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108th Congress                                            Rept. 108-128
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

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



 
ENERGY RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION 
                              ACT OF 2003

                                _______
                                

                  May 22, 2003.--Ordered to be printed

                                _______
                                

  Mr. Boehlert, from the Committee on Science, submitted the following

                              R E P O R T

                             together with

                           AN ADDITIONAL VIEW

                        [To accompany H.R. 238]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science, to whom was referred the bill (H.R. 
238) to provide for Federal energy research, development, 
demonstration, and commercial application activities, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill............................................54
 III. Background and Need for Legislation............................54
  IV. Summary of Hearings............................................57
   V. Committee Actions..............................................57
  VI. Summary of Major Provisions of Bill............................62
 VII. Section-by-Section Analysis....................................63
VIII. Committee Views................................................78
  IX. Cost Estimate..................................................94
   X. Congressional Budget Office Cost Estimate......................95
  XI. Compliance with Public Law 104-4...............................99
 XII. Committee Oversight Findings and Recommendations...............99
XIII. Constitutional Authority Statement............................100
 XIV. Federal Advisory Committee Statement..........................100
  XV. Congressional Accountability Act..............................101
 XVI. Statement on Preemption of State, Local, or Tribal Law........101
XVII. Changes in Existing Law Made by the Bill, As Reported.........101
XVIII.Committee Recommendations.....................................121

 XIX. Statement of General Performance Goals and Objectives.........121
  XX. Exchange of Committee Correspondence..........................121
 XXI. Additional View...............................................124
XXII. Proceedings of Full Committee Markup..........................125

                              I. Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Energy Research, 
Development, Demonstration, and Commercial Application Act of 2003''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Goals.
Sec. 4. Definitions.

                   TITLE I--RESEARCH AND DEVELOPMENT

                     Subtitle A--Energy Efficiency

                Part 1--Authorization of Appropriations

Sec. 104. Energy efficiency.

                        Part 2--Lighting Systems

Sec. 105. Next Generation Lighting Initiative.

                           Part 3--Buildings

Sec. 106. National Building Performance Initiative.
Sec. 106A. Electric motor control technology.

                            Part 4--Vehicles

Sec. 107. Definitions.
Sec. 108. Establishment of secondary electric vehicle battery use 
program.

              Part 5--Energy Efficiency Science Initiative

Sec. 110. Energy Efficiency Science Initiative.

          Part 6--Advanced Energy Technology Transfer Centers

Sec. 110A. Advanced energy technology transfer centers.

       Subtitle B--Distributed Energy and Electric Energy Systems

                Part 1--Authorization of Appropriations

Sec. 111. Distributed energy and electric energy systems.
Sec. 111A. Demonstration and field test.

                       Part 2--Distributed Power

Sec. 112. Strategy.
Sec. 113. High power density industry program.
Sec. 114. Micro-cogeneration energy technology.

                      Part 3--Transmission Systems

Sec. 115. Transmission infrastructure systems research, development, 
demonstration, and commercial application.

                       Part 4--General Provisions

Sec. 116. Definitions.
Sec. 117. Voluntary consensus standards.

                      Subtitle C--Renewable Energy

                Part 1--Authorization of Appropriations

Sec. 121. Renewable energy.

                           Part 2--Bioenergy

Sec. 122. Bioenergy programs.

                     Part 3--Miscellaneous Projects

Sec. 126. Miscellaneous projects.
Sec. 127. Renewable energy in public buildings.

                       Subtitle D--Nuclear Energy

                Part 1--Authorization of Appropriations

Sec. 131. Nuclear energy.

                Part 2--Nuclear Energy Research Programs

Sec. 132. Nuclear energy research programs.

                    Part 3--Advanced Fuel Recycling

Sec. 133. Advanced fuel recycling program.

                      Part 4--University Programs

Sec. 134. University nuclear science and engineering support.

               Part 5--Geological Isolation of Spent Fuel

Sec. 135. Geological isolation of spent fuel.

                       Subtitle E--Fossil Energy

                Part 1--Authorization of Appropriations

Sec. 141. Fossil energy.

                       Part 2--Research Programs

Sec. 142. Fossil energy research programs.
Sec. 143. Research and development for coal mining technologies.

   Part 3--Ultra-deepwater and Unconventional Natural Gas and Other 
                          Petroleum Resources

Sec. 144. Program authority.
Sec. 145. Ultra-deepwater program.
Sec. 146. Unconventional natural gas and other petroleum resources 
program.
Sec. 147. Additional requirements for awards.
Sec. 148. Advisory committees.
Sec. 149. Limits on participation.
Sec. 150. Fund.
Sec. 150A. Transfer of advanced oil and gas exploration and production 
technologies.
Sec. 151. Sunset.
Sec. 152. Definitions.

                          Subtitle F--Science

                Part 1--Authorization of Appropriations

Sec. 161. Science.

                     Part 2--Fusion Energy Sciences

Sec. 161A. ITER.
Sec. 162. Plan for fusion experiment.
Sec. 163. Plan for fusion energy sciences program.

                   Part 3--Spallation Neutron Source

Sec. 164. Definition.
Sec. 165. Report.
Sec. 166. Limitations.

                         Part 4--Miscellaneous

Sec. 167. Facility and infrastructure support for nonmilitary energy 
laboratories.
Sec. 168. Research regarding precious metal catalysis.
Sec. 169. Nanotechnology research and development.
Sec. 170. Advanced scientific computing for energy missions.
Sec. 170A. Nitrogen fixation.

                        Part 5--Genomes to Life

Sec. 170B. Genomes to Life.
Sec. 170C. Department of Energy Science and Technology Scholarship 
Program.

                   Subtitle G--Energy and Environment

Sec. 171. Authorization of appropriations.
Sec. 172. United States-Mexico energy technology cooperation.
Sec. 173. Waste reduction and use of alternatives.
Sec. 174. Coal gasification.
Sec. 175. Petroleum coke gasification.
Sec. 176. Other biopower and bioenergy.
Sec. 177. Coal technology loan.
Sec. 178. Fuel cell test center.

                          Subtitle H--Hydrogen

Sec. 181. Short title.
Sec. 182. Matsunaga Act amendment.
Sec. 183. Repeal of Hydrogen Future Act of 1996.

                         Subtitle I--Management

Sec. 184. Availability of funds.
Sec. 185. Cost sharing.
Sec. 186. Merit review of proposals.
Sec. 187. External technical review of departmental programs.
Sec. 188. Improved coordination of technology transfer activities.
Sec. 189. Small business advocacy and assistance.
Sec. 190. Mobility of scientific and technical personnel.
Sec. 191. National Academy of Sciences report.
Sec. 192. Outreach.
Sec. 193. Limits on use of funds.
Sec. 194. Reprogramming.
Sec. 195. Construction with other laws.
Sec. 196. University collaboration.
Sec. 197. Federal laboratory educational partners.
Sec. 198. Interagency cooperation.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 201. Improved coordination and management of civilian science and 
technology programs.
Sec. 202. Report on equal employment opportunity practices.
Sec. 203. External regulation of Department of Energy.

                     TITLE III--CLEAN SCHOOL BUSES

Sec. 301. Establishment of pilot program.
Sec. 302. Fuel cell bus development and demonstration program.
Sec. 303. Diesel retrofit program.
Sec. 304. Authorization of appropriations.

           TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES

Sec. 401. Definitions.
Sec. 402. Pilot program.
Sec. 403. Reports to Congress.
Sec. 404. Fuel cell transit bus demonstration.
Sec. 405. Authorization of appropriations.

                          TITLE V--CLEAN COAL

Sec. 501. Authorization of appropriations.
Sec. 502. Project criteria.
Sec. 503. Report.
Sec. 504. Clean coal centers of excellence.

SEC. 2. PURPOSES.

  The purposes of this Act are to--
          (1) contribute to a national energy strategy through an 
        energy research and development program that supports basic 
        energy research and provides mechanisms to develop, 
        demonstrate, and promote the commercial application of new 
        energy technologies in partnership with industry;
          (2) protect and strengthen the Nation's economy, standard of 
        living, and national security by reducing dependence on 
        imported energy;
          (3) meet future needs for energy services at the lowest total 
        cost to the Nation, giving balanced and comprehensive 
        consideration to technologies that improve the efficiency of 
        energy end uses and that enhance energy supply;
          (4) reduce the environmental impacts of energy production, 
        distribution, transportation, and use;
          (5) help increase domestic production of energy, increase the 
        availability of hydrocarbon reserves, and lower energy prices; 
        and
          (6) stimulate economic growth and enhance the ability of 
        United States companies to compete in future markets for 
        advanced energy technologies.

SEC. 3. GOALS.

  (a) In General.--In order to achieve the purposes of this Act, the 
Secretary shall conduct a balanced set of programs of energy research, 
development, demonstration, and commercial application, guided by the 
following goals:
          (1) Energy efficiency.--
                  (A) Buildings.--Develop, in partnership with 
                industry, technologies, designs, and production methods 
                that will enable an average 25 percent increase by 2010 
                in the energy efficiency of all new buildings, as 
                compared to a new building in 1996.
                  (B) Industry.--Develop, in partnership with industry, 
                technologies, designs, and production methods that will 
                enable the energy intensity of the major energy-
                consuming industries to improve by at least 25 percent 
                by 2010 as compared to 1991.
                  (C) Vehicles.--Develop, in partnership with industry, 
                technologies that will enable--
                          (i) by 2010, mid-sized passenger automobiles 
                        with a fuel economy of 80 miles per gallon;
                          (ii) by 2010, light trucks (classes 1 and 2a) 
                        with a fuel economy of 60 miles per gallon;
                          (iii) by 2010, medium trucks and buses 
                        (classes 2b through 6 and class 8 transit 
                        buses) with a fuel economy, in ton-miles per 
                        gallon for trucks and passenger miles per 
                        gallon for buses, that is 3 times that of year 
                        2000 equivalent vehicles;
                          (iv) by 2010, heavy trucks (classes 7 and 8) 
                        with a fuel economy, in ton-miles per gallon, 
                        that is 2 times that of year 2000 equivalent 
                        vehicles; and
                          (v) by 2020, meeting the goal described in 
                        section 103(a)(2) of the Spark M. Matsunaga 
                        Hydrogen Research, Development, and 
                        Demonstration Act of 1990.
          (2) Distributed energy and electric energy systems.--
                  (A) Distributed generation.--Develop, in partnership 
                with industry, technologies based on natural gas that 
                achieve electricity generating efficiencies greater 
                than 40 percent by 2015 for on-site, or distributed, 
                generation technologies.
                  (B) Electric energy systems and storage.--Develop, in 
                partnership with industry--
                          (i) technologies for generators and 
                        transmission, distribution, and storage systems 
                        that combine high capacity with high efficiency 
                        (particularly for electric transmission 
                        facilities in rural and remote areas);
                          (ii) new transmission and distribution 
                        technologies, including flexible alternating 
                        current transmission systems, composite 
                        conductor materials, advanced protection 
                        devices, and controllers;
                          (iii) technologies for interconnection of 
                        distributed energy resources with electric 
                        power systems;
                          (iv) high-temperature superconducting 
                        materials for power delivery equipment such as 
                        transmission and distribution cables, 
                        transformers, and generators; and
                          (v) real-time transmission and distribution 
                        system control technologies that provide for 
                        continual exchange of information between 
                        generation, transmission, distribution, and 
                        end-user facilities.
          (3) Renewable energy.--
                  (A) Wind power.--Develop, in partnership with 
                industry, technologies and designs that will--
                          (i) reduce the cost of wind power by 40 
                        percent by 2012 as compared to 2000; and
                          (ii) expand utilization of class 3 and 4 
                        winds.
                  (B) Photovoltaics.--Develop, in partnership with 
                industry, total photovoltaic systems with installed 
                costs of $5,000 per peak kilowatt by 2005 and $2000 per 
                peak kilowatt by 2015.
                  (C) Solar thermal systems.--Develop, in partnership 
                with industry, solar power technologies (including 
                baseload solar power) that combine high-efficiency and 
                high-temperature receivers with advanced thermal 
                storage and power cycles to accommodate peak loads and 
                reduce lifecycle costs.
                  (D) Geothermal energy.--Develop, in partnership with 
                industry, technologies and processes based on advanced 
                hydrothermal systems and advanced heat and power 
                systems, including geothermal or ground source heat 
                pump technology, with a specific focus on--
                          (i) improving exploration and 
                        characterization technology to increase the 
                        probability of drilling successful wells from 
                        20 percent to 40 percent by 2010;
                          (ii) reducing the cost of drilling by 2008 to 
                        an average cost of $225 per foot;
                          (iii) developing enhanced geothermal systems 
                        technology with the potential to double the 
                        usable geothermal resource base, as compared to 
                        the date of enactment of this Act; and
                          (iv) reducing the cost of installing the 
                        ground loop of ground-source heat pumps by 30 
                        percent by 2007 compared to the cost in 2000.
                  (E) Biomass-based power systems.--Develop, in 
                partnership with industry, integrated power generating 
                systems, advanced conversion, and feedstock 
                technologies capable of producing electric power that 
                is cost-competitive with fossil-fuel generated 
                electricity by 2010, through co-production of fuels, 
                chemicals, and other products under subparagraph (F).
                  (F) Biofuels.--Develop, in partnership with industry, 
                new and emerging technologies and biotechnology 
                processes capable of making--
                          (i) gaseous and liquid biofuels that are 
                        price-competitive, by 2010, with gasoline or 
                        diesel in either internal combustion engines or 
                        fuel cells; and
                          (ii) biofuels, biobased polymers, and 
                        chemicals, including those derived from 
                        lignocellulosic feedstock, with particular 
                        emphasis on developing biorefineries that use 
                        enzyme-based processing systems.
                  (G) Hydropower.--Develop, in partnership with 
                industry, a new generation of turbine technologies that 
                will increase generating capacity and be less damaging 
                to fish and aquatic ecosystems.
          (4) Fossil energy.--
                  (A) Power generation.--Develop, in partnership with 
                industry, technologies, including precombustion 
                technologies, by 2015 with the capability of 
                realizing--
                          (i) electricity generating efficiencies of 75 
                        percent (lower heating value) for natural gas; 
                        and
                          (ii) widespread commercial application of 
                        combined heat and power with thermal 
                        efficiencies of more than 85 percent (higher 
                        heating value).
                  (B) Offshore oil and gas resources.--Develop, in 
                partnership with industry, technologies to--
                          (i) extract methane hydrates in coastal 
                        waters of the United States; and
                          (ii) develop natural gas and oil reserves in 
                        the ultra-deepwater of the Central and Western 
                        Gulf of Mexico, with a focus on improving, 
                        while lowering costs and reducing environmental 
                        impacts, the safety and efficiency of--
                                  (I) the recovery of ultra-deepwater 
                                resources; and
                                  (II) sub-sea production technology 
                                used for such recovery.
                  (C) Onshore oil and gas resources.--Advance the 
                science and technology available to domestic onshore 
                petroleum producers, particularly independent producers 
                of oil or gas, through--
                          (i) advances in technology for exploration 
                        and production of domestic petroleum resources, 
                        particularly those not accessible with current 
                        technology;
                          (ii) improvement in the ability to extract 
                        hydrocarbons (including heavy oil) from known 
                        reservoirs and classes of reservoirs; and
                          (iii) development of technologies and 
                        practices that reduce the impact on the 
                        environment from petroleum exploration and 
                        production.
                  (D) Transportation fuels.--Increase the availability 
                of transportation fuels by focusing research on--
                          (i) reducing the cost of producing 
                        transportation fuels from coal and natural gas; 
                        and
                          (ii) indirect liquefaction of coal and 
                        biomass.
          (5) Nuclear energy.--
                  (A) Existing reactors.--Support research to extend 
                the lifetimes of existing United States nuclear power 
                reactors, and increase their reliability while 
                optimizing their current operations for greater 
                efficiencies.
                  (B) Advanced reactors.--Develop, in partnership with 
                industry--
                          (i) advanced, efficient, lower cost, and 
                        passively safe reactor designs;
                          (ii) proliferation-resistant and high-burn-up 
                        nuclear fuels; and
                          (iii) technologies to minimize generation of 
                        radioactive materials and improve the 
                        management of nuclear waste.
                  (C) Nuclear scientists and engineers.--Attract new 
                students and faculty to the nuclear sciences, nuclear 
                engineering, and related fields (including health 
                physics, nuclear medicine, nuclear chemistry, and 
                radiochemistry).
          (6) Hydrogen.--Carry out the Spark M. Matsunaga Hydrogen 
        Research, Development, and Demonstration Act of 1990.
  (b) Review and Assessment of Goals.--
          (1) Evaluation and modification.--Based on amounts 
        appropriated and developments in science and technology, the 
        Secretary shall evaluate the goals set forth in subsection (a) 
        at least once every 5 years, and shall report to the Congress 
        any proposed modifications to the goals.
          (2) Consultation.--In evaluating and proposing modifications 
        to the goals as provided in paragraph (1), the Secretary shall 
        solicit public input.
          (3) Public comment.--(A) After consultation under paragraph 
        (2), the Secretary shall publish in the Federal Register a set 
        of draft modifications to the goals for public comment.
          (B) Not later than 60 days after the date of publication of 
        draft modifications under subparagraph (A), and after 
        consideration of any public comments received, the Secretary 
        shall publish the final modifications, including a summary of 
        the public comments received, in the Federal Register.
          (4) Effective date.--No modification to goals under this 
        section shall take effect before the date which is 5 years 
        after the date of enactment of this Act.
  (c) Effect of Goals.--(1) Nothing in paragraphs (1) through (6) of 
subsection (a), or any subsequent modification to the goals therein 
pursuant to subsection (b), 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) 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. 4. DEFINITIONS.

  For purposes of this Act:
          (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) Independent producer of oil or gas.--
                  (A) In general.--The term ``independent producer of 
                oil or gas'' means any person who 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.
          (4) 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)).
          (5) Joint venture.--The term ``joint venture'' has the 
        meaning given that term under section 2 of the National 
        Cooperative Research and Production Act of 1993 (15 U.S.C. 
        4301).
          (6) National laboratory.--The term ``National Laboratory'' 
        means any of the following laboratories owned by the 
        Department:
                  (A) Ames National Laboratory.
                  (B) Argonne National Laboratory.
                  (C) Brookhaven National Laboratory.
                  (D) Fermi National Laboratory.
                  (E) Idaho National Engineering and Environmental 
                Laboratory.
                  (F) Lawrence Berkeley National Laboratory.
                  (G) Lawrence Livermore National Laboratory.
                  (H) Los Alamos National Laboratory.
                  (I) National Energy Technology Laboratory.
                  (J) National Renewable Energy Laboratory.
                  (K) Oak Ridge National Laboratory.
                  (L) Pacific Northwest National Laboratory.
                  (M) Princeton Plasma Physics Laboratory.
                  (N) Sandia National Laboratories.
                  (O) Thomas Jefferson National Accelerator Facility.
          (7) Nonmilitary energy laboratory.--The term ``nonmilitary 
        energy laboratory'' means any of the following laboratories of 
        the Department:
                  (A) Ames National Laboratory.
                  (B) Argonne National Laboratory.
                  (C) Brookhaven National Laboratory.
                  (D) Fermi National Laboratory.
                  (E) Lawrence Berkeley National Laboratory.
                  (F) Oak Ridge National Laboratory.
                  (G) Pacific Northwest National Laboratory.
                  (H) Princeton Plasma Physics Laboratory.
                  (I) Stanford Linear Accelerator Center.
                  (J) Thomas Jefferson National Accelerator Facility.
          (8) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (9) Single-purpose research facility.--The term ``single-
        purpose research facility'' means any of the following 
        primarily single-purpose entities owned by the Department:
                  (A) East Tennessee Technology Park.
                  (B) Fernald Environmental Management Project.
                  (C) Kansas City Plant.
                  (D) Nevada Test Site.
                  (E) New Brunswick Laboratory.
                  (F) Pantex Weapons Facility.
                  (G) Savannah River Technology Center.
                  (H) Stanford Linear Accelerator Center.
                  (I) Y-12 facility at Oak Ridge National Laboratory.
                  (J) Waste Isolation Pilot Plant.
                  (K) Any other similar organization of the Department 
                designated by the Secretary that engages in technology 
                transfer, partnering, or licensing activities.

                   TITLE I--RESEARCH AND DEVELOPMENT

                     Subtitle A--Energy Efficiency

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 104. 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.
  (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) Lighting systems.--For activities under section 105, 
        $50,000,000 for each of fiscal years 2004 through 2007.
          (2) Electric motor control technology.--For activities under 
        section 106A, $2,000,000 for each of fiscal years 2004 through 
        2007.
          (3) Secondary electric vehicle battery use program.--For 
        activities under section 108--
                  (A) for fiscal year 2004, $4,000,000;
                  (B) for fiscal year 2005, $7,000,000;
                  (C) for fiscal year 2006, $7,000,000; and
                  (D) for fiscal year 2007, $7,000,000.
          (4) Energy efficiency science initiative.--For activities 
        under section 110--
                  (A) for fiscal year 2004, $20,000,000;
                  (B) for fiscal year 2005, $25,000,000;
                  (C) for fiscal year 2006, $30,000,000; and
                  (D) for fiscal year 2007, $35,000,000.
  (c) Extended Authorization.--There are authorized to be appropriated 
to the Secretary for activities under section 105, $50,000,000 for each 
of fiscal years 2008 through 2012.
  (d) Limits on Use of Funds.--None of the funds authorized to be 
appropriated under this section may be used for--
          (1) the promulgation and implementation of energy efficiency 
        regulations;
          (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act;
          (3) the State Energy Program under part D of title III of the 
        Energy Policy and Conservation Act; or
          (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act.

                        PART 2--LIGHTING SYSTEMS

SEC. 105. 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--
          (1) to develop, by 2012, advanced solid-state lighting 
        technologies based on white light emitting diodes that, 
        compared to incandescent and fluorescent lighting technologies, 
        are--
                  (A) longer lasting;
                  (B) more energy-efficient; and
                  (C) cost-competitive;
          (2) to develop an inorganic white light emitting diode that 
        has an efficiency of 160 lumens per watt and a 10-year 
        lifetime; and
          (3) to develop an organic white light emitting diode with an 
        efficiency of 100 lumens per watt with a 5-year lifetime that--
                  (A) illuminates over a full color spectrum;
                  (B) covers large areas over flexible surfaces; and
                  (C) does not contain harmful pollutants, such as 
                mercury, typical of fluorescent lamps.
  (c) Fundamental Research.--
          (1) Consortium.--The Secretary shall carry out the 
        fundamental research activities of the Next Generation Lighting 
        Initiative through a private consortium (which may include 
        private firms, trade associations and institutions of higher 
        education), which the Secretary shall select through a 
        competitive process. Each proposed consortium shall submit to 
        the Secretary such information as the Secretary may require, 
        including a program plan agreed to by all participants of the 
        consortium.
          (2) Joint venture.--The consortium shall be structured as a 
        joint venture among the participants of the consortium. The 
        Secretary shall serve on the governing council of the 
        consortium.
          (3) Eligibility.--To be eligible to be selected as the 
        consortium under paragraph (1), an applicant must be broadly 
        representative of United States solid-state lighting research, 
        development, and manufacturing expertise as a whole.
          (4) Grants.--(A) The Secretary shall award grants for 
        fundamental research to the consortium, which the consortium 
        may disburse to researchers, including those who are not 
        participants of the consortium.
          (B) To receive a grant, the consortium must provide a 
        description to the Secretary of the proposed research and list 
        the parties that will receive funding.
          (C) Grants shall be matched by the consortium pursuant to 
        section 185.
          (5) National laboratories.--National Laboratories may 
        participate in the research described in this section, and may 
        receive funds from the consortium.
          (6) Intellectual property.--Participants in the consortium 
        and the Federal Government shall have royalty-free nonexclusive 
        rights to use intellectual property derived from research 
        funded pursuant to this subsection.
  (d) Development, Demonstration, and Commercial Application.--The 
Secretary shall carry out the development, demonstration, and 
commercial application activities of the Next Generation Lighting 
Initiative through awards to private firms, trade associations, and 
institutions of higher education. In selecting awardees, the Secretary 
may give preference to members of the consortium selected pursuant to 
subsection (c).
  (e) Plans and Assessments.--(1) The consortium shall formulate an 
annual operating plan which shall include research priorities, 
technical milestones, and plans for technology transfer, and which 
shall be subject to approval by the Secretary.
  (2) The Secretary shall enter into an arrangement with the National 
Academy of Sciences to conduct periodic reviews of the Next Generation 
Lighting Initiative. The Academy shall review the research priorities, 
technical milestones, and plans for technology transfer established 
under paragraph (1) and evaluate the progress toward achieving them. 
The Secretary shall consider the results of such reviews in evaluating 
the plans submitted under paragraph (1).
  (f) Audit.--The Secretary shall retain an independent, commercial 
auditor to perform an audit of the consortium to determine the extent 
to which the funds authorized by this section have been expended in a 
manner consistent with the purposes of this section. The auditor shall 
transmit a report annually to the Secretary, who shall transmit the 
report to the Congress, along with a plan to remedy any deficiencies 
cited in the report.
  (g) Sunset.--The Next Generation Lighting Initiative shall terminate 
no later than September 30, 2013.
  (h) Definitions.--As used in this section:
          (1) Advanced solid-state lighting.--The term ``advanced 
        solid-state lighting'' means a semiconducting device package 
        and delivery system that produces white light using externally 
        applied voltage.
          (2) Fundamental research.--The term ``fundamental research'' 
        includes basic research on both solid-state materials and 
        manufacturing processes.
          (3) Inorganic white light emitting diode.--The term 
        ``inorganic white light emitting diode'' means an inorganic 
        semiconducting package that produces white light using 
        externally applied voltage.
          (4) Organic white light emitting diode.--The term ``organic 
        white light emitting diode'' means an organic semiconducting 
        compound that produces white light using externally applied 
        voltage.

                           PART 3--BUILDINGS

SEC. 106. NATIONAL BUILDING PERFORMANCE INITIATIVE.

  (a) Interagency Group.--Not later than 3 months 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 
cochaired 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 be 
based on whole building principles and 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 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. 106A. 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.

                            PART 4--VEHICLES

SEC. 107. DEFINITIONS.

  For purposes of this part, the term--
          (1) ``battery'' means an energy storage device that 
        previously has been used to provide motive power in a vehicle 
        powered in whole or in part by electricity; and
          (2) ``associated equipment'' means equipment located where 
        the batteries will be used that is necessary to enable the use 
        of the energy stored in the batteries.

SEC. 108. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE 
                    PROGRAM.

  (a) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries. Such program shall be--
          (1) designed to demonstrate the use of batteries in secondary 
        application, including utility and commercial power storage and 
        power quality;
          (2) structured to evaluate the performance, including useful 
        service life and costs, of such batteries in field operations, 
        and evaluate the necessary supporting infrastructure, including 
        reuse and disposal of batteries; and
          (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
  (b) Solicitation.--(1) Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall solicit proposals to 
demonstrate the secondary use of batteries and associated equipment and 
supporting infrastructure in geographic locations throughout the United 
States. The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary to 
carry out this section.
  (2)(A) Proposals submitted in response to a solicitation under this 
section shall include--
          (i) a description of the project, including the batteries to 
        be used in the project, the proposed locations and applications 
        for the batteries, the number of batteries to be demonstrated, 
        and the type, characteristics, and estimated life-cycle costs 
        of the batteries compared to other energy storage devices 
        currently used;
          (ii) the contribution, if any, of State or local governments 
        and other persons to the demonstration project;
          (iii) the type of associated equipment and supporting 
        infrastructure to be demonstrated; and
          (iv) any other information the Secretary considers 
        appropriate.
  (B) If the proposal includes a lease arrangement, the proposal shall 
indicate the terms of such lease arrangement for the batteries and 
associated equipment.
  (c) Selection of Proposals.--(1)(A) The Secretary shall, not later 
than 3 months after the closing date established by the Secretary for 
receipt of proposals under subsection (b), select at least 5 proposals 
to receive financial assistance under this section.
  (B) No one project selected under this section shall receive more 
than 25 percent of the funds authorized under this section. No more 
than 3 projects selected under this section shall demonstrate the same 
battery type.
  (2) In selecting a proposal under this section, the Secretary shall 
consider--
          (A) the ability of the proposer to acquire the batteries and 
        associated equipment and to successfully manage and conduct the 
        demonstration project, including satisfying the reporting 
        requirements set forth in paragraph (3)(B);
          (B) the geographic and climatic diversity of the projects 
        selected;
          (C) the long-term technical and competitive viability of the 
        batteries to be used in the project and of the original 
        manufacturer of such batteries;
          (D) the suitability of the batteries for their intended uses;
          (E) the technical performance of the batteries, including the 
        expected additional useful life and the batteries' ability to 
        retain energy;
          (F) the environmental effects of the use of and disposal of 
        the batteries proposed to be used in the project selected;
          (G) the extent of involvement of State or local government 
        and other persons in the demonstration project and whether such 
        involvement will--
                  (i) permit a reduction of the Federal cost share per 
                project; or
                  (ii) otherwise be used to allow the Federal 
                contribution to be provided to demonstrate a greater 
                number of batteries; and
          (H) such other criteria as the Secretary considers 
        appropriate.
  (3) Conditions.--The Secretary shall require that--
          (A) as a part of a demonstration project, the users of the 
        batteries provide to the proposer information regarding the 
        operation, maintenance, performance, and use of the batteries, 
        and the proposer provide such information to the battery 
        manufacturer, for 3 years after the beginning of the 
        demonstration project;
          (B) the proposer provide to the Secretary such information 
        regarding the operation, maintenance, performance, and use of 
        the batteries as the Secretary may request;
          (C) the proposer provide to the Secretary such information 
        regarding the disposal of the batteries as the Secretary may 
        require to ensure that the proposer disposes of the batteries 
        in accordance with applicable law; and
          (D) the proposer provide at least 50 percent of the costs 
        associated with the proposal.

              PART 5--ENERGY EFFICIENCY SCIENCE INITIATIVE

SEC. 110. 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 the 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.

          PART 6--ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS

SEC. 110A. ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS.

  (a) Grants.--Not later than 18 months after the date of the enactment 
of this Act, the Secretary shall make grants to nonprofit institutions, 
State and local governments, or universities (or consortia thereof), to 
establish a nationwide network of at least 10 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) 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) 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) 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) the term ``Center'' means an Advanced Energy Technology 
        Transfer Center established pursuant to this section; and
          (3) 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

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 111. 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.
  (b) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (a), the following sums shall be available for 
activities under section 114:
          (1) For fiscal year 2004, $5,000,000.
          (2) For fiscal year 2005, $5,500,000.
          (3) For fiscal year 2006, $6,000,000.
          (4) For fiscal year 2007, $6,500,000.

SEC. 111A. DEMONSTRATION AND FIELD TEST.

  The Secretary shall conduct a demonstration and field test of 
distributed generation systems. Such test shall be conducted in both 
geographically concentrated and dispersed regions and shall define the 
full range of communications and control system needs in distributed 
generation systems. This test should be used to identify future 
research priorities and the scale-up challenges necessary to meet the 
Department's goals for distributed energy over the next 10 years.

                       PART 2--DISTRIBUTED POWER

SEC. 112. STRATEGY.

  (a) Requirement.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop and transmit to the Congress a 
strategy for a comprehensive research, development, demonstration, and 
commercial application program to develop hybrid distributed power 
systems that combine--
          (1) one or more renewable electric power generation 
        technologies of 10 megawatts or less located near the site of 
        electric energy use; and
          (2) nonintermittent electric power generation technologies 
        suitable for use in a distributed power system.
  (b) Contents.--The strategy shall--
          (1) identify the needs best met with such hybrid distributed 
        power systems and the technological barriers to the use of such 
        systems;
          (2) provide for the development of methods to design, test, 
        integrate into systems, and operate such hybrid distributed 
        power systems;
          (3) include, as appropriate, 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 
        of Energy related to electric power technologies.

SEC. 113. 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. 114. MICRO-COGENERATION ENERGY TECHNOLOGY.

  The Secretary shall make competitive, merit-based grants to consortia 
for the development of micro-cogeneration energy technology. The 
consortia shall explore the use of small-scale combined heat and power 
in residential heating appliances.

                      PART 3--TRANSMISSION SYSTEMS

SEC. 115. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, DEVELOPMENT, 
                    DEMONSTRATION, AND COMMERCIAL APPLICATION.

  (a) Program Authorized.--The Secretary shall develop and implement a 
comprehensive research, development, demonstration, and commercial 
application program to promote improved reliability and efficiency of 
electrical transmission systems. Such program may include--
          (1) advanced energy technologies, materials, and systems;
          (2) advanced grid reliability and efficiency technology 
        development;
          (3) technologies contributing to significant load reductions;
          (4) advanced metering, load management, and control 
        technologies;
          (5) technologies to enhance existing grid components;
          (6) the development and use of high-temperature 
        superconductors to--
                  (A) enhance the reliability, operational flexibility, 
                or power-carrying capability of electric transmission 
                or distribution systems; or
                  (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
          (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
          (8) any other infrastructure technologies, as appropriate; 
        and
          (9) technology transfer and education.
  (b) Program Plan.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary, in consultation with other 
appropriate Federal agencies, shall prepare and transmit to Congress a 
5-year program plan to guide activities under this section. In 
preparing the program plan, the Secretary shall consult with utilities, 
energy services providers, manufacturers, institutions of higher 
education, other appropriate State and local agencies, environmental 
organizations, professional and technical societies, and any other 
persons the Secretary considers appropriate.
  (c) Report.--Not later than 2 years after the transmittal of the plan 
under subsection (b), the Secretary shall transmit a report to Congress 
describing the progress made under this section and identifying any 
additional resources needed to continue the development and commercial 
application of transmission infrastructure technologies.

                       PART 4--GENERAL PROVISIONS

SEC. 116. DEFINITIONS.

  For purposes of this subtitle--
          (1) the term ``hybrid distributed power system'' means a 
        system using 2 or more distributed power sources, operated 
        together with associated supporting equipment, including 
        storage equipment, and software necessary to provide electric 
        power onsite and to an electric distribution system; and
          (2) the term ``distributed power source'' means an 
        independent electric energy source of usually 10 megawatts or 
        less located close to a residential, commercial, or industrial 
        load center, including--
                  (A) reciprocating engines;
                  (B) turbines;
                  (C) microturbines;
                  (D) fuel cells;
                  (E) solar electric systems;
                  (F) wind energy systems;
                  (G) biopower systems;
                  (H) geothermal power systems; or
                  (I) combined heat and power systems.

SEC. 117. VOLUNTARY CONSENSUS STANDARDS.

  In a manner consistent with the National Technology Transfer 
Advancement Act, the Secretary, in consultation with the National 
Institute of Standards and Technology, shall work with the Institute of 
Electrical and Electronic Engineers and other standards development 
organizations to take all appropriate steps toward the development, 
promulgation, and implementation of voluntary consensus standards for 
distributed energy systems for use in manufacturing and using equipment 
and systems for connection with electric distribution systems, for 
obtaining electricity from, or providing electricity to, such systems.

                      Subtitle C--Renewable Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 121. 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, $380,000,000.
          (2) For fiscal year 2005, $420,000,000.
          (3) For fiscal year 2006, $460,000,000.
          (4) For fiscal year 2007, $499,000,000.
  (b) Bioenergy.--From the amounts authorized under subsection (a), the 
following sums are authorized to be appropriated to carry out section 
122 and section 176:
          (1) For fiscal year 2004, $135,425,000.
          (2) For fiscal year 2005, $155,600,000.
          (3) For fiscal year 2006, $167,650,000.
          (4) For fiscal year 2007, $180,000,000.
  (c) Public Buildings.--From the amounts authorized under subsection 
(a), $30,000,000 for each of the fiscal years 2004 through 2007 are 
authorized to be appropriated to carry out section 127.
  (d) Limits on Use of Funds.--
          (1) Exclusion.--None of the funds authorized to be 
        appropriated under this section may be used for Renewable 
        Support and Implementation.
          (2) Bioenergy.--Of the funds authorized under subsection (b), 
        not less than $5,000,000 for each fiscal year shall be made 
        available for grants to Historically Black Colleges and 
        Universities, Tribal Colleges, and Hispanic-Serving 
        Institutions.
          (3) Rural and remote locations.--In carrying out this 
        section, the Secretary, in consultation with the Secretary of 
        Agriculture, shall demonstrate the use of advanced wind power 
        technology, biomass, geothermal energy systems, and other 
        renewable energy technologies to assist in delivering 
        electricity to rural and remote locations.
          (4) Regional field verification.--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.

                           PART 2--BIOENERGY

SEC. 122. BIOENERGY PROGRAMS.

  The Secretary shall conduct a program of research, development, 
demonstration, and commercial application for bioenergy, including--
          (1) biopower energy systems;
          (2) biofuels;
          (3) integrated applications of both biopower and biofuels;
          (4) cross-cutting research and development in feedstocks; and
          (5) economic analysis.

                     PART 3--MISCELLANEOUS PROJECTS

SEC. 126. MISCELLANEOUS PROJECTS.

  (a) Programs.--The Secretary shall conduct research, development, 
demonstration, and commercial application programs for--
          (1) ocean energy, including wave energy;
          (2) the combined use of renewable energy technologies with 
        one another and with other energy technologies, including the 
        combined use of wind power and coal gasification technologies; 
        and
          (3) hydrogen carrier fuels.
  (b) Study.--(1) The Secretary shall enter into an arrangement with 
the National Academy of Sciences to conduct a study on--
          (A) the feasibility of various methods of renewable 
        generation of energy from the ocean, including energy from 
        waves, tides, currents, and thermal gradients; and
          (B) the research, development, demonstration, and commercial 
        application activities required to make marine renewable energy 
        generation competitive with other forms of electricity 
        generation.
  (2) Not later than 1 year after the date of the enactment of this 
Act, the Secretary shall transmit the study to the Congress along with 
the Secretary's recommendations for implementing the results of the 
study.

SEC. 127. 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.

                       Subtitle D--Nuclear Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 131. NUCLEAR ENERGY.

  (a) In General.--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:
          (1) For fiscal year 2004, $388,000,000.
          (2) For fiscal year 2005, $416,000,000.
          (3) For fiscal year 2006, $445,000,000.
          (4) For fiscal year 2007, $474,000,000.
  (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) Nuclear infrastructure support.--For activities under 
        section 132(f)--
                  (A) for fiscal year 2004, $125,000,000;
                  (B) for fiscal year 2005, $130,000,000;
                  (C) for fiscal year 2006, $135,000,000; and
                  (D) for fiscal year 2007, $140,000,000.
          (2) Advanced fuel recycling program.--For activities under 
        section 133--
                  (A) for fiscal year 2004, $80,000,000;
                  (B) for fiscal year 2005, $93,000,000;
                  (C) for fiscal year 2006, $106,000,000; and
                  (D) for fiscal year 2007, $120,000,000.
          (3) University programs.--For activities under section 134--
                  (A) for fiscal year 2004, $35,200,000, of which--
                          (i) $3,000,000 shall be for activities under 
                        subsection (b)(1) of that section;
                          (ii) $4,275,000 shall be for activities under 
                        subsection (b)(2) of that section;
                          (iii) $8,000,000 shall be for activities 
                        under subsection (b)(3) of that section;
                          (iv) $500,000 shall be for activities under 
                        subsection (b)(5) of that section;
                          (v) $7,000,000 shall be for activities under 
                        subsection (c)(1) of that section;
                          (vi) $700,000 shall be for activities under 
                        subsection (c)(2) of that section;
                          (vii) $10,000,000 shall be for activities 
                        under subsection (c)(3) of that section;
                          (viii) $1,000,000 shall be for activities 
                        under subsection (d)(1) of that section; and
                          (ix) $725,000 shall be for activities under 
                        subsection (d)(2) of that section;
                  (B) for fiscal year 2005, $44,350,000, of which--
                          (i) $3,100,000 shall be for activities under 
                        subsection (b)(1) of that section;
                          (ii) $6,275,000 shall be for activities under 
                        subsection (b)(2) of that section;
                          (iii) $12,000,000 shall be for activities 
                        under subsection (b)(3) of that section;
                          (iv) $550,000 shall be for activities under 
                        subsection (b)(5) of that section;
                          (v) $7,500,000 shall be for activities under 
                        subsection (c)(1) of that section;
                          (vi) $1,100,000 shall be for activities under 
                        subsection (c)(2) of that section;
                          (vii) $12,000,000 shall be for activities 
                        under subsection (c)(3) of that section;
                          (viii) $1,100,000 shall be for activities 
                        under subsection (d)(1) of that section; and
                          (ix) $725,000 shall be for activities under 
                        subsection (d)(2) of that section;
                  (C) for fiscal year 2006, $49,200,000, of which--
                          (i) $3,200,000 shall be for activities under 
                        subsection (b)(1) of that section;
                          (ii) $7,150,000 shall be for activities under 
                        subsection (b)(2) of that section;
                          (iii) $13,000,000 shall be for activities 
                        under subsection (b)(3) of that section;
                          (iv) $600,000 shall be for activities under 
                        subsection (b)(5) of that section;
                          (v) $8,000,000 shall be for activities under 
                        subsection (c)(1) of that section;
                          (vi) $1,200,000 shall be for activities under 
                        subsection (c)(2) of that section;
                          (vii) $14,000,000 shall be for activities 
                        under subsection (c)(3) of that section;
                          (viii) $1,200,000 shall be for activities 
                        under subsection (d)(1) of that section; and
                          (ix) $850,000 shall be for activities under 
                        subsection (d)(2) of that section; and
                  (D) for fiscal year 2007, $54,950,000, of which--
                          (i) $3,200,000 shall be for activities under 
                        subsection (b)(1) of that section;
                          (ii) $8,150,000 shall be for activities under 
                        subsection (b)(2) of that section;
                          (iii) $15,000,000 shall be for activities 
                        under subsection (b)(3) of that section;
                          (iv) $650,000 shall be for activities under 
                        subsection (b)(5) of that section;
                          (v) $8,500,000 shall be for activities under 
                        subsection (c)(1); of that section;
                          (vi) $1,300,000 shall be for activities under 
                        subsection (c)(2) of that section;
                          (vii) $16,000,000 shall be for activities 
                        under subsection (c)(3) of that section;
                          (viii) $1,300,000 shall be for activities 
                        under subsection (d)(1) of that section; and
                          (ix) $850,000 shall be for activities under 
                        subsection (d)(2) of that section.
          (4) Geological isolation of spent fuel.--For activities under 
        section 135--
                  (A) for fiscal year 2004, $7,000,000;
                  (B) for fiscal year 2005, $8,000,000;
                  (C) for fiscal year 2006, $9,000,000; and
                  (D) for fiscal year 2007, $10,000,000.
  (c) Limit on Use of Funds.--None of the funds authorized under this 
section may be used for decommissioning the Fast Flux Test Facility.

                PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 132. NUCLEAR ENERGY RESEARCH PROGRAMS.

  (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
  (b) Nuclear Energy Plant Optimization Program.--The Secretary shall 
carry out a Nuclear Energy Plant Optimization Program to support 
research and development activities addressing reliability, 
availability, productivity, and component aging in existing nuclear 
power plants.
  (c) Nuclear Power 2010 Program.--The Secretary shall carry out a 
Nuclear Power 2010 Program, consistent with recommendations in the 
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010'' issued by the Nuclear Energy 
Research Advisory Committee of the Department. The Program shall--
          (1) rely on the expertise and capabilities of the National 
        Laboratories in the areas of advanced nuclear fuels cycles and 
        fuels testing;
          (2) pursue an approach that considers a variety of reactor 
        designs;
          (3) include participation of international collaborators in 
        research, development, and design efforts as appropriate; and
          (4) encourage industry participation.
  (d) Generation IV Nuclear Energy Systems Initiative.--The Secretary 
shall carry out a Generation IV Nuclear Energy Systems Initiative to 
develop an overall technology plan and to support research and 
development necessary to make an informed technical decision about the 
most promising candidates for eventual commercial application. The 
Initiative shall examine advanced proliferation-resistant and passively 
safe reactor designs, including designs that--
          (1) are economically competitive with other electric power 
        generation plants;
          (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
          (3) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
          (4) utilize improved instrumentation.
  (e) Nuclear Production of Hydrogen.--Pursuant to the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 
1990, as amended by subtitle H of this Act, the Secretary shall carry 
out a program of research, development, demonstration, and commercial 
application on various approaches to nuclear production of hydrogen.
  (f) Nuclear Infrastructure Support.--The Secretary shall develop and 
implement a strategy for the facilities of the Office of Nuclear 
Energy, Science, and Technology and shall transmit a report containing 
the strategy along with the President's budget request to the Congress 
for fiscal year 2005. Such strategy shall provide a cost-effective 
means for--
          (1) maintaining existing facilities and infrastructure, as 
        needed;
          (2) closing unneeded facilities;
          (3) making facility upgrades and modifications; and
          (4) building new facilities.

                    PART 3--ADVANCED FUEL RECYCLING

SEC. 133. ADVANCED FUEL RECYCLING PROGRAM.

  (a) In General.--The Secretary, through the Director of the Office of 
Nuclear Energy, Science and Technology, shall conduct an advanced fuel 
recycling technology research and development program to evaluate 
proliferation-resistant fuel recycling and transmutation technologies 
which minimize environmental or public health and safety impacts as an 
alternative to aqueous reprocessing technologies deployed as of the 
date of enactment of this Act in support of evaluation of alternative 
national strategies for spent nuclear fuel and the Generation IV 
advanced reactor concepts, subject to annual review by the Secretary's 
Nuclear Energy Research Advisory Committee or other independent entity, 
as appropriate. Opportunities to enhance progress of this program 
through international cooperation should be sought.
  (b) Reports.--The Secretary shall report on the activities of the 
advanced fuel recycling technology research and development program, as 
part of the Department's annual budget submission.

                      PART 4--UNIVERSITY PROGRAMS

SEC. 134. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

  (a) Establishment.--The Secretary shall support a program to invest 
in human resources and infrastructure in the nuclear sciences and 
engineering and related fields (including health physics and nuclear 
and radiochemistry), consistent with departmental missions related to 
civilian nuclear research and development.
  (b) Duties.--In carrying out the program under this section, the 
Secretary shall--
          (1) establish a graduate and undergraduate fellowship program 
        to attract new and talented students;
          (2) establish a Junior Faculty Research Initiation Grant 
        Program to assist institutions of higher education in 
        recruiting and retaining new faculty in the nuclear sciences 
        and engineering;
          (3) support fundamental nuclear sciences and engineering 
        research through the Nuclear Engineering Education Research 
        Program;
          (4) encourage collaborative nuclear research among industry, 
        National Laboratories, and institutions of higher education 
        through the Nuclear Energy Research Initiative; and
          (5) support communication and outreach related to nuclear 
        science and engineering.
  (c) Strengthening University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include--
          (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels, upgrading operational 
        instrumentation, and sharing of reactors among institutions of 
        higher education;
          (2) providing technical assistance, in collaboration with the 
        United States nuclear industry, in relicensing and upgrading 
        training reactors as part of a student training program; and
          (3) providing funding, 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--
          (1) a sabbatical fellowship program for professors at 
        institutions of higher education to spend extended periods of 
        time at National Laboratories in the areas of nuclear science 
        and technology; and
          (2) a visiting scientist program in which National Laboratory 
        staff can spend time in academic nuclear science and 
        engineering departments.
The Secretary may provide fellowships for students to spend time at 
National Laboratories in the area of nuclear science with a member of 
the Laboratory staff acting as a mentor.
  (e) Operating and Maintenance Costs.--Funding for a research project 
provided under this section may be used to offset a portion of the 
operating and maintenance costs of a research reactor at an institution 
of higher education used in the research project.

               PART 5--GEOLOGICAL ISOLATION OF SPENT FUEL

SEC. 135. GEOLOGICAL ISOLATION OF SPENT FUEL.

  (a) In General.--The Secretary shall establish a program to determine 
the feasibility of deep borehole disposal of spent nuclear fuel and 
high-level radioactive waste. The program shall emphasize geological, 
chemical, and hydrological characterization of, and design of 
engineered structures for, deep borehole environments.
  (b) Plan.--Not later than 6 months after the date of enactment of 
this Act, the Secretary shall transmit to the Congress a plan for the 
program under this section, including milestones for achieving the 
purpose of the program.
  (c) Final Report.--Not later than 5 years after the date of enactment 
of this Act, the Secretary shall transmit to the Congress a final 
report on the findings of the program under this section.

                       Subtitle E--Fossil Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 141. 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, other than those 
described in subsection (b), including activities authorized under this 
subtitle but not including activities authorized under title V:
          (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.
No less than 60 percent of the amount appropriated for each fiscal year 
under this subsection shall be available for activities related to the 
coal research program under section 142(a).
  (b) Ultra-Deepwater and Unconventional Resources.--
          (1) Oil and gas lease income.--For each of fiscal years 2004 
        through 2010, from any 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 paragraph (2), 
        an amount equal to 7.5 percent of the amount of royalties, 
        rents, and bonuses derived from those leases deposited in the 
        Treasury shall be deposited into the Ultra-Deepwater and 
        Unconventional Natural Gas and Other Petroleum Research Fund 
        (in this subsection referred to as the Fund). For purposes of 
        this subsection, 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)). 
        Monies in the Fund shall be available to the Secretary for 
        obligation under part 3, without fiscal year limitation, to the 
        extent provided in advance in appropriations Acts.
          (2) Prior distributions.--The distributions described in 
        paragraph (1) 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)); and
                          (iii) the Historic Preservation Fund, 
                        pursuant to section 108 of the National 
                        Historic Preservation Act (16 U.S.C. 470h).
          (3) Allocation.--Amounts made available under this subsection 
        in each fiscal year shall be allocated as follows:
                  (A) 67.5 percent shall be for ultra-deepwater natural 
                gas and other petroleum activities under section 145;
                  (B) 22.5 percent shall be for unconventional natural 
                gas and other petroleum resource activities under 
                section 146; and
                  (C) 10 percent shall be for research complementary to 
                research under section 144(b)(1) through (3).
  (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) Fuel cell proton exchange membrane technology.--For 
        activities under section 142(c)(2), $28,000,000 for each of the 
        fiscal years 2004 through 2007.
          (2) Coal mining technologies.--For activities under section 
        143--
                  (A) for fiscal year 2004, $12,000,000; and
                  (B) for fiscal year 2005, $15,000,000.
          (3) Office of arctic energy.--For the Office of Arctic Energy 
        under section 3197 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (Public Law 106-398), 
        $25,000,000 for each of fiscal years 2004 through 2007.
  (d) 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 (Public Law 106-398), $25,000,000 for each of fiscal years 2008 
through 2011.
  (e) Limits on Use of Funds.--
          (1) Exclusions.--None of the funds authorized under this 
        section may be used for--
                  (A) Fossil Energy Environmental Restoration; or
                  (B) Import/Export Authorization.
          (2) University coal mining research.--Of the funds authorized 
        under subsection (c)(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.

                       PART 2--RESEARCH PROGRAMS

SEC. 142. FOSSIL ENERGY RESEARCH PROGRAMS.

  (a) Coal Research.--(1) In addition to the Clean Coal Power 
Initiative authorized under title V, the Secretary shall conduct a 
program of research, development, demonstration, and commercial 
application for coal and power systems, including--
          (A) central systems;
          (B) sequestration research and development;
          (C) fuels;
          (D) advanced research; and
          (E) advanced separation technologies.
  (2) Not later than 6 months after the date of enactment of this Act, 
the Secretary shall transmit to the Congress a report providing--
          (A) a detailed description of how proposals will be solicited 
        and evaluated;
          (B) a list of activities and technical milestones; and
          (C) a description of how these activities will complement and 
        not duplicate the Clean Coal Power Initiative authorized under 
        title V.
  (b) 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; and
          (7) environmental research.
  (c) Fuel Cells.--(1) In coordination with the programs described in 
the Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990, as amended by subtitle H of this Act, 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) The demonstrations shall include fuel cell proton exchange 
membrane technology for commercial, residential, and transportation 
applications, and distributed generation systems, utilizing improved 
manufacturing production and processes.
  (d) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of the enactment of this Act, and at 2-year intervals 
thereafter, the Secretary of the Interior, in consultation with other 
appropriate Federal agencies, shall transmit a report to the 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.
  (e) Technology Transfer.--To the maximum extent practicable, existing 
technology transfer mechanisms shall be used to implement oil and gas 
exploration and production technology transfer programs.

SEC. 143. 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 based on 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; and
          (2) expand mining research capabilities at institutions of 
        higher education.

   PART 3--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES

SEC. 144. 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 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.
          (2) Ultra-deepwater architecture.
          (3) Unconventional natural gas and other petroleum resource 
        exploration and production technology.
  (c) Limitation on Location of Field Activities.--Field activities 
under the program under this part shall be carried out only--
          (1) in--
                  (A) areas in the territorial waters of the United 
                States not under any Outer Continental Shelf moratorium 
                as of September 30, 2002;
                  (B) areas onshore in the United States on public land 
                administered by the Secretary of the Interior available 
                for oil and gas leasing, where consistent with 
                applicable law and land use plans; and
                  (C) areas onshore in the United States on State or 
                private land, subject to applicable law; and
          (2) with the approval of the appropriate Federal or State 
        land management agency or private land owner.
  (d) 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. 145. ULTRA-DEEPWATER PROGRAM.

  (a) In General.--The Secretary shall carry out the activities under 
paragraphs (1) and (2) of section 144(b), to maximize the value of the 
ultra-deepwater natural gas and other petroleum resources of the United 
States by increasing the supply of such resources and by reducing the 
cost and increasing the efficiency of exploration for and production of 
such resources, while improving safety and minimizing environmental 
impacts.
  (b) Role of the Secretary.--The Secretary shall have ultimate 
responsibility for, and oversight of, all aspects of the program under 
this section.
  (c) Role of the Program Consortium.--
          (1) In general.--The Secretary shall contract with a 
        consortium to--
                  (A) manage awards pursuant to subsection (f)(4);
                  (B) make recommendations to the Secretary for project 
                solicitations;
                  (C) disburse funds awarded under subsection (f) as 
                directed by the Secretary in accordance with the annual 
                plan under subsection (e); and
                  (D) carry out other activities assigned to the 
                program consortium by this section.
          (2) Limitation.--The Secretary may not assign any activities 
        to the program consortium except as specifically authorized 
        under this section.
          (3) Conflict of interest.--(A) The Secretary shall establish 
        procedures--
                  (i) to ensure that each board member, officer, or 
                employee of the program consortium who is in a 
                decisionmaking capacity under subsection (f)(3) or (4) 
                shall disclose to the Secretary any financial interests 
                in, or financial relationships with, applicants for or 
                recipients of awards under this section, including 
                those of his or her spouse or minor child, unless such 
                relationships or interests would be considered to be 
                remote or inconsequential; and
                  (ii) to require any board member, officer, or 
                employee with a financial relationship or interest 
                disclosed under clause (i) to recuse himself or herself 
                from any review under subsection (f)(3) or oversight 
                under subsection (f)(4) with respect to such applicant 
                or recipient.
          (B) The Secretary may disqualify an application or revoke an 
        award under this section if a board member, officer, or 
        employee has failed to comply with procedures required under 
        subparagraph (A)(ii).
  (d) Selection of the Program Consortium.--
          (1) In general.--The Secretary shall select the program 
        consortium through an open, competitive process.
          (2) Members.--The program consortium may include 
        corporations, institutions of higher education, National 
        Laboratories, or other research institutions. After submitting 
        a proposal under paragraph (4), the program consortium may not 
        add members without the consent of the Secretary.
          (3) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986.
          (4) Schedule.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for the creation of the program consortium, which must be 
        submitted not less than 180 days after the date of enactment of 
        this Act. The Secretary shall select the program consortium not 
        later than 240 days after such date of enactment.
          (5) Application.--Applicants shall submit a proposal 
        including such information as the Secretary may require. At a 
        minimum, each proposal shall--
                  (A) list all members of the consortium;
                  (B) fully describe the structure of the consortium, 
                including any provisions relating to intellectual 
                property; and -
                  (C) describe how the applicant would carry out the 
                activities of the program consortium under this 
                section.
          (6) Eligibility.--To be eligible to be selected as the 
        program consortium, an applicant must be an entity whose 
        members collectively have demonstrated capabilities in planning 
        and managing research, development, demonstration, and 
        commercial application programs in natural gas or other 
        petroleum exploration or production.
          (7) Criterion.--The Secretary may consider the amount of the 
        fee an applicant proposes to receive under subsection (g) in 
        selecting a consortium under this section.
  (e) Annual Plan.--
          (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
          (2) Development.--(A) Before drafting an annual plan under 
        this subsection, the Secretary shall solicit specific written 
        recommendations from the program consortium for each element to 
        be addressed in the plan, including those described in 
        paragraph (4). The Secretary may request that the program 
        consortium submit its recommendations in the form of a draft 
        annual plan.
          (B) The Secretary shall submit the recommendations of the 
        program consortium under subparagraph (A) to the Ultra-
        Deepwater Advisory Committee established under section 148(a) 
        for review, and such Advisory Committee shall provide to the 
        Secretary written comments by a date determined by the 
        Secretary. The Secretary may also solicit comments from any 
        other experts.
          (C) The Secretary shall consult regularly with the program 
        consortium throughout the preparation of the annual plan.
          (3) Publication.--The Secretary shall transmit to the 
        Congress and publish in the Federal Register the annual plan, 
        along with any written comments received under paragraph (2)(A) 
        and (B). The annual plan shall be transmitted and published not 
        later than 60 days after the date of enactment of an Act making 
        appropriations for a fiscal year for the program under this 
        section.
          (4) Contents.--The annual plan shall describe the ongoing and 
        prospective activities of the program under this section and 
        shall include--
                  (A) a list of any solicitations for awards that the 
                Secretary plans to issue to carry out 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).
  (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) The program consortium shall oversee the 
        implementation of awards under this subsection, consistent with 
        the annual plan under subsection (e), including disbursing 
        funds and monitoring activities carried out under such awards 
        for compliance with the terms and conditions of the awards.
          (B) Nothing in subparagraph (A) shall limit the authority or 
        responsibility of the Secretary to oversee awards, or limit the 
        authority of the Secretary to review or revoke awards.
          (C) The Secretary shall provide to the program consortium the 
        information necessary for the program consortium to carry out 
        its responsibilities under this paragraph.
  (g) Fee.--
          (1) In general.--To compensate the program consortium for 
        carrying out its activities under this section, the Secretary 
        shall provide to the program consortium a fee in an amount not 
        to exceed 7.5 percent of the amounts awarded under subsection 
        (f) for each fiscal year.
          (2) Advance.--The Secretary shall advance funds to the 
        program consortium upon selection of the consortium, which 
        shall be deducted from amounts to be provided under paragraph 
        (1).
  (h) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the purposes and 
requirements of this part. The auditor shall transmit a report annually 
to the Secretary, who shall transmit the report to Congress, along with 
a plan to remedy any deficiencies cited in the report.

SEC. 146. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES 
                    PROGRAM.

  (a) In General.--The Secretary shall carry out activities under 
section 144(b)(3), to maximize the value of the onshore unconventional 
natural gas and other petroleum resources of the United States by 
increasing the supply of such resources and by reducing the cost and 
increasing the efficiency of exploration for and production of such 
resources, while improving safety and minimizing environmental impacts.
  (b) Awards.--
          (1) In general.--The Secretary shall carry out this section 
        through awards made through an open, competitive process.
          (2) Consortia.--In carrying out paragraph (1), the Secretary 
        shall give preference to making awards to consortia.
  (c) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided under awards 
made under this section have been expended in a manner consistent with 
the purposes and requirements of this part. The auditor shall transmit 
a report annually to the Secretary, who shall transmit the report to 
Congress, along with a plan to remedy any deficiencies cited in the 
report.
  (d) Focus Areas.--Awards under this section may focus on areas 
including advanced coal-bed methane, deep drilling, natural gas 
production from tight sands, natural gas production from gas shales, 
innovative exploration and production techniques, enhanced recovery 
techniques, and environmental mitigation of unconventional natural gas 
and other petroleum resources exploration and production.
  (e) Activities by the United States Geological Survey.--The Secretary 
of the Interior, through the United States Geological Survey, shall, 
where appropriate, carry out programs of long-term research to 
complement the programs under this section.

SEC. 147. 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 144(c), a demonstration project under this part 
relating to an ultra-deepwater technology or an ultra-deepwater 
architecture may be conducted in deepwater depths.
  (c) Intellectual Property Agreements.--If an award under this part is 
made to a consortium (other than the program consortium), the 
consortium shall provide to the Secretary a signed contract agreed to 
by all members of the consortium describing the rights of each member 
to intellectual property used or developed under the award.
  (d) Technology Transfer.--Each recipient of an award under this part 
shall conduct technology transfer activities, as appropriate, and 
outreach activities pursuant to section 192.
  (e) Cost-Sharing Reduction for Independent Producers.--In applying 
the cost-sharing requirements under section 185 to an award under this 
part made solely to an independent producer of oil or gas, the 
Secretary may reduce the applicable non-Federal requirement in such 
section to a level not less than 10 percent of the cost of the project.

SEC. 148. ADVISORY COMMITTEES.

  (a) Ultra-Deepwater Advisory Committee.--
          (1) Establishment.--Not later than 270 days after the date of 
        enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Ultra-Deepwater Advisory 
        Committee.
          (2) Membership.--The advisory committee under this subsection 
        shall be composed of members appointed by the Secretary and 
        including--
                  (A) individuals with extensive 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 145(e)(2)(B).
          (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
  (b) Unconventional Resources Technology Advisory Committee.--
          (1) Establishment.--Not later than 270 days after the date of 
        enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Unconventional Resources 
        Technology Advisory Committee.
          (2) Membership.--The advisory committee under this subsection 
        shall be composed of members appointed by the Secretary and 
        including--
                  (A) individuals with extensive research experience or 
                operational knowledge of unconventional natural gas and 
                other petroleum resource exploration and production, 
                including independent oil and gas producers;
                  (B) individuals broadly representative of the 
                affected interests in unconventional natural gas and 
                other petroleum resource exploration and production, 
                including interests in environmental protection and 
                safe operations; and
                  (C) no individuals who are Federal employees.
          (3) Duties.--The advisory committee under this subsection 
        shall advise the Secretary on the development and 
        implementation of activities under this part related to 
        unconventional natural gas and other petroleum resources.
          (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
  (c) Prohibition.--No advisory committee established under this 
section shall make recommendations on funding awards to consortia or 
for specific projects.

SEC. 149. LIMITS ON PARTICIPATION.

  (a) In General.--An entity shall be eligible to receive an award 
under this part only if the Secretary finds--
          (1) that the entity's participation in the program under this 
        part would be in the economic interest of the United States; 
        and
          (2) that either--
                  (A) the entity is a United States-owned entity 
                organized under the laws of the United States; or
                  (B) the entity is organized under the laws of the 
                United States and has a parent entity organized under 
                the laws of a country which affords--
                          (i) to United States-owned entities 
                        opportunities, comparable to those afforded to 
                        any other entity, to participate in any 
                        cooperative 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.
  (b) Sense of Congress and Report.--It is the Sense of the Congress 
that ultra-deepwater technology developed under this part is to be 
developed primarily for production of ultra-deepwater natural gas and 
other petroleum resources of the United States, and that this priority 
is to be reflected in the terms of grants, contracts, and cooperative 
agreements entered under this part. As part of the annual Departmental 
budget submission, the Secretary shall report on all steps taken to 
implement the policy described in this subsection.

SEC. 150. 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''.

SEC. 150A. TRANSFER OF ADVANCED OIL AND GAS EXPLORATION AND PRODUCTION 
                    TECHNOLOGIES.

  (a) Assessment.--The Secretary shall review technology programs 
throughout the Federal Government to assess the suitability of 
technologies developed thereunder for use in ultradeep drilling 
research, development, demonstration, and commercial application.
  (b) Technology Transfer.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall issue a solicitation seeking 
organizations knowledgeable of the technology needs of the ultradeep 
drilling industry. The Secretary shall select the most qualified 
applicant to manage a program to transfer technologies the Secretary 
determines suitable under subsection (a) to appropriate entities. The 
organization selected under section 145(d) shall not be eligible for 
selection under this subsection.
  (c) Funding.--From the funds available under section 141(b)(3)(C), 
$1,000,000 shall be available to carry out this section in each of the 
fiscal years 2004 through 2007.

SEC. 151. SUNSET.

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

SEC. 152. DEFINITIONS.

  In this part:
          (1) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
          (2) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 145(d).
          (3) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics under 
        section 208(b)(2) of title 18, United States Code.
          (4) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
          (5) Ultra-deepwater architecture.--The term ``ultra-deepwater 
        architecture'' means the integration of technologies for the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
          (6) Ultra-deepwater technology.--The term ``ultra-deepwater 
        technology'' means a discrete technology that is specially 
        suited to address one or more challenges associated with the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
          (7) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and other 
        petroleum resource'' means natural gas and other petroleum 
        resource located onshore in an economically inaccessible 
        geological formation.

                          Subtitle F--Science

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 161. 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 170(c)(2)(C), and 
including basic energy sciences, advanced scientific and 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.
  (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) Fusion energy sciences.--(A) For the Fusion Energy 
        Sciences Program, excluding activities under sections 161A and 
        162--
                  (i) for fiscal year 2004, $276,000,000;
                  (ii) for fiscal year 2005, $300,000,000;.
                  (iii) for fiscal year 2006, $340,000,000; and
                  (iv) for fiscal year 2007, $350,000,000.
          (B) For activities under section 161A and for the project 
        described in section 162--
                  (i) for fiscal year 2004, $12,000,000;
                  (ii) for fiscal year 2005, $20,000,000;
                  (iii) for fiscal year 2006, $50,000,000; and
                  (iv) for fiscal year 2007, $75,000,000.
          (2) Spallation neutron source.--
                  (A) Construction.--For construction of the Spallation 
                Neutron Source--
                          (i) for fiscal year 2004, $124,600,000;
                          (ii) for fiscal year 2005, $79,800,000; and
                          (iii) for fiscal year 2006, $41,100,000 for 
                        completion of construction.
                  (B) Other project funding.--For other project costs 
                (including research and development necessary to 
                complete the project, preoperations costs, and capital 
                equipment related to construction) of the Spallation 
                Neutron Source, $103,279,000 for the period 
                encompassing fiscal years 2003 through 2006, to remain 
                available until expended through September 30, 2006.
          (3) Nanotechnology research and development.--For activities 
        under section 169--
                  (A) for fiscal year 2004, $265,000,000;
                  (B) for fiscal year 2005, $292,000,000;
                  (C) for fiscal year 2006, $322,000,000; and
                  (D) for fiscal year 2007, $355,000,000.
          (4) Genomes to life.--
                  (A) Total authorization.--For activities under 
                section 170B--
                          (i) $100,000,000 for fiscal year 2004; and
                          (ii) such sums as may be necessary for fiscal 
                        years 2005 through 2007.
                  (B) User facilities and ancillary equipment.--From 
                the amounts authorized under subparagraph (A), the 
                following sums are authorized to be appropriated to 
                carry out section 170B(e)--
                          (i) $16,000,000 for fiscal year 2004; and
                          (ii) such sums as may be necessary for fiscal 
                        years 2005 through 2007.
          (5) Science and technology scholarship program.--For 
        activities under section 170C--
                  (A) for fiscal year 2004, $800,000;
                  (B) for fiscal year 2005, $1,600,000;
                  (C) for fiscal year 2006, $2,000,000; and
                  (D) for fiscal year 2007, $2,000,000.
  (c) Limits on Use of Funds.--Of the funds authorized under subsection 
(b)(1), no funds shall be available for implementation of the plan 
described in section 162.

                     PART 2--FUSION ENERGY SCIENCES

SEC. 161A. ITER.

  (a) In General.--The United States is authorized to participate in 
ITER in accordance with the provisions of this section.
  (b) Agreement.--(1) The Secretary is authorized to negotiate an 
agreement for United States participation in ITER.
  (2) 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 the 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) Definitions.--In this section--
          (1) 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; and
          (2) the term ``ITER'' means the international burning plasma 
        fusion research project in which the President announced United 
        States participation on January 30, 2003.

SEC. 162. PLAN FOR FUSION EXPERIMENT.

  (a) In General.--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.
  (b) Definitions.--As used in this section--
          (1) the term ``ITER'' has the meaning given that term in 
        section 161A; and
          (2) 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.

SEC. 163. 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) Fusion Energy Plan.--
          (1) In general.--Within 6 months after the date of enactment 
        of this Act, the Secretary shall transmit to Congress a plan 
        for carrying out the policy set forth in subsection (a), 
        including cost estimates, proposed budgets, potential 
        international partners, and specific programs for implementing 
        such policy.
          (2) Requirements of plan.--Such plan shall also 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;
                  (D) such facilities that are selected are funded at a 
                cost-effective rate;
                  (E) communication of scientific results and methods 
                between the fusion energy science community and the 
                broader scientific and technology communities is 
                improved;
                  (F) inertial confinement fusion facilities are 
                utilized to the extent practicable for the purpose of 
                inertial fusion energy research and development; and
                  (G) attractive alternative inertial and magnetic 
                fusion energy approaches are more fully explored.
          (3) Report on fusion materials and technology project.--In 
        addition, the plan required by this subsection shall also 
        address the status of, and to the degree possible, the costs 
        and schedules for--
                  (A) the design and implementation of international or 
                national facilities for the testing of fusion 
                materials; and
                  (B) the design and implementation of international or 
                national facilities for the testing and development of 
                key fusion technologies.

                   PART 3--SPALLATION NEUTRON SOURCE

SEC. 164. DEFINITION.

  For the purposes of this part, the term ``Spallation Neutron Source'' 
means Department Project 99-E-334, Oak Ridge National Laboratory, Oak 
Ridge, Tennessee.

SEC. 165. 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.

SEC. 166. LIMITATIONS.

  The total amount obligated by the Department, including prior year 
appropriations, for the Spallation Neutron Source may 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.

                         PART 4--MISCELLANEOUS

SEC. 167. FACILITY AND INFRASTRUCTURE SUPPORT FOR NONMILITARY ENERGY 
                    LABORATORIES.

  (a) Facility Policy.--The Secretary shall develop and implement a 
strategy for the nonmilitary energy laboratories and facilities of the 
Office of Science. Such strategy shall provide a 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) Transmittal.--The Secretary shall prepare and transmit, 
        along with the President's budget request to the Congress for 
        fiscal year 2005, a report containing the strategy developed 
        under subsection (a).
          (2) Contents.--For each nonmilitary energy laboratory and 
        facility, such report shall contain--
                  (A) the current priority list of proposed facilities 
                and infrastructure projects, including cost and 
                schedule requirements;
                  (B) a current ten-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 facilities and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 168. RESEARCH REGARDING PRECIOUS METAL CATALYSIS.

  From the amounts authorized to be appropriated to the Secretary under 
section 161, such sums as may be necessary for each of the fiscal years 
2004, 2005, and 2006 may be used to carry out research in the use of 
precious metals (excluding platinum, palladium, and rhodium) in 
catalysis.

SEC. 169. NANOTECHNOLOGY RESEARCH AND DEVELOPMENT.

  (a) In General.--The Secretary, acting through the Office of Science, 
shall implement a Nanotechnology Research and Development Program to 
promote nanotechnology research, development, demonstration, education, 
technology transfer, and commercial application activities as necessary 
to ensure continued United States leadership in nanotechnology across 
scientific and engineering disciplines.
  (b) Program Activities.--The activities of the Nanotechnology 
Research and Development Program shall be designed to--
          (1) provide sustained support for nanotechnology research and 
        development through--
                  (A) grants to individual investigators and 
                interdisciplinary teams of investigators; and
                  (B) establishment of interdisciplinary research 
                centers and advanced technology user facilities;
          (2) ensure that solicitation and evaluation of proposals 
        under the Program encourage interdisciplinary research;
          (3) expand education and training of undergraduate and 
        graduate students in interdisciplinary nanotechnology science 
        and engineering;
          (4) accelerate the commercial application of nanotechnology 
        innovations in the private sector;
          (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) Definitions.--For the purposes of this section--
          (1) the term ``nanotechnology'' means science and engineering 
        aimed at creating materials, devices, and systems at the atomic 
        and molecular level; and
          (2) the term ``advanced technology user facility'' means a 
        nanotechnology research and development facility supported, in 
        whole or in part, by Federal funds that is open to all United 
        States researchers on a competitive, merit-reviewed basis.
  (d) Report.--Within 2 years after the date of enactment of this Act, 
the Secretary shall transmit to the Congress a report describing the 
projects to identify societal and ethical concerns related to 
nanotechnology and the funding provided to support these projects.

SEC. 170. 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;
          (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.
  (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)--
                          (i) by striking ``means'' and inserting ``and 
                        `networking and information technology' mean''; 
                        and
                          (ii) 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--
          ``(1) supporting fundamental research in the physical 
        sciences and engineering, and energy applications;
          ``(2) providing supercomputer access and advanced 
        communication capabilities and facilities to scientific 
        researchers; and
          ``(3) 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 2007.''.
  (d) Coordination.--The Secretary shall ensure that the program under 
this section is integrated and consistent with--
          (1) the Accelerated Strategic Computing Initiative of the 
        National Nuclear Security Administration; and
          (2) other national efforts related to advanced scientific 
        computing for science and engineering.
  (e) Report.--(1) Before undertaking any new initiative to develop new 
advanced architecture for high-speed computing, the Secretary, through 
the Director of the Office of Science, shall transmit a report to the 
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) 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 the Congress.

SEC. 170A. 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.

                        PART 5--GENOMES TO LIFE

SEC. 170B. GENOMES TO LIFE.

  (a) Findings.--The Congress finds the following:
          (1) The Department's Genomes to Life initiative involves the 
        emerging fields of systems biology and proteomics, which 
        address the ability to understand the composition and function 
        of the biochemical networks and pathways that carry out the 
        essential processes of living organisms.
          (2) The Genomes to Life initiative builds on the Department's 
        integral role in the Human Genome Project, which has led to the 
        mapping, sequencing, and identification of genetic material. 
        Genomes to Life will go beyond mapping to develop an 
        understanding of how genetic components interact to perform 
        cellular activities vital to life.
          (3) The ability of the United States to respond to the 
        national security, energy, and environmental challenges of the 
        21st century will be driven by science and technology. An 
        integrated and predictive understanding of biological systems 
        will enable the United States to develop new technologies 
        related to the detection of biological and chemical agents, 
        energy production, carbon sequestration, bioremediation, and 
        other Department statutory missions. These advances will also 
        enhance the strength of United States science, technology, and 
        medicine generally.
          (4) The fundamental intellectual challenges inherent in the 
        Genomes to Life initiative are considerable, and require public 
        support for basic and applied research and development. 
        Significant advances in areas such as the characterization of 
        multiprotein complexes and gene regulatory networks will be 
        required before biologically-based solutions and technologies 
        will be useful in national security applications, as well as to 
        the energy, medical, and agricultural industries.
          (5) The development of new scientific instruments will also 
        be required to advance Genomes to Life research. Such 
        instruments are likely to be large and costly. Specialized 
        facilities are also likely to be required in order to advance 
        the field and to realize its promise. Such facilities will be 
        sufficiently expensive that they will have to be located and 
        constructed on a centralized basis, similar to a number of 
        unique facilities already managed by the Department.
          (6) Contributions from individual researchers as well as 
        multidisciplinary research teams will be required to advance 
        systems biology and proteomics.
          (7) The Department's Office of Science is well suited to 
        manage systems biology and proteomics research for the 
        Department. Through its support of research and development 
        pursuant to the Department's statutory authorities, the Office 
        of Science is the principal Federal supporter of research and 
        development in the physical and computational sciences. The 
        Office is also a significant source of Federal support for 
        research in genomics and the life sciences. The Office supports 
        research and development by individual investigators and 
        multidisciplinary teams, and manages special user facilities 
        that serve investigators in both university and industry.
  (b) Establishment of Program.--The Secretary shall carry out a 
program of research, development, demonstration, and commercial 
application, to be known as the Genomes to Life Program, in systems 
biology and proteomics.
  (c) Planning.--
          (1) In general.--Within one year after the date of enactment 
        of this Act, the Secretary shall prepare and transmit to 
        Congress a Program plan describing how knowledge and 
        capabilities would be developed by the Program and applied to 
        Department missions relating to energy, environmental cleanup, 
        and stabilization of atmospheric levels of carbon dioxide.
          (2) Consultation.--The Program plan will be developed in 
        consultation with other relevant Department technology programs 
        and other relevant Federal agencies.
          (3) Long-term goals.--The Program plan shall focus science 
        and technology on long-term goals including--
                  (A) contributing to United States independence from 
                foreign energy sources;
                  (B) stabilizing atmospheric levels of carbon dioxide;
                  (C) advancing environmental cleanup; and
                  (D) providing the science and technology basis for 
                new industries in biotechnology.
          (4) Specific goals.--The Program plan shall identify 
        appropriate research, development, demonstration, and 
        commercial application activities to address the following 
        issues within the next decade:
                  (A) Identifying new biological sources of fuels and 
                electricity, with particular emphasis on creating 
                biological technologies for the production and 
                utilization of hydrogen.
                  (B) Understanding the Earth's natural carbon cycle 
                and creating strategies to stabilize atmospheric carbon 
                dioxide.
                  (C) Developing a knowledge and capability base for 
                exploring more cost-effective cleanup strategies for 
                Department sites.
                  (D) Capturing key biological processes in engineered 
                systems not requiring living cells.
          (5) Review.--The Secretary shall enter into an arrangement 
        with the National Academy of Sciences to review the plan 
        developed under this subsection. The Secretary shall transmit 
        the review to the Congress not later than 6 months after the 
        transmittal of the Program plan under paragraph (1), along with 
        an explanation of any differences between the plan and the 
        recommendations of the Academy.
  (d) Program Execution.--In carrying out the Program under this 
section, the Secretary shall--
          (1) support individual investigators and multidisciplinary 
        teams of investigators;
          (2) subject to subsection (e), develop, plan, construct, 
        acquire, or operate special equipment or facilities for the use 
        of investigators conducting research, development, 
        demonstration, or commercial application in systems biology and 
        proteomics;
          (3) support technology transfer activities to benefit 
        industry and other users of systems biology and proteomics; and
          (4) coordinate activities by the Department with academia, 
        industry, and other Federal agencies.
  (e) User Facilities and Ancillary Equipment.--
          (1) Facilities.--As part of the Genomes to Life Program, the 
        Secretary is authorized to develop, plan, construct, acquire, 
        or operate special equipment, instrumentation, or facilities 
        for investigators conducting research, development, 
        demonstration, and commercial application projects in systems 
        biology and proteomics and associated biological disciplines.
          (2) Projects.--Projects referred to in paragraph (1) may 
        include--
                  (A) the identification and characterization of 
                multiprotein complexes;
                  (B) characterization of gene regulatory networks;
                  (C) characterization of the functional repertoire of 
                complex microbial communities in their natural 
                environments at the molecular level; and
                  (D) development of computational methods and 
                capabilities to advance understanding of complex 
                biological systems and predict their behavior.
          (3) Facilities.--Facilities supported under paragraph (1) may 
        include facilities for--
                  (A) the production and characterization of proteins;
                  (B) whole proteome analysis;
                  (C) characterization and imaging of molecular 
                machines; and
                  (D) analysis and modeling of cellular systems.
          (4) Collaboration.--The Secretary shall encourage 
        collaborations among universities, laboratories, and industry 
        at facilities supported under this subsection. All facilities 
        supported under this subsection shall have a specific mission 
        of technology transfer to other institutions.
  (f) Definitions.--For purposes of this section:
          (1) Program.--The term ``Program'' means the Genomes to Life 
        Program carried out under this section.
          (2) Proteomics.--The term ``proteomics'' means the 
        determination of the structure, function, and expression of the 
        proteins encoded in any genome, including new protein sequences 
        encoded in a genome for which the structural or functional 
        correlates are not currently known.

SEC. 170C. DEPARTMENT OF ENERGY SCIENCE AND TECHNOLOGY SCHOLARSHIP 
                    PROGRAM.

  (a) Establishment of Program.--
          (1) In general.--The Secretary shall 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) 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) 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 within 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.--Scholarship 
        recipients who, for any reason, fail to begin or complete their 
        service obligation after completion of academic training, or 
        fail to comply with the terms and conditions of deferment 
        established by the Secretary pursuant to subsection (f)(2)(B), 
        shall be in breach of their contractual agreement. When 
        recipients breach their agreements 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) 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)).
          (3) Program.--The term ``Program'' means the Department of 
        Energy Science and Technology Scholarship Program established 
        under this section.

                   Subtitle G--Energy and Environment

SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

  (a) United States-Mexico Energy Technology Cooperation.--The 
following sums are authorized to be appropriated to the Secretary to 
carry out activities under section 172:
          (1) For fiscal year 2004, $5,000,000.
          (2) For fiscal year 2005, $6,000,000.
          (3) For fiscal year 2006, $6,000,000.
          (4) For fiscal year 2007, $6,000,000.
  (b) Waste Reduction and Use of Alternatives.--There are authorized to 
be appropriated to the Secretary to carry out activities under section 
173, $500,000 for fiscal year 2004.

SEC. 172. 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.
  (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.

SEC. 173. WASTE REDUCTION AND USE OF ALTERNATIVES.

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

SEC. 174. 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. 175. PETROLEUM COKE GASIFICATION.

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

SEC. 176. OTHER BIOPOWER AND BIOENERGY.

  The Secretary shall conduct a program to assist in the planning, 
design, and implementation of projects to convert rice straw, rice 
hulls, sugarcane bagasse, forest thinnings, and barley grain into 
biopower and biofuels.

SEC. 177. 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-FC22-91PC99544 on such terms and conditions as the Secretary 
determines, including interest rates and upfront payments.

SEC. 178. FUEL CELL TEST CENTER.

  (a) Study.--Not later than 1 year after the date of enactment of this 
Act, the Secretary shall transmit to the 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.

                          Subtitle H--Hydrogen

SEC. 181. SHORT TITLE.

  This subtitle may be cited as the ``George E. Brown, Jr. and Robert 
S. Walker Hydrogen Future Act of 2003''.

SEC. 182. MATSUNAGA ACT AMENDMENT.

  The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended by 
striking sections 102 through 109 and inserting the following:

``SEC. 102. FINDINGS AND DEFINITIONS.

  ``(a) Findings.--Congress finds that--
          ``(1) the United States is currently dependent on foreign 
        sources for a majority of its petroleum supply;
          ``(2) the Nation's dependence on foreign petroleum is 
        expected to increase in the decades ahead;
          ``(3) it is in the national interest to reduce dependence on 
        imported petroleum by accelerating Federal efforts to partner 
        with the private sector in developing hydrogen and fuel cell 
        technologies;
          ``(4) it is in the national interest to support industry's 
        efforts to develop a light duty vehicle fleet that is free or 
        near free of pollutant emissions and greenhouse gas emissions, 
        and that helps to reduce the Nation's dependence on petroleum 
        in a manner that maintains the freedom of consumers to purchase 
        the kinds of vehicles they wish to drive and the freedom to 
        refuel those vehicles safely and affordably;
          ``(5) the development of hydrogen fuel cell vehicles and 
        supporting infrastructure will benefit from and accelerate the 
        parallel advancement of fuel cells for stationary power that 
        will enhance the resiliency, reliability, and environmental 
        performance of the Nation's electricity infrastructure;
          ``(6) fuel cell technology for consumer electronics and 
        portable power will benefit from, and advance the development 
        of, hydrogen fuel cell vehicles and supporting infrastructure;
          ``(7) there is a need for deployment of bridging technologies 
        that can contribute to reducing petroleum demand and decreasing 
        air emissions, including--
                  ``(A) gasoline-electric and diesel-electric hybrid 
                drive systems;
                  ``(B) advanced combustion engines (including clean 
                diesel), electric battery, and power electronics; and
                  ``(C) alternative fuels and other technologies;
          ``(8) low-cost hydrogen production, storage, and delivery 
        facilities are essential to the success of the FreedomCAR 
        program; and
          ``(9) vehicle technology development work should be performed 
        in a manner that is cognizant of consumer acceptance and 
        marketplace success.
  ``(b) Definitions.--In this Act:
          ``(1) The term `Advisory Committee' means the Hydrogen 
        Technical and Fuel Cell Advisory Committee established under 
        section 108 of this Act.
          ``(2) The term `Department' means the Department of Energy.
          ``(3) 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) The term `FreedomCAR' is the acronym for a Department 
        initiative in automotive research and development entitled 
        `Freedom Cooperative Automotive Research'.
          ``(5) The term `infrastructure' means the equipment, systems, 
        or facilities used to produce, distribute, deliver, or store 
        hydrogen and other advanced clean fuels.
          ``(6) The term `light duty vehicle' means a car or truck 
        classified by the Department of Transportation as a Class I or 
        IIA vehicle.
          ``(7) The term `Secretary' means the Secretary of Energy.

``SEC. 103. PROGRAM.

  ``(a) In General.--The Secretary shall conduct a research, 
development, demonstration, and commercial application program designed 
to accelerate the use of hydrogen and related technologies in 
stationary and transportation applications. The goals of the program 
shall include--
          ``(1) to enable a decision by automakers not later than 2015 
        to offer affordable and technically viable hydrogen fuel cell 
        vehicles in the mass consumer market;
          ``(2) to enable production and delivery to consumers of model 
        year 2020 hydrogen fuel cell vehicles that will have--
                  ``(A) a range of at least three hundred miles;
                  ``(B) safety and performance comparable to vehicle 
                technologies in the market; and
                  ``(C) when compared to light duty vehicles in model 
                year 2003--
                          ``(i) a fuel economy that is two and one half 
                        times the equivalent fuel economy of comparable 
                        light duty vehicles in model year 2003; and
                          ``(ii) zero or near zero emissions of 
                        pollutants; and
                  ``(D) vehicle fuel system crash integrity and 
                occupant protection; and
          ``(3) to enable by 2020 the safe and convenient commercial 
        production and delivery of hydrogen that will have--
                  ``(A) the capacity to meet the demand for stationary 
                and mobile hydrogen fuel cells;
                  ``(B) safety and performance characteristics 
                comparable to other fuels; and
                  ``(C) improved overall efficiency and zero or near 
                zero emissions when compared to fuels used in 2003.
  ``(b) Activities.--The program authorized under this section shall 
address--
          ``(1) production of hydrogen from diverse energy sources, 
        including--
                  ``(A) fossil fuels, in conjunction with carbon 
                capture and sequestration;
                  ``(B) hydrogen-carrier fuels (including ethanol and 
                methanol);
                  ``(C) renewable energy resources; and
                  ``(D) nuclear energy;
          ``(2) delivery of hydrogen or hydrogen-carrier fuels, 
        including--
                  ``(A) transmission by pipeline and other distribution 
                methods; and
                  ``(B) safe, convenient, and economic refueling of 
                vehicles either at central refueling stations or 
                through distributed on-site generation;
          ``(3) 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;
          ``(4) development of safe, durable, affordable, and efficient 
        fuel cells, including research and development on 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; and
          ``(5) development, in conjunction with the National Institute 
        of Standards and Technology, of necessary codes and standards 
        (including international codes and standards) and safety 
        practices for the production, distribution, storage, and use of 
        hydrogen, hydrogen-carrier fuels and related products.
  ``(c) Demonstration.--In carrying out the demonstration program under 
this section, the Secretary shall fund a limited number of projects and 
shall, to the extent practicable--
          ``(1) select only projects that--
                  ``(A) involve using hydrogen and related products at 
                facilities or installations that would exist without 
                the demonstration program, such as existing office 
                buildings, military bases, vehicle fleet centers, 
                transit bus authorities, or parks; and
                  ``(B) depend on reliable power from hydrogen to carry 
                out essential activities; and
          ``(2) favor projects that--
                  ``(A) lead to the replication of hydrogen 
                technologies and draw such technologies into the 
                marketplace;
                  ``(B) integrate in a single project both mobile and 
                stationary applications of hydrogen fuel cells;
                  ``(C) address the interdependency of demand for 
                hydrogen fuel cell applications and hydrogen fuel 
                infrastructure; or
                  ``(D) raise awareness of hydrogen technology among 
                the public.
  ``(d) Merit Review.--The Secretary shall carry out the program under 
this section using a competitive, merit-review process and consistent 
with the generally applicable Federal laws and regulations governing 
awards of financial assistance, contracts, or other agreements.
  ``(e) Cost Sharing.--(1) For projects carried out through grants, 
cooperative agreements, or contracts under this section, the Secretary 
shall require a commitment from non-Federal sources of at least--
          ``(A) 20 percent of the cost of a research and development 
        project; and
          ``(B) 50 percent of the cost of a demonstration project.
  ``(2) The Secretary may reduce the cost-sharing requirement under 
paragraph (1)--
          ``(A) if the Secretary determines that the project involves 
        research of a basic or fundamental nature;
          ``(B) if the Secretary determines that a demonstration or 
        commercial application project involves unusual technological 
        risks; or
          ``(C) for technical analyses or other activities that the 
        Secretary does not expect to result in a marketable product.
  ``(3) The Secretary may consider the size of the non-Federal share in 
selecting projects.

``SEC. 104. FREEDOM CAR.

  ``(a) In General.--In coordination with the program under section 
103, the Secretary shall carry out a research, development, 
demonstration, and commercial application program on advanced vehicle 
technologies, to be known as the FreedomCAR program.
  ``(b) Activities.--The FreedomCAR program shall address--
          ``(1) engine and emission control systems;
          ``(2) energy storage, electric propulsion, and hybrid 
        systems;
          ``(3) automotive materials;
          ``(4) clean fuels in addition to hydrogen; and
          ``(5) other advanced vehicle technologies.
  ``(c) Demonstration.--Demonstrations involving hydrogen shall be 
conducted as part of the program under section 103.
  ``(d) Merit Review and Cost Sharing.--The Secretary shall carry out 
the FreedomCAR program in compliance with sections 103(d) and (e).

``SEC. 105. PLAN.

  ``Not later than six months after the date of enactment of the George 
E. Brown, Jr. and Robert S. Walker Hydrogen Future Act of 2003, the 
Secretary shall transmit to the Congress a coordinated plan for the 
programs described in sections 103 and 104 and any other programs of 
the Department that are directly related to fuel cells or hydrogen. The 
plan shall be consistent with the National Hydrogen Energy Roadmap 
published by the Department in October of 2002 and shall describe, at a 
minimum--
          ``(1) the agenda for the programs for the next five years, 
        including what research, development, demonstration, and 
        commercial application will be conducted to carry out each 
        activity enumerated in sections 103(b) and 104(b);
          ``(2) the role national laboratories, institutions of higher 
        education, small businesses, and other private sector firms are 
        expected to play in the programs;
          ``(3) the technical milestones that will be used to evaluate 
        the programs for the next five years;
          ``(4) the most significant technical hurdles that stand in 
        the way of achieving the goals described in section 103(a), and 
        how the programs will address those hurdles; and
          ``(5) the policy assumptions that are driving the research 
        agenda, including any assumptions that would affect the sources 
        of hydrogen or the marketability of hydrogen-related products.

``SEC. 106. EDUCATION, OUTREACH, AND TECHNOLOGY TRANSFER.

  ``(a) In General.--The Secretary may carry out programs and 
activities for interagency, intergovernmental, and international 
education, information exchange, and cooperation related to hydrogen 
and hydrogen-related products.
  ``(b) Technology Transfer.--(1) The Secretary may conduct a program 
to transfer technology to the private sector under this Act. The 
purpose of the technology transfer program is to foster the exchange of 
generic, nonproprietary information and technology, developed under 
this Act, among industry, academia, and the Federal Government, to help 
the United States economy attain the economic benefits of this 
information and technology, among other purposes.
  ``(2) The Secretary shall direct the program authorized by this 
subsection with the advice and assistance of the Advisory Committee.

``SEC. 107. INTERAGENCY TASK FORCE.

  ``(a) Establishment.--Not later than 120 days after the date of 
enactment of the George E. Brown, Jr. and Robert S. Walker Hydrogen 
Future Act of 2003, the President shall establish an interagency task 
force, chaired by the Director of the Office of Science and Technology 
Policy or his designee, with representatives from each of the 
following:
          ``(1) The Department of Energy.
          ``(2) The Department of Transportation.
          ``(3) The Department of State.
          ``(4) The Department of Defense.
          ``(5) The Department of Commerce (including the National 
        Institute of Standards and Technology).
          ``(6) The Environmental Protection Agency.
          ``(7) The National Aeronautics and Space Administration.
          ``(8) Other Federal agencies as the Director determines 
        appropriate.
  ``(b) Duties.--
          ``(1) Implementation.--The interagency task force shall work 
        toward development of--
                  ``(A) a safe, economical, and environmentally sound 
                hydrogen infrastructure;
                  ``(B) uniform hydrogen codes, standards, and safety 
                protocols;
                  ``(C) fuel cells in government applications, 
                including portable, stationary, and transportation 
                applications; and
                  ``(D) 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 Act;
                  ``(D) promote the marketplace introduction of 
                infrastructure for hydrogen-powered fuel cell vehicles; 
                and
                  ``(E) conduct an education program to provide 
                hydrogen and fuel cell information to potential end-
                users in coordination with the program under section 
                106.
  ``(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 
and the Department.

``SEC. 108. ADVISORY COMMITTEE.

  ``(a) Establishment.--The Hydrogen Technical and Fuel Cell Advisory 
Committee shall be established to advise the Secretary on the programs 
and activities under this Act.
  ``(b) Membership.--
          ``(1) Members.--The Secretary shall appoint not fewer than 12 
        nor more than 25 members. The Secretary shall appoint members 
        to represent domestic industry, academia, professional 
        societies, government agencies, and financial, environmental, 
        and other appropriate organizations based on the Secretary'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 be not more than three 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 Chair of the Advisory Committee shall 
        be a member of the Advisory Committee, elected by the members 
        from among their number.
  ``(c) Review.--(1) The Advisory Committee shall review and make 
recommendations to the Secretary in a biennial report on--
          ``(A) the implementation of programs and activities under 
        this Act; and
          ``(B) the safety, economical, environmental, and other 
        consequences of technologies for the production, distribution, 
        delivery, storage, or use of hydrogen and fuel cells.
  ``(2) The Secretary shall transmit the report under this subsection 
to the Congress along with 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.
  ``(d) Advisory Committee Support.--The Secretary shall provide 
resources necessary in the judgment of the Secretary for the Advisory 
Committee to carry out its responsibilities under this Act.

``SEC. 109. EXTERNAL REVIEW.

  ``(a) Plan.--The Secretary shall enter into an arrangement with a 
competitively selected nongovernmental entity, such as the National 
Academy of Sciences, to review the plan prepared under section 105. The 
Secretary shall transmit the review to the 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) Biennial Review.--The Secretary shall enter into an arrangement 
with a competitively selected nongovernmental entity, such as the 
National Academy of Sciences, under which the entity will review the 
program under sections 103 and 104 every other year, beginning two 
years after the date of enactment of the George E. Brown, Jr. and 
Robert S. Walker Hydrogen Future Act of 2003. The entity shall review 
the research priorities, technical milestones, and plans for technology 
transfer and evaluate the progress toward achieving them. The Secretary 
shall transmit each review to the 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. 110. MISCELLANEOUS PROVISIONS.

  ``(a) Duplication.--The Secretary shall carry out the activities of 
this Act in a manner that avoids unnecessary duplication or 
displacement of, or competition with private sector activities.
  ``(b) Other Governments.--In carrying out this Act, the Secretary may 
enter into cost-sharing agreements with Federal, State, or local 
governments to demonstrate applications using hydrogen and fuel cells.
  ``(c) Representation.--The Department may represent the United States 
interests with respect to activities and programs under this Act, 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.
  ``(d) Regulatory Authority.--Nothing in this Act shall be construed 
to alter the regulatory authority of the Department.

``SEC. 111. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this Act, in 
addition to any amounts made available for these purposes under other 
Acts--
          ``(1) $273,500,000 for fiscal year 2004;
          ``(2) $325,000,000 for fiscal year 2005;
          ``(3) $375,000,000 for fiscal year 2006;
          ``(4) $400,000,000 for fiscal year 2007; and
          ``(5) $425,000,000 for fiscal year 2008.''.

SEC. 183. REPEAL OF HYDROGEN FUTURE ACT OF 1996.

  The Hydrogen Future Act of 1996 is repealed.

                         Subtitle I--Management

SEC. 184. AVAILABILITY OF FUNDS.

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

SEC. 185. 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.
  (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.

SEC. 186. 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. 187. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

  (a) National Energy Research and Development Advisory Boards.--(1) 
The Secretary shall establish one or more advisory boards to review 
Department research, development, demonstration, and commercial 
application programs in the following areas:
          (A) Energy efficiency.
          (B) Renewable energy.
          (C) Nuclear energy.
          (D) Fossil energy.
  (2) 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 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 
                        Assistant Secretary for Science created under 
                        section 209 of the Department of Energy 
                        Organization Act, as added by section 201 of 
                        this Act;
                          (ii) advise the Assistant Secretary with 
                        respect to the well-being and management of the 
                        National Laboratories and single-purpose 
                        research facilities;
                          (iii) advise the Assistant Secretary 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 Assistant Secretary 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 semi-annually 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 3, 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 3, 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 the Congress reports containing the 
results of all such reviews and assessments.

SEC. 188. 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 coordinate the activities of the 
Technology Transfer Working Group, and shall oversee the expenditure of 
funds allocated to the Technology Transfer Working Group, and shall 
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.

SEC. 189. 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 in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
          (3) make available to small business concerns training, 
        mentoring, and clear, up-to-date information on how to 
        participate in the procurement and collaborative research, 
        including how to submit effective proposals, and information 
        related to alternative approaches to resolution of disputes 
        involving intellectual property rights and other technology 
        transfer matters;
          (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 concern's 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)).

SEC. 190. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

  Not later than 2 years after the date of enactment of this section, 
the Secretary shall transmit a report to the 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.

SEC. 191. NATIONAL ACADEMY OF SCIENCES REPORT.

  Within 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 studies 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) report to the Congress on recommendations developed as a 
        result of the studies.

SEC. 192. 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, facility planners 
and managers, State and local governments, and other entities.

SEC. 193. LIMITS ON USE OF FUNDS.

  (a) Competitive Procedure Requirement.--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.
  (b) Congressional Notice.--At least 2 months before a contract award 
for which the Secretary intends to grant such a waiver, the Secretary 
shall submit to the Congress a report notifying the Congress of the 
waiver and setting forth the reasons for the waiver.

SEC. 194. 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 the Congress a report explaining how such amounts will be 
distributed among the authorizations contained in this title.
  (b) Prohibition.--(1) 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 the Congress a 
report described in subsection (c) and a period of 30 days has elapsed 
after such committees receive the report.
  (2) 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. 195. 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. 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. 196. UNIVERSITY COLLABORATION.

  Not later than 2 years after the date of enactment of this Act, the 
Secretary shall transmit to the Congress a report that examines the 
feasibility of promoting collaborations between large institutions of 
higher education and small institutions of higher education through 
grants, contracts, and cooperative agreements made by the Secretary for 
energy projects. The Secretary shall also consider providing incentives 
for the inclusion of small institutions of higher education, including 
minority-serving institutions, in energy research grants, contracts, 
and cooperative agreements.

SEC. 197. 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 Department of 
                Energy 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 Department of Energy and the laboratory.''.

SEC. 198. 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.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 201. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
                    TECHNOLOGY PROGRAMS.

  (a) Reconfiguration of Position of Director of the Office of 
Science.--Section 209 of the Department of Energy Organization Act (41 
U.S.C. 7139) is amended to read as follows:
                          ``office of science
  ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary of Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
  ``(b) The Assistant Secretary of Science shall be in addition to the 
Assistant Secretaries provided for under section 203 of this Act.
  ``(c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
  (b) Additional Assistant Secretary Position To Enable Improved 
Management of Nuclear Energy Issues.--(1) Section 203(a) of the 
Department of Energy Organization Act (42 U.S.C. 7133(a)) is amended by 
striking ``There shall be in the Department six Assistant Secretaries'' 
and inserting ``Except as provided in section 209, there shall be in 
the Department seven Assistant Secretaries''.
  (2) It is the sense of the Congress that the leadership for 
departmental missions in nuclear energy should be at the Assistant 
Secretary level.
  (c) Technical and Conforming Amendments.--(1) Section 5315 of title 
5, United States Code, is amended by--
          (A) striking ``Director, Office of Science, Department of 
        Energy.''; and
          (B) striking ``Assistant Secretaries of Energy (6)'' and 
        inserting ``Assistant Secretaries of Energy (8)''.
  (2) 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. 202. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.

  The Secretary shall transmit to the Congress a biennial report on the 
equal employment opportunity practices at the nonmilitary energy 
laboratories. Such report shall include--
          (1) a thorough review of each nonmilitary energy laboratory 
        contractor's equal employment opportunity policies;
          (2) a statistical report on complaints and their disposition 
        in the laboratories;
          (3) the role equal employment opportunity practices play in 
        selecting the contractor for each laboratory, and in 
        establishing the fee that is paid to the contractor for each 
        laboratory;
          (4) a summary of disciplinary actions by either the 
        Department or the relevant contractors for each laboratory; and
          (5) a summary of efforts by the Department and the relevant 
        contractors for each laboratory to attract women and minorities 
        to the laboratories.

SEC. 203. EXTERNAL REGULATION OF DEPARTMENT OF ENERGY.

  (a) Elimination of Department of Energy Authority.--Effective 2 years 
after the date of enactment of this Act, the Department shall have no 
regulatory or enforcement authority with respect to nuclear safety and 
occupational safety and health responsibilities assumed by the Nuclear 
Regulatory Commission under subsection (b) or by the Occupational 
Safety and Health Administration under subsection (c) at any 
nonmilitary energy laboratory owned or operated by the Department.
  (b) Nuclear Regulatory Commission Authority.--
          (1) Nuclear safety regulatory and enforcement 
        responsibilities.--Effective 2 years after the date of 
        enactment of this Act, the Nuclear Regulatory Commission shall 
        assume the nuclear safety regulatory and enforcement 
        responsibilities of the Department under the Atomic Energy Act 
        of 1954 with regard to nonmilitary energy laboratories owned or 
        operated by the Department.
          (2) Licensed entities.--For the purposes of carrying out at 
        nonmilitary energy laboratories owned or operated by the 
        Department regulatory and enforcement responsibilities 
        described in paragraph (1), the Nuclear Regulatory Commission 
        may regulate, through licensing, certification, or other 
        appropriate means, the Department's contractors.
          (3) Decommissioning.--A contractor operating a nonmilitary 
        energy laboratory owned by the Department shall not be 
        responsible for the costs of decommissioning that facility. No 
        enforcement action may be taken against such contractor for any 
        violation of Nuclear Regulatory Commission decommissioning 
        requirements, if such violation is the result of a failure of 
        the Department to authorize or fund decommissioning activities. 
        The Nuclear Regulatory Commission and the Department shall, not 
        later than 1 year after the date of enactment of this Act, 
        enter into a memorandum of understanding establishing 
        decommissioning procedures and requirements for nonmilitary 
        energy laboratories owned or operated by the Department.
          (4) Accelerators.--Notwithstanding the provisions of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2011 et. seq.), effective 
        2 years after the date of enacment of this Act, the Nuclear 
        Regulatory Commission shall have exclusive regulatory authority 
        over accelerators, other electronic sources of radiation not 
        assigned to the Commission as of the date of enactment of this 
        Act, accelerator-produced radioisotopes, and naturally 
        occurring radioactive materials at nonmilitary energy 
        laboratories, consistent with the authorities granted the 
        Nuclear Regulatory Commission in the Atomic Energy Act of 1954. 
        Until such time as the Commission has completed a rulemaking 
        for the foregoing equipment and radioisotopes, nonmilitary 
        energy laboratories shall be required to meet the requirements 
        stipulated in a license for the facility.
          (5) Administration.--The responsibilities assumed by the 
        Nuclear Regulatory Commission under this subsection shall be 
        administered by the Nuclear Regulatory Commission, not by 
        States.
          (6) Judicial review.--Section 189 b. of the Atomic Energy Act 
        of 1954 (42 U.S.C. 2239(b)) is amended by adding the following 
        paragraph after paragraph (4):
          ``(5) Any final order or regulation of the Commission 
        establishing standards to govern nonmilitary energy 
        laboratories owned or operated by the Department of Energy that 
        is issued to implement the Commission's responsibilities under 
        section 202 of the Energy Research, Development, Demonstration, 
        and Commercial Application Act of 2003, and any final 
        determination of the Commission relating to whether a 
        nonmilitary energy laboratory owned or operated by the 
        Department is in compliance with such standards and all 
        applicable Commission regulations or orders.''.
          (7) Employee protection.--Any Department contractor operating 
        a nonmilitary energy laboratory that is regulated by the 
        Nuclear Regulatory Commission under this section shall be 
        subject to section 211 of the Energy Reorganization Act of 1974 
        (42 U.S.C. 5851) to the same extent as any other employer 
        subject to such section 211.
          (8) Conflict of interest.--Section 170A of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2210a) applies to contracts, agreements, 
        or other arrangements of the Nuclear Regulatory Commission 
        proposed or entered into pursuant to its responsibilities 
        assumed under this subsection.
  (c) Occupational Safety and Health.--
          (1) OSHA jurisdiction.--Notwithstanding section 4(b)(1) of 
        the Occupational Safety and Health Act of 1970 (29 U.S.C. 
        653(b)(1)), effective 2 years after the date of enactment of 
        this Act, the Occupational Safety and Health Administration 
        shall assume the exclusive regulatory and enforcement 
        responsibilities of the Department relating to matters covered 
        by the Occupational Safety and Health Act of 1970 with regard 
        to all nonmilitary energy laboratories owned or operated by the 
        Department, except as provided in paragraph (2). The 
        responsibilities assumed by the Occupational Safety and Health 
        Administration under this subsection shall be administered by 
        the Occupational Safety and Health Administration, not by 
        States. Any Department contractor operating such a laboratory 
        shall, with respect to matters relating to occupational safety 
        and health, be considered to be an employer for purposes of the 
        Occupational Safety and Health Act of 1970.
          (2) Regulation of hazards containing radiological and non-
        radiological component.--If a hazard at a nonmilitary energy 
        laboratory owned or operated by the Department presents a risk 
        of occupational exposure and contains both a radiological and 
        non-radiological component, the Occupational Safety and Health 
        Administration and the Nuclear Regulatory Commission shall, 
        effective 2 years after the date of enactment of this Act, 
        share regulatory and enforcement responsibilities with respect 
        to the hazard in accordance with the memorandum of 
        understanding entered into pursuant to subsection (d).
  (d) Memorandum of Understanding.--The Nuclear Regulatory Commission 
and the Occupational Safety and Health Administration shall, not later 
than 1 year after the date of enactment of this Act, enter into and 
transmit to the Congress a memorandum of understanding to govern the 
exercise of their respective authorities over nuclear safety and 
occupational safety and health at nonmilitary energy laboratories owned 
or operated by the Department.
  (e) Civil Penalties.--The Department's contractor operating a 
nonmilitary energy laboratory owned or operated by the Department shall 
not be liable for civil penalties under the Atomic Energy Act of 1954 
or the Occupational Safety and Health Act of 1970 for any actions taken 
before the date of transfer of regulatory authority under this section, 
pursuant to the instructions of a Federal agency in preparation for the 
transfer of regulatory and enforcement responsibilities required by 
this section.
  (f) Indemnification.--The Secretary shall continue to indemnify 
nonmilitary energy laboratories owned or operated by the Department in 
accordance with the provisions of section 170 d. of the Atomic Energy 
Act of 1954.
  (g) Department of Energy Reporting Requirement.--Not later than 18 
months after the date of enactment of this Act, the Secretary shall 
transmit to the Congress a plan for the termination of the Department's 
regulatory and enforcement responsibilities for nonmilitary energy 
laboratories owned or operated by the Department required by this 
section. The report shall include--
          (1) a detailed transition plan, drafted in coordination with 
        the Nuclear Regulatory Commission and the Occupational Safety 
        and Health Administration, giving the schedule for termination 
        of self-regulation authority as outlined in subsection (a), 
        including the activities to be coordinated with the Nuclear 
        Regulatory Commission and the Occupational Safety and Health 
        Administration;
          (2) a description of any issues remaining to be resolved with 
        the Nuclear Regulatory Commission, the Occupational Safety and 
        Health Administration, or other external regulators, and a 
        timetable for resolving such issues by the authority transfer 
        date established under this section; and
          (3) an estimate of--
                  (A) the annual cost of administering and implementing 
                self-regulation of the nuclear safety and occupational 
                safety and health responsibilities described in 
                subsections (b) and (c) at nonmilitary energy 
                laboratories owned or operated by the Department;
                  (B) the number of Federal and contractor employees 
                administering and implementing such self-regulation; 
                and
                  (C) the extent and schedule by which the Department 
                and the staffs at its nonmilitary energy laboratories 
                will be reduced as a result of implementation of this 
                section.
  (h) General Accounting Office Reporting Requirement.--The Comptroller 
General of the United States shall periodically report to the Congress 
on the progress made in implementing this section. The Comptroller 
General shall provide a report not later than 20 months after the date 
of enactment of this Act on the Department's transition plan, and not 
later than 26 months after the date of enactment of this Act on the 
implementation of Nuclear Regulatory Commission and Occupational Safety 
and Health Administration regulations in the nonmilitary energy 
laboratories.

                     TITLE III--CLEAN SCHOOL BUSES

SEC. 301. ESTABLISHMENT OF PILOT PROGRAM.

  (a) Establishment.--The Secretary of Energy, in consultation with the 
Administrator of the Environmental Protection Agency, shall establish a 
pilot program for awarding grants on a competitive basis to eligible 
entities for the demonstration and commercial application of 
alternative fuel school buses and ultra-low sulfur diesel school buses.
  (b) Requirements.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall establish and publish in the 
Federal register grant requirements on eligibility for assistance, and 
on implementation of the program established under subsection (a), 
including certification requirements to ensure compliance with this 
title.
  (c) Solicitation.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall solicit proposals for grants 
under this section.
  (d) Eligible Recipients.--A grant shall be awarded under this section 
only--
          (1) to a local or State governmental entity responsible for 
        providing school bus service to one or more public school 
        systems or responsible for the purchase of school buses; or
          (2) to a contracting entity that provides school bus service 
        to one or more public school systems, if the grant application 
        is submitted jointly with the school system or systems which 
        the buses will serve.
  (e) Types of Grants.--
          (1) In general.--Grants under this section shall be for the 
        demonstration and commercial application of technologies to 
        facilitate the use of alternative fuel school buses and ultra-
        low sulfur diesel school buses in lieu of buses manufactured 
        before model year 1977 and diesel-powered buses manufactured 
        before model year 1991.
          (2) No economic benefit.--Other than the receipt of the 
        grant, a recipient of a grant under this section may not 
        receive any economic benefit in connection with the receipt of 
        the grant.
          (3) Priority of grant applications.--The Secretary shall give 
        priority to awarding grants to applicants who can demonstrate 
        the use of alternative fuel buses and ultra-low sulfur diesel 
        school buses in lieu of buses manufactured before model year 
        1977.
  (f) Conditions of Grant.--A grant provided under this section shall 
include the following conditions:
          (1) All buses acquired with funds provided under the grant 
        shall be operated as part of the school bus fleet for which the 
        grant was made for a minimum of 5 years.
          (2) Funds provided under the grant may only be used--
                  (A) to pay the cost, except as provided in paragraph 
                (3), of new alternative fuel school buses or ultra-low 
                sulfur diesel school buses, including State taxes and 
                contract fees; and
                  (B) to provide--
                          (i) up to 10 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will only be available to the 
                        grant recipient; and
                          (ii) up to 15 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will be available to the grant 
                        recipient and to other bus fleets.
          (3) The grant recipient shall be required to provide at least 
        the lesser of 15 percent of the total cost of each bus received 
        or $15,000 per bus.
          (4) In the case of a grant recipient receiving a grant to 
        demonstrate ultra-low sulfur diesel school buses, the grant 
        recipient shall be required to provide documentation to the 
        satisfaction of the Secretary that diesel fuel containing 
        sulfur at not more than 15 parts per million is available for 
        carrying out the purposes of the grant, and a commitment by the 
        applicant to use such fuel in carrying out the purposes of the 
        grant.
  (g) Buses.--Funding under a grant made under this section may be used 
to demonstrate the use only of new alternative fuel school buses or 
ultra-low sulfur diesel school buses--
          (1) with a gross vehicle weight of greater than 14,000 
        pounds;
          (2) that are powered by a heavy duty engine;
          (3) that, in the case of alternative fuel school buses 
        manufactured in model years 2003 through 2006, 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
          (4) that, in the case of ultra-low sulfur diesel school 
        buses, emit not more than--
                  (A) for buses manufactured in 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
                  (B) for buses manufactured in model years 2004 
                through 2006, 2.5 grams per brake horsepower-hour of 
                nonmethane hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate matter,
        except that under no circumstances shall buses be acquired 
        under this section that emit nonmethane hydrocarbons, oxides of 
        nitrogen, or particulate matter at a rate greater than the best 
        performing technology of the same class of ultra-low sulfur 
        diesel school buses commercially available at the time the 
        grant is made.
  (h) Deployment and Distribution.--The Secretary shall seek to the 
maximum extent practicable to achieve nationwide deployment of 
alternative fuel school buses and ultra-low sulfur diesel school buses 
through the program under this section, and shall ensure a broad 
geographic distribution of grant awards, with a goal of no State 
receiving more than 10 percent of the grant funding made available 
under this section for a fiscal year.
  (i) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for any fiscal year for the acquisition of 
ultra-low sulfur diesel school buses.
  (j) Annual Report.--Not later than January 31 of each year, the 
Secretary of Energy shall provide a report evaluating implementation of 
the program under this title to the Congress. Such report shall include 
the total number of grant applications received, the number and types 
of alternative fuel buses and ultra-low sulfur diesel school buses 
requested in grant applications, a list of grants awarded and the 
criteria used to select the grant recipients, certified engine emission 
levels of all buses purchased under the program, and any other 
information the Secretary considers appropriate.
  (k) Definitions.--For purposes of this section--
          (1) the term ``alternative fuel school bus'' means a bus 
        powered substantially by electricity (including electricity 
        supplied by a fuel cell), or by liquefied natural gas, 
        compressed natural gas, liquefied petroleum gas, hydrogen, 
        propane, or methanol or ethanol at no less than 85 percent by 
        volume; and
          (2) the term ``ultra-low sulfur diesel school bus'' means a 
        school bus powered by diesel fuel which contains sulfur at not 
        more than 15 parts per million.

SEC. 302. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.

  (a) Establishment of Program.--The Secretary shall establish a 
program for entering into cooperative agreements with private sector 
fuel cell bus developers for the development of fuel cell-powered 
school buses, and subsequently with not less than 2 units of local 
government using natural gas-powered school buses and such private 
sector fuel cell bus developers to 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) Funding.--No more than $25,000,000 of the amounts authorized 
under section 304 may be used for carrying out this section for the 
period encompassing fiscal years 2004 through 2006.
  (d) Reports to Congress.--Not later than 3 years after the date of 
the enactment of this Act, and not later than October 1, 2006, the 
Secretary shall transmit to the Congress a report that--
          (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school buses; 
        and
          (2) assesses the results of the development and demonstration 
        program under this section.

SEC. 303. DIESEL RETROFIT PROGRAM.

  (a) Establishment.--The Administrator of the Environmental Protection 
Agency and the Secretary shall establish a pilot program for awarding 
grants on a competitive basis to eligible recipients for the 
demonstration and commercial application 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 one or more public school 
        systems; or
          (2) to a contracting entity that provides school bus service 
        to one or more public school systems, if the grant application 
        is submitted jointly with the school system or systems which 
        the buses will serve.
  (c) Conditions of Grant.--A grant provided under this section may be 
used only to demonstrate the use of retrofit emissions-control 
technology on diesel buses that--
          (1) operate on ultra-low sulfur diesel fuel; and
          (2) were manufactured in model year 1991 or later.
  (d) Verification.--Not later than 3 months 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; and
          (2) that buses 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.

SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

  (a) School Bus Grants.--There are authorized to be appropriated to 
the Secretary for carrying out this title, to remain available until 
expended--
          (1) $90,000,000 for fiscal year 2004;
          (2) $100,000,000 for fiscal year 2005; and
          (3) $110,000,000 for fiscal year 2006.
  (b) Retrofit Grants.--There are authorized to be appropriated to the 
Administrator of the Environmental Protection Agency and the Secretary 
such sums as may be necessary for carrying out section 303.

           TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES

SEC. 401. DEFINITIONS.

  For the purposes of this title, the following definitions apply:
          (1) Alternative fueled vehicle.--The term ``alternative 
        fueled vehicle'' means a vehicle propelled solely on an 
        alternative fuel as defined in section 301 of the Energy Policy 
        Act (42 U.S.C. 13211), except the term does not include any 
        vehicle that the Secretary determines, by rule, does not yield 
        substantial environmental benefits over a vehicle operating 
        solely on gasoline or diesel derived from fossil fuels.
          (2) Fuel cell vehicle.--The term ``fuel cell vehicle'' means 
        a vehicle propelled by 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 that is more efficient than its 
        non-hybrid counterpart and that draws propulsion energy from 
        both an internal combustion engine using any combustible fuel 
        and an onboard energy storage device.
          (4) Neighborhood electric vehicle.--The term ``neighborhood 
        electric vehicle'' means a motor vehicle capable of traveling 
        at speeds of 25 miles per hour that is--
                  (A) a low-speed vehicle, as such term is defined in 
                section 571.3(b) of title 49, Code of Federal 
                Regulations;
                  (B) a zero-emission vehicle, as such term is defined 
                in section 86.1702-99 of title 40, Code of Federal 
                Regulations; and
                  (C) otherwise lawful to use on local streets.
          (5) Pilot program.--The term ``pilot program'' means the 
        competitive grant program established under section 402.
          (6) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
        sulfur diesel vehicle'' means a vehicle manufactured in model 
        years 2003 through 2006 powered by a heavy-duty diesel engine 
        that--
                  (A) is fueled by diesel fuel which contains sulfur at 
                not more than 15 parts per million; and
                  (B) emits not more than the lesser of--
                          (i) for vehicles manufactured in--
                                  (I) model 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 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. 402. PILOT PROGRAM.

  (a) Establishment.--The Secretary shall establish a competitive grant 
pilot program, to be administered through the Clean Cities Program of 
the Department of Energy, to provide not more than 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.--Grants under this section may be used for the 
following purposes:
          (1) The acquisition of alternative fueled vehicles or fuel 
        cell vehicles, including--
                  (A) passenger vehicles including neighborhood 
                electric vehicles; and
                  (B) motorized two-wheel bicycles, scooters, or other 
                vehicles for use by law enforcement personnel or other 
                State or local government or metropolitan 
                transportation authority employees.
          (2) The acquisition of alternative fueled vehicles, hybrid 
        vehicles, or fuel cell vehicles, including--
                  (A) buses used for public transportation or 
                transportation to and from schools;
                  (B) delivery vehicles for goods or services; and
                  (C) ground support vehicles at public airports, 
                including vehicles to carry baggage or push airplanes 
                away from terminal gates.
          (3) The acquisition of ultra-low sulfur diesel vehicles.
          (4) Infrastructure necessary to directly support an 
        alternative fueled vehicle or fuel cell vehicle project funded 
        by the grant, including fueling and other support equipment.
          (5) Operation and maintenance of vehicles, infrastructure, 
        and equipment acquired as part of a project funded by the 
        grant.
  (c) Applications.--
          (1) Requirements.--The Secretary shall issue requirements for 
        applying for grants under the pilot program. At a minimum, the 
        Secretary shall require that applications be submitted by the 
        head of a State or local government or a metropolitan 
        transportation authority, or any combination thereof, and a 
        registered participant in the Clean Cities Program of the 
        Department of Energy, and shall include--
                  (A) at least one project to enable passengers or 
                goods to be transferred directly from vehicles acquired 
                under this section to a local, regional, or national 
                transportation system;
                  (B) a description of the projects proposed in the 
                application, including how they meet the requirements 
                of this title;
                  (C) an estimate of the ridership or degree of use of 
                the projects proposed in the application;
                  (D) an estimate of the air pollution emissions 
                reduced and fossil fuel displaced as a result of the 
                projects proposed in the application, and a plan to 
                collect and disseminate environmental data, related to 
                the projects to be funded under the grant, over the 
                life of the projects;
                  (E) a description of how the projects proposed in the 
                application will be sustainable without Federal 
                assistance after the completion of the term of the 
                grant;
                  (F) a complete description of the costs of each 
                project proposed in the application, including 
                acquisition, construction, operation, and maintenance 
                costs over the expected life of the project;
                  (G) a description of which costs of the projects 
                proposed in the application will be supported by 
                Federal assistance under this title; and
                  (H) documentation to the satisfaction of the 
                Secretary that diesel fuel containing sulfur at not 
                more than 15 parts per million is available for 
                carrying out the projects, and a commitment by the 
                applicant to use such fuel in carrying out the 
                projects.
          (2) Partners.--An applicant under paragraph (1) may carry out 
        projects under the pilot program in partnership with public and 
        private entities.
  (d) Selection Criteria.--In evaluating applications under the pilot 
program, the Secretary shall consider each applicant's previous 
experience with similar projects and shall give priority consideration 
to applications that--
          (1) are most likely to maximize protection of the 
        environment;
          (2) demonstrate the greatest commitment on the part of the 
        applicant to ensure funding for the proposed projects and the 
        greatest likelihood that each project proposed in the 
        application will be maintained or expanded after Federal 
        assistance under this title is completed; and
          (3) exceed the minimum requirements of subsection (c)(1)(A).
  (e) Pilot Project Requirements.--
          (1) Maximum amount.--The Secretary shall not provide more 
        than $20,000,000 in Federal assistance under the pilot program 
        to any applicant.
          (2) Cost sharing.--The Secretary shall not provide more than 
        50 percent of the cost, incurred during the period of the 
        grant, of any project under the pilot program.
          (3) Maximum period of grants.--The Secretary shall not fund 
        any applicant under the pilot program for more than 5 years.
          (4) Deployment and distribution.--The Secretary shall seek to 
        the maximum extent practicable to ensure a broad geographic 
        distribution of project sites.
          (5) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the pilot program are 
        transferred among the pilot program participants and to other 
        interested parties, including other applicants that submitted 
        applications.
  (f) Schedule.--
          (1) Publication.--Not later than 3 months after the date of 
        the enactment of this Act, the Secretary shall publish in the 
        Federal Register, Commerce Business Daily, and elsewhere as 
        appropriate, a request for applications to undertake projects 
        under the pilot program. Applications shall be due within 6 
        months of the publication of the notice.
          (2) Selection.--Not later than 6 months after the date by 
        which applications for grants are due, the Secretary shall 
        select by competitive, peer review all applications for 
        projects to be awarded a grant under the pilot program.
  (g) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for the acquisition of ultra-low sulfur 
diesel vehicles.

SEC. 403. REPORTS TO CONGRESS.

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

SEC. 404. FUEL CELL TRANSIT BUS DEMONSTRATION.

  The Secretary shall establish a transit bus demonstration program to 
make competitive, merit-based awards for five-year projects to 
demonstrate not more than 12 fuel cell transit buses (and necessary 
infrastructure) in three geographically dispersed localities. In 
selecting projects under this section, the Secretary shall give 
preference to projects that are most likely to mitigate congestion and 
improve air quality.

SEC. 405. AUTHORIZATION OF APPROPRIATIONS.

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

                          TITLE V--CLEAN COAL

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

  (a) Clean Coal Power Initiative.--Except as provided in subsection 
(b), there are authorized to be appropriated to the Secretary to carry 
out the activities authorized by this title $200,000,000 for each of 
the fiscal years 2003 through 2011, to remain available until expended.
  (b) Limit on Use of Funds.--Notwithstanding subsection (a), no funds 
may be used to carry out the activities authorized by this title after 
September 30, 2005, unless the Secretary has transmitted to the 
Committee on Energy and Commerce and the Committee on Science of the 
House of Representatives, and to the Senate, the report required by 
this subsection and one month has elapsed since that transmission. The 
report shall include, with respect to subsection (a), a 10-year plan 
containing--
          (1) a detailed assessment of whether the aggregate funding 
        levels provided under subsection (a) are the appropriate 
        funding levels for that program;
          (2) a detailed description of how proposals will be solicited 
        and evaluated, including a list of all activities expected to 
        be undertaken;
          (3) a detailed list of technical milestones for each coal and 
        related technology that will be pursued; and
          (4) a detailed description of how the program will avoid 
        problems enumerated in General Accounting Office reports on the 
        Clean Coal Technology Program, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.
  (c) Applicability.--Subsection (b) shall not apply to any project 
begun before September 30, 2005.

SEC. 502. PROJECT CRITERIA.

  (a) In General.--The Secretary shall not provide funding under this 
title for any project that does not advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that 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 the enactment of 
this Act.
  (b) Technical Criteria for Clean Coal Power Initiative.--
          (1) Gasification.--(A) In allocating the funds made available 
        under section 501(a), the Secretary shall ensure that at least 
        80 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) The Secretary shall set technical milestones specifying 
        emissions levels that coal gasification projects must be 
        designed to and reasonably expected to achieve. The milestones 
        shall get more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2020 coal 
        gasification projects able--
                  (i) to remove 99 percent of sulfur dioxide;
                  (ii) to emit no more than .05 lbs of NOx per million 
                BTU;
                  (iii) to achieve substantial reductions in mercury 
                emissions; and
                  (iv) to achieve a thermal efficiency of--
                          (I) 60 percent for coal of more than 9,000 
                        Btu;
                          (II) 59 percent for coal of 7,000 to 9,000 
                        Btu; and
                          (III) 50 percent for coal of less than 7,000 
                        Btu.
          (C) Beginning in fiscal year 2009, the Secretary may use 
        funds under this paragraph for a project that does not meet the 
        criteria described in subparagraph (A), but only if--
                  (i) the Secretary finds that the project is likely to 
                result in greater emissions reductions than would a 
                project funded pursuant to subparagraph (A);
                  (ii) the Secretary finds that the project would 
                permit (but not necessarily include) the activities 
                described in paragraph (5); and
                  (iii) the Secretary notifies the Congress of the 
                project at the time when it is approved.
          (2) Other projects.--For projects not described in paragraph 
        (1), the Secretary shall set technical milestones specifying 
        emissions levels that the projects must be designed to and 
        reasonably expected to achieve. The milestones shall get more 
        restrictive through the life of the program. The milestones 
        shall be designed to achieve by 2010 projects able--
                  (A) to remove 97 percent of sulfur dioxide;
                  (B) to emit no more than .08 lbs of NOx per million 
                BTU;
                  (C) to achieve substantial reductions in mercury 
                emissions; and
                  (D) 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 existing 
        units, in lieu of the thermal efficiency requirements set forth 
        in paragraph (1)(B)(iv) and (2)(D), the projects shall be 
        designed to achieve an overall thermal design efficiency 
        improvement compared to the efficiency of the unit as operated, 
        of not less than--
                  (A) 7 percent for coal of more than 9,000 Btu;
                  (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                  (C) 4 percent for coal of less than 7,000 Btu.
          (5) Permitted uses.--In allocating funds made available under 
        section 501, the Secretary may fund projects that include, as 
        part of the project, the separation and capture of carbon 
        dioxide.
  (c) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient has documented to the 
satisfaction of the Secretary that--
          (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
          (2) the recipient will provide sufficient information to the 
        Secretary for the Secretary to ensure that the award funds are 
        spent efficiently and effectively; and
          (3) a market exists for the technology being demonstrated or 
        applied, as evidenced by statements of interest in writing from 
        potential purchasers of the technology.
  (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of subsections (a), 
(b), and (c) and are likely to--
          (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
          (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements; 
        and
          (3) demonstrate methods and equipment that are applicable to 
        25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of the enactment 
        of this Act.
  (e) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary shall not exceed 50 
percent.
  (f) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act, achievable for purposes of section 169 of that 
Act, or achievable in practice for purposes of section 171 of that Act 
solely by reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving assistance 
under this title.

SEC. 503. REPORT.

  Not later than 1 year after the date of the enactment of this Act, 
and once every 2 years thereafter through 2011, the Secretary, in 
consultation with other appropriate Federal agencies, shall transmit to 
the Committee on Energy and Commerce and the Committee on Science of 
the House of Representatives, and to the Senate, a report describing--
          (1) the technical milestones set forth in section 502 and how 
        those milestones ensure progress toward meeting the 
        requirements of subsections (b)(1)(B) and (b)(2) of section 
        502; and
          (2) the status of projects funded under this title.

SEC. 504. CLEAN COAL CENTERS OF EXCELLENCE.

  As part of the program authorized in section 501, the Secretary shall 
award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that can 
show the greatest potential for advancing new clean coal technologies.

                        II. Purpose of the Bill

    The purpose of H.R. 238, the Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003, is to 
authorize appropriations for scientific and energy research, 
development, and demonstration (RD&D;), and commercial 
application of energy technology programs, projects, and 
activities of the Department of Energy (Department or DOE), and 
for other purposes.

                III. Background and Need for Legislation

    Affordable energy is essential to the Nation's continued 
prosperity. Volatile world oil markets, along with soaring 
natural gas and electricity prices, have replaced the 
relatively low energy prices enjoyed over most of the past two 
decades. In addition, there are increasing concerns about the 
environmental impacts of energy use. Consequently, energy is 
again on the front burner of the Nation's agenda.
    The Committee on Science has a significant role in the 
legislative implementation of energy policy. Under rule X, 
clause 1(n)(1) of the Rules of the House, the Committee on 
Science has jurisdiction over ``all bills, resolutions, and 
other matters relating to * * * [all] energy research, 
development, and demonstrations, and projects therefor, * * 
*''. Similarly, the Committee has jurisdiction over 
environmental research and development (R&D;) under rule X, 
clause 1(n)(4); over the commercial application of energy 
technology under rule X, clause 1(n)(6); and over scientific 
RD&D; under rule X, clause 1(n)(14).
    H.R. 238 focuses on DOE's support of major energy RD&D; and 
commercial application activities, including those related to 
solar and renewable energy, energy efficiency, fossil energy, 
and nuclear and fusion energy. DOE also is a major funding 
source for basic research in the physical sciences.
    DOE's general authority lies in several statutes--including 
the Atomic Energy Act of 1954 (P.L. 83-703), the Energy 
Reorganization Act of 1974 (P.L. 93-438), the Federal 
Nonnuclear Energy Research and Development Act of 1974 (P.L. 
93-577), and the Department of Energy Organization Act (P.L. 
95-91), which established DOE in the Executive Branch on 
October 1, 1977 as a cabinet-level agency. Beyond this general 
authority, statutes such as the Energy Policy Act of 1992 (P.L. 
102-486) authorize numerous specific RD&D; and commercial 
application activities. However, with two exceptions--methane 
hydrate R&D; and Renewable Indian Energy Resources--none of the 
Department's existing civilian programs has specific fiscal 
authorizations for fiscal year 2004 and beyond. As a 
consequence, there is a need for a comprehensive authorization 
bill to provide guidance and direction to the Department that 
will preserve and strengthen the Nation's energy future and 
science base.
    H.R. 238 as introduced is virtually identical to the 
provisions related to DOE's science and technology programs 
that were negotiated in the conference conducted in the 107th 
Congress in connection with H.R. 4, the Securing America's 
Future Energy Act of 2001. These negotiations were conducted by 
conferees and staff from the Committee on Science of the House 
of Representatives and the Committee on Energy and Natural 
Resources of the Senate, with the participation of the 
Committee on Energy and Commerce of the House of 
Representatives, which managed the bill.
    H.R. 4 was omnibus energy legislation intended ``[t]o 
enhance energy conservation, research and development and to 
provide for security and diversity in the energy supply for the 
American people, and for other purposes.'' The Science 
Committee developed the legislative provisions in Division B, 
relating to energy RD&D.; It also developed the provisions in 
Division E, relating to clean coal technology, in conjunction 
with the Committee on Energy and Commerce. Division B was taken 
from the text of H.R. 2460, the Comprehensive Energy Research 
and Technology Act of 2001, introduced by Science Committee 
Chairman Sherwood Boehlert (NY-23) on July 11, 2001. H.R. 2460 
was based on information gathered at a series of hearings by 
the Committee on Science and on the recommendations of the 
Administration's National Energy Policy Development Group, 
published in May, 2001. The bill was referred solely to the 
Committee on Science, which marked up the bill on July 18, 2001 
and reported the bill to the full House on July 31, 2001 (H. 
Rept. 107-177). Division E, relating to Federal clean coal 
technology program authorizations, also originated as the text 
of H.R. 2460, with changes negotiated with the Committee on 
Energy and Commerce.
    H.R. 4 was introduced in the House on July 27, 2001. It was 
referred to the Committee on Energy and Commerce and, in 
addition, to the Committees on Science, Ways and Means, 
Resources, Education and the Workforce, Transportation and 
Infrastructure, the Budget, and Financial Services. The Science 
Committee discharged the bill on July 31, 2001, on which date 
the Committee on Rules filed H. Rept. 107-178 on H. Res. 216, 
providing for consideration of H.R. 4.
    On August 2, 2001, the House passed H.R. 4, as amended, by 
the Yeas and Nays: 240-189 (Roll Call No. 320).
    On April 25, 2002, the Senate passed H.R. 4, by the Yeas 
and Nays: 88-11 (Roll Call No. 94) after striking all after the 
enacting clause and inserting the text of S. 517, the Senate 
companion measure, as amended. The Senate Amendment contained 
several titles and provisions falling within the jurisdiction 
of the Committee on Science, including provisions related to 
energy research, development, demonstration and commercial 
application of energy technology (Sections 513-516, 770-772, 
807-809, 814--816, 824, 832, Titles XII, Title XIV, Sections 
1502, 1504-1505, Title XVI and Sections 1801-1805), 
indemnification of nuclear energy programs (Sections 501-507, 
and 509), and global climate change policy and climate science 
and technology (Sections 1001-1022 and Titles XI and XIII).
    On May 1, 2002, the Senate Majority Leader appointed Mr. 
Bingaman, Mr. Hollings, Mr. Baucus, Mr. Kerry, Mr. Rockefeller, 
Mr. Breaux, Mr. Reid (NV), Mr. Jeffords, Mr. Lieberman, Mr. 
Murkowski, Mr. Domenici, Mr. Grassley, Mr. Nickles, Mr. Lott, 
Mr. Craig, Mr. Campbell and Mr. Thomas to the Committee on 
Conference on H.R. 4.
    The House disagreed with the Senate amendment to H.R. 4 and 
agreed to a conference, ultimately naming 48 conferees from the 
House. From the Committee on Science, the Speaker appointed Mr. 
Boehlert, Mr. Bartlett (MD), and Mr. Hall (TX), provided that 
Mr. Costello be appointed in lieu of Mr. Hall for consideration 
of Division E and Ms. Woolsey be appointed in lieu of Mr. Hall 
for consideration of sections 2001-2178 and 2201-2261 of 
Division B of the House bill and modifications committed to 
conference.
    The Conferees met on June 27, July 25, September 12, 19, 25 
and 26, and October 2 and 3, of 2002 and reached agreement on a 
number of key provisions in the Conference, including 
provisions related to Clean Coal RD&D.; In addition, in 
discussions on the remainder of the bill's provisions relating 
to energy RD&D; and the commercial application of energy 
technology, conferees reached consensus on the overwhelming 
majority of issues, with the House and Senate exchanging offers 
that were identical on all but a few issues. However, the 
Conferees were unable to resolve differences on the remainder 
of the bill and the legislation died with the adjournment of 
the 107th Congress.
    H.R. 238, as introduced, reflects the final House position 
on energy science and technology issues in the unconcluded 
conference on H.R. 4. As such, H.R. 238 represents, in many 
instances, compromise positions negotiated between the House 
and Senate aimed at developing a balanced energy RD&D; program.

                        IV. Summary of Hearings

    During the 107th Congress, the Full Committee on Science 
held four hearings, and the Subcommittee on Energy held nine 
hearings relevant to H.R. 238. Those hearings are described in 
the Summary of Activities, Committee on Science, U.S. House of 
Representatives for the 107th Congress (H. Rept. 107-809).
    Thus far, during the 108th Congress, the Full Committee on 
Science has held three hearings relevant to H.R. 238:
    1. February 13, 2003 hearing on ``An Overview of the 
Federal R&D; Budget for Fiscal Year 2004.'' Appearing as 
witnesses were (1) Dr. John Marburger, Director, Office of 
Science and Technology Policy (OSTP); (2) Dr. Samuel W. Bodman, 
Deputy Secretary, Department of Commerce; (3) Dr. Rita R. 
Colwell, Director, National Science Foundation (NSF); and (4) 
Mr. Robert Card, Under Secretary of Energy for Energy, Science 
and Environment, DOE.
    2. March 5, 2003 hearing on ``The Path to a Hydrogen 
Economy.'' Appearing as witnesses were (1) Mr. David Garman, 
Assistant Secretary for Energy Efficiency and Renewable Energy, 
Department of Energy; (2) Dr. Allan C. Lloyd, Chairman, 
California Fuel Cell Partnership; (3) Dr. Joan Ogden, Research 
Scientist, Princeton Environmental Institute; (4) Dr. Larry 
Burns, Vice President, Research, Development and Planning, 
General Motors; and (5) Mr. Don Huberts, Chief Executive 
Officer, Shell Hydrogen.
    3. March 19, 2003 hearing on ``H.R. 766, The Nanotechnology 
Research and Development Act of 2003.'' Appearing as witnesses 
were (1) Senator George Allen (R-VA); (2) Senator Ron Wyden (D-
OR); (3) Mr. Richard M. Russell, Associate Director for 
Technology, OSTP; (4) Dr. Thomas N. Theis, Director of Physical 
Sciences, IBM Research Division, Thomas J. Watson Research 
Center in Yorktown, New York; (5) Dr. James Roberto, the 
Associate Laboratory Director for Physical Sciences, Oak Ridge 
National Laboratory; (6) Dr. Carl A. Batt, Co-Director, 
Nanobiotechnology Center, Cornell University; and (7) Mr. Alan 
Marty, executive-in-residence, JP Morgan.

                          V. Committee Actions

    As summarized in H. Rept. 107-809, the Full Committee on 
Science heard testimony in the 107th Congress relevant to the 
programs authorized in H.R. 238 at hearings held on February 
28, May 23, and June 21, 2001, and on February 2, 2002; the 
Subcommittee on Energy heard testimony relevant to the programs 
authorized in H.R. 238 at hearings held on March 22, April 26, 
May 3, May 17, May 24, June 12, and June 14, 2001, and on June 
24 and June 26, 2002.
    On January 8, 2003, Chairman Sherwood L. Boehlert of the 
Committee on Science introduced H.R. 238, the Energy Research, 
Development, Demonstration, and Commercial Application Act of 
2003, a bill to provide for Federal energy research, 
development, demonstration, and commercial application 
activities, and for other purposes.
    As summarized above, the Full Committee heard testimony in 
the 108th Congress relevant to the programs authorized in H.R. 
238 at hearings held on February 13, March 5, and March 19, 
2003.
    The Subcommittee on Energy was discharged from further 
consideration of H.R. 238 on March 20, 2003.
    The Committee on Science met to consider H.R. 238 on 
Wednesday, April 2, 2003, and considered the following 
amendments to the bill:
    1. Mr. Miller offered an amendment to allow DOE to make 
grants to nonprofit institutions to establish a nationwide 
network of Advanced Energy Technology Transfer Centers. The 
amendment was adopted by voice vote.
    2. Mr. Matheson offered an amendment to require the 
demonstration and field testing of distributed generation 
systems. He asked for unanimous consent to offer his amendment 
out of order, not to the bill, but to the en bloc amendments 
(number 8) to be offered by Chairman Boehlert and Ranking 
Member Hall. The unanimous consent request was agreed to and 
the amendment was adopted as part of the en bloc amendments.
    3. Mr. Costello and Mr. Calvert offered an amendment to the 
bill to require the Nuclear Regulatory Commission (NRC) and 
Occupational Safety and Health Administration (OSHA) to 
regulate nuclear and worker safety and health at DOE's non-
military laboratories. The amendment was adopted by voice vote.
    4. Mrs. Biggert, Mr. Davis (TN) and Mr. Smith (MI) offered 
an amendment to authorize the Genomes to Life program. The 
amendment was adopted by voice vote.
    5. Mr. Udall (CO) offered an amendment regarding Federal 
Laboratory Educational Partners. The amendment was adopted by 
voice vote.
    6. Ms. Jackson-Lee offered an amendment to promote 
interagency cooperation between the Department of Energy and 
the National Aeronautics and Space Administration. The 
amendment was adopted by voice vote.
    7. Mr. Rohrabacher offered an amendment to authorize a DOE 
graduate scholarship program for U.S. citizens. The amendment 
was adopted by voice vote.
    8. Chairman Boehlert and Mr. Hall offered amendments en 
bloc to various portions of the bill. The en bloc amendments, 
which were accepted en bloc and agreed to by voice vote, 
comprised many technical, clarifying and conforming changes, as 
well as a number of substantive changes to the underlying bill 
as follows:
          a. deleted all funding authorizations for fiscal year 
        2003;
          b. redesignated sections 101 (Purposes), 102 (Goals), 
        and 103 (Definitions) as section 2, 3, and 4 and 
        modified them to apply to the entire Act;
          c. amended section 3, as redesignated, to adjust 
        specific technology and performance goals for various 
        programs authorized by the Act so they better reflect 
        current research targets and to include performance 
        goals for the production and delivery of hydrogen;
          d. amended section 4, as redesignated, to delete the 
        Environmental Measurement Laboratory, which was 
        transferred to the Department of Homeland Security, 
        from the definition of ``Single-Purpose Research 
        Facilities'';
          e. added a new section (Section 106A. Electric Motor 
        Control Technology) to direct the Secretary of Energy 
        (the Secretary) to conduct a research, development, 
        demonstration, and commercial application program on 
        advanced control devices to improve energy efficiency 
        of electric motors used in heating, ventilation, and 
        air conditioning (HVAC) and comparable systems and 
        amended section 104 (Energy Efficiency);
          f. amended section 106 (National Building Performance 
        Initiative) to include a requirement that DOE 
        coordinate with the National Institute of Building 
        Sciences when implementing the National Building 
        Performance Initiative;
          g. struck section 109 (Advanced Vehicle Technology), 
        which was superseded by subtitle H of title I 
        (Hydrogen);
          h. amended section 111 (Distributed Energy and 
        Electric Energy Systems) to adjust the authorization of 
        appropriations for section 114 (Micro-Cogeneration 
        Energy Technology);
          i. amended section 112 (Strategy) to include 
        research, development, demonstration, and commercial 
        application of interconnection technologies for 
        communications and controls of distributed generation 
        architectures as part of the distributed power 
        strategy;
          j. amended section 121 (Renewable Energy) to delete 
        funding authorization for hydrogen programs, which were 
        superseded by subtitle H of title I, to provide 
        additional authorization allocations for a new section 
        127 (Renewable Energy in Public Buildings), and to 
        provide a specific authorization for the Regional Field 
        Verification Program;
          k. amended section 126 (Miscellaneous Projects) to 
        require the Secretary to enter into an arrangement with 
        the National Academy of Sciences to conduct a study on 
        the feasibility of renewable generation of energy from 
        the ocean;
          l. added a new section 127 (Renewable Energy in 
        Public Buildings) to require the Secretary to establish 
        a program for the demonstration of technologies for 
        solar and other renewable energy sources in State or 
        local government buildings;
          m. amended section 131 (Nuclear Energy) to conform to 
        the format of the rest of the bill, to increase the 
        overall funding for nuclear energy to reflect the 
        President's request for fiscal year 2004, and to adjust 
        the authorization allocations for University Programs;
          n. added a new section (section 135. Geological 
        Isolation of Spent Fuel) to require the Secretary to 
        establish a program to determine the feasibility of 
        deep borehole disposal of spent nuclear fuel and high-
        level radioactive waste;
          o. amended section 141 (Fossil Energy) to clarify 
        that Fossil Energy funding in title I, subtitle E is 
        separate from Clean Coal funding in title V;
          p. amended section 142 (Fossil Energy Research 
        Programs) to remove the limitation on authority to use 
        funds to carry out the program absent transmittal of 
        the report required under the section, to add a 
        coordination requirement for the fuel cell research, 
        development, demonstration and commercial application 
        program, and to add technology transfer requirements 
        related to oil and gas exploration;
          q. added a new section (section 150A. Transfer of 
        Advanced Oil and Gas Exploration and Production 
        Technologies) to require the Secretary to review 
        government-wide technology programs to assess their 
        suitability to ultra-deepwater research, development, 
        demonstration, and commercial application and to issue 
        a solicitation for management of technology transfer 
        activities;
          r. amended section 161 (Science) to provide greater 
        authorizations for fiscal years 2006 and 2007 and to 
        provide specific authorization allocations for sections 
        161A, 162, and 169 relating to fusion energy and 
        nanotechnology;
          s. added a new section (section 161A. ITER) to 
        authorize the United States participation in an 
        international fusion experiment known as ITER, provided 
        that the conditions set forth in section 161A are met;
          t. modified section 162 (Plan for Fusion Experiment) 
        to require a plan for a domestic burning plasma 
        experiment if the Secretary deems the construction and 
        operation of ITER to be unlikely or infeasible;
          u. modified section 163 (Plan for Fusion Energy 
        Sciences Program) to include additional elements in the 
        plan for United States fusion research, development, 
        demonstration and commercial application;
          v. amended section 169 (Nanoscale Science and 
        Engineering Research) to delete the separate 
        authorization for user facilities, to redesignate the 
        section as ``Nanotechnology Research and Development''; 
        and to require research on societal and ethical 
        concerns related to nanotechnology research;
          w. added a new section (section 170A. Nitrogen 
        Fixation) to require the Secretary to support a program 
        on biological nitrogen fixation, including plant 
        genomics research;
          x. deleted section 177 (Technology Transfer);
          y. added a new section (section 178. Fuel Test 
        Center) to require the Secretary to transmit to the 
        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;
          z. added a new subtitle (subtitle H. Hydrogen) to 
        authorize the President's FreedomCAR and Hydrogen 
        Initiative programs, which (a) creates a research, 
        development, demonstration, and commercial application 
        program for hydrogen-powered fuel cell vehicles and the 
        refueling infrastructure to support them, with the goal 
        of enabling the automotive industry to make a decision 
        to bring such vehicles to market by 2015; (b) makes 
        clear that the program should include research on 
        producing hydrogen from fossil fuels (with carbon 
        sequestration), renewable energy, and nuclear power; 
        (c) ensures that grants awarded under the program are 
        competitive and subject to merit review; (d) requires 
        DOE to submit a detailed plan to Congress describing 
        the program's research agenda, the technical milestones 
        used to evaluate the performance of the program, and 
        the role that national laboratories, universities, 
        small businesses and other partners will play; (e) 
        specifies criteria demonstration projects must meet; 
        (f) creates an interagency task force to assist in the 
        implementation of the program and an advisory 
        committee, comprising representatives from domestic 
        industry, academia, professional societies, government 
        agencies and other organizations to provide advice to 
        the Secretary; (g) requires a competitively selected 
        non-governmental body, such as the National Academy of 
        Sciences, to review the program's research plan and 
        conduct a biennial review of the progress made by the 
        program; and (h) authorizes $1.8 billion for the 
        program over five years;
          aa. added new requirements for utilization, 
        establishment and responsibilities of advisory 
        committees within the Office of Science;
          bb. added a new section 194 (University 
        Collaboration) to require the Secretary to submit to 
        the Congress a report examining the feasibility of 
        collaboration between small and large institutions of 
        higher education for energy projects;
          cc. added a new section 202 (Report on Equal 
        Employment Opportunity Practices) to require the 
        Secretary to submit to the Congress a biennial report 
        on the equal employment opportunity practices at 
        nonmilitary energy laboratories;
          dd. added a new section 303 (Diesel Retrofit Program) 
        to require the Administrator of the Environmental 
        Protection Agency (EPA) and the Secretary to establish 
        a program for awarding grants for the demonstration and 
        commercial application of retrofit technologies for 
        diesel school buses as part of the Clean School Bus 
        program in title III of the underlying bill; and
          ee. added a new section 404 (Fuel Cell Transit Bus 
        Demonstration) to require the Secretary to establish a 
        transit bus demonstration program to make awards for 
        projects to demonstrate fuel cell transit buses with 
        preference given to projects likely to mitigate 
        congestion and improve air quality;
    9. Mr. Wu offered an amendment to the en bloc amendments 
(number 8) to direct the Secretary to work with the National 
Institute of Standards and Technology (NIST), Institute of 
Electrical and Electronics Engineers (IEEE), and other 
standards development organizations to develop voluntary 
consensus standards for distributed energy systems. The 
amendment was adopted as part of the en bloc by voice vote.
    10. Ms. Eddie Bernice Johnson offered an amendment to the 
en bloc amendments (number 8) to establish a timeframe for the 
safe and convenient commercial production and delivery of 
hydrogen. The amendment was adopted as part of the en bloc by 
voice vote.
    11. Mr. Sherman and Mr. Bell offered an amendment to the en 
bloc amendments (number 8) to specify research to be conducted 
by DOE on the societal and ethical aspects of nanotechnology. 
Chairman Boehlert asked for unanimous consent that the 
amendment be incorporated into the en bloc amendments (number 
8). The request was agreed to and the amendment was adopted as 
part of the en bloc amendments by voice vote.
    12. Mr. Udall (CO) offered an amendment regarding Global 
Change Research and Data Management. The amendment was 
withdrawn.
    With a quorum present, Mr. Hall moved that the Committee 
favorably report the bill, H.R. 238, as amended, to the House 
with the recommendation that the bill as amended do pass; that 
the staff be instructed to prepare the legislative report and 
make necessary technical and conforming changes; and that the 
Chairman take all necessary steps to bring the bill before the 
House for consideration. The motion was agreed to by voice 
vote.
    Mr. Boehlert moved that: (1) Members have two subsequent 
calendar days in which to submit supplemental, minority or 
additional views on the measure; and (2) pursuant to clause 1 
of rule XXII of the Rules of the House of Representatives, the 
Chairman may offer such motions as may be necessary in the 
House to go to conference with the Senate on H.R. 238 or a 
similar Senate bill.

                VI. Summary of Major Provisions of Bill

    Sections 1 through 4 of the bill contain a short title, 
purposes, goals and definitions. The goals section includes 
quantitative near-term and long-term goals for energy 
efficiency, distributed energy and electric energy systems, 
renewable energy, fossil energy, nuclear energy, and hydrogen.

                   TITLE I--RESEARCH AND DEVELOPMENT

    Subtitle A (Energy Efficiency) authorizes $2.9 billion for 
fiscal years 2004-2007 including $200 million for a Next 
Generation Lighting Initiative, $25 million for secondary 
electric vehicle battery recycling and $110 million for the 
Energy Efficiency Science Initiative.
    Subtitle B (Distributed Energy and Electric Energy Systems) 
authorizes $850 million for fiscal years 2004-2007, including 
authorization for a strategy to develop renewable-fossil 
distributed hybrid power systems and programs relating to high 
power density industries, and $23 million for micro-
cogeneration and authorization for transmission infrastructure 
system RD&D; and commercial application programs.''
    Subtitle C (Renewable Energy) authorizes $1.8 billion for 
fiscal years 2004-2007 including $639 million for bioenergy, 
and $120 million for grants to local governments for use of 
renewables in public buildings.
    Subtitle D (Nuclear Energy) authorizes $1.7 billion for 
fiscal years 2004-2007, including authorizations for Nuclear 
Power 2010, the ``Gen IV'' program, and the Proliferation 
Resistant Advanced Fuel Recycling and University Nuclear 
Science and Engineering Programs.
    Subtitle E (Fossil Energy) authorizes $2.3 billion for 
fiscal years 2004-2007 (not including a separate authorization 
for Clean Coal Power Initiative) for power technologies, oil 
and gas technologies, fuel cells, and coal mining technology 
and for an Arctic Energy Office. It also includes an 
authorization enabling 7.5 percent of oil and gas royalty funds 
(estimated by the Congressional Budget Office to be $1.9 
billion for fiscal years 2004 through 2007) to be used for 
ultra-deepwater and unconventional oil and gas research.
    Subtitle F (Science) authorizes $17.9 billion for fiscal 
years 2003-2007, including $1.4 billion for Fusion, $349 
million for the Spallation Neutron Source, and $1.23 billion 
for Nanotechnology. It also authorizes a graduate fellowship 
program for U.S. citizens and a program in the genetics, 
protein science and computational biology of microbes and 
plants, which is authorized at $100 million for fiscal year 
2004 and such sums as are necessary through fiscal year 2007. 
It also requires a Facilities Infrastructure Plan for the 
National Laboratories.
    Subtitle G (Energy and Environment) authorizes $24 million 
for various specified projects.
    Subtitle H (Hydrogen) authorizes $1.8 billion through 
fiscal year 2008 to carry out the President's Hydrogen 
Initiative, including research, development, demonstration and 
commercial application of fuel cells, hydrogen production and 
FreedomCAR vehicle technology.
    Subtitle I (Management) includes general requirements 
relating to expenditure and reprogramming of funding, cost 
sharing, merit and external technical review, small and 
minority businesses, mobility of scientific and tech personnel 
at labs, outreach and competitive awards.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT

    This Title Designates the head of the Office of Science as 
an Assistant Secretary and transfers health and nuclear 
regulation at DOE non-military labs to the Occupational Safety 
and Health Administration and the Nuclear Regulatory Commission 
(NRC). It includes a section requiring a report on equal 
opportunity practices at DOE labs.

                     TITLE III--CLEAN SCHOOL BUSES

    This title establishes a three-year, $300 million 
demonstration program of alternative fuel, clean diesel and 
fuel cell school buses. It includes an additional authorization 
for a clean diesel school bus retrofit demonstration program.

           TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES

    This title establishes a $200 million demonstration program 
of alternative fueled and advanced vehicles and supporting 
infrastructure used in intermodal transportation.

                          TITLE V--CLEAN COAL

    This title authorizes $200 million per year for fiscal 
years 2003 through 2011 for a Clean Coal Initiative involving 
projects that meet technical, environmental, and financial 
criteria. It also establishes centers of excellence.

                    VII. Section-by-Section Analysis

    Summary: The purpose of H.R. 238, the Energy Research, 
Development, Demonstration, and Commercial Application Act of 
2003, is to provide for Federal energy research, development, 
and demonstration, and commercial application of energy 
technology programs, projects, and activities of DOE, and for 
other purposes.

Sec. 1. Short title; table of contents

    This section specifies that this Act may be cited as the 
``Energy Research, Development, Demonstration, and Commercial 
Application Act of 2003'' and also lists the table of contents 
for the bill.

Sec. 2. Purposes

    This section lists six purposes relating to energy savings 
and production, national security, environmental impacts, and 
economic growth in connection with energy research programs and 
activities.

Sec. 3. Goals

    This section describes quantitative goals for the various 
programs of the Department in energy efficiency, distributed 
energy and electric energy systems, renewable energy, nuclear 
energy, fossil energy and hydrogen. It requires the Secretary 
to periodically review the goals and report on any proposed 
modifications to the goals. In addition, it specifies that 
stated goals do not create or limit any authority for Federal 
agencies or create any new requirements and cannot be used to 
support the establishment of regulatory standards or 
requirements.

Sec. 4. Definitions

    This section defines various terms commonly used in the 
bill.

                   TITLE I--RESEARCH AND DEVELOPMENT


                     Subtitle A--Energy Efficiency


                PART 1--AUTHORIZATION OF APPROPRIATIONS


Sec. 104. Energy efficiency

    This section authorizes $2.9 billion for Energy Efficiency 
programs at the Department for fiscal years 2004-2007. Of this 
amount, $200 million is for a Next Generation Lighting 
Initiative, $8 million for an Electric Motor Control Technology 
Program, $25 million for a Secondary Electric Vehicle Battery 
Program, and $110 million for the Energy Efficiency Science 
Initiative. This section also provides an additional $250 
million authorization for fiscal years 2008 through 2012 for 
the Lighting Initiative and includes a subsection preventing 
the use of funds for developing energy efficiency regulations 
or for programs funded under other authorities.

                        PART 2--LIGHTING SYSTEMS


Sec. 105. Next Generation Lighting Initiative

    This section requires the Secretary to carry out a Next 
Generation Lighting Initiative to be jointly funded by industry 
and the Federal government and largely carried out by a 
competitively-selected industry consortium. The section 
specifies government and private sector roles.

                           PART 3--BUILDINGS


Sec. 106. National Building Performance Initiative

    This section requires the Director of OSTP to establish an 
interagency group to integrate Federal, State and voluntary 
private sector cost reduction efforts for buildings and to 
develop a plan for a public-private program to improve building 
performance.

Sec. 106A. Electric motor control technology

    This section requires the Secretary to conduct a program of 
research, development, demonstration and commercial application 
on advanced control technologies for increasing the efficiency 
of electric motors.

                            PART 4--VEHICLES


Sec. 107. Definitions

    This section provides definitions for section 108, 
Establishment of Secondary Electric Battery Use Program.

Sec. 108. Establishment of secondary electric battery use program

    This section requires the Secretary to establish a research 
program to facilitate the reuse of batteries from electric 
vehicles for other purposes, such as bulk power and commercial 
power storage.

              PART 5--ENERGY EFFICIENCY SCIENCE INITIATIVE


Sec. 110. Energy Efficiency Science Initiative

    This section requires the Secretary to establish an energy 
efficiency research program run jointly by the Director of the 
Office of Science and the Assistant Secretary of Energy with 
responsibility for energy conservation.

          PART 6--ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS


Sec. 110A. Advanced Energy Technology Transfer Centers

    This section requires the Secretary to make grants to non-
profits or State and local governments or universities or 
consortia thereof to establish a nationwide network of at least 
ten Advanced Energy Technology Transfer Centers to encourage 
demonstration and commercial application of energy efficiency 
technologies.

       Subtitle B--Distributed Energy and Electric Energy Systems


                PART 1--AUTHORIZATION OF APPROPRIATIONS


Sec. 111. Distributed Energy and Electric Energy Systems

    This section authorizes $850 million for the Distributed 
Energy and Electric Energy Systems programs for fiscal years 
2004-2007, including $23 million for Micro-cogeneration.

Sec. 111A. Demonstration and field test

    This section requires the Secretary to demonstrate and 
field test distributed generation systems.

                       PART 2--DISTRIBUTED POWER


Sec. 112. Strategy

    This section requires the Secretary to develop a hybrid 
distributed power research strategy to be transmitted to 
Congress within one year.

Sec. 113. High power density industry program

    This section requires the Secretary to establish a 
comprehensive research, development, demonstration and 
commercial application program to improve the energy efficiency 
of facilities such as data centers, ``server farms,'' and 
telecommunications facilities.

Sec. 114. Micro-cogeneration energy technology

    This section requires the Secretary to make competitive 
merit-based grants to consortia for the development of 
residential combined heat and power technologies.

                      PART 3--TRANSMISSION SYSTEMS


Sec. 115. Transmission infrastructure systems research, development, 
        demonstration, and commercial application

    This section requires the Secretary to develop and 
implement a research, development, demonstration and commercial 
application program to promote improved efficiency and 
reliability of electrical transmission systems.

                       PART 4--GENERAL PROVISIONS


Sec. 116. Definitions

    This section lists technologies that could comprise 
distributed hybrid technologies.

Sec. 117. Voluntary consensus standards

    This section requires the Secretary to work with IEEE and 
others towards the development and implementation of voluntary 
consensus standards for the manufacture and use of distributed 
energy systems for connection with electric distribution 
systems.

                      Subtitle C--Renewable Energy


                PART 1--AUTHORIZATION OF APPROPRIATIONS


Sec. 121. Renewable energy

    This section authorizes $1.8 billion for the Renewable 
Energy programs at the Department for fiscal years 2004-2007. 
Of this amount, $639 million is authorized for bioenergy and 
$120 million for renewable energy in public buildings. Within 
the bioenergy authorization, not less than $5 million is for 
Historically Black Colleges and Universities and Hispanic 
Serving Institutions. No less than $4 million per year is 
authorized for field verification of wind turbines.

                           PART 2--BIOENERGY


Sec. 122. Bioenergy programs

    This section requires that the Secretary conduct a 
research, development, demonstration, and commercial 
application program on biopower and biofuels, including 
integrated, cross-cutting and economic analysis programs.

                     PART 3--MISCELLANEOUS PROJECTS


Sec. 126. Miscellaneous projects

    This section requires the Secretary to establish programs 
of research, development, demonstration, and commercial 
application in ocean energy (including wave energy), hybrid 
wind-coal gasification energy technologies, combined use of 
renewable energy and other energy technologies and hydrogen 
carrier fuels. It also directs the Secretary to request that 
the National Academy of Sciences conduct a study on renewable 
generation of ocean energy including wave, tidal, current and 
thermal energy.

Sec. 127. Renewable energy in public buildings

    This section requires the Secretary to establish a program 
for the demonstration of innovative renewable energy 
technologies in State and local government buildings.

                       Subtitle D--Nuclear Energy


                PART 1--AUTHORIZATION OF APPROPRIATIONS


Sec. 131. Nuclear energy

    This section authorizes $1.7 billion for fiscal years 2004-
2007 for the nuclear energy research, development, 
demonstration, and commercial application programs, including 
programs that are authorized in the parts of this subtitle that 
follow. In fiscal years 2004-2007, it authorizes $530 million 
for infrastructure support programs, $399 million for advanced 
fuel recycling, $184 million for university programs, and $34 
million for geologic isolation of spent fuel.

                PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS


Sec. 132. Nuclear energy research programs

    This section requires the Secretary to carry out five 
nuclear energy research programs at the Department: the Nuclear 
Energy Research Initiative, the Nuclear Energy Plant 
Optimization Program, the Nuclear Power 2010 Program, the 
Generation IV Nuclear Energy Systems Initiative and research on 
Reactor Production of Hydrogen. It also authorizes 
Infrastructure Support.

                    PART 3--ADVANCED FUEL RECYCLING


Sec. 133. Advanced fuel recycling program

    This section requires the Secretary to carry out a nuclear 
fuel recycling technology research and development program on 
proliferation-resistant technologies. This research will focus 
on technologies that also minimize environmental and public 
health and safety impacts.

                      PART 4--UNIVERSITY PROGRAMS


Sec. 134. University nuclear science and engineering support

    This section requires the Secretary to support new and 
existing programs to promote university research and education 
in nuclear engineering.

               PART 5--GEOLOGICAL ISOLATION OF SPENT FUEL


Sec. 135. Geological isolation of spent fuel

    This section requires that the Secretary carry out a 
program to determine the feasibility of deep-borehole 
disposition of high-level radioactive waste.

                       Subtitle E--Fossil Energy


                PART 1--AUTHORIZATION OF APPROPRIATIONS


Sec. 141. Fossil energy

    This section authorizes $2.3 billion for fiscal years 2004-
2007 to carry out the fossil energy, research, development, 
demonstration, and commercial application programs of the 
Department, excluding programs that are authorized in title V--
Clean Coal. It also requires that the coal program authorized 
under section 142(a) comprise at least 60 percent of this 
total. Of the $2.3 billion total, this section authorizes $112 
million for proton exchange membrane fuel cells, $27 million 
for coal mining technologies and $100 million for Office of 
Arctic Energy programs. This section also authorizes $100 
million in fiscal years 2008-2012 for Office of Arctic Energy 
programs. In addition to the $2.3 billion authorization, this 
section also authorizes funding for the ultra-deepwater and 
unconventional resources programs, with the funds coming from 
7.5 percent of the royalties, rents, and bonuses derived from 
Federal onshore and offshore oil and gas leases, with priority 
given to prior distributions required by law; such funding 
would be subject to appropriations Acts. The CBO estimates the 
revenue from these sources available to carry out the program 
will be $1.9 billion for fiscal years 2004-2007.

                       PART 2--RESEARCH PROGRAMS


Sec. 142. Fossil energy research programs

    This section requires the Secretary to conduct a program of 
fossil energy research, development, demonstration and 
commercial application, including research on coal, oil, 
natural gas, and fuel cells. It also includes subsections 
requiring the Secretary of the Interior to transmit a report on 
natural gas and oil deposits off of the Louisiana and Texas 
coasts every two years and mandating the use of existing 
technology transfer mechanisms.

Sec. 143. Research and development for coal mining technologies

    This section requires the Secretary to establish a program 
of research and development with Federal agencies, coal 
producers, trade associations, equipment manufacturers, 
institutions of higher education and others to develop new 
mining technologies.

   PART 3--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES


Sec. 144. Program authority

    This section requires the Secretary to conduct programs of 
research, development, demonstration, and commercial 
application on ultra-deepwater and unconventional natural gas 
and other petroleum resource exploration, production and 
environmental mitigation. It also limits the programs to work 
in areas currently eligible to be leased for exploration and 
requires consultation with the Secretary of the Interior.

Sec. 145. Ultra-deepwater program

    This section describes how the ultra-deepwater program 
should be carried-out, assigning responsibilities to the 
Secretary and a private consortium selected by the Secretary to 
help manage the program. It also establishes procedures to 
address conflicts of interest.

Sec. 146. Unconventional natural gas and other petroleum resources 
        program

    This section requires the Secretary to establish a 
research, development, demonstration and commercial application 
program for onshore unconventional oil and gas exploration for 
resources in economically inaccessible geographical areas.

Sec. 147. Additional requirements for awards

    This section places requirements on applicants to the 
ultra-deepwater program to describe the intended commercial use 
of any technology to be demonstrated under the Act, and 
provides flexibility concerning the location of demonstration 
projects in deepwater depths of less than 1,500 meters and cost 
sharing for independent producers.

Sec. 148. Advisory committees

    This section requires the Secretary to establish advisory 
committees for ultra-deepwater and unconventional resource 
programs and specifies their duties and compensation levels for 
their members.

Sec. 149. Limits on participation

    This section provides for limits on the entities entitled 
to participate in the program.

Sec. 150. Fund

    This section establishes in the Treasury an Ultra-Deepwater 
and Unconventional Natural Gas and Other Petroleum Resources 
Fund.

Sec. 150A. Transfer of advanced oil and gas exploration and production 
        technologies

    The section requires the Secretary to assess Federal 
technology programs and issue a solicitation to manage a 
technology transfer program of such technologies.

Sec. 151. Sunset

    The section terminates the ultra-deepwater and 
unconventional research programs on September 30, 2010.

Sec. 152. Definitions

    This section provides seven definitions for terms used in 
this part.

                          Subtitle F--Science


                PART 1--AUTHORIZATION OF APPROPRIATIONS


Sec. 161. Science

    This section authorizes $17.9 billion for fiscal years 
2004-2007 to carry out the research, development, 
demonstration, and commercial application programs of the 
Office of Science, including programs that are authorized in 
the parts of this subtitle that follow. From this amount, the 
section authorizes $1.27 billion for Fusion Energy Sciences, 
$157 million for the ITER fusion experiment, $349 million for 
the Spallation Neutron Source, $1.23 billion for 
nanotechnology, $100 million in fiscal year 2004 and additional 
sums in fiscal years 2005-2007 for the Genomes to Life Program, 
and $6.4 million for a new graduate scholarship program for 
U.S. citizens.

                     PART 2--FUSION ENERGY SCIENCES


Sec. 161A. ITER

    This section authorizes the Secretary to join the 
international fusion experiment, known as ITER and requires 
that any agreement into which the U.S. enters meet specific 
requirements to protect U.S. economic and scientific interests. 
It also requires the Department to submit a research plan to 
Congress and for that plan to be reviewed by the National 
Academy of Sciences. Finally, it prohibits any U.S. funding for 
ITER construction until the Secretary has submitted to Congress 
the research plan, the international agreement for U.S. 
participation in ITER, a description of ITER's management 
structure, and a report describing how ITER will be funded 
without reducing funding for other programs, including other 
fusion programs, in the Office of Science.

Sec. 162. Plan for fusion experiment

    This section requires the Secretary to restart planning for 
the domestic magnetic fusion burning plasma experiment (called 
the Fusion Ignition Research Experiment or ``FIRE'') if the 
Secretary determines during the negotiations on ITER that 
construction and operation of ITER is unlikely or infeasible.

Sec. 163. Plan for fusion energy sciences program

    This section requires the Secretary to develop a program 
and submit a plan to Congress to provide a strong scientific 
base for Fusion Energy Sciences and the experiments described 
in Secs. 161A and 162.

                   PART 3--SPALLATION NEUTRON SOURCE


Sec. 164. Definition

    This section provides a definition for ``Spallation Neutron 
Source.''

Sec. 165. Report

    This section requires the Secretary to report on the 
Spallation Neutron Source as part of its annual budget 
submission.

Sec. 166. Limitations

    This section provides limitations for the amounts obligated 
for Spallation Neutron Source.

                         PART 4--MISCELLANEOUS


Sec. 167. Facility and infrastructure support for non-military energy 
        laboratories

    This section requires the Secretary to develop and 
implement a policy for maintaining, closing, modifying, or 
constructing new facilities and infrastructure at non-military 
energy laboratories. The policy must be communicated in a 
report transmitted to Congress by 2005.

Sec. 168. Research regarding precious metal catalysis

    This section authorizes research on the use of precious 
metals in catalysis.

Sec. 169. Nanotechnology research and development

    This section requires the Secretary to support a program of 
research, development, demonstration, and commercial 
application of technology in nanoscale science and engineering 
within the Office of Science. The section also requires the 
program to (a) support nanotechnology R&D; through grants and 
interdisciplinary research centers and advanced technology user 
facilities; (b) encourage interdisciplinary research; (c) 
expand education and training; (d) accelerate commercial 
application of nanotechnology innovations; and, (c) ensure that 
societal and ethical concerns are addressed.

Sec. 170. Advanced scientific computing for energy missions

    This section requires the Secretary to support a program to 
advance high performance computing and requires a report to 
Congress before the Department can undertake an initiative on 
new computer architecture. It also amends the definitions and 
the general responsibilities of DOE in the High-Performance 
Computing Act of 1991 (P.L. 108-3 Title 15, Chapter 81).

Sec. 170A. Nitrogen fixation

    This section requires the Secretary to support an R&D; 
program on biological nitrogen fixation, including plant 
genomics research.

                        PART 5--GENOMES TO LIFE


Sec. 170B. Genomes to life

    This section requires the Secretary to authorize within the 
Office of Science a research, development, demonstration, and 
commercial application program known as the ``Genomes to Life'' 
program. The program builds on the Department's work on the 
human genome project and expands research into proteomics. This 
section directs the program to identify biological processes 
that could be developed for energy- and environment-related 
applications. It also authorizes grants to construct Genomes to 
Life research facilities.

Sec. 170C. Department of Energy science and technology scholarship 
        program

    This section requires the Secretary to create a scholarship 
program in which students receive scholarships in exchange for 
a commitment to work for the Department upon completion of 
their degrees. Scholarship recipients are obligated to work two 
years for each year of scholarship they receive.

                   Subtitle G--Energy and Environment


Sec. 171. Authorization of appropriations

    This section authorizes $23 million for U.S.-Mexico Energy 
Technology, and $500,000 for waste carpet incineration studies.

Sec. 172. United States-Mexico energy technology cooperation

    This section requires the Secretary to establish a 
collaborative research, development, demonstration, and 
commercial application program to promote efficient, 
environmentally sound development along the U.S.-Mexico border.

Sec. 173. Waste reduction and use of alternatives

    This section authorizes the Secretary to make a single 
university grant to examine and develop the feasibility of 
burning post-consumer carpet in cement kilns as an alternative 
energy source.

Sec. 174. Coal gasification

    This section authorizes loan guarantees for an energy 
project using integrated gasification combined cycle 
technology.

Sec. 175. Petroleum coke gasification

    This section authorizes loan guarantees for at least one 
petroleum coke gasification project.

Sec. 176. Other biopower and bioenergy

    This section requires the Secretary to assist in the 
planning, design and implementation of several identified 
projects to produce biopower and biofuels.

Sec. 177. Coal technology loans

    This section authorizes $125 million to provide a loan for 
an experimental plant constructed under a Department of Energy 
cooperative agreement.

Sec. 178. Fuel cell test center

    This section requires the Secretary to transmit to Congress 
a study of the establishment of a test center for next-
generation fuel cells at an institution of higher education and 
authorizes $500,000 to carry out the section.

                          Subtitle H--Hydrogen


Sec. 181. Short title

    This section designates the subtitle as the ``George E. 
Brown, Jr. and Robert S. Walker Hydrogen Future Act of 2003.''

Sec. 182. Matsunaga Act amendment

    This section amends the text of the ``Matsunaga Hydrogen 
Research, Development and Demonstration Act of 1990 (42 U.S.C. 
12401)'' as follows:

SEC. 102. FINDINGS AND DEFINITIONS.

    This section includes findings and definitions used in the 
subtitle.

SEC. 103. PROGRAM.

    This section requires that the Secretary carry out a 
research, development, demonstration, and commercial 
application program for hydrogen-powered fuel cell vehicles and 
the refueling infrastructure to support them, with the goal of 
enabling the automotive industry to make a decision to bring 
such vehicles to market by 2015. The section specifies 
activities related to hydrogen production, delivery, and 
storage and the development of fuel cell technologies and the 
necessary codes and standards. It establishes project selection 
criteria for a hydrogen demonstration program. It also requires 
a competitive merit review process and specifies cost sharing 
requirements.

SEC. 104. FREEDOM CAR.

    This section requires that the Secretary carry out a 
research, development, demonstration and commercial application 
program for advanced vehicle technologies and specifies 
activities and requirements for the program.

SEC. 105. PLAN.

    This section requires the Department to submit a detailed 
plan to Congress describing the program's research agenda, the 
technical milestones used to evaluate the performance of the 
program, and the role that national laboratories, universities, 
small businesses and other partners will play.

SEC. 106. EDUCATION, OUTREACH AND TECHNOLOGY TRANSFER.

    This section includes requirements for education, outreach 
and technology transfer.

SEC. 107. INTERAGENCY TASK FORCE.

    This section creates an interagency task force, chaired by 
the Director of OSTP, to assist in the implementation of the 
program.

SEC. 108. ADVISORY COMMITTEE.

    This section creates an advisory committee, comprised of 
representatives from domestic industry, academia, professional 
societies, government agencies, and other organizations, to 
provide advice to the Secretary.

SEC. 109. EXTERNAL REVIEW.

    This section requires a competitively-selected non-
governmental body, such as the National Academy of Sciences, to 
review the program's research plan and conduct a biennial 
review of the progress made by the program.

SEC. 110. MISCELLANEOUS PROVISIONS.

    This section requires the Secretary to avoid unnecessary 
duplication when carrying out the activities under this Act, 
authorizes the Secretary to enter into cost-sharing agreements 
with other governments, authorizes the Secretary to represent 
the United States, and provides that nothing in the Act alters 
the Department's regulatory authority.

SEC. 111. AUTHORIZATION OF APPROPRIATIONS.

    This section authorizes $1.8 billion for the program for 
fiscal years 2004-2008.

Sec. 183. Repeal of Hydrogen Future Act of 1996

    This section repeals the Hydrogen Future Act of 1996.

                         Subtitle I--Management


Sec. 184. Availability of funds

    This section provides that funds appropriated to the 
Department under this title shall remain available until 
expended.

Sec. 185. Cost sharing

    This section requires minimum non-Federal contributions of 
20 percent of the cost of research and development, and 50 
percent for demonstration and commercial application projects. 
It allows the Secretary to reduce these requirements based on 
either the technical barriers or the fundamental nature of the 
research.

Sec. 186. Merit review of proposals

    This section requires an impartial review of the scientific 
and technical merit of project proposals.

Sec. 187. External technical review of departmental programs

    This section requires the Secretary to establish new or 
designate existing advisory committees to review research, 
development, demonstration, and commercial application programs 
for energy efficiency, renewable energy, nuclear energy and 
fossil energy. It also requires the Secretary to establish a 
Science Advisory Committee for the Office of Science and to 
contract with the National Academy of Sciences for periodic 
review and assessment of programs.

Sec. 188. Improved coordination of technology transfer activities

    This section requires the Secretary to establish a 
Technology Transfer Coordinator for the Department and a 
Technology Transfer Working Group comprising representatives 
from all the National Laboratories and single-purpose research 
facilities.

Sec. 189. Small business advocacy and assistance

    This section requires National Laboratories and facilities 
to establish an outreach program for small and minority 
businesses.

Sec. 190. Mobility of scientific and technical personnel

    This section requires the Secretary to report to Congress 
on any disincentives to sharing staff among National 
laboratories and single-purpose research facilities.

Sec. 191. National Academy of Sciences report

    This section requires the National Academy of Sciences to 
study the impediments to decreasing the time to commercial 
application of new energy technology innovations, and ways to 
improve the Department's technology transfer activities.

Sec. 192. Outreach

    This section requires the Secretary to ensure that each 
program authorized by this title includes an outreach 
component.

Sec. 193. Limits on use of funds

    This section prohibits award of management and operations 
contracts for federal non-military energy laboratories unless 
they are made on a competitive basis, or unless the Secretary 
provides a waiver and Congress is notified two months in 
advance.

Sec. 194. Reprogramming

    This section requires the Secretary to issue a report 60 
days after appropriations are enacted of how appropriated funds 
will be distributed under this authorization. It also requires 
a 30-day Congressional review for any reprogramming that 
exceeds 5 percent of any individual distribution.

Sec. 195. Construction with other laws

    This section lists other laws that grant relevant authority 
to the Secretary.

Sec. 196. University collaboration

    This section requires the Secretary to report to Congress 
on promoting collaborations between large and small 
institutions of higher education.

Sec. 197. Federal laboratory educational partners

    This section amends the Stevenson-Wydler Act (15 U.S.C. 
3710c) to broaden the activities the Department's National 
Laboratories may conduct with income generated through their 
intellectual property rights to include educational assistance.

Sec. 198. Interagency cooperation

    This section directs the Secretary of Energy and the 
Administrator of the National Aeronautics and Space 
Administration (NASA) to enter into discussions with the goal 
of reaching an interagency working agreement to make NASA's 
energy expertise available to the Department.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT


Sec. 201. Improved coordination and management of civilian science and 
        technology programs

    This section amends the Department of Energy Organization 
Act (``DOEOA'') to require that the position of Director of the 
Office of Science established at section 209(a) of the DOEOA be 
elevated to an Assistant Secretary. The section also increases 
the overall number of Assistant Secretaries in the Department 
at section 203(a) of the DOEOA from six to seven, and expresses 
the Sense of Congress that leadership for departmental missions 
in nuclear energy should be at the Assistant Secretary level.

Sec. 202. Report on equal employment opportunity practices

    This section requires the Secretary transmit to the 
Congress a biennial report on five aspects of the equal 
employment opportunity practices at the nonmilitary energy 
laboratories.

Sec. 203. External regulation of Department of Energy

    This section terminates the Department's authority to self-
regulate its nuclear and worker safety at non-military energy 
laboratories. It transfers regulatory and enforcement authority 
to the NRC and OSHA. It also prevents the delegation of that 
authority to the States. In addition, it shields contractor 
operators from bearing the costs of decommissioning a facility 
and directs the Department to establish decommissioning 
procedures for its nonmilitary energy laboratories.

                     TITLE III--CLEAN SCHOOL BUSES


Sec. 301. Establishment of pilot program

    This section requires the Secretary to establish a program 
to demonstrate the use by local school districts of alternative 
fuel and ultra-low sulfur diesel school buses. Not less than 20 
percent or more than 25 percent of funding under the section 
shall be for the demonstration of ultra-low sulfur diesel 
school buses.

Sec. 302. Fuel cell bus development and demonstration program

    This section requires the Secretary to establish a program 
to enter into cooperative agreements for the development and 
demonstration of fuel cell-powered buses. Cost sharing under 
this provision is specified with regard to infrastructure and 
demonstration activities.

Sec. 303. Diesel retrofit program

    This section requires the Secretary and the Administrator 
of the EPA to establish a pilot program for awarding grants to 
eligible recipients for the demonstration and commercial 
application of retrofit technologies for ultra-low sulfur 
diesel school buses.

Sec. 304. Authorization of appropriations

    This section authorizes a total of $300 million for the 
title III program for fiscal years 2004-2006.

           TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES


Sec. 401. Definitions

    This provision amends the Energy Policy Act of 1992 (42 
U.S.C. 14 13211) to provide definitions for alternative fueled 
vehicles, and fuel cell, hybrid, neighborhood electric, and 
ultra-low sulfur diesel vehicles. It also defines the pilot 
program.

Sec. 402. Pilot program

    This section requires the Secretary to establish a 
competitive grant program to provide not more than 15 
geographically dispersed demonstration projects for state and 
local governments or metropolitan transportation authorities. 
Grants can be utilized for the demonstration of alternative 
fueled vehicles, fuel cell vehicles, hybrid vehicles, ultra-low 
sulfur diesel vehicles and infrastructure associated with 
alternative fueled, fuel cell and hybrid vehicle projects. The 
section imposes several additional requirements on grants and 
imposes selection criteria that give priority consideration to 
projects which maximize protection of the environment, 
demonstrate that projects will be maintained or expanded after 
initial federal funding, and enable the transfer of goods or 
passengers to other transportation systems. Grants under the 
demonstration program are subject to 50 percent cost sharing 
requirements and a maximum period of five years. The Secretary 
is also required to seek broad geographic distribution of 
projects and to transfer information and knowledge gained 
through projects to other interested parties.

Sec. 403. Reports to Congress

    This section requires the Secretary to issue a report to 
Congress on grants as well as evaluations of the effectiveness 
of the program.

Sec. 404. Fuel cell transit bus demonstration

    This section requires the Secretary to establish a transit 
bus demonstration program to demonstrate not more than 12 fuel 
cell transit buses (and necessary infrastructure) in three 
geographically dispersed localities.

Sec. 405. Authorization of appropriations

    This section authorizes $200 million to carry out title IV, 
to remain available until expended.

                          TITLE V--CLEAN COAL


Sec. 501. Authorization of appropriations

    This section authorizes $1.8 billion for a Clean Coal Power 
Initiative at the Department for fiscal years 2003-2011. 
Section 501 also requires that the Secretary transmit a report, 
including a ten-year research plan, to Congress regarding 
certain implementation activities. Certain funding restrictions 
apply if the Secretary fails to transmit the report to Congress 
by September 30, 2005.

Sec. 502. Project criteria

    This section establishes technical criteria that are to be 
required for projects funded under the Clean Coal Power 
Initiative. It also requires that the Secretary set technical 
milestones specifying the emissions levels that projects must 
be designed to and reasonably expected to achieve. The section 
requires that, through fiscal year 2009, no less than 80 
percent of funding be provided only to projects involving coal-
based gasification technologies. Beginning in 2009, the 
Secretary may, upon congressional notification, select projects 
that do not meet the 80 percent gasification requirement if 
they offer greater emissions reductions and permit carbon 
separation and capture. The section also specifies financial 
criteria for the program.

Sec. 503. Report

    This section requires the Secretary, in consultation with 
other appropriate agencies, to transmit a report to Congress on 
the technical milestones and the status of projects funded 
under title V no later than one year after the date of the 
enactment of the title, and once every two years thereafter 
through 2011.

Sec. 504. Clean Coal Centers of Excellence

    This section requires the Secretary to award competitive, 
merit-based grants to universities for the establishment of 
Centers of Excellence for Energy Systems of the Future. It also 
requires that the Secretary provide grants to universities that 
can show the greatest potential for advancing new clean coal 
technologies.

                         VIII. Committee Views

    Sec. 106A.--Electric motor control technology. The 
Committee is aware of the potential of optical/graphical 
programming for driving, controlling, and improving virtually 
all types of electric motors. Successful development of a 
simple, low cost, and generic solution for the intelligent 
control of electric motors could significantly improve their 
energy efficiency. Such technology could have tremendous impact 
on the HVAC industry, among others.
    DOE, through the Office of Industrial Technologies, has 
already invested in several promising energy efficient 
technologies, including the development of an optical 
programming system for intelligent control of electric air 
conditioning motors. From 1999-2002, the New York State Energy 
Research and Development Authority (NYSERDA) also invested 
significantly in an optical programming technology to improve 
the efficiency of HVAC motors. DOE program staff from the 
National Renewable Energy Laboratory (NREL) have reviewed this 
electric motor control, optical programming technology and 
concluded that successful implementation of the technology 
could lead to significant improvements in HVAC efficiency.
    Consequently, the Committee encourages DOE to fund larger 
demonstrations through its Building Technologies Program, Zero 
Energy Building Program or other programs to encourage the 
commercial application and wider acceptance of electric motor-
control technology. As part of this effort, the Committee 
instructs DOE to work with NYSERDA to include this technology 
as part of a wider demonstration of energy efficient technology 
in institutional settings such as schools for grades K-12.
    The Committee has also included language directing the 
Secretary to conduct additional research, development, 
demonstration, and commercial application of this technology. 
The Committee intends that the Secretary fund promising 
applications by small businesses that have special expertise in 
this area.
    Sec. 110A.--Advanced energy technology transfer centers. 
The Committee is aware that viable commercial technologies and 
best practices for utilizing energy efficiency in buildings and 
industrial processes have been developed in DOE laboratories 
and in the private sector. These technologies are currently 
available, but often lack sufficient market penetration and 
adoption to have substantial impacts on energy use. This is due 
not only to a lack of incentives for their use, but to the lack 
of exposure to building and energy professionals that would 
most benefit from these applications. Restructuring of power 
markets has left utilities that supported demand-side energy 
efficiency technologies with little financial incentive to 
continue programs that were designed to promote these 
technologies.
    Subsection (a) of Section 110A authorizes the establishment 
of a national network of regional centers to provide training 
and demonstration of clean, energy efficient technologies and 
methods developed in both DOE laboratories and by private 
firms. The Committee intends that the centers be located to 
serve all regions of the country, while siting the centers 
based on greatest need.
    Subsection (b) generally prescribes the primary functions 
and capabilities of the centers. Specifically, these centers 
should operate an extensive outreach program providing 
information, training and technical advice to a wide audience 
of building and industry professionals, technicians and 
organizations responsible for energy demand.
    The Department will serve as a central coordinating body 
for the activities of the network of regional centers. In this 
capacity, the Department will be responsible for the 
dissemination and transfer of information among the regional 
centers, scheduling of televised classes and demonstrations, 
and will be the developer of curricula for the network and 
aggregator of findings, solutions and technologies developed 
through the regional centers, among other duties.
    Sec. 111A.--Demonstration and field test. The Committee is 
aware that the Energy Efficiency Subcommittee of the 
President's Council of Advisors on Science and Technology 
(PCAST) has endorsed a demonstration and field test of 
distributed generation systems to focus on the communications 
and control challenges that may result from the widespread 
adoption of these systems. To define technical needs, the field 
test should address interconnection reliability and safety 
issues for a range of generator sizes and types, applications, 
and locations on the system. The test should identify the full 
costs of distributed generation to the system. The Committee is 
particularly interested in the use of distributed generation 
systems in areas of low-density population. It is in areas such 
as these, with their special cost structures and widely 
distributed consumption bases, that experts believe distributed 
generation offers the greatest promise for providing efficient, 
reliable electricity. The Committee asks the Secretary to work 
with rural electric cooperatives--both national organizations 
such as the National Rural Electric Cooperative Association and 
state associations representing the rural electric 
cooperatives--in shaping this demonstration and field test to 
meet the special needs of the communities they serve.
    Sec. 112.--Strategy. The Committee draws on recommendations 
from the PCAST Report on Energy Efficiency (2002) to increase 
Federal research and development in communication and control 
technology for distributed generation systems. Through 
communications networks, these technologies allow distributed 
generation units to respond in real-time to fluctuations in 
market prices and grid demand by increasing production when 
grid demand and market prices are high and decreasing 
production when power from the grid is more economical.
    Sec. 113.--High power density industries. Section 113 
requires the Secretary to develop and implement a comprehensive 
RD&D; and commercial application program to improve energy 
efficiency, reliability, and environmental responsibility in 
high power density industries, such as data centers, server 
farms, and telecommunications facilities. In carrying out this 
section the Secretary shall consider technologies that provide 
significant improvements in thermal controls, metering, load 
management, peak load reduction or the efficient cooling of 
electronics.
    Sec. 114.--Micro-cogeneration energy technology. Section 
114 is intended to help realize the potential of cogeneration 
technology as a clean source of energy for a variety of 
applications. Many believe the residential furnace industry is 
often overlooked in the development of such distributed 
cogeneration systems. The Committee believes that, with further 
research and development, cogeneration of electric power as a 
byproduct of residential building heating system operation 
could provide significant environmental benefits at low cost 
and high reliability and that the residential heating appliance 
industry is uniquely positioned to provide reliable electricity 
using environmentally friendly cogeneration power with 
practical technology.
    The Committee believes the DOE Office of Energy Efficiency 
and Renewable Energy has adequate resources within its current 
budget to begin modest funding of micro-cogeneration energy 
technology research under this section. This is consistent with 
the spirit of a floor colloquy between the Chairman of the 
House Committee on Science and the Chairman of the House 
Appropriations Subcommittee on Interior and Related Agencies 
during the debate over the fiscal year 2003 Interior 
Appropriations legislation. The Committee expects DOE to 
release a micro-cogeneration R&D; solicitation within a few 
months after enactment of this Act.
    Sec. 117--Voluntary consensus standards. The Committee and 
the Congress, through the National Technology Transfer and 
Advancement Act of 1995 (PL 104-113), have established the 
legal requirement that agencies must work with standards 
development organizations in the development of standards in 
technological areas of importance to each agency. Furthermore, 
the Act states that voluntary consensus standards, to the 
extent practicable, are to be used for procurement and 
regulatory purposes. The Committee feels that the development 
and widespread adoption of voluntary consensus standards for 
obtaining electricity from, or providing electricity to, 
distributed energy systems for use in manufacturing and for 
using equipment and systems for connection with electric 
distribution systems is a prime example of an area where the 
Act applies. The Committee commends the IEEE for its years of 
work, in conjunction with other standards development 
organizations, on distributed energy system standards and urges 
the Secretary, in consultation with the NIST, to take such 
steps as may be necessary to permit IEEE to complete the 
development, approval, and promulgation of these standards. The 
Secretary should also promote the widespread use of these 
standards with the goal of bringing predictability and 
standardization to the companies who choose to do business in 
this emerging energy area.
    Sec. 121.--Renewable energy. The Committee is supportive of 
DOE's research and development programs in wind energy 
generation located in Washington state. A continuing DOE 
commitment is important to bring about the commercialization of 
worthwhile projects through the regional field verification 
program. The Committee is supportive of establishing a wind 
energy demonstration site in the state of Washington, not only 
to accommodate the continued population and industrial growth 
of the Pacific Northwest, but also to gain knowledge to meet 
the incremental power needs in areas of the country where wind 
can be effectively utilized.
    Sec. 122.--Bioenergy Programs. The Committee is aware of 
research at a biofuels processing facility in New York to 
convert cellulose materials into levulinic acid for multiple 
applications. As part of this work, the State University of New 
York College of Environmental Science and Forestry is 
developing a Bioenergy and Bioproducts Technology Center, 
focusing on biofuels from lignocellulosic biomaterial.
    The Committee strongly encourages the Secretary to consider 
providing substantial financial assistance for this biofuels 
proposal. The Committee also intends that section 122 authorize 
the Secretary to provide assistance for an integrated rice 
straw project in Gridley, California, to convert rice straw 
into ethanol, electric power, and silica, and an ethanol 
production facility in Maryland to convert barley grain into 
ethanol for use in motor vehicles or other uses.
    Sec. 127.--Renewable energy in public buildings. This 
section establishes a DOE grant program for local and state 
governments that plan to deploy solar and other renewable 
energy source technologies in public buildings that they own or 
operate. The grants can provide up to 40 percent of the 
incremental cost of the renewable energy project. The Committee 
believes this program is a key way for DOE to be a financial 
partner with state and local municipalities that are committed 
to the long-term and expanding use of renewable energy 
technology as part of its energy infrastructure. For instance, 
Sebastopol, California, in conjunction with staff and students 
at Sonoma State University's Department of Environmental 
Studies and Planning, has developed a plan to use solar 
technology in Sebastopol's residential, commercial, and 
municipal buildings, with the eventual goal to completely 
transition the city to solar energy.
    Sec. 134.--University nuclear science and engineering 
support. This section authorizes new and existing programs to 
promote university research and education in nuclear 
engineering. The Committee is aware of concerns within the 
university nuclear research reactor community that DOE may be 
considering reducing its support for numerous university 
reactors. The Committee urges the Department to continue to 
maintain, and even expand, its support of the existing research 
reactor infrastructure. The Committee believes that a 
sustainable approach to nuclear power must include ongoing 
support for nuclear research reactors throughout the various 
regions of the United States.
    Sec. 135.--Geological isolation of spent fuel. The 
transportation of spent nuclear fuel faces increasing 
opposition from citizens who live on or near transportation 
routes that are expected to be used for transporting the fuel. 
An option for disposal of nuclear waste may be to bury it in 
deep holes bored into crystalline rocks. Surveys indicate that 
there are many appropriate sites located near existing reactors 
throughout the U.S. that could reduce the volumes of fuel 
needing to be hauled long distances. The Committee is 
supportive of examining the cost and technical feasibility of 
this deep borehole technology to determine its suitability as a 
means of disposal of spent fuel from the nation's nuclear power 
reactors.
    Subtitle E--Fossil Energy: Part 3--Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Resources. Part 
3 authorizes a new, seven-year program at the Department for 
research, development, demonstration, and commercial 
application of ultra-deepwater and unconventional natural gas 
and other petroleum exploration technologies. For purposes of 
this program, ultra-deepwater is defined to be in excess of 
1,500 meters below the surface of the ocean. The Committee is 
hopeful that this technology will enable the U.S. to increase 
the supplies of oil and gas from the central and western Gulf 
of Mexico and other areas already open to drilling. The 
Department is to carry out the program through a non-profit 
research consortium, modeled on the highly successful example 
of SEMATECH, which guided jointly funded efforts of the 
Department of Defense and the semiconductor industry. The 
Committee intends that the Secretary exercise continuing 
oversight over the research consortium. It is the Secretary's 
responsibility to ensure that the public interest is being 
served by the consortium's projects, that the projects are 
making the desired technical progress, and that the public's 
money is being properly spent. Part 3 also requires annual 
audits by an independent, outside auditing firm. Such audits 
were also required of SEMATECH.
    Section 145(a) requires that all the projects undertaken 
under this program have among their major goals the improvement 
of safety and the limiting of environmental impacts. The 
Committee expects the Secretary to carefully monitor the 
program to ensure that safety and environmental impacts are 
specifically addressed in the projects funded through the 
consortium.
    The ultra deep program of RD&D; would be applicable only in 
certain areas. Section 144(c) prohibits field activities under 
the program authorized by this Part in any offshore areas that 
are currently under federal moratoria, such as areas off the 
coasts of California or North Carolina.
    Sec. 147.--Additional requirements for awards. This section 
sets specific requirements for awards, including specification 
of commercial use of technologies, standards for intellectual 
property, the circumstances under which cost-sharing might be 
reduced, and the need for technology transfer activities as 
part of each award. The Committee expects the Department to 
make every effort to include companies and independent 
producers of oil and gas that have had less than $500 million 
in annual revenues over the last three years. The requirements 
in section 147(c) are not intended by the Committee to affect 
existing requirements of the Bayh-Dole Act in any way. Section 
147(e) provides the Secretary with authority to reduce cost 
sharing to not less than 10 percent of project costs. The 
Committee expects that such reductions in cost sharing would be 
for a period not to exceed two years.
    Sec. 150A.--Transfer of advanced oil and gas exploration 
and production technologies. The Federal government, 
particularly the Navy, has spent decades developing 
technologies designed to operate in harsh marine environments. 
In some cases the government is ahead of the industry in 
developing these technologies that have yet to be fully 
utilized in the private sector. The Committee encourages the 
Department to review technologies within the government that 
may be suitable for use in the industry-led ultra-deep 
exploration, production, and development program. The section 
further requires the Secretary to seek out and select the most 
competent organization to manage technology transfer activities 
through a competitive solicitation.
    Sec. 161.--Science. The Committee is aware that, in an 
October 2002 report, PCAST's Subcommittee on Federal Investment 
in Science and Technology and its National Benefits observed:

          All evidence points to a need to improve funding for 
        physical sciences and engineering. Continuation of 
        present patterns will lead to an inability to sustain 
        our nation's technical and scientific leadership. * * * 
        Lack of funding in these * * * disciplines is cause for 
        concern for a number of reasons: [The number of b]oth 
        full-time graduate and Ph.D. students in most physical 
        sciences, math and engineering are decreasing. * * * 
        Facilities and infrastructure in general for the 
        physical sciences are becoming less than adequate for 
        the needs of today's research problems. It is widely 
        understood and acknowledged that the interdependence of 
        the various disciplines requires that all advance 
        together.

    H.R. 238 therefore includes a significant budget increase 
for DOE's Office of Science, because of its primary importance 
to the physical sciences and to the science community in 
general. Unique among civilian science agencies, the Office of 
Science is responsible for operating specialized user 
facilities and supporting large teams of scientists capable of 
tackling large-scale, complex, multi-disciplinary problems that 
are national priorities in scientific research, such as 
nanotechnology. For more than a decade, however, Office of 
Science budgets have stagnated or declined. The increase 
recommended in this bill would reinvigorate these programs and 
assure America's continued scientific leadership.
    The decline in the number of physical science and 
engineering degrees awarded to U.S. citizens is well documented 
and a cause for concern, even alarm, given the requirements of 
our economy and the shortage of technical personnel to fulfill 
them. The Committee notes, further, that the growth in expert 
personnel abroad, combined with the diminishing numbers of 
Americans entering the physical sciences, mathematics and 
engineering--an unhealthy trend--is leading corporations to 
locate more of their R&D; activities outside the United States.
    The Committee also recognizes that research conducted by 
universities is vital to the success of the Office of Science 
program and that the training of a national workforce skilled 
in a wide variety of physical science disciplines, including 
computing and engineering is essential. Approximately one 
quarter of the Office of Science budget supports competitive, 
merit-reviewed grants to about 2,000 individual investigators 
at more than 250 universities and institutions nationwide. 
Although it is the prime supporter of the physical sciences and 
is responsible for a major share of university research in 
these fields, DOE is able to fund only 10 percent of the grant 
applications it receives. Even in a priority area such as 
nanotechnology, DOE is able to fund only 13.5 percent of 
submitted applications. By comparison, the National Science 
Foundation (NSF) was able to fund 31 percent of grants 
submitted in 2001. As a result, a far greater proportion of 
good ideas in the physical sciences are unlikely to be pursued.
    Sec. 161A.--ITER. Although the challenges and uncertainties 
associated with the development of practical fusion energy are 
significant, the Committee recognizes the reward for success is 
great: a safe, environmentally attractive and virtually 
unlimited base-load power source.
    The Committee also recognizes that U.S. magnetic fusion 
research has reached a major milestone. As the result of 
substantial progress in fusion research over the past several 
years, the U.S. fusion research community has developed a 
strong consensus that magnetic fusion is ready to take the next 
step toward fusion energy: a burning plasma experiment. Several 
outside reviewers including the National Research Council have 
echoed this conclusion. Further, the consensus within the 
fusion community is that as a first choice, the U.S. should 
satisfactorily conclude negotiations leading toward the 
construction of an international burning plasma research 
project--the ITER project. The preponderance of the 
international fusion community, including the European Union, 
Japan, Russia, Canada, China and most recently South Korea, is 
moving forward with negotiations over the financing and the 
location of the ITER project. The second choice would be a 
domestic burning plasma device.
    H.R. 238 authorizes U.S. participation in the ITER project 
if certain prescribed conditions are met. The bill's conditions 
for ITER participation are meant to reflect lessons learned 
from U.S. participation in other major domestic and 
international science projects: there must be cost protections; 
the U.S. role must be clearly defined; the U.S. must share 
equitably in experimental design, operations and collective 
decision making; the collaboration must maximize benefit to the 
U.S. domestic fusion program; and there must be a reasonable 
exit strategy for U.S. participation. The authorization also 
calls for the Secretary to submit to Congress its plan for U.S. 
participation in ITER prior to any U.S. contribution being made 
toward ITER construction. The Committee wants to ensure that 
Congress will have ample time to review the final decision to 
join the ITER project after the negotiations are complete and 
DOE has submitted its reports.
    Regardless of whether ITER goes forward, the U.S. fusion 
energy sciences program must be strengthened. This 
strengthening is necessary to revitalize a program that faces 
increased demands to utilize existing experiments more fully, 
increase its scientific and computational base, diversify its 
lines of enquiry in terms of innovative approaches to fusion, 
and maintain its place as a world leader in the face of 
European and Japanese programs of much greater size. Hence, the 
Committee authorizes increased funding for domestic fusion 
energy sciences program for the next four fiscal years.
    Finally, it is the Committee's view that a strengthened 
domestic fusion research program is critical for participation 
in ITER. Therefore, the Committee has included separate 
authorizing levels for the initial four years of ITER 
participation in order to emphasize that funding for U.S. 
participation in ITER should complement, not compete with the 
U.S. domestic fusion program. An attempt to partially or wholly 
fund ITER at the expense of the U.S. domestic fusion program 
could result in a weakened domestic fusion program that would 
be unable to fully utilize or leverage the value of 
participation in ITER.
    Sec. 167.--Facility and infrastructure support for 
nonmilitary energy laboratories. The DOE supports the operation 
of major scientific user facilities such as synchrotron light 
sources for the national scientific and technological 
community. Of the increased funding authorized for the Office 
of Science, the Committee recommends that the DOE increase the 
budgets for operations and maintenance of the Office's user 
facilities to maximize their operation and run times. These 
budgets have not increased substantially since 1980 even as key 
infrastructure has aged and now requires additional 
maintenance. In many cases the scientific output and 
accessibility of these facilities is impaired by inadequate 
operations budgets and lack of funds for appropriate upgrades.
    Sec. 169.--Nanotechnology research and development. The 
Committee supports a comprehensive DOE program of research, 
development, demonstration and commercial application in 
nanotechnology including support for new DOE nanotechnology 
facilities. The Committee anticipates that many benefits will 
be realized as new materials and products emerge through the 
pursuit of nanotechnology research. However, the Committee 
notes that new technologies also can produce unintended 
negative consequences. Therefore, as part of this program, the 
Committee intends the research funded under Section 169(b)(5) 
to explore the societal and ethical implications of the 
technologies that may be developed through research on 
nanotechnology.
    The commitment of resources to study the broad range of 
societal and ethical issues will provide opportunities to 
ensure that the technological developments in this field are 
examined in terms of their implications for the betterment of 
individuals and of all of society. Public support for 
nanotechnology research and development and public acceptance 
of the products derived from it will be enhanced through 
proactive, reasoned consideration of the potential impacts of 
the new materials and technologies.
    The program is intended to provide opportunities for 
interdisciplinary work between scientists developing these 
technologies and social scientists and ethicists. Through the 
work undertaken in this program, enhanced communication can 
occur between social scientists and technology developers at an 
early stage in the research and development process. The 
Committee notes that this program is analogous to the Ethical, 
Legal, and Social Implications (ELSI) Research Program that has 
been a part of the Human Genome Project since 1990. Studies of 
environmental and societal consequences should include research 
on the potential environmental consequences of nanotechnology 
and the potential toxic effects of nanotechnology materials, 
and the ability for nanotechnology materials to persist and be 
transformed after they are introduced into the environment. 
This type of information may make it possible to improve the 
lifecycle design of existing and new products.
    The projects funded through this program should address the 
potential implications of using nanotechnology for ``non-
biological intelligence.'' Examples of non-biological 
intelligence might include applications to enhance human 
performance, both physically and intellectually, beyond what is 
generally considered to be the normal range, or aiding 
artificial intelligence by using nanotechnology to scan the 
human brain from the inside, and guide computer engineers in 
the development of computational devices modeled after the 
human brain. Some experts warn, however, that nanotechnology 
could lead to the creation of ultra-fast, efficient computers 
with computational and self-analytical, problem-solving 
abilities that may surpass the ability of humans to monitor or 
control them. The projects funded through this program should 
address these and other social, environmental and ethical 
issues associated with nanotechnology applications. The 
Committee wants DOE to ensure, however, that this research does 
not duplicate NSF- or EPA-funded efforts in these areas.
    Sec 170A.--Nitrogen fixation. Research activities leading 
to the development of crops with enhanced biological nitrogen 
fixation capability have the potential to dramatically reduce 
natural gas demand. The primary input required for nitrogen 
fertilizer production is natural gas; in fact, fertilizer 
manufacturing consumes about 6 percent of all U.S. natural gas 
production. Research advances in nitrogen fixation will lead to 
reduced energy demand and agricultural input costs for farmers 
while also providing environmental benefits through reduced 
reliance on chemical fertilizers.
    Sec. 170C.--Department of Energy Science and Technology 
Scholarship Program. The Committee is greatly concerned about 
the ability of DOE to attract and retain the scientific and 
technical personnel it needs to effectively administer its 
programs. H.R. 238 contains a provision that the Committee 
intends and expects to result in the award of scholarships for 
talented young scientists pursuing graduate degrees in 
scientific and technical disciplines of importance to DOE. 
Students participating in this program will receive 
scholarships in exchange for a commitment to work at DOE upon 
completion of their degrees. The Committee believes that this 
program will provide an important tool for recruiting talented 
young scientists to government service.
    Sec. 178.--Fuel cell test center. The Committee is 
supportive of the establishment of a fuel cell test facility 
for the next-generation of fuel cells. These fuel cells are 
expected to need a large and continuous source of hydrogen to 
operate effectively. The Department should examine possible 
sites where hydrogen is available by pipeline, rather than 
delivered to the site by truck, and where access to electric 
transmission systems is available, especially for the testing 
of stationary fuel cells for electric power generation. Some 
universities such as Lamar University are especially qualified 
to operate these facilities and the Department is encouraged to 
look for suitable university partners through the course of the 
study.
    Subtitle H--Hydrogen. The Committee has long been involved 
in hydrogen research, development, demonstration and the 
commercial application of hydrogen-related technologies. The 
Committee authorized hydrogen science and technology programs 
in the original Spark M. Matsunaga Act of 1990 and Hydrogen 
Future Act of 1996. During the conference on comprehensive 
energy legislation in the 107th Congress (H.R. 4), the 
Committee negotiated language with the Senate conferees on 
amending the Matsunaga and Hydrogen Future Acts, which is 
reflected in H.R. 238 as introduced. At markup, the Committee 
revised the Hydrogen Subtitle to reflect two Presidential 
policy initiatives--the FreedomCAR program, announced in 2001, 
which redirected Federal automotive R&D; to place greater 
emphasis on advanced vehicle technologies using hydrogen and 
fuel cells, and the new Hydrogen Fuel Initiative, which the 
President announced in his State of the Union address in 
January.
    The Committee strongly supports the President's commitment 
to hydrogen, but is particularly intent that the President's 
FreedomCAR and Hydrogen Initiatives address the following 
areas:
    1. Stationary Power Generation.--The President's Hydrogen 
Initiative has a clear focus on hydrogen fuel cell vehicles and 
the infrastructure to support them. Such vehicles hold 
potentially enormous benefits for the Nation, in terms of 
improved energy efficiency, near zero emissions, and reduced 
dependence on foreign oil. However, stationary applications 
face fewer technical barriers before becoming commercially 
viable, especially in niche market applications. The Committee 
strongly encourages the Department to support stationary fuel 
cell research, which will lead to technology advances 
applicable to fuel cell vehicles.
    2. Meaningful Demonstrations.--Past efforts by the 
Department to demonstrate technologies have not always been 
successful in providing reproducible models for commercial 
applications. As the Department demonstrates hydrogen and fuel 
cell technology, the Committee urges the Department to choose 
applications that have value in the commercial market, and can 
be easily reproduced, rather than one-of-a-kind examples that 
do not advance the technology's acceptance. The bill requires 
meaningful demonstrations, such as placing the technology into 
an existing facility, for example placing a stationary fuel 
cell into critical telecommunications switching stations, which 
require uninterruptible power.
    3. Integration of Policy into the Research Plan.--The 
Committee expects the research plan to explicitly state the 
specific policy assumptions that are guiding the development of 
the R&D; agenda. While the Committee understands that the 
Department cannot yet be sure exactly what policies will be put 
in place to facilitate the transition to a hydrogen economy, 
DOE cannot put together an R&D; agenda without making some 
assumptions about the future policy environment. For example, 
the mix of sources we choose to tap for hydrogen (coal, natural 
gas, renewables, etc.) will be greatly affected by government 
policy (air regulations, tax incentives, and so forth). The way 
those sources are used will also be affected by government 
policy. (For example, will carbon sequestration be required in 
the production of hydrogen?) Since DOE's R&D; agenda must 
facilitate the development of technologies that can be put to 
work in a relatively short time in ``the real world,'' DOE's 
decisions about R&D; investments must take into account how that 
world will be shaped by government policy.
    4. Report and Review.--The Committee commends the 
Department on the National Hydrogen Vision and Roadmap, 
especially the involvement of stakeholders and the long-term 
planning those documents embody. The Committee directs the 
Department to continue developing a research plan, and gives 
specific details the Department must consider in section 105. 
The Committee looks forward to working with the Department as 
it develops the research plan. Section 109 also requires the 
Department to engage a non-federal entity, such as the National 
Academy of Sciences, to review the plan after it is developed, 
and review the program and its progress biennially thereafter.
    5. Coordination.--Although the majority of the President's 
initiative will be located in the Office of Energy Efficiency 
and Renewable Energy, it is the intention of the Committee that 
the Department conduct all hydrogen and fuel cell work in a 
coordinated manner to prevent duplication and provide maximum 
benefit. The Committee strongly encourages the Department to 
involve the Office of Science in areas of basic research 
relevant to the program. Additionally, the Committee notes that 
four separate sections of the bill authorize fuel cell RD&D; and 
commercial application: section 142 (c) in fossil energy, 
section 182 amending the Matsunaga Act, section 302 pertaining 
to fuel cell school buses, and section 404 pertaining to fuel 
cell bus demonstration programs. The Committee intends that the 
Secretary coordinate implementations of these provisions to 
maximize their integration and effectiveness.
    The Committee intends that the term ``overall'' in section 
103 (a)(3) indicate that the complete life-cycle, or ``well-to-
wheels'', efficiency and environmental costs be considered as 
the Department is considering various technology options for 
the production, delivery, and use of hydrogen.
    Sec. 196.--University collaboration. The Department has a 
large number of grants, contracts and cooperative agreements 
with universities. Many of them are with some of the largest 
universities in the country. The Committee is interested in 
encouraging greater participation in DOE programs by smaller 
colleges and universities, especially minority-serving 
institutions. The Committee also believes that the considerable 
talents and expertise that reside in these smaller institutions 
can be more effectively utilized through collaborations or 
other teaming arrangements with large universities. The 
Department is encouraged to examine appropriate ways to promote 
these types of arrangements for the benefit of the Department 
and the university community.
    Sec. 197.--Federal laboratory educational partners. Section 
197 amends the Stevenson-Wydler Act to add support of science 
education activities to the list of permissible uses for the 
revenues Federal laboratories receive from their inventions. 
The Committee feels that Federal laboratories, especially DOE's 
National Laboratories, with their high concentrations of 
scientists and engineers, are uniquely positioned to aid 
surrounding communities in improving the learning experience of 
their students. For instance, DOE's National Renewable Energy 
Laboratory initiated the Coalition for Learning Opportunities 
and United Tutors (CLOUT) program in 1998 activities, using 
funds provided by private sources, including funds from 
companies that operate the lab to match volunteers with 
students in 17 Denver public schools. It is the hope of the 
Committee that a portion of this royalty stream can be used to 
expand laboratory educational outreach and to provide 
scientists and engineers as role models to students who might 
not otherwise cross paths with adults with these backgrounds.
    Sec. 198.--Interagency cooperation. Several Federal 
agencies, including NIST, DOE, and NASA, have recently formed 
the Government Agencies Technology Exchange in Manufacturing 
(GATE--M) program to improve the exchange of information 
concerning technical programs and to collaborate for enhanced 
payoffs from federal investments. These agencies have 
recognized the need for improved flow of information and 
technology among agencies and out to the private sector. The 
Committee expects that DOE and NASA will use GATE--M as a model 
for interagency collaboration, utilizing NASA technical 
expertise and research to enhance commercial development and 
technology transfer programs and to improve U.S. industry 
competitiveness in producing solar, wind, fuel cell, and 
hydrogen energy products.
    Sec. 202.--Report on equal employment opportunity 
practices. This section directs the Secretary to transmit a 
biennial report on equal employment practices at non-military 
energy laboratories. The Committee expects the Secretary to 
deliver the first of these reports within 12 months of the date 
of enactment of this Act.
    Sec. 203.--External regulation of Department of Energy. The 
Committee has monitored the debate on external regulation since 
the late 1980s. In 1999, the Energy Subcommittee of the 
Committee on Science held a hearing on the Department's 
original set of pilot projects at which DOE, NRC, OSHA and the 
General Accounting Office (GAO) testified. The witnesses 
testified that those pilot projects demonstrated the 
feasibility of ending the Department's self-regulation of 
nuclear safety and worker safety and health. The Committee is 
convinced that this reform, if properly implemented, would keep 
the labs safe and save the taxpayers money.
    This provision would require the Department to end its 
self-regulation of nuclear and worker safety and health within 
24 months of the enactment of this Act. The responsibility for 
regulating nuclear safety will be assumed by the NRC; the 
responsibility for regulating worker safety and health will be 
taken up by OSHA.
    Currently, DOE is unique among Federal agencies in that it 
self-regulates nuclear and worker safety and health at its 
facilities. Work by the GAO strongly suggests that the 
Department is an inefficient regulator at best. The GAO also 
reported that Lab directors representing the five multi-program 
science labs indicated that they could reduce or redirect their 
safety and health (S&H;) staff by up to 30 percent with external 
regulation. GAO also found that Battelle, which manages three 
of the Department's labs, spends one-half to one-third less on 
S&H; at its externally regulated private-sector labs. According 
to DOE's 2002 Best Practices Pilot Study, in comparison with 
similar NASA and NSF-funded facilities, the Department appears 
to use notably more resources in S&H; with no demonstrable gain 
in safety.
    One negative consequence of self-regulation is that workers 
who may face unsafe conditions may be cowed into not reporting 
those conditions due to fear of retaliation. The Department and 
its contractors are put in the unenviable position of being 
seen to have a conflict-of-interest between carrying out their 
missions and correcting working conditions that may be unsafe. 
Removing the Department from the business of regulating itself 
would improve this situation, creating a safer environment in 
the labs. Further, it will improve the credibility of the labs 
with the communities that house those labs. It is the 
Committee's view that such apparent conflicts of interest would 
be less likely to develop if credible outside regulatory 
agencies--OSHA and NRC--were involved in regulating the labs.
    There will be costs involved in a transition to external 
regulation; however, Departmental estimates on the costs have 
been unreliable. An estimate by the labs suggested compliance 
costs (that is, bringing the complex up to the regulatory 
standards of OSHA and the NRC) would be on the order of $75 
million. In addition, the labs anticipate some $200 million 
will be required for decontamination and decommissioning of 
old, unused science facilities to comply with NRC guidelines. 
GAO estimates that, if the Department dramatically changes its 
approach to safety and health oversight, relying instead on 
industry norms for risk management as is done by NASA, an 
agency with a comparable science laboratory, safety and health 
costs could be reduced by up to $41 million each year. We 
anticipate that some proportion of the savings will actually go 
to more scientific study in the labs while some proportion will 
be reflected in smaller appropriations for the Department. 
Uncertainties regarding cost led the House Appropriations 
Energy and Water Subcommittee to direct the Department to work 
with the NRC and OSHA on a compliance audit of the ten labs. 
The audit is to be completed by April 30, 2004. We encourage 
our colleagues on the Appropriations Committee to provide funds 
sufficient to complete the work necessary to bring the complex 
up to code.
    Both NRC and OSHA will require additional funding for 
annual training and will have annual personnel costs, estimated 
to be $6.9 million a year. The Committee encourages these 
agencies to budget for these tasks beginning with their fiscal 
year 2005 submission. The Committee looks forward to closely 
monitoring and reviewing all transition plans prepared by the 
DOE, OSHA or the NRC. In addition, the Committee strongly 
recommends both the NRC and OSHA show maximum flexibility in 
applying their regulatory standards to the Department's lab 
complex. In exercising this flexibility, NRC and OSHA should 
recognize DOE's expertise in the operation and maintenance of 
unique facilities and equipment and avoid undue interference 
with their scientific missions. In all cases, we ask NRC and 
OSHA to provide adequate time for the laboratories to comply 
with its regulations.
    In carrying out the provisions of this title, the Secretary 
is directed to follow the guidance provided by GAO regarding 
management reform in external regulation. It is not the 
Committee's intent to see dual regulation continue--that is, 
the Department maintaining its current level of effort 
overseeing the labs' nuclear and worker safety and health 
programs--nor does the Committee intend that S&H; standards be 
weakened in any way. Rather, the Committee expects the 
Department to adopt bold, new, efficient management techniques 
to save taxpayer money and allow the labs to do the work the 
Congress funds them to do: world-class science.
    The 1997-1999 pilot program demonstrated that the 
contractors must hold licenses if significant cost savings are 
to be realized. It is for this reason the Committee requires 
this licensing in Section 202(b)(2). The DOE report to Congress 
should clearly indicate the roles of OSHA and NRC, and 
demonstrate DOE's close cooperation with the agencies as they 
develop a plan for transition to external regulation. The 
Committee also directs GAO to track the Department's progress 
and ensure cost saving reforms are made so that S&H; standards 
can be carried out in the most intelligent and efficient manner 
possible.
    Sec. 303.--Diesel Retrofit Program. The Committee 
recognizes the clear benefits to the health of children who 
ride school buses of retrofitting those buses made in 1991 and 
later model years with emissions control technology, 
particularly newer diesel emissions control technology, if it 
can be demonstrated to be reliable. The Committee recognizes 
the effort of EPA, and directs the Secretary to work closely 
with the Administrator of that agency.
    Sec. 402.--Pilot program. In selecting applicants and 
project sites, the Secretary should, consistent with subsection 
103(d)(1), give special consideration to proposals that address 
environmental needs in Clean Air Act nonattainment areas like 
the Washington, DC metropolitan region and in communities 
seeking to meet zero air emission goals, like Santa Clara 
County, California.
    Sec. 404.--Fuel cell transit bus demonstration. This 
section directs the Secretary to establish a comprehensive 
public private partnership program to demonstrate hydrogen fuel 
cell transit bus technology. The Committee recognizes that fuel 
cell technology could significantly contribute to improving the 
cost effectiveness and environmental impact of mass transit 
options. However, more research and development work needs to 
be done to address a number of issues related to this 
technology. This demonstration program should specifically 
address numerous aspects of the introduction of this new 
technology, including consideration of the following 
components:
          1. Design and production of the Polymer Electrolyte 
        Membrane (PEM) fuel cell power plant, electric drive 
        and other components and integration of the power plant 
        system with the bus chassis;
          2. Demonstration of system reliability and durability 
        capable of meeting the initial mission requirements of 
        transit bus authorities;
          3. Design and development of a fuel cell friendly bus 
        chassis that can become a standard platform for transit 
        bus Original Equipment Manufacturers (OEM);
          4. Transit bus infrastructure requirements such as 
        hydrogen production, storage and distribution;
          5. On-site demonstration of hydrogen production 
        using: commercial and renewable, gaseous and liquid 
        fuels, and water electrolysis coupled with a renewable 
        energy source;
          6. Design, development and demonstration of a 
        hydrogen storage system;
          7. Data collection, verification and testing, and 
        information dissemination;
          8. Identification and implementation of necessary 
        codes and standards for the safe use of hydrogen as a 
        fuel suitable for the transit bus application, 
        including the PEM fuel cell power plant system and 
        related operational facilities; and
          9. Completion of fleet vehicle evaluation program by 
        bus operators along normal transit routes, providing 
        equipment manufacturers and transit operators with the 
        necessary analyses to enable operation of hydrogen PEM 
        fuel cell transit buses over a range of operating 
        environments.
    The Committee is aware that the Department of 
Transportation is currently developing and funding a number of 
Bus Rapid Transit (BRT) demonstration programs around the 
country. The Committee believes that the BRT program is 
structured in a way that would facilitate the execution of this 
fuel cell bus demonstration program, as well as reducing 
redundancy in interagency research, and recommends the 
Secretary consider coordinating this fuel cell demonstration 
with existing BRT initiatives where there is local support to 
do so. The Committee also recognizes that local organizations, 
such as the Houston-Galveston Area Council, are well equipped 
to assist the Federal government in demonstrating the benefits 
from research on fuel cell technologies used for low-emission 
mass transit vehicles.
    Title V--Clean Coal. Like the Administration, the Committee 
believes that coal is likely to continue to be a significant 
source of electric power in the U.S. for years to come, given 
its domestic abundance. However, if that is to be the case, 
coal must become a far more efficient and cleaner fuel. Section 
501 authorizes appropriations of $200 million per year for 
fiscal years 2003 through 2011, for the Clean Coal Power 
Initiative (CCPI). Section 502 sets out project criteria, 
including technical milestones for reduced emissions and for 
improved thermal efficiency. The Committee notes that 
improvements in efficiency in existing plants will be necessary 
to keep them competitive. As such, the efficiency targets set 
out in Section 502(b)(4) for efficiency refer to changes in the 
total plant efficiency. For example, for coal of 7000 British 
thermal units per pound (btu/lb.), these targets require that 
plants would be expected to improve from 29 percent total plant 
efficiency to 33 percent total plant efficiency. Such 
improvements will require, among other actions, government 
investment in research, development, demonstration and 
commercial application of truly advanced coal technologies. 
Neither the taxpayers nor the coal industry will be well served 
in the long run if government investments are made in 
technologies that do not ``push the edge of the envelope.'' 
Moreover, a concerted effort will be needed to strengthen the 
management of clean coal programs.
    With those concerns in mind, Title V places a number of 
requirements and restrictions on coal programs, particularly on 
the CCPI. First, the Committee requires a detailed report on 
how CCPI will be organized and implemented. The Committee is 
troubled that at Committee hearings in the last Congress, the 
Administration witness could explain neither how the $2 billion 
figure was arrived at nor how the money would be spent. Given 
the priority the Administration has placed on the CCPI, the 
Committee will allow the Initiative to begin. However, no new 
projects will be allowed to be started as of October 1, 2005, 
unless the Administration has submitted the detailed report 
required by this Act.
    The report must be specific in explaining how the $2 
billion figure was developed, the scope of the program, how the 
program will operate, what technical milestones will be 
established and how they will be achieved, and how the program 
can be guided or informed by the successes and failures of past 
clean coal efforts. Section 501 requires that the report 
contain a number of specific components. First, the report must 
contain a detailed assessment of whether the aggregate funding 
levels provided under subsection (a) are the appropriate 
funding levels for that program. The Committee expects that 
this section will include an estimate of total number of 
demonstrations of a given class of technology that are 
necessary to prove acceptance of the technology by industry, 
the approximate risk and cost reductions likely from second and 
successive demonstrations, and how these changes in cost and 
risk should affect the program's industrial participants' 
willingness to cost-share.
    Second, the legislation requires a detailed description of 
how proposals will be solicited and evaluated, including a list 
of all activities expected to be undertaken. The Committee 
expects that this section will include the relative weights of 
technical merit, of cost sharing, of the financial ability of 
the participant to complete the project, of the anticipated 
size of the target market, and other considerations factored 
into project evaluations. The Committee expects that this 
section will also include an evaluation of the market segments 
that each technology demonstrated in the program is intended 
for, the share of the overall coal power market of each 
technology and the share of the overall electricity market of 
each technology.
    Third, the report must contain a detailed list of technical 
milestones for each coal and related technology that will be 
pursued. The Committee expects that this section will define 
the performance levels (especially emissions and efficiency 
criteria outlined in Section 502) that successive projects are 
anticipated to meet, and the timeline for project awards to 
meet each performance level.
    Finally, the report must include a detailed description of 
how the program will avoid problems enumerated in GAO reports 
on the Clean Coal Technology Program, including problems that 
have resulted in unspent funds and projects that failed either 
financially or scientifically. The Committee expects that this 
section will include a detailed plan on contract mechanisms and 
enforcement to ensure that project partners with successful 
projects meet their obligations.
    Subsection 501(b) provides that no new projects can be 
started after September 30, 2005, unless the Secretary has 
transmitted the report outlined in section 502 to Congress and 
Congress has had at least 30 days to review the report.
    The biennial report mentioned in Section 503 can be 
submitted as a part of the annual report required by Public Law 
99-190 in the Clean Coal Technology Program, provided that it 
includes all the information required by that law. The 
Committee expects that cost-sharing will continue to be an 
important tool for leveraging scarce Federal resources, and 
therefore expects that the Department will continue to use 
cost-sharing as a major factor in project selection, especially 
in regard to demonstration projects. As milestones are met in 
the program and technologies approach commercialization, the 
Committee expects an increase in the private contribution to 
the program. The Act also establishes strict environmental 
standards that projects must be designed to meet and reasonably 
be expected to achieve in order to receive funding. Moreover, 
at least 80 percent of the funding must be devoted to projects 
related to gasification (which may include sequestration), 
because these are technologies that are furthest from 
development and promise the greatest environmental benefit 
among economically viable technologies, and, therefore, are the 
ones most deserving of government support.
    The Committee intends that the Secretary set strict, 
achievable, specific environmental milestones to ensure that 
the projects comply with section 502. The environmental 
criteria in this Act, which are taken from industry's own 
technology roadmap, are not mere advisory guidelines. They are 
precise requirements that the program must be designed to meet.
    The Committee intends that the efficiency requirements 
refer to generation efficiency and that the efficiency numbers 
apply to plants that are exclusively generating power. The 
Secretary should issue equivalent efficiency numbers for plants 
involved in the production of industrial chemicals or other 
activities.
    The Act also sets strict financial criteria for 
participants in CCPI. These criteria are absolutely essential 
to the success of the program. The Committee intends that the 
Secretary require specific, written documentation and audits 
from the participants to meet the requirements of subsection 
503(c). For example, a market should exist for the technology 
being demonstrated or applied, as evidenced by statements of 
interest in writing from potential purchasers of technology.
    The Committee recommends that the Secretary consult with 
objective, outside experts in developing the report, including 
those from the National Academy of Sciences (who will 
eventually be reviewing the program, pursuant to section 
187(e)) and GAO. The Committee also recommends that, in writing 
the report and carrying out the program, the Secretary consult 
with environmental groups and other environmental experts, the 
coal industry, the utility industry, and the coal equipment 
manufacturing industry.
    Sec. 504--Clean Coal Centers of Excellence. This section 
directs the Secretary to provide grants to universities for the 
establishment of clean coal centers of excellence. Based on the 
Subcommittee on Energy's June 12, 2001 hearing on Clean Coal 
Technology and subsequent discussions and materials, the 
Committee strongly encourages the Secretary to consider as 
potential recipients Southern Illinois University, the 
University of Pittsburgh, Carnegie-Mellon University, and the 
Center for Electric Power at Tennessee Technological 
University.

                           IX. Cost Estimate

    Rule XIII, clause 3(c)(2) of the Rules of the House of 
Representatives requires each Committee Report on a measure 
approved by the Committee to include: (1) an estimate by the 
Committee of the costs that would be incurred in carrying out 
the bill or joint resolution in the fiscal year in which it is 
reported and in each of the five fiscal years following that 
fiscal year (or for the authorized duration of any program 
authorized by the bill or joint resolution if less than five 
years); (2) a comparison of the estimate of costs described in 
subparagraph (1) of this paragraph made by the Committee with 
any estimate of such costs made by a government agency and 
submitted to such Committee; and (3) when practicable, a 
comparison of the total estimated funding level for the 
relevant programs with the appropriate levels under current 
law. However, House Rule XIII, clause 3(d)(3)(B) provides that 
this requirement does not apply when a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been submitted prior to the filing of the report and 
included in the report pursuant to House Rule XIII, clause 
3(c)(3). A cost estimate and comparison prepared by the 
Director of the Congressional Budget Office under section 402 
of the Congressional Budget Act of 1974 has been submitted to 
the Committee on Science prior to the filing of this report and 
is included in Section X of this report pursuant to House Rule 
XIII, clause 3(c)(3).
    Rule XIII, clause 3(c)(2) of the House of Representatives 
requires each Committee Report that accompanies a measure 
providing new budget authority (other than continuing 
appropriations), new spending authority, or new credit 
authority, or changes in revenues or tax expenditures to 
contain a cost estimate, as required by section 308(a)(1) of 
the Congressional Budget Act of 1974 and, when practicable, 
with respect to estimates of new budget authority, a comparison 
of the total estimated funding level for the relevant program 
(or programs) to the appropriate levels under current law. H.R. 
238 does not contain any new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
238 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in section X of this report.

              X. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 15, 2003.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 238, the Energy 
Research, Development, Demonstration, and Commercial 
Application Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                          Barry B. Anderson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 238--Energy Research, Development, Demonstration, and Commercial 
        Application Act of 2003

    Summary: H.R. 238 would authorize funding for various 
research activities at the Department of Energy (DOE) and the 
Environmental Protection Agency (EPA), and would change the way 
some of DOE's laboratories are regulated. The bill also would 
authorize loan guarantees for new technologies. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing H.R. 238 would cost a total of $32.7 billion over 
the next five years and a total of $36.7 billion over the 2004-
2013 period. CBO estimates that enacting the bill would not 
affect direct spending or revenues.
    H.R. 238 contains both an intergovernmental and a private-
sector mandate as defined in the Unfunded Mandates Reform Act 
(UMRA) by effectively increasing the annual fees collected from 
Nuclear Regulatory Commission (NRC) licensees. However, CBO 
estimates that the fee increase would fall well below the 
annual thresholds established by that act over the next five 
years ($59 million for intergovernmental mandates and $117 
million for private-sector mandates in 2003, adjusted annually 
for inflation). The remaining provisions of the bill contain no 
intergovernmental or private-sector mandates, and any costs 
borne by states would be voluntary or would result from 
conditions of federal aid.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 238 is shown in the following table. 
The costs of this legislation fall within budget functions 250 
(general science, space, and technology) 270 (energy), and 300 
(natural resources and the environment).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending for Certain Energy R&D; Under Current Law:
    Budget Authority \1\..................................    5,251        0        0        0        0        0
    Estimated Outlays.....................................    5,044    2,722      571      146       47        0
Proposed Changes:
    Specified Authorizations:
        Authorization Level...............................        0    6,784    7,071    7,789    8,605      700
        Estimated Outlays.................................        0    3,241    6,286    7,344    8,142    4,616
    Estimated Authorizations:
        Oil and Gas R&D;:
            Estimated Authorization Level.................        0      422      437      477      526      553
            Estimated Outlays.............................        0       21      258      444      539      512
        Loan Guarantees:
            Estimated Authorization Level.................        0      200      200      200        0        0
            Estimated Outlays.............................        0       10       80      160      190      120
        External Regulation of DOE Labs:
            Estimated Authorization Level.................        0      153      152      104      107        8
            Estimated Outlays.............................        0       52      122      137      118       73
        Other Activities:
            Estimated Authorization Level.................        0       71       80       90       11       11
            Estimated Outlays.............................        0       29       65       83       57       23
        Subtotal of Estimated Authorizations:
            Estimated Authorization Level.................        0      845      869      872      644      572
            Estimated Outlays.............................        0      113      525      824      904      727
    Total Proposed Changes:
        Estimated Authorization Level.....................        0    7,630    7,940    8,660    9,249    1,272
        Estimated Outlays.................................        0    3,353    6,811    8,168    9,046    5,344
Spending Under H.R. 238:
    Estimated Authorization Level \1\.....................    5,251    7,630    7,940    8,660    9,249    1,272
    Estimated Outlays.....................................    5,044    6,075    7,382    8,314    9,093    5,344
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year for DOE programs related to science, energy supply,
  fossil energy, and certain energy conservation programs. It also includes $5 million that was appropriated in
  2003 for grants made by EPA to upgrade school buses.

Note.--R & D=Research and Development.

    Basis of estimate: For this estimate, CBO assumes that the 
amounts authorized by H.R. 238 will be appropriated near the 
beginning of each fiscal year and that spending will follow 
historical patterns for ongoing or similar activities.

Authorization of specified amounts

    H.R. 238 would specifically authorize the appropriation of 
$31.8 billion over the 2004-2012 period for certain research 
and development (R&D;), grant, and loan programs. Over half of 
this funding (or $17.9 billion) would be allocated to DOE's 
science programs, with most of the balance going to R&D; related 
to energy efficiency and various fuel sources. Other provisions 
specifically authorize $500 million for grants to states and 
localities for acquiring vehicles and school buses that use 
alternative fuels and ultra-low-sulfur diesel fuel; $125 
million for a direct loan for a specific coal project in 
Alaska; $23 million for cooperative research between the United 
States and Mexico; and $1 million for feasibility studies on 
using post-consumer carpet in cement kilns and on establishing 
a center for testing next-generation fuel cells. Estimated 
outlays for the specified authorizations would total $29.6 
billion over the next five years and $31.8 billion over the 
next 10 years.

Estimated authorizations

    In addition to these specified amounts, H.R. 238 would 
authorize appropriations for other research programs, credit 
assistance, grants, studies, and regulatory reforms. CBO 
estimates that implementing these provisions would cost a total 
of $3.1 billion over the 2004-2008 period and a total of $4.9 
billion over the 10-year period.
    Oil and Gas Research. H.R. 238 would allow DOE to spend 7.5 
percent of the government's collections from oil and gas 
royalties for certain oil and gas research, subject to future 
appropriation action. This authorization for oil and gas 
research and development programs would extend through fiscal 
year 2010. Based on CBO's projection of royalties from oil and 
gas production, we estimate that this provision would cost 
between $400 million to $500 million annually.
    Loan Guarantees. The bill also would authorize DOE to 
guarantee loans for certain gasification projects that use coal 
or other natural resources as input. Section 174 would allow 
DOE to provide a loan guarantee for a 400 megawatt project that 
uses integrated gasification combined-cycle technology and 
sells power in deregulated energy markets at competitive rates 
without subsidies from ratepayers.
    The bill also would authorize the department to guarantee 
loans for at least one polygeneration plant that uses petroleum 
coke gasification technology. (Polygeneration plants typically 
produce multiple products, such as electricity, chemicals, and 
steam.)
    Under credit reform procedures, funds must be appropriated 
in advance to cover the subsidy cost of such loan guarantees, 
measured on a present-value basis. CBO expects that 
gasification and polygeneration projects would be riskier than 
conventional power plants. Both the coal and coke projects 
would require large capital investments, ranging from over $500 
million for a 400 megawatt gasification plant to $1 billion or 
more for some of the polygeneration plants being proposed in 
the United States. In contracts, a conventional natural gas 
power plant could be built for half the cost. As a result, the 
gasification and coke projects are financially viable only when 
operating costs are well below those using alternative fuels. 
In addition, the new technologies may pose special technical 
risks. The credit risk posed by such projects also would depend 
on the terms of purchase agreements and other contracts.
    H.R. 238 does not impose any limits on the amount or terms 
of those loan guarantees. For this estimate, CBO assumes that 
DOE would guarantee investments totaling about $2 billion over 
the next five years. The subsidy cost of such loan guarantees 
could vary widely--at worst, the government could absorb all of 
the risk, effectively converting the loan guarantees into a 
grant (as occurred in the 1980s for a coal gasification project 
in North Dakota). For this estimate, CBO assumes that DOE would 
only guarantee projects if the terms are at least equivalent to 
those of bonds rated CCC by companies like Standard and Poor 
and Moodys. Projects with this rating typically have a 
cumulative default risk of more than 50 percent. At the same 
time, CBO assumes that coal or coke projects are unlikely to be 
more creditworthy than conventional power plants (many of which 
have a BB rating, which suggests a cumulative default risk of 
about 24 percent). Given this range of possible outcomes, CBO 
estimates that these provisions would result in loans being 
guaranteed with a 30 percent subsidy, resulting in a cost of 
about $600 million over the 2004-2008 period.
    External Regulation. Title II would authorize the Nuclear 
Regulatory Commission and the Occupational Safety and Health 
Administration (OSHA) to regulate 10 of DOE's national energy 
laboratories. Under current law, DOE is responsible for 
regulating those labs. Based on information from DOE, OSHA, and 
NRC, CBO estimates that transferring the regulation of those 
labs to NRC and OSHA would have a gross cost of about $525 
million over the 2004-2008 period, assuming appropriation of 
the necessary amounts. The NRC, however, has the authority to 
offset a substantial portion of its appropriation with fees 
charged to facilities it regulates. After accounting for such 
collections, we estimate that the net cost of implementing H.R. 
238 would be about $500 million over the same period.
    The cost of transferring the regulatory authority to NRC 
and OSHA would include modifying DOE facilities to meet current 
NRC and OSHA standards, updating OSHA and NRC rules and 
regulations to accommodate unique DOE facilities, and 
decommissioning facilities no longer in use. Based on 
information from these agencies, CBO estimates that the cost of 
administrative changes and upgrading DOE facilities would be 
about $500 million over the 2004-2008 period. This figure could 
be lower or higher depending upon how stringently NRC and OSHA 
regulate the labs. In addition, it is likely that a portion of 
the cost to upgrade and decommission facilities could be 
incurred under current law. Finally, CBO estimates that NRC and 
OSHA would spend about $7 million annually to inspect and 
regulate the labs.
    External regulation could result in some cost savings to 
DOE when NRC and OSHA undertake some of DOE's current 
responsibilities. Under current law, DOE spends about $145 
million a year to regulate these labs. Based on information 
from DOE and the General Accounting Office, we expect any such 
savings would eventually be $5 million to $10 million a year, 
but would not be realized for several years.
    Other Activities. H.R. 238 would authorize appropriation of 
the amounts necessary for several other initiatives. It would 
authorize EPA to issue grants over the 2004-2006 period to 
demonstrate technologies for retrofitting diesel school buses 
so they can use cleaner fuels. Based on information from EPA, 
CBO estimates that the agency would spend a total of $210 
million over the 2004-2008 period for such projects. Another 
provision would authorize DOE to support the development of 
biopower and biofuels projects that use certain rice, barley, 
sugarcane, and forest products. CBO estimates that such 
activities would cost around $10 million annually, based on 
information from DOE. Finally, the bill would authorize a study 
by the National Academy of Sciences (NAS) on issues related to 
the commercialization and transfer of technologies developed by 
DOE. According to the NAS, this study would cost about 
$600,000.
    Intergovernmental and private-sector impact: Under current 
law, the NRC collects annual fees from its licensees, both 
public and private, to offset a major portion of its general 
fund appropriation. Because H.R. 238 would shift the regulatory 
responsibility for certain nonmilitary energy laboratories from 
the Department of Energy to NRC, CBO expects that additional 
fees would be collected from the licensees to cover the cost of 
the external regulation. The duty to pay those fee increases 
would be considered both an intergovernmental and a private-
sector mandate under UMRA as it results in an increase in the 
cost of an existing mandate. Assuming amounts necessary to 
cover the costs of NRC's additional regulatory responsibilities 
are appropriated, CBO estimates the additional fees would total 
$24 million over the next five years. Those additional costs to 
NRC licensees would fall well below the annual thresholds 
established by UMRA ($59 million for intergovernmental mandates 
and $117 million for private-sector mandates in 2003, adjusted 
annually for inflation).
    The remaining provisions of H.R. 238 contain no 
intergovernmental or private-sector mandates as defined in 
UMRA. States would benefit from the research and development 
initiatives that seek greater energy efficiency in all major 
energy sectors. States that participate in the proposed grant 
programs for secondary battery use, advanced technology 
transfer centers, renewable energy in government buildings, 
clean school and transit buses, and other initiatives may face 
match requirements and other costs, but any such costs result 
from conditions of federal aid, and thus, would be voluntary.
    Estimate prepared by: Federal Costs: Julie Middleton, 
Kathleen Gramp, Lisa Cash Driskill, and Susanne Mehlman. Impact 
on State, Local, and Tribal Governments: Greg Waring. Impact on 
the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  XI. Compliance With Public Law 104-4

    H.R. 238 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    Rule XIII, clause 3(c)(1) of the Rules of the House of 
Representatives requires each Committee Report on a measure 
approved by the Committee to include oversight findings and 
recommendations required pursuant to clause 2(b)(1) of rule X. 
The Committee on Science's oversight findings and 
recommendations are reflected in the body of this report.

                XIII. Constitutional Authority Statement

    Rule XIII, clause 3(d)(1) of the Rules of the House of 
Representatives requires that each report of a Committee on a 
public bill or public joint resolution shall contain a 
statement citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by the bill or joint 
resolution. Article I, section 8 of the Constitution of the 
United States grants Congress the authority to enact H.R. 238.

               XIV. Federal Advisory Committee Statement

    H.R. 238 creates six advisory committee(s) within the 
meaning of section 5(b) of the Federal Advisory Committee Act 
whose functions are not currently being performed, nor could 
they be performed by one or more agencies, by an advisory 
committee already in existence, or by enlarging the mandate of 
an existing advisory committee:
    1. Section 106(e) requires the Director of OSTP to 
establish an advisory committee to the interagency group 
responsible for the development and implementation of a 
National Building Performance Initiative to address energy 
conservation, RD&D; and commercial application, and related 
issues.
    2. Section 110A(f) requires the Secretary to establish an 
Advisory Committee for Advanced Energy Technology Transfer 
Centers composed of members from State or local energy offices, 
energy professionals, trade or professional associations, 
architects, engineers, construction professionals, 
manufacturers, the research community, and nonprofit energy or 
environmental organizations to advise the Secretary on the 
establishment of the Centers under this section.
    3. Section 148(a) requires the Secretary to establish the 
Ultra-Deepwater Advisory Committee. The purpose of this 
advisory committee is to advise the Secretary on the 
development and implementation of programs related to ultra-
deepwater natural gas and other petroleum resources.
    4. Section 148(b) requires the Secretary to establish the 
Unconventional Resources Technology Advisory Committee. The 
purpose of this advisory committee is to advise the Secretary 
on the development and implementation of programs under this 
part related to unconventional natural gas and other petroleum 
resources.
    5. Section 187(b)(2) requires the Secretary to establish 
the Science Advisory Committee within the Office of Science to 
include of the chairs of the existing scientific program 
advisory committees.
    6. Section 188 requires the Secretary to establish the 
Technology Transfer Working Group, which shall consist of 
representatives of the National Laboratories and single-purpose 
research facilities.
    In addition, H.R. 238, section 182 amends section 108 of 
the Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 by replacing the existing Hydrogen 
Technical Advisory Panel with the Hydrogen Technical and Fuel 
Cell Advisory Committee consisting of experts drawn from 
domestic industry, academia, professional societies, 
governmental laboratories, and financial, environmental, and 
other organizations, as appropriate, to review and advise on 
the progress made through the programs and activities 
authorized under the Act.
    Section 187(a) authorizes the creation of at least four 
advisory committees within the meaning of section 5(b) of the 
Federal Advisory Committee Act whose functions are not 
currently being performed, but whose functions could 
potentially be assumed by expanding the mandate of existing 
committees. In these cases, however, the decision to establish 
new committees or expand existing ones is left to the 
discretion of the Secretary.

                  XV. Congressional Accountability Act

    The Committee finds that H.R. 238 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

      XVI. Statement on Preemption of State, Local, or Tribal Law

    H.R. 238 is not intended to preempt any State, local, or 
Tribal law.

      XVII. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

HIGH-PERFORMANCE COMPUTING ACT OF 1991

           *       *       *       *       *       *       *



SEC. 4. DEFINITIONS.

  As used in this Act, the term--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) ``high-performance computing'' [means] and 
        ``networking and information technology'' mean advanced 
        computing, communications, and information 
        technologies, including scientific workstations, 
        supercomputer systems [(including vector supercomputers 
        and large scale parallel systems)], high-capacity and 
        high-speed networks, special purpose and experimental 
        systems, and applications and systems software;
          (4) ``Internet'' means the international computer 
        network of both Federal and non-Federal interoperable 
        [packet switched] data networks;

           *       *       *       *       *       *       *


TITLE II--AGENCY ACTIVITIES

           *       *       *       *       *       *       *



SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

  (a) General Responsibilities.--As part of the [Program 
described in title I, the Secretary of Energy shall--
          [(1) perform research and development on, and systems 
        evaluations of, high-performance computing and 
        communications systems;
          [(2) conduct computational research with emphasis on 
        energy applications;
          [(3) support basic research, education, and human 
        resources in computational science; and
          [(4) provide for networking infrastructure support 
        for energy-related mission activities.] 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--
          (1) supporting fundamental research in the physical 
        sciences and engineering, and energy applications;
          (2) providing supercomputer access and advanced 
        communication capabilities and facilities to scientific 
        researchers; and
          (3) developing tools for distributed scientific 
        collaboration.
  (b) Collaborative Consortia.--In accordance with the 
[Program] Networking and Information Technology Research and 
Development Program, the Secretary of Energy shall establish 
High-Performance Computing Research and Development 
Collaborative Consortia by soliciting and selecting proposals. 
Each Collaborative Consortium shall--
          (1)  * * *

           *       *       *       *       *       *       *

  [(e) Authorization of Appropriations.--(1) There are 
authorized to be appropriated to the Secretary of Energy for 
the purposes of the Program $93,000,000 for fiscal year 1992; 
$110,000,000 for fiscal year 1993; $138,000,000 for fiscal year 
1994: $157,000,000 for fiscal year 1995; and $169,000,000 for 
fiscal year 1996.
  [(2) There are authorized to be appropriated to the Secretary 
of Energy for fiscal years 1992, 1993, 1994, 1995, and 1996, 
such funds as may be necessary to carry out the activities that 
are not part of the Program but are authorized by this 
section.]
  (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 2007.

           *       *       *       *       *       *       *

                              ----------                              


 SPARK M. MATSUNAGA HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
ACT OF 1990

           *       *       *       *       *       *       *


[SEC. 102. FINDING, PURPOSES, AND DEFINITION.

  [(a) Finding.--Congress finds that it is in the national 
interest to accelerate efforts to develop a domestic capability 
to economically produce hydrogen in quantities that will make a 
significant contribution toward reducing the Nation's 
dependence on conventional fuels.
  [(b) Purposes.--The purposes of this Act are--
  [(1) to direct the Secretary of Energy to conduct a research, 
development, and demonstration program leading to the 
production, storage, transport, and use of hydrogen for 
industrial, residential, transportation, and utility 
applications;
          [(2) to direct the Secretary to develop a technology 
        assessment and information transfer program among the 
        Federal agencies and aerospace, transportation, energy, 
        and other entities; and
          [(3) to develop renewable energy resources as a 
        primary source of energy for the production of 
        hydrogen.
  [(c) Definition.--As used in this Act, the term:
          [(1) ``critical technology'' (or ``critical technical 
        issue'') means a technology (or issue) that, in the 
        opinion of the Secretary, requires understanding and 
        development in order to take the next needed step in 
        the development of hydrogen as an economic fuel or 
        storage medium;
  [(2) ``Department'' means the Department of Energy; and
          [(3) ``Secretary'' means the Secretary of Energy.

[Sec. 103. Report to Congress

  [(a) Not later than January 1, 1999, the Secretary shall 
transmit to Congress a detailed report on the status and 
progress of the programs authorized under this Act.
  [(b) A report under subsection (a) shall include, in addition 
to any views and recommendations of the Secretary--
          [(1) an analysis of the effectiveness of the programs 

        authorized under this chapter, to be prepared and 
        submitted to the Secretary by the Hydrogen Technical 
        Advisory Panel established under section 108 of this 
        Act; and
          [(2) recommendations of the Hydrogen Technical 
        Advisory Panel for any improvements in the program that 
        are needed, including recommendations for additional 
        legislation.

[Sec. 104. Hydrogen research and development

  [(a) The Secretary shall conduct a hydrogen research and 
development program relating to production, storage, 
transportation, and use of hydrogen, with the goal of enabling 
the private sector to demonstrate the technical feasibility of 
using hydrogen for industrial, residential, transportation, and 
utility applications.
  [(b) In conducting the program authorized by this section, 
the Secretary shall--
          [(1) give particular attention to developing an 
        understanding and resolution of critical technical 
        issues preventing the introduction of hydrogen into the 
        marketplace;
          [(2) initiate or accelerate existing research in 
        critical 
        technical issues that will contribute to the 
        development of more economic hydrogen production and 
        use, including, but not limited to, critical technical 
        issues with respect to production (giving priority to 
        those production techniques that use renewable energy 
        resources as their primary source of energy for 
        hydrogen production), liquefaction, transmission, 
        distribution, storage, and use (including use of 
        hydrogen in surface transportation); and
          [(3) survey private sector hydrogen activities and 
        take steps to ensure that research and development 
        activities under this section do not displace or 
        compete with the privately funded hydrogen research and 
        development activities of United States industry.
  [(c) The Secretary is authorized to evaluate any reasonable 
new or improved technology, including basic research on highly 
innovative energy technologies, that could lead or contribute 
to the development of economic hydrogen production, storage, 
and utilization.
  [(d) The Secretary is authorized to evaluate any reasonable 
new or improved technology that could lead or contribute to, or 
demonstrate the use of, advanced renewable energy systems or 
hybrid systems for use in isolated communities that currently 
import diesel fuel as the primary fuel for electric power 
production.
  [(e) The Secretary is authorized to arrange for tests and 
demonstrations and to disseminate to researchers and developers 
information, data, and other materials necessary to support the 
research and development activities authorized under this 
section and other efforts authorized under this chapter, 
consistent with section 106 of this Act.
  [(f) The Secretary shall carry out the research and 
development activities authorized under this section only 
through the funding of research and development proposals 
submitted by interested persons according to such procedures as 
the Secretary may require and evaluate on a competitive basis 
using peer review. Such funding shall be in the form of a grant 
agreement, procurement contract, or cooperative agreement (as 
those terms are used in chapter 63 of title 31, United States 
Code).
  [(g) The Secretary shall not consider a proposal submitted by 
a person from industry unless the proposal contains a 
certification that reasonable efforts to obtain non-Federal 
funding for the entire cost of the project have been made, and 
that such non-Federal funding could not be reasonably obtained. 
As appropriate, the Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the cost of the 
development portion of such a proposal.
  [(h) The Secretary shall not carry out any activities under 
this section that unnecessarily duplicate activities carried 
out elsewhere by the Federal Government or industry.
  [(i) The Secretary shall establish, after consultation with 
other Federal agencies, terms and conditions under which 
Federal funding will be provided under this chapter that are 
consistent with the Agreement on Subsidies and Countervailing 
Measures referred to in section 101(d)(12) of the Uruguay Round 
Agreement Act (19 U.S.C. 3511(d)(12)).

[SEC. 105. DEMONSTRATIONS.

  [(a) Requirement.--The Secretary shall conduct demonstrations 
of critical technologies, preferably in self-contained 
locations, so that technical and non-technical parameters can 
be evaluated to best determine commercial applicability of the 
technology.
  [(b) Small-Scale Demonstrations.--Concurrently with 
activities conducted pursuant to section 104, the Secretary 
shall conduct small-scale demonstrations of hydrogen technology 
at self-contained sites.
  [(c) The Secretary shall require a commitment from non-
Federal sources of at least 50 percent of the cost of any 
demonstration conducted under this section.

[SEC. 106. TECHNOLOGY TRANSFER PROGRAM.

  [(a) Program.--The Secretary shall conduct a program designed 
to accelerate wider application of hydrogen production, 
storage, utilization, and other technologies available in near 
term as a result of aerospace experience as well as other 
research progress by transferring critical technologies to the 
private sector. The Secretary shall direct the program with the 
advice and assistance of the Hydrogen Technical Advisory Panel 
established under section 108. The objective in seeking this 
advice is to increase participation of private industry in the 
demonstration of near commercial applications through 
cooperative research and development arrangements, joint 
ventures or other appropriate arrangements involving the 
private sector.
  [(b) Information.--The Secretary, in carrying out the program 
authorized by subsection (a), shall--
          [(1) undertake an inventory and assessment of 
        hydrogen technologies and their commercial capability 
        to economically produce, store, or utilize hydrogen in 
        aerospace, transportation, electric utilities, 
        petrochemical, chemical, merchant hydrogen, and other 
        industrial sectors; and
          [(2) develop a National Aeronautics Space 
        Administration, Department of Energy, and industry 
        information exchange program to improve technology 
        transfer for--
                  [(A) application of aerospace experience by 
                industry;
                  [(B) application of research progress by 
                industry and aerospace;
                  [(C) application of commercial capability of 
                industry by aerospace; and
                  [(D) expression of industrial needs to 
                research organizations.
The information exchange program may consist of workshops, 
publications, conferences, and a data base for the use by the 
public and private sectors.
The Secretary shall also foster the exchange of generic, 
nonproprietary information and technology, developed pursuant 
to this 
chapter, among industry, academia, and the Federal Government, 
to help the United States economy attain the economic benefits 
of this information and technology.

[SEC. 107. COORDINATION AND CONSULTATION.

  [(a) Secretary's Responsibility.--The Secretary shall have 
overall management responsibility for carrying out programs 
under this Act. In carrying out such programs, the Secretary, 
consistent with such overall management responsibility--
          [(1) shall use the expertise of the National 
        Aeronautics and Space Administration and the Department 
        of Transportation; and
          [(2) may use the expertise of any other Federal 
        agency in accordance with subsection (b) in carrying 
        out any activities under this title, to the extent that 
        the Secretary determines that any such agency has 
        capabilities which would allow such agency to 
        contribute to the purpose of this Act.
  [(b) Assistance.--The Secretary may, in accordance with 
subsection (a), obtain the assistance of any department, 
agency, or instrumentality of the Executive branch of the 
Federal Government upon written request, on a reimbursable 
basis or otherwise and with the consent of such department, 
agency, or instrumentality. Each such request shall identify 
the assistance the Secretary deems necessary to carry out any 
duty under this Act.
  [(c) Consultation.--The Secretary shall consult with the 
Administrator of the National Aeronautics and Space 
Administration, the Administrator of the Environmental 
Protection Agency, the Secretary of Transportation, and the 
Hydrogen Technical Advisory Panel established under section 108 
in carrying out his authorities pursuant to this Act.

[SEC. 108. TECHNICAL PANEL.

  [(a) Establishment.--There is hereby established the Hydrogen 
Technical Advisory Panel (the ``technical panel''), to advise 
the Secretary on the programs under this Act.
  [(b) Membership.--The technical panel shall be appointed by 
the Secretary and shall be comprised of such representatives 
from domestic industry, universities, professional societies, 
Government laboratories, financial, environmental, and other 
organizations as the Secretary deems appropriate based on his 
assessment of the technical and other qualifications of such 
representatives. Appointments to the technical panel shall be 
made within 90 days after the enactment of this Act. The 
technical panel shall have a chairman, who shall be elected by 
the members from among their number.
  [(c) Cooperation.--The heads of the departments, agencies, 
and instrumentalities of the Executive branch of the Federal 
Government shall cooperate with the technical panel in carrying 
out the requirements of this section and shall furnish to the 
technical panel such information as the technical panel deems 
necessary to carry out this section.
  [(d) Review.--The technical panel shall review and make any 
necessary recommendations to the Secretary on the following 
items--
          [(1) the implementation and conduct of programs under 
        this Act; and
          [(2) the economic, technological, and environmental 
        consequences of the deployment of hydrogen production 
        and use systems.
  [(e) Support.--The Secretary shall provide such staff, funds 
and other support as may be necessary to enable the technical 
panel to carry out the functions described in this section.

[SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

  [There is hereby authorized to be appropriated to carry out 
the purposes of this Act (in addition to any amounts made 
available for such purposes under other Acts)--
          [(1) $3,000,000 for the fiscal year 1992;
          [(2) $7,000,000 for the fiscal year 1993;
          [(3) $10,000,000 for the fiscal year 1994;
          [(4) $14,500,000 for fiscal year 1996;
          [(5) $20,000,000 for fiscal year 1997;
          [(6) $25,000,000 for fiscal year 1998;
          [(7) $30,000,000 for fiscal year 1999;
          [(8) $35,000,000 for fiscal year 2000; and
          [(9) $40,000,000 for fiscal year 2001.]

SEC. 102. FINDINGS AND DEFINITIONS.

  (a) Findings.--Congress finds that--
          (1) the United States is currently dependent on 
        foreign sources for a majority of its petroleum supply;
          (2) the Nation's dependence on foreign petroleum is 
        expected to increase in the decades ahead;
          (3) it is in the national interest to reduce 
        dependence on imported petroleum by accelerating 
        Federal efforts to partner with the private sector in 
        developing hydrogen and fuel cell technologies;
          (4) it is in the national interest to support 
        industry's efforts to develop a light duty vehicle 
        fleet that is free or near free of pollutant emissions 
        and greenhouse gas emissions, and that helps to reduce 
        the Nation's dependence on petroleum in a manner that 
        maintains the freedom of consumers to purchase the 
        kinds of vehicles they wish to drive and the freedom to 
        refuel those vehicles safely and affordably;
          (5) the development of hydrogen fuel cell vehicles 
        and supporting infrastructure will benefit from and 
        accelerate the parallel advancement of fuel cells for 
        stationary power that will enhance the resiliency, 
        reliability, and environmental performance of the 
        Nation's electricity infrastructure;
          (6) fuel cell technology for consumer electronics and 
        portable power will benefit from, and advance the 
        development of, hydrogen fuel cell vehicles and 
        supporting infrastructure;
          (7) there is a need for deployment of bridging 
        technologies that can contribute to reducing petroleum 
        demand and decreasing air emissions, including--
                  (A) gasoline-electric and diesel-electric 
                hybrid drive systems;
                  (B) advanced combustion engines (including 
                clean diesel), electric battery, and power 
                electronics; and
                  (C) alternative fuels and other technologies;
          (8) low-cost hydrogen production, storage, and 
        delivery facilities are essential to the success of the 
        FreedomCAR program; and
          (9) vehicle technology development work should be 
        performed in a manner that is cognizant of consumer 
        acceptance and marketplace success.
  (b) Definitions.--In this Act:
          (1) The term ``Advisory Committee'' means the 
        Hydrogen Technical and Fuel Cell Advisory Committee 
        established under section 108 of this Act.
          (2) The term ``Department'' means the Department of 
        Energy.
          (3) 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) The term ``FreedomCAR'' is the acronym for a 
        Department initiative in automotive research and 
        development entitled ``Freedom Cooperative Automotive 
        Research''.
          (5) The term ``infrastructure'' means the equipment, 
        systems, or facilities used to produce, distribute, 
        deliver, or store hydrogen and other advanced clean 
        fuels.
          (6) The term ``light duty vehicle'' means a car or 
        truck classified by the Department of Transportation as 
        a Class I or IIA vehicle.
          (7) The term ``Secretary'' means the Secretary of 
        Energy.

SEC. 103. PROGRAM.

  (a) In General.--The Secretary shall conduct a research, 
development, demonstration, and commercial application program 
designed to accelerate the use of hydrogen and related 
technologies in stationary and transportation applications. The 
goals of the program shall include--
          (1) to enable a decision by automakers not later than 
        2015 to offer affordable and technically viable 
        hydrogen fuel cell vehicles in the mass consumer 
        market;
          (2) to enable production and delivery to consumers of 
        model year 2020 hydrogen fuel cell vehicles that will 
        have--
                  (A) a range of at least three hundred miles;
                  (B) safety and performance comparable to 
                vehicle technologies in the market; and
                  (C) when compared to light duty vehicles in 
                model year 2003--
                          (i) a fuel economy that is two and 
                        one half times the equivalent fuel 
                        economy of comparable light duty 
                        vehicles in model year 2003; and
                          (ii) zero or near zero emissions of 
                        pollutants; and
                  (D) vehicle fuel system crash integrity and 
                occupant protection; and
          (3) to enable by 2020 the safe and convenient 
        commercial production and delivery of hydrogen that 
        will have--
                  (A) the capacity to meet the demand for 
                stationary and mobile hydrogen fuel cells;
                  (B) safety and performance characteristics 
                comparable to other fuels; and
                  (C) improved overall efficiency and zero or 
                near zero emissions when compared to fuels used 
                in 2003.
  (b) Activities.--The program authorized under this section 
shall address--
          (1) production of hydrogen from diverse energy 
        sources, including--
                  (A) fossil fuels, in conjunction with carbon 
                capture and sequestration;
                  (B) hydrogen-carrier fuels (including ethanol 
                and methanol);
                  (C) renewable energy resources; and
                  (D) nuclear energy;
          (2) delivery of hydrogen or hydrogen-carrier fuels, 
        including--
                  (A) transmission by pipeline and other 
                distribution methods; and
                  (B) safe, convenient, and economic refueling 
                of vehicles either at central refueling 
                stations or through distributed on-site 
                generation;
          (3) 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;
          (4) development of safe, durable, affordable, and 
        efficient fuel cells, including research and 
        development on 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; and
          (5) development, in conjunction with the National 
        Institute of Standards and Technology, of necessary 
        codes and standards (including international codes and 
        standards) and safety practices for the production, 
        distribution, storage, and use of hydrogen, hydrogen-
        carrier fuels and related products.
  (c) Demonstration.--In carrying out the demonstration program 
under this section, the Secretary shall fund a limited number 
of projects and shall, to the extent practicable--
          (1) select only projects that--
                  (A) involve using hydrogen and related 
                products at facilities or installations that 
                would exist without the demonstration program, 
                such as existing office buildings, military 
                bases, vehicle fleet centers, transit bus 
                authorities, or parks; and
                  (B) depend on reliable power from hydrogen to 
                carry out essential activities; and
          (2) favor projects that--
                  (A) lead to the replication of hydrogen 
                technologies and draw such technologies into 
                the marketplace;
                  (B) integrate in a single project both mobile 
                and stationary applications of hydrogen fuel 
                cells;
                  (C) address the interdependency of demand for 
                hydrogen fuel cell applications and hydrogen 
                fuel infrastructure; or
                  (D) raise awareness of hydrogen technology 
                among the public.
  (d) Merit Review.--The Secretary shall carry out the program 
under this section using a competitive, merit-review process 
and consistent with the generally applicable Federal laws and 
regulations governing awards of financial assistance, 
contracts, or other agreements.
  (e) Cost Sharing.--(1) For projects carried out through 
grants, cooperative agreements, or contracts under this 
section, the Secretary shall require a commitment from non-
Federal sources of at least--
          (A) 20 percent of the cost of a research and 
        development project; and
          (B) 50 percent of the cost of a demonstration 
        project.
  (2) The Secretary may reduce the cost-sharing requirement 
under paragraph (1)--
          (A) if the Secretary determines that the project 
        involves research of a basic or fundamental nature;
          (B) if the Secretary determines that a demonstration 
        or commercial application project involves unusual 
        technological risks; or
          (C) for technical analyses or other activities that 
        the Secretary does not expect to result in a marketable 
        product.
  (3) The Secretary may consider the size of the non-Federal 
share in selecting projects.

SEC. 104. FREEDOM CAR.

  (a) In General.--In coordination with the program under 
section 103, the Secretary shall carry out a research, 
development, demonstration, and commercial application program 
on advanced vehicle technologies, to be known as the FreedomCAR 
program.
  (b) Activities.--The FreedomCAR program shall address--
          (1) engine and emission control systems;
          (2) energy storage, electric propulsion, and hybrid 
        systems;
          (3) automotive materials;
          (4) clean fuels in addition to hydrogen; and
          (5) other advanced vehicle technologies.
  (c) Demonstration.--Demonstrations involving hydrogen shall 
be conducted as part of the program under section 103.
  (d) Merit Review and Cost Sharing.--The Secretary shall carry 
out the FreedomCAR program in compliance with sections 103(d) 
and (e).

SEC. 105. PLAN.

  Not later than six months after the date of enactment of the 
George E. Brown, Jr. and Robert S. Walker Hydrogen Future Act 
of 2003, the Secretary shall transmit to the Congress a 
coordinated plan for the programs described in sections 103 and 
104 and any other programs of the Department that are directly 
related to fuel cells or hydrogen. The plan shall be consistent 
with the National Hydrogen Energy Roadmap published by the 
Department in October of 2002 and shall describe, at a 
minimum--
          (1) the agenda for the programs for the next five 
        years, including what research, development, 
        demonstration, and commercial application will be 
        conducted to carry out each activity enumerated in 
        sections 103(b) and 104(b);
          (2) the role national laboratories, institutions of 
        higher education, small businesses, and other private 
        sector firms are expected to play in the programs;
          (3) the technical milestones that will be used to 
        evaluate the programs for the next five years;
          (4) the most significant technical hurdles that stand 
        in the way of achieving the goals described in section 
        103(a), and how the programs will address those 
        hurdles; and
          (5) the policy assumptions that are driving the 
        research agenda, including any assumptions that would 
        affect the sources of hydrogen or the marketability of 
        hydrogen-related products.

SEC. 106. EDUCATION, OUTREACH, AND TECHNOLOGY TRANSFER.

  (a) In General.--The Secretary may carry out programs and 
activities for interagency, intergovernmental, and 
international education, information exchange, and cooperation 
related to hydrogen and hydrogen-related products.
  (b) Technology Transfer.--(1) The Secretary may conduct a 
program to transfer technology to the private sector under this 
Act. The purpose of the technology transfer program is to 
foster the exchange of generic, nonproprietary information and 
technology, developed under this Act, among industry, academia, 
and the Federal Government, to help the United States economy 
attain the economic benefits of this information and 
technology, among other purposes.
  (2) The Secretary shall direct the program authorized by this 
subsection with the advice and assistance of the Advisory 
Committee.

SEC. 107. INTERAGENCY TASK FORCE.

  (a) Establishment.--Not later than 120 days after the date of 
enactment of the George E. Brown, Jr. and Robert S. Walker 
Hydrogen Future Act of 2003, the President shall establish an 
interagency task force, chaired by the Director of the Office 
of Science and Technology Policy or his designee, with 
representatives from each of the following:
          (1) The Department of Energy.
          (2) The Department of Transportation.
          (3) The Department of State.
          (4) The Department of Defense.
          (5) The Department of Commerce (including the 
        National Institute of Standards and Technology).
          (6) The Environmental Protection Agency.
          (7) The National Aeronautics and Space 
        Administration.
          (8) Other Federal agencies as the Director determines 
        appropriate.
  (b) Duties.--
          (1) Implementation.--The interagency task force shall 
        work toward development of--
                  (A) a safe, economical, and environmentally 
                sound hydrogen infrastructure;
                  (B) uniform hydrogen codes, standards, and 
                safety protocols;
                  (C) fuel cells in government applications, 
                including portable, stationary, and 
                transportation applications; and
                  (D) 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 Act;
                  (D) promote the marketplace introduction of 
                infrastructure for hydrogen-powered fuel cell 
                vehicles; and
                  (E) conduct an education program to provide 
                hydrogen and fuel cell information to potential 
                end-users in coordination with the program 
                under section 106.
  (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 and the Department.

SEC. 108. ADVISORY COMMITTEE.

  (a) Establishment.--The Hydrogen Technical and Fuel Cell 
Advisory Committee shall be established to advise the Secretary 
on the programs and activities under this Act.
  (b) Membership.--
          (1) Members.--The Secretary shall appoint not fewer 
        than 12 nor more than 25 members. The Secretary shall 
        appoint members to represent domestic industry, 
        academia, professional societies, government agencies, 
        and financial, environmental, and other appropriate 
        organizations based on the Secretary'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 be not more than three 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 Chair of the Advisory Committee 
        shall be a member of the Advisory Committee, elected by 
        the members from among their number.
  (c) Review.--(1) The Advisory Committee shall review and make 
recommendations to the Secretary in a biennial report on--
          (A) the implementation of programs and activities 
        under this Act; and
          (B) the safety, economical, environmental, and other 
        consequences of technologies for the production, 
        distribution, delivery, storage, or use of hydrogen and 
        fuel cells.
  (2) The Secretary shall transmit the report under this 
subsection to the Congress along with 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.
  (d) Advisory Committee Support.--The Secretary shall provide 
resources necessary in the judgment of the Secretary for the 
Advisory Committee to carry out its responsibilities under this 
Act.

SEC. 109. EXTERNAL REVIEW.

  (a) Plan.--The Secretary shall enter into an arrangement with 
a competitively selected nongovernmental entity, such as the 
National Academy of Sciences, to review the plan prepared under 
section 105. The Secretary shall transmit the review to the 
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) Biennial Review.--The Secretary shall enter into an 
arrangement with a competitively selected nongovernmental 
entity, such as the National Academy of Sciences, under which 
the entity will review the program under sections 103 and 104 
every other year, beginning two years after the date of 
enactment of the George E. Brown, Jr. and Robert S. Walker 
Hydrogen Future Act of 2003. The entity shall review the 
research priorities, technical milestones, and plans for 
technology transfer and evaluate the progress toward achieving 
them. The Secretary shall transmit each review to the 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. 110. MISCELLANEOUS PROVISIONS.

  (a) Duplication.--The Secretary shall carry out the 
activities of this Act in a manner that avoids unnecessary 
duplication or displacement of, or competition with private 
sector activities.
  (b) Other Governments.--In carrying out this Act, the 
Secretary may enter into cost-sharing agreements with Federal, 
State, or local governments to demonstrate applications using 
hydrogen and fuel cells.
  (c) Representation.--The Department may represent the United 
States interests with respect to activities and programs under 
this Act, 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.
  (d) Regulatory Authority.--Nothing in this Act shall be 
construed to alter the regulatory authority of the Department.

SEC. 111. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
Act, in addition to any amounts made available for these 
purposes under other Acts--
          (1) $273,500,000 for fiscal year 2004;
          (2) $325,000,000 for fiscal year 2005;
          (3) $375,000,000 for fiscal year 2006;
          (4) $400,000,000 for fiscal year 2007; and
          (5) $425,000,000 for fiscal year 2008.
                              ----------                              


                      HYDROGEN FUTURE ACT OF 1996

[SECTION 1. SHORT TITLE.

  [This Act may be cited as the ``Hydrogen Future Act of 
1996''.

[SEC. 2. DEFINITIONS.

  [For purposes of titles II and III--
          [(1) the term ``Department'' means the Department of 
        Energy; and
          [(2) the term ``Secretary'' means the Secretary of 
        Energy.

                           [TITLE I--HYDROGEN

[SEC. 101. PURPOSES AND DEFINITIONS.

  [(a) Section 102(b)(1) of Public Law 101-566 (42 U.S.C. 
12401(b)(1)) is amended to read as follows:
  [``(1) to direct the Secretary of Energy to conduct a 
research, development, and demonstration program leading to the 
production, storage, transport, and use of hydrogen for 
industrial, residential, transportation, and utility 
applications;''.
  [(b) Section 102(c) of Public Law 101-566 (42 U.S.C. 
12401(c)) is amended--
          [(1) in subsection (1) by striking ``; and'' 
        inserting ``;'';
          [(2) by redesignating subsection (2) as subsection 
        (3); and
          [(3) by inserting before subsection (3) (as 
        redesignated) the following new subsection:
  [``(2) `Department' means the Department of Energy; and''.

[SEC. 102. REPORTS TO CONGRESS.

  [(a) Section 103 of Public Law 101-566 (42 U.S.C. 12402) is 
amended to read as follows:

[``Sec. 103. Report to Congress

  [``(a) Not later than January 1, 1999, the Secretary shall 
transmit to Congress a detailed report on the status and 
progress of the programs authorized under this Act.
  [``(b) A report under subsection (a) shall include, in 
addition to any views and recommendations of the Secretary--
          [``(1) an analysis of the effectiveness of the 
        programs 
        authorized under this chapter, to be prepared and 
        submitted to the Secretary by the Hydrogen Technical 
        Advisory Panel established under section 108 of this 
        Act; and
          [``(2) recommendations of the Hydrogen Technical 
        Advisory Panel for any improvements in the program that 
        are needed, including recommendations for additional 
        legislation.''.
  [(b) Section 108(d) of Public Law 101-566 (42 U.S.C. 
12407(d)) is amended--
          [(1) by adding ``and'' at the end of paragraph (1);
          [(2) by striking ``; and'' at the end of paragraph 
        (2) and inserting a period; and
          [(3) by striking paragraph (3).

[SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.

  [(a) Section 104 of Public Law 101-566 (42 U.S.C. 12403) is 
amended to read as follows:

[``Sec. 104. Hydrogen research and development

  [``(a) The Secretary shall conduct a hydrogen research and 
development program relating to production, storage, 
transportation, and use of hydrogen, with the goal of enabling 
the private sector to demonstrate the technical feasibility of 
using hydrogen for industrial, residential, transportation, and 
utility applications.
  [``(b) In conducting the program authorized by this section, 
the Secretary shall--
          [``(1) give particular attention to developing an 
        understanding and resolution of critical technical 
        issues preventing the introduction of hydrogen into the 
        marketplace;
          [``(2) initiate or accelerate existing research in 
        critical 
        technical issues that will contribute to the 
        development of more economic hydrogen production and 
        use, including, but not limited to, critical technical 
        issues with respect to production (giving priority to 
        those production techniques that use renewable energy 
        resources as their primary source of energy for 
        hydrogen production), liquefaction, transmission, 
        distribution, storage, and use (including use of 
        hydrogen in surface transportation); and
          [``(3) survey private sector hydrogen activities and 
        take steps to ensure that research and development 
        activities under this section do not displace or 
        compete with the privately funded hydrogen research and 
        development activities of United States industry.
  [``(c) The Secretary is authorized to evaluate any reasonable 
new or improved technology, including basic research on highly 
innovative energy technologies, that could lead or contribute 
to the development of economic hydrogen production, storage, 
and utilization.
  [``(d) The Secretary is authorized to evaluate any reasonable 
new or improved technology that could lead or contribute to, or 
demonstrate the use of, advanced renewable energy systems or 
hybrid systems for use in isolated communities that currently 
import diesel fuel as the primary fuel for electric power 
production.
  [``(e) The Secretary is authorized to arrange for tests and 
demonstrations and to disseminate to researchers and developers 
information, data, and other materials necessary to support the 
research and development activities authorized under this 
section and other efforts authorized under this chapter, 
consistent with section 106 of this Act.
  [``(f) The Secretary shall carry out the research and 
development activities authorized under this section only 
through the funding of research and development proposals 
submitted by interested persons according to such procedures as 
the Secretary may require and evaluate on a competitive basis 
using peer review. Such funding shall be in the form of a grant 
agreement, procurement contract, or cooperative agreement (as 
those terms are used in chapter 63 of title 31, United States 
Code).
  [``(g) The Secretary shall not consider a proposal submitted 
by a person from industry unless the proposal contains a 
certification that reasonable efforts to obtain non-Federal 
funding for the entire cost of the project have been made, and 
that such non-Federal funding could not be reasonably obtained. 
As appropriate, the Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the cost of the 
development portion of such a proposal.
  [``(h) The Secretary shall not carry out any activities under 
this section that unnecessarily duplicate activities carried 
out elsewhere by the Federal Government or industry.
  [``(i) The Secretary shall establish, after consultation with 
other Federal agencies, terms and conditions under which 
Federal funding will be provided under this chapter that are 
consistent with the Agreement on Subsidies and Countervailing 
Measures referred to in section 101(d)(12) of the Uruguay Round 
Agreement Act (19 U.S.C. 3511(d)(12)).''.
  [(b)(1) Section 2026(a) of the Energy Policy Act of 1992 (42 
U.S.C. 13436(a)) is amended by striking ``, in accordance with 
sections 3001 and 3002 of this Act,''.
  [(2) Effective October 1, 1998, section 2026 of the Energy 
Policy Act of 1992 (42 U.S.C. 13436) is repealed.

[SEC. 104. DEMONSTRATIONS.

  [Section 105 of Public Law 101-566 (42 U.S.C. 12404) is 
amended by adding at the end the following new subsection:
  [``(c) The Secretary shall require a commitment from non-
Federal sources of at least 50 percent of the cost of any 
demonstration conducted under this section.''.

[SEC. 105. TECHNOLOGY TRANSFER.

  [Section 106(b) of Public Law 101-566 (42 U.S.C. 12405(b)) is 
amended by adding to the end of the subsection the following:
[``The Secretary shall also foster the exchange of generic, 
nonproprietary information and technology, developed pursuant 
to this 
chapter, among industry, academia, and the Federal Government, 
to help the United States economy attain the economic benefits 
of this information and technology.''.

[SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

  [Section 109 of Public Law 101-566 (42 U.S.C. 12408) is 
amended--
          [(1) by striking ``to other Acts'' and inserting 
        ``under other Acts'';
          [(2) by striking ``and'' from the end of paragraph 
        (2);
          [(3) by striking the period from the end of paragraph 
        (3) and inserting ``;''; and
          [(4) by adding at the end of the section the 
        following:
          [``(4) $14,500,000 for fiscal year 1996;
          [``(5) $20,000,000 for fiscal year 1997;
          [``(6) $25,000,000 for fiscal year 1998;
          [``(7) $30,000,000 for fiscal year 1999;
          [``(8) $35,000,000 for fiscal year 2000; and
          [``(9) $40,000,000 for fiscal year 2001.''.

                         [TITLE II--FUEL CELLS

[SEC. 201. INTEGRATION OF FUEL CELLS WITH HYDROGEN 
                    PRODUCTION SYSTEMS.

  [(a) Not later than 180 days after the date of enactment of 
this section, and subject to the availability of appropriations 
made specifically for this section, the Secretary of Energy 
shall solicit proposals for projects to prove the feasibility 
of integrating fuel cells with--
          [(1) photovoltaic systems for hydrogen production; or
          [(2) systems for hydrogen production from solid waste 
        via gasification or steam reforming.
  [(b) Each proposal submitted in response to the solicitation 
under this section shall be evaluated on a competitive gas is 
using peer review. The Secretary is not required to make an 
award under this section in the absence of a meritorious 
proposals.
  [(c) The Secretary shall give preference, in making an award 
under this section, to proposals that--
          [(1) are submitted jointly from consortia including 
        academic institutions, industry, State or local 
        governments, and Federal laboratories; and
          [(2) reflect proven experience and capability with 
        technologies relevant to the systems described in 
        subsections (a)(1) and (a)(2).
  [(d) In the case of a proposal involving development or 
demonstration, the Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the cost of the 
development or demonstration portion of the proposal.
  [(e) The Secretary shall establish, after consultation with 
other Federal agencies, terms and conditions under which 
Federal funding will be provided under this title that are 
consistent with the Agreement on Subsidies and Countervailing 
Measures referred to in section 101(d)(12) of the Uruguay Round 
Agreement Act (19 U.S.C. 3511(d)(12)).

[SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated, for activities 
under this section, a total of $50,000,000 for fiscal years 
1997 and 1998, to remain available until September 30, 1999.

        [TITLE III--DOE SCIENTIFIC AND TECHNICAL PROGRAM QUALITY

[SEC. 301. TEMPORARY APPOINTMENTS FOR SCIENTIFIC AND 
                    TECHNICAL EXPERTS IN DEPARTMENT OF ENERGY 
                    RESEARCH AND DEVELOPMENT PROGRAMS.

  [(a) The Secretary, utilizing authority under other 
applicable law and the authority of this section, may appoint 
for a limited term, or on a temporary basis, scientists, 
engineers, and other technical and professional personnel on 
leave of 
absence from academic, industrial, or research institutions to 
work for the Department.
  [(b) The Department may pay, to the extent authorized for 
certain other Federal employees by section 5723 of title 5, 
United States Code, travel expenses for any individual 
appointed for a limited term or on a temporary basis and 
transportation expenses of his or her immediate family and his 
or her household goods and personal effects from that 
individual's residence at the time of selection or assignment 
to his or her duty station. The Department may pay such travel 
expenses to the same extent for such an individual's return to 
the former place of residence from his or her duty station, 
upon separation from the Federal service following an agreed 
period of service. The Department may also pay a per diem 
allowance at a rate not to exceed the daily amounts prescribed 
under section 5702 of title 5 to such an individual, in lieu of 
transportation expenses of the immediate family and household 
goods and personal effects, for the period of his or her 
employment with the Department. Notwithstanding any other 
provision of law, the employer's contribution to any 
retirement, life insurance, or health benefit plan for an 
individual appointed for a term of one year or less, which 
could be extended for no more than one additional year, may be 
made or reimbursed from appropriations available to the 
Department.]
                              ----------                              


STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980

           *       *       *       *       *       *       *


SEC. 12. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

  (a)  * * *
  (b) Enumerated Authority.--(1)  * * *

           *       *       *       *       *       *       *

  (5) A Government-owned, contractor-operated laboratory that 
enters into a cooperative research and development agreement 
pursuant to subsection (a)(1) may use or obligate royalties or 
other income accruing to the laboratory under such agreement 
with respect to any invention only--
          (A)  * * *

           *       *       *       *       *       *       *

          [(C) for scientific research and development 
        consistent with the research and development missions 
        and objectives of the laboratory.]
          (C) for scientific research and development and for 
        educational assistance consistent with the missions and 
        objectives of the Department of Energy and the 
        laboratory.

           *       *       *       *       *       *       *


SEC. 14. DISTRIBUTION OF ROYALTIES RECEIVED BY FEDERAL AGENCIES.

  (a) In General.--(1) Except as provided in paragraphs (2) and 
(4), any royalties or other payments received by a Federal 
agency from the licensing and assignment of inventions under 
agreements entered into by Federal laboratories under section 
12, and from the licensing of inventions of Federal 
laboratories under section 207 of title 35, United States Code, 
or under any other provision of law, shall be retained by the 
laboratory which produced the invention and shall be disposed 
of as follows:
          (A)  * * *
          (B) The balance of the royalties or other payments 
        shall be transferred by the agency to its laboratories, 
        with the majority share of the royalties or other 
        payments from any invention going to the laboratory 
        where the invention occurred. The royalties or other 
        payments so transferred to any laboratory may be used 
        or obligated by that laboratory during the fiscal year 
        in which they are received or during the 2 succeeding 
        fiscal years--
                  (i)  * * *

           *       *       *       *       *       *       *

                  [(v) for scientific research and development 
                consistent with the research and development 
                missions and objectives of the laboratory.]
                  (v) for scientific research and development 
                and for educational assistance and other 
                purposes consistent with the missions and 
                objectives of the Department of Energy and the 
                laboratory.

           *       *       *       *       *       *       *

                              ----------                              


                 DEPARTMENT OF ENERGY ORGANIZATION ACT

                            TABLE OF CONTENTS

Sec. 2. Definitions.
     * * * * * * *

                TITLE II--ESTABLISHMENT OF THE DEPARTMENT

Sec. 201. Establishment.
     * * * * * * *
[Section 209.] Sec. 209. Office of Science.
     * * * * * * *
[213.] Sec. 213. Establishment of policy for National Nuclear Security 
          Administration.
[214.] Sec. 214. Establishment of security, counterintelligence, and 
          intelligence policies.
[215.] Sec. 215. Office of Counterintelligence.
[216.] Sec. 216. Office of Intelligence.
     * * * * * * *

TITLE II--ESTABLISHMENT OF THE DEPARTMENT

           *       *       *       *       *       *       *


                         ASSISTANT SECRETARIES

  Sec. 203. (a) [There shall be in the Department six Assistant 
Secretaries] Except as provided in section 209, there shall be 
in the Department seven Assistant Secretaries, each of whom 
shall be appointed by the President, by and with the advice and 
consent of the Senate; who shall be compensated at the rate 
provided for at level IV of the Executive Schedule under 
section 5315 of title 5, United States Code; and who shall 
perform, in accordance with applicable law, such of the 
functions transferred or delegated to, or vested in, the 
Secretary as he shall prescribe in accordance with the 
provisions of this Act. The functions which the Secretary shall 
assign to the Assistant Secretaries include, but are not 
limited to, the following:
          (1)  * * *

           *       *       *       *       *       *       *


                           [OFFICE OF SCIENCE

  [Sec. 209. (a) There shall be within the Department an Office 
of Science to be headed by a Director, who shall be appointed 
by the President, by and with the advice and consent of the 
Senate, and who shall be compensated at the rate provided for 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code.
  [(b) It shall be the duty and responsibility of the 
Director--
          [(1) to advise the Secretary with respect to the 
        physical research program transferred to the Department 
        from the Energy Research and Development 
        Administration;
          [(2) to monitor the Department's energy research and 
        development programs in order to advise the Secretary 
        with respect to any undesirable duplication or gaps in 
        such programs;
          [(3) to advise the Secretary with respect to the 
        well-being and management of the multipurpose 
        laboratories under the jurisdiction of the Department, 
        excluding laboratories that constitute part of the 
        nuclear weapons complex;
          [(4) to advise the Secretary with respect to 
        education and training activities required for 
        effective short- and long-term basic and applied 
        research activities of the Department;
          [(5) to advise the Secretary with respect to grants 
        and other forms of financial assistance required for 
        effective short- and long-term basic and applied 
        research activities of the Department; and
          [(6) to carry out such additional duties assigned to 
        the Office by the Secretary relating to basic and 
        applied research, including but not limited to 
        supervision or support of research activities carried 
        out by any of the Assistant Secretaries designated by 
        section 203 of this Act, as the Secretary considers 
        advantageous.]

                           OFFICE OF SCIENCE

  Sec. 209. (a) There shall be within the Department an Office 
of Science, to be headed by an Assistant Secretary of Science, 
who shall be appointed by the President, by and with the advice 
and consent of the Senate, and who shall be compensated at the 
rate provided for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code.
  (b) The Assistant Secretary of Science shall be in addition 
to the Assistant Secretaries provided for under section 203 of 
this Act.
  (c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as 
well as other functions vested in the Secretary which he may 
assign to the Assistant Secretary.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 5315 OF TITLE 5, UNITED STATES CODE

Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.

           *       *       *       *       *       *       *

          [Assistant Secretaries of Energy (6)] Assistant 
        Secretaries of Energy (8).

           *       *       *       *       *       *       *

          [Director, Office of Science, Department of Energy.]

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 189 OF THE ATOMIC ENERGY ACT OF 1954

  Sec. 189. Hearings and Judicial Review.--
  a.  * * *
      b. The following Commission actions shall be subject to 
judicial review in the manner prescribed in chapter 158 of 
title 28, United States Code, and chapter 7 of title 5, United 
States Code:
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Any final order or regulation of the Commission 
        establishing standards to govern nonmilitary energy 
        laboratories owned or operated by the Department of 
        Energy that is issued to implement the Commission's 
        responsibilities under section 202 of the Energy 
        Research, Development, Demonstration, and Commercial 
        Application Act of 2003, and any final determination of 
        the Commission relating to whether a nonmilitary energy 
        laboratory owned or operated by the Department is in 
        compliance with such standards and all applicable 
        Commission regulations or orders.

                    XVIII. Committee Recommendations

    On April 2, 2003, a quorum being present, the Committee 
favorably reported H.R. 238, the Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003, as 
amended, by a voice vote, and recommended its enactment.

       XIX. Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c) of House rule XIII, the outcome-
related goals of H.R. 238, as enumerated in Section 3, are to 
be used to guide the conduct of a balanced energy research, 
development, demonstration, and commercial application 
portfolio of programs in order to meet the purposes of H.R. 238 
under Section 2. Additional goals can be found throughout H.R. 
238 including: Section 163 relating to the Plan for Fusion 
Energy Sciences Program; Section 170B relating to Genomes to 
Life; Section 170C relating to the Department of Energy Science 
and Technology Scholarship Program; Section 182 relating to the 
Matsunaga Act Amendments; Section 198 relating to Interagency 
Cooperation; and Section 301 relating to the Establishment of a 
Pilot Program in the Clean School Bus Title.

                XX. Exchange of Committee Correspondence

                          House of Representatives,
                                      Committee on Science,
                                     Washington, DC, April 7, 2003.
Hon. William J. Tauzin,
Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: This letter is intended to put in 
writing the understandings about jurisdiction that informed our 
negotiations over the structure and content of H.R. 6, the 
Energy Policy Act of 2003.
    It was agreed that the structure of H.R. 6 has no bearing 
on future decisions on jurisdiction and that neither our 
Committee nor yours waived any jurisdictional claim as part of 
the drafting of H.R. 6. No agreements concerning either the 
language of H.R. 6 or the placement of any language should be 
construed as a waiver of either Committee's jurisdictional 
claims under Rule X or the precedents of the House.
    Moreover, our two Committees agreed that both Committees 
have jurisdiction over the Division of H.R. 6 pertaining to the 
Hydrogen Initiative and FreedomCAR.
    I look forward to continuing to work with you as H.R. 6 
moves through the legislative process.
            Sincerely,
                                      Sherwood L. Boehlert,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                     Washington, DC, April 9, 2003.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science, House of Representatives, Rayburn House 
        Office Building, Washington, DC.
    Dear Chairman Boehlert: Thank you for your letter regarding 
the discussions our Committees held to draft H.R. 6.
    I agree that no agreements concerning either the language 
of H.R. 6 or the placement of any language should be construed 
as a waiver of either Committee's jurisdictional claims under 
Rule X or the precedents of the House.
    Moreover, our two Committees agreed that both Committees 
have jurisdiction over the Division of H.R. 6 pertaining to the 
Hydrogen Initiative and FreedomCAR.
            Sincerely,
                                     W.J. ``Billy'' Tauzin,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                      Committee on Science,
                                     Washington, DC, April 9, 2003.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Chairman Tauzin: On April 8, 2003, you introduced H.R. 
1644, a bill to enhance energy conservation and research and 
development, to provide for security and diversity in the 
energy supply for the American people. The bill was referred to 
the Committee on Energy and Commerce, and in addition to the 
Committee on Science (among others). The bill contains 
provisions that fall within the jurisdiction of the Committee 
on Science.
    In deference to your desire to bring this legislation 
before the House in an expeditious manner as part of H.R. 6, 
the ``the Energy Policy Act of 2003,'' I will not exercise this 
Committee's right to consider H.R. 1644. Despite waiving its 
consideration of H.R. 1644, the Science Committee does not 
waive its jurisdiction over H.R. 1644. Additionally, the 
Science Committee expressly reserves its authority to seek 
conferees on any provisions that are within its jurisdiction 
during any House-Senate conference that may be convened on this 
legislation or like provisions in H.R. 6 or similar legislation 
which falls within the Science Committee's jurisdiction. I ask 
for your commitment to support any request by the Science 
Committee for conferees on H.R. 1644 as well as any similar or 
related legislation including, but not limited to H.R. 6.
    I request that you include this letter as part of the 
Record during consideration of the legislation on the House 
floor.
    Thank you for your consideration and attention regarding 
these matters.
            Sincerely,
                                      Sherwood L. Boehlert,
                                                          Chairman.

                          XXI. ADDITIONAL VIEW

    The Statement of Administration Policy (SAP) of May 8, 2003 
for the Senate version of this legislation contains the 
following two unfortunate sentences that cannot be ignored. 
``Several provisions including sections 931, 987, and 1005, 
provide certain preferences based on the recipient's race. 
These provisions should be revised to apply only to the extent 
consistent with affording equal protection of the laws, as 
required by the Due Process Clause of the Fifth Amendment to 
the Constitution.'' The White House could not be more 
inaccurate.
    The provisions in question are mainstream. One refers to 
the Section 8A loan program of the Small Business 
Administration. The other two help reverse under-representation 
of some groups in our society in the fields of science and 
technology. I myself authored one similar amendment during our 
Committee's consideration of HR 4 that was so non-controversial 
that it was accepted by voice vote. Similar language was 
approved by the House and the Senate last year. The Congress 
has consistently gone on record preserving this type of 
outreach--in landmark legislation such as TEA-21, and more 
recently in the Nanotechnology Research and Development Act of 
2003. Such provisions ensure that under-represented groups and 
institutions are included in federal programs, instead of 
excluded, which has too often been the case.
    Whoever wrote the SAP words for the Administration either 
does not understand the last 50 years of judicial 
interpretation of equal protection or else wants to turn back 
the clock. I, therefore, feel compelled to take this 
opportunity now to answer this vaguely articulated 
constitutional challenge.
    These provisions state the obvious; there are populations 
and classifications of academic institutions that have 
historically been under-represented in the field of energy-
related scientific research. We know that our academic and 
research institutions were not insulated from the past record 
of racial and gender discrimination that was once pervasive and 
widely accepted throughout this country. We can all be 
gratified by the fact that much progress has been achieved in 
the area of equal opportunity. However, we must also 
acknowledge that past discrimination has resulted in a clear 
and undeniable under-representation of minority students 
(including women) both within the science-related professions 
and within the academic institutions and facilities where our 
cutting edge research occurs, and where students receive 
professional training in the Science.
    If we do not correct the mistakes of the past, they will 
continue. Therefore, I commend my colleagues for looking beyond 
simplistic interpretations of equal protection and equal 
opportunity and casting their votes in a forward-thinking 
manner.

                                                Sheila Jackson-Lee.


  XXII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 238, ENERGY 
RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION ACT OF 
                                  2003

                              ----------                              


                        WEDNESDAY, APRIL 2, 2003

                  House of Representatives,
                                      Committee on Science,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 3:00 p.m., in Room 
2318 of the Rayburn House Office Building, Hon. Sherwood L. 
Boehlert [Chairman of the Committee] presiding.


    Chairman Boehlert. The Committee on Science is meeting 
today to consider the following measure, H.R. 238, Energy 
Research, Development, Demonstration, and Commercial 
Application Act of 2003. I ask unanimous consent for the 
authority to recess the Committee at any point, and without 
objection, it is so ordered. I ask unanimous consent that the 
Subcommittee on Energy be discharged from further consideration 
of H.R. 238 and ask for its immediate consideration at full 
committee, and without objection, it is so ordered.
    We will now consider the bill H.R. 238. It is a pleasure to 
welcome everyone here for today's markup on this vitally 
important bill.
    As was the case with the Energy Bill in the last Congress, 
the Science Committee has put together a package that is 
bipartisan, comprehensive, forward thinking, and balanced. What 
else would you expect from this great Committee? It should be a 
model for the larger energy package into which it will be 
incorporated this weekend. This--that package will be brought 
to the Floor, hopefully, next week.
    Our starting point today is H.R. 238, which I introduced 
along with Mr. Hall, during the first week of this Congress. 
The language in the bill is the text of the tentative 
bipartisan agreement that was reached last year between the 
House and Senate conferees on the research and development 
title of H.R. 4.
    A lot of work went into that agreement, and it was fair and 
balanced, promoting R&D; in energy efficiency, and renewables, 
and nuclear and fossil fuels, as well as basic research in the 
Office of Science. It included major initiatives, such as the 
new ultra-deep drilling program, a favorite of our 
Distinguished Ranking Member, and landmark compromise on the 
Clean Coal Program to ensure that it actually leads to true 
emissions reduction. And in that regard, I wish to especially 
note the cooperative attitude of Mr. Costello as we worked 
together to fashion something that will do this committee 
proud. So I am pleased that last year's agreement is the 
foundation of what we'll be reporting out today.
    But there have been important developments since the energy 
conference folded last November. So we have spent the last few 
weeks arduously--and this is a staff operation, and the staff I 
can't compliment highly enough, both the majority and the 
minority staff. They worked while oftentimes--we worked, too, 
but were doing other things. We have spent the last few weeks 
negotiating changes to H.R. 238 and those changes are 
encompassed in the en bloc amendment that I will bringing--be 
bringing forward with Mr. Hall today. Our partnership 
continues.
    There is a lot in the en bloc amendment, as we will hear 
later. It contains proposals that were put forward by numerous 
Members on both sides of the aisle, but let me focus now on the 
two primary elements of the amendment.
    First, it authorizes U.S. participation in the ITER, the 
international fusion experiment, with strict limitations to 
ensure that the U.S. financial exposure will be limited and to 
allow Congress to revisit the issue again before we move 
forward in earnest. This is especially vital, because the U.S. 
fusion community does not want to participate in ITER if doing 
so will reduce funding for domestic fusion programs. And that 
principle is embodied in this bill and will also be included in 
the report that accompanies the bill.
    Personally, I doubt that we will be able to fund ITER 
without cutting into our existing fusion programs, so we are 
going to have to examine our choices carefully when we have 
complete information on what ITER participation would mean. 
This bill will ensure that we get that information in a timely 
manner that enables us to make thoughtful decisions.
    I want to thank Ms. Lofgren and Mr. Nethercutt, two 
tireless advocates for fusion, for working with us on this 
language.
    The en bloc amendment also authorizes the President's 
Hydrogen Initiative and the related FreedomCAR program at the 
funding levels requested by the President. Our language fleshes 
out the areas of R&D; the Initiative must cover; requires more 
extensive planning; and will ensure that demonstration projects 
actually help move us toward a transition to a hydrogen 
economy. This language will be one of the things that this bill 
is remembered for.
    The en bloc also increases funding for the Office of 
Science, something Mrs. Biggert has strongly advocated, and a 
step that is essential if we are to adequately fund the 
physical sciences.
    Members will offer a number of other amendments today, most 
of which have been negotiated between the majority and the 
minority; a few of them I may feel constrained to oppose, 
depending on how they are explained. But I know that we will 
end on a note of unity, as this committee always has.
    We will bring to the Floor a bill that looks across the 
forms of energy to ensure that the U.S. has a secure energy 
future in the decades to come. We are determined to contribute 
to the development of a responsible energy policy for the 
Nation, something that has been sorely lacking for far too 
long.
    [The prepared statement of Mr. Boehlert follows:]
            Prepared Statement of Chairman Sherwood Boehlert
    It's a pleasure to welcome everyone here for today's markup on this 
vitally important bill.
    As was the case with the Energy Bill in the last Congress, the 
Science Committee has put together a package that is bipartisan, 
comprehensive, forward-thinking and balanced. It should be a model for 
the larger energy package into which it will be incorporated this 
weekend. That package will be brought to the floor next week.
    Our starting point today is H.R. 238, which I introduced, along 
with Mr. Hall, during the first week of this Congress. The language in 
the bill is the text of the tentative, bipartisan agreement that was 
reached last year between the House and Senate conferees on the 
research and development title of H.R. 4.
    A lot of work went into that agreement, and it was fair and 
balanced, promoting R&D; in energy efficiency and renewables, and 
nuclear and fossil fuels, as well as basic research in the Office of 
Science. It included major initiatives, such as the new ultra-deep 
drilling program and landmark compromise on the Clean Coal Program to 
ensure that it actually leads to true emissions reductions. So I'm 
pleased that last year's agreement is the foundation of what we'll be 
reporting out today.
    But there have been important developments since the energy 
conference folded last November. So we've spent the last few weeks 
arduously negotiating changes to H.R. 238 to update the bill, and those 
changes are encompassed in the en bloc amendment that I will be 
bringing forward with Mr. Hall today. Our partnership continues.
    There's a lot in the en bloc amendment, as we'll hear later. It 
contains proposals that were put forward by numerous Members on both 
sides of the aisle. But let me focus now on the two primary elements of 
the amendment.
    First, it authorizes U.S. participation in the ITER, the 
international fusion experiment, with strict limitations to ensure that 
the U.S. financial exposure will be limited and to allow Congress to 
revisit the issue again before we move forward in earnest. This is 
especially vital because the U.S. fusion community does not want to 
participate in ITER if doing so will reduce funding for domestic fusion 
programs--and that principle is embodied in this bill, and will also be 
included in the report that accompanies the bill.
    Personally, I doubt that we will be able to fund ITER without 
cutting into our existing fusion programs, so we're going to have to 
examine our choices carefully when we have complete information on what 
ITER participation would mean. This bill will ensure that we get that 
information in a timely manner that enables us to make thoughtful 
decisions.
    I want to thank Ms. Lofgren and Mr. Nethercutt, two tireless 
advocates for fusion, for working with us on this language.
    The en bloc amendment also authorizes the President's Hydrogen 
Initiative and the related FreedomCAR program at the funding levels 
requested by the President. Our language fleshes out the areas of R&D; 
the Initiative must cover; requires more extensive planning; and will 
ensure that demonstration projects actually help move us toward a 
transition to a hydrogen economy. This language will be one of the 
things this bill is remembered for.
    The en bloc also increases funding for the Office of Science, 
something Mrs. Biggert has strongly advocated, and a step that is 
essential if we are to adequately fund the physical sciences.
    Members will offer a number of other amendments today--most of 
which have been negotiated between the majority and minority; a few 
others I will oppose. But I know that we will end on a note of unity, 
as this committee always has.
    We will bring to the floor a bill that looks across all the forms 
of energy to ensure that the U.S. has a secure energy future in the 
decades to come.
    Mr. Hall.

    Chairman Boehlert. Now with Mr. Hall absent, is there 
someone who wishes to claim--we will come back to him. All 
right. We will come back to him. No. All right.
    Now without objection, all Members may place opening 
statements in the record at this point. I ask unanimous consent 
that the bill will--well, wait a minute. The bill is--where are 
we? Ask unanimous consent that the bill be considered as read 
and open to amendment at any point.
    [The prepared statement of Mr. Costello follows:]
         Prepared Statement of Representative Jerry F. Costello
    Mr. Chairman, I want to thank the Chairman for working with me on 
the clean coal provisions included in the bill. A reliable and 
affordable energy supply is crucial to America's economic vitality, 
security, and quality of life. Congress can help achieve this goal by 
passing balanced, comprehensive energy legislation that promotes energy 
conservation and efficiency; increases the use of all domestic energy 
resources, including coal; improves energy infrastructure; and promotes 
the development of advanced energy technologies. New and improved 
technologies hold the promise of far greater emissions reductions and 
increased efficiency.
    The clean coal agreement included in the manager's en bloc 
amendment will assist in burning coal more efficiently and cleanly. The 
clean coal technology initiative encourages development of new 
technologies for cleaner, higher efficiency coal combustion in new and 
established plants with the hope of achieving a healthier environment 
while maintaining jobs.

    [The prepared statement of Ms. Lofgren follows:]
            Prepared Statement of Representative Zoe Lofgren
    I am pleased that the Committee's en bloc amendment contains the 
spirit and most of the letter of the FUTURE Act, which was introduced 
by myself, Congressman Nethercutt, and over 30 bipartisan Members of 
the House.
    I introduced this legislation because I believe it is essential for 
this nation and the international community to pursue fusion as 
aggressively. Fusion research has shown dramatic progress over the past 
decade, and we are now ready to take the next major step toward a 
demonstration. The bill recognizes this and as I will explain, 
positions the U.S. to take advantage of this fact.
    Fusion powers the sun and if our scientists can engineers can 
harness it here on earth, we will have an environmentally friendly, 
safe and virtually unlimited source of energy which no nation will 
monopolize.
    Yet, practical fusion energy is not guaranteed: it is probably the 
most difficult scientific and technological challenge ever undertaken. 
So obviously, there are some uncertainties. However, when you 
contemplate just how few and uncertain our future energy options are, 
aggressively pursuing fusion is utterly compelling.
    Further, when you think about what we are paying today in terms of 
human lives and dollars for an energy policy that is so heavily reliant 
on imported oil, it seems self-evident that we must pursue this 
aggressively almost no matter what the cost or risk.
    Let me cite just one statistic: we spend more money importing oil 
into this country every day than we do every year on fusion research, 
well over $250 million per day!
    So, what will the Committee's bill accomplish? First, the bill 
authorizes the Department of Energy to fully participate in the 
International Thermonuclear Experimental Reactor (ITER) project. ITER 
is a next step fusion project that will effectively cap off the science 
and much of the technology necessary to move ahead and build a 
demonstration of a first generation fusion energy project. Negotiations 
to determine the financing and site selection of ITER are now moving 
forward between Europe, Japan, Russia, Canada, China and now South 
Korea. Earlier this year, the President announced that the U.S. should 
join these negotiations.
    While the bill authorizes the U.S. to join the project should these 
negotiations be successful, it contains provisions and protections to 
help ensure that U.S. negotiators will strike a ``good deal'' for the 
U.S. A ``good deal'' for the U.S. must position the U.S. to provide 
maximum benefit for our domestic fusion energy research program.
    To this end, the bill authorizes increases in our fusion energy 
science budget. Over the next four years, the bill provides about 40 
percent increase in funding for the Department of Energy's fusion 
science budget. The Fiscal Year (FY) 2003 budget was about $250 
million. FY 2004 starts at $276 million and ends at $350 million in FY 
2007. Specifically, the increases break down the following way: FY 
2004, $276 million; FY 2005, $300 million; FY 2006, $340 million and in 
FY 2007, $350 million.
    The Committee also authorized is separate funding for ITER. ITER is 
funded in FY 2004 at $12 million, FY 2005 at $20 million, FY 2006 at 
$50 million and FY 2007 at $75 million dollars. In addition, the bill 
requires the Department of Energy to deliver a plan to Congress to 
ensure that the U.S. research and industrial communities are 
competitive with those of other nations when it comes to providing 
fusion energy for our own needs and those of other nations.
    The bill directs the Department of Energy to plan how to address 
issues of fusion materials and fusion technologies that are key to 
practical fusion energy.
    Finally, I want to emphasize that by authorizing separate funding 
for the ITER project, the bill sends the unmistakable signal that ITER 
funding is not to come from the already underfunded domestic research 
effort.
    I want to thank Chairman Boehlert, Congressman Hall, Congressman 
Nethercutt and several other Members of the Committee who are 
cosponsors of Hr 1282 and the staffs on both sides of the aisle for 
their support and hard work on this issue.

    [H.R. 238 follows:]

108th CONGRESS
    1st Session

                                H. R. 238

To provide for Federal energy research, development, demonstration, and 
    commercial application activities, and for other purposes.
                               __________
                    IN THE HOUSE OF REPRESENTATIVES
                            January 8, 2003
Mr. Boehlert (for himself and Mr. Hall) introduced the following bill; 
    which was referred to the Committee on Science, and in addition to 
    the Committee on Resources, for a period to be subsequently 
    determined by the Speaker, in each case for consideration of such 
    provisions as fall within the jurisdiction of the committee 
    concerned
                               __________

                                 A BILL

To provide for Federal energy research, development, demonstration, and 
    commercial application activities, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003''.

                   TITLE I--RESEARCH AND DEVELOPMENT

SEC. 101. PURPOSES.

    The purposes of this title are to------
            (1) contribute to a national energy strategy through an 
        energy research and development program that supports basic 
        energy research and provides mechanisms to develop, 
        demonstrate, and promote the commercial application of new 
        energy technologies in partnership with industry;
            (2) protect and strengthen the Nation's economy, standard 
        of living, and national security by reducing dependence on 
        imported energy;
            (3) meet future needs for energy services at the lowest 
        total cost to the Nation, giving balanced and comprehensive 
        consideration to technologies that improve the efficiency of 
        energy end uses and that enhance energy supply;
            (4) reduce the environmental impacts of energy production, 
        distribution, transportation, and use;
            (5) help increase domestic production of energy, increase 
        the availability of hydrocarbon reserves, and lower energy 
        prices; and
            (6) stimulate economic growth and enhance the ability of 
        United States companies to compete in future markets for 
        advanced energy technologies.

SEC. 102. GOALS.

    (a) In General.--In order to achieve the purposes of this title, 
the Secretary shall conduct a balanced set of programs of energy 
research, development, demonstration, and commercial application, 
guided by the following goals:
            (1) Energy efficiency.------
                    (A) Buildings.--Develop, in partnership with 
                industry, technologies, designs, and production methods 
                that will enable an average 25 percent increase by 2010 
                in the energy efficiency of all new buildings, as 
                compared to a new building in 1996.
                    (B) Industry.--Develop, in partnership with 
                industry, technologies, designs, and production methods 
                that will enable the energy intensity of the major 
                energy-consuming industries to improve by at least 25 
                percent by 2010 as compared to 1991.
                    (C) Vehicles.--Develop, in partnership with 
                industry, technologies that will enable------
                            (i) by 2010, mid-sized passenger 
                        automobiles with a fuel economy of 80 miles per 
                        gallon;
                            (ii) by 2010, light trucks (classes 1 and 
                        2a) with a fuel economy of 60 miles per gallon;
                            (iii) by 2010, medium trucks and buses 
                        (classes 2b through 6 and class 8 transit 
                        buses) with a fuel economy, in ton-miles per 
                        gallon for trucks and passenger miles per 
                        gallon for buses, that is 3 times that of year 
                        2000 equivalent vehicles;
                            (iv) by 2010, heavy trucks (classes 7 and 
                        8) with a fuel economy, in ton-miles per 
                        gallon, that is 2 times that of year 2000 
                        equivalent vehicles; and
                            (v) by 2015, mid-sized fuel cell powered 
                        passenger vehicles with a gasoline equivalent 
                        fuel economy of 110 miles per gallon.
            (2) Distributed energy and electric energy systems.------
                    (A) Distributed generation.--Develop, in 
                partnership with industry, technologies based on 
                natural gas that achieve electricity generating 
                efficiencies greater than 40 percent by 2015 for on-
                site, or distributed, generation technologies.
                    (B) Electric energy systems and storage.--Develop, 
                in partnership with industry------
                            (i) technologies for generators and 
                        transmission, distribution, and storage systems 
                        that combine high capacity with high efficiency 
                        (particularly for electric transmission 
                        facilities in rural and remote areas);
                            (ii) new transmission and distribution 
                        technologies, including flexible alternating 
                        current transmission systems, composite 
                        conductor materials, advanced protection 
                        devices, and controllers;
                            (iii) technologies for interconnection of 
                        distributed energy resources with electric 
                        power systems;
                            (iv) high-temperature superconducting 
                        materials for power delivery equipment such as 
                        transmission and distribution cables, 
                        transformers, and generators; and
                            (v) real-time transmission and distribution 
                        system control technologies that provide for 
                        continual exchange of information between 
                        generation, transmission, distribution, and 
                        end-user facilities.
            (3) Renewable energy.------
                    (A) Wind power.--Develop, in partnership with 
                industry, technologies and designs that will------
                            (i) reduce the cost of wind power by 40 
                        percent by 2007 as compared to 2000; and
                            (ii) expand utilization of class 3 and 4 
                        winds.
                    (B) Photovoltaics.--Develop, in partnership with 
                industry, total photovoltaic systems with installed 
                costs of $4000 per peak kilowatt by 2005 and $2000 per 
                peak kilowatt by 2015.
                    (C) Solar thermal electric systems.--Develop, in 
                partnership with industry, solar power technologies 
                (including baseload solar power) that combine high-
                efficiency and high-temperature receivers with advanced 
                thermal storage and power cycles to accommodate peak 
                loads and reduce lifecycle costs.
                    (D) Geothermal energy.--Develop, in partnership 
                with industry, technologies and processes based on 
                advanced hydrothermal systems and advanced heat and 
                power systems, including geothermal or ground source 
                heat pump technology, with a specific focus on------
                            (i) improving exploration and 
                        characterization technology to increase the 
                        probability of drilling successful wells from 
                        20 percent to 40 percent by 2006;
                            (ii) reducing the cost of drilling by 2008 
                        to an average cost of $150 per foot; and
                            (iii) developing enhanced geothermal 
                        systems technology with the potential to double 
                        the usable geothermal resource base, as 
                        compared to the date of enactment of this Act.
                    (E) Hydrogen.--Carry out the Spark M. Matsunaga 
                Hydrogen Research, Development, and Demonstration Act 
                of 1990 and title II of the Hydrogen Future Act of 
                1996, as amended by this Act.
                    (F) Biomass-based power systems.--Develop, in 
                partnership with industry, integrated power generating 
                systems, advanced conversion, and feedstock 
                technologies capable of producing electric power that 
                is cost-competitive with fossil-fuel generated 
                electricity by 2010, through co-production of fuels, 
                chemicals, and other products under subparagraph (G).
                    (G) Biofuels.--Develop, in partnership with 
                industry, new and emerging technologies and 
                biotechnology processes capable of making------
                            (i) gaseous and liquid biofuels that are 
                        price-competitive, by 2010, with gasoline or 
                        diesel in either internal combustion engines or 
                        fuel cells; and
                            (ii) biofuels, biobased polymers, and 
                        chemicals, including those derived from 
                        lignocellulosic feedstock, with particular 
                        emphasis on developing biorefineries that use 
                        enzyme-based processing systems.
                    (H) Hydropower.--Develop, in partnership with 
                industry, a new generation of turbine technologies that 
                will increase generating capacity and be less damaging 
                to fish and aquatic ecosystems.
            (4) Fossil energy.------
                    (A) Power generation.--Develop, in partnership with 
                industry, technologies, including precombustion 
                technologies, by 2015 with the capability of 
                realizing------
                            (i) electricity generating efficiencies of 
                        75 percent (lower heating value) for natural 
                        gas; and
                            (ii) widespread commercial application of 
                        combined heat and power with thermal 
                        efficiencies of more than 85 percent (higher 
                        heating value).
                    (B) Offshore oil and gas resources.--Develop, in 
                partnership with industry, technologies to------
                            (i) extract methane hydrates in coastal 
                        waters of the United States; and
                            (ii) develop natural gas and oil reserves 
                        in the ultra-deepwater of the Central and 
                        Western Gulf of Mexico, with a focus on 
                        improving, while lowering costs and reducing 
                        environmental impacts, the safety and 
                        efficiency of------
                                    (I) the recovery of ultra-deepwater 
                                resources; and
                                    (II) sub-sea production technology 
                                used for such recovery.
                    (C) Onshore oil and gas resources.--Advance the 
                science and technology available to domestic onshore 
                petroleum producers, particularly independent producers 
                of oil or gas, through------
                            (i) advances in technology for exploration 
                        and production of domestic petroleum resources, 
                        particularly those not accessible with current 
                        technology;
                            (ii) improvement in the ability to extract 
                        hydrocarbons (including heavy oil) from known 
                        reservoirs and classes of reservoirs; and
                            (iii) development of technologies and 
                        practices that reduce the impact on the 
                        environment from petroleum exploration and 
                        production.
                    (D) Transportation fuels.--Increase the 
                availability of transportation fuels by focusing 
                research on------
                            (i) reducing the cost of producing 
                        transportation fuels from coal and natural gas; 
                        and
                            (ii) indirect liquefaction of coal and 
                        biomass.
            (5) Nuclear energy.------
                    (A) Existing reactors.--Support research to extend 
                the lifetimes of existing United States nuclear power 
                reactors, and increase their reliability while 
                optimizing their current operations for greater 
                efficiencies.
                    (B) Advanced reactors.--Develop, in partnership 
                with industry------
                            (i) advanced, efficient, lower cost, and 
                        passively safe reactor designs;
                            (ii) proliferation-resistant and high-burn-
                        up nuclear fuels; and
                            (iii) technologies to minimize generation 
                        of radioactive materials and improve the 
                        management of nuclear waste.
                    (C) Nuclear scientists and engineers.--Attract new 
                students and faculty to the nuclear sciences, nuclear 
                engineering, and related fields (including health 
                physics, nuclear medicine, nuclear chemistry, and 
                radiochemistry).
    (b) Review and Assessment of Goals.------
            (1) Evaluation and modification.--Based on amounts 
        appropriated and developments in science and technology, the 
        Secretary shall evaluate the goals set forth in subsection (a) 
        at least once every 5 years, and shall report to the Congress 
        any proposed modifications to the goals.
            (2) Consultation.--In evaluating and proposing 
        modifications to the goals as provided in paragraph (1), the 
        Secretary shall solicit public input.
            (3) Public comment.--(A) After consultation under paragraph 
        (2), the Secretary shall publish in the Federal Register a set 
        of draft modifications to the goals for public comment.
            (B) Not later than 60 days after the date of publication of 
        draft modifications under subparagraph (A), and after 
        consideration of any public comments received, the Secretary 
        shall publish the final modifications, including a summary of 
        the public comments received, in the Federal Register.
            (4) Effective date.--No modification to goals under this 
        section shall take effect before the date which is 5 years 
        after the date of enactment of this Act.
    (c) Effect of Goals.--(1) Nothing in paragraphs (1) through (5) of 
subsection (a), or any subsequent modification to the goals therein 
pursuant to subsection (b), 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) 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. 103. 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) Independent producer of oil or gas.------
                    (A) In general.--The term ``independent producer of 
                oil or gas'' means any person who 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.
            (4) 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)).
            (5) Joint venture.--The term ``joint venture'' has the 
        meaning given that term under section 2 of the National 
        Cooperative Research and Production Act of 1993 (15 U.S.C. 
        4301).
            (6) National laboratory.--The term ``National Laboratory'' 
        means any of the following laboratories owned by the 
        Department:
                    (A) Ames National Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Laboratory.
                    (E) Idaho National Engineering and Environmental 
                Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Thomas Jefferson National Accelerator Facility.
            (7) Nonmilitary energy laboratory.--The term ``nonmilitary 
        energy laboratory'' means any of the following laboratories of 
        the Department:
                    (A) Ames National Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Laboratory.
                    (E) Lawrence Berkeley National Laboratory.
                    (F) Oak Ridge National Laboratory.
                    (G) Pacific Northwest National Laboratory.
                    (H) Princeton Plasma Physics Laboratory.
                    (I) Stanford Linear Accelerator Center.
                    (J) Thomas Jefferson National Accelerator Facility.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) Single-purpose research facility.--The term ``single-
        purpose research facility'' means any of the following 
        primarily single-purpose entities owned by the Department:
                    (A) East Tennessee Technology Park.
                    (B) Environmental Measurement Laboratory.
                    (C) Fernald Environmental Management Project.
                    (D) Kansas City Plant.
                    (E) Nevada Test Site.
                    (F) New Brunswick Laboratory.
                    (G) Pantex Weapons Facility.
                    (H) Savannah River Technology Center.
                    (I) Stanford Linear Accelerator Center.
                    (J) Y-12 facility at Oak Ridge National Laboratory.
                    (K) Waste Isolation Pilot Plant.
                    (L) Any other similar organization of the 
                Department designated by the Secretary that engages in 
                technology transfer, partnering, or licensing 
                activities.

                     Subtitle A--Energy Efficiency

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 104. 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 2003, $560,000,000.
            (2) For fiscal year 2004, $616,000,000.
            (3) For fiscal year 2005, $695,000,000.
            (4) For fiscal year 2006, $772,000,000.
            (5) For fiscal year 2007, $865,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Lighting systems.--For activities under section 105, 
        $10,000,000 for fiscal year 2003 and $50,000,000 for each of 
        fiscal years 2004 through 2007.
            (2) Secondary electric vehicle battery use program.--For 
        activities under section 108------
                    (A) for fiscal year 2003, $1,000,000;
                    (B) for fiscal year 2004, $4,000,000;
                    (C) for fiscal year 2005, $7,000,000;
                    (D) for fiscal year 2006, $7,000,000; and
                    (E) for fiscal year 2007, $7,000,000.
            (3) Energy efficiency science initiative.--For activities 
        under section 110------
                    (A) for fiscal year 2003, $15,000,000;
                    (B) for fiscal year 2004, $20,000,000;
                    (C) for fiscal year 2005, $25,000,000;
                    (D) for fiscal year 2006, $30,000,000; and
                    (E) for fiscal year 2007, $35,000,000.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for activities under section 105, 
$50,000,000 for each of fiscal years 2008 through 2012.
    (d) Limits on Use of Funds.--None of the funds authorized to be 
appropriated under this section may be used for------
            (1) the promulgation and implementation of energy 
        efficiency regulations;
            (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act;
            (3) the State Energy Program under part D of title III of 
        the Energy Policy and Conservation Act; or
            (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act.

                        PART 2--LIGHTING SYSTEMS

SEC. 105. 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------
            (1) to develop, by 2012, advanced solid-state lighting 
        technologies based on white light emitting diodes that, 
        compared to incandescent and fluorescent lighting technologies, 
        are------
                    (A) longer lasting;
                    (B) more energy-efficient; and
                    (C) cost-competitive;
            (2) to develop an inorganic white light emitting diode that 
        has an efficiency of 160 lumens per watt and a 10-year 
        lifetime; and
            (3) to develop an organic white light emitting diode with 
        an efficiency of 100 lumens per watt with a 5-year lifetime 
        that------
                    (A) illuminates over a full color spectrum;
                    (B) covers large areas over flexible surfaces; and
                    (C) does not contain harmful pollutants, such as 
                mercury, typical of fluorescent lamps.
    (c) Fundamental Research.------
            (1) Consortium.--The Secretary shall carry out the 
        fundamental research activities of the Next Generation Lighting 
        Initiative through a private consortium (which may include 
        private firms, trade associations and institutions of higher 
        education), which the Secretary shall select through a 
        competitive process. Each proposed consortium shall submit to 
        the Secretary such information as the Secretary may require, 
        including a program plan agreed to by all participants of the 
        consortium.
            (2) Joint venture.--The consortium shall be structured as a 
        joint venture among the participants of the consortium. The 
        Secretary shall serve on the governing council of the 
        consortium.
            (3) Eligibility.--To be eligible to be selected as the 
        consortium under paragraph (1), an applicant must be broadly 
        representative of United States solid-state lighting research, 
        development, and manufacturing expertise as a whole.
            (4) Grants.--(A) The Secretary shall award grants for 
        fundamental research to the consortium, which the consortium 
        may disburse to researchers, including those who are not 
        participants of the consortium.
            (B) To receive a grant, the consortium must provide a 
        description to the Secretary of the proposed research and list 
        the parties that will receive funding.
            (C) Grants shall be matched by the consortium pursuant to 
        section 182.
            (5) National laboratories.--National Laboratories may 
        participate in the research described in this section, and may 
        receive funds from the consortium.
            (6) Intellectual property.--Participants in the consortium 
        and the Federal Government shall have royalty-free nonexclusive 
        rights to use intellectual property derived from research 
        funded pursuant to this subsection.
    (d) Development, Demonstration, and Commercial Application.--The 
Secretary shall carry out the development, demonstration, and 
commercial application activities of the Next Generation Lighting 
Initiative through awards to private firms, trade associations, and 
institutions of higher education. In selecting awardees, the Secretary 
may give preference to members of the consortium selected pursuant to 
subsection (c).
    (e) Plans and Assessments.--(1) The consortium shall formulate an 
annual operating plan which shall include research priorities, 
technical milestones, and plans for technology transfer, and which 
shall be subject to approval by the Secretary.
    (2) The Secretary shall enter into an arrangement with the National 
Academy of Sciences to conduct periodic reviews of the Next Generation 
Lighting Initiative. The Academy shall review the research priorities, 
technical milestones, and plans for technology transfer established 
under paragraph (1) and evaluate the progress toward achieving them. 
The Secretary shall consider the results of such reviews in evaluating 
the plans submitted under paragraph (1).
    (f) Audit.--The Secretary shall retain an independent, commercial 
auditor to perform an audit of the consortium to determine the extent 
to which the funds authorized by this section have been expended in a 
manner consistent with the purposes of this section. The auditor shall 
transmit a report annually to the Secretary, who shall transmit the 
report to the Congress, along with a plan to remedy any deficiencies 
cited in the report.
    (g) Sunset.--The Next Generation Lighting Initiative shall 
terminate no later than September 30, 2013.
    (h) Definitions.--As used in this section:
            (1) Advanced solid-state lighting.--The term ``advanced 
        solid-state lighting'' means a semiconducting device package 
        and delivery system that produces white light using externally 
        applied voltage.
            (2) Fundamental research.--The term ``fundamental 
        research'' includes basic research on both solid-state 
        materials and manufacturing processes.
            (3) Inorganic white light emitting diode.--The term 
        ``inorganic white light emitting diode'' means an inorganic 
        semiconducting package that produces white light using 
        externally applied voltage.
            (4) Organic white light emitting diode.--The term ``organic 
        white light emitting diode'' means an organic semiconducting 
        compound that produces white light using externally applied 
        voltage.

                           PART 3--BUILDINGS

SEC. 106. NATIONAL BUILDING PERFORMANCE INITIATIVE.

    (a) Interagency Group.--Not later than 3 months 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 
cochaired by appropriate officials of the Department and the Department 
of Commerce, who shall jointly arrange for the provision of necessary 
administrative support to the group.
    (b) Integration of Efforts.--The Initiative shall integrate 
Federal, State, and voluntary private sector efforts to reduce the 
costs of construction, operation, maintenance, and renovation of 
commercial, industrial, institutional, and residential buildings.
    (c) Plan.--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 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.

                            PART 4--VEHICLES

SEC. 107. DEFINITIONS.

    For purposes of this part, the term------
            (1) ``battery'' means an energy storage device that 
        previously has been used to provide motive power in a vehicle 
        powered in whole or in part by electricity; and
            (2) ``associated equipment'' means equipment located where 
        the batteries will be used that is necessary to enable the use 
        of the energy stored in the batteries.

SEC. 108. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE 
                    PROGRAM.

    (a) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries. Such program shall be------
            (1) designed to demonstrate the use of batteries in 
        secondary application, including utility and commercial power 
        storage and power quality;
            (2) structured to evaluate the performance, including 
        useful service life and costs, of such batteries in field 
        operations, and evaluate the necessary supporting 
        infrastructure, including reuse and disposal of batteries; and
            (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
    (b) Solicitation.--(1) Not later than 6 months after the date of 
the enactment of this Act, the Secretary shall solicit proposals to 
demonstrate the secondary use of batteries and associated equipment and 
supporting infrastructure in geographic locations throughout the United 
States. The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary to 
carry out this section.
    (2)(A) Proposals submitted in response to a solicitation under this 
section shall include------
            (i) a description of the project, including the batteries 
        to be used in the project, the proposed locations and 
        applications for the batteries, the number of batteries to be 
        demonstrated, and the type, characteristics, and estimated 
        life-cycle costs of the batteries compared to other energy 
        storage devices currently used;
            (ii) the contribution, if any, of State or local 
        governments and other persons to the demonstration project;
            (iii) the type of associated equipment and supporting 
        infrastructure to be demonstrated; and
            (iv) any other information the Secretary considers 
        appropriate.
    (B) If the proposal includes a lease arrangement, the proposal 
shall indicate the terms of such lease arrangement for the batteries 
and associated equipment.
    (c) Selection of Proposals.--(1)(A) The Secretary shall, not later 
than 3 months after the closing date established by the Secretary for 
receipt of proposals under subsection (b), select at least 5 proposals 
to receive financial assistance under this section.
    (B) No one project selected under this section shall receive more 
than 25 percent of the funds authorized under this section. No more 
than 3 projects selected under this section shall demonstrate the same 
battery type.
    (2) In selecting a proposal under this section, the Secretary shall 
consider------
            (A) the ability of the proposer to acquire the batteries 
        and associated equipment and to successfully manage and conduct 
        the demonstration project, including satisfying the reporting 
        requirements set forth in paragraph (3)(B);
            (B) the geographic and climatic diversity of the projects 
        selected;
            (C) the long-term technical and competitive viability of 
        the batteries to be used in the project and of the original 
        manufacturer of such batteries;
            (D) the suitability of the batteries for their intended 
        uses;
            (E) the technical performance of the batteries, including 
        the expected additional useful life and the batteries' ability 
        to retain energy;
            (F) the environmental effects of the use of and disposal of 
        the batteries proposed to be used in the project selected;
            (G) the extent of involvement of State or local government 
        and other persons in the demonstration project and whether such 
        involvement will------
                    (i) permit a reduction of the Federal cost share 
                per project; or
                    (ii) otherwise be used to allow the Federal 
                contribution to be provided to demonstrate a greater 
                number of batteries; and
            (H) such other criteria as the Secretary considers 
        appropriate.
    (3) Conditions.--The Secretary shall require that------
            (A) as a part of a demonstration project, the users of the 
        batteries provide to the proposer information regarding the 
        operation, maintenance, performance, and use of the batteries, 
        and the proposer provide such information to the battery 
        manufacturer, for 3 years after the beginning of the 
        demonstration project;
            (B) the proposer provide to the Secretary such information 
        regarding the operation, maintenance, performance, and use of 
        the batteries as the Secretary may request;
            (C) the proposer provide to the Secretary such information 
        regarding the disposal of the batteries as the Secretary may 
        require to ensure that the proposer disposes of the batteries 
        in accordance with applicable law; and
            (D) the proposer provide at least 50 percent of the costs 
        associated with the proposal.

SEC. 109. ADVANCED VEHICLE TECHNOLOGY.

    The Secretary shall expand research and development programs of the 
Department related to advanced vehicle technologies, including------
            (1) fuel cells, including high temperature membranes for 
        fuel cells and fuel cell auxiliary power systems, and hydrogen 
        storage;
            (2) vehicle engine systems and emission control systems;
            (3) batteries and power electronics for hybrid vehicles;
            (4) combustion and after-treatment technologies for use in 
        direct injected gasoline and diesel fueled motor vehicles; and
            (5) other advanced fuels and materials.

              PART 5--ENERGY EFFICIENCY SCIENCE INITIATIVE

SEC. 110. 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 the 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.

       Subtitle B--Distributed Energy and Electric Energy Systems

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 111. 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 2003, $155,000,000.
            (2) For fiscal year 2004, $190,000,000.
            (3) For fiscal year 2005, $200,000,000.
            (4) For fiscal year 2006, $220,000,000.
            (5) For fiscal year 2007, $240,000,000.
    (b) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (a), $2,000,000 for fiscal year 2003 and $20,000,000 
for fiscal year 2004 shall be available for activities under section 
114.

                       PART 2--DISTRIBUTED POWER

SEC. 112. STRATEGY.

    (a) Requirement.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop and transmit to the Congress a 
strategy for a comprehensive research, development, demonstration, and 
commercial application program to develop hybrid distributed power 
systems that combine------
            (1) one or more renewable electric power generation 
        technologies of 10 megawatts or less located near the site of 
        electric energy use; and
            (2) nonintermittent electric power generation technologies 
        suitable for use in a distributed power system.
    (b) Contents.--The strategy shall------
            (1) identify the needs best met with such hybrid 
        distributed power systems and the technological barriers to the 
        use of such systems;
            (2) provide for the development of methods to design, test, 
        integrate into systems, and operate such hybrid distributed 
        power systems;
            (3) include, as appropriate, 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; and
            (4) describe how activities under the strategy will be 
        integrated with other research, development, demonstration, and 
        commercial application activities supported by the Department 
        of Energy related to electric power technologies.

SEC. 113. 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. 114. MICRO-COGENERATION ENERGY TECHNOLOGY.

    The Secretary shall make competitive, merit-based grants to 
consortia for the development of micro-cogeneration energy technology. 
The consortia shall explore the use of small-scale combined heat and 
power in residential heating appliances.

                      PART 3--TRANSMISSION SYSTEMS

SEC. 115. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, DEVELOPMENT, 
                    DEMONSTRATION, AND COMMERCIAL APPLICATION.

    (a) Program Authorized.--The Secretary shall develop and implement 
a comprehensive research, development, demonstration, and commercial 
application program to promote improved reliability and efficiency of 
electrical transmission systems. Such program may include------
            (1) advanced energy technologies, materials, and systems;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to------
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) any other infrastructure technologies, as appropriate; 
        and
            (9) technology transfer and education.
    (b) Program Plan.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary, in consultation with other 
appropriate Federal agencies, shall prepare and transmit to Congress a 
5-year program plan to guide activities under this section. In 
preparing the program plan, the Secretary shall consult with utilities, 
energy services providers, manufacturers, institutions of higher 
education, other appropriate State and local agencies, environmental 
organizations, professional and technical societies, and any other 
persons the Secretary considers appropriate.
    (c) Report.--Not later than 2 years after the transmittal of the 
plan under subsection (b), the Secretary shall transmit a report to 
Congress describing the progress made under this section and 
identifying any additional resources needed to continue the development 
and commercial application of transmission infrastructure technologies.

                      Subtitle C--Renewable Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 121. 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, including the 
amounts authorized under the amendments made by sections 124 and 125:
            (1) For fiscal year 2003, $390,000,000.
            (2) For fiscal year 2004, $460,000,000.
            (3) For fiscal year 2005, $510,000,000.
            (4) For fiscal year 2006, $560,000,000.
            (5) For fiscal year 2007, $609,000,000.
    (b) Bioenergy.--From the amounts authorized under subsection (a), 
the following sums are authorized to be appropriated to carry out 
section 122 and section 176:
            (1) For fiscal year 2003, $117,800,000.
            (2) For fiscal year 2004, $135,425,000.
            (3) For fiscal year 2005, $155,600,000.
            (4) For fiscal year 2006, $167,650,000.
            (5) For fiscal year 2007, $180,000,000.
    (c) Limits on Use of Funds.------
            (1) Exclusion.--None of the funds authorized to be 
        appropriated under this section may be used for Renewable 
        Support and Implementation.
            (2) Bioenergy.--Of the funds authorized under subsection 
        (b), not less than $5,000,000 for each fiscal year shall be 
        made available for grants to Historically Black Colleges and 
        Universities, Tribal Colleges, and Hispanic-Serving 
        Institutions.
            (3) Rural and remote locations.--In carrying out this 
        section, the Secretary, in consultation with the Secretary of 
        Agriculture, shall demonstrate the use of advanced wind power 
        technology, biomass, geothermal energy systems, and other 
        renewable energy technologies to assist in delivering 
        electricity to rural and remote locations.

                           PART 2--BIOENERGY

SEC. 122. BIOENERGY PROGRAMS.

    The Secretary shall conduct a program of research, development, 
demonstration, and commercial application for bioenergy, including----
--
            (1) biopower energy systems;
            (2) biofuels;
            (3) integrated applications of both biopower and biofuels;
            (4) cross-cutting research and development in feedstocks; 
        and
            (5) economic analysis.

                            PART 3--HYDROGEN

SEC. 123. SHORT TITLE.

    This part may be cited as the ``George E. Brown, Jr. and Robert S. 
Walker Hydrogen Future Act of 2003''.

SEC. 124. MATSUNAGA ACT AMENDMENT.

    The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended by 
striking sections 102 through 109 and inserting the following:

``SEC. 102. FINDING, PURPOSES, AND DEFINITIONS.

    ``(a) Finding.--Congress finds that it is in the national interest 
to accelerate efforts to develop a domestic capability to economically 
produce hydrogen in quantities that will make a significant 
contribution toward reducing the Nation's dependence on conventional 
fuels.
    ``(b) Purposes.--The purposes of this Act are------
            ``(1) to promote a research, development, and demonstration 
        program leading to the economical and environmentally sound 
        production, storage, transport, and use of hydrogen as an 
        energy source for industrial, commercial, residential, 
        transportation, and utility applications; and
            ``(2) to promote and coordinate activities in technology 
        transfer, education, and other information transfer among 
        Federal, State, and local agencies; members of the energy, 
        transportation, and other industries; foreign nations; and 
        other entities.
    ``(c) Definitions.--As used in this Act, the term------
            ``(1) `advisory committee' means the advisory committee 
        established under section 108;
            ``(2) `critical technology' (or `critical technical issue') 
        means a technology (or issue) that, in the opinion of the 
        Secretary, requires understanding and development in order to 
        take the next step needed in the development of hydrogen as an 
        economic fuel or storage medium;
            ``(3) `Department' means the Department of Energy; and
            ``(4) `Secretary' means the Secretary of Energy.

``SEC. 103. PLAN; REPORT.

    ``(a) Coordination Plan.--The Secretary, in consultation with other 
Federal agencies, shall prepare a comprehensive coordination plan for 
activities under this Act and under title II of the Hydrogen Future Act 
of 1996. The Secretary shall take into account any plan under section 
202(b) of the Hydrogen Future Act of 1996.
    ``(b) Report.------
            ``(1) Requirement.--Not later than 1 year after the date of 
        enactment of the George E. Brown, Jr. and Robert S. Walker 
        Hydrogen Future Act of 2003, and biennially thereafter, the 
        Secretary shall transmit to Congress a detailed report, based 
        on the plan prepared under subsection (a), on the status and 
        progress of the programs authorized under this Act.
            ``(2) Contents.--A report under paragraph (1) shall 
        include, in addition to any views and recommendations of the 
        Secretary------
                    ``(A) an assessment of the effectiveness of the 
                programs authorized under this Act and of the extent to 
                which they are meeting the purposes specified in 
                section 102(b);
                    ``(B) recommendations of the advisory committee for 
                any improvements in the program that are needed, 
                including recommendations for additional legislation; 
                and
                    ``(C) to the extent practicable, an analysis of 
                Federal, State, local, and private sector hydrogen-
                related research, development, and demonstration 
                activities to identify productive areas for increased 
                intergovernmental and private-public sector 
                collaboration.

``SEC. 104. HYDROGEN RESEARCH AND DEVELOPMENT.

    ``(a) Program.--The Secretary shall conduct a research and 
development program relating to the production, storage, 
transportation, and use of hydrogen as an energy source, with the goal 
of enabling the private sector to demonstrate the technical feasibility 
of using hydrogen for industrial, commercial, residential, 
transportation, and utility applications.
    ``(b) Elements.--In conducting the program authorized by this 
section, the Secretary shall------
            ``(1) initiate or accelerate research and development in 
        critical technical issues that will contribute to the 
        development of more economical and environmentally sound 
        hydrogen energy systems, including critical technical issues 
        with respect to------
                    ``(A) production, with consideration of cost-
                effective production from renewable energy sources;
                    ``(B) liquefaction, transmission, and distribution;
                    ``(C) storage, including storage of hydrogen in 
                surface transportation; and
                    ``(D) use, including use in------
                            ``(i) surface transportation;
                            ``(ii) isolated villages, islands, and 
                        communities in which other energy sources are 
                        not available or are very expensive;
                            ``(iii) fuel cells and components, 
                        including proton exchange membrane 
                        technologies; and
                            ``(iv) foreign markets, particularly where 
                        an energy infrastructure is not well developed;
            ``(2) give particular attention to resolving critical 
        technical issues preventing the introduction of hydrogen as an 
        energy source into the marketplace, so as to enable the 
        development of voluntary consensus technical standards; and
            ``(3) survey private sector hydrogen energy research and 
        development activities worldwide and take steps to ensure that 
        research and development activities under this section do not--
        ----
                    ``(A) unnecessarily duplicate any available 
                research and development; or
                    ``(B) displace or compete with the privately funded 
                hydrogen energy research and development activities of 
                United States industry.
    ``(c) Research and Development Support.--The Secretary is 
authorized to arrange for tests and demonstrations and to disseminate 
to researchers and developers information, data, and other materials 
necessary to support the research and development activities authorized 
under this section and other efforts authorized under this Act, 
consistent with section 106.
    ``(d) Federal Funding.--The Secretary shall carry out the research 
and development activities authorized under this section using a 
competitive merit review process.
    ``(e) Cost Sharing.------
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 20 percent of the cost of 
        proposed research and development projects under this section.
            ``(2) Reduction or elimination.--The Secretary may reduce 
        or eliminate the cost sharing requirement under paragraph (1)--
        ----
                    ``(A) if the Secretary determines that the research 
                and development is of a basic or fundamental nature; or
                    ``(B) for technical analyses, outreach activities, 
                and educational programs that the Secretary does not 
                expect to result in a marketable product.

``SEC. 105. DEMONSTRATIONS.

    ``(a) Requirement.--The Secretary shall conduct demonstrations of 
critical technologies so that technical and nontechnical parameters can 
be evaluated to best determine commercial applicability of such 
technologies. Demonstrations under this section shall include fuel 
cells and fuel cell components, including proton exchange membrane 
technologies, for commercial, residential, and transportation 
applications, using improved manufacturing production and processes.
    ``(b) Demonstrations With Research and Development Activities.--
Concurrently with activities conducted pursuant to section 104, the 
Secretary shall conduct small-scale demonstrations of hydrogen energy 
technology at self-contained sites.
    ``(c) Cost Sharing.------
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 50 percent of the costs 
        directly relating to a demonstration project under this 
        section.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.

``SEC. 106. TECHNOLOGY ASSESSMENT AND TRANSFER.

    ``(a) Program.------
            ``(1) In general.--The Secretary shall conduct a program 
        designed to transfer critical technologies to the private 
        sector, including application in foreign countries to increase 
        the global market for the technologies and foster global 
        development without harmful environmental effects.
            ``(2) Advice and assistance.--The Secretary shall direct 
        the program authorized by this subsection with the advice and 
        assistance of the advisory committee.
    ``(b) Information.------
            ``(1) In general.--The Secretary, in carrying out the 
        program authorized by subsection (a), shall------
                    ``(A) undertake an update of the inventory and 
                assessment of hydrogen energy technologies and their 
                commercial capability to economically produce, store, 
                transport, and use hydrogen as an energy source in the 
                industrial, commercial, residential, transportation, 
                and utility sectors; and
                    ``(B) develop with the National Aeronautics and 
                Space Administration, other Federal agencies as 
                appropriate, and industry, an information exchange 
                program to improve technology transfer for hydrogen 
                energy technologies.
            ``(2) Activities.--The information exchange program may 
        consist of workshops, publications, conferences, and a database 
        for the use by the public and private sectors. The Secretary 
        shall also foster the exchange of generic, nonproprietary 
        information and technology, developed pursuant to this Act, 
        among industry, academia, and the Federal Government, to help 
        the United States economy attain the economic benefits of this 
        information and technology.

``SEC. 107. COORDINATION AND CONSULTATION.

    ``(a) Secretary's Responsibility.--The Secretary shall have overall 
management responsibility for carrying out programs under this Act. In 
carrying out such programs, the Secretary, consistent with such overall 
management responsibility------
            ``(1) shall establish a central point for the coordination 
        of all hydrogen energy research, development, and demonstration 
        activities of the Department; and
            ``(2) may use the expertise of any other Federal agency in 
        accordance with subsection (b) in carrying out any activities 
        under this Act, to the extent that the Secretary determines 
        that any such agency has capabilities which would allow such 
        agency to contribute to the purposes of this Act.
    ``(b) Assistance.--The Secretary may, in accordance with subsection 
(a), obtain the assistance of any Federal agency upon written request, 
on a reimbursable basis or otherwise and with the consent of such 
agency. Each such request shall identify the assistance the Secretary 
considers necessary to carry out any duty under this Act.
    ``(c) Consultation.--The Secretary shall consult with other Federal 
agencies as appropriate, and the advisory committee, in carrying out 
the Secretary's authorities pursuant to this Act.

``SEC. 108. ADVISORY COMMITTEE.

    ``(a) Establishment.--There is hereby established the Hydrogen 
Technical Advisory Committee to advise the Secretary on the programs 
under this Act and under title II of the Hydrogen Future Act of 1996, 
to remain in existence for the duration of such programs.
    ``(b) Membership.------
            ``(1) In general.--The advisory committee shall be 
        comprised of not fewer than 9 nor more than 15 members 
        appointed by the Secretary, and shall be comprised of such 
        representatives from domestic industry, universities, 
        professional societies, Government laboratories, and financial, 
        environmental, and other organizations as the Secretary 
        considers appropriate based on the Secretary's assessment of 
        the technical and other qualifications of such representatives.
            ``(2) Terms.------
                    ``(A) In general.--The term of a member of the 
                advisory committee shall not be more than three years.
                    ``(B) Staggered terms.--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.
                    ``(C) Reappointment.--A member of the advisory 
                committee whose term expires may be reappointed.
            ``(3) Chairperson.--The advisory committee shall have a 
        chairperson, who shall be elected by the members from among 
        their number.
    ``(c) Cooperation.--The heads of Federal agencies shall cooperate 
with the advisory committee in carrying out the requirements of this 
section and shall furnish to the advisory committee such information as 
the advisory committee considers necessary to carry out this section.
    ``(d) Review.--The advisory committee shall review and make any 
necessary recommendations to the Secretary on------
            ``(1) the implementation and conduct of programs under this 
        Act;
            ``(2) the economic, technological, and environmental 
        consequences of the deployment of technologies for the 
        production, storage, transportation, and use of hydrogen as an 
        energy source; and
            ``(3) the coordination plan prepared by the Secretary under 
        section 103 and the plan developed by the interagency task 
        force under section 202(b) of the Hydrogen Future Act of 1996.
    ``(e) Response to Recommendations.--The Secretary shall consider, 
but need not adopt, any recommendations of the advisory committee under 
subsection (d). The Secretary shall either describe the implementation, 
or provide an explanation of the reasons that any such recommendations 
will not be implemented, in the report to Congress under section 
103(b).
    ``(f) Support.--The Secretary shall provide such staff, funds, and 
other support as may be necessary to enable the advisory committee to 
carry out its functions.

``SEC. 109. NATIONAL ACADEMY OF SCIENCES REVIEW.

    ``Beginning 2 years after the date of the enactment of this 
section, and every 4 years thereafter, the National Academy of Sciences 
shall perform a review of the progress made through the programs and 
activities authorized under this Act and title II of the Hydrogen 
Future Act of 1996, and shall report to the Congress on the results of 
such reviews.

``SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the purposes 
of this Act (in addition to any amounts made available for such 
purposes under other Acts)------
            ``(1) $3,000,000 for fiscal year 1992;
            ``(2) $7,000,000 for fiscal year 1993;
            ``(3) $10,000,000 for fiscal year 1994;
            ``(4) $14,500,000 for fiscal year 1996;
            ``(5) $20,000,000 for fiscal year 1997;
            ``(6) $25,000,000 for fiscal year 1998;
            ``(7) $30,000,000 for fiscal year 1999;
            ``(8) $35,000,000 for fiscal year 2000;
            ``(9) $40,000,000 for fiscal year 2001;
            ``(10) $45,000,000 for fiscal year 2002;
            ``(11) $50,000,000 for fiscal year 2003;
            ``(12) $55,000,000 for fiscal year 2004;
            ``(13) $60,000,000 for fiscal year 2005;
            ``(14) $65,000,000 for fiscal year 2006; and
            ``(15) $70,000,000 for fiscal year 2007.''.

SEC. 125. HYDROGEN FUTURE ACT AMENDMENT.

    Title II of the Hydrogen Future Act of 1996 (42 U.S.C. 12403 note) 
is amended to read as follows:

                         ``TITLE II--FUEL CELLS

``SEC. 201. INTEGRATION OF FUEL CELLS WITH HYDROGEN SYSTEMS.

    ``(a) In General.--The Secretary shall solicit proposals for 
projects demonstrating hydrogen technologies needed to use fuel cells 
in Federal, State, and local government stationary and transportation 
applications.
    ``(b) Competitive Evaluation.--Each proposal submitted in response 
to the solicitation under this section shall be evaluated on a 
competitive basis using peer review. The Secretary is not required to 
make an award under this section in the absence of a meritorious 
proposal.
    ``(c) Preference.--The Secretary shall give preference, in making 
an award under this section, to proposals that------
            ``(1) are submitted jointly from consortia including 
        academic institutions, industry, State or local governments, 
        and Federal laboratories; and
            ``(2) reflect proven experience and capability with 
        technologies relevant to the projects proposed.
    ``(d) Non-Federal Share.------
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require a commitment from non-Federal sources 
        of at least 50 percent of the costs directly relating to a 
        demonstration project under this section.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.

``SEC. 202. INTERAGENCY TASK FORCE.

    ``(a) Establishment.--Not later than 120 days after the date of 
enactment of the George E. Brown, Jr. and Robert S. Walker Hydrogen 
Future Act of 2003, the Secretary shall establish an interagency task 
force led by the Secretary's designee and comprised of representatives 
of------
            ``(1) the Office of Science and Technology Policy;
            ``(2) the Department of Transportation;
            ``(3) the Department of Defense;
            ``(4) the Department of Commerce (including the National 
        Institute of Standards and Technology);
            ``(5) the Environmental Protection Agency;
            ``(6) the National Aeronautics and Space Administration; 
        and
            ``(7) other Federal agencies as appropriate.
    ``(b) Duties.------
            ``(1) Development of plan.--The task force shall develop a 
        plan for carrying out this title.
            ``(2) Focus of plan.--The plan shall focus on development 
        and demonstration of integrated systems and components for----
        --
                    ``(A) the production, storage, transport, and use 
                of hydrogen as an energy source for Federal, State, and 
                local government stationary and transportation 
                applications;
                    ``(B) hydrogen-based infrastructure for buses and 
                other fleet transportation systems that include zero-
                emission vehicles; and
                    ``(C) hydrogen-based distributed power generation, 
                including the generation of combined heat, power, and 
                hydrogen.

``SEC. 203. COOPERATIVE AND COST-SHARING AGREEMENTS.

    ``The Secretary shall enter into cooperative and cost-sharing 
agreements with Federal, State, and local agencies for participation by 
the agencies in demonstrations at facilities administered by the 
agencies, with the aim of integrating high-efficiency hydrogen systems 
using fuel cells into the facilities to provide near-term benefits and 
promote a smooth transition to hydrogen as an energy source.

``SEC. 204. INTEGRATION AND DISSEMINATION OF TECHNICAL INFORMATION.

    ``The Secretary shall------
            ``(1) integrate all the technical information available as 
        a result of development and demonstration projects under this 
        title;
            ``(2) make the information available to all interested 
        persons; and
            ``(3) foster the exchange of generic, nonproprietary 
        information and technology developed under this title among 
        industry, academia, and Federal, State, and local governments, 
        to help the United States economy attain the economic benefits 
        of the information and technology.

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary, for 
activities under this title------
            ``(1) $5,000,000 for fiscal year 2003;
            ``(2) $25,000,000 for fiscal year 2004;
            ``(3) $30,000,000 for fiscal year 2005;
            ``(4) $35,000,000 for fiscal year 2006; and
            ``(5) $40,000,000 for fiscal year 2007.''.

                     PART 4--MISCELLANEOUS PROJECTS

SEC. 126. MISCELLANEOUS PROJECTS.

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

                       Subtitle D--Nuclear Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 131. 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 2003, $200,000,000.
            (2) For fiscal year 2004, $233,000,000.
            (3) For fiscal year 2005, $266,000,000.
            (4) For fiscal year 2006, $300,000,000.
            (5) For fiscal year 2007, $334,000,000.
    (b) Nuclear Infrastructure Support.--The following sums are 
authorized to be appropriated to the Secretary for activities under 
section 132(f):
            (1) For fiscal year 2003, $120,000,000.
            (2) For fiscal year 2004, $125,000,000.
            (3) For fiscal year 2005, $130,000,000.
            (4) For fiscal year 2006, $135,000,000.
            (5) For fiscal year 2007, $140,000,000.
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Advanced fuel recycling program.--For activities under 
        section 133------
                    (A) for fiscal year 2003, $80,000,000;
                    (B) for fiscal year 2004, $93,000,000;
                    (C) for fiscal year 2005, $106,000,000;
                    (D) for fiscal year 2006, $120,000,000; and
                    (E) for fiscal year 2007, $134,000,000.
            (2) University programs.--For activities under section 
        134------
                    (A) for fiscal year 2003, $25,000,000;
                    (B) for fiscal year 2004, $33,000,000;
                    (C) for fiscal year 2005, $37,900,000;
                    (D) for fiscal year 2006, $43,600,000; and
                    (E) for fiscal year 2007, $50,100,000.
    (d) Limit on Use of Funds.--None of the funds authorized under this 
section may be used for decommissioning the Fast Flux Test Facility.

                PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 132. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
    (b) Nuclear Energy Plant Optimization Program.--The Secretary shall 
carry out a Nuclear Energy Plant Optimization Program to support 
research and development activities addressing reliability, 
availability, productivity, and component aging in existing nuclear 
power plants.
    (c) Nuclear Power 2010 Program.--The Secretary shall carry out a 
Nuclear Power 2010 Program, consistent with recommendations in the 
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010'' issued by the Nuclear Energy 
Research Advisory Committee of the Department. The Program shall------
            (1) rely on the expertise and capabilities of the National 
        Laboratories in the areas of advanced nuclear fuels cycles and 
        fuels testing;
            (2) pursue an approach that considers a variety of reactor 
        designs;
            (3) include participation of international collaborators in 
        research, development, and design efforts as appropriate; and
            (4) encourage industry participation.
    (d) Generation IV Nuclear Energy Systems Initiative.--The Secretary 
shall carry out a Generation IV Nuclear Energy Systems Initiative to 
develop an overall technology plan and to support research and 
development necessary to make an informed technical decision about the 
most promising candidates for eventual commercial application. The 
Initiative shall examine advanced proliferation-resistant and passively 
safe reactor designs, including designs that------
            (1) are economically competitive with other electric power 
        generation plants;
            (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
            (3) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
            (4) utilize improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen using thermochemical 
processes.
    (f) Nuclear Infrastructure Support.--The Secretary shall develop 
and implement a strategy for the facilities of the Office of Nuclear 
Energy, Science, and Technology and shall transmit a report containing 
the strategy along with the President's budget request to the Congress 
for fiscal year 2005. Such strategy shall provide a cost-effective 
means for------
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility upgrades and modifications; and
            (4) building new facilities.

                    PART 3--ADVANCED FUEL RECYCLING

SEC. 133. ADVANCED FUEL RECYCLING PROGRAM.

    (a) In General.--The Secretary, through the Director of the Office 
of Nuclear Energy, Science and Technology, shall conduct an advanced 
fuel recycling technology research and development program to evaluate 
proliferation-resistant fuel recycling and transmutation technologies 
which minimize environmental or public health and safety impacts as an 
alternative to aqueous reprocessing technologies deployed as of the 
date of enactment of this Act in support of evaluation of alternative 
national strategies for spent nuclear fuel and the Generation IV 
advanced reactor concepts, subject to annual review by the Secretary's 
Nuclear Energy Research Advisory Committee or other independent entity, 
as appropriate. Opportunities to enhance progress of this program 
through international cooperation should be sought.
    (b) Reports.--The Secretary shall report on the activities of the 
advanced fuel recycling technology research and development program, as 
part of the Department's annual budget submission.

                      PART 4--UNIVERSITY PROGRAMS

SEC. 134. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) Establishment.--The Secretary shall support a program to invest 
in human resources and infrastructure in the nuclear sciences and 
engineering and related fields (including health physics and nuclear 
and radiochemistry), consistent with departmental missions related to 
civilian nuclear research and development.
    (b) Duties.--In carrying out the program under this section, the 
Secretary shall------
            (1) establish a graduate and undergraduate fellowship 
        program to attract new and talented students;
            (2) establish a Junior Faculty Research Initiation Grant 
        Program to assist institutions of higher education in 
        recruiting and retaining new faculty in the nuclear sciences 
        and engineering;
            (3) support fundamental nuclear sciences and engineering 
        research through the Nuclear Engineering Education Research 
        Program;
            (4) encourage collaborative nuclear research among 
        industry, National Laboratories, and institutions of higher 
        education through the Nuclear Energy Research Initiative; and
            (5) support communication and outreach related to nuclear 
        science and engineering.
    (c) Maintaining University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include--
----
            (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels, upgrading operational 
        instrumentation, and sharing of reactors among institutions of 
        higher education;
            (2) providing technical assistance, in collaboration with 
        the United States nuclear industry, in relicensing and 
        upgrading training reactors as part of a student training 
        program; and
            (3) providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
    (d) University-National Laboratory Interactions.--The Secretary 
shall develop------
            (1) a sabbatical fellowship program for professors at 
        institutions of higher education to spend extended periods of 
        time at National Laboratories in the areas of nuclear science 
        and technology; and
            (2) a visiting scientist program in which National 
        Laboratory staff can spend time in academic nuclear science and 
        engineering departments.
The Secretary may provide fellowships for students to spend time at 
National Laboratories in the area of nuclear science with a member of 
the Laboratory staff acting as a mentor.
    (e) Operating and Maintenance Costs.--Funding for a research 
project provided under this section may be used to offset a portion of 
the operating and maintenance costs of a research reactor at an 
institution of higher education used in the research project.

                       Subtitle E--Fossil Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 141. 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 subtitle, other than those described 
in subsection (b):
            (1) For fiscal year 2003, $505,000,000.
            (2) For fiscal year 2004, $523,000,000.
            (3) For fiscal year 2005, $542,000,000.
            (4) For fiscal year 2006, $558,000,000.
            (5) For fiscal year 2007, $585,000,000.
    (b) Ultra-Deepwater and Unconventional Resources.------
            (1) Oil and gas lease income.--For each of fiscal years 
        2003 through 2010, from any 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 paragraph 
        (2), an amount equal to 7.5 percent of the amount of royalties, 
        rents, and bonuses derived from those leases deposited in the 
        Treasury shall be deposited into the Ultra-Deepwater and 
        Unconventional Natural Gas and Other Petroleum Research Fund 
        (in this subsection referred to as the Fund). For purposes of 
        this subsection, 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)). 
        Monies in the Fund shall be available to the Secretary for 
        obligation under part 3, without fiscal year limitation, to the 
        extent provided in advance in appropriations Acts.
            (2) Prior distributions.--The distributions described in 
        paragraph (1) 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)); and
                            (iii) the Historic Preservation Fund, 
                        pursuant to section 108 of the National 
                        Historic Preservation Act (16 U.S.C. 470h).
            (3) Allocation.--Amounts made available under this 
        subsection in each fiscal year shall be allocated as follows:
                    (A) 67.5 percent shall be for ultra-deepwater 
                natural gas and other petroleum activities under 
                section 145;
                    (B) 22.5 percent shall be for unconventional 
                natural gas and other petroleum resource activities 
                under section 146; and
                    (C) 10 percent shall be for research complementary 
                to research under section 144(b)(1) through (3).
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Fuel cell proton exchange membrane technology.--For 
        activities under section 142(c)(2), $28,000,000 for each of the 
        fiscal years 2003 through 2007.
            (2) Coal mining technologies.--For activities under section 
        143------
                    (A) for fiscal year 2004, $12,000,000; and
                    (B) for fiscal year 2005, $15,000,000.
            (3) Office of arctic energy.--For the Office of Arctic 
        Energy under section 3197 of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
        398), $25,000,000 for each of fiscal years 2003 through 2007.
    (d) 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 (Public Law 106-398), $25,000,000 for each of 
fiscal years 2008 through 2011.
    (e) Limits on Use of Funds.------
            (1) Exclusions.--None of the funds authorized under this 
        section may be used for------
                    (A) Fossil Energy Environmental Restoration; or
                    (B) Import/Export Authorization.
            (2) University coal mining research.--Of the funds 
        authorized under subsection (c)(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.

                       PART 2--RESEARCH PROGRAMS

SEC. 142. FOSSIL ENERGY RESEARCH PROGRAMS.

    (a) Coal Research.--(1) In addition to the Clean Coal Power 
Initiative authorized under title V, the Secretary shall conduct a 
program of research, development, demonstration, and commercial 
application for coal and power systems, including------
            (A) central systems;
            (B) sequestration research and development;
            (C) fuels;
            (D) advanced research; and
            (E) advanced separation technologies.
    (2) No funds may be used to carry out the activities authorized by 
paragraph (1) after September 30, 2003, unless one month has elapsed 
since the Secretary has transmitted to the Congress a report 
providing------
            (A) a detailed description of how proposals will be 
        solicited and evaluated;
            (B) a list of activities and technical milestones; and
            (C) a description of how these activities will complement 
        and not duplicate the Clean Coal Power Initiative authorized 
        under title V.
    (b) 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; and
            (7) environmental research.
    (c) Fuel Cells.--(1) 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) The demonstrations shall include fuel cell proton exchange 
membrane technology for commercial, residential, and transportation 
applications, and distributed generation systems, utilizing improved 
manufacturing production and processes.
    (d) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of the enactment of this Act, and at 2-year intervals 
thereafter, the Secretary of the Interior, in consultation with other 
appropriate Federal agencies, shall transmit a report to the 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.

SEC. 143. 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 based on 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; and
            (2) expand mining research capabilities at institutions of 
        higher education.

   PART 3--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES

SEC. 144. 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 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.
            (2) Ultra-deepwater architecture.
            (3) Unconventional natural gas and other petroleum resource 
        exploration and production technology.
    (c) Limitation on Location of Field Activities.--Field activities 
under the program under this part shall be carried out only------
            (1) in------
                    (A) areas in the territorial waters of the United 
                States not under any Outer Continental Shelf moratorium 
                as of September 30, 2002;
                    (B) areas onshore in the United States on public 
                land administered by the Secretary of the Interior 
                available for oil and gas leasing, where consistent 
                with applicable law and land use plans; and
                    (C) areas onshore in the United States on State or 
                private land, subject to applicable law; and
            (2) with the approval of the appropriate Federal or State 
        land management agency or private land owner.
    (d) Research at National Energy Technology Laboratory.--The 
Secretary, through the National Energy Technology Laboratory, shall 
carry out research complementary to research under section 144(b)(1) 
through (3).
    (e) Consultation with Secretary of the Interior.--In carrying out 
this part, the Secretary shall consult regularly with the Secretary of 
the Interior.

SEC. 145. ULTRA-DEEPWATER PROGRAM.

    (a) In General.--The Secretary shall carry out the activities under 
paragraphs (1) and (2) of section 144(b), to maximize the value of the 
ultra-deepwater natural gas and other petroleum resources of the United 
States by increasing the supply of such resources and by reducing the 
cost and increasing the efficiency of exploration for and production of 
such resources, while improving safety and minimizing environmental 
impacts.
    (b) Role of the Secretary.--The Secretary shall have ultimate 
responsibility for, and oversight of, all aspects of the program under 
this section.
    (c) Role of the Program Consortium.------
            (1) In general.--The Secretary shall contract with a 
        consortium to------
                    (A) manage awards pursuant to subsection (f)(4);
                    (B) make recommendations to the Secretary for 
                project solicitations;
                    (C) disburse funds awarded under subsection (f) as 
                directed by the Secretary in accordance with the annual 
                plan under subsection (e); and
                    (D) carry out other activities assigned to the 
                program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as specifically 
        authorized under this section.
            (3) Conflict of interest.--(A) The Secretary shall 
        establish procedures------
                    (i) to ensure that each board member, officer, or 
                employee of the program consortium who is in a 
                decisionmaking capacity under subsection (f)(3) or (4) 
                shall disclose to the Secretary any financial interests 
                in, or financial relationships with, applicants for or 
                recipients of awards under this section, including 
                those of his or her spouse or minor child, unless such 
                relationships or interests would be considered to be 
                remote or inconsequential; and
                    (ii) to require any board member, officer, or 
                employee with a financial relationship or interest 
                disclosed under clause (i) to recuse himself or herself 
                from any review under subsection (f)(3) or oversight 
                under subsection (f)(4) with respect to such applicant 
                or recipient.
            (B) The Secretary may disqualify an application or revoke 
        an award under this section if a board member, officer, or 
        employee has failed to comply with procedures required under 
        subparagraph (A)(ii).
    (d) Selection of the Program Consortium.------
            (1) In general.--The Secretary shall select the program 
        consortium through an open, competitive process.
            (2) Members.--The program consortium may include 
        corporations, institutions of higher education, National 
        Laboratories, or other research institutions. After submitting 
        a proposal under paragraph (4), the program consortium may not 
        add members without the consent of the Secretary.
            (3) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986.
            (4) Schedule.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for the creation of the program consortium, which must be 
        submitted not less than 180 days after the date of enactment of 
        this Act. The Secretary shall select the program consortium not 
        later than 240 days after such date of enactment.
            (5) Application.--Applicants shall submit a proposal 
        including such information as the Secretary may require. At a 
        minimum, each proposal shall------
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the consortium, 
                including any provisions relating to intellectual 
                property; and -
                    (C) describe how the applicant would carry out the 
                activities of the program consortium under this 
                section.
            (6) Eligibility.--To be eligible to be selected as the 
        program consortium, an applicant must be an entity whose 
        members collectively have demonstrated capabilities in planning 
        and managing research, development, demonstration, and 
        commercial application programs in natural gas or other 
        petroleum exploration or production.
            (7) Criterion.--The Secretary may consider the amount of 
        the fee an applicant proposes to receive under subsection (g) 
        in selecting a consortium under this section.
    (e) Annual Plan.------
            (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--(A) Before drafting an annual plan under 
        this subsection, the Secretary shall solicit specific written 
        recommendations from the program consortium for each element to 
        be addressed in the plan, including those described in 
        paragraph (4). The Secretary may request that the program 
        consortium submit its recommendations in the form of a draft 
        annual plan.
            (B) The Secretary shall submit the recommendations of the 
        program consortium under subparagraph (A) to the Ultra-
        Deepwater Advisory Committee established under section 148(a) 
        for review, and such Advisory Committee shall provide to the 
        Secretary written comments by a date determined by the 
        Secretary. The Secretary may also solicit comments from any 
        other experts.
            (C) The Secretary shall consult regularly with the program 
        consortium throughout the preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to the 
        Congress and publish in the Federal Register the annual plan, 
        along with any written comments received under paragraph (2)(A) 
        and (B). The annual plan shall be transmitted and published not 
        later than 60 days after the date of enactment of an Act making 
        appropriations for a fiscal year for the program under this 
        section.
            (4) Contents.--The annual plan shall describe the ongoing 
        and prospective activities of the program under this section 
        and shall include------
                    (A) a list of any solicitations for awards that the 
                Secretary plans to issue to carry out 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).
    (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) The program consortium shall oversee 
        the implementation of awards under this subsection, consistent 
        with the annual plan under subsection (e), including disbursing 
        funds and monitoring activities carried out under such awards 
        for compliance with the terms and conditions of the awards.
            (B) Nothing in subparagraph (A) shall limit the authority 
        or responsibility of the Secretary to oversee awards, or limit 
        the authority of the Secretary to review or revoke awards.
            (C) The Secretary shall provide to the program consortium 
        the information necessary for the program consortium to carry 
        out its responsibilities under this paragraph.
    (g) Fee.------
            (1) In general.--To compensate the program consortium for 
        carrying out its activities under this section, the Secretary 
        shall provide to the program consortium a fee in an amount not 
        to exceed 7.5 percent of the amounts awarded under subsection 
        (f) for each fiscal year.
            (2) Advance.--The Secretary shall advance funds to the 
        program consortium upon selection of the consortium, which 
        shall be deducted from amounts to be provided under paragraph 
        (1).
    (h) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the purposes and 
requirements of this part. The auditor shall transmit a report annually 
to the Secretary, who shall transmit the report to Congress, along with 
a plan to remedy any deficiencies cited in the report.

SEC. 146. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES 
                    PROGRAM.

    (a) In General.--The Secretary shall carry out activities under 
section 144(b)(3), to maximize the value of the onshore unconventional 
natural gas and other petroleum resources of the United States by 
increasing the supply of such resources and by reducing the cost and 
increasing the efficiency of exploration for and production of such 
resources, while improving safety and minimizing environmental impacts.
    (b) Awards.------
            (1) In general.--The Secretary shall carry out this section 
        through awards made through an open, competitive process.
            (2) Consortia.--In carrying out paragraph (1), the 
        Secretary shall give preference to making awards to consortia.
    (c) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided under awards 
made under this section have been expended in a manner consistent with 
the purposes and requirements of this part. The auditor shall transmit 
a report annually to the Secretary, who shall transmit the report to 
Congress, along with a plan to remedy any deficiencies cited in the 
report.
    (d) Focus Areas.--Awards under this section may focus on areas 
including advanced coal-bed methane, deep drilling, natural gas 
production from tight sands, natural gas production from gas shales, 
innovative exploration and production techniques, enhanced recovery 
techniques, and environmental mitigation of unconventional natural gas 
and other petroleum resources exploration and production.
    (e) Activities by the United States Geological Survey.--The 
Secretary of the Interior, through the United States Geological Survey, 
shall, where appropriate, carry out programs of long-term research to 
complement the programs under this section.

SEC. 147. 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 144(c), a demonstration project under this part 
relating to an ultra-deepwater technology or an ultra-deepwater 
architecture may be conducted in deepwater depths.
    (c) Intellectual Property Agreements.--If an award under this part 
is made to a consortium (other than the program consortium), the 
consortium shall provide to the Secretary a signed contract agreed to 
by all members of the consortium describing the rights of each member 
to intellectual property used or developed under the award.
    (d) Technology Transfer.--Each recipient of an award under this 
part shall conduct technology transfer activities, as appropriate, and 
outreach activities pursuant to section 190.
    (e) Cost-Sharing Reduction for Independent Producers.--In applying 
the cost-sharing requirements under section 182 to an award under this 
part made solely to an independent producer of oil or gas, the 
Secretary may reduce the applicable non-Federal requirement in such 
section to a level not less than 10 percent of the cost of the project.

SEC. 148. ADVISORY COMMITTEES.

    (a) Ultra-Deepwater Advisory Committee.------
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Ultra-Deepwater Advisory 
        Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary and including------
                    (A) individuals with extensive 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 145(e)(2)(B).
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
    (b) Unconventional Resources Technology Advisory Committee.------
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Unconventional Resources 
        Technology Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary and including------
                    (A) individuals with extensive research experience 
                or operational knowledge of unconventional natural gas 
                and other petroleum resource exploration and 
                production, including independent oil and gas 
                producers;
                    (B) individuals broadly representative of the 
                affected interests in unconventional natural gas and 
                other petroleum resource exploration and production, 
                including interests in environmental protection and 
                safe operations; and
                    (C) no individuals who are Federal employees.
            (3) Duties.--The advisory committee under this subsection 
        shall advise the Secretary on the development and 
        implementation of activities under this part related to 
        unconventional natural gas and other petroleum resources.
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
    (c) Prohibition.--No advisory committee established under this 
section shall make recommendations on funding awards to consortia or 
for specific projects.

SEC. 149. LIMITS ON PARTICIPATION.

    (a) In General.--An entity shall be eligible to receive an award 
under this part only if the Secretary finds------
            (1) that the entity's participation in the program under 
        this part would be in the economic interest of the United 
        States; and
            (2) that either------
                    (A) the entity is a United States-owned entity 
                organized under the laws of the United States; or
                    (B) the entity is organized under the laws of the 
                United States and has a parent entity organized under 
                the laws of a country which affords------
                            (i) to United States-owned entities 
                        opportunities, comparable to those afforded to 
                        any other entity, to participate in any 
                        cooperative 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.
    (b) Sense of Congress and Report.--It is the Sense of the Congress 
that ultra-deepwater technology developed under this part is to be 
developed primarily for production of ultra-deepwater natural gas and 
other petroleum resources of the United States, and that this priority 
is to be reflected in the terms of grants, contracts, and cooperative 
agreements entered under this part. As part of the annual Departmental 
budget submission, the Secretary shall report on all steps taken to 
implement the policy described in this subsection.

SEC. 150. 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''.

SEC. 151. SUNSET.

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

SEC. 152. DEFINITIONS.

    In this section:
            (1) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
            (2) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 145(d).
            (3) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics under 
        section 208(b)(2) of title 18, United States Code.
            (4) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
            (5) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of technologies 
        for the exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (6) Ultra-deepwater technology.--The term ``ultra-deepwater 
        technology'' means a discrete technology that is specially 
        suited to address one or more challenges associated with the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (7) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and other 
        petroleum resource'' means natural gas and other petroleum 
        resource located onshore in an economically inaccessible 
        geological formation.

                          Subtitle F--Science

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 161. 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 
170(c)(2)(C)(ii), and including basic energy sciences, advanced 
scientific and computing research, biological and environmental 
research, fusion energy sciences, high energy physics, nuclear physics, 
and research analysis and infrastructure support:
            (1) For fiscal year 2003, $3,350,000,000.
            (2) For fiscal year 2004, $3,785,000,000.
            (3) For fiscal year 2005, $4,153,000,000.
            (4) For fiscal year 2006, $4,586,000,000.
            (5) For fiscal year 2007, $5,000,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Fusion energy sciences.--For activities of the Fusion 
        Energy Sciences Program, including activities under sections 
        162 and 163------
                    (A) for fiscal year 2003, $300,000,000;
                    (B) for fiscal year 2004, $335,000,000;
                    (C) for fiscal year 2005, $349,000,000;
                    (D) for fiscal year 2006, $362,000,000; and
                    (E) for fiscal year 2007, $377,000,000.
            (2) Spallation neutron source.------
                    (A) Construction.--For construction of the 
                Spallation Neutron Source------
                            (i) for fiscal year 2003, $210,571,000;
                            (ii) for fiscal year 2004, $124,600,000;
                            (iii) for fiscal year 2005, $79,800,000; 
                        and
                            (iv) for fiscal year 2006, $41,100,000 for 
                        completion of construction.
                    (B) Other project funding.--For other project costs 
                (including research and development necessary to 
                complete the project, preoperations costs, and capital 
                equipment related to construction) of the Spallation 
                Neutron Source, $103,279,000 for the period 
                encompassing fiscal years 2003 through 2006, to remain 
                available until expended through September 30, 2006.
            (3) Nanoscale science and engineering research.------
                    (A) Total authorization.--For activities under 
                section 169------
                            (i) for fiscal year 2003, $135,000,000;
                            (ii) for fiscal year 2004, $270,000,000;
                            (iii) for fiscal year 2005, $290,000,000;
                            (iv) for fiscal year 2006, $310,000,000; 
                        and
                            (v) for fiscal year 2007, $330,000,000.
                    (B) Research centers and major instrumentation.--
                From the amounts authorized under subparagraph (A), the 
                following sums are authorized to be appropriated to 
                carry out section 169(c):
                            (i) For fiscal year 2004, $135,000,000.
                            (ii) For fiscal year 2005, $150,000,000.
                            (iii) For fiscal year 2006, $120,000,000.
                            (iv) For fiscal year 2007, $100,000,000.
    (c) Limits on Use of Funds.--Of the funds authorized under 
subsection (b)(1), no funds shall be available for implementation of 
the plans described in sections 162 and 163.

                     PART 2--FUSION ENERGY SCIENCES

SEC. 162. PLAN FOR FUSION EXPERIMENT.

    (a) Plan for United States Fusion Experiment.--The Secretary, after 
consultation with the Fusion Energy Sciences Advisory Committee, shall 
develop a plan for construction in the United States of a magnetic 
fusion burning plasma experiment for the purpose of accelerating 
scientific understanding of fusion plasmas. The Secretary shall request 
a review of the plan by the National Academy of Sciences, and shall 
transmit the plan and the review to the Congress by July 1, 2004.
    (b) Requirements of Plan.--The plan described in subsection (a) 
shall------
            (1) address key burning plasma physics issues; and
            (2) include specific information on the scientific 
        capabilities of the proposed experiment, the relevance of these 
        capabilities to the goal of practical fusion energy, and the 
        overall design of the experiment including its estimated cost 
        and potential construction sites.
    (c) United States Participation in an International Experiment.--In 
addition to the plan described in subsection (a), the Secretary, after 
consultation with the Fusion Energy Sciences Advisory Committee, may 
also develop a plan for United States participation in an international 
burning plasma experiment for the same purpose, whose construction is 
found by the Secretary to be highly likely and where United States 
participation is cost effective relative to the cost and scientific 
benefits of a domestic experiment described in subsection (a). If the 
Secretary elects to develop a plan under this subsection, it shall 
include the information described in subsection (b), and an estimate of 
the cost of United States participation in such an international 
experiment. The Secretary shall request a review by the National 
Academy of Sciences of a plan developed under this subsection, and 
shall transmit the plan and the review to the Congress not later than 
July 1, 2004.
    (d) Authorization of Research and Development.--The Secretary, 
through the Office of Science, may conduct any research and development 
necessary to fully develop the plans described in this section.

SEC. 163. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary, after consultation with the Fusion Energy Sciences 
Advisory Committee, shall develop and transmit to the Congress a plan 
for the purpose of ensuring a strong scientific base for the Fusion 
Energy Sciences Program and to enable the experiments described in 
section 162. Such plan shall include as its objectives------
            (1) to ensure that existing fusion research facilities and 
        equipment are more fully utilized with appropriate measurements 
        and control tools;
            (2) to ensure a strengthened fusion science theory and 
        computational base;
            (3) to ensure that the selection of and funding for new 
        magnetic and inertial fusion research facilities are based on 
        scientific innovation and cost effectiveness;
            (4) to improve the communication of scientific results and 
        methods between the fusion science community and the wider 
        scientific community;
            (5) to ensure that adequate support is provided to optimize 
        the design of the magnetic fusion burning plasma experiments 
        referred to in section 162;
            (6) to ensure that inertial confinement fusion facilities 
        are utilized to the extent practicable for the purpose of 
        inertial fusion energy research and development; and
            (7) to develop a fusion-based energy source.

                   PART 3--SPALLATION NEUTRON SOURCE

SEC. 164. DEFINITION.

    For the purposes of this part, the term ``Spallation Neutron 
Source'' means Department Project 99-E-334, Oak Ridge National 
Laboratory, Oak Ridge, Tennessee.

SEC. 165. 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.

SEC. 166. LIMITATIONS.

    The total amount obligated by the Department, including prior year 
appropriations, for the Spallation Neutron Source may 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.

                         PART 4--MISCELLANEOUS

SEC. 167. FACILITY AND INFRASTRUCTURE SUPPORT FOR NONMILITARY ENERGY 
                    LABORATORIES.

    (a) Facility Policy.--The Secretary shall develop and implement a 
strategy for the nonmilitary energy laboratories and facilities of the 
Office of Science. Such strategy shall provide a 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) Transmittal.--The Secretary shall prepare and transmit, 
        along with the President's budget request to the Congress for 
        fiscal year 2005, a report containing the strategy developed 
        under subsection (a).
            (2) Contents.--For each nonmilitary energy laboratory and 
        facility, such report shall contain------
                    (A) the current priority list of proposed 
                facilities and infrastructure projects, including cost 
                and schedule requirements;
                    (B) a current ten-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 facilities and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 168. RESEARCH REGARDING PRECIOUS METAL CATALYSIS.

    From the amounts authorized to be appropriated to the Secretary 
under section 161, such sums as may be necessary for each of the fiscal 
years 2003, 2004, and 2005 may be used to carry out research in the use 
of precious metals (excluding platinum, palladium, and rhodium) in 
catalysis.

SEC. 169. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.

    (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 1 to 100 nanometers.
    (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; 
        and
            (4) coordinate research and development activities with 
        industry and other Federal agencies.
    (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) Projects.--Projects under paragraph (1) may include the 
        measurement of properties at the scale of 1 to 100 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) Collaboration.--The Secretary shall encourage 
        collaborations among institutions of higher education, 
        laboratories, and industry at facilities under this subsection.

SEC. 170. 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;
            (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) 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.
    (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)------
                            (i) by striking ``means'' and inserting 
                        ``and `networking and information technology' 
                        mean''; and
                            (ii) 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------
            ``(1) supporting fundamental research in the physical 
        sciences and engineering, and energy applications;
            ``(2) providing supercomputer access and advanced 
        communication capabilities and facilities to scientific 
        researchers; and
            ``(3) 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) in subsection (e)------
                            (i) by striking ``(1)'';
                            (ii) by striking ``the Program'' and all 
                        that follows through ``fiscal year 1996'' and 
                        inserting ``carrying out this section 
                        $285,000,000 for fiscal year 2003, $300,000,000 
                        for fiscal year 2004, $310,000,000 for fiscal 
                        year 2005, and $320,000,000 for fiscal year 
                        2006''; and
                            (iii) by striking paragraph (2).
    (d) Coordination.--The Secretary shall ensure that the program 
under this section is integrated and consistent with------
            (1) the Accelerated Strategic Computing Initiative of the 
        National Nuclear Security Administration; and
            (2) other national efforts related to advanced scientific 
        computing for science and engineering.
    (e) Report.--(1) Before undertaking any new initiative to develop 
new advanced architecture for high-speed computing, the Secretary, 
through the Director of the Office of Science, shall transmit a report 
to the 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) 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 the Congress.

                   Subtitle G--Energy and Environment

SEC. 171. AUTHORIZATION OF APPROPRIATIONS.

    (a) United States-Mexico Energy Technology Cooperation.--The 
following sums are authorized to be appropriated to the Secretary to 
carry out activities under section 172:
            (1) For fiscal year 2003, $5,000,000.
            (2) For fiscal year 2004, $5,000,000.
            (3) For fiscal year 2005, $6,000,000.
            (4) For fiscal year 2006, $6,000,000.
            (5) For fiscal year 2007, $6,000,000.
    (b) Waste Reduction and Use of Alternatives.--There are authorized 
to be appropriated to the Secretary to carry out activities under 
section 173, $500,000 for fiscal year 2003.

SEC. 172. 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.
    (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.

SEC. 173. WASTE REDUCTION AND USE OF ALTERNATIVES.

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

SEC. 174. 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. 175. PETROLEUM COKE GASIFICATION.

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

SEC. 176. OTHER BIOPOWER AND BIOENERGY.

    The Secretary shall conduct a program to assist in the planning, 
design, and implementation of projects to convert rice straw, rice 
hulls, sugarcane bagasse, forest thinnings, and barley grain into 
biopower and biofuels.

SEC. 177. TECHNOLOGY TRANSFER.

    There are authorized to be appropriated to the Secretary $1,000,000 
for a competitively awarded contract, to an entity with offshore oil 
and gas management experience, for the transfer of technologies 
relating to ultra-deepwater research and development developed at the 
Naval Surface Warfare Center, Carderock Division.

SEC. 178. 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-FC22-91PC99544 on such terms and conditions as the 
Secretary determines, including interest rates and upfront payments.

                         Subtitle H--Management

SEC. 181. AVAILABILITY OF FUNDS.

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

SEC. 182. 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.
    (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.

SEC. 183. 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. 184. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory Boards.--(1) 
The Secretary shall establish one or more advisory boards to review 
Department research, development, demonstration, and commercial 
application programs in the following areas:
            (A) Energy efficiency.
            (B) Renewable energy.
            (C) Nuclear energy.
            (D) Fossil energy.
    (2) 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) Utilization of Existing Committees.--The Secretary shall 
continue to use the scientific program advisory committees chartered 
under the Federal Advisory Committee Act by the Office of Science to 
oversee research and development programs under that Office.
    (c) Membership.--Each advisory board under this section shall 
consist of persons with appropriate expertise representing a diverse 
range of interests.
    (d) Meetings and Purposes.--Each advisory board under this section 
shall meet at least semi-annually 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 102, 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 102, 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 the Congress reports containing the 
results of all such reviews and assessments.

SEC. 185. 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 coordinate the activities of the 
Technology Transfer Working Group, and shall oversee the expenditure of 
funds allocated to the Technology Transfer Working Group, and shall 
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.

SEC. 186. 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------
                    (A) institutions of higher education;
                    (B) technology-related business concerns;
                    (C) nonprofit institutions; and
                    (D) agencies of State, tribal, or local 
                governments,
        that can support departmental missions at the National 
        Laboratories or single-purpose research facilities.
    (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) Minimum participants.--Each project shall at a minimum 
        include one of the following entities:
                    (A) A business.
                    (B) An institution of higher education.
                    (C) A nonprofit institution.
                    (D) An agency of a State, local, or tribal 
                government.
            (2) Cost sharing.------
                    (A) Minimum amount.--Not less than 50 percent of 
                the costs of each project funded under this section 
                shall be provided from non-Federal sources.
                    (B) Qualified funding and resources.--(i) 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.
                    (ii) Independent research and development expenses 
                of Government contractors that qualify for 
                reimbursement under section 31-205-18(e) of the Federal 
                Acquisition Regulations issued pursuant to section 
                25(c)(1) of the Office of Federal Procurement Policy 
                Act (41 U.S.C. 421(c)(1)) may be credited towards costs 
                paid by non-Federal sources to a project, if the 
                expenses meet the other requirements of this section.
                    (iii) No funds or other resources expended either 
                before the start of a project under this section or 
                outside the project's scope of work shall be credited 
                toward the costs paid by the non-Federal sources to the 
                project.
            (3) Competitive selection.--All projects under this section 
        shall be competitively selected using procedures determined by 
        the Secretary.
            (4) Accounting standards.--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) Limitations.--No Federal funds shall be made available 
        under this section for------
                    (A) construction; or
                    (B) any project for more than 5 years.
    (e) Selection Criteria.------
            (1) Threshold funding criteria.--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) Additional criteria.--The Secretary shall consider the 
        following criteria in selecting a project to receive Federal 
        funds:
                    (A) The potential of the project to succeed, based 
                on its technical merit, team members, management 
                approach, resources, and project plan.
                    (B) The potential of the project to promote the 
                development of a commercially sustainable technology 
                cluster, 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.
                    (C) 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 departmental mission or the commercial 
                development of technological innovations made at the 
                participating National Laboratory or single-purpose 
                research facility.
                    (D) The commitment shown by non-Federal 
                organizations to the project, based primarily on the 
                nature and amount of the financial and other resources 
                they will risk on the project.
                    (E) 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.
                    (F) The extent of participation in the project by 
                agencies of State, tribal, or local governments that 
                will make substantive contributions to achieving the 
                goals of the project.
                    (G) 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.
                    (H) 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 January 1, 2005, 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 group of------
                    (A) technology-related business concerns;
                    (B) institutions of higher education; or
                    (C) other 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------
                    (A) conducts scientific or engineering research;
                    (B) develops new technologies;
                    (C) manufactures products based on new 
                technologies; or
                    (D) 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 2003 and 2004.

SEC. 187. 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 in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
            (3) make available to small business concerns training, 
        mentoring, and clear, up-to-date information on how to 
        participate in the procurement and collaborative research, 
        including how to submit effective proposals, and information 
        related to alternative approaches to resolution of disputes 
        involving intellectual property rights and other technology 
        transfer matters;
            (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 concern's 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)).

SEC. 188. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

    Not later than 2 years after the date of enactment of this section, 
the Secretary shall transmit a report to the 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.

SEC. 189. NATIONAL ACADEMY OF SCIENCES REPORT.

    Within 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 research, 
                development, demonstration, and commercial application 
                cycle for 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) report to the Congress on recommendations developed as 
        a result of the study.

SEC. 190. 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, 
facility planners and managers, State and local governments, and other 
entities.

SEC. 191. LIMITS ON USE OF FUNDS.

    (a) Competitive Procedure Requirement.--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.
    (b) Congressional Notice.--At least 2 months before a contract 
award for which the Secretary intends to grant such a waiver, the 
Secretary shall submit to the Congress a report notifying the Congress 
of the waiver and setting forth the reasons for the waiver.

SEC. 192. 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 the Congress a report explaining how such amounts will be 
distributed among the authorizations contained in this title.
    (b) Prohibition.--(1) 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 
the Congress a report described in subsection (c) and a period of 30 
days has elapsed after such committees receive the report.
    (2) 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. 193. 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. 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.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 201. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
                    TECHNOLOGY PROGRAMS.

    (a) Reconfiguration of Position of Director of the Office of 
Science.--Section 209 of the Department of Energy Organization Act (41 
U.S.C. 7139) is amended to read as follows:
                          ``office of science
    ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary of Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Assistant Secretary of Science shall be in addition to 
the Assistant Secretaries provided for under section 203 of this Act.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
    (b) Additional Assistant Secretary Position To Enable Improved 
Management of Nuclear Energy Issues.--(1) Section 203(a) of the 
Department of Energy Organization Act (42 U.S.C. 7133(a)) is amended by 
striking ``There shall be in the Department six Assistant Secretaries'' 
and inserting ``Except as provided in section 209, there shall be in 
the Department seven Assistant Secretaries''.
    (2) It is the sense of the Congress that the leadership for 
departmental missions in nuclear energy should be at the Assistant 
Secretary level.
    (c) Technical and Conforming Amendments.--(1) Section 5315 of title 
5, United States Code, is amended by------
            (A) striking ``Director, Office of Science, Department of 
        Energy.''; and
            (B) striking ``Assistant Secretaries of Energy (6)'' and 
        inserting ``Assistant Secretaries of Energy (8)''.
    (2) 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.''.

                     TITLE III--CLEAN SCHOOL BUSES

SEC. 301. ESTABLISHMENT OF PILOT PROGRAM.

    (a) Establishment.--The Secretary of Energy, in consultation with 
the Administrator of the Environmental Protection Agency, shall 
establish a pilot program for awarding grants on a competitive basis to 
eligible entities for the demonstration and commercial application of 
alternative fuel school buses and ultra-low sulfur diesel school buses.
    (b) Requirements.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall establish and publish in the 
Federal register grant requirements on eligibility for assistance, and 
on implementation of the program established under subsection (a), 
including certification requirements to ensure compliance with this 
title.
    (c) Solicitation.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall solicit proposals for grants 
under this section.
    (d) Eligible Recipients.--A grant shall be awarded under this 
section only------
            (1) to a local or State governmental entity responsible for 
        providing school bus service to one or more public school 
        systems or responsible for the purchase of school buses; or
            (2) to a contracting entity that provides school bus 
        service to one or more public school systems, if the grant 
        application is submitted jointly with the school system or 
        systems which the buses will serve.
    (e) Types of Grants.------
            (1) In general.--Grants under this section shall be for the 
        demonstration and commercial application of technologies to 
        facilitate the use of alternative fuel school buses and ultra-
        low sulfur diesel school buses in lieu of buses manufactured 
        before model year 1977 and diesel-powered buses manufactured 
        before model year 1991.
            (2) No economic benefit.--Other than the receipt of the 
        grant, a recipient of a grant under this section may not 
        receive any economic benefit in connection with the receipt of 
        the grant.
            (3) Priority of grant applications.--The Secretary shall 
        give priority to awarding grants to applicants who can 
        demonstrate the use of alternative fuel buses and ultra-low 
        sulfur diesel school buses in lieu of buses manufactured before 
        model year 1977.
    (f) Conditions of Grant.--A grant provided under this section shall 
include the following conditions:
            (1) All buses acquired with funds provided under the grant 
        shall be operated as part of the school bus fleet for which the 
        grant was made for a minimum of 5 years.
            (2) Funds provided under the grant may only be used------
                    (A) to pay the cost, except as provided in 
                paragraph (3), of new alternative fuel school buses or 
                ultra-low sulfur diesel school buses, including State 
                taxes and contract fees; and
                    (B) to provide------
                            (i) up to 10 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will only be available to the 
                        grant recipient; and
                            (ii) up to 15 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will be available to the grant 
                        recipient and to other bus fleets.
            (3) The grant recipient shall be required to provide at 
        least the lesser of 15 percent of the total cost of each bus 
        received or $15,000 per bus.
            (4) In the case of a grant recipient receiving a grant to 
        demonstrate ultra-low sulfur diesel school buses, the grant 
        recipient shall be required to provide documentation to the 
        satisfaction of the Secretary that diesel fuel containing 
        sulfur at not more than 15 parts per million is available for 
        carrying out the purposes of the grant, and a commitment by the 
        applicant to use such fuel in carrying out the purposes of the 
        grant.
    (g) Buses.--Funding under a grant made under this section may be 
used to demonstrate the use only of new alternative fuel school buses 
or ultra-low sulfur diesel school buses------
            (1) with a gross vehicle weight of greater than 14,000 
        pounds;
            (2) that are powered by a heavy duty engine;
            (3) that, in the case of alternative fuel school buses 
        manufactured in model years 2003 through 2006, 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
            (4) that, in the case of ultra-low sulfur diesel school 
        buses, emit not more than------
                    (A) for buses manufactured in 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
                    (B) for buses manufactured in model years 2004 
                through 2006, 2.5 grams per brake horsepower-hour of 
                nonmethane hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate matter,
        except that under no circumstances shall buses be acquired 
        under this section that emit nonmethane hydrocarbons, oxides of 
        nitrogen, or particulate matter at a rate greater than the best 
        performing technology of the same class of ultra-low sulfur 
        diesel school buses commercially available at the time the 
        grant is made.
    (h) Deployment and Distribution.--The Secretary shall seek to the 
maximum extent practicable to achieve nationwide deployment of 
alternative fuel school buses and ultra-low sulfur diesel school buses 
through the program under this section, and shall ensure a broad 
geographic distribution of grant awards, with a goal of no State 
receiving more than 10 percent of the grant funding made available 
under this section for a fiscal year.
    (i) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for any fiscal year for the acquisition of 
ultra-low sulfur diesel school buses.
    (j) Annual Report.--Not later than January 31 of each year, the 
Secretary of Energy shall provide a report evaluating implementation of 
the program under this title to the Congress. Such report shall include 
the total number of grant applications received, the number and types 
of alternative fuel buses and ultra-low sulfur diesel school buses 
requested in grant applications, a list of grants awarded and the 
criteria used to select the grant recipients, certified engine emission 
levels of all buses purchased under the program, and any other 
information the Secretary considers appropriate.
    (k) Definitions.--For purposes of this section------
            (1) the term ``alternative fuel school bus'' means a bus 
        powered substantially by electricity (including electricity 
        supplied by a fuel cell), or by liquefied natural gas, 
        compressed natural gas, liquefied petroleum gas, hydrogen, 
        propane, or methanol or ethanol at no less than 85 percent by 
        volume; and
            (2) the term ``ultra-low sulfur diesel school bus'' means a 
        school bus powered by diesel fuel which contains sulfur at not 
        more than 15 parts per million.

SEC. 302. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.

    (a) Establishment of Program.--The Secretary shall establish a 
program for entering into cooperative agreements with private sector 
fuel cell bus developers for the development of fuel cell-powered 
school buses, and subsequently with not less than 2 units of local 
government using natural gas-powered school buses and such private 
sector fuel cell bus developers to 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) Funding.--No more than $25,000,000 of the amounts authorized 
under section 303 may be used for carrying out this section for the 
period encompassing fiscal years 2004 through 2006.
    (d) Reports to Congress.--Not later than 3 years after the date of 
the enactment of this Act, and not later than October 1, 2006, the 
Secretary shall transmit to the Congress a report that------
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school buses; 
        and
            (2) assesses the results of the development and 
        demonstration program under this section.

SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for 
carrying out this title, to remain available until expended------
            (1) $60,000,000 for fiscal year 2003;
            (2) $70,000,000 for fiscal year 2004;
            (3) $80,000,000 for fiscal year 2005; and
            (4) $90,000,000 for fiscal year 2006.

           TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES

SEC. 401. DEFINITIONS.

    For the purposes of this title, the following definitions apply:
            (1) Alternative fueled vehicle.--The term ``alternative 
        fueled vehicle'' means a vehicle propelled solely on an 
        alternative fuel as defined in section 301 of the Energy Policy 
        Act (42 U.S.C. 13211), except the term does not include any 
        vehicle that the Secretary determines, by rule, does not yield 
        substantial environmental benefits over a vehicle operating 
        solely on gasoline or diesel derived from fossil fuels.
            (2) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means a vehicle propelled by one or more cells that convert 
        chemical energy directly into electricity by combining oxygen 
        with hydrogen fuel which is stored on board the vehicle in any 
        form and may or may not require reformation prior to use.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' means a 
        medium or heavy duty vehicle propelled by an internal 
        combustion engine using any combustible fuel and an onboard 
        rechargeable battery storage system.
            (4) Neighborhood electric vehicle.--The term ``neighborhood 
        electric vehicle'' means a motor vehicle that qualifies as 
        both------
                    (A) a low-speed vehicle, as such term is defined in 
                section 571.3(b) of title 49, Code of Federal 
                Regulations; and
                    (B) a zero-emission vehicle, as such term is 
                defined in section 86.1702-99 of title 40, Code of 
                Federal Regulations.
            (5) Pilot program.--The term ``pilot program'' means the 
        competitive grant program established under section 402.
            (6) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
        sulfur diesel vehicle'' means a vehicle manufactured in model 
        years 2004 through 2006 powered by a heavy-duty diesel engine 
        that------
                    (A) is fueled by diesel fuel which contains sulfur 
                at not more than 15 parts per million; and
                    (B) emits not more than the lesser of------
                            (i) for vehicles manufactured in------
                                    (I) model 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 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. 402. PILOT PROGRAM.

    (a) Establishment.--The Secretary shall establish a competitive 
grant pilot program, to be administered through the Clean Cities 
Program of the Department of Energy, to provide not more than 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.--Grants under this section may be used for the 
following purposes:
            (1) The acquisition of alternative fueled vehicles or fuel 
        cell vehicles, including------
                    (A) passenger vehicles including neighborhood 
                electric vehicles; and
                    (B) motorized two-wheel bicycles, scooters, or 
                other vehicles for use by law enforcement personnel or 
                other State or local government or metropolitan 
                transportation authority employees.
            (2) The acquisition of alternative fueled vehicles, hybrid 
        vehicles, or fuel cell vehicles, including------
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or services; and
                    (C) ground support vehicles at public airports, 
                including vehicles to carry baggage or push airplanes 
                away from terminal gates.
            (3) The acquisition of ultra-low sulfur diesel vehicles.
            (4) Infrastructure necessary to directly support an 
        alternative fueled vehicle, fuel cell vehicle, or hybrid 
        vehicle project funded by the grant, including fueling and 
        other support equipment.
            (5) Operation and maintenance of vehicles, infrastructure, 
        and equipment acquired as part of a project funded by the 
        grant.
    (c) Applications.------
            (1) Requirements.--The Secretary shall issue requirements 
        for applying for grants under the pilot program. At a minimum, 
        the Secretary shall require that applications be submitted by 
        the head of a State or local government or a metropolitan 
        transportation authority, or any combination thereof, and a 
        registered participant in the Clean Cities Program of the 
        Department of Energy, and shall include------
                    (A) at least one project to enable passengers or 
                goods to be transferred directly from vehicles acquired 
                under this section to a local, regional, or national 
                transportation system;
                    (B) a description of the projects proposed in the 
                application, including how they meet the requirements 
                of this title;
                    (C) an estimate of the ridership or degree of use 
                of the projects proposed in the application;
                    (D) an estimate of the air pollution emissions 
                reduced and fossil fuel displaced as a result of the 
                projects proposed in the application, and a plan to 
                collect and disseminate environmental data, related to 
                the projects to be funded under the grant, over the 
                life of the projects;
                    (E) a description of how the projects proposed in 
                the application will be sustainable without Federal 
                assistance after the completion of the term of the 
                grant;
                    (F) a complete description of the costs of each 
                project proposed in the application, including 
                acquisition, construction, operation, and maintenance 
                costs over the expected life of the project;
                    (G) a description of which costs of the projects 
                proposed in the application will be supported by 
                Federal assistance under this title; and
                    (H) documentation to the satisfaction of the 
                Secretary that diesel fuel containing sulfur at not 
                more than 15 parts per million is available for 
                carrying out the projects, and a commitment by the 
                applicant to use such fuel in carrying out the 
                projects.
            (2) Partners.--An applicant under paragraph (1) may carry 
        out projects under the pilot program in partnership with public 
        and private entities.
    (d) Selection Criteria.--In evaluating applications under the pilot 
program, the Secretary shall consider each applicant's previous 
experience with similar projects and shall give priority consideration 
to applications that------
            (1) are most likely to maximize protection of the 
        environment;
            (2) demonstrate the greatest commitment on the part of the 
        applicant to ensure funding for the proposed projects and the 
        greatest likelihood that each project proposed in the 
        application will be maintained or expanded after Federal 
        assistance under this title is completed; and
            (3) exceed the minimum requirements of subsection 
        (c)(1)(A).
    (e) Pilot Project Requirements.------
            (1) Maximum amount.--The Secretary shall not provide more 
        than $20,000,000 in Federal assistance under the pilot program 
        to any applicant.
            (2) Cost sharing.--The Secretary shall not provide more 
        than 50 percent of the cost, incurred during the period of the 
        grant, of any project under the pilot program.
            (3) Maximum period of grants.--The Secretary shall not fund 
        any applicant under the pilot program for more than 5 years.
            (4) Deployment and distribution.--The Secretary shall seek 
        to the maximum extent practicable to ensure a broad geographic 
        distribution of project sites.
            (5) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the pilot program are 
        transferred among the pilot program participants and to other 
        interested parties, including other applicants that submitted 
        applications.
    (f) Schedule.------
            (1) Publication.--Not later than 3 months after the date of 
        the enactment of this Act, the Secretary shall publish in the 
        Federal Register, Commerce Business Daily, and elsewhere as 
        appropriate, a request for applications to undertake projects 
        under the pilot program. Applications shall be due within 6 
        months of the publication of the notice.
            (2) Selection.--Not later than 6 months after the date by 
        which applications for grants are due, the Secretary shall 
        select by competitive, peer review all applications for 
        projects to be awarded a grant under the pilot program.
    (g) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for the acquisition of ultra-low sulfur 
diesel vehicles.

SEC. 403. REPORTS TO CONGRESS.

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

SEC. 404. AUTHORIZATION OF APPROPRIATIONS.

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

                          TITLE V--CLEAN COAL

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--Except as provided in subsection 
(b), there are authorized to be appropriated to the Secretary to carry 
out the activities authorized by this title $200,000,000 for each of 
the fiscal years 2003 through 2011, to remain available until expended.
    (b) Limit on Use of Funds.--Notwithstanding subsection (a), no 
funds may be used to carry out the activities authorized by this title 
after September 30, 2003, unless the Secretary has transmitted to the 
Committee on Energy and Commerce and the Committee on Science of the 
House of Representatives, and to the Senate, the report required by 
this subsection and one month has elapsed since that transmission. The 
report shall include, with respect to subsection (a), a 10-year plan 
containing------
            (1) a detailed assessment of whether the aggregate funding 
        levels provided under subsection (a) are the appropriate 
        funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all activities 
        expected to be undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued; and
            (4) a detailed description of how the program will avoid 
        problems enumerated in General Accounting Office reports on the 
        Clean Coal Technology Program, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.
    (c) Applicability.--Subsection (b) shall not apply to any project 
begun before September 30, 2003.

SEC. 502. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding under this 
title for any project that does not advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that are in operation or have been demonstrated as of the 
date of the enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.------
            (1) Gasification.--(A) In allocating the funds made 
        available under section 501(a), the Secretary shall ensure that 
        at least 80 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) The Secretary shall set technical milestones specifying 
        emissions levels that coal gasification projects must be 
        designed to and reasonably expected to achieve. The milestones 
        shall get more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2020 coal 
        gasification projects able------
                    (i) to remove 99 percent of sulfur dioxide;
                    (ii) to emit no more than .05 lbs of NOx per 
                million BTU;
                    (iii) to achieve substantial reductions in mercury 
                emissions; and
                    (iv) to achieve a thermal efficiency of------
                            (I) 60 percent for coal of more than 9,000 
                        Btu;
                            (II) 59 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (III) 57 percent for coal of less than 
                        7,000 Btu.
            (2) Other projects.--For projects not described in 
        paragraph (1), the Secretary shall set technical milestones 
        specifying emissions levels that the projects must be designed 
        to and reasonably expected to achieve. The milestones shall get 
        more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2010 projects able--
        ----
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of NOx per million 
                BTU;
                    (C) to achieve substantial reductions in mercury 
                emissions; and
                    (D) to achieve a thermal efficiency of------
                            (i) 45 percent for coal of more than 9,000 
                        Btu;
                            (ii) 44 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (iii) 42 percent for coal of less than 
                        7,000 Btu.
            (3) Consultation.--Before setting the technical milestones 
        under paragraphs (1)(B) and (2), the Secretary shall consult 
        with the Administrator of the Environmental Protection Agency 
        and interested entities, including coal producers, industries 
        using coal, organizations to promote coal or advanced coal 
        technologies, environmental organizations, and organizations 
        representing workers.
            (4) Existing units.--In the case of projects at existing 
        units, in lieu of the thermal efficiency requirements set forth 
        in paragraph (1)(B)(iv) and (2)(D), the projects shall be 
        designed to achieve an overall thermal design efficiency 
        improvement compared to the efficiency of the unit as operated, 
        of not less than------
                    (A) 7 percent for coal of more than 9,000 Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                    (C) 4 percent for coal of less than 7,000 Btu.
            (5) Permitted uses.--In allocating funds made available 
        under section 501, the Secretary may fund projects that 
        include, as part of the project, the separation and capture of 
        carbon dioxide.
    (c) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient has documented to the 
satisfaction of the Secretary that------
            (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
            (2) the recipient will provide sufficient information to 
        the Secretary for the Secretary to ensure that the award funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of subsections (a), 
(b), and (c) and are likely to------
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements; 
        and
            (3) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of the enactment 
        of this Act.
    (e) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary shall not exceed 50 
percent.
    (f) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act, achievable for purposes of section 169 of that 
Act, or achievable in practice for purposes of section 171 of that Act 
solely by reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving assistance 
under this title.

SEC. 503. REPORT.

    Not later than 1 year after the date of the enactment of this Act, 
and once every 2 years thereafter through 2011, the Secretary, in 
consultation with other appropriate Federal agencies, shall transmit to 
the Committee on Energy and Commerce and the Committee on Science of 
the House of Representatives, and to the Senate, a report describing--
----
            (1) the technical milestones set forth in section 502 and 
        how those milestones ensure progress toward meeting the 
        requirements of subsections (b)(1)(B) and (b)(2) of section 
        502; and
            (2) the status of projects funded under this title.

SEC. 504. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 501, the Secretary 
shall award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that can 
show the greatest potential for advancing new clean coal technologies.
                                 
                     Section-by-Section Analysis of

 H.R. 238, Energy Research, Development, Demonstration, and Commercial 
                        Application Act of 2003

Summary: The five titles of the Energy R&D; Bill introduced at the start 
of the 108th Congress comprise the Science Committee's portions of H.R. 
4 that were largely agreed to by the Energy Conferees in October 2002. 
The total R&D; authorization is nearly $33 billion, which represents 
significant but measured growth in research, development, demonstration 
and commercial application.

Sec. 1. Short Title

    This Act may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003.''

                   TITLE I--RESEARCH AND DEVELOPMENT

Sec. 101. Purposes

    This section lists six purposes relating energy research to energy 
savings and production, national security, environmental impacts, and 
economic growth.

Sec. 102. Goals

    This section describes quantitative goals for the various 
Department of Energy (``Department'') programs in energy efficiency, 
distributed energy and electric energy systems, renewable energy, 
nuclear energy, and fossil energy. It provides for periodic reviews of 
the goals. In addition, it specifies that stated goals do not create or 
limit any authority for federal agencies or create any new requirements 
and cannot be used to support the establishment of regulatory standards 
or requirements.

Sec. 103. Definitions

    This section defines various terms commonly used in the bill.

                     Subtitle A--Energy Efficiency

PART 1--AUTHORIZATION OF APPROPRIATIONS

Sec. 104. Energy Efficiency

    This section authorizes $3.51 billion for Energy Efficiency 
programs at the Department for fiscal years 2003-2007, including 
programs that are authorized in the Parts of this Subtitle that follow. 
Of this amount, $210 million is for a Next Generation Lighting 
Initiative, $26 million for a Secondary Electric Vehicle Battery 
Program and $125 million for the Energy Efficiency Science Initiative. 
This section also provides an additional $250 million authorization for 
fiscal years 2008 through 2012 for the Lighting Initiative and includes 
a subsection preventing the use of funds for developing energy 
efficiency regulations or for programs funded under other authorities.

PART 2--LIGHTING SYSTEMS

Sec. 105. Next Generation Lighting Initiative

    This section requires the Secretary of Energy (``Secretary'') to 
carry out a Next Generation Lighting Initiative to be jointly funded by 
industry and the Federal Government and largely carried out by a 
competitively selected industry consortium. The section specifies 
government and private sector roles.

PART 3--BUILDINGS

Sec. 106. National Building Performance Initiative

    This section requires the Director of the Office of Science and 
Technology Policy to establish of an interagency group to develop a 
plan for a public-private program to improve building performance.

PART 4--VEHICLES

Sec. 107. Definitions

    This section provides definitions for section 108, Establishment of 
Secondary Electric Battery Use Program.

Sec. 108. Establishment of Secondary Electric Battery Use Program

    This section requires the Secretary to establish a research program 
to facilitate the reuse of batteries from electric vehicles for other 
purposes, such as bulk power and commercial power storage.

Sec. 109. Advanced Vehicle Technology

    This section requires the Secretary to expand research into fuel 
cells, emission control systems, batteries and power electronics for 
hybrid vehicle technologies, combustion and after-treatment 
technologies, and other advanced fuels and materials that could improve 
vehicle fuel economy.

PART 5--ENERGY EFFICIENCY SCIENCE INITIATIVE

Sec. 110. Energy Efficiency Science Initiative

    This section requires the Secretary to establish an energy 
efficiency research program run jointly by the Director of the Office 
of Science and the Assistant Secretary for Energy Efficiency and 
Renewable Energy.

       Subtitle B--Distributed Energy and Electric Energy Systems

PART 1--AUTHORIZATION OF APPROPRIATIONS

Sec. 111. Distributed Energy and Electric Energy Systems

    This section authorizes $1.01 billion for the Distributed Energy 
and Electric Energy Systems programs for fiscal years 2003-2007, 
including programs that are authorized in the Parts of this Subtitle 
that follow.

PART 2--DISTRIBUTED POWER

Sec. 112. Strategy

    This section requires the Secretary to ensure completion of a 
hybrid distributed power research strategy to be transmitted to 
Congress within one year.

Sec. 113. High Power Density Industry Program

    This section requires the Secretary to establish a research program 
to improve the energy efficiency of facilities such as data centers and 
``server farms.''

Sec. 114. Micro-Cogeneration Energy Technology

    This section requires the Secretary to make competitive merit-based 
grants to consortia for the development of residential combined heat 
and power technologies.

PART 3--TRANSMISSION SYSTEMS

Sec. 115. Transmission Infrastructure Systems Research, Development, 
                    Demonstration, and Commercial Application

    This section requires the Secretary to develop and implement a 
research, development, demonstration and commercial application program 
to promote improved efficiency and reliability of electrical 
transmission systems.

                      Subtitle C--Renewable Energy

PART 1--AUTHORIZATION OF APPROPRIATIONS

Sec. 121. Renewable Energy

    This section authorizes $2.53 billion for the Renewable Energy 
Systems programs at the Department for fiscal years 2003-2007, 
including programs that are authorized in the Parts of this Subtitle 
that follow. Of this amount, $756 million is authorized for Bioenergy.

PART 2--BIOENERGY

Sec. 122. Bioenergy Programs

    This section requires that the Secretary conduct a research, 
development, demonstration, and commercial application program on 
biopower and biofuels.

PART 3--HYDROGEN

Sec. 123. Short Title

    This section provides a short title to the hydrogen sections that 
follow.

Sec. 124. Matsunaga Act Amendment

    This section amends the text of the ``Matsunaga Hydrogen Research, 
Development and Demonstration of 1990 Act (42 U.S.C. 12401).'' It 
contains new requirements for reports to Congress, including research 
plans, technology assessments, and recommendations for program 
improvements. The section also specifies areas of focus for hydrogen 
research, including the production, storage, and transportation of 
hydrogen. It authorizes the demonstration of critical hydrogen 
technologies and facilitates the transfer of technology to the private 
sector. The section establishes the Hydrogen Technical Advisory 
Committee to advise the Secretary on the implementation of the Act, and 
calls for the National Academy of Sciences to review the research 
conducted under the Act. The section also authorizes appropriations of 
$300 million for fiscal years 2003-2007 out of funds authorized in 
Section 121.

Sec. 125. Hydrogen Future Act Amendment

    This section amends title II of the ``Hydrogen Future Act of 1996'' 
(42 U.S.C. 12403) to authorize programs to demonstrate the use of fuel 
cells in Federal, State, and local government applications, including 
stationary and transportation applications. It establishes an 
interagency task force on hydrogen and authorizes $135 million for 
fiscal years 2003-2007 out of funds authorized in Section 121.

PART 4--MISCELLANEOUS PROJECTS

Sec. 126. Miscellaneous Projects

    This section requires the Secretary to establish programs of 
research, development, demonstration, and commercial application into 
ocean energy (including wave energy), hybrid wind-coal gasification 
energy technologies, combined use of renewable energy technologies and 
hydrogen carrier fuels.

                       Subtitle D--Nuclear Energy

PART 1--AUTHORIZATION OF APPROPRIATIONS

Sec. 131. Nuclear Energy

    This section authorizes $1.98 billion for fiscal years 2003-2007 
for the nuclear energy research, development, demonstration, and 
commercial application programs, including programs that are authorized 
in the Parts of this Subtitle that follow. In fiscal years 2003-2007, 
it authorizes $1.33 billion for core programs and $650 million for 
infrastructure support programs. Within the amount authorized for core 
programs, $533 million is authorized for advanced fuel recycling and 
$190 million is authorized for university programs.

PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS

Sec. 132. Nuclear Energy Research Programs

    This section authorizes five nuclear energy research programs at 
the Department: the Nuclear Energy Research Initiative, the Nuclear 
Energy Plant Optimization Program, the Nuclear Power 2010 Program, the 
Generation IV Nuclear Energy Systems Initiative and research on Reactor 
Production of Hydrogen. It also authorizes Infrastructure Support.

PART 3--ADVANCED FUEL RECYCLING

Sec. 133. Advanced Fuel Recycling Program

    This section authorizes a nuclear fuel recycling technology R&D; 
program on proliferation-resistant and passively safe technologies. 
This research will focus on technologies that also minimize health and 
environmental impacts.

PART 4--UNIVERSITY PROGRAMS

Sec. 134. University Nuclear Science and Engineering Support

    This section authorizes new and existing programs to promote 
university research and education in nuclear engineering.

                       Subtitle E--Fossil Energy

PART 1--AUTHORIZATION OF APPROPRIATIONS

Sec. 141. Fossil Energy

    This section authorizes $2.71 billion for fiscal years 2003-2007 to 
carry out the fossil energy, research, development, demonstration, and 
commercial application programs of the Department, including programs 
that are authorized in the Parts of this Subtitle that follow. Of this 
amount, this section authorizes $140 million for proton exchange 
membrane fuel cells, $27 million for coal mining technologies and $125 
million for Office of Arctic Energy programs. This section also 
authorizes $100 million in fiscal years 2008-2012 for Office of Arctic 
Energy programs. This section also authorizes funding for the ultra-
deepwater and unconventional resources programs, with the funds coming 
from 7.5 percent of the royalties, rents, and bonuses derived from 
federal onshore and offshore oil and gas leases, with priority given to 
prior distributions required by law; such funding would be subject to 
appropriations Acts.

PART 2--RESEARCH PROGRAMS

Sec. 142. Fossil Energy Research Programs

    This section requires the Secretary to conduct a program of fossil 
energy research, development, demonstration and commercial application, 
including research on coal, oil, natural gas, and fuel cells. It also 
includes a subsection requiring a report on natural gas and oil 
deposits off of the Louisiana and Texas coasts every 2 years.

Sec. 143. Research and Development for Coal Mining Technologies

    This section requires the Secretary to establish a program of 
research, development, demonstration and commercial application with 
industry and universities to develop new mining technologies.

PART 3--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
PETROLEUM RESOURCES

Sec. 144. Program Authority

    This section requires the Secretary to conduct programs of 
research, development, demonstration and commercial application on 
ultra-deepwater and unconventional natural gas and other petroleum 
resource exploration, production and environmental mitigation. It also 
limits the programs to work in areas currently eligible to be leased 
for exploration and requires consultation with the Secretary of the 
Interior.

Sec. 145. Ultra-Deepwater Program

    This section describes how the ultra-deepwater program should be 
carried-out, assigning responsibilities to the Secretary and a private 
consortium selected by the Secretary to help manage the program. It 
also establishes procedures to address conflicts of interest.

Sec. 146. Unconventional Natural Gas And Other Petroleum Resources 
                    Program

    This section requires the Secretary to establish a separate 
research, development, demonstration and commercial application program 
for onshore unconventional oil and gas exploration for resources in 
economically inaccessible geographical areas.

Sec. 147. Additional Requirements for Awards

    This section places requirements on applicants to the Ultra-
deepwater program to describe the intended commercial use of any 
technology to be demonstrated under the Act, and provides flexibility 
concerning the location of demonstration projects in deepwater depths 
of less than 1,500 meters and cost sharing for independent producers.

Sec. 148. Advisory Committees

    This section requires the Secretary to establish two separate 
advisory committees for ultra-deepwater and unconventional resource 
programs and specifies their duties and compensation levels for their 
members.

Sec. 149. Limits on Participation

    This section provides for limits on the entities entitled to 
participate in the program.

Sec. 150. Fund

    This section establishes in the Treasury an Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Resources Fund.

Sec. 151. Sunset

    The section terminates the ultra-deepwater and unconventional 
research programs on September 30, 2010.

Sec. 152. Definitions

    This section provides seven definitions for terms used in this 
Part.

                          Subtitle F--Science

PART 1--AUTHORIZATION OF APPROPRIATIONS

Sec. 161. Science

    This section authorizes $20.9 billion for fiscal years 2003-2007 to 
carry out the research, development, demonstration, and commercial 
application programs of the Office of Science, including programs that 
are authorized in the Parts of this Subtitle that follow. From this 
amount, the section authorizes $1.72 billion for Fusion Energy Science, 
$559 million for the Spallation Neutron Source, $1.335 billion for 
nanoscale science and $1.215 billion for Advanced Scientific Computing.

PART 2--FUSION ENERGY SCIENCES

Sec. 162. Plan for Fusion Experiment

    This section requires the Secretary to develop a plan for a 
magnetic fusion burning plasma experiment within the United States. It 
also authorizes the U.S. to conduct any research and development 
necessary to develop such plans.

Sec. 163. Plan for Fusion Energy Sciences Program

    This section requires the Secretary to develop a program and submit 
a plan to Congress to provide a strong scientific base for Fusion 
Energy Sciences and the experiments described in Sec. 162.

PART 3--SPALLATION NEUTRON SOURCE

Sec. 164. Definition

    This section provides a definition for ``Spallation Neutron 
Source.''

Sec. 165. Report

    This section requires the Secretary to report on the Spallation 
Neutron Source as part of its annual budget submission.

Sec. 166. Limitations

    This section provides limitations for the amounts obligated for 
Spallation Neutron Source.

PART 4--MISCELLANEOUS

Sec. 167. Facility and Infrastructure Support for Non-Military Energy 
                    Laboratories

    This section requires the Secretary to develop and implement a 
policy for maintaining, modifying or closing facilities and 
infrastructure at nonmilitary energy laboratories. The policy must be 
communicated in a report transmitted to Congress by 2005.

Sec. 168. Research Regarding Precious Metal Catalysis

    This section authorizes research on the use of precious metals in 
catalysis.

Sec. 169. Nanoscale Science and Engineering Research

    This section requires the Secretary to support a program of 
research and development in nanoscale science and engineering within 
the Office of Science. The section authorizes grants for research 
centers and major instrumentation.

Sec. 170. Advanced Scientific Computing for Energy Missions

    This section requires the Secretary to support a program to advance 
high performance computing and requires a report to Congress before the 
Department can undertake an initiative on new computer architecture. It 
also amends the definitions and the general responsibilities of the 
Department of Energy in the High-Performance Computing Act of 1991 
(P.L. 108-3 Title 15, Chapter 81).

                   Subtitle G--Energy and Environment

Sec. 171. Authorization of Appropriations

    The section authorizes appropriations of $28.5 million for fiscal 
years 2003-2007 to carry out several energy and environmental research 
projects, including programs that are authorized in the Parts of this 
Subtitle that follow. From this amount, the section authorizes $28 
million for U.S.-Mexico Energy Technology, and $500,000 for waste 
carpet incineration studies.

Sec. 172. United States-Mexico Energy Technology Cooperation

    This section requires the Secretary to establish a collaborative 
research, development, demonstration, and commercial application 
program to promote efficient, environmentally sound development along 
the U.S.-Mexico border.

Sec. 173. Waste Reduction and Use of Alternatives

    This section authorizes the Secretary to make a single university 
grant to examine and develop the feasibility of burning post-consumer 
carpet in cement kilns as an alternative energy source.

Sec. 174. Coal Gasification

    This section authorizes loan guarantees for an energy project using 
integrated gasification combined cycle technology.

Sec. 175. Petroleum Coke Gasification

    This section authorizes loan guarantees for at least one petroleum 
coke gasification project.

Sec. 176. Other Biopower and Bioenergy

    This section requires the Secretary to assist in the planning, 
design and implementation of several identified projects to produce 
biopower and biofuels.

Sec. 177. Technology Transfer

    This section authorizes a competitively awarded contract for the 
transfer of technologies relating to ultra-deepwater research and 
development.

Sec. 178. Coal Technology Loans

    This section authorizes $125 million to provide a loan for an 
experimental plant constructed under a Department of Energy cooperative 
agreement.

                         Subtitle H--Management

Sec. 181. Availability of Funds

    This section provides that funds appropriated to the Department 
under this title shall remain available until expended.

Sec. 182. Cost Sharing

    This section requires minimum non-federal contributions of 20 
percent of the cost of research and development, and 50 percent for 
demonstration and commercial application projects. It allows the 
Secretary to reduce these requirements.

Sec. 183. Merit Review of Proposals

    This section requires an impartial review of the scientific and 
technical merit of project proposals.

Sec. 184. External Technical Review of Departmental Programs

    This section requires the Secretary to establish new or designate 
existing advisory committees to review research, development, 
demonstration and commercial application programs. It also requires the 
Secretary to contract with the National Academy of Sciences for 
periodic review and assessment of programs.

Sec. 185. Improved Coordination of Technology Transfer Activities

    This section requires the Secretary to establish a Technology 
Transfer Coordinator for the Department, and a Technology Transfer 
Working Group comprising representatives from all the National 
Laboratories and single-purpose research facilities.

Sec. 186. Technology Infrastructure Program

    This section requires the Secretary to establish a ``technology 
clusters'' program to expand National Laboratory capabilities in areas 
where external expertise from companies and universities is needed. It 
also authorizes $10 million for each of fiscal years 2003 and 2004.

Sec. 187. Small Business Advocacy and Assistance

    This section requires National Laboratories and facilities to 
establish an outreach program for small and minority businesses.

Sec. 188. Mobility of Scientific and Technical Personnel

    This section requires the Secretary to report to Congress on any 
impediments to sharing staff among National laboratories and single- 
purpose facilities.

Sec. 189. National Academy of Sciences Report

    This section requires the National Academy of Sciences to study the 
impediments to decreasing the cycle time in discovering, developing and 
deploying new energy technology innovations.

Sec. 190. Outreach

    This section requires the Secretary to ensure that each program 
authorized by this title includes an outreach component.

Sec. 191. Limits On Use of Funds

    This section prohibits award of management and operations (M&O;) 
contracts for federal non-military energy laboratories unless they are 
made on a competitive basis or the Secretary provides a waiver and 
Congress is notified two months in advance.

Sec. 192. Reprogramming

    This section requires the Secretary to issue a report 60 days after 
appropriations are enacted of how appropriated funds will be 
distributed under this authorization. It also requires 30-day 
congressional review for any reprogramming that exceeds 5 percent of 
any individual distribution.

Sec. 193. Construction With Other Laws

    This section lists other laws that grant relevant authority to the 
Secretary.

               TITLE II--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 201. Improved Coordination and Management of Civilian Science and 
                    Technology Programs

    This section amends the Department of Energy Organization Act 
(``DOEOA'') to require that the position of Director of the Office of 
Science established at section 209(a) of the DOEOA be elevated to an 
Assistant Secretary. The section also increases the overall number of 
Assistant Secretaries in the Department at section 203(a) of the DOEOA 
from six to seven, and expresses the Sense of Congress that leadership 
for departmental missions in nuclear energy should be at the Assistant 
Secretary level.

                     TITLE III--CLEAN SCHOOL BUSES

Sec. 301. Establishment of Pilot Program

    This section requires the Secretary to establish a program to 
demonstrate the use by local school districts of clean school buses. 
Not less than 20 percent or more than 25 percent of funding under the 
section shall be for the demonstration of ultra-low sulfur diesel 
school buses.

Sec. 302. Fuel Cell Bus Development and Demonstration Program

    This section requires the Secretary to establish a program to enter 
into cooperative agreements for the development and demonstration of 
fuel cell-powered buses. Cost sharing under this provision is specified 
with regard to infrastructure and demonstration activities.

Sec. 303. Authorization of Appropriations

    This section authorizes a total of $300 million for the Title III 
program through fiscal year 2006.

          TITLE IV--ALTERNATIVE FUELED AND ADVANCED VEHICLES.

Sec. 401. Definitions

    This provision amends the Energy Policy Act of 1992 (42 U.S.C. 14 
13211) to provide definitions for alternative fueled vehicle, fuel 
cell, hybrid, neighborhood electric, and ultra-low sulfur diesel 
vehicles. It also defines the pilot program.

Sec. 402. Pilot Program

    This section requires the Secretary to establish a competitive 
grant program to provide not more than 15 geographically dispersed 
demonstration projects for state and local governments or metropolitan 
transportation authorities. Grants can be utilized for the 
demonstration of alternative fueled vehicles, fuel cell vehicles, 
hybrid vehicles, ultra-low sulfur vehicles and infrastructure 
associated with alternative fueled, fuel cell and hybrid vehicle 
projects. The section imposes several additional requirements on grants 
and imposes selection criteria that give priority consideration to 
projects which maximize protection of the environment, demonstrate that 
projects will be maintained or expanded after initial federal funding, 
and enable the transfer of goods or passengers to other transportation 
systems. Grants under the demonstration program are subject to 50 
percent cost sharing requirements and a maximum period of 5 years. The 
Secretary is also required to seek broad geographic distribution of 
projects and to transfer information and knowledge gained through 
projects to other interested parties.

Sec. 403. Reports to Congress

    This section requires the Secretary to issue a report to Congress 
on grants as well as evaluations of the effectiveness of the program.

Sec. 404. Authorization of Appropriations

    This section authorizes $200 million to carry out Title IV, to 
remain available until expended.

                          TITLE V--CLEAN COAL

Sec. 501. Authorization of Appropriations

    This section authorizes $200 million for a Clean Coal Power 
Initiative at the Department for fiscal years 2003-2011. Section 501 
also requires that the Secretary transmit a report to Congress 
regarding certain implementation activities. Certain funding 
restrictions apply if the Secretary fails to transmit the report to 
Congress in accordance with the terms of section 501 by September 30, 
2003.

Sec. 502. Project Criteria

    This section establishes technical criteria that are to be required 
for projects funded under the Clean Coal Power Initiative. It also 
requires that the Secretary, in consultation with certain parties, set 
technical milestones specifying the emissions levels that projects must 
be designed to and reasonably expected to achieve. Section 502 also 
establishes financial assistance criteria applicable to projects, and 
limits the federal share of a project to not more than 50 percent of 
the cost of a project. Additionally, section 502 provides for 
environmental criteria by clarifying the manner in which technology 
used at, or emissions reduction levels achieved by, facilities 
receiving assistance under Title V are treated under sections 111, 169, 
and 171 of the Clean Air Act.

Sec. 503. Report

    This section requires the Secretary, in consultation with other 
appropriate agencies, to transmit a report to Congress on the technical 
milestones and the status of projects funded under Title V no later 
than one year after the date of the enactment of the title, and once 
every two years thereafter through 2011.

Sec. 504. Clean Coal Centers of Excellence

    This section requires the Secretary to award competitive, merit-
based grants to universities for the establishment of Centers of 
Excellence for Energy Systems of the Future. It also requires that the 
Secretary provide grants to universities that can show the greatest 
potential for advancing new clean coal technologies.
    Chairman Boehlert. I ask Members to proceed with the 
amendments in the order of the roster, but at this time, the 
Distinguished Ranking Member from Texas, Mr. Hall. Mr. Hall, as 
you gather your chair and collect your wits, we are eagerly 
awaiting your eloquent prose. The gentleman from Texas is 
recognized for such time as he may consume.
    Mr. Hall. It looked like you would at least give me the 
time to read it first.
    It says here, first of all, Mr. Chairman, I want to thank 
you for the high degree of cooperation and courtesies you and 
your staff have extended to me as we prepare for this markup 
here today. You were a little conservative, I thought, in your 
introduction. [Laughter.] Okay. Are you ready to go to work 
now? Let us go.
    All right. Once again, we are back on energy legislation, 
and no question with what--we need an energy bill. We need it 
in the worst way, and we need one as soon as we can get it on 
the President's desk. And the good thing about a good, sensible 
energy bill, I am not sure that the Chairman will like it as 
much as I like the fact that we've got a President that will 
sign it if it has all of the good things in it like drilling 
off the coast, and drilling the depths of the ocean, and no 
money in there for saving the whales.
    Chairman Boehlert. We are going to try to guide 
Administration policy.
    Mr. Hall. Seriously, we need to begin the steps necessary 
to ensure that our domestic supply is as secure as we can make 
it. And I would ask unanimous consent to put the rest of my 
speech into the record and yield to the Chairman and the 
Ranking Member of this committee, Mr. Nick--what the hell is 
Nick's last name?
    [The prepared statement of Mr. Hall follows:]
           Prepared Statement of Representative Ralph M. Hall
Mr. Chairman and Members of the Committee:

    First of all, Mr. Chairman, I want to thank you for the high degree 
of cooperation and the courtesies you and your staff have extended to 
us as we prepared for this markup today. One of the reasons that the 
Science Committee produces such high quality legislation is the 
cooperative spirit that exists among the members and staff day-in and 
day-out and it shows up in the work product.
    Once again we are back on energy legislation. This nation needs an 
energy bill now--and we need one as soon as we can put it on the 
President's desk.
    We need to begin to take the steps necessary to ensure that our 
domestic supply is as secure as we can make it. Much of the crude oil 
and refined petroleum products we are using today comes from unstable 
areas of the world. We are at war in the Middle East and no one can 
predict whether oil will continue to flow from that area. A significant 
supply disruption will be devastating to this country and much of the 
rest of the world.
    That is an unacceptable risk for this nation to take, especially 
when we have more choices on how we are going to meet our energy needs 
than any other developed nation. Other nations are envious of the 
options we have before us--abundant coal, oil and gas, nuclear, wind, 
solar, geothermal, falling water--all are there for us to use.
    A strong energy R&D; program is the key to ensuring that this nation 
not only survives but also prospers in the perilous times ahead.
    The legislation before us today and the amendments that will be 
offered to it provide the underpinnings of a strong R&D; program. Some 
of that work was done last year in the conference between the House and 
Senate on H.R. 4. Much of that work has been incorporated into this 
bill. Our members will recognize their handiwork in those provisions.
    Among the major new elements are revised hydrogen provisions to 
reflect the President's commitment to a strong hydrogen production, 
infrastructure and vehicle technology development program; and new 
fusion provisions that recognize the Administration's commitment to 
resume participation in the ITER project.
    The question of whether the Department of Energy should regulate 
itself on occupational and nuclear safety matters has been debated for 
years. There is considerable sentiment that DOE ought to begin the 
process of turning jurisdiction in the laboratories under the Office of 
Science over to the OSHA and NRC. I believe this issue is ripe for 
discussion, and we begin that public process today.
    With that, Mr. Chairman, I yield whatever time I have to the 
Ranking Democratic Member of the Energy Subcommittee, Mr. Lampson, for 
any comments he may have.

    Mr. Smith of Michigan. Lampson. Thank you, Ranking Member 
Hall and Chairman Boehlert. I do want to take just a moment to 
thank the Committee for including my two amendments in the en 
bloc amendment today. Good.
    Well, the first of those two amendments would require the 
Department of Energy to complete a report that would lay out 
the design and cost of--next generation fuel cells and of an 
institution of higher education. And my second amendment 
requires the DOE to report back on efforts to increase 
collaboration between large and small institutions of higher 
education. And I am sure that I am not the only one that--on 
this committee who represents a smaller university that has so 
much to offer the Department of Energy through grants, 
contracts, and cooperative agreements. And I believe the DOE 
can do more to foster this--these types of collaborations.
    So I thank you again, Chairman Boehlert and Ranking Member 
Hall, for working with me on these amendments, and I yield 
back.
    [The prepared statement of Mr. Smith of Michigan follows:]
            Prepared Statement of Representative Nick Smith
    I want to thank Chairman Boehlert and Ranking Minority Member Hall 
for holding this hearing to markup H.R. 238, the Energy Research, 
Development, Demonstration, and Commercial Application Act of 2003.
    I am pleased that the Administration has made energy policy a top 
priority. Our growing dependence on foreign oil presents serious 
challenges to our national security. As a member of the President's 
``Oil Policy Commission'' in the 1970s we were concerned that this 
country was then depending on imported oil for 40 percent of our 
petroleum energy. Today it is much worse with imported petroleum 
accounting for nearly 60 percent of total use. Access to affordable 
energy is a vital component for fostering economic growth. Considering 
the situation in Iraq and the sluggishness of the economy, the need to 
conserve and develop new sources of energy has never been greater.
    The nuclear subtitle in this bill authorizes $1.7 billion for 
fiscal years 2004-2007 to fund a variety of research and development 
programs. Nuclear energy currently supplies about 20 percent of our 
nation's electricity and it holds great promise for future expansion. 
Nuclear power is clean, efficient, and it can be produced at a 
relatively low-cost when compared to fossil fuel powered plants. This 
legislation will help to develop new technologies that will allow us to 
improve existing nuclear plants and possibly even build state of the 
art new plants.
    The Clean Coal Power Initiative is also very important. Coal is 
extremely abundant in America, and we would be foolish not to give 
priority to research to take advantage of that resource. Currently, 
coal power plants account for more than half of domestic electricity 
production and 65 percent in my home state of Michigan. This bill 
authorizes competitive grants to be issued to universities to develop 
new, cleaner, more efficient ways to utilize coal as a source of 
energy.
    In addition to increasing energy production, this legislation looks 
at ways that we can conserve energy consumption. My amendment, included 
in the en bloc will fund plant genomics research to develop crop 
varieties that will reduce or eliminate the need for nitrogen-based 
fertilizer. This is an important energy issue because the production of 
nitrogen fertilizer consumes about five percent of domestic natural gas 
resources. The environment and farm economy will also benefit 
significantly from these future advances.
    This bill also contains provisions to develop innovative bio-
products that will offer viable alternatives to existing petroleum-
based materials and goods. From biological resources we can derive 
products as diverse as fuels and lubricants, plastics, heat and 
electricity, chemicals, food, feed, building materials, paper, 
clothing, and much more. The potential of these bio-based technologies 
to use renewable resources as long-term alternatives to today's energy 
intensive industrial processes cannot be underestimated.

    Chairman Boehlert. Thank you very much. Now let us proceed 
with the amendments in the--well, relatively in the order on 
the listing. There will be a slight adjustment, but first up is 
Mr. Miller of North Carolina.
    Mr. Miller. Thank you, Mr. Chairman. I am--I have the 
amendment at the desk.
    Chairman Boehlert. Local report.
    The Clerk. Amendment to H.R. 238 offered by Mr. Miller of 
North Carolina.
    Mr. Miller. Mr. Chairman, I ask unanimous consent that the 
amendment be considered as read.
    Chairman Boehlert. Without objection, so ordered.

    [The amendment appears on pages 214-216.]

    Chairman Boehlert. The gentleman is recognized for five 
minutes.
    Mr. Miller. Thank you, Mr. Chairman. I want to thank, first 
the Democratic staff for developing this proposal and also the 
Chairman and the majority staff for working on it and 
streamlining the original proposal. I216 believe this is one of 
the amendments that the Chair referred to as one that he would 
not feel constrained to oppose, depending on how it was 
explained, so if I don't explain it, Mr. Chairman, to your 
liking the first time around, I will try a second.
    This is aimed at trying to encourage a commercialization of 
conservation technology. Formerly, the leader in helping 
industry adapt conservation technology was actually the power 
companies because of the way that they are regulated. Many--in 
many parts of the country, however, the power industry is being 
deregulated, so the only real regulation is that of the 
marketplace, and in most market--free market economic theories, 
there is very little incentive for sellers to help reduce the 
demand for their product. So power companies are getting out of 
the business of helping reduce energy use to help encourage 
conservation.
    This would try to replace that effort by the power 
companies with a grant program to establish ten technology 
transfer centers. First is to help the commercialization of 
technology research, largely done by the DOE to try to find the 
logical users of the technology and to adapt it to the 
industries that would most benefit from it. Second, it would 
help industry. Mine--my state is second in the Nation in 
manufacturing job loss. Industry in North Carolina, as in the 
rest of the country, is in a desperately competitive situation 
in the world market, and cost is enemy, including energy cost. 
If this will help industry reduce energy costs, it will help 
protect American jobs.
    And third, it would encourage energy conservation. Again, 
the way it is done is to establish these pilot projects, ten 
centers, largely in partnership with, probably, nonprofit 
groups, universities, local government to adapt the new 
technology that is being developed by the Department of Energy 
and elsewhere. Thank you, Mr. Chairman.
    Chairman Boehlert. Thank you, Mr. Miller. That is a classic 
example of the eloquence that is so convincing. The Chair is 
pleased to accept your amendment. Now I do want to complement 
you and the minority for working cooperatively with the 
majority. It is a good idea. We worked it out, and we are glad 
to accept it.
    Mr. Miller. Thank you, Mr. Chairman.
    Chairman Boehlert. Without objection----
    Mr. Hall. Mr. Chairman, no, we have no objection. We like 
the amendment, and we thank you for accepting it. From a 
serious vein, one of our better Members of this committee, 
Lincoln Davis, has asked me to put into the record that--he 
normally attends, and he is very good, as you know, about 
attending Committee meetings and being on the Floor. He has a 
death in his family, and that is the reason he is not here 
today. He wanted that put of record. And I present----
    Chairman Boehlert. Thank you. The record will note that, 
and please convey our condolences to Mr. Davis.
    Mr. Hall. Thank you, Chairman.
    Chairman Boehlert. If there is no further discussion, the 
vote occurs on the amendment. All in favor, say aye. Opposed, 
no. The ayes have it. And the amendment is agreed to. Thank 
you, Mr. Miller.
    Next up on the docket is Mr. Matheson.
    Mr. Matheson. Thank you, Mr. Chairman. I--Mr. Chairman, I 
ask unanimous consent that the text of my amendment be included 
in the en bloc amendment.
    Chairman Boehlert. Thank you very much. Without objection, 
so ordered.
    [The prepared statement of Mr. Matheson follows:]
           Prepared Statement of Representative Jim Matheson
    Mr. Chairman, thank you for accepting my amendment and for 
including it in the en bloc. This amendment is simple--it directs the 
Energy Secretary to undertake a demonstration project and field test of 
distributed generation systems that focuses on communications and 
control challenges.
    This test needs to be conducted in both rural and urban areas, as 
each area has unique challenges. The resulting data will be used to 
identify future research priorities for the Department of Energy and to 
identify as yet unknown challenges in deployment of distributed energy 
systems over the next ten years.
    The President's Council of Advisors for Science and Technology 
explicitly endorsed this demonstration project in its draft report of 
last October (no final report has been made available). As the Council 
stated, ``the field of communications and controls for distributed 
energy systems is new and evolving rapidly. . . (d)emonstration and 
field tests are needed to help define better the functional 
specifications and the full range of communications and control system 
needs.''
    Distributed generation has the potential to be especially 
beneficial for rural customers and those who are in electric 
cooperatives. I worked with the National Rural Electric Cooperatives 
Association on this amendment, which it supports, and I am pleased that 
my colleagues are able to support this important research. Thank you, 
Chairman Boehlert and Ranking Member Hall for your continued 
leadership.

    [The amendment appears on page 217.]

    Chairman Boehlert. That is the spirit of cooperation we 
have been talking about, and we will move right along. Next up, 
Mr. Udall of Colorado. We will note--then let us mark as not 
here, so we will go next--where are we then? The distinguished 
gentleman from Illinois, Mr. Costello.

    Mr. Costello. Mr. Chairman, I thank you in trying to meet 
your request to make this concise and to get your approval of 
this amendment, I offer this amendment with my friend and 
colleague, Mr. Calvert.

    This amendment provides for the external regulation to 
civilian science labs operated by the Department of Energy. DOE 
is the only federal agency that self-regulates its worker 
safety and nuclear safety. DOE has had a terrible track record, 
as documented through Subcommittee hearings of this committee 
as well as the Inspector General and the GAO reports that have 
been submitted to Congress. No one disputes that the labs would 
be safer under external regulation. The GAO, various committees 
of the Congress, including the Appropriations Committee, even 
the lab managers all agree that external regulation would be 
best for worker safety and nuclear safety.

    Mr. Chairman, the GAO has stated that external regulation 
not only would result in safer labs but also would save 
millions of dollars every year. And Mr. Chairman, external 
regulation at the DOE civilian labs is way overdue. Let us 
adopt this amendment, save taxpayers' money, and improve safety 
of the labs and their workers. And with that, Mr. Chairman, I 
would yield the balance of my time to my friend, Mr. Calvert.

    [The prepared statement of Mr. Costello follows:]
        
         Prepared Statement of Representative Jerry F. Costello
    Mr. Chairman, today I am introducing an amendment with Mr. Calvert 
that provides for the external regulation of nuclear safety and 
occupational safety and health at the Department of Energy civilian 
labs. This amendment, which draws from legislation Mr. Roemer, Mr. 
Calvert, Mr. Bliley, and I have introduced in the past, would push the 
Department of Energy to take steps that virtually everyone agrees is 
overdue: get the Department of Energy out of the business of regulating 
itself in the areas of nuclear and worker safety.
    Discussion of external regulation at the labs is an old idea. It 
received an official boost in 1993 when then Secretary of Energy Hazel 
O'Leary announced that she would seek to implement external regulation 
of worker safety. Then, in 1994, legislation was introduced forcing DOE 
to stop self-regulating their nuclear facilities. DOE responded to 
these legislative initiatives by launching advisory groups to lay out a 
path to external regulation. In 1996, DOE established a Working Group 
on External Regulation which concluded that adopting this policy would 
improve safety, eliminate the inherent conflict of interest contained 
in self-regulation and gain credibility and public trust. That same 
year, DOE boldly adopted a 10-year plan to implement external 
regulation at its non-military energy laboratories. Let me say, through 
this amendment we intend to get them there on time.
    For many outside the Department, this 10-year plan appeared too 
cautious. However, to those in the Department, it appeared too 
ambitious. In 1997, then Secretary Pena decided to take a step away 
from that commitment and run a two-year pilot program for further 
study. Despite this successful pilot program, which led the lab 
contractors, the GAO, the NRC and OSHA to all endorse external 
regulation, then Secretary Richardson, decided that external regulation 
would be unworkable.
    In 1999, when the pilot study was completed, then Energy 
Subcommittee Chairman Calvert held an in-depth hearing on this issue. I 
was the ranking member of the Energy Subcommittee and I came away 
convinced that while there were some questions about implementation, 
the overwhelming evidence was that external regulation would provide 
more safety to workers and communities near labs while allowing the 
labs themselves to focus more on science and technology.
    It is for this reason that laboratory managers also favor external 
regulation. They believe external regulation would free up overhead 
costs involved in self-regulation and allow them to redirect resources 
towards doing more science. DOE contractors have to support 30 percent 
more staff to comply with DOE's orders. Battelle, which manages three 
energy labs, reports that it spends one-half to one-third less at its 
externally regulated private sector labs. Why should we burden our 
civilian energy labs with this unnecessary regulatory tax when it buys 
us nothing extra in terms of safety and health? Further, DOE is an 
inconsistent regulator with changes in standards, reporting 
requirements, and interventions. Paying more and getting less is not a 
good deal for anyone.
    The NRC and OSHA are both professional regulatory bodies that 
provide a clearer regulatory regime with significant cost savings to 
those subject to their regulatory guidance.
    Recently, the House Energy and Water Appropriations Subcommittee 
has taken a leading role in pushing the Department towards external 
regulation. Yet, the Department continues to resist external 
regulation. After ten years of studying this issue, we already know 
that external regulation is the right answer; yet, DOE insists that 
more time is needed.
    Many have concerns about the costs of implementing external 
regulation. Despite 10 years of study, DOE claims they still cannot say 
what it would cost. It is true there are some uncertainties due to 
questions about how DOE, OSHA, and the NRC would implement an external 
regulation policy. This Committee can reduce those uncertainties and 
shape the implementation of external regulation by adopting this 
amendment and following up with aggressive and continuing oversight. 
Mr. Calvert and I are firmly committed to working with the Chairman, 
Appropriators, labs, OSHA, NRC, and the Department to insure that this 
reform is a true reform.
    There is consensus everywhere outside of DOE that the labs should 
be subject to external regulation. GAO holds that position. The labs 
hold that position. The potential regulators hold that position. I 
believe this Committee and this Congress have a responsibility to the 
workers, the communities near the labs, and the taxpayers to see this 
overdue reform happen sooner rather than later. This amendment is 
intended as another signal to DOE that foot-dragging and endless 
studies will not satisfy this Committee or this Congress.
    Thank you Mr. Chairman.

    Chairman Boehlert. Mr. Calvert is recognized as a co-author 
of this amendment.
    Mr. Calvert. I am grateful for the kind words from my 
friend from Illinois. We have worked together on external 
regulations for some time, and I appreciate his efforts to keep 
us focused on the goal of bringing real reform on our non-
military science labs.
    Four years ago, I had the pleasure to chair a very 
educational meeting on external regulation of the non-military 
space labs--or science labs. The Department had just finished 
its initial pilot program, as Mr. Costello reminded us. We had 
a DOE witness and Assistant Secretary who patiently explained 
to us why, despite studying the issue for more than five years, 
the Department could not endorse external regulation when every 
other group that had looked at it said it was the right thing 
to do. The Department's logic boiled down to this: the 
Department could not endorse external regulation until the 
costs were certain. But the costs would remain uncertain until 
external regulation was actually implemented; therefore 
external regulation should never be implemented, because the 
costs were uncertain.
    I suspect that the work done in the science labs exhibits a 
higher level of reasoning than the circular logic offered up by 
headquarters back in 1999. In fact, I know the labs have made 
many, many breakthroughs in intervening years, but headquarters 
continues to cling to the same mantra in postponing this common 
sense reform.
    In the July 1999 hearing, Mr. Chairman, I know that we put 
a man on the moon in seven years, we defeated Hitler's Germany, 
Mussolini's Italy, Japan in four years, kicked Hussein out of 
Kuwait in a matter of months. We can accomplish all of that, 
but the Department could not move to external regulation in any 
reasonable time frame. This mindset tells you a lot about the 
Department and suggests why this amendment is necessary, and I 
am happy to support my friend from Illinois. We ought to move 
this amendment. Thank you, Mr. Chairman.
    Chairman Boehlert. And the Chair is happy to support his 
friends from Illinois and California on a bipartisan basis. I 
would include in the record at this juncture a letter received 
from the Department of Energy.
    [The information follows:]
    
    

    Chairman Boehlert. Dr. Ehlers.
    Mr. Ehlers. Thank you, Mr. Chairman. Just a question for 
the bill sponsors. Is there any reason to not include the 
military labs, other than the fact that we may not have 
jurisdiction? Shouldn't--don't they--it seems to me----
    Chairman Boehlert. That is a pretty good reason: we don't 
have jurisdiction.
    Mr. Ehlers. No, but I----
    Chairman Boehlert. Let us go home and study it some more.
    Mr. Ehlers. Just--my question is not facetious. I think it 
would be a good idea to also include the military labs. And I 
wonder if both sponsors are--would agree with that, even though 
we can't put it in this amendment.
    Mr. Costello. If my colleague would yield, we have, in 
fact, noted that that has not been looked at, doing external 
regulation to the military labs. The only review that has been 
done have been with the civilian labs. And as you point out, we 
do not have jurisdiction through this committee, but it is 
certainly something that I think we should look at.
    Mr. Ehlers. I would certainly agree with that, because the 
expenses we have incurred due to lack of regulation have been 
much greater for the military labs than the non-military. So I 
would hope that we would all join together in trying to 
persuade that committees have jurisdiction to deal with that 
once this is passed.
    Chairman Boehlert. Yeah, the jurisdiction issue is somewhat 
hazy, but we do have some jurisdiction, obviously, but I would 
agree with your analysis. We ought to join together and talk to 
our colleagues on the Armed Services Committee. Who else seeks 
recognition? Mrs. Biggert.
    Mrs. Biggert. Thank you, Mr. Chairman. I probably am one of 
the few skeptics here today, certainly not on the Nuclear 
Regulatory Commission, but on OSHA, perhaps it is because I am 
a Member of the Education and Work Force Committee, which has 
jurisdiction over OSHA. And I just want to remind the 
proponents of the old saying, ``Be careful what you wish for, 
because it might come true.''
    And seriously, I am somewhat sympathetic to the late-
breaking news out of DOE today. During the last six months to a 
year, Congress has been sending mixed signals to the Department 
on this issue. I think the fiscal year 2003 National Defense 
Authorization Act prohibited DOE from doing anything related to 
external regulation. And a few months ago, the Omnibus 
Appropriations Bill directed the DOE to act expeditiously to 
continue to look into external regulations, so I think just as 
we have sent mixed signals, so did the Administration. Not 
surprisingly, the Department losing its regulatory authority 
opposes external regulation, and you have that letter, while 
those federal agencies whose regulatory authority will be 
expanded are supportive of it.
    So should this ultimately become--well, I look forward to 
closely monitoring and reviewing any transition plans prepared 
by the DOE, OSHA, or the NRC, so I just, you know, remain just 
concerned. And I can understand the frustration of many of the 
Members here having worked, you know, with the DOE, and--but I 
still have those concerns. So I thank you, Mr. Chairman, and 
yield back the balance of my time.
    Chairman Boehlert. Thank you very much. Is there anyone 
else who seeks recognition? If not, the question is on the 
amendment. All in favor, say aye. No. The ayes appear to have 
it. The amendment is passed.

    [The amendment appears on pages 219-227.]

    Chairman Boehlert. Next up on the docket, Mrs. Biggert and 
Mr. Davis. The gentlelady from Illinois is recognized.
    Mrs. Biggert. Thank you, Mr. Chairman. I have an amendment 
at the desk.
    Chairman Boehlert. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 238 offered by Mrs. Biggert 
and Mr. Davis of Tennessee.
    Mrs. Biggert. Mr. Chairman, I ask unanimous consent that 
the amendment be considered as read.
    Chairman Boehlert. Without objection, so ordered. The 
gentlelady is recognized for five minutes in explanation of her 
amendment.
    [The prepared statement of Mrs. Biggert follows:]
           Prepared Statement of Representative Judy Biggert
    Mr. Chairman, the amendment I am offering today establishes the 
Genomes To Life program at the Department of Energy. And I want to 
thank my colleagues, Mr. Davis and Mr. Smith of Michigan, for 
supporting me in this effort.
    In the last two years, there have been many events celebrating the 
completion of maps of the human genome as well as other genomes, and 
rightly so. DOE's leadership in genome sequencing resulted in a genetic 
map that has been called the ``recipe for life,'' the human ``genetic 
fingerprint,'' or the ``holy grail of biology.''
    DOE's Genomes To Life initiative goes beyond sequencing in an 
effort to understand how genetic components interact to perform 
cellular activities vital to real life. A better understanding of 
biological systems will enable the United States to develop new 
technologies related to energy production, carbon sequestration, the 
detection of biological and chemical agents, bioremediation, and even 
medicine. That's why the Office of Management and Budget and the Office 
of Science and Technology Policy, in their fiscal year 2004 budget 
guidance memo, made clear that ``molecular level understanding of life 
processes'' is a national research priority.
    This will require new scientific instruments--some that haven't 
been invented yet--and the use of specialized facilities by 
multidisciplinary teams of scientists. That's why this amendment 
directs $100 million to the Genomes to Life program in fiscal year 
2004, and such sums as may be necessary for fiscal years 2005 through 
2007, from funding already authorized in the bill for the DOE Office of 
Science. The Office of Science and its national laboratories are 
uniquely qualified to lead such a difficult and complex research 
effort.
    Bringing together scientists from other national laboratories, 
academia, and industry at a number of user facilities--each with a 
different focus--the Genomes To Life program will lead to the 
development of innovative technologies and the open dissemination of 
data, tools, and materials. It will support research that will attract 
top researchers from here in the U.S. and around the world, and further 
strengthen U.S. leadership in biotechnology. The DOE's ``big science'' 
approach made mapping the human genome possible, and it exactly the 
right approach to unlocking the functional mysteries of the genome.
    I urge adoption of the amendment.

    [The amendment appears on pages 228-236.]

    Chairman Boehlert. And we would, maybe, hope that you might 
share some of those five minutes with Mr. Davis.
    Mrs. Biggert. Absolutely. Mr. Chairman, the amendment being 
offered today establishes the Genomes to Life program at the 
Department of Energy. I want to thank my colleagues, Mr. Davis 
and Mr. Smith of Michigan, for supporting me in this effort.
    In the last two years, there have been many events 
celebrating the completion of maps of the human genome, as well 
as other genomes, and rightly so. DOE's leadership in genome 
sequencing resulted in a genetic map that has been called ``the 
recipe for life,'' ``the human genetic fingerprint,'' or the 
``Holy Grail of biology.'' Today, DOE's Genomes to Life 
initiative goes beyond sequencing in an effort to understand 
how genetic components interact to perform cellular activities 
vital to real life. A better understanding of biological 
systems will enable the United States to develop new 
technologies related to energy production, carbon 
sequestration, the detection of biological and chemical agents, 
viral mediation, and even medicine. So that is why the Office 
of Management and Budget and the Office of Science and 
Technology policy in their fiscal year 2004 budget guidance 
memo made it clear that molecular level understanding of life's 
processes is a national research priority.
    This will require new scientific instruments, some that 
haven't even been invented yet, and the use of specialized 
facilities by multiple teams of scientists. That is why this 
amendment directs $100 million to the Genomes to Life program 
in fiscal year 2004 and such sums as may be necessary for 
fiscal years 2005 through 2007 from funding already authorized 
in the bill for the DOE Office of Science. The Office of 
Science and its national laboratories are uniquely qualified to 
lead such a difficult and complex research effort.
    I would urge adoption of this amendment and yield to the 
gentleman from Tennessee, Mr. Davis.
    Chairman Boehlert. My fault, Mr. Davis is not here today.
    Mrs. Biggert. All right. Well, then I will----
    Chairman Boehlert. Family funeral, so you have spoke well 
and eloquently for you and the co-author of this amendment----
    Mr. Lampson. Mr. Chairman.
    Chairman Boehlert. Yes.
    Mr. Lampson. May I speak in Mr. Davis's behalf for just one 
second, please?
    Chairman Boehlert. You certainly may, Mr. Lampson.
    Mr. Lampson. As we heard earlier, Mr. Davis was unavoidably 
called away by a family tragedy, and he wanted to speak in 
support of this amendment authored with the gentlelady from 
Illinois, but for obvious reasons, he can't be here. Mr. 
Chairman, I would ask that his statement appear in the record 
and that Members understand he strongly supports this 
amendment.
    Chairman Boehlert. Without objection, so ordered.
    [The prepared statement of Mr. Davis follows:]
           Prepared Statement of Representative Lincoln Davis
    Thank you, Mr. Chairman. I want to thank Mrs. Biggert for her hard 
work on this important and exciting issue.
    The Genomes to Life initiative will play an integral role in 
shaping the future and will help us meet the challenges of the 21st 
century. The role that the development of this ambitious program will 
play in every American's life is enormous.
    This initiative builds upon existing research and scientific 
discovery, which has already changed the way biologists think about 
biology. We already have state of the art instrumentation in place that 
encourages the immediate establishment of this far-reaching program. 
However, more technological development is needed to help reach our 
goals in an acceptable timeframe.
    We must and will meet those needs; with the work that laboratories 
such as Oak Ridge National Laboratory in Tennessee are already doing 
with their dedicated team of professionals and scientists we are well 
on our way to finding acceptable outcomes for increasing energy 
production and curbing environmental degradation.
    I am excited about what the future holds in store for us in this 
dynamic field of genomic research.
    Thank you Mr. Chairman.

    Mr. Lampson. The fact that the Oak Ridge National Lab is 
one of the leaders in this research and is located near his 
home has absolutely nothing to do with his position, but I, 
too, support it. Thank you, Mr. Chairman.
    Chairman Boehlert. Thank you. Another example of the clear 
spirit of bipartisanship that is so evident in the work of this 
committee. And I thank Mrs. Biggert and Mr. Davis. The Chair is 
prepared to accept the amendment. If no one else seeks 
recognition, we will have a vote. All in favor, say aye. 
Opposed no. The ayes have it. The amendment is passed. Mr. 
Udall, are you here?
    Mr. Udall. Thank you, Mr. Chairman.
    Chairman Boehlert. Amendment number one of yours--number--
no, number two. The amendment to add a new section to the bill 
on federal laboratory education partners.
    Mr. Udall. That is correct. Thank you, Mr. Chairman. I have 
got a brief statement. This amendment is based on the Federal 
Laboratory Educational Partners Act of 2003, a bill that I 
introduced early in the session. The bill would permit the 
national renewable energy laboratory and other Department of 
Energy laboratories to use revenue from their inventions to 
support science education activities.
    Chairman Boehlert. Excuse me, Mr. Udall. We haven't had the 
amendment offered yet officially, so the amendment--the Clerk 
will report the amendment.
    The Clerk. Amendment to H.R. 238 offered by Mr. Udall of 
Colorado.

    [The amendment appears on page 218.]

    Chairman Boehlert. All right. Now continue with your 
explanation, please.
    Mr. Udall. Thank you, Mr. Chairman. The amendment would 
amend the Stevenson-Wydler Technology Innovation Act of 1980. 
Under this act, federal labs can use licensing royalties for a 
number of purposes. My bill would add educational assistance as 
another permitted use of licensing royalties. Federal 
laboratories, especially the Department of Energy's national 
laboratories, with their high concentrations of scientists and 
engineers, are uniquely positioned to aid surrounding 
communities in improving the learning experience of their 
students. Licensing revenues have grown markedly over the years 
as the technologies that the renewable energy lab has created 
have gained wider acceptance.
    It makes sense to me that we should give the labs a bit 
more freedom to spend these funds, especially on pursuits as 
worthwhile as science education, which can expose young people 
to the excitement in relevance of careers in science and 
technology. And I know, Mr. Chairman, that has been a real 
emphasis of yours and this committee's. And therefore, I would 
urge support of my amendment. I would yield back whatever time 
I have left.
    Chairman Boehlert. Thank you very much. The Chair is 
prepared to accept the amendment. It has been worked out within 
the majority. Is there anyone else who seeks recognition? If 
not, the vote is on the amendment. All in favor, say aye. 
Opposed, no. The ayes have it, and the amendment is passed. Ms. 
Jackson Lee.
    Ms. Jackson Lee. Thank you, Mr. Chairman. I have an 
amendment at the desk. Thank you, Mr. Chairman, I have an 
amendment at the desk.
    The Clerk. Amendment to H.R. 238 offered by Ms. Jackson Lee 
of Texas.

    [The amendment appears on page 245.]

    Chairman Boehlert. For five minutes.
    Ms. Jackson Lee. Thank you very much, Mr. Chairman. First 
of all, I would like to join in the chorus of my colleagues, 
many of my colleagues, to commend you and this committee for 
the bipartisan spirit in which this committee has worked in 
this session and the last Congress in shaping the research and 
development portions of this energy bill. The underlying bill 
and your en bloc amendment today will ensure that the energy 
needs of America continue to be met in a changing world. You 
deserve much of the credit, along with Ranking Member Hall, and 
the Members of this committee, and as well, the staff.
    I am particularly pleased, Mr. Chairman, that in the 
underlying bill, two of my amendments, one dealing with the 
Nation's historically black colleges and universities and the 
ability for them to share fully in the research funding that we 
offer, and as well, the amendment dealing with the secondary 
use of batteries that will help keep an environment that is 
clean and safe for all of us. Additionally, Mr. Chairman, I am 
gratified that the amendment that Mr. Lampson and myself 
offered, recognizing that I come from Houston that is known--or 
has been known as the energy capital of the world, that we have 
the opportunity to reinvestigate the resources, the oil 
resources in the coastal waters off of Louisiana and Texas.
    With that in mind, I offer today an amendment that deals 
with new technology and it hopefully will bring two agencies 
together. My amendment will require the Department of Energy to 
enter into discussions with the NASA Administrator, which will 
enable DOE to tap into the vast expertise and energy gained 
from past and future research in order to find technologies 
that could bolster the existing commercial application programs 
at the DOE. I believe new technologies are emerging rapidly to 
harvest the power of the sun, the wind, and of water to drive 
progress in the new millennium. Hydrogen holds a great promise 
for becoming a fuel of the future to power our cars and trucks 
and even household devices with fuel cells. If we know that 
such technologies will be the way of the future, it is just 
smart policy to do all we can to stimulate the transition to go 
as efficiently and expeditiously as possible. We must also 
ensure that once a transition occurs that it is American 
companies that are on the cutting edge of technology, leading 
and enjoying a good proportion of the market share.
    Mr. Chairman, I believe that this amendment matches two 
very unique agencies, of which we have oversight, the 
Department of Energy and NASA, to utilize their best talents to 
put us in the 21st century and the centuries to come. I would 
ask my colleagues to consider this legislation, and I offer a 
statement into the record that I would like to find, Mr. 
Chairman, if I could, that speaks to collaboration between 
agencies. And I thank you for giving it to me. Six federal 
agencies help to open the gate to enhance manufacturing and 
R&D.; And I would ask that this article be put into the record.
    Chairman Boehlert. Without objection, so ordered.
    Ms. Jackson Lee. And I would ask my colleagues to support 
this amendment.
    [The prepared statement of Ms. Jackson Lee follows:]
        Prepared Statement of Representative Sheila Jackson Lee
    Thank you Mr. Chairman.
    I would first like to commend you for your work and bipartisan 
spirit in this Congress and the last Congress in shaping the Research 
and Development portions of this Energy Bill. The underlying bill and 
your en bloc amendment today, will ensure that the Energy needs of 
America continue to be met in a changing world. You and Ranking Member 
Hall deserve much credit for that, and I am pleased to have been a part 
of the process.
    I am particularly pleased to see that three amendments that I 
offered in the last Congress have been incorporated into the underlying 
bill. Ensuring that our nation's Historically Black Colleges and 
Universities receive their fair share of research funding, will allow 
us to harvest their great expertise and skills. It will also ensure 
that the next generation of leaders in the critical field of energy 
production and utilization will reflect the diversity of our great 
nation. Second, my provision for the secondary use of batteries will 
also help keep our environment clean and improve the efficiency of 
energy use in the future.
    Third, I am gratified to see that language offered by my colleague 
from Houston Nick Lampson and me has been preserved, requiring the 
Secretary of the Interior to report to the Congress as to the oil and 
natural gas reserves in waters off the coast of Louisiana and Texas. No 
matter how we decide to manage our resources in the future, it is 
important that we take stock and are informed about our options.
    Mr. Chairman, I thank you for working in an open-minded bipartisan 
way and supporting those amendments. Similarly, I hope that you give 
your support to my amendment today, which I believe could serve as a 
catalyst to address two issues that have dominated much of our 
discussion over the past months: 1) the need to pursue alternative 
energy sources, and 2) the need to stimulate our nation's industrial 
sector to lead in that pursuit.
    I come from Houston, Texas, what has been called the energy capital 
of the world, and I appreciate that oil and fossil fuels deserve much 
credit for driving our economy and prosperity over the past centuries. 
I know that coal, oil, and natural gas will continue to play a large 
role over the next century at meeting our energy needs. However, we all 
know that fossil fuels are not the wave of the new millennium. Our 
children, especially in the inner cities like in my District of 
Houston, have an epidemic of asthma from breathing smog and polluted 
air. We are overly dependent on foreign sources of oil, bought from 
people that we would prefer not be reliant on. No matter how safe we 
try to be, shipping and pumping oil will occasionally lead to spills 
and leaks that have tremendous detrimental effects on the environment.
    But there is great hope on the horizon. New technologies are 
emerging rapidly to harvest the power of the sun, the wind, and of 
water to drive progress in the new millennium. Hydrogen holds great 
promise for becoming a fuel of the future to power our cars and trucks 
and even household devices with fuel cells. If we know that such 
technologies will be the way of the future--it is just smart policy to 
do all we can to stimulate the transition to go as efficiently and 
expeditiously as possible. We must also ensure that once the transition 
occurs, that it is American companies that are on the cutting edge of 
technology--leading and enjoying a good proportion of market share.
    Unfortunately, that is not what has been happening so far. The 
Japanese have been a step ahead of the U.S. on producing hybrid and 
hydrogen fuel cell cars. Solar power is coming along fairly well, but 
cost-effective engineering is still progressing too slowly. The Dutch 
have become the world leaders in wind power generation. I am proud to 
note that Shell Oil in my District has recognized that the times are 
changing, and has formed Shell Hydrogen to start taking the lead in 
hydrogen fuel technology--but more must be done.
    The Federal Government role should be to make investments to 
stimulate these industries and to leverage investments out of the 
private sector to encourage them to take the lead on energy issues. 
NASA is one agency that has already been successful at this, but I feel 
they can do even more. For example, NASA has been using hydrogen fuels 
in rockets for decades. They may have expertise and data from past or 
future work that could be of value to industry. NASA also has great 
experience in research and development of solar cells.
    Another example is that a windmill is basically an airplane built 
backward. It has a propeller and a turbine. Many of the materials and 
the aerodynamics are the same. There is no reason that the U.S. the 
leader in aviation technology should be lagging behind in wind power 
generation, especially when our civil aviation industry is struggling 
with few new orders, and a decreased market share. I would love to see 
Boeing put their engineers to work designing and building the next 
generation of wind turbines. NASA's aeronautics division may provide 
them with some guidance and stimulation.
    My amendment will require the Department of Energy to enter into 
discussions with the NASA Administrator, which will enable DOE to tap 
into the vast expertise in energy gained from past and future 
research--in order to find technologies that could bolster the existing 
commercial applications programs at the DOE.
    I would like ask unanimous consent to enter into the record a news 
release from NIST dated March 5, 2003, titled, ``Six Federal Agencies 
to Help Open the `GATE' to Enhanced Manufacturing R&D.;'' It describes 
that six agencies, including NIST, DOE, NASA, and the Office of Energy 
Efficiency and Renewable Energy, have launched an effort to improve the 
exchange of information about their technical programs and to 
collaborate, in order to ``enhance payoffs from federal investments.'' 
I applaud that effort.
    Unfortunately, they have limited their initial priority areas of 
focus to intelligence in manufacturing and nanotechnology.
    Energy security is absolutely vital to our nation's long-term 
survival, and the well-being of our environment. My amendment will 
build on the existing agreement between the six agencies, by broadening 
their focus to include DOE/NASA interactions meant to stimulate 
progress in development of alternative and renewable energy sources.
    It will have minimal cost, but could yield great benefits. Mr. 
Chairman, I hope that you will support this smart-policy piece of 
legislation.
    I would also like to add my support to the excellent amendments 
being offered today by my Democratic colleagues. Our energy needs are 
complex. We need to be approaching energy policy from multiple 
directions, with diverse input, in a bipartisan fashion, in order to 
develop creative strategies for fueling the economy of the future in 
the sensitive global environment. This committee has done a good job of 
doing that in the past, and I hope we will continue to do so today. 
Thank you.



    Chairman Boehlert. Thank you very much, Ms. Jackson Lee. 
The Chair feels the amendment adds to the quality and 
comprehensive nature of the bill and is prepared to accept it. 
Is there anyone who seeks recognition? If not, the vote is on 
the amendment. All in favor, say aye. All opposed, nay. The 
ayes have it. The amendment is passed. Next up, Mr. 
Rohrabacher.
    Mr. Rohrabacher. Thank you very much, Mr. Chairman. I 
apologize for being running in and out during this markup. 
There is another markup in my other major committee going on at 
precisely the same time. And we have all had that experience.
    Chairman Boehlert. There is a major committee other than 
the Science Committee?
    Mr. Rohrabacher. These are my two main committees, for 
sure. And I--this legislation----
    Chairman Boehlert. Let us just designate the amendment. The 
Clerk will read.
    Mr. Rohrabacher. Okay.
    The Clerk. Amendment to H.R. 238 offered by Mr. 
Rohrabacher.

    [The amendment appears on pages 237-244.]

    Chairman Boehlert. Thank you very much. Mr. Rohrabacher is 
recognized for five short minutes.
    Mr. Rohrabacher. Thank you very much. This amendment is 
actually motivated by some of the testimony that we have heard 
here as of late about the lack of participation by American 
born students in our graduate programs of science and 
engineering and mathematics. And we learned during our hearings 
from various different institutions that only--that 54 percent 
of all Ph.D.s that were being given in engineering and sciences 
are going--54 percent of them are going to people who are not 
American citizens and are not residents of our country. So this 
amendment is designed to try to take a step in the right 
direction in dealing with that problem by--and it could be 
duplicated. This will be for the Department of Energy, but it 
could be duplicated for NASA, EPA, NOAA, the Patent Office or 
any number of things. We might make it a much larger bill or we 
might just do this one at a time.
    But this amendment would provide scholarships for American 
young people who want to have--want to go to do graduate work, 
Masters and Ph.D. work at our universities and colleges. It 
provides for all of their expenses and what--and for pay back, 
they will have to work for the Department of Energy, in this 
particular case, for two years for every year of educational 
subsidy that is provided them. And I think that the need speaks 
for itself. We need to make sure our young people who now don't 
go on to get their Ph.D.s and Masters degrees in the sciences 
because they have been offered good jobs, and it is an 
incredible penalty for them to go on with their education, 
compared to foreign students who, if they immediately take a 
job, they actually are making less money than if they are 
subsidized in their education by their governments. So this, I 
think, would be a tremendous help, especially to young people 
of middle class and people who are in economic need, to get 
involved in the sciences. And I would hope that this would have 
support on both sides of the aisle.
    Chairman Boehlert. The gentleman is to be commended for the 
leadership he is evidencing in this very important subject, and 
it shows the value of the hearings we have----
    Mr. Rohrabacher. Right.
    Chairman Boehlert.--in preparation. As you know, Mr. 
Rohrabacher, this is something that Mr. Hall and I feel very 
strongly about, and we are working on it in a number of other 
areas. This is our opportunity today. I commend you for seizing 
it. Is there anyone else that feels compelled to speak on the 
subject? If not, the vote is on the amendment. All in favor, 
say aye. No. The ayes appear to have it, and the amendment is 
passed.
    Next we will go to the en bloc amendment. I ask that the 
amendment offered by Mr. Hall and myself be considered en bloc. 
The Clerk will report.
    The Clerk. En bloc amendments to H.R. 238 offered by Mr. 
Boehlert and Mr. Hall.

    [The amendment appears on pages 270-324.]

    Chairman Boehlert. The Chair recognizes myself for such 
time as I may consume. I won't take much time in describing the 
amendment simply because we are all well versed as we are in 
the rest of the program for today. And I would point out that 
we have a national security briefing at 4:00, and it is the 
Chair's intention, without trying to rush things, to complete 
by 4:00, so we can all take advantage of that national security 
briefing. So I will be brief.
    I described the primary provisions in my opening statement. 
I am sure there are many Members who contributed provisions who 
want to be recognized to describe their portions of the bill. 
But once again, we are operating under some time constraint, so 
I hope that you would all be considerate of each other's time 
in our desire to go to that very important national security 
briefing. So just let me say that this en bloc amendment 
updates the bill, adds several useful new programs to the DOE 
portfolio, and I urge its adoption. Mr. Hall.
    Mr. Hall. Mr. Chairman, you have stated it very well, and I 
think that this is also in recognition of the great work of our 
staffs and that they have worked together on this longer hours, 
really, than we have put on it, much longer. And I think we 
have arrived at a good bill, and of course, I urge its 
adoption.
    Chairman Boehlert. Thank you so much for, again, noting the 
outstanding work of both the minority and the majority staff. 
These are dedicated professionals who work very long and very 
hard to make possible a markup like today's markup. It doesn't 
happen just like that, it happens because there are hours and 
hours and weeks and weeks of hard work put into this. And so 
all of us should commend our professional staff for the very 
professional job it does. And thank you all from the part--my 
part, Mr. Hall's part. Let us give them a hand. The Chair 
recognizes Mr. Wu.
    Mr. Wu. Thank you, Mr. Chairman. I ask unanimous consent 
that my amendment concerning electrical grids and setting 
standards for research be included in the en bloc amendment. 
And I thank you for working with me and thank staff for working 
with each other.
    Chairman Boehlert. Without objection, because this has been 
worked out on a bipartisan basis, so ordered.

    [The amendment appears on pages 325-326.]

    Chairman Boehlert. Anyone else seek--Mrs. Biggert.
    Mrs. Biggert. Thank you, Mr. Chairman. I would just ask 
that my written statement be entered into the record.
    Chairman Boehlert. Without objection, so ordered.
    [The prepared statement of Mrs. Biggert follows:]
           Prepared Statement of Representative Judy Biggert
    Thank you, Mr. Chairman. I know I have only been Chairman of the 
Energy Subcommittee for a very short time, but it has been a real honor 
and pleasure to work with you and your excellent staff to help shape a 
very important portion of much needed comprehensive energy legislation.
    America now has the motivation--perhaps like no other time since 
the oil crisis of the '70's--to find newer and better ways to meet our 
energy needs. Our dependence on foreign oil sources is up to 55 to 60 
percent. Renewed violence in the Middle East, the war against 
terrorism, and now the war with Iraq will continue to cause more 
volatility in energy markets and energy prices than any of us will find 
acceptable. Consider that the United States is home to only two percent 
of the world's supply of oil, and has been It doesn't take a chemical 
engineer or a foreign policy expert to understand what that equals--
continued dependence on increasingly uncertain sources.
    What I liked most about the National Energy Policy proposed by 
President Bush two years ago next month is that it emphasizes the use 
of advanced technology to expand and diversify our energy supply while 
reducing our energy demand. But advanced technologies don't grow on 
trees, they grow out of basic scientific research like that supported 
by the Department of Energy at our universities and national 
laboratories.
    That's why we are here today. To make sure the Department of Energy 
has the resources it needs for America to remain a leader in science 
and technology.
    I particularly want to thank the Chairman for working with me to 
increase funding for the DOE Office of Science, the Nation's primary 
supporter of research in the physical sciences.
    In a report released at the end of August last year, the 
President's Council of Advisors on Science and Technology, or P-CAST, 
recommended that R&D; for the physical sciences and engineering should 
be brought to parity with the life sciences over the next five budget 
cycles. As the P-CAST report points out, ``It is widely understood and 
acknowledged that the interdependencies of the various disciplines 
require that all advance together.''
    By incorporating provisions from my bill, H.R. 34, the Energy and 
Science Research Investment Act, the manager's amendment effectively 
provides a 60 percent increase for the DOE Office of Science over four 
years.
    This increase is needed and warranted. While federally supported 
medical research like that conducted by NIH has doubled, funding for 
research in the physical sciences has remained stagnant. In each of the 
last three fiscal years, the Office of Science has been flat funded. In 
constant dollars, the budget for the Office of Science is still only at 
its 1990 level. The additional funding this bill provides will enable 
the Office of Science to support core programs while investing in 
important new user facilities and new initiatives, like nanotechnology 
and Genomes to Life.
    I also want to thank the Chairman for including in the manager's 
amendment provisions from a bill I introduced in the 107th Congress to 
strengthen nuclear research and nuclear science and engineering 
programs at America's universities and colleges.
    Fewer Americans are entering this field and even fewer institutions 
are left with the capability to train them. In fact, the supply of 
four-year trained nuclear scientists has hit a 35-year low and there 
are only 28 universities that operate research reactors--less than half 
the number there were in 1980.
    These statistics tell but the beginning of the story, however. 
Current projections are that 25 to 30 percent of the nuclear industry's 
workforce and 76 percent of the nuclear workforce at our national 
laboratories are eligible to retire in the next five years.
    Nuclear science and engineering in the United States is a 50-year 
success story that has been written by some of the brightest minds the 
world has ever known. America has truly been blessed as the world 
leader in this area, and provisions in the manager's amendment will 
ensure we maintain our leadership.
    All in all, this is an excellent bill made better by the manager's 
en bloc amendment. I urge my friends on the committee to support both.
    I yield back the balance of my time.

    Chairman Boehlert. Ms. Eddie Bernice Johnson.
    Ms. Johnson. Thank you, Mr. Chairman. And I would like to 
commend you and the staff on the hydrogen provisions in this 
bill in conjunction with the President's Hydrogen Initiative. 
These sections prescribe aggressive steps toward the 
development of a clean and efficient hydrogen economy, 
especially in regards to the transportation sector. However, I 
would like to emphasize the infrastructure and stationary 
applications of hydrogen production and that these applications 
can not be overlooked, as they are essential to the widespread 
adoption of hydrogen technologies. And so I would like to offer 
the amendment, which you have already accepted, I think, en 
bloc.
    Chairman Boehlert. Oh, to be added to the en bloc 
amendments?
    Ms. Johnson. Yes.
    Chairman Boehlert. Without objection, so ordered.
    [The prepared statement of Ms. Johnson follows:]
       Prepared Statement of Representative Eddie Bernice Johnson
    Thank you Mr. Chairman.
    I would like to commend you on the hydrogen provisions in this 
bill. In conjunction with the President's Hydrogen Initiative, these 
sections prescribe aggressive steps towards the development of a clean 
and efficient hydrogen economy, especially in regards to the 
transportation sector.
    However, I would like to emphasize the infrastructure and 
stationary applications of hydrogen production.
    These applications cannot be overlooked as they are essential to 
the widespread adoption of hydrogen technologies.
    Therefore I would like to offer this amendment to the Boehlert/Hall 
En Bloc Amendment.
    It simply adds another goal highlighting a hydrogen fuels 
infrastructure for stationary as well as mobile hydrogen fuel cells, 
and ensures that future hydrogen fuels will be a safer, cleaner, more 
efficient and better performing improvement over our current fuels.

    [The amendment appears on page 327.]

    Chairman Boehlert. Thank you very much.
    Ms. Johnson. Thank you.
    Chairman Boehlert. Anyone else? Dr. Burgess.
    Mr. Burgess. Thank you, Mr. Chairman. I would also request 
unanimous consent that my written comments be entered in the 
record. I----
    Chairman Boehlert. Without objection.
    [The prepared statement of Mr. Burgess follows:]
        Prepared Statement of Representative Michael C. Burgess
    Mr. Chairman, I rise this afternoon in support of the Boehlert-Hall 
En Bloc amendment to H.R. 238, The Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003.
    America needs a comprehensive energy bill so that we can ensure 
achievement of our goal of national energy independence.
    President Bush, during his State-of-the-Union Address, proposed a 
bold FreedomCAR and Hydrogen Fuel Initiative and estimated that the 
first car driven by a child born today could be powered by hydrogen 
technology. The goal of this new FreedomCAR program is to make hydrogen 
fuel cell technology a viable, affordable and convenient technology 
that we can use to power our automobiles. There are many benefits, 
including a cleaner environment, the possibility that research can spur 
further technological innovation, and especially greater energy 
independence.
    The Boehlert-Hall amendment would authorize President Bush's 
FreedomCAR program and Hydrogen Initiative, authorize the President's 
funding request of $1.7 billion over five years, and create a research, 
development, demonstration, and commercial application program for 
hydrogen-powered stationary fuel cells and fuel cell vehicles and the 
refueling infrastructure to support them.
    But as we consider comprehensive energy policy, we must also take 
seriously our responsibility to ensure that taxpayer dollars are spent 
wisely. The En Bloc amendment achieves this by further specifying how 
federal research dollars should be spent, and by requiring the 
Department of Energy to submit a detailed plan to Congress describing 
the program's research agenda, the technical milestones used to 
evaluate the performance of the program, and the role that national 
laboratories, universities, and other stakeholders will play.
    In addition, the En Bloc amendment will support nanotechnology 
research and development, which is important to the University of North 
Texas in my district, by modifying H.R. 238 to authorize the Department 
of Energy's portion of the program. This will ensure continued U.S. 
leadership in nanotechnology across scientific and engineering 
disciplines.
    Again, thank you, Mr. Chairman, for allowing me the opportunity to 
express my thoughts about the research and development title of the 
Energy Bill.

    Mr. Burgess.--would also just add that the nanotechnology 
research and development is so vitally important to the 
University of North Texas in my District, and I commend the 
Chairman and the Ranking Member for their leadership in support 
of this program. We must ensure the continued United States 
leadership in nanotechnology across the scientific and 
engineering disciplines.
    Chairman Boehlert. Thank you very much. And we couldn't 
agree more with that observation, Doctor, and I thank you for 
making it. Ms. Woolsey.
    Ms. Woolsey. Mr. Chairman, I, too, would like to enter my 
long words in the record, but what they say is thank you very 
much for including in your bill Section 202, which establishes 
a DOE program to help bring renewable energy technologies to 
public buildings. Thank you very much.
    Chairman Boehlert. Thank you very much. Without objection, 
so ordered.
    [The prepared statement of Ms. Woolsey follows:]
           Prepared Statement of Representative Lynn Woolsey
    Mr. Chairman, today represents another opportunity for this 
committee to address the future energy needs of our country, and 
determine the direction DOE's R&D; and commercial applications programs 
should take. No doubt, those around this dias have varying visions of 
what they want our energy future to look like--that's why I commend the 
Chairman's success in bringing a bipartisan bill forward today for 
consideration.
    The base bill, H.R. 238, contains numerous provisions that we 
worked on last Congress during Committee consideration and conference 
negotiations of an energy bill when I was the Ranking Member of the 
Energy Subcommittee. As a Californian, and a Member from one of the 
most environmentally conscious districts in the country, my time in 
Congress has focused on an energy future that relies increasingly on 
energy sources that are renewable and minimize impacts on our 
environment. That's why I'm pleased that H.R. 238 embraces our previous 
negotiations on R&D; goals and authorization funding levels for 
renewable energy and energy efficiency measures as well as the 
establishment of a Next Generation Lighting Initiative and a National 
Building Performance Initiative. These all remain important elements in 
our efforts for a secure energy future. We must wean ourselves from 
dirty fossil fuel energy sources, which means we must make new 
investments in renewable energy and energy efficient technologies and 
help bring these technologies to the marketplace.
    That's why this Congress I again introduced the ``Renewable Energy 
& Energy Efficiency Act,'' H.R. 1343. A cornerstone of this bill is its 
aggressive goals and funding levels for renewable energy and energy 
efficient technologies. H.R. 1343 also has several commercial 
application provisions, and, I'm pleased that this en bloc amendment 
incorporates one based on my bill's Section 202 to establish a DOE 
program to help bring renewable energy technologies to public 
buildings.
    Mr. Chairman, Section 202 of my bill is based on the work of the 
City of Sebastopol in my district. In conjunction with staff and 
students at Sonoma State University, the City has developed a plan to 
deploy solar technology in Sebastopol's residential, commercial, and 
municipal buildings. This plan represents a real commitment by 
Sebastopol to make a significant transition to using renewable energy, 
and I'm proud that the Federal Government--through my provision in the 
en bloc--can now partner with local municipalities like Sebastopol to 
secure their energy future.
    Thank you also, Mr. Chairman, for including in the en bloc a 
clarification to Section 106, the National Building Performance 
Initiative, to assure that ``whole building practices'' are part of the 
Initiative. Last Congress I proposed this Initiative to ensure that 
federal agency coordination among its building technology-related 
programs remained forward thinking. ``Whole building practices'' will 
let us draw on our improved understanding of how decisions made in the 
design stage and how buildings are operated--including use of 
daylighting, solar and renewable technologies, and state-of-the-art 
ventilation systems--can positively affect the performance of the 
building and people working and studying there. These and other best 
building practices are key to making sure that buildings are energy-
efficient over the next several decades.
    Mr. Chairman, I must also state for the record that I have an 
overarching concern about the level of funding in today's bill for 
nuclear R&D.; I'm concerned about this committee making a priority an 
industry that many believe we should move away from. While the industry 
claims that nuclear power is safe, the fact remains that people are 
skeptical--it's a dangerous, expensive energy source and has not 
delivered on decades-old promises of energy security and independence. 
The time has come to move away from nuclear power for many reasons: the 
danger of radioactive contamination; the unsolved problem of nuclear 
waste; the threat of an accident; the threat of air and water 
pollution; resource depletion; and nuclear proliferation.
    Mr. Chairman, despite my disagreement on this bill's funding levels 
for nuclear energy, overall I commend you for working with our 
Democratic Members on the Committee to find common ground on the 
breadth and depth of our interests. That's why I'll support this en 
bloc amendment and favorably reporting H.R. 238 out of Committee. I 
urge my colleagues to do so as well.
    Thank you.

    Chairman Boehlert. Dr. Ehlers.
    Mr. Ehlers. Thank you, Mr. Chairman. I am sorry I didn't 
speak up quickly enough, but I wanted to have a quick 
conversation with Ms. Johnson on her amendment. As I read this, 
and I just want to make certain I am reading this properly, and 
I want the record to show that. The way it is worded, I believe 
it indicates that part C, the improved overall efficiency in 
zero or near-zero emissions when compared to fuels used in 
2003, would also include the overall efficiency and zero or 
near-zero emissions that are involved of the production of the 
hydrogen, not just the use of the hydrogen in the fuel cells, 
but also the process that would produce the hydrogen. And was--
I just wanted to--and I will yield time to Ms. Johnson. Was 
that the intent to include the production process in that as 
well as the use within the fuel cells?
    Ms. Johnson. Yes, Mr. Ehlers. That is the intent.
    Mr. Ehlers. All right. It is not crystal clear, and I think 
it is going to be a very important point. And I would like to 
request of Ms. Johnson that perhaps we could make--offer an 
additional amendment to be taken up at the time it goes to the 
Floor, just to very clearly make that statement.
    Ms. Johnson. Mr. Chairman.
    Chairman Boehlert. That is fine. I think this gentleman 
agrees, and we will make sure that that is clear in the report 
language. Thank you for that observation, Dr. Ehlers.
    Ms. Johnson. Thank you.
    Mr. Ehlers. I yield back, and I thank you.
    Chairman Boehlert. Is there anyone else who seeks 
recognition?
    Mr. Smith of Michigan. I think you said earlier--I want my 
statement, but I think you said earlier, all statements are--
would be in the record, is that correct?
    Chairman Boehlert. That is right, because we can't wait to 
read the eloquent prose that people like you, from Michigan. 
Thank you so much. Mr. Bell.
    Mr. Bell. Thank you, Mr. Chairman. I don't want to make you 
read my eloquent prose. If I could just share it with you here. 
I wanted to thank you for adopting my language into the en bloc 
amendment and ensuring 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.
    Nanotechnology holds the promise to radically increase the 
strength and reduce the weight of many commercial projects--
products. These new super strong, lightweight products will be 
built with minimal waste byproduct production and will reduce 
energy consumption. Nanotechnology can make energy production 
cheap and relatively pollution free by, for example, reducing 
the cost of solar and fuel cell technology 10 to 100 fold. 
Nanotech light technology will replace incandescent and 
fluorescent lights with enormous energy cost savings across 
every sector of the economy. So you can see how important it 
is. I thank you for adopting the language. Thank you, Mr. 
Chairman.
    Chairman Boehlert. Thank you very much. We are going to 
deal with nano--the Nanotechnology Initiative right after the 
Easter recess. I would hope everybody could bear with us just a 
couple of more minutes, because we will be able to complete the 
bill, and then we can go on to our other important business. 
The question is on the amendment. All in favor, say aye. 
Opposed, no. The ayes have it. The amendment is passed. What is 
next? Mr. Bell. Mr. Sherman and Mr. Bell. Who wants to address 
the----
    Mr. Bell. Thank you, Mr. Chairman. I have an amendment at 
the desk.
    Chairman Boehlert. The Clerk will read.
    The Clerk. Amendment offered by Mr. Sherman and Mr. Bell to 
the amendments offered by Mr. Boehlert.

    [The amendment appears on page 328.]

    Chairman Boehlert. The gentleman is recognized for five 
minutes.
    Mr. Bell. Thank you, Mr. Chairman. I am offering this 
amendment on behalf of myself and my colleague, Mr. Sherman. 
This amendment establishes a program to examine societal and 
ethical issues that may be associated with new developments in 
nanotechnology. I expect developments in nanotechnology to 
improve our lives, but as with all technologies, there may be 
some instances where we create new challenges even as we solve 
existing problems.
    I believe a program of this nature will help us to maximize 
the benefits of nanotechnology while avoiding any potential 
problems. This language is very similar to the language in H.R. 
766, the nanotechnology bill introduced by Chairman Boehlert 
and Representative Honda. It adds a reporting requirement to 
enable us to track the projects that are funded in this area. 
Too little of our federal dollars are spent to ensure that 
society reaps only positive benefits from nanotechnology.
    History has many examples of promising technologies whose 
hidden costs were only determined after widespread adoption. 
These include nuclear power, which continues to generate an 
enormous amount of toxic waste, DDT, which wiped out malaria 
mosquitoes in the U.S. but was harmful to animal life, semi-
conductor manufacturing, which ushered in the computer 
revolution but resulted in environmental contamination, and the 
list goes on. We should ensure that the environmental and 
toxicological impacts of nanotechnological applications are 
studied during the development process so that problems can be 
spotted early and fixed before damage is done. Prevention is 
better and cheaper than clean up. I would ask for your support 
for the amendment.
    Chairman Boehlert. Thank you very much. We have had some 
discussions on this, and I would ask unanimous consent that the 
gentleman be allowed to amend his original amendment to reflect 
the outcome of those discussions on a bipartisan basis. Without 
objection, so ordered. And will you offer that specific 
language?
    Mr. Bell. Yes, Mr. Chairman.
    Chairman Boehlert. All right. And then having the 
understanding that this has been accepted on a bipartisan basis 
after some very thorough discussion on a subject matter we are 
all interested in, nanotechnology, I would further ask 
unanimous consent that this amended amendment be included in 
the en bloc amendment just previously approved. Is there any 
objection?
    Ms. Lofgren. Reserving the right to object.
    Chairman Boehlert. Who do I hear from?
    Ms. Lofgren. You are hearing from----
    Chairman Boehlert. Yes, Ms. Lofgren.
    Ms. Lofgren.--me, and I am reserving the right to object. I 
will not object. I missed the chance to thank you during the en 
bloc amendment, because I was down in judiciary, and I do thank 
you for your inclusion of the fusion bill, and I withdraw my 
reservation.
    Chairman Boehlert. Thank you so much. I appreciate that.
    Mr. Costello. Mr. Chairman.
    Chairman Boehlert. Who seeks recognition? Mr. Costello.
    Mr. Costello. Mr. Chairman, I, too, would like to thank 
you. I was in the side ante room when we did the en bloc 
amendment, and I just wanted to thank you for working with us, 
you and Mr. Hall in particular, for working with us on the 
Clean Coal Technology. We appreciate it very much and look 
forward to going to conference on this bill.
    Chairman Boehlert. Thank you very much. Let me just--the 
Chair would like to make an observation. This is my 21st year, 
only my 3rd year in the Chair, but we spend a lot of time at 
these hearings thanking each other for doing things the right 
way. We are civil. We are bipartisan. We consider each other's 
point of view. We don't always agree with it. And I take great 
pride in the manner in which this committee operates on both 
sides of the aisle and great pride in the professionalism 
evident by the staff in all instances. So while I welcome the 
praise, let me tell you, it is due to all of us for the way we 
operate this committee. Now the only thing standing in the way 
of completing our business is my distinguished colleague from 
Colorado, Mr. Udall. And at this juncture, the Chair will 
recognize him.
    Mr. Udall. Thank you, Mr. Chairman. I do have--and I will 
get it right this time. I have an amendment at the desk.
    Chairman Boehlert. The Clerk will report. Don't go too far, 
because we have got a quorum we want to keep.
    The Clerk. Amendment to H.R. 238 offered by Mr. Udall.

    [The amendment appears on pages 246-269.]

    Mr. Udall. Mr. Chairman, I ask unanimous consent that the 
amendment be considered as read.
    Chairman Boehlert. Without objection, so ordered. The 
gentleman is recognized for five minutes.
    Mr. Udall. Thank you, Mr. Chairman. I would like to offer 
at this time the amendment that we discussed. It is based on a 
bill that I introduced in the last Congress and that I 
reintroduced today, the Global Change Research and Data 
Management Act. The bill would update and reorient the current 
U.S. Global Change Research Program, which was established by 
law in 1990. Over the past decade, the research program has 
significantly advanced our scientific knowledge of Earth's 
atmosphere and climate, and it has provided us with a wealth of 
new data and information about the functioning of our planet.
    However, the program has not produced sufficient 
information about terms of content and format to be the basis 
for sound decisions. In its recent review of the 
Administration's draft strategic plan for the research program, 
the National Academy of Sciences acknowledged the need for 
research to evaluate strategies to mitigate and adapt to the 
impacts of global change. And the Academy recommended that the 
plan be revised to enhance efforts to support decision making.
    My bill would reorient the program to accomplish these 
goals. It would require the Administration to identify and 
consult with members of the user community in developing the 
research program research plan. The bill would also mandate the 
involvement of the National Governor's Association in 
evaluating the program from the perspective of the user 
community. These steps would help to ensure that the 
information needs of the policy community will be met as 
generously as the funding needs of the academic community. And 
I think that is an important emphasis.
    My bill would also establish a new interagency working 
group to coordinate federal policies on data management and 
archiving. Advances in computer monitoring and satellite 
technologies have vastly expanded our ability to collect and 
analyze data. We must do a much better job of managing and 
archiving these important data resources to support the work of 
current, and I think even more importantly, future scientists 
and policy makers.
    As was clear from the impasse on climate provisions of the 
energy bill in the 107th Congress, we have yet to agree on how 
much more information, if any, is needed before we take actions 
to slow the effects of human activities on global change. These 
are tough policy questions that we will continue to wrestle 
with. This bill does not offer any specific policy direction, 
but it does affirm the need for continued strong federal 
support for global change research, and it does map out a new 
emphasis on production of information needed to inform these 
important policy debates.
    As you know, Mr. Chairman, the House passed the energy bill 
in the 107th. Congress included no climate provisions. This 
effectively left the House without a negotiating position, 
which made the conference difficult. I am offering this 
amendment today both because I believe it is worthy of the 
Committee's consideration and also because I would like to see 
this committee take action in an area of its jurisdiction. I 
would urge support for my amendment, and I thank you, Mr. 
Chairman, for the time at this late hour.
    Chairman Boehlert. Thank you very much. The Chair will 
reluctantly oppose this amendment, and let me say in addition 
to that that the Chair's heart is in the same place as the 
gentleman from Colorado in dealing with the very important 
subject of climate change. And the Chair will be willing to 
work with the gentleman from Colorado as we prepare for the 
Floor and might yet agree on an amendment that we would co-
author for the Floor. But we have not had the opportunity to 
really give the thought that this amendment requires to it 
prior to today's markup. So I would give you two options: one 
if you withdraw it and we will work together and maybe develop 
something that we can co-author for the Floor as a stand alone 
amendment, or two go forward and we have the role call vote and 
go from there. And I will reluctantly vote no. The choice is 
yours. Stand corrected. Stand corrected. Chief of Staff reminds 
me that rather than a Floor amendment, we might have a separate 
stand-alone bill out of this committee. So that will put the 
Committee on record dealing with the subject in a way that I 
think you and I would both wish to do to advance work in this 
important area of climate change. Whether or not we will get to 
the Floor with the bill is another question, but we will be 
clearly on record as we go to Floor debate on the overall 
energy policy.
    Mr. Udall. Will the gentleman yield?
    Chairman Boehlert. I would be glad to yield.
    Mr. Udall. Thank you, Mr. Chairman. If we could move this 
bill that I brought forward, I think the Chairman's offer is 
one that makes good sense. I would like to see it come out of 
the Committee and have a chance to at least be considered----
    Chairman Boehlert. That would be the Chair's intent. Raise 
my right hand. I do solemnly swear.
    Mr. Udall. Would the Chair yield?
    Chairman Boehlert. I would be glad to yield.
    Mr. Udall. Mr. Chairman, you have always operated and kept 
your word, and in that spirit, I would withdraw the amendment 
and look forward to working with you to move my bill in the 
near future.
    Chairman Boehlert. Thank you so much. Without objection, so 
ordered. Are there any other amendments? Hearing none, the 
question is on the bill, H.R. 238, Energy Research Development, 
Demonstration, and Commercial Application Act of 2003 as 
amended. All in favor say aye. Opposed, no. In the opinion of 
the Chair, the ayes have it. I now recognize Mr. Hall for a 
motion.
    Mr. Hall. Mr. Chairman, I move that the Committee favorably 
report H.R. 238 as amended to the House with the recommendation 
that the bill, as amended, do pass. Furthermore, I move that 
staff be instructed to prepare the legislative report, make 
necessary technical and conforming changes, and that the 
Chairman take all necessary steps to bring the bill before the 
House for consideration.
    Chairman Boehlert. The Chair notes the presence of a 
reported quorum. The question is on the motion to report the 
bill favorably. Those in favor of the motion will signify by 
saying aye. Opposed, no. The ayes appear to have it, and the 
bill is favorably reported. Without objection, the order--the 
motion to reconsider is laid upon the table. I move that 
Members have two subsequent calendar days in which to submit 
supplemental minority or additional views on the measure. I 
move pursuant to clause 1 of rule 22 of the House--rules of the 
House of Representatives that the Committee authorize the 
Chairman to offer such motions as may be necessary in the House 
to go to conference with the Senate on the bill H.R. 238 or a 
similar Senate bill. This concludes our committee markup. I 
thank my colleagues for their indulgence. The meeting is 
adjourned.
    [Whereupon, 4:03 p.m., the Committee was adjourned.]
                         Amendments to H.R. 238

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