwithstanding the last sentence of 
section 5 of the Act of December 22, 1944 (commonly known as 
the ``Flood Control Act of 1944'') (58 Stat. 890, chapter 665; 
16 U.S.C. 825s), the 11th paragraph under the heading ``office 
of the secretary'' in title I of the Act of October 12, 1949 
(63 Stat. 767, chapter 680; 16 U.S.C. 825s-1), the matter under 
the heading ``continuing fund, southeastern power 
administration'' in title I of the Act of August 31, 1951 (65 
Stat. 249, chapter 375; 16 U.S.C. 825s-2), section 3302 of 
title 31, United States Code, or any other law, and without 
further appropriation or fiscal year limitation, for fiscal 
year 2004, the Administrator of the Southeastern Power 
Administration, the Administrator of the Southwestern Power 
Administration, and the Administrator of the Western Area Power 
Administration may credit to the Secretary of the Army 
(referred to in this section as the ``Secretary''), receipts, 
in an amount determined under subsection (c), from the sale of 
power and related services.
    (b) Use of Funds.--
            (1) In general.--The Secretary--
                    (A) shall, except as provided in paragraph 
                (2), use the amounts credited under subsection 
                (a) to fund only the Corps of Engineers annual 
                operation and maintenance activities that are 
                allocated exclusively to the power function and 
                assigned to the respective power marketing 
                administration and respective project system as 
                applicable for repayment; and
                    (B) shall not use the amounts for any costs 
                allocated to non-power functions of Corps of 
                Engineer operations.
            (2) Exception.--The Secretary may use amounts 
        credited by the Southwestern Power Administration under 
        subsection (a) for capital and nonrecurring costs.
    (c) Amount.--The amount of the receipts credited under 
subsection (a) shall be equal to such amount as--
            (1) the Secretary of the Army requests; and
            (2) the appropriate Administrator, in consultation 
        with the power customers of the Administrator's power 
        marketing administration, determines to be appropriate 
        to apply to the costs referred to in subsection (b).
    (d) Applicable Law.--The amounts credited under subsection 
(a) are exempt from sequestration under the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901 et seq.).

SEC. 247. LIMITATION ON CERTAIN CHARGES ASSESSED TO THE FLINT CREEK 
                    PROJECT, MONTANA.

    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 Federal 
Energy Regulatory Commission (referred to in this section as 
the ``Commission''), any political subdivision of the State of 
Montana that holds a license for Commission Project No. 1473 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.

SEC. 248. REINSTATEMENT AND TRANSFER.

    (a) Reinstatement and Transfer of Federal License for 
Project Numbered 2696.--Notwithstanding section 8 of the 
Federal Power Act (16 U.S.C. 801) or any other provision of 
such Act, the Federal Energy Regulatory Commission shall 
reinstate the license for Project No. 2696 and transfer the 
license, without delay or the institution of any proceedings, 
to the Town of Stuyvesant, New York, holder of Federal Energy 
Regulatory Commission Preliminary Permit No. 11787, within 30 
days after the date of enactment of this Act.
    (b) Hydroelectric Incentives.--Project No. 2696 shall be 
entitled to the full benefit of any Federal legislation that 
promotes hydroelectric development that is enacted within 2 
years either before or after the date of enactment of this Act.
    (c) Project Development and Financing.--The Federal Energy 
Regulatory Commission shall permit the Town of Stuyvesant to 
add as a colicensee any private or public entity or entities to 
the reinstated license at any time, notwithstanding the 
issuance of a preliminary permit to the Town of Stuyvesant and 
any consideration of municipal preference. The town shall be 
entitled, to the extent that funds are available or shall be 
made available, to receive loans under sections 402 and 403 of 
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2702 and 2703), or similar programs, for the reimbursement of 
feasibility studies or development costs, or both, incurred 
since January 1, 2001, through and including December 31, 2006. 
All power produced by the project shall be deemed incremental 
hydropower for purpose of qualifying for any energy credit or 
similar benefits.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

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

    (a) Amendment to Title I of the Energy Policy and 
Conservation Act.--Title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6211 et seq.) is amended--
            (1) by striking section 166 (42 U.S.C. 6246) and 
        inserting the following:

                   ``AUTHORIZATION OF APPROPRIATIONS

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

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

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

              ``Part D--Northeast Home Heating Oil Reserve

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

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

``Sec. 273. Summer fill and fuel budgeting programs.'';
    and
            (3) by striking the items relating to part D of 
        title II.
    (d) Amendment to the Energy Policy and Conservation Act.--
Section 183(b)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6250(b)(1)) is amended by striking all after 
``increases'' through to ``mid-October through March'' and 
inserting ``by more than 60 percent over its 5-year rolling 
average for the months of mid-October through March (considered 
as a heating season average)''.
    (e) Fill Strategic Petroleum Reserve to Capacity.--The 
Secretary of Energy shall, as expeditiously as practicable, 
acquire petroleum in amounts sufficient to fill the Strategic 
Petroleum Reserve to the 1,000,000,000 barrel capacity 
authorized under section 154(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6234(a)), consistent with the 
provisions of sections 159 and 160 of such Act (42 U.S.C. 6239, 
6240).

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

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

                   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 
section 36 of the Mineral Leasing Act (30 U.S.C. 192), section 
27 of the Outer Continental Shelf Lands Act (43 U.S.C. 1353), 
or 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 such 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 the lessee's 
        royalty obligation 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) In general.--Royalty production shall 
                be placed in marketable condition by the lessee 
                at no cost to the United States.
                    (B) 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.
            (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 (in this paragraph 
        referred to 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 the sale of oil 
                taken in-kind, without fiscal year limitation, 
                to pay transportation costs, salaries, and 
                other administrative costs directly related to 
                filling the Strategic Petroleum Reserve.
    (c) Reimbursement of Cost.--If the 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 theSecretary 
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, 2005, 
        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 2004 through 2013 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 methodology or 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, but not limited to, 
                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 
        United States Treasury.
            (2) Accounting for deductions.--When 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, and may delegate management of any portion of 
        the Federal royalty in-kind program to the State except 
        as otherwise prohibited by Federal law; and
            (2) 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 those 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 such 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 such 
        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 of Energy 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 transmit 
        a report to Congress, assessing the effectiveness of 
        granting preferences specified in paragraph (1) and 
        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 million 
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 thresholds or standards, the Secretary 
shall reduce the royalty rate on--
            (1) oil production from marginal properties as 
        prescribed in subsection (c) when the spot price of 
        West Texas Intermediate crude oil at Cushing, Oklahoma, 
        is, on average, less than $15 per barrel for 90 
        consecutive trading days; and
            (2) gas production from marginal properties as 
        prescribed in subsection (c) when the spot price of 
        natural gas delivered at Henry Hub, Louisiana, is, on 
        average, less than $2.00 per million British thermal 
        units 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 (d)(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 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 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) Mandatory regulations.--Not later than 18 
        months after the date of enactment of this Act, the 
        Secretary shall by regulation--
                    (A) prescribe standards and requirements 
                for, and the extent of royalty relief for, 
                marginal properties for oil and gas leases on 
                the outer Continental Shelf; and
                    (B) define what constitutes a marginal 
                property on the outer Continental Shelf for 
                purposes of this section.
            (3) Considerations.--In promulgating 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.
    (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) Royalty Incentive Regulations.--The Secretary shall 
publish a final regulation to complete the rulemaking begun by 
the Notice of Proposed Rulemaking entitled ``Relief or 
Reduction in Royalty Rates--Deep Gas Provisions'', published in 
the Federal Register on March 26, 2003 (Federal Register, 
volume 68, number 58, 14868-14886).
    (b) Royalty Incentive Regulations for Ultra Deep Gas 
Wells.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, 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 the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall 
        issue regulations, in accordance with the regulations 
        published pursuant to subsection (a), 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 before January 1, 2001, in shallow waters 
        less than 200 meters deep located in the Gulf of Mexico 
        wholly west of 87 degrees, 30 minutes West longitude. 
        Regulations issued under this subsection shall be 
        retroactive to the date that the Notice of Proposed 
        Rulemaking is published in the Federal Register.
            (2) Definition of ultra deep well.--In this 
        subsection, 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.

SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--For all tracts 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 
within 5 years after the date of enactment of this Act shall 
use the bidding system authorized in section 8(a)(1)(H) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)), 
except that the suspension of royalties shall be set at a 
volume of not less than--
            (1) 5,000,000 barrels of oil equivalent for each 
        lease in water depths of 400 to 800 meters;
            (2) 9,000,000 barrels of oil equivalent for each 
        lease in water depths of 800 to 1,600 meters; and
            (3) 12,000,000 barrels of oil equivalent for each 
        lease in water depths greater than 1,600 meters.
    (b) Limitation.--The Secretary may place limitations on the 
suspension of royalty relief granted 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) of this section) 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.--Notwithstanding any other provision of 
law and pursuant to regulations issued by the Secretary, the 
Secretary shall conduct an expeditious program of competitive 
leasing of oil and gas in the National Petroleum Reserve in 
Alaska (referred to in this section as the `Reserve').
    ``(b) Mitigation of Adverse Effects.--Activities'';
            (2) by striking ``Alaska (the Reserve); (2) the'' 
        and inserting ``Alaska.
    ``(c) Land Use Planning; BLM Wilderness Study.--The'';
            (3) by striking ``Reserve; (3) the'' and inserting 
        ``Reserve.
    ``(d) First Lease Sale.--The'';
            (4) by striking ``4332); (4) the'' and inserting 
        ``4321 et seq.).
    ``(e) Withdrawals.--The'';
            (5) by striking ``herein; (5) bidding'' and 
        inserting ``under this section.
    ``(f) Bidding Systems.--Bidding'';
            (6) by striking ``629); (6) lease'' and inserting 
        ``629).
    ``(g) Geological Structures.--Lease'';
            (7) by striking ``structures; (7) the'' and 
        inserting ``structures.
    ``(h) Size of Lease Tracts.--The'';
            (8) by striking ``Secretary; (8)'' and all that 
        follows through ``Drilling, production,'' and inserting 
        ``Secretary.
    ``(i) Terms.--
            ``(1) In general.--Each lease shall be--
                    ``(A) issued for an initial period of not 
                more than 10 years; and
                    ``(B) renewed for successive 10-year terms 
                if--
                            ``(i) oil or gas is produced from 
                        the lease in paying quantities;
                            ``(ii) oil or gas is capable of 
                        being produced in paying quantities; or
                            ``(iii) drilling or reworking 
                        operations, as approved by the 
                        Secretary, are conducted on the leased 
                        land.
            ``(2) Renewal of nonproducing leases.--The 
        Secretary shall renew for an additional 10-year term a 
        lease that does not meet the requirements of paragraph 
        (1)(B) if the lessee submits to the Secretary an 
        application for renewal not later than 60 days before 
        the expiration of the primary lease and--
                    ``(A) the lessee certifies, and the 
                Secretary agrees, that hydrocarbon resources 
                were discovered on 1 or more wells drilled on 
                the leased land in such quantities that a 
                prudent operator would hold the lease for 
                potential future development;
                    ``(B) the lessee--
                            ``(i) pays the Secretary a renewal 
                        fee of $100 per acre of leased land; 
                        and
                            ``(ii) provides evidence, and the 
                        Secretary agrees that, the lessee has 
                        diligently pursued exploration that 
                        warrants continuation with the intent 
                        of continued exploration or future 
                        development of the leased land; or
                    ``(C) all or part of the lease--
                            ``(i) is part of a unit agreement 
                        covering a lease described in 
                        subparagraph (A) or (B); and
                            ``(ii) has not been previously 
                        contracted out of the unit.
            ``(3) Applicability.--This subsection applies to a 
        lease that--
                    ``(A) is entered into before, on, or after 
                the date of enactment of the Energy Policy Act 
                of 2003; and
                    ``(B) is effective on or after the date of 
                enactment of that Act.
    ``(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.
            ``(2) Participation by state of alaska.--The 
        Secretary shall ensure that the State of Alaska is 
        provided the opportunity for active participation 
        concerning creation and management of units formed or 
        expanded under this subsection that include acreage in 
        which the State of Alaska has an interest in the 
        mineral estate.
            ``(3) Participation by regional corporations.--The 
        Secretary shall ensure that any Regional Corporation 
        (as defined in section 3 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602)) is provided the 
        opportunity for active participation concerning 
        creation and management of units that include acreage 
        in which the Regional Corporation has an interest in 
        the mineral estate.
            ``(4) Production allocation methodology.--The 
        Secretary may use a production allocation methodology 
        for each participating area within a unit created for 
        land in the Reserve, State of Alaska land, or Regional 
        Corporation land shall, when appropriate, be based on 
        the characteristics of each specific oil or gas pool, 
        field, reservoir, or like area to take into account 
        reservoir heterogeneity and a real variation in 
        reservoir producibility across diverse leasehold 
        interests.
            ``(5) Benefit of operations.--Drilling, 
        production,'';
            (9) by striking ``When separate'' and inserting the 
        following:
            ``(6) Pooling.--If separate'';
            (10) by inserting ``(in consultation with the 
        owners of the other land)'' after ``determined by the 
        Secretary of the Interior'';
            (11) 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), if (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 lands 
                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.)) the 
                Secretary determines that the waiver, 
                suspension, or reduction is in the public 
                interest.
                    ``(B) Applicability.--This paragraph 
                applies to a lease that--
                            ``(i) is entered into before, on, 
                        or after the date of enactment of the 
                        Energy Policy Act of 2003; and
                            ``(ii) is effective on or after the 
                        date of enactment of that Act.'';
            (12) by striking ``The Secretary is authorized to'' 
        and inserting the following:
            ``(2) Suspension of operations and production.--The 
        Secretary may'';
            (13) by striking ``In the event'' and inserting the 
        following:
            ``(3) Suspension of payments.--If'';
            (14) by striking ``thereto; and (11) all'' and 
        inserting ``to the lease.
    ``(l) Receipts.--All'';
            (15) by redesignating clauses (A), (B), and (C) as 
        clauses (1), (2), and (3), respectively;
            (16) by striking ``Any agency'' and inserting the 
        following:
    ``(m) Explorations.--Any agency'';
            (17) by striking ``Any action'' and inserting the 
        following:
    ``(n) Environmental Impact Statements.--
            ``(1) Judicial review.--Any action'';
            (18) by striking ``The detailed'' and inserting the 
        following:
            ``(2) Initial lease sales.--The detailed'';
            (19) by striking ``of the Naval Petroleum Reserves 
        Production Act of 1976 (90 Stat. 304; 42 U.S.C. 
        6504)''; and
            (20) by adding at the end the following:
    ``(o) Waiver of Administration for Conveyed Lands.--
Notwithstanding section 14(g) of the Alaska Native Claims 
Settlement Act (43 U.S.C. 1613(g)) or any other provision of 
law--
            ``(1) the Secretary of the Interior shall waive 
        administration of any oil and gas lease insofar as such 
        lease covers any land in the National Petroleum Reserve 
        in Alaska in which the subsurface estate is conveyed to 
        the Arctic Slope Regional Corporation; and
            ``(2) if any such conveyance of such subsurface 
        estate does not cover all the land embraced within any 
        such oil and gas lease--
                    ``(A) the person who owns the subsurface 
                estate in any particular portion of the land 
                covered by such lease shall be entitled to all 
                of the revenues reserved under such lease as to 
                such portion, including, without limitation, 
                all the royalty payable with respect to oil or 
                gas produced from or allocated to such 
                particular portion of the land covered by such 
                lease; and
                    ``(B) the Secretary of the Interior shall 
                segregate such lease into 2 leases, 1 of which 
                shall cover only the subsurface estate conveyed 
                to the Arctic Slope Regional Corporation, and 
                operations, production, or other circumstances 
                (other than payment of rentals or royalties) 
                that satisfy obligations of the lessee under, 
                or maintain, either of the segregated leases 
                shall likewise satisfy obligations of the 
                lessee under, or maintain, the other segregated 
                lease to the same extent as if such segregated 
                leases remained a part of the original 
                unsegregated lease.''.

SEC. 318. 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) Federal Reimbursement for Orphaned Well Reclamation 
Pilot Program.--
            (1) Reimbursement for remediating, reclaiming, and 
        closing wells on land subject to a new lease.--The 
        Secretary shall carry out a pilot program under which, 
        in issuing a new oil and gas lease on federally owned 
        land on which 1 or more orphaned wells are located, the 
        Secretary--
                    (A) may require, but not as a condition of 
                the lease, that the lessee remediate, reclaim, 
                and close in accordance with standards 
                established by the Secretary, all orphaned 
                wells on the land leased; and
                    (B) shall develop a program to reimburse a 
                lessee, through a royalty credit against the 
                Federal share of royalties owed or other means, 
                for the reasonable actual costs of remediating, 
                reclaiming, and closing the orphaned well 
                pursuant to that requirement.
            (2) Reimbursement for reclaiming orphaned wells on 
        other land.--In carrying out this subsection, the 
        Secretary--
                    (A) may authorize any lessee under an oil 
                and gas lease on federally owned land to 
                reclaim in accordance with the Secretary's 
                standards--
                            (i) an orphaned well on unleased 
                        federally owned land; or
                            (ii) an orphaned well located on an 
                        existing lease on federally owned land 
                        for the reclamation of which the lessee 
                        is not legally responsible; and
                    (B) shall develop a program to provide 
                reimbursement of 115 percent of the reasonable 
                actual costs of remediating, reclaiming, and 
                closing the orphaned well, through credits 
                against the Federal share of royalties or other 
                means.
            (3) Effect of remediation, reclamation, or closure 
        of well pursuant to an approved remediation plan.--
                    (A) Definition of remediating party.--In 
                this paragraph the term ``remediating party'' 
                means a person who remediates, reclaims, or 
                closes an abandoned, orphaned, or idled well 
                pursuant to this subsection.
                    (B) General rule.--A remediating party who 
                remediates, reclaims, or closes an abandoned, 
                orphaned, or idled well in accordance with a 
                detailed written remediation plan approved by 
                the Secretary under this subsection, shall be 
                immune from civil liability under Federal 
                environmental laws, for--
                            (i) pre-existing environmental 
                        conditions at or associated with the 
                        well, unless the remediating party owns 
                        or operates, in the past owned or 
                        operated, or is related to a person 
                        that owns or operates or in the past 
                        owned or operated, the well or the land 
                        on which the well is located; or
                            (ii) any remaining releases of 
                        pollutants from the well during or 
                        after completion of the remediation, 
                        reclamation, or closure of the well, 
                        unless the remediating party causes 
                        increased pollution as a result of 
                        activities that are not in accordance 
                        with the approved remediation plan.
                    (C) Limitations.--Nothing in this section 
                shall limit in any way the liability of a 
                remediating party for injury, damage, or 
                pollution resulting from the remediating 
                party's acts or omissions that are not in 
                accordance with the approved remediation plan, 
                are reckless or willful, constitute gross 
                negligence or wanton misconduct, or are 
                unlawful.
            (4) Regulations.--The Secretary may issue such 
        regulations as are appropriate to carry out this 
        subsection.
    (h) 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 2005 through 2009.
            (2) Use.--Of the amounts authorized under paragraph 
        (1), $5,000,000 are authorized for each fiscal year for 
        activities under subsection (f).

SEC. 319. 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)''; and
            (2) 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 issued for tar sand 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.
    ``(D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a permit 
authorizing prospecting for tar sand must exercise due 
diligence, to promote any resource covered by a combined 
hydrocarbon lease.''.
    (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 ``Secretary''.
    (c) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary shall issue final 
regulations to implement this section.

SEC. 320. LIQUIFIED NATURAL GAS.

    Section 3 of the Natural Gas Act (15 U.S.C. 717b) is 
amended by adding at the end the following:
    ``(d) Limitation on Commission Authority.--If an applicant 
under this section proposes to construct or expand a liquified 
natural gas terminal either onshore or in State waters for the 
purpose of importing liquified natural gas into the United 
States, the Commission shall not deny or condition the 
application solely on the basis that the applicant proposes to 
utilize the terminal exclusively or partially for gas that the 
applicant or any affiliate thereof will supply thereto. In all 
other respects, subsection (a) shall remain applicable to any 
such proposal.''.

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.), or 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, 
                production, transportation, or storage of oil, 
                natural gas, or other minerals;
                    ``(B) produce or support production, 
                transportation, or transmission of energy from 
                sources other than oil and gas; or
                    ``(C) use, for energy-related or marine-
                related purposes, facilities currently or 
                previously used for activities authorized under 
                this Act.
            ``(2) Payments.--The Secretary shall establish 
        reasonable forms of payments for any easement or right-
        of-way granted under this subsection. Such payments 
        shall not be assessed on the basis of throughput or 
        production. The Secretary may establish fees, rentals, 
        bonus, or other payments by rule or by agreement with 
        the party to which the lease, easement, or right-of-way 
        is granted.
            ``(3) Consultation.--Before exercising authority 
        under this subsection, the Secretary shall consult with 
        the Secretary of Defense and other appropriate agencies 
        concerning issues related to national security and 
        navigational obstruction.
            ``(4) Competitive or noncompetitive basis.--
                    ``(A) In general.--The Secretary may issue 
                a lease, easement, or right-of-way for energy 
                and related purposes as described in paragraph 
                (1) on a competitive or noncompetitive basis.
                    ``(B) Considerations.--In determining 
                whether a lease, easement, or right-of-way 
                shall be granted competitively or 
                noncompetitively, the Secretary shall consider 
                such factors as--
                            ``(i) prevention of waste and 
                        conservation of natural resources;
                            ``(ii) the economic viability of an 
                        energy project;
                            ``(iii) protection of the 
                        environment;
                            ``(iv) the national interest and 
                        national security;
                            ``(v) human safety;
                            ``(vi) protection of correlative 
                        rights; and
                            ``(vii) potential return for the 
                        lease, easement, or right-of-way.
            ``(5) Regulations.--Not later than 270 days after 
        the date of enactment of the Energy Policy Act of 2003, 
        the Secretary, in consultation with the Secretary of 
        the Department in which the Coast Guard is operating 
        and other relevant agencies of the Federal Government 
        and affected States, shall issue any necessary 
        regulations to ensure safety, protection of the 
        environment, prevention of waste, and conservation of 
        the natural resources of the outer Continental Shelf, 
        protection of national security interests, and 
        protection of correlative rights in the outer 
        Continental Shelf.
            ``(6) Security.--The Secretary shall require the 
        holder of a lease, easement, or right-of-way granted 
        under this subsection to furnish a surety bond or other 
        form of security, as prescribed by the Secretary, and 
        to comply with such other requirements as the Secretary 
        considers necessary to protect the interests of the 
        United States.
            ``(7) 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.
            ``(8) Applicability.--This subsection does not 
        apply to any area on the outer Continental Shelf 
        designated as a National Marine Sanctuary.''.
    (b) 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.--''.
    (c) Savings Provision.--Nothing in the amendment made by 
subsection (a) requires, with respect to any project--
            (1) for which offshore test facilities have been 
        constructed before the date of enactment of this Act; 
        or
            (2) for which a request for proposals has been 
        issued by a public authority,
any resubmittal of documents previously submitted or any 
reauthorization of actions previously authorized.

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 2003''.
    (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 2004 through 2008.

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 of Energy shall assess the 
economic implication 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) 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 
        liquified 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 liquified 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 of Energy 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 of Energy shall prepare, 
in consultation with agencies of the State of Hawaii and other 
stakeholders, as appropriate, and submit to Congress, a report 
detailing 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. 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.--The Secretary shall publish an 
initial notice in the Federal Register not later than 30 days 
after the date of the filing of any appeal to the Secretary of 
a consistency determination under section 307.
    ``(b) Closure of Record.--
            ``(1) In general.--Not later than the end of the 
        120-day period beginning on the date of publication of 
        an initial notice under subsection (a), the Secretary 
        shall receive no more filings on the appeal and the 
        administrative record regarding the appeal shall be 
        closed.
            ``(2) Notice.--Upon the closure of the 
        administrative record, the Secretary shall immediately 
        publish a notice that the administrative record has 
        been closed.
    ``(c) Deadline for Decision.--The Secretary shall issue a 
decision in any appeal filed under section 307 not later than 
120 days after the closure of the administrative record.
    ``(d) Application.--This section applies to appeals 
initiated by the Secretary and appeals filed by an 
applicant.''.
    (b) Application.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendment made by subsection (a) shall apply 
        with respect to any appeal initiated or filed before, 
        on, or after the date of enactment of this Act.
            (2) Limitation.--Subsection (a) of section 319 of 
        the Coastal Zone Management Act of 1972 (as amended by 
        subsection (a)) shall not apply with respect to an 
        appeal initiated or filed before the date of enactment 
        of this Act.
    (c) Closure of Record for Appeal Filed Before Date of 
Enactment.--Notwithstanding section 319(b)(1) of the Coastal 
Zone Management Act of 1972 (as amended by this section), in 
the case of an appeal of a consistency determination under 
section 307 of that Act initiated or filed before the date of 
enactment of this Act, the Secretary of Commerce shall receive 
no more filings on the appeal and the administrative record 
regarding the appeal shall be closed not later than 120 days 
after the date of enactment of this Act.

SEC. 326. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
                    STUDIES.

    (a) In General.--The Mineral Leasing Act is amended by 
inserting after section 37 (30 U.S.C. 193) the following:

   ``REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES, DOCUMENTATION, AND 
                                STUDIES

    ``Sec. 38. (a) In General.--The Secretary of the Interior 
may reimburse a person that is a lessee, operator, operating 
rights owner, or applicant for any lease under this Act for 
reasonable amounts paid by the person for preparation for the 
Secretary by a contractor or other person selected by the 
Secretary of any project-level analysis, documentation, or 
related study required pursuant to the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the 
lease.
    ``(b) Conditions.--The Secretary may provide reimbursement 
under subsection (a) only if--
            ``(1) adequate funding to enable the Secretary to 
        timely prepare the analysis, documentation, or related 
        study is not appropriated;
            ``(2) the person paid the costs voluntarily;
            ``(3) the person maintains records of its costs in 
        accordance with regulations issued by the Secretary;
            ``(4) the reimbursement is in the form of a 
        reduction in the Federal share of the royalty required 
        to be paid for the lease for which the analysis, 
        documentation, or related study is conducted, and is 
        agreed to by the Secretary and the person reimbursed 
        prior to commencing the analysis, documentation, or 
        related study; and
            ``(5) the agreement required under paragraph (4) 
        contains provisions--
                    ``(A) reducing royalties owed on lease 
                production based on market prices;
                    ``(B) stipulating an automatic termination 
                of the royalty reduction upon recovery of 
                documented costs; and
                    ``(C) providing a process by which the 
                lessee may seek reimbursement for circumstances 
                in which production from the specified lease is 
                not possible.''.
    (b) Application.--The amendment made by this section shall 
apply with respect to an analysis, documentation, or a related 
study conducted on or after the date of enactment of this Act 
for any lease entered into before, on, or after the date of 
enactment of this Act.
    (c) Deadline for Regulations.--The Secretary shall issue 
regulations implementing the amendment made by this section by 
not later than 1 year after the date of enactment of this Act.

SEC. 327. HYDRAULIC FRACTURING.

    Paragraph (1) of section 1421(d) of the Safe Drinking Water 
Act (42 U.S.C. 300h(d)) is amended to read as follows:
            ``(1) Underground injection.--The term `underground 
        injection'--
                    ``(A) means the subsurface emplacement of 
                fluids by well injection; and
                    ``(B) excludes--
                            ``(i) the underground injection of 
                        natural gas for purposes of storage; 
                        and
                            ``(ii) the underground injection of 
                        fluids or propping agents pursuant to 
                        hydraulic fracturing operations related 
                        to oil or gas production activities.''.

SEC. 328. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

    Section 502 of the Federal Water Pollution Control Act (33 
U.S.C. 1362) is amended by adding at the end the following:
            ``(24) Oil and gas exploration and production.--The 
        term `oil and gas exploration, production, processing, 
        or treatment operations or transmission facilities' 
        means all field activities or operations associated 
        with exploration, production, processing, or treatment 
        operations, or transmission facilities, including 
        activities necessary to prepare a site for drilling and 
        for the movement and placement of drilling equipment, 
        whether or not such field activities or operations may 
        be considered to be construction activities.''.

SEC. 329. OUTER CONTINENTAL SHELF PROVISIONS.

    (a) Storage on the Outer Continental Shelf.--Section 
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1334(a)(5)) is amended by inserting ``from any source'' after 
``oil and gas''.
    (b) Deepwater Projects.--Section 6 of the Deepwater Port 
Act of 1974 (33 U.S.C. 1505) is amended by adding at the end 
the following:
    ``(d) Reliance on Activities of Other Agencies.--In 
fulfilling the requirements of section 5(f)--
            ``(1) to the extent that other Federal agencies 
        have prepared environmental impact statements, are 
        conducting studies, or are monitoring the affected 
        human, marine, or coastal environment, the Secretary 
        may use the information derived from those activities 
        in lieu of directly conducting such activities; and
            ``(2) the Secretary may use information obtained 
        from any State or local government or from any 
        person.''.
    (c) Natural Gas Defined.--Section 3(13) of the Deepwater 
Port Act of 1974 (33 U.S.C. 1502(13)) is amended to read as 
follows:
            ``(13) natural gas means--
                    ``(A) natural gas unmixed; or
                    ``(B) any mixture of natural or artificial 
                gas, including compressed or liquefied natural 
                gas, natural gas liquids, liquefied petroleum 
                gas, and condensate recovered from natural 
                gas;''.

SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION OR OFFSHORE MINERAL 
                    DEVELOPMENT PROJECTS.

    (a) Agency of Record, Pipeline Construction Projects.--Any 
Federal administrative agency proceeding that is an appeal or 
review under section 319 of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1465), as amended by this Act, related to 
Federal authority for an interstate natural gas pipeline 
construction project, including construction of natural gas 
storage and liquefied natural gas facilities, shall use as its 
exclusive record for all purposes the record compiled by the 
Federal Energy Regulatory Commission pursuant to the 
Commission's proceeding under sections 3 and 7 of the Natural 
Gas Act (15 U.S.C. 717b, 717f).
    (b) Sense of Congress.--It is the sense of Congress that 
all Federal and State agencies with jurisdiction over 
interstate natural gas pipeline construction activities should 
coordinate their proceedings within the timeframes established 
by the Federal Energy Regulatory Commission when the Commission 
is acting under sections 3 and 7 of the Natural Gas Act (15 
U.S.C. 717b, 717f) to determine whether a certificate of public 
convenience and necessity should be issued for a proposed 
interstate natural gas pipeline.
    (c) Agency of Record, Offshore Mineral Development 
Projects.--Any Federal administrative agency proceeding that is 
an appeal or review under section 319 of the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1465), as amended by this 
Act, related to Federal authority for the permitting, approval, 
or other authorization of energy projects, including projects 
to explore, develop, or produce mineral resources in or 
underlying the outer Continental Shelf shall use as its 
exclusive record for all purposes (except for the filing of 
pleadings) the record compiled by the relevant Federal 
permitting agency.

SEC. 331. BILATERAL INTERNATIONAL OIL SUPPLY AGREEMENTS.

    (a) In General.--Notwithstanding any other provision of 
law, the President may export oil to, or secure oil for, any 
country pursuant to a bilateral international oil supply 
agreement entered into by the United States with the country 
before June 25, 1979, or to any country pursuant to the 
International Emergency Oil Sharing Plan of the International 
Energy Agency.
    (b) Memorandum of Agreement.--The following agreements are 
deemed to have entered into force by operation of law and are 
deemed to have no termination date:
            (1) The agreement entitled ``Agreement amending and 
        extending the memorandum of agreement of June 22, 
        1979'', entered into force November 13, 1994 (TIAS 
        12580).
            (2) The agreement entitled ``Agreement amending the 
        contingency implementing arrangements of October 17, 
        1980'', entered into force June 27, 1995 (TIAS 12670).

SEC. 332. NATURAL GAS MARKET REFORM.

    (a) Clarification of Existing CFTC Authority.--
            (1) False reporting.--Section 9(a)(2) of the 
        Commodity Exchange Act (7 U.S.C. 13(a)(2)) is amended 
        by striking ``false or misleading or knowingly 
        inaccurate reports'' and inserting ``knowingly false or 
        knowingly misleading or knowingly inaccurate reports''.
            (2) Commission Administrative and Civil 
        Authority.--Section 9 of the Commodity Exchange Act (7 
        U.S.C. 13) is amended by redesignating subsection (f) 
        as subsection (e), and adding:
    ``(f) Commission Administrative and Civil Authority.--The 
Commission may bring administrative or civil actions as 
provided in this Act against any person for a violation of any 
provision of this section including, but not limited to, false 
reporting under subsection (a)(2).''.
            (3) Effect of amendments.--The amendments made by 
        paragraphs (1) and (2) restate, without substantive 
        change, existing burden of proof provisions and 
        existing Commission civil enforcement authority, 
        respectively. These clarifying changes do not alter any 
        existing burden of proof or grant any new statutory 
        authority. The provisions of this section, as restated 
        herein, continue to apply to any action pending on or 
        commenced after the date of enactment of this Act for 
        any act, omission, or violation occurring before, on, 
        or after, such date of enactment.
    (b) Fraud Authority.--Section 4b of the Commodity Exchange 
Act (7 U.S.C. 6b) is amended--
            (1) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
            (2) by striking subsection (a) and inserting the 
        following:
    ``(a) It shall be unlawful--
            ``(1) for any person, in or in connection with any 
        order to make, or the making of, any contract of sale 
        of any commodity for future delivery or in interstate 
        commerce, that is made, or to be made, on or subject to 
        the rules of a designated contract market, for or on 
        behalf of any other person; or
            ``(2) for any person, in or in connection with any 
        order to make, or the making of, any contract of sale 
        of any commodity for future delivery, or other 
        agreement, contract, or transaction subject to section 
        5a(g) (1) and (2) of this Act, that is made, or to be 
        made, for or on behalf of, or with, any other person, 
        other than on or subject to the rules of a designated 
        contract market--
                    ``(A) to cheat or defraud or attempt to 
                cheat or defraud such other person;
                    ``(B) willfully to make or cause to be made 
                to such other person any false report or 
                statement or willfully to enter or cause to be 
                entered for such other person any false record;
                    ``(C) willfully to deceive or attempt to 
                deceive such other person by any means 
                whatsoever in regard to any order or contract 
                or the disposition or execution of any order or 
                contract, or in regard to any act of agency 
                performed, with respect to any order or 
                contract for or, in the case of subsection 
                (a)(2), with such other person; or
                    ``(D)(i) to bucket an order if such order 
                is either represented by such person as an 
                order to be executed, or required to be 
                executed, on or subject to the rules of a 
                designated contract market; or
                    ``(ii) to fill an order by offset against 
                the order or orders of any other person, or 
                willfully and knowingly and without the prior 
                consent of such other person to become the 
                buyer in respect to any selling order of such 
                other person, or become the seller in respect 
                to any buying order of such other person, if 
                such order is either represented by such person 
                as an order to be executed, or required to be 
                executed, on or subject to the rules of a 
                designated contract market.
    ``(b) Subsection (a)(2) shall not obligate any person, in 
connection with a transaction in a contract of sale of a 
commodity for future delivery, or other agreement, contract or 
transaction subject to section 5a(g) (1) and (2) of this Act, 
with another person, to disclose to such other person nonpublic 
information that may be material to the market price of such 
commodity or transaction, except as necessary to make any 
statement made to such other person in connection with such 
transaction, not misleading in any material respect.''.
    (c) Jurisdiction of the CFTC.--The Natural Gas Act (15 
U.S.C. 717 et seq.) is amended by adding at the end:

``SEC. 26. JURISDICTION.

    ``This Act 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.). Any 
request for information by the Commission 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) Increased Penalties.--Section 21 of the Natural Gas Act 
(15 U.S.C. 717t) is amended--
            (1) in subsection (a)--
                    (A) by striking ``$5,000'' and inserting 
                ``$1,000,000''; and
                    (B) by striking ``two years'' and inserting 
                ``5 years''; and
            (2) in subsection (b), by striking ``$500'' and 
        inserting ``$50,000''.

SEC. 333. NATURAL GAS MARKET TRANSPARENCY.

    The Natural Gas Act (15 U.S.C 717 et seq.) is amended--
            (1) by redesignating section 24 as section 25; and
            (2) by inserting after section 23 the following:

``SEC. 24. NATURAL GAS MARKET TRANSPARENCY.

    ``(a) Authorization.--(1) Not later than 180 days after the 
date of enactment of the Energy Policy Act of 2003, the Federal 
Energy Regulatory Commission shall issue rules directing all 
entities subject to the Commission's jurisdiction as provided 
under this Act to timely report information about the 
availability and prices of natural gas sold at wholesale in 
interstate commerce to the Commission and price publishers.
    ``(2) The Commission shall evaluate the data for adequate 
price transparency and accuracy.
    ``(3) Rules issued under this subsection requiring the 
reporting of information to the Commission that may become 
publicly available shall be limited to aggregate data and 
transaction-specific data that are otherwise required by the 
Commission to be made public.
    ``(4) In exercising its authority under this section, the 
Commission shall not--
            ``(A) compete with, or displace from the market 
        place, any price publisher; or
            ``(B) regulate price publishers or impose any 
        requirements on the publication of information.
    ``(b) Timely Enforcement.--No person shall be subject to 
any penalty under this section with respect to a violation 
occurring more than 3 years before the date on which the 
Federal Energy Regulatory Commission seeks to assess a penalty.
    ``(c) Limitation on Commission Authority.--(1) The 
Commission shall not condition access to interstate pipeline 
transportation upon the reporting requirements authorized under 
this section.
    ``(2) Natural gas sales by a producer that are attributable 
to volumes of natural gas produced by such producer shall not 
be subject to the rules issued pursuant to this section.
    ``(3) The Commission shall not require natural gas 
producers, processors, or users who have a de minimis market 
presence to participate in the reporting requirements provided 
in this section.''.

                   Subtitle C--Access to Federal Land

SEC. 341. OFFICE OF FEDERAL ENERGY PROJECT COORDINATION.

    (a) Establishment.--The President shall establish the 
Office of Federal Energy Project Coordination (referred to in 
this section as the ``Office'') within the Executive Office of 
the President in the same manner and with the same mission as 
the White House Energy Projects Task Force established by 
Executive Order No. 13212 (42 U.S.C. 13201 note).
    (b) Staffing.--The Office shall be staffed by functional 
experts from relevant Federal agencies on a nonreimbursable 
basis to carry out the mission of the Office.
    (c) Report.--The Office shall transmit an annual report to 
Congress that describes the activities put in place to 
coordinate and expedite Federal decisions on energy projects. 
The report shall list accomplishments in improving the Federal 
decisionmaking process and shall include any additional 
recommendations or systemic changes needed to establish a more 
effective and efficient Federal permitting process.

SEC. 342. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.

    (a) Review of Onshore Oil and Gas Leasing Practices.--
            (1) In general.--The Secretary of the Interior, in 
        consultation with the Secretary of Agriculture with 
        respect to National Forest System lands under the 
        jurisdiction of the Department of Agriculture, shall 
        perform an internal review of current Federal onshore 
        oil and gas leasing and permitting practices.
            (2) Inclusions.--The review shall include the 
        process for--
                    (A) accepting or rejecting offers to lease;
                    (B) administrative appeals of decisions or 
                orders of officers or employees of the Bureau 
                of Land Management with respect to a Federal 
                oil or gas lease;
                    (C) considering surface use plans of 
                operation, including the timeframes in which 
                the plans are considered, and any 
                recommendations for improving and expediting 
                the process; and
                    (D) identifying stipulations to address 
                site-specific concerns and conditions, 
                including those stipulations relating to the 
                environment and resource use conflicts.
    (b) Report.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior and the 
Secretary of Agriculture shall transmit a report to Congress 
that describes--
            (1) actions taken under section 3 of Executive 
        Order No. 13212 (42 U.S.C. 13201 note); and
            (2) actions taken or any plans to improve the 
        Federal onshore oil and gas leasing program.

SEC. 343. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--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 (in this section referred to as the ``Secretary'') 
shall--
            (1) ensure expeditious compliance with section 
        102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C));
            (2) improve consultation and coordination with the 
        States and the public; and
            (3) improve the collection, storage, and retrieval 
        of information relating to the 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 
                lands otherwise available for leasing.
            (2) Considerations.--In developing the best 
        management practices under paragraph (1), the Secretary 
        shall consider any recommendations from the review 
        under section 342.
            (3) Regulations.--Not later than 180 days after the 
        development of 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 practices, including deadlines 
        for--
                    (A) approving or disapproving resource 
                management plans and related documents, lease 
                applications, and surface use plans; and
                    (B) related administrative appeals.
    (c) Improved Enforcement.--The Secretary shall improve 
inspection and enforcement of oil and gas activities, including 
enforcement of terms and conditions in permits to drill.
    (d) Authorization of Appropriations.--In addition to 
amounts authorized to be appropriated to carry out section 17 
of the Mineral Leasing Act (30 U.S.C. 226), there are 
authorized to be appropriated to the Secretary for each of 
fiscal years 2004 through 2007--
            (1) $40,000,000 to carry out subsections (a) and 
        (b); and
            (2) $20,000,000 to carry out subsection (c).

SEC. 344. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior and the 
Secretary of Agriculture shall enter into a memorandum of 
understanding regarding oil and gas leasing on--
            (1) public lands under the jurisdiction of the 
        Secretary of the Interior; and
            (2) National Forest System lands under the 
        jurisdiction of the Secretary of Agriculture.
    (b) Contents.--The memorandum of understanding shall 
include provisions that--
            (1) establish administrative procedures and lines 
        of authority that ensure timely processing of oil and 
        gas lease applications, surface use plans of operation, 
        and applications for permits to drill, including steps 
        for processing surface use plans and applications for 
        permits to drill consistent with the timelines 
        established by the amendment made by section 348;
            (2) eliminate duplication of effort by providing 
        for coordination of planning and environmental 
        compliance efforts; and
            (3) ensure that lease stipulations are--
                    (A) applied consistently;
                    (B) coordinated between agencies; and
                    (C) only as restrictive as necessary to 
                protect the resource for which the stipulations 
                are applied.
    (c) Data Retrieval System.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary of the 
        Interior and the Secretary of Agriculture shall 
        establish a joint data retrieval system that is capable 
        of--
                    (A) tracking applications and formal 
                requests made in accordance with procedures of 
                the Federal onshore oil and gas leasing 
                program; and
                    (B) providing information regarding the 
                status of the applications and requests within 
                the Department of the Interior and the 
                Department of Agriculture.
            (2) Resource mapping.--Not later than 2 years after 
        the date of enactment of this Act, the Secretary of the 
        Interior and the Secretary of Agriculture shall 
        establish a joint Geographic Information System mapping 
        system for use in--
                    (A) tracking surface resource values to aid 
                in resource management; and
                    (B) processing surface use plans of 
                operation and applications for permits to 
                drill.

SEC. 345. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL 
                    LAND.

    (a) Assessment.--Section 604 of the Energy Act of 2000 (42 
U.S.C. 6217) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``reserve''; and
                            (ii) by striking ``and'' after the 
                        semicolon; and
                    (B) by striking paragraph (2) and inserting 
                the following:
            ``(2) the extent and nature of any restrictions or 
        impediments to the development of the resources, 
        including--
                    ``(A) impediments to the timely granting of 
                leases;
                    ``(B) post-lease restrictions, impediments, 
                or delays on development for conditions of 
                approval, applications for permits to drill, or 
                processing of environmental permits; and
                    ``(C) permits or restrictions associated 
                with transporting the resources for entry into 
                commerce; and
            ``(3) the quantity of resources not produced or 
        introduced into commerce because of the 
        restrictions.'';
            (2) in subsection (b)--
                    (A) by striking ``reserve'' and inserting 
                ``resource''; and
                    (B) by striking ``publically'' and 
                inserting ``publicly''; and
            (3) by striking subsection (d) and inserting the 
        following:
    ``(d) Assessments.--Using the inventory, the Secretary of 
Energy shall make periodic assessments of economically 
recoverable resources accounting for a range of parameters such 
as current costs, commodity prices, technology, and 
regulations.''.
    (b) Methodology.--The Secretary of the Interior shall use 
the same assessment methodology across all geological 
provinces, areas, and regions in preparing and issuing national 
geological assessments to ensure accurate comparisons of 
geological resources.

SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS CONCERNING 
                    REGULATIONS THAT SIGNIFICANTLY AFFECT ENERGY 
                    SUPPLY, DISTRIBUTION, OR USE.

    (a) Requirement.--The head of each Federal agency shall 
require that before the Federal agency takes any action that 
could have a significant adverse effect on the supply of 
domestic energy resources from Federal public land, the Federal 
agency taking the action shall comply with Executive Order No. 
13211 (42 U.S.C. 13201 note).
    (b) Guidance.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy shall publish 
guidance for purposes of this section describing what 
constitutes a significant adverse effect on the supply of 
domestic energy resources under Executive Order No. 13211 (42 
U.S.C. 13201 note).
    (c) Memorandum of Understanding.--The Secretary of the 
Interior and the Secretary of Agriculture shall include in the 
memorandum of understanding under section 344 provisions for 
implementing subsection (a) of this section.

SEC. 347. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (in this 
section referred to as the ``Secretary'') shall establish a 
Federal Permit Streamlining Pilot Project (in this section 
referred to 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 with the 
        Secretary of Agriculture, the Administrator of the 
        Environmental Protection Agency, and the Chief of 
        Engineers of the Army Corps of Engineers for purposes 
        of this section.
            (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 assign to each of the field offices identified in 
        subsection (d), on a nonreimbursable basis, 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) Glenwood Springs, Colorado.
            (7) Vernal, Utah.
    (e) Reports.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall transmit 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) 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. 348. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.

    Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
amended by adding at the end the following:
    ``(p) Deadlines for Consideration of Applications for 
Permits.--
            ``(1) In general.--Not later than 10 days after the 
        date on which the Secretary receives an application for 
        any permit to drill, the Secretary shall--
                    ``(A) notify the applicant that the 
                application is complete; or
                    ``(B) notify the applicant that information 
                is missing and specify any information that is 
                required to be submitted for the application to 
                be complete.
            ``(2) Issuance or deferral.--Not later than 30 days 
        after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                    ``(A) issue the permit; or
                    ``(B)(i) defer decision on the permit; and
                    ``(ii) provide to the applicant a notice 
                that specifies any steps that the applicant 
                could take for the permit to be issued.
            ``(3) Requirements for deferred applications.--
                    ``(A) In general.--If the Secretary 
                provides notice under paragraph (2)(B)(ii), the 
                applicant shall have a period of 2 years from 
                the date of receipt of the notice in which to 
                complete all requirements specified by the 
                Secretary, including providing information 
                needed for compliance with the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.).
                    ``(B) Issuance of decision on permit.--If 
                the applicant completes the requirements within 
                the period specified in subparagraph (A), the 
                Secretary shall issue a decision on the permit 
                not later than 10 days after the date of 
                completion of the requirements described in 
                subparagraph (A).
                    ``(C) Denial of permit.--If the applicant 
                does not complete the requirements within the 
                period specified in subparagraph (A), the 
                Secretary shall deny the permit.
    ``(q) Report.--On a quarterly basis, each field office of 
the Bureau of Land Management and the Forest Service shall 
transmit to the Secretary of the Interior or the Secretary of 
Agriculture, respectively, a report that--
            ``(1) specifies the number of applications for 
        permits to drill received by the field office in the 
        period covered by the report; and
            ``(2) describes how each of the applications was 
        disposed of by the field office.''.

SEC. 349. CLARIFICATION OF FAIR MARKET RENTAL VALUE DETERMINATIONS FOR 
                    PUBLIC LAND AND FOREST SERVICE RIGHTS-OF-WAY.

    (a) Linear Rights-Of-Way Under Federal Land Policy and 
Management Act of 1976.--Section 504 of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1764) is amended by 
adding at the end the following:
    ``(k) Determination of Fair Market Value of Linear Rights-
Of-Way.--
            ``(1) In general.--Effective beginning on the date 
        of the issuance of the rules required by paragraph (2), 
        for purposes of subsection (g), the Secretary concerned 
        shall determine the fair market value for the use of 
        land encumbered by a linear right-of-way granted, 
        issued, or renewed under this title using the valuation 
        method described in paragraphs (2), (3), and (4).
            ``(2) Revisions.--Not later than 1 year after the 
        date of enactment of this subsection--
                    ``(A) the Secretary of the Interior shall 
                amend section 2803.1-2 of title 43, Code of 
                Federal Regulations, as in effect on the date 
                of enactment of this subsection, to revise the 
                per acre rental fee zone value schedule by 
                State, county, and type of linear right-of-way 
                use to reflect current values of land in each 
                zone; and
                    ``(B) the Secretary of Agriculture shall 
                make the same revision for linear rights-of-way 
                granted, issued, or renewed under this title on 
                National Forest System land.
            ``(3) Updates.--The Secretary concerned shall 
        annually update the schedule revised under paragraph 
        (2) by multiplying the current year's rental per acre 
        by the annual change, second quarter to second quarter 
        (June 30 to June 30) in the Gross National Product 
        Implicit Price Deflator Index published in the Survey 
        of Current Business of the Department of Commerce, 
        Bureau of Economic Analysis.
            ``(4) Review.--If the cumulative change in the 
        index referred to in paragraph (3) exceeds 30 percent, 
        or the change in the 3-year average of the 1-year 
        Treasury interest rate used to determine per acre 
        rental fee zone values exceeds plus or minus 50 
        percent, the Secretary concerned shall conduct a review 
        of the zones and rental per acre figures to determine 
        whether the value of Federal land has differed 
        sufficiently from the index referred to in paragraph 
        (3) to warrant a revision in the base zones and rental 
        per acre figures. If, as a result of the review, the 
        Secretary concerned determines that such a revision is 
        warranted, the Secretary concerned shall revise the 
        base zones and rental per acre figures accordingly. Any 
        revision of base zones and rental per acre figure shall 
        only affect lease rental rates at inception or 
        renewal.''.
    (b) Rights-Of-Way Under Mineral Leasing Act.--Section 28(l) 
of the Mineral Leasing Act (30 U.S.C. 185(l)) is amended by 
inserting before the period at the end the following: ``using 
the valuation method described in section 2803.1-2 of title 43, 
Code of Federal Regulations, as revised in accordance with 
section 504(k) of the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1764(k))''.

SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND CORRIDORS ON FEDERAL LAND.

    (a) Report to Congress.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary of 
        Agriculture and the Secretary of the Interior, in 
        consultation with the Secretary of Commerce, the 
        Secretary of Defense, the Secretary of Energy, and the 
        Federal Energy Regulatory Commission, shall submit to 
        Congress a joint report--
                    (A) that addresses--
                            (i) the location of existing 
                        rights-of-way and designated and de 
                        facto corridors for oil and gas 
                        pipelines and electric transmission and 
                        distribution facilities on Federal 
                        land; and
                            (ii) opportunities for additional 
                        oil and gas pipeline and electric 
                        transmission capacity within those 
                        rights-of-way and corridors; and
                    (B) that includes a plan for making 
                available, on request, to the appropriate 
                Federal, State, and local agencies, tribal 
                governments, and other persons involved in the 
                siting of oil and gas pipelines and electricity 
                transmission facilities Geographic Information 
                System-based information regarding the location 
                of the existing rights-of-way and corridors and 
                any planned rights-of-way and corridors.
            (2) Consultations and considerations.--In preparing 
        the report, the Secretary of the Interior and the 
        Secretary of Agriculture shall consult with--
                    (A) other agencies of Federal, State, 
                tribal, or local units of government, as 
                appropriate;
                    (B) persons involved in the siting of oil 
                and gas pipelines and electric transmission 
                facilities; and
                    (C) other interested members of the public.
            (3) Limitation.--The Secretary of the Interior and 
        the Secretary of Agriculture shall limit the 
        distribution of the report and Geographic Information 
        System-based information referred to in paragraph (1) 
        as necessary for national and infrastructure security 
        reasons, if either Secretary determines that the 
        information may be withheld from public disclosure 
        under a national security or other exception under 
        section 552(b) of title 5, United States Code.
    (b) Corridor Designations.--
            (1) 11 contiguous western states.--Not later than 2 
        years after the date of enactment of this Act, the 
        Secretary of Agriculture, the Secretary of Commerce, 
        the Secretary of Defense, the Secretary of Energy, and 
        the Secretary of the Interior, in consultation with the 
        Federal Energy Regulatory Commission and the affected 
        utility industries, shall jointly--
                    (A) designate, under title V of the Federal 
                Land Policy and Management Act of 1976 (43 
                U.S.C. 1761 et seq.) and other applicable 
                Federal laws, corridors for oil and gas 
                pipelines and electricity transmission and 
                facilities on Federal land in the eleven 
                contiguous Western States (as defined in 
                section 103 of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1702));
                    (B) perform any environmental reviews that 
                may be required to complete the designations of 
                corridors for the facilities on Federal land in 
                the eleven contiguous Western States; and
                    (C) incorporate the designated corridors 
                into--
                            (i) the relevant departmental and 
                        agency land use and resource management 
                        plans; or
                            (ii) equivalent plans.
            (2) Other states.--Not later than 4 years after the 
        date of enactment of this Act, the Secretary of 
        Agriculture, the Secretary of Commerce, the Secretary 
        of Defense, the Secretary of Energy, and the Secretary 
        of the Interior, in consultation with the Federal 
        Energy Regulatory Commission and the affected utility 
        industries, shall jointly--
                    (A) identify corridors for oil and gas 
                pipelines and electricity transmission and 
                distribution facilities on Federal land in the 
                States other than those described in paragraph 
                (1); and
                    (B) schedule prompt action to identify, 
                designate, and incorporate the corridors into 
                the land use plan.
            (3) Ongoing responsibilities.--After completing the 
        requirements under paragraphs (1) and (2), the 
        Secretary of Agriculture, the Secretary of Commerce, 
        the Secretary of Defense, the Secretary of Energy, and 
        the Secretary of the Interior, with respect to lands 
        under their respective jurisdictions, in consultation 
        with the Federal Energy Regulatory Commission and the 
        affected utility industries, shall establish procedures 
        that--
                    (A) ensure that additional corridors for 
                oil and gas pipelines and electricity 
                transmission and distribution facilities on 
                Federal land are promptly identified and 
                designated; and
                    (B) expedite applications to construct or 
                modify oil and gas pipelines and electricity 
                transmission and distribution facilities within 
                the corridors, taking into account prior 
                analyses and environmental reviews undertaken 
                during the designation of corridors.
    (c) Considerations.--In carrying out this section, the 
Secretaries shall take into account the need for upgraded and 
new electricity transmission and distribution facilities to--
            (1) improve reliability;
            (2) relieve congestion; and
            (3) enhance the capability of the national grid to 
        deliver electricity.
    (d) Definition of Corridor.--
            (1) In general.--In this section and title V of the 
        Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1761 et seq.), the term ``corridor'' means--
                    (A) a linear strip of land--
                            (i) with a width determined with 
                        consideration given to technological, 
                        environmental, and topographical 
                        factors; and
                            (ii) that contains, or may in the 
                        future contain, 1 or more utility, 
                        communication, or transportation 
                        facilities;
                    (B) a land use designation that is 
                established--
                            (i) by law;
                            (ii) by Secretarial Order;
                            (iii) through the land use planning 
                        process; or
                            (iv) by other management decision; 
                        and
                    (C) a designation made for the purpose of 
                establishing the preferred location of 
                compatible linear facilities and land uses.
            (2) Specifications of corridor.--On designation of 
        a corridor under this section, the centerline, width, 
        and compatible uses of a corridor shall be specified.

SEC. 351. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON PUBLIC LAND.

    (a) Memorandum of Understanding.--
            (1) In general.--Not later than 6 months after the 
        date of enactment of this Act, the Secretary of Energy, 
        in consultation with the Secretary of the Interior, the 
        Secretary of Agriculture, and the Secretary of Defense 
        with respect to lands under their respective 
        jurisdictions, shall enter into a memorandum of 
        understanding to coordinate all applicable Federal 
        authorizations and environmental reviews relating to a 
        proposed or existing utility facility. To the maximum 
        extent practicable under applicable law, the Secretary 
        of Energy shall, to ensure timely review and permit 
        decisions, coordinate such authorizations and reviews 
        with any Indian tribes, multi-State entities, and State 
        agencies that are responsible for conducting any 
        separate permitting and environmental reviews of the 
        affected utility facility.
            (2) Contents.--The memorandum of understanding 
        shall include provisions that--
                    (A) establish--
                            (i) a unified right-of-way 
                        application form; and
                            (ii) an administrative procedure 
                        for processing right-of-way 
                        applications, including lines of 
                        authority, steps in application 
                        processing, and timeframes for 
                        application processing;
                    (B) provide for coordination of planning 
                relating to the granting of the rights-of-way;
                    (C) provide for an agreement among the 
                affected Federal agencies to prepare a single 
                environmental review document to be used as the 
                basis for all Federal authorization decisions; 
                and
                    (D) provide for coordination of use of 
                right-of-way stipulations to achieve 
                consistency.
    (b) Natural Gas Pipelines.--
            (1) In general.--With respect to permitting 
        activities for interstate natural gas pipelines, the 
        May 2002 document entitled ``Interagency Agreement On 
        Early Coordination Of Required Environmental And 
        Historic Preservation Reviews Conducted In Conjunction 
        With The Issuance Of Authorizations To Construct And 
        Operate Interstate Natural Gas Pipelines Certificated 
        By The Federal Energy Regulatory Commission'' shall 
        constitute compliance with subsection (a).
            (2) Report.--
                    (A) In general.--Not later than 1 year 
                after the date of enactment of this Act, and 
                every 2 years thereafter, agencies that are 
                signatories to the document referred to in 
                paragraph (1) shall transmit to Congress a 
                report on how the agencies under the 
                jurisdiction of the Secretaries are 
                incorporating and implementing the provisions 
                of the document referred to in paragraph (1).
                    (B) Contents.--The report shall address--
                            (i) efforts to implement the 
                        provisions of the document referred to 
                        in paragraph (1);
                            (ii) whether the efforts have had a 
                        streamlining effect;
                            (iii) further improvements to the 
                        permitting process of the agency; and
                            (iv) recommendations for inclusion 
                        of State and tribal governments in a 
                        coordinated permitting process.
    (c) Definition of Utility Facility.--In this section, the 
term ``utility facility'' means any privately, publicly, or 
cooperatively owned line, facility, or system--
            (1) for the transportation of--
                    (A) oil, natural gas, synthetic liquid 
                fuel, or gaseous fuel;
                    (B) any refined product produced from oil, 
                natural gas, synthetic liquid fuel, or gaseous 
                fuel; or
                    (C) products in support of the production 
                of material referred to in subparagraph (A) or 
                (B);
            (2) for storage and terminal facilities in 
        connection with the production of material referred to 
        in paragraph (1); or
            (3) for the generation, transmission, and 
        distribution of electric energy.

SEC. 352. RENEWABLE ENERGY ON FEDERAL LAND.

    (a) Report.--
            (1) In general.--Not later than 24 months after the 
        date of enactment of this Act, the Secretary of the 
        Interior, in cooperation with the Secretary of 
        Agriculture, shall develop and transmit to Congress a 
        report that includes recommendations on opportunities 
        to develop renewable energy on--
                    (A) public lands under the jurisdiction of 
                the Secretary of the Interior; and
                    (B) National Forest System lands under the 
                jurisdiction of the Secretary of Agriculture.
            (2) Contents.--The report shall include--
                    (A) 5-year plans developed by the Secretary 
                of the Interior and the Secretary of 
                Agriculture, respectively, for encouraging the 
                development of renewable energy consistent with 
                applicable law and management plans;
                    (B) an analysis of--
                            (i) the use of rights-of-way, 
                        leases, or other methods to develop 
                        renewable energy on such lands;
                            (ii) the anticipated benefits of 
                        grants, loans, tax credits, or other 
                        provisions to promote renewable energy 
                        development on such lands; and
                            (iii) any issues that the Secretary 
                        of the Interior or the Secretary of 
                        Agriculture have encountered in 
                        managing renewable energy projects on 
                        such lands, believe are likely to arise 
                        in relation to the development of 
                        renewable energy on such lands;
                    (C) a list, developed in consultation with 
                the Secretary of Energy and the Secretary of 
                Defense, of lands under the jurisdiction of the 
                Department of Energy or the Department of 
                Defense that would be suitable for development 
                for renewable energy, and any recommended 
                statutory and regulatory mechanisms for such 
                development; and
                    (D) any recommendations relating to the 
                issues addressed in the report.
    (b) National Academy of Sciences Study.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary of the 
        Interior shall contract with the National Academy of 
        Sciences to--
                    (A) study the potential for the development 
                of wind, solar, and ocean energy (including 
                tidal, wave, and thermal energy) on the outer 
                Continental Shelf;
                    (B) assess existing Federal authorities for 
                the development of such resources; and
                    (C) recommend statutory and regulatory 
                mechanisms for such development.
            (2) Transmittal.--The results of the study shall be 
        transmitted to Congress not later than 2 years after 
        the date of enactment of this Act.
    (c) Generation Capacity of Electricity From Renewable 
Energy Resources on Public Land.--The Secretary of the Interior 
shall, not later than 10 years after the date of enactment of 
this Act, seek to approve renewable energy projects located (or 
to be located) on public lands with a generation capacity of at 
least 10,000 megawatts of electricity.

SEC. 353. ELECTRICITY TRANSMISSION LINE RIGHT-OF-WAY, CLEVELAND 
                    NATIONAL FOREST AND ADJACENT PUBLIC LAND, 
                    CALIFORNIA.

    (a) Issuance.--
            (1) In general.--Not later than 60 days after the 
        completion of the environmental reviews under 
        subsection (c), the Secretary of the Interior and the 
        Secretary of Agriculture shall issue all necessary 
        grants, easements, permits, plan amendments, and other 
        approvals to allow for the siting and construction of a 
        high-voltage electricity transmission line right-of-way 
        running approximately north to south through the 
        Trabuco Ranger District of the Cleveland National 
        Forest in the State of California and adjacent lands 
        under the jurisdiction of the Bureau of Land Management 
        and the Forest Service.
            (2) Inclusions.--The right-of-way approvals under 
        paragraph (1) shall provide all necessary Federal 
        authorization from the Secretary of the Interior and 
        the Secretary of Agriculture for the routing, 
        construction, operation, and maintenance of a 500-
        kilovolt transmission line capable of meeting the long-
        term electricity transmission needs of the region 
        between the existing Valley-Serrano transmission line 
        to the north and the Telega-Escondido transmission line 
        to the south, and for connecting to future generating 
        capacity that may be developed in the region.
    (b) Protection of Wilderness Areas.--The Secretary of the 
Interior and the Secretary of Agriculture shall not allow any 
portion of a transmission line right-of-way corridor identified 
in subsection (a) to enter any identified wilderness area in 
existence as of the date of enactment of this Act.
    (c) Environmental and Administrative Reviews.--
            (1) Department of interior or local agency.--The 
        Secretary of the Interior, acting through the Director 
        of the Bureau of Land Management, shall be the lead 
        Federal agency with overall responsibility to ensure 
        completion of required environmental and other reviews 
        of the approvals to be issued under subsection (a).
            (2) National forest system land.--For the portions 
        of the corridor on National Forest System lands, the 
        Secretary of Agriculture shall complete all required 
        environmental reviews and administrative actions in 
        coordination with the Secretary of the Interior.
            (3) Expeditious completion.--The reviews required 
        for issuance of the approvals under subsection (a) 
        shall be completed not later than 1 year after the date 
        of the enactment of this Act.
    (d) Other Terms and Conditions.--The transmission line 
right-of-way shall be subject to such terms and conditions as 
the Secretary of the Interior and the Secretary of Agriculture 
consider necessary, based on the environmental reviews under 
subsection (c), to protect the value of historic, cultural, and 
natural resources under the jurisdiction of the Secretary of 
the Interior or the Secretary of Agriculture.
    (e) Preference Among Proposals.--The Secretary of the 
Interior and the Secretary of Agriculture shall give a 
preference to any application or preapplication proposal for a 
transmission line right-of-way referred to in subsection (a) 
that was submitted before December 31, 2002, over all other 
applications and proposals for the same or a similar right-of-
way submitted on or after that date.

SEC. 354. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER 
                    PADRE ISLAND NATIONAL SEASHORE.

    (a) Findings.--Congress finds the following:
            (1) Pursuant to Public Law 87-712 (16 U.S.C. 459d 
        et seq.; popularly known as the ``Federal Enabling 
        Act'') and various deeds and actions under that Act, 
        the United States is the owner of only the surface 
        estate of certain lands constituting the Padre Island 
        National Seashore.
            (2) Ownership of the oil, gas, and other minerals 
        in the subsurface estate of the lands constituting the 
        Padre Island National Seashore was never acquired by 
        the United States, and ownership of those interests is 
        held by the State of Texas and private parties.
            (3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
                    (A) expressly contemplated that the United 
                States would recognize the ownership and future 
                development of the oil, gas, and other minerals 
                in the subsurface estate of the lands 
                constituting the Padre Island National Seashore 
                by the owners and their mineral lessees; and
                    (B) recognized that approval of the State 
                of Texas was required to create Padre Island 
                National Seashore.
            (4) Approval was given for the creation of Padre 
        Island National Seashore by the State of Texas through 
        Tex. Rev. Civ. Stat. Ann. Art. 6077(t) (Vernon 1970), 
        which expressly recognized that development of the oil, 
        gas, and other minerals in the subsurface of the lands 
        constituting Padre Island National Seashore would be 
        conducted with full rights of ingress and egress under 
        the laws of the State of Texas.
    (b) Sense of Congress.--It is the sense of Congress that 
with regard to Federal law, any regulation of the development 
of oil, gas, or other minerals in the subsurface of the lands 
constituting Padre Island National Seashore should be made as 
if those lands retained the status that the lands had on 
September 27, 1962.

SEC. 355. ENCOURAGING PROHIBITION OF OFF-SHORE DRILLING IN THE GREAT 
                    LAKES.

    Congress encourages--
            (1) the States of Illinois, Michigan, New York, 
        Pennsylvania, and Wisconsin to continue to prohibit 
        offshore drilling in the Great Lakes for oil and gas; 
        and
            (2) the States of Indiana, Minnesota, and Ohio to 
        enact a prohibition of such drilling.

SEC. 356. FINGER LAKES NATIONAL FOREST 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. 357. STUDY ON LEASE EXCHANGES IN THE ROCKY MOUNTAIN FRONT.

    (a) Definitions.--For the purposes of this section:
            (1) Badger-two medicine area.--The term ``Badger-
        Two Medicine Area'' means the Forest Service land 
        located in--
                    (A) T. 31 N., R. 12-13 W.;
                    (B) T. 30 N., R. 11-13 W.;
                    (C) T. 29 N., R. 10-16 W.; and
                    (D) T. 28 N., R. 10-14 W.
            (2) Blackleaf area.--The term ``Blackleaf Area'' 
        means the Federal land owned by the Forest Service and 
        Bureau of Land Management that is located in--
                    (A) T. 27 N., R. 9 W.;
                    (B) T. 26 N., R. 9-10 W.;
                    (C) T. 25 N., R. 8-10 W.; and
                    (D) T. 24 N., R. 8-9 W.
            (3) Eligible lessee.--The term ``eligible lessee'' 
        means a lessee under a nonproducing lease.
            (4) Nonproducing lease.--The term ``nonproducing 
        lease'' means a Federal oil or gas lease--
                    (A) that is in existence and in good 
                standing on the date of enactment of this Act; 
                and
                    (B) that is located in the Badger-Two 
                Medicine Area or the Blackleaf Area.
            (5) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
            (6) State.--The term ``State'' means the State of 
        Montana.
    (b) Evaluation.--
            (1) In general.--The Secretary, in consultation 
        with the Governor of the State, and the eligible 
        lessees, shall evaluate opportunities for domestic oil 
        and gas production through the exchange of the 
        nonproducing leases.
            (2) Requirements.--In carrying out the evaluation 
        under subsection (a), the Secretary shall--
                    (A) consider opportunities for domestic 
                production of oil and gas through--
                            (i) the exchange of the 
                        nonproducing leases for oil and gas 
                        lease tracts of comparable value in the 
                        State; and
                            (ii) the issuance of bidding, 
                        royalty, or rental credits for Federal 
                        oil and gas leases in the State in 
                        exchange for the cancellation of the 
                        nonproducing leases;
                    (B) consider any other appropriate means to 
                exchange, or provide compensation for the 
                cancellation of, nonproducing leases, subject 
                to the consent of the eligible lessees;
                    (C) consider the views of any interested 
                persons, including the State;
                    (D) determine the level of interest of the 
                eligible lessees in exchanging the nonproducing 
                leases;
                    (E) assess the economic impact on the 
                lessees and the State of lease exchange, lease 
                cancellation, and final judicial or 
                administrative decisions related to the 
                nonproducing leases; and
                    (F) provide recommendations on--
                            (i) whether to pursue an exchange 
                        of the nonproducing leases;
                            (ii) any changes in laws (including 
                        regulations) that are necessary for the 
                        Secretary to carry out the exchange; 
                        and
                            (iii) any other appropriate means 
                        to exchange or provide compensation for 
                        the cancellation of a nonproducing 
                        lease, subject to the consent of the 
                        eligible lessee.
    (c) Valuation of Nonproducing Leases.--For the purpose of 
the evaluation under subsection (a), the value of a 
nonproducing lease shall be an amount equal to the difference 
between--
            (1) the sum of--
                    (A) the amount paid by the eligible lessee 
                for the nonproducing lease;
                    (B) any direct expenditures made by the 
                eligible lessee before the transmittal of the 
                report in subsection (c) associated with the 
                exploration and development of the nonproducing 
                lease; and
                    (C) interest on any amounts under 
                subparagraphs (A) and (B) during the period 
                beginning on the date on which the amount was 
                paid and ending on the date on which credits 
                are issued under subsection (b)(2)(A)(ii); and
            (2) the sum of the revenues from the nonproducing 
        lease.
    (d) Report to Congress.--Not later than 2 years after the 
date of the enactment of this Act, the Secretary shall initiate 
the evaluation in subsection (b) and transmit to Congress a 
report on the evaluation.

SEC. 358. FEDERAL COALBED METHANE REGULATION.

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

SEC. 359. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

    (a) Amendments.--Section 102 of Public Law 102-562 (106 
Stat. 4234) is amended--
            (1) by striking ``(a) In General.--
            (2) by striking ``and subject to the reservation in 
        subsection (b),''; and
            (3) by striking subsection (b).
    (b) Implementation of Amendment.--The Secretary of the 
Interior shall execute the legal instruments necessary to 
effectuate the amendment made by subsection (a)(3).

                Subtitle D--Alaska Natural Gas Pipeline

SEC. 371. SHORT TITLE.

    This subtitle may be cited as the ``Alaska Natural Gas 
Pipeline Act''.

SEC. 372. DEFINITIONS.

    In this subtitle:
            (1) Alaska natural gas.--The term ``Alaska natural 
        gas'' means natural gas derived from the area of the 
        State of Alaska lying north of 64 degrees north 
        latitude.
            (2) Alaska natural gas transportation project.--The 
        term ``Alaska natural gas transportation project'' 
        means any natural gas pipeline system that carries 
        Alaska natural gas to the border between Alaska and 
        Canada (including related facilities subject to the 
        jurisdiction of the Commission) that is authorized 
        under--
                    (A) the Alaska Natural Gas Transportation 
                Act of 1976 (15 U.S.C. 719 et seq.); or
                    (B) section 373.
            (3) Alaska natural gas transportation system.--The 
        term ``Alaska natural gas transportation system'' means 
        the Alaska natural gas transportation project 
        authorized under the Alaska Natural Gas Transportation 
        Act of 1976 (15 U.S.C. 719 et seq.) and designated and 
        described in section 2 of the President's decision.
            (4) Commission.--The term ``Commission'' means the 
        Federal Energy Regulatory Commission.
            (5) Federal coordinator.--The term ``Federal 
        Coordinator'' means the head of the Office of the 
        Federal Coordinator for Alaska Natural Gas 
        Transportation Projects established by section 376(a).
            (6) President's decision.--The term ``President's 
        decision'' means the decision and report to Congress on 
        the Alaska natural gas transportation system--
                    (A) issued by the President on September 
                22, 1977, in accordance with section 7 of the 
                Alaska Natural Gas Transportation Act of 1976 
                (15 U.S.C. 719e); and
                    (B) approved by Public Law 95-158 (15 
                U.S.C. 719f note; 91 Stat. 1268).
            (7) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (8) State.--The term ``State'' means the State of 
        Alaska.

SEC. 373. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.

    (a) Authority of the Commission.--Notwithstanding the 
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et 
seq.), the Commission may, in accordance with section 7(c) of 
the Natural Gas Act (15 U.S.C. 717f(c)), consider and act on an 
application for the issuance of a certificate of public 
convenience and necessity authorizing the construction and 
operation of an Alaska natural gas transportation project other 
than the Alaska natural gas transportation system.
    (b) Issuance of Certificate.--
            (1) In general.--The Commission shall issue a 
        certificate of public convenience and necessity 
        authorizing the construction and operation of an Alaska 
        natural gas transportation project under this section 
        if the applicant has satisfied the requirements of 
        section 7(e) of the Natural Gas Act (15 U.S.C. 
        717f(e)).
            (2) Considerations.--In considering an application 
        under this section, the Commission shall presume that--
                    (A) a public need exists to construct and 
                operate the proposed Alaska natural gas 
                transportation project; and
                    (B) sufficient downstream capacity will 
                exist to transport the Alaska natural gas 
                moving through the project to markets in the 
                contiguous United States.
    (c) Expedited Approval Process.--Not later than 60 days 
after the date of issuance of the final environmental impact 
statement under section 374 for an Alaska natural gas 
transportation project, the Commission shall issue a final 
order granting or denying any application for a certificate of 
public convenience and necessity for the project under section 
7(c) of the Natural Gas Act (15 U.S.C. 717f(c)) and this 
section.
    (d) Prohibition of Certain Pipeline Route.--No license, 
permit, lease, right-of-way, authorization, or other approval 
required under Federal law for the construction of any pipeline 
to transport natural gas from land within the Prudhoe Bay oil 
and gas lease area may be granted for any pipeline that follows 
a route that--
            (1) traverses land beneath navigable waters (as 
        defined in section 2 of the Submerged Lands Act (43 
        U.S.C. 1301)) beneath, or the adjacent shoreline of, 
        the Beaufort Sea; and
            (2) enters Canada at any point north of 68 degrees 
        north latitude.
    (e) Open Season.--
            (1) In general.--Not later than 120 days after the 
        date of enactment of this Act, the Commission shall 
        issue regulations governing the conduct of open seasons 
        for Alaska natural gas transportation projects 
        (including procedures for the allocation of capacity).
            (2) Regulations.--The regulations referred to in 
        paragraph (1) shall--
                    (A) include the criteria for and timing of 
                any open seasons;
                    (B) promote competition in the exploration, 
                development, and production of Alaska natural 
                gas; and
                    (C) for any open season for capacity 
                exceeding the initial capacity, provide the 
                opportunity for the transportation of natural 
                gas other than from the Prudhoe Bay and Point 
                Thomson units.
            (3) Applicability.--Except in a case in which an 
        expansion is ordered in accordance with section 375, 
        initial or expansion capacity on any Alaska natural gas 
        transportation project shall be allocated in accordance 
        with procedures to be established by the Commission in 
        regulations issued under paragraph (1).
    (f) Projects in the Contiguous United States.--
            (1) In general.--An application for additional or 
        expanded pipeline facilities that may be required to 
        transport Alaska natural gas from Canada to markets in 
        the contiguous United States may be made in accordance 
        with the Natural Gas Act (15 U.S.C. 717a et seq.).
            (2) Expansion.--To the extent that a pipeline 
        facility described in paragraph (1) includes the 
        expansion of any facility constructed in accordance 
        with the Alaska Natural Gas Transportation Act of 1976 
        (15 U.S.C. 719 et seq.), that Act shall continue to 
        apply.
    (g) Study of In-State Needs.--The holder of the certificate 
of public convenience and necessity issued, modified, or 
amended by the Commission for an Alaska natural gas 
transportation project shall demonstrate that the holder has 
conducted a study of Alaska in-State needs, including tie-in 
points along the Alaska natural gas transportation project for 
in-State access.
    (h) Alaska Royalty Gas.--
            (1) In general.--Except as provided in paragraph 
        (2), the Commission, on a request by the State and 
        after a hearing, may provide for reasonable access to 
        the Alaska natural gas transportation project by the 
        State (or State designee) for the transportation of 
        royalty gas of the State for the purpose of meeting 
        local consumption needs within the State.
            (2) Exception.--The rates of shippers of subscribed 
        capacity on an Alaska natural gas transportation 
        project described in paragraph (1), as in effect as of 
        the date on which access under that paragraph is 
        granted, shall not be increased as a result of such 
        access.
    (i) Regulations.--The Commission may issue such regulations 
as are necessary to carry out this section.

SEC. 374. ENVIRONMENTAL REVIEWS.

    (a) Compliance With NEPA.--The issuance of a certificate of 
public convenience and necessity authorizing the construction 
and operation of any Alaska natural gas transportation project 
under section 373 shall be treated as a major Federal action 
significantly affecting the quality of the human environment 
within the meaning of section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
    (b) Designation of Lead Agency.--
            (1) In general.--The Commission--
                    (A) shall be the lead agency for purposes 
                of complying with the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.); 
                and
                    (B) shall be responsible for preparing the 
                environmental impact statement required by 
                section 102(2)(c) of that Act (42 U.S.C. 
                4332(2)(c)) with respect to an Alaska natural 
                gas transportation project under section 373.
            (2) Consolidation of statements.--In carrying out 
        paragraph (1), the Commission shall prepare a single 
        environmental impact statement, which shall consolidate 
        the environmental reviews of all Federal agencies 
        considering any aspect of the Alaska natural gas 
        transportation project covered by the environmental 
        impact statement.
    (c) Other Agencies.--
            (1) In general.--Each Federal agency considering an 
        aspect of the construction and operation of an Alaska 
        natural gas transportation project under section 373 
        shall--
                    (A) cooperate with the Commission; and
                    (B) comply with deadlines established by 
                the Commission in the preparation of the 
                environmental impact statement under this 
                section.
            (2) Satisfaction of nepa requirements.--The 
        environmental impact statement prepared under this 
        section shall be adopted by each Federal agency 
        described in paragraph (1) in satisfaction of the 
        responsibilities of the Federal agency under section 
        102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C)) with respect to the Alaska 
        natural gas transportation project covered by the 
        environmental impact statement.
    (d) Expedited Process.--The Commission shall--
            (1) not later than 1 year after the Commission 
        determines that the application under section 373 with 
        respect to an Alaska natural gas transportation project 
        is complete, issue a draft environmental impact 
        statement under this section; and
            (2) not later than 180 days after the date of 
        issuance of the draft environmental impact statement, 
        issue a final environmental impact statement, unless 
        the Commission for good cause determines that 
        additional time is needed.

SEC. 375. PIPELINE EXPANSION.

    (a) Authority.--With respect to any Alaska natural gas 
transportation project, on a request by 1 or more persons and 
after giving notice and an opportunity for a hearing, the 
Commission may order the expansion of the Alaska natural gas 
project if the Commission determines that such an expansion is 
required by the present and future public convenience and 
necessity.
    (b) Responsibilities of Commission.--Before ordering an 
expansion under subsection (a), the Commission shall--
            (1) approve or establish rates for the expansion 
        service that are designed to ensure the recovery, on an 
        incremental or rolled-in basis, of the cost associated 
        with the expansion (including a reasonable rate of 
        return on investment);
            (2) ensure that the rates do not require existing 
        shippers on the Alaska natural gas transportation 
        project to subsidize expansion shippers;
            (3) find that a proposed shipper will comply with, 
        and the proposed expansion and the expansion of service 
        will be undertaken and implemented based on, terms and 
        conditions consistent with the tariff of the Alaska 
        natural gas transportation project in effect as of the 
        date of the expansion;
            (4) find that the proposed facilities will not 
        adversely affect the financial or economic viability of 
        the Alaska natural gas transportation project;
            (5) find that the proposed facilities will not 
        adversely affect the overall operations of the Alaska 
        natural gas transportation project;
            (6) find that the proposed facilities will not 
        diminish the contract rights of existing shippers to 
        previously subscribed certificated capacity;
            (7) ensure that all necessary environmental reviews 
        have been completed; and
            (8) find that adequate downstream facilities exist 
        or are expected to exist to deliver incremental Alaska 
        natural gas to market.
    (c) Requirement for a Firm Transportation Agreement.--Any 
order of the Commission issued in accordance with this section 
shall be void unless the person requesting the order executes a 
firm transportation agreement with the Alaska natural gas 
transportation project within such reasonable period of time as 
the order may specify.
    (d) Limitation.--Nothing in this section expands or 
otherwise affects any authority of the Commission with respect 
to any natural gas pipeline located outside the State.
    (e) Regulations.--The Commission may issue such regulations 
as are necessary to carry out this section.

SEC. 376. FEDERAL COORDINATOR.

    (a) Establishment.--There is established, as an independent 
office in the executive branch, the Office of the Federal 
Coordinator for Alaska Natural Gas Transportation Projects.
    (b) Federal Coordinator.--
            (1) Appointment.--The Office shall be headed by a 
        Federal Coordinator for Alaska Natural Gas 
        Transportation Projects, who shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate, to serve a term to last until 1 year following 
        the completion of the project referred to in section 
        373.
            (2) Compensation.--The Federal Coordinator shall be 
        compensated at the rate prescribed for level III of the 
        Executive Schedule (5 U.S.C. 5314).
    (c) Duties.--The Federal Coordinator shall be responsible 
for--
            (1) coordinating the expeditious discharge of all 
        activities by Federal agencies with respect to an 
        Alaska natural gas transportation project; and
            (2) ensuring the compliance of Federal agencies 
        with the provisions of this subtitle.
    (d) Reviews and Actions of Other Federal Agencies.--
            (1) Expedited reviews and actions.--All reviews 
        conducted and actions taken by any Federal agency 
        relating to an Alaska natural gas transportation 
        project authorized under this section shall be 
        expedited, in a manner consistent with completion of 
        the necessary reviews and approvals by the deadlines 
        under this subtitle.
            (2) Prohibition of certain terms and conditions.--
        No Federal agency may include in any certificate, 
        right-of-way, permit, lease, or other authorization 
        issued to an Alaska natural gas transportation project 
        any term or condition that may be permitted, but is not 
        required, by any applicable law if the Federal 
        Coordinator determines that the term or condition would 
        prevent or impair in any significant respect the 
        expeditious construction and operation, or an 
        expansion, of the Alaska natural gas transportation 
        project.
            (3) Prohibition of certain actions.--Unless 
        required by law, no Federal agency shall add to, amend, 
        or abrogate any certificate, right-of-way, permit, 
        lease, or other authorization issued to an Alaska 
        natural gas transportation project if the Federal 
        Coordinator determines that the action would prevent or 
        impair in any significant respect the expeditious 
        construction and operation, or an expansion, of the 
        Alaska natural gas transportation project.
            (4) Limitation.--The Federal Coordinator shall not 
        have authority to--
                    (A) override--
                            (i) the implementation or 
                        enforcement of regulations issued by 
                        the Commission under section 373; or
                            (ii) an order by the Commission to 
                        expand the project under section 375; 
                        or
                    (B) impose any terms, conditions, or 
                requirements in addition to those imposed by 
                the Commission or any agency with respect to 
                construction and operation, or an expansion of, 
                the project.
    (e) State Coordination.--
            (1) In general.--The Federal Coordinator and the 
        State shall enter into a joint surveillance and 
        monitoring agreement similar to the agreement in effect 
        during construction of the Trans-Alaska Pipeline, to be 
        approved by the President and the Governor of the 
        State, for the purpose of monitoring the construction 
        of the Alaska natural gas transportation project.
            (2) Primary responsibility.--With respect to an 
        Alaska natural gas transportation project--
                    (A) the Federal Government shall have 
                primary surveillance and monitoring 
                responsibility in areas where the Alaska 
                natural gas transportation project crosses 
                Federal land or private land; and
                    (B) the State government shall have primary 
                surveillance and monitoring responsibility in 
                areas where the Alaska natural gas 
                transportation project crosses State land.
    (f) Transfer of Federal Inspector Functions and 
Authority.--On appointment of the Federal Coordinator by the 
President, all of the functions and authority of the Office of 
Federal Inspector of Construction for the Alaska Natural Gas 
Transportation System vested in the Secretary under section 
3012(b) of the Energy Policy Act of 1992 (15 U.S.C. 719e note; 
Public Law 102-486), including all functions and authority 
described and enumerated in the Reorganization Plan No. 1 of 
1979 (44 Fed. Reg. 33663), Executive Order No. 12142 of June 
21, 1979 (44 Fed. Reg. 36927), and section 5 of the President's 
decision, shall be transferred to the Federal Coordinator.
    (g) Temporary Authority.--The functions, authorities, 
duties, and responsibilities of the Federal Coordinator shall 
be vested in the Secretary until the later of the appointment 
of the Federal Coordinator by the President, or 18 months after 
the date of enactment of this Act.

SEC. 377. JUDICIAL REVIEW.

    (a) Exclusive Jurisdiction.--Except for review by the 
Supreme Court on writ of certiorari, the United States Court of 
Appeals for the District of Columbia Circuit shall have 
original and exclusive jurisdiction to determine--
            (1) the validity of any final order or action 
        (including a failure to act) of any Federal agency or 
        officer under this subtitle;
            (2) the constitutionality of any provision of this 
        subtitle, or any decision made or action taken under 
        this subtitle; or
            (3) the adequacy of any environmental impact 
        statement prepared under the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.) with 
        respect to any action under this subtitle.
    (b) Deadline for Filing Claim.--A claim arising under this 
subtitle may be brought not later than 60 days after the date 
of the decision or action giving rise to the claim.
    (c) Expedited Consideration.--The United States Court of 
Appeals for the District of Columbia Circuit shall set any 
action brought under subsection (a) for expedited 
consideration, taking into account the national interest of 
enhancing national energy security by providing access to the 
significant gas reserves in Alaska needed to meet the 
anticipated demand for natural gas.
    (d) Amendment of the Alaska Natural Gas Transportation Act 
of 1976.--Section 10(c) of the Alaska Natural Gas 
Transportation Act of 1976 (15 U.S.C. 719h) is amended--
            (1) by striking ``(c)(1) A claim'' and inserting 
        the following:
    ``(c) Jurisdiction.--
            ``(1) Special courts.--
                    ``(A) In general.--A claim'';
            (2) by striking ``Such court shall have'' and 
        inserting the following:
                    ``(B) Exclusive jurisdiction.--The Special 
                Court shall have'';
            (3) by inserting after paragraph (1) the following:
            ``(2) Expedited consideration.--The Special Court 
        shall set any action brought under this section for 
        expedited consideration, taking into account the 
        national interest described in section 2.''; and
            (4) in paragraph (3), by striking ``(3) The 
        enactment'' and inserting the following:
            ``(3) Environmental impact statements.--The 
        enactment''.

SEC. 378. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.

    (a) Local Distribution.--Any facility receiving natural gas 
from an Alaska natural gas transportation project for delivery 
to consumers within the State--
            (1) shall be deemed to be a local distribution 
        facility within the meaning of section 1(b) of the 
        Natural Gas Act (15 U.S.C. 717(b)); and
            (2) shall not be subject to the jurisdiction of the 
        Commission.
    (b) Additional Pipelines.--Except as provided in section 
373(d), nothing in this subtitle shall preclude or otherwise 
affect a future natural gas pipeline that may be constructed to 
deliver natural gas to Fairbanks, Anchorage, Matanuska-Susitna 
Valley, or the Kenai peninsula or Valdez or any other site in 
the State for consumption within or distribution outside the 
State.
    (c) Rate Coordination.--
            (1) In general.--In accordance with the Natural Gas 
        Act (15 U.S.C. 717a et seq.), the Commission shall 
        establish rates for the transportation of natural gas 
        on any Alaska natural gas transportation project.
            (2) Consultation.--In carrying out paragraph (1), 
        the Commission, in accordance with section 17(b) of the 
        Natural Gas Act (15 U.S.C. 717p(b)), shall consult with 
        the State regarding rates (including rate settlements) 
        applicable to natural gas transported on and delivered 
        from the Alaska natural gas transportation project for 
        use within the State.

SEC. 379. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

    (a) Requirement of Study.--If no application for the 
issuance of a certificate or amended certificate of public 
convenience and necessity authorizing the construction and 
operation of an Alaska natural gas transportation project has 
been filed with the Commission by the date that is 18 months 
after the date of enactment of this Act, the Secretary shall 
conduct a study of alternative approaches to the construction 
and operation of such an Alaska natural gas transportation 
project.
    (b) Scope of Study.--The study under subsection (a) shall 
take into consideration the feasibility of--
            (1) establishing a Federal Government corporation 
        to construct an Alaska natural gas transportation 
        project; and
            (2) securing alternative means of providing Federal 
        financing and ownership (including alternative 
        combinations of Government and private corporate 
        ownership) of the Alaska natural gas transportation 
        project.
    (c) Consultation.--In conducting the study under subsection 
(a), the Secretary shall consult with the Secretary of the 
Treasury and the Secretary of the Army (acting through the 
Chief of Engineers).
    (d) Report.--On completion of any study under subsection 
(a), the Secretary shall submit to Congress a report that 
describes--
            (1) the results of the study; and
            (2) any recommendations of the Secretary (including 
        proposals for legislation to implement the 
        recommendations).

SEC. 380. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.

    (a) Savings Clause.--Nothing in this subtitle affects--
            (1) any decision, certificate, permit, right-of-
        way, lease, or other authorization issued under section 
        9 of the Alaska Natural Gas Transportation Act of 1976 
        (15 U.S.C. 719g); or
            (2) any Presidential finding or waiver issued in 
        accordance with that Act.
    (b) Clarification of Authority to Amend Terms and 
Conditions to Meet Current Project Requirements.--Any Federal 
agency responsible for granting or issuing any certificate, 
permit, right-of-way, lease, or other authorization under 
section 9 of the Alaska Natural Gas Transportation Act of 1976 
(15 U.S.C. 719g) may add to, amend, or rescind any term or 
condition included in the certificate, permit, right-of-way, 
lease, or other authorization to meet current project 
requirements (including the physical design, facilities, and 
tariff specifications), if the addition, amendment, or 
rescission--
            (1) would not compel any change in the basic nature 
        and general route of the Alaska natural gas 
        transportation system as designated and described in 
        section 2 of the President's decision; or
            (2) would not otherwise prevent or impair in any 
        significant respect the expeditious construction and 
        initial operation of the Alaska natural gas 
        transportation system.
    (c) Updated Environmental Reviews.--The Secretary shall 
require the sponsor of the Alaska natural gas transportation 
system to submit such updated environmental data, reports, 
permits, and impact analyses as the Secretary determines are 
necessary to develop detailed terms, conditions, and compliance 
plans required by section 5 of the President's decision.

SEC. 381. SENSE OF CONGRESS CONCERNING USE OF STEEL MANUFACTURED IN 
                    NORTH AMERICA NEGOTIATION OF A PROJECT LABOR 
                    AGREEMENT.

    It is the sense of Congress that--
            (1) an Alaska natural gas transportation project 
        would provide significant economic benefits to the 
        United States and Canada; and
            (2) to maximize those benefits, the sponsors of the 
        Alaska natural gas transportation project should make 
        every effort to--
                    (A) use steel that is manufactured in North 
                America; and
                    (B) negotiate a project labor agreement to 
                expedite construction of the pipeline.

SEC. 382. SENSE OF CONGRESS AND STUDY CONCERNING PARTICIPATION BY SMALL 
                    BUSINESS CONCERNS.

    (a) Definition of Small Business Concern.--In this section, 
the term ``small business concern'' has the meaning given the 
term in section 3(a) of the Small Business Act (15 U.S.C. 
632(a)).
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) an Alaska natural gas transportation project 
        would provide significant economic benefits to the 
        United States and Canada; and
            (2) to maximize those benefits, the sponsors of the 
        Alaska natural gas transportation project should 
        maximize the participation of small business concerns 
        in contracts and subcontracts awarded in carrying out 
        the project.
    (c) Study.--
            (1) In general.--The Comptroller General of the 
        United States shall conduct a study to determine the 
        extent to which small business concerns participate in 
        the construction of oil and gas pipelines in the United 
        States.
            (2) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Comptroller General shall 
        submit to Congress a report that describes results of 
        the study under paragraph (1).
            (3) Updates.--The Comptroller General shall--
                    (A) update the study at least once every 5 
                years until construction of an Alaska natural 
                gas transportation project is completed; and
                    (B) on completion of each update, submit to 
                Congress a report containing the results of the 
                update.

SEC. 383. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.

    (a) Program.--
            (1) Establishment.--The Secretary of Labor (in this 
        section referred to as the ``Secretary'') shall make 
        grants to the Alaska Workforce Investment Board--
                    (A) to recruit and train adult and 
                dislocated workers in Alaska, including Alaska 
                Natives, in the skills required to construct 
                and operate an Alaska gas pipeline system; and
                    (B) for the design and construction of a 
                training facility to be located in Fairbanks, 
                Alaska, to support an Alaska gas pipeline 
                training program.
            (2) Coordination with existing programs.--The 
        training program established with the grants authorized 
        under paragraph (1) shall be consistent with the vision 
        and goals set forth in the State of Alaska Unified 
        Plan, as developed pursuant to the Workforce Investment 
        Act of 1998 (29 U.S.C. 2801 et seq.).
    (b) Requirements for Grants.--The Secretary shall make a 
grant under subsection (a) only if--
            (1) the Governor of the State of Alaska requests 
        the grant funds and certifies in writing to the 
        Secretary that there is a reasonable expectation that 
        the construction of the Alaska natural gas pipeline 
        system will commence by the date that is 2 years after 
        the date of the certification; and
            (2) the Secretary of Energy concurs in writing to 
        the Secretary with the certification made under 
        paragraph (1) after considering--
                    (A) the status of necessary Federal and 
                State permits;
                    (B) the availability of financing for the 
                Alaska natural gas pipeline project; and
                    (C) other relevant factors.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$20,000,000. Not more than 15 percent of the funds may be used 
for the facility described in subsection (a)(1)(B).

SEC. 384. SENSE OF CONGRESS CONCERNING NATURAL GAS DEMAND.

    It is the sense of Congress that--
            (1) North American demand for natural gas will 
        increase dramatically over the course of the next 
        several decades;
            (2) both the Alaska Natural Gas Pipeline and the 
        Mackenzie Delta Natural Gas project in Canada will be 
        necessary to help meet the increased demand for natural 
        gas in North America;
            (3) Federal and State officials should work 
        together with officials in Canada to ensure both 
        projects can move forward in a mutually beneficial 
        fashion;
            (4) Federal and State officials should acknowledge 
        that the smaller scope, fewer permitting requirements, 
        and lower cost of the Mackenzie Delta project means it 
        will most likely be completed before the Alaska Natural 
        Gas Pipeline;
            (5) natural gas production in the 48 contiguous 
        States and Canada will not be able to meet all domestic 
        demand in the coming decades; and
            (6) as a result, natural gas delivered from Alaskan 
        North Slope will not displace or reduce the commercial 
        viability of Canadian natural gas produced from the 
        Mackenzie Delta or production from the 48 contiguous 
        States.

SEC. 385. SENSE OF CONGRESS CONCERNING ALASKAN OWNERSHIP.

    It is the sense of Congress that--
            (1) Alaska Native Regional Corporations, companies 
        owned and operated by Alaskans, and individual Alaskans 
        should have the opportunity to own shares of the Alaska 
        natural gas pipeline in a way that promotes economic 
        development for the State; and
            (2) to facilitate economic development in the 
        State, all project sponsors should negotiate in good 
        faith with any willing Alaskan person that desires to 
        be involved in the project.

SEC. 386. LOAN GUARANTEES.

    (a) Authority.--(1) The Secretary may enter into agreements 
with 1 or more holders of a certificate of public convenience 
and necessity issued under section 373(b) of this Act or 
section 9 of the Alaska Natural Gas Transportation Act of 1976 
(15 U.S.C. 719g) to issue Federal guarantee instruments with 
respect to loans and other debt obligations for a qualified 
infrastructure project.
    (2) Subject to the requirements of this section, the 
Secretary may also enter into agreements with 1 or more owners 
of the Canadian portion of a qualified infrastructure project 
to issue Federal guarantee instruments with respect to loans 
and other debt obligations for a qualified infrastructure 
project as though such owner were a holder described in 
paragraph (1).
    (3) The authority of the Secretary to issue Federal 
guarantee instruments under this section for a qualified 
infrastructure project shall expire on the date that is 2 years 
after the date on which the final certificate of public 
convenience and necessity (including any Canadian certificates 
of public convenience and necessity) is issued for the project. 
A final certificate shall be considered to have been issued 
when all certificates of public convenience and necessity have 
been issued that are required for the initial transportation of 
commercially economic quantities of natural gas from Alaska to 
the continental United States.
    (b) Conditions.--(1) The Secretary may issue a Federal 
guarantee instrument for a qualified infrastructure project 
only after a certificate of public convenience and necessity 
under section 373(b) of this Act or an amended certificate 
under section 9 of the Alaska Natural Gas Transportation Act of 
1976 (15 U.S.C. 719g) has been issued for the project.
    (2) The Secretary may issue a Federal guarantee instrument 
under this section for a qualified infrastructure project only 
if the loan or other debt obligation guaranteed by the 
instrument has been issued by an eligible lender.
    (3) The Secretary shall not require as a condition of 
issuing a Federal guarantee instrument under this section any 
contractual commitment or other form of credit support of the 
sponsors (other than equity contribution commitments and 
completion guarantees), or any throughput or other guarantee 
from prospective shippers greater than such guarantees as shall 
be required by the project owners.
    (c) Limitations on Amounts.--(1) The amount of loans and 
other debt obligations guaranteed under this section for a 
qualified infrastructure project shall not exceed 80 percent of 
the total capital costs of the project, including interest 
during construction.
    (2) The principal amount of loans and other debt 
obligations guaranteed under this section shall not exceed, in 
the aggregate, $18,000,000,000, which amount shall be indexed 
for United States dollar inflation from the date of enactment 
of this Act, as measured by the Consumer Price Index.
    (d) Loan Terms and Fees.--(1) The Secretary may issue 
Federal guarantee instruments under this section that take into 
account repayment profiles and grace periods justified by 
project cash flows and project-specific considerations. The 
term of any loan guaranteed under this section shall not exceed 
30 years.
    (2) An eligible lender may assess and collect from the 
borrower such other fees and costs associated with the 
application and origination of the loan or other debt 
obligation as are reasonable and customary for a project 
finance transaction in the oil and gas sector.
    (e) Regulations.--The Secretary may issue regulations to 
carry out this section.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to cover the 
cost of loan guarantees under this section, as defined by 
section 502(5) of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a(5)). Such sums shall remain available until 
expended.
    (g) Definitions.--In this section, the following 
definitions apply:
            (1) The term ``Consumer Price Index'' means the 
        Consumer Price Index for all-urban consumers, United 
        States city average, as published by the Bureau of 
        Labor Statistics, or if such index shall cease to be 
        published, any successor index or reasonable substitute 
        thereof.
            (2) The term ``eligible lender'' means any non-
        Federal qualified institutional buyer (as defined by 
        section 230.144A(a) of title 17, Code of Federal 
        Regulations (or any successor regulation), known as 
        Rule 144A(a) of the Securities and Exchange Commission 
        and issued under the Securities Act of 1933), 
        including--
                    (A) a qualified retirement plan (as defined 
                in section 4974(c) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 4974(c)) that is a qualified 
                institutional buyer; and
                    (B) a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 
                1986 (26 U.S.C. 414(d)) that is a qualified 
                institutional buyer.
            (3) The term ``Federal guarantee instrument'' means 
        any guarantee or other pledge by the Secretary to 
        pledge the full faith and credit of the United States 
        to pay all of the principal and interest on any loan or 
        other debt obligation entered into by a holder of a 
        certificate of public convenience and necessity.
            (4) The term ``qualified infrastructure project'' 
        means an Alaskan natural gas transportation project 
        consisting of the design, engineering, finance, 
        construction, and completion of pipelines and related 
        transportation and production systems (including gas 
        treatment plants), and appurtenances thereto, that are 
        used to transport natural gas from the Alaska North 
        Slope to the continental United States.

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--There are authorized to 
be appropriated to the Secretary of Energy (referred to in this 
title as the ``Secretary'') to carry out the activities 
authorized by this subtitle $200,000,000 for each of fiscal 
years 2004 through 2012, to remain available until expended.
    (b) Report.--The Secretary shall submit to Congress the 
report required by this subsection not later than March 31, 
2005. The report shall include, with respect to subsection (a), 
a 10-year plan containing--
            (1) a detailed assessment of whether the aggregate 
        funding levels provided under subsection (a) are the 
        appropriate funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all 
        activities expected to be undertaken;
            (3) a detailed list of technical milestones for 
        each coal and related technology that will be pursued; 
        and
            (4) a detailed description of how the program will 
        avoid problems enumerated in General Accounting Office 
        reports on the Clean Coal Technology Program, including 
        problems that have resulted in unspent funds and 
        projects that failed either financially or 
        scientifically.

SEC. 402. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding 
under this subtitle for any project that does not advance 
efficiency, environmental performance, and cost competitiveness 
well beyond the level of technologies that are in commercial 
service or have been demonstrated on a scale that the Secretary 
determines is sufficient to demonstrate that commercial service 
is viable as of the date of enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification projects.--
                    (A) In general.--In allocating the funds 
                made available under section 401(a), the 
                Secretary shall ensure that at least 60 percent 
                of the funds are used only for projects on 
                coal-based gasification technologies, including 
                gasification combined cycle, gasification fuel 
                cells, gasification coproduction, and hybrid 
                gasification/combustion.
                    (B) Technical milestones.--The Secretary 
                shall periodically set technical milestones 
                specifying the emission and thermal efficiency 
                levels that coal gasification projects under 
                this subtitle shall be designed, and reasonably 
                expected, to achieve. The technical milestones 
                shall become more restrictive during the life 
                of the program. The Secretary shall set the 
                periodic milestones so as to achieve by 2020 
                coal gasification projects able--
                            (i) to remove 99 percent of sulfur 
                        dioxide;
                            (ii) to emit not more than .05 lbs 
                        of NO
X
 per million Btu;
                            (iii) to achieve substantial 
                        reductions in mercury emissions; and
                            (iv) to achieve a thermal 
                        efficiency of--
                                    (I) 60 percent for coal of 
                                more than 9,000 Btu;
                                    (II) 59 percent for coal of 
                                7,000 to 9,000 Btu; and
                                    (III) 50 percent for coal 
                                of less than 7,000 Btu.
            (2) Other projects.--The Secretary shall 
        periodically set technical milestones and ensure that 
        up to 40 percent of the funds appropriated pursuant to 
        section 401(a) are used for projects not described in 
        paragraph (1). The milestones shall specify the 
        emission and thermal efficiency levels that projects 
        funded under this paragraph shall be designed to and 
        reasonably expected to achieve. The technical 
        milestones shall become more restrictive during the 
        life of the program. The Secretary shall set the 
        periodic milestones so as to achieve by 2010 projects 
        able--
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of 
                NO
X
 per million Btu;
                    (C) to achieve substantial reductions in 
                mercury emissions; and
                    (D) to achieve a thermal efficiency of--
                            (i) 45 percent for coal of more 
                        than 9,000 Btu;
                            (ii) 44 percent for coal of 7,000 
                        to 9,000 Btu; and
                            (iii) 40 percent for coal of less 
                        than 7,000 Btu.
            (3) Consultation.--Before setting the technical 
        milestones under paragraphs (1)(B) and (2), the 
        Secretary shall consult with the Administrator of the 
        Environmental Protection Agency and interested 
        entities, including coal producers, industries using 
        coal, organizations to promote coal or advanced coal 
        technologies, environmental organizations, and 
        organizations representing workers.
            (4) Existing units.--In the case of projects at 
        units in existence on the date of enactment of this 
        Act, in lieu of the thermal efficiency requirements set 
        forth in paragraph (1)(B)(iv) and (2)(D), the 
        milestones shall be designed to achieve an overall 
        thermal design efficiency improvement, compared to the 
        efficiency of the unit as operated, of not less than--
                    (A) 7 percent for coal of more than 9,000 
                Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 
                Btu; or
                    (C) 4 percent for coal of less than 7,000 
                Btu.
            (5) Permitted uses.--In carrying out this subtitle, 
        the Secretary may fund projects that include, as part 
        of the project, the separation and capture of carbon 
        dioxide.
    (c) Financial Criteria.--The Secretary shall not provide a 
funding award under this subtitle unless the recipient 
documents to the satisfaction of the Secretary that--
            (1) the award recipient is financially viable 
        without the receipt of additional Federal funding;
            (2) the recipient will provide sufficient 
        information to the Secretary to enable the Secretary to 
        ensure that the award funds are spent efficiently and 
        effectively; and
            (3) a market exists for the technology being 
        demonstrated or applied, as evidenced by statements of 
        interest in writing from potential purchasers of the 
        technology.
    (d) Financial Assistance.--The Secretary shall provide 
financial assistance to projects that meet the requirements of 
subsections (a), (b), and (c) and are likely to--
            (1) achieve overall cost reductions in the 
        utilization of coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among 
        various forms of energy in order to maintain a 
        diversity of fuel choices in the United States to meet 
        electricity generation requirements; and
            (3) demonstrate methods and equipment that are 
        applicable to 25 percent of the electricity generating 
        facilities, using various types of coal, that use coal 
        as the primary feedstock as of the date of enactment of 
        this Act.
    (e) Federal Share.--The Federal share of the cost of a coal 
or related technology project funded by the Secretary under 
this subtitle shall not exceed 50 percent.
    (f) Applicability.--No technology, or level of emission 
reduction, shall be treated as adequately demonstrated for 
purposes of section 111 of the Clean Air Act (42 U.S.C. 7411), 
achievable for purposes of section 169 of that Act (42 U.S.C. 
7479), or achievable in practice for purposes of section 171 of 
that Act (42 U.S.C. 7501) solely by reason of the use of such 
technology, or the achievement of such emission reduction, by 1 
or more facilities receiving assistance under this subtitle.

SEC. 403. REPORT.

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

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 401, the 
Secretary shall award competitive, merit-based grants to 
universities for the establishment of Centers of Excellence for 
Energy Systems of the Future. The Secretary shall provide 
grants to universities that show the greatest potential for 
advancing new clean coal technologies.

                    Subtitle B--Clean Power Projects

SEC. 411. COAL TECHNOLOGY LOAN.

    There are authorized to be appropriated to the Secretary 
$125,000,000 to provide a loan to the owner of the experimental 
plant constructed under United States Department of Energy 
cooperative agreement number DE-FC-22-91PC90544 on such terms 
and conditions as the Secretary determines, including interest 
rates and upfront payments.

SEC. 412. COAL GASIFICATION.

    The Secretary is authorized to provide loan guarantees for 
a project to produce energy from a plant using integrated 
gasification combined cycle technology of at least 400 
megawatts in capacity that produces power at competitive rates 
in deregulated energy generation markets and that does not 
receive any subsidy (direct or indirect) from ratepayers.

SEC. 413. INTEGRATED GASIFICATION COMBINED CYCLE TECHNOLOGY.

    The Secretary is authorized to provide loan guarantees for 
a project to produce energy from a plant using integrated 
gasification combined cycle technology located in a taconite-
producing region of the United States that is entitled under 
the law of the State in which the plant is located to enter 
into a long-term contract approved by a State Public Utility 
Commission to sell at least 450 megawatts of output to a 
utility.

SEC. 414. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for 
at least 1 petroleum coke gasification polygeneration project.

SEC. 415. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

    The Secretary is authorized, subject to the availability of 
appropriations, to 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 
is combined with wind and other renewable sources, minimizes 
and offers the potential to sequester carbon dioxide emissions, 
and provides a ready source of hydrogen for near-site fuel cell 
demonstrations. The facility may be built in stages, combined 
output shall be at least 200 megawatts at successively more 
competitive rates, and the facility shall be located in the 
Upper Great Plains. Section 402(b) technical criteria apply, 
and the Federal cost share shall not exceed 50 percent. 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. 
Utilizing this investment tax credit does not prohibit the use 
of other Clean Coal Program funding.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

    The Secretary shall use $5,000,000 from amounts 
appropriated to initiate, through the Chicago Operations 
Office, a project to demonstrate the viability of high-energy 
electron scrubbing technology on commercial-scale electrical 
generation using high-sulfur coal.

                    Subtitle C--Federal Coal Leases

SEC. 421. 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--
                    (A) by striking ``Any person'' and 
                inserting ``(a) Any person'';
                    (B) by inserting a comma after ``may''; and
                    (C) by striking ``upon'' and all that 
                follows through the period and inserting the 
                following: ``upon a finding by the Secretary 
                that the lease--
            ``(1) would be in the interest of the United 
        States;
            ``(2) would not displace a competitive interest in 
        the land; and
            ``(3) would not include land or deposits that can 
        be developed as part of another potential or existing 
        operation;
secure modifications of the original coal lease by including 
additional coal land or coal deposits contiguous or cornering 
to those embraced in the lease, but in no event shall the total 
area added by any modifications to an existing coal lease 
exceed 1,280 acres, or add acreage larger than the acreage in 
the original lease.'';
            (2) in the second sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(b) The Secretary''; and
            (3) in the third sentence, by striking ``The 
        minimum'' and inserting the following:
    ``(c) The minimum''.

SEC. 422. 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 the longer period--
            ``(i) 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. 423. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) 
is amended to read as follows:
    ``(b)(1) Each lease shall be subjected to the condition of 
diligent development and continued operation of the mine or 
mines, except in a case in which operations under the lease are 
interrupted by strikes, the elements, or casualties not 
attributable to the lessee.
    ``(2)(A) The Secretary of the Interior may suspend the 
condition of continued operation upon the payment of advance 
royalties, if the Secretary determines that the public interest 
will be served by the suspension.
    ``(B) Advance royalties required under subparagraph (A) 
shall be computed based on--
            ``(i) the average price for coal sold in the spot 
        market from the same region during the last month of 
        each applicable continued operation year; or
            ``(ii) by using other methods established by the 
        Secretary of the Interior to capture the commercial 
        value of coal,
and based on commercial quantities, as defined by regulation by 
the Secretary of the Interior.
    ``(C) The aggregate number of years during the initial and 
any extended term of any lease for which advance royalties may 
be accepted in lieu of the condition of continued operation 
shall not exceed 20.
    ``(3) 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 the lease, to the extent that the 
advance royalties have not been used to reduce production 
royalties for a prior year.
    ``(4) The Secretary may, upon 6 months' notice to a lessee, 
cease to accept advance royalties in lieu of the requirement of 
continued operation.
    ``(5) Nothing in this subsection affects the requirement 
contained in the second sentence of subsection (a) relating to 
commencement of production at the end of 10 years.''.

SEC. 424. 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 in the first sentence by striking ``and not later 
than three years after a lease is issued,''.

SEC. 425. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO 
                    BONUS BIDS.

    Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a)) 
is amended by adding at the end the following:
    ``(4)(A) The Secretary shall not require a surety bond or 
any other financial assurance to guarantee payment of deferred 
bonus bid installments with respect to any coal lease issued on 
a cash bonus bid to a lessee or successor in interest having a 
history of a timely payment of noncontested coal royalties and 
advanced coal royalties in lieu of production (where 
applicable) and bonus bid installment payments.
    ``(B) The Secretary may waive any requirement that a lessee 
provide a surety bond or other financial assurance for a coal 
lease issued before the date of the enactment of the Energy 
Policy Act of 2003 only if the Secretary determines that the 
lessee has a history of making timely payments referred to in 
subparagraph (A).
    ``(5) Notwithstanding any other provision of law, if the 
lessee under a coal lease fails to pay any installment of a 
deferred cash bonus bid within 10 days after the Secretary 
provides written notice that payment of the installment is past 
due--
            ``(A) the lease shall automatically terminate; and
            ``(B) any bonus payments already made to the United 
        States with respect to the lease shall not be returned 
        to the lessee or credited in any future lease sale.''.

SEC. 426. INVENTORY REQUIREMENT.

    (a) Review of Assessments.--
            (1) In general.--The Secretary of the Interior, in 
        consultation with the Secretary of Agriculture and the 
        Secretary, shall review coal assessments and other 
        available data to identify--
                    (A) public lands, other than National Park 
                lands, with coal resources;
                    (B) the extent and nature of any 
                restrictions or impediments to the development 
                of coal resources on public lands identified 
                under subparagraph (A); and
                    (C) with respect to areas of such lands for 
                which sufficient data exists, resources of 
                compliant coal and supercompliant coal.
            (2) Definitions.--In this subsection:
                    (A) Compliant coal.--The term ``compliant 
                coal'' means coal that contains not less than 
                1.0 and not more than 1.2 pounds of sulfur 
                dioxide per million Btu.
                    (B) Supercompliant coal.--The term 
                ``supercompliant coal'' means coal that 
                contains less than 1.0 pounds of sulfur dioxide 
                per million Btu.
    (b) Completion and Updating of the Inventory.--The 
Secretary of the Interior--
            (1) shall complete the inventory under subsection 
        (a)(1) by not later than 2 years after the date of the 
        enactment of this Act; and
            (2) shall update the inventory as the availability 
        of data and developments in technology warrant.
    (c) Report.--The Secretary of the Interior shall submit to 
Congress, and make publicly available--
            (1) a report containing the inventory under this 
        section by not later than 2 years after the effective 
        date of this section; and
            (2) each update of that inventory.

SEC. 427. APPLICATION OF AMENDMENTS.

    The amendments made by this subtitle apply--
            (1) with respect to any coal lease issued on or 
        after the date of enactment of this Act; and
            (2) with respect to any coal lease issued before 
        the date of enactment of this Act, upon the earlier 
        of--
                    (A) the date of readjustment of the lease 
                as provided for by section 7(a) of the Mineral 
                Leasing Act (30 U.S.C. 207(a)); or
                    (B) the date the lessee requests such 
                application.

                 Subtitle D--Coal and Related Programs

SEC. 441. CLEAN AIR COAL PROGRAM.

    (a) Amendment.--The Energy Policy Act of 1992 is amended by 
adding the following new title at the end thereof:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS.

    ``(a) Findings.--The Congress finds that--
            ``(1) new environmental regulations present 
        additional challenges for coal-fired electrical 
        generation in the private marketplace; and
            ``(2) the Department of Energy, in cooperation with 
        industry, has already fully developed and 
        commercialized several new clean-coal technologies that 
        will allow the clean use of coal.
    ``(b) Purposes.--The purposes of this title are to--
            ``(1) promote national energy policy and energy 
        security, diversity, and economic competitiveness 
        benefits that result from the increased use of coal;
            ``(2) mitigate financial risks, reduce the cost, 
        and increase the marketplace acceptance of the new 
        clean coal technologies; and
            ``(3) advance the deployment of pollution control 
        equipment to meet the current and future obligations of 
        coal-fired generation units regulated under the Clean 
        Air Act (42 U.S.C. 7402 and following).

``SEC. 3102. AUTHORIZATION OF PROGRAM.

    ``The Secretary shall carry out a program to facilitate 
production and generation of coal-based power and the 
installation of pollution control equipment.

``SEC. 3103. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Pollution Control Projects.--There are authorized to 
be appropriated to the Secretary $300,000,000 for fiscal year 
2005, $100,000,000 for fiscal year 2006, $40,000,000 for fiscal 
year 2007, $30,000,000 for fiscal year 2008, and $30,000,000 
for fiscal year 2009, to remain available until expended, for 
carrying out the program for pollution control projects, which 
may include--
            ``(1) pollution control equipment and processes for 
        the control of mercury air emissions;
            ``(2) pollution control equipment and processes for 
        the control of nitrogen dioxide air emissions or sulfur 
        dioxide emissions;
            ``(3) pollution control equipment and processes for 
        the mitigation or collection of more than one 
        pollutant;
            ``(4) advanced combustion technology for the 
        control of at least two pollutants, including mercury, 
        particulate matter, nitrogen oxides, and sulfur 
        dioxide, which may also be designed to improve the 
        energy efficiency of the unit; and
            ``(5) advanced pollution control equipment and 
        processes designed to allow use of the waste byproducts 
        or other byproducts of the equipment or an electrical 
        generation unit designed to allow the use of 
        byproducts.
Funds appropriated under this subsection which are not awarded 
before fiscal year 2011 may be applied to projects under 
subsection (b), in addition to amounts authorized under 
subsection (b).
    ``(b) Generation Projects.--There are authorized to be 
appropriated to the Secretary $150,000,000 for fiscal year 
2006, $250,000,000 for each of the fiscal years 2007 through 
2011, and $100,000,000 for fiscal year 2012, to remain 
available until expended, for generation projects and air 
pollution control projects. Such projects may include--
            ``(1) coal-based electrical generation equipment 
        and processes, including gasification combined cycle or 
        other coal-based generation equipment and processes;
            ``(2) associated environmental control equipment, 
        that will be cost-effective and that is designed to 
        meet anticipated regulatory requirements;
            ``(3) coal-based electrical generation equipment 
        and processes, including gasification fuel cells, 
        gasification coproduction, and hybrid gasification/
        combustion projects; and
            ``(4) advanced coal-based electrical generation 
        equipment and processes, including oxidation combustion 
        techniques, ultra-supercritical boilers, and chemical 
        looping, which the Secretary determines will be cost-
        effective and could substantially contribute to meeting 
        anticipated environmental or energy needs.
    ``(c) Limitation.--Funds placed at risk during any fiscal 
year for Federal loans or loan guarantees pursuant to this 
title may not exceed 30 percent of the total funds obligated 
under this title.

``SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA.

    ``The Secretary shall pursuant to authorizations contained 
in section 3103 provide funding for air pollution control 
projects designed to facilitate compliance with Federal and 
State environmental regulations, including any regulation that 
may be established with respect to mercury.

``SEC. 3105. CRITERIA FOR GENERATION PROJECTS.

    ``(a) Criteria.--The Secretary shall establish criteria on 
which selection of individual projects described in section 
3103(b) should be based. The Secretary may modify the criteria 
as appropriate to reflect improvements in equipment, except 
that the criteria shall not be modified to be less stringent. 
These selection criteria shall include--
            ``(1) prioritization of projects whose installation 
        is likely to result in significant air quality 
        improvements in nonattainment air quality areas;
            ``(2) prioritization of projects that result in the 
        repowering or replacement of older, less efficient 
        units;
            ``(3) documented broad interest in the procurement 
        of the equipment and utilization of the processes used 
        in the projects by electrical generator owners or 
        operators;
            ``(4) equipment and processes beginning in 2005 
        through 2010 that are projected to achieve an thermal 
        efficiency of--
                    ``(A) 40 percent for coal of more than 
                9,000 Btu per pound based on higher heating 
                values;
                    ``(B) 38 percent for coal of 7,000 to 9,000 
                Btu per pound based on higher heating values; 
                and
                    ``(C) 36 percent for coal of less than 
                7,000 Btu per pound based on higher heating 
                values,

        except that energy used for coproduction or 
        cogeneration shall not be counted in calculating the 
        thermal efficiency under this paragraph; and
            ``(5) equipment and processes beginning in 2011 and 
        2012 that are projected to achieve an thermal 
        efficiency of--
                    ``(A) 45 percent for coal of more than 
                9,000 Btu per pound based on higher heating 
                values;
                    ``(B) 44 percent for coal of 7,000 to 9,000 
                Btu per pound based on higher heating values; 
                and
                    ``(C) 40 percent for coal of less than 
                7,000 Btu per pound based on higher heating 
                values,

        except that energy used for coproduction or 
        cogeneration shall not be counted in calculating the 
        thermal efficiency under this paragraph.
    ``(b) Selection.--(1) In selecting the projects, up to 25 
percent of the projects selected may be either coproduction or 
cogeneration or other gasification projects, but at least 25 
percent of the projects shall be for the sole purpose of 
electrical generation, and priority should be given to 
equipment and projects less than 600 MW to foster and promote 
standard designs.
    ``(2) The Secretary shall give priority to projects that 
have been developed and demonstrated that are not yet cost 
competitive, and for coal energy generation projects that 
advance efficiency, environmental performance, or cost 
competitiveness significantly beyond the level of pollution 
control equipment that is in operation on a full scale.

``SEC. 3106. FINANCIAL CRITERIA.

    ``(a) In General.--The Secretary shall only provide 
financial assistance to projects that meet the requirements of 
sections 3103 and 3104 and are likely to--
            ``(1) achieve overall cost reductions in the 
        utilization of coal to generate useful forms of energy; 
        and
            ``(2) improve the competitiveness of coal in order 
        to maintain a diversity of domestic fuel choices in the 
        United States to meet electricity generation 
        requirements.
    ``(b) Conditions.--The Secretary shall not provide a 
funding award under this title unless--
            ``(1) the award recipient is financially viable 
        without the receipt of additional Federal funding; and
            ``(2) the recipient provides sufficient information 
        to the Secretary for the Secretary to ensure that the 
        award funds are spent efficiently and effectively.
    ``(c) Equal Access.--The Secretary shall, to the extent 
practical, utilize cooperative agreement, loan guarantee, and 
direct Federal loan mechanisms designed to ensure that all 
electrical generation owners have equal access to these 
technology deployment incentives. The Secretary shall develop 
and direct a competitive solicitation process for the selection 
of technologies and projects under this title.

``SEC. 3107. FEDERAL SHARE.

    ``The Federal share of the cost of a coal or related 
technology project funded by the Secretary under this title 
shall not exceed 50 percent. For purposes of this title, 
Federal funding includes only appropriated funds.

``SEC. 3108. APPLICABILITY.

    ``No technology, or level of emission reduction, shall be 
treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act (42 U.S.C. 7411), achievable for purposes 
of section 169 of the Clean Air Act (42 U.S.C. 7479), or 
achievable in practice for purposes of section 171 of the Clean 
Air Act (42 U.S.C. 7501) solely by reason of the use of such 
technology, or the achievement of such emission reduction, by 
one or more facilities receiving assistance under this 
title.''.
    (b) Table of Contents Amendment.--The table of contents of 
the Energy Policy Act of 1992 is amended by adding at the end 
the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``Sec. 3101. Findings; purposes; definitions.
``Sec. 3102. Authorization of program.
``Sec. 3103. Authorization of appropriations.
``Sec. 3104. Air pollution control project criteria.
``Sec. 3105. Criteria for generation projects.
``Sec. 3106. Financial criteria.
``Sec. 3107. Federal share.
``Sec. 3108. Applicability.''.

                         TITLE V--INDIAN ENERGY

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Indian Tribal Energy 
Development and Self-Determination Act of 2003''.

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

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

             ``OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

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

  ``Sec. 213. Establishment of policy for National Nuclear Security 
          Administration.
  ``Sec. 214. Establishment of security, counterintelligence, and 
          intelligence policies.
  ``Sec. 215. Office of Counterintelligence.
  ``Sec. 216. Office of Intelligence.
  ``Sec. 217. Office of Indian Energy Policy and Programs.''.

            (2) Section 5315 of title 5, United States Code, is 
        amended by inserting ``Director, Office of Indian 
        Energy Policy and Programs, Department of Energy.'' 
        after ``Inspector General, Department of Energy.''.

SEC. 503. INDIAN ENERGY.

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

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

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

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

    ``(a) Department of the Interior Program.--
            ``(1) To assist Indian tribes in the development of 
        energy resources and further the goal of Indian self-
        determination, the Secretary shall establish and 
        implement an Indian energy resource development program 
        to assist consenting Indian tribes and tribal energy 
        resource development organizations in achieving the 
        purposes of this title.
            ``(2) In carrying out the Program, the Secretary 
        shall--
                    ``(A) provide development grants to Indian 
                tribes and tribal energy resource development 
                organizations for use in developing or 
                obtaining the managerial and technical capacity 
                needed to develop energy resources on Indian 
                land, and to properly account for resulting 
                energy production and revenues;
                    ``(B) provide grants to Indian tribes and 
                tribal energy resource development 
                organizations for use in carrying out projects 
                to promote the integration of energy resources, 
                and to process, use, or develop those energy 
                resources, on Indian land; and
                    ``(C) provide low-interest loans to Indian 
                tribes and tribal energy resource development 
                organizations for use in the promotion of 
                energy resource development on Indian land and 
                integration of energy resources.
            ``(3) There are authorized to be appropriated to 
        carry out this subsection such sums as are necessary 
        for each of fiscal years 2004 through 2014.
    ``(b) Department of Energy Indian Energy Education Planning 
and Management Assistance Program.--
            ``(1) The Director shall establish programs to 
        assist consenting Indian tribes in meeting energy 
        education, research and development, planning, and 
        management needs.
            ``(2) In carrying out this subsection, the Director 
        may provide grants, on a competitive basis, to an 
        Indian tribe or tribal energy resource development 
        organization for use in carrying out--
                    ``(A) energy, energy efficiency, and energy 
                conservation programs;
                    ``(B) studies and other activities 
                supporting tribal acquisitions of energy 
                supplies, services, and facilities;
                    ``(C) planning, construction, development, 
                operation, maintenance, and improvement of 
                tribal electrical generation, transmission, and 
                distribution facilities located on Indian land; 
                and
                    ``(D) development, construction, and 
                interconnection of electric power transmission 
                facilities located on Indian land with other 
                electric transmission facilities.
            ``(3)(A) The Director may develop, in consultation 
        with Indian tribes, a formula for providing grants 
        under this subsection.
            ``(B) In providing a grant under this subsection, 
        the Director shall give priority to an application 
        received from an Indian tribe with inadequate electric 
        service (as determined by the Director).
            ``(4) The Secretary of Energy may issue such 
        regulations as necessary to carry out this subsection.
            ``(5) There are authorized to be appropriated to 
        carry out this subsection $20,000,000 for each of 
        fiscal years 2004 through 2014.
    ``(c) Department of Energy Loan Guarantee Program.--
            ``(1) Subject to paragraph (3), the Secretary of 
        Energy may provide loan guarantees (as defined in 
        section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a)) for not more than 90 percent of the 
        unpaid principal and interest due on any loan made to 
        any Indian tribe for energy development.
            ``(2) A loan guarantee under this subsection shall 
        be made by--
                    ``(A) a financial institution subject to 
                examination by the Secretary of Energy; or
                    ``(B) an Indian tribe, from funds of the 
                Indian tribe.
            ``(3) The aggregate outstanding amount guaranteed 
        by the Secretary of Energy at any time under this 
        subsection shall not exceed $2,000,000,000.
            ``(4) The Secretary of Energy may issue such 
        regulations as the Secretary of Energy determines are 
        necessary to carry out this subsection.
            ``(5) There are authorized to be appropriated such 
        sums as are necessary to carry out this subsection, to 
        remain available until expended.
            ``(6) Not later than 1 year from the date of 
        enactment of this section, the Secretary of Energy 
        shall report to Congress on the financing requirements 
        of Indian tribes for energy development on Indian land.
    ``(d) Federal Agencies-Indian Energy Preference.--
            ``(1) In purchasing electricity or any other energy 
        product or byproduct, a Federal agency or department 
        may give preference to an energy and resource 
        production enterprise, partnership, consortium, 
        corporation, or other type of business organization the 
        majority of the interest in which is owned and 
        controlled by 1 or more Indian tribes.
            ``(2) In carrying out this subsection, a Federal 
        agency or department shall not--
                    ``(A) pay more than the prevailing market 
                price for an energy product or byproduct; or
                    ``(B) obtain less than prevailing market 
                terms and conditions.

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

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

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

    ``(a) Leases and Business Agreements.--Subject to the 
provisions of this section--
            ``(1) an Indian tribe may, at its discretion, enter 
        into a lease or business agreement for the purpose of 
        energy resource development on tribal land, including a 
        lease or business agreement for--
                    ``(A) exploration for, extraction of, 
                processing of, or other development of the 
                Indian tribe's energy mineral resources located 
                on tribal land; and
                    ``(B) construction or operation of an 
                electric generation, transmission, or 
                distribution facility located on tribal land or 
                a facility to process or refine energy 
                resources developed on tribal land; and
            ``(2) such lease or business agreement described in 
        paragraph (1) shall not require the approval of the 
        Secretary under section 2103 of the Revised Statutes 
        (25 U.S.C. 81) or any other provision of law, if--
                    ``(A) the lease or business agreement is 
                executed pursuant to a tribal energy resource 
                agreement approved by the Secretary under 
                subsection (e);
                    ``(B) the term of the lease or business 
                agreement does not exceed--
                            ``(i) 30 years; or
                            ``(ii) in the case of a lease for 
                        the production of oil resources, gas 
                        resources, or both, 10 years and as 
                        long thereafter as oil or gas is 
                        produced in paying quantities; and
                    ``(C) the Indian tribe has entered into a 
                tribal energy resource agreement with the 
                Secretary, as described in subsection (e), 
                relating to the development of energy resources 
                on tribal land (including the periodic review 
                and evaluation of the activities of the Indian 
                tribe under the agreement, to be conducted 
                pursuant to the provisions required by 
                subsection (e)(2)(D)(i)).
    ``(b) Rights-of-Way for Pipelines or Electric Transmission 
or Distribution Lines.--An Indian tribe may grant a right-of-
way over tribal land for a pipeline or an electric transmission 
or distribution line without approval by the Secretary if--
            ``(1) the right-of-way is executed in accordance 
        with a tribal energy resource agreement approved by the 
        Secretary under subsection (e);
            ``(2) the term of the right-of-way does not exceed 
        30 years;
            ``(3) the pipeline or electric transmission or 
        distribution line serves--
                    ``(A) an electric generation, transmission, 
                or distribution facility located on tribal 
                land; or
                    ``(B) a facility located on tribal land 
                that processes or refines energy resources 
                developed on tribal land; and
            ``(4) the Indian tribe has entered into a tribal 
        energy resource agreement with the Secretary, as 
        described in subsection (e), relating to the 
        development of energy resources on tribal land 
        (including the periodic review and evaluation of the 
        Indian tribe's activities under such agreement 
        described in subparagraphs (D) and (E) of subsection 
        (e)(2)).
    ``(c) Renewals.--A lease or business agreement entered into 
or a right-of-way granted by an Indian tribe under this section 
may be renewed at the discretion of the Indian tribe in 
accordance with this section.
    ``(d) Validity.--No lease, business agreement, or right-of-
way relating to the development of tribal energy resources 
pursuant to the provisions of this section shall be valid 
unless the lease, business agreement, or right-of-way is 
authorized by the provisions of a tribal energy resource 
agreement approved by the Secretary under subsection (e)(2).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On issuance of regulations under paragraph 
        (8), an Indian tribe may submit to the Secretary for 
        approval a tribal energy resource agreement governing 
        leases, business agreements, and rights-of-way under 
        this section.
            ``(2)(A) Not later than 180 days after the date on 
        which the Secretary receives a tribal energy resource 
        agreement submitted by an Indian tribe under paragraph 
        (1), or not later than 60 days after the Secretary 
        receives a revised tribal energy resource agreement 
        submitted by an Indian tribe under paragraph (4)(C), 
        (or such later date as may be agreed to by the 
        Secretary and the Indian tribe), the Secretary shall 
        approve or disapprove the tribal energy resource 
        agreement.
            ``(B) The Secretary shall approve a tribal energy 
        resource agreement submitted under paragraph (1) if--
                    ``(i) the Secretary determines that the 
                Indian tribe has demonstrated that the Indian 
                tribe has sufficient capacity to regulate the 
                development of energy resources of the Indian 
                tribe;
                    ``(ii) the tribal energy resource agreement 
                includes provisions required under subparagraph 
                (D); and
                    ``(iii) the tribal energy resource 
                agreement includes provisions that, with 
                respect to a lease, business agreement, or 
                right-of-way under this section--
                            ``(I) ensure the acquisition of 
                        necessary information from the 
                        applicant for the lease, business 
                        agreement, or right-of-way;
                            ``(II) address the term of the 
                        lease or business agreement or the term 
                        of conveyance of the right-of-way;
                            ``(III) address amendments and 
                        renewals;
                            ``(IV) address the economic return 
                        to the Indian tribe under leases, 
                        business agreements, and rights-of-way;
                            ``(V) address technical or other 
                        relevant requirements;
                            ``(VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                            ``(VII) ensure compliance with all 
                        applicable environmental laws;
                            ``(VIII) identify final approval 
                        authority;
                            ``(IX) provide for public 
                        notification of final approvals;
                            ``(X) establish a process for 
                        consultation with any affected States 
                        concerning off-reservation impacts, if 
                        any, identified pursuant to the 
                        provisions required under subparagraph 
                        (C)(i);
                            ``(XI) describe the remedies for 
                        breach of the lease, business 
                        agreement, or right-of-way;
                            ``(XII) require each lease, 
                        business agreement, and right-of-way to 
                        include a statement that, in the event 
                        that any of its provisions violates an 
                        express term or requirement set forth 
                        in the tribal energy resource agreement 
                        pursuant to which it was executed--
                                    ``(aa) such provision shall 
                                be null and void; and
                                    ``(bb) if the Secretary 
                                determines such provision to be 
                                material, the Secretary shall 
                                have the authority to suspend 
                                or rescind the lease, business 
                                agreement, or right-of-way or 
                                take other appropriate action 
                                that the Secretary determines 
                                to be in the best interest of 
                                the Indian tribe;
                            ``(XIII) require each lease, 
                        business agreement, and right-of-way to 
                        provide that it will become effective 
                        on the date on which a copy of the 
                        executed lease, business agreement, or 
                        right-of-way is delivered to the 
                        Secretary in accordance with 
                        regulations adopted pursuant to this 
                        subsection; and
                            ``(XIV) include citations to tribal 
                        laws, regulations, or procedures, if 
                        any, that set out tribal remedies that 
                        must be exhausted before a petition may 
                        be submitted to the Secretary pursuant 
                        to paragraph (7)(B).
            ``(C) Tribal energy resource agreements submitted 
        under paragraph (1) shall establish, and include 
        provisions to ensure compliance with, an environmental 
        review process that, with respect to a lease, business 
        agreement, or right-of-way under this section, provides 
        for--
                    ``(i) the identification and evaluation of 
                all significant environmental impacts (as 
                compared with a no-action alternative), 
                including effects on cultural resources;
                    ``(ii) the identification of proposed 
                mitigation;
                    ``(iii) a process for ensuring that the 
                public is informed of and has an opportunity to 
                comment on the environmental impacts of the 
                proposed action before tribal approval of the 
                lease, business agreement, or right-of-way; and
                    ``(iv) sufficient administrative support 
                and technical capability to carry out the 
                environmental review process.
            ``(D) A tribal energy resource agreement negotiated 
        between the Secretary and an Indian tribe in accordance 
        with this subsection shall include--
                    ``(i) provisions requiring the Secretary to 
                conduct a periodic review and evaluation to 
                monitor the performance of the Indian tribe's 
                activities associated with the development of 
                energy resources under the tribal energy 
                resource agreement; and
                    ``(ii) when such review and evaluation 
                result in a finding by the Secretary of 
                imminent jeopardy to a physical trust asset 
                arising from a violation of the tribal energy 
                resource agreement or applicable Federal laws, 
                provisions authorizing the Secretary to take 
                appropriate actions determined by the Secretary 
                to be necessary to protect such asset, which 
                actions may include reassumption of 
                responsibility for activities associated with 
                the development of energy resources on tribal 
                land until the violation and conditions that 
                gave rise to such jeopardy have been corrected.
            ``(E) The periodic review and evaluation described 
        in subparagraph (D) shall be conducted on an annual 
        basis, except that, after the third such annual review 
        and evaluation, the Secretary and the Indian tribe may 
        mutually agree to amend the tribal energy resource 
        agreement to authorize the review and evaluation 
        required by subparagraph (D) to be conducted once every 
        2 years.
            ``(3) The Secretary shall provide notice and 
        opportunity for public comment on tribal energy 
        resource agreements submitted for approval under 
        paragraph (1). The Secretary's review of a tribal 
        energy resource agreement under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) shall be limited to the direct effects of that 
        approval.
            ``(4) If the Secretary disapproves a tribal energy 
        resource agreement submitted by an Indian tribe under 
        paragraph (1), the Secretary shall, not later than 10 
        days after the date of disapproval--
                    ``(A) notify the Indian tribe in writing of 
                the basis for the disapproval;
                    ``(B) identify what changes or other 
                actions are required to address the concerns of 
                the Secretary; and
                    ``(C) provide the Indian tribe with an 
                opportunity to revise and resubmit the tribal 
                energy resource agreement.
            ``(5) If an Indian tribe executes a lease or 
        business agreement or grants a right-of-way in 
        accordance with a tribal energy resource agreement 
        approved under this subsection, the Indian tribe shall, 
        in accordance with the process and requirements set 
        forth in the Secretary's regulations adopted pursuant 
        to paragraph (8), provide to the Secretary--
                    ``(A) a copy of the lease, business 
                agreement, or right-of-way document (including 
                all amendments to and renewals of the 
                document); and
                    ``(B) in the case of a tribal energy 
                resource agreement or a lease, business 
                agreement, or right-of-way that permits 
                payments to be made directly to the Indian 
                tribe, information and documentation of those 
                payments sufficient to enable the Secretary to 
                discharge the trust responsibility of the 
                United States to enforce the terms of, and 
                protect the Indian tribe's rights under, the 
                lease, business agreement, or right-of-way.
            ``(6)(A) For purposes of the activities to be 
        undertaken by the Secretary pursuant to this section, 
        the Secretary shall--
                    ``(i) carry out such activities in a manner 
                consistent with the trust responsibility of the 
                United States relating to mineral and other 
                trust resources; and
                    ``(ii) act in good faith and in the best 
                interests of the Indian tribes.
            ``(B) Subject to the provisions of subsections 
        (a)(2), (b), and (c) waiving the requirement of 
        Secretarial approval of leases, business agreements, 
        and rights-of-way executed pursuant to tribal energy 
        resource agreements approved under this section, and 
        the provisions of subparagraph (D), nothing in this 
        section shall absolve the United States from any 
        responsibility to Indians or Indian tribes, including, 
        but not limited to, those which derive from the trust 
        relationship or from any treaties, statutes, and other 
        laws of the United States, Executive Orders, or 
        agreements between the United States and any Indian 
        tribe.
            ``(C) The Secretary shall continue to have a trust 
        obligation to ensure that the rights and interests of 
        an Indian tribe are protected in the event that--
                    ``(i) any other party to any such lease, 
                business agreement, or right-of-way violates 
                any applicable provision of Federal law or the 
                terms of any lease, business agreement, or 
                right-of-way under this section; or
                    ``(ii) any provision in such lease, 
                business agreement, or right-of-way violates 
                any express provision or requirement set forth 
                in the tribal energy resource agreement 
                pursuant to which the lease, business 
                agreement, or right-of-way was executed.
            ``(D) Notwithstanding subparagraph (B), the United 
        States shall not be liable to any party (including any 
        Indian tribe) for any of the negotiated terms of, or 
        any losses resulting from the negotiated terms of, a 
        lease, business agreement, or right-of-way executed 
        pursuant to and in accordance with a tribal energy 
        resource agreement approved by the Secretary under 
        paragraph (2). For the purpose of this subparagraph, 
        the term `negotiated terms' means any terms or 
        provisions that are negotiated by an Indian tribe and 
        any other party or parties to a lease, business 
        agreement, or right-of-way entered into pursuant to an 
        approved tribal energy resource agreement.
            ``(7)(A) In this paragraph, the term `interested 
        party' means any person or entity the interests of 
        which have sustained or will sustain a significant 
        adverse environmental impact as a result of the failure 
        of an Indian tribe to comply with a tribal energy 
        resource agreement of the Indian tribe approved by the 
        Secretary under paragraph (2).
            ``(B) After exhaustion of tribal remedies, and in 
        accordance with the process and requirements set forth 
        in regulations adopted by the Secretary pursuant to 
        paragraph (8), an interested party may submit to the 
        Secretary a petition to review compliance of an Indian 
        tribe with a tribal energy resource agreement of the 
        Indian tribe approved by the Secretary under paragraph 
        (2).
            ``(C)(i) Not later than 120 days after the date on 
        which the Secretary receives a petition under 
        subparagraph (B), the Secretary shall determine whether 
        the Indian tribe is not in compliance with the tribal 
        energy resource agreement, as alleged in the petition.
            ``(ii) The Secretary may adopt procedures under 
        paragraph (8) authorizing an extension of time, not to 
        exceed 120 days, for making the determination under 
        clause (i) in any case in which the Secretary 
        determines that additional time is necessary to 
        evaluate the allegations of the petition.
            ``(iii) Subject to subparagraph (D), if the 
        Secretary determines that the Indian tribe is not in 
        compliance with the tribal energy resource agreement as 
        alleged in the petition, the Secretary shall take such 
        action as is necessary to ensure compliance with the 
        provisions of the tribal energy resource agreement, 
        which action may include--
                    ``(I) temporarily suspending some or all 
                activities under a lease, business agreement, 
                or right-of-way under this section until the 
                Indian tribe or such activities are in 
                compliance with the provisions of the approved 
                tribal energy resource agreement; or
                    ``(II) rescinding approval of all or part 
                of the tribal energy resource agreement, and if 
                all of such agreement is rescinded, reassuming 
                the responsibility for approval of any future 
                leases, business agreements, or rights-of-way 
                described in subsections (a) and (b).
            ``(D) Prior to seeking to ensure compliance with 
        the provisions of the tribal energy resource agreement 
        of an Indian tribe under subparagraph (C)(iii), the 
        Secretary shall--
                    ``(i) make a written determination that 
                describes the manner in which the tribal energy 
                resource agreement has been violated;
                    ``(ii) provide the Indian tribe with a 
                written notice of the violations together with 
                the written determination; and
                    ``(iii) before taking any action described 
                in subparagraph (C)(iii) or seeking any other 
                remedy, provide the Indian tribe with a hearing 
                and a reasonable opportunity to attain 
                compliance with the tribal energy resource 
                agreement.
            ``(E) An Indian tribe described in subparagraph (D) 
        shall retain all rights to appeal as provided in 
        regulations issued by the Secretary.
            ``(8) Not later than 1 year after the date of 
        enactment of the Indian Tribal Energy Development and 
        Self-Determination Act of 2003, the Secretary shall 
        issue regulations that implement the provisions of this 
        subsection, including--
                    ``(A) criteria to be used in determining 
                the capacity of an Indian tribe described in 
                paragraph (2)(B)(i), including the experience 
                of the Indian tribe in managing natural 
                resources and financial and administrative 
                resources available for use by the Indian tribe 
                in implementing the approved tribal energy 
                resource agreement of the Indian tribe;
                    ``(B) a process and requirements in 
                accordance with which an Indian tribe may--
                            ``(i) voluntarily rescind a tribal 
                        energy resource agreement approved by 
                        the Secretary under this subsection; 
                        and
                            ``(ii) return to the Secretary the 
                        responsibility to approve any future 
                        leases, business agreements, and 
                        rights-of-way described in this 
                        subsection;
                    ``(C) provisions setting forth the scope 
                of, and procedures for, the periodic review and 
                evaluation described in subparagraphs (D) and 
                (E) of paragraph (2), including provisions for 
                review of transactions, reports, site 
                inspections, and any other review activities 
                the Secretary determines to be appropriate; and
                    ``(D) provisions defining final agency 
                actions after exhaustion of administrative 
                appeals from determinations of the Secretary 
                under paragraph (7).
    ``(f) No Effect on Other Law.--Nothing in this section 
affects the application of--
            ``(1) any Federal environment law;
            ``(2) the Surface Mining Control and Reclamation 
        Act of 1977 (30 U.S.C. 1201 et seq.); or
            ``(3) except as otherwise provided in this title, 
        the Indian Mineral Development Act of 1982 (25 U.S.C. 
        2101 et seq.) and the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary such sums as are 
necessary for each of fiscal years 2004 through 2014 to 
implement the provisions of this section and to make grants or 
provide other appropriate assistance to Indian tribes to assist 
the Indian tribes in developing and implementing tribal energy 
resource agreements in accordance with the provisions of this 
section.

``SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW.

    ``(a) In General.--The Secretary shall conduct a review of 
all activities being conducted under the Indian Mineral 
Development Act of 1982 (25 U.S.C. 2101 et seq.) as of that 
date.
    ``(b) Report.--Not later than 1 year after the date of 
enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary shall submit to 
Congress a report that includes--
            ``(1) the results of the review;
            ``(2) recommendations to ensure that Indian tribes 
        have the opportunity to develop Indian energy 
        resources; and
            ``(3) an analysis of the barriers to the 
        development of energy resources on Indian land 
        (including legal, fiscal, market, and other barriers), 
        along with recommendations for the removal of those 
        barriers.

``SEC. 2606. 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 are appropriate, 
including administration of programs of the Bonneville Power 
Administration and the Western Area Power Administration, in 
accordance with this section.
    ``(c) Action by the Administrator.--In carrying out this 
section, and in accordance with existing law--
            ``(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 pay more than 
        the prevailing market price for an energy product nor 
        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 by the Secretary of Energy using 
nonreimbursable funds appropriated for that purpose, or by the 
applicable Indian tribes.
    ``(e) Power Allocation Study.--Not later than 2 years after 
the date of enactment of the Indian Tribal Energy Development 
and Self-Determination Act of 2003, the Secretary of Energy 
shall submit to Congress a report that--
            ``(1) describes the use by Indian tribes of Federal 
        power allocations of the Western Area Power 
        Administration (or power sold by the Southwestern Power 
        Administration) and the Bonneville Power Administration 
        to or for the benefit of Indian tribes in service areas 
        of those administrations; 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 other power marketing 
                administrations; 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, which shall remain available until expended and shall 
not be reimbursable.

``SEC. 2607. 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 would use 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 the blending of 
        wind energy and hydropower generated from the Missouri 
        River dams operated by the Army Corps of Engineers;
            ``(2) review historical and projected requirements 
        for firming power and the 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 2003, the Secretary and 
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 
        that could 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 
                or benefits to be realized through such a 
                Federal-tribal partnership; and
                    ``(B) the manner in which such a 
                partnership could contribute to the energy 
                security of the United States.
    ``(d) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this section 
        $500,000, 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. Indian mineral development review.
  ``Sec. 2606. Federal Power Marketing Administrations.
  ``Sec. 2607. Wind and hydropower feasibility study.''.

SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT.

    The Dine Power Authority, an enterprise of the Navajo 
Nation, shall be eligible to receive grants and other 
assistance as authorized by section 217 of the Department of 
Energy Organization Act, as added by section 502 of this title, 
and section 2602 of the Energy Policy Act of 1992, as amended 
by this title, for activities associated with the development 
of a transmission line from the Four Corners Area to southern 
Nevada, including related power generation opportunities.

SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

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

SEC. 506. CONSULTATION WITH INDIAN TRIBES.

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

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

SEC. 601. SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson 
Amendments Act of 2003''.

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, 2023''.
    (b) Indemnification of Department of Energy Contractors.--
Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(d)(1)(A)) is amended by striking ``December 31, 
2004'' and inserting ``December 31, 2023''.
    (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, 2023''.

SEC. 603. MAXIMUM ASSESSMENT.

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

SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy Contractors.--
Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(d)) is amended by striking paragraph (2) and inserting the 
following:
    ``(2) In an agreement of indemnification entered into under 
paragraph (1), the Secretary--
            ``(A) may require the contractor to provide and 
        maintain financial protection of such a type and in 
        such amounts as the Secretary shall determine to be 
        appropriate to cover public liability arising out of or 
        in connection with the contractual activity; and
            ``(B) shall indemnify the persons indemnified 
        against such liability above the amount of the 
        financial protection required, in the amount of 
        $10,000,000,000 (subject to adjustment for inflation 
        under subsection t.), in the aggregate, for all persons 
        indemnified in connection with the contract and for 
        each nuclear incident, including such legal costs of 
        the contractor as are approved by the Secretary.''.
    (b) Contract Amendments.--Section 170 d. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)) is further amended by 
striking paragraph (3) and inserting the following--
    ``(3) All agreements of indemnification under which the 
Department of Energy (or its predecessor agencies) may be 
required to indemnify any person under this section shall be 
deemed to be amended, on the date of enactment of the Price-
Anderson Amendments Act of 2003, to reflect the amount of 
indemnity for public liability and any applicable financial 
protection required of the contractor under this subsection.''.
    (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
            (1) by striking ``the maximum amount of financial 
        protection required under subsection b. or''; and
            (2) by striking ``paragraph (3) of subsection d., 
        whichever amount is more'' and inserting ``paragraph 
        (2) of subsection d.''.

SEC. 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, 2019''.

SEC. 607. INFLATION ADJUSTMENT.

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

SEC. 608. TREATMENT OF MODULAR REACTORS.

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

SEC. 609. APPLICABILITY.

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

SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF 
                    LIABILITY FOR CERTAIN FOREIGN INCIDENTS.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 
2210) is amended by adding at the end the following new 
subsection:
    ``u. Prohibition on Assumption of Liability for Certain 
Foreign Incidents.--Notwithstanding this section or any other 
provision of law, no officer of the United States or of any 
department, agency, or instrumentality of the United States 
Government may enter into any contract or other arrangement, or 
into any amendment or modification of a contract or other 
arrangement, the purpose or effect of which would be to 
directly or indirectly impose liability on the United States 
Government, or any department, agency, or instrumentality of 
the United States Government, or to otherwise directly or 
indirectly require an indemnity by the United States 
Government, for nuclear incidents occurring in connection with 
the design, construction, or operation of a production facility 
or utilization facility in any country whose government has 
been identified by the Secretary of State as engaged in state 
sponsorship of terrorist activities (specifically including any 
country the government of which, as of September 11, 2001, had 
been determined by the Secretary of State under section 620A(a) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
section 6(j)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export 
Control Act (22 U.S.C. 2780(d)) to have repeatedly provided 
support for acts of international terrorism). This subsection 
shall not apply to nuclear incidents occurring as a result of 
missions, carried out under the direction of the Secretary of 
Energy, the Secretary of Defense, or the Secretary of State, 
that are necessary to safely secure, store, transport, or 
remove nuclear materials for nuclear safety or nonproliferation 
purposes.''.

SEC. 611. CIVIL PENALTIES.

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

                  Subtitle B--General Nuclear Matters

SEC. 621. LICENSES.

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

SEC. 622. NRC TRAINING PROGRAM.

    (a) In General.--In order to maintain the human resource 
investment and infrastructure of the United States in the 
nuclear sciences, health physics, and engineering fields, in 
accordance with the statutory authorities of the Nuclear 
Regulatory Commission relating to the civilian nuclear energy 
program, the Nuclear Regulatory Commission shall carry out a 
training and fellowship program to address shortages of 
individuals with critical nuclear safety regulatory skills.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to the Nuclear Regulatory Commission to 
        carry out this section $1,000,000 for each of fiscal 
        years 2004 through 2008.
            (2) Availability.--Funds made available under 
        paragraph (1) shall remain available until expended.

SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.

    Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 
2201(w)) is amended--
            (1) by striking ``for or is issued'' and all that 
        follows through ``1702'' and inserting ``to the 
        Commission for, or is issued by the Commission, a 
        license or certificate'';
            (2) by striking ``483a'' and inserting ``9701''; 
        and
            (3) by striking ``, of applicants for, or holders 
        of, such licenses or certificates''.

SEC. 624. ELIMINATION OF PENSION OFFSET.

    Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 
2201) is amended by adding at the end the following:
    ``y. Exempt from the application of sections 8344 and 8468 
of title 5, United States Code, an annuitant who was formerly 
an employee of the Commission who is hired by the Commission as 
a consultant, if the Commission finds that the annuitant has a 
skill that is critical to the performance of the duties of the 
Commission.''.

SEC. 625. ANTITRUST REVIEW.

    Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
2135(c)) is amended by adding at the end the following:
    ``(9) Applicability.--This subsection does not apply to an 
application for a license to construct or operate a utilization 
facility or production facility under section 103 or 104 b. 
that is filed on or after the date of enactment of this 
paragraph.''.

SEC. 626. DECOMMISSIONING.

    Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C. 
2201(i)) is amended--
            (1) by striking ``and (3)'' and inserting ``(3)''; 
        and
            (2) by inserting before the semicolon at the end 
        the following: ``, and (4) to ensure that sufficient 
        funds will be available for the decommissioning of any 
        production or utilization facility licensed under 
        section 103 or 104 b., including standards and 
        restrictions governing the control, maintenance, use, 
        and disbursement by any former licensee under this Act 
        that has control over any fund for the decommissioning 
        of the facility''.

SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.

    The Department of Energy shall not, except as required 
under a contract entered into before the date of enactment of 
this Act, reimburse any contractor or subcontractor of the 
Department for any legal fees or expenses incurred with respect 
to a complaint subsequent to--
            (1) an adverse determination on the merits with 
        respect to such complaint against the contractor or 
        subcontractor by the Director of the Department of 
        Energy's Office of Hearings and Appeals pursuant to 
        part 708 of title 10, Code of Federal Regulations, or 
        by a Department of Labor Administrative Law Judge 
        pursuant to section 211 of the Energy Reorganization 
        Act of 1974 (42 U.S.C. 5851); or
            (2) an adverse final judgment by any State or 
        Federal court with respect to such complaint against 
        the contractor or subcontractor for wrongful 
        termination or retaliation due to the making of 
        disclosures protected under chapter 12 of title 5, 
        United States Code, section 211 of the Energy 
        Reorganization Act of 1974 (42 U.S.C. 5851), or any 
        comparable State law,
unless the adverse determination or final judgment is reversed 
upon further administrative or judicial review.

SEC. 628. DECOMMISSIONING PILOT PROGRAM.

    (a) Pilot Program.--The Secretary of Energy shall establish 
a decommissioning pilot program to 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 August 31, 
1998, Department of Energy report on the reactor.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Energy to carry out this 
section $16,000,000.

SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COMMERCIAL NUCLEAR ENERGY 
                    GENERATION FACILITIES AT EXISTING DEPARTMENT OF 
                    ENERGY SITES.

    Not later than 1 year after the date of the enactment of 
this Act, the Secretary of Energy shall submit to Congress a 
report on the feasibility of developing commercial nuclear 
energy generation facilities at Department of Energy sites in 
existence on the date of enactment of this Act.

SEC. 630. URANIUM SALES.

    (a) Sales, Transfers, and Services.--Section 3112 of the 
USEC Privatization Act (42 U.S.C. 2297h-10) is amended by 
striking subsections (d), (e), and (f) and inserting the 
following:
    ``(3) The Secretary may transfer to the Corporation, 
notwithstanding subsections (b)(2) and (d), natural uranium in 
amounts sufficient to fulfill the Department of Energy's 
commitments under Article 4(B) of the Agreement between the 
Department and the Corporation dated June 17, 2002.
    ``(d) Inventory Sales.--(1) In addition to the transfers 
and sales authorized under subsections (b) and (c) and under 
paragraph (5) of this subsection, the United States Government 
may transfer or sell uranium in any form subject to paragraphs 
(2), (3), and (4).
    ``(2) Except as provided in subsections (b) and (c) and 
paragraph (5) of this subsection, no sale or transfer of 
uranium shall be made under this subsection by the United 
States Government unless--
            ``(A) the President determines that the material is 
        not necessary for national security needs and the sale 
        or transfer has no adverse impact on implementation of 
        existing government-to-government agreements;
            ``(B) the price paid to the appropriate Federal 
        agency, if the transaction is a sale, will not be less 
        than the fair market value of the material; and
            ``(C) the sale or transfer to commercial nuclear 
        power end users is made pursuant to a contract of at 
        least 3 years' duration.
    ``(3) Except as provided in paragraph (5), the United 
States Government shall not make any transfer or sale of 
uranium in any form under this subsection that would cause the 
total amount of uranium transferred or sold pursuant to this 
subsection that is delivered for consumption by commercial 
nuclear power end users to exceed--
            ``(A) 3,000,000 pounds of 
        U
3
O
8
 equivalent in fiscal year 
        2004, 2005, 2006, 2007, 2008, or 2009;
            ``(B) 5,000,000 pounds of 
        U
3
O
8
 equivalent in fiscal year 
        2010 or 2011;
            ``(C) 7,000,000 pounds of 
        U
3
O
8
 equivalent in fiscal year 
        2012; and
            ``(D) 10,000,000 pounds of 
        U
3
O
8
 equivalent in fiscal year 
        2013 or any fiscal year thereafter.
    ``(4) Except for sales or transfers under paragraph (5), 
for the purposes of this subsection, the recovery of uranium 
from uranium bearing materials transferred or sold by the 
United States Government to the domestic uranium industry shall 
be the preferred method of making uranium available. The 
recovered uranium shall be counted against the annual maximum 
deliveries set forth in this section, when such uranium is sold 
to end users.
    ``(5) The United States Government may make the following 
sales and transfers:
            ``(A) Sales or transfers to a Federal agency if the 
        material is transferred for the use of the receiving 
        agency without any resale or transfer to another entity 
        and the material does not meet commercial 
        specifications.
            ``(B) Sales or transfers to any person for national 
        security purposes, as determined by the Secretary.
            ``(C) Sales or transfers to any State or local 
        agency or nonprofit, charitable, or educational 
        institution for use other than the generation of 
        electricity for commercial use.
            ``(D) Sales or transfers to the Department of 
        Energy research reactor sales program.
            ``(E) Sales or transfers, at fair market value, for 
        emergency purposes in the event of a disruption in 
        supply to commercial nuclear power end users in the 
        United States.
            ``(F) Sales or transfers, at fair market value, for 
        use in a commercial reactor in the United States with 
        nonstandard fuel requirements.
            ``(G) Sales or transfers provided for under law for 
        use by the Tennessee Valley Authority in relation to 
        the Department of Energy's highly enriched uranium or 
        tritium programs.
    ``(6) For purposes of this subsection, the term ``United 
States Government'' does not include the Tennessee Valley 
Authority.
    ``(e) Savings Provision.--Nothing in this subchapter 
modifies the terms of the Russian HEU Agreement.
    ``(f) Services.--Notwithstanding any other provision of 
this section, if the Secretary determines that the Corporation 
has failed, or may fail, to perform any obligation under the 
Agreement between the Department of Energy and the Corporation 
dated June 17, 2002, and as amended thereafter, which failure 
could result in termination of the Agreement, the Secretary 
shall notify Congress, in such a manner that affords Congress 
an opportunity to comment, prior to a determination by the 
Secretary whether termination, waiver, or modification of the 
Agreement is required. The Secretary is authorized to take such 
action as he determines necessary under the Agreement to 
terminate, waive, or modify provisions of the Agreement to 
achieve its purposes.''.
    (b) Report.--Not later than 3 years after the date of 
enactment of this Act, the Secretary of Energy shall report to 
Congress on the implementation of this section. The report 
shall include a discussion of available excess uranium 
inventories; all sales or transfers made by the United States 
Government; the impact of such sales or transfers on the 
domestic uranium industry, the spot market uranium price, and 
the national security interests of the United States; and any 
steps taken to remediate any adverse impacts of such sales or 
transfers.

SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL 
                    DEMONSTRATION PROJECTS FOR THE URANIUM MINING 
                    INDUSTRY.

    (a) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Energy $10,000,000 for 
each of fiscal years 2004, 2005, and 2006 for--
            (1) cooperative, cost-shared agreements between the 
        Department of Energy and domestic uranium producers to 
        identify, test, and develop improved in situ leaching 
        mining technologies, including low-cost environmental 
        restoration technologies that may be applied to sites 
        after completion of in situ leaching operations; and
            (2) funding for competitively selected 
        demonstration projects with domestic uranium producers 
        relating to--
                    (A) enhanced production with minimal 
                environmental impacts;
                    (B) restoration of well fields; and
                    (C) decommissioning and decontamination 
                activities.
    (b) Domestic Uranium Producer.--For purposes of this 
section, the term ``domestic uranium producer'' has the meaning 
given that term in section 1018(4) of the Energy Policy Act of 
1992 (42 U.S.C. 2296b-7(4)), except that the term shall not 
include any producer that has not produced uranium from 
domestic reserves on or after July 30, 1998.
    (c) Limitation.--No activities funded under this section 
may be carried out in the State of New Mexico.

SEC. 632. WHISTLEBLOWER PROTECTION.

    (a) Definition of Employer.--Section 211(a)(2) of the 
Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is 
amended--
            (1) in subparagraph (C), by striking ``and'' at the 
        end;
            (2) in subparagraph (D), by striking the period at 
        the end and inserting ``; and'' and
            (3) by adding at the end the following:
                    ``(E) a contractor or subcontractor of the 
                Commission.''.-
    (b) De Novo Review.--Subsection (b) of such section 211 is 
amended by adding at the end the following new paragraph:
            ``(4) If the Secretary has not issued a final 
        decision within 540 days after the filing of a 
        complaint under paragraph (1), and there is no showing 
        that such delay is due to the bad faith of the person 
        seeking relief under this paragraph, such person may 
        bring an action at law or equity for de novo review in 
        the appropriate district court of the United States, 
        which shall have jurisdiction over such an action 
        without regard to the amount in controversy.''.

SEC. 633. MEDICAL ISOTOPE PRODUCTION.

    Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 
2160d) is amended--
            (1) in subsection a., by striking ``a. The 
        Commission'' and inserting ``a. In General.--Except as 
        provided in subsection b., the Commission'';
            (2) by redesignating subsection b. as subsection 
        c.; and
            (3) by inserting after subsection a. the following:
    ``b. Medical Isotope Production.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Highly enriched uranium.--The term 
                `highly enriched uranium' means uranium 
                enriched to include concentration of U-235 
                above 20 percent.
                    ``(B) Medical isotope.--The term `medical 
                isotope' includes Molybdenum 99, Iodine 131, 
                Xenon 133, and other radioactive materials used 
                to produce a radiopharmaceutical for 
                diagnostic, therapeutic procedures or for 
                research and development.
                    ``(C) Radiopharmaceutical.--The term 
                `radiopharmaceutical' means a radioactive 
                isotope that--
                            ``(i) contains byproduct material 
                        combined with chemical or biological 
                        material; and
                            ``(ii) is designed to accumulate 
                        temporarily in a part of the body for 
                        therapeutic purposes or for enabling 
                        the production of a useful image for 
                        use in a diagnosis of a medical 
                        condition.
                    ``(D) Recipient country.--The term 
                `recipient country' means Canada, Belgium, 
                France, Germany, and the Netherlands.
            ``(2) Licenses.--The Commission may issue a license 
        authorizing the export (including shipment to and use 
        at intermediate and ultimate consignees specified in 
        the license) to a recipient country of highly enriched 
        uranium for medical isotope production if, in addition 
        to any other requirements of this Act (except 
        subsection a.), the Commission determines that--
                    ``(A) a recipient country that supplies an 
                assurance letter to the United States 
                Government in connection with the consideration 
                by the Commission of the export license 
                application has informed the United States 
                Government that any intermediate consignees and 
                the ultimate consignee specified in the 
                application are required to use the highly 
                enriched uranium solely to produce medical 
                isotopes; and
                    ``(B) the highly enriched uranium for 
                medical isotope production will be irradiated 
                only in a reactor in a recipient country that--
                            ``(i) uses an alternative nuclear 
                        reactor fuel; or
                            ``(ii) is the subject of an 
                        agreement with the United States 
                        Government to convert to an alternative 
                        nuclear reactor fuel when alternative 
                        nuclear reactor fuel can be used in the 
                        reactor.
            ``(3) Review of physical protection requirements.--
                    ``(A) In general.--The Commission shall 
                review the adequacy of physical protection 
                requirements that, as of the date of an 
                application under paragraph (2), are applicable 
                to the transportation and storage of highly 
                enriched uranium for medical isotope production 
                or control of residual material after 
                irradiation and extraction of medical isotopes.
                    ``(B) Imposition of additional 
                requirements.--If the Commission determines 
                that additional physical protection 
                requirements are necessary (including a limit 
                on the quantity of highly enriched uranium that 
                may be contained in a single shipment), the 
                Commission shall impose such requirements as 
                license conditions or through other appropriate 
                means.
            ``(4) First report to congress.--
                    ``(A) NAS study.--The Secretary shall enter 
                into an arrangement with the National Academy 
                of Sciences to conduct a study to determine--
                            ``(i) the feasibility of procuring 
                        supplies of medical isotopes from 
                        commercial sources that do not use 
                        highly enriched uranium;
                            ``(ii) the current and projected 
                        demand and availability of medical 
                        isotopes in regular current domestic 
                        use;
                            ``(iii) the progress that is being 
                        made by the Department of Energy and 
                        others to eliminate all use of highly 
                        enriched uranium in reactor fuel, 
                        reactor targets, and medical isotope 
                        production facilities; and
                            ``(iv) the potential cost 
                        differential in medical isotope 
                        production in the reactors and target 
                        processing facilities if the products 
                        were derived from production systems 
                        that do not involve fuels and targets 
                        with highly enriched uranium.
                    ``(B) Feasibility.--For the purpose of this 
                subsection, the use of low enriched uranium to 
                produce medical isotopes shall be determined to 
                be feasible if--
                            ``(i) low enriched uranium targets 
                        have been developed and demonstrated 
                        for use in the reactors and target 
                        processing facilities that produce 
                        significant quantities of medical 
                        isotopes to serve United States needs 
                        for such isotopes;
                            ``(ii) sufficient quantities of 
                        medical isotopes are available from low 
                        enriched uranium targets and fuel to 
                        meet United States domestic needs; and
                            ``(iii) the average anticipated 
                        total cost increase from production of 
                        medical isotopes in such facilities 
                        without use of highly enriched uranium 
                        is less than 10 percent.
                    ``(C) Report by the secretary.--Not later 
                than 5 years after the date of enactment of the 
                Energy Policy Act of 2003, the Secretary shall 
                submit to Congress a report that--
                            ``(i) contains the findings of the 
                        National Academy of Sciences made in 
                        the study under subparagraph (A); and
                            ``(ii) discloses the existence of 
                        any commitments from commercial 
                        producers to provide domestic 
                        requirements for medical isotopes 
                        without use of highly enriched uranium 
                        consistent with the feasibility 
                        criteria described in subparagraph (B) 
                        not later than the date that is 4 years 
                        after the date of submission of the 
                        report.
            ``(5) Second report to congress.--If the study of 
        the National Academy of Sciences determines under 
        paragraph (4)(A)(i) that the procurement of supplies of 
        medical isotopes from commercial sources that do not 
        use highly enriched uranium is feasible, but the 
        Secretary is unable to report the existence of 
        commitments under paragraph (4)(C)(ii), not later than 
        the date that is 6 years after the date of enactment of 
        the Energy Policy Act of 2003, the Secretary shall 
        submit to Congress a report that describes options for 
        developing domestic supplies of medical isotopes in 
        quantities that are adequate to meet domestic demand 
        without the use of highly enriched uranium consistent 
        with the cost increase described in paragraph 
        (4)(B)(iii).
            ``(6) Certification.--At such time as commercial 
        facilities that do not use highly enriched uranium are 
        capable of meeting domestic requirements for medical 
        isotopes, within the cost increase described in 
        paragraph (4)(B)(iii) and without impairing the 
        reliable supply of medical isotopes for domestic 
        utilization, the Secretary shall submit to Congress a 
        certification to that effect.
            ``(7) Sunset provision.--After the Secretary 
        submits a certification under paragraph (6), the 
        Commission shall, by rule, terminate its review of 
        export license applications under this subsection.''.

SEC. 634. FERNALD BYPRODUCT MATERIAL.

    Notwithstanding any other law, the material in the concrete 
silos at the Fernald uranium processing facility managed on the 
date of enactment of this Act by the Department of Energy shall 
be considered byproduct material (as defined by section 11 
e.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e)(2))). 
The Department of Energy may dispose of the material in a 
facility regulated by the Nuclear Regulatory Commission or by 
an Agreement State. If the Department of Energy disposes of the 
material in such a facility, the Nuclear Regulatory Commission 
or the Agreement State shall regulate the material as byproduct 
material under that Act. This material shall remain subject to 
the jurisdiction of the Department of Energy until it is 
received at a commercial, Nuclear Regulatory Commission-
licensed, or Agreement State-licensed facility, at which time 
the material shall be subject to the health and safety 
requirements of the Nuclear Regulatory Commission or the 
Agreement State with jurisdiction over the disposal site.

SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.

    (a) Designation of Responsibility.--The Secretary of Energy 
shall designate an Office within the Department of Energy to 
have the responsibility for activities needed to develop a new, 
or use an existing, facility for safely disposing of all low-
level radioactive waste with concentrations of radionuclides 
that exceed the limits established by the Nuclear Regulatory 
Commission for Class C radioactive waste (referred to in this 
section as ``GTCC waste'').
    (b) Comprehensive Plan.--The Secretary of Energy shall 
develop a comprehensive plan for permanent disposal of GTCC 
waste which includes plans for a disposal facility. This plan 
shall be transmitted to Congress in a series of reports, 
including the following:
            (1) Report on short-term plan.--Not later than 180 
        days after the date of enactment of this Act, the 
        Secretary of Energy shall submit to Congress a plan 
        describing the Secretary's operational strategy for 
        continued recovery and storage of GTCC waste until a 
        permanent disposal facility is available.
            (2) Update of 1987 report.--
                    (A) In general.--Not later than 1 year 
                after the date of enactment of this Act, the 
                Secretary of Energy shall submit to Congress an 
                update of the Secretary's February 1987 report 
                submitted to Congress that made comprehensive 
                recommendations for the disposal of GTCC waste.
                    (B) Contents.--The update under this 
                paragraph shall contain--
                            (i) a detailed description and 
                        identification of the GTCC waste that 
                        is to be disposed;
                            (ii) a description of current 
                        domestic and international programs, 
                        both Federal and commercial, for 
                        management and disposition of GTCC 
                        waste;
                            (iii) an identification of the 
                        Federal and private options and costs 
                        for the safe disposal of GTCC waste;
                            (iv) an identification of the 
                        options for ensuring that, wherever 
                        possible, generators and users of GTCC 
                        waste bear all reasonable costs of 
                        waste disposal;
                            (v) an identification of any new 
                        statutory authority required for 
                        disposal of GTCC waste; and
                            (vi) in coordination with the 
                        Environmental Protection Agency and the 
                        Nuclear Regulatory Commission, an 
                        identification of any new regulatory 
                        guidance needed for the disposal of 
                        GTCC waste.
            (3) Report on cost and schedule for completion of 
        environmental impact statement and record of 
        decision.--Not later than 180 days after the date of 
        submission of the update required under paragraph (2), 
        the Secretary of Energy shall submit to Congress a 
        report containing an estimate of the cost and schedule 
        to complete a draft and final environmental impact 
        statement and to issue a record of decision for a 
        permanent disposal facility, utilizing either a new or 
        existing facility, for GTCC waste.

SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR 
                    TERRORISM.

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

SEC. 637. URANIUM ENRICHMENT FACILITIES.

    (a) Nuclear Regulatory Commission Review of Applications.--
            (1) In general.--In order to facilitate a timely 
        review and approval of an application in a proceeding 
        for a license for the construction and operation of a 
        uranium enrichment facility under sections 53 and 63 of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2073, 2093) 
        (referred to in this subsection as a ``covered 
        proceeding''), the Nuclear Regulatory Commission shall, 
        not later than 30 days after the receipt of the 
        application, establish, by order, the schedule for the 
        conduct of any hearing that may be requested by any 
        person whose interest may be affected by the covered 
        proceeding.
            (2) Final agency decision.--The schedule shall 
        provide that a final decision by the Commission on the 
        application shall be made not later than the date that 
        is 2 years after the date of submission of the 
        application by the applicant.
            (3) Compliance with schedule.--
                    (A) In general.--The Commission shall 
                establish a process to assess compliance with 
                the schedule established under paragraph (1) on 
                an ongoing basis during the course of the 
                review of the application, including ensuring 
                compliance with schedules and milestones that 
                are established for the conduct of any covered 
                proceeding by the Atomic Safety and Licensing 
                Board.
                    (B) Report.--The Commission shall submit to 
                Congress on a bimonthly basis a report 
                describing the status of compliance with the 
                schedule established under paragraph (1), 
                including a description of the status of 
                actions required to be completed pursuant to 
                the schedule by officers and employees of--
                            (i) the Commission in undertaking 
                        the safety and environmental review of 
                        applications; and
                            (ii) the Atomic Safety and 
                        Licensing Board in the conduct of any 
                        covered proceeding.
            (4) Environmental review.--
                    (A) In general.--In evaluating an 
                application under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 
                licensing of a facility in a covered 
                proceeding, the Commission shall limit the 
                consideration of need to whether the licensing 
                of the facility would advance the national 
                interest of encouraging in the United States--
                            (i) additional secure, reliable 
                        uranium enrichment capacity;
                            (ii) diverse supplies and suppliers 
                        of uranium enrichment capacity; and
                            (iii) the deployment of advanced 
                        centrifuge enrichment technology.
                    (B) Comment.--In carrying out subparagraph 
                (A), the Commission shall consider and solicit 
                the views of other affected Federal agencies.
                    (C) Atomic safety and licensing board.--
                            (i) In general.--Except as provided 
                        in clause (ii), in any covered 
                        proceeding, the Commission shall allow 
                        the litigation and resolution by the 
                        Atomic Safety and Licensing Board of 
                        issues arising under the National 
                        Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.), on the basis of 
                        information submitted by the applicant 
                        in its environmental report, prior to 
                        publication of any required 
                        environmental impact statement.
                            (ii) Exceptions.--On the 
                        publication of any required 
                        environmental impact statement, issues 
                        may be proffered for resolution by the 
                        Atomic Safety and Licensing Board only 
                        if information or conclusions in the 
                        environmental impact statement differ 
                        significantly from the information or 
                        conclusions in the environmental report 
                        submitted by the applicant.
                    (D) Environmental justice.--In a covered 
                proceeding, the Commission shall apply the 
                criteria in Appendix C of the final report 
                entitled ``Environmental Review Guidance for 
                Licensing Actions Associated with NMSS 
                Programs'' (NUREG-1748), published in August 
                2003, in any required review of environmental 
                justice.
            (5) Low-level waste.--In any covered proceeding, 
        the Commission shall--
                    (A) deem the obligation of the Secretary of 
                Energy pursuant to section 3113 of the USEC 
                Privitization Act (42 U.S.C. 2297 h-11) to 
                constitute a plausible strategy with regard to 
                the disposition of depleted uranium generated 
                by such facility; and
                    (B) treat any residual material that 
                remains following the extraction of any usable 
                resource value from depleted uranium as low-
                level radioactive waste under part 61 of title 
                10, Code of Federal Regulations.
            (6) Adjudicatory hearing on licensing of uranium 
        enrichment facilities.--Section 193(b) of the Atomic 
        Energy Act of 1954 (42 U.S.C. 2243(b)) is amended by 
        striking paragraph (2) and inserting the following:
            ``(2) Timing.--On the issuance of a final decision 
        on the application by the Atomic Safety and Licensing 
        Board, the Commission shall issue and make immediately 
        effective any license for the construction and 
        operation of a uranium enrichment facility under 
        sections 53 and 63, on a determination by the 
        Commission that the issuance of the license would not 
        cause irreparable injury to the public health and 
        safety or the common defense and security, 
        notwithstanding the pendency before the Commission of 
        any appeal or petition for review of any decision of 
        the Atomic Safety and Licensing Board.''.
    (b) Department of Energy Responsibilities.--
            (1) In general.--Not later than 180 days after a 
        request is made to the Secretary of Energy by an 
        applicant for or recipient of a license for a uranium 
        enrichment facility under section 53, 63, or 193 of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2073, 2093, 2243), 
        the Secretary shall enter into a memorandum of 
        agreement with the applicant or licensee that provides 
        a schedule for the transfer to the Secretary, not later 
        than 5 years after the generation of any depleted 
        uranium hexafluoride, of title and possession of the 
        depleted uranium hexafluoride to be generated by the 
        applicant or licensee.
            (2) Cost.--
                    (A) In general.--Subject to subparagraphs 
                (B) and (C), the memorandum of agreement shall 
                specify the cost to be assessed by the 
                Secretary for the transfer to the Secretary of 
                the depleted uranium hexafluoride.
                    (B) Nondiscriminatory basis.--The cost 
                shall be determined by the Secretary on a 
                nondiscriminatory basis.
                    (C) Cost.--Taking into account the physical 
                and chemical characteristics of such depleted 
                uranium hexafluoride, the cost shall not exceed 
                the cost assessed by the Secretary for the 
                acceptance of depleted uranium hexafluoride 
                under--
                            (i) the memorandum of agreement 
                        between the United States Department of 
                        Energy and the United States Enrichment 
                        Corporation Relating to Depleted 
                        Uranium, dated June 30, 1998; and
                            (ii) the Agreement Between the U.S. 
                        Department of Energy and USEC Inc., 
                        dated June 17, 2002.

SEC. 638. NATIONAL URANIUM STOCKPILE.

    (a) Stockpile Creation.--The Secretary of Energy may create 
a national low-enriched uranium stockpile with the goals to--
            (1) enhance national energy security; and
            (2) reduce global proliferation threats.
    (b) Source of Material.--The Secretary shall obtain 
material for the stockpile from--
            (1) material derived from blend-down of Russian 
        highly enriched uranium derived from weapons materials; 
        and
            (2) domestically mined and enriched uranium.
    (c) Limitation on Sales or Transfers.--Sales or transfer of 
materials in the stockpile shall occur pursuant to section 3112 
of the USEC Privitization Act (42 U.S.C. 2297h-10), as amended 
by section 630 of this Act.

       Subtitle C--Advanced Reactor Hydrogen Cogeneration Project

SEC. 651. PROJECT ESTABLISHMENT.

    The Secretary of Energy (in this subtitle referred to as 
the ``Secretary'') is directed to establish an Advanced Reactor 
Hydrogen Cogeneration Project.

SEC. 652. PROJECT DEFINITION.

    The project shall consist of the research, development, 
design, construction, and operation of a hydrogen production 
cogeneration research facility that, relative to the current 
commercial reactors, enhances safety features, reduces waste 
production, enhances thermal efficiencies, increases 
proliferation resistance, and has the potential for improved 
economics and physical security in reactor siting. This 
facility shall be constructed so as to enable research and 
development on advanced reactors of the type selected and on 
alternative approaches for reactor-based production of 
hydrogen.

SEC. 653. PROJECT MANAGEMENT.

    (a) Management.--The project shall be managed within the 
Department by the Office of Nuclear Energy, Science, and 
Technology.
    (b) Lead Laboratory.--The lead laboratory for the project, 
providing the site for the reactor construction, shall be the 
Idaho National Engineering and Environmental Laboratory (in 
this subtitle referred to as ``INEEL'').
    (c) Steering Committee.--The Secretary shall establish a 
national steering committee with membership from the national 
laboratories, universities, and industry to provide advice to 
the Secretary and the Director of the Office of Nuclear Energy, 
Science, and Technology on technical and program management 
aspects of the project.
    (d) Collaboration.--Project activities shall be conducted 
at INEEL, other national laboratories, universities, domestic 
industry, and international partners.

SEC. 654. PROJECT REQUIREMENTS.

    (a) Research and Development.--
            (1) In general.--The project shall include 
        planning, research and development, design, and 
        construction of an advanced, next-generation, nuclear 
        energy system suitable for enabling further research 
        and development on advanced reactor technologies and 
        alternative approaches for reactor-based generation of 
        hydrogen.
            (2) Reactor test capabilities at ineel.--The 
        project shall utilize, where appropriate, extensive 
        reactor test capabilities resident at INEEL.
            (3) Alternatives.--The project shall be designed to 
        explore technical, environmental, and economic 
        feasibility of alternative approaches for reactor-based 
        hydrogen production.
            (4) Industrial lead.--The industrial lead for the 
        project shall be a company incorporated in the United 
        States.
    (b) International Collaboration.--
            (1) In general.--The Secretary shall seek 
        international cooperation, participation, and financial 
        contribution in this project.
            (2) Assistance from international partners.--The 
        Secretary may contract for assistance from specialists 
        or facilities from member countries of the Generation 
        IV International Forum, the Russian Federation, or 
        other international partners where such specialists or 
        facilities provide access to cost-effective and 
        relevant skills or test capabilities.
            (3) Generation iv international forum.--
        International activities shall be coordinated with the 
        Generation IV International Forum.
            (4) Generation iv nuclear energy systems program.--
        The Secretary may combine this project with the 
        Generation IV Nuclear Energy Systems Program.
    (c) Demonstration.--The overall project, which may involve 
demonstration of selected project objectives in a partner 
nation, must demonstrate both electricity and hydrogen 
production and may provide flexibility, where technically and 
economically feasible in the design and construction, to enable 
tests of alternative reactor core and cooling configurations.
    (d) Partnerships.--The Secretary shall establish cost-
shared partnerships with domestic industry or international 
participants for the research, development, design, 
construction, and operation of the research facility, and 
preference in determining the final project structure shall be 
given to an overall project which retains United States 
leadership while maximizing cost sharing opportunities and 
minimizing Federal funding responsibilities.
    (e) Target Date.--The Secretary shall select technologies 
and develop the project to provide initial testing of either 
hydrogen production or electricity generation by 2010, or 
provide a report to Congress explaining why this date is not 
feasible.
    (f) Waiver of Construction Timelines.--The Secretary is 
authorized to conduct the Advanced Reactor Hydrogen 
Cogeneration Project without the constraints of DOE Order 
413.3, relating to program and project management for the 
acquisition of capital assets, as necessary to meet the 
specified operational date.
    (g) Competition.--The Secretary may fund up to 2 teams for 
up to 1 year to develop detailed proposals for competitive 
evaluation and selection of a single proposal and concept for 
further progress. The Secretary shall define the format of the 
competitive evaluation of proposals.
    (h) Use of Facilities.--Research facilities in industry, 
national laboratories, or universities either within the United 
States or with cooperating international partners may be used 
to develop the enabling technologies for the research facility. 
Utilization of domestic university-based facilities shall be 
encouraged to provide educational opportunities for student 
development.
    (i) Role of Nuclear Regulatory Commission.--
            (1) In general.--The Nuclear Regulatory Commission 
        shall have licensing and regulatory authority for any 
        reactor authorized under this subtitle, pursuant to 
        section 202 of the Energy Reorganization Act of 1974 
        (42 U.S.C. 5842).
            (2) Risk-based criteria.--The Secretary shall seek 
        active participation of the Nuclear Regulatory 
        Commission throughout the project to develop risk-based 
        criteria for any future commercial development of a 
        similar reactor architecture.
    (j) Report--The Secretary shall develop and transmit to 
Congress a comprehensive project plan not later than April 30, 
2004. The project plan shall be updated annually with each 
annual budget submission.

SEC. 655. AUTHORIZATION OF APPROPRIATIONS.

    (a) Research, Development, and Design Programs.--The 
following sums are authorized to be appropriated to the 
Secretary for all activities under this subtitle except for 
construction activities described in subsection (b):
            (1) For fiscal year 2004, $35,000,000.
            (2) For each of fiscal years 2005 through 2008, 
        $150,000,000.
            (3) For fiscal years beyond 2008, such sums as are 
        necessary.
    (b) Construction.--There are authorized to be appropriated 
to the Secretary for all project-related construction 
activities, to be available until expended, $500,000,000.

                      Subtitle D--Nuclear Security

SEC. 661. NUCLEAR FACILITY THREATS.

    (a) Study.--The President, in consultation with the Nuclear 
Regulatory Commission (referred to in this subtitle as the 
``Commission'') and other appropriate Federal, State, and local 
agencies and private entities, shall conduct a study to 
identify the types of threats that pose an appreciable risk to 
the security of the various classes of facilities licensed by 
the Commission under the Atomic Energy Act of 1954 (42 U.S.C. 
2011 et seq.). Such study shall take into account, but not be 
limited to--
            (1) the events of September 11, 2001;
            (2) an assessment of physical, cyber, biochemical, 
        and other terrorist threats;
            (3) the potential for attack on facilities by 
        multiple coordinated teams of a large number of 
        individuals;
            (4) the potential for assistance in an attack from 
        several persons employed at the facility;
            (5) the potential for suicide attacks;
            (6) the potential for water-based and air-based 
        threats;
            (7) the potential use of explosive devices of 
        considerable size and other modern weaponry;
            (8) the potential for attacks by persons with a 
        sophisticated knowledge of facility operations;
            (9) the potential for fires, especially fires of 
        long duration;
            (10) the potential for attacks on spent fuel 
        shipments by multiple coordinated teams of a large 
        number of individuals;
            (11) the adequacy of planning to protect the public 
        health and safety at and around nuclear facilities, as 
        appropriate, in the event of a terrorist attack against 
        a nuclear facility; and
            (12) the potential for theft and diversion of 
        nuclear materials from such facilities.
    (b) Summary and Classification Report.--Not later than 180 
days after the date of the enactment of this Act, the President 
shall transmit to Congress and the Commission a report--
            (1) summarizing the types of threats identified 
        under subsection (a); and
            (2) classifying each type of threat identified 
        under subsection (a), in accordance with existing laws 
        and regulations, as either--
                    (A) involving attacks and destructive acts, 
                including sabotage, directed against the 
                facility by an enemy of the United States, 
                whether a foreign government or other person, 
                or otherwise falling under the responsibilities 
                of the Federal Government; or
                    (B) involving the type of risks that 
                Commission licensees should be responsible for 
                guarding against.
    (c) Federal Action Report.--Not later than 90 days after 
the date on which a report is transmitted under subsection (b), 
the President shall transmit to Congress a report on actions 
taken, or to be taken, to address the types of threats 
identified under subsection (b)(2)(A), including identification 
of the Federal, State, and local agencies responsible for 
carrying out the obligations and authorities of the United 
States. Such report may include a classified annex, as 
appropriate.
    (d) Regulations.--Not later than 180 days after the date on 
which a report is transmitted under subsection (b), the 
Commission may revise, by rule, the design basis threats issued 
before the date of enactment of this section as the Commission 
considers appropriate based on the summary and classification 
report.
    (e) Physical Security Program.--The Commission shall 
establish an operational safeguards response evaluation program 
that ensures that the physical protection capability and 
operational safeguards response for sensitive nuclear 
facilities, as determined by the Commission consistent with the 
protection of public health and the common defense and 
security, shall be tested periodically through Commission 
approved or designed, observed, and evaluated force-on-force 
exercises to determine whether the ability to defeat the design 
basis threat is being maintained. For purposes of this 
subsection, the term ``sensitive nuclear facilities'' includes 
at a minimum commercial nuclear power plants and category I 
fuel cycle facilities.
    (f) Control of Information.--Notwithstanding any other 
provision of law, the Commission may undertake any rulemaking 
under this subtitle in a manner that will fully protect 
safeguards and classified national security information.
    (g) Federal Security Coordinators.--
            (1) Regional offices.--Not later than 18 months 
        after the date of enactment of this Act, the Commission 
        shall assign a Federal security coordinator, under the 
        employment of the Commission, to each region of the 
        Commission.
            (2) Responsibilities.--The Federal security 
        coordinator shall be responsible for--
                    (A) communicating with the Commission and 
                other Federal, State, and local authorities 
                concerning threats, including threats against 
                such classes of facilities as the Commission 
                determines to be appropriate;
                    (B) ensuring that such classes of 
                facilities as the Commission determines to be 
                appropriate maintain security consistent with 
                the security plan in accordance with the 
                appropriate threat level; and
                    (C) assisting in the coordination of 
                security measures among the private security 
                forces at such classes of facilities as the 
                Commission determines to be appropriate and 
                Federal, State, and local authorities, as 
                appropriate.
    (h) Training Program.--The President shall establish a 
program to provide technical assistance and training to Federal 
agencies, the National Guard, and State and local law 
enforcement and emergency response agencies in responding to 
threats against a designated nuclear facility.

SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY RECORD CHECKS.

    (a) In General.--Subsection a. of section 149 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2169(a)) is amended--
            (1) by striking ``a. The Nuclear'' and all that 
        follows through ``section 147.'' and inserting the 
        following:
    ``a. In General.--
            ``(1) Requirements.--
                    ``(A) In general.-- The Commission shall 
                require each individual or entity--
                            ``(i) that is licensed or certified 
                        to engage in an activity subject to 
                        regulation by the Commission;
                            ``(ii) that has filed an 
                        application for a license or 
                        certificate to engage in an activity 
                        subject to regulation by the 
                        Commission; or
                            ``(iii) that has notified the 
                        Commission, in writing, of an intent to 
                        file an application for licensing, 
                        certification, permitting, or approval 
                        of a product or activity subject to 
                        regulation by the Commission,
                to fingerprint each individual described in 
                subparagraph (B) before the individual is 
                permitted unescorted access or access, 
                whichever is applicable, as described in 
                subparagraph (B).
                    ``(B) Individuals required to be 
                fingerprinted.--The Commission shall require to 
                be fingerprinted each individual who--
                            ``(i) is permitted unescorted 
                        access to--
                                    ``(I) a utilization 
                                facility; or
                                    ``(II) radioactive material 
                                or other property subject to 
                                regulation by the Commission 
                                that the Commission determines 
                                to be of such significance to 
                                the public health and safety or 
                                the common defense and security 
                                as to warrant fingerprinting 
                                and background checks; or
                            ``(ii) is permitted access to 
                        safeguards information under section 
                        147.'';
            (2) by striking ``All fingerprints obtained by a 
        licensee or applicant as required in the preceding 
        sentence'' and inserting the following:
            ``(2) Submission to the attorney general.--All 
        fingerprints obtained by an individual or entity as 
        required in paragraph (1)'';
            (3) by striking ``The costs of any identification 
        and records check conducted pursuant to the preceding 
        sentence shall be paid by the licensee or applicant.'' 
        and inserting the following:
            ``(3) Costs.--The costs of any identification and 
        records check conducted pursuant to paragraph (1) shall 
        be paid by the individual or entity required to conduct 
        the fingerprinting under paragraph (1)(A).''; and
            (4) by striking ``Notwithstanding any other 
        provision of law, the Attorney General may provide all 
        the results of the search to the Commission, and, in 
        accordance with regulations prescribed under this 
        section, the Commission may provide such results to 
        licensee or applicant submitting such fingerprints.'' 
        and inserting the following:
            ``(4) Provision to individual or entity required to 
        conduct fingerprinting.--Notwithstanding any other 
        provision of law, the Attorney General may provide all 
        the results of the search to the Commission, and, in 
        accordance with regulations prescribed under this 
        section, the Commission may provide such results to the 
        individual or entity required to conduct the 
        fingerprinting under paragraph (1)(A).''.
    (b) Administration.--Subsection c. of section 149 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) is amended--
            (1) by striking ``, subject to public notice and 
        comment, regulations--'' and inserting ``requirements--
        ''; and
            (2) by striking, in paragraph (2)(B), ``unescorted 
        access to the facility of a licensee or applicant'' and 
        inserting ``unescorted access to a utilization 
        facility, radioactive material, or other property 
        described in subsection a.(1)(B)''.
    (c) Biometric Methods.--Subsection d. of section 149 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2169(d)) is redesignated 
as subsection e., and the following is inserted after 
subsection c.:
    ``d. Use of Other Biometric Methods.--The Commission may 
satisfy any requirement for a person to conduct fingerprinting 
under this section using any other biometric method for 
identification approved for use by the Attorney General, after 
the Commission has approved the alternative method by rule.''.

SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF LICENSEES AND 
                    CERTIFICATE HOLDERS OF THE COMMISSION.

    Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 
2201) is amended by adding at the end the following subsection:
            ``(z)(1) notwithstanding section 922(o), (v), and 
        (w) of title 18, United States Code, or any similar 
        provision of any State law or any similar rule or 
        regulation of a State or any political subdivision of a 
        State prohibiting the transfer or possession of a 
        handgun, a rifle or shotgun, a short-barreled shotgun, 
        a short-barreled rifle, a machinegun, a semiautomatic 
        assault weapon, ammunition for the foregoing, or a 
        large capacity ammunition feeding device, authorize 
        security personnel of licensees and certificate holders 
        of the Commission (including employees of contractors 
        of licensees and certificate holders) to receive, 
        possess, transport, import, and use 1 or more of those 
        weapons, ammunition, or devices, if the Commission 
        determines that--
                    ``(A) such authorization is necessary to 
                the discharge of the security personnel's 
                official duties; and
                    ``(B) the security personnel--
                            ``(i) are not otherwise prohibited 
                        from possessing or receiving a firearm 
                        under Federal or State laws pertaining 
                        to possession of firearms by certain 
                        categories of persons;
                            ``(ii) have successfully completed 
                        requirements established through 
                        guidelines implementing this subsection 
                        for training in use of firearms and 
                        tactical maneuvers;
                            ``(iii) are engaged in the 
                        protection of--
                                    ``(I) facilities owned or 
                                operated by a Commission 
                                licensee or certificate holder 
                                that are designated by the 
                                Commission; or
                                    ``(II) radioactive material 
                                or other property owned or 
                                possessed by a person that is a 
                                licensee or certificate holder 
                                of the Commission, or that is 
                                being transported to or from a 
                                facility owned or operated by 
                                such a licensee or certificate 
                                holder, and that has been 
                                determined by the Commission to 
                                be of significance to the 
                                common defense and security or 
                                public health and safety; and
                            ``(iv) are discharging their 
                        official duties.
            ``(2) Such receipt, possession, transportation, 
        importation, or use shall be subject to--
                    ``(A) chapter 44 of title 18, United States 
                Code, except for section 922(a)(4), (o), (v), 
                and (w);
                    ``(B) chapter 53 of title 26, United States 
                Code, except for section 5844; and
                    ``(C) a background check by the Attorney 
                General, based on fingerprints and including a 
                check of the system established under section 
                103(b) of the Brady Handgun Violence Prevention 
                Act (18 U.S.C. 922 note) to determine whether 
                the person applying for the authority is 
                prohibited from possessing or receiving a 
                firearm under Federal or State law.
            ``(3) This subsection shall become effective upon 
        the issuance of guidelines by the Commission, with the 
        approval of the Attorney General, to govern the 
        implementation of this subsection.
            ``(4) In this subsection, the terms ``handgun'', 
        ``rifle'', ``shotgun'', ``firearm'', ``ammunition'', 
        ``machinegun'', ``semiautomatic assault weapon'', 
        ``large capacity ammunition feeding device'', ``short-
        barreled shotgun'', and ``short-barreled rifle'' shall 
        have the meanings given those terms in section 921(a) 
        of title 18, United States Code.''.

SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

    Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
2278a(a)) is amended in the first sentence by inserting ``or 
subject to the licensing authority of the Commission or to 
certification by the Commission under this Act or any other 
Act'' before the period at the end.

SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

    (a) In General.--Section 236 a. of the Atomic Energy Act of 
1954 (42 U.S.C. 2284(a)) is amended--
            (1) in paragraph (2), by striking ``storage 
        facility'' and inserting ``storage, treatment, or 
        disposal facility'';
            (2) in paragraph (3)--
                    (A) by striking ``such a utilization 
                facility'' and inserting ``a utilization 
                facility licensed under this Act''; and
                    (B) by striking ``or'' at the end;
            (3) in paragraph (4)--
                    (A) by striking ``facility licensed'' and 
                inserting ``, uranium conversion, or nuclear 
                fuel fabrication facility licensed or 
                certified''; and
                    (B) by striking the comma at the end and 
                inserting a semicolon; and
            (4) by inserting after paragraph (4) the following:
            ``(5) any production, utilization, waste storage, 
        waste treatment, waste disposal, uranium enrichment, 
        uranium conversion, or nuclear fuel fabrication 
        facility subject to licensing or certification under 
        this Act during construction of the facility, if the 
        destruction or damage caused or attempted to be caused 
        could adversely affect public health and safety during 
        the operation of the facility;
            ``(6) any primary facility or backup facility from 
        which a radiological emergency preparedness alert and 
        warning system is activated; or
            ``(7) any radioactive material or other property 
        subject to regulation by the Nuclear Regulatory 
        Commission that, before the date of the offense, the 
        Nuclear Regulatory Commission determines, by order or 
        regulation published in the Federal Register, is of 
        significance to the public health and safety or to 
        common defense and security,''.
    (b) Penalties.--Section 236 of the Atomic Energy Act of 
1954 (42 U.S.C. 2284) is amended by striking ``$10,000 or 
imprisoned for not more than 20 years, or both, and, if death 
results to any person, shall be imprisoned for any term of 
years or for life'' both places it appears and inserting 
``$1,000,000 or imprisoned for up to life without parole''.

SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.

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

``SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS.

    ``a. The Nuclear Regulatory Commission shall establish a 
system to ensure that materials described in subsection b., 
when transferred or received in the United States by any party 
pursuant to an import or export license issued pursuant to this 
Act, are accompanied by a manifest describing the type and 
amount of materials being transferred or received. Each 
individual receiving or accompanying the transfer of such 
materials shall be subject to a security background check 
conducted by appropriate Federal entities.
    ``b. Except as otherwise provided by the Commission by 
regulation, the materials referred to in subsection a. are 
byproduct materials, source materials, special nuclear 
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as defined 
in section 2(16) of the Nuclear Waste Policy Act of 1982 (42 
U.S.C. 10101(16))).''.
    (b) Regulations.--Not later than 1 year after the date of 
the enactment of this Act, and from time to time thereafter as 
it considers necessary, the Nuclear Regulatory Commission shall 
issue regulations identifying radioactive materials or classes 
of individuals that, consistent with the protection of public 
health and safety and the common defense and security, are 
appropriate exceptions to the requirements of section 170C of 
the Atomic Energy Act of 1954, as added by subsection (a) of 
this section.
    (c) Effective Date.--The amendment made by subsection (a) 
shall take effect upon the issuance of regulations under 
subsection (b), except that the background check requirement 
shall become effective on a date established by the Commission.
    (d) Effect on Other Law.--Nothing in this section or the 
amendment made by this section shall waive, modify, or affect 
the application of chapter 51 of title 49, United States Code, 
part A of subtitle V of title 49, United States Code, part B of 
subtitle VI of title 49, United States Code, and title 23, 
United States Code.
    (e) Table of Sections Amendment.--The table of sections for 
chapter 14 of the Atomic Energy Act of 1954 is amended by 
adding at the end the following new item:

``Sec. 170C. Secure transfer of nuclear materials.''.

SEC. 667. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.

    Before issuing a license for a utilization facility, the 
Nuclear Regulatory Commission shall consult with the Department 
of Homeland Security concerning the potential vulnerabilities 
of the location of the proposed facility to terrorist attack.

SEC. 668. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
such sums as are necessary to carry out this subtitle and the 
amendments made by this subtitle.
    (b) Aggregate Amount of Charges.--Section 6101(c)(2)(A) of 
the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 
2214(c)(2)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the 
        end and inserting ``; and'' and
            (3) by adding at the end the following:
                            ``(iii) amounts appropriated to the 
                        Commission for homeland security 
                        activities of the Commission for the 
                        fiscal year, except for the costs of 
                        fingerprinting and background checks 
                        required by section 149 of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2169) and 
                        the costs of conducting security 
                        inspections.''.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

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

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

SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES.

    (a) Amendments.--Section 301 of the Energy Policy Act of 
1992 (42 U.S.C. 13211) is amended--
            (1) in paragraph (3), by striking ``or a dual 
        fueled vehicle'' and inserting ``, a dual fueled 
        vehicle, or a neighborhood electric vehicle'';
            (2) in paragraph (13), by striking ``and'' at the 
        end;
            (3) in paragraph (14), by striking the period at 
        the end and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(15) the term `neighborhood electric vehicle' 
        means a motor vehicle that--
                    ``(A) meets the definition of a low-speed 
                vehicle (as defined in part 571 of title 49, 
                Code of Federal Regulations);
                    ``(B) meets the definition of a zero-
                emission vehicle (as defined in section 
                86.1702-99 of title 40, Code of Federal 
                Regulations);
                    ``(C) meets the requirements of Federal 
                Motor Vehicle Safety Standard No. 500; and
                    ``(D) has a maximum speed of not greater 
                than 25 miles per hour.''.
    (b) Credits.--Notwithstanding section 508 of the Energy 
Policy Act of 1992 (42 U.S.C. 13258) or any other provision of 
law, a neighborhood electric vehicle shall not be allocated 
credit as more than 1 vehicle for purposes of determining 
compliance with any requirement under title III or title V of 
such Act.

SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 
13258) is amended by adding at the end the following:
    ``(e) Credit for Purchase of Medium and Heavy Duty 
Dedicated Vehicles.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Heavy duty dedicated vehicle.--The 
                term `heavy duty dedicated vehicle' means a 
                dedicated vehicle that has a gross vehicle 
                weight rating of more than 14,000 pounds.
                    ``(B) Medium duty dedicated vehicle.--The 
                term `medium duty dedicated vehicle' means a 
                dedicated vehicle that has a gross vehicle 
                weight rating of more than 8,500 pounds but not 
                more than 14,000 pounds.
            ``(2) Credits for medium duty vehicles.--The 
        Secretary shall issue 2 full credits to a fleet or 
        covered person under this title, if the fleet or 
        covered person acquires a medium duty dedicated 
        vehicle.
            ``(3) Credits for heavy duty vehicles.--The 
        Secretary shall issue 3 full credits to a fleet or 
        covered person under this title, if the fleet or 
        covered person acquires a heavy duty dedicated vehicle.
            ``(4) Use of credits.--At the request of a fleet or 
        covered person allocated a credit under this 
        subsection, the Secretary shall, for the year in which 
        the acquisition of the dedicated vehicle is made, treat 
        that credit as the acquisition of 1 alternative fueled 
        vehicle that the fleet or covered person is required to 
        acquire under this title.''.

SEC. 704. INCREMENTAL COST ALLOCATION.

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

SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

    (a) Alternative Compliance.--
            (1) In general.--Title V of the Energy Policy Act 
        of 1992 (42 U.S.C. 13251 et seq.) is amended--
                    (A) by redesignating section 514 as section 
                515; and
                    (B) by inserting after section 513 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 may grant a waiver of 
the requirements of section 501 or 507(o) upon a showing that 
the fleet owned, operated, leased, or otherwise controlled by 
the State or covered person--
            ``(1) will achieve a reduction in its annual 
        consumption of petroleum fuels equal to the reduction 
        in consumption ofpetroleum that would result from 100 
percent compliance with fuel use requirements in section 501, or, for 
entities covered under section 507(o), a reduction equal to the covered 
State entity's consumption of alternative fuels if all its alternative 
fuel vehicles 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 
        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).''.
            (2) Table of contents amendment.--The table of 
        contents of the Energy Policy Act of 1992 (42 U.S.C. 
        prec. 13201) is amended by striking the item relating 
        to section 514 and inserting the following:

``Sec. 514. Alternative compliance.
``Sec. 515. Authorization of appropriations.''.

    (b) Credits.--Section 508 of the Energy Policy Act of 1992 
(42 U.S.C. 13258) (as amended by section 703) is amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) by striking subsection (a) and inserting the 
        following:
    ``(a) In General.--The Secretary shall allocate a credit to 
a fleet or covered person that is required to acquire an 
alternative fueled vehicle under this title, if that fleet or 
person acquires an alternative fueled vehicle--
            ``(1) in excess of the number that fleet or person 
        is required to acquire under this title;
            ``(2) before the date on which that fleet or person 
        is required to acquire an alternative fueled vehicle 
        under this title; or
            ``(3) that is eligible to receive credit under 
        subsection (b).
    ``(b) Maximum Available Power.--The Secretary shall 
allocate credit to a fleet under subsection (a)(3) for the 
acquisition by the fleet of a hybrid vehicle as follows:
            ``(1) For a hybrid vehicle with at least 4 percent 
        but less than 10 percent maximum available power, the 
        Secretary shall allocate 25 percent of 1 credit.
            ``(2) For a hybrid vehicle with at least 10 percent 
        but less than 20 percent maximum available power, the 
        Secretary shall allocate 50 percent of 1 credit.
            ``(3) For a hybrid vehicle with at least 20 percent 
        but less than 30 percent maximum available power, the 
        Secretary shall allocate 75 percent of 1 credit.
            ``(4) For a hybrid vehicle with 30 percent or more 
        maximum available power, the Secretary shall allocate 1 
        credit.''; and
            (3) by adding at the end the following:
    ``(g) Credit for Investment in Alternative Fuel 
Infrastructure.--
            ``(1) Definition of qualifying infrastructure.--In 
        this subsection, the term `qualifying infrastructure' 
        means--
                    ``(A) equipment required to refuel or 
                recharge alternative fueled vehicles;
                    ``(B) facilities or equipment required to 
                maintain, repair, or operate alternative fueled 
                vehicles; and
                    ``(C) such other activities as the 
                Secretary considers to constitute an 
                appropriate expenditure in support of the 
                operation, maintenance, or further widespread 
                adoption of or utilization of alternative 
                fueled vehicles.
            ``(2) Issuance of credits.--The Secretary shall 
        issue a credit to a fleet or covered person under this 
        title for investment in qualifying infrastructure if 
        the qualifying infrastructure is open to the general 
        public during regular business hours.
            ``(3) Amount.--For the purpose of credits under 
        this subsection--
                    ``(A) 1 credit shall be equal to a minimum 
                investment of $25,000 in cash or equivalent 
                expenditure, as determined by the Secretary; 
                and
                    ``(B) except in the case of a Federal or 
                State fleet, no part of the investment may be 
                provided by Federal or State funds.
            ``(4) Use of credits.--At the request of a fleet or 
        covered person allocated a credit under this 
        subsection, the Secretary shall, for the year in which 
        the investment is made, treat that credit as the 
        acquisition of 1 alternative fueled vehicle that the 
        fleet or covered person is required to acquire under 
        this title.
    ``(h) Definition of Maximum Available Power.--In this 
section, the term `maximum available power' means the quotient 
obtained by dividing--
            ``(1) the maximum power available from the energy 
        storage device of a hybrid vehicle, during a standard 
        10-second pulse power or equivalent test; by
            ``(2) the sum of--
                    ``(A) the maximum power described in 
                subparagraph (A); and
                    ``(B) the net power of the internal 
                combustion or heat engine, as determined in 
                accordance with standards established by the 
                Society of Automobile Engineers.''.
    (c) Lease Condensate Fuels.--Section 301 of the Energy 
Policy Act of 1992 (42 U.S.C. 13211) (as amended by section 
702) is amended--
            (1) in paragraph (2), by inserting ``mixtures 
        containing 50 percent or more by volume of lease 
        condensate or fuels extracted from lease condensate;'' 
        after ``liquefied petroleum gas;'';
            (2) in paragraph (14)--
                    (A) by inserting ``mixtures containing 50 
                percent or more by volume of lease condensate 
                or fuels extracted from lease condensate,'' 
                after ``liquefied petroleum gas,''; and
                    (B) by striking ``and'' at the end;
            (3) in paragraph (15), by striking the period at 
        the end and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(16) the term `lease condensate' means a mixture, 
        primarily of pentanes and heavier hydrocarbons, that is 
        recovered as a liquid from natural gas in lease 
        separation facilities.''.
    (d) Lease Condensate Use Credits.--
            (1) In general.--Title III of the Energy Policy Act 
        of 1992 (42 U.S.C. 13211 et seq.) is amended by adding 
        at the end the following:

``SEC. 313. LEASE CONDENSATE USE CREDITS.

    ``(a) In General.--Subject to subsection (d), the Secretary 
shall allocate 1 credit under this section to a fleet or 
covered person for each qualifying volume of the lease 
condensate component of fuel containing at least 50 percent 
lease condensate, or fuels extracted from lease condensate, 
after the date of enactment of this section for use by the 
fleet or covered person in vehicles owned or operated by the 
fleet or covered person that weigh more than 8,500 pounds gross 
vehicle weight rating.
    ``(b) Requirements.--A credit allocated under this 
section--
            ``(1) shall be subject to the same exceptions, 
        authority, documentation, and use of credits that are 
        specified for qualifying volumes of biodiesel in 
        section 312; and
            ``(2) shall not be considered a credit under 
        section 508.
    ``(c) Regulation.--
            ``(1) In general.--Subject to subsection (d), not 
        later than January 1, 2004, after the collection of 
        appropriate information and data that consider usage 
        options,uses in other industries, products, or 
processes, potential volume capacities, costs, air emissions, and fuel 
efficiencies, the Secretary shall issue a regulation establishing 
requirements and procedures for the implementation of this section.
            ``(2) Qualifying volume.--The regulation shall 
        include a determination of an appropriate qualifying 
        volume for lease condensate, except that in no case 
        shall the Secretary determine that the qualifying 
        volume for lease condensate is less than 1,125 gallons.
    ``(d) Applicability.--This section applies unless the 
Secretary finds that the use of lease condensate as an 
alternative fuel would adversely affect public health or safety 
or ambient air quality or the environment.''.
            (2) Table of contents amendment.--The table of 
        contents of the Energy Policy Act of 1992 (42 U.S.C. 
        prec. 13201) is amended by adding at the end of the 
        items relating to title III the following:

``Sec. 313. Lease condensate use credits.''.

    (e) Emergency Exemption.--Section 301 of the Energy Policy 
Act of 1992 (42 U.S.C. 13211) (as amended by section 702 and 
this section) is amended in paragraph (9)(E) by inserting 
before the semicolon at the end ``, including vehicles directly 
used in the emergency repair of transmission lines and in the 
restoration of electricity service following power outages, as 
determined by the Secretary''.

SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary of Energy shall 
complete a study to determine the effect that titles III, IV, 
and V of the Energy Policy Act of 1992 (42 U.S.C. 13211 et 
seq.) have had on--
            (1) the development of alternative fueled vehicle 
        technology;
            (2) the availability of that technology in the 
        market; and
            (3) the cost of alternative fueled vehicles.
    (b) Topics.--As part of the study under subsection (a), the 
Secretary shall specifically identify--
            (1) the number of alternative fueled vehicles 
        acquired by fleets or covered persons required to 
        acquire alternative fueled vehicles;
            (2) the quantity, by type, of alternative fuel 
        actually used in alternative fueled vehicles acquired 
        by fleets or covered persons;
            (3) the quantity of petroleum displaced by the use 
        of alternative fuels in alternative fueled vehicles 
        acquired by fleets or covered persons;
            (4) the direct and indirect costs of compliance 
        with requirements under titles III, IV, and V of the 
        Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.), 
        including--
                    (A) vehicle acquisition requirements 
                imposed on fleets or covered persons;
                    (B) administrative and recordkeeping 
                expenses;
                    (C) fuel and fuel infrastructure costs;
                    (D) associated training and employee 
                expenses; and
                    (E) any other factors or expenses the 
                Secretary determines to be necessary to compile 
                reliable estimates of the overall costs and 
                benefits of complying with programs under those 
                titles for fleets, covered persons, and the 
                national economy;
            (5) the existence of obstacles preventing 
        compliance with vehicle acquisition requirements and 
        increased use of alternative fuel in alternative fueled 
        vehicles acquired by fleets or covered persons; and
            (6) the projected impact of amendments to the 
        Energy Policy Act of 1992 made by this title.
    (c) Report.--Upon completion of the study under this 
section, the Secretary shall submit to Congress a report that 
describes the results of the study and includes any 
recommendations of the Secretary for legislative or 
administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV and V of the Energy 
Policy Act of 1992 (42 U.S.C. 13211 et seq.).

SEC. 707. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUELED VEHICLE 
                    PURCHASING REQUIREMENTS.

    Section 310(b)(1) of the Energy Policy Act of 1992 (42 
U.S.C. 13218(b)(1)) is amended by striking ``1 year after the 
date of enactment of this subsection'' and inserting ``February 
15, 2004''.

  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                        PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

    The Secretary of Energy shall accelerate efforts directed 
toward the improvement of batteries and other rechargeable 
energy storage systems, power electronics, hybrid systems 
integration, and other technologies for use in hybrid vehicles.

                       PART 2--ADVANCED VEHICLES

SEC. 721. DEFINITIONS.

    In this part:
            (1) Alternative fueled vehicle.--
                    (A) In general.--The term ``alternative 
                fueled vehicle'' means a vehicle propelled 
                solely on an alternative fuel (as defined in 
                section 301 of the Energy Policy Act of 1992 
                (42 U.S.C. 13211)).
                    (B) Exclusion.--The term ``alternative 
                fueled vehicle'' does not include a vehicle 
                that the Secretary determines, by regulation, 
                does not yield substantial environmental 
                benefits over a vehicle operating solely on 
                gasoline or diesel derived from fossil fuels.
            (2) Fuel cell vehicle.--The term ``fuel cell 
        vehicle'' means a vehicle propelled by an electric 
        motor powered by a fuel cell system that converts 
        chemical energy into electricity by combining oxygen 
        (from air) with hydrogen fuel that is stored on the 
        vehicle or is produced onboard by reformation of a 
        hydrocarbon fuel. Such fuel cell system may or may not 
        include the use of auxiliary energy storage systems to 
        enhance vehicle performance.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' 
        means a medium or heavy duty vehicle propelled by an 
        internal combustion engine or heat engine using any 
        combustible fuel and an onboard rechargeable energy 
        storage device.
            (4) Neighborhood electric vehicle.--The term 
        ``neighborhood electric vehicle'' means a motor vehicle 
        that--
                    (A) meets the definition of a low-speed 
                vehicle (as defined in part 571 of title 49, 
                Code of Federal Regulations);
                    (B) meets the definition of a zero-emission 
                vehicle (as defined in section 86.1702-99 of 
                title 40, Code of Federal Regulations);
                    (C) meets the requirements of Federal Motor 
                Vehicle Safety Standard No. 500; and
                    (D) has a maximum speed of not greater than 
                25 miles per hour.
            (5) Pilot program.--The term ``pilot program'' 
        means the competitive grant program established under 
        section 722.
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (7) Ultra-low sulfur diesel vehicle.--The term 
        ``ultra-low sulfur diesel vehicle'' means a vehicle 
        manufactured in any of model years 2003 through 2006 
        powered by a heavy-duty diesel engine that--
                    (A) is fueled by diesel fuel that contains 
                sulfur at not more than 15 parts per million; 
                and
                    (B) emits not more than the lesser of--
                            (i) for vehicles manufactured in--
                                    (I) model year 2003, 3.0 
                                grams per brake horsepower-hour 
                                of oxides of nitrogen and .01 
                                grams per brake horsepower-hour 
                                of particulate matter; and
                                    (II) model years 2004 
                                through 2006, 2.5 grams per 
                                brake horsepower-hour of 
                                nonmethane hydrocarbons and 
                                oxides of nitrogen and .01 
                                grams per brake horsepower-hour 
                                of particulate matter; or
                            (ii) the quantity of emissions of 
                        nonmethane hydrocarbons, oxides of 
                        nitrogen, and particulate matter of the 
                        best-performing technology of ultra-low 
                        sulfur diesel vehicles of the same 
                        class and application that are 
                        commercially available.

SEC. 722. PILOT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive 
grant pilot program, to be administered through the Clean 
Cities Program of the Department of Energy, to provide not more 
than 15 geographically dispersed project grants to State 
governments, local governments, or metropolitan transportation 
authorities to carry out a project or projects for the purposes 
described in subsection (b).
    (b) Grant Purposes.--A grant under this section may be used 
for the following purposes:
            (1) The acquisition of alternative fueled vehicles 
        or fuel cell vehicles, including--
                    (A) passenger vehicles (including 
                neighborhood electric vehicles); and
                    (B) motorized 2-wheel bicycles, scooters, 
                or other vehicles for use by law enforcement 
                personnel or other State or local government or 
                metropolitan transportation authority 
                employees.
            (2) The acquisition of alternative fueled vehicles, 
        hybrid vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or 
                services; and
                    (C) ground support vehicles at public 
                airports (including vehicles to carry baggage 
                or push or pull airplanes toward or away from 
                terminal gates).
            (3) The acquisition of ultra-low sulfur diesel 
        vehicles.
            (4) Installation or acquisition of infrastructure 
        necessary to directly support an alternative fueled 
        vehicle, fuel cell vehicle, or hybrid vehicle project 
        funded by the grant, including fueling and other 
        support equipment.
            (5) Operation and maintenance of vehicles, 
        infrastructure, and equipment acquired as part of a 
        project funded by the grant.
    (c) Applications.--
            (1) Requirements.--
                    (A) In general.--The Secretary shall issue 
                requirements for applying for grants under the 
                pilot program.
                    (B) Minimum requirements.--At a minimum, 
                the Secretary shall require that an application 
                for a grant--
                            (i) be submitted by the head of a 
                        State or local government or a 
                        metropolitan transportation authority, 
                        or any combination thereof, and a 
                        registered participant in the Clean 
                        Cities Program of the Department of 
                        Energy; and
                            (ii) include--
                                    (I) a description of the 
                                project proposed in the 
                                application, including how the 
                                project meets the requirements 
                                of this part;
                                    (II) an estimate of the 
                                ridership or degree of use of 
                                the project;
                                    (III) an estimate of the 
                                air pollution emissions reduced 
                                and fossil fuel displaced as a 
                                result of the project, and a 
                                plan to collect and disseminate 
                                environmental data, related to 
                                the project to be funded under 
                                the grant, over the life of the 
                                project;
                                    (IV) a description of how 
                                the project will be sustainable 
                                without Federal assistance 
                                after the completion of the 
                                term of the grant;
                                    (V) a complete description 
                                of the costs of the project, 
                                including acquisition, 
                                construction, operation, and 
                                maintenance costs over the 
                                expected life of the project;
                                    (VI) a description of which 
                                costs of the project will be 
                                supported by Federal assistance 
                                under this part; and
                                    (VII) documentation to the 
                                satisfaction of the Secretary 
                                that diesel fuel containing 
                                sulfur at not more than 15 
                                parts per million is available 
                                for carrying out the project, 
                                and a commitment by the 
                                applicant to use such fuel in 
                                carrying out the project.
            (2) Partners.--An applicant under paragraph (1) may 
        carry out a project under the pilot program in 
        partnership with public and private entities.
    (d) Selection Criteria.--In evaluating applications under 
the pilot program, the Secretary shall--
            (1) consider each applicant's previous experience 
        with similar projects; and
            (2) give priority consideration to applications 
        that--
                    (A) are most likely to maximize protection 
                of the environment;
                    (B) demonstrate the greatest commitment on 
                the part of the applicant to ensure funding for 
                the proposed project and the greatest 
                likelihood that the project will be maintained 
                or expanded after Federal assistance under this 
                part is completed; and
                    (C) exceed the minimum requirements of 
                subsection (c)(1)(B)(ii).
    (e) Pilot Project Requirements.--
            (1) Maximum amount.--The Secretary shall not 
        provide more than $20,000,000 in Federal assistance 
        under the pilot program to any applicant.
            (2) Cost sharing.--The Secretary shall not provide 
        more than 50 percent of the cost, incurred during the 
        period of the grant, of any project under the pilot 
        program.
            (3) Maximum period of grants.--The Secretary shall 
        not fund any applicant under the pilot program for more 
        than 5 years.
            (4) Deployment and distribution.--The Secretary 
        shall seek to the maximum extent practicable to ensure 
        a broad geographic distribution of project sites.
            (5) Transfer of information and knowledge.--The 
        Secretary shall establish mechanisms to ensure that the 
        information and knowledge gained by participants in the 
        pilot program are transferred among the pilot program 
        participants and to other interested parties, including 
        other applicants that submitted applications.
    (f) Schedule.--
            (1) Publication.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        publish in the Federal Register, Commerce Business 
        Daily, and elsewhere as appropriate, a request for 
        applications to undertake projects under the pilot 
        program. Applications shall be due not later than 180 
        days after the date of publication of the notice.
            (2) Selection.--Not later than 180 days after the 
        date by which applications for grants are due, the 
        Secretary shall select by competitive, peer reviewed 
        proposal, all applications for projects to be awarded a 
        grant under the pilot program.
    (g) Limit on Funding.--The Secretary shall provide not less 
than 20 nor more than 25 percent of the grant funding made 
available under this section for the acquisition of ultra-low 
sulfur diesel vehicles.

SEC. 723. REPORTS TO CONGRESS.

    (a) Initial Report.--Not later than 60 days after the date 
on which grants are awarded under this part, the Secretary 
shall submit to Congress a report containing--
            (1) an identification of the grant recipients and a 
        description of the projects to be funded;
            (2) an identification of other applicants that 
        submitted applications for the pilot program; and
            (3) a description of the mechanisms used by the 
        Secretary to ensure that the information and knowledge 
        gained by participants in the pilot program are 
        transferred among the pilot program participants and to 
        other interested parties, including other applicants 
        that submitted applications.
    (b) Evaluation.--Not later than 3 years after the date of 
enactment of this Act, and annually thereafter until the pilot 
program ends, the Secretary shall submit to Congress a report 
containing an evaluation of the effectiveness of the pilot 
program, including--
            (1) an assessment of the benefits to the 
        environment derived from the projects included in the 
        pilot program; and
            (2) an estimate of the potential benefits to the 
        environment to be derived from widespread application 
        of alternative fueled vehicles and ultra-low sulfur 
        diesel vehicles.

SEC. 724. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to 
carry out this part $200,000,000, to remain available until 
expended.

                        PART 3--FUEL CELL BUSES

SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.

    (a) In General.--The Secretary of Energy, in consultation 
with the Secretary of Transportation, shall establish a transit 
bus demonstration program to make competitive, merit-based 
awards for 5-year projects to demonstrate not more than 25 fuel 
cell transit buses (and necessary infrastructure) in 5 
geographically dispersed localities.
    (b) Preference.--In selecting projects under this section, 
the Secretary of Energy shall give preference to projects that 
are most likely to mitigate congestion and improve air quality.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Energy to carry out this 
section $10,000,000 for each of fiscal years 2004 through 2008.

                     Subtitle C--Clean School Buses

SEC. 741. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Alternative fuel.--The term ``alternative 
        fuel'' means liquefied natural gas, compressed natural 
        gas, liquefied petroleum gas, hydrogen, propane, or 
        methanol or ethanol at no less than 85 percent by 
        volume.
            (3) Alternative fuel school bus.--The term 
        ``alternative fuel school bus'' means a school bus that 
        meets all of the requirements of this subtitle and is 
        operated solely on an alternative fuel.
            (4) Emissions control retrofit technology.--The 
        term ``emissions control retrofit technology'' means a 
        particulate filter or other emissions control equipment 
        that is verified or certified by the Administrator or 
        the California Air Resources Board as an effective 
        emission reduction technology when installed on an 
        existing school bus.
            (5) Idling.--The term ``idling'' means operating an 
        engine while remaining stationary for more than 
        approximately 15 minutes, except that the term does not 
        apply to routine stoppages associated with traffic 
        movement or congestion.
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (7) Ultra-low sulfur diesel fuel.--The term 
        ``ultra-low sulfur diesel fuel'' means diesel fuel that 
        contains sulfur at not more than 15 parts per million.
            (8) Ultra-low sulfur diesel fuel school bus.--The 
        term ``ultra-low sulfur diesel fuel school bus'' means 
        a school bus that meets all of the requirements of this 
        subtitle and is operated solely on ultra-low sulfur 
        diesel fuel.

SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES WITH CLEAN 
                    SCHOOL BUSES.

    (a) Establishment.--The Administrator, in consultation with 
the Secretary and other appropriate Federal departments and 
agencies, shall establish a program for awarding grants on a 
competitive basis to eligible entities for the replacement of 
existing school buses manufactured before model year 1991 with 
alternative fuel school buses and ultra-low sulfur diesel fuel 
school buses.
    (b) Requirements.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall 
        establish and publish in the Federal Register grant 
        requirements on eligibility for assistance, and on 
        implementation of the program established under 
        subsection (a), including instructions for the 
        submission of grant applications and certification 
        requirements to ensure compliance with this subtitle.
            (2) Application deadlines.--The requirements 
        established under paragraph (1) shall require 
        submission of grant applications not later than--
                    (A) in the case of the first year of 
                program implementation, the date that is 180 
                days after the publication of the requirements 
                in the Federal Register; and
                    (B) in the case of each subsequent year, 
                June 1 of the year.
    (c) Eligible Recipients.--A grant shall be awarded under 
this section only--
            (1) to 1 or more local or State governmental 
        entities responsible for providing school bus service 
        to 1 or more public school systems or responsible for 
        the purchase of school buses;
            (2) to 1 or more contracting entities that provide 
        school bus service to 1 or more public school systems, 
        if the grant application is submitted jointly with the 
        1 or more school systems to be served by the buses, 
        except that the application may provide that buses 
        purchased using funds awarded shall be owned, operated, 
        and maintained exclusively by the 1 or more contracting 
        entities; or
            (3) to a nonprofit school transportation 
        association representing private contracting entities, 
        if the association has notified and received approval 
        from the 1 or more school systems to be served by the 
        buses.
    (d) Award Deadlines.--
            (1) In general.--Subject to paragraph (2), the 
        Administrator shall award a grant made to a qualified 
        applicant for a fiscal year--
                    (A) in the case of the first fiscal year of 
                program implementation, not later than the date 
                that is 90 days after the application deadline 
                established under subsection (b)(2); and
                    (B) in the case of each subsequent fiscal 
                year, not later than August 1 of the fiscal 
                year.
            (2) Insufficient number of qualified grant 
        applications.--If the Administrator does not receive a 
        sufficient number of qualified grant applications to 
        meet the requirements of subsection (i)(1) for a fiscal 
        year, the Administrator shall award a grant made to a 
        qualified applicant under subsection (i)(2) not later 
        than September 30 of the fiscal year.
    (e) Types of Grants.--
            (1) In general.--A grant under this section shall 
        be used for the replacement of school buses 
        manufactured before model year 1991 with alternative 
        fuel school buses and ultra-low sulfur diesel fuel 
        school buses.
            (2) No economic benefit.--Other than the receipt of 
        the grant, a recipient of a grant under this section 
        may not receive any economic benefit in connection with 
        the receipt of the grant.
            (3) Priority of grant applications.--The 
        Administrator shall give priority to applicants that 
        propose to replace school buses manufactured before 
        model year 1977.
    (f) Conditions of Grant.--A grant provided under this 
section shall include the following conditions:
            (1) School bus fleet.--All buses acquired with 
        funds provided under the grant shall be operated as 
        part of the school bus fleet for which the grant was 
        made for a minimum of 5 years.
            (2) Use of funds.--Funds provided under the grant 
        may only be used--
                    (A) to pay the cost, except as provided in 
                paragraph (3), of new alternative fuel school 
                buses or ultra-low sulfur diesel fuel school 
                buses, including State taxes and contract fees 
                associated with the acquisition of such buses; 
                and
                    (B) to provide--
                            (i) up to 20 percent of the price 
                        of the alternative fuel school buses 
                        acquired, for necessary alternative 
                        fuel infrastructure if the 
                        infrastructure will only be available 
                        to the grant recipient; and
                            (ii) up to 25 percent of the price 
                        of the alternative fuel school buses 
                        acquired, for necessary alternative 
                        fuel infrastructure if the 
                        infrastructure will be available to the 
                        grant recipient and to other bus 
                        fleets.
            (3) Grant recipient funds.--The grant recipient 
        shall be required to provide at least--
                    (A) in the case of a grant recipient 
                described in paragraph (1) or (3) of subsection 
                (c), the lesser of--
                            (i) an amount equal to 15 percent 
                        of the total cost of each bus received; 
                        or
                            (ii) $15,000 per bus; and
                    (B) in the case of a grant recipient 
                described in subsection (c)(2), the lesser of--
                            (i) an amount equal to 20 percent 
                        of the total cost of each bus received; 
                        or
                            (ii) $20,000 per bus.
            (4) Ultra-low sulfur diesel fuel.--In the case of a 
        grant recipient receiving a grant for ultra-low sulfur 
        diesel fuel school buses, the grant recipient shall be 
        required to provide documentation to the satisfaction 
        of the Administrator that diesel fuel containing sulfur 
        at not more than 15 parts per million is available for 
        carrying out the purposes of the grant, and a 
        commitment by the applicant to use such fuel in 
        carrying out the purposes of the grant.
            (5) Timing.--All alternative fuel school buses, 
        ultra-low sulfur diesel fuel school buses, or 
        alternative fuel infrastructure acquired under a grant 
        awarded under this section shall be purchased and 
        placed in service as soon as practicable.
    (g) Buses.--
            (1) In general.--Except as provided in paragraph 
        (2), funding under a grant made under this section for 
        the acquisition of new alternative fuel school buses or 
        ultra-low sulfur diesel fuel school buses shall only be 
        used to acquire school buses--
                    (A) with a gross vehicle weight of greater 
                than 14,000 pounds;
                    (B) that are powered by a heavy duty 
                engine;
                    (C) in the case of alternative fuel school 
                buses manufactured in model years 2004 through 
                2006, that emit not more than 1.8 grams per 
                brake horsepower-hour of nonmethane 
                hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate 
                matter; and
                    (D) in the case of ultra-low sulfur diesel 
                fuel school buses manufactured in model years 
                2004 through 2006, that emit not more than 2.5 
                grams per brake horsepower-hour of nonmethane 
                hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate 
                matter.
            (2) Limitations.--A bus shall not be acquired under 
        this section that emits nonmethane hydrocarbons, oxides 
        of nitrogen, or particulate matter at a rate greater 
        than the best performing technology of the same class 
        of ultra-low sulfur diesel fuel school buses 
        commercially available at the time the grant is made.
    (h) Deployment and Distribution.--The Administrator shall--
            (1) seek, to the maximum extent practicable, to 
        achieve nationwide deployment of alternative fuel 
        school buses and ultra-low sulfur diesel fuel school 
        buses through the program under this section; and
            (2) ensure a broad geographic distribution of grant 
        awards, with a goal of no State receiving more than 10 
        percent of the grant funding made available under this 
        section for a fiscal year.
    (i) Allocation of Funds.--
            (1) In general.--Subject to paragraph (2), of the 
        amount of grant funding made available to carry out 
        this section for any fiscal year, the Administrator 
        shall use--
                    (A) 70 percent for the acquisition of 
                alternative fuel school buses or supporting 
                infrastructure; and
                    (B) 30 percent for the acquisition of 
                ultra-low sulfur diesel fuel school buses.
            (2) Insufficient number of qualified grant 
        applications.--After the first fiscal year in which 
        this program is in effect, if the Administrator does 
        not receive a sufficient number of qualified grant 
        applications to meet the requirements of subparagraph 
        (A) or (B) of paragraph (1) for a fiscal year, 
        effective beginning on August 1 of thefiscal year, the 
Administrator shall make the remaining funds available to other 
qualified grant applicants under this section.
    (j) Reduction of School Bus Idling.--Each local educational 
agency (as defined in section 9101 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7801)) that receives 
Federal funds under the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6301 et seq.) is encouraged to develop a 
policy, consistent with the health, safety, and welfare of 
students and the proper operation and maintenance of school 
buses, to reduce the incidence of unnecessary school bus idling 
at schools when picking up and unloading students.
    (k) Annual Report.--
            (1) In general.--Not later than January 31 of each 
        year, the Administrator shall transmit to Congress a 
        report evaluating implementation of the programs under 
        this section and section 743.
            (2) Components.--The reports shall include a 
        description of--
                    (A) the total number of grant applications 
                received;
                    (B) the number and types of alternative 
                fuel school buses, ultra-low sulfur diesel fuel 
                school buses, and retrofitted buses requested 
                in grant applications;
                    (C) grants awarded and the criteria used to 
                select the grant recipients;
                    (D) certified engine emission levels of all 
                buses purchased or retrofitted under the 
                programs under this section and section 743;
                    (E) an evaluation of the in-use emission 
                level of buses purchased or retrofitted under 
                the programs under this section and section 
                743; and
                    (F) any other information the Administrator 
                considers appropriate.
    (l) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended--
            (1) $45,000,000 for fiscal year 2005;
            (2) $65,000,000 for fiscal year 2006;
            (3) $90,000,000 for fiscal year 2007; and
            (4) such sums as are necessary for each of fiscal 
        years 2008 and 2009.

SEC. 743. DIESEL RETROFIT PROGRAM.

    (a) Establishment.--The Administrator, in consultation with 
the Secretary, shall establish a program for awarding grants on 
a competitive basis to entities for the installation of 
retrofit technologies for diesel school buses.
    (b) Eligible Recipients.--A grant shall be awarded under 
this section only--
            (1) to a local or State governmental entity 
        responsible for providing school bus service to 1 or 
        more public school systems;
            (2) to 1 or more contracting entities that provide 
        school bus service to 1 or more public school systems, 
        if the grant application is submitted jointly with the 
        1 or more school systems that the buses will serve, 
        except that the application may provide that buses 
        purchased using funds awarded shall be owned, operated, 
        and maintained exclusively by the 1 or more contracting 
        entities; or
            (3) to a nonprofit school transportation 
        association representing private contracting entities, 
        if the association has notified and received approval 
        from the 1 or more school systems to be served by the 
        buses.
    (c) Awards.--
            (1) In general.--The Administrator shall seek, to 
        the maximum extent practicable, to ensure a broad 
        geographic distribution of grants under this section.
            (2) Preferences.--In making awards of grants under 
        this section, the Administrator shall give preference 
        to proposals that--
                    (A) will achieve the greatest reductions in 
                emissions of nonmethane hydrocarbons, oxides of 
                nitrogen, or particulate matter per proposal or 
                per bus; or
                    (B) involve the use of emissions control 
                retrofit technology on diesel school buses that 
                operate solely on ultra-low sulfur diesel fuel.
    (d) Conditions of Grant.--A grant shall be provided under 
this section on the conditions that--
            (1) buses on which retrofit emissions-control 
        technology are to be demonstrated--
                    (A) will operate on ultra-low sulfur diesel 
                fuel where such fuel is reasonably available or 
                required for sale by State or local law or 
                regulation;
                    (B) were manufactured in model year 1991 or 
                later; and
                    (C) will be used for the transportation of 
                school children to and from school for a 
                minimum of 5 years;
            (2) grant funds will be used for the purchase of 
        emission control retrofit technology, including State 
        taxes and contract fees; and
            (3) grant recipients will provide at least 15 
        percent of the total cost of the retrofit, including 
        the purchase of emission control retrofit technology 
        and all necessary labor for installation of the 
        retrofit.
    (e) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall publish in the 
Federal Register procedures to verify--
            (1) the retrofit emissions-control technology to be 
        demonstrated;
            (2) that buses powered by ultra-low sulfur diesel 
        fuel on which retrofit emissions-control technology are 
        to be demonstrated will operate on diesel fuel 
        containing not more than 15 parts per million of 
        sulfur; and
            (3) that grants are administered in accordance with 
        this section.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended--
            (1) $20,000,000 for fiscal year 2005;
            (2) $35,000,000 for fiscal year 2006;
            (3) $45,000,000 for fiscal year 2007; and
            (4) such sums as are necessary for each of fiscal 
        years 2008 and 2009.

SEC. 744. FUEL CELL SCHOOL BUSES.

    (a) Establishment.--The Secretary shall establish a program 
for entering into cooperative agreements--
            (1) with private sector fuel cell bus developers 
        for the development of fuel cell-powered school buses; 
        and
            (2) subsequently, with not less than 2 units of 
        local government using natural gas-powered school buses 
        and such private sector fuel cell bus developers to 
        demonstrate the use of fuel cell-powered school buses.
    (b) Cost Sharing.--The non-Federal contribution for 
activities funded under this section shall be not less than--
            (1) 20 percent for fuel infrastructure development 
        activities; and
            (2) 50 percent for demonstration activities and for 
        development activities not described in paragraph (1).
    (c) Reports to Congress.--Not later than 3 years after the 
date of enactment of this Act, the Secretary shall transmit to 
Congress a report that--
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school 
        buses; and
            (2) assesses the results of the development and 
        demonstration program under this section.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$25,000,000 for the period of fiscal years 2004 through 2006.

                       Subtitle D--Miscellaneous

SEC. 751. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary of Energy shall, in 
cooperation with the Secretary of Transportation and the 
Administrator of the Environmental Protection Agency, establish 
a cost-shared, public-private research partnership involving 
the Federal Government, railroad carriers, locomotive 
manufacturers and equipment suppliers, and the Association of 
American Railroads, to develop and demonstrate railroad 
locomotive technologies that increase fuel economy, reduce 
emissions, and lower costs of operation.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Energy to carry out this 
section--
            (1) $25,000,000 for fiscal year 2005;
            (2) $35,000,000 for fiscal year 2006; and
            (3) $50,000,000 for fiscal year 2007.

SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall submit to Congress a report on the 
experience of the Administrator with the trading of mobile 
source emission reduction credits for use by owners and 
operators of stationary source emission sources to meet 
emission offset requirements within a nonattainment area.
    (b) Contents.--The report shall describe--
            (1) projects approved by the Administrator that 
        include the trading of mobile source emission reduction 
        credits for use by stationary sources in complying with 
        offset requirements, including a description of--
                    (A) project and stationary sources 
                location;
                    (B) volumes of emissions offset and traded;
                    (C) the sources of mobile emission 
                reduction credits; and
                    (D) if available, the cost of the credits;
            (2) the significant issues identified by the 
        Administrator in consideration and approval of trading 
        in the projects;
            (3) the requirements for monitoring and assessing 
        the air quality benefits of any approved project;
            (4) the statutory authority on which the 
        Administrator has based approval of the projects;
            (5) an evaluation of how the resolution of issues 
        in approved projects could be used in other projects; 
        and
            (6) any other issues that the Administrator 
        considers relevant to the trading and generation of 
        mobile source emission reduction credits for use by 
        stationary sources or for other purposes.

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.

    (a) In General.--Not later than 60 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration and the Administrator of the 
Environmental Protection Agency shall jointly initiate a study 
to identify--
            (1) the impact of aircraft emissions on air quality 
        in nonattainment areas; and
            (2) ways to promote fuel conservation measures for 
        aviation to--
                    (A) enhance fuel efficiency; and
                    (B) reduce emissions.
    (b) Focus.--The study under subsection (a) shall focus on 
how air traffic management inefficiencies, such as aircraft 
idling at airports, result in unnecessary fuel burn and air 
emissions.
    (c) Report.--Not later than 1 year after the date of the 
initiation of the study under subsection (a), the Administrator 
of the Federal Aviation Administration and the Administrator of 
the Environmental Protection Agency shall jointly submit to the 
Committee on Energy and Commerce and the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works and the Committee on Commerce, Science, and 
Transportation of the Senate a report that--
            (1) describes the results of the study; and
            (2) includes any recommendations on ways in which 
        unnecessary fuel use and emissions affecting air 
        quality may be reduced--
                    (A) without adversely affecting safety and 
                security and increasing individual aircraft 
                noise; and
                    (B) while taking into account all aircraft 
                emissions and the impact of the emissions on 
                human health.

SEC. 754. DIESEL FUELED VEHICLES.

    (a) Definition of Tier 2 Emission Standards.--In this 
section, the term ``tier 2 emission standards'' means the motor 
vehicle emission standards that apply to passenger cars, light 
trucks, and larger passenger vehicles manufactured after the 
2003 model year, as issued on February 10, 2000, by the 
Administrator of the Environmental Protection Agency under 
sections 202 and 211 of the Clean Air Act (42 U.S.C. 7521, 
7545).
    (b) Diesel Combustion and After-Treatment Technologies.--
The Secretary of Energy shall accelerate efforts to improve 
diesel combustion and after-treatment technologies for use in 
diesel fueled motor vehicles.
    (c) Goals.--The Secretary shall carry out subsection (b) 
with a view toward achieving the following goals:
            (1) Developing and demonstrating diesel 
        technologies that, not later than 2010, meet the 
        following standards:
                    (A) Tier 2 emission standards.
                    (B) The heavy-duty emissions standards of 
                2007 that are applicable to heavy-duty vehicles 
                under regulations issued by the Administrator 
                of the Environmental Protection Agency as of 
                the date of enactment of this Act.
            (2) Developing the next generation of low-emission, 
        high-efficiency diesel engine technologies, including 
        homogeneous charge compression ignition technology.

SEC. 755. 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 State or local 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 are authorized 
to be appropriated to the Secretary to carry out thissection 
$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. 756. 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) 
                        $19,500,000 for fiscal year 2004, 
                        $30,000,000 for fiscal year 2005, and 
                        $45,000,000 for fiscal year 2006.
                            (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. 757. BIODIESEL ENGINE TESTING PROGRAM.

    (a) In General.--Not later that 180 days after the date of 
enactment of this Act, the Secretary shall initiate a 
partnership with diesel engine, diesel fuel injection system, 
and diesel vehicle manufacturers and diesel and biodiesel fuel 
providers, to include biodiesel testing in advanced diesel 
engine and fuel system technology.
    (b) Scope.--The program shall provide for testing to 
determine the impact of biodiesel from different sources on 
current and future emission control technologies, with emphasis 
on--
            (1) the impact of biodiesel on emissions warranty, 
        in-use liability, and antitampering provisions;
            (2) the impact of long-term use of biodiesel on 
        engine operations;
            (3) the options for optimizing these technologies 
        for both emissions and performance when switching 
        between biodiesel and diesel fuel; and
            (4) the impact of using biodiesel in these fueling 
        systems and engines when used as a blend with 2006 
        Environmental Protection Agency-mandated diesel fuel 
        containing a maximum of 15-parts-per-million sulfur 
        content.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall provide an interim 
report to Congress on the findings of the program, including a 
comprehensive analysis of impacts from biodiesel on engine 
operation for both existing and expected future diesel 
technologies, and recommendations for ensuring optimal 
emissions reductions and engine performance with biodiesel.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for each of fiscal years 2004 
through 2008 to carry out this section.
    (e) Definition.--For purposes of this section, the term 
``biodiesel'' means a diesel fuel substitute produced from 
nonpetroleum renewable resources that meets the registration 
requirements for fuels and fuel additives established by the 
Environmental Protection Agency under section 211 of the Clean 
Air Act (42 U.S.C. 7545) and that meets the American Society 
for Testing and Materials D6751-02a Standard Specification for 
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

SEC. 758. HIGH OCCUPANCY VEHICLE EXCEPTION.

    Notwithstanding section 102(a) of title 23, United States 
Code, a State may permit a vehicle with fewer than 2 occupants 
to operate in high occupancy vehicle lanes if the vehicle--
            (1) is a dedicated vehicle (as defined in section 
        301 of the Energy Policy Act of 1992 (42 U.S.C. 
        13211)); or
            (2) is a hybrid vehicle (as defined by the State 
        for the purpose of this section).

                   Subtitle E--Automobile Efficiency

SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND 
                    ENFORCEMENT OF FUEL ECONOMY STANDARDS.

    In addition to any other funds authorized by law, there are 
authorized to be appropriated to the National Highway Traffic 
Safety Administration to carry out its obligations with respect 
to average fuel economy standards $2,000,000 for each of fiscal 
years 2004 through 2008.

SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE 
                    AVERAGE FUEL ECONOMY.

    Section 32902(f) of title 49, United States Code, is 
amended to read as follows:
    ``(f) Considerations for Decisions on Maximum Feasible 
Average Fuel Economy.--When deciding maximum feasible average 
fuel economy under this section, the Secretary of 
Transportation shall consider the following matters:
            ``(1) Technological feasibility.
            ``(2) Economic practicability.
            ``(3) The effect of other motor vehicle standards 
        of the Government on fuel economy.
            ``(4) The need of the United States to conserve 
        energy.
            ``(5) The effects of fuel economy standards on 
        passenger automobiles, nonpassenger automobiles, and 
        occupant safety.
            ``(6) The effects of compliance with average fuel 
        economy standards on levels of automobile industry 
        employment in the United States.''.

SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE 
                    FUELED VEHICLES.

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

SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR 
                    AUTOMOBILES.

    (a) In General.--Not later than 30 days after the date of 
the enactment of this Act, the Administrator of the National 
Highway Traffic Safety Administration shall initiate a study of 
the feasibility and effects of reducing by model year 2012, by 
a significant percentage, the amount of fuel consumed by 
automobiles.
    (b) Subjects of Study.--The study under this section shall 
include--
            (1) examination of, and recommendation of 
        alternatives to, the policy under current Federal law 
        of establishing average fuel economy standards for 
        automobiles and requiring each automobile manufacturer 
        to comply with average fuel economy standards that 
        apply to the automobiles it manufactures;
            (2) examination of how automobile manufacturers 
        could contribute toward achieving the reduction 
        referred to in subsection (a);
            (3) examination of the potential of fuel cell 
        technology in motor vehicles in order to determine the 
        extent to which such technology may contribute to 
        achieving the reduction referred to in subsection (a); 
        and
            (4) examination of the effects of the reduction 
        referred to in subsection (a) on--
                    (A) gasoline supplies;
                    (B) the automobile industry, including 
                sales of automobiles manufactured in the United 
                States;
                    (C) motor vehicle safety; and
                    (D) air quality.
    (c) Report.--The Administrator shall submit to Congress a 
report on the findings, conclusion, and recommendations of the 
study under this section by not later than 1 year after the 
date of the enactment of this Act.

                          TITLE VIII--HYDROGEN

SEC. 801. DEFINITIONS.

    In this title:
            (1) Advisory committee.--The term ``Advisory 
        Committee'' means the Hydrogen Technical and Fuel Cell 
        Advisory Committee established under section 805.
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Fuel cell.--The term ``fuel cell'' means a 
        device that directly converts the chemical energy of a 
        fuel and an oxidant into electricity by an 
        electrochemical process taking place at separate 
        electrodes in the device.
            (4) Infrastructure.--The term ``infrastructure'' 
        means the equipment, systems, or facilities used to 
        produce, distribute, deliver, or store hydrogen.
            (5) Light duty vehicle.--The term ``light duty 
        vehicle'' means a car or truck classified by the 
        Department of Transportation as a Class I or IIA 
        vehicle.
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.

SEC. 802. PLAN.

    Not later than 6 months after the date of enactment of this 
Act, the Secretary shall transmit to Congress a coordinated 
plan for the programs described in this title and any other 
programs of the Department that are directly related to fuel 
cells or hydrogen. The plan shall describe, at a minimum--
            (1) the agenda for the next 5 years for the 
        programs authorized under this title, including the 
        agenda for each activity enumerated in section 803(a);
            (2) the types of entities that will carry out the 
        activities under this title and what role each entity 
        is expected to play;
            (3) the milestones that will be used to evaluate 
        the programs for the next 5 years;
            (4) the most significant technical and nontechnical 
        hurdles that stand in the way of achieving the goals 
        described in section 803(b), and how the programs will 
        address those hurdles; and
            (5) the policy assumptions that are implicit in the 
        plan, including any assumptions that would affect the 
        sources of hydrogen or the marketability of hydrogen-
        related products.

SEC. 803. PROGRAMS.

    (a) Activities.--The Secretary, in partnership with the 
private sector, shall conduct programs to address--
            (1) production of hydrogen from diverse energy 
        sources, including--
                    (A) fossil fuels, which may include carbon 
                capture and sequestration;
                    (B) hydrogen-carrier fuels (including 
                ethanol and methanol);
                    (C) renewable energy resources, including 
                biomass; and
                    (D) nuclear energy;
            (2) use of hydrogen for commercial, industrial, and 
        residential electric power generation;
            (3) safe delivery of hydrogen or hydrogen-carrier 
        fuels, including--
                    (A) transmission by pipeline and other 
                distribution methods; and
                    (B) convenient and economic refueling of 
                vehicles either at central refueling stations 
                or through distributed on-site generation;
            (4) advanced vehicle technologies, including--
                    (A) engine and emission control systems;
                    (B) energy storage, electric propulsion, 
                and hybrid systems;
                    (C) automotive materials; and
                    (D) other advanced vehicle technologies;
            (5) storage of hydrogen or hydrogen-carrier fuels, 
        including development of materials for safe and 
        economic storage in gaseous, liquid, or solid form at 
        refueling facilities and onboard vehicles;
            (6) development of safe, durable, affordable, and 
        efficient fuel cells, including fuel-flexible fuel cell 
        power systems, improved manufacturing processes, high-
        temperature membranes, cost-effective fuel processing 
        for natural gas, fuel cell stack and system 
        reliability, low temperature operation, and cold start 
        capability;
            (7) development, after consultation with the 
        private sector, of necessary codes and standards 
        (including international codes and standards and 
        voluntary consensus standards adopted in accordance 
        with OMB Circular A-119) and safety practices for the 
        production, distribution, storage, and use of hydrogen, 
        hydrogen-carrier fuels, and related products; and
            (8) a public education program to develop improved 
        knowledge and acceptability of hydrogen-based systems.
    (b) Program Goals.--
            (1) Vehicles.--For vehicles, the goals of the 
        program are--
                    (A) to enable a commitment by automakers no 
                later than year 2015 to offer safe, affordable, 
                and technically viable hydrogen fuel cell 
                vehicles in the mass consumer market; and
                    (B) to enable production, delivery, and 
                acceptance by consumers of model year 2020 
                hydrogen fuel cell and other hydrogen-powered 
                vehicles that will have--
                            (i) a range of at least 300 miles;
                            (ii) improved performance and ease 
                        of driving;
                            (iii) safety and performance 
                        comparable to vehicle technologies in 
                        the market; and
                            (iv) when compared to light duty 
                        vehicles in model year 2003--
                                    (I) fuel economy that is 
                                substantially higher;
                                    (II) substantially lower 
                                emissions of air pollutants; 
                                and
                                    (III) equivalent or 
                                improved vehicle fuel system 
                                crash integrity and occupant 
                                protection.
            (2) Hydrogen energy and energy infrastructure.--For 
        hydrogen energy and energy infrastructure, the goals of 
        the program are to enable a commitment not later than 
        2015 that will lead to infrastructure by 2020 that will 
        provide--
                    (A) safe and convenient refueling;
                    (B) improved overall efficiency;
                    (C) widespread availability of hydrogen 
                from domestic energy sources through--
                            (i) production, with consideration 
                        of emissions levels;
                            (ii) delivery, including 
                        transmission by pipeline and other 
                        distribution methods for hydrogen; and
                            (iii) storage, including storage in 
                        surface transportation vehicles;
                    (D) hydrogen for fuel cells, internal 
                combustion engines, and other energy conversion 
                devices for portable, stationary, and 
                transportation applications; and
                    (E) other technologies consistent with the 
                Department's plan.
            (3) Fuel cells.--The goals for fuel cells and their 
        portable, stationary, and transportation applications 
        are to enable--
                    (A) safe, economical, and environmentally 
                sound hydrogen fuel cells;
                    (B) fuel cells for light duty and other 
                vehicles; and
                    (C) other technologies consistent with the 
                Department's plan.
    (c) Demonstration.--In carrying out the programs under this 
section, the Secretary shall fund a limited number of 
demonstration projects, consistent with a determination of the 
maturity, cost-effectiveness, and environmental impacts 
oftechnologies supporting each project. In selecting projects under 
this subsection, the Secretary shall, to the extent practicable and in 
the public interest, select projects that--
            (1) involve using hydrogen and related products at 
        existing facilities or installations, such as existing 
        office buildings, military bases, vehicle fleet 
        centers, transit bus authorities, or units of the 
        National Park System;
            (2) depend on reliable power from hydrogen to carry 
        out essential activities;-
            (3) lead to the replication of hydrogen 
        technologies and draw such technologies into the 
        marketplace;
            (4) include vehicle, portable, and stationary 
        demonstrations of fuel cell and hydrogen-based energy 
        technologies;
            (5) address the interdependency of demand for 
        hydrogen fuel cell applications and hydrogen fuel 
        infrastructure;
            (6) raise awareness of hydrogen technology among 
        the public;
            (7) facilitate identification of an optimum 
        technology among competing alternatives;
            (8) address distributed generation using renewable 
        sources; and
            (9) address applications specific to rural or 
        remote locations, including isolated villages and 
        islands, the National Park System, and tribal entities.
The Secretary shall give preference to projects which address 
multiple elements contained in paragraphs (1) through (9).
    (d) Deployment.--In carrying out the programs under this 
section, the Secretary shall, in partnership with the private 
sector, conduct activities to facilitate the deployment of 
hydrogen energy and energy infrastructure, fuel cells, and 
advanced vehicle technologies.
    (e) Funding.--
            (1) In general.--The Secretary shall carry out the 
        programs under this section using a competitive, merit-
        based review process and consistent with the generally 
        applicable Federal laws and regulations governing 
        awards of financial assistance, contracts, or other 
        agreements.
            (2) Research centers.--Activities under this 
        section may be carried out by funding nationally 
        recognized university-based or Federal laboratory 
        research centers.
    (f) Cost Sharing.--
            (1) Research and development.--Except as otherwise 
        provided in this title, for research and development 
        programs carried out under this title the Secretary 
        shall require a commitment from non-Federal sources of 
        at least 20 percent of the cost of the project. The 
        Secretary may reduce or eliminate the non-Federal 
        requirement under this paragraph if the Secretary 
        determines that the research and development is of a 
        basic or fundamental nature or involves technical 
        analyses or educational activities.
            (2) Demonstration and commercial application.--
        Except as otherwise provided in this title, the 
        Secretary shall require at least 50 percent of the 
        costs directly and specifically related to any 
        demonstration or commercial application project under 
        this title to be provided from non-Federal sources. The 
        Secretary may reduce the non-Federal requirement under 
        this paragraph if the Secretary determines that the 
        reduction is necessary and appropriate considering the 
        technological risks involved in the project and is 
        necessary to meet the objectives of this title.
            (3) Calculation of amount.--In calculating the 
        amount of the non-Federal commitment under paragraph 
        (1) or (2), the Secretary may include personnel, 
        services, equipment, and other resources.
            (4) Size of non-federal share.--The Secretary may 
        consider the size of the non-Federal share in selecting 
        projects.
    (g) Disclosure.--Section 623 of the Energy Policy Act of 
1992 (42 U.S.C. 13293) relating to the protection of 
information shall apply to projects carried out through grants, 
cooperative agreements, or contracts under this title.

SEC. 804. INTERAGENCY TASK FORCE.

    (a) Establishment.--Not later than 120 days after the date 
of enactment of this Act, the President shall establish an 
interagency task force chaired by the Secretary with 
representatives from each of the following:
            (1) The Office of Science and Technology Policy 
        within the Executive Office of the President.
            (2) The Department of Transportation.
            (3) The Department of Defense.
            (4) The Department of Commerce (including the 
        National Institute of Standards and Technology).
            (5) The Department of State.
            (6) The Environmental Protection Agency.
            (7) The National Aeronautics and Space 
        Administration.
            (8) Other Federal agencies as the Secretary 
        determines appropriate.
    (b) Duties.--
            (1) Planning.--The interagency task force shall 
        work toward--
                    (A) a safe, economical, and environmentally 
                sound fuel infrastructure for hydrogen and 
                hydrogen-carrier fuels, including an 
                infrastructure that supports buses and other 
                fleet transportation;
                    (B) fuel cells in government and other 
                applications, including portable, stationary, 
                and transportation applications;
                    (C) distributed power generation, including 
                the generation of combined heat, power, and 
                clean fuels including hydrogen;
                    (D) uniform hydrogen codes, standards, and 
                safety protocols; and
                    (E) vehicle hydrogen fuel system integrity 
                safety performance.
            (2) Activities.--The interagency task force may 
        organize workshops and conferences, may issue 
        publications, and may create databases to carry out its 
        duties. The interagency task force shall--
                    (A) foster the exchange of generic, 
                nonproprietary information and technology among 
                industry, academia, and government;
                    (B) develop and maintain an inventory and 
                assessment of hydrogen, fuel cells, and other 
                advanced technologies, including the commercial 
                capability of each technology for the economic 
                and environmentally safe production, 
                distribution, delivery, storage, and use of 
                hydrogen;
                    (C) integrate technical and other 
                information made available as a result of the 
                programs and activities under this title;
                    (D) promote the marketplace introduction of 
                infrastructure for hydrogen fuel vehicles; and
                    (E) conduct an education program to provide 
                hydrogen and fuel cell information to potential 
                end-users.
    (c) Agency Cooperation.--The heads of all agencies, 
including those whose agencies are not represented on the 
interagency task force, shall cooperate with and furnish 
information to the interagency task force, the Advisory 
Committee, and the Department.

SEC. 805. ADVISORY COMMITTEE.

    (a) Establishment.--The Hydrogen Technical and Fuel Cell 
Advisory Committee is established to advise the Secretary on 
the programs and activities under this title.
    (b) Membership.--
            (1) Members.--The Advisory Committee shall be 
        comprised of not fewer than 12 nor more than 25 
        members. The members shall be appointed by the 
        Secretary to represent domestic industry, academia, 
        professional societies, government agencies, Federal 
        laboratories, previous advisory panels, and financial, 
        environmental, and other appropriate organizations 
        based on the Department's assessment of the technical 
        and other qualifications of committee members and the 
        needs of the Advisory Committee.
            (2) Terms.--The term of a member of the Advisory 
        Committee shall not be more than 3 years. The Secretary 
        may appoint members of the Advisory Committee in a 
        manner that allows the terms of the members serving at 
        any time to expire at spaced intervals so as to ensure 
        continuity in the functioning of the Advisory 
        Committee. A member of the Advisory Committee whose 
        term is expiring may be reappointed.
            (3) Chairperson.--The Advisory Committee shall have 
        a chairperson, who is elected by the members from among 
        their number.
    (c) Review.--The Advisory Committee shall review and make 
recommendations to the Secretary on--
            (1) the implementation of programs and activities 
        under this title;
            (2) the safety, economical, and environmental 
        consequences of technologies for the production, 
        distribution, delivery, storage, or use of hydrogen 
        energy and fuel cells; and
            (3) the plan under section 802.
    (d) Response.--
            (1) Consideration of recommendations.--The 
        Secretary shall consider, but need not adopt, any 
        recommendations of the Advisory Committee under 
        subsection (c).
    (2) Biennial report.--The Secretary shall transmit a 
biennial report to Congress describing any recommendations made 
by the Advisory Committee since the previous report. The report 
shall include a description of how the Secretary has 
implemented or plans to implement the recommendations, or an 
explanation of the reasons that a recommendation will not be 
implemented. The report shall be transmitted along with the 
President's budget proposal.
    (e) Support.--The Secretary shall provide resources 
necessary in the judgment of the Secretary for the Advisory 
Committee to carry out its responsibilities under this title.

SEC. 806. EXTERNAL REVIEW.

    (a) Plan.--The Secretary shall enter into an arrangement 
with the National Academy of Sciences to review the plan 
prepared under section 802, which shall be completed not later 
than 6 months after the Academy receives the plan. Not later 
than 45 days after receiving the review, the Secretary shall 
transmit the review to Congress along with a plan to implement 
the review's recommendations or an explanation of the reasons 
that a recommendation will not be implemented.
    (b) Additional review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which 
the Academy will review the programs under section 803 during 
the fourth year following the date of enactment of this Act. 
The Academy's review shall include the research priorities and 
technical milestones, and evaluate the progress toward 
achieving them. The review shall be completed not later than 5 
years after the date of enactment of this Act. Not later than 
45 days after receiving the review, the Secretary shall 
transmit the review to Congress along with a plan to implement 
the review's recommendations or an explanation for the reasons 
that a recommendation will not be implemented.

SEC. 807. MISCELLANEOUS PROVISIONS.

    (a) Representation.--The Secretary may represent the United 
States interests with respect to activities and programs under 
this title, in coordination with the Department of 
Transportation, the National Institute of Standards and 
Technology, and other relevant Federal agencies, before 
governments and nongovernmental organizations including--
            (1) other Federal, State, regional, and local 
        governments and their representatives;
            (2) industry and its representatives, including 
        members of the energy and transportation industries; 
        and
            (3) in consultation with the Department of State, 
        foreign governments and their representatives including 
        international organizations.
    (b) Regulatory Authority.--Nothing in this title shall be 
construed to alter the regulatory authority of the Department.

SEC. 808. SAVINGS CLAUSE.

    Nothing in this title shall be construed to affect the 
authority of the Secretary of Transportation that may exist 
prior to the date of enactment of this Act with respect to--
            (1) research into, and regulation of, hydrogen-
        powered vehicles fuel systems integrity, standards, and 
        safety under subtitle VI of title 49, United States 
        Code;
            (2) regulation of hazardous materials 
        transportation under chapter 51 of title 49, United 
        States Code;
            (3) regulation of pipeline safety under chapter 601 
        of title 49, United States Code;
            (4) encouragement and promotion of research, 
        development, and deployment activities relating to 
        advanced vehicle technologies under section 5506 of 
        title 49, United States Code;
            (5) regulation of motor vehicle safety under 
        chapter 301 of title 49, United States Code;
            (6) automobile fuel economy under chapter 329 of 
        title 49, United States Code; or
            (7) representation of the interests of the United 
        States with respect to the activities and programs 
        under the authority of title 49, United States Code.

SEC. 809. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to 
carry out this title, in addition to any amounts made available 
for these purposes under other Acts--
            (1) $273,500,000 for fiscal year 2004;
            (2) $375,000,000 for fiscal year 2005;
            (3) $450,000,000 for fiscal year 2006;
            (4) $500,000,000 for fiscal year 2007; and
            (5) $550,000,000 for fiscal year 2008.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. GOALS.

    (a) In General.--The Secretary shall conduct a balanced set 
of programs of energy research, development, demonstration, and 
commercial application to support Federal energy policy and 
programs by the Department. Such programs shall be focused on--
            (1) increasing the efficiency of all energy 
        intensive sectors through conservation and improved 
        technologies;
            (2) promoting diversity of energy supply;
            (3) decreasing the Nation's dependence on foreign 
        energy supplies;
            (4) improving United States energy security; and
            (5) decreasing the environmental impact of energy-
        related activities.
    (b) Goals.--The Secretary shall publish measurable 5-year 
cost and performance-based goals with each annual budget 
submission in at least the following areas:
            (1) Energy efficiency for buildings, energy-
        consuming industries, and vehicles.
            (2) Electric energy generation (including 
        distributed generation), transmission, and storage.
            (3) Renewable energy technologies including wind 
        power, photovoltaics, solar thermal systems, geothermal 
        energy, hydrogen-fueled systems, biomass-based systems, 
        biofuels, and hydropower.
            (4) Fossil energy including power generation, 
        onshore and offshore oil and gas resource recovery, and 
        transportation.
            (5) Nuclear energy including programs for existing 
        and advanced reactors and education of future 
        specialists.
    (c) Public Comment.--The Secretary shall provide mechanisms 
for input on the annually published goals from industry, 
university, and other public sources.
    (d) Effect of Goals.--
            (1) No new authority or requirement.--Nothing in 
        subsection (a) or the annually published goals shall--
                    (A) create any new--
                            (i) authority for any Federal 
                        agency; or
                            (ii) requirement for any other 
                        person;
                    (B) be used by a Federal agency to support 
                the establishment of regulatory standards or 
                regulatory requirements; or
                    (C) alter the authority of the Secretary to 
                make grants or other awards.
            (2) No limitation.--Nothing in this subsection 
        shall be construed to limit the authority of the 
        Secretary to impose conditions on grants or other 
        awards based on the goals in subsection (a) or any 
        subsequent modification thereto.

SEC. 902. DEFINITIONS.

    For purposes of this title:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the 
        Secretary of Energy by the Department of Energy 
        Organization Act (42 U.S.C. 7101 et seq.) or other law.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given that term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)).
            (4) 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 Engineering and 
                Environmental Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Stanford Linear Accelerator Center.
                    (P) Thomas Jefferson National Accelerator 
                Facility.
            (5) Nonmilitary energy laboratory.--The term 
        ``nonmilitary energy laboratory'' means the 
        laboratories listed in paragraph (4), except for those 
        listed in subparagraphs (G), (H), and (N).
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (7) Single-purpose research facility.--The term 
        ``single-purpose research facility'' means any of the 
        primarily single-purpose entities owned by the 
        Department or any other organization of the Department 
        designated by the Secretary.

                     Subtitle A--Energy Efficiency

SEC. 904. ENERGY EFFICIENCY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for energy efficiency and 
conservation research, development, demonstration, and 
commercial application activities, including activities 
authorized under this subtitle:
            (1) For fiscal year 2004, $616,000,000.
            (2) For fiscal year 2005, $695,000,000.
            (3) For fiscal year 2006, $772,000,000.
            (4) For fiscal year 2007, $865,000,000.
            (5) For fiscal year 2008, $920,000,000.
    (b) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
            (1) For activities under section 905--
                    (A) for fiscal year 2004, $20,000,000;
                    (B) for fiscal year 2005, $30,000,000;
                    (C) for fiscal year 2006, $50,000,000;
                    (D) for fiscal year 2007, $50,000,000; and
                    (E) for fiscal year 2008, $50,000,000.
            (2) For activities under section 907--
                    (A) for fiscal year 2004, $4,000,000; and
                    (B) for each of fiscal years 2005 through 
                2008, $7,000,000.
            (3) For activities under section 908--
                    (A) for fiscal year 2004, $20,000,000;
                    (B) for fiscal year 2005, $25,000,000;
                    (C) for fiscal year 2006, $30,000,000;
                    (D) for fiscal year 2007, $35,000,000; and
                    (E) for fiscal year 2008, $40,000,000.
            (4) For activities under section 909, $2,000,000 
        for each of fiscal years 2005 through 2008.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for activities under section 905, 
$50,000,000 for each of fiscal years 2009 through 2013.
    (d) Limitation on Use of Funds.--None of the funds 
authorized to be appropriated under this section may be used 
for--
            (1) the issuance and implementation of energy 
        efficiency regulations;
            (2) the Weatherization Assistance Program under 
        part A of title IV of the Energy Conservation and 
        Production Act (42 U.S.C. 6861 et seq.);
            (3) the State Energy Program under part D of title 
        III of the Energy Policy and Conservation Act (42 
        U.S.C. 6321 et seq.); or
            (4) the Federal Energy Management Program under 
        part 3 of title V of the National Energy Conservation 
        Policy Act (42 U.S.C. 8251 et seq.).

SEC. 905. NEXT GENERATION LIGHTING INITIATIVE.

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

SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE.

    (a) Interagency Group.--Not later than 90 days after the 
date of enactment of this Act, the 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 (in this section referred to as the 
``Initiative''). The interagency group shall be co-chaired by 
appropriate officials of the Department and the Department of 
Commerce, who shall jointly arrange for the provision of 
necessary administrative support to the group.
    (b) Integration of Efforts.--The Initiative, working with 
the National Institute of Building Sciences, shall integrate 
Federal, State, and voluntary private sector efforts to reduce 
the costs of construction, operation, maintenance, and 
renovation of commercial, industrial, institutional, and 
residential buildings.
    (c) Plan.--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. The plan shall include--
            (1) research, development, demonstration, and 
        commercial application of systems and materials for new 
        construction and retrofit relating to the building 
        envelope and building system components; and
            (2) 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.--
            (1) Establishment.--The Secretary, in consultation 
        with the Secretary of Commerce and the Director of the 
        Office of Science and Technology Policy, shall 
        establish an advisory committee to--
                    (A) analyze and provide recommendations on 
                potential private sector roles and 
                participation in the Initiative; and
                    (B) review and provide recommendations on 
                the plan described in subsection (c).
            (2) Membership.--Membership of the advisory 
        committee shall include representatives with a broad 
        range of appropriate expertise, including expertise 
        in--
                    (A) building research and technology;
                    (B) architecture, engineering, and building 
                materials and systems; and
                    (C) the residential, commercial, and 
                industrial sectors of the construction 
                industry.
    (f) Construction.--Nothing in this section provides any 
Federal agency with new authority to regulate building 
performance.

SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Associated equipment.--The term ``associated 
        equipment'' means equipment located where the batteries 
        will be used that is necessary to enable the use of the 
        energy stored in the batteries.
            (2) Battery.--The term `battery'' means an energy 
        storage device that previously has been used to provide 
        motive power in a vehicle powered in whole or in part 
        by electricity.
    (b) Program.--The Secretary shall establish and conduct a 
research, development, demonstration, and commercial 
application program for the secondary use of batteries if the 
Secretary finds that there are sufficient numbers of such 
batteries to support the program. The program shall be--
            (1) designed to demonstrate the use of batteries in 
        secondary applications, including utility and 
        commercial power storage and power quality;
            (2) structured to evaluate the performance, 
        including useful service life and costs, of such 
        batteries in field operations, and the necessary 
        supporting infrastructure, including reuse and disposal 
        of batteries; and
            (3) coordinated with ongoing secondary battery use 
        programs at the National Laboratories and in industry.
    (c) Solicitation.--Not later than 180 days after the date 
of enactment of this Act, if the Secretary finds under 
subsection (b) that there are sufficient numbers of batteries 
to support the program, the Secretary shall solicit proposals 
to demonstrate the secondary use of batteries and associated 
equipment and supporting infrastructure in geographic locations 
throughout the United States. The Secretary may make additional 
solicitations for proposals if the Secretary determines that 
such solicitations are necessary to carry out this section.
    (d) Selection of Proposals.--
            (1) In general.--The Secretary shall, not later 
        than 90 days after the closing date established by the 
        Secretary for receipt of proposals under subsection 
        (c), select up to 5 proposals which may receive 
        financial assistance under this section, subject to the 
        availability of appropriations.
            (2) Diversity; environmental effect.--In selecting 
        proposals, the Secretary shall consider diversity of 
        battery type, geographic and climatic diversity, and 
        life-cycle environmental effects of the approaches.
            (3) Limitation.--No 1 project selected under this 
        section shall receive more than 25 percent of the funds 
        authorized for the program under this section.
            (4) Optimization of federal resources.--The 
        Secretary shall consider the extent of involvement of 
        State or local government and other persons in each 
        demonstration project to optimize use of Federal 
        resources.
            (5) Other criteria.--The Secretary may consider 
        such other criteria as the Secretary considers 
        appropriate.
    (e) Conditions.--The Secretary shall require that--
            (1) relevant information be provided to the 
        Department, the users of the batteries, the proposers, 
        and the battery manufacturers;
            (2) the proposer provide at least 50 percent of the 
        costs associated with the proposal; and
            (3) the proposer provide to the Secretary such 
        information regarding the disposal of the batteries as 
        the Secretary may require to ensure that the proposer 
        disposes of the batteries in accordance with applicable 
        law.

SEC. 908. ENERGY EFFICIENCY 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 President's annual budget request under section 
1105(a) of title 31, United States Code, a report on the 
activities of the Energy Efficiency Science Initiative, 
including a description of the process used to award the funds 
and an explanation of how the research relates to energy 
efficiency.

SEC. 909. ELECTRIC MOTOR CONTROL TECHNOLOGY.

    The Secretary shall conduct a research, development, 
demonstration, and commercial application program on advanced 
control devices to improve the energy efficiency of electric 
motors used in heating, ventilation, air conditioning, and 
comparable systems.

SEC. 910. ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS.

    (a) Grants.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall make grants to 
nonprofit institutions, State and local governments, or 
universities (or consortia thereof), to establish a 
geographically dispersed network of Advanced Energy Technology 
Transfer Centers, to be located in areas the Secretary 
determines have the greatest need of the services of such 
Centers.
    (b) Activities.--
            (1) In general.--Each Center shall operate a 
        program to encourage demonstration and commercial 
        application of advanced energy methods and technologies 
        through education and outreach to building and 
        industrial professionals, and to other individuals and 
        organizations with an interest in efficient energy use.
            (2) Advisory panel.--Each Center shall establish an 
        advisory panel to advise the Center on how best to 
        accomplish the activities under paragraph (1).
    (c) Application.--A person seeking a grant under this 
section shall submit to the Secretary an application in such 
form and containing such information as the Secretary may 
require. The Secretary may award a grant under this section to 
an entity already in existence if the entity is otherwise 
eligible under this section.
    (d) Selection Criteria.--The Secretary shall award grants 
under this section on the basis of the following criteria, at a 
minimum:
            (1) The ability of the applicant to carry out the 
        activities in subsection (b).
            (2) The extent to which the applicant will 
        coordinate the activities of the Center with other 
        entities, such as State and local governments, 
        utilities, and educational and research institutions.
    (e) Matching Funds.--The Secretary shall require a non-
Federal matching requirement of at least 50 percent of the 
costs of establishing and operating each Center.
    (f) Advisory Committee.--The Secretary shall establish an 
advisory committee to advise the Secretary on the establishment 
of Centers under this section. The advisory committee shall be 
composed of individuals with expertise in the area of advanced 
energy methods and technologies, including at least 1 
representative from--
            (1) State or local energy offices;
            (2) energy professionals;
            (3) trade or professional associations;
            (4) architects, engineers, or construction 
        professionals;
            (5) manufacturers;
            (6) the research community; and
            (7) nonprofit energy or environmental 
        organizations.
    (g) Definitions.--For purposes of this section:
            (1) Advanced energy methods and technologies.--The 
        term ``advanced energy methods and technologies'' means 
        all methods and technologies that promote energy 
        efficiency and conservation, including distributed 
        generation technologies, and life-cycle analysis of 
        energy use.
            (2) Center.--The term ``Center'' means an Advanced 
        Energy Technology Transfer Center established pursuant 
        to this section.
            (3) Distributed generation.--The term ``distributed 
        generation'' means an electric power generation 
        facility that is designed to serve retail electric 
        consumers at or near the facility site.

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for distributed energy and 
electric energy systems activities, including activities 
authorized under this subtitle:
            (1) For fiscal year 2004, $190,000,000.
            (2) For fiscal year 2005, $200,000,000.
            (3) For fiscal year 2006, $220,000,000.
            (4) For fiscal year 2007, $240,000,000.
            (5) For fiscal year 2008, $260,000,000.
    (b) Micro-Cogeneration Energy Technology.--From amounts 
authorized under subsection (a), $20,000,000 for each of fiscal 
years 2004 and 2005 is authorized for activities under section 
914.

SEC. 912. HYBRID DISTRIBUTED POWER SYSTEMS.

    (a) Requirement.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall develop and transmit 
to Congress a strategy for a comprehensive research, 
development, demonstration, and commercial application program 
to develop hybrid distributed power systems that combine--
            (1) 1 or more renewable electric power generation 
        technologies of 10 megawatts or less located near the 
        site of electric energy use; and
            (2) nonintermittent electric power generation 
        technologies suitable for use in a distributed power 
        system.
    (b) Contents.--The strategy shall--
            (1) identify the needs best met with such hybrid 
        distributed power systems and the technological 
        barriers to the use of such systems;
            (2) provide for the development of methods to 
        design, test, integrate into systems, and operate such 
        hybrid distributed power systems;
            (3) include, as appropriate, research, development, 
        demonstration, and commercial application on related 
        technologies needed for the adoption of such hybrid 
        distributed power systems, including energy storage 
        devices and environmental control technologies;
            (4) include research, development, demonstration, 
        and commercial application of interconnection 
        technologies for communications and controls of 
        distributed generation architectures, particularly 
        technologies promoting real-time response to power 
        market information and physical conditions on the 
        electrical grid; and
            (5) describe how activities under the strategy will 
        be integrated with other research, development, 
        demonstration, and commercial application activities 
        supported by the Department related to electric power 
        technologies.

SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM.

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

SEC. 914. MICRO-COGENERATION ENERGY TECHNOLOGY.

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

SEC. 915. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAM.

    The Secretary, within the sums authorized under section 
911(a), may provide financial assistance to coordinating 
consortia of interdisciplinary participants for demonstrations 
designed to accelerate the utilization 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. 916. RECIPROCATING POWER.

    The Secretary shall conduct a research, development, and 
demonstration program regarding fuel system optimization and 
emissions reduction after-treatment technologies for industrial 
reciprocating engines. Such after-treatment technologies shall 
use processes that reduce emissions by recirculating exhaust 
gases and shall be designed to be retrofitted to any new or 
existing diesel or natural gas engine used for power 
generation, peaking power generation, combined heat and power, 
or compression.

                      Subtitle C--Renewable Energy

SEC. 918. RENEWABLE ENERGY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for renewable energy research, 
development, demonstration, and commercial application 
activities, including activities authorized under this 
subtitle:
            (1) For fiscal year 2004, $480,000,000.
            (2) For fiscal year 2005, $550,000,000.
            (3) For fiscal year 2006, $610,000,000.
            (4) For fiscal year 2007, $659,000,000.
            (5) For fiscal year 2008, $710,000,000.
    (b) Bioenergy.--From the amounts authorized under 
subsection (a), the following sums are authorized to be 
appropriated to carry out section 919:
            (1) For fiscal year 2004, $135,425,000.
            (2) For fiscal year 2005, $155,600,000.
            (3) For fiscal year 2006, $167,650,000.
            (4) For fiscal year 2007, $180,000,000.
            (5) For fiscal year 2008, $192,000,000.
    (c) Concentrating Solar Power.--From amounts authorized 
under subsection (a), the following sums are authorized to be 
appropriated to carry out section 920:
            (1) For fiscal year 2004, $20,000,000.
            (2) For fiscal year 2005, $40,000,000.
            (3) For each of fiscal years 2006, 2007 and 2008, 
        $50,000,000.
    (d) Public Buildings.--From the amounts authorized under 
subsection (a), $30,000,000 for each of the fiscal years 2004 
through 2008 are authorized to be appropriated to carry out 
section 922.
    (e) Limits on Use of Funds.--
            (1) No funds for renewable support and 
        implementation.--None of the funds authorized to be 
        appropriated under this section may be used for 
        Renewable Support and Implementation.
            (2) Grants.--Of the funds authorized under 
        subsection (b), not less than $5,000,000 for each 
        fiscal year shall be made available for grants to 
        Historically Black Colleges and Universities, Tribal 
        Colleges, and Hispanic-Serving Institutions.
            (3) Regional field verification program.--Of the 
        funds authorized under subsection (a), not less than 
        $4,000,000 for each fiscal year shall be made available 
        for the Regional Field Verification Program of the 
        Department.
            (4) Off-stream pumped storage hydropower.--Of the 
        funds authorized under subsection (a), such sums as may 
        be necessary shall be made available for demonstration 
        projects of off-stream pumped storage hydropower.
    (f) Consultation.--In carrying out this subtitle, the 
Secretary, in consultation with the Secretary of Agriculture, 
shall demonstrate the use of advanced wind power technology, 
including combined use with coal gasification; biomass; 
geothermal energy systems; and other renewable energy 
technologies to assist in delivering electricity to rural and 
remote locations.

SEC. 919. BIOENERGY PROGRAMS.

    (a) Definitions.--For the purposes of this section:
            (1) The term ``agricultural byproducts'' includes 
        waste products, including poultry fat and poultry 
        waste.
            (2) The term ``cellulosic biomass'' means any 
        portion of a crop containing lignocellulose or 
        hemicellulose, including barley grain, grapeseed, 
        forest thinnings, rice bran, rice hulls, rice straw, 
        soybean matter, and sugarcane bagasse, or any crop 
        grown specifically for the purpose of producing 
        cellulosic feedstocks.
    (b) Program.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial 
application for bioenergy, including--
            (1) biopower energy systems;
            (2) biofuels;
            (3) bio-based products;
            (4) integrated biorefineries that may produce 
        biopower, biofuels, and bio-based products;
            (5) cross-cutting research and development in 
        feedstocks and enzymes; and
            (6) economic analysis.
    (c) Biofuels and Bio-Based Products.--The goals of the 
biofuels and bio-based products programs shall be to develop, 
in partnership with industry--
            (1) advanced biochemical and thermochemical 
        conversion technologies capable of making biofuels that 
        are price-competitive with gasoline or diesel in either 
        internal combustion engines or fuel cell-powered 
        vehicles, and bio-based products from a variety of 
        feedstocks, including grains, cellulosic biomass, and 
        other agricultural byproducts; and
            (2) advanced biotechnology processes capable of 
        making biofuels and bio-based products with emphasis on 
        development of biorefinery technologies using enzyme-
        based processing systems.

SEC. 920. CONCENTRATING SOLAR POWER RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall conduct a program of 
research and development to evaluate the potential of 
concentrating solar power for hydrogen production, including 
cogeneration approaches for both hydrogen and electricity. Such 
program shall take advantage of existing facilities to the 
extent possible and shall include--
            (1) development of optimized technologies that are 
        common to both electricity and hydrogen production;
            (2) evaluation of thermochemical cycles for 
        hydrogen production at the temperatures attainable with 
        concentrating solar power;
            (3) evaluation of materials issues for the 
        thermochemical cycles described in paragraph (2);
            (4) system architectures and economics studies; and
            (5) coordination with activities in the Advanced 
        Reactor Hydrogen Cogeneration Project on high 
        temperature materials, thermochemical cycles, and 
        economic issues.
    (b) Assessment.--In carrying out the program under this 
section, the Secretary shall--
            (1) assess conflicting guidance on the economic 
        potential of concentrating solar power for electricity 
        production received from the National Research Council 
        report entitled ``Renewable Power Pathways: A Review of 
        the U.S. Department of Energy's Renewable Energy 
        Programs'' in 2000 and subsequent Department-funded 
        reviews of that report; and
            (2) provide an assessment of the potential impact 
        of the technology before, or concurrent with, 
        submission of the fiscal year 2006 budget.
    (c) Report.--Not later than 5 years after the date of 
enactment of this Act, the Secretary shall provide a report to 
Congress on the economic and technical potential for 
electricity or hydrogen production, with or without 
cogeneration, with concentrating solar power, 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. 921. MISCELLANEOUS PROJECTS.

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

SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS.

    (a) Demonstration and Technology Transfer Program.--The 
Secretary shall establish a program for the demonstration of 
innovative technologies for solar and other renewable energy 
sources in buildings owned or operated by a State or local 
government, and for the dissemination of information resulting 
from such demonstration to interested parties.
    (b) Limit on Federal Funding.--The Secretary shall provide 
under this section no more than 40 percent of the incremental 
costs of the solar or other renewable energy source project 
funded.
    (c) Requirement.--As part of the application for awards 
under this section, the Secretary shall require all 
applicants--
            (1) to demonstrate a continuing commitment to the 
        use of solar and other renewable energy sources in 
        buildings they own or operate; and
            (2) to state how they expect any award to further 
        their transition to the significant use of renewable 
        energy.

SEC. 923. STUDY OF MARINE RENEWABLE ENERGY OPTIONS.

    (a) In General.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct a 
study on--
            (1) the feasibility of various methods of renewable 
        generation of energy from the ocean, including energy 
        from waves, tides, currents, and thermal gradients; and
            (2) the research, development, demonstration, and 
        commercial application activities required to make 
        marine renewable energy generation competitive with 
        other forms of electricity generation.
    (b) Transmittal.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall transmit the study 
to Congress along with the Secretary's recommendations for 
implementing the results of the study.

                       Subtitle D--Nuclear Energy

SEC. 924. NUCLEAR ENERGY.

    (a) Core Programs.--The following sums are authorized to be 
appropriated to the Secretary for nuclear energy research, 
development, demonstration, and commercial application 
activities, including activities authorized under this 
subtitle, other than those described in subsection (b):
            (1) For fiscal year 2004, $273,000,000.
            (2) For fiscal year 2005, $355,000,000.
            (3) For fiscal year 2006, $430,000,000.
            (4) For fiscal year 2007, $455,000,000.
            (5) For fiscal year 2008, $545,000,000.
    (b) Nuclear Infrastructure Support.--The following sums are 
authorized to be appropriated to the Secretary for activities 
under section 925(e):
            (1) For fiscal year 2004, $125,000,000.
            (2) For fiscal year 2005, $130,000,000.
            (3) For fiscal year 2006, $135,000,000.
            (4) For fiscal year 2007, $140,000,000.
            (5) For fiscal year 2008, $145,000,000.
    (c) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
            (1) For activities under section 926--
                    (A) for fiscal year 2004, $140,000,000;
                    (B) for fiscal year 2005, $145,000,000;
                    (C) for fiscal year 2006, $150,000,000;
                    (D) for fiscal year 2007, $155,000,000; and
                    (E) for fiscal year 2008, $275,000,000.
            (2) For activities under section 927--
                    (A) for fiscal year 2004, $35,200,000;
                    (B) for fiscal year 2005, $44,350,000;
                    (C) for fiscal year 2006, $49,200,000;
                    (D) for fiscal year 2007, $54,950,000; and
                    (E) for fiscal year 2008, $60,000,000.
            (3) For activities under section 929, for each of 
        fiscal years 2004 through 2008, $6,000,000.
    (d) Limitation on Use of Funds.--None of the funds 
authorized under this section may be used for decommissioning 
the Fast Flux Test Facility.

SEC. 925. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT 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.--The Secretary shall carry 
out a Nuclear Power 2010 Program, consistent with 
recommendations in the October 2001 report entitled ``A Roadmap 
to Deploy New Nuclear Power Plants in the United States by 
2010'' issued by the Nuclear Energy Research Advisory Committee 
of the Department. Whatever type of reactor is chosen for the 
hydrogen cogeneration project under subtitle C of title VI, 
that type shall not be addressed in the Program under this 
section. The Program shall include--
            (1) support for first-of-a-kind engineering design 
        and certification expenses of advanced nuclear power 
        plant designs, which offer improved safety and 
        economics over current conventional plants and the 
        promise of near-term to medium-term commercial 
        deployment;
            (2) action by the Secretary to encourage domestic 
        power companies to install new nuclear plant capacity 
        as soon as possible;
            (3) utilization of the expertise and capabilities 
        of industry, universities, and National Laboratories in 
        evaluation of advanced nuclear fuel cycles and fuels 
        testing;
            (4) consideration of proliferation-resistant 
        passively-safe, small reactors suitable for long-term 
        electricity production without refueling and suitable 
        for use in remote installations;
            (5) participation of international collaborators in 
        research, development, design, and deployment efforts 
        as appropriate and consistent with United States 
        interests in nonproliferation of nuclear weapons;
            (6) encouragement for university and industry 
        participation; and
            (7) selection of projects such as to strengthen the 
        competitive position of the domestic nuclear power 
        industrial infrastructure.
    (d) Generation IV Nuclear Energy Systems Initiative.--The 
Secretary shall carry out a Generation IV Nuclear Energy 
Systems Initiative to develop an overall technology plan and to 
support research and development necessary to make an informed 
technical decision about the most promising candidates for 
eventual commercial application. The Initiative shall examine 
advanced proliferation-resistant and passively safe reactor 
designs, including designs that--
            (1) are economically competitive with other 
        electric power generation plants;
            (2) have higher efficiency, lower cost, and 
        improved safety compared to reactors in operation on 
        the date of enactment of this Act;
            (3) use fuels that are proliferation-resistant and 
        have substantially reduced production of high-level 
        waste per unit of output; and
            (4) use improved instrumentation.
    (e) Nuclear Infrastructure Support.--The Secretary shall 
develop and implement a strategy for the facilities of the 
Office of Nuclear Energy, Science, and Technology and shall 
transmit a report containing the strategy along with the 
President's budget request to Congress for fiscal year 2006.

SEC. 926. ADVANCED FUEL CYCLE INITIATIVE.

    (a) In General.--The Secretary, through the Director of the 
Office of Nuclear Energy, Science, and Technology, shall 
conduct an advanced fuel recycling technology research and 
development program to evaluate proliferation-resistant fuel 
recycling and transmutation technologies 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, subject to annual 
review by the Secretary's Nuclear Energy Research Advisory 
Committee or other independent entity, as appropriate. 
Opportunities to enhance progress of the program through 
international cooperation should be sought.
    (b) Reports.--The Secretary shall report on the activities 
of the advanced fuel recycling technology research and 
development program as part of the Department's annual budget 
submission.

SEC. 927. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) Establishment.--The Secretary shall support a program 
to invest in human resources and infrastructure in the nuclear 
sciences and engineering and related fields (including health 
physics and nuclear and radiochemistry), consistent with 
departmental missions related to civilian nuclear research and 
development.
    (b) Duties.--In carrying out the program under this 
section, the Secretary shall establish fellowship and faculty 
assistance programs, as well as provide support for fundamental 
research and encourage collaborative research among industry, 
National Laboratories, and universities through the Nuclear 
Energy Research Initiative. The Secretary is encouraged to 
support activities addressing the entire fuel cycle through 
involvement of both the Office of Nuclear Energy, Science, and 
Technology and the Office of Civilian Radioactive Waste 
Management. The Secretary shall support communication and 
outreach related to nuclear science, engineering, and nuclear 
waste management, consistent with interests of the United 
States in nonproliferation of nuclear weapons capabilities.
    (c) Strengthening University Research and Training Reactors 
and Associated Infrastructure.--Activities under this section 
may include--
            (1) converting research and training reactors 
        currently using high-enrichment fuels to low-enrichment 
        fuels, upgrading operational instrumentation, and 
        sharing of reactors among institutions of higher 
        education;
            (2) providing technical assistance, in 
        collaboration with the United States nuclear industry, 
        in relicensing and upgrading research and training 
        reactors as part of a student training program; and
            (3) providing funding, through the Innovations in 
        Nuclear Infrastructure and Education Program, for 
        reactor improvements as part of a focused effort that 
        emphasizes research, training, and education.
    (d) University National Laboratory Interactions.--The 
Secretary shall develop sabbatical fellowship and visiting 
scientist programs to encourage sharing of personnel between 
National Laboratories and universities.
    (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 and training reactor at an institution of higher 
education used in the research project.

SEC. 928. SECURITY OF REACTOR DESIGNS.

    The Secretary, 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 the safety of reactor designs from natural 
phenomena and the security of reactor designs from deliberate 
attacks.

SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

    (a) Study.--The Secretary shall conduct a study and provide 
a report to Congress not later than August 1, 2004. The study 
shall--
            (1) survey industrial applications of large 
        radioactive sources, including well-logging sources;
            (2) review current domestic and international 
        Department, Department of Defense, Department of State, 
        and commercial programs to manage and dispose of 
        radioactive sources;
            (3) discuss disposal options and practices for 
        currently deployed or future sources and, if 
        deficiencies are noted in existing disposal options or 
        practices for either deployed or future sources, 
        recommend options to remedy deficiencies; and
            (4) develop a program plan for research and 
        development to develop alternatives to large industrial 
        sources that reduce safety, environmental, or 
        proliferation risks to either workers using the sources 
        or the public.
    (b) Program.--The Secretary shall establish a research and 
development program to implement the program plan developed 
under subsection (a)(4). The program shall include miniaturized 
particle accelerators for well-logging or other industrial 
applications and portable accelerators for production of short-
lived radioactive materials at an industrial site.

SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL.

    The Secretary shall conduct a study to determine the 
feasibility of deep borehole disposal of spent nuclear fuel and 
high-level radioactive waste. The study shall emphasize 
geological, chemical, and hydrological characterization of, and 
design of engineered structures for, deep borehole 
environments. Not later than 1 year after the date of enactment 
of this Act, the Secretary shall transmit the study to 
Congress.

                       Subtitle E--Fossil Energy

                       PART I--RESEARCH PROGRAMS

SEC. 931. FOSSIL ENERGY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for fossil energy research, 
development, demonstration, and commercial application 
activities, including activities authorized under this part:
            (1) For fiscal year 2004, $530,000,000.
            (2) For fiscal year 2005, $556,000,000.
            (3) For fiscal year 2006, $583,000,000.
            (4) For fiscal year 2007, $611,000,000.
            (5) For fiscal year 2008, $626,000,000.
    (b) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
            (1) For activities under section 932(b)(2), 
        $28,000,000 for each of the fiscal years 2004 through 
        2008.
            (2) For activities under section 934--
                    (A) for fiscal year 2004, $12,000,000;
                    (B) for fiscal year 2005, $15,000,000; and
                    (C) for each of fiscal years 2006 through 
                2008, $20,000,000.
            (3) For activities under section 935--
                    (A) for fiscal year 2004, $259,000,000;
                    (B) for fiscal year 2005, $272,000,000;
                    (C) for fiscal year 2006, $285,000,000;
                    (D) for fiscal year 2007, $298,000,000; and
                    (E) for fiscal year 2008, $308,000,000.
            (4) For the Office of Arctic Energy under section 
        3197 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (42 U.S.C. 
        7144d), $25,000,000 for each of fiscal years 2004 
        through 2008.
            (5) For activities under section 933, $4,000,000 
        for fiscal year 2004 and $2,000,000 for each of fiscal 
        years 2005 through 2008.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy 
under section 3197 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (42 U.S.C. 7144d), 
$25,000,000 for each of fiscal years 2009 through 2012.
    (d) Limits on Use of Funds.--
            (1) No funds for certain programs.--None of the 
        funds authorized under this section may be used for 
        Fossil Energy Environmental Restoration or Import/
        Export Authorization.
            (2) Institutions of higher education.--Of the funds 
        authorized under subsection (b)(2), not less than 20 
        percent of the funds appropriated for each fiscal year 
        shall be dedicated to research and development carried 
        out at institutions of higher education.

SEC. 932. OIL AND GAS RESEARCH PROGRAMS.

    (a) Oil and Gas Research.--The Secretary shall conduct a 
program of research, development, demonstration, and commercial 
application on oil and gas, including--
            (1) exploration and production;
            (2) gas hydrates;
            (3) reservoir life and extension;
            (4) transportation and distribution infrastructure;
            (5) ultraclean fuels;
            (6) heavy oil and oil shale;
            (7) related environmental research; and
            (8) compressed natural gas marine transport.
    (b) Fuel Cells.--
            (1) In general.--The Secretary shall conduct a 
        program of research, development, demonstration, and 
        commercial application on fuel cells for low-cost, 
        high-efficiency, fuel-flexible, modular power systems.
            (2) Improved manufacturing production and 
        processes.--The demonstrations under paragraph (1) 
        shall include fuel cell technology for commercial, 
        residential, and transportation applications, and 
        distributed generation systems, utilizing improved 
        manufacturing production and processes.
    (c) Natural Gas and Oil Deposits Report.--Not later than 2 
years after the date of enactment of this Act, and every 2 
years thereafter, the Secretary of the Interior, in 
consultation with other appropriate Federal agencies, shall 
transmit a report to Congress of the latest estimates of 
natural gas and oil reserves, reserves growth, and undiscovered 
resources in Federal and State waters off the coast of 
Louisiana and Texas.
    (d) Integrated Clean Power and Energy Research.--
            (1) National center or consortium of excellence.--
        The Secretary shall establish a national center or 
        consortium of excellence in clean energy and power 
        generation, utilizing the resources of the existing 
        Clean Power and Energy Research Consortium, to address 
        the Nation's critical dependence on energy and the need 
        to reduce emissions.
            (2) Program.--The center or consortium shall 
        conduct a program of research, development, 
        demonstration, and commercial application on 
        integrating the following focus areas:
                    (A) Efficiency and reliability of gas 
                turbines for power generation.
                    (B) Reduction in emissions from power 
                generation.
                    (C) Promotion of energy conservation 
                issues.
                    (D) Effectively utilizing alternative fuels 
                and renewable energy.
                    (E) Development of advanced materials 
                technology for oil and gas exploration and 
                utilization in harsh environments.
                    (F) Education on energy and power 
                generation issues.

SEC. 933. TECHNOLOGY TRANSFER.

    The Secretary shall establish a competitive program to 
award a contract to a nonprofit entity for the purpose of 
transferring technologies developed with public funds. The 
entity selected under this section shall have experience in 
offshore oil and gas technology research management, in the 
transfer of technologies developed with public funds to the 
offshore and maritime industry, and in management of an 
offshore and maritime industry consortium. The program 
consortium selected under section 942 shall not be eligible for 
selection under this section. When appropriate, the Secretary 
shall consider utilizing the entity selected under this section 
when implementing the activities authorized by section 975.

SEC. 934. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

    (a) Establishment.--The Secretary shall carry out a program 
of research and development on coal mining technologies. The 
Secretary shall cooperate with appropriate Federal agencies, 
coal producers, trade associations, equipment manufacturers, 
institutions of higher education with mining engineering 
departments, and other relevant entities.
    (b) Program.--The 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 electromagnetic wave 
        imaging and radar techniques for horizontal drilling in 
        coal beds in order to increase methane recovery 
        efficiency, prevent spoilage of domestic coal reserves, 
        and minimize water disposal associated with methane 
        extraction; and
            (4) expand mining research capabilities at 
        institutions of higher education.

SEC. 935. COAL AND RELATED TECHNOLOGIES PROGRAM.

    (a) In General.--In addition to the programs authorized 
under title IV, the Secretary shall conduct a program of 
technology research, development, demonstration, and commercial 
application for coal and power systems, including programs 
tofacilitate production and generation of coal-based power through--
            (1) innovations for existing plants;
            (2) integrated gasification combined cycle;
            (3) advanced combustion systems;
            (4) turbines for synthesis gas derived from coal;
            (5) carbon capture and sequestration research and 
        development;
            (6) coal-derived transportation fuels and 
        chemicals;
            (7) solid fuels and feedstocks;
            (8) advanced coal-related research;
            (9) advanced separation technologies; and
            (10) a joint project for permeability enhancement 
        in coals for natural gas production and carbon dioxide 
        sequestration.
    (b) Cost and Performance Goals.--In carrying out programs 
authorized by this section, the Secretary shall identify cost 
and performance goals for coal-based technologies that would 
permit the continued cost-competitive use of coal for 
electricity generation, as chemical feedstocks, and as 
transportation fuel in 2007, 2015, and the years after 2020. In 
establishing such cost and performance goals, the Secretary 
shall--
            (1) consider activities and studies undertaken to 
        date by industry in cooperation with the Department in 
        support of such assessment;
            (2) consult with interested entities, including 
        coal producers, industries using coal, organizations to 
        promote coal and advanced coal technologies, 
        environmental organizations, and organizations 
        representing workers;
            (3) not later than 120 days after the date of 
        enactment of this Act, publish in the Federal Register 
        proposed draft cost and performance goals for public 
        comments; and
            (4) not later than 180 days after the date of 
        enactment of this Act and every 4 years thereafter, 
        submit to Congress a report describing final cost and 
        performance goals for such technologies that includes a 
        list of technical milestones as well as an explanation 
        of how programs authorized in this section will not 
        duplicate the activities authorized under the Clean 
        Coal Power Initiative authorized under subtitle A of 
        title IV.

SEC. 936. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

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

SEC. 937. FISCHER-TROPSCH DIESEL FUEL LOAN GUARANTEE PROGRAM.

    (a) Definition of Fischer-Tropsch Diesel Fuel.--In this 
section, the term ``Fischer-Tropsch diesel fuel'' means diesel 
fuel that--
            (1) contains less than 10 parts per million sulfur; 
        and
            (2) is produced through the Fischer-Tropsch 
        liquification process from coal or waste from coal that 
        was mined in the United States.
    (b) Loan Guarantees.--
            (1) Establishment of program.--The Secretary of 
        Energy shall establish a program to provide guarantees 
        of loans by private lending institutions for the 
        construction of facilities for the production of 
        Fischer-Tropsch diesel fuel and commercial byproducts 
        of that production.
            (2) Requirements.--The Secretary may provide a loan 
        guarantee under paragraph (1) if--
                    (A) without a loan guarantee, credit is not 
                available to the applicant under reasonable 
                terms or conditions sufficient to finance the 
                construction of a facility described in 
                paragraph (1);
                    (B) the prospective earning power of the 
                applicant and the character and value of the 
                security pledged provide a reasonable assurance 
                of repayment of the loan to be guaranteed in 
                accordance with the terms of the loan; and
                    (C) the loan bears interest at a rate 
                determined by the Secretary to be reasonable, 
                taking into account the current average yield 
                on outstanding obligations of the United States 
                with remaining periods of maturity comparable 
                to the maturity of the loan.
            (3) Criteria.--In selecting recipients of loan 
        guarantees from among applicants, the Secretary shall 
        give preference to proposals that--
                    (A) meet all Federal and State permitting 
                requirements;
                    (B) are most likely to be successful; and
                    (C) are located in local markets that have 
                the greatest need for the facility because of--
                            (i) the availability of domestic 
                        coal or coal waste for conversion; or
                            (ii) a projected high level of 
                        demand for Fischer-Tropsch diesel fuel 
                        or other commercial byproducts of the 
                        facility.
            (4) Maturity.--A loan guaranteed under paragraph 
        (1) shall have a maturity of not more than 25 years.
            (5) Terms and conditions.--The loan agreement for a 
        loan guaranteed under paragraph (1) shall provide that 
        no provision of the loan may be amended or waived 
        without the consent of the Secretary.
            (6) Guarantee fee.--A recipient of a loan guarantee 
        under paragraph (1) shall pay the Secretary an amount 
        to be determined by the Secretary to be sufficient to 
        cover the administrative costs of the Secretary 
        relating to the loan guarantee.
            (7) Full faith and credit.--
                    (A) In general.--The full faith and credit 
                of the United States is pledged to payment of 
                loan guarantees made under this section.
                    (B) Conclusive evidence.--Any loan 
                guarantee made by the Secretary under this 
                section shall be conclusive evidence of the 
                eligibility of the loan for the guarantee with 
                respect to principal and interest.
                    (C) Validity.--The validity of a loan 
                guarantee shall be incontestable in the hands 
                of a holder of the guaranteed loan.
            (8) Reports.--Until each guaranteed loan under this 
        section is repaid in full, the Secretary shall annually 
        submit to Congress a report on the activities of the 
        Secretary under this section.
            (9) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this section.
            (10) Termination of authority.--The authority of 
        the Secretary to issue a new loan guarantee under 
        paragraph (1) terminates on the date that is 5 years 
        after the date of enactment of this Act.

   PART II--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES

SEC. 941. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall carry out a program 
under this part of research, development, demonstration, and 
commercial application of technologies for ultra-deepwater and 
unconventional natural gas and other petroleum resource 
exploration and production, including addressing the technology 
challenges for small producers, safe operations, and 
environmental mitigation (including reduction of greenhouse gas 
emissions and sequestration of carbon).
    (b) Program Elements.--The program under this part shall 
address the following areas, including improving safety and 
minimizing environmental impacts of activities within each 
area:
            (1) Ultra-deepwater technology, including drilling 
        to formations in the Outer Continental Shelf to depths 
        greater than 15,000 feet.
            (2) Ultra-deepwater architecture.
            (3) Unconventional natural gas and other petroleum 
        resource exploration and production technology, 
        including the technology challenges of small producers.
    (c) Limitation on Location of Field Activities.--Field 
activities under the program under this part shall be carried 
out only--
            (1) in--
                    (A) areas in the territorial waters of the 
                United States not under any Outer Continental 
                Shelf moratorium as of September 30, 2002;
                    (B) areas onshore in the United States on 
                public land administered by the Secretary of 
                the Interior available for oil and gas leasing, 
                where consistent with applicable law and land 
                use plans; and
                    (C) areas onshore in the United States on 
                State or private land, subject to applicable 
                law; and
            (2) with the approval of the appropriate Federal or 
        State land management agency or private land owner.
    (d) Research at National Energy Technology Laboratory.--The 
Secretary, through the National Energy Technology Laboratory, 
shall carry out research complementary to research under 
subsection (b).
    (e) Consultation With Secretary of the Interior.--In 
carrying out this part, the Secretary shall consult regularly 
with the Secretary of the Interior.

SEC. 942. ULTRA-DEEPWATER PROGRAM.

    (a) In general.--The Secretary shall carry out the 
activities under section 941(a), to maximize the use of the 
ultra-deepwater natural gas and other petroleum resources of 
the United States by increasing the supply of such resources, 
through reducing the cost and increasing the efficiency of 
exploration for and production of such resources, while 
improving safety and minimizing environmental impacts.
    (b) Role of the Secretary.--The Secretary shall have 
ultimate responsibility for, and oversight of, all aspects of 
the program under this section.
    (c) Role of the Program Consortium.--
            (1) In general.--The Secretary may contract with a 
        consortium to--
                    (A) manage awards pursuant to subsection 
                (f)(4);
                    (B) make recommendations to the Secretary 
                for project solicitations;
                    (C) disburse funds awarded under subsection 
                (f) as directed by the Secretary in accordance 
                with the annual plan under subsection (e); and
                    (D) carry out other activities assigned to 
                the program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as 
        specifically authorized under this section.
            (3) Conflict of interest.--
                    (A) Procedures.--The Secretary shall 
                establish procedures--
                            (i) to ensure that each board 
                        member, officer, or employee of the 
                        program consortium who is in a 
                        decision-making capacity under 
                        subsection (f)(3) or (4) shall disclose 
                        to the Secretary any financial 
                        interests in, or financial 
                        relationships with, applicants for or 
                        recipients of awards under this 
                        section, including those of his or her 
                        spouse or minor child, unless such 
                        relationships or interests would be 
                        considered to be remote or 
                        inconsequential; and
                            (ii) to require any board member, 
                        officer, or employee with a financial 
                        relationship or interest disclosed 
                        under clause (i) to recuse himself or 
                        herself from any review under 
                        subsection (f)(3) or oversight under 
                        subsection (f)(4) with respect to such 
                        applicant or recipient.
                    (B) Failure to comply.--The Secretary may 
                disqualify an application or revoke an award 
                under this section if a board member, officer, 
                or employee has failed to comply with 
                procedures required under subparagraph (A)(ii).
    (d) Selection of the Program Consortium.--
            (1) In general.--The Secretary shall select the 
        program consortium through an open, competitive 
        process.
            (2) Members.--The program consortium may include 
        corporations, trade associations, institutions of 
        higher education, National Laboratories, or other 
        research institutions. After submitting a proposal 
        under paragraph (4), the program consortium may not add 
        members without the consent of the Secretary.
            (3) Tax status.--The program consortium shall be an 
        entity that is exempt from tax under section 501(c)(3) 
        of the Internal Revenue Code of 1986.
            (4) Schedule.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        solicit proposals from eligible consortia to perform 
        the duties in subsection (c)(1), which shall be 
        submitted not later than 360 days after the date of 
        enactment of this Act. The Secretary shall select the 
        program consortium not later than 18 months after such 
        date of enactment.
            (5) Application.--Applicants shall submit a 
        proposal including such information as the Secretary 
        may require. At a minimum, each proposal shall--
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the 
                consortium, including any provisions relating 
                to intellectual property; and
                    (C) describe how the applicant would carry 
                out the activities of the program consortium 
                under this section.
            (6) Eligibility.--To be eligible to be selected as 
        the program consortium, an applicant must be an entity 
        whose members collectively have demonstrated 
        capabilities in planning and managing research, 
        development, demonstration, and commercial application 
        programs in natural gas or other petroleum exploration 
        or production.
            (7) Criterion.--The Secretary shall consider the 
        amount of the fee an applicant proposes to receive 
        under subsection (g) in selecting a consortium under 
        this section.
    (e) Annual Plan.--
            (1) In general.--The program under this section 
        shall be carried out pursuant to an annual plan 
        prepared by the Secretary in accordance with paragraph 
        (2).
            (2) Development.--
                    (A) Solicitation of recommendations.--
                Before drafting an annual plan under this 
                subsection, the Secretary shall solicit 
                specific written recommendations from the 
                program consortium for each element to be 
                addressed in the plan, including those 
                described in paragraph (4). The Secretary may 
                request that the program consortium submit its 
                recommendations in the form of a draft annual 
                plan.
                    (B) Submission of recommendations; other 
                comment.--The Secretary shall submit the 
                recommendations of the program consortium under 
                subparagraph (A) to the Ultra-Deepwater 
                Advisory Committee established under section 
                945(a) for review, and such Advisory Committee 
                shall provide to the Secretary written comments 
                by a date determined by the Secretary. The 
                Secretary may also solicit comments from any 
                other experts.
                    (C) Consultation.--The Secretary shall 
                consult regularly with the program consortium 
                throughout the preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to 
        Congress and publish in the Federal Register the 
annualplan, along with any written comments received under paragraph 
(2)(A) and (B).
            (4) Contents.--The annual plan shall describe the 
        ongoing and prospective activities of the program under 
        this section and shall include--
                    (A) a list of any solicitations for awards 
                that the Secretary plans to issue to carry out 
                research, development, demonstration, or 
                commercial application activities, including 
                the topics for such work, who would be eligible 
                to apply, selection criteria, and the duration 
                of awards; and
                    (B) a description of the activities 
                expected of the program consortium to carry out 
                subsection (f)(4).
            (5) Estimates of increased royalty receipts.--The 
        Secretary, in consultation with the Secretary of the 
        Interior, shall provide an annual report to Congress 
        with the President's budget on the estimated cumulative 
        increase in Federal royalty receipts (if any) resulting 
        from the implementation of this part. The initial 
        report under this paragraph shall be submitted in the 
        first President's budget following the completion of 
        the first annual plan required under this subsection.
    (f) Awards.--
            (1) In general.--The Secretary shall make awards to 
        carry out research, development, demonstration, and 
        commercial application activities under the program 
        under this section. The program consortium shall not be 
        eligible to receive such awards, but members of the 
        program consortium may receive such awards.
            (2) Proposals.--The Secretary shall solicit 
        proposals for awards under this subsection in such 
        manner and at such time as the Secretary may prescribe, 
        in consultation with the program consortium.
            (3) Review.--The Secretary shall make awards under 
        this subsection through a competitive process, which 
        shall include a review by individuals selected by the 
        Secretary. Such individuals shall include, for each 
        application, Federal officials, the program consortium, 
        and non-Federal experts who are not board members, 
        officers, or employees of the program consortium or of 
        a member of the program consortium.
            (4) Oversight.--
                    (A) In general.--The program consortium 
                shall oversee the implementation of awards 
                under this subsection, consistent with the 
                annual plan under subsection (e), including 
                disbursing funds and monitoring activities 
                carried out under such awards for compliance 
                with the terms and conditions of the awards.
                    (B) Effect.--Nothing in subparagraph (A) 
                shall limit the authority or responsibility of 
                the Secretary to oversee awards, or limit the 
                authority of the Secretary to review or revoke 
                awards.
                    (C) Provision of information.--The 
                Secretary shall provide to the program 
                consortium the information necessary for the 
                program consortium to carry out its 
                responsibilities under this paragraph.
    (g) Administrative Costs.--
            (1) In general.--To compensate the program 
        consortium for carrying out its activities under this 
        section, the Secretary shall provide to the program 
        consortium funds sufficient to administer the program. 
        This compensation may include a management fee 
        consistent with Department of Energy contracting 
        practices and procedures.
            (2) Advance.--The Secretary shall advance funds to 
        the program consortium upon selection of the 
        consortium, which shall be deducted from amounts to be 
        provided under paragraph (1).
    (h) Audit.--The Secretary shall retain an independent, 
commercial auditor to determine the extent to which funds 
provided to the program consortium, and funds provided under 
awards made under subsection (f), have been expended in a 
manner consistent with the purposes and requirements of this 
part. The auditor shall transmit a report annually to the 
Secretary, who shall transmit the report to Congress, along 
with a plan to remedy any deficiencies cited in the report.

SEC. 943. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES 
                    PROGRAM.

    (a) In General.--The Secretary shall carry out activities 
under subsection 941(b)(3), to maximize the use of the onshore 
unconventional natural gas and other petroleum resources of the 
United States, by increasing the supply of such resources, 
through reducing the cost and increasing the efficiency of 
exploration for and production of such resources, while 
improving safety and minimizing environmental impacts.
    (b) Awards.--
            (1) In general.--The Secretary shall carry out this 
        section through awards to research consortia made 
        through an open, competitive process. As a condition of 
        award of funds, qualified research consortia shall--
                    (A) demonstrate capability and experience 
                in unconventional onshore natural gas or other 
                petroleum research and development;
                    (B) provide a research plan that 
                demonstrates how additional natural gas or oil 
                production will be achieved; and
                    (C) at the request of the Secretary, 
                provide technical advice to the Secretary for 
                the purposes of developing the annual plan 
                required under subsection (e).
            (2) Production potential.--The Secretary shall seek 
        to ensure that the number and types of awards made 
        under this subsection have reasonable potential to lead 
        to additional oil and natural gas production on Federal 
        lands.
            (3) Schedule.--To carry out this subsection, not 
        later than 180 days after the date of enactment of this 
        Act, the Secretary shall solicit proposals from 
        research consortia, which shall be submitted not later 
        than 360 days after the date of enactment of this Act. 
        The Secretary shall select the first group of research 
        consortia to receive awards under this subsection not 
        later than 18 months after such date of enactment.
    (c) Audit.--The Secretary shall retain an independent, 
commercial auditor to determine the extent to which funds 
provided under awards made under this section have been 
expended in a manner consistent with the purposes and 
requirements of this part. The auditor shall transmit a report 
annually to the Secretary, who shall transmit the report to 
Congress, along with a plan to remedy any deficiencies cited in 
the report.
    (d) Focus Areas for Awards.--
            (1) Unconventional resources.--Awards from 
        allocations under section 949(d)(2) shall focus on 
        areas including advanced coalbed methane, deep 
        drilling, natural gas production from tight sands, 
        natural gas production from gas shales, stranded gas, 
        innovative exploration and production techniques, 
        enhanced recovery techniques, and environmental 
        mitigation of unconventional natural gas and other 
        petroleum resources exploration and production.
            (2) Small producers.--Awards from allocations under 
        section 949(d)(3) shall be made to consortia consisting 
        of small producers or organized primarily for the 
        benefit of small producers, and shall focus on areas 
        including complex geology involving rapid changes in 
        the type and quality of the oil and gas reservoirs 
        across the reservoir; low reservoir pressure; 
        unconventional natural gas reservoirs in coalbeds, deep 
        reservoirs, tight sands, or shales; and unconventional 
        oil reservoirs in tar sands and oil shales.
    (e) Annual Plan.--
            (1) In general.--The program under this section 
        shall be carried out pursuant to an annual plan 
        prepared by the Secretary in accordance with paragraph 
        (2).
            (2) Development.--
                    (A) Written recommendations.--Before 
                drafting an annual plan under this subsection, 
                the Secretary shall solicit specific written 
                recommendations from the research consortia 
                receiving awards under subsection (b) and the 
                Unconventional Resources Technology Advisory 
                Committee for each element to be addressed in 
                the plan, including those described in 
                subparagraph (D).
                    (B) Consultation.--The Secretary shall 
                consult regularly with the research consortia 
                throughout the preparation of the annual plan.
                    (C) Publication.--The Secretary shall 
                transmit to Congress and publish in the Federal 
                Register the annual plan, along with any 
                written comments received under subparagraph 
                (A).
                    (D) Contents.--The annual plan shall 
                describe the ongoing and prospective activities 
                under this section and shall include a list of 
                any solicitations for awards that the Secretary 
                plans to issue to carry out research, 
                development, demonstration, or commercial 
                application activities, including the topics 
                for such work, who would be eligible to apply, 
                selection criteria, and the duration of awards.
            (3) Estimates of increased royalty receipts.--The 
        Secretary, in consultation with the Secretary of the 
        Interior, shall provide an annual report to Congress 
        with the President's budget on the estimated cumulative 
        increase in Federal royalty receipts (if any) resulting 
        from the implementation of this part. The initial 
        report under this paragraph shall be submitted in the 
        first President's budget following the completion of 
        the first annual plan required under this subsection.
    (f) Activities by the United States Geological Survey.--The 
Secretary of the Interior, through the United States Geological 
Survey, shall, where appropriate, carry out programs of long-
term research to complement the programs under this section.

SEC. 944. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) Demonstration Projects.--An application for an award 
under this part for a demonstration project shall describe with 
specificity the intended commercial use of the technology to be 
demonstrated.
    (b) Flexibility in Locating Demonstration Projects.--
Subject to the limitation in section 941(c), a demonstration 
project under this part relating to an ultra-deepwater 
technology or an ultra-deepwater architecture may be conducted 
in deepwater depths.
    (c) Intellectual Property Agreements.--If an award under 
this part is made to a consortium (other than the program 
consortium), the consortium shall provide to the Secretary a 
signed contract agreed to by all members of the consortium 
describing the rights of each member to intellectual property 
used or developed under the award.
    (d) Technology Transfer.--2.5 percent of the amount of each 
award made under this part shall be designated for technology 
transfer and outreach activities under this title.
    (e) Cost Sharing Reduction for Independent Producers.--In 
applying the cost sharing requirements under section 972 to an 
award under this part the Secretary may reduce or eliminate the 
non-Federal requirement if the Secretary determines that the 
reduction is necessary and appropriate considering the 
technological risks involved in the project.

SEC. 945. ADVISORY COMMITTEES.

    (a) Ultra-Deepwater Advisory Committee.--
            (1) Establishment.--Not later than 270 days after 
        the date of enactment of this Act, the Secretary shall 
        establish an advisory committee to be known as the 
        Ultra-Deepwater Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by 
        the Secretary including--
                    (A) individuals with extensive research 
                experience or operational knowledge of offshore 
                natural gas and other petroleum exploration and 
                production;
                    (B) individuals broadly representative of 
                the affected interests in ultra-deepwater 
                natural gas and other petroleum production, 
                including interests in environmental protection 
                and safe operations;
                    (C) no individuals who are Federal 
                employees; and
                    (D) no individuals who are board members, 
                officers, or employees of the program 
                consortium.
            (3) Duties.--The advisory committee under this 
        subsection shall--
                    (A) advise the Secretary on the development 
                and implementation of programs under this part 
                related to ultra-deepwater natural gas and 
                other petroleum resources; and
                    (B) carry out section 942(e)(2)(B).
            (4) Compensation.--A member of the advisory 
        committee under this subsection shall serve without 
        compensation but shall receive travel expenses in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
    (b) Unconventional Resources Technology Advisory 
Committee.--
            (1) Establishment.--Not later than 270 days after 
        the date of enactment of this Act, the Secretary shall 
        establish an advisory committee to be known as the 
        Unconventional Resources Technology Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by 
        the Secretary including--
                    (A) a majority of members who are employees 
                or representatives of independent producers of 
                natural gas and other petroleum, including 
                small producers;
                    (B) individuals with extensive research 
                experience or operational knowledge of 
                unconventional natural gas and other petroleum 
                resource exploration and production;
                    (C) individuals broadly representative of 
                the affected interests in unconventional 
                natural gas and other petroleum resource 
                exploration and production, including interests 
                in environmental protection and safe 
                operations; and
                    (D) no individuals who are Federal 
                employees.
            (3) Duties.--The advisory committee under this 
        subsection shall advise the Secretary on the 
        development and implementation of activities under this 
        part related to unconventional natural gas and other 
        petroleum resources.
            (4) Compensation.--A member of the advisory 
        committee under this subsection shall serve without 
        compensation but shall receive travel expenses in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
    (c) Prohibition.--No advisory committee established under 
this section shall make recommendations on funding awards to 
particular consortia or other entities, or for specific 
projects.

SEC. 946. LIMITS ON PARTICIPATION.

    An entity shall be eligible to receive an award under this 
part only if the Secretary finds--
            (1) that the entity's participation in the program 
        under this part would be in the economic interest of 
        the United States; and
            (2) that either--
                    (A) the entity is a United States-owned 
                entity organized under the laws of the United 
                States; or
                    (B) the entity is organized under the laws 
                of the United States and has a parent entity 
                organized under the laws of a country that 
                affords--
                            (i) to United States-owned entities 
                        opportunities, comparable to those 
                        afforded to any other entity, to 
                        participate in any cooperative research 
                        venture similar to those authorized 
                        under this part;
                            (ii) to United States-owned 
                        entities local investment opportunities 
                        comparable to those afforded to any 
                        other entity; and
                            (iii) adequate and effective 
                        protection for the intellectual 
                        property rights of United States-owned 
                        entities.

SEC. 947. SUNSET.

    The authority provided by this part shall terminate on 
September 30, 2011.

SEC. 948. DEFINITIONS.

    In this part:
            (1) Deepwater.--The term ``deepwater'' means a 
        water depth that is greater than 200 but less than 
        1,500 meters.
            (2) Independent producer of oil or gas.--
                    (A) In general.--The term ``independent 
                producer of oil or gas'' means any person that 
                produces oil or gas other than a person to whom 
                subsection (c) of section 613A of the Internal 
                Revenue Code of 1986 does not apply by reason 
                of paragraph (2) (relating to certain 
                retailers) or paragraph (4) (relating to 
                certain refiners) of section 613A(d) of such 
                Code.
                    (B) Rules for applying paragraphs (2) and 
                (4) of section 613a(d).--For purposes of 
                subparagraph (A), paragraphs (2) and (4) of 
                section 613A(d) of the Internal Revenue Code of 
                1986 shall be applied by substituting 
                ``calendar year'' for ``taxable year'' each 
                place it appears in such paragraphs.
            (3) Program consortium.--The term ``program 
        consortium'' means the consortium selected under 
        section 942(d).
            (4) Remote or inconsequential.--The term ``remote 
        or inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics 
        under section 208(b)(2) of title 18, United States 
        Code.
            (5) Small producer.--The term ``small producer'' 
        means an entity organized under the laws of the United 
        States with production levels of less than 1,000 
        barrels per day of oil equivalent.
            (6) Ultra-deepwater.--The term ``ultra-deepwater'' 
        means a water depth that is equal to or greater than 
        1,500 meters.
            (7) Ultra-deepwater architecture.--The term 
        ``ultra-deepwater architecture'' means the integration 
        of technologies for the exploration for, or production 
        of, natural gas or other petroleum resources located at 
        ultra-deepwater depths.
            (8) Ultra-deepwater technology.--The term ``ultra-
        deepwater technology'' means a discrete technology that 
        is specially suited to address 1 or more challenges 
        associated with the exploration for, or production of, 
        natural gas or other petroleum resources located at 
        ultra-deepwater depths.
            (9) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and 
        other petroleum resource'' means natural gas and other 
        petroleum resource located onshore in an economically 
        inaccessible geological formation, including resources 
        of small producers.

SEC. 949. FUNDING.

    (a) In General.--
            (1) Oil and gas lease income.--For each of fiscal 
        years 2004 through 2013, from any Federal royalties, 
        rents, and bonuses derived from Federal onshore and 
        offshore oil and gas leases issued under the Outer 
        Continental Shelf Lands Act and the Mineral Leasing Act 
        which are deposited in the Treasury, and after 
        distribution of any such funds as described in 
        subsection (c), $150,000,000 shall be deposited into 
        the Ultra-Deepwater and Unconventional Natural Gas and 
        Other Petroleum Research Fund (in this section referred 
        to as the Fund). For purposes of this section, the term 
        ``royalties'' excludes proceeds from the sale of 
        royalty production taken in kind and royalty production 
        that is transferred under section 27(a)(3) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
            (2) Authorization of appropriations.--In addition 
        to amounts described in paragraph (1), there are 
        authorized to be appropriated to the Secretary, to be 
        deposited in the Fund, $50,000,000 for each of the 
        fiscal years 2004 through 2013, to remain available 
        until expended.
    (b) Obligational Authority.--Monies in the Fund shall be 
available to the Secretary for obligation under this part 
without fiscal year limitation, to remain available until 
expended.
    (c) Prior Distributions.--The distributions described in 
subsection (a) are those required by law--
                    (A) to States and to the Reclamation Fund 
                under the Mineral Leasing Act (30 U.S.C. 
                191(a)); and
                    (B) to other funds receiving monies from 
                Federal oil and gas leasing programs, 
                including--
                            (i) any recipients pursuant to 
                        section 8(g) of the Outer Continental 
                        Shelf Lands Act (43 U.S.C. 1337(g));
                            (ii) the Land and Water 
                        Conservation Fund, pursuant to section 
                        2(c) of the Land and Water Conservation 
                        Fund Act of 1965 (16 U.S.C. 4601-5(c));
                            (iii) the Historic Preservation 
                        Fund, pursuant to section 108 of the 
                        National Historic Preservation Act (16 
                        U.S.C. 470h); and
                            (iv) the Secure Energy Reinvestment 
                        Fund.
    (d) Allocation.--Amounts obligated from the Fund under this 
section in each fiscal year shall be allocated as follows:
            (1) 50 percent shall be for activities under 
        section 942.
            (2) 35 percent shall be for activities under 
        section 943(d)(1).
            (3) 10 percent shall be for activities under 
        section 943(d)(2).
            (4) 5 percent shall be for research under section 
        941(d).
    (e) Fund.--There is hereby established in the Treasury of 
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum 
Research Fund''.

                          Subtitle F--Science

SEC. 951. SCIENCE.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for 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 958(c)(2)(C), and including basic energy 
sciences, advanced scientific computing research, biological 
and environmental research, fusion energy sciences, high energy 
physics, nuclear physics, and research analysis and 
infrastructure support:
            (1) For fiscal year 2004, $3,785,000,000.
            (2) For fiscal year 2005, $4,153,000,000.
            (3) For fiscal year 2006, $4,618,000,000.
            (4) For fiscal year 2007, $5,310,000,000.
            (5) For fiscal year 2008, $5,800,000,000.
    (b) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
            (1) For activities of the Fusion Energy Sciences 
        Program, including activities under sections 952 and 
        953--
                    (A) for fiscal year 2004, $335,000,000;
                    (B) for fiscal year 2005, $349,000,000;
                    (C) for fiscal year 2006, $362,000,000;
                    (D) for fiscal year 2007, $377,000,000; and
                    (E) for fiscal year 2008, $393,000,000.
            (2) For the Spallation Neutron Source--
                    (A) for construction in fiscal year 2004, 
                $124,600,000;
                    (B) for construction in fiscal year 2005, 
                $79,800,000;
                    (C) for completion of construction in 
                fiscal year 2006, $41,100,000; and
                    (D) for other project costs (including 
                research and development necessary to complete 
                the project, preoperations costs, and capital 
                equipment related to construction), 
                $103,279,000 for the period encompassing fiscal 
                years 2003 through 2006, to remain available 
                until expended through September 30, 2006.
            (3) For Catalysis Research activities under section 
        956--
                    (A) for fiscal year 2004, $33,000,000;
                    (B) for fiscal year 2005, $35,000,000;
                    (C) for fiscal year 2006, $36,500,000;
                    (D) for fiscal year 2007, $38,200,000; and
                    (E) for fiscal year 2008, $40,100,000.
            (4) For Nanoscale Science and Engineering Research 
        activities under section 957--
                    (A) for fiscal year 2004, $270,000,000;
                    (B) for fiscal year 2005, $292,000,000;
                    (C) for fiscal year 2006, $322,000,000;
                    (D) for fiscal year 2007, $355,000,000; and
                    (E) for fiscal year 2008, $390,000,000.
            (5) For activities under section 957(c), from the 
        amounts authorized under paragraph (4) of this 
        subsection--
                    (A) for fiscal year 2004, $135,000,000;
                    (B) for fiscal year 2005, $150,000,000;
                    (C) for fiscal year 2006, $120,000,000;
                    (D) for fiscal year 2007, $100,000,000; and
                    (E) for fiscal year 2008, $125,000,000.
            (6) For activities in the Genomes to Life Program 
        under section 959--
                    (A) for fiscal year 2004, $100,000,000; and
                    (B) for fiscal years 2005 through 2008, 
                such sums as may be necessary.
            (7) For activities in the Energy-Water Supply 
        Program under section 961, $30,000,000 for each of 
        fiscal years 2004 through 2008.
    (c) ITER Construction.--In addition to the funds authorized 
under subsection (b)(1), such sums as may be necessary for 
costs associated with ITER construction, consistent with 
limitations under section 952.

SEC. 952. UNITED STATES PARTICIPATION IN ITER.

    (a) In General.--The United States may participate in ITER 
in accordance with the provisions of this section.
    (b) Agreement.--
            (1) In general.--The Secretary is authorized to 
        negotiate an agreement for United States participation 
        in ITER.
            (2) Contents.--Any agreement for United States 
        participation in ITER shall, at a minimum--
                    (A) clearly define the United States 
                financial contribution to construction and 
                operating costs;
                    (B) ensure that the share of ITER's high-
                technology components manufactured in the 
                United States is at least proportionate to the 
                United States financial contribution to ITER;
                    (C) ensure that the United States will not 
                be financially responsible for cost overruns in 
                components manufactured in other ITER 
                participating countries;
                    (D) guarantee the United States full access 
                to all data generated by ITER;
                    (E) enable United States researchers to 
                propose and carry out an equitable share of the 
                experiments at ITER;
                    (F) provide the United States with a role 
                in all collective decisionmaking related to 
                ITER; and
                    (G) describe the process for discontinuing 
                or decommissioning ITER and any United States 
                role in those processes.
    (c) Plan.--The Secretary, in consultation with the Fusion 
Energy Sciences Advisory Committee, shall develop a plan for 
the participation of United States scientists in ITER that 
shall include the United States research agenda for ITER, 
methods to evaluate whether ITER is promoting progress toward 
making fusion a reliable and affordable source of power, and a 
description of how work at ITER will relate to other elements 
of the United States fusion program. The Secretary shall 
request a review of the plan by the National Academy of 
Sciences.
    (d) Limitation.--No funds shall be expended for the 
construction of ITER until the Secretary has transmitted to 
Congress--
            (1) the agreement negotiated pursuant to subsection 
        (b) and 120 days have elapsed since that transmission;
            (2) a report describing the management structure of 
        ITER and providing a fixed dollar estimate of the cost 
        of United States participation in the construction of 
        ITER, and 120 days have elapsed since that 
        transmission;
            (3) a report describing how United States 
        participation in 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 transmission; and
            (4) the plan required by subsection (c) (but not 
        the National Academy of Sciences review of that plan), 
        and 60 days have elapsed since that transmission.
    (e) Alternative to ITER.--If at any time during the 
negotiations on ITER, the Secretary determines that 
construction and operation of ITER is unlikely or infeasible, 
the Secretary shall send to Congress, as part of the budget 
request for the following year, a plan for implementing the 
domestic burning plasma experiment known as FIRE, including 
costs and schedules for such a plan. The Secretary shall refine 
such plan in full consultation with the Fusion Energy Sciences 
Advisory Committee and shall also transmit such plan to the 
National Academy of Sciences for review.
    (f) Definitions.--In this section and sections 951(b)(1) 
and (c):
            (1) Construction.--The term ``construction'' means 
        the physical construction of the ITER facility, and the 
        physical construction, purchase, or manufacture of 
        equipment or components that are specifically designed 
        for the ITER facility, but does not mean the design of 
        the facility, equipment, or components.
            (2) FIRE.--The term ``FIRE'' means the Fusion 
        Ignition Research Experiment, the fusion research 
        experiment for which design work has been supported by 
        the Department as a possible alternative burning plasma 
        experiment in the event that ITER fails to move 
        forward.
            (3) ITER.--The term ``ITER'' means the 
        international burning plasma fusion research project in 
        which the President announced United States 
        participation on January 30, 2003.

SEC. 953. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.

    (a) Declaration of Policy.--It shall be the policy of the 
United States to conduct research, development, demonstration, 
and commercial application to provide for the scientific, 
engineering, and commercial infrastructure necessary to ensure 
that the United States is competitive with other nations in 
providing fusion energy for its own needs and the needs of 
other nations, including by demonstrating electric power or 
hydrogen production for the United States energy grid utilizing 
fusion energy at the earliest date possible.
    (b) Planning.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        present to Congress a plan, with proposed cost 
        estimates, budgets, and potential international 
        partners, for the implementation of the policy 
        described in subsection (a). The plan shall ensure 
        that--
                    (A) existing fusion research facilities are 
                more fully utilized;
                    (B) fusion science, technology, theory, 
                advanced computation, modeling, and simulation 
                are strengthened;
                    (C) new magnetic and inertial fusion 
                research facilities are selected based on 
                scientific innovation, cost effectiveness, and 
                their potential to advance the goal of 
                practical fusion energy at the earliest date 
                possible, and those that are selected are 
                funded at a cost-effective rate;
                    (D) communication of scientific results and 
                methods between the fusion energy science 
                community and the broader scientific and 
                technology communities is improved;
                    (E) inertial confinement fusion facilities 
                are utilized to the extent practicable for the 
                purpose of inertial fusion energy research and 
                development; and
                    (F) attractive alternative inertial and 
                magnetic fusion energy approaches are more 
                fully explored.
            (2) Costs and schedules.--Such plan shall also 
        address the status of and, to the degree possible, 
        costs and schedules for--
                    (A) in coordination with the program under 
                section 960, the design and implementation of 
                international or national facilities for the 
                testing of fusion materials; and
                    (B) the design and implementation of 
                international or national facilities for the 
                testing and development of key fusion 
                technologies.

SEC. 954. SPALLATION NEUTRON SOURCE.

    (a) Definition.--For the purposes of this section, the term 
``Spallation Neutron Source'' means Department Project 99-E-
334, Oak Ridge National Laboratory, Oak Ridge, Tennessee.
    (b) Report.--The Secretary shall report on the Spallation 
Neutron Source as part of the Department's annual budget 
submission, including a description of the achievement of 
milestones, a comparison of actual costs to estimated costs, 
and any changes in estimated project costs or schedule.
    (c) Limitations.--The total amount obligated by the 
Department, including prior year appropriations, for the 
Spallation Neutron Source shall not exceed--
            (1) $1,192,700,000 for costs of construction;
            (2) $219,000,000 for other project costs; and
            (3) $1,411,700,000 for total project cost.

SEC. 955. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND INFRASTRUCTURE.

    (a) Facility and Infrastructure Policy.--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. Such strategy shall 
provide cost-effective means for--
            (1) maintaining existing facilities and 
        infrastructure, as needed;
            (2) closing unneeded facilities;
            (3) making facility modifications; and
            (4) building new facilities.
    (b) Report.--
            (1) In general.--The Secretary shall prepare and 
        transmit, along with the President's budget request to 
        Congress for fiscal year 2006, a report containing the 
        strategy developed under subsection (a).
            (2) Contents.--For each National Laboratory and 
        single-purpose research facility, for the facilities 
        primarily used for science and energy research, such 
        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. 956. CATALYSIS RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary, through the Office of 
Science, shall support a program of research and development in 
catalysis science consistent with the Department's statutory 
authorities related to research and development. 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.
    (b) Duties of the Office of Science.--In carrying out the 
program under this section, 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.
    (c) Triennial Assessment.--The National Academy of Sciences 
shall review the catalysis program every 3 years to report on 
gains made in the fundamental science of catalysis and its 
progress towards developing new fuels for energy production and 
material fabrication processes.

SEC. 957. NANOSCALE SCIENCE AND ENGINEERING RESEARCH, DEVELOPMENT, 
                    DEMONSTRATION, AND COMMERCIAL APPLICATION.

    (a) Establishment.--The Secretary, acting through the 
Office of Science, shall support a program of research, 
development, demonstration, and commercial application in 
nanoscience and nanoengineering. The program shall include 
efforts to further the understanding of the chemistry, physics, 
materials science, and engineering of phenomena on the scale of 
nanometers and to apply that knowledge to the Department's 
mission areas.
    (b) Duties of the Office of Science.--In carrying out the 
program under this section, the Office of Science shall--
            (1) support both individual investigators and teams 
        of investigators, including multidisciplinary teams;
            (2) carry out activities under subsection (c);
            (3) support technology transfer activities to 
        benefit industry and other users of nanoscience and 
        nanoengineering;
            (4) coordinate research and development activities 
        with other Department programs, industry, and other 
        Federal agencies;
            (5) ensure that societal and ethical concerns will 
        be addressed as the technology is developed by--
                    (A) establishing a research program to 
                identify societal and ethical concerns related 
                to nanotechnology, and ensuring that the 
                results of such research are widely 
                disseminated; and
                    (B) integrating, insofar as possible, 
                research on societal and ethical concerns with 
                nanotechnology research and development; and
            (6) ensure that the potential of nanotechnology to 
        produce or facilitate the production of clean, 
        inexpensive energy is realized by supporting 
        nanotechnology energy applications research and 
        development.
    (c) Nanoscience and Nanoengineering Research Centers and 
Major Instrumentation.--
            (1) In general.--The Secretary shall carry out 
        projects to develop, plan, construct, acquire, operate, 
        or support special equipment, instrumentation, or 
        facilities for investigators conducting research and 
        development in nanoscience and nanoengineering.
            (2) Activities.--Projects under paragraph (1) may 
        include the measurement of properties at the scale of 
        nanometers, manipulation at such scales, and the 
        integration of technologies based on nanoscience or 
        nanoengineering into bulk materials or other 
        technologies.
            (3) Facilities.--Facilities under paragraph (1) may 
        include electron microcharacterization facilities, 
        microlithography facilities, scanning probe facilities, 
        and related instrumentation.
            (4) Collaborations.--The Secretary shall encourage 
        collaborations among Department programs, institutions 
        of higher education, laboratories, and industry at 
        facilities under this subsection.

SEC. 958. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

    (a) In General.--The Secretary, acting through the Office 
of Science, shall support a program to advance the Nation's 
computing capability across a diverse set of grand challenge, 
computationally based, science problems related to departmental 
missions.
    (b) Duties of the Office of Science.--In carrying out the 
program under this section, the Office of Science shall--
            (1) advance basic science through computation by 
        developing software to solve grand challenge science 
        problems on new generations of computing platforms in 
        collaboration with other Department program offices;
            (2) enhance the foundations for scientific 
        computing by developing the basic mathematical and 
        computing systems software needed to take full 
        advantage of the computing capabilities of computers 
        with peak speeds of 100 teraflops or more, some of 
        which may be unique to the scientific problem of 
        interest;
            (3) enhance national collaboratory and networking 
        capabilities by developing software to integrate 
        geographically separated researchers into effective 
        research teams and to facilitate access to and movement 
        and analysis of large (petabyte) data sets;
            (4) develop and maintain a robust scientific 
        computing hardware infrastructure to ensure that the 
        computing resources needed to address departmental 
        missions are available; and
            (5) explore new computing approaches and 
        technologies that promise to advance scientific 
        computing, including developments in quantum computing.
    (c) High-Performance Computing Act of 1991 Amendments.--The 
High-Performance Computing Act of 1991 is amended--
            (1) in section 4 (15 U.S.C. 5503)--
                    (A) in paragraph (3) by striking ``means'' 
                and inserting ``and networking and information 
                technology mean'', and by striking ``(including 
                vector supercomputers and large scale parallel 
                systems)''; and
                    (B) in paragraph (4), by striking ``packet 
                switched''; and
            (2) in section 203 (15 U.S.C. 5523)--
                    (A) in subsection (a), by striking all 
                after ``As part of the'' and inserting 
                ``Networking and Information Technology 
                Research and Development Program, the Secretary 
                of Energy shall conduct basic and applied 
                research in networking and information 
                technology, with emphasis on supporting 
                fundamental research in the physical sciences 
                and engineering, and energy applications; 
                providing supercomputer access and advanced 
                communication capabilities and facilities to 
                scientific researchers; and developing tools 
                for distributed scientific collaboration.'';
                    (B) in subsection (b), by striking 
                ``Program'' and inserting ``Networking and 
                Information Technology Research and Development 
                Program''; and
                    (C) by amending subsection (e) to read as 
                follows:
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary of Energy to 
carry out the Networking and Information Technology Research 
and Development Program such sums as may be necessary for 
fiscal years 2004 through 2008.''.
    (d) Coordination.--The Secretary shall ensure that the 
program under this section is integrated and consistent with--
            (1) the Advanced Simulation and Computing Program, 
        formerly known as the Accelerated Strategic 
ComputingInitiative, of the National Nuclear Security Administration; 
and
            (2) other national efforts related to advanced 
        scientific computing for science and engineering.
    (e) Report.--
            (1) In general.--Before undertaking any new 
        initiative to develop any new advanced architecture for 
        high-speed computing, the Secretary, through the 
        Director of the Office of Science, shall transmit a 
        report to Congress describing--
                    (A) the expected duration and cost of the 
                initiative;
                    (B) the technical milestones the initiative 
                is designed to achieve;
                    (C) how institutions of higher education 
                and private firms will participate in the 
                initiative; and
                    (D) why the goals of the initiative could 
                not be achieved through existing programs.
            (2) Limitation.--No funds may be expended on any 
        initiative described in paragraph (1) until 30 days 
        after the report required by that paragraph is 
        transmitted to Congress.

SEC. 959. GENOMES TO LIFE PROGRAM.

    (a) Program.--
            (1) Establishment.--The Secretary shall establish a 
        research, development, and demonstration program in 
        genetics, protein science, and computational biology to 
        support the energy, national security, and 
        environmental mission of the Department.
            (2) Grants.--The program shall support individual 
        investigators and multidisciplinary teams of 
        investigators through competitive, merit-reviewed 
        grants.
            (3) Consultation.--In carrying out the program, the 
        Secretary shall consult with other Federal agencies 
        that conduct genetic and protein research.
    (b) Goals.--The program shall have the goal of developing 
technologies and methods based on the biological functions of 
genomes, microbes, and plants that--
            (1) can facilitate the production of fuels, 
        including hydrogen;
            (2) convert carbon dioxide to organic carbon;
            (3) improve national security and combat terrorism;
            (4) detoxify soils and water at Department 
        facilities contaminated with heavy metals and 
        radiological materials; and
            (5) address other Department missions as identified 
        by the Secretary.
    (c) Plan.--
            (1) Development of plan.--Not later than 1 year 
        after the date of enactment of this Act, the Secretary 
        shall prepare and transmit to Congress a research plan 
        describing how the program authorized pursuant to this 
        section will be undertaken to accomplish the program 
        goals established in subsection (b).
            (2) Review of plan.--The Secretary shall contract 
        with the National Academy of Sciences to review the 
        research plan developed under this subsection. The 
        Secretary shall transmit the review to Congress not 
        later than 18 months after transmittal of the research 
        plan under paragraph (1), along with the Secretary's 
        response to the recommendations contained in the 
        review.
    (d) Genomes to Life User Facilities and Ancillary 
Equipment.--
            (1) In general.--Within the funds authorized to be 
        appropriated pursuant to this Act, the amounts 
        specified under section 951(b)(6) shall, subject to 
        appropriations, be available for projects to develop, 
        plan, construct, acquire, or operate special equipment, 
        instrumentation, or facilities for investigators 
        conducting research, development, demonstration, and 
        commercial application in systems biology and 
        proteomics and associated biological disciplines.
            (2) Facilities.--Facilities under paragraph (1) 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.
            (3) Collaborations.--The Secretary shall encourage 
        collaborations among universities, laboratories, and 
        industry at facilities under this subsection. All 
        facilities under this subsection shall have a specific 
        mission of technology transfer to other institutions.
    (e) Prohibition on Biomedical and Human Cell and Human 
Subject Research.--
            (1) No biomedical research.--In carrying out the 
        program under this section, the Secretary shall not 
        conduct biomedical research.
            (2) Limitations.--Nothing in this section shall 
        authorize the Secretary to conduct any research or 
        demonstrations--
                    (A) on human cells or human subjects; or
                    (B) designed to have direct application 
                with respect to human cells or human subjects.

SEC. 960. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.

    In the President's fiscal year 2006 budget request, the 
Secretary shall establish a research and development program on 
material science issues presented by advanced fission reactors 
and the Department's fusion energy program. The program shall 
develop a catalog of material properties required for these 
applications, develop theoretical models for materials 
possessing the required properties, benchmark models against 
existing data, and develop a roadmap to guide further research 
and development in this area.

SEC. 961. ENERGY-WATER SUPPLY PROGRAM.

    (a) Establishment.--There is established within the 
Department the Energy-Water Supply Program, to study energy-
related and certain other issues associated with the supply of 
drinking water and operation of community water systems and to 
study water supply issues related to energy.
    (b) Definitions.--For the purposes of this section:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Agency.--The term ``Agency'' means the 
        Environmental Protection Agency.
            (3) Foundation.--The term ``Foundation'' means the 
        American Water Works Association Research Foundation.
            (4) 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).
            (5) Program.--The term ``Program'' means the 
        Energy-Water Supply Program established by this 
        section.
    (c) Program Areas.--The Program shall develop methods, 
means, procedures, equipment, and improved technologies 
relating to--
            (1) the arsenic removal program under subsection 
        (d);
            (2) the desalination program under subsection (e); 
        and
            (3) the water and energy sustainability program 
        under subsection (f).
    (d) Arsenic Removal Program.--
            (1) In general.--As soon as practicable after the 
        date of enactment of this Act, the Secretary, in 
        coordination with the Administrator and in partnership 
        with the Foundation, shall utilize the facilities, 
        institutions, and relationships established in the 
        Consolidated Appropriations Resolution, 2003 as 
        described in Senate Report 107-220 to carry out a 
        research program to provide innovative methods and 
        means for removal of arsenic.
            (2) Required evaluations.--The program shall, to 
        the maximum extent practicable, evaluate the means of--
                    (A) reducing energy costs incurred in using 
                arsenic removal technologies;
                    (B) minimizing materials, operating, and 
                maintenance costs; and
                    (C) minimizing any quantities of waste 
                (especially hazardous waste) that result from 
                use of arsenic removal technologies.
            (3) Peer review.--Where applicable and reasonably 
        available, projects undertaken under this subsection 
        shall be peer-reviewed.
            (4) Community water systems.--In carrying out the 
        program under this subsection, the Secretary, in 
        coordination with the Administrator, shall--
                    (A) select projects involving a 
                geographically and hydrologically diverse group 
                of community water systems (as defined in 
                section 1003 of the Public Health Service Act 
                (42 U.S.C. 300)) and water chemistries, that 
                have experienced technical or economic 
                difficulties in providing drinking water with 
                levels of arsenic at 10 parts-per-billion or 
                lower, which projects shall be designed to 
                develop innovative methods and means to deliver 
                drinking water that contains less than 10 parts 
                per billion of arsenic; and
                    (B) provide not less than 40 percent of all 
                funds spent pursuant to this subsection to 
                address the needs of, and in collaboration 
                with, rural communities or Indian tribes.
            (5) Cost effectiveness.--The Foundation shall 
        create methods for determining cost effectiveness of 
        arsenic removal technologies used in the program.
            (6) Education, training, and technology.--The 
        Foundation shall include education, training, and 
        technology transfer as part of the program.
            (7) Coordination.--The Secretary shall consult with 
        the Administrator to ensure that all activities 
        conducted under the program are coordinated with the 
        Agency and do not duplicate other programs in the 
        Agency and other Federal agencies, State programs, and 
        academia.
            (8) Reports.--Not later than 1 year after the date 
        of commencement of the program under this subsection, 
        and once every year thereafter, the Secretary shall 
        submit to the Committee on Energy and Commerce of the 
        House of Representatives and the Committee on 
        Environment and Public Works and the Committee on 
        Energy and Natural Resources of the Senate a report on 
        the results of the program under this subsection.
    (e) Desalination Program.--
            (1) In general.--The Secretary, in cooperation with 
        the Commissioner of Reclamation of the Department of 
        the Interior, shall carry out a program to conduct 
        research and develop methods and means for desalination 
        in accordance with the desalination technology progress 
        plan developed under title II of the Energy and Water 
        Development Appropriations Act, 2002 (115 Stat. 498), 
        and described in Senate Report 107-39 under the heading 
        ``water and related resources'' in the ``Bureau of 
        Reclamation'' section.
            (2) Requirements.--The desalination program shall--
                    (A) use the resources of the Department and 
                the Department of the Interior that were 
                involved in the development of the 2003 
                National Desalination and Water Purification 
                Technology Roadmap for next-generation 
                desalination technology;
                    (B) focus on technologies that are 
                appropriate for use in desalinating brackish 
                groundwater, drinking water, wastewater and 
                other saline water supplies, or disposal of 
                residual brine or salt; and
                    (C) consider the use of renewable energy 
                sources.
            (3) Construction projects.--Funds made available to 
        carry out this subsection may be used for construction 
        projects, including completion of the National 
        Desalination Research Center for brackish groundwater 
        and ongoing operational costs of this facility.
            (4) Steering committee.--The Secretary and the 
        Commissioner of Reclamation of the Department of the 
        Interior shall jointly establish a steering committee 
        for activities conducted under this subsection. The 
        steering committee shall be jointly chaired by 1 
        representative from the program and 1 representative 
        from the Bureau of Reclamation.
    (f) Water and Energy Sustainability Program.--
            (1) In general.--The Secretary shall develop a 
        program to identify methods, means, procedures, 
        equipment, and improved technologies necessary to 
        ensure that sufficient quantities of water are 
        available to meet energy needs and sufficient energy is 
        available to meet water needs.
            (2) Assessments.--In order to acquire information 
        and avoid duplication, the Secretary shall work in 
        collaboration with the Secretary of the Interior, the 
        Army Corps of Engineers, the Administrator, the 
        Secretary of Commerce, the Secretary of Defense, 
        relevant State agencies, nongovernmental organizations, 
        and academia, to assess--
                    (A) future water resources needed to 
                support energy development and production 
                within the United States including water used 
                for hydropower, and production of, or 
                electricity generation by, hydrogen, biomass, 
                fossil fuels, and nuclear fuel;
                    (B) future energy resources needed to 
                support water purification and wastewater 
                treatment, including desalination and water 
                conveyance;
                    (C) use of impaired and nontraditional 
                water supplies for energy production other than 
                oil and gas extraction;
                    (D) technology and programs for improving 
                water use efficiency; and
                    (E) technologies to reduce water use in 
                energy development and production.
            (3) Roadmap; tools.--The Secretary shall--
                    (A) develop a program plan and technology 
                development roadmap for the Water and Energy 
                Sustainability Program to identify scientific 
                and technical requirements and activities that 
                are required to support planning for energy 
                sustainability under current and potential 
                future conditions of water availability, use of 
                impaired water for energy production and other 
                uses, and reduction of water use in energy 
                development and production;
                    (B) develop tools for national and local 
                energy and water sustainability planning, 
                including numerical models, decision analysis 
                tools, economic analysis tools, databases, and 
                planning methodologies and strategies;
                    (C) implement at least 3 planning projects 
                involving energy development or production that 
                use the tools described in subparagraph (B) and 
                assess the viability of those tools at 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.
            (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) includes the results of the assessment 
                under paragraph (2) and the program plan and 
                technology development roadmap; and
                    (B) identifies policy, legal, and 
                institutional issues related to water and 
                energy sustainability.

SEC. 962. NITROGEN FIXATION.

    The Secretary, acting through the Office of Science, shall 
support a program of research, development, demonstration, and 
commercial application on biological nitrogen fixation, 
including plant genomics research relevant to the development 
of commercial crop varieties with enhanced nitrogen fixation 
efficiency and ability.

                   Subtitle G--Energy and Environment

SEC. 964. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.

    (a) Program.--The Secretary shall establish a research, 
development, demonstration, and commercial application program 
to be carried out in collaboration with entities in Mexico and 
the United States to promote energy efficient, environmentally 
sound economic development along the United States-Mexico 
border that minimizes public health risks from industrial 
activities in the border region.
    (b) Program Management.--The program under subsection (a) 
shall be managed by the Department of Energy Carlsbad 
Environmental Management Field Office.
    (c) Technology Transfer.--In carrying out projects and 
activities under this section, the Secretary shall assess the 
applicability of technology developed under the Environmental 
Management Science Program of the Department.
    (d) Intellectual Property.--In carrying out this section, 
the Secretary shall comply with the requirements of any 
agreement entered into between the United States and Mexico 
regarding intellectual property protection.
    (e) Authorization of Appropriations.--The following sums 
are authorized to be appropriated to the Secretary to carry out 
activities under this section:
            (1) For each of fiscal years 2004 and 2005, 
        $5,000,000.
            (2) For each of fiscal years 2006, 2007, and 2008, 
        $6,000,000.

SEC. 965. WESTERN HEMISPHERE ENERGY COOPERATION.

    (a) Program.--The Secretary shall carry out a program to 
promote cooperation on energy issues with Western Hemisphere 
countries.
    (b) Activities.--Under the program, the Secretary shall 
fund activities to work with Western Hemisphere countries to--
            (1) assist the countries in formulating and 
        adopting changes in economic policies and other 
        policies to--
                    (A) increase the production of energy 
                supplies; and
                    (B) improve energy efficiency; and
            (2) assist in the development and transfer of 
        energy supply and efficiency technologies that would 
        have a beneficial impact on world energy markets.
    (c) University Participation.--To the extent practicable, 
the Secretary shall carry out the program under this section 
with the participation of universities so as to take advantage 
of the acceptance of universities by Western Hemisphere 
countries 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 universities that involve the participation of 
        minority students, such as Hispanic-serving 
        institutions and Historically Black Colleges and 
        Universities.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
            (1) $8,000,000 for fiscal year 2004;
            (2) $10,000,000 for fiscal year 2005;
            (3) $13,000,000 for fiscal year 2006;
            (4) $16,000,000 for fiscal year 2007; and
            (5) $19,000,000 for fiscal year 2008.

SEC. 966. WASTE REDUCTION AND USE OF ALTERNATIVES.

    (a) Grant Authority.--The Secretary may make a single grant 
to a qualified institution to examine and develop the 
feasibility of burning post-consumer carpet in cement kilns as 
an alternative energy source. The purposes of the grant shall 
include determining--
            (1) how post-consumer carpet can be burned without 
        disrupting kiln operations;
            (2) the extent to which overall kiln emissions may 
        be reduced;
            (3) the emissions of air pollutants and other 
        relevant environmental impacts; and
            (4) how this process provides benefits to both 
        cement kiln operations and carpet suppliers.
    (b) Qualified Institution.--For the purposes of subsection 
(a), a qualified institution is a research-intensive 
institution of higher education with demonstrated expertise in 
the fields of fiber recycling and logistical modeling of carpet 
waste collection and preparation.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section $500,000.

SEC. 967. REPORT ON FUEL CELL TEST CENTER.

    (a) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall transmit to Congress 
a report on the results of a study of the establishment of a 
test center for next-generation fuel cells at an institution of 
higher education that has available a continuous source of 
hydrogen and access to the electric transmission grid. Such 
report shall include a conceptual design for such test center 
and a projection of the costs of establishing the test center.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section $500,000.

SEC. 968. ARCTIC ENGINEERING RESEARCH CENTER.

    (a) In General.--The Secretary of Energy (referred to in 
this section as the ``Secretary'') in consultation with the 
Secretary of Transportation and the United States Arctic 
Research Commission shall provide annual grants to a university 
located adjacent to the Arctic Energy Office of the Department 
of Energy, to establish and operate a university research 
center to be headquartered in Fairbanks and to be known as the 
``Arctic Engineering Research Center'' (referred to in this 
section as the ``Center'').
    (b) Purpose.--The purpose of the Center shall be to conduct 
research on, and develop improved methods of, construction and 
use of materials to improve the overall performance of roads, 
bridges, residential, commercial, and industrial structures, 
and other infrastructure in the Arctic region, with an emphasis 
on developing--
            (1) new construction techniques for roads, bridges, 
        rail, and related transportation infrastructure and 
        residential, commercial, and industrial infrastructure 
        that are capable of withstanding the Arctic environment 
        and using limited energy resources as efficiently as 
        possible;
            (2) technologies and procedures for increasing 
        road, bridge, rail, and related transportation 
        infrastructure and residential, commercial, and 
        industrial infrastructure safety, reliability, and 
        integrity in the Arctic region;
            (3) new materials and improving the performance and 
        energy efficiency of existing materials for the 
        construction of roads, bridges, rail, and related 
        transportation infrastructure and residential, 
        commercial, and industrial infrastructure in the Arctic 
        region; and
            (4) recommendations for new local, regional, and 
        State permitting and building codes to ensure 
        transportation and building safety and efficient energy 
        use when constructing, using, and occupying such 
        infrastructure in the Arctic region.
    (c) Objectives.--The Center shall carry out--
            (1) basic and applied research in the subjects 
        described in subsection (b), the products of which 
        shall be judged by peers or other experts in the field 
        to advance the body of knowledge in road, bridge, rail, 
        and infrastructure engineering in the Arctic region; 
        and
            (2) an ongoing program of technology transfer that 
        makes research results available to potential users in 
        a form that can be implemented.
    (d) Amount of Grant.--For each of fiscal years 2004 through 
2009, the Secretary shall provide a grant in the amount of 
$3,000,000 to the institution specified in subsection (a) to 
carry out this section.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $3,000,000 for 
each of fiscal years 2004 through 2009.

SEC. 969. BARROW GEOPHYSICAL RESEARCH FACILITY.

    (a) Establishment.--The Secretary of Commerce, in 
consultation with the Secretaries of Energy and the Interior, 
the Director of the National Science Foundation, and the 
Administrator of the Environmental Protection Agency, shall 
establish a joint research facility in Barrow, Alaska, to be 
known as the ``Barrow Geophysical Research Facility'', to 
support scientific research activities in the Arctic.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretaries of Commerce, Energy, and 
the Interior, the Director of the National Science Foundation, 
and the Administrator of the Environmental Protection Agency 
for the planning, design, construction, and support of the 
Barrow Geophysical Research Facility $61,000,000.

SEC. 970. WESTERN MICHIGAN DEMONSTRATION PROJECT.

    The Administrator of the Environmental Protection Agency, 
in consultation with the State of Michigan and affected local 
officials, shall conduct a demonstration project to address the 
effect of transported ozone and ozone precursors in 
Southwestern Michigan. The demonstration program shall address 
projected nonattainment areas in Southwestern Michigan that 
include counties with design values for ozone of less than .095 
based on years 2000 to 2002 or the most current 3-year period 
of air quality data. The Administrator shall assess any 
difficulties such areas may experience in meeting the 8-hour 
national ambient air quality standard for ozone due to the 
effect of transported ozone or ozone precursors into the areas. 
The Administrator shall work with State and local officials to 
determine the extent of ozone and ozone precursor transport, to 
assess alternatives to achieve compliance with the 8-hour 
standard apart from local controls, and to determine the 
timeframe in which such compliance could take place. The 
Administrator shall complete this demonstration project no 
later than 2 years after the date of enactment of this section 
and shall not impose any requirement or sanction that might 
otherwise apply during the pendency of the demonstration 
project.

                         Subtitle H--Management

SEC. 971. AVAILABILITY OF FUNDS.

    Funds authorized to be appropriated to the Department under 
this title shall remain available until expended.

SEC. 972. COST SHARING.

    (a) Research and Development.--Except as otherwise provided 
in this title, for research and development programs carried 
out under this title the Secretary shall require a commitment 
from non-Federal sources of at least 20 percent of the cost of 
the project. The Secretary may reduce or eliminate the non-
Federal requirement under this subsection if the Secretary 
determines that the research and development is of a basic or 
fundamental nature or involves technical analyses or 
educational activities.
    (b) Demonstration and Commercial Application.--Except as 
otherwise provided in this title, the Secretary shall require 
at least 50 percent of the costs directly and specifically 
related to any demonstration or commercial application project 
under this title to be provided from non-Federal sources. The 
Secretary may reduce the non-Federal requirement under this 
subsection if the Secretary determines that the reduction is 
necessary and appropriate considering the technological risks 
involved in the project and is necessary to meet the objectives 
of this title.
    (c) Calculation of Amount.--In calculating the amount of 
the non-Federal commitment under subsection (a) or (b), the 
Secretary may include personnel, services, equipment, and other 
resources.
    (d) Size of Non-Federal Share.--The Secretary may consider 
the size of the non-Federal share in selecting projects.

SEC. 973. MERIT REVIEW OF PROPOSALS.

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

SEC. 974. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory 
Boards.--
            (1) In general.--The Secretary shall establish 1 or 
        more advisory boards to review Department research, 
        development, demonstration, and commercial application 
        programs in energy efficiency, renewable energy, 
        nuclear energy, and fossil energy.
            (2) Existing advisory boards.--The Secretary may 
        designate an existing advisory board within the 
        Department to fulfill the responsibilities of an 
        advisory board under this subsection, and may enter 
        into appropriate arrangements with the National Academy 
        of Sciences to establish such an advisory board.
    (b) Office of Science Advisory Committees.--
            (1) Utilization 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.
            (2) Science advisory committee.--
                    (A) Establishment.--There shall be in the 
                Office of Science a Science Advisory Committee 
                that includes the chairs of each of the 
                advisory committees described in paragraph (1).
                    (B) Responsibilities.--The Science Advisory 
                Committee shall--
                            (i) serve as the science advisor to 
                        the Director of the Office of Science;
                            (ii) advise the Director with 
                        respect to the well-being and 
                        management of the National Laboratories 
                        and single-purpose research facilities;
                            (iii) advise the Director with 
                        respect to education and workforce 
                        training activities required for 
                        effective short-term and long-term 
                        basic and applied research activities 
                        of the Office of Science; and
                            (iv) advise the Director with 
                        respect to the well being of the 
                        university research programs supported 
                        by the Office of Science.
    (c) Membership.--Each advisory board under this section 
shall consist of persons with appropriate expertise 
representing a diverse range of interests.
    (d) Meetings and Purposes.--Each advisory board under this 
section shall meet at least semiannually to review and advise 
on the progress made by the respective research, development, 
demonstration, and commercial application program or programs. 
The advisory board shall also review the measurable cost and 
performance-based goals for such programs as established under 
section 901(b), and the progress on meeting such goals.
    (e) Periodic Reviews and Assessments.--The Secretary shall 
enter into appropriate arrangements with the National Academy 
of Sciences to conduct periodic reviews and assessments of the 
programs authorized by this title, the measurable cost and 
performance-based goals for such programs as established under 
section 901(b), if any, and the progress on meeting such goals. 
Such reviews and assessments shall be conducted every 5 years, 
or more often as the Secretary considers necessary, and the 
Secretary shall transmit to Congress reports containing the 
results of all such reviews and assessments.

SEC. 975. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER ACTIVITIES.

    (a) Technology Transfer Coordinator.--The Secretary shall 
designate a Technology Transfer Coordinator to perform 
oversight of and policy development for technology transfer 
activities at the Department. The Technology Transfer 
Coordinator shall--
            (1) coordinate the activities of the Technology 
        Transfer Working Group;
            (2) oversee the expenditure of funds allocated to 
        the Technology Transfer Working Group; and
            (3) coordinate with each technology partnership 
        ombudsman appointed under section 11 of the Technology 
        Transfer Commercialization Act of 2000 (42 U.S.C. 
        7261c).
    (b) 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 those related to 
        alternative approaches to resolution of disputes 
        involving intellectual property rights and other 
        technology transfer matters.
    (c) Technology Transfer Responsibility.--Nothing in this 
section shall affect the technology transfer responsibilities 
of Federal employees under the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.).

SEC. 976. FEDERAL LABORATORY EDUCATIONAL PARTNERS.

    (a) Distribution of Royalties Received by Federal 
Agencies.--Section 14(a)(1)(B)(v) of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 
3710c(a)(1)(B)(v)), is amended to read as follows:
                    ``(v) for scientific research and 
                development and for educational assistance and 
                other purposes consistent with the missions and 
                objectives of the agency and the laboratory.''.
    (b) Cooperative Research and Development Agreements.--
Section 12(b)(5)(C) of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3710a(b)(5)(C)) is amended to 
read as follows:
            ``(C) for scientific research and development and 
        for educational assistance consistent with the missions 
        and objectives of the agency and the laboratory.''.

SEC. 977. INTERAGENCY COOPERATION.

    The Secretary shall enter into discussions with the 
Administrator of the National Aeronautics and Space 
Administration with the goal of reaching an interagency working 
agreement between the 2 agencies that would make the National 
Aeronautics and Space Administration's expertise in energy, 
gained from its existing and planned programs, more readily 
available to the relevant research, development, demonstration, 
and commercial applications programs of the Department. 
Technologies to be discussed should include the National 
Aeronautics and Space Administration's modeling, research, 
development, testing, and evaluation of new energy 
technologies, including solar, wind, fuel cells, and hydrogen 
storage and distribution.

SEC. 978. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Establishment.--The Secretary shall establish a 
Technology Infrastructure Program in accordance with this 
section.
    (b) Purpose.--The purpose of the Technology Infrastructure 
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 National Laboratories 
        or single-purpose research facilities and entities that 
        can support departmental missions at the National 
        Laboratories or single-purpose research facilities, 
        such as institutions of higher education; technology-
        related business concerns; nonprofit institutions; and 
        agencies of State, tribal, or local governments.
    (c) Projects.--The Secretary shall authorize the Director 
of each National Laboratory or single-purpose research facility 
to implement the Technology Infrastructure Program at such 
National Laboratory or facility through projects that meet the 
requirements of subsections (d) and (e).
    (d) Program Requirements.--Each project funded under this 
section shall meet the following requirements:
            (1) Each project shall include at least 1 of each 
        of the following entities: A business; an institution 
        of higher education; a nonprofit institution; and an 
        agency of a State, local, or tribal government.
            (2) Not less than 50 percent of the costs of each 
        project funded under this section shall be provided 
        from non-Federal sources. The calculation of costs paid 
        by the non-Federal sources to a project shall include 
        cash, personnel, services, equipment, and other 
        resources expended on the project after start of the 
        project. Independent research and development expenses 
        of Government contractors that qualify for 
        reimbursement under section 31.205-18(e) of the Federal 
        Acquisition Regulation 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 toward costs 
        paid by non-Federal sources to a project, if the 
        expenses meet the other requirements of this section.
            (3) All projects under this section shall be 
        competitively selected using procedures determined by 
        the Secretary.
            (4) Any participant that receives funds under this 
        section may use generally accepted accounting 
        principles for maintaining accounts, books, and records 
        relating to the project.
            (5) No Federal funds shall be made available under 
        this section for construction or any project for more 
        than 5 years.
    (e) Selection Criteria.--
            (1) In general.--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) Criteria.--The Secretary shall consider the 
        following criteria in selecting a project to receive 
        Federal funds:
                    (A) The potential of the project to promote 
                the development of a commercially sustainable 
                technology cluster following the period of 
                Department investment, 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.
                    (E) Such other criteria as the Secretary 
                determines to be appropriate.
    (f) 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 such activities with the 
        project.
    (g) Report to Congress.--Not later than July 1, 2006, the 
Secretary shall report to Congress on whether the Technology 
Infrastructure Program should be continued and, if so, how the 
program should be managed.
    (h) Definitions.--In this section:
            (1) 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.
            (2) Technology-related business concern.--The term 
        ``technology-related business concern'' means a for-
        profit corporation, company, association, firm, 
        partnership, or small business concern that conducts 
        scientific or engineering research; develops new 
        technologies; manufactures products based on new 
        technologies; or performs technological services.
    (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 2004, 2005, and 
2006.

SEC. 979. REPROGRAMMING.

    (a) Distribution Report.--Not later than 60 days after the 
date of the enactment of an Act appropriating amounts 
authorized under this title, the Secretary shall transmit to 
the appropriate authorizing committees of Congress a report 
explaining how such amounts will be distributed among the 
authorizations contained in this title.
    (b) Prohibition.--
            (1) In general.--No amount identified under 
        subsection (a) shall be reprogrammed if such 
        reprogramming would result in an obligation which 
        changes an individual distribution required to be 
        reported under subsection (a) by more than 5 percent 
        unless the Secretary has transmitted to the appropriate 
        authorizing committees of Congress a report described 
        in subsection (c) and a period of 30 days has elapsed 
        after such committees receive the report.
            (2) Computation.--In the computation of the 30-day 
        period described in paragraph (1), there shall be 
        excluded any day on which either House of Congress is 
        not in session because of an adjournment of more than 3 
        days to a day certain.
    (c) Reprogramming Report.--A report referred to in 
subsection (b)(1) shall contain a full and complete statement 
of the action proposed to be taken and the facts and 
circumstances relied on in support of the proposed action.

SEC. 980. CONSTRUCTION WITH OTHER LAWS.

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

SEC. 981. REPORT ON RESEARCH AND DEVELOPMENT PROGRAM EVALUATION 
                    METHODOLOGIES.

    Not later than 180 days after the date of enactment of this 
Act, the Secretary shall enter into appropriate arrangements 
with the National Academy of Sciences to investigate and report 
on the scientific and technical merits of any evaluation 
methodology currently in use or proposed for use in relation to 
the scientific and technical programs of the Department by the 
Secretary or other Federal official. Not later than 6 months 
after receiving the report of the National Academy, the 
Secretary shall submit such report to Congress, along with any 
other views or plans of the Secretary with respect to the 
future use of such evaluation methodology.

SEC. 982. DEPARTMENT OF ENERGY SCIENCE AND TECHNOLOGY SCHOLARSHIP 
                    PROGRAM.

    (a) Establishment of Program.--
            (1) In general.--The Secretary is authorized to 
        establish a Department of Energy Science and Technology 
        Scholarship Program to award scholarships to 
        individuals that is designed to recruit and prepare 
        students for careers in the Department.
            (2) Competitive process.--Individuals shall be 
        selected to receive scholarships under this section 
        through a competitive process primarily on the basis of 
        academic merit, with consideration given to financial 
        need and the goal of promoting the participation of 
        individuals identified in section 33 or 34 of the 
        Science and Engineering Equal Opportunities Act (42 
        U.S.C. 1885a or 1885b).
            (3) Service agreements.--To carry out the Program 
        the Secretary shall enter into contractual agreements 
        with individuals selected under paragraph (2) under 
        which the individuals agree to serve as full-time 
        employees of the Department, for the period described 
        in subsection (f)(1), in positions needed by the 
        Department and for which the individuals are qualified, 
        in exchange for receiving a scholarship.
    (b) Scholarship Eligibility.--In order to be eligible to 
participate in the Program, an individual must--
            (1) be enrolled or accepted for enrollment as a 
        full-time student at an institution of higher education 
        in an academic program or field of study described in 
        the list made available under subsection (d);
            (2) be a United States citizen; and
            (3) at the time of the initial scholarship award, 
        not be a Federal employee as defined in section 2105 of 
        title 5 of the United States Code.
    (c) Application Required.--An individual seeking a 
scholarship under this section shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information, agreements, or assurances as the Secretary may 
require.
    (d) Eligible Academic Programs.--The Secretary shall make 
publicly available a list of academic programs and fields of 
study for which scholarships under the Program may be utilized, 
and shall update the list as necessary.
    (e) Scholarship Requirement.--
            (1) In general.--The Secretary may provide a 
        scholarship under the Program for an academic year if 
        the individual applying for the scholarship has 
        submitted to the Secretary, as part of the application 
        required under subsection (c), a proposed academic 
        program leading to a degree in a program or field of 
        study on the list made available under subsection (d).
            (2) Duration of eligibility.--An individual may not 
        receive a scholarship under this section for more than 
        4 academic years, unless the Secretary grants a waiver.
            (3) Scholarship amount.--The dollar amount of a 
        scholarship under this section for an academic year 
        shall be determined under regulations issued by the 
        Secretary, but shall in no case exceed the cost of 
        attendance.
            (4) Authorized uses.--A scholarship provided under 
        this section may be expended for tuition, fees, and 
        other authorized expenses as established by the 
        Secretary by regulation.
            (5) Contracts regarding direct payments to 
        institutions.--The Secretary may enter into a 
        contractual agreement with an institution of higher 
        education under which the amounts provided for a 
        scholarship under this section for tuition, fees, and 
        other authorized expenses are paid directly to the 
        institution with respect to which the scholarship is 
        provided.
    (f) Period of Obligated Service.--
            (1) Duration of service.--The period of service for 
        which an individual shall be obligated to serve as an 
        employee of the Department is, except as provided in 
        subsection (h)(2), 24 months for each academic year for 
        which a scholarship under this section is provided.
            (2) Schedule for service.--
                    (A) In general.--Except as provided in 
                subparagraph (B), obligated service under 
                paragraph (1) shall begin not later than 60 
                days after the individual obtains the 
                educational degree for which the scholarship 
                was provided.
                    (B) Deferral.--The Secretary may defer the 
                obligation of an individual to provide a period 
                of service under paragraph (1) if the Secretary 
                determines that such a deferral is appropriate. 
                The Secretary shall prescribe the terms and 
                conditions under which a service obligation may 
                be deferred through regulation.
    (g) Penalties for Breach of Scholarship Agreement.--
            (1) Failure to complete academic training.--
        Scholarship recipients who fail to maintain a high 
        level of academic standing, as defined by the Secretary 
        by regulation, who are dismissed from their educational 
        institutions for disciplinary reasons, or who 
        voluntarily terminate academic training before 
        graduation from the educational program for which the 
        scholarship was awarded, shall be in breach of their 
        contractual agreement and, in lieu of any service 
        obligation arising under such agreement, shall be 
        liable to the United States for repayment not later 
        than 1 year after the date of default of all 
        scholarship funds paid to them and to the institution 
        of higher education on their behalf under the 
        agreement, except as provided in subsection (h)(2). The 
        repayment period may be extended by the Secretary when 
        determined to be necessary, as established by 
        regulation.
            (2) Failure to begin or complete the service 
        obligation or meet the terms and conditions of 
        deferment.--A scholarship recipient who, for any 
        reason, fails to begin or complete a service obligation 
        under this section after completion of academic 
        training, or fails to comply with the terms and 
        conditions of deferment established by the Secretary 
        pursuant to subsection (f)(2)(B), shall be in breach of 
        the contractual agreement. When a recipient breaches an 
        agreement for the reasons stated in the preceding 
        sentence, the recipient shall be liable to the United 
        States for an amount equal to--
                    (A) the total amount of scholarships 
                received by such individual under this section; 
                plus
                    (B) the interest on the amounts of such 
                awards which would be payable if at the time 
                the awards were received they were loans 
                bearing interest at the maximum legal 
                prevailing rate, as determined by the Treasurer 
                of the United States,
        multiplied by 3.
    (h) Waiver or Suspension of Obligation.--
            (1) Death of individual.--Any obligation of an 
        individual incurred under the Program (or a contractual 
        agreement thereunder) for service or payment shall be 
        canceled upon the death of the individual.
            (2) Impossibility or extreme hardship.--The 
        Secretary shall by regulation provide for the partial 
        or total waiver or suspension of any obligation of 
        service or payment incurred by an individual under the 
        Program (or a contractual agreement thereunder) 
        whenever compliance by the individual is impossible or 
        would involve extreme hardship to the individual, or if 
        enforcement of such obligation with respect to the 
        individual would be contrary to the best interests of 
        the Government.
    (i) Definitions.--In this section the following definitions 
apply:
            (1) Cost of attendance.--The term ``cost of 
        attendance'' has the meaning given that term in section 
        472 of the Higher Education Act of 1965 (20 U.S.C. 
        1087ll).
            (2) Program.--The term ``Program'' means the 
        Department of Energy Science and Technology Scholarship 
        Program established under this section.
    (j) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for activities under this 
section--
            (1) for fiscal year 2004, $800,000;
            (2) for fiscal year 2005, $1,600,000;
            (3) for fiscal year 2006, $2,000,000;
            (4) for fiscal year 2007, $2,000,000; and
            (5) for fiscal year 2008, $2,000,000.

SEC. 983. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.

    Not later than 12 months after the date of enactment of 
this Act, and biennially thereafter, the Secretary shall 
transmit to Congress a report on the equal employment 
opportunity practices at National Laboratories. Such report 
shall include--
            (1) a thorough review of each laboratory 
        contractor's equal employment opportunity policies, 
        including promotion to management and professional 
        positions and pay raises;
            (2) a statistical report on complaints and their 
        disposition in the laboratories;
            (3) a description of how equal employment 
        opportunity practices at the laboratories are treated 
        in the contract and in calculating award fees for each 
        contractor;
            (4) a summary of disciplinary actions and their 
        disposition by either the Department or the relevant 
        contractors for each laboratory;
            (5) a summary of outreach efforts to attract women 
        and minorities to the laboratories;
            (6) a summary of efforts to retain women and 
        minorities in the laboratories; and
            (7) a summary of collaboration efforts with the 
        Office of Federal Contract Compliance Programs to 
        improve equal employment opportunity practices at the 
        laboratories.

SEC. 984. 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, 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, 
        including socially and economically disadvantaged small 
        business concerns, in procurement, collaborative 
        research, technology licensing, and technology transfer 
        activities along with recommendations, if appropriate, 
        on how to improve participation;
            (3) make available to small businesses 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 such 
        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--
            (1) assistance directed at making them more 
        effective and efficient subcontractors or suppliers to 
        the National Laboratory or single-purpose research 
        facility; or
            (2) general technical assistance, the cost of which 
        shall not exceed $10,000 per instance of assistance, to 
        improve the small business concerns' products or 
        services.
    (c) Use of Funds.--None of the funds expended under 
subsection (b) may be used for direct grants to the small 
business concerns.
    (d) Definitions.--In this section:
            (1) Small business concern.--The term ``small 
        business concern'' has the meaning given such term in 
        section 3 of the Small Business Act (15 U.S.C. 632).
            (2) Socially and economically disadvantaged small 
        business concerns.--The term ``socially and 
        economically disadvantaged small business concerns'' 
        has the meaning given such term in section 8(a)(4) of 
        the Small Business Act (15 U.S.C. 637(a)(4)).
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for activities under this 
section $5,000,000 for each of fiscal years 2004 through 2008.

SEC. 985. REPORT ON MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

    Not later than 2 years after the date of enactment of this 
Act, the Secretary shall transmit a report to Congress 
identifying any policies or procedures of a contractor 
operating a National Laboratory or single-purpose research 
facility that create disincentives to the temporary transfer of 
scientific and technical personnel among the contractor-
operated National Laboratories or contractor-operated single-
purpose research facilities and provide suggestions for 
improving interlaboratory exchange of scientific and technical 
personnel.

SEC. 986. NATIONAL ACADEMY OF SCIENCES REPORT.

    Not later than 90 days after the date of enactment of this 
Act, the Secretary shall enter into an arrangement with the 
National Academy of Sciences for the Academy to--
            (1) conduct a study on--
                    (A) the obstacles to accelerating the 
                commercial application of energy technology; 
                and
                    (B) the adequacy of Department policies and 
                procedures for, and oversight of, technology 
                transfer-related disputes between contractors 
                of the Department and the private sector; and
            (2) transmit a report to Congress on 
        recommendations developed as a result of the study.

SEC. 987. OUTREACH.

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

SEC. 988. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

    None of the funds authorized to be appropriated to the 
Secretary by this title may be used to award a management and 
operating contract for a nonmilitary energy laboratory of the 
Department unless such contract is competitively awarded or the 
Secretary grants, on a case-by-case basis, a waiver to allow 
for such a deviation. The Secretary may not delegate the 
authority to grant such a waiver and shall submit to Congress a 
report notifying Congress of the waiver and setting forth the 
reasons for the waiver at least 60 days prior to the date of 
the award of such a contract.

SEC. 989. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

    (a) Activities.--Section 3165(a) of the Department of 
Energy Science Education Enhancement Act (42 U.S.C. 7381b(a)) 
is amended by adding at the end the following:
            ``(14) Support competitive events for students, 
        under supervision of teachers, designed to encourage 
        student interest and knowledge in science and 
        mathematics.''.
    (b) Authorization of Appropriations.--Section 3169 of the 
Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381e), as so redesignated by section 1102(b), is 
amended by inserting before the period ``; and $40,000,000 for 
each of fiscal years 2004 through 2008''.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 1001. ADDITIONAL ASSISTANT SECRETARY POSITION.

    (a) Additional Assistant Secretary Position To Enable 
Improved Management of Nuclear Energy Issues.--
            (1) In general.--Section 203(a) of the Department 
        of Energy Organization Act (42 U.S.C. 7133(a)) is 
        amended by striking ``six Assistant Secretaries'' and 
        inserting ``7 Assistant Secretaries''.
            (2) Sense of congress.--It is the sense of Congress 
        that the leadership for departmental missions in 
        nuclear energy should be at the Assistant Secretary 
        level.
    (b) Technical and Conforming Amendments.--
            (1) Title 5.--Section 5315 of title 5, United 
        States Code, is amended by striking ``Assistant 
        Secretaries of Energy (6)'' and inserting ``Assistant 
        Secretaries of Energy (7)''.
            (2) Department of energy organization act.--The 
        table of contents for the Department of Energy 
        Organization Act (42 U.S.C. 7101 note) is amended--
                    (A) by striking ``Section 209'' and 
                inserting ``Sec. 209'';
                    (B) by striking ``213.'' and inserting 
                ``Sec. 213.'';
                    (C) by striking ``214.'' and inserting 
                ``Sec. 214.'';
                    (D) by striking ``215.'' and inserting 
                ``Sec. 215.''; and
                    (E) by striking ``216.'' and inserting 
                ``Sec. 216.''.

SEC. 1002. OTHER TRANSACTIONS AUTHORITY.

    Section 646 of the Department of Energy Organization Act 
(42 U.S.C. 7256) is amended by adding at the end the following:
    ``(g)(1) In addition to other authorities granted to the 
Secretary under law, the Secretary may enter into other 
transactions on such terms as the Secretary may deem 
appropriate in furtherance of research, development, or 
demonstration functions vested in the Secretary. Such other 
transactions shall not be subject to the provisions of section 
9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 U.S.C. 5908) or section 152 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2182).
    ``(2)(A) The Secretary shall ensure that--
            ``(i) to the maximum extent the Secretary 
        determines practicable, no transaction entered into 
        under paragraph (1) provides for research, development, 
        or demonstration that duplicates research, development, 
        or demonstration being conducted under existing 
        projects carried out by the Department;
            ``(ii) to the extent the Secretary determines 
        practicable, the funds provided by the Government under 
        a transaction authorized by paragraph (1) do not exceed 
        the total amount provided by other parties to the 
        transaction; and
            ``(iii) to the extent the Secretary determines 
        practicable, competitive, merit-based selection 
        procedures shall be used when entering into 
        transactions under paragraph (1).
    ``(B) A transaction authorized by paragraph (1) may be used 
for a research, development, or demonstration project only if 
the Secretary makes a written determination that the use of a 
standard contract, grant, or cooperative agreement for the 
project is not feasible or appropriate.
    ``(3)(A) The Secretary shall protect from disclosure, 
including disclosure under section 552 of title 5, United 
States Code, for up to 5 years after the date the information 
is received by the Secretary--
            ``(i) a proposal, proposal abstract, and supporting 
        documents submitted to the Department in a competitive 
        or noncompetitive process having the potential for 
        resulting in an award under paragraph (1) to the party 
        submitting the information; and
            ``(ii) a business plan and technical information 
        relating to a transaction authorized by paragraph (1) 
        submitted to the Department as confidential business 
        information.
    ``(B) The Secretary may protect from disclosure, for up to 
5 years after the information was developed, any information 
developed pursuant to a transaction under paragraph (1) which 
developed information is of a character that it would be 
protected from disclosure under section 552(b)(4) of title 5, 
United States Code, if obtained from a person other than a 
Federal agency.
    ``(4) Not later than 90 days after the date of enactment of 
this subsection, the Secretary shall prescribe guidelines for 
using other transactions authorized by paragraph (1). Such 
guidelines shall be published in the Federal Register for 
public comment under rulemaking procedures of the Department.
    ``(5) The authority of the Secretary under this subsection 
may be delegated only to an officer of the Department who is 
appointed by the President by and with the advice and consent 
of the Senate and may not be delegated to any other person.
    ``(6)(A) Not later than September 31, 2005, the Comptroller 
General of the United States shall report to Congress on the 
Department's use of the authorities granted under this section, 
including the ability to attract nontraditional government 
contractors and whether additional safeguards are needed with 
respect to the use of such authorities.
    ``(B) In this section, the term `nontraditional Government 
contractor' has the same meaning as the term `nontraditional 
defense contractor' as defined in section 845(e) of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160; 10 U.S.C. 2371 note).''.

                    TITLE XI--PERSONNEL AND TRAINING

SEC. 1101. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.

    The Secretary of Energy, in consultation with the Secretary 
of Labor and jointly with the electric industry and recognized 
employee representatives, shall develop model personnel 
training guidelines to support electric system reliability and 
safety. The training guidelines shall, at a minimum--
            (1) include training requirements for workers 
        engaged in the construction, operation, inspection, and 
        maintenance of electric generation, transmission, and 
        distribution, including competency and certification 
        requirements, and assessment requirements that include 
        initial and ongoing evaluation of workers, 
        recertification assessment procedures, and methods for 
        examining or testing the qualification of individuals 
        performing covered tasks; and
            (2) consolidate existing training guidelines on the 
        construction, operation, maintenance, and inspection of 
        electric generation, transmission, and distribution 
        facilities, such as those established by the National 
        Electric Safety Code and other industry consensus 
        standards.

SEC. 1102. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
                    CAREERS.

    (a) Department of Energy Science Education Programs.--
Section 3164 of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381a) is amended by adding at the 
end the following:
    ``(c) Programs for Students From Underrepresented Groups.--
In carrying out a program under subsection (a), the Secretary 
shall give priority to activities that are designed to 
encourage students from underrepresented 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 
        that 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 that term in section 
        902 of the Energy Policy Act of 2003.
            ``(4) Science facility.--The term `science 
        facility' has the meaning given the term `single-
        purpose research facility' in section 902 of the Energy 
        Policy Act of 2003.
            ``(5) Tribal college.--The term `tribal college' 
        has the meaning given the term `Tribal College or 
        University' in section 316(b)(3) of the Higher 
        Education Act of 1965 (20 U.S.C. 1059c(b)(3)).
    ``(b) Education Partnership.--The Secretary shall direct 
the Director of each National Laboratory and, to the extent 
practicable, the head of any science facility to increase the 
participation of historically Black colleges or universities, 
Hispanic-serving institutions, or tribal colleges in activities 
that increase 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 under subsection (b) may 
include--
            ``(1) collaborative research;
            ``(2) equipment transfer;
            ``(3) training activities conducted at a National 
        Laboratory or science facility; and
            ``(4) mentoring activities conducted at a National 
        Laboratory or science facility.
    ``(d) Report.--Not later than 2 years after the date of 
enactment of the Energy Policy Act of 2003, the Secretary shall 
submit to Congress a report on the activities carried out under 
this section.''.

SEC. 1103. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATION 
                    CENTER.

    (a) Establishment.--The Secretary shall support the 
establishment of a National Power Plant Operations Technology 
and Education Center (in this section referred to as the 
``Center''), to address the need for training and educating 
certified operators for nonnuclear electric power generation 
plants.
    (b) Role.--The Center shall provide both training and 
continuing education relating to nonnuclear electric power 
generation plant technologies and operations. The Center shall 
conduct training and education activities on site and through 
Internet-based information technologies that allow for learning 
at remote sites.
    (c) Criteria for Competitive Selection.--The Secretary 
shall support the establishment of the Center at an institution 
of higher education with expertise in power plant technology 
and operation and with the ability to provide onsite as well as 
Internet-based training.

SEC. 1104. INTERNATIONAL ENERGY TRAINING.

    (a) In General.--The Secretary of Energy, in consultation 
with the Secretaries of Commerce, Interior, and State and the 
Federal Energy Regulatory Commission, shall coordinate training 
and outreach efforts for international commercial energy 
markets in countries with developing and restructuring 
economies.
    (b) Components.--The efforts may address--
            (1) production-related fiscal regimes;
            (2) grid and network issues;
            (3) energy user and demand side response;
            (4) international trade of energy; and
            (5) international transportation of energy.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $1,500,000 for 
each of fiscal years 2004 through 2007.

                         TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Electric Reliability Act 
of 2003''.

                   Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

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

``SEC. 215. ELECTRIC RELIABILITY.

    ``(a) Definitions.--For purposes of this section:
            ``(1) The term `bulk-power system' means--
                    ``(A) facilities and control systems 
                necessary for operating an interconnected 
                electric energy transmission network (or any 
                portion thereof); and
                    ``(B) electric energy from generation 
                facilities needed to maintain transmission 
                system reliability.
        The term does not include facilities used in the local 
        distribution of electric energy.
            ``(2) The terms `Electric Reliability Organization' 
        and `ERO' mean the organization certified by the 
        Commission under subsection (c) the purpose of which is 
        to establish and enforce reliability standards for the 
        bulk-power system, subject to Commission review.
            ``(3) The term `reliability standard' means a 
        requirement, approved by the Commission under this 
        section, to provide for reliable operation of the bulk-
        power system. The term includes requirements for the 
        operation of existing bulk-power system facilities and 
        the design of planned additions or modifications to 
        such facilities to the extent necessary to provide for 
        reliable operation of the bulk-power system, but the 
        term does not include any requirement to enlarge such 
        facilities or to construct new transmission capacity or 
        generation capacity.
            ``(4) The term `reliable operation' means operating 
        the elements of the bulk-power system within equipment 
        and electric system thermal, voltage, and stability 
        limits so that instability, uncontrolled separation, or 
        cascading failures of such system will not occur as a 
        result of a sudden disturbance or unanticipated failure 
        of system elements.
            ``(5) The term `Interconnection' means a geographic 
        area in which the operation of bulk-power system 
        components is synchronized such that the failure of 1 
        or more of such components may adversely affect the 
        ability of the operators of other components within the 
        system to maintain reliable operation of the facilities 
        within their control.
            ``(6) The term `transmission organization' means a 
        Regional Transmission Organization, Independent System 
        Operator, independent transmission provider, or other 
        transmission organization finally approved by the 
        Commission for the operation of transmission 
        facilities.
            ``(7) The term `regional entity' means an entity 
        having enforcement authority pursuant to subsection 
        (e)(4).
    ``(b) Jurisdiction and Applicability.--(1) The Commission 
shall have jurisdiction, within the United States, over the ERO 
certified by the Commission under subsection (c), any regional 
entities, and all users, owners and operators of the bulk-power 
system, including but not limited to the entities described in 
section 201(f), for purposes of approving reliability standards 
established under this section and enforcing compliance with 
this section. All users, owners and operators of the bulk-power 
system shall comply with reliability standards that take effect 
under this section.
    ``(2) The Commission shall issue a final rule to implement 
the requirements of this section not later than 180 days after 
the date of enactment of this section.
    ``(c) Certification.--Following the issuance of a 
Commission rule under subsection (b)(2), any person may submit 
an application to the Commission for certification as the 
Electric Reliability Organization. The Commission may certify 1 
such ERO if the Commission determines that such ERO--
            ``(1) has the ability to develop and enforce, 
        subject to subsection (e)(2), reliability standards 
        that provide for an adequate level of reliability of 
        the bulk-power system; and
            ``(2) has established rules that--
                    ``(A) assure its independence of the users 
                and owners and operators of the bulk-power 
                system, while assuring fair stakeholder 
                representation in the selection of its 
                directors and balanced decisionmaking in any 
                ERO committee or subordinate organizational 
                structure;
                    ``(B) allocate equitably reasonable dues, 
                fees, and other charges among end users for all 
                activities under this section;
                    ``(C) provide fair and impartial procedures 
                for enforcement of reliability standards 
                through the imposition of penalties in 
                accordance with subsection (e) (including 
                limitations on activities, functions, or 
                operations, or other appropriate sanctions);
                    ``(D) provide for reasonable notice and 
                opportunity for public comment, due process, 
                openness, and balance of interests in 
                developing reliability standards and otherwise 
                exercising its duties; and
                    ``(E) provide for taking, after 
                certification, appropriate steps to gain 
                recognition in Canada and Mexico.
    ``(d) Reliability Standards.--(1) The Electric Reliability 
Organization shall file each reliability standard or 
modification to a reliability standard that it proposes to be 
made effective under this section with the Commission.
    ``(2) The Commission may approve, by rule or order, a 
proposed reliability standard or modification to a reliability 
standard if it determines that the standard is just, 
reasonable, not unduly discriminatory or preferential, and in 
the public interest. The Commission shall give due weight to 
the technical expertise of the Electric Reliability 
Organization with respect to the content of a proposed standard 
or modification to a reliability standard and to the technical 
expertise of a regional entity organized on an Interconnection-
wide basis with respect to a reliability standard to be 
applicable within that Interconnection, but shall not defer 
with respect to the effect of a standard on competition. A 
proposed standard or modification shall take effect upon 
approval by the Commission.
    ``(3) The Electric Reliability Organization shall 
rebuttably presume that a proposal from a regional entity 
organized on an Interconnection-wide basis for a reliability 
standard or modification to a reliability standard to be 
applicable on an Interconnection-wide basis is just, 
reasonable, and not unduly discriminatory or preferential, and 
in the public interest.
    ``(4) The Commission shall remand to the Electric 
Reliability Organization for further consideration a proposed 
reliability standard or a modification to a reliability 
standard that the Commission disapproves in whole or in part.
    ``(5) The Commission, upon its own motion or upon 
complaint, may order the Electric Reliability Organization to 
submit to the Commission a proposed reliability standard or a 
modification to a reliability standard that addresses a 
specific matter if the Commission considers such a new or 
modified reliability standard appropriate to carry out this 
section.
    ``(6) The final rule adopted under subsection (b)(2) shall 
include fair processes for the identification and timely 
resolution of any conflict between a reliability standard and 
any function, rule, order, tariff, rate schedule, or agreement 
accepted, approved, or ordered by the Commission applicable to 
a transmission organization. Such transmission organization 
shall continue to comply with such function, rule, order, 
tariff, rate schedule or agreement accepted approved, or 
ordered by the Commission until--
            ``(A) the Commission finds a conflict exists 
        between a reliability standard and any such provision;
            ``(B) the Commission orders a change to such 
        provision pursuant to section 206 of this part; and
            ``(C) the ordered change becomes effective under 
        this part.
If the Commission determines that a reliability standard needs 
to be changed as a result of such a conflict, it shall order 
the ERO to develop and file with the Commission a modified 
reliability standard under paragraph (4) or (5) of this 
subsection.
    ``(e) Enforcement.--(1) The ERO may impose, subject to 
paragraph (2), a penalty on a user or owner or operator of the 
bulk-power system for a violation of a reliability standard 
approved by the Commission under subsection (d) if the ERO, 
after notice and an opportunity for a hearing--
            ``(A) finds that the user or owner or operator has 
        violated a reliability standard approved by the 
        Commission under subsection (d); and
            ``(B) files notice and the record of the proceeding 
        with the Commission.
    ``(2) A penalty imposed under paragraph (1) may take effect 
not earlier than the 31st day after the ERO files with the 
Commission notice of the penalty and the record of proceedings. 
Such penalty shall be subject to review by the Commission, on 
its own motion or upon application by the user, owner or 
operator that is the subject of the penalty filed within 30 
days after the date such notice is filed with the Commission. 
Application to the Commission for review, or the initiation of 
review by the Commission on its own motion, shall not operate 
as a stay of such penalty unless the Commission otherwise 
orders upon its own motion or upon application by the user, 
owner or operator that is the subject of such penalty. In any 
proceeding to review a penalty imposed under paragraph (1), the 
Commission, after notice and opportunity for hearing (which 
hearing may consist solely of the record before the ERO and 
opportunity for the presentation of supporting reasons to 
affirm, modify, or set aside the penalty), shall by order 
affirm, set aside, reinstate, or modify the penalty, and, if 
appropriate, remand to the ERO for further proceedings. The 
Commission shall implement expedited procedures for such 
hearings.
    ``(3) On its own motion or upon complaint, the Commission 
may order compliance with a reliability standard and may impose 
a penalty against a user or owner or operator of the bulk-power 
system if the Commission finds, after notice and opportunity 
for a hearing, that the user or owner or operator of the bulk-
power system has engaged or is about to engage in any acts or 
practices that constitute or will constitute a violation of a 
reliability standard.
    ``(4) The Commission shall issue regulations authorizing 
the ERO to enter into an agreement to delegate authority to a 
regional entity for the purpose of proposing reliability 
standards to the ERO and enforcing reliability standards under 
paragraph (1) if--
            ``(A) the regional entity is governed by--
                    ``(i) an independent board;
                    ``(ii) a balanced stakeholder board; or
                    ``(iii) a combination independent and 
                balanced stakeholder board.
            ``(B) the regional entity otherwise satisfies the 
        provisions of subsection (c)(1) and (2); and
            ``(C) the agreement promotes effective and 
        efficient administration of bulk-power system 
        reliability.
The Commission may modify such delegation. The ERO and the 
Commission shall rebuttably presume that a proposal for 
delegation to a regional entity organized on an 
Interconnection-wide basis promotes effective and efficient 
administration of bulk-power system reliability and should be 
approved. Such regulation may provide that the Commission may 
assign the ERO's authority to enforce reliability standards 
under paragraph (1) directly to a regional entity consistent 
with the requirements of this paragraph.
    ``(5) The Commission may take such action as is necessary 
or appropriate against the ERO or a regional entity to ensure 
compliance with a reliability standard or any Commission order 
affecting the ERO or a regional entity.
    ``(6) Any penalty imposed under this section shall bear a 
reasonable relation to the seriousness of the violation and 
shall take into consideration the efforts of such user, owner, 
or operator to remedy the violation in a timely manner.
    ``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the 
Commission for approval any proposed rule or proposed rule 
change, accompanied by an explanation of its basis and purpose. 
The Commission, upon its own motion or complaint, may propose a 
change to the rules of the ERO. A proposed rule or proposed 
rule change shall take effect upon a finding by the Commission, 
after notice and opportunity for comment, that the change is 
just, reasonable, not unduly discriminatory or preferential, is 
in the public interest, and satisfies the requirements of 
subsection (c).
    ``(g) Reliability Reports.--The ERO shall conduct periodic 
assessments of the reliability and adequacy of the bulk-power 
system in North America.
    ``(h) Coordination With Canada and Mexico.--The President 
is urged to negotiate international agreements with the 
governments of Canada and Mexico to provide for effective 
compliance with reliability standards and the effectiveness of 
the ERO in the United States and Canada or Mexico.
    ``(i) Savings Provisions.--(1) The ERO shall have authority 
to develop and enforce compliance with reliability standards 
for only the bulk-power system.
    ``(2) This section does not authorize the ERO or the 
Commission to order the construction of additional generation 
or transmission capacity or to set and enforce compliance with 
standards for adequacy or safety of electric facilities or 
services.
    ``(3) Nothing in this section shall be construed to preempt 
any authority of any State to take action to ensure the safety, 
adequacy, and reliability of electric service within that 
State, as long as such action is not inconsistent with any 
reliability standard.
    ``(4) Within 90 days of the application of the Electric 
Reliability Organization or other affected party, and after 
notice and opportunity for comment, the Commission shall issue 
a final order determining whether a State action is 
inconsistent with a reliability standard, taking into 
consideration any recommendation of the ERO.
    ``(5) The Commission, after consultation with the ERO and 
the State taking action, may stay the effectiveness of any 
State action, pending the Commission's issuance of a final 
order.
    ``(j) Regional Advisory Bodies.--The Commission shall 
establish a regional advisory body on the petition of at least 
\2/3\ of the States within a region that have more than \1/2\ 
of their electric load served within the region. A regional 
advisory body shall be composed of 1 member from each 
participating State in the region, appointed by the Governor of 
each State, and may include representatives of agencies, 
States, and provinces outside the United States. A regional 
advisory body may provide advice to the Electric Reliability 
Organization, a regional entity, or the Commission regarding 
the governance of an existing or proposed regional entity 
within the same region, whether a standard proposed to apply 
within the region is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest, 
whether fees proposed to be assessed within the region are 
just, reasonable, not unduly discriminatory or preferential, 
and in the public interest and any other responsibilities 
requested by the Commission. The Commission may give deference 
to the advice of any such regional advisory body if that body 
is organized on an Interconnection-wide basis.
    ``(k) Alaska and Hawaii.--The provisions of this section do 
not apply to Alaska or Hawaii.''.
    (b) Status of ERO.--The Electric Reliability Organization 
certified by the Federal Energy Regulatory Commission under 
section 215(c) of the Federal Power Act and any regional entity 
delegated enforcement authority pursuant to section 215(e)(4) 
of that Act are not departments, agencies, or instrumentalities 
of the United States Government.

         Subtitle B--Transmission Infrastructure Modernization

SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

    (a) Amendment of Federal Power Act.--Part II of the Federal 
Power Act is amended by adding at the end the following:

``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

    ``(a) Designation of National Interest Electric 
Transmission Corridors.--
            ``(1) Transmission congestion study.--Within 1 year 
        after the enactment of this section, and every 3 years 
        thereafter, the Secretary of Energy, in consultation 
        with affected States, shall conduct a study of electric 
        transmission congestion. After considering alternatives 
        and recommendations from interested parties, including 
        an opportunity for comment from affected States, the 
        Secretary shall issue a report, based on such study, 
        which may designate any geographic area experiencing 
        electric energy transmission capacity constraints or 
        congestion that adversely affects consumers as a 
        national interest electric transmission corridor. The 
        Secretary shall conduct the study and issue the report 
        in consultation with any appropriate regional entity 
        referenced in section 215 of this Act.
            ``(2) Considerations.--In determining whether to 
        designate a national interest electric transmission 
        corridor referred to in paragraph (1) under this 
        section, the Secretary may consider whether--
                    ``(A) the economic vitality and development 
                of the corridor, or the end markets served by 
                the corridor, may be constrained by lack of 
                adequate or reasonably priced electricity;
                    ``(B)(i) economic growth in the corridor, 
                or the end markets served by the corridor, may 
                be jeopardized by reliance on limited sources 
                of energy; and
                    ``(ii) a diversification of supply is 
                warranted;
                    ``(C) the energy independence of the United 
                States would be served by the designation;
                    ``(D) the designation would be in the 
                interest of national energy policy; and
                    ``(E) the designation would enhance 
                national defense and homeland security.
    ``(b) Construction Permit.--Except as provided in 
subsection (i), the Commission is authorized, after notice and 
an opportunity for hearing, to issue a permit or permits for 
the construction or modification of electric transmission 
facilities in a national interest electric transmission 
corridor designated by the Secretary under subsection (a) if 
the Commission finds that--
            ``(1)(A) a State in which the transmission 
        facilities are to be constructed or modified is without 
        authority to--
                    ``(i) approve the siting of the facilities; 
                or
                    ``(ii) consider the interstate benefits 
                expected to be achieved by the proposed 
                construction or modification of transmission 
                facilities in the State;
            ``(B) the applicant for a permit is a transmitting 
        utility under this Act but does not qualify to apply 
        for a permit or siting approval for the proposed 
        project in a State because the applicant does not serve 
        end-use customers in the State; or
            ``(C) a State commission or other entity that has 
        authority to approve the siting of the facilities has--
                    ``(i) withheld approval for more than 1 
                year after the filing of an application 
                pursuant to applicable law seeking approval or 
                1 year after the designation of the relevant 
                national interest electric transmission 
                corridor, whichever is later; or
                    ``(ii) conditioned its approval in such a 
                manner that the proposed construction or 
                modification will not significantly reduce 
                transmission congestion in interstate commerce 
                or is not economically feasible;
            ``(2) the facilities to be authorized by the permit 
        will be used for the transmission of electric energy in 
        interstate commerce;
            ``(3) the proposed construction or modification is 
        consistent with the public interest;
            ``(4) the proposed construction or modification 
        will significantly reduce transmission congestion in 
        interstate commerce and protects or benefits consumers; 
        and
            ``(5) the proposed construction or modification is 
        consistent with sound national energy policy and will 
        enhance energy independence.
    ``(c) Permit Applications.--Permit applications under 
subsection (b) shall be made in writing to the Commission. The 
Commission shall issue rules setting forth the form of the 
application, the information to be contained in the 
application, and the manner of service of notice of the permit 
application upon interested persons.
    ``(d) Comments.--In any proceeding before the Commission 
under subsection (b), the Commission shall afford each State in 
which a transmission facility covered by the permit is or will 
be located, each affected Federal agency and Indian tribe, 
private property owners, and other interested persons, a 
reasonable opportunity to present their views and 
recommendations with respect to the need for and impact of a 
facility covered by the permit.
    ``(e) Rights-of-Way.--In the case of a permit under 
subsection (b) for electric transmission facilities to be 
located on property other than property owned by the United 
States or a State, if the permit holder cannot acquire by 
contract, or is unable to agree with the owner of the property 
to the compensation to be paid for, the necessary right-of-way 
to construct or modify such transmission facilities, the permit 
holder may acquire the right-of-way by the exercise of the 
right of eminent domain in the district court of the United 
States for the district in which the property concerned is 
located, or in the appropriate court of the State in which the 
property is located. The practice and procedure in any action 
or proceeding for that purpose in the district court of the 
United States shall conform as nearly as may be with the 
practice and procedure in similar action or proceeding in the 
courts of the State where the property is situated.
    ``(f) State Law.--Nothing in this section shall preclude 
any person from constructing or modifying any transmission 
facility pursuant to State law.
    ``(g) Compensation.--Any exercise of eminent domain 
authority pursuant to this section shall be considered a taking 
of private property for which just compensation is due. Just 
compensation shall be an amount equal to the full fair market 
value of the property taken on the date of the exercise of 
eminent domain authority, except that the compensation shall 
exceed fair market value if necessary to make the landowner 
whole for decreases in the value of any portion of the land not 
subject to eminent domain. Any parcel of land acquired by 
eminent domain under this subsection shall be transferred back 
to the owner from whom it was acquired (or his heirs or 
assigns) if the land is not used for the construction or 
modification of electric transmission facilities within a 
reasonable period of time after the acquisition. Other than 
construction, modification, operation, or maintenance of 
electric transmission facilities and related facilities, 
property acquired under subsection (e) may not be used for any 
purpose (including use for any heritage area, recreational 
trail, or park) without the consent of the owner of the parcel 
from whom the property was acquired (or the owner's heirs or 
assigns).
    ``(h) Coordination of Federal Authorizations for 
Transmission and Distribution Facilities.--
            ``(1) Lead agency.--If an applicant, or prospective 
        applicant, for a Federal authorization related to an 
        electric transmission or distribution facility so 
        requests, the Department of Energy (DOE) shall act as 
        the lead agency for purposes of coordinating all 
        applicable Federal authorizations and related 
        environmental reviews of the facility. For purposes of 
        this subsection, the term `Federal authorization' means 
        any authorization required under Federal law in order 
        to site a transmission or distribution facility, 
        including but not limited to such permits, special use 
        authorizations, certifications, opinions, or other 
        approvals as may be required, whether issued by a 
        Federal or a State agency. To the maximum extent 
        practicable under applicable Federal law, the Secretary 
        of Energy shall coordinate this Federal authorization 
        and review process with any Indian tribes, multi-State 
        entities, and State agencies that are responsible for 
        conducting any separate permitting and environmental 
        reviews of the facility, to ensure timely and efficient 
        review and permit decisions.
            ``(2) Authority to set deadlines.--As lead agency, 
        the Department of Energy, in consultation with agencies 
        responsible for Federal authorizations and, as 
        appropriate, with Indian tribes, multi-State entities, 
        and State agencies that are willing to coordinate their 
        own separate permitting and environmental reviews with 
        the Federal authorization and environmental reviews, 
        shall establish prompt and binding intermediate 
        milestones and ultimate deadlines for the review of, 
        and Federal authorization decisions relating to, the 
        proposed facility. The Secretary of Energy shall ensure 
        that once an application has been submitted with such 
        data as the Secretary considers necessary, all permit 
        decisions and related environmental reviews under all 
        applicable Federal laws shall be completed within 1 
        year or, if a requirement of another provision of 
        Federal law makes this impossible, as soon thereafter 
        as is practicable. The Secretary of Energy also shall 
        provide an expeditious pre-application mechanism for 
        prospective applicants to confer with the agencies 
        involved to have each such agency determine and 
        communicate to the prospective applicant within 60 days 
        of when the prospective applicant submits a request for 
        such information concerning--
                    ``(A) the likelihood of approval for a 
                potential facility; and
                    ``(B) key issues of concern to the agencies 
                and public.
            ``(3) Consolidated environmental review and record 
        of decision.--As lead agency head, the Secretary of 
        Energy, in consultation with the affected agencies, 
        shall prepare a single environmental review document, 
        which shall be used as the basis for all decisions on 
        the proposed project under Federal law. The document 
        may be an environmental assessment or environmental 
        impact statement under the National Environmental 
        Policy Act of 1969 if warranted, or such other form of 
        analysis as may be warranted. The Secretary of Energy 
        and the heads of other agencies shall streamline the 
        review and permitting of transmission and distribution 
        facilities within corridors designated under section 
        503 of the Federal Land Policy and Management Act (43 
        U.S.C. 1763) by fully taking into account prior 
        analyses and decisions relating to the corridors. Such 
        document shall include consideration by the relevant 
        agencies of any applicable criteria or other matters as 
        required under applicable laws.
            ``(4) Appeals.--In the event that any agency has 
        denied a Federal authorization required for a 
        transmission or distribution facility, or has failed to 
        act by the deadline established by the Secretary 
        pursuant to this section for deciding whether to issue 
        the authorization, the applicant or any State in which 
        the facility would be located may file an appeal with 
        the Secretary, who shall, in consultation with the 
        affected agency, review the denial or take action on 
        the pending application. Based on the overall record 
        and in consultation with the affected agency, the 
        Secretary may then either issue the necessary 
        authorization with any appropriate conditions, or deny 
        the application. The Secretary shall issue a decision 
        within 90 days of the filing of the appeal. In making a 
        decision under this paragraph, the Secretary shall 
        comply with applicable requirements of Federal law, 
        including any requirements of the Endangered Species 
        Act, the Clean Water Act, the National Forest 
        Management Act, the National Environmental Policy Act 
        of 1969, and the Federal Land Policy and Management 
        Act.
            ``(5) Conforming regulations and memoranda of 
        understanding.--Not later than 18 months after the date 
        of enactment of this section, the Secretary of Energy 
        shall issue any regulations necessary to implement this 
        subsection. Not later than 1 year after the date of 
        enactment of this section, the Secretary and the heads 
        of all Federal agencies with authority to issue Federal 
        authorizations shall enter into Memoranda of 
        Understanding to ensure the timely and coordinated 
        review and permitting of electricity transmission and 
        distribution facilities. The head of each Federal 
        agency with authority to issue a Federal authorization 
        shall designate a senior official responsible for, and 
        dedicate sufficient other staff and resources to 
        ensure, full implementation of the DOE regulations and 
        any Memoranda. Interested Indian tribes, multi-State 
        entities, and State agencies may enter such Memoranda 
        of Understanding.
            ``(6) Duration and Renewal.--Each Federal land use 
        authorization for an electricity transmission or 
        distribution facility shall be issued--
                    ``(A) for a duration, as determined by the 
                Secretary of Energy, commensurate with the 
                anticipated use of the facility, and
                    ``(B) with appropriate authority to manage 
                the right-of-way for reliability and 
                environmental protection.
        Upon the expiration of any such authorization 
        (including an authorization issued prior to enactment 
        of this section),the authorization shall be reviewed 
for renewal taking fully into account reliance on such electricity 
infrastructure, recognizing its importance for public health, safety 
and economic welfare and as a legitimate use of Federal lands.
            ``(7) Maintaining and enhancing the transmission 
        infrastructure.--In exercising the responsibilities 
        under this section, the Secretary of Energy shall 
        consult regularly with the Federal Energy Regulatory 
        Commission (FERC), FERC-approved electric reliability 
        organizations (including related regional entities), 
        and FERC-approved Regional Transmission Organizations 
        and Independent System Operators.
    ``(i) Interstate Compacts.--The consent of Congress is 
hereby given for 3 or more contiguous States to enter into an 
interstate compact, subject to approval by Congress, 
establishing regional transmission siting agencies to 
facilitate siting of future electric energy transmission 
facilities within such States and to carry out the electric 
energy transmission siting responsibilities of such States. The 
Secretary of Energy may provide technical assistance to 
regional transmission siting agencies established under this 
subsection. Such regional transmission siting agencies shall 
have the authority to review, certify, and permit siting of 
transmission facilities, including facilities in national 
interest electric transmission corridors (other than facilities 
on property owned by the United States). The Commission shall 
have no authority to issue a permit for the construction or 
modification of electric transmission facilities within a State 
that is a party to a compact, unless the members of a compact 
are in disagreement and the Secretary makes, after notice and 
an opportunity for a hearing, the finding described in section 
(b)(1)(C).
    ``(j) Savings Clause.--Nothing in this section shall be 
construed to affect any requirement of the environmental laws 
of the United States, including, but not limited to, the 
National Environmental Policy Act of 1969. Subsection (h)(4) of 
this section shall not apply to any Congressionally-designated 
components of the National Wilderness Preservation System, the 
National Wild and Scenic Rivers System, or the National Park 
system (including National Monuments therein).
    ``(k) ERCOT.--This section shall not apply within the area 
referred to in section 212(k)(2)(A).''.
    (b) Reports to Congress on Corridors and Rights of Way on 
Federal Lands.--The Secretary of the Interior, the Secretary of 
Energy, the Secretary of Agriculture, and the Chairman of the 
Council on Environmental Quality shall, within 90 days of the 
date of enactment of this subsection, submit a joint report to 
Congress identifying each of the following:
            (1) All existing designated transmission and 
        distribution corridors on Federal land and the status 
        of work related to proposed transmission and 
        distribution corridor designations under Title V of the 
        Federal Land Policy and Management Act (43 U.S.C. 1761 
        et. seq.), the schedule for completing such work, any 
        impediments to completing the work, and steps that 
        Congress could take to expedite the process.
            (2) The number of pending applications to locate 
        transmission and distribution facilities on Federal 
        lands, key information relating to each such facility, 
        how long each application has been pending, the 
        schedule for issuing a timely decision as to each 
        facility, and progress in incorporating existing and 
        new such rights-of-way into relevant land use and 
        resource management plans or their equivalent.
            (3) The number of existing transmission and 
        distribution rights-of-way on Federal lands that will 
        come up for renewal within the following 5-, 10-, and 
        15-year periods, and a description of how the 
        Secretaries plan to manage such renewals.

SEC. 1222. THIRD-PARTY FINANCE.

    (a) Existing Facilities.--The Secretary of Energy 
(hereinafter in this section referred to as the ``Secretary''), 
acting through the Administrator of the Western Area Power 
Administration (hereinafter in this section referred to as 
``WAPA''), or through the Administrator of the Southwestern 
Power Administration (hereinafter in this section referred to 
as ``SWPA''), or both, may design, develop, construct, operate, 
maintain, or own, or participate with other entities in 
designing, developing, constructing, operating, maintaining, or 
owning, an electric power transmission facility and related 
facilities (``Project'') needed to upgrade existing 
transmission facilities owned by SWPA or WAPA if the Secretary 
of Energy, in consultation with the applicable Administrator, 
determines that the proposed Project--
            (1)(A) is located in a national interest electric 
        transmission corridor designated under section 216(a) 
        of the Federal Power Act and will reduce congestion of 
        electric transmission in interstate commerce; or
            (B) is necessary to accommodate an actual or 
        projected increase in demand for electric transmission 
        capacity;
            (2) is consistent with--
                    (A) transmission needs identified, in a 
                transmission expansion plan or otherwise, by 
                the appropriate Regional Transmission 
                Organization or Independent System Operator (as 
                defined in the Federal Power Act), if any, or 
                approved regional reliability organization; and
                    (B) efficient and reliable operation of the 
                transmission grid; and
            (3) would be operated in conformance with prudent 
        utility practice.
    (b) New Facilities.--The Secretary, acting through WAPA or 
SWPA, or both, may design, develop, construct, operate, 
maintain, or own, or participate with other entities in 
designing, developing, constructing, operating, maintaining, or 
owning, a new electric power transmission facility and related 
facilities (``Project'') located within any State in which WAPA 
or SWPA operates if the Secretary, in consultation with the 
applicable Administrator, determines that the proposed 
Project--
            (1)(A) is located in an area designated under 
        section 216(a) of the Federal Power Act and will reduce 
        congestion of electric transmission in interstate 
        commerce; or
            (B) is necessary to accommodate an actual or 
        projected increase in demand for electric transmission 
        capacity;
            (2) is consistent with--
                    (A) transmission needs identified, in a 
                transmission expansion plan or otherwise, by 
                the appropriate Regional Transmission 
                Organization or Independent System Operator, if 
                any, or approved regional reliability 
                organization; and
                    (B) efficient and reliable operation of the 
                transmission grid;
            (3) will be operated in conformance with prudent 
        utility practice;
            (4) will be operated by, or in conformance with the 
        rules of, the appropriate (A) Regional Transmission 
        Organization or Independent System Operator, if any, or 
        (B) if such an organization does not exist, regional 
        reliability organization; and
            (5) will not duplicate the functions of existing 
        transmission facilities or proposed facilities which 
        are the subject of ongoing or approved siting and 
        related permitting proceedings.
    (c) Other Funds.--
            (1) In general.--In carrying out a Project under 
        subsection (a) or (b), the Secretary may accept and use 
        funds contributed by another entity for the purpose of 
        carrying out the Project.
            (2) Availability.--The contributed funds shall be 
        available for expenditure for the purpose of carrying 
        out the Project--
                    (A) without fiscal year limitation; and
                    (B) as if the funds had been appropriated 
                specifically for that Project.
            (3) Allocation of costs.--In carrying out a Project 
        under subsection (a) or (b), any costs of the Project 
        not paid for by contributions from another entity shall 
        be collected through rates charged to customers using 
        the new transmission capability provided by the Project 
        and allocated equitably among these project 
        beneficiaries using the new transmission capability.
    (d) Relationship to Other Laws.--Nothing in this section 
affects any requirement of--
            (1) any Federal environmental law, including the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.);
            (2) any Federal or State law relating to the siting 
        of energy facilities; or
            (3) any existing authorizing statutes.
    (e) Savings Clause.--Nothing in this section shall 
constrain or restrict an Administrator in the utilization of 
other authority delegated to the Administrator of WAPA or SWPA.
    (f) Secretarial Determinations.--Any determination made 
pursuant to subsections (a) or (b) shall be based on findings 
by the Secretary using the best available data.
    (g) Maximum Funding Amount.--The Secretary shall not accept 
and use more than $100,000,000 under subsection (c)(1) for the 
period encompassing fiscal years 2004 through 2013.

SEC. 1223. TRANSMISSION SYSTEM MONITORING.

    Within 6 months after the date of enactment of this Act, 
the Secretary of Energy and the Federal Energy Regulatory 
Commission shall study and report to Congress on the steps 
which must be taken to establish a system to make available to 
all transmission system owners and Regional Transmission 
Organizations (as defined in the Federal Power Act) within the 
Eastern and Western Interconnections real-time information on 
the functional status of all transmission lines within such 
Interconnections. In such study, the Commission shall assess 
technical means for implementing such transmission information 
system and identify the steps the Commission or Congress must 
take to require the implementation of such system.

SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES.

    (a) Authority.--The Federal Energy Regulatory Commission, 
in the exercise of its authorities under the Federal Power Act 
and the Public Utility Regulatory Policies Act of 1978, shall 
encourage the deployment of advanced transmission technologies.
    (b) Definition.--For the purposes of this section, the term 
``advanced transmission technologies'' means technologies that 
increase the capacity, efficiency, or reliability of existing 
or new transmission facilities, including, but not limited to--
            (1) high-temperature lines (including 
        superconducting cables);
            (2) underground cables;
            (3) advanced conductor technology (including 
        advanced composite conductors, high-temperature low-sag 
        conductors, and fiber optic temperature sensing 
        conductors);
            (4) high-capacity ceramic electric wire, 
        connectors, and insulators;
            (5) optimized transmission line configurations 
        (including multiple phased transmission lines);
            (6) modular equipment;
            (7) wireless power transmission;
            (8) ultra-high voltage lines;
            (9) high-voltage DC technology;
            (10) flexible AC transmission systems;
            (11) energy storage devices (including pumped 
        hydro, compressed air, superconducting magnetic energy 
        storage, flywheels, and batteries);
            (12) controllable load;
            (13) distributed generation (including PV, fuel 
        cells, microturbines);
            (14) enhanced power device monitoring;
            (15) direct system state sensors;
            (16) fiber optic technologies;
            (17) power electronics and related software 
        (including real time monitoring and analytical 
        software); and
            (18) any other technologies the Commission 
        considers appropriate.
    (c) Obsolete or Impracticable Technologies.--The Commission 
is authorized to cease encouraging the deployment of any 
technology described in this section on a finding that such 
technology has been rendered obsolete or otherwise 
impracticable to deploy.

SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

    (a) Electric Transmission and Distribution Program.--The 
Secretary of Energy (hereinafter in this section referred to as 
the ``Secretary'') acting through the Director of the Office of 
Electric Transmission and Distribution shall establish a 
comprehensive research, development, demonstration and 
commercial application program to promote improved reliability 
and efficiency of electrical transmission and distribution 
systems. This program shall include--
            (1) advanced energy delivery and storage 
        technologies, materials, and systems, including new 
        transmission technologies, such as flexible alternating 
        current transmission systems, composite conductor 
        materials and other technologies that enhance 
        reliability, operational flexibility, or power-carrying 
        capability;
            (2) advanced grid reliability and efficiency 
        technology development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid 
        components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of 
                electric transmission or distribution systems; 
                or
                    (B) increase the efficiency of electric 
                energy generation, transmission, distribution, 
                or storage systems;
            (7) integration of power systems, including systems 
        to deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) supply of electricity to the power grid by 
        small scale, distributed and residential-based power 
        generators;
            (9) the development and use of advanced grid 
        design, operation and planning tools;
            (10) any other infrastructure technologies, as 
        appropriate; and
            (11) technology transfer and education.
    (b) Program Plan.--Not later than 1 year after the date of 
the enactment of this legislation, the Secretary, in 
consultation with other appropriate Federal agencies, shall 
prepare and transmit to Congress a 5-year program plan to guide 
activities under this section. In preparing the program plan, 
the Secretary may consult with utilities, energy services 
providers, manufacturers, institutions of higher education, 
other appropriate State and local agencies, environmental 
organizations, professional and technical societies, and any 
other persons the Secretary considers appropriate.
    (c) Implementation.--The Secretary shall consider 
implementing this program using a consortium of industry, 
university and national laboratory participants.
    (d) Report.--Not later than 2 years after the transmittal 
of the plan under subsection (b), the Secretary shall transmit 
a report to Congress describing the progress made under this 
section and identifying any additional resources needed to 
continue the development and commercial application of 
transmission and distribution infrastructure technologies.
    (e) Power Delivery Research Initiative.--
            (1) In general.--The Secretary shall establish a 
        research, development, demonstration, and commercial 
        application initiative specifically focused on power 
        delivery utilizing components incorporating high 
        temperature superconductivity.
            (2) Goals.--The goals of this initiative shall be 
        to--
                    (A) establish facilities to develop high 
                temperature superconductivity power 
                applications in partnership with manufacturers 
                and utilities;
                    (B) provide technical leadership for 
                establishing reliability for high temperature 
                superconductivity power applications including 
                suitable modeling and analysis;
                    (C) facilitate commercial transition toward 
                direct current power transmission, storage, and 
                use for high power systems utilizing high 
                temperature superconductivity; and
                    (D) facilitate the integration of very low 
                impedance high temperature superconducting 
                wires and cables in existing electric networks 
                to improve system performance, power flow 
                control and reliability.
            (3) Requirements.--The initiative shall include--
                    (A) feasibility analysis, planning, 
                research, and design to construct 
                demonstrations of superconducting links in high 
                power, direct current and controllable 
                alternating current transmission systems;
                    (B) public-private partnerships to 
                demonstrate deployment of high temperature 
                superconducting cable into testbeds simulating 
                a realistic transmission grid and under varying 
                transmission conditions, including actual grid 
                insertions; and
                    (C) testbeds developed in cooperation with 
                national laboratories, industries, and 
                universities to demonstrate these technologies, 
                prepare the technologies for commercial 
                introduction, and address cost or performance 
                roadblocks to successful commercial use.
            (4) Authorization of appropriations.--For purposes 
        of carrying out this subsection, there are authorized 
        to be appropriated--
                    (A) for fiscal year 2004, $15,000,000;
                    (B) for fiscal year 2005, $20,000,000;
                    (C) for fiscal year 2006, $30,000,000;
                    (D) for fiscal year 2007, $35,000,000; and
                    (E) for fiscal year 2008, $40,000,000.

SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.

    (a) Program.--The Secretary of Energy is authorized to 
establish an Advanced Power System Technology Incentive Program 
to support the deployment of certain advanced power system 
technologies and to improve and protect certain critical 
governmental, industrial, and commercial processes. Funds 
provided under this section shall be used by the Secretary to 
make incentive payments to eligible owners or operators of 
advanced power system technologies to increase power generation 
through enhanced operational, economic, and environmental 
performance. Payments under this section may only be made upon 
receipt by the Secretary of an incentive payment application 
establishing an applicant as either--
            (1) a qualifying advanced power system technology 
        facility; or
            (2) a qualifying security and assured power 
        facility.
    (b) Incentives.--Subject to availability of funds, a 
payment of 1.8 cents per kilowatt-hour shall be paid to the 
owner or operator of a qualifying advanced power system 
technology facility under this section for electricity 
generated at such facility. An additional 0.7 cents per 
kilowatt-hour shall be paid to the owner or operator of a 
qualifying security and assured power facility for electricity 
generated at such facility. Any facility qualifying under this 
section shall be eligible for an incentive payment for up to, 
but not more than, the first 10,000,000 kilowatt-hours produced 
in any fiscal year.
    (c) Eligibility.--For purposes of this section:
            (1) Qualifying advanced power system technology 
        facility.--The term ``qualifying advanced power system 
        technology facility'' means a facility using an 
        advanced fuel cell, turbine, or hybrid power system or 
        power storage system to generate or store electric 
        energy.
            (2) Qualifying security and assured power 
        facility.--The term ``qualifying security and assured 
        power facility'' means a qualifying advanced power 
        system technology facility determined by the Secretary 
        of Energy, in consultation with the Secretary of 
        Homeland Security, to be in critical need of secure, 
        reliable, rapidly available, high-quality power for 
        critical governmental, industrial, or commercial 
        applications.
    (d) Authorization.--There are authorized to be appropriated 
to the Secretary of Energy for the purposes of this section, 
$10,000,000 for each of the fiscal years 2004 through 2010.

SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

    (a) Creation of an Office of Electric Transmission and 
Distribution.--Title II of the Department of Energy 
Organization Act (42 U.S.C. 7131 et seq.) (as amended by 
section 502(a) of this Act) is amended by inserting the 
following after section 217, as added by title V of this Act:

``SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

    ``(a) Establishment.--There is established within the 
Department an Office of Electric Transmission and Distribution. 
This Office shall be headed by a Director, subject to the 
authority of the Secretary. The Director shall be appointed by 
the Secretary. The Director shall be compensated at the annual 
rate prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code.
    ``(b) Director.--The Director shall--
            ``(1) coordinate and develop a comprehensive, 
        multi-year strategy to improve the Nation's electricity 
        transmission and distribution;
            ``(2) implement or, where appropriate, coordinate 
        the implementation of, the recommendations made in the 
        Secretary's May 2002 National Transmission Grid Study;
            ``(3) oversee research, development, and 
        demonstration to support Federal energy policy related 
        to electricity transmission and distribution;
            ``(4) grant authorizations for electricity import 
        and export pursuant to section 202(c), (d), (e), and 
        (f) of the Federal Power Act (16 U.S.C. 824a);
            ``(5) perform other functions, assigned by the 
        Secretary, related to electricity transmission and 
        distribution; and
            ``(6) develop programs for workforce training in 
        power and transmission engineering.''.
    (b) Conforming Amendments.--(1) The table of contents of 
the Department of Energy Organization Act (42 U.S.C. 7101 note) 
is amended by inserting after the item relating to section 217 
the following new item:

``Sec. 218. Office of Electric Transmission and Distribution.''.

    (2) Section 5315 of title 5, United States Code, is amended 
by inserting after the item relating to ``Inspector General, 
Department of Energy.'' the following:
            ``Director, Office of Electric Transmission and 
        Distribution, Department of Energy.''.

            Subtitle C--Transmission Operation Improvements

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 
amended by inserting after section 211 the following new 
section:

``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES.

    ``(a) Transmission Services.--Subject to section 212(h), 
the Commission may, by rule or order, require an unregulated 
transmitting utility to provide transmission services--
            ``(1) at rates that are comparable to those that 
        the unregulated transmitting utility charges itself; 
        and
            ``(2) on terms and conditions (not relating to 
        rates) that are comparable to those under which such 
        unregulated transmitting utility provides transmission 
        services to itself and that are not unduly 
        discriminatory or preferential.
    ``(b) Exemption.--The Commission shall exempt from any rule 
or order under this section any unregulated transmitting 
utility that--
            ``(1) sells no more than 4,000,000 megawatt hours 
        of electricity per year; or
            ``(2) does not own or operate any transmission 
        facilities that are necessary for operating an 
        interconnected transmission system (or any portion 
        thereof); or
            ``(3) meets other criteria the Commission 
        determines to be in the public interest.
    ``(c) Local Distribution Facilities.--The requirements of 
subsection (a) shall not apply to facilities used in local 
distribution.
    ``(d) Exemption Termination.--Whenever the Commission, 
after an evidentiary hearing held upon a complaint and after 
giving consideration to reliability standards established under 
section 215, finds on the basis of a preponderance of the 
evidence that any exemption granted pursuant to subsection (b) 
unreasonably impairs the continued reliability of an 
interconnected transmission system, it shall revoke the 
exemption granted to that transmitting utility.
    ``(e) Application to Unregulated Transmitting Utilities.--
The rate changing procedures applicable to public utilities 
under subsections (c) and (d) of section 205 are applicable to 
unregulated transmitting utilities for purposes of this 
section.
    ``(f) Remand.--In exercising its authority under paragraph 
(1) of subsection (a), the Commission may remand transmission 
rates to an unregulated transmitting utility for review and 
revision where necessary to meet the requirements of subsection 
(a).
    ``(g) Other Requests.--The provision of transmission 
services under subsection (a) does not preclude a request for 
transmission services under section 211.
    ``(h) Limitation.--The Commission may not require a State 
or municipality to take action under this section that would 
violate a private activity bond rule for purposes of section 
141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
    ``(i) Transfer of Control of Transmitting Facilities.--
Nothing in this section authorizes the Commission to require an 
unregulated transmitting utility to transfer control or 
operational control of its transmitting facilities to an RTO or 
any other Commission-approved independent transmission 
organization designated to provide nondiscriminatory 
transmission access.
    ``(j) Definition.--For purposes of this section, the term 
`unregulated transmitting utility' means an entity that--
            ``(1) owns or operates facilities used for the 
        transmission of electric energy in interstate commerce; 
        and
            ``(2) is an entity described in section 201(f).''.

SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANSMISSION ORGANIZATIONS.

    It is the sense of Congress that, in order to promote fair, 
open access to electric transmission service, benefit retail 
consumers, facilitate wholesale competition, improve 
efficiencies in transmission grid management, promote grid 
reliability, remove opportunities for unduly discriminatory or 
preferential transmission practices, and provide for the 
efficient development of transmission infrastructure needed to 
meet the growing demands of competitive wholesale power 
markets, all transmitting utilities in interstate commerce 
should voluntarily become members of Regional Transmission 
Organizations as defined in section 3 of the Federal Power Act.

SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION APPLICATIONS PROGRESS 
                    REPORT.

    Not later than 120 days after the date of enactment of this 
section, the Federal Energy Regulatory Commission shall submit 
to Congress a report containing each of the following:
            (1) A list of all regional transmission 
        organization applications filed at the Commission 
        pursuant to subpart F of part 35 of title 18, Code of 
        Federal Regulations (in this section referred to as 
        ``Order No. 2000''), including an identification of 
        each public utility and other entity included within 
        the proposed membership of the regional transmission 
        organization.
            (2) A brief description of the status of each 
        pending regional transmission organization application, 
        including a precise explanation of how each fails to 
        comply with the minimal requirements of Order No. 2000 
        and what steps need to be taken to bring each 
        application into such compliance.
            (3) For any application that has not been finally 
        approved by the Commission, a detailed description of 
        every aspect of the application that the Commission has 
        determined does not conform to the requirements of 
        Order No. 2000.
            (4) For any application that has not been finally 
        approved by the Commission, an explanation by the 
        Commission of why the items described pursuant to 
        paragraph (3) constitute material noncompliance with 
        the requirements of the Commission's Order No. 2000 
        sufficient to justify denial of approval by the 
        Commission.
            (5) For all regional transmission organization 
        applications filed pursuant to the Commission's Order 
        No. 2000, whether finally approved or not--
                    (A) a discussion of that regional 
                transmission organization's efforts to minimize 
                rate seams between itself and--
                            (i) other regional transmission 
                        organizations; and
                            (ii) entities not participating in 
                        a regional transmission organization;
                    (B) a discussion of the impact of such 
                seams on consumers and wholesale competition; 
                and
                    (C) a discussion of minimizing cost-
                shifting on consumers.

SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION 
                    ORGANIZATIONS.

    (a) Definitions.--For purposes of this section--
            (1) Appropriate federal regulatory authority.--The 
        term ``appropriate Federal regulatory authority'' 
        means--
                    (A) with respect to a Federal power 
                marketing agency (as defined in the Federal 
                Power Act), the Secretary of Energy, except 
                that the Secretary may designate the 
                Administrator of a Federal power marketing 
                agency to act as the appropriate Federal 
                regulatory authority with respect to the 
                transmission system of that Federal power 
                marketing agency; and
                    (B) with respect to the Tennessee Valley 
                Authority, the Board of Directors of the 
                Tennessee Valley Authority.
            (2) Federal utility.--The term ``Federal utility'' 
        means a Federal power marketing agency or the Tennessee 
        Valley Authority.
            (3) Transmission system.--The term ``transmission 
        system'' means electric transmission facilities owned, 
        leased, or contracted for by the United States and 
        operated by a Federal utility.
    (b) Transfer.--The appropriate Federal regulatory authority 
is authorized to enter into a contract, agreement or other 
arrangement transferring control and use of all or part of the 
Federal utility's transmission system to an RTO or ISO (as 
defined in the Federal Power Act), approved by the Federal 
Energy Regulatory Commission. Such contract, agreement or 
arrangement shall include--
            (1) performance standards for operation and use of 
        the transmission system that the head of the Federal 
        utility determines necessary or appropriate, including 
        standards that assure recovery of all the Federal 
        utility's costs and expenses related to the 
        transmission facilities that are the subject of the 
        contract, agreement or other arrangement; consistency 
        with existing contracts and third-party financing 
        arrangements; and consistency with said Federal 
        utility's statutory authorities, obligations, and 
        limitations;
            (2) provisions for monitoring and oversight by the 
        Federal utility of the RTO's or ISO's fulfillment of 
        the terms and conditions of the contract, agreement or 
        other arrangement, including a provision for the 
        resolution of disputes through arbitration or other 
        means with the regional transmission organization or 
        with other participants, notwithstanding the 
        obligations and limitations of any other law regarding 
        arbitration; and
            (3) a provision that allows the Federal utility to 
        withdraw from the RTO or ISO and terminate the 
        contract, agreement or other arrangement in accordance 
        with its terms.
Neither this section, actions taken pursuant to it, nor any 
other transaction of a Federal utility using an RTO or ISO 
shall confer upon the Federal Energy Regulatory Commission 
jurisdiction or authority over the Federal utility's electric 
generation assets, electric capacity or energy that the Federal 
utility is authorized by law to market, or the Federal 
utility's power sales activities.
    (c) Existing Statutory and Other Obligations.--
            (1) System operation requirements.--No statutory 
        provision requiring or authorizing a Federal utility 
totransmit electric power or to construct, operate or maintain its 
transmission system shall be construed to prohibit a transfer of 
control and use of its transmission system pursuant to, and subject to 
all requirements of subsection (b).
            (2) Other obligations.--This subsection shall not 
        be construed to--
                    (A) suspend, or exempt any Federal utility 
                from, any provision of existing Federal law, 
                including but not limited to any requirement or 
                direction relating to the use of the Federal 
                utility's transmission system, environmental 
                protection, fish and wildlife protection, flood 
                control, navigation, water delivery, or 
                recreation; or
                    (B) authorize abrogation of any contract or 
                treaty obligation.
            (3) Repeal.--Section 311 of title III of Appendix B 
        of the Act of October 27, 2000 (P.L. 106-377, section 
        1(a)(2); 114 Stat. 1441, 1441A-80; 16 U.S.C. 824n) is 
        repealed.

SEC. 1235. STANDARD MARKET DESIGN.

    (a) Remand.--The Commission's proposed rulemaking entitled 
``Remedying Undue Discrimination through Open Access 
Transmission Service and Standard Electricity Market Design'' 
(Docket No. RM01-12-000) (``SMD NOPR'') is remanded to the 
Commission for reconsideration. No final rule mandating a 
standard electricity market design pursuant to the proposed 
rulemaking, including any rule or order of general 
applicability within the scope of the proposed rulemaking, may 
be issued before October 31, 2006, or take effect before 
December 31, 2006. Any final rule issued by the Commission 
pursuant to the proposed rulemaking shall be preceded by a 
second notice of proposed rulemaking issued after the date of 
enactment of this Act and an opportunity for public comment.
    (b) Savings Clause.--This section shall not be construed to 
modify or diminish any authority or obligation the Commission 
has under this Act, the Federal Power Act, or other applicable 
law, including, but not limited to, any authority to--
            (1) issue any rule or order (of general or 
        particular applicability) pursuant to any such 
        authority or obligation; or
            (2) act on a filing or filings by 1 or more 
        transmitting utilities for the voluntary formation of a 
        Regional Transmission Organization or Independent 
        System Operator (as defined in the Federal Power Act) 
        (and related market structures or rules) or voluntary 
        modification of an existing Regional Transmission 
        Organization or Independent System Operator (and 
        related market structures or rules).

SEC. 1236. NATIVE LOAD SERVICE OBLIGATION.

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

``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.

    ``(a) Meeting Service Obligations.--(1) Any load-serving 
entity that, as of the date of enactment of this section--
            ``(A) owns generation facilities, markets the 
        output of Federal generation facilities, or holds 
        rights under 1 or more wholesale contracts to purchase 
        electric energy, for the purpose of meeting a service 
        obligation, and
            ``(B) by reason of ownership of transmission 
        facilities, or 1 or more contracts or service 
        agreements for firm transmission service, holds firm 
        transmission rights for delivery of the output of such 
        generation facilities or such purchased energy to meet 
        such service obligation,
is entitled to use such firm transmission rights, or, 
equivalent tradable or financial transmission rights, in order 
to deliver such output or purchased energy, or the output of 
other generating facilities or purchased energy to the extent 
deliverable using such rights, to the extent required to meet 
its service obligation.
    ``(2) To the extent that all or a portion of the service 
obligation covered by such firm transmission rights or 
equivalent tradable or financial transmission rights is 
transferred to another load-serving entity, the successor load-
serving entity shall be entitled to use the firm transmission 
rights or equivalent tradable or financial transmission rights 
associated with the transferred service obligation. Subsequent 
transfers to another load-serving entity, or back to the 
original load-serving entity, shall be entitled to the same 
rights.
    ``(3) The Commission shall exercise its authority under 
this Act in a manner that facilitates the planning and 
expansion of transmission facilities to meet the reasonable 
needs of load-serving entities to satisfy their service 
obligations.
    ``(b) Allocation of Transmission Rights.--Nothing in this 
section shall affect any methodology approved by the Commission 
prior to September 15, 2003, for the allocation of transmission 
rights by an RTO or ISO that has been authorized by the 
Commission to allocate transmission rights.
    ``(c) Certain Transmission Rights.--The Commission may 
exercise authority under this Act to make transmission rights 
not used to meet an obligation covered by subsection (a) 
available to other entities in a manner determined by the 
Commission to be just, reasonable, and not unduly 
discriminatory or preferential.
    ``(d) Obligation To Build.--Nothing in this Act shall 
relieve a load-serving entity from any obligation under State 
or local law to build transmission or distribution facilities 
adequate to meet its service obligations.
    ``(e) Contracts.--Nothing in this section shall provide a 
basis for abrogating any contract or service agreement for firm 
transmission service or rights in effect as of the date of the 
enactment of this subsection.
    ``(f) Water Pumping Facilities.--The Commission shall 
ensure that any entity described in section 201(f) that owns 
transmission facilities used predominately to support its own 
water pumping facilities shall have, with respect to such 
facilities, protections for transmission service comparable to 
those provided to load-serving entities pursuant to this 
section.
    ``(g) ERCOT.--This section shall not apply within the area 
referred to in section 212(k)(2)(A).
    ``(h) Jurisdiction.--This section does not authorize the 
Commission to take any action not otherwise within its 
jurisdiction.
    ``(i) Effect of Exercising Rights.--An entity that lawfully 
exercises rights granted under subsection (a) shall not be 
considered by such action as engaging in undue discrimination 
or preference under this Act.
    ``(j) TVA Area.--For purposes of subsection (a)(1)(B), a 
load-serving entity that is located within the service area of 
the Tennessee Valley Authority and that has a firm wholesale 
power supply contract with the Tennessee Valley Authority shall 
be deemed to hold firm transmission rights for the transmission 
of such power.
    ``(k) Definitions.--For purposes of this section:
            ``(1) The term `distribution utility' means an 
        electric utility that has a service obligation to end-
        users or to a State utility or electric cooperative 
        that, directly or indirectly, through 1 or more 
        additional State utilities or electric cooperatives, 
        provides electric service to end-users.
            ``(2) The term `load-serving entity' means a 
        distribution utility or an electric utility that has a 
        service obligation.
            ``(3) The term `service obligation' means a 
        requirement applicable to, or the exercise of authority 
        granted to, an electric utility under Federal, State or 
        local law or under long-term contracts to provide 
        electric service to end-users or to a distribution 
        utility.
            ``(4) The term `State utility' means a State or any 
        political subdivision of a State, or any agency, 
        authority, or instrumentality of any 1 or more of the 
        foregoing, or a corporation which is wholly owned, 
        directly or indirectly, by any 1 or more of the 
        foregoing, competent to carry on the business of 
        developing, transmitting, utilizing or distributing 
        power.''.

SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary of Energy, in coordination and 
consultation with the States, shall conduct a study on--
            (1) the procedures currently used by electric 
        utilities to perform economic dispatch;
            (2) identifying possible revisions to those 
        procedures to improve the ability of nonutility 
        generation resources to offer their output for sale for 
        the purpose of inclusion in economic dispatch; and
            (3) the potential benefits to residential, 
        commercial, and industrial electricity consumers 
        nationally and in each State if economic dispatch 
        procedures were revised to improve the ability of 
        nonutility generation resources to offer their output 
        for inclusion in economic dispatch.
    (b) Definition.--The term ``economic dispatch'' when used 
in this section means the operation of generation facilities to 
produce energy at the lowest cost to reliably serve consumers, 
recognizing any operational limits of generation and 
transmission facilities.
    (c) Report to Congress and the States.--Not later than 90 
days after the date of enactment of this Act, and on a yearly 
basis following, the Secretary of Energy shall submit a report 
to Congress and the States on the results of the study 
conducted under subsection (a), including recommendations to 
Congress and the States for any suggested legislative or 
regulatory changes.

                  Subtitle D--Transmission Rate Reform

SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.

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

``SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT.

    ``(a) Rulemaking Requirement.--Within 1 year after the 
enactment of this section, the Commission shall establish, by 
rule, incentive-based (including, but not limited to 
performance-based) rate treatments for the transmission of 
electric energy in interstate commerce by public utilities for 
the purpose of benefiting consumers by ensuring reliability and 
reducing the cost of delivered power by reducing transmission 
congestion. Such rule shall--
            ``(1) promote reliable and economically efficient 
        transmission and generation of electricity by promoting 
        capital investment in the enlargement, improvement, 
        maintenance and operation of facilities for the 
        transmission of electric energy in interstate commerce;
            ``(2) provide a return on equity that attracts new 
        investment in transmission facilities (including 
        related transmission technologies);
            ``(3) encourage deployment of transmission 
        technologies and other measures to increase the 
        capacity and efficiency of existing transmission 
        facilities and improve the operation of such 
        facilities; and
            ``(4) allow recovery of all prudently incurred 
        costs necessary to comply with mandatory reliability 
        standards issued pursuant to section 215 of this Act.
The Commission may, from time to time, revise such rule.
    ``(b) Additional Incentives for RTO Participation.--In the 
rule issued under this section, the Commission shall, to the 
extent within its jurisdiction, provide for incentives to each 
transmitting utility or electric utility that joins a Regional 
Transmission Organization or Independent System Operator. 
Incentives provided by the Commission pursuant to such rule 
shall include--
            ``(1) recovery of all prudently incurred costs to 
        develop and participate in any proposed or approved 
        RTO, ISO, or independent transmission company;
            ``(2) recovery of all costs previously approved by 
        a State commission which exercised jurisdiction over 
        the transmission facilities prior to the utility's 
        participation in the RTO or ISO, including costs 
        necessary to honor preexisting transmission service 
        contracts, in a manner which does not reduce the 
        revenues the utility receives for transmission services 
        for a reasonable transition period after the utility 
        joins the RTO or ISO;
            ``(3) recovery as an expense in rates of the costs 
        prudently incurred to conduct transmission planning and 
        reliability activities, including the costs of 
        participating in RTO, ISO and other regional planning 
        activities and design, study and other precertification 
        costs involved in seeking permits and approvals for 
        proposed transmission facilities;
            ``(4) a current return in rates for construction 
        work in progress for transmission facilities and full 
        recovery of prudently incurred costs for constructing 
        transmission facilities;
            ``(5) formula transmission rates; and
            ``(6) a maximum 15-year accelerated depreciation on 
        new transmission facilities for rate treatment 
        purposes.
The Commission shall ensure that any costs recoverable pursuant 
to this subsection may be recovered by such utility through the 
transmission rates charged by such utility or through the 
transmission rates charged by the RTO or ISO that provides 
transmission service to such utility.
    ``(c) Just and Reasonable Rates.--All rates approved under 
the rules adopted pursuant to this section, including any 
revisions to such rules, are subject to the requirement of 
sections 205 and 206 that all rates, charges, terms, and 
conditions be just and reasonable and not unduly discriminatory 
or preferential.''.

SEC. 1242. VOLUNTARY TRANSMISSION PRICING PLANS.

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

``SEC. 219. VOLUNTARY TRANSMISSION PRICING PLANS.

    ``(a) In General.--Any transmission provider, including an 
RTO or ISO, may submit to the Commission a plan or plans under 
section 205 containing the criteria for determining the person 
or persons that will be required to pay for any construction of 
new transmission facilities or expansion, modification or 
upgrade of transmission facilities (in this section referred to 
as `transmission service related expansion') or new generator 
interconnection.
    ``(b) Voluntary Transmission Pricing Plans.--(1) Any plan 
or plans submitted under subsection (a) shall specify the 
method or methods by which costs may be allocated or assigned. 
Such methods may include, but are not limited to:
            ``(A) directly assigned;
            ``(B) participant funded; or
            ``(C) rolled into regional or sub-regional rates.-
    ``(2) FERC shall approve a plan or plans submitted under 
subparagraph (B) of paragraph (1) if such plan or plans--
            ``(A) result in rates that are just and reasonable 
        and not unduly discriminatory or preferential 
        consistent with section 205; and
            ``(B) ensure that the costs of any transmission 
        service related expansion or new generator 
        interconnection not required to meet applicable 
        reliability standards established under section 215 are 
        assigned in a fair manner, meaning that those who 
        benefit from the transmission service related expansion 
        or new generator interconnection pay an appropriate 
        share of the associated costs, provided that--
                    ``(i) costs may not be assigned or 
                allocated to an electric utility if the native 
                load customers of that utility would not have 
                required such transmission service related 
                expansion or new generator interconnection 
                absent the request for transmission service 
                related expansion or new generator 
                interconnection that necessitated the 
                investment;
                    ``(ii) the party requesting such 
                transmission service related expansion or new 
                generator interconnection shall not be required 
                to pay for both--
                            ``(I) the assigned cost of the 
                        upgrade; and
                            ``(II) the difference between--
                                    ``(aa) the embedded cost 
                                paid for transmission services 
                                (including the cost of the 
                                requested upgrade); and
                                    ``(bb) the embedded cost 
                                that would have been paid 
                                absent the upgrade; and
                    ``(iii) the party or parties who pay for 
                facilities necessary for the transmission 
                service related expansion or new generator 
                interconnection receives full compensation for 
                its costs for the participant funded facilities 
                in the form of--
                            ``(I) monetary credit equal to the 
                        cost of the participant funded 
                        facilities (accounting for the time 
                        value of money at the Gross Domestic 
                        Product deflator), which credit shall 
                        be pro-rated in equal installments over 
                        a period of not more than 30 years and 
                        shall not exceed in total the amount of 
                        the initial investment, against the 
                        transmission charges that the funding 
                        entity or its assignee is otherwise 
                        assessed by the transmission provider;
                            ``(II) appropriate financial or 
                        physical rights; or
                            ``(III) any other method of cost 
                        recovery or compensation approved by 
                        the Commission.
    ``(3) A plan submitted under this section shall apply only 
to--
            ``(A) a contract or interconnection agreement 
        executed or filed with the Commission after the date of 
        enactment of this section; or
            ``(B) an interconnection agreement pending 
        rehearing as of November 1, 2003.
    ``(4) Nothing in this section diminishes or alters the 
rights of individual members of an RTO or ISO under this Act.
    ``(5) Nothing in this section shall affect the allocation 
of costs or the cost methodology employed by an RTO or ISO 
authorized by the Commission to allocate costs (including costs 
for transmission service related expansion or new generator 
interconnection) prior to the date of enactment of this 
section.
    ``(6) This section shall not apply within the area referred 
to in section 212(k)(2)(A).
    ``(7) The term `transmission provider' means a public 
utility that owns or operates facilities that provide 
interconnection or transmission service in interstate 
commerce.''.

                    Subtitle E--Amendments to PURPA

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

    (a) Adoption of Standards.--Section 111(d) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 
amended by adding at the end the following:
            ``(11) Net metering.--Each electric utility shall 
        make available upon request net metering service to any 
        electric consumer that the electric utility serves. For 
        purposes of this paragraph, the term `net metering 
        service' means service to an electric consumer under 
        which electric energy generated by that electric 
        consumer from an eligible on-site generating facility 
        and delivered to the local distribution facilities may 
        be used to offset electric energy provided by the 
        electric utility to the electric consumer during the 
        applicable billing period.
            ``(12) Fuel sources.--Each electric utility shall 
        develop a plan to minimize dependence on 1 fuel source 
        and to ensure that the electric energy it sells to 
        consumers is generated using a diverse range of fuels 
        and technologies, including renewable technologies.
            ``(13) Fossil fuel generation efficiency.--Each 
        electric utility shall develop and implement a 10-year 
        plan to increase the efficiency of its fossil fuel 
        generation.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2622(b)) is amended by adding at the end the following:
    ``(3)(A) Not later than 2 years after the enactment of this 
paragraph, each State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) 
and each nonregulated electric utility shall commence the 
consideration referred to in section 111, or set a hearing date 
for such consideration, with respect to each standard 
established by paragraphs (11) through (13) of section 111(d).
    ``(B) Not later than 3 years after the date of the 
enactment of this paragraph, each State regulatory authority 
(with respect to each electric utility for which it has 
ratemaking authority), and each nonregulated electric utility, 
shall complete the consideration, and shall make the 
determination, referred to in section 111 with respect to each 
standard established by paragraphs (11) through (13) of section 
111(d).''.
            (2) Failure to comply.--Section 112(c) of the 
        Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2622(c)) is amended by adding at the end the 
        following:

``In the case of each standard established by paragraphs (11) 
through (13) of section 111(d), the reference contained in this 
subsection to the date of enactment of this Act shall be deemed 
to be a reference to the date of enactment of such paragraphs 
(11) through (13).''.
            (3) Prior state actions.--
                    (A) In general.--Section 112 of the Public 
                Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2622) is amended by adding at the end 
                the following:
    ``(d) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standards established by 
paragraphs (11) through (13) of section 111(d) in the case of 
any electric utility in a State if, before the enactment of 
this subsection--
            ``(1) the State has implemented for such utility 
        the standard concerned (or a comparable standard);
            ``(2) the State regulatory authority for such State 
        or relevant nonregulated electric utility has conducted 
        a proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility; 
        or
            ``(3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility.''.
                    (B) Cross reference.--Section 124 of such 
                Act (16 U.S.C. 2634) is amended by adding the 
                following at the end thereof: ``In the case of 
                each standard established by paragraphs (11) 
                through (13) of section 111(d), the reference 
                contained in this subsection to the date of 
                enactment of this Act shall be deemed to be a 
                reference to the date of enactment of such 
                paragraphs (11) through (13).''.

SEC. 1252. SMART METERING.

    (a) In General.--Section 111(d) of the Public Utilities 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 
by adding at the end the following:
            ``(14) Time-based metering and communications.--
                    ``(A) Not later than 18 months after the 
                date of enactment of this paragraph, each 
                electric utility shall offer each of its 
                customer classes, and provide individual 
                customers upon customer request, a time-based 
                rate schedule under which the rate charged by 
                the electric utility varies during different 
                time periods and reflects the variance, if any, 
                in the utility's costs of generating and 
                purchasing electricity at the wholesale level. 
                The time-based rate schedule shall enable the 
                electric consumer to manage energy use and cost 
                through advanced metering and communications 
                technology.
                    ``(B) The types of time-based rate 
                schedules that may be offered under the 
                schedule referred to in subparagraph (A) 
                include, among others--
                            ``(i) time-of-use pricing whereby 
                        electricity prices are set for a 
                        specific time period on an advance or 
                        forward basis, typically not changing 
                        more often than twice a year, based on 
                        the utility's cost of generating and/or 
                        purchasing such electricity at the 
                        wholesale level for the benefit of the 
                        consumer. Prices paid for energy 
                        consumed during these periods shall be 
                        pre-established and known to consumers 
                        in advance of such consumption, 
                        allowing them to vary their demand and 
                        usage in response to such prices and 
                        manage their energy costs by shifting 
                        usage to a lower cost period or 
                        reducing their consumption overall;
                            ``(ii) critical peak pricing 
                        whereby time-of-use prices are in 
                        effect except for certain peak days, 
                        when prices may reflect the costs of 
                        generating and/or purchasing 
                        electricity at the wholesale level and 
                        when consumers may receive additional 
                        discounts for reducing peak period 
                        energy consumption; and
                            ``(iii) real-time pricing whereby 
                        electricity prices are set for a 
                        specific time period on an advanced or 
                        forward basis, reflecting the utility's 
                        cost of generating and/or purchasing 
                        electricity at the wholesale level, and 
                        may change as often as hourly.
                    ``(C) Each electric utility subject to 
                subparagraph (A) shall provide each customer 
                requesting a time-based rate with a time-based 
                meter capable of enabling the utility and 
                customer to offer and receive such rate, 
                respectively.
                    ``(D) For purposes of implementing this 
                paragraph, any reference contained in this 
                section to the date of enactment of the Public 
                Utility Regulatory Policies Act of 1978 shall 
                be deemed to be a reference to the date of 
                enactment of this paragraph.
                    ``(E) In a State that permits third-party 
                marketers to sell electric energy to retail 
                electric consumers, such consumers shall be 
                entitled to receive the same time-based 
                metering and communications device and service 
                as a retail electric consumer of the electric 
                utility.
                    ``(F) Notwithstanding subsections (b) and 
                (c) of section 112, each State regulatory 
                authority shall, not later than 18 months after 
                the date of enactment of this paragraph conduct 
                an investigation in accordance with section 
                115(i) and issue a decision whether it is 
                appropriate to implement the standards set out 
                in subparagraphs (A) and (C).''.
    (b) State Investigation of Demand Response and Time-Based 
Metering.--Section 115 of the Public Utilities Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
            (1) By inserting in subsection (b) after the phrase 
        ``the standard for time-of-day rates established by 
        section 111(d)(3)'' the following: ``and the standard 
        for time-based metering and communications established 
        by section 111(d)(14)''.
            (2) By inserting in subsection (b) after the phrase 
        ``are likely to exceed the metering'' the following: 
        ``and communications''.
            (3) By adding the at the end the following:
    ``(i) Time-based metering and communications.--In making a 
determination with respect to the standard established by 
section 111(d)(14), the investigation requirement of section 
111(d)(14)(F) shall be as follows: Each State regulatory 
authority shall conduct an investigation and issue a decision 
whether or not it is appropriate for electric utilities to 
provide and install time-based meters and communications 
devices for each of their customers which enable such customers 
to participate in time-based pricing rate schedules and other 
demand response programs.''.
    (c) Federal Assistance on Demand Response.--Section 132(a) 
of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2642(a)) is amended by striking ``and'' at the end of 
paragraph (3), striking the period at the end of paragraph (4) 
and inserting ``; and'', and by adding the following at the end 
thereof:
            ``(5) technologies, techniques, and rate-making 
        methods related to advanced metering and communications 
        and the use of these technologies, techniques and 
        methods in demand response programs.''.
    (d) Federal Guidance.--Section 132 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended by 
adding the following at the end thereof:
    ``(d) Demand response.--The Secretary shall be responsible 
for--
            ``(1) educating consumers on the availability, 
        advantages, and benefits of advanced metering and 
        communications technologies, including the funding of 
        demonstration or pilot projects;
            ``(2) working with States, utilities, other energy 
        providers and advanced metering and communications 
        experts to identify and address barriers to the 
        adoption of demand response programs; and
            ``(3) not later than 180 days after the date of 
        enactment of the Energy Policy Act of 2003, providing 
        Congress with a report that identifies and quantifies 
        the national benefits of demand response and makes a 
        recommendation on achieving specific levels of such 
        benefits by January 1, 2005.''.
    (e) Demand Response and Regional Coordination.--
            (1) In general.--It is the policy of the United 
        States to encourage States to coordinate, on a regional 
        basis, State energy policies to provide reliable and 
        affordable demand response services to the public.
            (2) Technical assistance.--The Secretary of Energy 
        shall provide technical assistance to States and 
        regional organizations formed by 2 or more States to 
        assist them in--
                    (A) identifying the areas with the greatest 
                demand response potential;
                    (B) identifying and resolving problems in 
                transmission and distribution networks, 
                including through the use of demand response;
                    (C) developing plans and programs to use 
                demand response to respond to peak demand or 
                emergency needs; and
                    (D) identifying specific measures consumers 
                can take to participate in these demand 
                response programs.
            (3) Report.--Not later than 1 year after the date 
        of enactment of the Energy Policy Act of 2003, the 
        Commission shall prepare and publish an annual report, 
        by appropriate region, that assesses demand response 
        resources, including those available from all consumer 
        classes, and which identifies and reviews--
                    (A) saturation and penetration rate of 
                advanced meters and communications 
                technologies, devices and systems;
                    (B) existing demand response programs and 
                time-based rate programs;
                    (C) the annual resource contribution of 
                demand resources;
                    (D) the potential for demand response as a 
                quantifiable, reliable resource for regional 
                planning purposes; and
                    (E) steps taken to ensure that, in regional 
                transmission planning and operations, demand 
                resources are provided equitable treatment as a 
                quantifiable, reliable resource relative to the 
                resource obligations of any load-serving 
                entity, transmission provider, or transmitting 
                party.
    (f) Federal Encouragement of Demand Response Devices.--It 
is the policy of the United States that time-based pricing and 
other forms of demand response, whereby electricity customers 
are provided with electricity price signals and the ability to 
benefit by responding to them, shall be encouraged, and the 
deployment of such technology and devices that enable 
electricity customers to participate in such pricing and demand 
response systems shall be facilitated. It is further the policy 
of the United States that the benefits of such demand response 
that accrue to those not deploying such technology and devices, 
but who are part of the same regional electricity entity, shall 
be recognized.
    (g) Time Limitations.--Section 112(b) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
by adding at the end the following:
            ``(4)(A) Not later than 1 year after the enactment 
        of this paragraph, each State regulatory authority 
        (with respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated electric 
        utility shall commence the consideration referred to in 
        section 111, or set a hearing date for such 
        consideration, with respect to the standard established 
        by paragraph (14) of section 111(d).
            ``(B) Not later than 2 years after the date of the 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority), and each 
        nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to the standard 
        established by paragraph (14) of section 111(d).''.
    (h) Failure To Comply.--Section 112(c) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
amended by adding at the end the following:

``In the case of the standard established by paragraph (14) of 
section 111(d), the reference contained in this subsection to 
the date of enactment of this Act shall be deemed to be a 
reference to the date of enactment of such paragraph (14).''.
    (i) Prior State Actions Regarding Smart Metering 
Standards.--
            (1) In general.--Section 112 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622) is 
        amended by adding at the end the following:
    ``(e) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (14) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
            ``(1) the State has implemented for such utility 
        the standard concerned (or a comparable standard);
            ``(2) the State regulatory authority for such State 
        or relevant nonregulated electric utility has conducted 
        a proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility 
        within the previous 3 years; or
            ``(3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility within the previous 3 
        years.''.
            (2) Cross reference.--Section 124 of such Act (16 
        U.S.C. 2634) is amended by adding the following at the 
        end thereof: ``In the case of the standard established 
        by paragraph (14) of section 111(d), the reference 
        contained in this subsection to the date of enactment 
        of this Act shall be deemed to be a reference to the 
        date of enactment of such paragraph (14).''.

SEC. 1253. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE 
                    REQUIREMENTS.

    (a) Termination of Mandatory Purchase and Sale 
Requirements.--Section 210 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding at 
the end the following:
    ``(m) Termination of Mandatory Purchase and Sale 
Requirements.--
            ``(1) Obligation to purchase.--After the date of 
        enactment of this subsection, no electric utility shall 
        be required to enter into a new contract or obligation 
        to purchase electric energy from a qualifying 
        cogeneration facility or a qualifying small power 
        production facility under this section if the 
        Commission finds that the qualifying cogeneration 
        facility or qualifying small power production facility 
        has nondiscriminatory access to--
                    ``(A)(i) independently administered, 
                auction-based day ahead and real time wholesale 
                markets for the sale of electric energy; and 
                (ii) wholesale markets for long-term sales of 
                capacity and electric energy; or
                    ``(B)(i) transmission and interconnection 
                services that are provided by a Commission-
                approved regional transmission entity and 
                administered pursuant to an open access 
                transmission tariff that affords 
                nondiscriminatory treatment to all customers; 
                and (ii) competitive wholesale markets that 
                provide a meaningful opportunity to sell 
                capacity, including long-term and short-term 
                sales, and electric energy, including long-
                term, short-term and real-time sales, to buyers 
                other than the utility to which the qualifying 
                facility is interconnected. In determining 
                whether a meaningful opportunity to sell 
                exists, the Commission shall consider, among 
                other factors, evidence of transactions within 
                the relevant market; or
                    ``(C) wholesale markets for the sale of 
                capacity and electric energy that are, at a 
                minimum, of comparable competitive quality as 
                markets described in subparagraphs (A) and (B).
            ``(2) Revised purchase and sale obligation for new 
        facilities.--(A) After the date of enactment of this 
        subsection, no electric utility shall be required 
        pursuant to this section to enter into a new contract 
        or obligation to purchase from or sell electric energy 
        to a facility that is not an existing qualifying 
        cogeneration facility unless the facility meets the 
        criteria for qualifying cogeneration facilities 
        established by the Commission pursuant to the 
        rulemaking required by subsection (n).
            ``(B) For the purposes of this paragraph, the term 
        `existing qualifying cogeneration facility' means a 
        facility that--
                    ``(i) was a qualifying cogeneration 
                facility on the date of enactment of subsection 
                (m); or
                    ``(ii) had filed with the Commission a 
                notice of self-certification, self 
                recertification or an application for 
                Commission certification under 18 C.F.R. 
                292.207 prior to the date on which the 
                Commission issues the final rule required by 
                subsection (n).
            ``(3) Commission review.--Any electric utility may 
        file an application with the Commission for relief from 
        the mandatory purchase obligation pursuant to this 
        subsection on a service territory-wide basis. Such 
        application shall set forth the factual basis upon 
        which relief is requested and describe why the 
        conditions set forth in subparagraphs (A), (B) or (C) 
        of paragraph (1) of this subsection have been met. 
        After notice, including sufficient notice to 
        potentially affected qualifying cogeneration facilities 
        and qualifying small power production facilities, and 
        an opportunity for comment, the Commission shall make a 
        final determination within 90 days of such application 
        regarding whether the conditions set forth in 
        subparagraphs (A), (B) or (C) of paragraph (1) have 
        been met.
            ``(4) Reinstatement of obligation to purchase.--At 
        any time after the Commission makes a finding under 
        paragraph (3) relieving an electric utility of its 
        obligation to purchase electric energy, a qualifying 
        cogeneration facility, a qualifying small power 
        production facility, a State agency, or any other 
        affected person may apply to the Commission for an 
        order reinstating the electric utility's obligation to 
        purchase electric energy under this section. Such 
        application shall set forth the factual basis upon 
        which the application is based and describe why the 
        conditions set forth in subparagraphs (A), (B) or (C) 
        of paragraph (1) of this subsection are no longer met. 
        After notice, including sufficient notice to 
        potentially affected utilities, and opportunity for 
        comment, the Commission shall issue an order within 90 
        days of such application reinstating the electric 
        utility's obligation to purchase electric energy under 
        this section if the Commission finds that the 
        conditions set forth in subparagraphs (A), (B) or (C) 
        of paragraph (1) which relieved the obligation to 
        purchase, are no longer met.
            ``(5) Obligation to sell.--After the date of 
        enactment of this subsection, no electric utility shall 
        be required to enter into a new contract or obligation 
        to sell electric energy to a qualifying cogeneration 
        facility or a qualifying small power production 
        facility under this section if the Commission finds 
        that--
                    ``(A) competing retail electric suppliers 
                are willing and able to sell and deliver 
                electric energy to the qualifying cogeneration 
                facility or qualifying small power production 
                facility; and
                    ``(B) the electric utility is not required 
                by State law to sell electric energy in its 
                service territory.
            ``(6) No effect on existing rights and remedies.--
        Nothing in this subsection affects the rights or 
        remedies of any party under any contract or obligation, 
        in effect or pending approval before the appropriate 
        State regulatory authority or non-regulated electric 
        utility on the date of enactment of this subsection, to 
        purchase electric energy or capacity from or to sell 
        electric energy or capacity to a qualifying 
        cogeneration facility or qualifying small power 
        production facility under this Act (including the right 
        to recover costs of purchasing electric energy or 
        capacity).
            ``(7) Recovery of costs.--(A) The Commission shall 
        issue and enforce such regulations as are necessary to 
        ensure that an electric utility that purchases electric 
        energy or capacity from a qualifying cogeneration 
        facility or qualifying small power production facility 
        in accordance with any legally enforceable obligation 
        entered into or imposed under this section recovers all 
        prudently incurred costs associated with the purchase.
            ``(B) A regulation under subparagraph (A) shall be 
        enforceable in accordance with the provisions of law 
        applicable to enforcement of regulations under the 
        Federal Power Act (16 U.S.C. 791a et seq.).
    ``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not 
later than 180 days after the date of enactment of this 
section, the Commission shall issue a rule revising the 
criteria in 18 C.F.R. 292.205 for new qualifying cogeneration 
facilities seeking to sell electric energy pursuant to section 
210 of this Act to ensure--
            ``(i) that the thermal energy output of a new 
        qualifying cogeneration facility is used in a 
        productive and beneficial manner;
            ``(ii) the electrical, thermal, and chemical output 
        of the cogeneration facility is used fundamentally for 
        industrial, commercial, or institutional purposes and 
        is not intended fundamentally for sale to an electric 
        utility, taking into account technological, efficiency, 
        economic, and variable thermal energy requirements, as 
        well as State laws applicable to sales of electric 
        energy from a qualifying facility to its host facility; 
        and
            ``(iii) continuing progress in the development of 
        efficient electric energy generating technology.
    ``(B) The rule issued pursuant to section (n)(1)(A) shall 
be applicable only to facilities that seek to sell electric 
energy pursuant to section 210 of this Act. For all other 
purposes, except as specifically provided in section (m)(2)(A), 
qualifying facility status shall be determined in accordance 
with the rules and regulations of this Act.
    ``(2) Notwithstanding rule revisions under paragraph (1), 
the Commission's criteria for qualifying cogeneration 
facilities in effect prior to the date on which the Commission 
issues the final rule required by paragraph (1) shall continue 
to apply to any cogeneration facility that--
            ``(A) was a qualifying cogeneration facility on the 
        date of enactment of subsection (m), or
            ``(B) had filed with the Commission a notice of 
        self-certification, self-recertification or an 
        application for Commission certification under 18 
        C.F.R. 292.207 prior to the date on which the 
        Commission issues the final rule required by paragraph 
        (1).''.
    (b) Elimination of Ownership Limitations.--
            (1) Qualifying small power production facility.--
        Section 3(17)(C) of the Federal Power Act (16 U.S.C. 
        796(17)(C)) is amended to read as follows:
                    ``(C) `qualifying small power production 
                facility' means a small power production 
                facility that the Commission determines, by 
                rule, meets such requirements (including 
                requirements respecting fuel use, fuel 
                efficiency, and reliability) as the Commission 
                may, by rule, prescribe;''.
            (2) Qualifying cogeneration facility.--Section 
        3(18)(B) of the Federal Power Act (16 U.S.C. 
        796(18)(B)) is amended to read as follows:
                    ``(B) `qualifying cogeneration facility' 
                means a cogeneration facility that the 
                Commission determines, by rule, meets such 
                requirements (including requirements respecting 
                minimum size, fuel use, and fuel efficiency) as 
                the Commission may, by rule, prescribe;''.

                      Subtitle F--Repeal of PUHCA

SEC. 1261. SHORT TITLE.

    This subtitle may be cited as the ``Public Utility Holding 
Company Act of 2003''.

SEC. 1262. DEFINITIONS.

    For purposes of this subtitle:
            (1) Affiliate.--The term ``affiliate'' of a company 
        means any company, 5 percent or more of the outstanding 
        voting securities of which are owned, controlled, or 
        held with power to vote, directly or indirectly, by 
        such company.
            (2) Associate company.--The term ``associate 
        company'' of a company means any company in the same 
        holding company system with such company.
            (3) Commission.--The term ``Commission'' means the 
        Federal Energy Regulatory Commission.
            (4) Company.--The term ``company'' means a 
        corporation, partnership, association, joint stock 
        company, business trust, or any organized group of 
        persons, whether incorporated or not, or a receiver, 
        trustee, or other liquidating agent of any of the 
        foregoing.
            (5) Electric utility company.--The term ``electric 
        utility company'' means any company that owns or 
        operates facilities used for the generation, 
        transmission, or distribution of electric energy for 
        sale.
            (6) Exempt wholesale generator and foreign utility 
        company.--The terms ``exempt wholesale generator'' and 
        ``foreign utility company'' have the same meanings as 
        in sections 32 and 33, respectively, of the Public 
        Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a, 
        79z-5b), as those sections existed on the day before 
        the effective date of this subtitle.
            (7) Gas utility company.--The term ``gas utility 
        company'' means any company that owns or operates 
        facilities used for distribution at retail (other than 
        the distribution only in enclosed portable containers 
        or distribution to tenants or employees of the company 
        operating such facilities for their own use and not for 
        resale) of natural or manufactured gas for heat, light, 
        or power.
            (8) Holding company.--The term ``holding company'' 
        means--
                    (A) any company that directly or indirectly 
                owns, controls, or holds, with power to vote, 
                10 percent or more of the outstanding voting 
                securities of a public-utility company or of a 
                holding company of any public-utility company; 
                and
                    (B) any person, determined by the 
                Commission, after notice and opportunity for 
                hearing, to exercise directly or indirectly 
                (either alone or pursuant to an arrangement or 
                understanding with 1 or more persons) such a 
                controlling influence over the management or 
                policies of any public-utility company or 
                holding company as to make it necessary or 
                appropriate for the rate protection of utility 
                customers with respect to rates that such 
                person be subject to the obligations, duties, 
                and liabilities imposed by this subtitle upon 
                holding companies.
            (9) Holding company system.--The term ``holding 
        company system'' means a holding company, together with 
        its subsidiary companies.
            (10) Jurisdictional rates.--The term 
        ``jurisdictional rates'' means rates accepted or 
        established by the Commission for the transmission of 
        electric energy in interstate commerce, the sale of 
        electric energy at wholesale in interstate commerce, 
        the transportation of natural gas in interstate 
        commerce, and the sale in interstate commerce of 
        natural gas for resale for ultimate public consumption 
        for domestic, commercial, industrial, or any other use.
            (11) Natural gas company.--The term ``natural gas 
        company'' means a person engaged in the transportation 
        of natural gas in interstate commerce or the sale of 
        such gas in interstate commerce for resale.
            (12) Person.--The term ``person'' means an 
        individual or company.
            (13) Public utility.--The term ``public utility'' 
        means any person who owns or operates facilities used 
        for transmission of electric energy in interstate 
        commerce or sales of electric energy at wholesale in 
        interstate commerce.
            (14) Public-utility company.--The term ``public-
        utility company'' means an electric utility company or 
        a gas utility company.
            (15) State commission.--The term ``State 
        commission'' means any commission, board, agency, or 
        officer, by whatever name designated, of a State, 
        municipality, or other political subdivision of a State 
        that, under the laws of such State, has jurisdiction to 
        regulate public utility companies.
            (16) Subsidiary company.--The term ``subsidiary 
        company'' of a holding company means--
                    (A) any company, 10 percent or more of the 
                outstanding voting securities of which are 
                directly or indirectly owned, controlled, or 
                held with power to vote, by such holding 
                company; and
                    (B) any person, the management or policies 
                of which the Commission, after notice and 
                opportunity for hearing, determines to be 
                subject to a controlling influence, directly or 
                indirectly, by such holding company (either 
                alone or pursuant to an arrangement or 
                understanding with 1 or more other persons) so 
                as to make it necessary for the rate protection 
                of utility customers with respect to rates that 
                such person be subject to the obligations, 
                duties, and liabilities imposed by this 
                subtitle upon subsidiary companies of holding 
                companies.
            (17) Voting security.--The term ``voting security'' 
        means any security presently entitling the owner or 
        holder thereof to vote in the direction or management 
        of the affairs of a company.

SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

    The Public Utility Holding Company Act of 1935 (15 U.S.C. 
79 et seq.) is repealed.

SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Each holding company and each associate 
company thereof shall maintain, and shall make available to the 
Commission, such books, accounts, memoranda, and other records 
as the Commission determines are relevant to costs incurred by 
a public utility or natural gas company that is an associate 
company of such holding company and necessary or appropriate 
for the protection of utility customers with respect to 
jurisdictional rates.
    (b) Affiliate Companies.--Each affiliate of a holding 
company or of any subsidiary company of a holding company shall 
maintain, and shall make available to the Commission, such 
books, accounts, memoranda, and other records with respect to 
any transaction with another affiliate, as the Commission 
determines are relevant to costs incurred by a public utility 
or natural gas company that is an associate company of such 
holding company and necessary or appropriate for the protection 
of utility customers with respect to jurisdictional rates.
    (c) Holding Company Systems.--The Commission may examine 
the books, accounts, memoranda, and other records of any 
company in a holding company system, or any affiliate thereof, 
as the Commission determines are relevant to costs incurred by 
a public utility or natural gas company within such holding 
company system and necessary or appropriate for the protection 
of utility customers with respect to jurisdictional rates.
    (d) Confidentiality.--No member, officer, or employee of 
the Commission shall divulge any fact or information that may 
come to his or her knowledge during the course of examination 
of books, accounts, memoranda, or other records as provided in 
this section, except as may be directed by the Commission or by 
a court of competent jurisdiction.

SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Upon the written request of a State 
commission having jurisdiction to regulate a public-utility 
company in a holding company system, the holding company or any 
associate company or affiliate thereof, other than such public-
utility company, wherever located, shall produce for inspection 
books, accounts, memoranda, and other records that--
            (1) have been identified in reasonable detail in a 
        proceeding before the State commission;
            (2) the State commission determines are relevant to 
        costs incurred by such public-utility company; and
            (3) are necessary for the effective discharge of 
        the responsibilities of the State commission with 
        respect to such proceeding.
    (b) Limitation.--Subsection (a) does not apply to any 
person that is a holding company solely by reason of ownership 
of 1 or more qualifying facilities under the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.).
    (c) Confidentiality of Information.--The production of 
books, accounts, memoranda, and other records under subsection 
(a) shall be subject to such terms and conditions as may be 
necessary and appropriate to safeguard against unwarranted 
disclosure to the public of any trade secrets or sensitive 
commercial information.
    (d) Effect on State Law.--Nothing in this section shall 
preempt applicable State law concerning the provision of books, 
accounts, memoranda, and other records, or in any way limit the 
rights of any State to obtain books, accounts, memoranda, and 
other records under any other Federal law, contract, or 
otherwise.
    (e) Court Jurisdiction.--Any United States district court 
located in the State in which the State commission referred to 
in subsection (a) is located shall have jurisdiction to enforce 
compliance with this section.

SEC. 1266. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the effective 
date of this subtitle, the Commission shall issue a final rule 
to exempt from the requirements of section 1264 (relating to 
Federal access to books and records) any person that is a 
holding company, solely with respect to 1 or more--
            (1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 
        seq.);
            (2) exempt wholesale generators; or
            (3) foreign utility companies.
    (b) Other Authority.--The Commission shall exempt a person 
or transaction from the requirements of section 1264 (relating 
to Federal access to books and records) if, upon application or 
upon the motion of the Commission--
            (1) the Commission finds that the books, accounts, 
        memoranda, and other records of any person are not 
        relevant to the jurisdictional rates of a public 
        utility or natural gas company; or
            (2) the Commission finds that any class of 
        transactions is not relevant to the jurisdictional 
        rates of a public utility or natural gas company.

SEC. 1267. AFFILIATE TRANSACTIONS.

    (a) Commission Authority Unaffected.--Nothing in this 
subtitle shall limit the authority of the Commission under the 
Federal Power Act (16 U.S.C. 791a et seq.) to require that 
jurisdictional rates are just and reasonable, including the 
ability to deny or approve the pass through of costs, the 
prevention of cross-subsidization, and the issuance of such 
rules and regulations as are necessary or appropriate for the 
protection of utility consumers.
    (b) Recovery of Costs.--Nothing in this subtitle shall 
preclude the Commission or a State commission from exercising 
its jurisdiction under otherwise applicable law to determine 
whether a public-utility company, public utility, or natural 
gas company may recover in rates any costs of an activity 
performed by an associate company, or any costs of goods or 
services acquired by such public-utility company from an 
associate company.

SEC. 1268. APPLICABILITY.

    Except as otherwise specifically provided in this subtitle, 
no provision of this subtitle shall apply to, or be deemed to 
include--
            (1) the United States;
            (2) a State or any political subdivision of a 
        State;
            (3) any foreign governmental authority not 
        operating in the United States;
            (4) any agency, authority, or instrumentality of 
        any entity referred to in paragraph (1), (2), or (3); 
        or
            (5) any officer, agent, or employee of any entity 
        referred to in paragraph (1), (2), (3), or (4) acting 
        as such in the course of his or her official duty.

SEC. 1269. EFFECT ON OTHER REGULATIONS.

    Nothing in this subtitle precludes the Commission or a 
State commission from exercising its jurisdiction under 
otherwise applicable law to protect utility customers.

SEC. 1270. ENFORCEMENT.

    The Commission shall have the same powers as set forth in 
sections 306 through 317 of the Federal Power Act (16 U.S.C. 
825e-825p) to enforce the provisions of this subtitle.

SEC. 1271. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this subtitle, or otherwise in 
the Public Utility Holding Company Act of 1935, or rules, 
regulations, or orders thereunder, prohibits a person from 
engaging in or continuing to engage in activities or 
transactions in which it is legally engaged or authorized to 
engage on the date of enactment of this Act, if that person 
continues to comply with the terms (other than an expiration 
date or termination date) of any such authorization, whether by 
rule or by order.
    (b) Effect on Other Commission Authority.--Nothing in this 
subtitle limits the authority of the Commission under the 
Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas 
Act (15 U.S.C. 717 et seq.).

SEC. 1272. IMPLEMENTATION.

    Not later than 12 months after the date of enactment of 
this subtitle, the Commission shall--
            (1) issue such regulations as may be necessary or 
        appropriate to implement this subtitle (other than 
        section 1265, relating to State access to books and 
        records); and
            (2) submit to Congress detailed recommendations on 
        technical and conforming amendments to Federal law 
        necessary to carry out this subtitle and the amendments 
        made by this subtitle.

SEC. 1273. TRANSFER OF RESOURCES.

    All books and records that relate primarily to the 
functions transferred to the Commission under this subtitle 
shall be transferred from the Securities and Exchange 
Commission to the Commission.

SEC. 1274. EFFECTIVE DATE.

    (a) In General.--Except for section 1272 (relating to 
implementation), this subtitle shall take effect 12 months 
after the date of enactment of this subtitle.
    (b) Compliance With Certain Rules.--If the Commission 
approves and makes effective any final rulemaking modifying the 
standards of conduct governing entities that own, operate, or 
control facilities for transmission of electricity in 
interstate commerce or transportation of natural gas in 
interstate commerce prior to the effective date of this 
subtitle, any action taken by a public-utility company or 
utility holding company to comply with the requirements of such 
rulemaking shall not subject such public-utility company or 
utility holding company to any regulatory requirement 
applicable to a holding company under the Public Utility 
Holding Company Act of 1935 (15 U.S.C. 79 et seq.).

SEC. 1275. SERVICE ALLOCATION.

    (a) FERC Review.--In the case of non-power goods or 
administrative or management services provided by an associate 
company organized specifically for the purpose of providing 
such goods or services to any public utility in the same 
holding company system, at the election of the system or a 
State commission having jurisdiction over the public utility, 
the Commission, after the effective date of this subtitle, 
shall review and authorize the allocation of the costs for such 
goods or services to the extent relevant to that associate 
company in order to assure that each allocation is appropriate 
for the protection of investors and consumers of such public 
utility.
    (b) Cost Allocation.--Nothing in this section shall 
preclude the Commission or a State commission from exercising 
its jurisdiction under other applicable law with respect to the 
review or authorization of any costs allocated to a public 
utility in a holding company system located in the affected 
State as a result of the acquisition of non-power goods or 
administrative and management services by such public utility 
from an associate company organized specifically for that 
purpose.
    (c) Rules.--Not later than 6 months after the date of 
enactment of this Act, the Commission shall issue rules (which 
rules shall be effective no earlier than the effective date of 
this subtitle) to exempt from the requirements of this section 
any company in a holding company system whose public utility 
operations are confined substantially to a single State and any 
other class of transactions that the Commission finds is not 
relevant to the jurisdictional rates of a public utility.
    (d) Public Utility.--As used in this section, the term 
``public utility'' has the meaning given that term in section 
201(e) of the Federal Power Act.

SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such funds as may 
be necessary to carry out this subtitle.

SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) Conflict of Jurisdiction.--Section 318 of the Federal 
Power Act (16 U.S.C. 825q) is repealed.
    (b) Definitions.--(1) Section 201(g)(5) of the Federal 
Power Act (16 U.S.C. 824(g)(5)) is amended by striking ``1935'' 
and inserting ``2003''.
    (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) 
is amended by striking ``1935'' and inserting ``2003''.

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

SEC. 1281. MARKET TRANSPARENCY RULES.

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

``SEC. 220. MARKET TRANSPARENCY RULES.

    ``(a) In General.--Not later than 180 days after the date 
of enactment of this section, the Commission shall issue rules 
establishing an electronic information system to provide the 
Commission and the public with access to such information as is 
necessary or appropriate to facilitate price transparency and 
participation in markets subject to the Commission's 
jurisdiction under this Act. Such systems shall provide 
information about the availability and market price of 
wholesale electric energy and transmission services to the 
Commission, State commissions, buyers and sellers of wholesale 
electric energy, users of transmission services, and the public 
on a timely basis. The Commission shall have authority to 
obtain such information from any electric utility or 
transmitting utility, including any entity described in section 
201(f).
    ``(b) Exemptions.--The Commission shall exempt from 
disclosure information it determines would, if disclosed, be 
detrimental to the operation of an effective market or 
jeopardize system security. This section shall not apply to 
transactions for the purchase or sale of wholesale electric 
energy or transmission services within the area described in 
section 212(k)(2)(A). In determining the information to be made 
available under this section and time to make such information 
available, the Commission shall seek to ensure that consumers 
and competitive markets are protected from the adverse effects 
of potential collusion or other anti-competitive behaviors that 
can be facilitated by untimely public disclosure of 
transaction-specific information.
    ``(c) Commodity Futures Trading Commission.--This section 
shall not affect the exclusive jurisdiction of the Commodity 
Futures Trading Commission with respect to accounts, 
agreements, contracts, or transactions in commodities under the 
Commodity Exchange Act (7 U.S.C. 1 et seq.). Any request 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.
    ``(d) Savings Provision.--In exercising its authority under 
this section, the Commission shall not--
            ``(1) compete with, or displace from the market 
        place, any price publisher; or
            ``(2) regulate price publishers or impose any 
        requirements on the publication of information.''.

SEC. 1282. MARKET MANIPULATION.

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

``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.

    ``No person or other entity (including an entity described 
in section 201(f)) shall willfully and knowingly report any 
information relating to the price of electricity sold at 
wholesale or availability of transmission capacity, which 
information the person or any other entity knew to be false at 
the time of the reporting, to a Federal agency with intent to 
fraudulently affect the data being compiled by such Federal 
agency.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

    ``(a) Prohibition.--No person or other entity (including an 
entity described in section 201(f)) shall willfully and 
knowingly enter into any contract or other arrangement to 
execute a `round trip trade' for the purchase or sale of 
electric energy at wholesale.
    ``(b) Definition.--For the purposes of this section, the 
term `round trip trade' means a transaction, or combination of 
transactions, in which a person or any other entity--
            ``(1) enters into a contract or other arrangement 
        to purchase from, or sell to, any other person or other 
        entity electric energy at wholesale;
            ``(2) simultaneously with entering into the 
        contract or arrangement described in paragraph (1), 
        arranges a financially offsetting trade with such other 
        person or entity for the same such electric energy, at 
        the same location, price, quantity and terms so that, 
        collectively, the purchase and sale transactions in 
        themselves result in no financial gain or loss; and
            ``(3) enters into the contract or arrangement with 
        a specific intent to fraudulently affect reported 
        revenues, trading volumes, or prices.''.

SEC. 1283. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 
U.S.C. 825e) is amended as follows:
            (1) By inserting ``electric utility,'' after ``Any 
        person,''.
            (2) By inserting ``, transmitting utility,'' after 
        ``licensee'' each place it appears.
    (b) Review of Commission Orders.--Section 313(a) of the 
Federal Power Act (16 U.S.C. 8251) is amended by inserting 
`electric utility,' after `person,' in the first 2 places it 
appears and by striking `any person unless such person' and 
inserting `any entity unless such entity'.
    (c) Investigations.--Section 307(a) of the Federal Power 
Act (16 U.S.C. 825f(a)) is amended as follows:
            (1) By inserting `, electric utility, transmitting 
        utility, or other entity' after `person' each time it 
        appears.
            (2) By striking the period at the end of the first 
        sentence and inserting the following: ``or in obtaining 
        information about the sale of electric energy at 
        wholesale in interstate commerce and the transmission 
        of electric energy in interstate commerce.''.
    (d) Criminal Penalties.--Section 316 of the Federal Power 
Act (16 U.S.C. 825o) is amended--
            (1) in subsection (a), by striking ``$5,000'' and 
        inserting ``$1,000,000'', and by striking ``two years'' 
        and inserting ``5 years'';
            (2) in subsection (b), by striking ``$500'' and 
        inserting ``$25,000''; and
            (3) by striking subsection (c).
    (e) Civil Penalties.--Section 316A of the Federal Power Act 
(16 U.S.C. 825o-1) is amended as follows:
            (1) In subsections (a) and (b), by striking 
        ``section 211, 212, 213, or 214'' each place it appears 
        and inserting ``Part II''.
            (2) In subsection (b), by striking ``$10,000'' and 
        inserting ``$1,000,000''.

SEC. 1284. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) 
is amended as follows:
            (1) By striking ``the date 60 days after the filing 
        of such complaint nor later than 5 months after the 
        expiration of such 60-day period'' in the second 
        sentence and inserting ``the date of the filing of such 
        complaint nor later than 5 months after the filing of 
        such complaint''.
            (2) By striking ``60 days after'' in the third 
        sentence and inserting ``of''.
            (3) By striking ``expiration of such 60-day 
        period'' in the third sentence and inserting 
        ``publication date''.
            (4) By striking the fifth sentence and inserting 
        the following: ``If no final decision is rendered by 
        the conclusion of the 180-day period commencing upon 
        initiation of a proceeding pursuant to this section, 
        the Commission shall state the reasons why it has 
        failed to do so and shall state its best estimate as to 
        when it reasonably expects to make such decision.''.

SEC. 1285. REFUND AUTHORITY.

    Section 206 of the Federal Power Act (16 U.S.C. 824e) is 
amended by adding the following new subsection at the end 
thereof:
    ``(e)(1) Except as provided in paragraph (2), if an entity 
described in section 201(f) voluntarily makes a short-term sale 
of electric energy and the sale violates Commission rules in 
effect at the time of the sale, such entity shall be subject to 
the Commission's refund authority under this section with 
respect to such violation.
    ``(2) This section shall not apply to--
            ``(A) any entity that sells less than 8,000,000 
        megawatt hours of electricity per year; or
            ``(B) any electric cooperative.
    ``(3) For purposes of this subsection, the term `short-term 
sale' means an agreement for the sale of electric energy at 
wholesale in interstate commerce that is for a period of 31 
days or less (excluding monthly contracts subject to automatic 
renewal).
    ``(4) The Commission shall have refund authority under 
subsection (e)(1) with respect to a voluntary short-term sale 
of electric energy by the Bonneville Power Administration (in 
this section `Bonneville') only if the sale is at an unjust and 
unreasonable rate and, in that event, may order a refund only 
for short-term sales made by Bonneville at rates that are 
higher than the highest just and reasonable rate charged by any 
other entity for a short-term sale of electric energy in the 
same geographic market for the same, or most nearly comparable, 
period as the sale by Bonneville.
    ``(5) With respect to any Federal power marketing agency or 
the Tennessee Valley Authority, the Commission shall not assert 
or exercise any regulatory authority or powers under subsection 
(e)(1) other than the ordering of refunds to achieve a just and 
reasonable rate.''.

SEC. 1286. SANCTITY OF CONTRACT.

    (a) In General.--The Federal Energy Regulatory Commission 
(in this section, ``the Commission'') shall have no authority 
to abrogate or modify any provision of an executed contract or 
executed contract amendment described in subsection (b) that 
has been entered into or taken effect, except upon a finding 
that failure to take such action would be contrary to the 
public interest.
    (b) Limitation.--Except as provided in subsection (c), this 
section shall apply only to a contract or contract amendment--
            (1) executed on or after the date of enactment of 
        this Act; and
            (2) entered into--
                    (A) for the purchase or sale of electric 
                energy under section 205 of the Federal Power 
                Act (16 U.S.C. 824d) where the seller has been 
                authorized by the Commission to charge market-
                based rates; or
                    (B) under section 4 of the Natural Gas Act 
                (15 U.S.C. 717c) where the natural gas company 
                has been authorized by the Commission to charge 
                market-based rates for the service described in 
                the contract.
    (c) Exclusion.--This section shall not apply to an executed 
contract or executed contract amendment that expressly provides 
for a standard of review other than the public interest 
standard.
    (d) Savings Provision.--With respect to contracts to which 
this section does not apply, nothing in this section alters 
existing law regarding the applicable standard of review for a 
contract subject to the jurisdiction of the Commission.

SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

    (a) Privacy.--The Federal Trade Commission may issue rules 
protecting the privacy of electric consumers from the 
disclosure of consumer information obtained in connection with 
the sale or delivery of electric energy to electric consumers.
    (b) Slamming.--The Federal Trade Commission may issue rules 
prohibiting the change of selection of an electric utility 
except with the informed consent of the electric consumer or if 
approved by the appropriate State regulatory authority.
    (c) Cramming.--The Federal Trade Commission may issue rules 
prohibiting the sale of goods and services to an electric 
consumer unless expressly authorized by law or the electric 
consumer.
    (d) Rulemaking.--The Federal Trade Commission shall proceed 
in accordance with section 553 of title 5, United States Code, 
when prescribing a rule under this section.
    (e) State Authority.--If the Federal Trade Commission 
determines that a State's regulations provide equivalent or 
greater protection than the provisions of this section, such 
State regulations shall apply in that State in lieu of the 
regulations issued by the Commission under this section.
    (f) Definitions.--For purposes of this section:
            (1) State regulatory authority.--The term ``State 
        regulatory authority'' has the meaning given that term 
        in section 3(21) of the Federal Power Act (16 U.S.C. 
        796(21)).
            (2) Electric consumer and electric utility.--The 
        terms ``electric consumer'' and ``electric utility'' 
        have the meanings given those terms in section 3 of the 
        Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2602).

                       Subtitle H--Merger Reform

SEC. 1291. MERGER REVIEW REFORM AND ACCOUNTABILITY.

    (a) Merger Review Reform.--Within 180 days after the date 
of enactment of this Act, the Secretary of Energy, in 
consultation with the Federal Energy Regulatory Commission and 
the Attorney General of the United States, shall prepare, and 
transmit to Congress each of the following:
            (1) A study of the extent to which the authorities 
        vested in the Federal Energy Regulatory Commission 
        under section 203 of the Federal Power Act are 
        duplicative of authorities vested in--
                    (A) other agencies of Federal and State 
                Government; and
                    (B) the Federal Energy Regulatory 
                Commission, including under sections 205 and 
                206 of the Federal Power Act.
            (2) Recommendations on reforms to the Federal Power 
        Act that would eliminate any unnecessary duplication in 
        the exercise of regulatory authority or unnecessary 
        delays in the approval (or disapproval) of applications 
        for the sale, lease, or other disposition of public 
        utility facilities.
    (b) Merger Review Accountability.--Not later than 1 year 
after the date of enactment of this Act and annually 
thereafter, with respect to all orders issued within the 
preceding year that impose a condition on a sale, lease, or 
other disposition of public utility facilities under section 
203(b) of the Federal Power Act, the Federal Energy Regulatory 
Commission shall transmit a report to Congress explaining each 
of the following:
            (1) The condition imposed.
            (2) Whether the Commission could have imposed such 
        condition by exercising its authority under any 
        provision of the Federal Power Act other than under 
        section 203(b).
            (3) If the Commission could not have imposed such 
        condition other than under section 203(b), why the 
        Commission determined that such condition was 
        consistent with the public interest.

SEC. 1292. ELECTRIC UTILITY MERGERS.

    (a) Amendment.--Section 203(a) of the Federal Power Act (16 
U.S.C. 824b(a)) is amended to read as follows:
    ``(a)(1) No public utility shall, without first having 
secured an order of the Commission authorizing it to do so--
            ``(A) sell, lease, or otherwise dispose of the 
        whole of its facilities subject to the jurisdiction of 
        the Commission, or any part thereof of a value in 
        excess of $10,000,000;
            ``(B) merge or consolidate, directly or indirectly, 
        such facilities or any part thereof with those of any 
        other person, by any means whatsoever; or
            ``(C) purchase, acquire, or take any security with 
        a value in excess of $10,000,000 of any other public 
        utility.
    ``(2) No holding company in a holding company system that 
includes a public utility shall purchase, acquire, or take any 
security with a value in excess of $10,000,000 of, or, by any 
means whatsoever, directly or indirectly, merge or consolidate 
with, a public utility or a holding company in a holding 
company system that includes a public utility with a value in 
excess of $10,000,000 without first having secured an order of 
the Commission authorizing it to do so.
    ``(3) Upon receipt of an application for such approval the 
Commission shall give reasonable notice in writing to the 
Governor and State commission of each of the States in which 
the physical property affected, or any part thereof, is 
situated, and to such other persons as it may deem advisable.
    ``(4) After notice and opportunity for hearing, the 
Commission shall approve the proposed disposition, 
consolidation, acquisition, or change in control, if it finds 
that the proposed transaction will be consistent with the 
public interest. In evaluating whether a transaction will be 
consistent with the public interest, the Commission shall 
consider whether the proposed transaction--
            ``(A) will adequately protect consumer interests;
            ``(B) will be consistent with competitive wholesale 
        markets;
            ``(C) will impair the financial integrity of any 
        public utility that is a party to the transaction or an 
        associate company of any party to the transaction; and
            ``(D) satisfies such other criteria as the 
        Commission considers consistent with the public 
        interest.
    ``(5) The Commission shall, by rule, adopt procedures for 
the expeditious consideration of applications for the approval 
of dispositions, consolidations, or acquisitions under this 
section. Such rules shall identify classes of transactions, or 
specify criteria for transactions, that normally meet the 
standards established in paragraph (4). The Commission shall 
provide expedited review for such transactions. The Commission 
shall grant or deny any other application for approval of a 
transaction not later than 180 days after the application is 
filed. If the Commission does not act within 180 days, such 
application shall be deemed granted unless the Commission 
finds, based on good cause, that further consideration is 
required to determine whether the proposed transaction meets 
the standards of paragraph (4) and issues an order tolling the 
time for acting on the application for not more than 180 days, 
at the end of which additional period the Commission shall 
grant or deny the application.
    ``(6) For purposes of this subsection, the terms `associate 
company', `holding company', and `holding company system' have 
the meaning given those terms in the Public Utility Holding 
Company Act of 2003.''.
    (b) Effective Date.--The amendments made by this section 
shall take effect 12 months after the date of enactment of this 
section.

                        Subtitle I--Definitions

SEC. 1295. DEFINITIONS.

    (a) Electric Utility.--Section 3(22) of the Federal Power 
Act (16 U.S.C. 796(22)) is amended to read as follows:
            ``(22) Electric utility.--The term `electric 
        utility' means any person or Federal or State agency 
        (including any entity described in section 201(f)) that 
        sells electric energy; such term includes the Tennessee 
        Valley Authority and each Federal power marketing 
        administration.''.
    (b) Transmitting Utility.--Section 3(23) of the Federal 
Power Act (16 U.S.C. 796(23)) is amended to read as follows:
            ``(23) Transmitting utility.--The term 
        `transmitting utility' means an entity, including any 
        entity described in section 201(f), that owns, 
        operates, or controls facilities used for the 
        transmission of electric energy--
                    ``(A) in interstate commerce; or
                    ``(B) for the sale of electric energy at 
                wholesale.''.
    (c) Additional Definitions.--Section 3 of the Federal Power 
Act (16 U.S.C. 796) is amended by adding at the end the 
following:
            ``(26) Electric cooperative.--The term `electric 
        cooperative' means a cooperatively owned electric 
        utility.
            ``(27) RTO.--The term `Regional Transmission 
        Organization' or `RTO' means an entity of sufficient 
        regional scope approved by the Commission to exercise 
        operational or functional control of facilities used 
        for the transmission of electric energy in interstate 
        commerce and to ensure nondiscriminatory access to such 
        facilities.
            ``(28) ISO.--The term `Independent System Operator' 
        or `ISO' means an entity approved by the Commission to 
        exercise operational or functional control of 
        facilities used for the transmission of electric energy 
        in interstate commerce and to ensure nondiscriminatory 
        access to such facilities.''.
    (d) Commission.--For the purposes of this title, the term 
``Commission'' means the Federal Energy Regulatory Commission.
    (e) Applicability.--Section 201(f) of the Federal Power Act 
(16 U.S.C. 824(f)) is amended by adding after ``political 
subdivision of a state,'' the following: ``an electric 
cooperative that has financing under the Rural Electrification 
Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 
4,000,000 megawatt hours of electricity per year,''.

            Subtitle J--Technical and Conforming Amendments

SEC. 1297. CONFORMING AMENDMENTS.

    The Federal Power Act is amended as follows:
            (1) Section 201(b)(2) of such Act (16 U.S.C. 
        824(b)(2)) is amended as follows:
                    (A) In the first sentence by striking 
                ``210, 211, and 212'' and inserting 
                ``203(a)(2), 206(e), 210, 211, 211A, 212, 215, 
                216, 217, 218, 219, 220, 221, and 222''.
                    (B) In the second sentence by striking 
                ``210 or 211'' and inserting ``203(a)(2), 
                206(e), 210, 211, 211A, 212, 215, 216, 217, 
                218, 219, 220, 221, and 222''.
                    (C) Section 201(b)(2) of such Act is 
                amended by striking ``The'' in the first place 
                it appears and inserting ``Notwithstanding 
                section 201(f), the'' and in the second 
                sentence after ``any order'' by inserting ``or 
                rule''.
            (2) Section 201(e) of such Act is amended by 
        striking ``210, 211, or 212'' and inserting ``206(e), 
        206(f), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 
        220, 221, and 222''.
            (3) Section 206 of such Act (16 U.S.C. 824e) is 
        amended as follows:
                    (A) In subsection (b), in the seventh 
                sentence, by striking ``the public utility to 
                make''.
                    (B) In the first sentence of subsection 
                (a), by striking `hearing had' and inserting 
                ``hearing held''.
            (4) Section 211(c) of such Act (16 U.S.C. 824j(c)) 
        is amended by--
                    (A) striking ``(2)'';
                    (B) striking ``(A)'' and inserting ``(1)''
                    (C) striking ``(B)'' and inserting ``(2)''; 
                and
                    (D) striking ``termination of 
                modification'' and inserting ``termination or 
                modification''.
            (5) Section 211(d)(1) of such Act (16 U.S.C. 
        824j(d)(1)) is amended by striking ``electric utility'' 
        the second time it appears and inserting ``transmitting 
        utility''.
            (6) Section 315 (c) of such Act (16 U.S.C. 825n(c)) 
        is amended by striking ``subsection'' and inserting 
        ``section''.

                   TITLE XIII--ENERGY TAX INCENTIVES

SEC. 1300. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This title may be cited as the ``Energy 
Tax Policy Act of 2003''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue 
Code of 1986.

                        Subtitle A--Conservation

               PART I--RESIDENTIAL AND BUSINESS PROPERTY

SEC. 1301. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of 
chapter 1 (relating to nonrefundable personal credits) is 
amended by inserting after section 25B the following new 
section:

``SEC. 25C. RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, 
there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum 
of--
            ``(1) 15 percent of the qualified solar water 
        heating property expenditures made by the taxpayer 
        during such year,
            ``(2) 15 percent of the qualified photovoltaic 
        property expenditures made by the taxpayer during such 
        year,
            ``(3) 15 percent of the qualified wind energy 
        property expenditures made by the taxpayer during such 
        year, and
            ``(4) 20 percent of the qualified fuel cell 
        property expenditures made by the taxpayer during such 
        year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--
                    ``(A) In general.--The credit allowed under 
                subsection (a) shall not exceed--
                            ``(i) $2,000 for property described 
                        in paragraph (1), (2), or (3) of 
                        subsection (c), and
                            ``(ii) $500 for each 0.5 kilowatt 
                        of capacity of property described in 
                        subsection (c)(4).
                    ``(B) Prior expenditures by taxpayer on 
                same residence taken into account.--In 
                determining the amount of the credit allowed to 
                a taxpayer with respect to any dwelling unit 
                under this section, the dollar amount under 
                subparagraph (A)(i) with respect to each type 
                of property described in such subparagraph 
                shall be reduced by the credit allowed to the 
                taxpayer under this section with respect to 
                such property for all preceding taxable years 
                with respect to such dwelling unit.
            ``(2) Property standards.--No credit shall be 
        allowed under this section for an item of property 
        unless--
                    ``(A) the original use of such property 
                commences with the taxpayer,
                    ``(B) such property reasonably can be 
                expected to remain in use for at least 5 years,
                    ``(C) such property is installed on or in 
                connection with a dwelling unit located in the 
                United States and used as a residence by the 
                taxpayer,
                    ``(D) in the case of solar water heating 
                property, such property is certified for 
                performance by the non-profit Solar Rating and 
                Certification Corporation or a comparable 
                entity endorsed by the government of the State 
                in which such property is installed,
                    ``(E) in the case of fuel cell property, 
                such property meets the performance and quality 
                standards (if any) which have been prescribed 
                by the Secretary by regulations (after 
                consultation with the Secretary of Energy), and
                    ``(F) in the case of any photovoltaic 
                property, fuel cell property, or wind energy 
                property, such property meets appropriate fire 
                and electric code requirements.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified solar water heating property 
        expenditure.--The term `qualified solar water heating 
        property expenditure' means an expenditure for property 
        which uses solar energy to heat water for use in a 
        dwelling unit.
            ``(2) Qualified photovoltaic property 
        expenditure.--The term `qualified photovoltaic property 
        expenditure' means an expenditure for property which 
        uses solar energy to generate electricity for use in a 
        dwelling unit and which is not described in paragraph 
        (1).
            ``(3) Qualified wind energy property expenditure.--
        The term `qualified wind energy property expenditure' 
        means an expenditure for property which uses wind 
        energy to generate electricity for use in a dwelling 
        unit.
            ``(4) Qualified fuel cell property expenditure.--
        The term `qualified fuel cell property expenditure' 
        means an expenditure for any qualified fuel cell 
        property (as defined in section 48(c)(1)).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Solar panels.--No expenditure relating to a 
        solar panel or other property installed as a roof (or 
        portion thereof) shall fail to be treated as property 
        described in paragraph (1) or (2) of subsection (c) 
        solely because it constitutes a structural component of 
        the structure on which it is installed.
            ``(2) Swimming pools, etc., used as storage 
        medium.--Expenditures which are properly allocable to a 
        swimming pool, hot tub, or any other energy storage 
        medium which has a function other than the function of 
        such storage shall not be taken into account for 
        purposes of this section.
            ``(3) Dollar amounts in case of joint occupancy.--
        In the case of any dwelling unit which is jointly 
        occupied and used during any calendar year as a 
        residence by 2 or more individuals, the following rules 
        shall apply:
                    ``(A) The amount of the credit allowable 
                under subsection (a) by reason of expenditures 
                made during such calendar year by any of such 
                individuals with respect to such dwelling unit 
                shall be determined by treating all of such 
                individuals as 1 taxpayer whose taxable year is 
                such calendar year.
                    ``(B) There shall be allowable, with 
                respect to such expenditures to each of such 
                individuals, a credit under subsection (a) for 
                the taxable year in which such calendar year 
                ends in an amount which bears the same ratio to 
                the amount determined under subparagraph (A) as 
                the amount of such expenditures made by such 
                individual during such calendar year bears to 
                the aggregate of such expenditures made by all 
                of such individuals during such calendar year.
                    ``(C) Subparagraphs (A) and (B) shall be 
                applied separately with respect to expenditures 
                described in paragraphs (1), (2), (3), and (4) 
                of subsection (c).
            ``(4) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a 
        tenant-stockholder (as defined in section 216) in a 
        cooperative housing corporation (as defined in such 
        section), such individual shall be treated as having 
        made the individual's tenant-stockholder's 
        proportionate share (as defined in section 216(b)(3)) 
        of any expenditures of such corporation.
            ``(5) Condominiums.--
                    ``(A) In general.--In the case of an 
                individual who is a member of a condominium 
                management association with respect to a 
                condominium which the individual owns, such 
                individual shall be treated as having made the 
                individual's proportionate share of any 
                expenditures of such association.
                    ``(B) Condominium management association.--
                For purposes of this paragraph, the term 
                `condominium management association' means an 
                organization which meets the requirements of 
                paragraph (1) of section 528(c) (other than 
                subparagraph (E) thereof) with respect to a 
                condominium project substantially all of the 
                units of which are used as residences.
            ``(6) Allocation in certain cases.--Except in the 
        case of qualified wind energy property expenditures, if 
        less than 80 percent of the use of an item is for 
        nonbusiness purposes, only that portion of the 
        expenditures for such item which is properly allocable 
        to use for nonbusiness purposes shall be taken into 
        account.
            ``(7) When expenditure made; amount of 
        expenditure.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an expenditure with respect 
                to an item shall be treated as made when the 
                original installation of the item is completed.
                    ``(B) Expenditures part of building 
                construction.--In the case of an expenditure in 
                connection with the construction or 
                reconstruction of a structure, such expenditure 
                shall be treated as made when the original use 
                of the constructed or reconstructed structure 
                by the taxpayer begins.
                    ``(C) Amount.--The amount of any 
                expenditure shall be the cost thereof.
            ``(8) Property financed by subsidized energy 
        financing.--For purposes of determining the amount of 
        expenditures made by any individual with respect to any 
        dwelling unit, there shall not be taken into account 
        expenditures which are made from subsidized energy 
        financing (as defined in section 48(a)(4)(C)).
            ``(9) Denial of depreciation on wind energy 
        property for which credit allowed.--No deduction shall 
        be allowed under section 167 for property which uses 
        wind energy to generate electricity if the taxpayer is 
        allowed a credit under this section with respect to 
        such property.
    ``(e) Basis Adjustments.--For purposes of this subtitle, if 
a credit is allowed under this section for any expenditure with 
respect to any property, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditure shall be reduced by the amount of the credit so 
allowed.
    ``(f) Termination.--The credit allowed under this section 
shall not apply to taxable years beginning after December 31, 
2006 (December 31, 2008, with respect to qualified photovoltaic 
property expenditures).''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) is amended by striking ``and'' 
        at the end of paragraph (27), by striking the period at 
        the end of paragraph (28) and inserting ``, and'', and 
        by adding at the end the following new paragraph:
            ``(29) to the extent provided in section 25C(e), in 
        the case of amounts with respect to which a credit has 
        been allowed under section 25C.''.
            (2) The table of sections for subpart A of part IV 
        of subchapter A of chapter 1 is amended by inserting 
        after the item relating to section 25B the following 
        new item:

        ``Sec. 25C. Residential energy efficient property.''.

    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years ending after December 31, 2003.

SEC. 1302. EXTENSION AND EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED 
                    FROM CERTAIN RENEWABLE RESOURCES.

    (a) Expansion of Qualified Energy Resources.--Subsection 
(c) of section 45 (relating to electricity produced from 
certain renewable resources) is amended to read as follows:
    ``(c) Qualified Energy Resources.--For purposes of this 
section--
            ``(1) In general.--The term `qualified energy 
        resources' means--
                    ``(A) wind,
                    ``(B) closed-loop biomass,
                    ``(C) open-loop biomass,
                    ``(D) geothermal energy,
                    ``(E) solar energy,
                    ``(F) small irrigation power, and
                    ``(G) municipal solid waste.
            ``(2) Closed-loop biomass.--The term `closed-loop 
        biomass' means any organic material from a plant which 
        is planted exclusively for purposes of being used at a 
        qualified facility to produce electricity.
            ``(3) Open-loop biomass.--
                    ``(A) In general.--The term `open-loop 
                biomass' means--
                            ``(i) any agricultural livestock 
                        waste nutrients, or
                            ``(ii) any solid, nonhazardous, 
                        cellulosic waste material which is 
                        segregated from other waste materials 
                        and which i