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109th Congress                                        Report
                        HOUSE OF REPRESENTATIVES
1st  Session                                         109-190
_______________________________________________________________________




                       ENERGY POLICY ACT OF 2005

                               ----------                              

                           CONFERENCE REPORT

                         [To accompany H.R. 6]






                 July 27, 2005.--Ordered to be printed











                      ENERGY POLICY ACT OF 2005


















109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-190

======================================================================
 
                       ENERGY POLICY ACT OF 2005

                                _______
                                

                 July 27, 2005.--Ordered to be printed

                                _______
                                

 Mr. Barton of Texas, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                         [To accompany H.R. 6]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
6), to ensure jobs for our future with secure, affordable, and 
reliable energy, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Advanced Building Efficiency Testbed.
Sec. 108. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Sec. 111. Enhancing energy efficiency in management of Federal lands.

            Subtitle B--Energy Assistance and State Programs

Sec. 121. Low income home energy assistance program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Sec. 127. State Technologies Advancement Collaborative.
Sec. 128. State building energy efficiency codes incentives.

                  Subtitle C--Energy Efficient Products

Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Energy labeling.
Sec. 138. Intermittent escalator study.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Report on failure to comply with deadlines for new or revised 
          energy conservation standards.

                       Subtitle D--Public Housing

Sec. 151. Public housing capital fund.
Sec. 152. Energy-efficient appliances.
Sec. 153. Energy efficiency standards.
Sec. 154. Energy strategy for HUD.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Use of photovoltaic energy in public buildings.
Sec. 205. Biobased products.
Sec. 206. Renewable energy security.
Sec. 207. Installation of photovoltaic system.
Sec. 208. Sugar cane ethanol program.
Sec. 209. Rural and remote community electrification grants.
Sec. 210. Grants to improve the commercial value of forest biomass for 
          electric energy, useful heat, transportation fuels, and other 
          commercial purposes.
Sec. 211. Sense of Congress regarding generation capacity of electricity 
          from renewable energy resources on public lands.

                      Subtitle B--Geothermal Energy

Sec. 221. Short title.
Sec. 222. Competitive lease sale requirements.
Sec. 223. Direct use.
Sec. 224. Royalties and near-term production incentives.
Sec. 225. Coordination of geothermal leasing and permitting on Federal 
          lands.
Sec. 226. Assessment of geothermal energy potential.
Sec. 227. Cooperative or unit plans.
Sec. 228. Royalty on byproducts.
Sec. 229. Authorities of Secretary to readjust terms, conditions, 
          rentals, and royalties.
Sec. 230. Crediting of rental toward royalty.
Sec. 231. Lease duration and work commitment requirements.
Sec. 232. Advanced royalties required for cessation of production.
Sec. 233. Annual rental.
Sec. 234. Deposit and use of geothermal lease revenues for 5 fiscal 
          years.
Sec. 235. Acreage limitations.
Sec. 236. Technical amendments.
Sec. 237. Intermountain West Geothermal Consortium.

                        Subtitle C--Hydroelectric

Sec. 241. Alternative conditions and fishways.
Sec. 242. Hydroelectric production incentives.
Sec. 243. Hydroelectric efficiency improvement.
Sec. 244. Alaska State jurisdiction over small hydroelectric projects.
Sec. 245. Flint Creek hydroelectric project.
Sec. 246. Small hydroelectric power projects.

                       Subtitle D--Insular Energy

Sec. 251. Insular areas energy security.
Sec. 252. Projects enhancing insular energy independence.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve 
          and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.

                         Subtitle B--Natural Gas

Sec. 311. Exportation or importation of natural gas.
Sec. 312. New natural gas storage facilities.
Sec. 313. Process coordination; hearings; rules of procedure.
Sec. 314. Penalties.
Sec. 315. Market manipulation.
Sec. 316. Natural gas market transparency rules.
Sec. 317. Federal-State liquefied natural gas forums.
Sec. 318. Prohibition of trading and serving by certain individuals.

                         Subtitle C--Production

Sec. 321. Outer Continental Shelf provisions.
Sec. 322. Hydraulic fracturing.
Sec. 323. Oil and gas exploration and production defined.

                   Subtitle D--Naval Petroleum Reserve

Sec. 331. Transfer of administrative jurisdiction and environmental 
          remediation, Naval Petroleum Reserve Numbered 2, Kern County, 
          California.
Sec. 332. Naval Petroleum Reserve Numbered 2 Lease Revenue Account.
Sec. 333. Land conveyance, portion of Naval Petroleum Reserve Numbered 
          2, to City of Taft, California.
Sec. 334. Revocation of land withdrawal.

                    Subtitle E--Production Incentives

Sec. 341. Definition of Secretary.
Sec. 342. Program on oil and gas royalties in-kind.
Sec. 343. Marginal property production incentives.
Sec. 344. Incentives for natural gas production from deep wells in the 
          shallow waters of the Gulf of Mexico.
Sec. 345. Royalty relief for deep water production.
Sec. 346. Alaska offshore royalty suspension.
Sec. 347. Oil and gas leasing in the National Petroleum Reserve in 
          Alaska.
Sec. 348. North Slope Science Initiative.
Sec. 349. Orphaned, abandoned, or idled wells on Federal land.
Sec. 350. Combined hydrocarbon leasing.
Sec. 351. Preservation of geological and geophysical data.
Sec. 352. Oil and gas lease acreage limitations.
Sec. 353. Gas hydrate production incentive.
Sec. 354. Enhanced oil and natural gas production through carbon dioxide 
          injection.
Sec. 355. Assessment of dependence of State of Hawaii on oil.
Sec. 356. Denali Commission.
Sec. 357. Comprehensive inventory of OCS oil and natural gas resources.

                   Subtitle F--Access to Federal Lands

Sec. 361. Federal onshore oil and gas leasing and permitting practices.
Sec. 362. Management of Federal oil and gas leasing programs.
Sec. 363. Consultation regarding oil and gas leasing on public land.
Sec. 364. Estimates of oil and gas resources underlying onshore Federal 
          land.
Sec. 365. Pilot project to improve Federal permit coordination.
Sec. 366. Deadline for consideration of applications for permits.
Sec. 367. Fair market value determinations for linear rights-of-way 
          across public lands and National Forests.
Sec. 368. Energy right-of-way corridors on Federal land.
Sec. 369. Oil shale, tar sands, and other strategic unconventional 
          fuels.
Sec. 370. Finger Lakes withdrawal.
Sec. 371. Reinstatement of leases.
Sec. 372. Consultation regarding energy rights-of-way on public land.
Sec. 373. Sense of Congress regarding development of minerals under 
          Padre Island National Seashore.
Sec. 374. Livingston Parish mineral rights transfer.

                        Subtitle G--Miscellaneous

Sec. 381. Deadline for decision on appeals of consistency determination 
          under the Coastal Zone Management Act of 1972.
Sec. 382. Appeals relating to offshore mineral development.
Sec. 383. Royalty payments under leases under the Outer Continental 
          Shelf Lands Act.
Sec. 384. Coastal impact assistance program.
Sec. 385. Study of availability of skilled workers.
Sec. 386. Great Lakes oil and gas drilling ban.
Sec. 387. Federal coalbed methane regulation.
Sec. 388. Alternate energy-related uses on the outer Continental Shelf.
Sec. 389. Oil Spill Recovery Institute.
Sec. 390. NEPA review.

                   Subtitle H--Refinery Revitalization

Sec. 391. Findings and definitions.
Sec. 392. Federal-State regulatory coordination and assistance.

                             TITLE IV--COAL

                 Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.

                    Subtitle B--Clean Power Projects

Sec. 411. Integrated coal/renewable energy system.
Sec. 412. Loan to place Alaska clean coal technology facility in 
          service.
Sec. 413. Western integrated coal gasification demonstration project.
Sec. 414. Coal gasification.
Sec. 415. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Sec. 417. Department of Energy transportation fuels from Illinois basin 
          coal.

                  Subtitle C--Coal and Related Programs

Sec. 421. Amendment of the Energy Policy Act of 1992.

                     Subtitle D--Federal Coal Leases

Sec. 431. Short title.
Sec. 432. Repeal of the 160-acre limitation for coal leases.
Sec. 433. Approval of logical mining units.
Sec. 434. Payment of advance royalties under coal leases.
Sec. 435. Elimination of deadline for submission of coal lease operation 
          and reclamation plan.
Sec. 436. Amendment relating to financial assurances with respect to 
          bonus bids.
Sec. 437. Inventory requirement.
Sec. 438. Application of amendments.

                         TITLE V--INDIAN ENERGY

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

                        TITLE VI--NUCLEAR MATTERS

                Subtitle A--Price-Anderson Act Amendments

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

                   Subtitle B--General Nuclear Matters

Sec. 621. Licenses.
Sec. 622. Nuclear Regulatory Commission scholarship and fellowship 
          program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset for certain rehired Federal 
          retirees.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Whistleblower protection.
Sec. 630. Medical isotope production.
Sec. 631. Safe disposal of greater-than-Class C radioactive waste.
Sec. 632. Prohibition on nuclear exports to countries that sponsor 
          terrorism.
Sec. 633. Employee benefits.
Sec. 634. Demonstration hydrogen production at existing nuclear power 
          plants.
Sec. 635. Prohibition on assumption by United States Government of 
          liability for certain foreign incidents.
Sec. 636. Authorization of appropriations.
Sec. 637. Nuclear Regulatory Commission user fees and annual charges.
Sec. 638. Standby support for certain nuclear plant delays.
Sec. 639. Conflicts of interest relating to contracts and other 
          arrangements.

            Subtitle C--Next Generation Nuclear Plant Project

Sec. 641. Project establishment.
Sec. 642. Project management.
Sec. 643. Project organization.
Sec. 644. Nuclear Regulatory Commission.
Sec. 645. Project timelines and authorization of appropriations.

                      Subtitle D--Nuclear Security

Sec. 651. Nuclear facility and materials security.
Sec. 652. Fingerprinting and criminal history record checks.
Sec. 653. Use of firearms by security personnel.
Sec. 654. Unauthorized introduction of dangerous weapons.
Sec. 655. Sabotage of nuclear facilities, fuel, or designated material.
Sec. 656. Secure transfer of nuclear materials.
Sec. 657. Department of Homeland Security consultation.

                      TITLE VII--VEHICLES AND FUELS

                      Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual fueled vehicles.
Sec. 702. Incremental cost allocation.
Sec. 703. Alternative compliance and flexibility.
Sec. 704. Review of Energy Policy Act of 1992 programs.
Sec. 705. Report concerning compliance with alternative fueled vehicle 
          purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization 
          initiative.
Sec. 707. Emergency exemption.

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

                         Part 1--Hybrid Vehicles

Sec. 711. Hybrid vehicles.
Sec. 712. Efficient hybrid and advanced diesel vehicles.

                        Part 2--Advanced Vehicles

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

                         Part 3--Fuel Cell Buses

Sec. 731. Fuel cell transit bus demonstration.

                     Subtitle C--Clean School Buses

Sec. 741. Clean school bus program.
Sec. 742. Diesel truck retrofit and fleet modernization program.
Sec. 743. Fuel cell school buses.

                        Subtitle D--Miscellaneous

Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by Bicycling Program.
Sec. 756. Reduction of engine idling.
Sec. 757. Biodiesel engine testing program.
Sec. 758. Ultra-efficient engine technology for aircraft.
Sec. 759. Fuel economy incentive requirements.

                    Subtitle E--Automobile Efficiency

Sec. 771. Authorization of appropriations for implementation and 
          enforcement of fuel economy standards.
Sec. 772. Extension of maximum fuel economy increase for alternative 
          fueled vehicles.
Sec. 773. Study of feasibility and effects of reducing use of fuel for 
          automobiles.
Sec. 774. Update testing procedures.

                Subtitle F--Federal and State Procurement

Sec. 781. Definitions.
Sec. 782. Federal and State procurement of fuel cell vehicles and 
          hydrogen energy systems.
Sec. 783. Federal procurement of stationary, portable, and micro fuel 
          cells.

                 Subtitle G--Diesel Emissions Reduction

Sec. 791. Definitions.
Sec. 792. National grant and loan programs.
Sec. 793. State grant and loan programs.
Sec. 794. Evaluation and report.
Sec. 795. Outreach and incentives.
Sec. 796. Effect of subtitle.
Sec. 797. Authorization of appropriations.

                          TITLE VIII--HYDROGEN

Sec. 801. Hydrogen and fuel cell program.
Sec. 802. Purposes.
Sec. 803. Definitions.
Sec. 804. Plan.
Sec. 805. Programs.
Sec. 806. Hydrogen and Fuel Cell Technical Task Force.
Sec. 807. Technical Advisory Committee.
Sec. 808. Demonstration.
Sec. 809. Codes and standards.
Sec. 810. Disclosure.
Sec. 811. Reports.
Sec. 812. Solar and wind technologies.
Sec. 813. Technology transfer.
Sec. 814. Miscellaneous provisions.
Sec. 815. Cost sharing.
Sec. 816. Savings clause.

                   TITLE IX--RESEARCH AND DEVELOPMENT

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

                      Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.

       Subtitle B--Distributed Energy and Electric Energy Systems

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

                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Low-cost renewable hydrogen and infrastructure for vehicle 
          propulsion.
Sec. 934. Concentrating solar power research program.
Sec. 935. Renewable energy in public buildings.

   Subtitle D--Agricultural Biomass Research and Development Programs

Sec. 941. Amendments to the Biomass Research and Development Act of 
          2000.
Sec. 942. Production incentives for cellulosic biofuels.
Sec. 943. Procurement of biobased products.
Sec. 944. Small business bioproduct marketing and certification grants.
Sec. 945. Regional bioeconomy development grants.
Sec. 946. Preprocessing and harvesting demonstration grants.
Sec. 947. Education and outreach.
Sec. 948. Reports.

                       Subtitle E--Nuclear Energy

Sec. 951. Nuclear energy.
Sec. 952. Nuclear energy research programs.
Sec. 953. Advanced fuel cycle initiative.
Sec. 954. University nuclear science and engineering support.
Sec. 955. Department of Energy civilian nuclear infrastructure and 
          facilities.
Sec. 956. Security of nuclear facilities.
Sec. 957. Alternatives to industrial radioactive sources.

                        Subtitle F--Fossil Energy

Sec. 961. Fossil energy.
Sec. 962. Coal and related technologies program.
Sec. 963. Carbon capture research and development program.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.

                           Subtitle G--Science

Sec. 971. Science.
Sec. 972. Fusion energy sciences program.
Sec. 973. Catalysis research program.
Sec. 974. Hydrogen.
Sec. 975. Solid state lighting.
Sec. 976. Advanced scientific computing for energy missions.
Sec. 977. Systems biology program.
Sec. 978. Fission and fusion energy materials research program.
Sec. 979. Energy and water supplies.
Sec. 980. Spallation Neutron Source.
Sec. 981. Rare isotope accelerator.
Sec. 982. Office of Scientific and Technical Information.
Sec. 983. Science and engineering education pilot program.
Sec. 984. Energy research fellowships.
Sec. 984A. Science and technology scholarship program.

                  Subtitle H--International Cooperation

Sec. 985. Western Hemisphere energy cooperation.
Sec. 986. Cooperation between United States and Israel.
Sec. 986A. International energy training.

           Subtitle I--Research Administration and Operations

Sec. 987. Availability of funds.
Sec. 988. Cost sharing.
Sec. 989. Merit review of proposals.
Sec. 990. External technical review of Departmental programs.
Sec. 991. National Laboratory designation.
Sec. 992. Report on equal employment opportunity practices.
Sec. 993. Strategy and plan for science and energy facilities and 
          infrastructure.
Sec. 994. Strategic research portfolio analysis and coordination plan.
Sec. 995. Competitive award of management contracts.
Sec. 996. Western Michigan demonstration project.
Sec. 997. Arctic Engineering Research Center.
Sec. 998. Barrow Geophysical Research Facility.

  Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other 
                           Petroleum Resources

Sec. 999A. Program authority.
Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and 
          other petroleum research and development program.
Sec. 999C. Additional requirements for awards.
Sec. 999D. Advisory committees.
Sec. 999E. Limits on participation.
Sec. 999F. Sunset.
Sec. 999G. Definitions.
Sec. 999H. Funding.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Improved technology transfer of energy technologies.
Sec. 1002. Technology Infrastructure Program.
Sec. 1003. Small business advocacy and assistance.
Sec. 1004. Outreach.
Sec. 1005. Relationship to other laws.
Sec. 1006. Improved coordination and management of civilian science and 
          technology programs.
Sec. 1007. Other transactions authority.
Sec. 1008. Prizes for achievement in grand challenges of science and 
          technology.
Sec. 1009. Technical corrections.
Sec. 1010. University collaboration.
Sec. 1011. Sense of Congress.

                    TITLE XI--PERSONNEL AND TRAINING

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

                         TITLE XII--ELECTRICITY

Sec. 1201. Short title.

                    Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.

          Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced Power System Technology Incentive Program.

             Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Federal utility participation in Transmission Organizations.
Sec. 1233. Native load service obligation.
Sec. 1234. Study on the benefits of economic dispatch.
Sec. 1235. Protection of transmission contracts in the Pacific 
          Northwest.
Sec. 1236. Sense of Congress regarding locational installed capacity 
          mechanism.

                  Subtitle D--Transmission Rate Reform

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

                     Subtitle E--Amendments to PURPA

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

                       Subtitle F--Repeal of PUHCA

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

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

Sec. 1281. Electricity market transparency.
Sec. 1282. False statements.
Sec. 1283. Market manipulation.
Sec. 1284. Enforcement.
Sec. 1285. Refund effective date.
Sec. 1286. Refund authority.
Sec. 1287. Consumer privacy and unfair trade practices.
Sec. 1288. Authority of court to prohibit individuals from serving as 
          officers, directors, and energy traders.
Sec. 1289. Merger review reform.
Sec. 1290. Relief for extraordinary violations.

                         Subtitle H--Definitions

Sec. 1291. Definitions.

             Subtitle I--Technical and Conforming Amendments

Sec. 1295. Conforming amendments.

                      Subtitle J--Economic Dispatch

Sec. 1298. Economic dispatch.

                TITLE XIII--ENERGY POLICY TAX INCENTIVES

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

                 Subtitle A--Electricity Infrastructure

Sec. 1301. Extension and modification of renewable electricity 
          production credit.
Sec. 1302. Application of section 45 credit to agricultural 
          cooperatives.
Sec. 1303. Clean renewable energy bonds.
Sec. 1304. Treatment of income of certain electric cooperatives.
Sec. 1305. Dispositions of transmission property to implement FERC 
          restructuring policy.
Sec. 1306. Credit for production from advanced nuclear power facilities.
Sec. 1307. Credit for investment in clean coal facilities.
Sec. 1308. Electric transmission property treated as 15-year property.
Sec. 1309. Expansion of amortization for certain atmospheric pollution 
          control facilities in connection with plants first placed in 
          service after 1975.
Sec. 1310. Modifications to special rules for nuclear decommissioning 
          costs.
Sec. 1311. 5-year net operating loss carryover for certain losses.

                Subtitle B--Domestic Fossil Fuel Security

Sec. 1321. Extension of credit for producing fuel from a nonconventional 
          source for facilities producing coke or coke gas.
Sec. 1322. Modification of credit for producing fuel from a 
          nonconventional source.
Sec. 1323. Temporary expensing for equipment used in refining of liquid 
          fuels.
Sec. 1324. Pass through to owners of deduction for capital costs 
          incurred by small refiner cooperatives in complying with 
          Environmental Protection Agency sulfur regulations.
Sec. 1325. Natural gas distribution lines treated as 15-year property.
Sec. 1326. Natural gas gathering lines treated as 7-year property.
Sec. 1327. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1328. Determination of small refiner exception to oil depletion 
          deduction.
Sec. 1329. Amortization of geological and geophysical expenditures.

        Subtitle C--Conservation and Energy Efficiency Provisions

Sec. 1331. Energy efficient commercial buildings deduction.
Sec. 1332. Credit for construction of new energy efficient homes.
Sec. 1333. Credit for certain nonbusiness energy property.
Sec. 1334. Credit for energy efficient appliances.
Sec. 1335. Credit for residential energy efficient property.
Sec. 1336. Credit for business installation of qualified fuel cells and 
          stationary microturbine power plants.
Sec. 1337. Business solar investment tax credit.

       Subtitle D--Alternative Motor Vehicles and Fuels Incentives

Sec. 1341. Alternative motor vehicle credit.
Sec. 1342. Credit for installation of alternative fueling stations.
Sec. 1343. Reduced motor fuel excise tax on certain mixtures of diesel 
          fuel.
Sec. 1344. Extension of excise tax provisions and income tax credit for 
          biodiesel.
Sec. 1345. Small agri-biodiesel producer credit.
Sec. 1346. Renewable diesel.
Sec. 1347. Modification of small ethanol producer credit.
Sec. 1348. Sunset of deduction for clean-fuel vehicles and certain 
          refueling property.

              Subtitle E--Additional Energy Tax Incentives

Sec. 1351. Expansion of research credit.
Sec. 1352. National Academy of Sciences study and report.
Sec. 1353. Recycling study.

                 Subtitle F--Revenue Raising Provisions

Sec. 1361. Oil Spill Liability Trust Fund financing rate.
Sec. 1362. Extension of Leaking Underground Storage Tank Trust Fund 
          financing rate.
Sec. 1363. Modification of recapture rules for amortizable section 197 
          intangibles.
Sec. 1364. Clarification of tire excise tax.

                        TITLE XIV--MISCELLANEOUS

                         Subtitle A--In General

Sec. 1401. Sense of Congress on risk assessments.
Sec. 1402. Energy production incentives.
Sec. 1403. Regulation of certain oil used in transformers.
Sec. 1404. Petrochemical and oil refinery facility health assessment.
Sec. 1405. National Priority Project Designation.
Sec. 1406. Cold cracking.
Sec. 1407. Oxygen-fuel.

                      Subtitle B--Set America Free

Sec. 1421. Short title.
Sec. 1422. Purpose.
Sec. 1423. United States Commission on North American Energy Freedom.
Sec. 1424. North American energy freedom policy.

                    TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

Sec. 1501. Renewable content of gasoline.
Sec. 1502. Findings.
Sec. 1503. Claims filed after enactment.
Sec. 1504. Elimination of oxygen content requirement for reformulated 
          gasoline.
Sec. 1505. Public health and environmental impacts of fuels and fuel 
          additives.
Sec. 1506. Analyses of motor vehicle fuel changes.
Sec. 1507. Additional opt-in areas under reformulated gasoline program.
Sec. 1508. Data collection.
Sec. 1509. Fuel system requirements harmonization study.
Sec. 1510. Commercial byproducts from municipal solid waste and 
          cellulosic biomass loan guarantee program.
Sec. 1511. Renewable fuel.
Sec. 1512. Conversion assistance for cellulosic biomass, waste-derived 
          ethanol, approved renewable fuels.
Sec. 1513. Blending of compliant reformulated gasolines.
Sec. 1514. Advanced biofuel technologies program.
Sec. 1515. Waste-derived ethanol and biodiesel.
Sec. 1516. Sugar ethanol loan guarantee program.

             Subtitle B--Underground Storage Tank Compliance

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

                       Subtitle C--Boutique Fuels

Sec. 1541. Reducing the proliferation of boutique fuels.

                        TITLE XVI--CLIMATE CHANGE

        Subtitle A--National Climate Change Technology Deployment

Sec. 1601. Greenhouse gas intensity reducing technology strategies.

Subtitle B--Climate Change Technology Deployment in Developing Countries

Sec. 1611. Climate change technology deployment in developing countries.

           TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 1701. Definitions.
Sec. 1702. Terms and conditions.
Sec. 1703. Eligible projects.
Sec. 1704. Authorization of appropriations.

                          TITLE XVIII--STUDIES

Sec. 1801. Study on inventory of petroleum and natural gas storage.
Sec. 1802. Study of energy efficiency standards.
Sec. 1803. Telecommuting study.
Sec. 1804. LIHEAP Report.
Sec. 1805. Oil bypass filtration technology.
Sec. 1806. Total integrated thermal systems.
Sec. 1807. Report on energy integration with Latin America.
Sec. 1808. Low-volume gas reservoir study.
Sec. 1809. Investigation of gasoline prices.
Sec. 1810. Alaska natural gas pipeline.
Sec. 1811. Coal bed methane study.
Sec. 1812. Backup fuel capability study.
Sec. 1813. Indian land rights-of-way.
Sec. 1814. Mobility of scientific and technical personnel.
Sec. 1815. Interagency review of competition in the wholesale and retail 
          markets for electric energy.
Sec. 1816. Study of rapid electrical grid restoration.
Sec. 1817. Study of distributed generation.
Sec. 1818. Natural gas supply shortage report.
Sec. 1819. Hydrogen participation study.
Sec. 1820. Overall employment in a hydrogen economy.
Sec. 1821. Study of best management practices for energy research and 
          development programs.
Sec. 1822. Effect of electrical contaminants on reliability of energy 
          production systems.
Sec. 1823. Alternative fuels reports.
Sec. 1824. Final action on refunds for excessive charges.
Sec. 1825. Fuel cell and hydrogen technology study.
Sec. 1826. Passive solar technologies.
Sec. 1827. Study of link between energy security and increases in 
          vehicle miles traveled.
Sec. 1828. Science study on cumulative impacts of multiple offshore 
          liquefied natural gas facilities.
Sec. 1829. Energy and water saving measures in congressional buildings.
Sec. 1830. Study of availability of skilled workers.
Sec. 1831. Review of Energy Policy Act of 1992 programs.
Sec. 1832. Study on the benefits of economic dispatch.
Sec. 1833. Renewable energy on Federal land.
Sec. 1834. Increased hydroelectric generation at existing Federal 
          facilities.
Sec. 1835. Split-estate Federal oil and gas leasing and development 
          practices.
Sec. 1836. Resolution of Federal resource development conflicts in the 
          Powder River Basin.
Sec. 1837. National security review of international energy 
          requirements.
Sec. 1838. Used oil re-refining study.
Sec. 1839. Transmission system monitoring.
Sec. 1840. Report identifying and describing the status of potential 
          hydropower facilities.

SEC. 2. DEFINITIONS.

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

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

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

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

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

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

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

    (c) Repeal.--Section 310 of the Legislative Branch 
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.

SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--
            (1) Amendment.--Section 543(a)(1) of the National 
        Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) 
        is amended by striking ``its Federal buildings so 
        that'' and all that follows through the end and 
        inserting ``the Federal buildings of the agency 
        (including each industrial or laboratory facility) so 
        that the energy consumption per gross square foot of 
        the Federal buildings of the agency in fiscal years 
        2006 through 2015 is reduced, as compared with the 
        energy consumption per gross square foot of the Federal 
        buildings of the agency in fiscal year 2003, by the 
        percentage specified in the following table:

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

            (2) Reporting baseline.--The energy reduction goals 
        and baseline established in paragraph (1) of section 
        543(a) of the National Energy Conservation Policy Act 
        (42 U.S.C. 8253(a)(1)), as amended by this subsection, 
        supersede all previous goals and baselines under such 
        paragraph, and related reporting requirements.
    (b) Review and Revision of Energy Performance 
Requirement.--Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is further amended 
by adding at the end the following:
    ``(3) Not later than December 31, 2014, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2016 through 2025.''.
    (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by 
striking ``An agency may exclude'' and all that follows through 
the end and inserting ``(A) An agency may exclude, from the 
energy performance requirement for a fiscal year established 
under subsection (a) and the energy management requirement 
established under subsection (b), any Federal building or 
collection of Federal buildings, if the head of the agency 
finds that--
            ``(i) compliance with those requirements would be 
        impracticable;
            ``(ii) the agency has completed and submitted all 
        federally required energy management reports;
            ``(iii) the agency has achieved compliance with the 
        energy efficiency requirements of this Act, the Energy 
        Policy Act of 1992, Executive orders, and other Federal 
        law; and
            ``(iv) the agency has implemented all practicable, 
        life cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
    ``(B) A finding of impracticability under subparagraph 
(A)(i) shall be based on--
            ``(i) the energy intensiveness of activities 
        carried out in the Federal building or collection of 
        Federal buildings; or
            ``(ii) the fact that the Federal building or 
        collection of Federal buildings is used in the 
        performance of a national security function.''.
    (d) Review by Secretary.--Section 543(c)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is 
amended--
            (1) by striking ``impracticability standards'' and 
        inserting ``standards for exclusion'';
            (2) by striking ``a finding of impracticability'' 
        and inserting ``the exclusion''; and
            (3) by striking ``energy consumption requirements'' 
        and inserting ``requirements of subsections (a) and 
        (b)(1)''.
    (e) Criteria.--Section 543(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)) is further amended 
by adding at the end the following:
    ``(3) Not later than 180 days after the date of enactment 
of this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).''.
    (f) Retention of Energy and Water Savings.--Section 546 of 
the National Energy Conservation Policy Act (42 U.S.C. 8256) is 
amended by adding at the end the following new subsection:
    ``(e) Retention of Energy and Water Savings.--An agency may 
retain any funds appropriated to that agency for energy 
expenditures, water expenditures, or wastewater treatment 
expenditures, at buildings subject to the requirements of 
section 543(a) and (b), that are not made because of energy 
savings or water savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency, water 
conservation, or unconventional and renewable energy resources 
projects. Such projects shall be subject to the requirements of 
section 3307 of title 40, United States Code.''.
    (g) Reports.--Section 548(b) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``the 
        President and'' before ``Congress''; and
            (2) by inserting ``President and'' before 
        ``Congress''.
    (h) Conforming Amendment.--Section 550(d) of the National 
Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is amended 
in the second sentence by striking ``the 20 percent reduction 
goal established under section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)).'' and inserting 
``each of the energy reduction goals established under section 
543(a).''.

SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act 
(42 U.S.C. 8253) is further amended by adding at the end the 
following:
    ``(e) Metering of Energy Use.--
            ``(1) Deadline.--By October 1, 2012, in accordance 
        with guidelines established by the Secretary under 
        paragraph (2), all Federal buildings shall, for the 
        purposes of efficient use of energy and reduction in 
        the cost of electricity used in such buildings, be 
        metered. Each agency shall use, to the maximum extent 
        practicable, advanced meters or advanced metering 
        devices that provide data at least daily and that 
        measure at least hourly consumption of electricity in 
        the Federal buildings of the agency. Such data shall be 
        incorporated into existing Federal energy tracking 
        systems and made available to Federal facility 
        managers.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days 
                after the date of enactment of this subsection, 
                the Secretary, in consultation with the 
                Department of Defense, the General Services 
                Administration, representatives from the 
                metering industry, utility industry, energy 
                services industry, energy efficiency industry, 
                energy efficiency advocacy organizations, 
                national laboratories, universities, and 
                Federal facility managers, shall establish 
                guidelines for agencies to carry out paragraph 
                (1).
                    ``(B) Requirements for guidelines.--The 
                guidelines shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering 
                                and the reduced cost of 
                                operation and maintenance 
                                expected to result from 
                                metering;
                                    ``(II) the extent to which 
                                metering is expected to result 
                                in increased potential for 
                                energy management, increased 
                                potential for energy savings 
                                and energy efficiency 
                                improvement, and cost and 
                                energy savings due to utility 
                                contract aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations 
                        concerning the amount of funds and the 
                        number of trained personnel necessary 
                        to gather and use the metering 
                        information to track and reduce energy 
                        use;
                            ``(iii) establish priorities for 
                        types and locations of buildings to be 
                        metered based on cost-effectiveness and 
                        a schedule of 1 or more dates, not 
                        later than 1 year after the date of 
                        issuance of the guidelines, on which 
                        the requirements specified in paragraph 
                        (1) shall take effect; and
                            ``(iv) establish exclusions from 
                        the requirements specified in paragraph 
                        (1) based on the de minimis quantity of 
                        energy use of a Federal building, 
                        industrial process, or structure.
            ``(3) Plan.--Not later than 6 months after the date 
        guidelines are established under paragraph (2), in a 
        report submitted by the agency under section 548(a), 
        each agency shall submit to the Secretary a plan 
        describing how the agency will implement the 
        requirements of paragraph (1), including (A) how the 
        agency will designate personnel primarily responsible 
        for achieving the requirements and (B) demonstration by 
        the agency, complete with documentation, of any finding 
        that advanced meters or advanced metering devices, as 
        defined in paragraph (1), are not practicable.''.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Agency.--The term `agency' has the meaning 
        given that term in section 7902(a) of title 5, United 
        States Code.
            ``(2) Energy star product.--The term `Energy Star 
        product' means a product that is rated for energy 
        efficiency under an Energy Star program.
            ``(3) Energy star program.--The term `Energy Star 
        program' means the program established by section 324A 
        of the Energy Policy and Conservation Act.
            ``(4) FEMP designated product.--The term `FEMP 
        designated product' means a product that is designated 
        under the Federal Energy Management Program of the 
        Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
            ``(5) Product.--The term `product' does not include 
        any energy consuming product or system designed or 
        procured for combat or combat-related missions.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        agency for an energy consuming product, the head of the 
        agency shall, except as provided in paragraph (2), 
        procure--
                    ``(A) an Energy Star product; or
                    ``(B) a FEMP designated product.
            ``(2) Exceptions.--The head of an agency is not 
        required to procure an Energy Star product or FEMP 
        designated product under paragraph (1) if the head of 
        the agency finds in writing that--
                    ``(A) an Energy Star product or FEMP 
                designated product is not cost-effective over 
                the life of the product taking energy cost 
                savings into account; or
                    ``(B) no Energy Star product or FEMP 
                designated product is reasonably available that 
                meets the functional requirements of the 
                agency.
            ``(3) Procurement planning.--The head of an agency 
        shall incorporate into the specifications for all 
        procurements involving energy consuming products and 
        systems, including guide specifications, project 
        specifications, and construction, renovation, and 
        services contracts that include provision of energy 
        consuming products and systems, and into the factors 
        for the evaluation of offers received for the 
        procurement, criteria for energy efficiency that are 
        consistent with the criteria used for rating Energy 
        Star products and for rating FEMP designated products.
    ``(c) Listing of Energy Efficient Products in Federal 
Catalogs.--Energy Star products and FEMP designated products 
shall be clearly identified and prominently displayed in any 
inventory or listing of products by the General Services 
Administration or the Defense Logistics Agency. The General 
Services Administration or the Defense Logistics Agency shall 
supply only Energy Star products or FEMP designated products 
for all product categories covered by the Energy Star program 
or the Federal Energy Management Program, except in cases where 
the agency ordering a product specifies in writing that no 
Energy Star product or FEMP designated product is available to 
meet the buyer's functional requirements, or that no Energy 
Star product or FEMP designated product is cost-effective for 
the intended application over the life of the product, taking 
energy cost savings into account.
    ``(d) Specific Products.--(1) In the case of electric 
motors of 1 to 500 horsepower, agencies shall select only 
premium efficient motors that meet a standard designated by the 
Secretary. The Secretary shall designate such a standard not 
later than 120 days after the date of the enactment of this 
section, after considering the recommendations of associated 
electric motor manufacturers and energy efficiency groups.
    ``(2) All Federal agencies are encouraged to take actions 
to maximize the efficiency of air conditioning and 
refrigeration equipment, including appropriate cleaning and 
maintenance, including the use of any system treatment or 
additive that will reduce the electricity consumed by air 
conditioning and refrigeration equipment. Any such treatment or 
additive must be--
            ``(A) determined by the Secretary to be effective 
        in increasing the efficiency of air conditioning and 
        refrigeration equipment without having an adverse 
        impact on air conditioning performance (including 
        cooling capacity) or equipment useful life;
            ``(B) determined by the Administrator of the 
        Environmental Protection Agency to be environmentally 
        safe; and
                    ``(C) shown to increase seasonal energy 
                efficiency ratio (SEER) or energy efficiency 
                ratio (EER) when tested by the National 
                Institute of Standards and Technology according 
                to Department of Energy test procedures without 
                causing any adverse impact on the system, 
                system components, the refrigerant or 
                lubricant, or other materials in the system.

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

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

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

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

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

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

SEC. 107. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary, in consultation with the 
Administrator of General Services, shall establish an Advanced 
Building Efficiency Testbed program for the development, 
testing, and demonstration of advanced engineering systems, 
components, and materials to enable innovations in building 
technologies. The program shall evaluate efficiency concepts 
for government and industry buildings, and demonstrate the 
ability of next generation buildings to support individual and 
organizational productivity and health (including by improving 
indoor air quality) as well as flexibility and technological 
change to improve environmental sustainability. Such program 
shall complement and not duplicate existing national programs.
    (b) Participants.--The program established under subsection 
(a) shall be led by a university with the ability to combine 
the expertise from numerous academic fields including, at a 
minimum, intelligent workplaces and advanced building systems 
and engineering, electrical and computer engineering, computer 
science, architecture, urban design, and environmental and 
mechanical engineering. Such university shall partner with 
other universities and entities who have established programs 
and the capability of advancing innovative building efficiency 
technologies.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$6,000,000 for each of the fiscal years 2006 through 2008, to 
remain available until expended. For any fiscal year in which 
funds are expended under this section, the Secretary shall 
provide \1/3\ of the total amount to the lead university 
described in subsection (b), and provide the remaining \2/3\ to 
the other participants referred to in subsection (b) on an 
equal basis.

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

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

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

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

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

SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.

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

SEC. 110. DAYLIGHT SAVINGS.

    (a) Amendment.--Section 3(a) of the Uniform Time Act of 
1966 (15 U.S.C. 260a(a)) is amended--
            (1) by striking ``first Sunday of April'' and 
        inserting ``second Sunday of March''; and
            (2) by striking ``last Sunday of October'' and 
        inserting ``first Sunday of November''.
    (b) Effective Date.--Subsection (a) shall take effect 1 
year after the date of enactment of this Act or March 1, 2007, 
whichever is later.
    (c) Report to Congress.--Not later than 9 months after the 
effective date stated in subsection (b), the Secretary shall 
report to Congress on the impact of this section on energy 
consumption in the United States.
    (d) Right to Revert.--Congress retains the right to revert 
the Daylight Saving Time back to the 2005 time schedules once 
the Department study is complete.

SEC. 111. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.

    (a) Sense of the Congress.--It is the sense of the Congress 
that Federal agencies should enhance the use of energy 
efficient technologies in the management of natural resources.
    (b) Energy Efficient Buildings.--To the extent practicable, 
the Secretary of the Interior, the Secretary of Commerce, and 
the Secretary of Agriculture shall seek to incorporate energy 
efficient technologies in public and administrative buildings 
associated with management of the National Park System, 
National Wildlife Refuge System, National Forest System, 
National Marine Sanctuaries System, and other public lands and 
resources managed by the Secretaries.
    (c) Energy Efficient Vehicles.--To the extent practicable, 
the Secretary of the Interior, the Secretary of Commerce, and 
the Secretary of Agriculture shall seek to use energy efficient 
motor vehicles, including vehicles equipped with biodiesel or 
hybrid engine technologies, in the management of the National 
Park System, National Wildlife Refuge System, National Forest 
System, National Marine Sanctuaries System, and other public 
lands and resources managed by the Secretaries.

            Subtitle B--Energy Assistance and State Programs

SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.

    (a) Authorization of Appropriations.--Section 2602(b) of 
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
8621(b)) is amended by striking ``and $2,000,000,000 for each 
of fiscal years 2002 through 2004'' and inserting ``and 
$5,100,000,000 for each of fiscal years 2005 through 2007''.
    (b) Renewable Fuels.--The Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8621 et seq.) is amended by adding at 
the end the following new section:

                           ``RENEWABLE FUELS

    ``Sec. 2612. In providing assistance pursuant to this 
title, a State, or any other person with which the State makes 
arrangements to carry out the purposes of this title, may 
purchase renewable fuels, including biomass.''.
    (c) Report to Congress.--The Secretary shall report to 
Congress on the use of renewable fuels in providing assistance 
under the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.).

SEC. 122. WEATHERIZATION ASSISTANCE.

    (a) Authorization of Appropriations.--Section 422 of the 
Energy Conservation and Production Act (42 U.S.C. 6872) is 
amended by striking ``for fiscal years 1999 through 2003 such 
sums as may be necessary'' and inserting ``$500,000,000 for 
fiscal year 2006, $600,000,000 for fiscal year 2007, and 
$700,000,000 for fiscal year 2008''.
    (b) Eligibility.--Section 412(7) of the Energy Conservation 
and Production Act (42 U.S.C. 6862(7)) is amended by striking 
``125 percent'' both places it appears and inserting ``150 
percent''.

SEC. 123. STATE ENERGY PROGRAMS.

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

                    ``STATE ENERGY EFFICIENCY GOALS

    ``Sec. 364. Each State energy conservation plan with 
respect to which assistance is made available under this part 
on or after the date of enactment of the Energy Policy Act of 
2005 shall contain a goal, consisting of an improvement of 25 
percent or more in the efficiency of use of energy in the State 
concerned in calendar year 2012 as compared to calendar year 
1990, and may contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the 
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
amended by striking ``for fiscal years 1999 through 2003 such 
sums as may be necessary'' and inserting ``$100,000,000 for 
each of the fiscal years 2006 and 2007 and $125,000,000 for 
fiscal year 2008''.

SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

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

SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary may make grants to the State 
agency responsible for developing State energy conservation 
plans under section 362 of the Energy Policy and Conservation 
Act (42 U.S.C. 6322), or, if no such agency exists, a State 
agency designated by the Governor of the State, to assist units 
of local government in the State in improving the energy 
efficiency of public buildings and facilities--
            (1) through construction of new energy efficient 
        public buildings that use at least 30 percent less 
        energy than a comparable public building constructedin 
compliance with standards prescribed in the most recent version of the 
International Energy Conservation Code, or a similar State code 
intended to achieve substantially equivalent efficiency levels; or
            (2) through renovation of existing public buildings 
        to achieve reductions in energy use of at least 30 
        percent as compared to the baseline energy use in such 
        buildings prior to renovation, assuming a 3-year, 
        weather-normalized average for calculating such 
        baseline.
    (b) Administration.--State energy offices receiving grants 
under this section shall--
            (1) maintain such records and evidence of 
        compliance as the Secretary may require; and
            (2) develop and distribute information and 
        materials and conduct programs to provide technical 
        services and assistance to encourage planning, 
        financing, and design of energy efficient public 
        buildings by units of local government.
    (c) Authorization of Appropriations.--For the purposes of 
this section, there are authorized to be appropriated to the 
Secretary $30,000,000 for each of fiscal years 2006 through 
2010. Not more than 10 percent of appropriated funds shall be 
used for administration.

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

    (a) Grants.--The Secretary is authorized to make grants to 
units of local government, private, non-profit community 
development organizations, and Indian tribe economic 
development entities to improve energy efficiency; identify and 
develop alternative, renewable, and distributed energy 
supplies; and increase energy conservation in low income rural 
and urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
            (1) investments that develop alternative, 
        renewable, and distributed energy supplies;
            (2) energy efficiency projects and energy 
        conservation programs;
            (3) studies and other activities that improve 
        energy efficiency in low income rural and urban 
        communities;
            (4) planning and development assistance for 
        increasing the energy efficiency of buildings and 
        facilities; and
            (5) technical and financial assistance to local 
        government and private entities on developing new 
        renewable and distributed sources of power or combined 
        heat and power generation.
    (c) Definition.--For purposes of this section, the term 
``Indian tribe'' means any Indian tribe, band, nation, or other 
organized group or community, including any Alaskan Native 
village or regional or village corporation as defined in or 
established pursuant to the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.), that is recognized as eligible for 
the special programs and services provided by the United States 
to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of 
this section there are authorized to be appropriated to the 
Secretary $20,000,000 for each of fiscal years 2006 through 
2008.

SEC. 127. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.

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

SEC. 128. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.

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

                 Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

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

                         ``ENERGY STAR PROGRAM

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

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

SEC. 132.. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

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

SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

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

SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.

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

SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

    (a) Definitions.--Section 321 of the Energy Policy and 
Conservation Act (42 U.S.C. 6291) is amended--
            (1) in paragraph (29)--
                    (A) in subparagraph (D)--
                            (i) in clause (i), by striking 
                        ``C78.1-1978(R1984)'' and inserting 
                        ``C78.81-2003 (Data Sheet 7881-ANSI-
                        1010-1)'';
                            (ii) in clause (ii), by striking 
                        ``C78.1-1978(R1984)'' and inserting 
                        ``C78.81-2003 (Data Sheet 7881-ANSI-
                        3007-1)''; and
                            (iii) in clause (iii), by striking 
                        ``C78.1-1978(R1984)'' and inserting 
                        ``C78.81-2003 (Data Sheet 7881-ANSI-
                        1019-1)''; and
                    (B) by adding at the end the following:
            ``(M) The term `F34T12 lamp' (also known as a 
        `F40T12/ES lamp') means a nominal 34 watt tubular 
        fluorescent lamp that is 48 inches in length and 1\1/2\ 
        inches in diameter, and conforms to ANSI standard 
        C78.81-2003 (Data Sheet 7881-ANSI-1006-1).
            ``(N) The term `F96T12/ES lamp' means a nominal 60 
        watt tubular fluorescent lamp that is 96 inches in 
        length and 1\1/2\ inches in diameter, and conforms to 
        ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-3006-
        1).
            ``(O) The term `F96T12HO/ES lamp' means a nominal 
        95 watt tubular fluorescent lamp that is 96 inches in 
        length and 1\1/2\ inches in diameter, and conforms to 
        ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1017-
        1).
            ``(P) The term `replacement ballast' means a 
        ballast that--
                    ``(i) is designed for use to replace an 
                existing ballast in a previously installed 
                luminaire;
                    ``(ii) is marked `FOR REPLACEMENT USE 
                ONLY';
                    ``(iii) is shipped by the manufacturer in 
                packages containing not more than 10 ballasts; 
                and
                    ``(iv) has output leads that when fully 
                extended are a total length that is less than 
                the length of the lamp with which the ballast 
                is intended to be operated.'';
            (2) in paragraph (30)(S)--
                    (A) by inserting ``(i)'' before ``The 
                term''; and
                    (B) by adding at the end the following:
                    ``(ii) The term `medium base compact 
                fluorescent lamp' does not include--
                            ``(I) any lamp that is--
                                    ``(aa) specifically 
                                designed to be used for special 
                                purpose applications; and
                                    ``(bb) unlikely to be used 
                                in general purpose 
                                applications, such as the 
                                applications described in 
                                subparagraph (D); or
                            ``(II) any lamp not described in 
                        subparagraph (D) that is excluded by 
                        the Secretary, by rule, because the 
                        lamp is--
                                    ``(aa) designed for special 
                                applications; and
                                    ``(bb) unlikely to be used 
                                in general purpose 
                                applications.''; and
            (3) by adding at the end the following:
            ``(32) The term `battery charger' means a device 
        that charges batteries for consumer products, including 
        battery chargers embedded in other consumer products.
            ``(33)(A) The term `commercial prerinse spray 
        valve' means a handheld device designed and marketed 
        for use with commercial dishwashing and ware washing 
        equipment that sprays water on dishes, flatware, and 
        other food service items for the purpose of removing 
        food residue before cleaning the items.
            ``(B) The Secretary may modify the definition of 
        `commercial prerinse spray valve' by rule--
                    ``(i) to include products--
                            ``(I) that are extensively used in 
                        conjunction with commercial dishwashing 
                        and ware washing equipment;
                            ``(II) the application of standards 
                        to which would result in significant 
                        energy savings; and
                            ``(III) the application of 
                        standards to which would meet the 
                        criteria specified in section 
                        325(o)(4); and
                    ``(ii) to exclude products--
                            ``(I) that are used for special 
                        food service applications;
                            ``(II) that are unlikely to be 
                        widely used in conjunction with 
                        commercial dishwashing and ware washing 
                        equipment; and
                            ``(III) the application of 
                        standards to which would not result in 
                        significant energy savings.
            ``(34) The term `dehumidifier' means a self-
        contained, electrically operated, and mechanically 
        encased assembly consisting of--
                    ``(A) a refrigerated surface (evaporator) 
                that condenses moisture from the atmosphere;
                    ``(B) a refrigerating system, including an 
                electric motor;
                    ``(C) an air-circulating fan; and
                    ``(D) means for collecting or disposing of 
                the condensate.
            ``(35)(A) The term `distribution transformer' means 
        a transformer that--
                    ``(i) has an input voltage of 34.5 
                kilovolts or less;
                    ``(ii) has an output voltage of 600 volts 
                or less; and
                    ``(iii) is rated for operation at a 
                frequency of 60 Hertz.
            ``(B) The term `distribution transformer' does not 
        include--
                    ``(i) a transformer with multiple voltage 
                taps, the highest of which equals at least 20 
                percent more than the lowest;
                    ``(ii) a transformer that is designed to be 
                used in a special purpose application and is 
                unlikely to be used in general purpose 
                applications, such as a drive transformer, 
                rectifier transformer, auto-transformer, 
                Uninterruptible Power System transformer, 
                impedance transformer, regulating transformer, 
                sealed and nonventilating transformer, machine 
                tool transformer, welding transformer, 
                grounding transformer, or testing transformer; 
                or
                    ``(iii) any transformer not listed in 
                clause (ii) that is excluded by the Secretary 
                by rule because--
                            ``(I) the transformer is designed 
                        for a special application;
                            ``(II) the transformer is unlikely 
                        to be used in general purpose 
                        applications; and
                            ``(III) the application of 
                        standards to the transformer would not 
                        result in significant energy savings.
            ``(36) The term `external power supply' means an 
        external power supply circuit that is used to convert 
        household electric current into DC current or lower-
        voltage AC current to operate a consumer product.
            ``(37) The term `illuminated exit sign' means a 
        sign that--
                    ``(A) is designed to be permanently fixed 
                in place to identify an exit; and
                    ``(B) consists of an electrically powered 
                integral light source that--
                            ``(i) illuminates the legend `EXIT' 
                        and any directional indicators; and
                            ``(ii) provides contrast between 
                        the legend, any directional indicators, 
                        and the background.
            ``(38) The term `low-voltage dry-type distribution 
        transformer' means a distribution transformer that--
                    ``(A) has an input voltage of 600 volts or 
                less;
                    ``(B) is air-cooled; and
                    ``(C) does not use oil as a coolant.
            ``(39) The term `pedestrian module' means a light 
        signal used to convey movement information to 
        pedestrians.
            ``(40) The term `refrigerated bottled or canned 
        beverage vending machine' means a commercial 
        refrigerator that cools bottled or canned beverages and 
        dispenses the bottled or canned beverages on payment.
            ``(41) The term `standby mode' means the lowest 
        power consumption mode, as established on an individual 
        product basis by the Secretary, that--
                    ``(A) cannot be switched off or influenced 
                by the user; and
                    ``(B) may persist for an indefinite time 
                when an appliance is--
                            ``(i) connected to the main 
                        electricity supply; and
                            ``(ii) used in accordance with the 
                        instructions of the manufacturer.
            ``(42) The term `torchiere' means a portable 
        electric lamp with a reflector bowl that directs light 
        upward to give indirect illumination.
            ``(43) The term `traffic signal module' means a 
        standard 8-inch (200mm) or 12-inch (300mm) traffic 
        signal indication that--
                    ``(A) consists of a light source, a lens, 
                and all other parts necessary for operation; 
                and
                    ``(B) communicates movement messages to 
                drivers through red, amber, and green colors.
            ``(44) The term `transformer' means a device 
        consisting of 2 or more coils of insulated wire that 
        transfers alternating current by electromagnetic 
        induction from 1 coil to another to change the original 
        voltage or current value.
            ``(45)(A) The term `unit heater' means a self-
        contained fan-type heater designed to be installed 
        within the heated space.
            ``(B) The term `unit heater' does not include a 
        warm air furnace.
            ``(46)(A) The term `high intensity discharge lamp' 
        means an electric-discharge lamp in which--
                    ``(i) the light-producing arc is stabilized 
                by bulb wall temperature; and
                    ``(ii) the arc tube has a bulb wall loading 
                in excess of 3 Watts/cm2.
            ``(B) The term `high intensity discharge lamp' 
        includes mercury vapor, metal halide, and high-pressure 
        sodium lamps described in subparagraph (A).
            ``(47)(A) The term `mercury vapor lamp' means a 
        high intensity discharge lamp in which the major 
        portion of the light is produced by radiation from 
        mercury operating at a partial pressure in excess of 
        100,000 Pa (approximately 1 atm).
            ``(B) The term `mercury vapor lamp' includes clear, 
        phosphor-coated, and self-ballasted lamps described in 
        subparagraph (A).
            ``(48) The term `mercury vapor lamp ballast' means 
        a device that is designed and marketed to start and 
        operate mercury vapor lamps by providing the necessary 
        voltage and current.
            ``(49) The term `ceiling fan' means a nonportable 
        device that is suspended from a ceiling for circulating 
        air via the rotation of fan blades.
            ``(50) The term `ceiling fan light kit' means 
        equipment designed to provide light from a ceiling fan 
        that can be--
                    ``(A) integral, such that the equipment is 
                attached to the ceiling fan prior to the time 
                of retail sale; or
                    ``(B) attachable, such that at the time of 
                retail sale the equipment is not physically 
                attached to the ceiling fan, but may be 
                included inside the ceiling fan at the time of 
                sale or sold separately for subsequent 
                attachment to the fan.
            ``(51) The term `medium screw base' means an Edison 
        screw base identified with the prefix E-26 in the 
        `American National Standard for Electric Lamp Bases', 
        ANSI_IEC C81.61--2003, published by the American 
        National Standards Institute.''.
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
            (1) in subsection (b), by adding at the end the 
        following:
    ``(9) Test procedures for illuminated exit signs shall be 
based on the test method used under version 2.0 of the Energy 
Star program of the Environmental Protection Agency for 
illuminated exit signs.
    ``(10)(A) Test procedures for distribution transformers and 
low voltage dry-type distribution transformers shall be based 
on the `Standard Test Method for Measuring the Energy 
Consumption of Distribution Transformers' prescribed by the 
National Electrical Manufacturers Association (NEMA TP 2-1998).
    ``(B) The Secretary may review and revise the test 
procedures established under subparagraph (A).
    ``(C) For purposes of section 346(a), the test procedures 
established under subparagraph (A) shall be considered to be 
the testing requirements prescribed by the Secretary under 
section 346(a)(1) for distribution transformers for which the 
Secretary makes a determination that energy conservation 
standards would--
            ``(i) be technologically feasible and economically 
        justified; and
            ``(ii) result in significant energy savings.
    ``(11) Test procedures for traffic signal modules and 
pedestrian modules shall be based on the test method used under 
the Energy Star program of the Environmental Protection Agency 
for traffic signal modules, as in effect on the date of 
enactment of this paragraph.
    ``(12)(A) Test procedures for medium base compact 
fluorescent lamps shall be based on the test methods forcompact 
fluorescent lamps used under the August 9, 2001, version of the Energy 
Star program of the Environmental Protection Agency and the Department 
of Energy.
    ``(B) Except as provided in subparagraph (C), medium base 
compact fluorescent lamps shall meet all test requirements for 
regulated parameters of section 325(cc).
    ``(C) Notwithstanding subparagraph (B), if manufacturers 
document engineering predictions and analysis that support 
expected attainment of lumen maintenance at 40 percent rated 
life and lamp lifetime, medium base compact fluorescent lamps 
may be marketed before completion of the testing of lamp life 
and lumen maintenance at 40 percent of rated life.
    ``(13) Test procedures for dehumidifiers shall be based on 
the test criteria used under the Energy Star Program 
Requirements for Dehumidifiers developed by the Environmental 
Protection Agency, as in effect on the date of enactment of 
this paragraph unless revised by the Secretary pursuant to this 
section.
    ``(14) The test procedure for measuring flow rate for 
commercial prerinse spray valves shall be based on American 
Society for Testing and Materials Standard F2324, entitled 
`Standard Test Method for Pre-Rinse Spray Valves.'
    ``(15) The test procedure for refrigerated bottled or 
canned beverage vending machines shall be based on American 
National Standards Institute/American Society of Heating, 
Refrigerating and Air-Conditioning Engineers Standard 32.1-
2004, entitled `Methods of Testing for Rating Vending Machines 
for Bottled, Canned or Other Sealed Beverages'.
    ``(16)(A)(i) Test procedures for ceiling fans shall be 
based on the `Energy Star Testing Facility Guidance Manual: 
Building a Testing Facility and Performing the Solid State Test 
Method for ENERGY STAR Qualified Ceiling Fans, Version 1.1' 
published by the Environmental Protection Agency.
    ``(ii) Test procedures for ceiling fan light kits shall be 
based on the test procedures referenced in the Energy Star 
specifications for Residential Light Fixtures and Compact 
Fluorescent Light Bulbs, as in effect on the date of enactment 
of this paragraph.
    ``(B) The Secretary may review and revise the test 
procedures established under subparagraph (A).''; and
            (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--(1) Not 
later than 2 years after the date of enactment of this 
subsection, the Secretary shall prescribe testing requirements 
for refrigerated bottled or canned beverage vending machines.
    ``(2) To the maximum extent practicable, the testing 
requirements prescribed under paragraph (1) shall be based on 
existing test procedures used in industry.''.
    (c) Standard Setting Authority.--Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295) is amended--
            (1) in subsection (f)(3), by adding at the end the 
        following:
    ``(D) Notwithstanding any other provision of this Act, if 
the requirements of subsection (o) are met, the Secretary may 
consider and prescribe energy conservation standards or energy 
use standards for electricity used for purposes of circulating 
air through duct work.'';
            (2) in subsection (g)--
                    (A) in paragraph (6)(B), by inserting ``and 
                labeled'' after ``designed''; and
                    (B) by adding at the end the following:
    ``(8)(A) Each fluorescent lamp ballast (other than 
replacement ballasts or ballasts described in subparagraph 
(C))--
            ``(i)(I) manufactured on or after July 1, 2009;
            ``(II) sold by the manufacturer on or after October 
        1, 2009; or
            ``(III) incorporated into a luminaire by a 
        luminaire manufacturer on or after July 1, 2010; and
            ``(ii) designed--
                    ``(I) to operate at nominal input voltages 
                of 120 or 277 volts;
                    ``(II) to operate with an input current 
                frequency of 60 Hertz; and
                    ``(III) for use in connection with F34T12 
                lamps, F96T12/ES lamps, or F96T12HO/ES lamps;
        shall have a power factor of 0.90 or greater and shall 
        have a ballast efficacy factor of not less than the 
        following:


                                                                     Ballast       Total
                  ``Application for operation of                      input       nominal                                                                                                                                              Ballast efficacy factor
                                                                     voltage     lamp watts

One F34T12 lamp..................................................      120/277           34                                                                                                                                                         2.61
Two F34T12 lamps.................................................      120/277           68                                                                                                                                                         1.35
Two F96 T12/ES lamps.............................................      120/277          120                                                                                                                                                         0.77
Two F96 T12HO/ES lamps...........................................      120/277          190                                                                                                                                                         0.42


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

``Product Capacity (pints/day):       Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................     1.00 
    25.01 - 35.00.............................................     1.20 
    35.01 - 54.00.............................................     1.30 
    54.01 - 74.99.............................................     1.50 
    75.00 or more.............................................     2.25.

    ``(2)(A) Not later than October 1, 2009, the Secretary 
shall publish a final rule in accordance with subsections (o) 
and (p), to determine whether the energy conservation standards 
established under paragraph (1) should be amended.
    ``(B) The final rule published under subparagraph (A) 
shall--
            ``(i) contain any amendment by the Secretary; and
            ``(ii) provide that the amendment applies to 
        products manufactured on or after October 1, 2012.
    ``(C) If the Secretary does not publish an amendment that 
takes effect by October 1, 2012, dehumidifiers manufactured on 
or after October 1, 2012, shall have an Energy Factor that 
meets or exceeds the following values:

``Product Capacity (pints/day):       Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................     1.20 
    25.01 - 35.00.............................................     1.30 
    35.01 - 45.00.............................................     1.40 
    45.01 - 54.00.............................................     1.50 
    54.01 - 74.99.............................................     1.60 
    75.00 or more.............................................      2.5.

    ``(dd) Commercial Prerinse Spray Valves.--Commercial 
prerinse spray valves manufactured on or after January 1, 2006, 
shall have a flow rate of not more than 1.6 gallons per minute.
    ``(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp 
ballasts shall not be manufactured or imported after January 1, 
2008.
    ``(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All 
ceiling fans manufactured on or after January 1, 2007, shall 
have the following features:
            ``(i) Fan speed controls separate from any lighting 
        controls.
            ``(ii) Adjustable speed controls (either more than 
        1 speed or variable speed).
            ``(iii) Adjustable speed controls (either more than 
        1 speed or variable speed).
            ``(iv) The capability of reversible fan action, 
        except for--
                    ``(I) fans sold for industrial 
                applications;
                    ``(II) outdoor applications; and
                    ``(III) cases in which safety standards 
                would be violated by the use of the reversible 
                mode.
    ``(B) The Secretary may define the exceptions described in 
clause (iv) in greater detail, but shall not substantively 
expand the exceptions
    ``(2)(A) Ceiling fan light kits with medium screw base 
sockets manufactured on or after January 1, 2007, shall be 
packaged with screw-based lamps to fill all screw base sockets.
    ``(B) The screw-based lamps required under subparagraph (A) 
shall--
            ``(i) meet the Energy Star Program Requirements for 
        Compact Fluorescent Lamps, version 3.0, issued by the 
        Department of Energy; or
            ``(ii) use light sources other than compact 
        fluorescent lamps that have lumens per watt performance 
        at least equivalent to comparably configured compact 
        fluorescent lamps meeting the Energy Star Program 
        Requirements described in clause (i).
    ``(3) Ceiling fan light kits with pin-based sockets for 
fluorescent lamps manufactured on or after January 1, 2007 
shall--
            ``(A) meet the Energy Star Program Requirements for 
        Residential Light Fixtures version 4.0 issued by the 
        Environmental Protection Agency; and
            ``(B) be packaged with lamps to fill all sockets.
    ``(4)(A) By January 1, 2007, the Secretary shall consider 
and issue requirements for any ceiling fan lighting kits other 
than those covered in paragraphs (2) and (3), including 
candelabra screw base sockets.
    ``(B) The requirements issued under subparagraph (A) shall 
be effective for products manufactured 2 years after the date 
of the final rule.
    ``(C) If the Secretary fails to issue a final rule by the 
date specified in subparagraph (B), any type of ceiling fan 
lighting kit described in subparagraph (A) that is manufactured 
after January 1, 2009--
            ``(i) shall not be capable of operating with lamps 
        that total more than 190 watts; and
            ``(ii) shall include the lamps described in clause 
        (i) in the ceiling fan lighting kits.
    ``(5)(A) After January 1, 2010, the Secretary may consider, 
and issue, if the requirements of subsections (o) and (p) are 
met, amended energy efficiency standards for ceiling fan light 
kits.
    ``(B) Any amended standards issued under subparagraph (A) 
shall apply to products manufactured not earlier than 2 years 
after the date of publication of the final rule establishing 
the amended standard.
    ``(6)(A) Notwithstanding any other provision of this Act, 
the Secretary may consider, and issue, if the requirements of 
subsections (o) and (p) are met, energy efficiency or energy 
use standards for electricity used by ceiling fans to circulate 
air in a room.
    ``(B) In issuing the standards under subparagraph (A), the 
Secretary shall consider--
    ``(C) exempting, or setting different standards for, 
certain product classes for which the primary standards are not 
technically feasible or economically justified; and
    ``(D) establishing separate exempted product classes for 
highly decorative fans for which air movement performance is a 
secondary design feature.
    ``(7) Section 327 shall apply to the products covered in 
paragraphs (1) through (4) beginning on the date of enactment 
of this subsection, except that any State or local labeling 
requirement for ceiling fans prescribed or enacted before the 
date of enactment of this subsection shall not be preempted 
until the labeling requirements applicable to ceiling fans 
established under section 327 take effect.
    ``(gg) Application Date.--Section 327 applies--
            ``(1) to products for which energy conservation 
        standards are to be established under subsection (l), 
        (u), or (v) beginning on the date on which a final rule 
        is issued by the Secretary, except that any State or 
        local standard prescribed or enacted for the product 
        before the date on which the final rule is issued shall 
        not be preempted until the energy conservation standard 
        established under subsection (l), (u), or (v) for the 
        product takes effect; and
            ``(2) to products for which energy conservation 
        standards are established under subsections (w) through 
        (ff) on the date of enactment of those subsections, 
        except that any State or local standard prescribed or 
        enacted before the date of enactment of those 
        subsections shall not be preempted until the energy 
        conservation standards established under subsections 
        (w) through (ff) take effect.''.
    (d) General Rule of Preemption.--Section 327(c) of the 
Energy Policy and Conservation Act (42 U.S.C. 6297(c)) is 
amended--
            (1) in paragraph (5), by striking ``or'' at the 
        end;
            (2) in paragraph (6), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(7)(A) is a regulation concerning standards for 
        commercial prerinse spray valves adopted by 
theCalifornia Energy Commission before January 1, 2005; or
            ``(B) is an amendment to a regulation described in 
        subparagraph (A) that was developed to align California 
        regulations with changes in American Society for 
        Testing and Materials Standard F2324;
            ``(8)(A) is a regulation concerning standards for 
        pedestrian modules adopted by the California Energy 
        Commission before January 1, 2005; or
            ``(B) is an amendment to a regulation described in 
        subparagraph (A) that was developed to align California 
        regulations to changes in the Institute for 
        Transportation Engineers standards, entitled 
        `Performance Specification: Pedestrian Traffic Control 
        Signal Indications'.''.

SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.

    (a) Definitions.--Section 340 of the Energy Policy and 
Conservation Act (42 U.S.C. 6311) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (D) 
                through (G) as subparagraphs (H) through (K), 
                respectively; and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) Very large commercial package air 
                conditioning and heating equipment.
                    ``(E) Commercial refrigerators, freezers, 
                and refrigerator-freezers.
                    ``(F) Automatic commercial ice makers.
                    ``(G) Commercial clothes washers.'';
            (2) in paragraph (2)(B), by striking ``small and 
        large commercial package air conditioning and heating 
        equipment'' and inserting ``commercial package air 
        conditioning and heating equipment, commercial 
        refrigerators, freezers, and refrigerator-freezers, 
        automatic commercial ice makers, commercial clothes 
        washers'';
            (3) by striking paragraphs (8) and (9) and 
        inserting the following:
            ``(8)(A) The term `commercial package air 
        conditioning and heating equipment' means air-cooled, 
        water-cooled, evaporatively-cooled, or water source 
        (not including ground water source) electrically 
        operated, unitary central air conditioners and central 
        air conditioning heat pumps for commercial application.
            ``(B) The term `small commercial package air 
        conditioning and heating equipment' means commercial 
        package air conditioning and heating equipment that is 
        rated below 135,000 Btu per hour (cooling capacity).
            ``(C) The term `large commercial package air 
        conditioning and heating equipment' means commercial 
        package air conditioning and heating equipment that is 
        rated--
                    ``(i) at or above 135,000 Btu per hour; and
                    ``(ii) below 240,000 Btu per hour (cooling 
                capacity).
            ``(D) The term `very large commercial package air 
        conditioning and heating equipment' means commercial 
        package air conditioning and heating equipment that is 
        rated--
                    ``(i) at or above 240,000 Btu per hour; and
                    ``(ii) below 760,000 Btu per hour (cooling 
                capacity).
            ``(9)(A) The term `commercial refrigerator, 
        freezer, and refrigerator-freezer' means refrigeration 
        equipment that--
                    ``(i) is not a consumer product (as defined 
                in section 321);
                    ``(ii) is not designed and marketed 
                exclusively for medical, scientific, or 
                research purposes;
                    ``(iii) operates at a chilled, frozen, 
                combination chilled and frozen, or variable 
                temperature;
                    ``(iv) displays or stores merchandise and 
                other perishable materials horizontally, 
                semivertically, or vertically;
                    ``(v) has transparent or solid doors, 
                sliding or hinged doors, a combination of 
                hinged, sliding, transparent, or solid doors, 
                or no doors;
                    ``(vi) is designed for pull-down 
                temperature applications or holding temperature 
                applications; and
                    ``(vii) is connected to a self-contained 
                condensing unit or to a remote condensing unit.
            ``(B) The term `holding temperature application' 
        means a use of commercial refrigeration equipment other 
        than a pull-down temperature application, except a 
        blast chiller or freezer.
            ``(C) The term `integrated average temperature' 
        means the average temperature of all test package 
        measurements taken during the test.
            ``(D) The term `pull-down temperature application' 
        means a commercial refrigerator with doors that, when 
        fully loaded with 12 ounce beverage cans at 90 degrees 
        F, can cool those beverages to an average stable 
        temperature of 38 degrees F in 12 hours or less.
            ``(E) The term `remote condensing unit' means a 
        factory-made assembly of refrigerating components 
        designed to compress and liquefy a specific refrigerant 
        that is remotely located from the refrigerated 
        equipment and consists of 1 or more refrigerant 
        compressors, refrigerant condensers, condenser fans and 
        motors, and factory supplied accessories.
            ``(F) The term `self-contained condensing unit' 
        means a factory-made assembly of refrigerating 
        components designed to compress and liquefy a specific 
        refrigerant that is an integral part of the 
        refrigerated equipment and consists of 1 or more 
        refrigerant compressors, refrigerant condensers, 
        condenser fans and motors, and factory supplied 
        accessories.''; and
            (4) by adding at the end the following:
            ``(19) The term `automatic commercial ice maker' 
        means a factory-made assembly (not necessarily shipped 
        in 1 package) that--
                    ``(A) consists of a condensing unit and 
                ice-making section operating as an integrated 
                unit, with means for making and harvesting ice; 
                and
                    ``(B) may include means for storing ice, 
                dispensing ice, or storing and dispensing ice.
            ``(20) The term `commercial clothes washer' means a 
        soft-mount front-loading or soft-mount top-loading 
        clothes washer that--
                    ``(A) has a clothes container compartment 
                that--
                            ``(i) for horizontal-axis clothes 
                        washers, is not more than 3.5 cubic 
                        feet; and
                            ``(ii) for vertical-axis clothes 
                        washers, is not more than 4.0 cubic 
                        feet; and
                    ``(B) is designed for use in--
                            ``(i) applications in which the 
                        occupants of more than 1 household will 
                        be using the clothes washer, such as 
                        multi-family housing common areas and 
                        coin laundries; or
                            ``(ii) other commercial 
                        applications.
            ``(21) The term `harvest rate' means the amount of 
        ice (at 32 degrees F) in pounds produced per 24 
        hours.''.
    (b) Standards for Commercial Package Air Conditioning and 
Heating Equipment.--Section 342(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(a)) is amended--
            (1) in the subsection heading, by striking ``Small 
        and Large'' and inserting ``Small, Large, and Very 
        Large'';
            (2) in paragraph (1), by inserting ``but before 
        January 1, 2010,'' after ``January 1, 1994,'';
            (3) in paragraph (2), by inserting ``but before 
        January 1, 2010,'' after ``January 1, 1995,''; and
            (4) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``(i)'' after 
                        ``(A)'';
                            (ii) by striking ``the date of 
                        enactment of the Energy Policy Act of 
                        1992'' and inserting ``January 1, 
                        2010'';
                            (iii) by inserting after ``large 
                        commercial package air conditioning and 
                        heating equipment,'' the following: 
                        ``and very large commercial package air 
                        conditioning and heating equipment, or 
                        if ASHRAE/IES Standard 90.1, as in 
                        effect on October 24, 1992, is amended 
                        with respect to any''; and
                            (iv) by adding at the end the 
                        following:
    ``(ii) If ASHRAE/IES Standard 90.1 is not amended with 
respect to small commercial package air conditioning and 
heating equipment, large commercial package air conditioning 
and heating equipment, and very large commercial package air 
conditioning and heating equipment during the 5-year period 
beginning on the effective date of a standard, the Secretary 
may initiate a rulemaking to determine whether a more stringent 
standard--
            ``(I) would result in significant additional 
        conservation of energy; and
            ``(II) is technologically feasible and economically 
        justified.''; and
                    (B) in subparagraph (C)(ii), by inserting 
                ``and very large commercial package air 
                conditioning and heating equipment'' after 
                ``large commercial package air conditioning and 
                heating equipment''; and
            (5) by adding at the end the following:
    ``(7) Small commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet 
the following standards:
            ``(A) The minimum energy efficiency ratio of air-
        cooled central air conditioners at or above 65,000 Btu 
        per hour (cooling capacity) and less than 135,000 Btu 
        per hour (cooling capacity) shall be--
                    ``(i) 11.2 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 11.0 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(B) The minimum energy efficiency ratio of air-
        cooled central air conditioner heat pumps at or above 
        65,000 Btu per hour (cooling capacity) and less than 
        135,000 Btu per hour (cooling capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.8 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(C) The minimum coefficient of performance in the 
        heating mode of air-cooled central air conditioning 
        heat pumps at or above 65,000 Btu per hour (cooling 
        capacity) and less than 135,000 Btu per hour (cooling 
        capacity) shall be 3.3 (at a high temperature rating of 
        47 degrees F db).
    ``(8) Large commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet 
the following standards:
            ``(A) The minimum energy efficiency ratio of air-
        cooled central air conditioners at or above 135,000 Btu 
        per hour (cooling capacity) and less than 240,000 Btu 
        per hour (cooling capacity) shall be--
                    ``(i) 11.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.8 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(B) The minimum energy efficiency ratio of air-
        cooled central air conditioner heat pumps at or above 
        135,000 Btu per hour (cooling capacity) and less than 
        240,000 Btu per hour (cooling capacity) shall be--
                    ``(i) 10.6 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 10.4 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(C) The minimum coefficient of performance in the 
        heating mode of air-cooled central air conditioning 
        heat pumps at or above 135,000 Btu per hour (cooling 
        capacity) and less than 240,000 Btu per hour (cooling 
        capacity) shall be 3.2 (at a high temperature rating of 
        47 degrees F db).
    ``(9) Very large commercial package air conditioning and 
heating equipment manufactured on or after January 1, 2010, 
shall meet the following standards:
            ``(A) The minimum energy efficiency ratio of air-
        cooled central air conditioners at or above 240,000 Btu 
        per hour (cooling capacity) and less than 760,000 Btu 
        per hour (cooling capacity) shall be--
                    ``(i) 10.0 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 9.8 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(B) The minimum energy efficiency ratio of air-
        cooled central air conditioner heat pumps at or above 
        240,000 Btu per hour (cooling capacity) and less than 
        760,000 Btu per hour (cooling capacity) shall be--
                    ``(i) 9.5 for equipment with no heating or 
                electric resistance heating; and
                    ``(ii) 9.3 for equipment with all other 
                heating system types that are integrated into 
                the equipment (at a standard rating of 95 
                degrees F db).
            ``(C) The minimum coefficient of performance in the 
        heating mode of air-cooled central air conditioning 
        heat pumps at or above 240,000 Btu per hour (cooling 
        capacity) and less than 760,000 Btu per hour (cooling 
        capacity) shall be 3.2 (at a high temperature rating of 
        47 degrees F db).''.
    (c) Standards for Commercial Refrigerators, Freezers, and 
Refrigerator-Freezers.--Section 342 of the Energy Policy and 
Conservation Act (42 U.S.C. 6313) is amended by adding at the 
end the following:
    ``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
            ``(A) The term `AV' means the adjusted volume (ft3) 
        (defined as 1.63 x frozen temperature compartment 
        volume (ft3) + chilled temperature compartment volume 
        (ft3)) with compartment volumes measured in accordance 
        with the Association of Home Appliance Manufacturers 
        Standard HRF1-1979.
            ``(B) The term `V' means the chilled or frozen 
        compartment volume (ft3) (as defined in the Association 
        of Home Appliance Manufacturers Standard HRF1-1979).
            ``(C) Other terms have such meanings as may be 
        established by the Secretary, based on industry-
        accepted definitions and practice.
    ``(2) Each commercial refrigerator, freezer, and 
refrigerator-freezer with a self-contained condensing unit 
designed for holding temperature applications manufactured on 
or after January 1, 2010, shall have a daily energyconsumption 
(in kilowatt hours per day) that does not exceed the following:

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


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

----------------------------------------------------------------------------------------------------------------
                                                                                               Maximum Condenser
         Equipment Type             Type of Cooling    Harvest Rate (lbs  Maximum Energy Use  Water Use (gal/100
                                                         ice/24 hours)     (kWh/100 lbs Ice)       lbs Ice)
----------------------------------------------------------------------------------------------------------------
Ice Making Head                   Water               <500                7.80-0.0055H        200-0.022H
                                                     -----------------------------------------------------------
                                                      500 and <1436       5.58-0.0011H        200-0.022H
                                                     -----------------------------------------------------------
                                                      1436                4.0                 200-0.022H
----------------------------------------------------------------------------------------------------------------
Ice Making Head                   Air                 <450                10.26-0.0086H       Not Applicable
                                                     -----------------------------------------------------------
                                                      450                 6.89-0.0011H        Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing                 Air                 <1000               8.85-0.0038H        Not Applicable
(but not remote
compressor)
                                                     -----------------------------------------------------------
                                                      1000                5.10                Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing                 Air                 <934                8.85-0.0038H        Not Applicable
and Remote
Compressor
                                                     -----------------------------------------------------------
                                                      934                 5.3                 Not Applicable
----------------------------------------------------------------------------------------------------------------
Self Contained                    Water               <200                11.40-0.019H        191-0.0315H
                                                     -----------------------------------------------------------
                                                      200                 7.60                191-0.0315H
----------------------------------------------------------------------------------------------------------------
Self Contained                    Air                 <175                18.0-0.0469H        Not Applicable
                                                     -----------------------------------------------------------
                                                      175                 9.80                Not Applicable
----------------------------------------------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.

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

SEC. 137. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product 
Labeling.--Section 324(a)(2) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding at 
the end the following:
    ``(F)(i) Not later than 90 days after the date of enactment 
of this subparagraph, the Commission shall initiate a 
rulemaking to consider--
            ``(I) the effectiveness of the consumer products 
        labeling program in assisting consumers in making 
        purchasing decisions and improving energy efficiency; 
        and
            ``(II) changes to the labeling rules (including 
        categorical labeling) that would improve the 
        effectiveness of consumer product labels.
    ``(ii) Not later than 2 years after the date of enactment 
of this subparagraph, the Commission shall complete the 
rulemaking initiated under clause (i).
    ``(G)(i) Not later than 18 months after the date of 
enactment of this subparagraph, the Commission shall issue by 
rule, in accordance with this section, labeling requirements 
for the electricity used by ceiling fans to circulate air in a 
room.
    ``(ii) The rule issued under clause (i) shall apply to 
products manufactured after the later of--
            ``(I) January 1, 2009; or
            ``(II) the date that is 60 days after the final 
        rule is issued.''.
    (b) Rulemaking on Labeling for Additional Products.--
Section 324(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)) is amended by adding at the end the following:
    ``(5)(A) For covered products described in subsections (u) 
through (ff) of section 325, after a test procedure has been 
prescribed under section 323, the Secretary or the Commission, 
as appropriate, may prescribe, by rule, under this section 
labeling requirements for the products.
    ``(B) In the case of products to which TP-1 standards under 
section 325(y) apply, labeling requirements shall be based on 
the `Standard for the Labeling of Distribution Transformer 
Efficiency' prescribed by the National Electrical Manufacturers 
Association (NEMA TP-3) as in effect on the date of enactment 
of this paragraph.
    ``(C) In the case of dehumidifiers covered under section 
325(dd), the Commission shall not require an `Energy Guide' 
label.''.

SEC. 138. INTERMITTENT ESCALATOR STUDY.

    (a) In General.--The Administrator of General Services 
shall conduct a study on the advantages and disadvantages of 
employing intermittent escalators in the United States.
    (b) Contents.--Such study shall include an analysis of--
            (1) the energy end-cost savings derived from the 
        use of intermittent escalators;
            (2) the cost savings derived from reduced 
        maintenance requirements; and
            (3) such other issues as the Administrator 
        considers appropriate.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Administrator shall transmit 
to Congress a report on the results of the study.
    (d) Definition.--For purpose of this section, the term 
``intermittent escalator'' means an escalator that remains in a 
stationary position until it automatically operates at the 
approach of a passenger, returning to a stationary position 
after the passenger completes passage.

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

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

SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.

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

SEC. 141. REPORT ON FAILURE TO COMPLY WITH DEADLINES FOR NEW OR REVISED 
                    ENERGY CONSERVATION STANDARDS.

    (a) Initial Report.--The Secretary shall submit a report to 
Congress regarding each new or revised energy conservation or 
water use standard which the Secretary has failed to issue in 
conformance with the deadlines established in the Energy Policy 
and Conservation Act. Such report shall state the reasons why 
the Secretary has failed to comply with the deadline for 
issuances of the new or revised standard and set forth the 
Secretary's plan for expeditiously prescribing such new or 
revised standard. The Secretary's initial report shall be 
submitted not later than 6 months following enactment of this 
Act and subsequent reports shall be submitted whenever the 
Secretary determines that additional deadlines for issuance of 
new or revised standards have been missed.
    (b) Implementation Report.--Every 6 months following the 
submission of a report under subsection (a) until the adoption 
of a new or revised standard described in such report, the 
Secretary shall submit to the Congress an implementation report 
describing the Secretary's progress in implementing the 
Secretary's plan or the issuance of the new or revised 
standard.

                       Subtitle D--Public Housing

SEC. 151. PUBLIC HOUSING CAPITAL FUND.

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

SEC. 152. ENERGY-EFFICIENT APPLIANCES.

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

SEC. 153. ENERGY EFFICIENCY STANDARDS.

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

SEC. 154. ENERGY STRATEGY FOR HUD.

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

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 6 months after the 
date of enactment of this Act, and each year thereafter, the 
Secretary shall review the available assessments of renewable 
energy resources within the United States, including solar, 
wind, biomass, ocean (includingtidal, wave, current, and 
thermal), geothermal, and hydroelectric energy resources, and undertake 
new assessments as necessary, taking into account changes in market 
conditions, available technologies, and other relevant factors.
    (b) Contents of Reports.--Not later than 1 year after the 
date of enactment of this Act, and each year thereafter, the 
Secretary shall publish a report based on the assessment under 
subsection (a). The report shall contain--
            (1) a detailed inventory describing the available 
        amount and characteristics of the renewable energy 
        resources; and
            (2) such other information as the Secretary 
        believes would be useful in developing such renewable 
        energy resources, including descriptions of surrounding 
        terrain, population and load centers, nearby energy 
        infrastructure, location of energy and water resources, 
        and available estimates of the costs needed to develop 
        each resource, together with an identification of any 
        barriers to providing adequate transmission for remote 
        sources of renewable energy resources to current and 
        emerging markets, recommendations for removing or 
        addressing such barriers, and ways to provide access to 
        the grid that do not unfairly disadvantage renewable or 
        other energy producers.
    (c) Authorization of Appropriations.--For the purposes of 
this section, there are authorized to be appropriated to the 
Secretary $10,000,000 for each of fiscal years 2006 through 
2010.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

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

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the 
Secretary, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
            (1) Not less than 3 percent in fiscal years 2007 
        through 2009.
            (2) Not less than 5 percent in fiscal years 2010 
        through 2012.
            (3) Not less than 7.5 percent in fiscal year 2013 
        and each fiscal year thereafter.
    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means any lignin 
        waste material that is segregated from other waste 
        materials and is determined to be nonhazardous by the 
        Administrator of the Environmental Protection Agency 
        and any solid, nonhazardous, cellulosic material that 
        is derived from--
                    (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                    (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                    (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                    (D) a plant that is grown exclusively as a 
                fuel for the production of electricity.
            (2) Renewable energy.--The term ``renewable 
        energy'' means electric energy generated from solar, 
        wind, biomass, landfill gas, ocean (including tidal, 
        wave, current, and thermal), geothermal, municipal 
        solid waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new 
        capacity at an existing hydroelectric project.
    (c) Calculation.--For purposes of determining compliance 
with the requirement of this section, the amount of renewable 
energy shall be doubled if--
            (1) the renewable energy is produced and used on-
        site at a Federal facility;
            (2) the renewable energy is produced on Federal 
        lands and used at a Federal facility; or
            (3) the renewable energy is produced on Indian land 
        as defined in title XXVI of the Energy Policy Act of 
        1992 (25 U.S.C. 3501 et seq.) and used at a Federal 
        facility.
    (d) Report.--Not later than April 15, 2007, and every 2 
years thereafter, the Secretary shall provide a report to 
Congress on the progress of the Federal Government in meeting 
the goals established by this section.

SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

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

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

    ``(a) Photovoltaic Energy Commercialization Program.--
            ``(1) In general.--The Administrator of General 
        Services may establish a photovoltaic energy 
        commercialization program for the procurement and 
        installation of photovoltaic solar electric systems for 
        electric production in new and existing public 
        buildings.
            ``(2) Purposes.--The purposes of the program shall 
        be to accomplish the following:
                    ``(A) To accelerate the growth of a 
                commercially viable photovoltaic industry to 
                make this energy system available to the 
                general public as an option which can reduce 
                the national consumption of fossil fuel.
                    ``(B) To reduce the fossil fuel consumption 
                and costs of the Federal Government.
                    ``(C) To attain the goal of installing 
                solar energy systems in 20,000 Federal 
                buildings by 2010, as contained in the Federal 
                Government's Million Solar Roof Initiative of 
                1997.
                    ``(D) To stimulate the general use within 
                the Federal Government of life-cycle costing 
                and innovative procurement methods.
                    ``(E) To develop program performance data 
                to support policy decisions on future incentive 
                programs with respect to energy.
            ``(3) Acquisition of photovoltaic solar electric 
        systems.--
                    ``(A) In general.--The program shall 
                provide for the acquisition of photovoltaic 
                solar electric systems and associated storage 
                capability for use in public buildings.
                    ``(B) Acquisition levels.--The acquisition 
                of photovoltaic electric systems shall be at a 
                level substantial enough to allow use of low-
                cost production techniques with at least 150 
                megawatts (peak) cumulative acquired during the 
                5 years of the program.
            ``(4) Administration.--The Administrator shall 
        administer the program and shall--
                    ``(A) issue such rules and regulations as 
                may be appropriate to monitor and assess the 
                performance and operation of photovoltaic solar 
                electric systems installed pursuant to this 
                subsection;
                    ``(B) develop innovative procurement 
                strategies for the acquisition of such systems; 
                and
                    ``(C) transmit to Congress an annual report 
                on the results of the program.
    ``(b) Photovoltaic Systems Evaluation Program.--
            ``(1) In general.--Not later than 60 days after the 
        date of enactment of this section, the Administrator 
        shall establish a photovoltaic solar energy systems 
        evaluation program to evaluate such photovoltaic solar 
        energy systems as are required in public buildings.
            ``(2) Program requirement.--In evaluating 
        photovoltaic solar energy systems under the program, 
        the Administrator shall ensure that such systems 
        reflect the most advanced technology.
    ``(c) Authorization of Appropriations.--
            ``(1) Photovoltaic energy commercialization 
        program.--There are authorized to be appropriated to 
        carry out subsection (a) $50,000,000 for each of fiscal 
        years 2006 through 2010. Such sums shall remain 
        available until expended.
            ``(2) Photovoltaic systems evaluation program.--
        There are authorized to be appropriated to carry out 
        subsection (b) $10,000,000 for each of fiscal years 
        2006 through 2010. Such sums shall remain available 
        until expended.''.
    (b) Conforming Amendment.--The table of sections for the 
National Energy Conservation Policy Act is amended by inserting 
after the item relating to section 569 the following:

``Sec. 570. Use of photovoltaic energy in public buildings''.

SEC. 205. BIOBASED PRODUCTS.

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

SEC. 206. RENEWABLE ENERGY SECURITY.

    (a) Weatherization Assistance.--Section 415(c) of the 
Energy Conservation and Production Act (42 U.S.C. 6865(c)) is 
amended--
            (1) in paragraph (1), by striking ``in paragraph 
        (3)'' and inserting ``in paragraphs (3) and (4)'';
            (2) in paragraph (3), by striking ``$2,500 per 
        dwelling unit average provided in paragraph (1)'' and 
        inserting ``dwelling unit averages provided in 
        paragraphs (1) and (4)''; and
            (3) by adding at the end the following new 
        paragraphs:
    ``(4) The expenditure of financial assistance provided 
under this part for labor, weatherization materials, and 
related matters for a renewable energy system shall not exceed 
an average of $3,000 per dwelling unit.
    ``(5)(A) The Secretary shall by regulations--
            ``(i) establish the criteria which are to be used 
        in prescribing performance and quality standards under 
        paragraph (6)(A)(ii) or in specifying any form of 
        renewable energy under paragraph (6)(A)(i)(I); and
            ``(ii) establish a procedure under which a 
        manufacturer of an item may request the Secretary to 
        certify that the item will be treated, for purposes of 
        this paragraph, as a renewable energy system.
    ``(B) The Secretary shall make a final determination with 
respect to any request filed under subparagraph (A)(ii) within 
1 year after the filing of the request, together with any 
information required to be filed with such request under 
subparagraph (A)(ii).
    ``(C) Each month the Secretary shall publish a report of 
any request under subparagraph (A)(ii) which has been denied 
during the preceding month and the reasons for the denial.
    ``(D) The Secretary shall not specify any form of renewable 
energy under paragraph (6)(A)(i)(I) unless the Secretary 
determines that--
            ``(i) there will be a reduction in oil or natural 
        gas consumption as a result of such specification;
            ``(ii) such specification will not result in an 
        increased use of any item which is known to be, or 
        reasonably suspected to be, environmentally hazardous 
        or a threat to public health or safety; and
            ``(iii) available Federal subsidies do not make 
        such specification unnecessary or inappropriate (in the 
        light of the most advantageous allocation of economic 
        resources).
    ``(6) In this subsection--
            ``(A) the term `renewable energy system' means a 
        system which--
                    ``(i) when installed in connection with a 
                dwelling, transmits or uses--
                            ``(I) solar energy, energy derived 
                        from the geothermal deposits, energy 
                        derived from biomass, or any other form 
                        of renewable energy which the Secretary 
                        specifies by regulations, for the 
                        purpose of heating or cooling such 
                        dwelling or providing hot water or 
                        electricity for use within such 
                        dwelling; or
                            ``(II) wind energy for nonbusiness 
                        residential purposes;
                    ``(ii) meets the performance and quality 
                standards (if any) which have been prescribed 
                by the Secretary by regulations;
                    ``(iii) in the case of a combustion rated 
                system, has a thermal efficiency rating of at 
                least 75 percent; and
                    ``(iv) in the case of a solar system, has a 
                thermal efficiency rating of at least 15 
                percent; and
            ``(B) the term `biomass' means any organic matter 
        that is available on a renewable or recurring basis, 
        including agricultural crops and trees, wood and wood 
        wastes and residues, plants (including aquatic plants), 
        grasses, residues, fibers, and animal wastes, municipal 
        wastes, and other waste materials.''.
    (b) District Heating and Cooling Programs.--Section 172 of 
the Energy Policy Act of 1992 (42 U.S.C. 13451 note) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of 
                paragraph (3);
                    (B) by striking the period at the end of 
                paragraph (4) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) evaluate the use of renewable energy systems 
        (as such term is defined in section 415(c) of the 
        Energy Conservation and Production Act (42 U.S.C. 
        6865(c))) in residential buildings.''; and
            (2) in subsection (b), by striking ``this Act'' and 
        inserting ``the Energy Policy Act of 2005''.
    (c) Rebate Program.--
            (1) Establishment.--The Secretary shall establish a 
        program providing rebates for consumers for 
        expenditures made for the installation of a renewable 
        energy system in connection with a dwelling unit or 
        small business.
            (2) Amount of rebate.--Rebates provided under the 
        program established under paragraph (1) shall be in an 
        amount not to exceed the lesser of--
                    (A) 25 percent of the expenditures 
                described in paragraph (1) made by the 
                consumer; or
                    (B) $3,000.
            (3) Definition.--For purposes of this subsection, 
        the term ``renewable energy system'' has the meaning 
        given that term in section 415(c)(6)(A) of the Energy 
        Conservation and Production Act (42 U.S.C. 
        6865(c)(6)(A)), as added by subsection (a)(3) of this 
        section.
            (4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary for 
        carrying out this subsection, to remain available until 
        expended--
                    (A) $150,000,000 for fiscal year 2006;
                    (B) $150,000,000 for fiscal year 2007;
                    (C) $200,000,000 for fiscal year 2008;
                    (D) $250,000,000 for fiscal year 2009; and
                    (E) $250,000,000 for fiscal year 2010.
    (d) Renewable Fuel Inventory.--Not later than 180 days 
after the date of enactment of this Act, the Secretary shall 
transmit to Congress a report containing--
            (1) an inventory of renewable fuels available for 
        consumers; and
            (2) a projection of future inventories of renewable 
        fuels based on the incentives provided in this section.

SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.

    There is authorized to be appropriated to the General 
Services Administration to install a photovoltaic system, as 
set forth in the Sun Wall Design Project, for the headquarters 
building of the Department of Energy located at 1000 
Independence Avenue Southwest in the District of Columbia, 
commonly known as the Forrestal Building, $20,000,000 for 
fiscal year 2006. Such sums shall remain available until 
expended.

SEC. 208. SUGAR CANE ETHANOL PROGRAM.

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

SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

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

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

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

SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
                    ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, 
                    AND OTHER COMMERCIAL PURPOSES.

    (a) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means 
        nonmerchantable materials or precommercial thinnings 
        that are byproducts of preventive treatments, such as 
        trees, wood, brush, thinnings, chips, and slash, that 
        are removed--
                    (A) to reduce hazardous fuels;
                    (B) to reduce or contain disease or insect 
                infestation; or
                    (C) to restore forest health.
            (2) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 4(e) of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450b(e)).
            (3) Nonmerchantable.--For purposes of subsection 
        (b), the term ``nonmerchantable'' means that portion of 
        the byproducts of preventive treatments that would not 
        otherwise be used for higher value products.
            (4) Person.--The term ``person'' includes--
                    (A) an individual;
                    (B) a community (as determined by the 
                Secretary concerned);
                    (C) an Indian tribe;
                    (D) a small business or a corporation that 
                is incorporated in the United States; and
                    (E) a nonprofit organization.
            (5) Preferred community.--The term ``preferred 
        community'' means--
                    (A) any Indian tribe;
                    (B) any town, township, municipality, or 
                other similar unit of local government (as 
                determined by the Secretary concerned) that--
                            (i) has a population of not more 
                        than 50,000 individuals; and
                            (ii) the Secretary concerned, in 
                        the sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near Federal or Indian land, 
                        the condition of which is at 
                        significant risk of catastrophic 
                        wildfire, disease, or insect 
                        infestation or which suffers from 
                        disease or insect infestation; or
                    (C) any county that--
                            (i) is not contained within a 
                        metropolitan statistical area; and
                            (ii) the Secretary concerned, in 
                        the sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near Federal or Indian land, 
                        the condition of which is at 
                        significant risk of catastrophic 
                        wildfire, disease, or insect 
                        infestation or which suffers from 
                        disease or insect infestation.
            (6) Secretary concerned.--The term ``Secretary 
        concerned'' means the Secretary of Agriculture or the 
        Secretary of the Interior.
    (b) Biomass Commercial Use Grant Program.--
            (1) In general.--The Secretary concerned may make 
        grants to any person in a preferred community that owns 
        or operates a facility that uses biomass as a raw 
        material to produce electric energy, sensible heat, or 
        transportation fuels to offset the costs incurred to 
        purchase biomass for use by such facility.
            (2) Grant amounts.--A grant under this subsection 
        may not exceed $20 per green ton of biomass delivered.
            (3) Monitoring of grant recipient activities.--As a 
        condition of a grant under this subsection, the grant 
        recipient shall keep such records as the Secretary 
        concerned may require to fully and correctly disclose 
        the use of the grant funds and all transactions 
        involved in the purchase of biomass. Upon notice by a 
        representative of the Secretary concerned, the grant 
        recipient shall afford the representative reasonable 
        access to the facility that purchases or uses biomass 
        and an opportunity to examine the inventory and records 
        of the facility.
    (c) Improved Biomass Use Grant Program.--
            (1) In general.--The Secretary concerned may make 
        grants to persons to offset the cost of projects to 
        develop or research opportunities to improve the use 
        of, or add value to, biomass. In making such grants, 
        the Secretary concerned shall give preference to 
        persons in preferred communities.
            (2) Selection.--The Secretary concerned shall 
        select a grant recipient under paragraph (1) after 
        giving consideration to--
                    (A) the anticipated public benefits of the 
                project, including the potential to develop 
                thermal or electric energy resources or 
                affordable energy;
                    (B) opportunities for the creation or 
                expansion of small businesses and micro-
                businesses;
                    (C) the potential for new job creation;
                    (D) the potential for the project to 
                improve efficiency or develop cleaner 
                technologies for biomass utilization; and
                    (E) the potential for the project to reduce 
                the hazardous fuels from the areas in greatest 
                need of treatment.
            (3) Grant amount.--A grant under this subsection 
        may not exceed $500,000.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated $50,000,000 for each of the fiscal years 
2006 through 2016 to carry out this section.
    (e) Report.--Not later than October 1, 2010, the Secretary 
of Agriculture, in consultation with the Secretary of the 
Interior, shall submit to the Committee on Energy and Natural 
Resources and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, and the Committee on Resources, the 
Committee on Energy and Commerce, and the Committee on 
Agriculture of the House of Representatives, a report 
describing the results of the grant programs authorized by this 
section. The report shall include the following:
            (1) An identification of the size, type, and use of 
        biomass by persons that receive grants under this 
        section.
            (2) The distance between the land from which the 
        biomass was removed and the facility that used the 
        biomass.
            (3) The economic impacts, particularly new job 
        creation, resulting from the grants to and operation of 
        the eligible operations.

SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF 
                    ELECTRICITY FROM RENEWABLE ENERGY RESOURCES ON 
                    PUBLIC LANDS.

    It is the sense of the Congress that the Secretary of the 
Interior should, before the end of the 10-year period beginning 
on the date of enactment of this Act, seek to have approved 
non-hydropower renewable energy projects located on the public 
lands with a generation capacity of at least 10,000 megawatts 
of electricity.

                     Subtitle B--Geothermal Energy

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``John Rishel Geothermal 
Steam Act Amendments of 2005''.

SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.

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

``SEC. 4. LEASING PROCEDURES.

    ``(a) Nominations.--The Secretary shall accept nominations 
of land to be leased at any time from qualified companies and 
individuals under this Act.
    ``(b) Competitive Lease Sale Required.--
            ``(1) In general.--Except as otherwise specifically 
        provided by this Act, all land to be leased that is not 
        subject to leasing under subsection (c) shall be leased 
        as provided in this subsection to the highest 
        responsible qualified bidder, as determined by the 
        Secretary.
            ``(2) Competitive lease sales.--The Secretary shall 
        hold a competitive lease sale at least once every 2 
        years for land in a State that has nominations pending 
        under subsection (a) if the land is otherwise available 
        for leasing.
            ``(3) Lands subject to mining claims.--Lands that 
        are subject to a mining claim for which a plan of 
        operations has been approved by the relevant Federal 
        land management agency may be available for 
        noncompetitive leasing under this section to the mining 
        claim holder.
    ``(c) Noncompetitive Leasing.--The Secretary shall make 
available for a period of 2 years for noncompetitive leasing 
any tract for which a competitive lease sale is held, but for 
which the Secretary does not receive any bids in a competitive 
lease sale.
    ``(d) Pending Lease Applications.--
            ``(1) In general.--It shall be a priority for the 
        Secretary, and for the Secretary of Agriculture with 
        respect to National Forest Systems land, to ensure 
        timely completion of administrative actions, including 
        amendments to applicable forest plans and resource 
        management plans, necessary to process applications for 
        geothermal leasing pending on the date of enactment of 
        this subsection. All future forest plans and resource 
        management plans for areas with high geothermal 
        resource potential shall consider geothermal leasing 
        and development.
            ``(2) Administration.--An application described in 
        paragraph (1) and any lease issued pursuant to the 
        application--
                    ``(A) except as provided in subparagraph 
                (B), shall be subject to this section as in 
                effect on the day before the date of enactment 
                of this paragraph; or
                    ``(B) at the election of the applicant, 
                shall be subject to this section as in effect 
                on the effective date of this paragraph.
    ``(e) Leases Sold as a Block.--If information is available 
to the Secretary indicating a geothermal resource that could be 
produced as 1 unit can reasonably be expected to underlie more 
than 1 parcel to be offered in a competitive lease sale, the 
parcels for such a resource may be offered for bidding as a 
block in the competitive lease sale.''.

SEC. 223. DIRECT USE.

    (a) Fees for Direct Use.--Section 5 of the Geothermal Steam 
Act of 1970 (30 U.S.C. 1004) is amended--
            (1) in subsection (c), by redesignating paragraphs 
        (1) and (2) as subparagraphs (A) and (B), respectively;
            (2) by redesignating subsections (a) through (d) as 
        paragraphs (1) through (4), respectively;
            (3) by inserting ``(a) In General.--'' after ``SEC. 
        5.''; and
            (4) by adding at the end the following:
    ``(b) Direct Use.--
            ``(1) In general.--Notwithstanding subsection 
        (a)(1), the Secretary shall establish a schedule of 
        fees, in lieu of royalties for geothermal resources, 
        that a lessee or its affiliate--
                    ``(A) uses for a purpose other than the 
                commercial generation of electricity; and
                    ``(B) does not sell.
            ``(2) Schedule of fees.--The schedule of fees--
                    ``(A) may be based on the quantity or 
                thermal content, or both, of geothermal 
                resources used;
                    ``(B) shall ensure a fair return to the 
                United States for use of the resource; and
                    ``(C) shall encourage development of the 
                resource.
            ``(3) State, tribal, or local governments.--If a 
        State, tribal, or local government is the lessee and 
        uses geothermal resources without sale and for public 
        purposes other than commercial generation of 
        electricity, the Secretary shall charge only a nominal 
        fee for use of the resource.
            ``(4) Final regulation.--In issuing any final 
        regulation establishing a schedule of fees under this 
        subsection, the Secretary shall seek--
                    ``(A) to provide lessees with a simplified 
                administrative system;
                    ``(B) to facilitate development of direct 
                use of geothermal resources; and
                    ``(C) to contribute to sustainable economic 
                development opportunities in the area.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal 
Steam Act of 1970 (30 U.S.C. 1003) (as amended by section 222) 
is further amended by adding at the end the following:
    ``(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify 
areas in which the land to be leased under this Act exclusively 
for direct use of geothermal resources, without sale for 
purposes other than commercial generation of electricity, may 
be leased to any qualified applicant that first applies for 
such a lease under regulations issued by the Secretary, if the 
Secretary--
            ``(1) publishes a notice of the land proposed for 
        leasing not later than 90 days before the date of the 
        issuance of the lease;
            ``(2) does not receive during the 90-day period 
        beginning on the date of the publication any nomination 
        to include the land concerned in the next competitive 
        lease sale; and
            ``(3) determines there is no competitive interest 
        in the geothermal resources in the land to be leased.
    ``(g) Area Subject to Lease for Direct Use.--
            ``(1) In general.--Subject to paragraph (2), a 
        geothermal lease for the direct use of geothermal 
        resources shall cover not more than the quantity of 
        acreage determined by the Secretary to be reasonably 
        necessary for the proposed use.
            ``(2) Limitations.--The quantity of acreage covered 
        by the lease shall not exceed the limitations 
        established under section 7.''.
    (c) Application of New Lease Terms.--The schedule of fees 
established under the amendment made by subsection (a)(4) shall 
apply with respect to payments under a lease converted under 
this subsection that are due and owing, and have been paid, on 
or after July 16, 2003. This subsection shall not require the 
refund of royalties paid to a state under section 20 of the 
Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date 
of enactment of this Act.

SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

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

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

    ``(a) In General.--Except with respect to lands in the 
State of Alaska, all monies received by the United States from 
sales, bonuses, rentals, and royalties under this Act shall be 
paid into the Treasury of the United States. Of amounts 
deposited under this subsection, subject to the provisions of 
subsection (b) of section 35 of the Mineral Leasing Act (30 
U.S.C. 191(b)) and section 5(a)(2) of this Act--
            ``(1) 50 percent shall be paid to the State within 
        the boundaries of which the leased lands or geothermal 
        resources are or were located; and
            ``(2) 25 percent shall be paid to the County within 
        the boundaries of which the leased lands or geothermal 
        resources are or were located.
    ``(b) Use of Payments.--Amounts paid to a State or county 
under subsection (a) shall be used consistent with the terms of 
section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.
    (c) Near-Term Production Incentive for Existing Leases.--
            (1) In general.--Notwithstanding section 5(a) of 
        the Geothermal Steam Act of 1970, the royalty required 
        to be paid shall be 50 percent of the amount of the 
        royalty otherwise required, on any lease issued before 
        the date of enactment of this Act that does not convert 
        to new royalty terms under subsection (e)--
                    (A) with respect to commercial production 
                of energy from a facility that begins such 
                production in the 6-year period beginning on 
                the date of enactment of this Act; or
                    (B) on qualified expansion geothermal 
                energy.
            (2) 4-year application.--Paragraph (1) applies only 
        to new commercial production of energy from a facility 
        in the first 4 years of such production.
    (d) Definition of Qualified Expansion Geothermal Energy.--
In this section, the term ``qualified expansion geothermal 
energy'' means geothermal energy produced from a generation 
facility for which--
            (1) the production is increased by more than 10 
        percent as a result of expansion of the facility 
        carried out in the 6-year period beginning on the date 
        of enactment of this Act; and
            (2) such production increase is greater than 10 
        percent of the average production by the facility 
        during the 5-year period preceding the expansion of the 
        facility (as such average is adjusted to reflect any 
        trend in changes in production during that period).
    (e) Royalty Under Existing Leases.--
            (1) In general.--Any lessee under a lease issued 
        under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 
        et seq.) before the date of enactment of this Act may, 
        within the time period specified in paragraph (2), 
        submit to the Secretary of the Interior a request to 
        modify the terms of the lease relating to payment of 
        royalties to provide--
                    (A) in the case of a lease that meets the 
                requirements of subsection (b) of section 5 of 
                the Geothermal Steam Act of 1970 (30 U.S.C. 
                1004) (as amended by section 223), that 
                royalties be based on the schedule of fees 
                established under that section; and
                    (B) in the case of any other lease, that 
                royalties be computed on a percentage of the 
                gross proceeds from the sale of electricity, at 
                a royalty rate that is expected to yield total 
                royalty payments equivalent to payments that 
                would have been received for comparable 
                production under the royalty rate in effect for 
                the lease before the date of enactment of this 
                subsection.
            (2) Timing.--A request for a modification under 
        paragraph (1) shall be submitted to the Secretary of 
        the Interior by the date that is not later than--
                    (A) in the case of a lease for direct use, 
                18 months after the effective date of the 
                schedule of fees established by the Secretary 
                of the Interior under section 5 of the 
                Geothermal Steam Act of 1970 (30 U.S.C. 1004); 
                or
                    (B) in the case of any other lease, 18 
                months after the effective date of the final 
                regulation issued under subsection (a).
            (3) Application of modification.--If the lessee 
        requests modification of a lease under paragraph (1)--
                    (A) the Secretary of the Interior shall, 
                within 180 days after the receipt of the 
                request for modification, modify the lease to 
                comply with--
                            (i) in the case of a lease for 
                        direct use, the schedule of fees 
                        established by the Secretary under 
                        section 5 of the Geothermal Steam Act 
                        of 1970 (30 U.S.C. 1004); or
                            (ii) in the case of any other 
                        lease, the royalty for the lease 
                        established under paragraph (1)(B); and
                    (B) the modification shall apply to any use 
                of geothermal resources to which subsection (a) 
                applies that occurs after the date of the 
                modification.
            (4) Consultation.--The Secretary of the Interior 
        shall consult with the State and local governments 
        affected by any proposed changes in lease royalty terms 
        under this subsection.

SEC. 225. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING ON FEDERAL 
                    LANDS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary of the Interior and 
the Secretary of Agriculture shall enter into andsubmit to 
Congress a memorandum of understanding in accordance with this section, 
the Geothermal Steam Act of 1970 (as amended by this Act), and other 
applicable laws, regarding coordination of leasing and permitting for 
geothermal development of public lands and National Forest System lands 
under their respective jurisdictions.
    (b) Lease and Permit Applications.--The memorandum of 
understanding shall--
            (1) establish an administrative procedure for 
        processing geothermal lease applications, including 
        lines of authority, steps in application processing, 
        and time limits for application procession;
            (2) establish a 5-year program for geothermal 
        leasing of lands in the National Forest System, and a 
        process for updating that program every 5 years; and
            (3) establish a program for reducing the backlog of 
        geothermal lease application pending on January 1, 
        2005, by 90 percent within the 5-year period beginning 
        on the date of enactment of this Act, including, as 
        necessary, by issuing leases, rejecting lease 
        applications for failure to comply with the provisions 
        of the regulations under which they were filed, or 
        determining that an original applicant (or the 
        applicant's assigns, heirs, or estate) is no longer 
        interested in pursuing the lease application.
    (c) Data Retrieval System.--The memorandum of understanding 
shall establish a joint data retrieval system that is capable 
of tracking lease and permit applications and providing to the 
applicant information as to their status within the Departments 
of the Interior and Agriculture, including an estimate of the 
time required for administrative action.

SEC. 226. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

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

SEC. 227. COOPERATIVE OR UNIT PLANS.

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

``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

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

SEC. 228. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) (as amended by section 223(a)) is further amended in 
subsection (a) by striking paragraph (2) and inserting the 
following:
            ``(2) a royalty on any byproduct that is a mineral 
        specified in the first section of the Mineral Leasing 
        Act (30 U.S.C. 181), and that is derived from 
        production under the lease, at the rate of the royalty 
        that applies under that Act to production of the 
        mineral under a lease under that Act;''.

SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS, 
                    RENTALS, AND ROYALTIES.

    Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1006) is amended in the second sentence by striking ``period, 
and in no event'' and all that follows through the end of the 
sentence and inserting ``period''.

SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) (as amended by sections 223 and 224) is further amended--
            (1) in subsection (a)(2) by inserting ``and'' after 
        the semicolon at the end;
            (2) in subsection (a)(3) by striking ``; and'' and 
        inserting a period;
            (3) by striking paragraph (4) of subsection (a); 
        and
            (4) by adding at the end the following:
    ``(e) Crediting of Rental Toward Royalty.--Any annual 
rental under this section that is paid with respect to a lease 
before the first day of the year for which the annual rental is 
owed shall be credited to the amount of royalty that is 
required to be paid under the lease for that year.''.

SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

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

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

    ``(a) In General.--
            ``(1) Primary term.--A geothermal lease shall be 
        for a primary term of 10 years.
            ``(2) Initial extension.--The Secretary shall 
        extend the primary term of a geothermal lease for 5 
        years if, for each year after the tenth year of the 
        lease--
                    ``(A) the Secretary determined under 
                subsection (b) that the lessee satisfied the 
                work commitment requirements that applied to 
                the lease for that year; or
                    ``(B) the lessee paid in annual payments 
                accordance with subsection (c).
            ``(3) Additional extension.--The Secretary shall 
        extend the primary term of a geothermal lease (after an 
        initial extension under paragraph (2)) for an 
        additional 5 years if, for each year of the initial 
        extension under paragraph (2), the Secretary determined 
        under subsection (b) that the lessee satisfied the 
        minimum work requirements that applied to the lease for 
        that year.
    ``(b) Requirement to Satisfy Annual Minimum Work 
Requirement.--
            ``(1) In general.--The lessee for a geothermal 
        lease shall, for each year after the tenth year of the 
        lease, satisfy minimum work requirements prescribed by 
        the Secretary that apply to the lease for that year.
            ``(2) Prescription of minimum work requirements.--
        The Secretary shall issue regulations prescribing 
        minimum work requirements for geothermal leases, that--
                    ``(A) establish a geothermal potential; and
                    ``(B) if a geothermal potential has been 
                established, confirm the existence of 
                producible geothermal resources.
    ``(c) Payments in Lieu of Minimum Work Requirements.--In 
lieu of the minimum work requirements set forth in subsection 
(b)(2), the Secretary shall by regulation establish minimum 
annual payments which may be made by the lessee for a limited 
number of years that the Secretary determines will not impair 
achieving diligent development of the geothermal resource, but 
in no event shall the number of years exceed the duration of 
the extension period provided in subsection (a).
    ``(d) Transition Rules for Leases Issued Prior to Enactment 
of Energy Policy Act of 2005.--The Secretary shall by 
regulation establish transition rules for leases issued before 
the date of the enactment of this subsection, including terms 
under which a lease that is near the end of its term on the 
date of enactment of this subsection may be extended for up to 
2 years--
            ``(1) to allow achievement of production under the 
        lease; or
            ``(2) to allow the lease to be included in a 
        producing unit.
    ``(e) Geothermal Lease Overlying Mining Claim.--
            ``(1) Exemption.--The lessee for a geothermal lease 
        of an area overlying an area subject to a mining claim 
        for which a plan of operations has been approved by the 
        relevant Federal land management agency is exempt from 
        annual work requirements established under this Act, if 
        development of the geothermal resource subject to the 
        lease would interfere with the mining operations under 
        such claim.
            ``(2) Termination of exemption.--An exemption under 
        this paragraph expires upon the termination of the 
        mining operations.
    ``(f) Termination of Application of Requirements.--Minimum 
work requirements prescribed under this section shall not apply 
to a geothermal lease after the date on which the geothermal 
resource is utilized under the lease in commercial 
quantities.''.

SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004) (as amended by sections 223, 224, and 230) is further 
amended by adding at the end the following:
    ``(f) Advanced Royalties Required for Cessation of 
Production.--
            ``(1) In general.--Subject to paragraphs (2) and 
        (3), if, at any time after commercial production under 
        a lease is achieved, production ceases for any reason, 
        the lease shall remain in full force and effect for a 
        period of not more than an aggregate number of 10 years 
        beginning on the date production ceases, if, during the 
        period in which production is ceased, the lessee pays 
        royalties in advance at the monthly average rate at 
        which the royalty was paid during the period of 
        production.
            ``(2) Reduction.--The amount of any production 
        royalty paid for any year shall be reduced (but not 
        below 0) by the amount of any advanced royalties paid 
        under the lease to the extent that the advance 
        royalties have not been used to reduce production 
        royalties for a prior year.
            ``(3) Exceptions.--Paragraph (1) shall not apply if 
        the cessation in production is required or otherwise 
        caused by--
                    ``(A) the Secretary;
                    ``(B) the Secretary of the Air Force;
                    ``(C) the Secretary of the Army;
                    ``(D) the Secretary of the Navy;
                    ``(E) a State or a political subdivision of 
                a State; or
                    ``(F) a force majeure.''.

SEC. 233. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam 
Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is 
further amended in subsection (a) by striking paragraph (3) and 
inserting the following:
            ``(3) payment in advance of an annual rental of not 
        less than--
                    ``(A) for each of the first through tenth 
                years of the lease--
                            ``(i) in the case of a lease 
                        awarded in a noncompetitive lease sale, 
                        $1 per acre or fraction thereof; or
                            ``(ii) in the case of a lease 
                        awarded in a competitive lease sale, $2 
                        per acre or fraction thereof for the 
                        first year and $3 per acre or fraction 
                        thereof for each of the second through 
                        10th years; and
                    ``(B) for each year after the 10th year of 
                the lease, $5 per acre or fraction thereof;''.
    (b) Termination of Lease for Failure to Pay Rental.--
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 
(as amended by sections 223, 224, 230, and 232) is further 
amended by adding at the end the following:
    ``(g) Termination of Lease for Failure to Pay Rental.--
            ``(1) In general.--The Secretary shall terminate 
        any lease with respect to which rental is not paid in 
        accordance with this Act and the terms of the lease 
        under which the rental is required, on the expiration 
        of the 45-day period beginning on the date of the 
        failure to pay the rental.
            ``(2) Notification.--The Secretary shall promptly 
        notify a lessee that has not paid rental required under 
        the lease that the lease will be terminated at the end 
        of the period referred to in paragraph (1).
            ``(3) Reinstatement.--A lease that would otherwise 
        terminate under paragraph (1) shall not terminate under 
        that paragraph if the lessee pays to the Secretary, 
        before the end of the period referred to in paragraph 
        (1), the amount of rental due plus a late fee equal to 
        10 percent of the amount.''.

SEC. 234. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR 5 FISCAL 
                    YEARS.

    (a) Deposit of Geothermal Resources Leases.--
Notwithstanding any other provision of law, amounts received by 
the United States in the first 5 fiscal years beginning after 
the date of enactment of this Act as rentals, royalties, and 
other payments required under leases under the Geothermal Steam 
Act of 1970, excluding funds required to be paid to State and 
county governments, shall be deposited into a separate account 
in the Treasury.
    (b) Use of Deposits.--Amounts deposited under subsection 
(a) shall be available to the Secretary of the Interior for 
expenditure, without further appropriation and without fiscal 
year limitation, to implement the Geothermal Steam Act of 1970 
and this Act.
    (c) Transfer of Funds.--For the purposes of coordination 
and processing of geothermal leases and geothermal use 
authorizations on Federal land the Secretary of the Interior 
may authorize the expenditure or transfer of such funds as are 
necessary to the Forest Service.

SEC. 235. ACREAGE LIMITATIONS.

    Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1006) is amended--
            (1) by striking ``SEC. 7.'', and by inserting 
        immediately before and above the first paragraph the 
        following:

``SEC. 7. ACREAGE LIMITATIONS.'';

            (2) in the first paragraph--
                    (A) by striking ``two thousand five hundred 
                and sixty acres'' and inserting ``5,120 
                acres''; and
                    (B) by striking ``twenty thousand four 
                hundred and eighty acres'' and inserting 
                ``51,200 acres''; and
            (3) by striking the second paragraph.

SEC. 236. TECHNICAL AMENDMENTS.

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

``SEC. 1. SHORT TITLE.

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

``SEC. 2. DEFINITIONS.

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

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

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

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

            (8) Section 8 (30 U.S.C. 1007) is amended by 
        striking ``SEC. 8. (a) The'' and inserting the 
        following:

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

    ``(a) The''.
            (9) Section 9 (30 U.S.C. 1008) is amended by 
        striking ``SEC. 9. If '' and inserting the following:

``SEC. 9. BYPRODUCTS.

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

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

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

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

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

``SEC. 12. TERMINATION OF LEASES.

    ``Leases''.
            (13) Section 13 (30 U.S.C. 1012) is amended by 
        striking ``SEC. 13. The'' and inserting the following:

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

    ``The''.
            (14) Section 14 (30 U.S.C. 1013) is amended by 
        striking ``SEC. 14. Subject'' and inserting the 
        following:

``SEC. 14. SURFACE LAND USE.

    ``Subject''.
            (15) Section 15 (30 U.S.C. 1014) is amended by 
        striking ``SEC. 15. (a) Geothermal'' and inserting the 
        following:

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

    ``(a) Geothermal''.
            (16) Section 16 (30 U.S.C. 1015) is amended by 
        striking ``SEC. 16. Leases'' and inserting the 
        following:

``SEC. 16. REQUIREMENT FOR LESSEES.

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

``SEC. 17. ADMINISTRATION.

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

``SEC. 19. DATA FROM FEDERAL AGENCIES.

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

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

            (20) Section 22 (30 U.S.C. 1021) is amended by 
        striking ``SEC. 22. Nothing'' and inserting the 
        following:

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

    ``Nothing''.
            (21) Section 23 (30 U.S.C. 1022) is amended by 
        striking ``SEC. 23. (a) All'' and inserting the 
        following:

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

    ``(a) All''.
            (22) Section 24 (30 U.S.C. 1023) is amended by 
        striking ``SEC. 24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

    ``The''.
            (23) Section 25 (30 U.S.C. 1024) is amended by 
        striking ``SEC. 25. As'' and inserting the following:

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

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

``SEC. 26. AMENDMENT.

    ``The''.
            (25) Section 27 (30 U.S.C. 1025) is amended by 
        striking ``SEC. 27. The'' and inserting the following:

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

    ``The''.
            (26) Section 28 (30 U.S.C. 1026) is amended by 
        striking ``SEC. 28. (a)(1) The'' and inserting the 
        following:

``SEC. 28. SIGNIFICANT THERMAL FEATURES.

    ``(a)(1) The''.
            (27) Section 29 (30 U.S.C. 1027) is amended by 
        striking ``SEC. 29. The'' and inserting the following:

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

    ``The''.

SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

    (a) Participation Authorized.--The Secretary, acting 
through the Idaho National Laboratory, may participate in a 
consortium described in subsection (b) to address science and 
science policy issues surrounding the expanded discovery and 
use of geothermal energy, including from geothermal resources 
on public lands.
    (b) Members.--The consortium referred to in subsection (a) 
shall--
            (1) be known as the ``Intermountain West Geothermal 
        Consortium'';
            (2) be a regional consortium of institutions and 
        government agencies that focuses on building 
        collaborative efforts among the universities in the 
        State of Idaho, other regional universities, State 
        agencies, and the Idaho National Laboratory;
            (3) include Boise State University, the University 
        of Idaho (including the Idaho Water Resources Research 
        Institute), the Oregon Institute of Technology, the 
        Desert Research Institute with the University and 
        Community College System of Nevada, and the Energy and 
        Geoscience Institute at the University of Utah;
            (4) be hosted and managed by Boise State 
        University; and
            (5) have a director appointed by Boise State 
        University, and associate directors appointed by each 
        participating institution.
    (c) Financial Assistance.--The Secretary, acting through 
the Idaho National Laboratory and subject to the availability 
of appropriations, will provide financial assistance to Boise 
State University for expenditure under contracts with members 
of the consortium to carry out the activities of the 
consortium.

                       Subtitle C--Hydroelectric

SEC. 241. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) Federal Reservations.--Section 4(e) of the Federal 
Power Act (16 U.S.C. 797(e)) is amended by inserting after 
``adequate protection and utilization of such reservation.'' at 
the end of the first proviso the following: ``The license 
applicant and any party to the proceeding shall be entitled to 
a determination on the record, after opportunity for an agency 
trial-type hearing of no more than 90 days, on any disputed 
issues of material fact with respect to such conditions. All 
disputed issues of material fact raised by any party shall be 
determined in a single trial-type hearing to be conducted by 
the relevant resource agency in accordance with the regulations 
promulgated under this subsection and within the time frame 
established by the Commission for each license proceeding. 
Within 90 days of the date of enactment of the Energy Policy 
Act of 2005, the Secretaries of the Interior, Commerce, and 
Agriculture shall establish jointly, by rule, the procedures 
for such expedited trial-type hearing, including the 
opportunity to undertake discovery and cross-examine witnesses, 
in consultation with the Federal Energy Regulatory 
Commission.''.
    (b) Fishways.--Section 18 of the Federal Power Act (16 
U.S.C. 811) is amended by inserting after ``and such fishways 
as may be prescribed by the Secretary of Commerce.'' the 
following: ``The license applicant and any party to the 
proceeding shall be entitled to a determination on the record, 
after opportunity for an agency trial-type hearing of no more 
than 90 days, on any disputed issues of material fact with 
respect to such fishways. All disputed issues of material fact 
raised by any party shall be determined in a single trial-type 
hearing to be conducted by the relevant resource agency in 
accordance with the regulations promulgated under this 
subsection and within the time frame established by the 
Commission for each license proceeding. Within 90 days of the 
date of enactment of the Energy Policy Act of 2005, the 
Secretaries of the Interior, Commerce, and Agriculture shall 
establish jointly, by rule, the procedures for such expedited 
trial-type hearing, including the opportunity to undertake 
discovery and cross-examine witnesses, in consultation with the 
Federal Energy Regulatory Commission.''.
    (c) Alternative Conditions and Prescriptions.--Part I of 
the Federal Power Act (16 U.S.C. 791a et seq.) is amended by 
adding the following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

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

SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) Incentive Payments.--For electric energy generated and 
sold by a qualified hydroelectric facility during the incentive 
period, the Secretary shall make, subject to the availability 
of appropriations, incentive payments to the owner or operator 
of such facility. The amount of such payment made to any such 
owner or operator shall be as determined under subsection (e) 
of this section. Payments under this section may only be made 
upon receipt by the Secretary of an incentive payment 
application which establishes that the applicant is eligible to 
receive such payment and which satisfies such other 
requirements as the Secretary deems necessary. Such application 
shall be in such form, and shall be submitted at such time, as 
the Secretary shall establish.
    (b) Definitions.--For purposes of this section:
            (1) Qualified hydroelectric facility.--The term 
        ``qualified hydroelectric facility'' means a turbine or 
        other generating device owned or solely operated by a 
        non-Federal entity which generates hydroelectric energy 
        for sale and which is added to an existing dam or 
        conduit.
            (2) Existing dam or conduit.--The term ``existing 
        dam or conduit'' means any dam or conduit the 
        construction of which was completed before the date of 
        the enactment of this section and which does not 
        require any construction or enlargement of impoundment 
        or diversion structures (other than repair or 
        reconstruction) in connection with the installation of 
        a turbine or other generating device.
            (3) Conduit.--The term ``conduit'' has the same 
        meaning as when used in section 30(a)(2) of the Federal 
        Power Act (16 U.S.C. 823a(a)(2)).

The terms defined in this subsection shall apply without regard 
to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a dam 
owned by a governmental or nongovernmental entity, and without 
regard to whether the facility begins operation on or after the 
date of the enactment of this section.
    (c) Eligibility Window.--Payments may be made under this 
section only for electric energy generated from a qualified 
hydroelectric facility which begins operation during the period 
of 10 fiscal years beginning with the first full fiscal year 
occurring after the date of enactment of this subtitle.
    (d) Incentive Period.--A qualified hydroelectric facility 
may receive payments under this section for a period of 10 
fiscal years (referred to in this section as the ``incentive 
period''). Such period shall begin with the fiscal year in 
which electric energy generated from the facility is first 
eligible for such payments.
    (e) Amount of Payment.--
            (1) In general.--Payments made by the Secretary 
        under this section to the owner or operator of a 
        qualified hydroelectric facility shall be based on the 
        number of kilowatt hours of hydroelectric energy 
        generated by the facility during the incentive period. 
        For any such facility, the amount of such payment shall 
        be 1.8 cents per kilowatt hour (adjusted as provided in 
        paragraph (2)), subject to the availability of 
        appropriations under subsection (g), except that no 
        facility may receive more than $750,000 in 1 calendar 
        year.
            (2) Adjustments.--The amount of the payment made to 
        any person under this section as provided in paragraph 
        (1) shall be adjusted for inflation for each fiscal 
        year beginning after calendar year 2005 in the same 
        manner as provided in the provisions of section 
        29(d)(2)(B) of the Internal Revenue Code of 1986, 
        except that in applying such provisions the calendar 
        year 2005 shall be substituted for calendar year 1979.
    (f) Sunset.--No payment may be made under this section to 
any qualified hydroelectric facility after the expiration of 
the period of 20 fiscal years beginning with the first full 
fiscal year occurring after the date of enactment of this 
subtitle, and no payment may be made under this section to any 
such facility after a payment has been made with respect to 
such facility for a period of 10 fiscal years.
    (g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out the purposes 
of this section $10,000,000 for each of the fiscal years 2006 
through 2015.

SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) Incentive Payments.--The Secretary shall make incentive 
payments to the owners or operators of hydroelectric facilities 
at existing dams to be used to make capital improvements in the 
facilities that are directly related to improving the 
efficiency of such facilities by at least 3 percent.
    (b) Limitations.--Incentive payments under this section 
shall not exceed 10 percent of the costs of the capital 
improvement concerned and not more than 1 payment may be made 
with respect to improvements at a single facility. No payment 
in excess of $750,000 may be made with respect to improvements 
at a single facility.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section not more than 
$10,000,000 for each of the fiscal years 2006 through 2015.

SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

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

SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT.

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

SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.

    Section 408(a)(6) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking 
``April 20, 1977'' and inserting ``July 22, 2005''.

                       Subtitle D--Insular Energy

SEC. 251. INSULAR AREAS ENERGY SECURITY.

    Section 604 of the Act entitled ``An Act to authorize 
appropriations for certain insular areas of the United States, 
and for other purposes'', approved December 24, 1980 (48 U.S.C. 
1492), is amended--
            (1) in subsection (a)(4) by striking the period and 
        inserting a semicolon;
            (2) by adding at the end of subsection (a) the 
        following new paragraphs:
            ``(5) electric power transmission and distribution 
        lines in insular areas are inadequate to withstand 
        damage caused by the hurricanes and typhoons which 
        frequently occur in insular areas and such damage often 
        costs millions of dollars to repair; and
            ``(6) the refinement of renewable energy 
        technologies since the publication of the 1982 
        Territorial Energy Assessment prepared pursuant to 
        subsection (c) reveals the need to reassess the state 
        of energy production, consumption, infrastructure, 
        reliance on imported energy, opportunities for energy 
        conservation and increased energy efficiency, and 
        indigenous sources in regard to the insular areas.'';
            (3) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary of the Interior, in consultation 
with the Secretary of Energy and the head of government of each 
insular area, shall update the plans required under subsection 
(c) by--
            ``(A) updating the contents required by subsection 
        (c);
            ``(B) drafting long-term energy plans for such 
        insular areas with the objective of reducing, to the 
        extent feasible, their reliance on energy imports by 
        the year 2012, increasing energy conservation and 
        energy efficiency, and maximizing, to the extent 
        feasible, use of indigenous energy sources; and
            ``(C) drafting long-term energy transmission line 
        plans for such insular areas with the objective that 
        the maximum percentage feasible of electric power 
        transmission and distribution lines in each insular 
        area be protected from damage caused by hurricanes and 
        typhoons.
    ``(2) In carrying out this subsection, the Secretary of 
Energy shall identify and evaluate the strategies or projects 
with the greatest potential for reducing the dependence on 
imported fossil fuels as used for the generation of 
electricity, including strategies and projects for--
            ``(A) improved supply-side efficiency of 
        centralized electrical generation, transmission, and 
        distribution systems;
            ``(B) improved demand-side management through--
                    ``(i) the application of established 
                standards for energy efficiency for appliances;
                    ``(ii) the conduct of energy audits for 
                business and industrial customers; and
                    ``(iii) the use of energy savings 
                performance contracts;
            ``(C) increased use of renewable energy, 
        including--
                    ``(i) solar thermal energy for electric 
                generation;
                    ``(ii) solar thermal energy for water 
                heating in large buildings, such as hotels, 
                hospitals, government buildings, and 
                residences;
                    ``(iii) photovoltaic energy;
                    ``(iv) wind energy;
                    ``(v) hydroelectric energy;
                    ``(vi) wave energy;
                    ``(vii) energy from ocean thermal 
                resources, including ocean thermal-cooling for 
                community air conditioning;
                    ``(viii) water vapor condensation for the 
                production of potable water;
                    ``(ix) fossil fuel and renewable hybrid 
                electrical generation systems; and
                    ``(x) other strategies or projects that the 
                Secretary may identify as having significant 
                potential; and
            ``(D) fuel substitution and minimization with 
        indigenous biofuels, such as coconut oil.
    ``(3) In carrying out this subsection, for each insular 
area with a significant need for distributed generation, the 
Secretary of Energy shall identify and evaluate the most 
promising strategies and projects described in subparagraphs 
(C) and (D) of paragraph (2) for meeting that need.
    ``(4) In assessing the potential of any strategy or project 
under paragraphs (2) and (3), the Secretary of Energy shall 
consider--
            ``(A) the estimated cost of the power or energy to 
        be produced, including--
                    ``(i) any additional costs associated with 
                the distribution of the generation; and
                    ``(ii) the long-term availability of the 
                generation source;
            ``(B) the capacity of the local electrical utility 
        to manage, operate, and maintain any project that may 
        be undertaken; and
            ``(C) other factors the Secretary of Energy 
        considers to be appropriate.
    ``(5) Not later than 1 year after the date of enactment of 
this subsection, the Secretary of the Interior shall submit to 
the Committee on Energy and Natural Resources of the Senate, 
the Committee on Resources of the House of Representatives, and 
the Committee on Energy and Commerce of the House of 
Representatives, the updated plans for each insular area 
required by this subsection.''; and
            (4) by amending subsection (g)(4) to read as 
        follows:
            ``(4) Power line grants for insular areas.--
                    ``(A) In general.--The Secretary of the 
                Interior is authorized to make grants to 
                governments of insular areas of the United 
                States to carry out eligible projects to 
                protect electric power transmission and 
                distribution lines in such insular areas from 
                damage caused by hurricanes and typhoons.
                    ``(B) Eligible projects.--The Secretary of 
                the Interior may award grants under 
                subparagraph (A) only to governments of insular 
                areas of the United States that submit written 
                project plans to the Secretary for projects 
                that meet the following criteria:
                            ``(i) The project is designed to 
                        protect electric power transmission and 
                        distribution lines located in 1 or more 
                        of the insular areas of the United 
                        States from damage caused by hurricanes 
                        and typhoons.
                            ``(ii) The project is likely to 
                        substantially reduce the risk of future 
                        damage, hardship, loss, or suffering.
                            ``(iii) The project addresses 1 or 
                        more problems that have been repetitive 
                        or that pose a significant risk to 
                        public health and safety.
                            ``(iv) The project is not likely to 
                        cost more than the value of the 
                        reduction in direct damage and other 
                        negative impacts that the project is 
                        designed to prevent or mitigate. The 
                        cost benefit analysis required by this 
                        criterion shall be computed on a net 
                        present value basis.
                            ``(v) The project design has taken 
                        into consideration long-term changes to 
                        the areas and persons it is designed to 
                        protect and has manageable future 
                        maintenance and modification 
                        requirements.
                            ``(vi) The project plan includes an 
                        analysis of a range of options to 
                        address the problem it is designed to 
                        prevent or mitigate and a justification 
                        for the selection of the project in 
                        light of that analysis.
                            ``(vii) The applicant has 
                        demonstrated to the Secretary that the 
                        matching funds required by subparagraph 
                        (D) are available.
                    ``(C) Priority.--When making grants under 
                this paragraph, the Secretary of the Interior 
                shall give priority to grants for projects 
                which are likely to--
                            ``(i) have the greatest impact on 
                        reducing future disaster losses; and
                            ``(ii) best conform with plans that 
                        have been approved by the Federal 
                        Government or the government of the 
                        insular area where the project is to be 
                        carried out fordevelopment or hazard 
mitigation for that insular area.
                    ``(D) Matching requirement.--The Federal 
                share of the cost for a project for which a 
                grant is provided under this paragraph shall 
                not exceed 75 percent of the total cost of that 
                project. The non-Federal share of the cost may 
                be provided in the form of cash or services.
                    ``(E) Treatment of funds for certain 
                purposes.--Grants provided under this paragraph 
                shall not be considered as income, a resource, 
                or a duplicative program when determining 
                eligibility or benefit levels for Federal major 
                disaster and emergency assistance.
                    ``(F) Authorization of appropriations.--
                There are authorized to be appropriated to 
                carry out this paragraph $6,000,000 for each 
                fiscal year beginning after the date of the 
                enactment of this paragraph.''.

SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE.

    (a) Project Feasibility Studies.--
            (1) In general.--On a request described in 
        paragraph (2), the Secretary shall conduct a 
        feasibility study of a project to implement a strategy 
        or project identified in the plans submitted to 
        Congress pursuant to section 604 of the Act entitled 
        ``An Act to authorize appropriations for certain 
        insular areas of the United States, and for other 
        purposes'', approved December 24, 1980 (48 U.S.C. 
        1492), as having the potential to--
                    (A) significantly reduce the dependence of 
                an insular area on imported fossil fuels; or
                    (B) provide needed distributed generation 
                to an insular area.
            (2) Request.--The Secretary shall conduct a 
        feasibility study under paragraph (1) on--
                    (A) the request of an electric utility 
                located in an insular area that commits to fund 
                at least 10 percent of the cost of the study; 
                and
                    (B) if the electric utility is located in 
                the Federated States of Micronesia, the 
                Republic of the Marshall Islands, or the 
                Republic of Palau, written support for that 
                request by the President or the Ambassador of 
                the affected freely associated state.
            (3) Consultation.--The Secretary shall consult with 
        regional utility organizations in--
                    (A) conducting feasibility studies under 
                paragraph (1); and
                    (B) determining the feasibility of 
                potential projects.
            (4) Feasibility.--For the purpose of a feasibility 
        study under paragraph (1), a project shall be 
        determined to be feasible if the project would 
        significantly reduce the dependence of an insular area 
        on imported fossil fuels, or provide needed distributed 
        generation to an insular area, at a reasonable cost.
    (b) Implementation.--
            (1) In general.--On a determination by the 
        Secretary (in consultation with the Secretary of the 
        Interior) that a project is feasible under subsection 
        (a) and a commitment by an electric utility to operate 
        and maintain the project, the Secretary may provide 
        such technical and financial assistance as the 
        Secretary determines is appropriate for the 
        implementation of the project.
            (2) Regional utility organizations.--In providing 
        assistance under paragraph (1), the Secretary shall 
        consider providing the assistance through regional 
        utility organizations.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to the Secretary--
                    (A) $500,000 for each fiscal year for 
                project feasibility studies under subsection 
                (a); and
                    (B) $4,000,000 for each fiscal year for 
                project implementation under subsection (b).
            (2) Limitation of funds received by insular 
        areas.--No insular area may receive, during any 3-year 
        period, more than 20 percent of the total funds made 
        available during that 3-year period under subparagraphs 
        (A) and (B) of paragraph (1) unless the Secretary 
        determines that providing funding in excess of that 
        percentage best advances existing opportunities to meet 
        the objectives of this section.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

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

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

                   ``AUTHORIZATION OF APPROPRIATIONS

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

          ``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS'';

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

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';

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

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

``Sec. 273. Summer fill and fuel budgeting programs.''; and

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

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

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

SEC. 303. SITE SELECTION.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary shall complete a proceeding to select, from 
sites that the Secretary has previously studied, sites 
necessary to enable acquisition by the Secretary of the full 
authorized volume of the Strategic Petroleum Reserve. In such 
proceeding, the Secretary shall first consider and give 
preference to the five sites which the Secretary previously 
assessed in the Draft Environmental Impact Statement, DOE/EIS-
0165-D. However, the Secretary in his discretion may select 
other sites as proposed by a State where a site has been 
previously studied by the Secretary to meet the full authorized 
volume of the Strategic Petroleum Reserve.

                        Subtitle B--Natural Gas

SEC. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS.

    (a) Scope of Natural Gas Act.--Section 1(b) of the Natural 
Gas Act (15 U.S.C. 717(b)) is amended by inserting ``and to the 
importation or exportation of natural gas in foreign commerce 
and to persons engaged in such importation or exportation,'' 
after ``such transportation or sale,''.
    (b) Definition.--Section 2 of the Natural Gas Act (15 
U.S.C. 717a) is amended by adding at the end the following new 
paragraph:
            ``(11) `LNG terminal' includes all natural gas 
        facilities located onshore or in State waters that are 
        used to receive, unload, load, store, transport, 
        gasify, liquefy, or process natural gas that is 
        imported to the United States from a foreign country, 
        exported to a foreign country from the United States, 
        or transported in interstate commerce by waterborne 
        vessel, but does not include--
                    ``(A) waterborne vessels used to deliver 
                natural gas to or from any such facility; or
                    ``(B) any pipeline or storage facility 
                subject to the jurisdiction of the Commission 
                under section 7.''.
    (c) Authorization for Siting, Construction, Expansion, or 
Operation of LNG Terminals.--(1) The title for section 3 of the 
Natural Gas Act (15 U.S.C. 717b) is amended by inserting ``; 
lng terminals'' after ``exportation or importation of natural 
gas''.
    (2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is 
amended by adding at the end the following:
    ``(d) Except as specifically provided in this Act, nothing 
in this Act affects the rights of States under--
            ``(1) the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1451 et seq.);
            ``(2) the Clean Air Act (42 U.S.C. 7401 et seq.); 
        or
            ``(3) the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.).
    ``(e)(1) The Commission shall have the exclusive authority 
to approve or deny an application for the siting, construction, 
expansion, or operation of an LNG terminal. Except as 
specifically provided in this Act, nothing in this Act is 
intended to affect otherwise applicable law related to any 
Federal agency's authorities or responsibilities related to LNG 
terminals.
    ``(2) Upon the filing of any application to site, 
construct, expand, or operate an LNG terminal, the Commission 
shall--
            ``(A) set the matter for hearing;
            ``(B) give reasonable notice of the hearing to all 
        interested persons, including the State commission of 
        the State in which the LNG terminal is located and, if 
        not the same, the Governor-appointed State agency 
        described in section 3A;
            ``(C) decide the matter in accordance with this 
        subsection; and
            ``(D) issue or deny the appropriate order 
        accordingly.
    ``(3)(A) Except as provided in subparagraph (B), the 
Commission may approve an application described in paragraph 
(2), in whole or part, with such modifications and upon such 
terms and conditions as the Commission find necessary or 
appropriate.
    ``(B) Before January 1, 2015, the Commission shall not--
            ``(i) deny an application solely on the basis that 
        the applicant proposes to use the LNG terminal 
        exclusively or partially for gas that the applicant or 
        an affiliate of the applicant will supply to the 
        facility; or
            ``(ii) condition an order on--
                    ``(I) a requirement that the LNG terminal 
                offer service to customers other than the 
                applicant, or any affiliate of the applicant, 
                securing the order;
                    ``(II) any regulation of the rates, 
                charges, terms, or conditions of service of the 
                LNG terminal; or
                    ``(III) a requirement to file with the 
                Commission schedules or contracts related to 
                the rates, charges, terms, or conditions of 
                service of the LNG terminal.
    ``(C) Subparagraph (B) shall cease to have effect on 
January 1, 2030.
    ``(4) An order issued for an LNG terminal that also offers 
service to customers on an open access basis shallnot result in 
subsidization of expansion capacity by existing customers, degradation 
of service to existing customers, or undue discrimination against 
existing customers as to their terms or conditions of service at the 
facility, as all of those terms are defined by the Commission.
    ``(f)(1) In this subsection, the term `military 
installation'--
            ``(A) means a base, camp, post, range, station, 
        yard, center, or homeport facility for any ship or 
        other activity under the jurisdiction of the Department 
        of Defense, including any leased facility, that is 
        located within a State, the District of Columbia, or 
        any territory of the United States; and
            ``(B) does not include any facility used primarily 
        for civil works, rivers and harbors projects, or flood 
        control projects, as determined by the Secretary of 
        Defense.
    ``(2) The Commission shall enter into a memorandum of 
understanding with the Secretary of Defense for the purpose of 
ensuring that the Commission coordinate and consult with the 
Secretary of Defense on the siting, construction, expansion, or 
operation of liquefied natural gas facilities that may affect 
an active military installation.
    ``(3) The Commission shall obtain the concurrence of the 
Secretary of Defense before authorizing the siting, 
construction, expansion, or operation of liquefied natural gas 
facilities affecting the training or activities of an active 
military installation.''.
    (d) LNG Terminal State and Local Safety Concerns.--After 
section 3 of the Natural Gas Act (15 U.S.C. 717b) insert the 
following:

                ``STATE AND LOCAL SAFETY CONSIDERATIONS

    ``Sec. 3A. (a) The Commission shall promulgate regulations 
on the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq) pre-filing process within 60 days after the date 
of enactment of this section. An applicant shall comply with 
pre-filing process required under the National Environmental 
Policy Act of 1969 prior to filing an application with the 
Commission. The regulations shall require that the pre-filing 
process commence at least 6 months prior to the filing of an 
application for authorization to construct an LNG terminal and 
encourage applicants to cooperate with State and local 
officials.
    ``(b) The Governor of a State in which an LNG terminal is 
proposed to be located shall designate the appropriate State 
agency for the purposes of consulting with the Commission 
regarding an application under section 3. The Commission shall 
consult with such State agency regarding State and local safety 
considerations prior to issuing an order pursuant to section 3. 
For the purposes of this section, State and local safety 
considerations include--
            ``(1) the kind and use of the facility;
            ``(2) the existing and projected population and 
        demographic characteristics of the location;
            ``(3) the existing and proposed land use near the 
        location;
            ``(4) the natural and physical aspects of the 
        location;
            ``(5) the emergency response capabilities near the 
        facility location; and
            ``(6) the need to encourage remote siting.
    ``(c) The State agency may furnish an advisory report on 
State and local safety considerations to the Commission with 
respect to an application no later than 30 days after the 
application was filed with the Commission. Before issuing an 
order authorizing an applicant to site, construct, expand, or 
operate an LNG terminal, the Commission shall review and 
respond specifically to the issues raised by the State agency 
described in subsection (b) in the advisory report. This 
subsection shall apply to any application filed after the date 
of enactment of the Energy Policy Act of 2005. A State agency 
has 30 days after such date of enactment to file an advisory 
report related to any applications pending at the Commission as 
of such date of enactment.
    ``(d) The State commission of the State in which an LNG 
terminal is located may, after the terminal is operational, 
conduct safety inspections in conformance with Federal 
regulations and guidelines with respect to the LNG terminal 
upon written notice to the Commission. The State commission may 
notify the Commission of any alleged safety violations. The 
Commission shall transmit information regarding such 
allegations to the appropriate Federal agency, which shall take 
appropriate action and notify the State commission.
    ``(e)(1) In any order authorizing an LNG terminal the 
Commission shall require the LNG terminal operator to develop 
an Emergency Response Plan. The Emergency Response Plan shall 
be prepared in consultation with the United States Coast Guard 
and State and local agencies and be approved by the Commission 
prior to any final approval to begin construction. The Plan 
shall include a cost-sharing plan.
    ``(2) A cost-sharing plan developed under paragraph (1) 
shall include a description of any direct cost reimbursements 
that the applicant agrees to provide to any State and local 
agencies with responsibility for security and safety--
            ``(A) at the LNG terminal; and
            ``(B) in proximity to vessels that serve the 
        facility.''.

SEC. 312. NEW NATURAL GAS STORAGE FACILITIES.

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

SEC. 313. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.

    (a) In General.--Section 15 of the Natural Gas Act (15 
U.S.C. 717n) is amended--
            (1) by striking the section heading and inserting 
        ``process coordination; hearings; rules of procedure'';
            (2) by redesignating subsections (a) and (b) as 
        subsections (e) and (f), respectively; and
            (3) by striking ``sec. 15.'' and inserting the 
        following:
    ``Sec. 15. (a) In this section, the term `Federal 
authorization'--
            ``(1) means any authorization required under 
        Federal law with respect to an application for 
        authorization under section 3 or a certificate of 
        public convenience and necessity under section 7; and
            ``(2) includes any permits, special use 
        authorizations, certifications, opinions, or other 
        approvals as may be required under Federal law with 
        respect to an application for authorization under 
        section 3 or a certificate of public convenience and 
        necessity under section 7.
    ``(b) Designation as Lead Agency.--
            ``(1) In general.--The Commission shall act as the 
        lead agency for the purposes of coordinating all 
        applicable Federal authorizations and for the purposes 
        of complying with the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).
            ``(2) Other agencies.--Each Federal and State 
        agency considering an aspect of an application for 
        Federal authorization shall cooperate with the 
        Commission and comply with the deadlines established by 
        the Commission.
    ``(c) Schedule.--
            ``(1) Commission authority to set schedule.--The 
        Commission shall establish a schedule for all Federal 
        authorizations. In establishing the schedule, the 
        Commission shall--
                    ``(A) ensure expeditious completion of all 
                such proceedings; and
                    ``(B) comply with applicable schedules 
                established by Federal law.
            ``(2) Failure to meet schedule.--If a Federal or 
        State administrative agency does not complete a 
        proceeding for an approval that is required for a 
        Federal authorization in accordance with the schedule 
        established by the Commission, the applicant may pursue 
        remedies under section 19(d).
    ``(d) Consolidated Record.--The Commission shall, with the 
cooperation of Federal and State administrative agencies and 
officials, maintain a complete consolidated record of all 
decisions made or actions taken by the Commission or by a 
Federal administrative agency or officer (or State 
administrative agency or officer acting under delegated Federal 
authority) with respect to any Federal authorization. Such 
record shall be the record for--
            ``(1) appeals or reviews under the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1451 et seq.), 
        provided that the record may be supplemented as 
        expressly provided pursuant to section 319 of that Act; 
        or
            ``(2) judicial review under section 19(d) of 
        decisions made or actions taken of Federal and State 
        administrative agencies and officials, provided that, 
        if the Court determines that the record does not 
        contain sufficient information, the Court may remand 
        the proceeding to the Commission for further 
        development of the consolidated record.''.
    (b) Judicial Review.--Section 19 of the Natural Gas Act (15 
U.S.C. 717r) is amended by adding at the end the following:
    ``(d) Judicial Review.--
            ``(1) In general.--The United States Court of 
        Appeals for the circuit in which a facility subject to 
        section 3 or section 7 is proposed to be 
constructed,expanded, or operated shall have original and exclusive 
jurisdiction over any civil action for the review of an order or action 
of a Federal agency (other than the Commission) or State administrative 
agency acting pursuant to Federal law to issue, condition, or deny any 
permit, license, concurrence, or approval ( hereinafter collectively 
referred to as `permit') required under Federal law, other than the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).
            ``(2) Agency delay.--The United States Court of 
        Appeals for the District of Columbia shall have 
        original and exclusive jurisdiction over any civil 
        action for the review of an alleged failure to act by a 
        Federal agency (other than the Commission) or State 
        administrative agency acting pursuant to Federal law to 
        issue, condition, or deny any permit required under 
        Federal law, other than the Coastal Zone Management Act 
        of 1972 (16 U.S.C. 1451 et seq.), for a facility 
        subject to section 3 or section 7. The failure of an 
        agency to take action on a permit required under 
        Federal law, other than the Coastal Zone Management Act 
        of 1972, in accordance with the Commission schedule 
        established pursuant to section 15(c) shall be 
        considered inconsistent with Federal law for the 
        purposes of paragraph (3).
            ``(3) Court action.--If the Court finds that such 
        order or action is inconsistent with the Federal law 
        governing such permit and would prevent the 
        construction, expansion, or operation of the facility 
        subject to section 3 or section 7, the Court shall 
        remand the proceeding to the agency to take appropriate 
        action consistent with the order of the Court. If the 
        Court remands the order or action to the Federal or 
        State agency, the Court shall set a reasonable schedule 
        and deadline for the agency to act on remand.
            ``(4) Commission action.--For any action described 
        in this subsection, the Commission shall file with the 
        Court the consolidated record of such order or action 
        to which the appeal hereunder relates.
            ``(5) Expedited review.--The Court shall set any 
        action brought under this subsection for expedited 
        consideration.''.

SEC. 314. PENALTIES.

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

                       ``CIVIL PENALTY AUTHORITY

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

SEC. 315. MARKET MANIPULATION.

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

                  ``PROHIBITION ON MARKET MANIPULATION

    ``Sec. 4A. It shall be unlawful for any entity, directly or 
indirectly, to use or employ, in connection with the purchase 
or sale of natural gas or the purchase or sale of 
transportation services subject to the jurisdiction of the 
Commission, any manipulative or deceptive device or contrivance 
(as those terms are used in section 10(b) of theSecurities 
Exchange Act of 1934 (15 U.S.C. 78j(b))) in contravention of such rules 
and regulations as the Commission may prescribe as necessary in the 
public interest or for the protection of natural gas ratepayers. 
Nothing in this section shall be construed to create a private right of 
action.''.

SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.

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

                ``NATURAL GAS MARKET TRANSPARENCY RULES

    ``Sec. 23. (a)(1) The Commission is directed to facilitate 
price transparency in markets for the sale or transportation of 
physical natural gas in interstate commerce, having due regard 
for the public interest, the integrity of those markets, fair 
competition, and the protection of consumers.
    ``(2) The Commission may prescribe such rules as the 
Commission determines necessary and appropriate to carry out 
the purposes of this section. The rules shall provide for the 
dissemination, on a timely basis, of information about the 
availability and prices of natural gas sold at wholesale and in 
interstate commerce to the Commission, State commissions, 
buyers and sellers of wholesale natural gas, and the public.
    ``(3) The Commission may--
            ``(A) obtain the information described in paragraph 
        (2) from any market participant; and
            ``(B) rely on entities other than the Commission to 
        receive and make public the information, subject to the 
        disclosure rules in subsection (b).
    ``(4) In carrying out this section, the Commission shall 
consider the degree of price transparency provided by existing 
price publishers and providers of trade processing services, 
and shall rely on such publishers and services to the maximum 
extent possible. The Commission may establish an electronic 
information system if it determines that existing price 
publications are not adequately providing price discovery or 
market transparency.
    ``(b)(1) Rules described in subsection (a)(2), if adopted, 
shall exempt from disclosure information the Commission 
determines would, if disclosed, be detrimental to the operation 
of an effective market or jeopardize system security.
    ``(2) In determining the information to be made available 
under this section and the time to make the information 
available, the Commission shall seek to ensure that consumers 
and competitive markets are protected from the adverse effects 
of potential collusion or other anticompetitive behaviors that 
can be facilitated by untimely public disclosure of 
transaction-specific information.
    ``(c)(1) Within 180 days of enactment of this section, the 
Commission shall conclude a memorandum of understanding with 
the Commodity Futures Trading Commission relating to 
information sharing, which shall include, among other things, 
provisions ensuring that information requests to markets within 
the respective jurisdiction of each agency are properly 
coordinated to minimize duplicative information requests, and 
provisions regarding the treatment of proprietary trading 
information.
    ``(2) Nothing in this section may be construed to limit or 
affect the exclusive jurisdiction of the Commodity Futures 
Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 
et seq.).
    ``(d)(1) The Commission shall not condition access to 
interstate pipeline transportation on the reporting 
requirements of this section.
    ``(2) The Commission shall not require natural gas 
producers, processors, or users who have a de minimis market 
presence to comply with the reporting requirements of this 
section.
    ``(e)(1) Except as provided in paragraph (2), no person 
shall be subject to any civil penalty under this section with 
respect to any violation occurring more than 3 years before the 
date on which the person is provided notice of the proposed 
penalty under section 22(b).
    ``(2) Paragraph (1) shall not apply in any case in which 
the Commission finds that a seller that has entered into a 
contract for the transportation or sale of natural gas subject 
to the jurisdiction of the Commission has engaged in fraudulent 
market manipulation activities materially affecting the 
contract in violation of section 4A.''.

SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

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

SEC. 318. PROHIBITION OF TRADING AND SERVING BY CERTAIN INDIVIDUALS.

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

                         Subtitle C--Production

SEC. 321. OUTER CONTINENTAL SHELF PROVISIONS.

    (a) Storage on the Outer Continental Shelf.--Section 
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1334(a)(5)) is amended by inserting ``from any source'' after 
``oil and gas''.
    (b) Natural Gas Defined.--Section 3(13) of the Deepwater 
Port Act of 1974 (33 U.S.C. 1502(13)) is amended by adding at 
the end before the semicolon the following: ``, natural gas 
liquids, liquefied petroleum gas, and condensate recovered from 
natural gas''.

SEC. 322. HYDRAULIC FRACTURING.

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

SEC. 323. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

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

                  Subtitle D--Naval Petroleum Reserve

SEC. 331. TRANSFER OF ADMINISTRATIVE JURISDICTION AND ENVIRONMENTAL 
                    REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2, 
                    KERN COUNTY, CALIFORNIA.

    (a) Administration Jurisdiction Transfer to Secretary of 
the Interior.--Effective on the date of the enactment of this 
Act, administrative jurisdiction and control over all public 
domain lands included within Naval Petroleum Reserve Numbered 2 
located in Kern County, California (other than the lands 
specified in subsection (b)), are transferred from the 
Secretary to the Secretary of the Interior for management, 
subject to subsection (c), in accordance with the laws 
governing management of the public lands, and the regulations 
promulgated under such laws, including the Mineral Leasing Act 
(30 U.S.C. 181 et seq.) and the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1701 et seq.).
    (b) Exclusion of Certain Reserve Lands.--The transfer of 
administrative jurisdiction made by subsection (a) does not 
include the following lands:
            (1) That portion of Naval Petroleum Reserve 
        Numbered 2 authorized for disposal under section 
        3403(a) of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-
        261; 10 U.S.C. 7420 note).
            (2) That portion of the surface estate of Naval 
        Petroleum Reserve Numbered 2 conveyed to the City of 
        Taft, California, by section 333.
    (c) Purpose of Transfer.--
            (1) Production of hydrocarbon resources.--
        Notwithstanding any other provision of law, the 
        principal purpose of the lands subject to transfer 
        under subsection (a) is the production of hydrocarbon 
        resources, and the Secretary of the Interior shall 
        manage the lands in a fashion consistent with this 
        purpose. In managing the lands, the Secretary of the 
        Interior shall regulate operations to prevent 
        unnecessary degradation and to provide for ultimate 
        economic recovery of the resources.
            (2) Disposal authority and surface use.--The 
        Secretary of the Interior may make disposals of lands 
        subject to transfer under subsection (a), or allow 
        commercial or non-profit surface use of such lands, not 
        to exceed 10 acres each, so long as the disposals or 
        surface uses do not materially interfere with the 
        ultimate economic recovery of the hydrocarbon resources 
        of such lands. All revenues received from the disposal 
        of lands under this paragraph or from allowing the 
        surface use of such lands shall be deposited in the 
        Naval Petroleum Reserve Numbered 2 Lease Revenue 
        Account established by section 332.
    (d) Conforming Amendment.--Section 3403 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105-261; 10 U.S.C 7420 note) is amended by 
striking subsection (b).

SEC. 332. NAVAL PETROLEUM RESERVE NUMBERED 2 LEASE REVENUE ACCOUNT.

    (a) Establishment.--There is established in the Treasury a 
special deposit account to be known as the ``Naval Petroleum 
Reserve Numbered 2 Lease Revenue Account'' (in this section 
referred to as the ``lease revenue account''). The lease 
revenue account is a revolving account, and amounts in the 
lease revenue account shall be available to the Secretary of 
the Interior, without further appropriation, for the purposes 
specified in subsection (b).
    (b) Purposes of Account.--
            (1) Environmental-related costs.--The lease revenue 
        account shall be the sole and exclusive source of funds 
        to pay for any and all costs and expenses incurred by 
        the United States for--
                    (A) environmental investigations (other 
                than any environmental investigations that were 
                conducted by the Secretary before the transfer 
                of the Naval Petroleum Reserve Numbered 2 lands 
                under section 331), remediation, compliance 
                actions, response, waste management, 
                impediments, fines or penalties, or any other 
                costs or expenses of any kind arising from, or 
                relating to, conditions existing on or below 
                the Naval Petroleum Reserve Numbered 2 lands, 
                or activities occurring or having occurred on 
                such lands, on or before the date of the 
                transfer of such lands; and
                    (B) any future remediation necessitated as 
                a result of pre-transfer and leasing activities 
                on such lands.
            (2) Transition costs.--The lease revenue account 
        shall also be available for use by the Secretary of the 
        Interior to pay for transition costs incurred by the 
        Department of the Interior associated with the transfer 
        and leasing of the Naval Petroleum Reserve Numbered 2 
        lands.
    (c) Funding.--The lease revenue account shall consist of 
the following:
            (1) Notwithstanding any other provision of law, for 
        a period of three years after the date of the transfer 
        of the Naval Petroleum Reserve Numbered 2 lands under 
        section 331, the sum of $500,000 per year of revenue 
        from leases entered into before that date, including 
        bonuses, rents, royalties, and interest charges 
        collected pursuant to the Federal Oil and Gas Royalty 
        Management Act of 1982 (30 U.S.C. 1701 et. seq.), 
        derived from the Naval Petroleum Reserve Numbered 2 
        lands, shall be deposited into the lease revenue 
        account.
            (2) Subject to subsection (d), all revenues derived 
        from leases on Naval Petroleum Reserve Numbered 2 lands 
        issued on or after the date of the transfer of such 
        lands, including bonuses, rents, royalties, and 
        interest charges collected pursuant to the Federal Oil 
        and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 
        et seq.), shall be deposited into the lease revenue 
        account.
    (d) Limitation.--Funds in the lease revenue account shall 
not exceed $3,000,000 at any one time. Whenever funds in the 
lease revenue account are obligated or expended so that the 
balance in the account falls below that amount, lease revenues 
referred to in subsection(c)(2) shall be deposited in the 
account to maintain a balance of $3,000,000.
    (e) Termination of Account.--At such time as the Secretary 
of the Interior certifies that remediation of all environmental 
contamination of Naval Petroleum Reserve Numbered 2 lands in 
existence as of the date of the transfer of such lands under 
section 331 has been successfully completed, that all costs and 
expenses of investigation, remediation, compliance actions, 
response, waste management, impediments, fines, or penalties 
associated with environmental contamination of such lands in 
existence as of the date of the transfer have been paid in 
full, and that the transition costs of the Department of the 
Interior referred to in subsection (b)(2) have been paid in 
full, the lease revenue account shall be terminated and any 
remaining funds shall be distributed in accordance with 
subsection (f).
    (f) Distribution of Remaining Funds.--Section 35 of the 
Mineral Leasing Act (30 U.S.C. 191) shall apply to the payment 
and distribution of all funds remaining in the lease revenue 
account upon its termination under subsection (e).

SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM RESERVE NUMBERED 
                    2, TO CITY OF TAFT, CALIFORNIA.

    (a) Conveyance.--Effective on the date of the enactment of 
this Act, there is conveyed to the City of Taft, California (in 
this section referred to as the ``City''), all surface right, 
title, and interest of the United States in and to a parcel of 
real property consisting of approximately 220 acres located in 
the NE\1/4\, the NE\1/4\ of the NW\1/4\, and the N\1/2\ of the 
SE\1/4\ of the NW\1/4\ of section 18, township 32 south, range 
24 east, Mount Diablo meridian, Kern County, California.
    (b) Consideration.--The conveyance under subsection (a) is 
made without the payment of consideration by the City.
    (c) Treatment of Existing Rights.--The conveyance under 
subsection (a) is subject to valid existing rights, including 
Federal oil and gas lease SAC--019577.
    (d) Treatment of Minerals.--All coal, oil, gas, and other 
minerals within the lands conveyed under subsection (a) are 
reserved to the United States, except that the United States 
and its lessees, licensees, permittees, or assignees shall have 
no right of surface use or occupancy of the lands. Nothing in 
this subsection shall be construed to require the United States 
or its lessees, licensees, permittees, or assignees to support 
the surface of the conveyed lands.
    (e) Indemnify and Hold Harmless.--The City shall indemnify, 
defend, and hold harmless the United States for, from, and 
against, and the City shall assume all responsibility for, any 
and all liability of any kind or nature, including all loss, 
cost, expense, or damage, arising from the City's use or 
occupancy of, or operations on, the land conveyed under 
subsection (a), whether such use or occupancy of, or operations 
on, occurred before or occur after the date of the enactment of 
this Act.
    (f) Instrument of Conveyance.--Not later than one year 
after the date of the enactment of this Act, the Secretary 
shall execute, file, and cause to be recorded in the 
appropriate office a deed or other appropriate instrument 
documenting the conveyance made by this section.

SEC. 334. REVOCATION OF LAND WITHDRAWAL.

    Effective on the date of the enactment of this Act, the 
Executive Order of December 13, 1912, which created Naval 
Petroleum Reserve Numbered 2, is revoked in its entirety.

                   Subtitle E--Production Incentives

SEC. 341. DEFINITION OF SECRETARY.

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

SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

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

SEC. 343. MARGINAL PROPERTY PRODUCTION INCENTIVES.

    (a) Definition of Marginal Property.--Until such time as 
the Secretary issues regulations under subsection (e) that 
prescribe a different definition, in this section, the term 
``marginal property'' means an onshore unit, communitization 
agreement, or lease not within a unit or communitization 
agreement, that produces on average the combined equivalent of 
less than 15 barrels of oil per well per day or 90,000,000 
British thermal units of gas per well per day calculated based 
on the average over the 3 most recent production months, 
including only wells that produce on more than half of the days 
during those 3 production months.
    (b) Conditions for Reduction of Royalty Rate.--Until such 
time as the Secretary issues regulations under subsection (e) 
that prescribe different standards or requirements, the 
Secretary shall reduce the royalty rate on--
            (1) oil production from marginal properties as 
        prescribed in subsection (c) if the spot price of West 
        Texas Intermediate crude oil at Cushing, Oklahoma, is, 
        on average, less than $15 per barrel (adjusted in 
        accordance with the Consumer Price Index for all-urban 
        consumers, United States city average, as published by 
        the Bureau of Labor Statistics) for 90 consecutive 
        trading days; and
            (2) gas production from marginal properties as 
        prescribed in subsection (c) if the spot price of 
        natural gas delivered at Henry Hub, Louisiana, is, on 
        average, less than $2.00 per million British thermal 
        units (adjusted in accordance with the Consumer Price 
        Index for all-urban consumers, United States city 
        average, as published by the Bureau of Labor 
        Statistics) for 90 consecutive trading days.
    (c) Reduced Royalty Rate.--
            (1) In general.--When a marginal property meets the 
        conditions specified in subsection (b), the royalty 
        rate shall be the lesser of--
                    (A) 5 percent; or
                    (B) the applicable rate under any other 
                statutory or regulatory royalty relief 
                provision that applies to the affected 
                production.
            (2) Period of effectiveness.--The reduced royalty 
        rate under this subsection shall be effective beginning 
        on the first day of the production month following the 
        date on which the applicable condition specified in 
        subsection (b) is met.
    (d) Termination of Reduced Royalty Rate.--A royalty rate 
prescribed in subsection (c)(1) shall terminate--
            (1) with respect to oil production from a marginal 
        property, on the first day of the production month 
        following the date on which--
                    (A) the spot price of West Texas 
                Intermediate crude oil at Cushing, Oklahoma, on 
                average, exceeds $15 per barrel (adjusted in 
                accordance with the Consumer Price Index for 
                all-urban consumers, United States city 
                average, as published by the Bureau of Labor 
                Statistics) for 90 consecutive trading days; or
                    (B) the property no longer qualifies as a 
                marginal property; and
            (2) with respect to gas production from a marginal 
        property, on the first day of the production month 
        following the date on which--
                    (A) the spot price of natural gas delivered 
                at Henry Hub, Louisiana, on average, exceeds 
                $2.00 per million British thermal units 
                (adjusted in accordance with the Consumer Price 
                Index for all-urban consumers, United States 
                city average, as published by the Bureau of 
                Labor Statistics) for 90 consecutive trading 
                days; or
                    (B) the property no longer qualifies as a 
                marginal property.
    (e) Regulations Prescribing Different Relief.--
            (1) Discretionary regulations.--The Secretary may 
        by regulation prescribe different parameters, 
        standards, and requirements for, and a different degree 
        or extent of, royalty relief for marginal properties in 
        lieu of those prescribed in subsections (a) through 
        (d).
            (2) Mandatory regulations.--Unless a determination 
        is made under paragraph (3), not later than 18 months 
        after the date of enactment of this Act, the Secretary 
        shall by regulation--
                    (A) prescribe standards and requirements 
                for, and the extent of royalty relief for, 
                marginal properties for oil and gas leases on 
                the outer Continental Shelf; and
                    (B) define what constitutes a marginal 
                property on the outer Continental Shelf for 
                purposes of this section.
            (3) Report.--To the extent the Secretary determines 
        that it is not practicable to issue the regulations 
        referred to in paragraph (2), the Secretary shall 
        provide a report to Congress explaining such 
        determination by not later than 18 months after the 
        date of enactment of this Act.
            (4) Considerations.--In issuing regulations under 
        this subsection, the Secretary may consider--
                    (A) oil and gas prices and market trends;
                    (B) production costs;
                    (C) abandonment costs;
                    (D) Federal and State tax provisions and 
                the effects of those provisions on production 
                economics;
                    (E) other royalty relief programs;
                    (F) regional differences in average 
                wellhead prices;
                    (G) national energy security issues; and
                    (H) other relevant matters, as determined 
                by the Secretary.
    (f) Savings Provision.--Nothing in this section prevents a 
lessee from receiving royalty relief or a royalty reduction 
pursuant to any other law (including a regulation) that 
provides more relief than the amounts provided by this section.

SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
                    SHALLOW WATERS OF THE GULF OF MEXICO.

    (a) Royalty Incentive Regulations for Ultra Deep Gas 
Wells.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, in addition to any other 
        regulations that may provide royalty incentives for 
        natural gas produced from deep wells on oil and gas 
        leases issued pursuant to the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall 
        issue regulations granting royalty relief suspension 
        volumes of not less than 35 billion cubic feet with 
        respect to the production of natural gas from ultra 
        deep wells on leases issued in shallow waters less than 
        400 meters deep located in the Gulf of Mexico wholly 
        west of 87 degrees, 30 minutes west longitude. 
        Regulations issued under this subsection shall be 
        retroactive to the date that the notice of proposed 
        rulemaking is published in the Federal Register.
            (2) Suspension volumes.--The Secretary may grant 
        suspension volumes of not less than 35 billion cubic 
        feet in any case in which--
                    (A) the ultra deep well is a sidetrack; or
                    (B) the lease has previously produced from 
                wells with a perforated interval the top of 
                which is at least 15,000 feet true vertical 
                depth below the datum at mean sea level.
            (3) Definitions.--In this subsection:
                    (A) Ultra deep well.--The term ``ultra deep 
                well'' means a well drilled with a perforated 
                interval, the top of which is at least 20,000 
                true vertical depth below the datum at mean sea 
                level.
                    (B) Sidetrack.--
                            (i) In general.--The term 
                        ``sidetrack'' means a well resulting 
                        from drilling an additional hole to a 
                        new objective bottom-hole location by 
                        leaving a previously drilled hole.
                            (ii) Inclusion.--The term 
                        ``sidetrack'' includes-
                                    (I) drilling a well from a 
                                platform slot reclaimed from a 
                                previously drilled well;
                                    (II) re-entering and 
                                deepening a previously drilled 
                                well; and
                                    (III) a bypass from a 
                                sidetrack, including drilling 
                                around material blocking a hole 
                                or drilling to straighten a 
                                crooked hole.
    (b) Royalty Incentive Regulations for Deep Gas Wells.--Not 
later than 180 days after the date of enactment of this Act, in 
addition to any other regulations that may provide royalty 
incentives for natural gas produced from deep wells on oil and 
gas leases issued pursuant to the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331 et seq.), the Secretary shall issue 
regulations granting royalty relief suspension volumes with 
respect to production of natural gas from deep wells on leases 
issued in waters more than 200 meters but less than 400 meters 
deep located in the Gulf of Mexico wholly west of 87 degrees, 
30 minutes west longitude. The suspension volumes for deep 
wells within 200 to 400 meters of water depth shall be 
calculated using the same methodology used to calculate the 
suspension volumes for deep wells in the shallower waters of 
the Gulf of Mexico, and in no case shall the suspension volumes 
for deep wells within 200 to 400 meters of water depth be lower 
than those for deep wells in shallower waters. Regulations 
issued under this subsection shall be retroactive to the date 
that the notice of proposed rulemaking is published in the 
Federal Register.
    (c) Limitations.--The Secretary may place limitations on 
the royalty relief granted under this section based on market 
price. The royalty relief granted under this section shall not 
apply to a lease for which deep water royalty relief is 
available.

SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--Subject to subsections (b) and (c), for 
each tract located in water depths of greater than 400 meters 
in the Western and Central Planning Area of the Gulf of Mexico 
(including the portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude), any oil or gas lease sale 
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) occurring during the 5-year period beginning on the date 
of enactment of this Act shall use the bidding system 
authorized under section 8(a)(1)(H) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
    (b) Suspension of Royalties.--The suspension of royalties 
under subsection (a) shall be established at a volume of not 
less than--
            (1) 5,000,000 barrels of oil equivalent for each 
        lease in water depths of 400 to 800 meters;
            (2) 9,000,000 barrels of oil equivalent for each 
        lease in water depths of 800 to 1,600 meters;
            (3) 12,000,000 barrels of oil equivalent for each 
        lease in water depths of 1,600 to 2,000 meters; and
            (4) 16,000,000 barrels of oil equivalent for each 
        lease in water depths greater than 2,000 meters.
    (c) Limitation.--The Secretary may place limitations on 
royalty relief granted under this section based on market 
price.

SEC. 346. ALASKA OFFSHORE ROYALTY SUSPENSION.

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

SEC. 347. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM RESERVE IN 
                    ALASKA.

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

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

    ``(a) In General.--The Secretary shall conduct an 
expeditious program of competitive leasing of oil and gas in 
the Reserve in accordance with this Act.
    ``(b) Mitigation of Adverse Effects.--Activities'';
            (2) by striking ``Alaska (the Reserve); (2) the'' 
        and inserting ``Alaska.
    ``(c) Land Use Planning; BLM Wilderness Study.--The'';
            (3) by striking ``Reserve; (3) the'' and inserting 
        ``Reserve.
    ``(d) First Lease Sale.--The;'';
            (4) by striking ``4332); (4) the'' and inserting 
        ``4321 et seq.).
    ``(e) Withdrawals.--The'';
            (5) by striking ``herein; (5) bidding'' and 
        inserting ``under this section.
    ``(f) Bidding Systems.--Bidding'';
            (6) by striking ``629); (6) lease'' and inserting 
        ``629).
    ``(g) Geological Structures.--Lease'';
            (7) by striking ``structures; (7) the'' and 
        inserting ``structures.
    ``(h) Size of Lease Tracts.--The'';
            (8) by striking ``Secretary; (8)'' and all that 
        follows through ``Drilling, production,'' and inserting 
        ``Secretary.
    ``(i) Terms.--
            ``(1) In general.--Each lease shall be issued for 
        an initial period of not more than 10 years, and shall 
        be extended for so long thereafter as oil or gas is 
        produced from the lease in paying quantities, oil or 
        gas is capable of being produced in paying quantities, 
        or drilling or reworking operations, as approved by the 
        Secretary, are conducted on the leased land.
            ``(2) Renewal of leases with discoveries.--At the 
        end of the primary term of a lease the Secretary shall 
        renew for an additional 10-year term a lease that does 
        not meet the requirements of paragraph (1) if the 
        lessee submits to the Secretary an application for 
        renewal not later than 60 days before the expiration of 
        the primary lease and the lessee certifies, and the 
        Secretary agrees, that hydrocarbon resources were 
        discovered on one or morewells drilled on the leased 
land in such quantities that a prudent operator would hold the lease 
for potential future development.
            ``(3) Renewal of leases without discoveries.--At 
        the end of the primary term of a lease the Secretary 
        shall renew for an additional 10-year term a lease that 
        does not meet the requirements of paragraph (1) if the 
        lessee submits to the Secretary an application for 
        renewal not later than 60 days before the expiration of 
        the primary lease and pays the Secretary a renewal fee 
        of $100 per acre of leased land, and--
                    ``(A) the lessee provides evidence, and the 
                Secretary agrees that, the lessee has 
                diligently pursued exploration that warrants 
                continuation with the intent of continued 
                exploration or future potential development of 
                the leased land; or
                    ``(B) all or part of the lease--
                            ``(i) is part of a unit agreement 
                        covering a lease described in 
                        subparagraph (A); and
                            ``(ii) has not been previously 
                        contracted out of the unit.
            ``(4) Applicability.--This subsection applies to a 
        lease that is in effect on or after the date of 
        enactment of the Energy Policy Act of 2005.
            ``(5) Expiration for failure to produce.--
        Notwithstanding any other provision of this Act, if no 
        oil or gas is produced from a lease within 30 years 
        after the date of the issuance of the lease the lease 
        shall expire.
            ``(6) Termination.--No lease issued under this 
        section covering lands capable of producing oil or gas 
        in paying quantities shall expire because the lessee 
        fails to produce the same due to circumstances beyond 
        the control of the lessee.
    ``(j) Unit Agreements.--
            ``(1) In general.--For the purpose of conservation 
        of the natural resources of all or part of any oil or 
        gas pool, field, reservoir, or like area, lessees 
        (including representatives) of the pool, field, 
        reservoir, or like area may unite with each other, or 
        jointly or separately with others, in collectively 
        adopting and operating under a unit agreement for all 
        or part of the pool, field, reservoir, or like area 
        (whether or not any other part of the oil or gas pool, 
        field, reservoir, or like area is already subject to 
        any cooperative or unit plan of development or 
        operation), if the Secretary determines the action to 
        be necessary or advisable in the public interest. In 
        determining the public interest, the Secretary should 
        consider, among other things, the extent to which the 
        unit agreement will minimize the impact to surface 
        resources of the leases and will facilitate 
        consolidation of facilities.
            ``(2) Consultation.--In making a determination 
        under paragraph (1), the Secretary shall consult with 
        and provide opportunities for participation by the 
        State of Alaska or a Regional Corporation (as defined 
        in section 3 of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1602)) with respect to the creation or 
        expansion of units that include acreage in which the 
        State of Alaska or the Regional Corporation has an 
        interest in the mineral estate.
            ``(3) Production allocation methodology.--(A) The 
        Secretary may use a production allocation methodology 
        for each participating area within a unit that includes 
        solely Federal land in the Reserve.
            ``(B) The Secretary shall use a production 
        allocation methodology for each participating area 
        within a unit that includes Federal land in the Reserve 
        and non-Federal land based on the characteristics of 
        each specific oil or gas pool, field, reservoir, or 
        like area to take into account reservoir heterogeneity 
        and area variation in reservoir producibility across 
        diverse leasehold interests. The implementation of the 
        foregoing production allocation methodology shall be 
        controlled by agreement among the affected lessors and 
        lessees.
            ``(4) Benefit of operations.--Drilling, 
        production,'';
            (9) by striking ``When separate'' and inserting the 
        following:
            ``(5) Pooling.--If separate'';
            (10) by inserting ``(in consultation with the 
        owners of the other land)'' after ``determined by the 
        Secretary of the Interior'';
            (11) by striking ``thereto; (10) to'' and all that 
        follows through ``the terms provided therein'' and 
        inserting ``to the agreement.
    ``(k) Exploration Incentives.--
            ``(1) In general.--
                    ``(A) Waiver, suspension, or reduction.--To 
                encourage the greatest ultimate recovery of oil 
                or gas or in the interest of conservation, the 
                Secretary may waive, suspend, or reduce the 
                rental fees or minimum royalty, or reduce the 
                royalty on an entire leasehold (including on 
                any lease operated pursuant to a unit 
                agreement), whenever (after consultationwith 
the State of Alaska and the North Slope Borough of Alaska and the 
concurrence of any Regional Corporation for leases that include land 
that was made available for acquisition by the Regional Corporation 
under the provisions of section 1431(o) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3101 et seq.)) in the judgment of the 
Secretary it is necessary to do so to promote development, or whenever 
in the judgment of the Secretary the leases cannot be successfully 
operated under the terms provided therein.
                    ``(B) Applicability.--This paragraph 
                applies to a lease that is in effect on or 
                after the date of enactment of the Energy 
                Policy Act of 2005.'';
            (12) by striking ``The Secretary is authorized to'' 
        and inserting the following:
            ``(2) Suspension of operations and production.--The 
        Secretary may'';
            (13) by striking ``In the event'' and inserting the 
        following:
            ``(3) Suspension of payments.--If'';
            (14) by striking ``thereto; and (11) all'' and 
        inserting ``to the lease.
    ``(l) Receipts.--All'';
            (15) by redesignating subparagraphs (A), (B), and 
        (C) as paragraphs (1), (2), and (3), respectively;
            (16) by striking ``Any agency'' and inserting the 
        following:
    ``(m) Explorations.--Any agency'';
            (17) by striking ``Any action'' and inserting the 
        following:
    ``(n) Environmental Impact Statements.--
            ``(1) Judicial review.--Any action'';
            (18) by striking ``The detailed'' and inserting the 
        following:
            ``(2) Initial lease sales.--The detailed'';
            (19) by striking ``section 104(b) of the Naval 
        Petroleum Reserves Production Act of 1976 (90 Stat. 
        304; 42 U.S.C. 6504)'' and inserting ``section 
        104(a)''; and
            (20) by adding at the end the following:
    ``(o) Regulations.--As soon as practicable after the date 
of enactment of the Energy Policy Act of 2005, the Secretary 
shall issue regulations to implement this section.
    ``(p) Waiver of Administration for Conveyed Lands.--
            ``(1) In general.--Notwithstanding section 14(g) of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 
        1613(g))--
                    ``(A) the Secretary of the Interior shall 
                waive administration of any oil and gas lease 
                to the extent that the lease covers any land in 
                the Reserve in which all of the subsurface 
                estate is conveyed to the Arctic Slope Regional 
                Corporation (referred to in this subsection as 
                the `Corporation');
                    ``(B)(i) in a case in which a conveyance of 
                a subsurface estate described in subparagraph 
                (A) does not include all of the land covered by 
                the oil and gas lease, the person that owns the 
                subsurface estate in any particular portion of 
                the land covered by the lease shall be entitled 
                to all of the revenues reserved under the lease 
                as to that portion, including, without 
                limitation, all the royalty payable with 
                respect to oil or gas produced from or 
                allocated to that portion;
                    ``(ii) in a case described in clause (i), 
                the Secretary of the Interior shall--
                            ``(I) segregate the lease into 2 
                        leases, 1 of which shall cover only the 
                        subsurface estate conveyed to the 
                        Corporation; and
                            ``(II) waive administration of the 
                        lease that covers the subsurface estate 
                        conveyed to the Corporation; and
                    ``(iii) the segregation of the lease 
                described in clause (ii)(I) has no effect on 
                the obligations of the lessee under either of 
                the resulting leases, including obligations 
                relating to operations, production, or 
othercircumstances (other than payment of rentals or royalties); and
                    ``(C) nothing in this subsection limits the 
                authority of the Secretary of the Interior to 
                manage the federally-owned surface estate 
                within the Reserve.''.
    (c) Conforming Amendments.--Section 104 of the Naval 
Petroleum Reserves Production Act of 1976 (42 U.S.C. 6504) is 
amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (d) as 
        subsections (a) through (c), respectively.

SEC. 348. NORTH SLOPE SCIENCE INITIATIVE.

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

SEC. 349. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.

    (a) In General.--The Secretary, in cooperation with the 
Secretary of Agriculture, shall establish a program not later 
than 1 year after the date of enactment of this Act to 
remediate, reclaim, and close orphaned, abandoned, or idled oil 
and gas wells located on land administered by the land 
management agencies within the Department of the Interior and 
the Department of Agriculture.
    (b) Activities.--The program under subsection (a) shall--
            (1) include a means of ranking orphaned, abandoned, 
        or idled wells sites for priority in remediation, 
        reclamation, and closure, based on public health and 
        safety, potential environmental harm, and other land 
        use priorities;
            (2) provide for identification and recovery of the 
        costs of remediation, reclamation, and closure from 
        persons or other entities currently providing a bond or 
        other financial assurance required under State or 
        Federal law for an oil or gas well that is orphaned, 
        abandoned, or idled; and
            (3) provide for recovery from the persons or 
        entities identified under paragraph (2), or their 
        sureties or guarantors, of the costs of remediation, 
        reclamation, and closure of such wells.
    (c) Cooperation and Consultations.--In carrying out the 
program under subsection (a), the Secretary shall--
            (1) work cooperatively with the Secretary of 
        Agriculture and the States within which Federal land is 
        located; and
            (2) consult with the Secretary of Energy and the 
        Interstate Oil and Gas Compact Commission.
    (d) Plan.--Not later than 1 year after the date of 
enactment of this Act, the Secretary, in cooperation with the 
Secretary of Agriculture, shall submit to Congress a plan for 
carrying out the program under subsection (a).
    (e) Idled Well.--For the purposes of this section, a well 
is idled if--
            (1) the well has been nonoperational for at least 7 
        years; and
            (2) there is no anticipated beneficial use for the 
        well.
    (f) Federal Reimbursement for Orphaned Well Reclamation 
Pilot Program.--
            (1) Reimbursement for remediating, reclaiming, and 
        closing wells on land subject to a new lease.--The 
        Secretary shall carry out a pilot program under which, 
        in issuing a new oil and gas lease on federally owned 
        land on which 1 or more orphaned wells are located, the 
        Secretary--
                    (A) may require, other than as a condition 
                of the lease, that the lessee remediate, 
                reclaim, and close in accordance with standards 
                established by the Secretary, all orphaned 
                wells on the land leased; and
                    (B) shall develop a program to reimburse a 
                lessee, through a royalty credit against the 
                Federal share of royalties owed or other means, 
                for the reasonable actual costs of remediating, 
                reclaiming, and closing the orphaned wells 
                pursuant to that requirement.
            (2) Reimbursement for reclaiming orphaned wells on 
        other land.--In carrying out this subsection, the 
        Secretary--
                    (A) may authorize any lessee under an oil 
                and gas lease on federally owned land to 
                reclaim in accordance with the Secretary's 
                standards--
                            (i) an orphaned well on unleased 
                        federally owned land; or
                            (ii) an orphaned well located on an 
                        existing lease on federally owned land 
                        for the reclamation of which the lessee 
                        is not legally responsible; and
                    (B) shall develop a program to provide 
                reimbursement of 100 percent of the reasonable 
                actual costs of remediating, reclaiming, and 
                closing the orphaned well, through credits 
                against the Federal share of royalties or other 
                means.
            (3) Regulations.--The Secretary may issue such 
        regulations as are appropriate to carry out this 
        subsection.
    (g) Technical Assistance Program for Non-Federal Land.--
            (1) In general.--The Secretary of Energy shall 
        establish a program to provide technical and financial 
        assistance to oil and gas producing States to 
        facilitate State efforts over a 10-year period to 
        ensure a practical and economical remedy for 
        environmental problems caused by orphaned or abandoned 
        oil and gas exploration or production well sites on 
        State or private land.
            (2) Assistance.--The Secretary of Energy shall work 
        with the States, through the Interstate Oil and Gas 
        Compact Commission, to assist the States in quantifying 
        and mitigating environmental risks of onshore orphaned 
        or abandoned oil or gas wells on State and private 
        land.
            (3) Activities.--The program under paragraph (1) 
        shall include--
                    (A) mechanisms to facilitate 
                identification, if feasible, of the persons 
                currently providing a bond or other form of 
                financial assurance required under State or 
                Federal law for an oil or gas well that is 
                orphaned or abandoned;
                    (B) criteria for ranking orphaned or 
                abandoned well sites based on factors such as 
                public health and safety, potential 
                environmental harm, and other land use 
                priorities;
                    (C) information and training programs on 
                best practices for remediation of different 
                types of sites; and
                    (D) funding of State mitigation efforts on 
                a cost-shared basis.
    (h) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to carry out this section $25,000,000 for 
        each of fiscal years 2006 through 2010.
            (2) Use.--Of the amounts authorized under paragraph 
        (1), $5,000,000 are authorized for each fiscal year for 
        activities under subsection (f).

SEC. 350. COMBINED HYDROCARBON LEASING.

    (a) Special Provisions Regarding Leasing.--Section 17(b)(2) 
of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
    ``(B) For any area that contains any combination of tar 
sand and oil or gas (or both), the Secretary may issue under 
this Act, separately--
            ``(i) a lease for exploration for and extraction of 
        tar sand; and
            ``(ii) a lease for exploration for and development 
        of oil and gas.
    ``(C) A lease issued for tar sand shall be issued using the 
same bidding process, annual rental, and posting period as a 
lease issued for oil and gas, except that the minimum 
acceptable bid required for a lease issued for tar sand shall 
be $2 per acre.
    ``(D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a permit 
authorizing prospecting for tar sand must exercise due 
diligence, to promote any resource covered by a combined 
hydrocarbon lease.''.
    (b) Conforming Amendment.--Section 17(b)(1)(B) of the 
Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the 
second sentence by inserting ``, subject to paragraph (2)(B),'' 
after ``Secretary''.
    (c) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary shall issue final 
regulations to implement this section.

SEC. 351. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

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

SEC. 352. OIL AND GAS LEASE ACREAGE LIMITATIONS.

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

SEC. 353. GAS HYDRATE PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote 
natural gas production from the natural gas hydrate resources 
on the outer Continental Shelf and Federal lands in Alaska by 
providing royalty incentives.
    (b) Suspension of Royalties.--
            (1) In general.--The Secretary may grant royalty 
        relief in accordance with this section for natural gas 
        produced from gas hydrate resources under an eligible 
        lease.
            (2) Eligible leases.--A lease shall be an eligible 
        lease for purposes of this section if--
                    (A) it is issued under the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1331 et 
                seq.), or is an oil and gas lease issued for 
                onshore Federal lands in Alaska;
                    (B) it is issued prior to January 1, 2016; 
                and
                    (C) production under the lease of natural 
                gas from gas hydrate resources commences prior 
                to January 1, 2018.
            (3) Amount of relief.--The Secretary shall conduct 
        a rulemaking and grant royalty relief under this 
        section as a suspension volume if the Secretary 
        determines that such royalty relief would encourage 
        production of natural gas from gas hydrate resources 
        from an eligible lease. The maximum suspension volume 
        shall be 30 billion cubic feet of natural gas per 
        lease. Such relief shall be in addition to any other 
        royalty relief under any other provision applicable to 
        the lease that does not specifically grant a gas 
        hydrate production incentive. Such royalty suspension 
        volume shall be applied to any eligible production 
        occurring on or after the date of publication of the 
        advanced notice of proposed rulemaking.
            (4) Limitation.--The Secretary may place 
        limitations on royalty relief granted under this 
        section based on market price.
    (c) Application.--This section shall apply to any eligible 
lease issued before, on, or after the date of enactment of this 
Act.
    (d) Rulemakings.--
            (1) Requirement.--The Secretary shall publish the 
        advanced notice of proposed rulemaking within 180 days 
        after the date of enactment of this Act and complete 
        the rulemaking implementing this section within 365 
        days after the date of enactment of this Act.
            (2) Gas hydrate resources defined.--Such 
        regulations shall define the term ``gas hydrate 
        resources'' to include both the natural gas content of 
        gas hydrates within the hydrate stability zone and free 
        natural gas trapped by and beneath the hydrate 
        stability zone.
    (e) Review.--Not later than 365 days after the date of 
enactment of this Act, the Secretary, in consultation with the 
Secretary of Energy, shall carry out a review of, and submit to 
Congress a report on, further opportunities to enhance 
production of natural gas from gas hydrate resources on the 
outer Continental Shelf and on Federal lands in Alaska through 
the provision of other production incentives or through 
technical or financial assistance.

SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH CARBON 
                    DIOXIDE INJECTION.

    (a) Production Incentive.--
            (1) Findings.--Congress finds the following:
                    (A) Approximately two-thirds of the 
                original oil in place in the United States 
                remains unproduced.
                    (B) Enhanced oil and natural gas production 
                from the sequestering of carbon dioxide and 
                other appropriate gases has the potential to 
                increase oil and natural gas production.
                    (C) Capturing and productively using carbon 
                dioxide would help reduce the carbon intensity 
                of the economy.
            (2) Purpose.--The purpose of this section is--
                    (A) to promote the capturing, 
                transportation, and injection of produced 
                carbon dioxide, natural carbon dioxide, and 
                other appropriate gases or other matter for 
                sequestration into oil and gas fields; and
                    (B) to promote oil and natural gas 
                production from the outer Continental Shelf and 
                onshore Federal lands under lease by providing 
                royalty incentives to use enhanced recovery 
                techniques using injection of the substances 
                referred to in subparagraph (A).
    (b) Suspension of Royalties.--
            (1) In general.--If the Secretary determines that 
        reduction of the royalty under a Federal oil and gas 
        lease that is an eligible lease is in the public 
        interest and promotes the purposes of this section, the 
        Secretary shall undertake a rulemaking to provide for 
        such reduction for an eligible lease.
            (2) Rulemakings.--The Secretary shall publish the 
        advanced notice of proposed rulemaking within 180 days 
        after the date of enactment of this Act and complete 
        the rulemaking implementing this section within 365 
        days after the date of enactment of this Act.
            (3) Eligible leases.--A lease shall be an eligible 
        lease for purposes of this section if--
                    (A) it is a lease for production of oil and 
                gas from the outer Continental Shelf or Federal 
                onshore lands;
                    (B) the injection of the substances 
                referred to in subsection (a)(2)(A) will be 
                used as an enhanced recovery technique on such 
                lease; and
                    (C) the Secretary determines that the lease 
                contains oil or gas that would not likely be 
                produced without the royalty reduction provided 
                under this section.
            (4) Amount of relief.--The rulemaking shall provide 
        for a suspension volume, which shall not exceed 
        5,000,000 barrels of oil equivalent for each eligible 
        lease. Such suspension volume shall be applied to any 
        production from an eligible lease occurring on or after 
        the date of publication of any advanced notice of 
        proposed rulemaking under this subsection.
            (5) Limitation.--The Secretary may place 
        limitations on the royalty reduction granted under this 
        section based on market price.
            (6) Application.--This section shall apply to any 
        eligible lease issued before, on, or after the date of 
        enactment of this Act.
    (c) Demonstration Program.--
            (1) Establishment.--
                    (A) In general.--The Secretary of Energy 
                shall establish a competitive grant program to 
                provide grants to producers of oil and gas to 
                carry out projects to inject carbon dioxide for 
                the purpose of enhancing recovery of oil or 
                natural gas while increasing the sequestration 
                of carbon dioxide.
                    (B) Projects.--The demonstration program 
                shall provide for--
                            (i) not more than 10 projects in 
                        the Willistin Basin in North Dakota and 
                        Montana; and
                            (ii) 1 project in the Cook Inlet 
                        Basin in Alaska.
            (2) Requirements.--
                    (A) In general.--The Secretary of Energy 
                shall issue requirements relating to 
                applications for grants under paragraph (1).
                    (B) Rulemaking.--The issuance of 
                requirements under subparagraph (A) shall not 
                require a rulemaking.
                    (C) Minimum requirements.--At a minimum, 
                the Secretary shall require under subparagraph 
                (A) that an application for a grant include--
                            (i) a description of the project 
                        proposed in the application;
                            (ii) an estimate of the production 
                        increase and the duration of the 
                        production increase from the project, 
                        as compared to conventional recovery 
                        techniques, including water flooding;
                            (iii) an estimate of the carbon 
                        dioxide sequestered by project, over 
                        the life of the project;
                            (iv) a plan to collect and 
                        disseminate data relating to each 
                        project to be funded by the grant;
                            (v) a description of the means by 
                        which the project will be sustainable 
                        without Federal assistance after the 
                        completion of the term of the grant;
                            (vi) a complete description of the 
                        costs of the project, including 
                        acquisition, construction, operation, 
                        and maintenance costs over the expected 
                        life of the project;
                            (vii) a description of which costs 
                        of the project will be supported by 
                        Federal assistance under this section; 
                        and
                            (viii) a description of any 
                        secondary or tertiary recovery efforts 
                        in the field and the efficacy of water 
                        flood recovery techniques used.
            (3) Partners.--An applicant for a grant under 
        paragraph (1) may carry out a project under a pilot 
        program in partnership with 1 or more other public or 
        private entities.
            (4) Selection criteria.--In evaluating applications 
        under this subsection, the Secretary of Energy shall--
                    (A) consider the previous experience with 
                similar projects of each applicant; and
                    (B) give priority consideration to 
                applications that--
                            (i) are most likely to maximize 
                        production of oil and gas in a cost-
                        effective manner;
                            (ii) sequester significant 
                        quantities of carbon dioxide from 
                        anthropogenic sources;
                            (iii) demonstrate the greatest 
                        commitment on the part of the applicant 
                        to ensure funding for the proposed 
                        project and the greatest likelihood 
                        that the project will be maintained or 
                        expanded after Federal assistance under 
                        this section is completed; and
                            (iv) minimize any adverse 
                        environmental effects from the project.
            (5) Demonstration program requirements.--
                    (A) Maximum amount.--The Secretary of 
                Energy shall not provide more than $3,000,000 
                in Federal assistance under this subsection to 
                any applicant.
                    (B) Cost sharing.--The Secretary of Energy 
                shall require cost-sharing under this 
                subsection in accordance with section 988.
                    (C) Period of grants.--
                            (i) In general.--A project funded 
                        by a grant under this subsection shall 
                        begin construction not later than 2 
                        years after the date of provision of 
                        the grant, but in any case not later 
                        than December 31, 2010.
                            (ii) Term.--The Secretary shall not 
                        provide grant funds to any applicant 
                        under this subsection for a period of 
                        more than 5 years.
            (6) Transfer of information and knowledge.--The 
        Secretary of Energy shall establish mechanisms to 
        ensure that the information and knowledge gained by 
        participants in the program under this subsection are 
        transferred among other participants and interested 
        persons, including other applicants that submitted 
        applications for a grant under this subsection.
            (7) Schedule.--
                    (A) Publication.--Not later than 180 days 
                after the date of enactment of this Act, the 
                Secretary of Energy shall publish in the 
                Federal Register, and elsewhere, as 
                appropriate, a request for applications to 
                carry out projects under this subsection.
                    (B) Date for applications.--An application 
                for a grant under this subsection shall be 
                submitted not later than 180 days after the 
                date of publication of the request under 
                subparagraph (A).
                    (C) Selection.--After the date by which 
                applications for grants are required to be 
                submitted under subparagraph (B), the Secretary 
                of Energy, in a timely manner, shall select, 
                after peer review and based on the criteria 
                under paragraph (4), those projects to be 
                awarded a grant under this subsection.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

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

SEC. 356. DENALI COMMISSION.

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

SEC. 357. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

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

                  Subtitle F--Access to Federal Lands

SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.

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

SEC. 362. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--
            (1) Secretary of the interior.--To ensure timely 
        action on oil and gas leases and applications for 
        permits to drill on land otherwise available for 
        leasing, the Secretary of the Interior (referred to in 
        this section as the ``Secretary'') shall--
                    (A) ensure expeditious compliance with 
                section 102(2)(C) of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4332(2)(C)) and 
                any other applicable environmental and cultural 
                resources laws;
                    (B) improve consultation and coordination 
                with the States and the public; and
                    (C) improve the collection, storage, and 
                retrieval of information relating to the oil 
                and gas leasing activities.
            (2) Secretary of agriculture.--To ensure timely 
        action on oil and gas lease applications for permits to 
        drill on land otherwise available for leasing, the 
        Secretary of Agriculture shall--
                    (A) ensure expeditious compliance with all 
                applicable environmental and cultural resources 
                laws; and
                    (B) improve the collection, storage, and 
                retrieval of information relating to the oil 
                and gas leasing activities.
    (b) Best Management Practices.--
            (1) In general.--Not later than 18 months after the 
        date of enactment of this Act, the Secretary shall 
        develop and implement best management practices to--
                    (A) improve the administration of the 
                onshore oil and gas leasing program under the 
                Mineral Leasing Act (30 U.S.C. 181 et seq.); 
                and
                    (B) ensure timely action on oil and gas 
                leases and applications for permits to drill on 
                land otherwise available for leasing.
            (2) Considerations.--In developing the best 
        management practices under paragraph (1), the Secretary 
        shall consider any recommendations from the review 
        under section 361.
            (3) Regulations.--Not later than 180 days after the 
        development of the best management practices under 
        paragraph (1), the Secretary shall publish, for public 
        comment, proposed regulations that set forth specific 
        timeframes for processing leases and applications in 
        accordance with the best management practices, 
        including deadlines for--
                    (A) approving or disapproving--
                            (i) resource management plans and 
                        related documents;
                            (ii) lease applications;
                            (iii) applications for permits to 
                        drill; and
                            (iv) surface use plans; and
                    (B) related administrative appeals.
    (c) Improved Enforcement.--The Secretary and the Secretary 
Agriculture shall improve inspection and enforcement of oil and 
gas activities, including enforcement of terms and conditions 
in permits to drill on land under the jurisdiction of the 
Secretary and the Secretary of Agriculture, respectively.
    (d) Authorization of Appropriations.--In addition to 
amounts made available to carry out activities relating to oil 
and gas leasing on public land administered by the Secretary 
and National Forest System land administered by the Secretary 
of Agriculture, there are authorized to be appropriated for 
each of fiscal years 2006 through 2010--
            (1) to the Secretary, acting through the Director 
        of the Bureau of Land Management--
                    (A) $40,000,000 to carry out subsections 
                (a)(1) and (b); and
                    (B) $20,000,000 to carry out subsection 
                (c);
            (2) to the Secretary, acting through the Director 
        of the United States Fish and Wildlife Service, 
        $5,000,000 to carry out subsection (a)(1); and
            (3) to the Secretary of Agriculture, acting through 
        the Chief of the Forest Service, $5,000,000 to carry 
        out subsections (a)(2) and (c).

SEC. 363. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.

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

SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL 
                    LAND.

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

SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (referred 
to in this section as the ``Secretary'') shall establish a 
Federal Permit Streamlining Pilot Project (referred to in this 
section as the ``Pilot Project'').
    (b) Memorandum of Understanding.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        enter into a memorandum of understanding for purposes 
        of this section with--
                    (A) the Secretary of Agriculture;
                    (B) the Administrator of the Environmental 
                Protection Agency; and
                    (C) the Chief of Engineers.
            (2) State participation.--The Secretary may request 
        that the Governors of Wyoming, Montana, Colorado, Utah, 
        and New Mexico be signatories to the memorandum of 
        understanding.
    (c) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the 
        date of the signing of the memorandum of understanding 
        under subsection (b), all Federal signatory parties 
        shall, if appropriate, assign to each of the field 
        offices identified in subsection (d) an employee who 
        has expertise in the regulatory issues relating to the 
        office in which the employee is employed, including, as 
        applicable, particular expertise in--
                    (A) the consultations and the preparation 
                of biological opinions under section 7 of the 
                Endangered Species Act of 1973 (16 U.S.C. 
                1536);
                    (B) permits under section 404 of Federal 
                Water Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air 
                Act (42 U.S.C. 7401 et seq.);
                    (D) planning under the National Forest 
                Management Act of 1976 (16 U.S.C. 472a et 
                seq.); and
                    (E) the preparation of analyses under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
            (2) Duties.--Each employee assigned under paragraph 
        (1) shall--
                    (A) not later than 90 days after the date 
                of assignment, report to the Bureau of Land 
                Management Field Managers in the office to 
                which the employee is assigned;
                    (B) be responsible for all issues relating 
                to the jurisdiction of the home office or 
                agency of the employee; and
                    (C) participate as part of the team of 
                personnel working on proposed energy projects, 
                planning, and environmental analyses.
    (d) Field Offices.--The following Bureau of Land Management 
Field Offices shall serve as the Pilot Project offices:
            (1) Rawlins, Wyoming.
            (2) Buffalo, Wyoming.
            (3) Miles City, Montana
            (4) Farmington, New Mexico.
            (5) Carlsbad, New Mexico.
            (6) Grand Junction/Glenwood Springs, Colorado.
            (7) Vernal, Utah.
    (e) Reports.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that--
            (1) outlines the results of the Pilot Project to 
        date; and
            (2) makes a recommendation to the President 
        regarding whether the Pilot Project should be 
        implemented throughout the United States.
    (f) Additional Personnel.--The Secretary shall assign to 
each field office identified in subsection (d) any additional 
personnel that are necessary to ensure the effective 
implementation of--
            (1) the Pilot Project; and
            (2) other programs administered by the field 
        offices, including inspection and enforcement relating 
        to energy development on Federal land, in accordance 
        with the multiple use mandate of the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1701 et 
        seq).
    (g) Permit Processing Improvement Fund.--Section 35 of the 
Mineral Leasing Act (30 U.S.C. 191) is amended by adding at the 
end the following:
    ``(c)(1) Notwithstanding the first sentence of subsection 
(a), any rentals received from leases in any State (other than 
the State of Alaska) on or after the date of enactment of this 
subsection shall be deposited in the Treasury, to be allocated 
in accordance with paragraph (2).
    ``(2) Of the amounts deposited in the Treasury under 
paragraph (1)--
            ``(A) 50 percent shall be paid by the Secretary of 
        the Treasury to the State within the boundaries of 
        which the leased land is located or the deposits were 
        derived; and
            ``(B) 50 percent shall be deposited in a special 
        fund in the Treasury, to be known as the `BLM Permit 
        Processing Improvement Fund' (referred to in this 
        subsection as the `Fund').
    ``(3) For each of fiscal years 2006 through 2015, the Fund 
shall be available to the Secretary of the Interior for 
expenditure, without further appropriation and without fiscal 
year limitation, for the coordination and processing of oil and 
gas use authorizations on onshore Federal land under the 
jurisdiction of the Pilot Project offices identified in section 
365(d) of the Energy Policy Act of 2005.''.
    (h) Transfer of Funds.--For the purposes of coordination 
and processing of oil and gas use authorizations on Federal 
land under the administration of the Pilot Project offices 
identified in subsection (d), the Secretary may authorize the 
expenditure or transfer of such funds as are necessary to--
            (1) the United States Fish and Wildlife Service;
            (2) the Bureau of Indian Affairs;
            (3) the Forest Service;
            (4) the Environmental Protection Agency;
            (5) the Corps of Engineers; and
            (6) the States of Wyoming, Montana, Colorado, Utah, 
        and New Mexico.
    (i) Fees.--During the period in which the Pilot Project is 
authorized, the Secretary shall not implement a rulemaking that 
would enable an increase in fees to recover additional costs 
related to processing drilling-related permit applications and 
use authorizations.
    (j) Savings Provision.--Nothing in this section affects--
            (1) the operation of any Federal or State law; or
            (2) any delegation of authority made by the head of 
        a Federal agency whose employees are participating in 
        the Pilot Project.

SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.

    Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
amended by adding at the end the following:
    ``(p) Deadlines for Consideration of Applications for 
Permits.--
            ``(1) In general.--Not later than 10 days after the 
        date on which the Secretary receives an application for 
        any permit to drill, the Secretary shall--
                    ``(A) notify the applicant that the 
                application is complete; or
                    ``(B) notify the applicant that information 
                is missing and specify any information that is 
                required to be submitted for the application to 
                be complete.
            ``(2) Issuance or deferral.--Not later than 30 days 
        after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                    ``(A) issue the permit, if the requirements 
                under the National Environmental Policy Act of 
                1969 and other applicable law have been 
                completed within such timeframe; or
                    ``(B) defer the decision on the permit and 
                provide to the applicant a notice--
                            ``(i) that specifies any steps that 
                        the applicant could take for the permit 
                        to be issued; and
                            ``(ii) a list of actions that need 
                        to be taken by the agency to complete 
                        compliance with applicable law together 
                        with timelines and deadlines for 
                        completing such actions.
            ``(3) Requirements for deferred applications.--
                    ``(A) In general.--If the Secretary 
                provides notice under paragraph (2)(B), the 
                applicant shall have a period of 2 years from 
                the date of receipt of the notice in which to 
                complete all requirements specified by the 
                Secretary, including providing information 
                needed for compliance with the National 
                Environmental Policy Act of 1969.
                    ``(B) Issuance of decision on permit.--If 
                the applicant completes the requirements within 
                the period specified in subparagraph (A), the 
                Secretary shall issue a decision on the permit 
                not later than 10 days after the date of 
                completion of the requirements described in 
                subparagraph (A), unless compliance with the 
                National Environmental Policy Act of 1969 and 
                other applicable law has not been completed 
                within such timeframe.
                    ``(C) Denial of permit.--If the applicant 
                does not complete the requirements within the 
                period specified in subparagraph (A) or if the 
                applicant does not comply with applicable law, 
                the Secretary shall deny the permit.''.

SEC. 367. FAIR MARKET VALUE DETERMINATIONS FOR LINEAR RIGHTS-OF-WAY 
                    ACROSS PUBLIC LANDS AND NATIONAL FORESTS.

    (a) Update of Fee Schedule.--Not later than one year after 
the date of enactment of this section--
            (1) the Secretary of the Interior shall update 
        section 2806.20 of title 43, Code of Federal 
        Regulations, as in effect on the date of enactment of 
        this section, to revise the per acre rental fee zone 
        value schedule by State, county, and type of linear 
        right-of-way use to reflect current values of land in 
        each zone; and
            (2) the Secretary of Agriculture shall make the 
        same revision for linear rights-of-way granted, issued, 
        or renewed under title V of the Federal Lands Policy 
        and Management Act of 1976 (43 U.S.C. 1761 et seq.) on 
        National Forest System land.
    (b) Fair Market Value Rental Determination for Linear 
Rights-of-way.--The fair market value rent of a linear right-
of-way across public lands or National Forest System lands 
issued under section 504 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1764) or section 28 of the 
Mineral Leasing Act (30 U.S.C. 185) shall be determined in 
accordance with subpart 2806 of title 43, Code of Federal 
Regulations, as in effect on the date of enactment of this 
section (including the annual or periodic updates specified in 
the regulations) and as updated in accordance with subsection 
(a).

SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.

    (a) Western States.--Not later than 2 years after the date 
of enactment of this Act, the Secretary of Agriculture, the 
Secretary of Commerce, the Secretary of Defense, the Secretary 
of Energy, and the Secretary of the Interior (in this section 
referred to collectively as ``the Secretaries''), in 
consultation with the Federal Energy Regulatory Commission, 
States, tribal or local units of governments as appropriate, 
affected utility industries, and other interested persons, 
shall consult with each other and shall--
            (1) designate, under their respective authorities, 
        corridors for oil, gas, and hydrogen pipelines and 
        electricity transmission and distribution facilities on 
        Federal land in the eleven contiguous Western States 
        (as defined in section 103(o) of the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1702(o));
            (2) perform any environmental reviews that may be 
        required to complete the designation of such corridors; 
        and
            (3) incorporate the designated corridors into the 
        relevant agency land use and resource management plans 
        or equivalent plans.
    (b) Other States.--Not later than 4 years after the date of 
enactment of this Act, the Secretaries, in consultation with 
the Federal Energy Regulatory Commission, affected utility 
industries, and other interested persons, shall jointly--
            (1) identify corridors for oil, gas, and hydrogen 
        pipelines and electricity transmission and distribution 
        facilities on Federal land in States other than those 
        described in subsection (a); and
            (2) schedule prompt action to identify, designate, 
        and incorporate the corridors into the applicable land 
        use plans.
    (c) Ongoing Responsibilities.--The Secretaries, in 
consultation with the Federal Energy Regulatory Commission, 
affected utility industries, and other interestedparties, shall 
establish procedures under their respective authorities that--
            (1) ensure that additional corridors for oil, gas, 
        and hydrogen pipelines and electricity transmission and 
        distribution facilities on Federal land are promptly 
        identified and designated as necessary; and
            (2) expedite applications to construct or modify 
        oil, gas, and hydrogen pipelines and electricity 
        transmission and distribution facilities within such 
        corridors, taking into account prior analyses and 
        environmental reviews undertaken during the designation 
        of such corridors.
    (d) Considerations.--In carrying out this section, the 
Secretaries shall take into account the need for upgraded and 
new electricity transmission and distribution facilities to--
            (1) improve reliability;
            (2) relieve congestion; and
            (3) enhance the capability of the national grid to 
        deliver electricity.
    (e) Specifications of Corridor.--A corridor designated 
under this section shall, at a minimum, specify the centerline, 
width, and compatible uses of the corridor.

SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL 
                    FUELS.

    (a) Short Title.--This section may be cited as the ``Oil 
Shale, Tar Sands, and Other Strategic Unconventional Fuels Act 
of 2005''.
    (b) Declaration of Policy.--Congress declares that it is 
the policy of the United States that--
            (1) United States oil shale, tar sands, and other 
        unconventional fuels are strategically important 
        domestic resources that should be developed to reduce 
        the growing dependence of the United States on 
        politically and economically unstable sources of 
        foreign oil imports;
            (2) the development of oil shale, tar sands, and 
        other strategic unconventional fuels, for research and 
        commercial development, should be conducted in an 
        environmentally sound manner, using practices that 
        minimize impacts; and
            (3) development of those strategic unconventional 
        fuels should occur, with an emphasis on sustainability, 
        to benefit the United States while taking into account 
        affected States and communities.
    (c) Leasing Program for Research and Development of Oil 
Shale and Tar Sands.--In accordance with section 21 of the 
Mineral Leasing Act (30 U.S.C. 241) and any other applicable 
law, except as provided in this section, not later than 180 
days after the date of enactment of this Act, from land 
otherwise available for leasing, the Secretary of the Interior 
(referred to in this section as the ``Secretary'') shall make 
available for leasing such land as the Secretary considers to 
be necessary to conduct research and development activities 
with respect to technologies for the recovery of liquid fuels 
from oil shale and tar sands resources on public lands. 
Prospective public lands within each of the States of Colorado, 
Utah, and Wyoming shall be made available for such research and 
development leasing.
    (d) Programmatic Environmental Impact Statement and 
Commercial Leasing Program for Oil Shale and Tar Sands.--
            (1) Programmatic environmental impact statement.--
        Not later than 18 months after the date of enactment of 
        this Act, in accordance with section 102(2)(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)), the Secretary shall complete a 
        programmatic environmental impact statement for a 
        commercial leasing program for oil shale and tar sands 
        resources on public lands, with an emphasis on the most 
        geologically prospective lands within each of the 
        States of Colorado, Utah, and Wyoming.
            (2) Final regulation.--Not later than 6 months 
        after the completion of the programmatic environmental 
        impact statement under this subsection, the Secretary 
        shall publish a final regulation establishing such 
        program.
    (e) Commencement of Commercial Leasing of Oil Shale and Tar 
Sands.--Not later than 180 days after publication of the final 
regulation required by subsection (d), the Secretary shall 
consult with the Governors of States with significant oil shale 
and tar sands resources on public lands, representatives of 
local governments in such States, interested Indian tribes, and 
other interested persons, to determine the level of support and 
interest in the States in the development of tar sands and oil 
shale resources. If the Secretary finds sufficient support and 
interest exists in a State, the Secretary may conduct a lease 
sale in that State under the commercial leasing program 
regulations. Evidence of interest in a lease sale under this 
subsection shall include, but not be limited to, appropriate 
areas nominated for leasing by potential lessees and other 
interested parties.
    (f) Diligent Development Requirements.--The Secretary 
shall, by regulation, designate work requirements and 
milestones to ensure the diligent development of the lease.
    (g) Initial Report by the Secretary of the Interior.--
Within 90 days after the date of enactment of this Act, the 
Secretary of the Interior shall report to theCommittee on 
Resources of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate on--
            (1) the interim actions necessary to--
                    (A) develop the program, complete the 
                programmatic environmental impact statement, 
                and promulgate the final regulation as required 
                by subsection (d); and,
                    (B) conduct the first lease sales under the 
                program as required by subsection (e); and
            (2) a schedule to complete such actions within the 
        time limits mandated by this section.
    (h) Task Force.--
            (1) Establishment.--The Secretary of Energy, in 
        cooperation with the Secretary of the Interior and the 
        Secretary of Defense, shall establish a task force to 
        develop a program to coordinate and accelerate the 
        commercial development of strategic unconventional 
        fuels, including but not limited to oil shale and tar 
        sands resources within the United States, in an 
        integrated manner.
            (2) Composition.--The Task Force shall be composed 
        of
                    (A) the Secretary of Energy (or the 
                designee of the Secretary);
                    (B) the Secretary of the Interior (or the 
                designee of the Secretary of the Interior);
                    (C) the Secretary of Defense (or the 
                designee of the Secretary of Defense);
                    (D) the Governors of affected States; and
                    (E) representatives of local governments in 
                affected areas.
            (3) Recommendations.--The Task Force shall make 
        such recommendations regarding promoting the 
        development of the strategic unconventional fuels 
        resources within the United States as it may deem 
        appropriate.
            (4) Partnerships.--The Task Force shall make 
        recommendations with respect to initiating a 
        partnership with the Province of Alberta, Canada, for 
        purposes of sharing information relating to the 
        development and production of oil from tar sands, and 
        similar partnerships with other nations that contain 
        significant oil shale resources
            (5) Reports.--
                    (A) Initial report.--Not later than 180 
                days after the date of enactment of this Act, 
                the Task Force shall submit to the President 
                and Congress a report that describes the 
                analysis and recommendations of the Task Force.
                    (B) Subsequent reports.--The Secretary 
                shall provide an annual report describing the 
                progress in developing the strategic 
                unconventional fuels resources within the 
                United States for each of the 5 years following 
                submission of the report provided for in 
                subparagraph (A).
    (i) Office of Petroleum Reserves.--
            (1) In general.--The Office of Petroleum Reserves 
        of the Department of Energy shall--
                    (A) coordinate the creation and 
                implementation of a commercial strategic fuel 
                development program for the United States;
                    (B) evaluate the strategic importance of 
                unconventional sources of strategic fuels to 
                the security of the United States;
                    (C) promote and coordinate Federal 
                Government actions that facilitate the 
                development of strategic fuels in order to 
                effectively address the energy supply needs of 
                the United States;
                    (D) identify, assess, and recommend 
                appropriate actions of the Federal Government 
                required to assist in the development and 
                manufacturing of strategic fuels; and
                    (E) coordinate and facilitate appropriate 
                relationships between private industry and the 
                Federal Government to promote sufficient and 
                timely private investment to commercialize 
                strategic fuels for domestic and military use.
            (2) Consultation and coordination.--The Office of 
        Petroleum Reserves shall work closely with the Task 
        Force and coordinate its staff support.
            (3) Annual reports.--Not later than 180 days after 
        the date of enactment of this Act and annually 
        thereafter, the Secretary shall submit to Congress a 
        report that describes the activities of the Office of 
        Petroleum Reserves carried out under this subsection.
    (j) Mineral Leasing Act Amendments.--
            (1) Section 17.--Section 17(b)(2) of the Mineral 
        Leasing Act (30 U.S.C. 226(b)(2)), as amended by 
        section 350, is further amended--
                    (A) in subparagraph (A) (as designated by 
                the amendment made by subsection (a)(1) of that 
                section) by designating the first, second, and 
                third sentences as clauses (i), (ii), and 
                (iii), respectively;
                    (B) by moving clause (ii), as so 
                designated, so as to begin immediately after 
                and below clause (i);
                    (C) by moving clause (iii), as so 
                designated, so as to begin immediately after 
                and below clause (ii);
                    (D) in clause (i) of subparagraph (A) (as 
                designated by subparagraph (A) of this 
                paragraph) by striking ``five thousand one 
                hundred and twenty'' and inserting ``5,760''; 
                and
                    (E) by adding at the end the following:
            ``(iv) No lease issued under this paragraph shall 
        be included in any chargeability limitation associated 
        with oil and gas leases.''.
            (2) Section 21.--Section 21(a) of the Mineral 
        Leasing Act (30 U.S.C. 241(a)) is amended--
                    (A) by striking ``(a) That the Secretary'' 
                and inserting the following:
    ``(a)(1) The Secretary'';
                    (B) by striking ``; that no lease'' and 
                inserting a period, followed by the following:
            ``(2) No lease'';
                    (C) by striking ``Leases may be for'' and 
                inserting the following:
            ``(3) Leases may be for'';
                    (D) by striking ``For the privilege'' and 
                inserting the following:
            ``(4) For the privilege'';
                    (E) in paragraph (2) (as designated by 
                subparagraph (B) of this paragraph) by striking 
                ``five thousand one hundred and twenty'' and 
                inserting ``5,760'';
                    (F) in paragraph (4) (as designated by 
                subparagraph (D) of this paragraph) by striking 
                ``rate of 50 cents per acre'' and inserting 
                ``rate of $2.00 per acre'';
                    (G)(i) by striking ``: Provided further, 
                That not more than one lease shall be granted 
                under this section to any'' and inserting ``: 
                Provided further, That no''; and
                    (ii) by striking ``except that with respect 
                to leases for'' and inserting ``shall acquire 
                or hold more than 50,000 acres of oil shale 
                leases in any one State. For''; and
                    (H) by adding at the end the following:
            ``(5) No lease issued under this section shall be 
        included in any chargeability limitation associated 
        with oil and gas leases.''.
    (k) Interagency Coordination and Expeditious Review of 
Permitting Process.--
            (1) Department of the interior as lead agency.--
        Upon written request of a prospective applicant for 
        Federal authorization to develop a proposed oil shale 
        or tar sands project, the Department of the Interior 
        shall act as the lead Federal agency for the purposes 
        of coordinating all applicable Federal authorizations 
        and environmental reviews. To the maximum extent 
        practicable under applicable Federal law, the Secretary 
        shall coordinate this Federal authorization and review 
        process with any Indian tribes and State and local 
        agencies responsible for conducting any separate 
        permitting and environmental reviews.
            (2) Implementing regulations.--Not later than 6 
        months after the date of enactment of this Act, the 
        Secretary shall issue any regulations necessary to 
        implement this subsection.
    (l) Cost-shared Demonstration Technologies.--
            (1) Identification.--The Secretary of Energy shall 
        identify technologies for the development of oil shale 
        and tar sands that--
                    (A) are ready for demonstration at a 
                commercially-representative scale; and
                    (B) have a high probability of leading to 
                commercial production.
            (2) Assistance.--For each technology identified 
        under paragraph (1), the Secretary of Energy may 
        provide--
                    (A) technical assistance;
                    (B) assistance in meeting environmental and 
                regulatory requirements; and
                    (C) cost-sharing assistance.
    (m) National Oil Shale and Tar Sands Assessment.--
            (1) Assessment.--
                    (A) In general.--The Secretary shall carry 
                out a national assessment of oil shale and tar 
                sands resources for the purposes of evaluating 
                and mapping oil shale and tar sands deposits, 
                in the geographic areas described in 
                subparagraph (B). In conducting such an 
                assessment, the Secretary shall make use of the 
                extensive geological assessment work for oil 
                shale and tar sands already conducted by the 
                United States Geological Survey.
                    (B) Geographic areas.--The geographic areas 
                referred to in subparagraph (A), listed in the 
                order in which the Secretary shall assign 
                priority, are--
                            (i) the Green River Region of the 
                        States of Colorado, Utah, and Wyoming;
                            (ii) the Devonian oil shales and 
                        other hydrocarbon-bearing rocks having 
                        the nomenclature of ``shale'' located 
                        east of the Mississippi River; and
                            (iii) any remaining area in the 
                        central and western United States 
                        (including the State of Alaska) that 
                        contains oil shale and tar sands, as 
                        determined by the Secretary.
            (2) Use of state surveys and universities.--In 
        carrying out the assessment under paragraph (1), the 
        Secretary may request assistance from any State-
        administered geological survey or university.
    (n) Land Exchanges.--
            (1) In general.--To facilitate the recovery of oil 
        shale and tar sands, especially in areas where Federal, 
        State, and private lands are intermingled, the 
        Secretary shall consider the use of land exchanges 
        where appropriate and feasible to consolidate land 
        ownership and mineral interests into manageable areas.
            (2) Identification and priority of public lands.--
        The Secretary shall identify public lands containing 
        deposits of oil shale or tar sands within the Green 
        River, Piceance Creek, Uintah, and Washakie geologic 
        basins, and shall give priority to implementing land 
        exchanges within those basins. The Secretary shall 
        consider the geology of the respective basin in 
        determining the optimum size of the lands to be 
        consolidated.
            (3) Compliance with section 206 of flpma.--A land 
        exchange undertaken in furtherance of this subsection 
        shall be implemented in accordance with section 206 of 
        the Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1716).
    (o) Royalty Rates for Leases.--The Secretary shall 
establish royalties, fees, rentals, bonus, or other payments 
for leases under this section that shall--
            (1) encourage development of the oil shale and tar 
        sands resource; and
            (2) ensure a fair return to the United States.
    (p) Heavy Oil Technical and Economic Assessment.--The 
Secretary of Energy shall update the 1987 technical and 
economic assessment of domestic heavy oil resources that was 
prepared by the Interstate Oil and Gas Compact Commission. Such 
an update should include all of North America and cover all 
unconventional oil, including heavy oil, tar sands (oil sands), 
and oil shale.
    (q) Procurement of Unconventional Fuels by the Department 
of Defense.--
            (1) In general.--Chapter 141 of title 10, United 
        States Code, is amended by inserting after section 2398 
        the following:

``Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar 
                    sands

    ``(a) Use of Fuel to Meet Department of Defense Needs.--The 
Secretary of Defense shall develop a strategy to use fuel 
produced, in whole or in part, from coal, oil shale, and tar 
sands (referred to in this section as a `covered fuel') that 
are extracted by either mining or in-situ methods and refined 
or otherwise processed in the United States in order to assist 
in meeting the fuel requirements of the Department of Defense 
when the Secretary determines that it is in the national 
interest.
    ``(b) Authority To Procure.--The Secretary of Defense may 
enter into 1 or more contracts or other agreements (that meet 
the requirements of this section) to procure a covered fuel to 
meet 1 or more fuel requirements of the Department of Defense.
    ``(c) Clean Fuel Requirements.--A covered fuel may be 
procured under subsection (b) only if the covered fuel meets 
such standards for clean fuel produced from domestic sources as 
the Secretary of Defense shall establish for purposes of this 
section in consultation with the Department of Energy.
    ``(d) Multiyear Contract Authority.--Subject to applicable 
provisions of law, any contract or other agreement for the 
procurement of covered fuel under subsection (b) may be for 1 
or more years at the election of the Secretary of Defense.
    ``(e) Fuel Source Analysis.--In order to facilitate the 
procurement by the Department of Defense of covered fuel under 
subsection (b), the Secretary of Defense may carry out a 
comprehensive assessment of current and potential locations in 
the United States for the supply of covered fuel to the 
Department.''.
            (2) Clerical amendment.--The table of sections for 
        chapter 141 of title 10, United States Code, is amended 
        by inserting after the item relating to section 2398 
        the following:

``2398a. Procurement of fuel derived from coal, oil shale, and tar 
          sands''.
    (r) State Water Rights.--Nothing in this section preempts 
or affects any State water law or interstate compact relating 
to water.
    (s) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

SEC. 370. FINGER LAKES WITHDRAWAL.

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

SEC. 371. REINSTATEMENT OF LEASES.

    (a) Leases Terminated for Certain Failure to Pay Rental.--
Notwithstanding section 31(d)(2)(B) of the Mineral Leasing Act 
(30 U.S.C. 188(d)(2)(B)) as in effect before the effective date 
of this section, and notwithstanding the amendment made by 
subsection (b) of thissection, the Secretary of the Interior 
may reinstate any oil and gas lease issued under that Act that was 
terminated for failure of a lessee to pay the full amount of rental on 
or before the anniversary date of the lease, during the period 
beginning on September 1, 2001, and ending on June 30, 2004, if--
            (1) not later than 120 days after the date of 
        enactment of this Act, the lessee--
                    (A) files a petition for reinstatement of 
                the lease;
                    (B) complies with the conditions of section 
                31(e) of the Mineral Leasing Act (30 U.S.C. 
                188(e)); and
                    (C) certifies that the lessee did not 
                receive a notice of termination by the date 
                that was 13 months before the date of 
                termination; and
            (2) the land is available for leasing.
    (b) Deadline for Petitions, Generally.--Section 31(d)(2) of 
the Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by 
striking subparagraphs (A) and (B) and inserting the following:
                    ``(A) with respect to any lease that 
                terminated under subsection (b) on or before 
                the date of the enactment of the Energy Policy 
                Act of 2005, a petition for reinstatement 
                (together with the required back rental and 
                royalty accruing after the date of termination) 
                is filed on or before the earlier of--
                            ``(i) 60 days after the lessee 
                        receives from the Secretary notice of 
                        termination, whether by return of check 
                        or by any other form of actual notice; 
                        or
                            ``(ii) 15 months after the 
                        termination of the lease; or
                    ``(B) with respect to any lease that 
                terminates under subsection (b) after the date 
                of the enactment of the Energy Policy Act of 
                2005, a petition for reinstatement (together 
                with the required back rental and royalty 
                accruing after the date of termination) is 
                filed on or before the earlier of--
                            ``(i) 60 days after receipt of the 
                        notice of termination sent by the 
                        Secretary by certified mail to all 
                        lessees of record; or
                            ``(ii) 24 months after the 
                        termination of the lease.''.

SEC. 372. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON PUBLIC LAND.

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

SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER 
                    PADRE ISLAND NATIONAL SEASHORE.

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

SEC. 374. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

    Section 102 of Public Law 102-562 (106 Stat. 4234) is 
amended by striking subsection (b) and inserting the following:
    ``(b) Reservation of Oil and Gas Rights and Conveyance of 
Remaining Mineral Rights.--Subject to the limitations set forth 
in subsection (c), the United States hereby excepts and 
reserves from the provisions of subsection (a), all rights to 
oil and gas underlying suchlands, along with the right to 
explore for, and produce the oil and gas under applicable law and such 
regulations as the Secretary of the Interior may prescribe. Not later 
than 180 days after the date of enactment of the Energy Policy Act of 
2005, the Secretary of the Interior shall convey the remaining mineral 
rights to the parties who as of the date of enactment of the Energy 
Policy Act of 2005 would be recognized as holders of a right, title, or 
interest to any portion of such minerals under the laws of the State of 
Louisiana, but for the interest of the United States in such minerals.
    ``(c) Oil and Gas Resource Assessment and Report.--The 
United States Geological Survey shall conduct a resource 
assessment and publish a report of the findings of such 
resource assessment (`USGS Assessment and Report') within one 
year of the date of enactment of the Energy Policy Act of 2005. 
The USGS Assessment and Report shall provide an assessment of 
all oil and gas resources underlying the certain lands in 
Livingston Parish, Louisiana, as described in section 103 (the 
`Livingston Parish lands'). Upon a finding by the Secretary of 
the Interior based upon the USGS Assessment and Report that it 
is unlikely that economically recoverable oil and gas resources 
are present, the Secretary shall convey all rights to oil and 
gas underlying such lands to the recipients, or their 
successors, heirs, or assigns, of the conveyances under 
subsection (b). Such further conveyances shall be made within 
180 days after a finding by the Secretary that it is unlikely 
that economically recoverable oil and gas resources are 
present.''.

                       Subtitle G--Miscellaneous

SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION 
                    UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.

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

                       ``APPEALS TO THE SECRETARY

    ``Sec. 319. (a) Notice.--Not later than 30 days after the 
date of the filing of an appeal to the Secretary of a 
consistency determination under section 307, the Secretary 
shall publish an initial notice in the Federal Register.
    ``(b) Closure of Record.--
            ``(1) In general.--Not later than the end of the 
        160-day period beginning on the date of publication of 
        an initial notice under subsection (a), except as 
        provided in paragraph (3), the Secretary shall 
        immediately close the decision record and receive no 
        more filings on the appeal.
            ``(2) Notice.--After closing the administrative 
        record, the Secretary shall immediately publish a 
        notice in the Federal Register that the administrative 
        record has been closed.
            ``(3) Exception.--
                    ``(A) In general.--Subject to subparagraph 
                (B), during the 160-day period described in 
                paragraph (1), the Secretary may stay the 
                closing of the decision record--
                            ``(i) for a specific period 
                        mutually agreed to in writing by the 
                        appellant and the State agency; or
                            ``(ii) as the Secretary determines 
                        necessary to receive, on an expedited 
                        basis--
                                    ``(I) any supplemental 
                                information specifically 
                                requested by the Secretary to 
                                complete a consistency review 
                                under this Act; or
                                    ``(II) any clarifying 
                                information submitted by a 
                                party to the proceeding related 
                                to information in the 
                                consolidated record compiled by 
                                the lead Federal permitting 
                                agency.
                    ``(B) Applicability.--The Secretary may 
                only stay the 160-day period described in 
                paragraph (1) for a period not to exceed 60 
                days.
    ``(c) Deadline for Decision.--
            ``(1) In general.--Not later than 60 days after the 
        date of publication of a Federal Register notice 
        stating when the decision record for an appeal has been 
        closed, the Secretary shall issue a decision or publish 
        a notice in the Federal Register explaining why a 
        decision cannot be issued at that time.
            ``(2) Subsequent decision.--Not later than 15 days 
        after the date of publication of a Federal Register 
        notice explaining why a decision cannot be issued 
        within the 60-day period, the Secretary shall issue a 
        decision.''.

SEC. 382. APPEALS RELATING TO OFFSHORE MINERAL DEVELOPMENT.

    For any Federal administrative agency proceeding that is an 
appeal or review under section 319 of the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1465), as amended by this 
Act, related to any Federal authorization for the permitting, 
approval, or other authorization of an energy project, the lead 
Federal permitting agency for the project shall, with the 
cooperation of Federal and State administrative agencies, 
maintain a consolidated record of all decisions made or actions 
taken by the lead agency or by another Federal or State 
administrative agency or officer. Such record shall be the 
initial record for appeals or reviews under that Act, provided 
that the record may be supplemented as expressly provided 
pursuant to section 319 of that Act.

SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER CONTINENTAL 
                    SHELF LANDS ACT.

    (a) Royalty Relief.--
            (1) In general.--For purposes of providing 
        compensation for lessees and a State for which amounts 
        are authorized by section 6004(c) of the Oil Pollution 
        Act of 1990 (Public Law 101-380), a lessee may withhold 
        from payment any royalty due and owing to the United 
        States under any leases under the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1301 et seq.) for offshore 
        oil or gas production from a covered lease tract if, on 
        or before the date that the payment is due and payable 
        to the United States, the lessee makes a payment to the 
        State of 44 cents for every $1 of royalty withheld.
            (2) Treatment of amounts.--Any royalty withheld by 
        a lessee in accordance with this section (including any 
        portion thereof that is paid to the State under 
        paragraph (1)) shall be treated as paid for purposes of 
        satisfaction of the royalty obligations of the lessee 
        to the United States.
            (3) Certification of withheld amounts.--The 
        Secretary of the Treasury shall--
                    (A) determine the amount of royalty 
                withheld by a lessee under this section; and
                    (B) promptly publish a certification when 
                the total amount of royalty withheld by the 
                lessee under this section is equal to--
                            (i) the dollar amount stated at 
                        page 47 of Senate Report number 101-
                        534, which is designated therein as the 
                        total drainage claim for the West Delta 
                        field; plus
                            (ii) interest as described at page 
                        47 of that Report.
    (b) Period of Royalty Relief.--Subsection (a) shall apply 
to royalty amounts that are due and payable in the period 
beginning on October 1, 2006, and ending on the date on which 
the Secretary of the Treasury publishes a certification under 
subsection (a)(3)(B).
    (c) Definitions.--As used in this section:
            (1) Covered lease tract.--The term ``covered lease 
        tract'' means a leased tract (or portion of a leased 
        tract)--
                    (A) lying seaward of the zone defined and 
                governed by section 8(g) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 
                1337(g)); or
                    (B) lying within such zone but to which 
                such section does not apply.
            (2) Lessee.--The term ``lessee''--
                    (A) means a person or entity that, on the 
                date of the enactment of the Oil Pollution Act 
                of 1990, was a lessee referred to in section 
                6004(c) of that Act (as in effect on that date 
                of the enactment), but did not hold lease 
                rights in Federal offshore lease OCS-G-5669; 
                and
                    (B) includes successors and affiliates of a 
                person or entity described in subparagraph (A).

SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.

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

``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

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

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which 
the National Academy of Sciences shall conduct a study of the 
short-term and long-term availability of skilled workers to 
meet the energy and mineral security requirements of the United 
States.
    (b) Inclusions.--The study shall include an analysis of--
            (1) the need for and availability of workers for 
        the oil, gas, and mineral industries;
            (2) the availability of skilled labor at both entry 
        level and more senior levels; and
            (3) recommendations for future actions needed to 
        meet future labor requirements.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that describes the results of the study.

SEC. 386. GREAT LAKES OIL AND GAS DRILLING BAN.

    No Federal or State permit or lease shall be issued for new 
oil and gas slant, directional, or offshore drilling in or 
under one or more of the Great Lakes.

SEC. 387. FEDERAL COALBED METHANE REGULATION.

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

SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337) is amended by adding at the end the following:
    ``(p) Leases, Easements, or Rights-of-way for Energy and 
Related Purposes.--
            ``(1) In general.--The Secretary, in consultation 
        with the Secretary of the Department in which the Coast 
        Guard is operating and other relevant departments and 
        agencies of the Federal Government, may grant a lease, 
        easement, or right-of-way on the outer Continental 
        Shelf for activities not otherwise authorized in this 
        Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
        seq.), the Ocean Thermal Energy Conversion Act of 1980 
        (42 U.S.C. 9101 et seq.), or other applicable law, if 
        those activities--
                    ``(A) support exploration, development, 
                production, or storage of oil or natural gas, 
                except that a lease, easement, or right-of-way 
                shall not be granted in an area in which oil 
                and gas preleasing, leasing, and related 
                activities are prohibited by a moratorium;
                    ``(B) support transportation of oil or 
                natural gas, excluding shipping activities;
                    ``(C) produce or support production, 
                transportation, or transmission of energy from 
                sources other than oil and gas; or
                    ``(D) use, for energy-related purposes or 
                for other authorized marine-related purposes, 
                facilities currently or previously used for 
                activities authorized under this Act, except 
                that any oil and gas energy-related uses shall 
                not be authorized in areas in which oil and gas 
                preleasing, leasing, and related activities are 
                prohibited by a moratorium.
            ``(2) Payments and revenues.--(A) The Secretary 
        shall establish royalties, fees, rentals, bonuses, or 
        other payments to ensure a fair return to the United 
        States for any lease, easement, or right-of-way granted 
        under this subsection.
            ``(B) The Secretary shall provide for the payment 
        of 27 percent of the revenues received by the Federal 
        Government as a result of payments under this section 
        from projects that are located wholly or partially 
        within the area extending three nautical miles seaward 
        of State submerged lands. Payments shall be made based 
        on a formula established by the Secretary by rulemaking 
        no later than 180 days after the date of enactment of 
        this section that provides for equitable distribution, 
        based on proximity to the project, among coastal states 
        that have a coastline that is located within 15 miles 
        of the geographic center of the project.
            ``(3) Competitive or noncompetitive basis.--Except 
        with respect to projects that meet the criteria 
        established under section 388(d) of the Energy Policy 
        Act of 2005, the Secretary shall issue a lease, 
        easement, or right-of-way under paragraph (1) on a 
        competitive basis unless the Secretary determines after 
        public notice of a proposed lease, easement, or right-
        of-way that there is no competitive interest.
            ``(4) Requirements.--The Secretary shall ensure 
        that any activity under this subsection is carried out 
        in a manner that provides for--
                    ``(A) safety;
                    ``(B) protection of the environment;
                    ``(C) prevention of waste;
                    ``(D) conservation of the natural resources 
                of the outer Continental Shelf;
                    ``(E) coordination with relevant Federal 
                agencies;
                    ``(F) protection of national security 
                interests of the United States;
                    ``(G) protection of correlative rights in 
                the outer Continental Shelf;
                    ``(H) a fair return to the United States 
                for any lease, easement, or right-of-way under 
                this subsection;
                    ``(I) prevention of interference with 
                reasonable uses (as determined by the 
                Secretary) of the exclusive economic zone, the 
                high seas, and the territorial seas;
                    ``(J) consideration of--
                            ``(i) the location of, and any 
                        schedule relating to, a lease, 
                        easement, or right-of-way for an area 
                        of the outer Continental Shelf; and
                            ``(ii) any other use of the sea or 
                        seabed, including use for a fishery, a 
                        sealane, a potential site of a 
                        deepwater port, or navigation;
                    ``(K) public notice and comment on any 
                proposal submitted for a lease, easement, or 
                right-of-way under this subsection; and
                    ``(L) oversight, inspection, research, 
                monitoring, and enforcement relating to a 
                lease, easement, or right-of-way under this 
                subsection.
            ``(5) Lease duration, suspension, and 
        cancellation.--The Secretary shall provide for the 
        duration, issuance, transfer, renewal, suspension, and 
        cancellation of a lease, easement, or right-of-way 
        under this subsection.
            ``(6) Security.--The Secretary shall require the 
        holder of a lease, easement, or right-of-way granted 
        under this subsection to--
                    ``(A) furnish a surety bond or other form 
                of security, as prescribed by the Secretary;
                    ``(B) comply with such other requirements 
                as the Secretary considers necessary to protect 
                the interests of the public and the United 
                States; and
                    ``(C) provide for the restoration of the 
                lease, easement, or right-of-way.
            ``(7) Coordination and consultation with affected 
        state and local governments.--The Secretary shall 
        provide for coordination and consultation with the 
        Governor of any State or the executive of any local 
        government that may be affected by a lease, easement, 
        or right-of-way under this subsection.
            ``(8) Regulations.--Not later than 270 days after 
        the date of enactment of the Energy Policy Act of 2005, 
        the Secretary, in consultation with the Secretary of 
        Defense, the Secretary of the Department in which the 
        Coast Guard is operating, the Secretary of Commerce, 
        heads of other relevant departments and agencies of the 
        Federal Government, and the Governor of any affected 
        State, shall issue any necessary regulations to carry 
        out this subsection.
            ``(9) Effect of subsection.--Nothing in this 
        subsection displaces, supersedes, limits, or modifies 
        the jurisdiction, responsibility, or authority of any 
        Federal or State agency under any other Federal law.
            ``(10) Applicability.--This subsection does not 
        apply to any area on the outer Continental Shelf within 
        the exterior boundaries of any unit of the National 
        Park System, National Wildlife Refuge System, or 
        National Marine Sanctuary System, or any National 
        Monument.''.
    (b) Coordinated OCS Mapping Initiative.--
            (1) In general.--The Secretary of the Interior, in 
        cooperation with the Secretary of Commerce, the 
        Commandant of the Coast Guard, and the Secretary of 
        Defense, shall establish an interagency comprehensive 
        digital mapping initiative for the outer Continental 
        Shelf to assist in decisionmaking relating to the 
        siting of activities under subsection (p) of section 8 
        of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337) (as added by subsection (a)).
            (2) Use of data.--The mapping initiative shall use, 
        and develop procedures for accessing, data collected 
        before the date on which the mapping initiative is 
        established, to the maximum extent practicable.
            (3) Inclusions.--Mapping carried out under the 
        mapping initiative shall include an indication of the 
        locations on the outer Continental Shelf of--
                    (A) Federally-permitted activities;
                    (B) obstructions to navigation;
                    (C) submerged cultural resources;
                    (D) undersea cables;
                    (E) offshore aquaculture projects; and
                    (F) any area designated for the purpose of 
                safety, national security, environmental 
                protection, or conservation and management of 
                living marine resources.
    (c) Conforming Amendment.--Section 8 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
striking the section heading and inserting the following: 
``Leases, Easements, and Rights-of-way on the Outer Continental 
Shelf.--''.
    (d) Savings Provision.--Nothing in the amendment made by 
subsection (a) requires the resubmittal of any document that 
was previously submitted or the reauthorization of any action 
that was previously authorized with respect to a project for 
which, before the date of enactment of this Act--
            (1) an offshore test facility has been constructed; 
        or
            (2) a request for a proposal has been issued by a 
        public authority.
    (e) State Claims to Jurisdiction Over Submerged Lands.--
Nothing in this section shall be construed to alter, limit, or 
modify any claim of any State to any jurisdiction over, or any 
right, title, or interest in, any submerged lands.

SEC. 389. OIL SPILL RECOVERY INSTITUTE.

    Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et 
seq.) is amended--
            (1) in section 5001(i), by striking ``September 30, 
        2012'' and inserting ``1 year after the date on which 
        the Secretary, in consultation with the Secretary of 
        the Interior, determines that oil and gas exploration, 
        development, and production in the State of Alaska have 
        ceased''; and
            (2) in section 5006(c), by striking ``October 1, 
        2012'' and inserting ``1 year after the date on which 
        the Secretary, in consultation with the Secretary of 
        the Interior, determines that oil and gas exploration, 
        development, and production in the State of Alaska have 
        ceased,''.

SEC. 390. NEPA REVIEW.

    (a) NEPA Review.--Action by the Secretary of the Interior 
in managing the public lands, or the Secretary of Agriculture 
in managing National Forest System Lands, with respect to any 
of the activities described in subsection (b) shall be subject 
to a rebuttable presumption that the use of a categorical 
exclusion under the National Environmental Policy Act of 1969 
(NEPA) would apply if the activity is conducted pursuant to the 
Mineral Leasing Act for the purpose of exploration or 
development of oil or gas.
    (b) Activities Described.--The activities referred to in 
subsection (a) are the following:
            (1) Individual surface disturbances of less than 
        five (5) acres so long as the total surface disturbance 
        on the lease is not greater than 150 acres and site-
        specific analysis in a document prepared pursuant to 
        NEPA has been previously completed.
            (2) Drilling an oil or gas well at a location or 
        well pad site at which drilling has occurred previously 
        within five (5) years prior to the date of spudding the 
        well.
            (3) Drilling an oil or gas well within a developed 
        field for which an approved land use plan or any 
        environmental document prepared pursuant to NEPA 
        analyzed such drilling as a reasonably foreseeable 
        activity, so long as such plan or document was approved 
        within five (5) years prior to the date of spudding the 
        well.
            (4) Placement of a pipeline in an approved right-
        of-way corridor, so long as the corridor was approved 
        within five (5) years prior to the date of placement of 
        the pipeline.
            (5) Maintenance of a minor activity, other than any 
        construction or major renovation or a building or 
        facility.

                  Subtitle H--Refinery Revitalization

SEC. 391. FINDINGS AND DEFINITIONS.

    (a) Findings.--Congress finds that--
            (1) it serves the national interest to increase 
        petroleum refining capacity for gasoline, heating oil, 
        diesel fuel, jet fuel, kerosene, and petrochemical 
        feedstocks wherever located within the United States, 
        to bring more supply to the markets for the use of the 
        American people;
            (2) United States demand for refined petroleum 
        products currently exceeds the country's petroleum 
        refining capacity to produce such products;
            (3) this excess demand has been met with increased 
        imports;
            (4) due to lack of capacity, refined petroleum 
        product imports are expected to grow from 7.9 percent 
        to 10.7 percent of total refined product by 2025;
            (5) refiners are still subject to significant 
        environmental and other regulations and face several 
        new requirements under the Clean Air Act (42 U.S.C. 
        7401 et seq.) over the next decade; and
            (6) better coordination of Federal and State 
        regulatory reviews may help facilitate siting and 
        construction of new refineries to meet the demand in 
        the United States for refined products.
    (b) Definitions.--In this subtitle:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) State.--The term ``State'' means--
                    (A) a State;
                    (B) the Commonwealth of Puerto Rico; and
                    (C) any other territory or possession of 
                the United States.

SEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.

    (a) In General.--At the request of the Governor of a State, 
the Administrator may enter into a refinery permitting 
cooperative agreement with the State, under which each party to 
the agreement identifies steps, including timelines, that it 
will take to streamline the consideration of Federal and State 
environmental permits for a new refinery.
    (b) Authority Under Agreement.--The Administrator shall be 
authorized to--
            (1) accept from a refiner a consolidated 
        application for all permits required from the 
        Environmental Protection Agency, to the extent 
        consistent with other applicable law;
            (2) enter into memoranda of agreement with other 
        Federal agencies to coordinate consideration of 
        refinery applications and permits among Federal 
        agencies; and
            (3) enter into memoranda of agreement with a State, 
        under which Federal and State review of refinery permit 
        applications will be coordinated and concurrently 
        considered, to the extent practicable.
    (c) State Assistance.--The Administrator is authorized to 
provide financial assistance to State governments to facilitate 
the hiring of additional personnel withexpertise in fields 
relevant to consideration of refinery permits.
    (d) Other Assistance.--The Administrator is authorized to 
provide technical, legal, or other assistance to State 
governments to facilitate their review of applications to build 
new refineries.

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--There are authorized to 
be appropriated to the Secretary to carry out the activities 
authorized by this subtitle $200,000,000 for each of fiscal 
years 2006 through 2014, to remain available until expended.
    (b) Report.--The Secretary shall submit to Congress the 
report required by this subsection not later than March 31, 
2007. The report shall include, with respect to subsection (a), 
a 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 Government Accountability 
        Office reports on the Clean Coal Technology Program, 
        including problems that have resulted in unspent funds 
        and projects that failed either financially or 
        scientifically.

SEC. 402. PROJECT CRITERIA.

    (a) In General.--To be eligible to receive assistance under 
this subtitle, a project shall advance efficiency, 
environmental performance, and cost competitiveness well beyond 
the level of technologies that are in commercial service or 
have been demonstrated on a scale that the Secretary determines 
is sufficient to demonstrate that commercial service is viable 
as of the date of enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification projects.--
                    (A) In general.--In allocating the funds 
                made available under section 401(a), the 
                Secretary shall ensure that at least 70 percent 
                of the funds are used only to fund projects on 
                coal-based gasification technologies, 
                including--
                            (i) gasification combined cycle;
                            (ii) gasification fuel cells and 
                        turbine combined cycle;
                            (iii) gasification coproduction;
                            (iv) hybrid gasification and 
                        combustion; and
                            (v) other advanced coal based 
                        technologies capable of producing a 
                        concentrated stream of carbon dioxide.
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The 
                                Secretary shall periodically 
                                set technicalmilestones 
specifying the emission and thermal efficiency levels that coal 
gasification projects under this subtitle shall be designed, and 
reasonably expected, to achieve.
                                    (II) Prescriptive 
                                milestones.--The technical 
                                milestones shall become more 
                                prescriptive during the period 
                                of the clean coal power 
                                initiative.
                            (ii) 2020 goals.--The Secretary 
                        shall establish the periodic milestones 
                        so as to achieve by the year 2020 coal 
                        gasification projects able--
                                    (I) to remove at least 99 
                                percent of sulfur dioxide;
                                    (II) to emit not more than 
                                .05 lbs of NOx per 
                                million Btu;
                                    (III) to achieve at least 
                                95 percent reductions in 
                                mercury emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 50 percent for 
                                        coal of more than 9,000 
                                        Btu;
                                            (bb) 48 percent for 
                                        coal of 7,000 to 9,000 
                                        Btu; and
                                            (cc) 46 percent for 
                                        coal of less than 7,000 
                                        Btu.
            (2) Other projects.--
                    (A) Allocation of funds.--The Secretary 
                shall ensure that up to 30 percent of the funds 
                made available under section 401(a) are used to 
                fund projects other than those described in 
                paragraph (1).
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The 
                                Secretary shall periodically 
                                establish technical milestones 
                                specifying the emission and 
                                thermal efficiency levels that 
                                projects funded under this 
                                paragraph shall be designed, 
                                and reasonably expected, to 
                                achieve.
                                    (II) Prescriptive 
                                milestones.--The technical 
                                milestones shall become more 
                                prescriptive during the period 
                                of the clean coal power 
                                initiative.
                            (ii) 2020 goals.--The Secretary 
                        shall set the periodic milestones so as 
                        to achieve by the year 2020 projects 
                        able--
                                    (I) to remove at least 97 
                                percent of sulfur dioxide;
                                    (II) to emit no more than 
                                .08 lbs of NOx per 
                                million Btu;
                                    (III) to achieve at least 
                                90 percent reductions in 
                                mercury emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 43 percent for 
                                        coal of more than 9,000 
                                        Btu;
                                            (bb) 41 percent for 
                                        coal of 7,000 to 9,000 
                                        Btu; and
                                            (cc) 39 percent for 
                                        coal of less than 7,000 
                                        Btu.
            (3) Consultation.--Before setting the technical 
        milestones under paragraphs (1)(B) and (2)(B), the 
        Secretary shall consult with--
                    (A) the Administrator of the Environmental 
                Protection Agency; and
                    (B) interested entities, including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote 
                        coal or advanced coal technologies;
                            (iv) environmental organizations;
                            (v) organizations representing 
                        workers; and
                            (vi) organizations representing 
                        consumers.
            (4) Existing units.--In the case of projects at 
        units in existence on the date of enactment of this 
        Act, in lieu of the thermal efficiency requirements 
        described in paragraphs (1)(B)(ii)(IV) and 
        (2)(B)(ii)(IV), the milestones shall be designed to 
        achieve an overall thermal design efficiency 
        improvement, compared to the efficiency of the unit as 
        operated, of not less than--
                    (A) 7 percent for coal of more than 9,000 
                Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 
                Btu; or
                    (C) 4 percent for coal of less than 7,000 
                Btu.
            (5) Administration.--
                    (A) Elevation of site.--In evaluating 
                project proposals to achieve thermal efficiency 
                levels established under paragraphs (1)(B)(i) 
                and (2)(B)(i) and in determining progress 
                towards thermal efficiency milestones under 
                paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and 
                (4), the Secretary shall take into account and 
                make adjustments for the elevation of the site 
                at which a project is proposed to be 
                constructed.
                    (B) Applicability of milestones.--In 
                applying the thermal efficiency milestones 
                under paragraphs (1)(B)(ii)(IV), 
                (2)(B)(ii)(IV), and (4) to projects that 
                separate and capture at least 50 percent of the 
                potential emissions of carbon dioxide by a 
                facility, the energy used for separation and 
                capture of carbon dioxide shall not be counted 
                in calculating the thermal efficiency.
                    (C) Permitted uses.--In carrying out this 
                section, the Secretary may give priority to 
                projects that include, as part of the project--
                            (i) the separation or capture of 
                        carbon dioxide; or
                            (ii) the reduction of the demand 
                        for natural gas if deployed.
    (c) Financial Criteria.--The Secretary shall not provide 
financial assistance under this subtitle for a project unless 
the recipient documents to the satisfaction of the Secretary 
that--
            (1) the recipient is financially responsible;
            (2) the recipient will provide sufficient 
        information to the Secretary to enable the Secretary to 
        ensure that the funds are spent efficiently and 
        effectively; and
            (3) a market exists for the technology being 
        demonstrated or applied, as evidenced by statements of 
        interest in writing from potential purchasers of the 
        technology.
    (d) Financial Assistance.--The Secretary shall provide 
financial assistance to projects that, as determined by the 
Secretary--
            (1) meet the requirements of subsections (a), (b), 
        and (c); and
            (2) are likely--
                    (A) to achieve overall cost reductions in 
                the use of coal to generate useful forms of 
                energy or chemical feedstocks;
                    (B) to improve the competitiveness of coal 
                among various forms of energy in order to 
                maintain a diversity of fuel choices in the 
                United States to meet electricity generation 
                requirements; and
                    (C) to demonstrate methods and equipment 
                that are applicable to 25 percent of the 
                electricity generating facilities, using 
                various types of coal, that use coal as the 
                primary feedstock as of the date of enactment 
                of this Act.
    (e) Cost-Sharing.--In carrying out this subtitle, the 
Secretary shall require cost sharing in accordance with section 
988.
    (f) Scheduled Completion of Selected Projects.--
            (1) In general.--In selecting a project for 
        financial assistance under this section, the Secretary 
        shall establish a reasonable period of time during 
        which the owner or operator of the project shall 
        complete the construction or demonstration phase of the 
        project, as the Secretary determines to be appropriate.
            (2) Condition of financial assistance.--The 
        Secretary shall require as a condition of receipt of 
        any financial assistance under this subtitle that the 
        recipient of the assistance enter into an agreement 
        with the Secretary not to request an extension of the 
        time period established for the project by the 
        Secretary under paragraph (1).
            (3) Extension of time period.--
                    (A) In general.--Subject to subparagraph 
                (B), the Secretary may extend the time period 
                established under paragraph (1) if the 
                Secretary determines, in the sole discretion of 
                the Secretary, that the owner or operator of 
                the project cannot complete the construction or 
                demonstration phase of the project within the 
                time period due to circumstances beyond the 
                control of the owner or operator.
                    (B) Limitation.--The Secretary shall not 
                extend a time period under subparagraph (A) by 
                more than 4 years.
    (g) Fee Title.--The Secretary may vest fee title or other 
property interests acquired under cost-share clean coal power 
initiative agreements under this subtitle in any entity, 
including the United States.
    (h) Data Protection.--For a period not exceeding 5 years 
after completion of the operations phase of a cooperative 
agreement, the Secretary may provide appropriate protections 
(including exemptions from subchapter II of chapter 5 of title 
5, United States Code) against the dissemination of information 
that--
            (1) results from demonstration activities carried 
        out under the clean coal power initiative program; and
            (2) would be a trade secret or commercial or 
        financial information that is privileged or 
        confidential if the information had been obtained from 
        and first produced by a non-Federal party participating 
        in a clean coal power initiative project.
    (i) Applicability.--No technology, or level of emission 
reduction, solely by reason of the use of the technology, or 
the achievement of the emission reduction, by 1 or more 
facilities receiving assistance under this Act, shall be 
considered to be--
            (1) adequately demonstrated for purposes of section 
        111 of the Clean Air Act (42 U.S.C. 7411);
            (2) achievable for purposes of section 169 of that 
        Act (42 U.S.C. 7479); or
            (3) achievable in practice for purposes of section 
        171 of that Act (42 U.S.C. 7501).

SEC. 403. REPORT.

    Not later than 1 year after the date of enactment of this 
Act, and once every 2 years thereafter through 2014, the 
Secretary, in consultation with other appropriate Federal 
agencies, shall submit to Congress a report describing--
            (1) the technical milestones set forth in section 
        402 and how those milestones ensure progress toward 
        meeting the requirements of subsections (b)(1)(B) and 
        (b)(2) of section 402; and
            (2) the status of projects funded under this 
        subtitle.

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

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

                    Subtitle B--Clean Power Projects

SEC. 411. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

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

SEC. 412. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY IN 
                    SERVICE.

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

SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.

    (a) In General.--Subject to the availability of 
appropriations, the Secretary shall carry out a project to 
demonstrate production of energy from coal mined in the western 
United States using integrated gasification combined cycle 
technology (referred to in this section as the ``demonstration 
project'').
    (b) Components.--The demonstration project--
            (1) may include repowering of existing facilities;
            (2) shall be designed to demonstrate the ability to 
        use coal with an energy content of not more than 9,000 
        Btu/lb.; and
            (3) shall be capable of removing and sequestering 
        carbon dioxide emissions.
    (c) All Types of Western Coals.--Notwithstanding the 
foregoing, and to the extent economically feasible, the 
demonstration project shall also be designed to demonstrate the 
ability to use a variety of types of coal (including 
subbituminous and bituminous coal with an energy content of up 
to 13,000 Btu/lb.) mined in the western United States.
    (d) Location.--The demonstration project shall be located 
in a western State at an altitude of greater than 4,000 feet 
above sea level.
    (e) Cost Sharing.--The Federal share of the cost of the 
demonstration project shall be determined in accordance with 
section 988.
    (f) Loan Guarantees.--Notwithstanding title XIV, the 
demonstration project shall not be eligible for Federal loan 
guarantees.

SEC. 414. 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. 415. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for 
at least 5 petroleum coke gasification projects.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

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

SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM ILLINOIS BASIN 
                    COAL.

    (a) In General.--The Secretary shall carry out a program to 
evaluate the commercial and technical viability of advanced 
technologies for the production of Fischer-Tropsch 
transportation fuels, and other transportation fuels, 
manufactured from Illinois basin coal, including the capital 
modification of existing facilities and the construction of 
testing facilities under subsection (b).
    (b) Facilities.--For the purpose of evaluating the 
commercial and technical viability of different processes for 
producing Fischer-Tropsch transportation fuels, and other 
transportation fuels, from Illinois basin coal, the Secretary 
shall support the use and capital modification of existing 
facilities and the construction of new facilities at--
            (1) Southern Illinois University Coal Research 
        Center;
            (2) University of Kentucky Center for Applied 
        Energy Research; and
            (3) Energy Center at Purdue University.
    (c) Gasification Products Test Center.--In conjunction with 
the activities described in subsections (a) and (b), the 
Secretary shall construct a test center to evaluate and confirm 
liquid and gas products from syngas catalysis in order that the 
system has an output of at least 500 gallons of Fischer-Tropsch 
transportation fuel per day in a 24-hour operation.
    (d) Milestones.--
            (1) Selection of processes.--Not later than 180 
        days after the date of enactment of this Act, the 
        Secretary shall select processes for evaluating the 
        commercial and technical viability of different 
        processes of producing Fischer-Tropsch transportation 
        fuels, and other transportation fuels, from Illinois 
        basin coal.
            (2) Agreements.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary shall 
        offer to enter into agreements--
                    (A) to carry out the activities described 
                in this section, at the facilities described in 
                subsection (b); and
                    (B) for the capital modifications or 
                construction of the facilities at the locations 
                described in subsection (b).
            (3) Evaluations.--Not later than 3 years after the 
        date of enactment of the Act, the Secretary shall 
        begin, at the facilities described in subsection (b), 
        evaluation of the technical and commercial viability of 
        different processes of producing Fischer-Tropsch 
        transportation fuels, and other transportation fuels, 
        from Illinois basin coal.
            (4) Construction of facilities.--
                    (A) In general.--The Secretary shall 
                construct the facilities described in 
                subsection (b) at the lowest cost practicable.
                    (B) Grants or agreements.--The Secretary 
                may make grants or enter into agreements or 
                contracts with the institutions of higher 
                education described in subsection (b).
    (e) Cost Sharing.--The cost of making grants under this 
section shall be shared in accordance with section 988.
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $85,000,000 for 
the period of fiscal years 2006 through 2010.

                 Subtitle C--Coal and Related Programs

SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.

    (a) Amendment.--The Energy Policy Act of 1992 (42 U.S.C. 
13201 et seq.) is amended by adding at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. PURPOSES.

    ``The purposes of this title are to--
            ``(1) promote national energy policy and energy 
        security, diversity, and economic competitiveness 
        benefits that result from the increased use of coal;
            ``(2) mitigate financial risks, reduce the cost of 
        clean coal generation, and increase the marketplace 
        acceptance of clean coal generation and pollution 
        control equipment and processes; and
            ``(3) facilitate the environmental performance of 
        clean coal generation.

``SEC. 3102. AUTHORIZATION OF PROGRAM.

    ``(a) In General.--The Secretary shall carry out a program 
of financial assistance to--
            ``(1) facilitate the production and generation of 
        coal-based power, through the deployment of clean coal 
        electric generating equipment and processes that, 
        compared to equipment or processes that are in 
        operation on a full scale--
                    ``(A) improve--
                            ``(i) energy efficiency; or
                            ``(ii) environmental performance 
                        consistent with relevant Federal and 
                        State clean air requirements, including 
                        those promulgated under the Clean Air 
                        Act (42 U.S.C. 7401 et seq.); and
                    ``(B) are not yet cost competitive; and
            ``(2) facilitate the utilization of existing coal-
        based electricity generation plants through projects 
        that--
                    ``(A) deploy advanced air pollution control 
                equipment and processes; and
                    ``(B) are designed to voluntarily enhance 
                environmental performance above current 
                applicable obligations under the Clean Air Act 
                and State implementation efforts pursuant to 
                such Act.
    ``(b) Financial Criteria.--As determined by the Secretary 
for a particular project, financial assistance under this title 
shall be in the form of--
            ``(1) cost-sharing of an appropriate percentage of 
        the total project cost, not to exceed 50 percent as 
        calculated under section 988 of the Energy Policy Act 
        of 2005; or
            ``(2) financial assistance, including grants, 
        cooperative agreements, or loans as authorized under 
        this Act or other statutory authority of the Secretary.

``SEC. 3103. GENERATION PROJECTS.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(1) may include--
            ``(1) equipment or processes previously supported 
        by a Department of Energy program;
            ``(2) advanced combustion equipment and processes 
        that the Secretary determines will be cost-effective 
        and could substantially contribute to meeting 
        environmental or energy needs, including gasification, 
        gasification fuel cells, gasification coproduction, 
        oxidation combustion techniques, ultra-supercritical 
        boilers, and chemical looping; and
            ``(3) hybrid gasification/combustion systems, 
        including systems integrating fuel cells with 
        gasification or combustion units.
    ``(b) Criteria.--The Secretary shall establish criteria for 
the selection of generation projects under section 3102(a)(1). 
The Secretary may modify the criteria as appropriate to reflect 
improvements in equipment, except that the criteria shall not 
be modified to be less stringent. The selection criteria shall 
include--
            ``(1) prioritization of projects whose installation 
        is likely to result in significant air quality 
        improvements in nonattainment air quality areas;
            ``(2) prioritization of projects whose installation 
        is likely to result in lower emission rates of 
        pollution;
            ``(3) prioritization of projects that result in the 
        repowering or replacement of older, less efficient 
        units;
            ``(4) documented broad interest in the procurement 
        of the equipment and utilization of the processes used 
        in the projects by owners or operators of facilities 
        for electricity generation;
            ``(5) equipment and processes beginning in 2006 
        through 2011 that are projected to achieve a thermal 
        efficiency of--
                    ``(A) 40 percent for coal of more than 
                9,000 Btu per pound based on higher heating 
                values;
                    ``(B) 38 percent for coal of 7,000 to 9,000 
                Btu per pound passed on higher heating values; 
                and
                    ``(C) 36 percent for coal of less than 
                7,000 Btu per pound based on higher heating 
                values;
        except that energy used for coproduction or 
        cogeneration shall not be counted in calculating the 
        thermal efficiency under this paragraph; and
            ``(6) equipment and processes beginning in 2012 and 
        2013 that are projected to achieve a thermal efficiency 
        of--
                    ``(A) 45 percent for coal of more than 
                9,000 Btu per pound based on higher heating 
                values;
                    ``(B) 44 percent for coal of 7,000 to 9,000 
                Btu per pound passed on higher heating values; 
                and
                    ``(C) 40 percent for coal of less than 
                7,000 Btu per pound based on higher heating 
                values;
        except that energy used for coproduction or 
        cogeneration shall not be counted in calculating the 
        thermal efficiency under this paragraph
    ``(c) Program Balance and Priority.--In carrying out the 
program under section 3102(a)(1), the Secretary shall ensure, 
to the extent practicable, that--
            ``(1) between 25 percent and 75 percent of the 
        projects supported are for the sole purpose of 
        electrical generation; and
            ``(2) priority is given to projects that use 
        electrical generation equipment and processes that have 
        been developed and demonstrated and applied in actual 
        production of electricity, but are not yet cost-
        competitive, and that achieve greater efficiency and 
        environmental performance.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out 
section 3102(a)(1)--
            ``(1) $250,000,000 for fiscal year 2007;
            ``(2) $350,000,000 for fiscal year 2008;
            ``(3) $400,000,000 for each of fiscal years 2009 
        through 2012; and
            ``(4) $300,000,000 for fiscal year 2013.
    ``(e) Applicability.--No technology, or level of emission 
reduction shall be treated as adequately demonstrated for 
purpose of section 111 of the Clean Air Act (42 U.S.C. 7411), 
achievable for purposes of section 169 of that Act (42 U.S.C. 
7479), or achievable in practice for purposes of section 171 of 
that Act (42 U.S.C. 7501) solely by reason of the use of such 
technology, or the achievement of such emission reduction, by 1 
or more facilities receiving assistance under section 
3102(a)(1).

``SEC. 3104. AIR QUALITY ENHANCEMENT PROGRAM.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(2) shall--
            ``(1) utilize technologies that meet relevant 
        Federal and State clean air requirements applicable to 
        the unit or facility, including being adequately 
        demonstrated for purposes of section 111 of the Clean 
        Air Act (42 U.S.C. 7411), achievable for purposes of 
        section 169 of that Act (42 U.S.C. 7479), or achievable 
        in practice for purposes of section 171 of that Act (42 
        U.S.C. 7501); or
            ``(2) utilize equipment or processes that exceed 
        relevant Federal or State clean air requirements 
        applicable to the unit or facilities included in the 
        projects by achieving greater efficiency or 
        environmental performance.
    ``(b) Priority in Project Selection.--In making an award 
under section 3102(a)(2), the Secretary shall give priority 
to--
            ``(1) projects whose installation is likely to 
        result in significant air quality improvements in 
        nonattainment air quality areas or substantially reduce 
        the emission level of criteria pollutants and mercury 
        air emissions;
            ``(2) projects for pollution control that result in 
        the mitigation or collection of more than 1 pollutant; 
        and
            ``(3) projects designed to allow the use of the 
        waste byproducts or other byproducts of the equipment.
    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out 
section 3102(a)(2)--
            ``(1) $300,000,000 for fiscal year 2007;
            ``(2) $100,000,000 for fiscal year 2008;
            ``(3) $40,000,000 for fiscal year 2009;
            ``(4) $30,000,000 for fiscal year 2010; and
            ``(5) $30,000,000 for fiscal year 2011.
    ``(d) Applicability.--No technology, or level of emission 
reduction under subsection (a)(2) shall be treated as 
adequately demonstrated for purpose of Section 111 of the Clean 
Air Act (42 U.S.C. 7411), achievable for purposes of section 
169 of that Act (42 U.S.C. 7479), or achievable in practice for 
purposes of section 171 of that Act (42 U.S.C. 7501) solely by 
reason of the use of suchtechnology, or the achievement of such 
emission reduction, by 1 or more facilities receiving assistance under 
section 3102(a)(2).''.
    (b) Table of Contents Amendment.--The table of contents of 
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
amended by adding at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

    ``Sec. 3101. Purposes.
    ``Sec. 3102. Authorization of program.
    ``Sec. 3103. Generation projects.
    ``Sec. 3104. Air quality enhancement program.''.

                    Subtitle D--Federal Coal Leases

SEC. 431. SHORT TITLE.

    This subtitle may be cited as the ``Coal Leasing Amendments 
Act of 2005''.

SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is 
amended--
            (1) in the first sentence, by striking ``Any 
        person'' and inserting the following: ``(a)(1) Except 
        as provided in paragraph (3), on a finding by the 
        Secretary under paragraph (2), any person'';
            (2) in the second sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(b) The Secretary'';
            (3) in the third sentence, by striking ``The 
        minimum'' and inserting the following:
    ``(c) The minimum'';
            (4) in subsection (a) (as designated by paragraph 
        (1))--
                    (A) by striking ``upon'' and all that 
                follows and inserting the following: ``secure 
                modifications of the original coal lease by 
                including additional coal lands or coal 
                deposits contiguous or cornering to those 
                embraced in the lease.''; and
                    (B) by adding at the end the following:
    ``(2) A finding referred to in paragraph (1) is a finding 
by the Secretary that the modifications--
            ``(A) would be in the interest of the United 
        States;
            ``(B) would not displace a competitive interest in 
        the lands; and
            ``(C) would not include lands or deposits that can 
        be developed as part of another potential or existing 
        operation.
    ``(3) In no case shall the total area added by 
modifications to an existing coal lease under paragraph (1)--
            ``(A) exceed 960 acres; or
            ``(B) add acreage larger than that in the original 
        lease.''.

SEC. 433. APPROVAL OF LOGICAL MINING UNITS.

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

SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) 
is amended--
            (1) in the first sentence, by striking ``Each 
        lease'' and inserting the following: ``(1) Each 
        lease'';
            (2) in the second sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(2) The Secretary'';
            (3) in the third sentence, by striking ``Such 
        advance royalties'' and inserting the following:
    ``(3) Advance royalties described in paragraph (2)'';
            (4) in the seventh sentence, by striking ``The 
        Secretary'' and inserting the following:
    ``(6) The Secretary'';
            (5) in the last sentence, by striking ``Nothing'' 
        and inserting the following:
    ``(7) Nothing'';
            (6) by striking the fourth, fifth, and sixth 
        sentences; and
            (7) by inserting after paragraph (3) (as designated 
        by paragraph (3)) the following:
    ``(4) Advance royalties described in paragraph (2) shall be 
computed--
            ``(A) based on--
                    ``(i) the average price in the spot market 
                for sales of comparable coal from the same 
                region during the last month of each applicable 
                continued operation year; or
                    ``(ii) in the absence of a spot market for 
                comparable coal from the same region, by using 
                a comparable method established by the 
                Secretary of the Interior to capture the 
                commercial value of coal; and
            ``(B) based on commercial quantities, as defined by 
        regulation by the Secretary of the Interior.
    ``(5) The aggregate number of years during the period of 
any lease for which advance royalties may be accepted in lieu 
of the condition of continued operation shall not exceed 20 
years.
    ``(6) The amount of any production royalty paid for any 
year shall be reduced (but not below 0) by the amount of any 
advance royalties paid under a lease described in paragraph (5) 
to the extent that the advance royalties have not been used to 
reduce production royalties for a prior year.''.

SEC. 435. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE 
                    OPERATION AND RECLAMATION PLAN.

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

SEC. 436. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO 
                    BONUS BIDS.

    Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a)) 
is amended by adding at the end the following:
    ``(4)(A) The Secretary shall not require a surety bond or 
any other financial assurance to guarantee payment of deferred 
bonus bid installments with respect to any coallease issued on 
a cash bonus bid to a lessee or successor in interest having a history 
of a timely payment of noncontested coal royalties and advanced coal 
royalties in lieu of production (where applicable) and bonus bid 
installment payments.
    ``(B) The Secretary may waive any requirement that a lessee 
provide a surety bond or other financial assurance to guarantee 
payment of deferred bonus bid installment with respect to any 
coal lease issued before the date of the enactment of the 
Energy Policy Act of 2005 only if the Secretary determines that 
the lessee has a history of making timely payments referred to 
in subparagraph (A).
    ``(5) Notwithstanding any other provision of law, if the 
lessee under a coal lease fails to pay any installment of a 
deferred cash bonus bid within 10 days after the Secretary 
provides written notice that payment of the installment is past 
due--
            ``(A) the lease shall automatically terminate; and
            ``(B) any bonus payments already made to the United 
        States with respect to the lease shall not be returned 
        to the lessee or credited in any future lease sale.''.

SEC. 437. INVENTORY REQUIREMENT.

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

SEC. 438. APPLICATION OF AMENDMENTS.

    The amendments made by this subtitle apply with respect to 
any coal lease issued before, on, or after the date of the 
enactment of this Act.

                         TITLE V--INDIAN ENERGY

SEC. 501. SHORT TITLE.

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

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

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

             ``OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

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

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

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

SEC. 503. INDIAN ENERGY.

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

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

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

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

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

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

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

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

    ``(a) Leases and Business Agreements.--In accordance with 
this section--
            ``(1) an Indian tribe may, at the discretion of the 
        Indian tribe, enter into a lease or business agreement 
        for the purpose of energy resource development on 
        tribal land, including a lease or business agreement 
        for--
                    ``(A) exploration for, extraction of, 
                processing of, or other development of the 
                energy mineral resources of the Indian tribe 
                located on tribal land; or
                    ``(B) construction or operation of--
                            ``(i) an electric generation, 
                        transmission, or distribution facility 
                        located on tribal land; or
                            ``(ii) a facility to process or 
                        refine energy resources developed on 
                        tribal land; and
            ``(2) a lease or business agreement described in 
        paragraph (1) shall not require review by or the 
        approval of the Secretary under section 2103 of the 
        Revised Statutes (25 U.S.C. 81), or any other provision 
        of law, if--
                    ``(A) the lease or business agreement is 
                executed pursuant to a tribal energy resource 
                agreement approved by the Secretary under 
                subsection (e);
                    ``(B) the term of the lease or business 
                agreement does not exceed--
                            ``(i) 30 years; or
                            ``(ii) in the case of a lease for 
                        the production of oil resources, gas 
                        resources, or both, 10 years and as 
                        long thereafter as oil or gas is 
                        produced in paying quantities; and
                    ``(C) the Indian tribe has entered into a 
                tribal energy resource agreement with the 
                Secretary, as described in subsection (e), 
                relating to the development of energy resources 
                on tribal land (including the periodic review 
                and evaluation of the activities of the Indian 
                tribe under the agreement, to be conducted 
                pursuant to subsection (e)(2)(D)(i)).
    ``(b) Rights-of-Way for Pipelines or Electric Transmission 
or Distribution Lines.--An Indian tribe may grant a right-of-
way over tribal land for a pipeline or an electric transmission 
or distribution line without review or approval by the 
Secretary if--
            ``(1) the right-of-way is executed in accordance 
        with a tribal energy resource agreement approved by the 
        Secretary under subsection (e);
            ``(2) the term of the right-of-way does not exceed 
        30 years;
            ``(3) the pipeline or electric transmission or 
        distribution line serves--
                    ``(A) an electric generation, transmission, 
                or distribution facility located on tribal 
                land; or
                    ``(B) a facility located on tribal land 
                that processes or refines energy resources 
                developed on tribal land; and
            ``(4) the Indian tribe has entered into a tribal 
        energy resource agreement with the Secretary, as 
        described in subsection (e), relating to the 
        development of energy resources on tribal land 
        (including the periodic review and evaluation of the 
        activities of the Indian tribe under an agreement 
        described in subparagraphs (D) and (E) of subsection 
        (e)(2)).
    ``(c) Renewals.--A lease or business agreement entered 
into, or a right-of-way granted, by an Indian tribe under this 
section may be renewed at the discretion of the Indian tribe in 
accordance with this section.
    ``(d) Validity.--No lease, business agreement, or right-of-
way relating to the development of tribal energy resources 
under this section shall be valid unless the lease, business 
agreement, or right-of-way is authorized by atribal energy 
resource agreement approved by the Secretary under subsection (e)(2).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On the date on which regulations are 
        promulgated under paragraph (8), an Indian tribe may 
        submit to the Secretary for approval a tribal energy 
        resource agreement governing leases, business 
        agreements, and rights-of-way under this section.
            ``(2)(A) Not later than 270 days after the date on 
        which the Secretary receives a tribal energy resource 
        agreement from an Indian tribe under paragraph (1), or 
        not later than 60 days after the Secretary receives a 
        revised tribal energy resource agreement from an Indian 
        tribe under paragraph (4)(C) (or a later date, as 
        agreed to by the Secretary and the Indian tribe), the 
        Secretary shall approve or disapprove the tribal energy 
        resource agreement.
            ``(B) The Secretary shall approve a tribal energy 
        resource agreement submitted under paragraph (1) if--
                    ``(i) the Secretary determines that the 
                Indian tribe has demonstrated that the Indian 
                tribe has sufficient capacity to regulate the 
                development of energy resources of the Indian 
                tribe;
                    ``(ii) the tribal energy resource agreement 
                includes provisions required under subparagraph 
                (D); and
                    ``(iii) the tribal energy resource 
                agreement includes provisions that, with 
                respect to a lease, business agreement, or 
                right-of-way under this section--
                            ``(I) ensure the acquisition of 
                        necessary information from the 
                        applicant for the lease, business 
                        agreement, or right-of-way;
                            ``(II) address the term of the 
                        lease or business agreement or the term 
                        of conveyance of the right-of-way;
                            ``(III) address amendments and 
                        renewals;
                            ``(IV) address the economic return 
                        to the Indian tribe under leases, 
                        business agreements, and rights-of-way;
                            ``(V) address technical or other 
                        relevant requirements;
                            ``(VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                            ``(VII) ensure compliance with all 
                        applicable environmental laws, 
                        including a requirement that each 
                        lease, business agreement, and right-
                        of-way state that the lessee, operator, 
                        or right-of-way grantee shall comply 
                        with all such laws;
                            ``(VIII) identify final approval 
                        authority;
                            ``(IX) provide for public 
                        notification of final approvals;
                            ``(X) establish a process for 
                        consultation with any affected States 
                        regarding off-reservation impacts, if 
                        any, identified under subparagraph 
                        (C)(i);
                            ``(XI) describe the remedies for 
                        breach of the lease, business 
                        agreement, or right-of-way;
                            ``(XII) require each lease, 
                        business agreement, and right-of-way to 
                        include a statement that, if any of its 
                        provisions violates an express term or 
                        requirement of the tribal energy 
                        resource agreement pursuant to which 
                        the lease, business agreement, or 
                        right-of-way was executed--
                                    ``(aa) the provision shall 
                                be null and void; and
                                    ``(bb) if the Secretary 
                                determines the provision to be 
                                material, the Secretary may 
                                suspend or rescind the lease, 
                                business agreement, or right-
                                of-way or take other 
                                appropriate action that the 
                                Secretary determines to be in 
                                the best interest of the Indian 
                                tribe;
                            ``(XIII) require each lease, 
                        business agreement, and right-of-way to 
                        provide that it will become effective 
                        on the date on which a copy of the 
                        executed lease, business agreement, or 
                        right-of-way is delivered to the 
                        Secretary in accordance with 
                        regulations promulgated under paragraph 
                        (8);
                            ``(XIV) include citations to tribal 
                        laws, regulations, or procedures, if 
                        any, that set out tribal remedies that 
                        must be exhausted before a petition may 
                        be submitted to the Secretary under 
                        paragraph (7)(B);
                            ``(XV) specify the financial 
                        assistance, if any, to be provided by 
                        the Secretary to the Indian tribe to 
                        assist in implementation of the tribal 
                        energy resource agreement, including 
                        environmental review of individual 
                        projects; and
                            ``(XVI) in accordance with the 
                        regulations promulgated by the 
                        Secretary under paragraph (8), require 
                        that the Indian tribe, as soon as 
                        practicable after receipt of a notice 
                        by the Indian tribe, give written 
                        notice to the Secretary of--
                                    ``(aa) any breach or other 
                                violation by another party of 
                                any provision in a lease, 
                                business agreement, or right-
                                of-way entered into under the 
                                tribal energy resource 
                                agreement; and
                                    ``(bb) any activity or 
                                occurrence under a lease, 
                                business agreement, or right-
                                of-way that constitutes a 
                                violation of Federal or tribal 
                                environmental laws.
                    ``(C) Tribal energy resource agreements 
                submitted under paragraph (1) shall establish, 
                and include provisions to ensure compliance 
                with, an environmental review process that, 
                with respect to a lease, business agreement, or 
                right-of-way under this section, provides for, 
                at a minimum--
                            ``(i) the identification and 
                        evaluation of all significant 
                        environmental effects (as compared to a 
                        no-action alternative), including 
                        effects on cultural resources;
                            ``(ii) the identification of 
                        proposed mitigation measures, if any, 
                        and incorporation of appropriate 
                        mitigation measures into the lease, 
                        business agreement, or right-of-way;
                            ``(iii) a process for ensuring 
                        that--
                                    ``(I) the public is 
                                informed of, and has an 
                                opportunity to comment on, the 
                                environmental impacts of the 
                                proposed action; and
                                    ``(II) responses to 
                                relevant and substantive 
                                comments are provided, before 
                                tribal approval of the lease, 
                                business agreement, or right-
                                of-way;
                            ``(iv) sufficient administrative 
                        support and technical capability to 
                        carry out the environmental review 
                        process; and
                            ``(v) oversight by the Indian tribe 
                        of energy development activities by any 
                        other party under any lease, business 
                        agreement, or right-of-way entered into 
                        pursuant to the tribal energy resource 
                        agreement, to determine whether the 
                        activities are in compliance with the 
                        tribal energy resource agreement and 
                        applicable Federal environmental laws.
                    ``(D) A tribal energy resource agreement 
                between the Secretary and an Indian tribe under 
                this subsection shall include--
                            ``(i) provisions requiring the 
                        Secretary to conduct a periodic review 
                        and evaluation to monitor the 
                        performance of the activities of the 
                        Indian tribe associated with the 
                        development of energy resources under 
                        the tribal energy resource agreement; 
                        and
                            ``(ii) if a periodic review and 
                        evaluation, or an investigation, by the 
                        Secretary of any breach or violation 
                        described in a notice provided by the 
                        Indian tribe to the Secretary in 
                        accordance with subparagraph 
                        (B)(iii)(XVI), results in a finding by 
                        the Secretary of imminent jeopardy to a 
                        physical trust asset arising from a 
                        violation of the tribal energy resource 
                        agreement or applicable Federal laws, 
                        provisions authorizing the Secretary to 
                        take actions determined by the 
                        Secretary to be necessary to protect 
                        the asset, including reassumption of 
                        responsibility for activities 
                        associated with the development of 
                        energy resources on tribal land until 
                        the violation and any condition that 
                        caused the jeopardy are corrected.
                    ``(E) Periodic review and evaluation under 
                subparagraph (D) shall be conducted on an 
                annual basis, except that, after the third 
                annual review and evaluation, the Secretary and 
                the Indian tribe may mutually agree to amend 
                the tribal energy resource agreement to 
                authorize the review and evaluation under 
                subparagraph (D) to be conducted once every 2 
                years.
            ``(3) The Secretary shall provide notice and 
        opportunity for public comment on tribal energy 
        resource agreements submitted for approval under 
        paragraph (1). The Secretary's review of a tribal 
        energy resource agreement shall be limited to 
        activities specified by the provisions of the tribal 
        energy resource agreement.
            ``(4) If the Secretary disapproves a tribal energy 
        resource agreement submitted by an Indian tribe under 
        paragraph (1), the Secretary shall, not later than 10 
        days after the date of disapproval--
                    ``(A) notify the Indian tribe in writing of 
                the basis for the disapproval;
                    ``(B) identify what changes or other 
                actions are required to address the concerns of 
                the Secretary; and
                    ``(C) provide the Indian tribe with an 
                opportunity to revise and resubmit the tribal 
                energy resource agreement.
            ``(5) If an Indian tribe executes a lease or 
        business agreement, or grants a right-of-way, in 
        accordance with a tribal energy resource agreement 
        approved under this subsection, the Indian tribe shall, 
        in accordance with the process and requirements under 
        regulations promulgated under paragraph (8), provide to 
        the Secretary--
                    ``(A) a copy of the lease, business 
                agreement, or right-of-way document (including 
                all amendments to and renewals of the 
                document); and
                    ``(B) in the case of a tribal energy 
                resource agreement or a lease, business 
                agreement, or right-of-way that permits 
                payments to be made directly to the Indian 
                tribe, information and documentation of those 
                payments sufficient to enable the Secretary to 
                discharge the trust responsibility of the 
                United States to enforce the terms of, and 
                protect the rights of the Indian tribe under, 
                the lease, business agreement, or right-of-way.
            ``(6)(A) In carrying out this section, the 
        Secretary shall--
                    ``(i) act in accordance with the trust 
                responsibility of the United States relating to 
                mineral and other trust resources; and
                    ``(ii) act in good faith and in the best 
                interests of the Indian tribes.
            ``(B) Subject to the provisions of subsections 
        (a)(2), (b), and (c) waiving the requirement of 
        Secretarial approval of leases, business agreements, 
        and rights-of-way executed pursuant to tribal energy 
        resource agreements approved under this section, and 
        the provisions of subparagraph (D), nothing in this 
        section shall absolve the United States from any 
        responsibility to Indians or Indian tribes, including, 
        but not limited to, those which derive from the trust 
        relationship or from any treaties, statutes, and other 
        laws of the United States, Executive Orders, or 
        agreements between the United States and any Indian 
        tribe.
            ``(C) The Secretary shall continue to fulfill the 
        trust obligation of the United States to ensure that 
        the rights and interests of an Indian tribe are 
        protected if--
                    ``(i) any other party to a lease, business 
                agreement, or right-of-way violates any 
                applicable Federal law or the terms of any 
                lease, business agreement, or right-of-way 
                under this section; or
                    ``(ii) any provision in a lease, business 
                agreement, or right-of-way violates the tribal 
                energy resource agreement pursuant to which the 
                lease, business agreement, or right-of-way was 
                executed.
            ``(D)(i) In this subparagraph, the term `negotiated 
        term' means any term or provision that is negotiated by 
        an Indian tribe and any other party to a lease, 
        business agreement, or right-of-way entered into 
        pursuant to an approved tribal energy resource 
        agreement.
            ``(ii) Notwithstanding subparagraph (B), the United 
        States shall not be liable to any party (including any 
        Indian tribe) for any negotiated term of, or any loss 
        resulting from the negotiated terms of, a lease, 
        business agreement, or right-of-way executed pursuant 
        to and in accordance with a tribal energy resource 
        agreement approved by the Secretary under paragraph 
        (2).
            ``(7)(A) In this paragraph, the term `interested 
        party' means any person (including an entity) that has 
        demonstrated that an interest of the person has 
        sustained, or will sustain, an adverse environmental 
        impact as a result of the failure of an Indian tribe to 
        comply with a tribal energy resource agreement of the 
        Indian tribe approved by the Secretary under paragraph 
        (2).
            ``(B) After exhaustion of any tribal remedy, and in 
        accordance with regulations promulgated by the 
        Secretary under paragraph (8), an interested party may 
        submit to the Secretary a petition to review the 
        compliance by an Indian tribe with a tribal energy 
        resource agreement of the Indian tribe approved by the 
        Secretary under paragraph (2).
            ``(C)(i) Not later than 20 days after the date on 
        which the Secretary receives a petition under 
        subparagraph (B), the Secretary shall--
                    ``(I) provide to the Indian tribe a copy of 
                the petition; and
                    ``(II) consult with the Indian tribe 
                regarding any noncompliance alleged in the 
                petition.
            ``(ii) Not later than 45 days after the date on 
        which a consultation under clause (i)(II) takes place, 
        the Indian tribe shall respond to any claim made in a 
        petition under subparagraph (B).
            ``(iii) The Secretary shall act in accordance with 
        subparagraphs (D) and (E) only if the Indian tribe--
                    ``(I) denies, or fails to respond to, each 
                claim made in the petition within the period 
                described in clause (ii); or
                    ``(II) fails, refuses, or is unable to cure 
                or otherwise resolve each claim made in the 
                petition within a reasonable period, as 
                determined by the Secretary, after the 
                expiration of the period described in clause 
                (ii).
            ``(D)(i) Not later than 120 days after the date on 
        which the Secretary receives a petition under 
        subparagraph (B), the Secretary shall determine whether 
        the Indian tribe is not in compliance with the tribal 
        energy resource agreement.
            ``(ii) The Secretary may adopt procedures under 
        paragraph (8) authorizing an extension of time, not to 
        exceed 120 days, for making the determination under 
        clause (i) in any case in which the Secretary 
        determines that additional time is necessary to 
        evaluate the allegations of the petition.
            ``(iii) Subject to subparagraph (E), if the 
        Secretary determines that the Indian tribe is not in 
        compliance with the tribal energy resource agreement, 
        the Secretary shall take such action as the Secretary 
        determines to be necessary to ensure compliance with 
        the tribal energy resource agreement, including--
                    ``(I) temporarily suspending any activity 
                under a lease, business agreement, or right-of-
                way under this section until the Indian tribe 
                is in compliance with the approved tribal 
                energy resource agreement; or
                    ``(II) rescinding approval of all or part 
                of the tribal energy resource agreement, and if 
                all of the agreement is rescinded, reassuming 
                the responsibility for approval of any future 
                leases, business agreements, or rights-of-way 
                described in subsection (a) or (b).
            ``(E) Before taking an action described in 
        subparagraph (D)(iii), the Secretary shall--
                    ``(i) make a written determination that 
                describes the manner in which the tribal energy 
                resource agreement has been violated;
                    ``(ii) provide the Indian tribe with a 
                written notice of the violations together with 
                the written determination; and
                    ``(iii) before taking any action described 
                in subparagraph (D)(iii) or seeking any other 
                remedy, provide the Indian tribe with a hearing 
                and a reasonable opportunity to attain 
                compliance with the tribal energy resource 
                agreement.
            ``(F) An Indian tribe described in subparagraph (E) 
        shall retain all rights to appeal under any regulation 
        promulgated by the Secretary.
            ``(8) Not later than 1 year after the date of 
        enactment of the Energy Policy Act of 2005, the 
        Secretary shall promulgate regulations that implement 
        this subsection, including--
                    ``(A) criteria to be used in determining 
                the capacity of an Indian tribe under paragraph 
                (2)(B)(i), including the experience of the 
                Indian tribe in managing natural resources and 
                financial and administrative resources 
                available for use by the Indian tribe in 
                implementing the approved tribal energy 
                resource agreement of the Indian tribe;
                    ``(B) a process and requirements in 
                accordance with which an Indian tribe may--
                            ``(i) voluntarily rescind a tribal 
                        energy resource agreement approved by 
                        the Secretary under this subsection; 
                        and
                            ``(ii) return to the Secretary the 
                        responsibility to approve any future 
                        lease, business agreement, or right-of-
                        way under this subsection;
                    ``(C) provisions establishing the scope of, 
                and procedures for, the periodic review and 
                evaluation described in subparagraphs (D) and 
                (E) of paragraph (2), including provisions for 
                review of transactions, reports, site 
                inspections, and any other review activities 
                the Secretary determines to be appropriate; and
                    ``(D) provisions describing final agency 
                actions after exhaustion of administrative 
                appeals from determinations of the Secretary 
                under paragraph (7).
    ``(f) No Effect on Other Law.--Nothing in this section 
affects the application of--
            ``(1) any Federal environmental law;
            ``(2) the Surface Mining Control and Reclamation 
        Act of 1977 (30 U.S.C. 1201 et seq.); or
            ``(3) except as otherwise provided in this title, 
        the Indian Mineral Development Act of 1982 (25 U.S.C. 
        2101 et seq.).
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary such sums as are 
necessary for each of fiscal years 2006 through 2016 to carry 
out this section and to make grants or provide other 
appropriate assistance to Indian tribes to assist the Indian 
tribes in developing and implementing tribal energy resource 
agreements in accordance with this section.

``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

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

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

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

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

SEC. 504. CONSULTATION WITH INDIAN TRIBES.

    In carrying out this title and the amendments made by this 
title, the Secretary and the Secretary of the Interior shall, 
as appropriate and to the maximum extent practicable, involve 
and consult with Indian tribes.

SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT AND ELECTRIFICATION.

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

SEC. 506. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

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

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

SEC. 601. SHORT TITLE.

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

SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

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

SEC. 603. MAXIMUM ASSESSMENT.

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

SEC. 604. DEPARTMENT LIABILITY LIMIT.

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

SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.

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

SEC. 606. REPORTS.

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

SEC. 607. INFLATION ADJUSTMENT.

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

SEC. 608. TREATMENT OF MODULAR REACTORS.

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

SEC. 609. APPLICABILITY.

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

SEC. 610. CIVIL PENALTIES.

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

                  Subtitle B--General Nuclear Matters

SEC. 621. LICENSES.

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

SEC. 622. NUCLEAR REGULATORY COMMISSION SCHOLARSHIP AND FELLOWSHIP 
                    PROGRAM.

    (a) In General.--Chapter 19 of the Atomic Energy Act of 
1954 is amended by inserting after section 242 (42 U.S.C. 
2015a) the following:

``SEC. 243. SCHOLARSHIP AND FELLOWSHIP PROGRAM.

    ``a. Scholarship Program.--To enable students to study, for 
at least 1 academic semester or equivalent term, science, 
engineering, or another field of study that the Commission 
determines is in a critical skill area related to the 
regulatory mission of the Commission, the Commission may carry 
out a program to--
            ``(1) award scholarships to undergraduate students 
        who--
                    ``(A) are United States citizens; and
                    ``(B) enter into an agreement under 
                subsection c. to be employed by the Commission 
                in the area of study for which the scholarship 
                is awarded.
    ``b. Fellowship Program.--To enable students to pursue 
education in science, engineering, or another field of study 
that the Commission determines is in a critical skill area 
related to its regulatory mission, in a graduate or 
professional degree program offered by an institution of higher 
education in the United States, the Commission may carry out a 
program to--
            ``(1) award fellowships to graduate students who--
                    ``(A) are United States citizens; and
                    ``(B) enter into an agreement under 
                subsection c. to be employed by the Commission 
                in the area of study for which the fellowship 
                is awarded.
    ``c. Requirements.--
            ``(1) In general.--As a condition of receiving a 
        scholarship or fellowship under subsection a. or b., a 
        recipient of the scholarship or fellowship shall enter 
        into an agreement with the Commission under which, in 
        return for the assistance, the recipient shall--
                    ``(A) maintain satisfactory academic 
                progress in the studies of the recipient, as 
                determined by criteria established by the 
                Commission;
                    ``(B) agree that failure to maintain 
                satisfactory academic progress shall constitute 
                grounds on which the Commission may terminate 
                the assistance;
                    ``(C) on completion of the academic course 
                of study in connection with which the 
                assistance was provided, and in accordance with 
                criteria established by the Commission, engage 
                in employment by the Commission for a period 
                specified by the Commission, that shall be not 
                less than 1 time and not more than 3 times the 
                period for which the assistance was provided; 
                and
                    ``(D) if the recipient fails to meet the 
                requirements of subparagraph (A), (B), or (C), 
                reimburse the United States Government for--
                            ``(i) the entire amount of the 
                        assistance provided the recipient under 
                        the scholarship or fellowship; and
                            ``(ii) interest at a rate 
                        determined by the Commission.
            ``(2) Waiver or suspension.--The Commission may 
        establish criteria for the partial or total waiver or 
        suspension of any obligation of service or payment 
        incurred by a recipient of a scholarship or fellowship 
        under this section.
    ``d. Competitive Process.--Recipients of scholarships or 
fellowships under this section shall be selected through a 
competitive process primarily on the basis of academic merit 
and such other criteria as the Commission may establish, 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, 1885b).
    ``e. Direct Appointment.--The Commission may appoint 
directly, with no further competition, public notice, or 
consideration of any other potential candidate, an individual 
who has--
            ``(1) received a scholarship or fellowship awarded 
        by the Commission under this section; and
            ``(2) completed the academic program for which the 
        scholarship or fellowship was awarded.''.
    (b) Conforming Amendment.--The table of sections of the 
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by 
adding after the item relating to section 242 the following:

``Sec. 243. Scholarship and fellowship program.''.

SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.

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

SEC. 624. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL 
                    RETIREES.

    (a) In General.--Chapter 14 of the Atomic Energy Act of 
1954 (42 U.S.C. 2201 et seq.) is amended by adding at the end 
the following:

``SEC. 170C. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL 
                    RETIREES.

    ``a. In General.--The Commission may waive the application 
of section 8344 or 8468 of title 5, United States Code, on a 
case-by-case basis for employment of an annuitant--
            ``(1) in a position of the Commission for which 
        there is exceptional difficulty in recruiting or 
        retaining a qualified employee; or
            ``(2) when a temporary emergency hiring need 
        exists.
    ``b. Procedures.--The Commission shall prescribe procedures 
for the exercise of authority under this section, including--
            ``(1) criteria for any exercise of authority; and
            ``(2) procedures for a delegation of authority.
    ``c. Effect of Waiver.--An employee as to whom a waiver 
under this section is in effect shall not be considered an 
employee for purposes of subchapter II of chapter 83, or 
chapter 84, of title 5, United States Code.''.
    (b) Conforming Amendment.--The table of sections of the 
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by 
adding at the end of the items relating to chapter 14 the 
following:

``Sec. 170C. Elimination of pension offset for certain rehired Federal 
          retirees.''.

SEC. 625. ANTITRUST REVIEW.

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

SEC. 626. DECOMMISSIONING.

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

SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.

    Title II of the Energy Reorganization Act of 1974 (42 
U.S.C. 5841 et seq.) is amended by adding at the end the 
following new section:

                ``LIMITATION ON LEGAL FEE REIMBURSEMENT

    ``Sec. 212. The Department of Energy shall not, except as 
required under a contract entered into before the date of 
enactment of this section, reimburse any contractor or 
subcontractor of the Department for any legal fees or expenses 
incurred with respect to a complaint subsequent to--
            ``(1) an adverse determination on the merits with 
        respect to such complaint against the contractor or 
        subcontractor by the Director of the Department of 
        Energy's Office of Hearings and Appeals pursuant to 
        part 708 of title 10, Code of Federal Regulations, or 
        by a Department of Labor Administrative Law Judge 
        pursuant to section 211 of this Act; or
            ``(2) an adverse final judgment by any State or 
        Federal court with respect to such complaint against 
        the contractor or subcontractor for wrongful 
        termination or retaliation due to the making of 
        disclosures protected under chapter 12 of title 5, 
        United States Code, section 211 of this Act, or any 
        comparable State law,

unless the adverse determination or final judgment is reversed 
upon further administrative or judicial review.''.

SEC. 628. DECOMMISSIONING PILOT PROGRAM.

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

SEC. 629. WHISTLEBLOWER PROTECTION.

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

SEC. 630. MEDICAL ISOTOPE PRODUCTION.

    Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 
2160d) is amended--
            (1) in subsection a., by striking ``a. The 
        Commission'' and inserting ``a. In General.--Except as 
        provided in subsection b., the Commission'';
            (2) by redesignating subsection b. as subsection 
        c.; and
            (3) by inserting after subsection a. the following:
    ``b. Medical Isotope Production.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Highly enriched uranium.--The term 
                `highly enriched uranium' means uranium 
                enriched to include concentration of U-235 
                above 20 percent.
                    ``(B) Medical isotope.--The term `medical 
                isotope' includes Molybdenum 99, Iodine 131, 
                Xenon 133, and other radioactive materials used 
                to produce a radiopharmaceutical for 
                diagnostic, therapeutic procedures or for 
                research and development.
                    ``(C) Radiopharmaceutical.--The term 
                `radiopharmaceutical' means a radioactive 
                isotope that--
                            ``(i) contains byproduct material 
                        combined with chemical or biological 
                        material; and
                            ``(ii) is designed to accumulate 
                        temporarily in a part of the body for 
                        therapeutic purposes or for enabling 
                        the production of a useful image for 
                        use in a diagnosis of a medical 
                        condition.
                    ``(D) Recipient country.--The term 
                `recipient country' means Canada, Belgium, 
                France, Germany, and the Netherlands.
            ``(2) Licenses.--The Commission may issue a license 
        authorizing the export (including shipment to and use 
        at intermediate and ultimate consignees specified in 
        the license) to a recipient country of highly enriched 
        uranium for medical isotope production if, in addition 
        to any other requirements of this Act (except 
        subsection a.), the Commission determines that--
                    ``(A) a recipient country that supplies an 
                assurance letter to the United States 
                Government in connection with the consideration 
                by the Commission of the export license 
                application has informed the United States 
                Government that any intermediate consignees and 
                the ultimate consignee specified in the 
                application are required to use the highly 
                enriched uranium solely to produce medical 
                isotopes; and
                    ``(B) the highly enriched uranium for 
                medical isotope production will be irradiated 
                only in a reactor in a recipient country that--
                            ``(i) uses an alternative nuclear 
                        reactor fuel; or
                            ``(ii) is the subject of an 
                        agreement with the United States 
                        Government to convert to an alternative 
                        nuclear reactor fuel when alternative 
                        nuclear reactor fuel can be used in the 
                        reactor.
            ``(3) Review of physical protection requirements.--
                    ``(A) In general.--The Commission shall 
                review the adequacy of physical protection 
                requirements that, as of the date of an 
                application under paragraph (2), are applicable 
                to the transportation and storage of highly 
                enriched uranium for medical isotope production 
                or control of residual material after 
                irradiation and extraction of medical isotopes.
                    ``(B) Imposition of additional 
                requirements.--If the Commission determines 
                that additional physical protection 
                requirements are necessary (including a limit 
                on the quantity of highly enriched uranium that 
                may be contained in a single shipment), the 
                Commission shall impose such requirements as 
                license conditions or through other appropriate 
                means.
            ``(4) First report to congress.--
                    ``(A) NAS study.--The Secretary shall enter 
                into an arrangement with the National Academy 
                of Sciences to conduct a study to determine--
                            ``(i) the feasibility of procuring 
                        supplies of medical isotopes from 
                        commercial sources that do not use 
                        highly enriched uranium;
                            ``(ii) the current and projected 
                        demand and availability of medical 
                        isotopes in regular current domestic 
                        use;
                            ``(iii) the progress that is being 
                        made by the Department of Energy and 
                        others to eliminate all use of highly 
                        enriched uranium in reactor fuel, 
                        reactor targets, and medical isotope 
                        production facilities; and
                            ``(iv) the potential cost 
                        differential in medical isotope 
                        production in the reactors and target 
                        processing facilities if the products 
                        were derived from production systems 
                        that do not involve fuels and targets 
                        with highly enriched uranium.
                    ``(B) Feasibility.--For the purpose of this 
                subsection, the use of low enriched uranium to 
                produce medical isotopes shall be determined to 
                be feasible if--
                            ``(i) low enriched uranium targets 
                        have been developed and demonstrated 
                        for use in the reactors and target 
                        processing facilities that produce 
                        significant quantities of medical 
                        isotopes to serve United States needs 
                        for such isotopes;
                            ``(ii) sufficient quantities of 
                        medical isotopes are available from low 
                        enriched uranium targets and fuel to 
                        meet United States domestic needs; and
                            ``(iii) the average anticipated 
                        total cost increase from production of 
                        medical isotopes in such facilities 
                        without use of highly enriched uranium 
                        is less than 10 percent.
                    ``(C) Report by the secretary.--Not later 
                than 5 years after the date of enactment of the 
                Energy Policy Act of 2005, the Secretary shall 
                submit to Congress a report that--
                            ``(i) contains the findings of the 
                        National Academy of Sciences made in 
                        the study under subparagraph (A); and
                            ``(ii) discloses the existence of 
                        any commitments from commercial 
                        producers to provide domestic 
                        requirements for medical isotopes 
                        without use of highly enriched uranium 
                        consistent with the feasibility 
                        criteria described in subparagraph (B) 
                        not later than the date that is 4 years 
                        after the date of submission of the 
                        report.
            ``(5) Second report to congress.--If the study of 
        the National Academy of Sciences determines under 
        paragraph (4)(A)(i) that the procurement of supplies of 
        medical isotopes from commercial sources that do not 
        use highly enriched uranium is feasible, but the 
        Secretary is unable to report the existence of 
        commitments under paragraph (4)(C)(ii), not later than 
        the date that is 6 years after the date of enactment of 
        the Energy Policy Act of 2005, the Secretary shall 
        submit to Congress a report that describes options for 
        developing domestic supplies of medical isotopes in 
        quantities that are adequate to meet domestic demand 
        without the use of highly enriched uranium consistent 
        with the cost increase described in paragraph 
        (4)(B)(iii).
            ``(6) Certification.--At such time as commercial 
        facilities that do not use highly enriched uranium are 
        capable of meeting domestic requirements for medical 
        isotopes, within the cost increase described in 
        paragraph (4)(B)(iii) and without impairing the 
        reliable supply of medical isotopes for domestic 
        utilization, the Secretary shall submit to Congress a 
        certification to that effect.
            ``(7) Sunset provision.--After the Secretary 
        submits a certification under paragraph (6), the 
        Commission shall, by rule, terminate its review of 
        export license applications under this subsection.''.

SEC. 631. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.

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

SEC. 632. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR 
                    TERRORISM.

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

SEC. 633. EMPLOYEE BENEFITS.

    Section 3110(a) of the USEC Privatization Act (42 U.S.C. 
2297h-8(a)) is amended by adding at the end the following new 
paragraph:
    ``(8) Continuity of benefits.--To the extent appropriations 
are provided in advance for this purpose or are otherwise 
available, not later than 30 days after the date of enactment 
of this paragraph, the Secretary shall implement such actions 
as are necessary to ensure that any employee who--
            ``(A) is involved in providing infrastructure or 
        environmental remediation services at the Portsmouth, 
        Ohio, or the Paducah, Kentucky, Gaseous Diffusion 
        Plant;
            ``(B) has been an employee of the Department of 
        Energy's predecessor management and integrating 
        contractor (or its first or second tier 
        subcontractors), or of the Corporation, at the 
        Portsmouth, Ohio, or the Paducah, Kentucky, facility; 
        and
            ``(C) was eligible as of April 1, 2005, to 
        participate in or transfer into the Multiple Employer 
        Pension Plan or the associated multiple employer 
        retiree health care benefit plans, as defined in those 
        plans,
shall continue to be eligible to participate in or transfer 
into such pension or health care benefit plans.''.

SEC. 634. DEMONSTRATION HYDROGEN PRODUCTION AT EXISTING NUCLEAR POWER 
                    PLANTS.

    (a) Demonstration Projects.--The Secretary shall provide 
for the establishment of 2 projects in geographic areas that 
are regionally and climatically diverse to demonstrate the 
commercial production of hydrogen at existing nuclear power 
plants.
    (b) Economic Analysis.--Prior to making an award under 
subsection (a), the Secretary shall determine whether the use 
of existing nuclear power plants is a cost-effective means of 
producing hydrogen.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary for the purposes of 
carrying out this section not more than $100,000,000.

SEC. 635. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF 
                    LIABILITY FOR CERTAIN FOREIGN INCIDENTS.

    (a) In General.--Notwithstanding any other provision of 
law, no officer of the United States or of any department, 
agency, or instrumentality of the United States Government may 
enter into any contract or other arrangement, or into any 
amendment or modification of a contract or other arrangement, 
the purpose or effect of which would be to directly or 
indirectly impose liability on the United States Government, or 
any department, agency, or instrumentality of the United States 
Government, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear 
incidents occurring in connection with the design, 
construction, or operation of a production facility or 
utilization facility in any country whose government has been 
identified by the Secretary of State as engaged in state 
sponsorship of terrorist activities (specifically including any 
country the government of which, as of September 11, 2001, had 
been determined by the Secretary of State under section 620A(a) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
section 6(j)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export 
Control Act (22 U.S.C. 2780(d)) to have repeatedly provided 
support for acts of international terrorism). This section 
shall not apply to nuclear incidents occurring as a result of 
missions, carried out under the direction of the Secretary, the 
Secretary of Defense, or the Secretary of State, that are 
necessary to safely secure, store, transport, or remove nuclear 
materials for nuclear safety or nonproliferation purposes.
    (b) Definitions.--The terms used in this section shall have 
the same meaning as those terms have under section 11 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2014), unless otherwise 
expressly provided in this section.

SEC. 636. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are 
necessary to carry out this subtitle and the amendments made by 
this subtitle.

SEC. 637. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES.

    (a) In General.--Section 6101 of the Omnibus Budget 
Reconciliation Act of 1990 (42 U.S.C. 2214) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as provided in 
                paragraph (3), the'' and inserting ``The'' in 
                paragraph (1); and
                    (B) by striking paragraph (3); and
            (2) in subsection (c)--
                    (A) by striking ``and'' at the end of 
                paragraph (2)(A)(i);
                    (B) by striking the period at the end of 
                paragraph (2)(A)(ii) and inserting a semicolon;
                    (C) by adding at the end of paragraph 
                (2)(A) the following new clauses:
                            ``(iii) amounts appropriated to the 
                        Commission for the fiscal year for 
                        implementation of section 3116 of the 
                        Ronald W. Reagan National Defense 
                        Authorization Act for Fiscal Year 2005; 
                        and
                            ``(iv) amounts appropriated to the 
                        Commission for homeland security 
                        activities of the Commission for the 
                        fiscal year, except for the costs of 
                        fingerprinting and background checks 
                        required by section 149 of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2169) and 
                        the costs of conducting security 
                        inspections.''; and
                    (D) by amending paragraph (2)(B)(v) to read 
                as follows:
                            ``(v) 90 percent for fiscal year 
                        2005 and each fiscal year 
                        thereafter.''.
    (b) Repeal.--Section 7601 of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (42 U.S.C. 2213) is repealed.
    (c) Effective Date.--The amendments made by this section 
take effect on October 1, 2006.

SEC. 638. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.

    (a) Definitions.--In this section:
            (1) Advanced nuclear facility.--The term ``advanced 
        nuclear facility'' means any nuclear facility the 
        reactor design for which is approved after December 31, 
        1993, by the Commission (and such design or a 
        substantially similar design of comparable capacity was 
        not approved on or before that date).
            (2) Combined license.--The term ``combined 
        license'' means a combined construction and operating 
        license for an advanced nuclear facility issued by the 
        Commission.
            (3) Commission.--The term ``Commission'' means the 
        Nuclear Regulatory Commission.
            (4) Sponsor.--The term ``sponsor'' means a person 
        who has applied for or been granted a combined license.
    (b) Contract Authority.--
            (1) In general.--The Secretary may enter into 
        contracts under this section with sponsors of an 
        advanced nuclear facility that cover a total of 6 
        reactors, with the 6 reactors consisting of not more 
        than 3 different reactor designs, in accordance with 
        paragraph (2).
            (2) Requirement for contracts.--
                    (A) Definition of loan cost.--In this 
                paragraph, the term ``loan cost'' has the 
                meaning given the term ``cost of a loan 
                guarantee'' under section 502(5)(C) of the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a(5)(C)).
                    (B) Establishment of accounts.--There is 
                established in the Department 2 separate 
                accounts, which shall be known as the--
                            (i) ``Standby Support Program 
                        Account''; and
                            (ii) ``Standby Support Grant 
                        Account''.
                    (C) Requirement.--The Secretary shall not 
                enter into a contract under this section unless 
                the Secretary deposits--
                            (i) in the Standby Support Program 
                        Account established under subparagraph 
                        (B), funds appropriated to the 
                        Secretary in advance of the contract or 
                        a combination of appropriated funds and 
                        loan guarantee fees that are in an 
                        amount sufficient to cover the loan 
                        costs described in subsection 
                        (d)(5)(A); and
                            (ii) in the Standby Support Grant 
                        Account established under subparagraph 
                        (B), funds appropriated to the 
                        Secretary in advance of the contract, 
                        paid to the Secretary by the sponsor of 
                        the advanced nuclear facility, or a 
                        combination of appropriations and 
                        payments that are in an amount 
                        sufficient cover the costs described in 
                        subparagraphs (B), (C), and (D) of 
                        subsection (d)(5).
    (c) Covered Delays.--
            (1) Inclusions.--Under each contract authorized by 
        this section, the Secretary shall pay the costs 
        specified in subsection (d), using funds appropriated 
        or collected for the covered costs, if full power 
        operation of the advanced nuclear facility is delayed 
        by--
                    (A) the failure of the Commission to comply 
                with schedules for review and approval of 
                inspections, tests, analyses, and acceptance 
                criteria established under the combined license 
                or the conduct of preoperational hearings by 
                the Commission for the advanced nuclear 
                facility; or
                    (B) litigation that delays the commencement 
                of full-power operations of the advanced 
                nuclear facility.
            (2) Exclusions.--The Secretary may not enter into 
        any contract under this section that would obligate the 
        Secretary to pay any costs resulting from--
                    (A) the failure of the sponsor to take any 
                action required by law or regulation;
                    (B) events within the control of the 
                sponsor; or
                    (C) normal business risks.
    (d) Covered Costs.--
            (1) In general.--Subject to paragraphs (2), (3), 
        and (4), the costs that shall be paid by the Secretary 
        pursuant to a contract entered into under this section 
        are the costs that result from a delay covered by the 
        contract.
            (2) Initial 2 reactors.--In the case of the first 2 
        reactors that receive combined licenses and on which 
        construction is commenced, the Secretary shall pay--
                    (A) 100 percent of the covered costs of 
                delay; but
                    (B) not more than $500,000,000 per 
                contract.
            (3) Subsequent 4 reactors.--In the case of the next 
        4 reactors that receive a combined license and on which 
        construction is commenced, the Secretary shall pay--
                    (A) 50 percent of the covered costs of 
                delay that occur after the initial 180-day 
                period of covered delay; but
                    (B) not more than $250,000,000 per 
                contract.
            (4) Conditions on payment of certain covered 
        costs.--
                    (A) In general.--The obligation of the 
                Secretary to pay the covered costs described in 
                subparagraph (B) of paragraph (5) is subject to 
                the Secretary receiving from appropriations or 
                payments from other non-Federal sources amounts 
                sufficient to pay the covered costs.
                    (B) Non-federal sources.--The Secretary may 
                receive and accept payments from any non-
                Federal source, which shall be made available 
                without further appropriation for the payment 
                of the covered costs.
            (5) Types of covered costs.--Subject to paragraphs 
        (2), (3), and (4), the contract entered into under this 
        section for an advanced nuclear facility shall include 
        as covered costs those costs that result from a delay 
        during construction and in gaining approval for fuel 
        loading and full-power operation, including--
                    (A) principal or interest on any debt 
                obligation of an advanced nuclear facility 
                owned by a non-Federal entity; and
                    (B) the incremental difference between--
                            (i) the fair market price of power 
                        purchased to meet the contractual 
                        supply agreements that would have been 
                        met by the advanced nuclear facility 
                        but for the delay; and
                            (ii) the contractual price of power 
                        from the advanced nuclear facility 
                        subject to the delay.
    (e) Requirements.--Any contract between a sponsor and the 
Secretary covering an advanced nuclear facility under this 
section shall require the sponsor to use due diligence to 
shorten, and to end, the delay covered by the contract.
    (f) Reports.--For each advanced nuclear facility that is 
covered by a contract under this section, the Commission shall 
submit to Congress and the Secretary quarterly reports 
summarizing the status of licensing actions associated with the 
advanced nuclear facility.
    (g) Regulations.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        the Secretary shall issue such regulations as are 
        necessary to carry out this section.
            (2) Interim final rulemaking.--Not later than 270 
        days after the date of enactment of this Act, the 
        Secretary shall issue for public comment an interim 
        final rule regulating contracts authorized by this 
        section.
            (3) Notice of final rulemaking.--Not later than 1 
        year after the date of enactment of this Act, the 
        Secretary shall issue a notice of final rulemaking 
        regulating the contracts.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

SEC. 639. CONFLICTS OF INTEREST RELATING TO CONTRACTS AND OTHER 
                    ARRANGEMENTS.

    Section 170A b. of the Atomic Energy Act of 1954 (42 U.S.C. 
2210a(b)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) by striking ``b. The Commission'' and inserting 
        the following:
    ``b. Evaluation.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Nuclear Regulatory Commission''; and
            (3) by adding at the end the following:
            ``(2) Nuclear regulatory commission.--
        Notwithstanding any conflict of interest, the Nuclear 
        Regulatory Commission may enter into a contract, 
        agreement, or arrangement with the Department of Energy 
        or the operator of a Department of Energy facility, if 
        the Nuclear Regulatory Commission determines that--
                    ``(A) the conflict of interest cannot be 
                mitigated; and
                    ``(B) adequate justification exists to 
                proceed without mitigation of the conflict of 
                interest.''.

           Subtitle C--Next Generation Nuclear Plant Project

SEC. 641. PROJECT ESTABLISHMENT.

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

SEC. 642. PROJECT MANAGEMENT.

    (a) Departmental Management.--
            (1) In general.--The Project shall be managed in 
        the Department by the Office of Nuclear Energy, 
        Science, and Technology.
            (2) Generation iv nuclear energy systems program.--
        The Secretary may combine the Project with the 
        Generation IV Nuclear Energy Systems Initiative.
            (3) Existing doe project management expertise.--The 
        Secretary may utilize capabilities for review of 
        construction projects for advanced scientific 
        facilities within the Office of Science to track the 
        progress of the Project.
    (b) Laboratory Management.--
            (1) Lead laboratory.--The Idaho National Laboratory 
        shall be the lead National Laboratory for the Project 
        and shall collaborate with other National Laboratories, 
        institutions of higher education, other research 
        institutes, industrial researchers, and international 
        researchers to carry out the Project.
            (2) Industrial partnerships.--
                    (A) In general.--The Idaho National 
                Laboratory shall organize a consortium of 
                appropriate industrial partners that will carry 
                out cost-shared research, development, design, 
                and construction activities, and operate 
                research facilities, on behalf of the Project.
                    (B) Cost-sharing.--Activities of industrial 
                partners funded by the Project shall be cost-
                shared in accordance with section 988.
                    (C) Preference.--Preference in determining 
                the final structure of the consortium or any 
                partnerships under this subtitle shall be given 
                to a structure (including designating as a lead 
                industrial partner an entity incorporated in 
                the United States) that retains United States 
                technological leadership in the Project while 
                maximizing cost sharing opportunities and 
                minimizing Federal funding responsibilities.
            (3) Prototype plant siting.--The prototype nuclear 
        reactor and associated plant shall be sited at the 
        Idaho National Laboratory in Idaho.
            (4) Reactor test capabilities.--The Project shall 
        use, if appropriate, reactor test capabilities at the 
        Idaho National Laboratory.
            (5) Other laboratory capabilities.--The Project may 
        use, if appropriate, facilities at other National 
        Laboratories.

SEC. 643. PROJECT ORGANIZATION.

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

SEC. 644. NUCLEAR REGULATORY COMMISSION.

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

SEC. 645. PROJECT TIMELINES AND AUTHORIZATION OF APPROPRIATIONS.

    (a) Target Date to Complete the First Project Phase.--Not 
later than September 30, 2011, the Secretary shall--
            (1) select the technology to be used by the Project 
        for high-temperature hydrogen production and the 
        initial design parameters for the prototype nuclear 
        plant; or
            (2) submit to Congress a report establishing an 
        alternative date for making the selection.
    (b) Design Competition for Second Project Phase.--
            (1) In general.--The Secretary, acting through the 
        Idaho National Laboratory, shall fund not more than 4 
        teams for not more than 2 years to develop detailed 
        proposals for competitive evaluation and selection of a 
        single proposal for a final design of the prototype 
        nuclear reactor.
            (2) Systems integration.--The Secretary may 
        structure Project activities in the second project 
        phase to use the lead industrial partner of the 
        competitively selected design under paragraph (1) in a 
        systems integration role for final design and 
        construction of the Project.
    (c) Target Date to Complete Project Construction.--Not 
later than September 30, 2021, the Secretary shall--
            (1) complete construction and begin operations of 
        the prototype nuclear reactor and associated energy or 
        hydrogen facilities; or
            (2) submit to Congress a report establishing an 
        alternative date for completion.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary for research and 
construction activities under this subtitle (including for 
transfer to the Nuclear Regulatory Commission for activities 
under section 644 as appropriate)--
            (1) $1,250,000,000 for the period of fiscal years 
        2006 through 2015; and
            (2) such sums as are necessary for each of fiscal 
        years 2016 through 2021.

                      Subtitle D--Nuclear Security

SEC. 651. NUCLEAR FACILITY AND MATERIALS SECURITY.

    (a) Security Evaluations; Design Basis Threat Rulemaking.--
            (1) In general.--Chapter 14 of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2201 et seq.) (as amended by 
        section 624(a)) is amended by adding at the end the 
        following:

``SEC. 170D. SECURITY EVALUATIONS.

    ``a. Security Response Evaluations.--Not less often than 
once every 3 years, the Commission shall conduct security 
evaluations at each licensed facility that is part of a class 
of licensed facilities, as the Commission considers to be 
appropriate, to assess the ability of a private security force 
of a licensed facility to defend against any applicable design 
basis threat.
    ``b. Force-on-Force Exercises.--(1) The security 
evaluations shall include force-on-force exercises.
    ``(2) The force-on-force exercises shall, to the maximum 
extent practicable, simulate security threats in accordance 
with any design basis threat applicable to a facility.
    ``(3) In conducting a security evaluation, the Commission 
shall mitigate any potential conflict of interest that could 
influence the results of a force-on-force exercise, as the 
Commission determines to be necessary and appropriate.
    ``c. Action by Licensees.--The Commission shall ensure that 
an affected licensee corrects those material defects in 
performance that adversely affect the ability of a private 
security force at that facility to defend against any 
applicable design basis threat.
    ``d. Facilities Under Heightened Threat Levels.--The 
Commission may suspend a security evaluation under this section 
if the Commission determines that the evaluation would 
compromise security at a nuclear facility under a heightened 
threat level.
    ``e. Report.--Not less often than once each year, the 
Commission shall submit to the Committee on Environment and 
Public Works of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report, in 
classified form and unclassified form, that describes the 
results of each security response evaluation conducted and any 
relevant corrective action taken by a licensee during the 
previous year.

``SEC. 170E. DESIGN BASIS THREAT RULEMAKING.

    ``a. Rulemaking.--The Commission shall--
            ``(1) not later than 90 days after the date of 
        enactment of this section, initiate a rulemaking 
        proceeding, including notice and opportunity for public 
        comment, to be completed not later than 18 months after 
        that date, to revise the design basis threats of the 
        Commission; or
            ``(2) not later than 18 months after the date of 
        enactment of this section, complete any ongoing 
        rulemaking to revise the design basis threats.
    ``b. Factors.--When conducting its rulemaking, the 
Commission shall consider the following, but not be limited 
to--
            ``(1) the events of September 11, 2001;
            ``(2) an assessment of physical, cyber, 
        biochemical, and other terrorist threats;
            ``(3) the potential for attack on facilities by 
        multiple coordinated teams of a large number of 
        individuals;
            ``(4) the potential for assistance in an attack 
        from several persons employed at the facility;
            ``(5) the potential for suicide attacks;
            ``(6) the potential for water-based and air-based 
        threats;
            ``(7) the potential use of explosive devices of 
        considerable size and other modern weaponry;
            ``(8) the potential for attacks by persons with a 
        sophisticated knowledge of facility operations;
            ``(9) the potential for fires, especially fires of 
        long duration;
            ``(10) the potential for attacks on spent fuel 
        shipments by multiple coordinated teams of a large 
        number of individuals;
            ``(11) the adequacy of planning to protect the 
        public health and safety at and around nuclear 
        facilities, as appropriate, in the event of a terrorist 
        attack against a nuclear facility; and
            ``(12) the potential for theft and diversion of 
        nuclear materials from such facilities.''.
            (2) Conforming amendment.--The table of sections of 
        the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) 
        (as amended by section 624(b)) is amended by adding at 
        the end of the items relating to chapter 14 the 
        following:

``Sec. 170D. Security evaluations.
``Sec. 170E. Design basis threat rulemaking.''.

            (3) Federal security coordinators.--
                    (A) Regional offices.--Not later than 18 
                months after the date of enactment of this Act, 
                the Nuclear Regulatory Commission (referred to 
                in this section as the ``Commission'') shall 
                assign a Federal security coordinator, under 
                the employment of the Commission, to each 
                region of the Commission.
                    (B) Responsibilities.--The Federal security 
                coordinator shall be responsible for--
                            (i) communicating with the 
                        Commission and other Federal, State, 
                        and local authorities concerning 
                        threats, including threats against such 
                        classes of facilities as the Commission 
                        determines to be appropriate;
                            (ii) monitoring such classes of 
                        facilities as the Commission determines 
                        to be appropriate to ensure that they 
                        maintain security consistent with the 
                        security plan in accordance with the 
                        appropriate threat level; and
                            (iii) assisting in the coordination 
                        of security measures among the private 
                        security forces at such classes of 
                        facilities as the Commission determines 
                        to be appropriate and Federal, State, 
                        and local authorities, as appropriate.
    (b) Backup Power for Certain Emergency Notification 
Systems.--For any licensed nuclear power plants located where 
there is a permanent population, as determined by the 2000 
decennial census, in excess of 15,000,000 within a 50-mile 
radius of the power plant, not later than 18 months after 
enactment of this Act, the Commission shall require that backup 
power to be available for the emergency notification system of 
the power plant, including the emergency siren warning system, 
if the alternating current supply within the 10-mile emergency 
planning zone of the power plant is lost.
    (c) Additional Provisions.--
            (1) Provision of support to university nuclear 
        safety, security, and environmental protection 
        programs.--Section 31 b. of the Atomic Energy Act of 
        1954 (42 U.S.C. 2051(b)) is amended--
                    (A) by striking ``b. The Commission is 
                further authorized to make'' and inserting the 
                following:
    ``b. Grants and Contributions.--The Commission is 
authorized--
            ``(1) to make'';
                    (B) in paragraph (1) (as designated by 
                subparagraph (A)) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(2) to provide grants, loans, cooperative 
        agreements, contracts, and equipment to institutions of 
        higher education (as defined in section 102 of the 
        Higher Education Act of 1965 (20 U.S.C. 1002)) to 
        support courses, studies, training, curricula, and 
        disciplines pertaining to nuclear safety, security, or 
        environmental protection, or any other field that the 
        Commission determines to be critical to the regulatory 
        mission of the Commission.''.
            (2) Recruitment tools.--Chapter 14 of the Atomic 
        Energy Act of 1954 (42 U.S.C. 2201 et seq.) (as amended 
        by subsection (a)(1)) is amended by adding at the end 
        the following:

``SEC. 170F. RECRUITMENT TOOLS.

    ``The Commission may purchase promotional items of nominal 
value for use in the recruitment of individuals for 
employment.''.
            (3) Expenses authorized to be paid by the 
        commission.--Chapter 14 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2201 et seq.) (as amended by paragraph 
        (2)) is amended by adding at the end the following:

``SEC. 170G. EXPENSES AUTHORIZED TO BE PAID BY THE COMMISSION.

    ``The Commission may--
            ``(1) pay transportation, lodging, and subsistence 
        expenses of employees who--
                    ``(A) assist scientific, professional, 
                administrative, or technical employees of the 
                Commission; and
                    ``(B) are students in good standing at an 
                institution of higher education (as defined in 
                section 102 of the Higher Education Act of 1965 
                (20 U.S.C. 1002)) pursuing courses related to 
                the field in which the students are employed by 
                the Commission; and
            ``(2) pay the costs of health and medical services 
        furnished, pursuant to an agreement between the 
        Commission and the Department of State, to employees of 
        the Commission and dependents of the employees serving 
        in foreign countries.''.
            (4) Partnership program with institutions of higher 
        education.--
                    (A) In general.--Chapter 19 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2015 et seq.) (as 
                amended by section 622(a)) is amended by 
                inserting after section 243 the following:

``SEC. 244. PARTNERSHIP PROGRAM WITH INSTITUTIONS OF HIGHER EDUCATION.

    ``a. Definitions.--In this section:
            ``(1) Hispanic-serving institution.--The term 
        `Hispanic-serving institution' has the meaning given 
        the term in section 502(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1101a(a)).
            ``(2) Historically black college and university.--
        The term `historically Black college or university' has 
        the meaning given the term `part B institution' in 
        section 322 of the Higher Education Act of 1965 (20 
        U.S.C. 1061).
            ``(3) Tribal college.--The term `Tribal college' 
        has the meaning given the term `tribally controlled 
        college or university' in section 2(a) of the Tribally 
        Controlled College or University Assistance Act of 1978 
        (25 U.S.C. 1801(a)).
    ``b. Partnership Program.--The Commission may establish and 
participate in activities relating to research, mentoring, 
instruction, and training with institutions of higher 
education, including Hispanic-serving institutions, 
historically Black colleges or universities, and Tribal 
colleges, to strengthen the capacity of the institutions--
            ``(1) to educate and train students (including 
        present or potential employees of the Commission); and
            ``(2) to conduct research in the field of science, 
        engineering, or law, or any other field that the 
        Commission determines is important to the work of the 
        Commission.''.
            (5) Conforming amendments.--The table of sections 
        of the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) 
        (as amended by subsection (a)(2)) is amended--
                    (A) by adding at the end of the items 
                relating to chapter 14 the following:

``Sec. 170F. Recruitment tools.
``Sec. 170G. Expenses authorized to be paid by the Commission.''; and

                    (B) by inserting after the item relating to 
                section 243 the following:

``Sec. 244. Partnership program with institutions of higher 
          education.''.

    (d) Radiation Source Protection.--
            (1) Amendment.--Chapter 14 of the Atomic Energy Act 
        of 1954 (42 U.S.C. 2201 et seq.) (as amended by 
        subsection (c)(3)) is amended by adding at the end the 
        following:

``SEC. 170H. RADIATION SOURCE PROTECTION.

    ``a. Definitions.--In this section:
            ``(1) Code of conduct.--The term `Code of Conduct' 
        means the code entitled the `Code of Conduct on the 
        Safety and Security of Radioactive Sources', approved 
        by the Board of Governors of the International Atomic 
        Energy Agency and dated September 8, 2003.
            ``(2) Radiation source.--The term `radiation 
        source' means--
                    ``(A) a Category 1 Source or a Category 2 
                Source, as defined in the Code of Conduct; and
                    ``(B) any other material that poses a 
                threat such that the material is subject to 
                this section, as determined by the Commission, 
                by regulation, other than spent nuclear fuel 
                and special nuclear materials.
    ``b. Commission Approval.--Not later than 180 days after 
the date of enactment of this section, the Commission shall 
issue regulations prohibiting a person from--
            ``(1) exporting a radiation source, unless the 
        Commission has specifically determined under section 57 
        or 82, consistent with the Code of Conduct, with 
        respect to the exportation, that--
                    ``(A) the recipient of the radiation source 
                may receive and possess the radiation source 
                under the laws and regulations of the country 
                of the recipient;
                    ``(B) the recipient country has the 
                appropriate technical and administrative 
                capability, resources, and regulatory structure 
                to ensure that the radiation source will be 
                managed in a safe and secure manner; and
                    ``(C) before the date on which the 
                radiation source is shipped--
                            ``(i) a notification has been 
                        provided to the recipient country; and
                            ``(ii) a notification has been 
                        received from the recipient country;
                as the Commission determines to be appropriate;
            ``(2) importing a radiation source, unless the 
        Commission has determined, with respect to the 
        importation, that--
                    ``(A) the proposed recipient is authorized 
                by law to receive the radiation source; and
                    ``(B) the shipment will be made in 
                accordance with any applicable Federal or State 
                law or regulation; and
            ``(3) selling or otherwise transferring ownership 
        of a radiation source, unless the Commission--
                    ``(A) has determined that the licensee has 
                verified that the proposed recipient is 
                authorized under law to receive the radiation 
                source; and
                    ``(B) has required that the transfer shall 
                be made in accordance with any applicable 
                Federal or State law or regulation.
    ``c. Tracking System.--(1)(A) Not later than 1 year after 
the date of enactment of this section, the Commission shall 
issue regulations establishing a mandatory tracking system for 
radiation sources in the United States.
    ``(B) In establishing the tracking system under 
subparagraph (A), the Commission shall coordinate with the 
Secretary of Transportation to ensure compatibility, to the 
maximum extent practicable, between the tracking system and any 
system established by the Secretary of Transportation to track 
the shipment of radiation sources.
    ``(2) The tracking system under paragraph (1) shall--
            ``(A) enable the identification of each radiation 
        source by serial number or other unique identifier;
            ``(B) require reporting within 7 days of any change 
        of possession of a radiation source;
            ``(C) require reporting within 24 hours of any loss 
        of control of, or accountability for, a radiation 
        source; and
            ``(D) provide for reporting under subparagraphs (B) 
        and (C) through a secure Internet connection.
    ``d. Penalty.--A violation of a regulation issued under 
subsection a. or b. shall be punishable by a civil penalty not 
to exceed $1,000,000.
    ``e. National Academy of Sciences Study.--(1) Not later 
than 60 days after the date of enactment of this section, the 
Commission shall enter into an arrangement with the National 
Academy of Sciences under which the National Academy of 
Sciences shall conduct a study of industrial, research, and 
commercial uses for radiation sources.
    ``(2) The study under paragraph (1) shall include a review 
of uses of radiation sources in existence on the date on which 
the study is conducted, including an identification of any 
industrial or other process that--
            ``(A) uses a radiation source that could be 
        replaced with an economically and technically 
        equivalent (or improved) process that does not require 
        the use of a radiation source; or
            ``(B) may be used with a radiation source that 
        would pose a lower risk to public health and safety in 
        the event of an accident or attack involving the 
        radiation source.
    ``(3) Not later than 2 years after the date of enactment of 
this section, the Commission shall submit to Congress the 
results of the study under paragraph (1).
    ``f. Task Force on Radiation Source Protection and 
Security.--(1) There is established a task force on radiation 
source protection and security (referred to in this section as 
the `task force').
    ``(2)(A) The chairperson of the task force shall be the 
Chairperson of the Commission (or a designee).
    ``(B) The membership of the task force shall consist of the 
following:
            ``(i) The Secretary of Homeland Security (or a 
        designee).
            ``(ii) The Secretary of Defense (or a designee).
            ``(iii) The Secretary of Energy (or a designee).
            ``(iv) The Secretary of Transportation (or a 
        designee).
            ``(v) The Attorney General (or a designee).
            ``(vi) The Secretary of State (or a designee).
            ``(vii) The Director of National Intelligence (or a 
        designee).
            ``(viii) The Director of the Central Intelligence 
        Agency (or a designee).
            ``(ix) The Director of the Federal Emergency 
        Management Agency (or a designee).
            ``(x) The Director of the Federal Bureau of 
        Investigation (or a designee).
            ``(xi) The Administrator of the Environmental 
        Protection Agency (or a designee).
    ``(3)(A) The task force, in consultation with Federal, 
State, and local agencies, the Conference of Radiation Control 
Program Directors, and the Organization of Agreement States, 
and after public notice and an opportunity for comment, shall 
evaluate, and provide recommendations relating to, the security 
of radiation sources in the United States from potential 
terrorist threats, including acts of sabotage, theft, or use of 
a radiation source in a radiological dispersal device.
    ``(B) Not later than 1 year after the date of enactment of 
this section, and not less than once every 4 years thereafter, 
the task force shall submit to Congress and the President a 
report, in unclassified form with a classified annex if 
necessary, providing recommendations, including recommendations 
for appropriate regulatory and legislative changes, for--
            ``(i) a list of additional radiation sources that 
        should be required to be secured under this Act, based 
        on the potential attractiveness of the sources to 
        terrorists and the extent of the threat to public 
        health and safety of the sources, taking into 
        consideration--
                    ``(I) radiation source radioactivity 
                levels;
                    ``(II) radioactive half-life of a radiation 
                source;
                    ``(III) dispersability;
                    ``(IV) chemical and material form;
                    ``(V) for radioactive materials with a 
                medical use, the availability of the sources to 
                physicians and patients for medical treatment; 
                and
                    ``(VI) any other factor that the 
                Chairperson of the Commission determines to be 
                appropriate;
            ``(ii) the establishment of, or modifications to, a 
        national system for recovery of lost or stolen 
        radiation sources;
            ``(iii) the storage of radiation sources that are 
        not used in a safe and secure manner as of the date on 
        which the report is submitted;
            ``(iv) modifications to the national tracking 
        system for radiation sources;
            ``(v) the establishment of, or modifications to, a 
        national system (including user fees and other methods) 
        to provide for the proper disposal of radiation sources 
        secured under this Act;
            ``(vi) modifications to export controls on 
        radiation sources to ensure that foreign recipients of 
        radiation sources are able and willing to adequately 
        control radiation sources from the United States;
            ``(vii)(I) any alternative technologies available 
        as of the date on which the report is submitted that 
        may perform some or all of the functions performed by 
        devices or processes that employ radiation sources; and
            ``(II) the establishment of appropriate regulations 
        and incentives for the replacement of the devices and 
        processes described in subclause (I)--
                    ``(aa) with alternative technologies in 
                order to reduce the number of radiation sources 
                in the United States; or
                    ``(bb) with radiation sources that would 
                pose a lower risk to public health and safety 
                in the event of an accident or attack involving 
                the radiation source; and
            ``(viii) the creation of, or modifications to, 
        procedures for improving the security of use, 
        transportation, and storage of radiation sources, 
        including--
                    ``(I) periodic audits or inspections by the 
                Commission to ensure that radiation sources are 
                properly secured and can be fully accounted 
                for;
                    ``(II) evaluation of the security measures 
                by the Commission;
                    ``(III) increased fines for violations of 
                Commission regulations relating to security and 
                safety measures applicable to licensees that 
                possess radiation sources;
                    ``(IV) criminal and security background 
                checks for certain individuals with access to 
                radiation sources (including individuals 
                involved with transporting radiation sources);
                    ``(V) requirements for effective and timely 
                exchanges of information relating to the 
                results of criminal and security background 
                checks between the Commission and any State 
                with which the Commission has entered into an 
                agreement under section 274 b.;
                    ``(VI) assurances of the physical security 
                of facilities that contain radiation sources 
                (including facilities used to temporarily store 
                radiation sources being transported); and
                    ``(VII) the screening of shipments to 
                facilities that the Commission determines to be 
                particularly at risk for sabotage of radiation 
                sources to ensure that the shipments do not 
                contain explosives.
    ``g. Action by Commission.--Not later than 60 days after 
the date of receipt by Congress and the President of a report 
under subsection f.(3)(B), the Commission, in accordance with 
the recommendations of the task force, shall--
            ``(1) take any action the Commission determines to 
        be appropriate, including revising the system of the 
        Commission for licensing radiation sources; and
            ``(2) ensure that States that have entered into 
        agreements with the Commission under section 274 b. 
        take similar action in a timely manner.''.
            (2) Conforming amendment.--The table of sections of 
        the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) 
        (as amended by subsection (c)(5)(A)) is amended by 
        adding at the end of the items relating to chapter 14 
        the following:

``Sec. 170H. Radiation source protection.''.

    (e) Treatment of Accelerator-Produced and Other Radioactive 
Material as Byproduct Material.--
            (1) Definition of byproduct material.--Section 11 
        e. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e)) 
        is amended--
                    (A) by striking ``means (1) any 
                radioactive'' and inserting the following: 
                ``means--
            ``(1) any radioactive'';
                    (B) by striking ``material, and (2) the 
                tailings'' and inserting the following: 
                ``material; ``(2) the tailings'';
                    (C) by striking ``content.'' and inserting 
                the following: ``content;
            ``(3)(A) any discrete source of radium-226 that is 
        produced, extracted, or converted after extraction, 
        before, on, or after the date of enactment of this 
        paragraph for use for a commercial, medical, or 
        research activity; or
            ``(B) any material that--
                    ``(i) has been made radioactive by use of a 
                particle accelerator; and
                    ``(ii) is produced, extracted, or converted 
                after extraction, before, on, or after the date 
                of enactment of this paragraph for use for a 
                commercial, medical, or research activity; and
            ``(4) any discrete source of naturally occurring 
        radioactive material, other than source material, 
        that--
                    ``(A) the Commission, in consultation with 
                the Administrator of the Environmental 
                Protection Agency, the Secretary of Energy, the 
                Secretary of Homeland Security, and the head of 
                any other appropriate Federal agency, 
                determines would pose a threat similar to the 
                threat posed by a discrete source of radium-226 
                to the public health and safety or the common 
                defense and security; and
                    ``(B) before, on, or after the date of 
                enactment of this paragraph is extracted or 
                converted after extraction for use in a 
                commercial, medical, or research activity.''.
            (2) Agreements with governors.--Section 274 b. of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2021(b)) is 
        amended by striking ``State--'' and all that follows 
        through paragraph (4) and inserting the following: 
        ``State:
            ``(1) Byproduct materials (as defined in section 11 
        e.).
            ``(2) Source materials.
            ``(3) Special nuclear materials in quantities not 
        sufficient to form a critical mass.''.
            (3) Waste disposal.--
                    (A) Domestic distribution.--Section 81 of 
                the Atomic Energy Act of 1954 (42 U.S.C. 2111) 
                is amended--
                            (i) by striking ``No person may'' 
                        and inserting the following:
    ``a. In General.--No person may''; and
                            (ii) by adding at the end the 
                        following:
    ``b. Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), byproduct material, as defined in paragraphs (3) 
        and (4) of section 11 e., may only be transferred to 
        and disposed of in a disposal facility that--
                    ``(A) is adequate to protect public health 
                and safety; and
                    ``(B)(i) is licensed by the Commission; or
                    ``(ii) is licensed by a State that has 
                entered into an agreement with the Commission 
                under section 274 b., if the licensing 
                requirements of the State are compatible with 
                the licensing requirements of the Commission.
            ``(2) Effect of subsection.--Nothing in this 
        subsection affects the authority of any entity to 
        dispose of byproduct material, as defined in paragraphs 
        (3) and (4) of section 11 e., at a disposal facility in 
        accordance with any Federal or State solid or hazardous 
        waste law, including the Solid Waste Disposal Act (42 
        U.S.C. 6901 et seq.).
    ``c. Treatment as Low-Level Radioactive Waste.--Byproduct 
material, as defined in paragraphs (3) and (4) of section 11 
e., disposed of under this section shall not be considered to 
be low-level radioactive waste for the purposes of--
            ``(1) section 2 of the Low-Level Radioactive Waste 
        Policy Act (42 U.S.C. 2021b); or
            ``(2) carrying out a compact that is--
                    ``(A) entered into in accordance with that 
                Act (42 U.S.C. 2021b et seq.); and
                    ``(B) approved by Congress.''.
                    (B) Definition of low-level radioactive 
                waste.--Section 2(9) of the Low-Level 
                Radioactive Waste Policy Act (42 U.S.C. 
                2021b(9)) is amended--
                            (i) by redesignating subparagraphs 
                        (A) and (B) as clauses (i) and (ii), 
                        respectively, and indenting the clauses 
                        appropriately;
                            (ii) in the matter preceding clause 
                        (i) (as redesignated by subparagraph 
                        (A)) by striking ``The term'' and 
                        inserting the following:
                    ``(A) In general.--The term''; and
                            (iii) by adding at the end the 
                        following:
                    ``(B) Exclusion.--The term `low-level 
                radioactive waste' does not include byproduct 
                material (as defined in paragraphs (3) and (4) 
                of section 11 e. of the Atomic Energy Act of 
                1954 (42 U.S.C. 2014(e)).''.
            (4) Final regulations.--
                    (A) Regulations.--
                            (i) In general.--Not later than 18 
                        months after the date of enactment of 
                        this Act, the Commission, after 
                        consultation with States and other 
                        stakeholders, shall issue final 
                        regulations establishing such 
                        requirements as the Commission 
                        determines to be necessary to carry out 
                        this section and the amendments made by 
                        this section.
                            (ii) Inclusions.--The regulations 
                        shall include a definition of the term 
                        ``discrete source'' for purposes of 
                        paragraphs (3) and (4) of section 11 e. 
                        of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2014(e)) (as amended by 
                        paragraph (1)).
                    (B) Cooperation.--In promulgating 
                regulations under paragraph (1), the Commission 
                shall, to the maximum extent practicable--
                            (i) cooperate with States; and
                            (ii) use model State standards in 
                        existence on the date of enactment of 
                        this Act.
                    (C) Transition plan.--
                            (i) Definition of byproduct 
                        material.--In this paragraph, the term 
                        ``byproduct material'' has the meaning 
                        given the term in paragraphs (3) and 
                        (4) of section 11 e. of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2014(e)) 
                        (as amended by paragraph (1)).
                            (ii) Preparation and publication.--
                        To facilitate an orderly transition of 
                        regulatory authority with respect to 
                        byproduct material, the Commission, in 
                        issuing regulations under subparagraph 
                        (A), shall prepare and publish a 
                        transition plan for--
                                    (I) States that have not, 
                                before the date on which the 
                                plan is published, entered into 
                                an agreement with the 
                                Commission under section 274 b. 
                                of the Atomic Energy Act of 
                                1954 (42 U.S.C. 2021(b)); and
                                    (II) States that have 
                                entered into an agreement with 
                                the Commission under that 
                                section before the date on 
                                which the plan is published.
                            (iii) Inclusions.--The transition 
                        plan under clause (ii) shall include--
                                    (I) a description of the 
                                conditions under which a State 
                                may exercise authority over 
                                byproduct material; and
                                    (II) a statement of the 
                                Commission that any agreement 
                                covering byproduct material, as 
                                defined in paragraph (1) or (2) 
                                of section 11 e. of the Atomic 
                                Energy Act of 1954 (42 U.S.C. 
                                2014(e)), entered into between 
                                the Commission and a State 
                                under section 274 b. of that 
                                Act (42 U.S.C. 2021(b)) before 
                                the date of publication of the 
                                transition plan shall be 
                                considered to include byproduct 
                                material, as defined in 
                                paragraph (3) or (4) of section 
                                11 e. of that Act (42 U.S.C. 
                                2014(e)) (as amended by 
                                paragraph (1)), if the Governor 
                                of the State certifies to the 
                                Commission on the date of 
                                publication of the transition 
                                plan that--
                                            (aa) the State has 
                                        a program for licensing 
                                        byproduct material, as 
                                        defined in paragraph 
                                        (3) or (4) of section 
                                        11e. of the Atomic 
                                        Energy Act of 1954, 
                                        that is adequate to 
                                        protect the public 
                                        health and safety, as 
                                        determined by the 
                                        Commission; and
                                            (bb) the State 
                                        intends to continue to 
                                        implement the 
                                        regulatory 
                                        responsibility of the 
                                        State with respect to 
                                        the byproduct material.
                    (D) Availability of radiopharmaceuticals.--
                In promulgating regulations under subparagraph 
                (A), the Commission shall consider the impact 
                on the availability of radiopharmaceuticals 
                to--
                            (i) physicians; and
                            (ii) patients the medical treatment 
                        of which relies on 
                        radiopharmaceuticals.
            (5) Waivers.--
                    (A) In general.--Except as provided in 
                subparagraph (B), the Commission may grant a 
                waiver to any entity of any requirement under 
                this section or an amendment made by this 
                section with respect to a matter relating to 
                byproduct material (as defined in paragraphs 
                (3) and (4) of section 11 e. of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2014(e)) (as 
                amended by paragraph (1))) if the Commission 
                determines that the waiver is in accordance 
                with the protection of the public health and 
                safety and the promotion of the common defense 
                and security.
                    (B) Exceptions.--
                            (i) In general.--The Commission may 
                        not grant a waiver under subparagraph 
                        (A) with respect to--
                                    (I) any requirement under 
                                the amendments made by 
                                subsection (c)(1);
                                    (II) a matter relating to 
                                an importation into, or 
                                exportation from, the United 
                                States for a period ending 
                                after the date that is 1 year 
                                after the date of enactment of 
                                this Act; or
                                    (III) any other matter for 
                                a period ending after the date 
                                that is 4 years after the date 
                                of enactment of this Act.
                            (ii) Waivers to states.--The 
                        Commission shall terminate any waiver 
                        granted to a State under subparagraph 
                        (A) if the Commission determines that--
                                    (I) the State has entered 
                                into an agreement with the 
                                Commission under section 274 b. 
                                of the Atomic Energy Act of 
                                1954 (42 U.S.C. 2021(b));
                                    (II) the agreement 
                                described in subclause (I) 
                                covers byproduct material (as 
                                described in paragraph (3) or 
                                (4) of section 11 e. of the 
                                Atomic Energy Act of 1954 (42 
                                U.S.C. 2014(e)) (as amended by 
                                paragraph (1))); and
                                    (III) the program of the 
                                State for licensing such 
                                byproduct material is adequate 
                                to protect the public health 
                                and safety.
                    (C) Publication.--The Commission shall 
                publish in the Federal Register a notice of any 
                waiver granted under this subsection.

SEC. 652. FINGERPRINTING AND CRIMINAL HISTORY RECORD CHECKS.

    Section 149 of the Atomic Energy Act of 1954 (42 U.S.C. 
2169) is amended--
            (1) in subsection a.--
                    (A) by striking ``a. The Nuclear'' and all 
                that follows through ``section 147.'' and 
                inserting the following:
    ``a.(1)(A)(i) The Commission shall require each individual 
or entity described in clause (ii) to fingerprint each 
individual described in subparagraph (B) before the individual 
described in subparagraph (B) is permitted access under 
subparagraph (B).
    ``(ii) The individuals and entities referred to in clause 
(i) are individuals and entities that, on or before the date on 
which an individual is permitted access under subparagraph 
(B)--
            ``(I) are licensed or certified to engage in an 
        activity subject to regulation by the Commission;
            ``(II) have filed an application for a license or 
        certificate to engage in an activity subject to 
        regulation by the Commission; or
            ``(III) have notified the Commission in writing of 
        an intent to file an application for licensing, 
        certification, permitting, or approval of a product or 
        activity subject to regulation by the Commission.
    ``(B) The Commission shall require to be fingerprinted any 
individual who--
            ``(i) is permitted unescorted access to--
                    ``(I) a utilization facility; or
                    ``(II) radioactive material or other 
                property subject to regulation by the 
                Commission that the Commission determines to be 
                of such significance to the public health and 
                safety or the common defense and security as to 
                warrant fingerprinting and background checks; 
                or
            ``(ii) is permitted access to safeguards 
        information under section 147.'';
                    (B) by striking ``All fingerprints obtained 
                by a licensee or applicant as required in the 
                preceding sentence'' and inserting the 
                following:
    ``(2) All fingerprints obtained by an individual or entity 
as required in paragraph (1)'';
                    (C) by striking ``The costs of any 
                identification and records check conducted 
                pursuant to the preceding sentence shall be 
                paid by the licensee or applicant.'' and 
                inserting the following:
    ``(3) The costs of an identification or records check under 
paragraph (2) shall be paid by the individual or entity 
required to conduct the fingerprinting under paragraph 
(1)(A).''; and
                    (D) by striking ``Notwithstanding any other 
                provision of law, the Attorney General may 
                provide all the results of the search to the 
                Commission, and, in accordance with regulations 
                prescribed under this section, the Commission 
                may provide such results to licensee or 
                applicant submitting such fingerprints.'' and 
                inserting the following:
    ``(4) Notwithstanding any other provision of law--
            ``(A) the Attorney General may provide any result 
        of an identification or records check under paragraph 
        (2) to the Commission; and
            ``(B) the Commission, in accordance with 
        regulations prescribed under this section, may provide 
        the results to the individual or entity required to 
        conduct the fingerprinting under paragraph (1)(A).'';
            (2) in subsection c.--
                    (A) by striking ``, subject to public 
                notice and comment, regulations--'' and 
                inserting ``requirements--''; and
                    (B) in paragraph (2)(B), by striking 
                ``unescorted access to the facility of a 
                licensee or applicant'' and inserting 
                ``unescorted access to a utilization facility, 
                radioactive material, or other property 
                described in subsection a.(1)(B)'';
            (3) by redesignating subsection d. as subsection 
        e.; and
            (4) by inserting after subsection c. the following:
    ``d. The Commission may require a person or individual to 
conduct fingerprinting under subsection a.(1) by authorizing or 
requiring the use of any alternative biometric method for 
identification that has been approved by--
            ``(1) the Attorney General; and
            ``(2) the Commission, by regulation.''.

SEC. 653. USE OF FIREARMS BY SECURITY PERSONNEL.

    The Atomic Energy Act of 1954 is amended by inserting after 
section 161 (42 U.S.C. 2201) the following:

``SEC. 161A. USE OF FIREARMS BY SECURITY PERSONNEL.

    ``a. Definitions.--In this section, the terms `handgun', 
`rifle', `shotgun', `firearm', `ammunition', `machinegun', 
`short-barreled shotgun', and `short-barreled rifle' have the 
meanings given the terms in section 921(a) of title 18, United 
States Code.
    ``b. Authorization.--Notwithstanding subsections (a)(4), 
(a)(5), (b)(2), (b)(4), and (o) of section 922 of title 18, 
United States Code, section 925(d)(3) of title 18, United 
States Code, section 5844 of the Internal Revenue Code of 1986, 
and any law (including regulations) of a State or a political 
subdivision of a State that prohibits the transfer, receipt, 
possession, transportation, importation, or use of a handgun, a 
rifle, a shotgun, a short-barreled shotgun, a short-barreled 
rifle, a machinegun, a semiautomatic assault weapon, ammunition 
for any such gun or weapon, or a large capacity ammunition 
feeding device, in carrying out the duties of the Commission, 
the Commission may authorize the security personnel of any 
licensee or certificate holder of the Commission (including an 
employee of a contractor of such a licensee or certificate 
holder) to transfer, receive, possess, transport, import, and 
use 1 or more such guns, weapons, ammunition, or devices, if 
the Commission determines that--
            ``(1) the authorization is necessary to the 
        discharge of the official duties of the security 
        personnel; and
            ``(2) the security personnel--
                    ``(A) are not otherwise prohibited from 
                possessing or receiving a firearm under Federal 
                or State laws relating to possession of 
                firearms by a certain category of persons;
                    ``(B) have successfully completed any 
                requirement under this section for training in 
                the use of firearms and tactical maneuvers;
                    ``(C) are engaged in the protection of--
                            ``(i) a facility owned or operated 
                        by a licensee or certificate holder of 
                        the Commission that is designated by 
                        the Commission; or
                            ``(ii) radioactive material or 
                        other property owned or possessed by a 
                        licensee or certificate holder of the 
                        Commission, or that is being 
                        transported to or from a facility owned 
                        or operated by such a licensee or 
                        certificate holder, and that has been 
                        determined by the Commission to be of 
                        significance to the common defense and 
                        security or public health and safety; 
                        and
                    ``(D) are discharging the official duties 
                of the security personnel in transferring, 
                receiving, possessing, transporting, or 
                importing the weapons, ammunition, or devices.
    ``c. Background Checks.--A person that receives, possesses, 
transports, imports, or uses a weapon, ammunition, or a device 
under subsection (b) shall be subject to a background check by 
the Attorney General, based on fingerprints and including a 
background check under section 103(b) of the Brady Handgun 
Violence Prevention Act (Public Law 103-159; 18 U.S.C. 922 
note) to determine whether the person is prohibited from 
possessing or receiving a firearm under Federal or State law.
    ``d. Effective Date.--This section takes effect on the date 
on which guidelines are issued by the Commission, with the 
approval of the Attorney General, to carry out this section.''

SEC. 654. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

    Section 229 of the Atomic Energy Act of 1954 (42 U.S.C. 
2278a) is amended--
            (1) by striking ``Sec. 229, Trespass Upon 
        Commission Installations.--'' and inserting the 
        following:

``SEC. 229. TRESPASS ON COMMISSION INSTALLATIONS.'';

            (2) by adjusting the indentations of subsections 
        a., b., and c. so as to reflect proper subsection 
        indentations; and
            (3) in subsection a.--
                    (A) in the first sentence, by striking ``a. 
                The'' and inserting the following:
    ``a.(1) The'';
                    (B) in the second sentence, by striking 
                ``Every'' and inserting the following:
    ``(2) Every''; and
                    (C) in paragraph (1) (as designated by 
                subparagraph (A))--
                            (i) by striking ``or in the 
                        custody'' and inserting ``in the 
                        custody''; and
                            (ii) by inserting ``, or subject to 
                        the licensing authority of the 
                        Commission or certification by the 
                        Commission under this Act or any other 
                        Act'' before the period.

SEC. 655. SABOTAGE OF NUCLEAR FACILITIES, FUEL, OR DESIGNATED MATERIAL.

    (a) In General.--Section 236a. of the Atomic Energy Act of 
1954 (42 U.S.C. 2284(a)) is amended--
            (1) in paragraph (2), by striking ``storage 
        facility'' and inserting ``treatment, storage, or 
        disposal facility'';
            (2) in paragraph (3)--
                    (A) by striking ``such a utilization 
                facility'' and inserting ``a utilization 
                facility licensed under this Act''; and
                    (B) by striking ``or'' at the end;
            (3) in paragraph (4)--
                    (A) by striking ``facility licensed'' and 
                inserting ``, uranium conversion, or nuclear 
                fuel fabrication facility licensed or 
                certified''; and
                    (B) by striking the comma at the end and 
                inserting a semicolon; and
            (4) by inserting after paragraph (4) the following:
            ``(5) any production, utilization, waste storage, 
        waste treatment, waste disposal, uranium enrichment, 
        uranium conversion, or nuclear fuel fabrication 
        facility subject to licensing or certification under 
        this Act during construction of the facility, if the 
        destruction or damage caused or attempted to be caused 
        could adversely affect public health and safety during 
        the operation of the facility;
            ``(6) any primary facility or backup facility from 
        which a radiological emergency preparedness alert and 
        warning system is activated; or
            ``(7) any radioactive material or other property 
        subject to regulation by the Commission that, before 
        the date of the offense, the Commission determines, by 
        order or regulation published in the Federal Register, 
        is of significance to the public health and safety or 
        to common defense and security;''.
    (b) Conforming Amendment.--Section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284) is amended by striking 
``intentionally and willfully'' each place it appears and 
inserting ``knowingly''.

SEC. 656. SECURE TRANSFER OF NUCLEAR MATERIALS.

    (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 
(42 U.S.C. 2201-2210b) (as amended by section 651(d)(1)) is 
amended by adding at the end the following new section:

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

    ``a. The Commission shall establish a system to ensure that 
materials described in subsection b., when transferred or 
received in the United States by any party pursuant to an 
import or export license issued pursuant to this Act, are 
accompanied by a manifest describing the type and amount of 
materials being transferred or received. Each individual 
receiving or accompanying the transfer of such materials shall 
be subject to a security background check conducted by 
appropriate Federal entities.
    ``b. Except as otherwise provided by the Commission by 
regulation, the materials referred to in subsection a. are 
byproduct materials, source materials, special nuclear 
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as defined 
in section 2(16) of the Nuclear Waste Policy Act of 1982 (42 
U.S.C. 10101(16))).''.
    (b) Regulations.--Not later than 1 year after the date of 
the enactment of this Act, and from time to time thereafter as 
it considers necessary, the Nuclear Regulatory Commission shall 
issue regulations identifying radioactive materials or classes 
of individuals that, consistent with the protection of public 
health and safety and the common defense and security, are 
appropriate exceptions to the requirements of section 170D of 
the Atomic Energy Act of 1954, as added by subsection (a) of 
this section.
    (c) Effective Date.--The amendment made by subsection (a) 
shall take effect upon the issuance of regulations under 
subsection (b), except that the background check requirement 
shall become effective on a date established by the Commission.
    (d) Effect on Other Law.--Nothing in this section or the 
amendment made by this section shall waive, modify, or affect 
the application of chapter 51 of title 49, United States Code, 
part A of subtitle V of title 49, United States Code, part B of 
subtitle VI of title 49, United States Code, and title 23, 
United States Code.
    (e) Conforming Amendment.--The table of sections of the 
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by 
subsection (a)) is amended by adding at the end of the items 
relating to chapter 14 the following:

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

SEC. 657. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.

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

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

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

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

SEC. 702. INCREMENTAL COST ALLOCATION.

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

SEC. 703. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

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

``SEC. 514. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any covered person subject 
to section 501 and any State subject to section 507(o) may 
petition the Secretary for a waiver of the applicable 
requirements of section 501 or 507(o).
    ``(b) Grant of Waiver.--The Secretary shall grant a waiver 
of the requirements of section 501 or 507(o) on a showing that 
the fleet owned, operated, leased, or otherwise controlled by 
the State or covered person--
            ``(1) will achieve a reduction in the annual 
        consumption of petroleum fuels by the fleet equal to--
                    ``(A) the reduction in consumption of 
                petroleum that would result from 100 percent 
                cumulative compliance with the fuel use 
                requirements of section 501; or
                    ``(B) in the case of an entity covered 
                under section 507(o), a reduction equal to the 
                annual consumption by the State entity of 
                alternative fuels if all of the cumulative 
                alternative fuel vehicles of the State entity 
                given credit under section 508 were to use 
                alternative fuel 100 percent of the time; and
            ``(2) is in compliance with all applicable vehicle 
        emission standards established by the Administrator of 
        the Environmental Protection Agency under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(c) Reporting Requirement.--Not later than December 31 of 
a model year, any State or covered person granted a waiver 
under this section for the preceding model year shall submit to 
the Secretary an annual report that--
            ``(1) certifies the quantity of the petroleum motor 
        fuel reduction of the State or covered person during 
        the preceding model year; and
            ``(2) projects the baseline quantity of the 
        petroleum motor fuel reduction of the State or covered 
        person during the following model year.
    ``(d) Revocation of Waiver.--If a State or covered person 
that receives a waiver under this section fails to comply with 
this section, the Secretary--
            ``(1) shall revoke the waiver; and
            ``(2) may impose on the State or covered person a 
        penalty under section 512.''.
    (b) Conforming Amendment.--Section 511 of the Energy Policy 
Act of 1992 (42 U.S.C. 13261) is amended by striking ``or 507'' 
and inserting ``507, or 514''.
    (c) Table of Contents Amendment.--The table of contents of 
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
amended by striking the item relating to section 514 and 
inserting the following:

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

SEC. 704. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

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

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

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

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

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term eligible entity 
        means--
                    (A) a for-profit corporation;
                    (B) a nonprofit corporation; or
                    (C) an institution of higher education.
            (2) Program.--The term ``program'' means a program 
        established under subsection (b).
    (b) Establishment.--The Secretary shall establish a program 
to improve technologies for the commercialization of--
            (1) a combination hybrid/flexible fuel vehicle; or
            (2) a plug-in hybrid/flexible fuel vehicle.
    (c) Grants.--In carrying out the program, the Secretary 
shall provide grants that give preference to proposals that--
            (1) achieve the greatest reduction in miles per 
        gallon of petroleum fuel consumption;
            (2) achieve not less than 250 miles per gallon of 
        petroleum fuel consumption; and
            (3) have the greatest potential of 
        commercialization to the general public within 5 years.
    (d) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall publish in the 
Federal Register procedures to verify--
            (1) the hybrid/flexible fuel vehicle technologies 
        to be demonstrated; and
            (2) that grants are administered in accordance with 
        this section.
    (e) Report.--Not later than 260 days after the date of 
enactment of this Act, and annually thereafter, the Secretary 
shall submit to Congress a report that--
            (1) identifies the grant recipients;
            (2) describes the technologies to be funded under 
        the program;
            (3) assesses the feasibility of the technologies 
        described in paragraph (2) in meeting the goals 
        described in subsection (c);
            (4) identifies applications submitted for the 
        program that were not funded; and
            (5) makes recommendations for Federal legislation 
        to achieve commercialization of the technology 
        demonstrated.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section, to remain 
available until expended--
            (1) $3,000,000 for fiscal year 2006;
            (2) $7,000,000 for fiscal year 2007;
            (3) $10,000,000 for fiscal year 2008; and
            (4) $20,000,000 for fiscal year 2009.

SEC. 707. EMERGENCY EXEMPTION.

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

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

                        PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

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

SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.

    (a) Program.--The Secretary shall establish a program to 
encourage domestic production and sales of efficient hybrid and 
advanced diesel vehicles. The program shall include grants to 
automobile manufacturers to encourage domestic production of 
efficient hybrid and advanced diesel vehicles.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section such sums as may be necessary for each of the fiscal 
years 2006 through 2015.

                       PART 2--ADVANCED VEHICLES

SEC. 721. PILOT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive 
grant pilot program (referred to in this part as the ``pilot 
program''), to be administered through the Clean Cities Program 
of the Department, to provide not more than 30 geographically 
dispersed project grants to State governments, local 
governments, or metropolitan transportation authorities to 
carry out a project or projects for the purposes described in 
subsection (b).
    (b) Grant Purposes.--A grant under this section may be used 
for the following purposes:
            (1) The acquisition of alternative fueled vehicles 
        or fuel cell vehicles, including--
                    (A) passenger vehicles (including 
                neighborhood electric vehicles); and
                    (B) motorized 2-wheel bicycles or other 
                vehicles for use by law enforcement personnel 
                or other State or local government or 
                metropolitan transportation authority 
                employees.
            (2) The acquisition of alternative fueled vehicles, 
        hybrid vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or 
                services; and
                    (C) ground support vehicles at public 
                airports (including vehicles to carry baggage 
                or push or pull airplanes toward or away from 
                terminal gates).
            (3) The acquisition of ultra-low sulfur diesel 
        vehicles.
            (4) Installation or acquisition of infrastructure 
        necessary to directly support an alternative fueled 
        vehicle, fuel cell vehicle, or hybrid vehicle project 
        funded by the grant, including fueling and other 
        support equipment.
            (5) Operation and maintenance of vehicles, 
        infrastructure, and equipment acquired as part of a 
        project funded by the grant.
    (c) Applications.--
            (1) Requirements.--
                    (A) In general.--The Secretary shall issue 
                requirements for applying for grants under the 
                pilot program.
                    (B) Minimum requirements.--At a minimum, 
                the Secretary shall require that an application 
                for a grant--
                            (i) be submitted by the head of a 
                        State or local government or a 
                        metropolitan transportation authority, 
                        or any combination thereof, and a 
                        registered participant in the Clean 
                        Cities Program of the Department; and
                            (ii) include--
                                    (I) a description of the 
                                project proposed in the 
                                application, including how the 
                                project meets the requirements 
                                of this part;
                                    (II) an estimate of the 
                                ridership or degree of use of 
                                the project;
                                    (III) an estimate of the 
                                air pollution emissions reduced 
                                and fossil fuel displaced as a 
                                result of the project, and a 
                                plan to collect and disseminate 
                                environmental data, related to 
                                the project to be funded under 
                                the grant, over the life of the 
                                project;
                                    (IV) a description of how 
                                the project will be sustainable 
                                without Federal assistance 
                                after the completion of the 
                                term of the grant;
                                    (V) a complete description 
                                of the costs of the project, 
                                including acquisition, 
                                construction, operation, and 
                                maintenance costs over the 
                                expected life of the project;
                                    (VI) a description of which 
                                costs of the project will be 
                                supported by Federal assistance 
                                under this part; and
                                    (VII) documentation to the 
                                satisfaction of the Secretary 
                                that diesel fuel containing 
                                sulfur at not more than 15 
                                parts per million is available 
                                for carrying out the project, 
                                and a commitment by the 
                                applicant to use such fuel in 
                                carrying out the project.
            (2) Partners.--An applicant under paragraph (1) may 
        carry out a project under the pilot program in 
        partnership with public and private entities.
    (d) Selection Criteria.--In evaluating applications under 
the pilot program, the Secretary shall--
            (1) consider each applicant's previous experience 
        with similar projects; and
            (2) give priority consideration to applications 
        that--
                    (A) are most likely to maximize protection 
                of the environment;
                    (B) demonstrate the greatest commitment on 
                the part of the applicant to ensure funding for 
                the proposed project and the greatest 
                likelihood that the project will be maintained 
                or expanded after Federal assistance under this 
                part is completed; and
                    (C) exceed the minimum requirements of 
                subsection (c)(1)(B)(ii).
    (e) Pilot Project Requirements.--
            (1) Maximum amount.--The Secretary shall not 
        provide more than $15,000,000 in Federal assistance 
        under the pilot program to any applicant.
            (2) Cost sharing.--The Secretary shall not provide 
        more than 50 percent of the cost, incurred during the 
        period of the grant, of any project under the pilot 
        program.
            (3) Maximum period of grants.--The Secretary shall 
        not fund any applicant under the pilot program for more 
        than 5 years.
            (4) Deployment and distribution.--The Secretary 
        shall seek to the maximum extent practicable to ensure 
        a broad geographic distribution of project sites.
            (5) Transfer of information and knowledge.--The 
        Secretary shall establish mechanisms to ensure that the 
        information and knowledge gained by participants in the 
        pilot program are transferred among the pilot program 
        participants and to other interested parties, including 
        other applicants that submitted applications.
    (f) Schedule.--
            (1) Publication.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        publish in the Federal Register, Commerce Business 
        Daily, and elsewhere as appropriate, a request for 
        applications to undertake projects under the pilot 
        program. Applications shall be due not later than 180 
        days after the date of publication of the notice.
            (2) Selection.--Not later than 180 days after the 
        date by which applications for grants are due, the 
        Secretary shall select by competitive, peer reviewed 
        proposal, all applications for projects to be awarded a 
        grant under the pilot program.
    (g) Definitions.--For purposes of carrying out the pilot 
program, the Secretary shall issue regulations defining any 
term, as the Secretary determines to be necessary.

SEC. 722. REPORTS TO CONGRESS.

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

SEC. 723. AUTHORIZATION OF APPROPRIATIONS.

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

                        PART 3--FUEL CELL BUSES

SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.

    (a) In General.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a transit bus 
demonstration program to make competitive, merit-based awards 
for 5-year projects to demonstrate not more than 25 fuel cell 
transit buses (and necessary infrastructure) in 5 
geographically dispersed localities.
    (b) Preference.--In selecting projects under this section, 
the Secretary shall give preference to projects that are most 
likely to mitigate congestion and improve air quality.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$10,000,000 for each of fiscal years 2006 through 2010.

                     Subtitle C--Clean School Buses

SEC. 741. CLEAN SCHOOL BUS PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Alternative fuel.--The term ``alternative 
        fuel'' means--
                    (A) liquefied natural gas, compressed 
                natural gas, liquefied petroleum gas, hydrogen, 
                or propane;
                    (B) methanol or ethanol at no less than 85 
                percent by volume; or
                    (C) biodiesel conforming with standards 
                published by the American Society for Testing 
                and Materials as of the date of enactment of 
                this Act.
            (3) Clean school bus.--The term ``clean school 
        bus'' means a school bus with a gross vehicle weight of 
        greater than 14,000 pounds that--
                    (A) is powered by a heavy duty engine; and
                    (B) is operated solely on an alternative 
                fuel or ultra-low sulfur diesel fuel.
            (4) Eligible recipient.--
                    (A) In general.--Subject to subparagraph 
                (B), the term ``eligible recipient'' means--
                            (i) 1 or more local or State 
                        governmental entities responsible for--
                                    (I) providing school bus 
                                service to 1 or more public 
                                school systems; or
                                    (II) the purchase of school 
                                buses;
                            (ii) 1 or more contracting entities 
                        that provide school bus service to 1 or 
                        more public school systems; or
                            (iii) a nonprofit school 
                        transportation association.
                    (B) Special requirements.--In the case of 
                eligible recipients identified under clauses 
                (ii) and (iii), the Administrator shall 
                establish timely and appropriate requirements 
                for notice and may establish timely and 
                appropriate requirements for approval by the 
                public school systems that would be served by 
                buses purchased or retrofit using grant funds 
                made available under this section.
            (5) Retrofit technology.--The term ``retrofit 
        technology'' means a particulate filter or other 
        emissions control equipment that is verified or 
        certified by the Administrator or the California Air 
        Resources Board as an effective emission reduction 
        technology when installed on an existing school bus.
            (6) Ultra low sulfur diesel fuel.--The term 
        ``ultra-low sulfur diesel fuel'' means diesel fuel that 
        contains sulfur at not more than 15 parts per million.
    (b) Program for Retrofit or Replacement of Certain Existing 
School Buses With Clean School Buses.--
            (1) Establishment.--
                    (A) In general.--The Administrator, in 
                consultation with the Secretary and other 
                appropriate Federal departments and agencies, 
                shall establish a program for awarding grants 
                on a competitive basis to eligible recipients 
                for the replacement, or retrofit (including 
                repowering, aftertreatment, and remanufactured 
                engines) of, certain existing school buses.
                    (B) Balancing.--In awarding grants under 
                this section, the Administrator shall, to the 
                maximum extent practicable, achieve an 
                appropriate balance between awarding grants--
                            (i) to replace school buses; and
                            (ii) to install retrofit 
                        technologies.
            (2) Priority of grant applications.--
                    (A) Replacement.--In the case of grant 
                applications to replace school buses, the 
                Administrator shall give priority to applicants 
                that propose to replace school buses 
                manufactured before model year 1977.
                    (B) Retrofitting.--In the case of grant 
                applications to retrofit school buses, the 
                Administrator shall give priority to applicants 
                that propose to retrofit school buses 
                manufactured in or after model year 1991.
            (3) Use of school bus fleet.--
                    (A) In general.--All school buses acquired 
                or retrofitted with funds provided under this 
                section shall be operated as part of the school 
                bus fleet for which the grant was made for not 
                less than 5 years.
                    (B) Maintenance, operation, and fueling.--
                New school buses and retrofit technology shall 
                be maintained, operated, and fueled according 
                to manufacturer recommendations or State 
                requirements.
            (4) Retrofit grants.--The Administrator may award 
        grants for up to 100 percent of the retrofit 
        technologies and installation costs.
            (5) Replacement grants.--
                    (A) Eligibility for 50 percent grants.--The 
                Administrator may award grants for replacement 
                of school buses in the amount of up to \1/2\ of 
                the acquisition costs (including fueling 
                infrastructure) for--
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 
                        that emit not more than--
                                    (I) 1.8 grams per brake 
                                horsepower-hour of non-methane 
                                hydrocarbons and oxides of 
                                nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate 
                                matter; or
                            (ii) clean school buses with 
                        engines manufactured in model year 
                        2007, 2008, or 2009 that satisfy 
                        regulatory requirements established by 
                        the Administrator for emissions of 
                        oxides of nitrogen and particulate 
                        matter to be applicable for school 
                        buses manufactured in model year 2010.
                    (B) Eligibility for 25 percent grants.--The 
                Administrator may award grants for replacement 
                of school buses in the amount of up to \1/4\ of 
                the acquisition costs (including fueling 
                infrastructure) for--
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 
                        that emit not more than--
                                    (I) 2.5 grams per brake 
                                horsepower-hour of non-methane 
                                hydrocarbons and oxides of 
                                nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate 
                                matter; or
                            (ii) clean school buses with 
                        engines manufactured in model year 2007 
                        or thereafter that satisfy regulatory 
                        requirements established by the 
                        Administrator for emissions of oxides 
                        of nitrogen and particulate matter from 
                        school buses manufactured in that model 
                        year.
            (6) Ultra low sulfur diesel fuel.--
                    (A) In general.--In the case of a grant 
                recipient receiving a grant for the acquisition 
                of ultra-low sulfur diesel fuel school buses 
                with engines manufactured in model year 2005 or 
                2006, the grant recipient shall provide, to the 
                satisfaction of the Administrator--
                            (i) documentation that diesel fuel 
                        containing sulfur at not more than 15 
                        parts per million is available for 
                        carrying out the purposes of the grant; 
                        and
                            (ii) a commitment by the applicant 
                        to use that fuel in carrying out the 
                        purposes of the grant.
            (7) Deployment and distribution.--The Administrator 
        shall, to the maximum extent practicable--
                    (A) achieve nationwide deployment of clean 
                school buses through the program under this 
                section; and
                    (B) ensure a broad geographic distribution 
                of grant awards, with no State receiving more 
                than 10 percent of the grant funding made 
                available under this section during a fiscal 
                year.
            (8) Annual report.--
                    (A) In general.--Not later than January 31 
                of each year, the Administrator shall submit to 
                Congress a report that--
                            (i) evaluates the implementation of 
                        this section; and
                            (ii) describes--
                                    (I) the total number of 
                                grant applications received;
                                    (II) the number and types 
                                of alternative fuel school 
                                buses, ultra-low sulfur diesel 
                                fuel school buses, and 
                                retrofitted buses requested in 
                                grant applications;
                                    (III) grants awarded and 
                                the criteria used to select the 
                                grant recipients;
                                    (IV) certified engine 
                                emission levels of all buses 
                                purchased or retrofitted under 
                                this section;
                                    (V) an evaluation of the 
                                in-use emission level of buses 
                                purchased or retrofitted under 
                                this section; and
                                    (VI) any other information 
                                the Administrator considers 
                                appropriate.
    (c) Education.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall 
        develop an education outreach program to promote and 
        explain the grant program.
            (2) Coordination with stakeholders.--The outreach 
        program shall be designed and conducted in conjunction 
        with national school bus transportation associations 
        and other stakeholders.
            (3) Components.--The outreach program shall--
                    (A) inform potential grant recipients on 
                the process of applying for grants;
                    (B) describe the available technologies and 
                the benefits of the technologies;
                    (C) explain the benefits of participating 
                in the grant program; and
                    (D) include, as appropriate, information 
                from the annual report required under 
                subsection (b)(8).
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended--
            (1) $55,000,000 for each of fiscal years 2006 and 
        2007; and
            (2) such sums as are necessary for each of fiscal 
        years 2008, 2009, and 2010.

SEC. 742. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION PROGRAM.

    (a) Establishment.--The Administrator, in consultation with 
the Secretary, shall establish a program for awarding grants on 
a competitive basis to public agencies and entities for fleet 
modernization programs including installation of retrofit 
technologies for diesel trucks.
    (b) Eligible Recipients.--A grant shall be awarded under 
this section only to a State or local government or an agency 
or instrumentality of a State or local government or of two or 
more State or local governments who will allocate funds, with 
preference to ports and other major hauling operations.
    (c) Awards.--
            (1) In general.--The Administrator shall seek, to 
        the maximum extent practicable, to ensure a broad 
        geographic distribution of grants under this section.
            (2) Preferences.--In making awards of grants under 
        this section, the Administrator shall give preference 
        to proposals that--
                    (A) will achieve the greatest reductions in 
                emissions of nonmethane hydrocarbons, oxides of 
                nitrogen, and/or particulate matter per 
                proposal or per truck; or
                    (B) involve the use of Environmental 
                Protection Agency or California Air Resources 
                Board verified emissions control retrofit 
                technology on diesel trucks that operate solely 
                on ultra-low sulfur diesel fuel after September 
                2006.
    (d) Conditions of Grant.--A grant shall be provided under 
this section on the conditions that--
            (1) trucks which are replacing scrapped trucks and 
        on which retrofit emissions-control technology are to 
        be demonstrated--
                    (A) will operate on ultra-low sulfur diesel 
                fuel where such fuel is reasonably available or 
                required for sale by State or local law or 
                regulation;
                    (B) were manufactured in model year 1998 
                and before; and
                    (C) will be used for the transportation of 
                cargo goods especially in port areas or used in 
                goods movement and major hauling operations;
            (2) grant funds will be used for the purchase of 
        emission control retrofit technology, including State 
        taxes and contract fees; and
            (3) grant recipients will provide at least 50 
        percent of the total cost of the retrofit, including 
        the purchase of emission control retrofit technology 
        and all necessary labor for installation of the 
        retrofit, from any source other than this section.
    (e) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall publish in the 
Federal Register procedures to--
            (1) make grants pursuant to this section;
            (2) verify that trucks powered by ultra-low sulfur 
        diesel fuel on which retrofit emissions-control 
        technology are to be demonstrated will operate on 
        diesel fuel containing not more than 15 parts per 
        million of sulfur after September 2006; and
            (3) verify that grants are administered in 
        accordance with this section.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended the following sums:
            (1) $20,000,000 for fiscal year 2006.
            (2) $35,000,000 for fiscal year 2007.
            (3) $45,000,000 for fiscal year 2008.
            (4) Such sums as are necessary for each of fiscal 
        years 2009 and 2010.

SEC. 743. FUEL CELL SCHOOL BUSES.

    (a) Establishment.--The Secretary shall establish a program 
for entering into cooperative agreements--
            (1) with private sector fuel cell bus developers 
        for the development of fuel cell-powered school buses; 
        and
            (2) subsequently, with not less than 2 units of 
        local government using natural gas-powered school buses 
        and such private sector fuel cell bus developers to 
        demonstrate the use of fuel cell-powered school buses.
    (b) Cost Sharing.--The non-Federal contribution for 
activities funded under this section shall be not less than--
            (1) 20 percent for fuel infrastructure development 
        activities; and
            (2) 50 percent for demonstration activities and for 
        development activities not described in paragraph (1).
    (c) Reports to Congress.--Not later than 3 years after the 
date of enactment of this Act, the Secretary shall transmit to 
Congress a report that--
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school 
        buses; and
            (2) assesses the results of the development and 
        demonstration program under this section.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section 
$25,000,000 for the period of fiscal years 2006 through 2009.

                       Subtitle D--Miscellaneous

SEC. 751. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary shall (in cooperation 
with the Secretary of Transportation and the Administrator of 
the Environmental Protection Agency) establish a cost-shared, 
public-private research partnership involving the Federal 
Government, railroad carriers, locomotive manufacturers and 
equipment suppliers, and the Association of American Railroads, 
to develop and demonstrate railroad locomotive technologies 
that increase fuel economy, reduce emissions, and lower costs 
of operation.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary to carry out this section--
            (1) $15,000,000 for fiscal year 2006;
            (2) $20,000,000 for fiscal year 2007; and
            (3) $30,000,000 for fiscal year 2008.

SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

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

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.

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

SEC. 754. DIESEL FUELED VEHICLES.

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

SEC. 755. CONSERVE BY BICYCLING PROGRAM.

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

SEC. 756. REDUCTION OF ENGINE IDLING.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Advanced truck stop electrification system.--
        The term ``advanced truck stop electrification system'' 
        means a stationary system that delivers heat, air 
        conditioning, electricity, or communications, and is 
        capable of providing verifiable and auditable evidence 
        of use of those services, to a heavy-duty vehicle and 
        any occupants of the heavy-duty vehicle with or without 
        relying on components mounted onboard the heavy-duty 
        vehicle for delivery of those services.
            (3) Auxiliary power unit.--The term ``auxiliary 
        power unit'' means an integrated system that--
                    (A) provides heat, air conditioning, engine 
                warming, or electricity to components on a 
                heavy-duty vehicle; and
                    (B) is certified by the Administrator under 
                part 89 of title 40, Code of Federal 
                Regulations (or any successor regulation), as 
                meeting applicable emission standards.
            (4) Heavy-duty vehicle.--The term ``heavy-duty 
        vehicle'' means a vehicle that--
                    (A) has a gross vehicle weight rating 
                greater than 8,500 pounds; and
                    (B) is powered by a diesel engine.
            (5) Idle reduction technology.--The term ``idle 
        reduction technology'' means an advanced truck stop 
        electrification system, auxiliary power unit, or other 
        technology that--
                    (A) is used to reduce long-duration idling; 
                and
                    (B) allows for the main drive engine or 
                auxiliary refrigeration engine to be shut down.
            (6) Energy conservation technology.--the term 
        ``energy conservation technology'' means any device, 
        system of devices, or equipment that improves the fuel 
        economy.
            (7) Long-duration idling.--
                    (A) In general.--The term ``long-duration 
                idling'' means the operation of a main drive 
                engine or auxiliary refrigeration engine, for a 
                period greater than 15 consecutive minutes, at 
                a time at which the main drive engine is not 
                engaged in gear.
                    (B) Exclusions.--The term ``long-duration 
                idling'' does not include the operation of a 
                main drive engine or auxiliary refrigeration 
                engine during a routine stoppage associated 
                with traffic movement or congestion.
    (b) Idle Reduction Technology Benefits, Programs, and 
Studies.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator 
        shall--
                    (A)(i) commence a review of the mobile 
                source air emission models of the Environmental 
                Protection Agency used under the Clean Air Act 
                (42 U.S.C. 7401 et seq.) to determine whether 
                the models accurately reflect the emissions 
                resulting from long-duration idling of heavy-
                duty vehicles and other vehicles and engines; 
                and
                    (ii) update those models as the 
                Administrator determines to be appropriate; and
                    (B)(i) commence a review of the emission 
                reductions achieved by the use of idle 
                reduction technology; and
                    (ii) complete such revisions of the 
                regulations and guidance of the Environmental 
                Protection Agency as the Administrator 
                determines to be appropriate.
            (2) Deadline for completion.--Not later than 180 
        days after the date of enactment of this Act, the 
        Administrator shall--
                    (A) complete the reviews under 
                subparagraphs (A)(i) and (B)(i) of paragraph 
                (1); and
                    (B) prepare and make publicly available 1 
                or more reports on the results of the reviews.
            (3) Discretionary inclusions.--The reviews under 
        subparagraphs (A)(i) and (B)(i) of paragraph (1) and 
        the reports under paragraph (2)(B) may address the 
        potential fuel savings resulting from use of idle 
        reduction technology.
            (4) Idle reduction and energy conservation 
        deployment program.--
                    (A) Establishment.--
                            (i) In general.--Not later than 90 
                        days after the date of enactment of 
                        this Act, the Administrator, in 
                        consultation with the Secretary of 
                        Transportation shall, through the 
                        Environmental Protection Agency's 
                        SmartWay Transport Partnership, 
                        establish a program to support 
                        deployment of idle reduction and energy 
                        conservation technologies.
                            (ii) Priority.--The Administrator 
                        shall give priority to the deployment 
                        of idle reduction and energy 
                        conservation technologies based on the 
                        costs and beneficial effects on air 
                        quality and ability to lessen the 
                        emission of criteria air pollutants.
                    (B) Funding.--
                            (i) Authorization of 
                        appropriations.--There are authorized 
                        to be appropriated to the Administrator 
                        to carry out subparagraph (A) for the 
                        purpose of reducing extended idling 
                        from heavy-duty vehicles $19,500,000 
                        for fiscal year 2006, $30,000,000 for 
                        fiscal year 2007, and $45,000,000 for 
                        fiscal year 2008.
                            (ii) Locomotives.--There are 
                        authorized to be appropriated to the 
                        administrator to carry out subparagraph 
                        (A) for the purpose of reducing 
                        extended idling from locomotives 
                        $10,000,000 for fiscal year 2006, 
                        $15,000,000 for fiscal year 2007, and 
                        $20,000,000 for fiscal year 2008.
                            (iii) Cost sharing.--Subject to 
                        clause (iv), the Administrator shall 
                        require at least 50 percent of the 
                        costs directly and specifically related 
                        to any project under this section to be 
                        provided from non-Federal sources.
                            (iv) Necessary and appropriate 
                        reductions.--The Administrator may 
                        reduce the non-Federal requirement 
                        under clause (iii) if the Administrator 
                        determines that the reduction is 
                        necessary and appropriate to meet the 
                        objectives of this section.
            (5) Idling location study.--
                    (A) In general.--Not later than 90 days 
                after the date of enactment of this Act, the 
                Administrator, in consultation with the 
                Secretary of Transportation, shall commence a 
                study to analyze all locations at which heavy-
                duty vehicles stop for long-duration idling, 
                including--
                            (i) truck stops;
                            (ii) rest areas;
                            (iii) border crossings;
                            (iv) ports;
                            (v) transfer facilities; and
                            (vi) private terminals.
                    (B) Deadline for completion.--Not later 
                than 180 days after the date of enactment of 
                this Act, the Administrator shall--
                            (i) complete the study under 
                        subparagraph (A); and
                            (ii) prepare and make publicly 
                        available 1 or more reports of the 
                        results of the study.
    (c) Vehicle Weight Exemption.--Section 127(a) of title 23, 
United States Code, is amended--
            (1) by designating the first through eleventh 
        sentences as paragraphs (1) through (11), respectively; 
        and
            (2) by adding at the end the following:
            ``(12) Heavy duty vehicles.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), in order to promote reduction of 
                fuel use and emissions because of engine 
                idling, the maximum gross vehicle weight limit 
                and the axle weight limit for any heavy-duty 
                vehicle equipped with an idle reduction 
                technology shall be increased by a quantity 
                necessary to compensate for the additional 
                weight of the idle reduction system.
                    ``(B) Maximum weight increase.--The weight 
                increase under subparagraph (A) shall be not 
                greater than 400 pounds.
                    ``(C) Proof.--On request by a regulatory 
                agency or law enforcement agency, the vehicle 
                operator shall provide proof (through 
                demonstration or certification) that--
                            ``(i) the idle reduction technology 
                        is fully functional at all times; and
                            ``(ii) the 400-pound gross weight 
                        increase is not used for any purpose 
                        other than the use of idle reduction 
                        technology described in subparagraph 
                        (A).''.
    (d) Report.--Not later than 60 days after the date on which 
funds are initially awarded under this section, and on an 
annual basis thereafter, the Administrator shall submit to 
Congress a report containing--
            (1) an identification of the grant recipients, a 
        description of the projects to be funded and the amount 
        of funding provided; and
            (2) an identification of all other applicants that 
        submitted applications under the program.

SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.

    (a) In General.--Not later that 180 days after the date of 
enactment of this Act, the Secretary shall initiate a 
partnership with diesel engine, diesel fuel injection system, 
and diesel vehicle manufacturers and diesel and biodiesel fuel 
providers, to include biodiesel testing in advanced diesel 
engine and fuel system technology.
    (b) Scope.--The program shall provide for testing to 
determine the impact of biodiesel from different sources on 
current and future emission control technologies, with emphasis 
on--
            (1) the impact of biodiesel on emissions warranty, 
        in-use liability, and antitampering provisions;
            (2) the impact of long-term use of biodiesel on 
        engine operations;
            (3) the options for optimizing these technologies 
        for both emissions and performance when switching 
        between biodiesel and diesel fuel; and
            (4) the impact of using biodiesel in these fueling 
        systems and engines when used as a blend with 2006 
        Environmental Protection Agency-mandated diesel fuel 
        containing a maximum of 15-parts-per-million sulfur 
        content.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall provide an interim 
report to Congress on the findings of the program, including a 
comprehensive analysis of impacts from biodiesel on engine 
operation for both existing and expected future diesel 
technologies, and recommendations for ensuring optimal 
emissions reductions and engine performance with biodiesel.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for each of fiscal years 2006 
through 2010 to carry out this section.
    (e) Definition.--For purposes of this section, the term 
``biodiesel'' means a diesel fuel substitute produced from 
nonpetroleum renewable resources that meets the registration 
requirements for fuels and fuel additives established by the 
Environmental Protection Agency under section 211 of the Clean 
Air Act (42 U.S.C. 7545) and that meets the American Society 
for Testing and Materials D6751-02a Standard Specification for 
Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

SEC. 758. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

    (a) Ultra-Efficient Engine Technology Partnership.--The 
Secretary shall enter into a cooperative agreement with the 
National Aeronautics and Space Administration for the 
development of ultra-efficient engine technology for aircraft.
    (b) Performance Objective.--The Secretary shall establish 
the following performance objectives for the program set forth 
in subsection (a):
            (1) A fuel efficiency increase of at least 10 
        percent.
            (2) A reduction in the impact of landing and 
        takeoff nitrogen oxides emissions on local air quality 
        of 70 percent.
            (3) Exploring advanced concepts, alternate 
        propulsion, and power configurations, including hybrid 
        fuel cell powered systems.
            (4) Exploring the use of alternate fuel in 
        conventional or nonconventional turbine-based systems.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section $50,000,000 for each of the fiscal years 2006, 2007, 
2008, 2009, and 2010.

SEC. 759. FUEL ECONOMY INCENTIVE REQUIREMENTS.

    Section 32905 of title 49, United States Code, is amended 
by adding the following new subsection at the end thereof:
    ``(h) Fuel Economy Incentive Requirements.--In order for 
any model of dual fueled automobile to be eligible to receive 
the fuel economy incentives included in section 32906(a) and 
(b), a label shall be attached to the fuel compartment of each 
dual fueled automobile of that model, notifying that the 
vehicle can be operated on an alternative fuel and on gasoline 
or diesel, with the form of alternative fuel stated on the 
notice. This requirement applies to dual fueled automobiles 
manufactured on or after September 1, 2006.''.

                   Subtitle E--Automobile Efficiency

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

    In addition to any other funds authorized by law, there are 
authorized to be appropriated to the National Highway Traffic 
Safety Administration to carry out its obligations with respect 
to average fuel economy standards $3,500,000 for each of the 
fiscal years 2006 through 2010.

SEC. 772. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE 
                    FUELED VEHICLES.

    (a) Manufacturing Incentives.--Section 32905 of title 49, 
United States Code, is amended--
            (1) in each of subsections (b) and (d), by striking 
        ``1993-2004'' and inserting ``1993-2010'';
            (2) in subsection (f), by striking ``2001'' and 
        inserting ``2007''; and
            (3) in subsection (f)(1), by striking ``2004'' and 
        inserting ``2010''.
    (b) Maximum Fuel Economy Increase.--Subsection (a)(1) of 
section 32906 of title 49, United States Code, is amended--
            (1) in subparagraph (A), by striking ``the model 
        years 1993-2004'' and inserting ``model years 1993-
        2010''; and
            (2) in subparagraph (B), by striking ``the model 
        years 2005-2008'' and inserting ``model years 2011-
        2014''.

SEC. 773. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR 
                    AUTOMOBILES.

    (a) In General.--Not later than 30 days after the date of 
the enactment of this Act, the Administrator of the National 
Highway Traffic Safety Administration shall initiate a study of 
the feasibility and effects of reducing by model year 2014, by 
a significant percentage, the amount of fuel consumed by 
automobiles.
    (b) Subjects of Study.--The study under this section shall 
include--
            (1) examination of, and recommendation of 
        alternatives to, the policy under current Federal law 
        of establishing average fuel economy standards for 
        automobiles and requiring each automobile manufacturer 
        to comply with average fuel economy standards that 
        apply to the automobiles it manufactures;
            (2) examination of how automobile manufacturers 
        could contribute toward achieving the reduction 
        referred to in subsection (a);
            (3) examination of the potential of fuel cell 
        technology in motor vehicles in order to determine the 
        extent to which such technology may contribute to 
        achieving the reduction referred to in subsection (a); 
        and
            (4) examination of the effects of the reduction 
        referred to in subsection (a) on--
                    (A) gasoline supplies;
                    (B) the automobile industry, including 
                sales of automobiles manufactured in the United 
                States;
                    (C) motor vehicle safety; and
                    (D) air quality.
    (c) Report.--The Administrator shall submit to Congress a 
report on the findings, conclusion, and recommendations of the 
study under this section by not later than 1 year after the 
date of the enactment of this Act.

SEC. 774. UPDATE TESTING PROCEDURES.

    The Administrator of the Environmental Protection Agency 
shall update or revise the adjustment factors in sections 
600.209-85 and 600.209-95, of the Code of Federal Regulations, 
CFR Part 600 (1995) Fuel Economy Regulations for 1977 and Later 
Model Year Automobiles to take into consideration higher speed 
limits, faster acceleration rates, variations in temperature, 
use of air conditioning, shorter city test cycle lengths, 
current reference fuels, and the use of other fuel depleting 
features.

               Subtitle F--Federal and State Procurement

SEC. 781. DEFINITIONS.

    In this subtitle:
            (1) Fuel cell.--The term ``fuel cell'' means a 
        device that directly converts the chemical energy of a 
        fuel and an oxidant into electricity by electrochemical 
        processes occurring at separate electrodes in the 
        device.
            (2) Light-duty or heavy-duty vehicle fleet.--The 
        term ``light-duty or heavy-duty vehicle fleet'' does 
        not include any vehicle designed or procured for combat 
        or combat-related missions.
            (3) Stationary; portable.--The terms ``stationary'' 
        and ``portable'', when used in reference to a fuel 
        cell, include--
                    (A) continuous electric power; and
                    (B) backup electric power.
            (4) Task force.--The term ``Task Force'' means the 
        Hydrogen and Fuel Cell Technical Task Force established 
        under section 806 of this Act.
            (5) Technical advisory committee.--The term 
        ``Technical Advisory Committee'' means the independent 
        Technical Advisory Committee selected under section 807 
        of this Act.

SEC. 782. FEDERAL AND STATE PROCUREMENT OF FUEL CELL VEHICLES AND 
                    HYDROGEN ENERGY SYSTEMS.

    (a) Purposes.--The purposes of this section are--
            (1) to stimulate acceptance by the market of fuel 
        cell vehicles and hydrogen energy systems;
            (2) to support development of technologies relating 
        to fuel cell vehicles, public refueling stations, and 
        hydrogen energy systems; and
            (3) to require the Federal government, which is the 
        largest single user of energy in the United States, to 
        adopt those technologies as soon as practicable after 
        the technologies are developed, in conjunction with 
        private industry partners.
    (b) Federal Leases and Purchases.--
            (1) Requirement.--
                    (A) In general.--Not later than January 1, 
                2010, the head of any Federal agency that uses 
                a light-duty or heavy-duty vehicle fleet shall 
                lease or purchase fuel cell vehicles and 
                hydrogen energy systems to meet any applicable 
                energy savings goal described in subsection 
                (c).
                    (B) Learning demonstration vehicles.--The 
                Secretary may lease or purchase appropriate 
                vehicles developed under subsections (a)(10) 
                and (b)(1)(A) of section 808 to meet the 
                requirement in subparagraph (A).
            (2) Costs of leases and purchases.--
                    (A) In general.--The Secretary, in 
                cooperation with the Task Force and the 
                Technical Advisory Committee, shall pay to 
                Federal agencies (or share the cost under 
                interagency agreements) the difference in cost 
                between--
                            (i) the cost to the agencies of 
                        leasing or purchasing fuel cell 
                        vehicles and hydrogen energy systems 
                        under paragraph (1); and
                            (ii) the cost to the agencies of a 
                        feasible alternative to leasing or 
                        purchasing fuel cell vehicles and 
                        hydrogen energy systems, as determined 
                        by the Secretary.
                    (B) Competitive costs and management 
                structures.--In carrying out subparagraph (A), 
                the Secretary, in consultation with the agency, 
                may use the General Services Administration or 
                any commercial vendor to ensure--
                            (i) a cost-effective purchase of a 
                        fuel cell vehicle or hydrogen energy 
                        system; or
                            (ii) a cost-effective management 
                        structure of the lease of a fuel cell 
                        vehicle or hydrogen energy system.
            (3) Exception.--
                    (A) In general.--If the Secretary 
                determines that the head of an agency described 
                in paragraph (1) cannot find an appropriately 
                efficient and reliable fuel cell vehicle or 
                hydrogen energy system in accordance with 
                paragraph (1), that agency shall be excepted 
                from compliance with paragraph (1).
                    (B) Consideration.--In making a 
                determination under subparagraph (A), the 
                Secretary shall consider--
                            (i) the needs of the agency; and
                            (ii) an evaluation performed by--
                                    (I) the Task Force; or
                                    (II) the Technical Advisory 
                                Committee.
    (c) Energy Savings Goals.--
            (1) In general.--
                    (A) Regulations.--Not later than December 
                31, 2006, the Secretary shall--
                            (i) in cooperation with the Task 
                        Force, promulgate regulations for the 
                        period of 2008 through 2010 that extend 
                        and augment energy savings goals for 
                        each Federal agency, in accordance with 
                        any Executive order issued after March 
                        2000; and
                            (ii) promulgate regulations to 
                        expand the minimum Federal fleet 
                        requirement and credit allowances for 
                        fuel cell vehicle systems under section 
                        303 of the Energy Policy Act of 1992 
                        (42 U.S.C. 13212).
                    (B) Review, evaluation, and new 
                regulations.--Not later than December 31, 2010, 
                the Secretary shall--
                            (i) review the regulations 
                        promulgated under subparagraph (A);
                            (ii) evaluate any progress made 
                        toward achieving energy savings by 
                        Federal agencies; and
                            (iii) promulgate new regulations 
                        for the period of 2011 through 2015 to 
                        achieve additional energy savings by 
                        Federal agencies relating to technical 
                        and cost-performance standards.
            (2) Offsetting energy savings goals.--An agency 
        that leases or purchases a fuel cell vehicle or 
        hydrogen energy system in accordance with subsection 
        (b)(1) may use that lease or purchase to count toward 
        an energy savings goal of the agency.
    (d) Cooperative Program With State Agencies.--
            (1) In general.--The Secretary may establish a 
        cooperative program with State agencies managing motor 
        vehicle fleets to encourage purchase of fuel cell 
        vehicles by the agencies.
            (2) Incentives.--In carrying out the cooperative 
        program, the Secretary may offer incentive payments to 
        a State agency to assist with the cost of planning, 
        differential purchases, and administration.
    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section--
            (1) $15,000,000 for fiscal year 2008;
            (2) $25,000,000 for fiscal year 2009;
            (3) $65,000,000 for fiscal year 2010; and
            (4) such sums as are necessary for each of fiscal 
        years 2011 through 2015.

SEC. 783. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND MICRO FUEL 
                    CELLS.

    (a) Purposes.--The purposes of this section are--
            (1) to stimulate acceptance by the market of 
        stationary, portable, and micro fuel cells; and
            (2) to support development of technologies relating 
        to stationary, portable, and micro fuel cells.
    (b) Federal Leases and Purchases.--
            (1) In general.--Not later than January 1, 2006, 
        the head of any Federal agency that uses electrical 
        power from stationary, portable, or microportable 
        devices shall lease or purchase a stationary, portable, 
        or micro fuel cell to meet any applicable energy 
        savings goal described in subsection (c).
            (2) Costs of leases and purchases.--
                    (A) In general.--The Secretary, in 
                cooperation with the Task Force and the 
                Technical Advisory Committee, shall pay the 
                cost to Federal agencies (or share the cost 
                under interagency agreements) of leasing or 
                purchasing stationary, portable, and micro fuel 
                cells under paragraph (1).
                    (B) Competitive costs and management 
                structures.--In carrying out subparagraph (A), 
                the Secretary, in consultation with the agency, 
                may use the General Services Administration or 
                any commercial vendor to ensure--
                            (i) a cost-effective purchase of a 
                        stationary, portable, or micro fuel 
                        cell; or
                            (ii) a cost-effective management 
                        structure of the lease of a stationary, 
                        portable, or micro fuel cell.
            (3) Exception.--
                    (A) In general.--If the Secretary 
                determines that the head of an agency described 
                in paragraph (1) cannot find an appropriately 
                efficient and reliable stationary, portable, or 
                micro fuel cell in accordance with paragraph 
                (1), that agency shall be excepted from 
                compliance with paragraph (1).
                    (B) Consideration.--In making a 
                determination under subparagraph (A), the 
                Secretary shall consider--
                            (i) the needs of the agency; and
                            (ii) an evaluation performed by--
                                    (I) the Task Force; or
                                    (II) the Technical Advisory 
                                Committee of the Task Force.
    (c) Energy Savings Goals.--An agency that leases or 
purchases a stationary, portable, or micro fuel cell in 
accordance with subsection (b)(1) may use that lease or 
purchase to count toward an energy savings goal described in 
section 808 of this Act that is applicable to the agency.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 2006;
            (2) $50,000,000 for fiscal year 2007;
            (3) $75,000,000 for fiscal year 2008;
            (4) $100,000,000 for fiscal year 2009;
            (5) $100,000,000 for fiscal year 2010; and
            (6) such sums as are necessary for each of fiscal 
        years 2011 through 2015.

                 Subtitle G--Diesel Emissions Reduction

SEC. 791. DEFINITIONS.

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

SEC. 792. NATIONAL GRANT AND LOAN PROGRAMS.

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

SEC. 793. STATE GRANT AND LOAN PROGRAMS.

    (a) In General.--Subject to the availability of adequate 
appropriations, the Administrator shall use 30 percent of the 
funds made available for a fiscal year under this subtitle to 
support grant and loan programs administered by States that are 
designed to achieve significant reductions in diesel emissions.
    (b) Applications.--The Administrator shall--
            (1) provide to States guidance for use in applying 
        for grant or loan funds under this section, including 
        information regarding--
                    (A) the process and forms for applications;
                    (B) permissible uses of funds received; and
                    (C) the cost-effectiveness of various 
                emission reduction technologies eligible to be 
                carried out using funds provided under this 
                section; and
            (2) establish, for applications described in 
        paragraph (1)--
                    (A) an annual deadline for submission of 
                the applications;
                    (B) a process by which the Administrator 
                shall approve or disapprove each application; 
                and
                    (C) a streamlined process by which a State 
                may renew an application described in paragraph 
                (1) for subsequent fiscal years.
    (c) Allocation of Funds.--
            (1) In general.--For each fiscal year, the 
        Administrator shall allocate among States for which 
        applications are approved by the Administrator under 
        subsection (b)(2)(B) funds made available to carry out 
        this section for the fiscal year.
            (2) Allocation.--Using not more than 20 per